[Federal Register Volume 60, Number 188 (Thursday, September 28, 1995)]
[Notices]
[Pages 50233-50234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24029]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36265; File Nos. SR-SCCP-95-05, and SR-MCC-95-03]
Self-Regulatory Organizations; Stock Clearing Corporation of
Philadelphia and Midwest Clearing Corporation; Notice of Filing and
Immediate Effectiveness of Proposed Rule Changes Incorporating
Enhancements to the Fixed Income Transaction System
September 21, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 1, 1995, and August
23, 1995, respectively, the Stock Clearing Corporation of Philadelphia
(``SCCP'') and the Midwest Clearing Corporation, filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
changes as described in Items I, II, and III below, which Items have
been prepared primarily by SCCP and MCC. On August 3, 1995, SCCP
amended its filing to request approval pursuant to Rule 19b-4(e)(6)
rather than pursuant to Rule 19b-4(e)(4) as requested in the original
filing.\2\ On August 18, 1995, SCCP amended the filing to clarify the
parameters defining the seller's value tolerance for the comparison of
all fixed income securities.\3\ The Commission is publishing this
notice to solicit comments on the proposed rule changes from interested
parties.
\1\ 15 U.S.C. 78s(b)(1) (1988).
\2\ Letter from J. Keith Kessel, Compliance Officer, SCCP, to
Peter R. Geraghty, Esq., Division of Market Regulation
(``Division''), Commission (August 3, 1995).
\3\ Letter from J. Keith Kessel, Compliance Officer, SCCP, to
Margaret J. Blake, Esq., Staff Attorney, Division, Commission
(August 16, 1995).
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I. Self-Regulatory Organizations' Statements of the Terms of Substance
of the Proposed Rule Changes
SCCP and MCC propose to offer their participants the benefits of a
recent enhancement to the National Securities Clearing Corporation's
(``NSCC'') Fixed Income Transaction System (``FITS'').\4\ The
enhancement expands the parameters for the seller's trade input and
trade comparison for FITS transactions.
\4\ For a complete description of the enhancement to NSCC's
FITS, refer to Securities Exchange Act Release No. 35853 (June 16,
1995), 60 FR 32722 [File No. SR-NSCC-95-05] (order granting
accelerated approval of a proposed rule change modifying procedures
relating to the trade comparison service for debt securities).
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II. Self-Regulatory Organizations' Statements of the Purpose of and
Statutory Basis for, the Proposed Rule Changes
In their filings with the Commission, SCCP and MCC included
statements concerning the purpose of and the basis for the proposed
rule changes and discussed any comments received on the proposed rule
changes. The text of these statements may be examined at the places
specified in Item IV below. SCCP and MCC have prepared summaries, as
set forth in sections (A), (B), and (C) below, of the most significant
aspects of these statements.\5\
\5\ The Commission has modified the text of the summaries
prepared by SCCP and MCC.
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A. Self-Regulatory Organizations' Statements of the Purpose of and the
Statutory Basis for the Proposed Rule Changes
In previous filings, the Commission approved SCCP's and MCC's
interfaces with NSCC's FITS service so that SCCP's and MCC's
participants can take full advantage of the benefits and features
offered by FITS.\6\ The current proposed rule changes expand the
comparison parameters for trade input and comparison for transactions
in debt securities. The comparison parameters have been increased from
$.05 per $1,000 of contract amount to $.10 per $1,000 of contract
amount for trades greater than $100,000 and to a net contract amount
difference of $10.00 for trades of $100,000 or less. The rule changes
are being made in accordance with NSCC's recent changes to FITS.\7\
\6\ Securities Exchange Act Release No. 33524 (January 26,
1994), 59 FR 4958 [File Nos. SR-MCC-93-04 and SCCP-93-03] (order
granting accelerated approval of proposed rule changes relating to
the establishment of interfaces with NSCC's FITS).
\7\ Supra note 4.
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SCCP and MCC believe the proposed system enhancements comply with
Section 17A(b)(3)(F) \8\ of the Act because the enhancements should
promote the prompt and accurate clearance and settlement of securities
transactions by increasing the initial comparison rates of FITS trade
activity.
\8\ 15 U.S.C. 78q-1(b)(1)(F) (1988).
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B. Self-Regulatory Organizations' Statements on Burden on Competition
SCCP and MCC do not believe that the proposed rule changes will
impose any burden on competition.
C. Self-Regulatory Organizations' Statements on Comments on the
Proposed Rule Changes Received from Members, Participants or Others
Written comments were neither solicited nor received with respect
to the proposed rule changes.
III. Date of Effectiveness of the Proposed Rule Changes and Timing for
Commission Action
The foregoing rule changes have become effective upon filing
pursuant to Section 19(b)(3)(A)\9\ of the Act and Rule 19b-4(e)(6)\10\
thereunder because the rule changes do not significantly affect the
protection of investors or the public interest; do not impose any
significant burden on competition; and by their terms, do not become
operative for thirty days after the date of the filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest. The Commission has designated
that these proposed rule changes (File Nos. SR-SCCP-95-05 and SR-MCC-
95-03) become effective upon filing. The proposals are consistent with
the protection of investors and the public interest because the
expanded trade comparison parameters at SCCP and MCC now will be
consistent with the parameters used by NSCC. At any time within sixty
days of the filing of such proposed rule changes, the Commission may
summarily abrogate such rule changes 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.
\9\ 15 U.S.C. Sec. 78s(b)(3)(A) (1988).
\10\ 17 CFR 240.19b-4(e)(6) (1994).
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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 changes that are filed
with the Commission, and all written communications relating to the
proposed rule changes between the
[[Page 50234]]
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. Sec. 552, will
be available for inspection and copying in the Commission's Public
Reference Room, 450 Fifth Street, N.W., Washington, D.C. 20549. Copies
of such filings will also be available for inspection and copying at
the principal offices of SCCP and MCC. All submissions should refer to
the File Nos. SR-SCCP-95-05 and SR-MCC-95-03, and should be submitted
by October 19, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\11\
\11\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-24029 Filed 9-27-95; 8:45 am]
BILLING CODE 8010-01-M
