[Federal Register Volume 63, Number 157 (Friday, August 14, 1998)]
[Notices]
[Pages 43737-43738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21846]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-403111; International Series Release No. 1151; SR-EMCC-
98-07]
Self-Regulatory Organizations; Emerging Markets Clearing
Corporation; Notice of a Proposed Rule Change To Require Members To
Maintain a Pre-Billing Deposit
August 7, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 24, 1998, Emerging
Markets Clearing Corporation (``EMCC'') 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 EMCC. The Commission is publishing this notice to solicit
comments from interested persons on the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
Under the proposed rule change, EMCC will require each of its
members to maintain a deposit with EMCC in an amount equal to three
times the member's average monthly bill.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, EMCC 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. EMCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such
statements.\2\
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\2\ The commission has modified the text of the summaries
prepared by EMCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Under the proposed rule change, EMCC will require each member to
maintain on deposit with EMCC an amount equal to three times the
member's average monthly EMCC bill (``pre-bill amount''). The purpose
of the pre-bill amount is to provide EMCC with additional operating
cash. The average monthly bill will be based on a member's three most
recent monthly EMCC bills, excluding all pass-through charges.\3\
Members will continue to be billed monthly based on their actual use of
EMCC's services.
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\3\ If a member does not have a three month billing history
(e.g., a new member), EMCC will estimate the member's average
monthly bill in calculating the pre-bill amount.
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The pre-bill amount will be recalculated quarterly. If a member's
recalculated pre-bill amount is greater than its prior pre-bill amount,
the amount of such difference will appear on the member's next monthly
bill as an additional charge. Conversely, if a member's recalculated
pre-bill amount is less than its prior pre-bill amount, the amount of
such difference will appear on the member's next monthly bill as a
credit. Within forty-five days of December 31st of each year, EMCC will
provide each member with a statement reflecting the member's pre-bill
amount on deposit with EMCC as of December 31st.
EMCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules and regulations
thereunder since it will facilitate the prompt and accurate clearance
and settlement of securities transactions.
(B) Self-Regulatory Organization's Statement on Burden on Competition
EMCC does not believe that the proposed rule change will have an
impact on 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 relating to the proposed rule change have been
solicited or received. EMCC will notify the Commission of any written
comments received by EMCC.
[[Page 43738]]
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Withing 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 EMCC 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, including whether the proposed rule
change is consistent with the Act. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 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 available for inspection and copying in the
Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such filing also will be available for
inspection and copying at the principal office of EMCC. All submissions
should refer to File No. SR-EMCC-98-07 and should be submitted by
September 4, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\4\
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\4\ 17 CFR 200.30-3(a)(12)
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-21846 Filed 8-13-98; 8:45 am]
BILLING CODE 8010-01-M