80 FR 55883 - Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Advance Notice To Enhance NSCC's Margining Methodology as Applied to Family-Issued Securities of Certain NSCC Members

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 180 (September 17, 2015)

Page Range		55883-55885
FR Document		2015-23283
Federal Register, Volume 80 Issue 180 (Thursday, September 17, 2015)
[Federal Register Volume 80, Number 180 (Thursday, September 17, 2015)]
[Notices]
[Pages 55883-55885]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23283]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75899; File No. SR-NSCC-2015-803])


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of Advance Notice To Enhance NSCC's 
Margining Methodology as Applied to Family-Issued Securities of Certain 
NSCC Members

September 11, 2015.
    Pursuant to section 806(e)(1) of title VIII of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act entitled the Payment, 
Clearing, and Settlement Supervision Act of 2010 \1\ (``Clearing 
Supervision Act'') and Rule 19b-4(n)(1)(i) \2\ under the Securities 
Exchange Act of 1934 (``Act''), notice is hereby given that on August 
14, 2015, National Securities Clearing Corporation (``NSCC'') filed 
with the Securities and Exchange Commission (``Commission'') the 
advance notice SR-NSCC-2015-803 (``Advance Notice'') as described in 
Items I and II below, which Items have been prepared by NSCC.\3\ The 
Commission is publishing this notice to solicit comments on the Advance 
Notice from interested persons.
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    \1\ 12 U.S.C. 5465(e)(1).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
    \3\ On August 14, 2015, NSCC filed this Advance Notice as a 
proposed rule change (SR-NSCC-2015-003) with the Commission pursuant 
to section 19(b)(1) of the Act, 15 U.S.C. 78s(b)(1), and Rule 19b-4, 
17 CFR 240.19b-4. A copy of the proposed rule change is available at 
http://www.dtcc.com/legal/sec-rule-filings.aspx.
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I. Clearing Agency's Statement of the Terms of Substance of the Advance 
Notice

    This Advance Notice consists of amendments to NSCC's Rules & 
Procedures (``Rules'') in order to enhance NSCC's margining methodology 
as applied to family-issued

[[Page 55884]]

securities of those NSCC Members \4\ that are placed on NSCC's ``Watch 
List'', i.e. those Member [sic] who present a heightened credit risk to 
NSCC or have demonstrated higher risk related to their ability to meet 
settlement, as more fully described below.
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    \4\ Terms not defined herein are defined in the Rules, available 
at http://dtcc.com/~/media/Files/Downloads/legal/rules/
nscc_rules.pdf.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Advance Notice

    In its filing with the Commission, NSCC included statements 
concerning the purpose of and basis for the Advance Notice and 
discussed any comments it received on the Advance Notice. The text of 
these statements may be examined at the places specified in Item IV 
below. NSCC has prepared summaries, set forth in sections A and B 
below, of the most significant aspects of such statements.

(A) Clearing Agency's Statement on Comments on the Advance Notice 
Received From Members, Participants, or Others

    In November 2013, NSCC engaged in outreach to its Members by 
providing those Members with a description of the proposal and the 
results of an impact study showing the potential impact of this 
proposal on Members' Clearing Fund required deposits. NSCC did not 
receive any written comments relating to this proposal in response to 
this outreach. NSCC will notify the Commission of any written comments 
received by NSCC.

(B) Advance Notice Filed Pursuant to Section 806(e) of the Payment, 
Clearing and Settlement Supervision Act

Description of Change
    NSCC is proposing to enhance its margin methodology as applied to 
the family-issued securities of its Members that are on its Watch List 
\5\ by excluding these securities from the volatility component, or 
``VaR'' charge, and then charging an amount calculated by multiplying 
the absolute value of the long net unsettled positions in that Member's 
family-issued securities by a percentage that is no less than 40%. The 
haircut rate to be charged would be determined based on the Member's 
rating on the credit risk rating matrix and the type of family-issued 
security submitted to NSCC. Fixed income securities that are family-
issued securities would be charged a haircut rate of no less than 80% 
for firms that are rated 6 or 7 on the credit risk rating matrix, and 
no less than 40% for firms that are rated 5 on the credit risk rating 
matrix; and equity securities that are family-issued securities would 
be charged a haircut rate of 100% for firms that are rated 6 or 7 on 
the credit risk rating matrix, and no less than 50% for firms that are 
rated 5 on the credit risk rating matrix. NSCC would have the authority 
to adjust these haircut rates from time to time within these parameters 
as described in Procedure XV of NSCC's Rules without filing a proposed 
rule change with the Commission pursuant to section 19(b)(1) of the 
Act,\6\ and the rules thereunder, or an advance notice with the 
Commission pursuant to section 806(e)(1) of the Clearing Supervision 
Act,\7\ and the rules thereunder.
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    \5\ As part of its ongoing monitoring of its membership, NSCC 
utilizes an internal credit risk rating matrix to rate its risk 
exposures to its Members based on a scale from 1 (the strongest) to 
7 (the weakest). Members that fall within the higher risk rating 
categories (i.e. 5, 6, and 7) are considered on NSCC's ``Watch 
List'', and may be subject to enhanced surveillance or additional 
margin charges, as permitted under NSCC's Rules. See Section 4 of 
Rule 2B and section I(B)(1) of Procedure XV of NSCC's Rules, supra 
Note 1 [sic].
    \6\ 15 U.S.C. 78s(b)(1).
    \7\ 12 U.S.C. 5465(e)(1).
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Anticipated Effect on and Management of Risk
    As a central counterparty, NSCC occupies an important role in the 
securities settlement system by interposing itself between 
counterparties to financial transactions and thereby reducing the risk 
faced by participants and contributing to global financial stability. 
The effectiveness of a central counterparty's risk controls and the 
adequacy of its financial resources are critical to achieving these 
risk-reducing goals. In that context, NSCC continuously reviews its 
margining methodology in order to ensure the reliability of its 
margining in achieving the desired coverage. In order to be most 
effective, NSCC must take into consideration the risk characteristics 
specific to certain securities when margining those securities.
    Among the various risks that NSCC considers when evaluating the 
effectiveness of its margining methodology are its counterparty risks 
and identification and mitigation of ``wrong-way'' risk, particularly 
specific wrong-way risk, defined as the risk that an exposure to a 
counterparty is highly likely to increase when the creditworthiness of 
that counterparty deteriorates.\8\ NSCC has identified an exposure to 
wrong-way risk when it acts as central counterparty to a Member with 
respect to positions in securities that are issued by that Member or 
that Member's affiliate. These positions are referred to as ``family-
issued securities.'' In the event that a Member with unsettled long 
positions in family-issued securities defaults, NSCC would close out 
those positions following a likely drop in the credit-worthiness of the 
issuer, possibly resulting in a loss to NSCC.
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    \8\ See Principles for financial market infrastructures, issued 
by the Committee on Payment and Settlement Systems and the Technical 
Committee of the International Organization of Securities 
Commissions 47 n.65 (April 2012), available at http://www.bis.org/publ/cpss101a.pdf.
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    Therefore, the overall impact of NSCC's proposal, as described 
above, on risks presented by NSCC would be to reduce NSCC's exposure to 
this type of wrong-way risk by enhancing its margin methodology as 
applied to the family-issued securities of its Members that are on its 
Watch List, and present a heightened credit risk to the clearing agency 
or have demonstrated higher risk related to their ability to meet 
settlement. NSCC believes a reduction in its exposures to wrong-way 
risk through a margining methodology that more effectively capture 
[sic] the risk characteristics of these positions would contribute to 
the goal of maintaining financial stability in the event of a Member 
default and reduce systemic risk overall. Because NSCC Members that are 
on its Watch List present a heightened credit risk to the clearing 
agency or have demonstrated higher risk related to their ability to 
meet settlement, NSCC believes that this charge would more effectively 
capture the risk characteristics of these positions and can help 
mitigate NSCC's exposure to wrong-way risk.
    NSCC will continue to evaluate its exposures to wrong-way risk, 
specifically wrong-way risk presented by family-issued securities, 
including by reviewing the impact of expanding the application of the 
proposed margining methodology to the family-issued securities of those 
Members that are not on the Watch List. NSCC is proposing to apply the 
enhanced margining methodology to the family-issued securities of 
Members that are on the Watch List at this time because, as stated 
above, these Members present a heightened credit risk to the clearing 
agency or have demonstrated higher risk related to their ability to 
meet settlement. As such, there is a clear and more urgent need to 
address NSCC's exposure to wrong-way risk presented by these firms' 
family-issued securities. However, any future change to the margining 
methodology as applied to the family-issued securities of Members

[[Page 55885]]

that are not on the Watch List would be subject to a separate proposed 
rule change pursuant to section 19(b)(1) of the Act,\9\ and the rules 
thereunder and an advance notice pursuant to section 806(e)(1) of the 
Clearing Supervision Act,\10\ and the rules thereunder.
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    \9\ 15 U.S.C. 78s(b)(1).
    \10\ 12 U.S.C. 5465(e)(1).
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    Consistency with the Clearing Supervision Act. The objectives and 
principles of section 805(b)(1) of the Clearing Supervision Act specify 
the promotion of robust risk management, promotion of safety and 
soundness, reduction of systemic risks and support of the stability of 
the broader financial system.\11\ Rule 17Ad-22(b)(1), promulgated under 
the Act, requires NSCC to measure its credit exposures to its 
participants at least once a day and limit its exposures to potential 
losses from defaults by its participants under normal market conditions 
so that the operations of the clearing agency would not be disrupted 
and non-defaulting participants would not be exposed to losses that 
they cannot anticipate or control.\12\ Rule 17Ad-22(b)(2), promulgated 
under the Act, requires NSCC to use risk-based models for setting 
margin requirements.\13\
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    \11\ 12 U.S.C. 5464(b)(1).
    \12\ 17 CFR 240.17Ad-22(b)(1).
    \13\ 17 CFR 240.17Ad-22(b)(2).
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    By enhancing the margin methodology as applied to the family-issued 
securities of its Members that are on its Watch List the proposal would 
assist NSCC in collecting margin that more accurately reflects the risk 
characteristics of these securities, thereby limiting NSCC's exposures 
to potential losses from defaults by these Members under normal market 
conditions. By more closely capturing the risk characteristics of these 
positions, the proposed enhancement to the margining methodology would 
also assist NSCC in its continuous efforts to ensure the reliability 
and effectiveness of its risk-based margining methodology. In this way, 
the proposal would help NSCC, as a central counterparty, maintain 
effective risk controls, contributing to the goal of maintaining 
financial stability in the event of a Member default. Therefore, NSCC 
believes the proposal is consistent with the requirements of section 
805(b)(1) of the Clearing Supervision Act and Rule 17Ad-22(b)(1) and 
(2), promulgated under the Act, cited above.

III. Date of Effectiveness of the Advance Notice, and Timing for 
Commission Action

    The proposed change may be implemented if the Commission does not 
object to the proposed change within 60 days of the later of (i) the 
date that the proposed change was filed with the Commission or (ii) the 
date that any additional information requested by the Commission is 
received. NSCC shall not implement the proposed change if the 
Commission has any objection to the proposed change.
    The Commission may extend the period for review by an additional 60 
days if the proposed change raises novel or complex issues, subject to 
the Commission providing NSCC with prompt written notice of the 
extension. The proposed change may be implemented in less than 60 days 
from the date the Advance Notice is filed, or the date further 
information requested by the Commission is received, if the Commission 
notifies NSCC in writing that it does not object to the proposed change 
and authorizes NSCC to implement the proposed change on an earlier 
date, subject to any conditions imposed by the Commission.
    NSCC shall post notice on its Web site of proposed changes that are 
implemented.
    The proposal shall not take effect until all regulatory actions 
required with respect to the proposal are completed.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the Advance 
Notice is consistent with the Clearing Supervision Act. Comments may be 
submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NSCC-2015-803 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NSCC-2015-803. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the Advance Notice that are filed 
with the Commission, and all written communications relating to the 
Advance Notice between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for Web site viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE., Washington, 
DC 20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of NSCC and on DTCC's Web site 
(http://dtcc.com/legal/sec-rule-filings.aspx). All comments received 
will be posted without change; the Commission does not edit personal 
identifying information from submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NSCC-2015-803 and should be submitted on 
or before October 8, 2015.

    By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2015-23283 Filed 9-16-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Notices 55883

other exchanges, including EDGX of the Act 12 and paragraph (f) of Rule submissions. You should submit only
Exchange, Inc. (‘‘EDGX’’), which 19b–4 thereunder.13 At any time within information that you wish to make
maintains a Tape B Step Up tier to 60 days of the filing of the proposed rule available publicly. All submissions
incentivize added liquidity in Tape B change, the Commission summarily may should refer to File Number SR–BATS–
securities.11 temporarily suspend such rule change if 2015–74, and should be submitted on or
it appears to the Commission that such before October 8, 2015.
B. Self-Regulatory Organization’s
action is necessary or appropriate in the For the Commission, by the Division of
Statement on Burden on Competition
public interest, for the protection of Trading and Markets, pursuant to delegated
The Exchange does not believe its investors, or otherwise in furtherance of authority.14
proposed amendments to its Fee the purposes of the Act. Brent J. Fields,
Schedule would impose any burden on Secretary.
IV. Solicitation of Comments
competition that is not necessary or [FR Doc. 2015–23286 Filed 9–16–15; 8:45 am]
appropriate in furtherance of the Interested persons are invited to
submit written data, views, and BILLING CODE 8011–01–P
purposes of the Act. The Exchange does
not believe that the proposed changes arguments concerning the foregoing,
represent a significant departure from including whether the proposed rule
change is consistent with the Act. SECURITIES AND EXCHANGE
previous pricing offered by the COMMISSION
Exchange or pricing offered by the Comments may be submitted by any of
Exchange’s competitors. Additionally, the following methods:
Members may opt to disfavor the [Release No. 34–75899; File No. SR–NSCC–
Electronic Comments 2015–803])
Exchange’s pricing if they believe that
alternatives offer them better value. • Use the Commission’s Internet
comment form (http://www.sec.gov/ Self-Regulatory Organizations;
Accordingly, the Exchange does not National Securities Clearing
believe that the proposed change will rules/sro.shtml); or
impair the ability of Members or • Send an email to rule-comments@ Corporation; Notice of Filing of
sec.gov. Please include File Number SR– Advance Notice To Enhance NSCC’s
competing venues to maintain their Margining Methodology as Applied to
competitive standing in the financial BATS–2015–74 on the subject line.
Family-Issued Securities of Certain
markets. Paper Comments NSCC Members
The Exchange does not believe that • Send paper comments in triplicate
the proposed new tier would burden September 11, 2015.
to Brent J. Fields, Secretary, Securities
competition, but instead, enhances and Exchange Commission, 100 F Street Pursuant to section 806(e)(1) of title
competition, as they [sic] are intended NE., Washington, DC 20549–1090. VIII of the Dodd-Frank Wall Street
to increase the competitiveness of and All submissions should refer to File Reform and Consumer Protection Act
draw additional volume to the Number SR–BATS–2015–74. This file entitled the Payment, Clearing, and
Exchange. As stated above, the number should be included on the Settlement Supervision Act of 2010 1
Exchange notes that it operates in a subject line if email is used. To help the (‘‘Clearing Supervision Act’’) and Rule
highly competitive market in which Commission process and review your 19b–4(n)(1)(i) 2 under the Securities
market participants can readily direct comments more efficiently, please use Exchange Act of 1934 (‘‘Act’’), notice is
order flow to competing venues if the only one method. The Commission will hereby given that on August 14, 2015,
deem fee structures to be unreasonable post all comments on the Commission’s National Securities Clearing Corporation
or excessive. The proposed changes are Internet Web site (http://www.sec.gov/ (‘‘NSCC’’) filed with the Securities and
generally intended to enhance the rules/sro.shtml). Copies of the Exchange Commission (‘‘Commission’’)
rebates for liquidity added to the submission, all subsequent the advance notice SR–NSCC–2015–803
Exchange, which is intended to draw amendments, all written statements (‘‘Advance Notice’’) as described in
additional liquidity to the Exchange. with respect to the proposed rule Items I and II below, which Items have
The Exchange does not believe the change that are filed with the been prepared by NSCC.3 The
proposed tier would burden intramarket Commission, and all written Commission is publishing this notice to
competition as they [sic] would apply to communications relating to the solicit comments on the Advance Notice
all Members uniformly. proposed rule change between the from interested persons.
C. Self-Regulatory Organization’s Commission and any person, other than
I. Clearing Agency’s Statement of the
Statement on Comments on the those that may be withheld from the
Terms of Substance of the Advance
Proposed Rule Change Received From public in accordance with the
Notice
Members, Participants, or Others provisions of 5 U.S.C. 552, will be
available for Web site viewing and This Advance Notice consists of
The Exchange has not solicited, and printing in the Commission’s Public amendments to NSCC’s Rules &
does not intend to solicit, comments on Reference Room, 100 F Street NE., Procedures (‘‘Rules’’) in order to
this proposed rule change. The Washington, DC 20549 on official enhance NSCC’s margining
Exchange has not received any business days between the hours of methodology as applied to family-issued
unsolicited written comments from 10:00 a.m. and 3:00 p.m. Copies of such
Members or other interested parties. filing also will be available for 14 17 CFR 200.30–3(a)(12).
III. Date of Effectiveness of the inspection and copying at the principal 1 12 U.S.C. 5465(e)(1).
tkelley on DSK3SPTVN1PROD with NOTICES

Proposed Rule Change and Timing for office of the Exchange. All comments 2 17 CFR 240.19b–4(n)(1)(i).

Commission Action received will be posted without change; 3 On August 14, 2015, NSCC filed this Advance

the Commission does not edit personal Notice as a proposed rule change (SR–NSCC–2015–
The foregoing rule change has become identifying information from 003) with the Commission pursuant to section
effective pursuant to Section 19(b)(3)(A) 19(b)(1) of the Act, 15 U.S.C. 78s(b)(1), and Rule
19b–4, 17 CFR 240.19b–4. A copy of the proposed
12 15 U.S.C. 78s(b)(3)(A). rule change is available at http://www.dtcc.com/
11 See EDGX fee schedule, footnote 2. 13 17 CFR 240.19b–4(f). legal/sec-rule-filings.aspx.

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Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Notices 55885

that are not on the Watch List would be III. Date of Effectiveness of the Advance only one method. The Commission will
subject to a separate proposed rule Notice, and Timing for Commission post all comments on the Commission’s
change pursuant to section 19(b)(1) of Action Internet Web site (http://www.sec.gov/
the Act,9 and the rules thereunder and The proposed change may be rules/sro.shtml). Copies of the
an advance notice pursuant to section implemented if the Commission does submission, all subsequent
806(e)(1) of the Clearing Supervision not object to the proposed change amendments, all written statements
Act,10 and the rules thereunder. within 60 days of the later of (i) the date with respect to the Advance Notice that
that the proposed change was filed with are filed with the Commission, and all
Consistency with the Clearing written communications relating to the
Supervision Act. The objectives and the Commission or (ii) the date that any
additional information requested by the Advance Notice between the
principles of section 805(b)(1) of the Commission and any person, other than
Clearing Supervision Act specify the Commission is received. NSCC shall not
implement the proposed change if the those that may be withheld from the
promotion of robust risk management, public in accordance with the
promotion of safety and soundness, Commission has any objection to the
proposed change. provisions of 5 U.S.C. 552, will be
reduction of systemic risks and support available for Web site viewing and
The Commission may extend the
of the stability of the broader financial printing in the Commission’s Public
period for review by an additional 60
system.11 Rule 17Ad–22(b)(1), Reference Room, 100 F Street NE.,
days if the proposed change raises novel
promulgated under the Act, requires Washington, DC 20549 on official
or complex issues, subject to the
NSCC to measure its credit exposures to Commission providing NSCC with business days between the hours of
its participants at least once a day and prompt written notice of the extension. 10:00 a.m. and 3:00 p.m. Copies of the
limit its exposures to potential losses The proposed change may be filing also will be available for
from defaults by its participants under implemented in less than 60 days from inspection and copying at the principal
normal market conditions so that the the date the Advance Notice is filed, or office of NSCC and on DTCC’s Web site
operations of the clearing agency would the date further information requested (http://dtcc.com/legal/sec-rule-
not be disrupted and non-defaulting by the Commission is received, if the filings.aspx). All comments received
participants would not be exposed to Commission notifies NSCC in writing will be posted without change; the
losses that they cannot anticipate or that it does not object to the proposed Commission does not edit personal
control.12 Rule 17Ad–22(b)(2), change and authorizes NSCC to identifying information from
promulgated under the Act, requires implement the proposed change on an submissions. You should submit only
NSCC to use risk-based models for earlier date, subject to any conditions information that you wish to make
setting margin requirements.13 imposed by the Commission. available publicly. All submissions
NSCC shall post notice on its Web site should refer to File Number SR–NSCC–
By enhancing the margin 2015–803 and should be submitted on
methodology as applied to the family- of proposed changes that are
implemented. or before October 8, 2015.
issued securities of its Members that are
The proposal shall not take effect By the Commission.
on its Watch List the proposal would
until all regulatory actions required Brent J. Fields,
assist NSCC in collecting margin that with respect to the proposal are Secretary.
more accurately reflects the risk completed. [FR Doc. 2015–23283 Filed 9–16–15; 8:45 am]
characteristics of these securities,
thereby limiting NSCC’s exposures to IV. Solicitation of Comments BILLING CODE 8011–01–P

potential losses from defaults by these Interested persons are invited to
Members under normal market submit written data, views and SECURITIES AND EXCHANGE
conditions. By more closely capturing arguments concerning the foregoing, COMMISSION
the risk characteristics of these including whether the Advance Notice
positions, the proposed enhancement to is consistent with the Clearing [Investment Company Act Release No.
31819; 812–14416]
the margining methodology would also Supervision Act. Comments may be
assist NSCC in its continuous efforts to submitted by any of the following Pomona Investment Fund, et al.;
ensure the reliability and effectiveness methods: Notice of Application
of its risk-based margining Electronic Comments
methodology. In this way, the proposal September 11, 2015.
would help NSCC, as a central • Use the Commission’s Internet AGENCY: Securities and Exchange
counterparty, maintain effective risk comment form (http://www.sec.gov/ Commission (‘‘Commission’’).
controls, contributing to the goal of rules/sro.shtml); or ACTION: Notice of an application under
• Send an email to rule-comments@ section 6(c) of the Investment Company
maintaining financial stability in the
sec.gov. Please include File Number SR– Act of 1940 (the ‘‘Act’’) for an
event of a Member default. Therefore,
NSCC–2015–803 on the subject line. exemption from sections 18(c) and 18(i)
NSCC believes the proposal is
consistent with the requirements of Paper Comments of the Act and for an order pursuant to
section 805(b)(1) of the Clearing section 17(d) of the Act and rule 17d–
• Send paper comments in triplicate 1 under the Act.
Supervision Act and Rule 17Ad-22(b)(1) to Brent J. Fields, Secretary, Securities
and (2), promulgated under the Act, and Exchange Commission, 100 F Street SUMMARY OF APPLICATION: Applicants
cited above. NE., Washington, DC 20549–1090.
tkelley on DSK3SPTVN1PROD with NOTICES

request an order to permit certain
All submissions should refer to File registered closed-end management
9 15 U.S.C. 78s(b)(1). Number SR–NSCC–2015–803. This file investment companies to issue multiple
10 12 U.S.C. 5465(e)(1). number should be included on the classes of shares (‘‘Shares’’) and to
11 12 U.S.C. 5464(b)(1). subject line if email is used. To help the impose asset-based distribution and
12 17 CFR 240.17Ad–22(b)(1). Commission process and review your service fees and contingent deferred
13 17 CFR 240.17Ad–22(b)(2). comments more efficiently, please use sales loads (‘‘CDSCs’’).

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Document Created: 2015-12-15 09:33:35
Document Modified: 2015-12-15 09:33:35
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 55883