[Federal Register Volume 63, Number 124 (Monday, June 29, 1998)]
[Notices]
[Pages 35298-35299]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17234]
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SECURITIES AND EXCHANGE COMMISSION
[Release 34-40112; File No. 600-24]
Self-Regulatory Organizations; Delta Clearing Corp.; Notice of
Filing and Order Approving a Request for Extension of Temporary
Registration as a Clearing Agency
June 23, 1998.
Notice is hereby given that on June 12, 1998, Delta Clearing Corp.
(``DCC'') filed with the Securities and Exchange Commission
(``Commission'') an application pursuant to Section 19(a) of the
Securities Exchange Act of 1934 (``Act'') \1\ to extend DCC's temporary
registration as a clearing agency.\2\ The Commission is publishing this
notice and order to solicit comments from interested persons and to
extend DCC's temporary registration as a clearing agency through July
31, 1999.
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\1\ 15 U.S.C. 78s(a).
\2\ Letter from Stephen K. Lynner, Delta Clearing Corp. (June
11, 1998).
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On January 12, 1990, pursuant to Sections 17A and 19(a) of the Act
\3\ and Rule 17Ab2-1(c) thereunder,\4\ the Commission granted DCC's
application for registration as a clearing agency on a temporary basis
for a period of thirty-six months.\5\ Since that time, the Commission
has extended DCC's temporary registration through July 31, 1998.\6\ DCC
now requests that the Commission grant an extension of DCC's temporary
registration as a clearing agency, subject to the same terms and
conditions expressed in previous orders granting and extending DCC's
temporary registration,\7\ for a period of twelve months or for such
longer period as the Commission deems appropriate.
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\3\ 15 U.S.C. 78q-1 and 78s(a).
\4\ 17 CFR 240.17Ab2-1(c).
\5\ Securities Exchange Act Release No. 27611 (January 12,
1990), 55 FR 1890. Prior to a 1996 name change, DCC was named Delta
Government Options Corp.
\6\ Securities Exchange Act Release Nos. 38869 (July 24, 1997)
62 FR 40871 (extension until July 31, 1998); 31856 (February 11,
1993), 58 FR 9005 (extension until January 12, 1995); 35198 (January
6, 1995), 60 FR 3286 (extension until January 31, 1997); and 38224
(January 31, 1997), 62 FR 5869 (extension until July 31, 1997).
\7\ Supra note 6.
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One of the primary reasons for DCC's registration as a clearing
agency was to enable it to provide for the safe and efficient clearance
and settlement of transactions involving the over-the-counter trading
of options on U.S. Treasury securities. Since that time, the Commission
has approved DCC's request to provide clearance and settlement services
for repurchase agreement transactions involving U.S.
[[Page 35299]]
Treasury securities as the underlying instrument.\8\ Currently,
repurchase agreement transactions constitute the majority of the
transactions cleared by DCC.
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\8\ Securities Exchange Act Release No. 36367 (October 13,
1995), 60 FR 54095.
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As a part of its temporary registration, DCC was granted a
temporary exemption from the requirements of Section 17A(b)(3)(C),\9\
which requires that the rules of a clearing agency assure the fair
representation of its shareholders or members and participants in the
selection of its directors and administration of its affairs. While
Commission staff and DCC staff have had ongoing discussions on DCC's
proposed method of complying with Section 17A(b)(3)(C), the Commission
believes that the issue of DCC's compliance with the fair
representation requirements should be completely resolved before DCC
receives permanent registration as a clearing agency under Section
17A(b) of the Act.\10\
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\9\ 15 U.S.C. 78q-1(b)(3)(C).
\10\ 15 U.S.C. 78q-1(b).
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In light of DCC's past performance, the Commission believes that
DCC complies with the statutory prerequisites for registration as a
clearing agency contained in Section 17A(b)(3) of the Act except for
the fair representation requirement discussed above.\11\ Therefore, the
Commission believes that DCC should continue to be registered on a
temporary basis. Comments received during DCC's temporary registration
will be considered in determining whether DCC should receive permanent
registration as a clearing agency.
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\11\ 15 U.S.C. 78q-1(b)(3).
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Interested persons are invited to submit written data, views, and
arguments concerning the foregoing application. 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 application and all written comments will be
available for inspection and copying at the Commission's Public
Reference Room 450 Fifth Street, NW., Washington, DC 20549. All
submissions should refer to the File No. 600-24 and should be submitted
by July 29, 1998.
It is therefore ordered, pursuant to Section 19(a) of the Act, that
DCC's registration as a clearing agency (File No. 600-24) be and hereby
is temporarily approved through July 31, 1999.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(16).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-17234 Filed 6-26-98; 8:45 am]
BILLING CODE 8010-01-M
