Self Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying Fund/Serv Fee

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34257; File No. SR-NSCC-94-11]

Self Regulatory Organizations; National Securities Clearing

Corporation; Notice of Filing and Immediate Effectiveness of Proposed

Rule Change Modifying Fund/Serv Fee

June 24, 1994.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of

1934,\1\ notice is hereby given that on June 21, 1994, 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

primarily by NSCC. 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. Sec. 78s(b)(1) (1988).

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I. Self-Regulatory Organization's Statement of the Terms of Substance

of the Proposed Rule Change

The text of the proposed rule change is as follows:

Italicized text indicates additions

Bracketed text indicates deletions

Addendum A.

* * * * *

IV. Other Service Fees

* * * * *

Q. Fund/Serv (FN10), $0.40 per side per order.

* * * * *

(10) This fee applies to Members utilizing the revised Fund/Serv

service available after December 31, 1992. [Members not utilizing the

revised service will continue to be charged $.50 per side per settled

transaction.] Effective July 1, 1994 for Members who do not convert to

the revised Fund/Serv service by July 31, 1994, the fee will be $.75

per side per settled transaction.

* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections A, B,

and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule Change

NSCC advised its members that it would discontinue the old Fund/

Serv service on June 30, 1994. Because some members have not completed

the conversion from the old Fund/Serv service to the new Fund/Serv

service, NSCC has determined not to discontinue the old Fund/Serv

service on June 30, 1994, as originally planned.

The purpose of the proposed rule change is to modify the fees

charged by NSCC for the old Fund/Serv service so as to reflect, in

part, the additional cost of simultaneously maintaining both versions

of the Fund/Serv system. Currently, old Fund/Serv transactions are $.50

per side per settled transaction. Effective July 1, 1994, for members

who do not convert to the revised Fund/Serv service by July 31, 1994,

the fee will be $.75 per side per settled transaction. Members who

successfully achieve conversion from the old Fund/Serv service to the

new Fund/Serv service by July 31, 1994, therefore, are being given an

additional one-month grace period from the effectiveness of the new

fee.

B. Self-Regulatory Organization's Statement on Burden on Competition

NSCC does not believe that the proposed rule change will have an

impact on or impose a burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed

Rule Change Received from Members, Participants, or Others

No written comments have been solicited or received. NSCC will

notify the Commission of any written comments received by NSCC.

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)(ii) of the Act and subparagraph (e)(2) of Securities

Exchange Act Rule 19b-4 in that the proposed rule change establishes or

changes a due, fee, or other charge imposed by NSCC. At any time within

sixty days of the filing of such proposed rule change, the Commission

may summarily abrogate 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 Securities Exchange Act of 1934.

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and

arguments concerning the foregoing. Persons making written submissions

should file six copies thereof with the Secretary, Securities and

Exchange Commission, 450 Fifth Street NW., Washington, DC 20549. 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 provisions of 5

U.S.C. 552, will be available for inspection and copying in the

Commission's Public Reference Section, 450 Fifth Street NW.,

Washington, DC 20549. Copies of such filing will also be available for

inspection and copying at the principal office of the above-mentioned

self-regulatory organization. All submissions should refer to File No.

SR-NSCC-94-11 and should be submitted by July 26, 1994.

For the Commission by the Division of Market Regulation,

pursuant to delegated authority.\2\

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\2\17 CFR 200.30-3(a)(12) (1993).

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Jonathan G. Katz,

Secretary.

[FR Doc. 94-16185 Filed 7-1-94; 8:45 am]

BILLING CODE 8010-01-M