[Federal Register Volume 60, Number 121 (Friday, June 23, 1995)]
[Notices]
[Page 32722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15370]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35853; File No. SR-NSCC-95-05]
Self-Regulatory Organizations; National Securities Clearance
Corporation; Order Granting Accelerated Approval of a Proposed Rule
Change Modifying Procedures Relating to the Trade Comparison Service
for Debt Securities
June 16, 1995.
On April 19, 1995, the National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change (File No. SR-NSCC-95-05)
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'').\1\ On April 27, 1995, NSCC filed an amendment to the
proposed rule change requesting the Commission to consider the rule
filing pursuant to Section 19(b)(2) \2\ of the Act rather than under
Section 19(b)(3)(A) \3\ of the Act as originally filed.\4\ Notice of
the proposal was published in the Federal Register on May 25, 1995.\5\
No comment letters were received. For the reasons discussed below, the
Commission is granting accelerated approval of the proposed rule
change.
\1\ 15 U.S.C. 78s(b)(1) (1988).
\2\ 15 U.S.C. 78s(b)(2) (1988).
\3\ 15 U.S.C. 78s(b)(3)(A) (1988).
\4\ Letter from John P. Barry, Associate Counsel, NSCC, to Peter
Geraghty, Senior Counsel, Division of Market Regulations, Commission
(April 24, 1995).
\5\ Securities Exchange Act Release No. 35733 (May 18, 1995), 60
FR 27800.
---------------------------------------------------------------------------
I. Description of the Proposal
NSCC is modifying its procedures relating to the trade comparison
service for debt securities. Specifically, NSCC is expanding the
parameters for trade input and trade comparison for transactions in
debt securities. The rule change will expand the comparison parameters
for debt securities from $.05 per $1,000 of contract amount to a net
$10 difference per trade for trades of $100,000 or less and to $.10 per
$1,000 of contract amount for trades greater than $100,000. NSCC will
continue to advise participants of money differences for fixed income
transactions on the morning of T+1 when contract prices are reported to
transaction parties.
NSCC expects to implement the proposed rule change during the late
part of the second quarter of 1995. Participants will be notified of
the exact date of this change by an NSCC Important Notice.
II. Discussion
Section 17A(b)(3)(F)\6\ requires that the rules of a clearing
agency be designed to promote the prompt and accurate clearance and
settlement of securities transactions. The Commission believes that
NSCC's proposed rule change is consistent with the requirements of
Section 17A(b)(3)(F) because expanding the comparison parameters for
trades in debt securities should increase the initial trade date
comparison rate for such transactions. Although NSCC has established
comprehensive and effective procedures for the resolution of uncompared
trades,\7\ expanding the comparison parameters to increase the initial
trade date comparison rate should result in a greater number of trades
in debt securities being reported as compared earlier in the settlement
cycle. Earlier comparison should provide greater certainty that those
trades will settle on settlement date. Consequently, NSCC members
should have to spend less time and resources on the supplemental
activity required to resolve uncompared trades. Accordingly, the
Commission believes that the proposed rule change should facilitate a
faster and more effective comparison process and thereby should enhance
the prompt and accurate clearance and settlement of securities
transactions.
\6\ 15 U.S.C. 78q-1(b)(3)(F) (1988).
\7\ NSCC, Rules and Procedures, Procedure II.D.2. (June 7,
1995).
---------------------------------------------------------------------------
NSCC 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 because it will permit NSCC to
notify its members and to begin use of the proposed rule change within
NSCC's implementation schedule. In addition, as of the end of the
period for public comment, the Commission had not received any comment
letters on NSCC's proposal.
III. Conclusion
For the reasons stated above, the Commission finds that the
proposal is consistent with the requirements of Section 17A of the Act
\8\ and the rules and regulations thereunder.
\8\ 15 U.S.C. Sec. 78q-1 (1988).
---------------------------------------------------------------------------
It is Therefore ordered, pursuant to Section 19(b)(2) of the
Act,\9\ that the proposed rule change (File No. SR-NSCC-95-05) be, and
hereby is, approved.
\9\ 15 U.S.C. Sec. 78s(b)(2) (1988).
---------------------------------------------------------------------------
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\10\
\10\ 17 CFR 200.30-3(a)(12) (1994).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-15370 Filed 6-22-95; 8:45 am]
BILLING CODE 8010-01-M
