[Federal Register Volume 59, Number 166 (Monday, August 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21175]
[[Page Unknown]]
[Federal Register: August 29, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34568; File No. SR-OCC-94-09]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Canadian Depository Participation in the On-Line Escrow
Receipt Depository System
August 22, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 20, 1994, The Options
Clearing Corporation (``OCC'') 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
OCC. The Commission is publishing this notice to solicit comments on
the proposed rule changes from interested persons.
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\1\15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change permits Canadian depositories to
participate in OCC's on-line Escrow Receipt Depository system.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filings with the Commission, OCC included statements
concerning the purpose of and basis for the proposed rule changes. The
text of these statements may be examined at the places specified in
Item IV below. OCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In 1986, the Commission approved an OCC rule change that permitted
Canadian depositories to issue escrow receipts.\2\ That rule change
consisted of the documents to be used in connection with the issuance
of escrow receipts by Canadian depositories, including a form of
Depository Agreement to be executed by OCC and each Canadian depository
seeking to be approved as an Escrow Receipt Depository bank. The terms
of the form Depository Agreement covered the issuance of hard copy
escrow receipts only because at that time OCC's Escrow Receipt
Depository system only allowed for the issuance of hard copy escrow
receipts.
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\2\Securities and Exchange Act Release No. 23550 (August 22,
1986), 51 FR 30925 [File No. SR-OCC-86-08] (order approving the
extension of OCC's U.S. escrow receipt program to Canadian OCC
clearing members and Canadian financial institutions).
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In 1992, the Commission approved an OCC rule change that permitted
the on-line processing of escrow deposits for U.S. Escrow Receipt
Depository banks.\3\ The purpose of the current rule change is to make
technical, conforming amendments to the Depository Agreement executed
between OCC and Canadian depositories in order to permit such
depositories to participate in OCC's on-line Escrow Receipt Depository
system. The changes to the form of the Depository Agreement delete
references to the issuance of hard copy escrow receipts and adds
references, where appropriate, to OCC's on-line Escrow Receipt
Depository system. Those references are adapted from OCC's rules
relating to the on-line Escrow Receipt Depository system.
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\3\Securities and Exchange Act Release No. 31595 (December 11,
1992), 57 FR 61139 [File No. SR-OCC-92-30] (order approving the
conversion of OCC's current batch escrow receipt depository system
to an on-line system)
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The proposed rule change is consistent with Section 17A of the Act,
as amended, because it promotes the prompt and accurate clearance and
settlement of securities transactions by reducing the paperwork
associated with the processing of Canadian escrow deposits.
B. Self-Regulatory Organization's Statement on Burden on Competition
OCC perceives no impact on competition by reason of the proposed
rule change.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were not and are not intended to be solicited with
respect to the proposed rule change, and none have been received on the
text of the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii)\4\ of the Act and pursuant to Rule 19b-4(e)(4)\5\ in
that the proposed rule change effects a change in an existing service
of a registered clearing agency that does not adversely affect the
safeguarding of securities or funds in the custody or control of the
clearing agency or for which it is responsible and does not
significantly affect the respective rights or obligations of the
clearing agency or persons using the service. At any time within sixty
days of the filing of such 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
purpose of the Act.
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\4\15 U.S.C. 78s(b)(3)(A)(iii) (1988).
\5\17 CFR 240.19b-4(e)(4) (1993).
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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 NW., Washington, DC 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 NW.,
Washington, DC 20549.
Copies of such filing will also be available for inspection and
copying at the principal office of OCC. All submissions should refer to
File No. SR-OCC-94-09 and should be submitted by September 19, 1994.
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. 94-21175 Filed 8-26-94; 8:45 am]
BILLING CODE 8010-01-M
