[Federal Register Volume 59, Number 58 (Friday, March 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7076]
[[Page Unknown]]
[Federal Register: March 25, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33782; File No. SR-ICC-94-02]
Self-Regulatory Organizations; The Intermarket Clearing
Corporation; Filing and Immediate Effectiveness of a Proposed Rule
Change Relating to Rules Regarding Insider Trading Prohibitions
March 17, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 25, 1994, The
Intermarket Clearing Corporation (``ICC'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change as
described in Items I, II and III below, which Items have been primarily
prepared by ICC. On February 25, 1994, ICC submitted an amendment to
conform the proposed rule change to comments received by ICC from the
staff of the Commodity Futures Trading Commission (``CFTC'').\2\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\15 U.S.C. 78s(b)(1) (1988).
\2\Letter from Robert S. Steigerwald [Attorney], ICC, to Jerry
W. Carpenter, Chief, Branch of Equity and Derivative Clearing Agency
Regulation, Division of Market Regulation, Commission (February 25,
1994).
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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 amend ICC's Rules
prohibiting insider trading to conform with recent amendments to
Regulation 1.59\3\ of the CFTC.
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\3\17 CFR 1.59.
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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, ICC 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. ICC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The proposed rule change will amend ICC's Rules prohibiting the
misuse of material, nonpublic information to conform with recent
amendments to CFTC Regulation 1.59. In general, conforming amendments
to ICC's Rules are necessary because Regulation 1.59, as amended: (1)
Changes certain of the definitions that are effective for purposes of
the insider trading rules of self-regulatory organizations (``SROs'');
and (2) requires SROs to adopt and maintain rules prohibiting trading
in commodity interests traded on or cleared by linked exchanges of such
SROs. In addition, amendments to ICC's Rules are necessary to ensure
the conformity of references to the term ``non-public.''
Conforming references to the term ``non-public'' have been made
throughout Rule 222 and reference is made in Rule 222 to the
Interpretations and Policies following Rule 222. In addition, the scope
of ICC's insider trading prohibition is extended to reach any commodity
interest traded on or cleared by any linked exchange of ICC.\4\ At
present, there are no commodity interests that are traded on or cleared
by any linked exchange of ICC. The definitions of the terms ``linked
exchange,'' ``material information,'' ``non-public information,'' and
``related commodity interest'' have been amended in Interpretations and
Policies .01 of Rule 222 to conform with amendments to CFTC Regulation
1.59.
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\4\ICC Rule 222(b).
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ICC believes the proposed amendments are consistent with the
requirements of section 17A(b)(3)(F)\5\ of the Act in that the
amendments will protect investors and the public interest by extending
the reach of ICC's prohibitions on the misuse of material, non-public
information.
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\5\15 U.S.C. Sec. 78q-1(b)(3)(F).
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B. Self-Regulatory Organization's Statement on Burden on Competition
ICC does not believe that the proposed rule change will impose any
burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Comments concerning the proposed rule change were not and are not
intended to be solicited in connection with the proposed rule change,
and none have been received by ICC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to section
19(b)(3)(A)(i)\6\ of the Act and pursuant to Rule 19b-4(e)(1)\7\ in
that it affects the interpretation with respect to the meaning,
administration, and enforcement of ICC's existing rules relating to
insider trading prohibitions At any time within sixty days of the
filing of such proposed rule change, the Commission may summarily
abrogate such rule change 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.
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\6\15 U.S.C. Sec. 78s(b)(3)(A)(i).
\7\17 CFR 240.19b-4(e)(1) (1993).
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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 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 ICC. All submissions
should refer to File No. SR-ICC-94-02 and should be submitted by April
15, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-7076 Filed 3-24-94; 8:45 am]
BILLING CODE 8010-01-M
