[Federal Register Volume 60, Number 212 (Thursday, November 2, 1995)]
[Notices]
[Pages 55748-55749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27236]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36430; File No. SR-GSCC-95-03]
Self-Regulatory Organizations; Government Securities Clearing
Corporation; Notice of Filing of a Proposed Rule Change Seeking
Authority To Release Clearing Data Relating to Participants to the
National Securities Clearing Corporation's Collateral Management
Service and Other Parties
October 27, 1995.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 28, 1995, the
Government Securities Clearing Corporation (``GSCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change (File No. SR-GSCC-95-03) as described in Items I, II, and III
below, which items have been prepared primarily by GSCC. On September
13, 1995, GSCC filed an amendment to the proposed rule change to make a
technical correction.\2\ 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).
\2\ Letter from Jeffrey F. Ingber, General Counsel and
Secretary, GSCC, to Peter R. Geraghty, Division of Market
Regulation, Commission (September 13, 1995).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to modify GSCC's rules
to authorize the release of clearing data relating to GSCC's
participants to the National Securities Clearing Corporation's
(``NSCC'') Collateral Management Service (``CMS'') \3\ and to other
parties.
\3\ Infra note 5.
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, GSCC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments that it received on the proposed rule change.
The text of these statements may be examined at the places specified in
Item IV below. GSCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such
statements.\4\
\4\ The Commission has modified the text of the summaries
submitted by GSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The proposal will amend GSCC Rule 1 and GSCC Rule 29 to enable GSCC
to participate in NSCC's CMS.\5\ GSCC Rule 1 (``Definitions'') will be
amended by adding the term ``CFTC-Recognized Clearing Organization''
and to define it as ``a clearing organization that is affiliated with,
or designed by, a contracts market or markets trading specific futures
products, and is under the oversight of the Commodity Futures Trading
Commission.'' The term ``Collateral Management Service'' also will be
added and defined as ``the collateral management information-sharing
service operated by the National Securities Clearing Corporation.''
\5\ Generally, NSCC's CMS will provide participating
participants and clearing agencies with access to information
regarding participating participants' clearing fund, margin, and
other similar requirements and deposits at participating clearing
agencies. For a complete description of the CMS, refer to Securities
Exchange Act Release No. 36091 (August 10, 1995), 60 FR 42931 [File
No. SR-NSCC-95-06] (order approving NSCC's CMS).
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GSCC Rule 29 (``Release of Clearing Data'') will be amended to
permit GSCC to release clearing data to CFTC-Recognized Clearing
Organizations and otherwise to NSCC solely in connection with NSCC
providing its CMS.\6\ Section 4 of Rule 29 will be amended to clarify
that the term ``Clearing Data'' will include other data in addition to
transaction date that is received by GSCC in the clearance and/or
settlement process.
\6\ Section 2(a) of Rule 29 already permits GSCC to release
clearing data to other self-regulatory organizations such as NSCC
that have regulatory authority over a GSCC member. The purpose of
new Section 2(b) is to make explicit GSCC's authority to release
clearing data to NSCC for its CMS.
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GSCC believes the proposed rule change is consistent with Section
17A of the Act and the rules and regulations thereunder because the
rule proposal should help to safeguard securities and funds in its
custody or control or for which it is responsible.
(B) Self-Regulatory Organization's Statement on Burden on Competition
GSCC does not believe that the proposed rule change will impact 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. GSCC will notify the Commission of any written
comments received by GSCC.
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 GSCC 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 NW., Washington, DC 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 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 filing will also be available for
inspection and copying at the principal office of GSCC. All submissions
should refer to the file number SR-GSCC-95-03 and should be submitted
by November 24, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
\7\ 17 CFR 200.30-3(a)(12) (1994).
[[Page 55749]]
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-27236 Filed 11-1-95; 8:45 am]
BILLING CODE 8010-01-M
