[Federal Register Volume 59, Number 210 (Tuesday, November 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27039]
[[Page Unknown]]
[Federal Register: November 1, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34886; File No. SR-SCCP-94-05]
Self-Regulatory Organizations; Stock Clearing Corporation of
Philadelphia; Notice of Filing of Proposed Rule Change Modifying SCCP
Rule 2, Section 1 to Require Execution of a Participant's Agreement by
Participants
October 24, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\ notice is hereby given that on October 3, 1994, the Stock
Clearing Corporation of Philadelphia (``SCCP'') 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 SCCP. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\15 U.S.C. Sec. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
SCCP proposes to modify SCCP Rule 2, Section 1 to require each
participant to sign a Participant's Agreement.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, SCCP 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. SCCP 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
The proposed rule change will amend SCCP Rule 2, Section 1 with
respect to participants' obligations to SCCP. The proposed rule change
will add language requiring each participant to execute a Participant's
Agreement and language stating that SCCP's by-laws, rules, and
procedures shall supersede any conflicting provision of the
Participant's Agreement. The proposed rule change also will delete
language requiring participants to execute and deliver a written
instrument specifying their adherence to certain obligations set forth
in SCCP Rule 2. This second written agreement will be unnecessary
because once a participant signs a Participant's Agreement, the
participant has agreed to abide by all of the rules and obligations of
SCCP, including those set forth in SCCP Rule 2. Accordingly, all
provisions of Rule 2 will be directly enforceable against participants.
The proposed rule change will codify SCCP's existing but unwritten
policy and practice of requiring all participants to execute a
Participant's Agreement. The proposed rule change is consistent with
Section 17A of the Act and particularly with Section 17A(b)(3) (A) and
(F) in that the proposed rule change is designed to assure the
safeguarding of securities and funds which are in the custody or
control of the clearing agency.
B. Self-Regulatory Organization's Statement on Burden on Competition
SCCP does not believe that the proposed rule change will impose an
inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received with respect
to 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 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 SCCP 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 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 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. Sec. 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 SCCP. All
submissions should refer to File No. SR-SCCP-94-05 and should be
submitted by November 22, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\2\
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\2\17 CFR 200.30-3(a)(12) (1994).
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Jonathan G. Katz,
Secretary.
[FR Doc. 94-27039 Filed 10-31-94; 8:45 am]
BILLING CODE 8010-01-M