[Federal Register Volume 59, Number 58 (Friday, March 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7076]


[[Page Unknown]]

[Federal Register: March 25, 1994]


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

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33782; File No. SR-ICC-94-02]

 

Self-Regulatory Organizations; The Intermarket Clearing 
Corporation; Filing and Immediate Effectiveness of a Proposed Rule 
Change Relating to Rules Regarding Insider Trading Prohibitions

March 17, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 25, 1994, The 
Intermarket Clearing Corporation (``ICC'') 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 primarily 
prepared by ICC. On February 25, 1994, ICC submitted an amendment to 
conform the proposed rule change to comments received by ICC from the 
staff of the Commodity Futures Trading Commission (``CFTC'').\2\ The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\15 U.S.C. 78s(b)(1) (1988).
    \2\Letter from Robert S. Steigerwald [Attorney], ICC, to Jerry 
W. Carpenter, Chief, Branch of Equity and Derivative Clearing Agency 
Regulation, Division of Market Regulation, Commission (February 25, 
1994).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to amend ICC's Rules 
prohibiting insider trading to conform with recent amendments to 
Regulation 1.59\3\ of the CFTC.
---------------------------------------------------------------------------

    \3\17 CFR 1.59.
---------------------------------------------------------------------------

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, ICC 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. ICC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The proposed rule change will amend ICC's Rules prohibiting the 
misuse of material, nonpublic information to conform with recent 
amendments to CFTC Regulation 1.59. In general, conforming amendments 
to ICC's Rules are necessary because Regulation 1.59, as amended: (1) 
Changes certain of the definitions that are effective for purposes of 
the insider trading rules of self-regulatory organizations (``SROs''); 
and (2) requires SROs to adopt and maintain rules prohibiting trading 
in commodity interests traded on or cleared by linked exchanges of such 
SROs. In addition, amendments to ICC's Rules are necessary to ensure 
the conformity of references to the term ``non-public.''
    Conforming references to the term ``non-public'' have been made 
throughout Rule 222 and reference is made in Rule 222 to the 
Interpretations and Policies following Rule 222. In addition, the scope 
of ICC's insider trading prohibition is extended to reach any commodity 
interest traded on or cleared by any linked exchange of ICC.\4\ At 
present, there are no commodity interests that are traded on or cleared 
by any linked exchange of ICC. The definitions of the terms ``linked 
exchange,'' ``material information,'' ``non-public information,'' and 
``related commodity interest'' have been amended in Interpretations and 
Policies .01 of Rule 222 to conform with amendments to CFTC Regulation 
1.59.
---------------------------------------------------------------------------

    \4\ICC Rule 222(b).
---------------------------------------------------------------------------

    ICC believes the proposed amendments are consistent with the 
requirements of section 17A(b)(3)(F)\5\ of the Act in that the 
amendments will protect investors and the public interest by extending 
the reach of ICC's prohibitions on the misuse of material, non-public 
information.
---------------------------------------------------------------------------

    \5\15 U.S.C. Sec. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    ICC does not believe that the proposed rule change will impose any 
burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Comments concerning the proposed rule change were not and are not 
intended to be solicited in connection with the proposed rule change, 
and none have been received by ICC.

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

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A)(i)\6\ of the Act and pursuant to Rule 19b-4(e)(1)\7\ in 
that it affects the interpretation with respect to the meaning, 
administration, and enforcement of ICC's existing rules relating to 
insider trading prohibitions At any time within sixty days of the 
filing of such proposed rule change, the Commission may summarily 
abrogate such rule change 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.
---------------------------------------------------------------------------

    \6\15 U.S.C. Sec. 78s(b)(3)(A)(i).
    \7\17 CFR 240.19b-4(e)(1) (1993).
---------------------------------------------------------------------------

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, 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. Copies of such filing will also be available for 
inspection and copying at the principal office of ICC. All submissions 
should refer to File No. SR-ICC-94-02 and should be submitted by April 
15, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\17 CFR 200.30-3(a)(12) (1993).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-7076 Filed 3-24-94; 8:45 am]
BILLING CODE 8010-01-M