[Federal Register Volume 61, Number 160 (Friday, August 16, 1996)]
[Notices]
[Pages 42670-42671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20928]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37553; File No. SR-BSE-96-06]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing of Proposed Rule Change Relating to Authorized Uses
for Specialists' Minimum Equity Deposits
August 9, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 14, 1996, the Boston
Stock Exchange, Inc. (``BSE'') 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
BSE. On July 23, 1996, BSE filed an amendment to the proposed rule
change.\2\ The Commission is publishing this notice to solicit comments
from interested persons.
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\1\ 15 U.S.C. 78s(b)(1) (1988).
\2\ Letter from Karen A. Aluise, Assistant Vice President, BSE,
to Mark Steffensen, Division of Market Regulation, Commission (July
19, 1996).
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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 permit the Boston
Stock Exchange Clearing Corporation (``Clearing Corporation'') to use a
portion of deposits made by specialists pursuant to BSE rules as
clearing fund deposits.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, BSE 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. The self-regulatory organization has prepared summaries,
set forth in sections (A), (B), and (C) below, of the most significant
aspects of such statements.\3\
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\3\ The Commission has modified the language in these sections.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
BSE proposes to amend Chapter XXII, Section 2(f) of its rules to
clarify the authority of the Clearing Corporation to access a portion
of specialists' \4\ liquidating equity deposits as clearing fund.
Section 2(f), Chapter XXII of BSE's rules requires specialists to
maintain a liquidating equity deposit of $200,000 per specialist
account (``minimum equity requirement'') with the Clearing Corporation.
Under the proposed rule change, Section 2(f) will be amended to provide
that the minimum equity requirement may be utilized by the Clearing
Corporation and will be deemed to be clearing fund up to the amount
required to be deposited as clearing fund pursuant to the Clearing
Corporation's rules. Such provision only applies to specialists that
also are members of the Clearing Corporation.
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\4\ Pursuant to Chapter XV, Section 1 of BSE rules, a member may
be registered as a specialist upon application to and with the
consent of BSE. A specialist is subject to the rules contained in
Chapter XIV of BSE's rules.
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The Clearing Corporation's rules currently require a minimum $6,000
clearing fund deposit by its members. Contemporaneously with this
proposal, the Clearing Corporation has filed a separate proposed rule
change (File No. SR-BSECC-96-02) that will amend its Rule II, Section 1
regarding clearing fund. That rule proposal will permit BSE specialists
to satisfy their clearing fund deposit requirements set forth in
Section 2 of Clearing Corporation Rule II through use of their deposits
required pursuant to BSE's minimum equity requirement.
BSE believes the proposed rule change is consistent with the
requirements of Section 6(b)(5) of the Act \5\ and the rules and
regulations thereunder because it is designed to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities and, in general, to protect investors and the public
interest.
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\5\ 15 U.S.C. 78f(b)(5) (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
BSE believes the proposed rule change will impose no burden on
competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
BSE has neither solicited nor received comments on the proposed
rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) as the
Commission may designate up to
[[Page 42671]]
ninety days of such date if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which BSE consents, the Commission will:
(A) By order approve such proposed rule change or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submission
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington DC 20549. Copies
of the submissions, 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 5th Street, NW., Washington,
DC 20549. Copies of such filings will also be available for inspection
and copying at the principal office of BSE. All submissions should
refer to file number SR-BSE-96-06 and should be submitted by September
6, 1996.
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) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-20928 Filed 8-15-96; 8:45 am]
BILLING CODE 8010-01-M
