[Federal Register Volume 60, Number 25 (Tuesday, February 7, 1995)]
[Notices]
[Pages 7249-7250]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2973]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35313; File No. SR-PCC-94-01]
Self-Regulatory Organizations; Pacific Clearing Corporation;
Notice of Filing of a Proposed Rule Change Amending Certain Provisions
of the PCC's Rules, Participant Agreement, and Clearing Fund Agreement
February 1, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on November 28, 1994, the
Pacific Clearing Corporation (``PCC'') 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 PCC. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
PCC proposes to correct certain typographical errors in its rules
and to clarify certain provisions regarding post capital in its
standard participant agreement and clearing fund 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, PCC included statements
concerning the purpose of and basis for the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. PCC 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 primary purpose of PCC's proposed rule change is to correct
typographical errors to certain provisions of PCC's rules and to
clarify certain provisions of its standard participant agreement and
clearing fund agreement relating to specialist post capital.
Specifically, PCC proposes to correct typographical errors to the
Table of Contents; PCC Rule 1.2(f), defining the term ``long
position''; PCC Rules 2.1(c) and 2.1(d), addressing membership
qualifications and approval; and PCC Rule 9.3(c)(iii) addressing
specialist post termination procedures. In addition, PCC proposes to
amend PCC Rule 5.2 to clarify that any reductions to excess post
capital or a member's clearing fund deposit cannot be made for amounts
that would reduce the member's post capital or clearing fund deposit
below the minimum requirement.
With respect to the participant agreement, PCC proposes to amend
certain paragraphs relating to post capital. Paragraph 3.1(e)(iii) will
be amended to clarify that it refers to the monitoring of post capital
rather than net capital as it currently states. Paragraph 4.5 of the
participant agreement will be amended so that post capital is
distinguished from net capital. Net capital, which is specified by PSE
Rule 2.1 and Rule 15c3-1 of the Act, remains constant for a firm
regardless of the number of specialist posts it operates. In contrast,
post capital varies because it represents the amount of capital
required to be maintained by a firm based on the number of specialists
[[Page 7250]] posts it operates. Paragraph 4.9 of the participant
agreement is to be modified to clarify that reductions to excess post
capital and to the clearing fund deposit cannot be made in amounts that
would reduce these sums below their respective minimum requirements.
Paragraph 4.9 of the participant agreement also is being modified to
clarify that losses on a trial balance are due on the fifteenth day of
the month following the month for which the trial balance was issued.
Similarly, with regard to the clearing fund agreement, PCC proposes
to clarify that the minimum contribution, as defined in paragraph 5 of
the clearing fund agreement, made by a member firm backing a specialist
post will be applied towards meeting the post capital requirement.
Currently, the clearing fund agreement states that contributions are to
be credited towards the net capital requirement.
PCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules and regulations
thereunder applicable to PCC. The technical corrections to PCC's rules
will clarify PCC's rules thereby advancing the prompt and accurate
clearance and settlement securities transactions. In addition, the
clarifications regarding specialist post capital and net capital will
assist PCC in safeguarding the securities and funds which are in PCC's
custody or control or for which PCC is responsible.
B. Self-Regulatory Organization's Statement on Burden on Competition
PCC believes that no burden will be placed on competition as a
result of the proposed rule change.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Statements were neither solicited nor received.
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 the self-regulatory organization consents,
the Commission will:
(A) By order approve the 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. 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 PCC. All
submissions should refer to File No. SR-PCC-94-01 and should be
submitted by February 28, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\2\
\2\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-2973 Filed 2-6-95; 8:45 am]
BILLING CODE 8010-01-M