[Federal Register Volume 59, Number 95 (Wednesday, May 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12044]
[[Page Unknown]]
[Federal Register: May 18, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34040; File No. SR-NSCC-94-05]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Filing and Immediate Effectiveness of the Definition of
Current Market Price
May 11, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 31, 1994, the
National Securities Clearing Corporation (``NSCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change (File No. SR-NSCC-94-05) as described in Items I, II, and III
below, which Items have been prepared primarily by NSCC, 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 U.S.C. 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 amends the definition of ``current market
price'' that is found in NSCC's rules.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NSCC 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. NSCC 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
NSCC states that to operate its continuous net settlement system
``(CNS''), NSCC must be able to price securities cleared through CNS.
Currently, Rule 1 (Definitions and Descriptions) of NSCC's Rules in its
definition of ``current market price'' provides that the price for a
security is determined by the last sale price reported by the
Consolidated Tape Association. NSCC believes, however, that the text of
this rule does not accurately reflect the way in which NSCC
historically has been pricing securities. In fact, NSCC always has
determined price by reference to the closing price on the primary or
principal market where the security is listed. Accordingly, by defining
the current market price of a security to mean the closing price of a
security on its principal market the proposed rule change will conform
NSCC's Rules to NSCC's pricing methodology and, in conjunction with a
recently proposed change to the rules of the Midwest Clearing
Corporation (``MCC''),\2\ will result in conformity between the rules
of NSCC and MCC with regard to securities prices.
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\2\Refer to Securities Exchange Act Release No. 33685 (February
25, 1994), 59 FR 10658 [File No. SR-MCC-93-09] (notice of proposed
rule change).
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NSCC states that the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules thereunder because
it will facilitate the prompt and accurate clearance and settlement of
securities transactions.
B. Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that the proposed rule change will have an
impact on 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
NSCC has not solicited or received any comments on the proposed
rule change. NSCC will notify the Commission of any written comments
received.
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) of the act\3\ and subparagraph (e)(1) of rule 19b-4\4\
because the proposal constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule. 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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\3\15 U.S.C. 78s(b)(3)(A)(i) (1988).
\4\17 CFR 240.19b-4(e)(1) (1991).
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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 Room, 450 Fifth Street, NW., Washington,
DC 20549. Copies of such filing will also be available for inspection
and copying at the principal office of NSCC. All submissions should
refer to File No. SR-NSCC-94-05 and should be submitted by June 8,
1994.
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) (1991).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-12044 Filed 5-17-94; 8:45 am]
BILLING CODE 8010-01-M
