# Self Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of a Proposed Rule Change Seeking Permanent Approval for the New York Window Service > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-19210 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** August 8, 1994 ## Text SECURITIES AND EXCHANGE COMMISSION [Release No. 34-34470; File No. SR-NSCC-94-12] Self Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of a Proposed Rule Change Seeking Permanent Approval for the New York Window Service August 1, 1994. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'')\1\ notice is hereby given that on July 15, 1994, the National Securities Clearing Corporation (``NSCC'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change (File No. SR-NSCC-94-12) 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. --------------------------------------------------------------------------- \1\15 U.S.C. 78s(b)(1) (1988). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of modifications to NSCC's Rules and Procedures for NSCC's New York Window service and seeks permanent approval of the service. The proposal will permit NSCC to replace the participating members' record keeping systems with NSCC's proprietary record keeping system. The proposal also sets forth the New York Window fee schedule. 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 The New York Window is a service that provides for the processing of receives and deliveries of physical securities. The New York Window also provides facilities for the custody of physical securities and custodial related services for physical securities. Currently, the New York Window service is being offered on a pilot basis utilizing each member's own record keeping system.\2\ This proposal will permit NSCC to offer the New York Window service utilizing NSCC's proprietary record keeping system. This system will enable NSCC and members to electronically communicate with each other throughout the day. The New York Window pilot program also offers a money settlement service to a limited number of members. This proposal will enable NSCC to offer the money settlement service to all New York Window members. --------------------------------------------------------------------------- \2\For a complete description of the New York Window pilot program, refer to Securities Exchange Act Release Nos. 32221 (April 26, 1993), 58 FR 36570 [File No. SR-NSCC-93-03] (order temporarily approving proposed rule change until April 30, 1994) and 33558 (January 31, 1994), 59 FR 5807 [File No. SR-NSCC-93-14] (order temporarily approving proposal rule change until January 31, 1995). --------------------------------------------------------------------------- The New York Window service is offered to members under several conditions. First, at all times, NSCC acts as an agent for members using the New York Window service and not as principal for its own account. Second, each New York Window member agrees that it will not be entitled to reimbursement from NSCC for any losses suffered or liabilities incurred as a result of the New York Window service. Third, all actions taken by NSCC in connection with the New York Window service will be based on instructions from members. Members will have the ability to change instructions or add instructions throughout the day. NSCC will have the ability to interactively communicate with members with respect to instructions being processed. Each day, NSCC will report to members the results of that day's processing (i.e., items received and delivered) and will provide members with an updated stock record indicating the items being held in custody for the member under the New York Window service. The proposal also sets forth the fees that NSCC will charge for the New York Window service. IV. Other Service Fees:* U. New York Window 1. Over The Window--............................ $12.00 per item Receives/Deliveries........................... 2. Envelope Settlement Service/Receives a. 1-100 daily................................ 6.00 per item b. 101-150 daily.............................. 5.00 per item c. 151-and up daily........................... 4.00 per item 3. Envelope Settlement Services/Deliveries...... 6.00 per item 4. FOSS/DSS--Receives/Deliveries (Money Only)... 3.50 per item 5. Transfers.................................... 15.00 per item 6. Reorganizations.............................. a. One-Way.................................... 15.00 per item b. Two-Way.................................... 18.00 per item 7. Underwritings (Coordinating Distribution).... 35.00 per item 8. Special Handling............................. 35.00 per hour 9. Custody (Per Position Per Issue)............. .10 per day 10. Return to Firm (Securities)................. .10 per item 11. Internal Cross Receives/Deliveries.......... 7.00 per item 12. Messenger Service (Accommodation)........... 7.50 per hour 13. Accommodation Handling...................... 3.50 per item 14. Settlement Reconciliation................... 25.00 per day Italic indicates additions. *Indicates previously underlined text. The New York Window service will afford members with the opportunity to centralize their processing of physical securities. Therefore, the proposed rule change is consistent with NSCC's obligation under Section 17A of the Act to promote the prompt and accurate clearance and settlement of securities transactions. (B) Self-Regulatory Organization's Statement on Burden on Competition NSCC does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. (C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within thirty-five days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to ninety days of such date if it finds such longer period to be appropriate and publishes its reason for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) by order approve such proposed rule change or (B) institute proceedings to determine whether the proposed rule change should be approved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing. Persons making written submission should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. Copies of the submissions, 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 inspection and copying in the Commission's Public Reference Section, 450 Fifth Street, NW., Washington, DC 20549. Copies of such filings will also be available for inspection and copying at the principal offices of NSCC. All submissions should refer to File No. SR-NSCC-94-12 and should be submitted by August 29, 1994. For the Commission by the Division of Market Regulation, pursuant to delegated authority.\3\ --------------------------------------------------------------------------- \3\17 CFR 200.30-3(a)(12) (1993). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 94-19210 Filed 8-5-94; 8:45 am] BILLING CODE 8010-01-M --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-19210. Public record. Not legal advice.