NSCC-2021-006 Approved, Effective Immediately
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| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/Shooting4daMoon](https://www.reddit.com/user/Shooting4daMoon/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/nb1rtp/nscc2021006_approved_effective_immediately/) | 

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[Discussion 🦍](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22Discussion%20%F0%9F%A6%8D%22&restrict_sr=1)

The SEC just approved NSCC-2021-006, effective immediately today.

[![r/Superstonk - NSCC-2021-006 Approved, Effective Immediately](https://preview.redd.it/8cq0vvwzory61.png?width=631&format=png&auto=webp&s=f858436624382514462d6794c2d895aa1d2bc57b)](https://preview.redd.it/8cq0vvwzory61.png?width=631&format=png&auto=webp&s=f858436624382514462d6794c2d895aa1d2bc57b)

Here is a link to the announcement. <https://www.sec.gov/rules/sro/nscc.htm>

There are plenty of posts on this over the past couple of days including:

<https://www.reddit.com/r/Superstonk/comments/n7in6k/clarification_of_nscc2021006/>

<https://www.reddit.com/r/Superstonk/comments/n7svvu/queenkong_replies_to_the_006rule_in_other_words/>

There was some confusion over the announcement of this rule a few days ago around the SEC still needing to approve rule changes, but not having to wait 10 days to approve a new rule.

This rule also clarifies terminology and clarifications of rules.

I am still reading the final approved version and will add a summary as I go. Feel free to help if you have time.

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Edit 1: On page 14, they kept the proposal to remove the 10-day approval window.

"NSCC is proposing to delete a requirement in Rule 33 that Members and Limited Members be given 10 business days' notice of any proposed amendment to the Procedures. NSCC is also proposing to replace "immediately" with "promptly" in Rule 36 in order to provide that NSCC will promptly---but might not immediately---notify Members and Limited Members of any proposed rule changes. NSCC believes that the foregoing requirements are not necessary or practical because, as explained below, Members and Limited Members are already provided adequate notice of any changes or proposed changes to NSCC's Rules or Procedures through the rule change process."

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Edit 2: Additional clarity around rule approval on page 14/15

"Under the rule change process, generally, before a proposed rule 15 change may take effect, (i) the change and an explanatory statement must be filed with the Commission and posted by NSCC on the NSCC Website, (ii) notice of the filing and the substantive terms or description of the change must be published by the Commission in the Federal Register for public review and comment, and (iii) the Commission must approve the change (or the change must otherwise be permitted to take effect)."

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Edit 3: More clarity on rule approval on page 15/16

"NSCC is required to follow: (1) a specified process12 whenever it proposes a new rule or a change or amendment to its Rules and (2) a specified process13 whenever it proposes to make a change to its rules, procedures or operations that could materially affect the nature or level of risks presented by NSCC. These rule change processes provide notice to Members and Limited Members and provide an opportunity for those parties to comment on such changes. Rule 19b-4 under the Act requires that NSCC post any rule change proposals on its website within two business days after the filing of a proposed rule change,14 post any rule changes that are approved by the Commission within two business days after it has been notified of the Commission's approval15 and post any rule change within two business days of the Commission's notice of such proposed change for rule changes that are effective upon filing.16 NSCC complies---and will continue to comply---with such notice requirements which it believes are adequate. "

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Edit 4: Interesting clause on page 19, around the ability to suspend the rule change within 60 days of filing.

" 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)21 of the Act and paragraph (f)22 of Rule 19b-4 thereunder. *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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Edit 5: Starting to read Exhibit 5. This might be the interesting part...

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Edit 6: Wondering if someone could provide clarity on how these exhibits work. There is some interesting wording on page 5 of exhibit 5 (<https://www.sec.gov/rules/sro/nscc/2021/34-91881-ex5.pdf>), around illiquidity ratios. Are these exhibits just examples or actual definitions for these rules?

" the "illiquidity ratio" of a security on any day is equal to (i) the price return of such security on such day (based on the natural logarithm of the ratio between the closing price of the security on such day to the closing price of the security on the prior trading day) divided by (ii) the average daily trading amount1 of such security over the prior 20 Bbusiness Ddays."
