[Federal Register Volume 64, Number 69 (Monday, April 12, 1999)]
[Notices]
[Page 17704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9014]
[[Page 17704]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41249; File No. SR-EMCC-99-03]
Self-Regulatory Organizations; Emerging Markets Clearing
Corporation; Notice of Filing and Order Granting Accelerated Approval
of a Proposed Rule Change Regarding Year 2000 Testing
April 5, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 26, 1999, the
Emerging Markets Clearing Corporation (``EMCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which items have been
prepared primarily by EMCC. The Commission is publishing this notice
and order to solicit comments from interested persons and to grant
accelerated approval of the proposal.
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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 that all EMCC
members participate in Year 2000 testing with EMCC no later than August
31, 1999.
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
EMCC's Rule 13 provides that, ``The Corporation shall establish, as
it deems necessary or appropriate, standards of financial
responsibility, operational capability, experience and competence for
membership.'' In connection with this standard, EMCC has determined
that members that utilize its services must validate their Year 2000
readiness through participation in Year 2000 testing with EMCC. Members
will be required to submit scripted data containing various dates to
EMCC for processing and will be required to verify that they have
received back the scripted results.
Members that fail to participate in Year 2000 testing with EMCC
will be subject to appropriate disciplinary action in accordance with
EMCC's rules. Such disciplinary action permits EMCC to limit or
restrict a member's access to EMCC.
EMCC believes that the proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder. In
particular, the proposed rule change is consistent with Section
17A(b)(3)(F) of the Act,\3\ which requires that the rules of a clearing
agency be designated to promote the prompt and accurate clearance and
settlement of securities transactions and, in general, to protect
investors and the public interest.
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\3\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
EMCC 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
EMCC will advise its members of the Year 2000 member testing
requirement by Important Notice. No written comments have been
solicited or received. EMCC will notify the Commission of any written
comments received by EMCC.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Section 17A(b)(3)(F) of the Act \4\ requires that the rules of a
clearing agency has designed to promote the prompt and accurate
clearance and settlement and securities transactions. The Commission
believes that the proposed rule change is consistent with this
obligation because the required Year 2000 testing should allow EMCC to
address potential problems associated with its members' Year 2000
readiness. As a result, EMCC should be able to continue to provide
prompt and accurate clearance and settlement of securities transactions
before, on, and after Year 2000 without interruption.
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\4\ 15 U.S.C. 78q-1(b)(3)(F).
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EMCC requested that the Commission find good cause for approving
the proposed rule change prior to the thirtieth day after the
publication of notice of the filing. The Commission finds good cause to
approving the proposed rule change prior to the thirtieth day after the
publication of notice of the filing because such approval will allow
EMCC to implement its mandatory Year 2000 testing program in a timely
manner.
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 20549-0609.
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 Room, 450 Fifth Street, NW., Washington,
DC 20549. Copies of such filing will also be available for inspection
and copying at the principal office of EMCC. All submissions should
refer to the File No. SR-EMCC-99-03 and should be submitted by May 3,
1999.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\5\ that the proposed rule change (File No. SR-EMCC-99-03) be and
hereby is approved.
\5\ 15 U.S.C. 78s(b)(2).
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For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-9014 Filed 4-9-99; 8:45 am]
BILLING CODE 8010-01-M