[Federal Register Volume 63, Number 70 (Monday, April 13, 1998)]
[Notices]
[Pages 18054-18055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9662]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39834; File No. SR-EMCC-98-2]
Self-Regulatory Organizations; Emerging Markets Clearing
Corporation; Notice of Filing and Order Granting Accelerated Approval
of Proposed Rule Change Relating to the Definition of ``Settlement
Day''
April 6, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on April 1, 1998, the
Emerging Markets Clearing Corporation (``EMCC'') 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 EMCC. The Commission is publishing this notice
and order to solicit comments from interested persons and to grant
accelerated approval of the proposed rule change.
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\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 amends the definition of ``Settlement
Day'' in EMCC's rules to provide for recommendations by trade
organizations.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, EMCC 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. EMCC has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.\2\
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\2\ The Commission has modified the text of the summaries
prepared by EMCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
From time to time, trade associations, such as the Emerging Markets
Trading Association (``EMTA'' \3\), publish schedules that establish
recommended trading and settlement dates for the emerging markets debt
marketplace. According to EMCC, it needs to have the ability to
coordinate its settlement activities in a manner that is consistent
with the settlement schedule recommended by these organizations.
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\3\ EMTA is the trade association of those involved in trading
emerging market instruments.
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Currently, EMCC's rules define ``settlement day'' as the day on
which an EMCC eligible instrument is scheduled to settle as established
by the original contraparties to the transaction. The proposed rule
change amends the definition of settlement day to enable EMCC to change
the date designated as the settlement day by the contraparties if a
trade organization recommends a different day as a settlement date.
Before changing the settlement day, EMCC will issue an Important Notice
to notify its members of the change. Nevertheless, the contraparties
may use their original settlement date if they agree to settle their
trade outside of EMCC.\4\
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\4\ As amended, settlement day will be defined as ``the day on
which the EMCC Eligible Instrument Transaction is scheduled to
settle as established by the original contra-parties to the
transaction. Notwithstanding the foregoing, if a trade organization
issues a notice suggesting that a day not be a settlement date, and
Members submit trades indicating such day as the Settlement Day, the
Corporation, in its sole discretion, may change the Settlement Day
to the next date with a settlement date as recommended by the trade
organization.''
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EMCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules and regulations
thereunder because it will provide EMCC with the flexibility to
coordinate settlement dates with the appropriate industry trade
organizations.
(B) Self-Regulatory Organization's Statement on Burden on Competition
EMCC 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
No written comments relating to the proposed rule change have been
solicited or received. EMCC will notify the Commission of any written
comments received by EMCC.
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 foster cooperation and coordination with
persons engaged in the clearance and settlement of securities. The
Commission believes that allowing EMCC to amend the
[[Page 18055]]
definition of settlement day will enable EMCC to better coordinate its
settlement activities with the recommendations of the appropriate trade
associations.
EMCC has requested that the Commission find good cause for
approving the proposed rule change prior to the thirtieth day after the
date of publication of notice of the filing. The Commission finds good
cause for approving the proposed rule change prior to the thirtieth day
after publication of notice. EMTA has recommended that the emerging
markets debt marketplace be closed in the U.S. on Good Friday, April
10, 1998, and has issued a settlement schedule recommending that
transactions which would otherwise be scheduled to settle on April 10,
1998, settle on April 13, 1998. Accelerated approval will give EMCC
adequate time to notify its members of the change in the settlement
date.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. 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 EMCC. All
submissions should refer to File No. SR-EMCC-98-2 and should be
submitted by May 4, 1998.
It Is Therefore Ordered, pursuant to Section 19(b)(2) of the
Act,\5\ that the proposed rule change (File No. SR-EMCC-98-2) be and
hereby is approved.
\5\ 15 U.S.C. 78s(b)(2).
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For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-9662 Filed 4-10-98; 8:45 am]
BILLING CODE 8010-01-M
