Self Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change Modifying the Automated Customer Account Transfer Service

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34550; File No. SR-NSCC-94-13]

Self Regulatory Organizations; National Securities Clearing

Corporation; Notice of Filing of Proposed Rule Change Modifying the

Automated Customer Account Transfer Service

August 18, 1994.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

(``Act'')\1\, notice is hereby given that on July 20, 1994, the

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. 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 consists of modifications to

NSCC's rules and procedures relating to the Automated Customer Account

Transfer Service (``ACATS'').

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 proposed rule change will modify NSCC's ACATS to accelerate the

time in which accounts are transferred. The proposed rule change is

made in conjunction with the New York Stock Exchange's (``NYSE'')

recently filed proposed rule change to amend NYSE Rule 412 relating to

transfers of customer accounts.\2\

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\2\For a complete description of the NYSE proposed rule change,

refer to Securities Exchange Act Release No. 34246 (June 22, 1994),

59 FR 33559 [File No. SR-NYSE-94-21] (notice of filing of a proposed

rule change relating to NYSE's Customer Account Contract Rule and

its related interpretations).

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Under NSCC's proposed rule change, NSCC Rule 50, Section 9, will be

amended to allow a receiving member one business day after receipt from

NSCC of the customer account asset data report to determine whether to

accept, to reject, or to request adjustments to the account. Currently,

receiving members have two business days to respond after receiving the

customer account asset data report. Where Mutual Fund Services eligible

book share mutual fund assets are to be transferred, a receiving member

again will have one business day instead of two business days after

receipt of the customer account asset data report to submit detailed

transfer instructions to NSCC. Each business day that the delivering

member causes an adjustment to be made to an account will give the

receiving member one additional business day to accept, reject, or

request adjustments or in the case of mutual funds to submit transfer

instructions. Currently, receiving members have two business days after

an adjustment. Additionally, the proposed rule change will delete

language that treats transfers of accounts containing option positions

differently from transfers of accounts without option positions.

NSCC believes the proposed rule change is consistent with the

requirements of Section 17A of the Act because the changes will

facilitate 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 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 relating to the proposed rule change 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

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 reasons 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 disapproved.

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 N.W., Washington, D.C. 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 N.W.,

Washington, D.C. 20549. Copies of such filing will also be available

for inspection and copying at the principal office of NSCC. All

submissions should refer to File No. SR-NSCC-94-13 and should be

submitted by September 15, 1994.

For the Commission by the Division of Market Regulation,

pursuant to delegated authority.\3\

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

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Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 94-20894 Filed 8-24-94; 8:45 am]

BILLING CODE 8010-01-M