[Federal Register Volume 62, Number 38 (Wednesday, February 26, 1997)]
[Notices]
[Pages 8810-8811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4751]
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SECURITIES AND EXCHANGE COMMISSION
[(Release No. 34-38313); File No. SR-PTC-96-06]
Self-Regulatory Organizations; Participants Trust Company; Notice
of Filing and Order Granting Accelerated Approval of Proposed Rule
Change to Authorize the Release of Clearing Data
February 19, 1997.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on November 22, 1996, the
Participants Trust Company (``PTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which items have been prepared
primarily by PTC. The Commission is publishing this notice and order to
solicit comments from interested persons and to grant accelerated
approval of the proposed rule change.
\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The proposed rule change modifies Article VI of PTC's rules to add
a new Rule 14 which authorizes PTC to release transaction and other
data relating to participants obtained by PTC in the normal course of
business.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, PTC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. PTC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such
statements.\2\
\2\ The Commission has modified the text of the summaries
prepared by PTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to modify Article VI of
PTC's rules to add a new Rule 14 which authorizes PTC to release
transaction and other data relating to participants obtained by PTC in
the normal course of its business. The rule will permit PTC to disclose
such data to (1) regulatory, self-regulatory, other similar
organizations, (2) clearing organizations which are under the oversight
of the
[[Page 8811]]
Commodity Futures Trading Commission, and (3) to other entities as may
be authorized by a participant. The proposed rule change will allow PTC
to participate in the National Securities Clearing Corporation's
(``NSCC'') Collateral Management Service (``CMS'') \3\ and to provide
information to the CMS database regarding PTC's participants' net debit
and credit balances, participants' fund deposits, including excess
(deficit) amounts, and comprehensive data on underlying collateral.
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\3\ Securities Exchange Act Release No. 35809 (June 5, 1995), 60
FR 30912 [File No. SR-NSCC-95-06] (order approving proposed rule
change establishing the CMS).
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PTC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules and regulations
thereunder because it sets forth PTC's responsibilities and obligations
with regard to releasing participant's clearing data and facilitates
PTC's participation in the CMS database by permitting PTC to provide
participant information to the CMS database.
(B) Self-Regulatory Organization's Statement on Burden on Competition
PTC 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 have been solicited or received. PTC will
notify the Commission of any written comments received by PTC.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Section 17A(b)(3)(F) of the Act requires that the rules of a
clearing agency be designed to 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 Commission believes the proposed
rule change is consistent with PTC's obligation under Section
17A(b)(3)(F) because the proposal sets forth PTC's responsibilities and
obligations with regard to releasing participants' clearing data and
should facilitate PTC's participation in NSCC's CMS by allowing PTC to
provide participant information to NSCC for use in its CMS. PTC's and
its participants' participation in NSCC's CMS should help PTC and other
clearing agencies to better monitor their clearing members' clearing
fund, margin, and other similar required deposits that protect the
clearing agencies against loss should a member default on its
obligations.
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\4\ 15 U.S.C. 78q-1(b)(3)(F).
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The Commission finds good cause for approving the proposed rule
change prior to the thirtieth day after the date of publication of
notice of the filing because accelerated approval will allow PTC to
immediately participate in NSCC's CMS thus allowing both PTC and other
clearing agency participants in the CMS to benefit from the data
contained in CMS regarding common participants.
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, N.W., Washington, D.C. 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, N.W.,
Washington, D.C. 20549. Copies of such filing also will be available
for inspection and copying at the principal office of PTC. All
submissions should refer to File No. SR-PTC-96-06 and should be
submitted by March 19, 1997.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-PTC-96-06) be, and hereby
is, approved.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-4751 Filed 2-25-97; 8:45 am]
BILLING CODE 8010-01-M
