[Federal Register Volume 59, Number 114 (Wednesday, June 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14529]


[[Page Unknown]]

[Federal Register: June 15, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34187; File No. SR-MCC-93-09]

 

Self-Regulatory Organizations; Midwest Clearing Corporation; 
Order Approving Proposed Rule Change Amending the Definition of 
Settlement Price

June 9, 1994.
    On December 23, 1993, the Midwest Clearing Corporation (``MCC'') 
filed a proposed rule change (File No. SR-MCC-93-09) with the 
Securities and Exchange Commission (``Commission'') pursuant to Section 
19(b)(1) of the Securities Exchange Act of 1934 (``Act'').\1\ Notice of 
the proposals was published in the Federal Register on March 7, 
1994.\2\ No comments were received by the Commission. This order 
approves the proposal.
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    \1\15 U.S.C. 78s(b)(1) (1988).
    \2\Securities Exchange Act Release No. 33685 (February 25, 
1994), 59 FR 10685.
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I. Description of the Proposal

    The rule change amends MCC's definition of the term ``settlement 
price,'' which is set forth in Article I, Rule 1 of MCC's Rules. In 
essence, the amended rule now provides that the settlement price shall 
be the closing price or the last sale price on the business day prior 
to the day such price is used, but where no closing price or last sale 
price is available for the prior business day, the settlement price 
shall be a price which MCC deems appropriate.

II. Discussion

    The Commission believes that the proposal is consistent with the 
Act and particularly with Section 17A of the Act.\3\ Section 
17A(b)(3)(F) of the Act requires that the rules of clearing agencies be 
designed to foster cooperation and coordination with persons engaged in 
the clearance and settlement of securities transactions and to remove 
impediments to and perfect the mechanism of a national market system 
for the clearance and settlement of securities transactions.\4\
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    \3\15 U.S.C. 78q-1 (1988).
    \4\15 U.S.C. 78q-1(b)(3)(F) (1988).
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    The term settlement price is used by MCC and other clearing 
agencies to determine daily mark-to-market credits or debits and to 
value settling trades. Accordingly, the definition of settlement price 
should be uniform among clearing corporations in order for interfaces 
between them to function smoothly in the settlement of transactions. 
This rule change, in conjunction with a recent rule change to the rules 
of the National Securities Clearing Corporation (``NSCC''), will 
conform MCC's definition of settlement price to NSCC's definition of 
that term.\5\ Consequently, the Commission believes that this technical 
rule change will foster cooperation and coordination and will help 
perfect the national clearance and settlement system and, therefore, is 
consistent with the Act.
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    \5\Securities Exchange Act Release No. 34040 (May 11, 1994), 59 
FR 25975 [File No. SR-NSCC-94-05] (notice of filing and immediate 
effectiveness of a proposed rule change).
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III. Conclusion

    For the reasons discussed above, the Commission believes that the 
proposal is consistent with the requirements of the Act, particularly 
with Section 17A of the Act, and the rules and regulations thereunder.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the above-mentioned proposed rule change (File No. SR-MCC-
93-09) be, and hereby is, approved.

    \6\15 U.S.C. 78s(b)(2) (1988).
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    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-14529 Filed 6-14-94; 8:45 am]
BILLING CODE 8010-01-M