[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31883]
[Federal Register: December 28, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35129; File No. SR-DGOC-94-05]
Self-Regulatory Organizations; Delta Government Options Corp.;
Order Approving Proposed Rule Change Relating to Procedures for
Emergency Contingencies and Disaster Recovery
December 20, 1994.
On September 9, 1994, pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act''),\1\ the Delta Government
Options Corp. (``Delta'') filed with the Securities and Exchange
Commission (``Commission'') a proposed rule change to establish
procedures for emergency contingencies and disaster recovery. On
September 23, 1994, Delta filed an amendment to the proposed rule
change.\2\ On November 10, 1994, the Commission published notice of the
proposed rule change in the Federal Register to solicit comments from
interested persons.\3\ No comments were received. This order approves
the proposal.
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\1\15 U.S.C. Sec. 78s(b)(1) (1988).
\2\Letter from Barry E. Silverman, President, Delta, to Jerry W.
Carpenter, Assistant Director, Securities Processing Regulation,
Division of Market Regulation, Commission (September 22, 1994).
\3\Securities Exchange Act Release No. 34939 (November 3, 1994),
59 FR 56099.
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I. Description
The proposed rule change modifies Delta's Over-The-Counter Options
Trading System Procedures (``Procedures'') to establish emergency
contingencies and disaster recovery procedures. In particular, the
proposal adopts a new Article XIX to Delta's Procedures. Article XIX
contains provisions governing (1) the waiver or suspension of Delta's
procedures (Section 1901); (2) action on behalf of Delta by Delta's
management (Section 1902); and (3) interpretation by Delta's management
of Delta's rules (Section 1903).
Section 1901 permits Delta's Board of Directors, Chairman of the
Board, President, Vice President, Chief Financial Officer, Secretary,
or Controller (1) to extend the time fixed by any provision of Delta's
Procedures or any regulations issued by Delta for the doing of any act
or acts or (2) to waive or to suspend any provision of Delta's
Procedures or any regulations issued by Delta if they judge such
extensions, waiver, or suspension to be necessary or expedient. The
extension, waiver, or suspension may remain in effect only for sixty
days unless approved by Delta's Board of Directors.
Section 1901 requires that a written report of the extension,
waiver, or suspension be filed with Delta and be available for
inspection by any participant. The written report must set forth the
pertinent facts, the identity of the person who authorized the
extension, waiver, or suspension, and the reason the extension, waiver,
or suspension was deemed necessary or expedient. No written report will
be required for extensions of time of less than eight hours.
Section 1902 permits Delta's Board of Directors, Chairman of the
Board, President, Vice President, Chief Financial Officer, Secretary,
Controller, or other persons designated by Delta's Board of Directors
to act on behalf of Delta except where Delta's Procedures require
action by the Board of Directors. Section 1903 authorizes Delta's Board
of Directors, Chairman of the Board, President, any committee of the
Board of Directors, or any designee of the Board of Directors to
interpret Delta's Procedures.
II. Discussion
Section 17A(b)(3)(F) of the Act provides that the rules of a
clearing agency must promote the prompt and accurate clearance and
settlement of securities transactions and must assure the safeguarding
of securities and funds which are in the custody or control of the
clearing agency or for which it is responsible.\4\ The proposed rule
change establishes contingency planning and disaster recovery
procedures that can be used in the event of an emergency, market
disruption, or other unanticipated event in order to permit Delta to
maintain continuous operations while safeguarding the assets under its
custodianship. The Commission believes that the proposed rule change
strikes an appropriate balance between permitting management to respond
quickly to emergencies without giving upper management unwarranted
discretion.
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\4\15 U.S.C. Sec. 78q-1(b)(3)(F) (1988).
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III. Conclusion
For the reasons stated above, the Commission finds that the
proposed rule change is consistent with Section 17A of the Act.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-DGOC-94-05) be, and hereby
is, approved.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-31883 Filed 12-27-94; 8:45 am]
BILLING CODE 8010-01-M
