[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] ----------------------------------------------------------------------- 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). --------------------------------------------------------------------------- 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). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- 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). --------------------------------------------------------------------------- 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). --------------------------------------------------------------------------- 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). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 95-24029 Filed 9-27-95; 8:45 am] BILLING CODE 8010-01-M