Notice2023-03583
Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Implementation Date of Revisions Relating to Excess Capital Premium Charge
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 22, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 35 (Wednesday, February 22, 2023)</title>
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[Federal Register Volume 88, Number 35 (Wednesday, February 22, 2023)]
[Notices]
[Pages 10945-10947]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-03583]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96936; File No. SR-NSCC-2023-002]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change To Establish Implementation Date of Revisions Relating to
Excess Capital Premium Charge
February 15, 2023.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 9, 2023, National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the clearing agency.
NSCC filed the proposed rule change pursuant to Section 19(b)(3)(A) of
the Act \3\ and Rule 19b-4(f)(4) thereunder.\4\ The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change consists of amendments to the NSCC Rules &
Procedures (``Rules'') \5\ in order to state that the changes to the
Rules that were proposed pursuant to File Number SR-NSCC-2022-005
(``Rule Filing''), as amended, and were approved by the Commission on
February 1, 2023 (``Approved Rule Changes'') will be implemented by
March 13, 2023, as described in greater detail below.
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\5\ Capitalized 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 Proposed Rule Change
In its filing with the Commission, the clearing agency included
statements concerning the purpose of and basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. The clearing agency has prepared summaries,
set forth in sections A, B,
[[Page 10946]]
and C below, of the most significant aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
1. Purpose
On May 20, 2022, NSCC filed the Rule Filing with the Commission
pursuant to Section 19(b)(1) of the Act \6\ and Rule 19b-4
thereunder.\7\ NSCC filed amendments to the Rule Filing on June 1, 2022
(``Amendment No. 1''), July 6, 2022 (``Amendment No. 2''), and November
28, 2022 (``Amendment No. 3'').
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\6\ 15 U.S.C. 78s(b)(1).
\7\ 17 CFR 240.19b-4.
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On February 1, 2023, the Commission approved the Rule Filing, as
modified by Amendment Nos. 1, 2, and 3, pursuant to Section 19(b)(2) of
the Act.\8\ The Approved Rule Changes consist of modifications to the
Rules to revise the Excess Capital Premium (``ECP'') charge by
enhancing the methodology for calculating the charge, and improve the
transparency of the Rules regarding the ECP charge.\9\
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\8\ 15 U.S.C. 78s(b)(2).
\9\ See Securities Exchange Act Release No. 96786 (February 1,
2023), 88 FR 8013 (February 7, 2023) (SR-NSCC-2022-005).
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NSCC is proposing to amend the Rules to add a legend to Rule 1
(Definitions and Descriptions), Procedure XV (Clearing Fund Formula and
Other Matters) and Addendum B (Qualifications and Standards of
Financial Responsibility, Operational Capability and Business History)
of the Rules to state that the Approved Rule Changes will be
implemented by March 13, 2023.\10\ Upon implementation of the Approved
Rule Changes, the legend will automatically be removed from these
Rules.
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\10\ Supra note 5.
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2. Statutory Basis
Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be designed to promote the prompt and accurate clearance and settlement
of securities transactions.\11\
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\11\ 15 U.S.C. 78q-1(b)(3)(F).
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By establishing the date on which the Approved Rule Changes would
be implemented, this proposal would enable Members to timely fulfill
their obligations to NSCC, which would in turn support NSCC's ability
to promote the prompt and accurate clearance and settlement of
securities transactions. Therefore, NSCC believes that the proposal is
consistent with Section 17A(b)(3)(F) of the Act.
(B) Clearing Agency's Statement on Burden on Competition
NSCC does not believe that the proposal to establish an
implementation date of the Approved Rule Changes would have any impact,
or impose any burden, on competition.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
NSCC has not received or solicited any written comments relating to
this proposal. If any written comments are received, they will be
publicly filed as an Exhibit 2 to this filing, as required by Form 19b-
4 and the General Instructions thereto.
Persons submitting comments are cautioned that, according to
Section IV (Solicitation of Comments) of the Exhibit 1A in the General
Instructions to Form 19b-4, the Commission does not edit personal
identifying information from comment submissions. Commenters should
submit only information that they wish to make available publicly,
including their name, email address, and any other identifying
information.
All prospective commenters should follow the Commission's
instructions on how to submit comments, available at <a href="https://www.sec.gov/regulatory-actions/how-to-submit-comments">https://www.sec.gov/regulatory-actions/how-to-submit-comments</a>. General
questions regarding the rule filing process or logistical questions
regarding this filing should be directed to the Main Office of the
Commission's Division of Trading and Markets at
<a href="/cdn-cgi/l/email-protection#493d3b282d20272e28272d24283b222c3d3a093a2c2a672e263f"><span class="__cf_email__" data-cfemail="e2969083868b8c85838c868f839089879691a2918781cc858d94">[email protected]</span></a> or 202-551-5777.
NSCC reserves the right to not respond to any comments received.
III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \12\ of the Act and paragraph (f) of Rule 19b-4
thereunder.\13\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#ee9c9b828bc38d8183838b809a9dae9d8b8dc0898198"><span class="__cf_email__" data-cfemail="ec9e998089c18f8381818982989fac9f898fc28b839a">[email protected]</span></a>. Please include
File Number SR-NSCC-2023-002 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to File Number SR-NSCC-2023-002. 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 website (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change 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 website 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 website
(<a href="http://dtcc.com/legal/sec-rule-filings.aspx">http://dtcc.com/legal/sec-rule-filings.aspx</a>). All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NSCC-2023-002 and should be submitted on
or before March 15, 2023.
[[Page 10947]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-03583 Filed 2-21-23; 8:45 am]
BILLING CODE 8011-01-P
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