[Federal Register Volume 59, Number 44 (Monday, March 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5068]
[[Page Unknown]]
[Federal Register: March 7, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33685; File No. SR-MCC-93-09]
Self-Regulatory Organizations; Notice of Proposed Rule Change by
Midwest Clearing Corporation Relating to the Definition of Settlement
Price
February 25, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 23, 1993, the
Midwest Clearing Corporation (``MCC'') 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 prepared
mainly by MCC, a self-regulatory organization (``SRO''). The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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\1\15 USC 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change will amend MCC's definition of the term
``settlement price,'' which is set forth in Article I, Rule 1 of MCC's
Rules. For text of rule change, see Exhibit A.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, MCC 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. MCC has prepared summaries, set forth in section (A),
(B), and (C) below, of the most significant aspects of such statements.
Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule filing is to amend the definition
of the term settlement price, which is set forth in Article I, Rule 1
of MCC's Rules. The term settlement price, as used in MCC's Rules, is
used to determine daily mark-to-market credits or payments, as well as
to value settling trades. The definition of settlement price must be
uniform among clearing corporations in order for the interfaces between
them to function smoothly in the settlement of transactions. This
proposed change, in conjunction with a recently proposed change to the
rules of the National Securities Clearing Corporation (``NSCC''), will
conform MCC's definition of settlement price to actual practice and to
NSCC's definition.
MCC believes that the proposed rule change is consistent with
Section 17A of the Act in that it will facilitate the prompt and
accurate clearance and settlement of securities transactions.\2\
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\2\15 U.S.C. 78q-1 (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
MCC believes that no burden will be placed on competition as a
result of the proposed rule change.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
MCC has neither solicited nor received any comments on this rule
proposal.
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 the self-regulatory organization consents,
the Commission will:
(A) By order approve the 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 submissions, 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 and at the principal office of
MCC. All submissions should refer to File No. SR-MCC-93-09 and should
be submitted by March 28, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\3\
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\3\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
Exhibit A
Additions Are Italicized; Deletions Are [Bracketed]
Article I. Definitions and General Provisions
Rule 1. Definitions
The term ``Settlement Price,'' as used on any Business Day in
respect of any Security, means the closing price (rounded to the
nearest one hundredth (1/100) of a dollar) of such Security on the
principal stock exchange on which such Security is listed on the last
previous day on which there were trades on such exchange in such
Security; or, if such Security is not listed on any exchange, a price
determined in such manner as the Corporation may from time to time
prescribe, based on [reported trades in or quotations for] the last
sale price for such Security in such market as the Corporation shall
deem appropriate, for trades on the business day prior to the day such
price is used. If no closing price or last sale price is available for
the business day prior to the day such price is used, then such price
shall be such price as the Corporation shall deem appropriate [on the
over-the-counter market on the last previous day with respect to which
such trade or quotations, as the case may be, were reported].
Notwithstanding the foregoing, the Corporation may fix the ``settlement
price'' of a Security at such amount (including zero) as it deems
necessary and appropriate in the circumstances to protect the
respective interests of the Participants and the Corporation (a)
whenever trading in such Security has been suspended by order of the
Securities and Exchange Commission or by any securities exchange on
which such Security is listed or by any other authority having power to
suspend trading in such Security, (b) to reflect a dividend or other
distribution on such Security, or (c) in other appropriate
circumstances.
[FR Doc. 94-5068 Filed 3-4-94; 8:45 am]
BILLING CODE 8010-01-M
