[Federal Register Volume 59, Number 114 (Wednesday, June 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14529]
[[Page Unknown]]
[Federal Register: June 15, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34187; File No. SR-MCC-93-09]
Self-Regulatory Organizations; Midwest Clearing Corporation;
Order Approving Proposed Rule Change Amending the Definition of
Settlement Price
June 9, 1994.
On December 23, 1993, the Midwest Clearing Corporation (``MCC'')
filed a proposed rule change (File No. SR-MCC-93-09) with the
Securities and Exchange Commission (``Commission'') pursuant to Section
19(b)(1) of the Securities Exchange Act of 1934 (``Act'').\1\ Notice of
the proposals was published in the Federal Register on March 7,
1994.\2\ No comments were received by the Commission. This order
approves the proposal.
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\1\15 U.S.C. 78s(b)(1) (1988).
\2\Securities Exchange Act Release No. 33685 (February 25,
1994), 59 FR 10685.
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I. Description of the Proposal
The rule change amends MCC's definition of the term ``settlement
price,'' which is set forth in Article I, Rule 1 of MCC's Rules. In
essence, the amended rule now provides that the settlement price shall
be the closing price or the last sale price on the business day prior
to the day such price is used, but where no closing price or last sale
price is available for the prior business day, the settlement price
shall be a price which MCC deems appropriate.
II. Discussion
The Commission believes that the proposal is consistent with the
Act and particularly with Section 17A of the Act.\3\ Section
17A(b)(3)(F) of the Act requires that the rules of clearing agencies be
designed to foster cooperation and coordination with persons engaged in
the clearance and settlement of securities transactions and to remove
impediments to and perfect the mechanism of a national market system
for the clearance and settlement of securities transactions.\4\
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\3\15 U.S.C. 78q-1 (1988).
\4\15 U.S.C. 78q-1(b)(3)(F) (1988).
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The term settlement price is used by MCC and other clearing
agencies to determine daily mark-to-market credits or debits and to
value settling trades. Accordingly, the definition of settlement price
should be uniform among clearing corporations in order for interfaces
between them to function smoothly in the settlement of transactions.
This rule change, in conjunction with a recent rule change to the rules
of the National Securities Clearing Corporation (``NSCC''), will
conform MCC's definition of settlement price to NSCC's definition of
that term.\5\ Consequently, the Commission believes that this technical
rule change will foster cooperation and coordination and will help
perfect the national clearance and settlement system and, therefore, is
consistent with the Act.
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\5\Securities Exchange Act Release No. 34040 (May 11, 1994), 59
FR 25975 [File No. SR-NSCC-94-05] (notice of filing and immediate
effectiveness of a proposed rule change).
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III. Conclusion
For the reasons discussed above, the Commission believes that the
proposal is consistent with the requirements of the Act, particularly
with Section 17A of the Act, and the rules and regulations thereunder.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\6\ that the above-mentioned proposed rule change (File No. SR-MCC-
93-09) be, and hereby is, approved.
\6\15 U.S.C. 78s(b)(2) (1988).
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For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-14529 Filed 6-14-94; 8:45 am]
BILLING CODE 8010-01-M
