[Federal Register Volume 61, Number 77 (Friday, April 19, 1996)]
[Notices]
[Page 17339]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9693]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37113; File No. SR-MCC-96-03]
Self-Regulatory Organizations; Midwest Clearing Corporation;
Order Granting Accelerated Approval of a Proposed Rule Change Relating
to the Pass-Through of Certain Fees and Charges and the Elimination of
All Other Charges
April 15, 1996.
On March 1, 1996, the Midwest Clearing Corporation (``MCC'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change (File No. SR-MCC-96-03) pursuant to Section
19(b)(1) of the Securities Exchange Act of 1934 (``Act'') relating to
the pass-through of certain fees and charges and the elimination of all
other charges.\1\ On March 7, 1996, MCC amended the filing.\2\ Notice
of the proposal was published in the Federal Register on March 22,
1996.\3\ No comment letters were received. For the reasons discussed
below, the Commission is granting accelerated approval of the proposed
rule change.
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\1\ 15 U.S.C. 78s(b)(1) (1988).
\2\ MCC originally filed the proposed rule change under Section
19(b)(3)(A) of the Act. On March 7, 1996, MCC requested that the
proposal be considered filed under Section 19(b)(2) of the Act.
Telephone conversation between David T. Rusoff, Foley and Lardner
[counsel to MCC], and Jerry W. Carpenter, Assistant Director, Peter
R. Geraghty, Senior Counsel, and Cheryl O. Tumlin, Attorney,
Division of Market Regulation, Commission (March 7, 1996).
\3\ Securities Exchange Act Release No. 36982 (March 18, 1996),
61 FR 11913.
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I. Description
The proposed rule change permits MCC to charge Sponsored
Participants (``SPs'') and Temporary Sponsored Participants (``TSPs'')
at cost the fees and charges assessed on MCC by the National Securities
Clearing Corporation (``NSCC'') in connection with SPs' and TSPs' use
of NSCC's services. The proposed rule change also eliminates all other
existing MCC fees. MCC is eliminating its existing fee schedule in its
entirety and replacing it with the following schedule.
Sponsored Participants and Temporary Sponsored Participants
Fees and Charges Assessed on MCC by the National Securities Clearing
Corporation
Charge: Rebilled at Cost.
II. Discussion
Section 17A(b)(3)(D) \4\ of the Act requires that the rules of a
clearing agency provide for the equitable allocation of dues, fees, and
other charges among MCC's participants. In addition, Section
17A(b)(3)(F) \5\ 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 transactions. The
Commission believes MCC's proposed rule change is consistent with the
requirements of Section 17A(b)(3)(D) because MCC will be charging SPs
and TSPs at cost NSCC's fees and charges assessed on MCC for such SPs'
and TSPs' use of NSCC's services. The Commission believes the proposal
is consistent with Section 17A(b)(3)(F) in that it should foster
cooperation and coordination with persons engaged in the clearance and
settlement of securities transactions by allowing MCC to pass through
the NSCC charges to the parties utilizing NSCC's services.
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\4\ 15 U.S.C. 78q-1(b)(3)(D) (1988).
\5\ 15 U.S.C. 78q-1(b)(3)(F) (1988).
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MCC 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 so approving the proposed rule change because accelerated approval
will allow MCC to not make charges under its existing fee schedule and
to pass through charges to SPs and TSPs contemporaneously with NSCC
assessing charges on MCC for its services to such participants.
III. Conclusion
On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
in particular Section 17A of the Act and the rules and regulations
thereunder.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-MCC-96-03) be, and hereby
is, approved.
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) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-9693 Filed 4-18-96; 8:45 am]
BILLING CODE 8010-01-M
