[Federal Register Volume 61, Number 37 (Friday, February 23, 1996)]
[Notices]
[Pages 7033-7034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4125]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36856; File Nos. SR-MCC-96-01 and SR-MSTC-96-01]
Self-Regulatory Organizations; Midwest Clearing Corporation;
Midwest Securities Trust Company; Notice of Filing and Immediate
Effectiveness of Proposed Rule Changes Relating to the Termination
Dates for Services Provided by Midwest Clearing Corporation and Midwest
Securities Trust Company
February 16, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 29, 1996, the
Midwest Clearing Corporation (``MCC'') and the Midwest Securities Trust
Company (``MSTC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule changes (File Nos. SR-MCC-96-01 and
SR-MSTC-96-01) as described in Items I, II, and III below, which items
have been prepared primarily by MCC and MSTC. On February 8, 1996, MCC
and MSTC filed amendments to the proposed rule changes to make
technical corrections not affecting the substance of the proposals.\2\
The Commission is publishing this notice to solicit comments from
interested persons.
\1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
\2\ Letters from George T. Simon, Foley & Lardner [counsel to
MCC/MSTC], to Jerry Carpenter, Senior Attorney, Division of Market
Regulation, Commission (January 26, 1996).
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I. Self-Regulatory Organizations' Statement of the Terms of Substance
of the Proposed Rule Changes
MCC and MSTC propose to notify their participants of the transition
dates selected for the final termination of MCC's and MSTC's services.
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 statement may be examined at the places
specified in Item IV below. MCC and MSTC have prepared summaries, set
forth in section (A), (B) and (C) below, of the most significant
aspects of such statements.\3\
\3\ The Commission has modified the text of the summaries
prepared by MCC and MSTC.
[[Page 7034]]
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(A) Self-Regulatory Organizations' Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Changes
On January 5, 1996, the Commission approved proposed rule changes
filed by MCC, MSTC, and Chicago Stock Exchange, Incorporated (``CHX'')
regarding a decision by MCC, MSTC, and CHX to terminate as of January
15, 1996, securities clearing, depository, and other services offered
by CHX, MCC, MSTC, and the Securities Trust Company of New Jersey, a
CHX subsidiary, in conjunction with an agreement with the National
Securities Clearing Corporation and The Depository Trust Company.\4\
\4\ Securities Exchange Act Release No. 36684 (January 5, 1996),
61 FR 1195, [File Nos. SR-MCC-95-04 and SR-MSTC-95-10] (order
approving proposed rule changes).
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MCC and MSTC propose to issue an Administrative Bulletin listing
the termination dates for various MCC and MSTC services.\5\ The
bulletin advises MCC and MSTC participants that they should have
alternative clearing and/or depository arrangments in advance of MCC/
MSTC's last service date and that participant action taken after the
last day for the MCC/MSTC service will result in rejected and/or
reclaimed instructions. In addition, the bulletin notes that MCC and
MSTC will continue to perform limited security processing functions
until all participant positions have been eliminated. Furthermore, the
bulletin advises that MCC and MSTC recognize that certain firms may
have a small number of safekeeping positions remaining at MSTC and that
MCC/MSTC intend to work with each firm on a case-by-case basis to
convert or exit the positions.
\5\ The Administrative Bulletin is attached as Exhibit A to
MCC's and MSTC's respective proposed rule changes and is available
in the Commission's Public Reference Room or through MCC or MSTC.
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MCC and MSTC believe that the proposed rule changes are consistent
with Section 17A of the Act and the rules and regulations thereunder
because they will facilitate the prompt and accurate clearance and
settlement of securities transactions.
(B) Self-Regulatory Organizations' Statement on Burden on Competition
MCC and MSTC do not believe the proposed rule changes will impose a
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
(C) Self-Regulatory Organizations' Statement on Comments on the
Proposed Rule Changes Received From Members, Participants or Others
Written comments on the proposals have not been solicited or
received.
III. Date of the 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)(i) \6\ of the Act and pursuant to Rule 19b-4(e)(1)
\7\ promulgated thereunder because each proposal constitutes a stated
policy, practice or interpretation with respect to the meaning,
administration or enforcement of an existing rule of MCC and MSTC. At
any time within sixty days of the filing of such 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.
\6\ 15 U.S.C. 78s(b)(3)(A)(i) (1988).
\7\ 17 CFR 240.19b-4(e)(1) (1995).
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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 submission
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
Copies of the submissions, 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
in the Commission's Public Reference Room, 450 Fifth Street, N.W.,
Washington, D.C. Copies of such filing also will be available for
inspection and copying at the principal office of MCC. All submissions
should refer to the file numbers SR-MCC-96-01 and SR-MSTC-96-01 and
should be submitted by March 15, 1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
\8\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-4125 Filed 2-22-96; 8:45 am]
BILLING CODE 8010-01-M
