[Federal Register Volume 59, Number 210 (Tuesday, November 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27039]


[[Page Unknown]]

[Federal Register: November 1, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34886; File No. SR-SCCP-94-05]

 

Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing of Proposed Rule Change Modifying SCCP 
Rule 2, Section 1 to Require Execution of a Participant's Agreement by 
Participants

October 24, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\ notice is hereby given that on October 3, 1994, the Stock 
Clearing Corporation of Philadelphia (``SCCP'') 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 primarily by SCCP. 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. Sec. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    SCCP proposes to modify SCCP Rule 2, Section 1 to require each 
participant to sign a Participant's Agreement.

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

    In its filing with the Commission, SCCP 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. SCCP 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 SCCP Rule 2, Section 1 with 
respect to participants' obligations to SCCP. The proposed rule change 
will add language requiring each participant to execute a Participant's 
Agreement and language stating that SCCP's by-laws, rules, and 
procedures shall supersede any conflicting provision of the 
Participant's Agreement. The proposed rule change also will delete 
language requiring participants to execute and deliver a written 
instrument specifying their adherence to certain obligations set forth 
in SCCP Rule 2. This second written agreement will be unnecessary 
because once a participant signs a Participant's Agreement, the 
participant has agreed to abide by all of the rules and obligations of 
SCCP, including those set forth in SCCP Rule 2. Accordingly, all 
provisions of Rule 2 will be directly enforceable against participants.
    The proposed rule change will codify SCCP's existing but unwritten 
policy and practice of requiring all participants to execute a 
Participant's Agreement. The proposed rule change is consistent with 
Section 17A of the Act and particularly with Section 17A(b)(3) (A) and 
(F) in that the proposed rule change is designed to assure the 
safeguarding of securities and funds which are in the custody or 
control of the clearing agency.

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

    SCCP does not believe that the proposed rule change will impose an 
inappropriate burden on competition.

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

    Written comments were neither solicited nor received with respect 
to the proposed rule change.

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 SCCP consents, the Commission will:
    (A) by order approve such 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, N.W., Washington, D.C. 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. Sec. 552, will be available for inspection and copying in 
the Commission's Public Reference Section, 450 Fifth Street N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office of SCCP. All 
submissions should refer to File No. SR-SCCP-94-05 and should be 
submitted by November 22, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\2\
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    \2\17 CFR 200.30-3(a)(12) (1994).
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Jonathan G. Katz,
Secretary.
[FR Doc. 94-27039 Filed 10-31-94; 8:45 am]
BILLING CODE 8010-01-M