[Federal Register Volume 64, Number 167 (Monday, August 30, 1999)]
[Notices]
[Pages 47207-47208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22376]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41770; File No. SR-EMCC-99-09]
Self-Regulatory Organizations; Emerging Markets Clearing
Corporation; Notice of Filing and Order Granting Accelerated Approval
of a Proposed Rule Change Regarding Year 2000 Policies
August 20, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 19, 1999, the
Emerging Markets Clearing Corporation (``EMCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items II and II below, which items have been
prepared primarily by EMCC. The Commission is publishing this notice
[[Page 47208]]
and order to solicit comments from interested persons and to grant
accelerated approval of the proposal.
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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
Under the proposed rule change, EMCC will not activate any new or
additional participant accounts or provide new services to participants
after November 1, 1999, and until reasonably practicable in January
2000.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, EMCC 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. EMCC has 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 the text of the summaries
prepared by EMCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The proposed rule change provides that, EMCC will not activate any
new or additional participants accounts or provide new services to
participants after November 1, 1999, and until reasonably practicable
in January, 2000. Among other things, EMCC announced in its August 6,
1999, Important Notice that after November 1, 1999, and for the
remainder of the calendar year, EMCC will not: (1) permit new
participants to utilize EMCC's services; (2) allow current participants
to utilize new FMCC services; and (3) assign additional participant
numbers to current participants.
EMCC's Rule 2 provides in part that:
the Corporation may deny an application to become a Member or to use
one or more additional services of the Corporation upon a
determination by the Corporation that the Corporation does not have
adequate personnel, space, data processing capacity or other
operational capability at such time to perform its services for the
applicant or Member without impairing the ability of the Corporation
to provide services for its existing Settling Members, to assure the
prompt, accurate and orderly processing and settlement of securities
transactions or to otherwise carry out its functions; provided,
however, that any such applications which are denied pursuant to
this paragraph shall be approved as promptly as the capabilities of
the Corporation permit.
EMCC believes that continuing to activate numerous new or
additional participant accounts or to provide new services to
participants after November 1st could potentially be disruptive to the
rest of its Year 2000 efforts. Specifically, EMCC will be devoting a
great deal of resources to confirming the Year 2000 readiness of its
systems and applications in November of 1999. Additionally, EMCC would
like to ensure that it has enough time to deal with any unanticipated
issues that arise before the end of the calendar year.
EMCC believes that the proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder. In
particular, the proposed rule change is consistent with Section
17A(b)(3)(F) of the Act \3\ which requires that the rules of a clearing
agency be designed to promote the prompt and accurate clearance and
settlement of securities transactions and, in general, to protect
investors and the public interest.
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\3\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
EMCC does not believe that the proposed rule change will impact or
impose a burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
EMCC advised members of the Year 2000 policy modifications in an
Important Notice, dated August 6, 1999. No written comments relating to
the Important Notice or proposed rule change have been solicited or
received. EMCC will notify the Commission of any written comments
received by EMCC.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Section 17A(b)(3)(F) of the Act \4\ requires that the rules of a
clearing agency be designed to promote the prompt and accurate
clearance and settlement of securities transactions. The Commission
finds that the proposed rule change is consistent with this obligation
because the proposed modifications to EMCC's Year 2000 policies will
permit EMCC sufficient time before year end to complete its Year 2000
preparations. As a result, EMCC should be able to continue to provide
prompt and accurate clearance and settlement of securities transactions
before, on, and after Year 2000 without interruption.
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\4\ 15 U.S.C. 78q-1(b)(3)(F).
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EMCC requested that the Commission find good cause for approving
the proposed rule change prior to the thirtieth day after the
publication of notice of the filing. The Commission finds good cause
for approving the proposed rule change prior to the thirtieth day after
the publication of notice of the filing because such approval will
allow EMCC to better prepare for a smooth Year 2000 transition.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.
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 Room, 450 Fifth Street, NW, Washington,
DC 20549. Copies of such filing will also be available for inspection
and copying at the principal office of EMCC. All submissions should
refer to the File No. SR-EMCC-99-09 and should be submitted by
September 20, 1999.
It Is Therefore Ordered, pursuant to Section 19(b)(2) of the
Act,\5\ that the proposed rule change (File No. SR-EMCC-99-09) be and
hereby is approved.
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\5\ 15 U.S.C. 78s(b)(2).
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. 99-22376 Filed 8-27-99; 8:45 am]
BILLING CODE 8010-01-M
