[Federal Register Volume 60, Number 18 (Friday, January 27, 1995)]
[Notices]
[Pages 5445-5446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2072]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35259; File Nos. SR-MCC-94-15 and SR-MSTC-94-18]
Self-Regulatory Organizations; Midwest Clearing Corporation and
Midwest Securities Trust Company; Notice of Filing and Immediate
Effectiveness of Proposed Rule Changes Eliminating MBS Clearing
Corporation's Right to Collect Monies From the Participants Funds
January 20, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 8, 1994, Midwest
Clearing Corporation (``MCC'') and Midwest Securities Trust Company
(``MSTC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule changes (File Nos. SR-MCC-94-15 and
SR-MSTC-94-18) as described in Items I, II, and III below, which items
have been prepared primarily by MCC and MSTC. The Commission is
publishing this notice to solicit comments on the proposed rule changes
from interested persons.
\1\15 U.S.C. Sec. 78s(b)(1) (1988).
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I. Self-Regulatory Organizations' Statement of the Terms of Substance
of the Proposed Rule Changes
These rule changes amend Article IX, Rule 2, Section 3 of MCC's
Rules and Article VI, Rule 2, Section 3 of MSTC's Rules to eliminate
the right of MBS Clearing Corporation (``MBS'') to collect monies,
respectively, from the MCC Participants Fund and from the MSTC
Participants Fund when an MCC or MSTC participant fails to discharge a
liability to MBS.
II. Self-Regulatory Organizations' Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Changes
In their filings with the Commission, MCC and MSTC included
statements concerning the purpose of and basis for the proposed rule
changes and discussed any comments they received on the proposed rule
changes. The text of these statements may be examined at the places
specified in Item IV below. MCC and MSTC have prepared summaries, set
forth in sections (A), (B), and (C) below, of the most significant
aspects of such statements.
(A) Self-Regulatory Organizations' Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Changes
The purpose of the proposed changes is to eliminate the right of
MBS to collect money from the MCC Participants Fund and from the MSTC
Participants Fund when an MCC participant or an MSTC participant,
respectively, fails to discharge a liability owed to MBS. MBS is no
longer affiliated with MCC, MSTC or with the Chicago Stock Exchange
(``CHX''), the parent corporation of both MCC and MSTC.\2\ The proposed
rule changes also amend Article II, Rule 3, Section 1 and Article IX,
Rule 2, Section 3 of MCC's Rules and Article VI, Rule 2, Section 3 of
MSTC's Rules to change references to the Midwest Stock Exchange to
either CHX or the Exchange in order to reflect CHX's name change.
\2\In August 1994, the CHX sold its interest in MBX to the
participants of MBS and to the National Securities Clearing
Corporation.
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MCC and MSTC believe that the proposed rule changes are consistent
with Section 17A of the Act\3\ in that they provide for the prompt and
accurate clearance and settlement of securities transactions including
the safeguarding of securities and funds related thereto.
\3\15 U.S.C. Sec. 78q-1 (1988).
[[Page 5446]]
(B) Self-Regulatory Organizations' Statements on Burden on Competition
MCC and MSTC believe that the proposed rule changes will not place
any burden on competition.
(C) Self-Regulatory Organizations' Statement on Comments on the
Proposed Rule Changes Received From Members, Participants, or Others
MCC and MSTC have neither solicited nor received any written
comments on the proposed rule changes.
III. Date of Effectiveness of the Proposed Rule Changes and Timing for
Commission Action
The foregoing rule changes have become effective pursuant to
Section 19(b)(3)(A)(iii) of the Act\4\ and subparagraph (e)(3) of Rule
19b-4 thereunder\5\ because they are concerned solely with the
administration of the self-regulatory organizations. At any time within
sixty days of the filing of such proposed rule changes, the Commission
may summarily abrogate such rule changes 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.
\4\15 U.S.C. 78s(b)(3)(A)(iii) (1988).
\5\17 CFR 240.19b-4(e)(3) (1994).
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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 changes that are filed
with the Commission, and all written communications relating to the
proposed rule changes 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 at 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 MCC
and MSTC. All submissions should refer to File Numbers SR-MCC-94-15 and
SR-MSTC-94-18 and should be submitted by February 17, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\6\
\6\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-2072 Filed 1-26-95; 8:45 am]
BILLING CODE 8010-01-M
