[Federal Register Volume 60, Number 210 (Tuesday, October 31, 1995)]
[Notices]
[Page 55399]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26896]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36411; International Series Release No. 874; File No.
600-20]
Self-Regulatory Organizations; International Securities Clearing
Corporation; Notice of Filing of a Request for Extension of Temporary
Registration as a Clearing Agency
October 25, 1995.
Notice is hereby given that on October 23, 1995, the International
Securities Clearing Corporation (``ISCC'') filed with the Securities
and Exchange Commission (``Commission'') an application pursuant to
Section 19(a)(1) of the Securities Exchange Act of 1934 (``Act''),\1\
to extend ISCC's temporary registration as a clearing agency for a
period of twenty-four months or such longer period as the Commission
deems appropriate.\2\ The Commission is publishing this notice to
solicit comments on the request for extension of registration from
interested persons.
\1\ 15 U.S.C. 78s(a)(1) (1988).
\2\ Letter from Julie Beyers, Associate Counsel, ISCC, to
Christine Sibille, Senior Counsel, Office of Securities Processing,
Division of Market Regulation, Commission (October 20, 1995).
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On May 12, 1989, the Commission granted the application of ISCC for
registration as a clearing agency pursuant to Sections 17A and 19(a) of
the Act \3\ and Rule 17Ab2-1(c) thereunder on a temporary basis for a
period of eighteen months.\4\ At that time, the Commission granted to
ISCC a temporary exemption from compliance with Section 17A(b)(3)(C) of
the Act which requires fair representation of its shareholders (or
members) and participants in the selection of its directors and
administration of its affairs.\5\ Since that time, the Commission has
extended ISCC's temporary registration through November 30, 1995.\6\
\3\ 15 U.S.C. 78q-1 and 78s(a) (1988).
\4\ Securities Exchange Act Release No. 26812 (May 12, 1989), 54
FR 21691.
\5\ Currently, ISCC's Board of Directors is authorized for a
maximum of twenty-two members. Twelve of those directors are
selected from the general partners or officers of participants by
ISCC's nominating committee. Two directors must be officers of ISCC.
Eight directors are nominees of National Securities Clearing
Corporation (``NSCC''), the sole shareholder of ISCC. Participants
may submit names to ISCC's Nominating Committee by submitting a
petition to ISCC's Secretary signed by the lesser of 5% of the
participants or fifteen participants. If a participant nominates a
candidate for participant director, ballots are sent out to all
participants to vote in accordance with their usage of ISCC's
system. NSCC will vote its shares to elect the participant directors
selected by the participants.
\6\ Securities Exchange Act Release Nos. 28606 (November 16,
1990), 55 FR 47976; 30005 (November 27, 1991), 56 FR 63747; and
33233 (November 22, 1993), 58 FR 63195.
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One of the primary reasons for ISCC's registration as a clearing
agency was to enable it to provide for the safe and efficient clearance
and settlement of international securities transactions by providing
links to centralized, efficient processing systems in the United States
and in foreign financial institutions. ISCC continues to develop its
capacity to offer these services.\7\
\7\ For example, ISCC has added three service providers,
Standard Bank of South Africa, Westpac Custodian Nominees Limited of
Australia, and Wespac Nominees-NZ-Limited, to its Global Clearance
Network Service to provide settlement and custody services in South
Africa, Australia, and New Zealand, respectively. Securities
Exchange Act Release Nos. 35392 (February 16, 1995), 60 FR 10415 and
36339 (October 5, 1995), 60 FR 53447.
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As a part of its temporary registration, ISCC has an exemption from
Section 17A(b)(3)(C) of the Act due to ISCC's limited participant
base.\8\ ISCC has represented to the Commission that it believes it
still does not have a meaningful participant base with only thirty-
seven of the forty-four ISCC members currently using ISCC services.\9\
This is an increase of seventeen active members since ISCC received its
most recent registration extension in 1993. ISCC continues to believe
that if its participants are given an ability to participate in the
selection of the board of directors in accordance with Section
17A(b)(3)(C) of the Act, these participants will have an inordinate and
unintended control of the nomination and voting processes. Accordingly,
ISCC requests an extension of its registration approval with a
continuation of this exemption.\10\
\8\ 15 U.S.C. Sec. 78q-1(b)(3)(C) (1988).
\9\ Eleven of these members use ISCC's link with the London
Stock Exchange. Three members use ISCC's link with CEDEL. Five
members use ISCC's link with Euroclear. Thirty-two members use
ISCC's Global Clearance Network Service.
\10\ Supra note 2.
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Interested persons are invited to submit written data, views, and
arguments concerning the foregoing application. Such written data,
views, and arguments will be considered by the Commission in granting
registration or instituting proceedings to determine whether
registration should be denied in accordance with Section 19(a)(1) of
the Act.\11\ Persons making written submissions should file six copies
thereof with the Secretary, Securities and Exchange Commission, 450
Fifth Street NW., Washington, D.C. 20549. Copies of the applicant and
all written comments will be available for inspection at the
Commission's Public Reference Room, 450 Fifth Street, N.W., Washington,
D.C. 20549. All submissions should refer to File No. 600-20 and should
be submitted by November 30, 1995.
\11\ 15 U.S.C. Sec. 78s(a)(1) (1988).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
\12\ 17 C.F.R. Sec. 200.30-3(a)(16) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-26896 Filed 10-30-95; 8:45 am]
BILLING CODE 8010-01-M
