[Federal Register Volume 59, Number 22 (Wednesday, February 2, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2319]


[[Page Unknown]]

[Federal Register: February 2, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-33524; File Nos. SR-MCC-93-4 and SCCP-93-03]

 

Self-Regulatory Organizations; Midwest Clearing Corporation and 
Stock Clearing Corporation of Philadelphia, Notice of Filing and Order 
Granting Accelerated Approval of Proposed Rule Changes Relating to the 
Establishment of Interfaces With the National Securities Clearing 
Corporation's Fixed Income Transaction System

January 26, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 23, 1993, and 
October 15, 1993, respectively, the Midwest Clearing Corporation 
(``MCC'') and the Stock Clearing Corporation of Philadelphia (``SCCP'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule changes as described in Items I and II below, which Items 
have been prepared primarily by MCC and SCCP. The Commission is 
publishing this notice and order to solicit comments from interested 
persons and to grant accelerated approval of the proposed rule changes.
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    \1\15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organizations' Statement of the Terms of Substance 
of the Proposed Rule Changes

    MCC and SCCP each propose to establish an interface with National 
Securities Clearing Corporation's (``NSCC'') recently approved Fixed 
Income Transaction System (``FITS'') which is designed to achieve 
higher rates of trade comparison at earlier times in the municipal 
securities comparison process.\2\
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    \2\For a detailed discussion of the various legal, regulatory, 
and operational issues of FITS, refer to Securities Exchange Act 
Release No. 32747 (August 13, 1993), 58 FR 44530 [File No. SR-NSCC-
93-02] (order approving proposed rule change).
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II. Self-Regulatory Organizations' Statement on the Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    In its filing with the Commission, MCC and SCCP included statements 
concerning the purpose of and basis for the proposed rule changes and 
discussed any comments they received on the proposed rule changes. The 
text of these statements may be examined at the places specified in 
Item IV below. MCC and SCCP have prepared summaries, set forth in 
section (A), (B), and (C) below, of the most significant aspects of 
such statements.

A. Self-Regulatory Organizations' Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    Under the proposed rule filings, MCC and SCCP each will implement 
procedures to establish an interface with NSCC's FITS to enable MCC and 
SCCP participants to take advantage of the improved input and 
comparison features of FITS. It should be noted that all trade 
comparison will be conducted at NSCC and not at either MCC or SCCP.
    MCC and SCCP are required by NSCC to submit two-side original trade 
input information on behalf of their respective participants to NSCC by 
2 a.m. on the business day after trade date (``T+1'').\3\ NSCC will 
transmit a comparison report to MCC and SCCP reflecting the compared 
trades of their respective participants early on the morning of T+1 so 
that MCC and SCCP can produce contract reports for their own 
participants.\4\ MCC's and SCCP's interfaces with NSCC will enable 
their participants to take full advantage of the features and benefits 
offered by FITS.\5\
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    \3\MCC has set a deadline of midnight central standard time 
(``c.s.t.'') on T for its participants to submit trade information 
to MCC. SCCP has set a deadline of 1 a.m. eastern standard time 
(``e.s.t.'') on T for its participants to submit trade information 
to SCCP.
    \4\MCC will provide contract reports to MCC participants by 6 
a.m. c.s.t., and SCCP will provide contract reports to SCCP 
participants by 8 a.m. e.s.t.
    \5\For a detailed discussion of the benefits of FITS, refer to 
Securities Exchange Act Release No. 32747, supra note 2.
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B. Self-Regulatory Organizations' Statement on Burden on Competition

    MCC and SCCP do not believe a burden will be placed on competition 
as a result of the proposed rule changes.

C. Self-Regulatory Organizations' Statement on Comments on the Proposed 
Rule Changes Received From Members, Participants or Others

    No comments were received.

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

    Section 17A(a)(2)(A) of the Act directs the Commission to 
facilitate a national system for the prompt and accurate clearance and 
settlement of securities transactions.\6\ Because the interfaces enable 
MCC and SCCP participants to utilize FITS with all its benefits, the 
Commission believes, for all the reasons set forth in the FITS approval 
order,\7\ that the proposed rule changes filed by MCC and SCCP further 
this goal.
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    \6\15 U.S.C. 78q-1(a)(2)(A) (i) and (ii).
    \7\Supra note 2.
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    MCC and SCCP have requested that the Commission find good cause for 
approving the proposed rule changes prior to the thirtieth day after 
the date of publication of notice of the filing. The Commission finds 
good cause for so approving the proposed rule change because the 
Commission has previously published notice of and has approved NSCC's 
implementation of the system.\8\ NSCC's proposed rule change did not 
generate any comment letters, and none are expected on MCC's and SCCP's 
proposals. Furthermore, MCC and SCCP filed the proposed rule changes 
implementing the interfaces with FITS subsequent to the interfaces 
becoming operational.
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    \8\Supra note 2.
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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 submissions, 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 NW., 
Washington, DC 20549, and at the principal offices of MCC and SCCP. All 
submissions should refer to File Nos. SR-MCC-93-04 and SR-SCCP-93-03 
and should be submitted by February 23, 1994.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule changes (File Nos. SR-MCC-93-04 and SR-
SCCP-93-03) be, and hereby are, approved.

    \9\15 U.S.C. 78s(b)(2).
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    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\17 CFR 200.30-3(a)(12) (1992).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-2319 Filed 2-1-94; 8:45 am]
BILLING CODE 8010-01-M