[Federal Register Volume 62, Number 158 (Friday, August 15, 1997)]
[Notices]
[Pages 43763-43764]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21682]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38911; File No. SR-DCC-97-08]
Self-Regulatory Organizations; Delta Clearing Corp.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
to the Amendment of Fees Charged for Options
August 8, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 43764]]
(``Act''),\1\ notice is hereby given that on July 30, 1997, Delta
Clearing Corp. (``DCC'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which items have been prepared primarily by
DCC. 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).
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I. Self Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to amend DCC's fee
schedule for the clearance of options on U.S. Government securities.
II. Self-Regulatory Organization's Statement for the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, DCC included statements
concerning the purpose of and statutory basis for the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. DCC had prepared summaries, set forth in
sections (A), (B), and (C) below, of the most significant aspects of
such statements.\2\
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\2\ The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Currently, DCC charges each party to an options contract submitted
to DCC for settlement a fee based on the maturity date of the option.
Each participant pays five dollars for options that mature within
fourteen days, ten dollars for options that mature within fifteen to
ninety days, and fifteen dollars for options that mature within ninety-
one days to two years.
The proposed rule change amends DCC's fee schedule for the
clearance of options. Each participant will pay a fee of three dollars
for options that mature within thirty-three days, four dollars for
options that mature within thirty-four to sixty-three days, five
dollars for options that mature within sixty-four to 123 days, and
seven dollars for options that mature within 124 days to two years. In
addition, participants will be charged all out of pocket charges
including but not limited to charges by Federal Reserve banks for
delivery of securities and money through FedWire and any charges by
DCC's clearing bank.
DCC believes that the proposed rule change is consistent with
Section 17A(b)(3)(D) of the Act,\3\ which requires that the rules of a
registered clearing agency provide for equitable allocation of
reasonable dues, fees, and other charges for services which it provides
to its participants. DCC believes that the proposed rule change will
result in increased utilization of its clearing services thereby
resulting in more securities transactions being cleared and settled
through a registered clearing agency environment.
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\3\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
DCC does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by DCC, it has become effective pursuant
to Section 19(b) (3)(A)(ii) of the Act \4\ and Rule 19b-4(e)(2)
thereunder.\5\ At any time within sixty days of the filing of the
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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\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\5\ 17 CFR 240.19b(e)(2).
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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, N.W., Washington, D.C. 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 Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at DCC. All submissions should refer to the
File No. SR-DCC-97-08 and should be submitted by September 5, 1997.
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).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-21682 Filed 8-14-97; 8:45 am]
BILLING CODE 8010-01-M
