[Federal Register Volume 59, Number 111 (Friday, June 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14126]


[[Page Unknown]]

[Federal Register: June 10, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34163; International Series Release No. 670; File No. 
SR-ISCC-94-2]

 

Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by International Securities Clearing Corporation Relating to an 
Amendment to the Linkage Agreement With Japan Securities Clearning 
Corporation

June 6, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 26, 1994, 
International Securities Clearing Corporation (``ISCC'') 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 prepared by ISCC. 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).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    ISCC is filing the proposed rule change to amend its linkage 
agreement with the Japan Securities Clearing Corporation (``JSCC'') to 
allow ISCC to provide JSCC access, through ISCC, to the National 
Securities Clearing Corporation (``NSCC'') New York Window (``NYW'') 
services.

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

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

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

    (a) ISCC is a wholly owned subsidiary of NSCC and is a member of 
NSCC for the purposes of obtaining access to NSCC services on behalf of 
foreign financial institutions with whom ISCC enters into linkage 
agreements. JSCC is a wholly owned subsidiary of the Tokyo Stock 
Exchange and provides clearing services for securities listed on stock 
exchanges in Japan. JSCC acts as the central depository for foreign 
shares, including U.S. shares, listed on stock exchanges in Japan for 
the benefit of the beneficial owners thereof. It appoints local 
custodians with respect to non-Japanese securities. In 1988, ISCC and 
JSCC entered into a linkage agreement which permitted JSCC to obtain 
access through ISCC to certain services of the Depository Trust Company 
(``DTC'') for U.S. shares listed on stock exchanges in Japan and 
included in JSCC's central depository clearing system for foreign 
shares. ISCC and JSCC are entering into an amendment to the linkage 
agreement which will permit JSCC to obtain access through ICC to NSCC's 
NYW services for initial public offerings of U.S. securities listed on 
exchanges in Japan until such time as such securities are eligible for 
deposit at DTC. The services provided through the NYW will be similar 
to that which JSCC obtains through ISCC from DTC for DTC eligible 
securities. Deliveries and receives of these securities would be free 
of payment and would be initiated based on instructions received from 
JSCC. The securities held by NSCC would be used as the basis for the 
bookkeeping entries at JSCC. At such time as these securities become 
eligible at DTC they would be deposited at DTC for credit to the 
account of JSCC. At that time, the services that ISCC. At that time, 
the services that ISCC provides to JSCC for these issues will be the 
services covered under the terms of the original linkage agreement.
    (b) The proposed rule changes fosters cooperation and coordination 
with persons engaged in the clearance and settlement of securities 
transactions and as such is therefore consistent with Section 17A of 
the Act.

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

    ISCC does not believe that the proposed rule change imposes any 
burden on competition.

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

    ISCC has received no written comments. ICC will notify the 
Commission of any written comments received by ISCC.

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

    Within thirty-five 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 ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consent, 
the Commission will:
    A. By order approve the 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, 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 also will be available for 
inspection and copying at the principal office of the above-mentioned 
self-regulatory organization.
    All submissions should refer to File No. SR-ISCC-94-2 and should be 
submitted by July 1, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 94-14126 Filed 6-9-94; 8:45 am]
BILLING CODE 8010-01-M