[Federal Register Volume 59, Number 13 (Thursday, January 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1278]


[[Page Unknown]]

[Federal Register: January 20, 1994]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33464; File No. SR-GSCC-93-05]

 

Self-Regulatory Organizations; Government Securities Clearing 
Corporation; Notice of Filing of Amendment to Proposed Rule Change 
Relating to Conditions for the Release of Confidential Data

January 12, 1994.
    On December 30, 1993, the Government Securities Clearing 
Corporation (``GSCC'') filed with the Securities and Exchange 
Commission (``Commission'') an amendment (``Amendment No. 1'')\1\ to 
its filing of a proposed rule change pursuant to section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'').\2\ Notice of that 
proposed rule change appeared in the Federal Register on August 10, 
1993.\3\ No written comments were received in response to that notice. 
The Commission is publishing this notice of Amendment No. 1 to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    (1) Letter from Jeffrey Ingber, General Counsel, GSCC, to 
Christine Sibille, Attorney, Commission (December 28, 1993).
    (2) 15 U.S.C. 78s(b)(1) (1988).
    (3) Securities Exchange Act Release No. 32710 (August 2, 1993), 
58 FR 42584.
---------------------------------------------------------------------------

I. Introduction

    On June 18, 1993, GSCC filed with the Commission a proposed rule 
change that would modify GSCC Rule 29, Release of Clearing Data, to 
permit clearing data\4\ to be released to the Federal Reserve Bank of 
New York (``FRBNY'') and other persons that perform a regulatory or 
oversight function related to the government securities marketplace. 
The rule change as originally proposed placed several conditions on the 
release of data. With respect to the FRBNY, the information could not 
be released until GSCC management had made the following 
determinations:
---------------------------------------------------------------------------

    (4) Clearing data is defined essentially to include any data 
relating to a member's trading activity that is held or produced by 
GSCC.
---------------------------------------------------------------------------

     There has been a showing by the FRBNY of a legitimate need 
for such data, related to its market surveillance function.
     Any data provided by GSCC will be used solely for market 
surveillance purposes.
     The informational request is made in writing and with 
sufficient specificity.
     If the data is specific to a particular member, the member 
has been notified of the request and has been given the opportunity to 
present to GSCC any objections to the request. (This prerequisite will 
not apply if valid legal process prohibits GSCC from informing the 
member of the request for data.)
     If the data is specific to a particular member, there has 
been a showing by the FRBNY that it has unsuccessfully attempted to 
obtain the data directly from the member. (This prerequisite will not 
apply if valid legal process prohibits FRBNY from contacting the member 
regarding the request for data.)

II. Description of the Proposal As Amended

    GSCC Rule 29, as amended, would allow GSCC to release clearing data 
to the FRBNY for market surveillance purposes. GSCC and the FRBNY have 
entered into an agreement that will govern the release of information 
to the FRBNY. The agreement provides that the FRBNY will maintain 
member specific information in confidence, subject to certain 
exceptions. The FRBNY may share GSCC data with the members of the 
Interagency Working Group on Market Surveillance.\5\ The FRBNY also can 
release GSCC data as required by law.
---------------------------------------------------------------------------

    \5\The Interagency Working Group on Market Surveillance is 
composed of representatives from the FRBNY, the Board of Governors 
of the Federal Reserve System, the United States Department of the 
Treasury, the Commission, and the Commodity Futures Trading 
Commission. The FRBNY will provide each member of the working group 
with a copy of the agreement with GSCC and request confirmation that 
the other members will follow the procedures contained in that 
agreement.
---------------------------------------------------------------------------

    The FRBNY has agreed to follow certain procedures should third 
parties attempt to obtain the release of GSCC data through the FRBNY. 
If the FRBNY is presented with a request under the Freedom of 
Information Act (``FOIA''),\6\ the FRBNY will decline requests for 
member specific information to the extent that the information is 
exempt from FOIA. If the FRBNY determination under FOIA is appealed, 
the FRBNY will notify GSCC to permit GSCC to raise an objection. If the 
information is requested under a subpoena or other form of legal 
process, the FRBNY will notify GSCC, if not prohibited by law. The 
FRBNY, however, will make its own determination whether it is required 
to comply with the disclosure request under the subpoena.
---------------------------------------------------------------------------

    \6\5 U.S.C. 552 (Supp. I 1993).
---------------------------------------------------------------------------

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Within 35 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 90 days of such date if it finds such longer period to 
be appropriate and publishes its reason for so finding, or (ii) as to 
which the self-regulatory organization 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, NW., Washington, DC 20549. 
Copies of the submission, all subsequent amendments, and 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, NW., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of GSCC. All submissions 
should refer to File No. SR-GSCC-93-05 and should be submitted by 
February 10, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-1278 Filed 1-19-94; 8:45 am]
BILLING CODE 8010-01-M