[Federal Register Volume 60, Number 112 (Monday, June 12, 1995)]
[Notices]
[Pages 30912-30914]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14324]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35809; File No. SR-NSCC-95-06]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of a Proposed Rule Change Seeking To
Establish the Collateral Management Service
June 5, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 22, 1995, the National
Securities Clearing Corporation (``NSCC'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change (File
No. SR-NSCC-95-06) as described in Items I, II, and III below, which
items have been [[Page 30913]] prepared primarily by NSCC. On June 2,
1995, NSCC filed an amendment to the proposed rule change to clarify
which entities may be permitted to participate in the proposed
service.\2\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
\1\ 15 U.S.C. 78s(b)(1) (1988).
\2\ Letter from Anthony H. Davidson, Associate Counsel, NSCC, to
Peter Geraghty, Division of Market Regulation, Commission (May 26,
1995).
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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 establish the
Collateral Management Service (``CMS'') which will provide access to
information regarding participants' clearing fund, margin, and other
similar requirements and deposits at NSCC and other participating
clearing entities. As proposed, participating clearing entities will
include clearing agencies registered pursuant to Section 17A of the
Securities Exchange Act \3\ and clearing organizations affiliated with
or designated by contract markets trading specific futures products
under the oversight of the Commodity Futures Trading Commission.
\3\ 15 U.S.C. 78q-1 (1988).
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NSCC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments that it received on the proposed rule change.
The text of these statements may be examined at the places specified in
Item IV below. NSCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such
statements.\4\
\4\ The Commission has modified the text of the summaries
submitted by NSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to establish the CMS.
The CMS will provide access to information regarding participants'
clearing fund, margin, and other similar requirements and deposits at
NSCC and other Participating Clearing Entities including excess or
deficit amounts and comprehensive data on underlying collateral (``CMS
data''). NSCC may provide the CMS data to participants of NSCC, to
participating clearing entities, and, if a participating clearing
entity requests, to participants of such participating clearing entity.
Each participant that desires access to the CMS data will be required
to complete a CMS participation application. A participant's access to
CMS data will be limited to the participant's own information.
Similarly, a participating clearing entity's access to CMS data will be
limited to only the CMS data of participants of such entity. A
participant may request that NSCC exclude data relating to such
participant from the CMS by completing a request to exclude data form.
Participating clearing entities will be required to sign and
execute NSCC's CMS agrement. The CMS agreement sets forth NSCC's
authorization from participating clearing entities to collect and
provide information relating to participants' clearing fund and margin
requirements and participants' clearing fund and margin deposits as
contained in the Securities Clearing Group's (``SCG'') \5\ data base
and the Chicago Board of Trade Clearing Corporation's Pay Collect
System (``BTCC System'').\6\ The CMS agreement also authorizes NSCC to
disseminate additional information provided by the participating
clearing entities. The CMS agreement also addresses such matters as the
confidentiality of CMS Data, additional parties, costs, and limitation
of liability. At the time of this filing, The Depository Trust Company
and The Options Clearing Corporation have agreed in principle to
participate in CMS.
\5\ The SCG was established in 1989 as a result of developments
surrounding the October 1987 Market Break and subsequent studies on
the causes of the Market Break. The stated purpose of the SCG is to
increase cooperation and coordination among securities clearing
entities and to facilitate the sharing of certain clearance and
settlement information regarding surveillance and member risk
monitoring. For a further description of the SCG, refer to
Securities Exchange Act Release No. 27044 (July 25, 1989), 54 FR
30963 [File Nos. SR-DTC-88-20, SR-MCC-88-10, SR-MSTC-88-07, SR-NSCC-
88-09, SR-OCC-89-02, SR-Philadep-89-01, and SR-SCCP-89-01] (order
approving the establishment of the SCG).
\6\ The Chicago Board of Trade, through the Board of Trade
Clearing Corporation, established the Shared Pay/Collect System
which disseminates the daily pay/collects of all futures clearing
firms which are affiliated with a participating futures exchanges.
NSCC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules and regulations
thereunder because the rule proposal will facilitate cooperation and
coordination with persons engaged in the clearance and settlement of
securities transactions.
(B) Self-Regulatory Organization's Statement on Burden on Competition
NSCC 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
No written comments have been solicited or received. NSCC will
notify the Commission of any written comments received by NSCC.
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 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 NSCC 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. Person making written submission
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 the principal office of NSCC. All
submissions should refer to the file number SR-NSCC-95-06 and should be
submitted by July 3, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
\7\ 17 CFR 200.30-3(a)(12) (1994). [[Page 30914]]
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-14324 Filed 6-9-95; 8:45 am]
BILLING CODE 8010-01-M