[Federal Register Volume 59, Number 100 (Wednesday, May 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12746]


[[Page Unknown]]

[Federal Register: May 25, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34080; File No. SR-DGOC-94-02]

 

Self-Regulatory Organizations; Delta Government Options Corp.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Definition of ``Trading Limit''

May 18, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act 1 of 
1934 (``Act''),\1\ notice is hereby given that on April 22, April 28, 
and May 9, 1994, the Delta Government Options Corp. (``DGOC'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change (File No. SR-DGOC-94-02) as described in Items, I, 
II, and III below, which Items have been prepared primarily by DGOC. 
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 Organizations Statement of the Terms of Substance of 
the Proposed Rule Change

    DGOC is proposing to amend the definition of ``trading limit'' 
found in Section 101 (Definitions) of Article I (Definitions) of its 
Procedures and to make a conforming change to Section 204 (Trading 
Limits) of Article II (Participation) of its Procedures.

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

    In its filing with the Commission, DGOC 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. DGOC 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 Purposes of, and 
Statutory Basis for, the proposed Rule Changes

    The purpose of the proposed rule change is to clarify that each 
participant's trading limit means the limit prescribed from time to 
time for that participant on the aggregate incremental margin that the 
participant may owe on a particular day with respect to its short 
positions and the settlement of exercised options.\2\ The proposal also 
makes conforming changes to clarify that each participant's trading 
limit is revised from time to time.\3\
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    \2\DGOC Procedures, Article I, Section 101.
    \3\DGOC Procedures, Article II, Section 204.
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    DGOC states that the proposed rule change is consistent with the 
requirements of Section 17A of the Act\4\ and the rules thereunder. In 
particular, Section 17A(b)(3)(F) of the Act\5\ requires that a clearing 
agency be designed to promote the prompt and accurate clearance and 
settlement of securities transactions and be designed to remove 
impediments to and perfect the mechanism of a national system for the 
prompt and accurate clearance and settlement of securities 
transactions. DGOC states that the proposed rule change will enable 
DGOC to control risk better, to provide greater flexibility to its 
participants, and to permit more utilization of DGOC and thereby the 
national clearance and settlement system for trading in options.
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    \4\15 U.S.C. 78q-1 (1988).
    \5\15 U.S.C. 78q-1(b)(3)(F) (1988).
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(B) Self-Regulatory Organization's Statements on Burden on Competition

    DGOC believes that no burden will be placed on competition as a 
result of the proposed rule change.

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

    DGOC neither solicited nor received written comments on the 
proposed rule change.

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\6\ and subparagraph (e)(1) Rule 19b-4 
thereunder\7\ because it 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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    \6\15 U.S.C. 78s(b)(3)(A)(i) (1988).
    \7\17 CRF 204.19b-4(e)(1) (1993).
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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 accordance with the provisions of 
5 U.S.C. 552, will be available for inspection and copying at the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filings will also be available for 
inspection and copying at the principal office of DGOC. All submissions 
should refer to File No. SR-DGOC-94-02 and should be submitted by June 
15, 1994.

    For Commission by the Division of Market Regulation, pursuant to 
delegated authority.\8\
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    \8\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-12746 Filed 5-24-94; 8:45 am]
BILLING CODE 8010-01-M