[Federal Register Volume 59, Number 95 (Wednesday, May 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12044]


[[Page Unknown]]

[Federal Register: May 18, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34040; File No. SR-NSCC-94-05]

 

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Filing and Immediate Effectiveness of the Definition of 
Current Market Price

May 11, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 31, 1994, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change (File No. SR-NSCC-94-05) as described in Items I, II, and III 
below, which Items have been prepared primarily by NSCC, a self-
regulatory organization (``SRO''). The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change amends the definition of ``current market 
price'' that is found in NSCC's rules.

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

    In its filing with the Commission, NSCC 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. NSCC 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

    NSCC states that to operate its continuous net settlement system 
``(CNS''), NSCC must be able to price securities cleared through CNS. 
Currently, Rule 1 (Definitions and Descriptions) of NSCC's Rules in its 
definition of ``current market price'' provides that the price for a 
security is determined by the last sale price reported by the 
Consolidated Tape Association. NSCC believes, however, that the text of 
this rule does not accurately reflect the way in which NSCC 
historically has been pricing securities. In fact, NSCC always has 
determined price by reference to the closing price on the primary or 
principal market where the security is listed. Accordingly, by defining 
the current market price of a security to mean the closing price of a 
security on its principal market the proposed rule change will conform 
NSCC's Rules to NSCC's pricing methodology and, in conjunction with a 
recently proposed change to the rules of the Midwest Clearing 
Corporation (``MCC''),\2\ will result in conformity between the rules 
of NSCC and MCC with regard to securities prices.
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    \2\Refer to Securities Exchange Act Release No. 33685 (February 
25, 1994), 59 FR 10658 [File No. SR-MCC-93-09] (notice of proposed 
rule change).
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    NSCC states that the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules thereunder because 
it will facilitate the prompt and accurate clearance and settlement of 
securities transactions.

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

    NSCC 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

    NSCC has not solicited or received any comments on the proposed 
rule change. NSCC will notify the Commission of any written comments 
received.

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) of the act\3\ and subparagraph (e)(1) of rule 19b-4\4\ 
because the proposal constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule. 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.
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    \3\15 U.S.C. 78s(b)(3)(A)(i) (1988).
    \4\17 CFR 240.19b-4(e)(1) (1991).
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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 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 NSCC. All submissions should 
refer to File No. SR-NSCC-94-05 and should be submitted by June 8, 
1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\17 CFR 200.30-3(a)(12) (1991).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-12044 Filed 5-17-94; 8:45 am]
BILLING CODE 8010-01-M