[Federal Register Volume 59, Number 217 (Thursday, November 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27810]


[[Page Unknown]]

[Federal Register: November 10, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34939; File No. SR-DGOC-94-05]

 

Self-Regulatory Organizations; Delta Government Options Corp.; 
Notice of Filing of Proposed Rule Change Relating to the Over-the-
Counter Options Trading System Procedures for Emergency Contingencies 
and Disaster Recovery

November 3, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on September 9, 1994, the 
Delta Government Options Corp. (``Delta'') 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 
primarily prepared by the self-regulatory organization. On September 
23, 1994, Delta filed an amendment to the proposed rule change.\2\ 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).
    \2\The amendment modified certain sections of the proposed rule 
change to correct typographical errors and to specify which members 
of Delta's senior management will have authority under the proposed 
rule change. Letter from Barry E. Silverman, President, Delta, to 
Jerry W. Carpenter, Assistant Director, Securities Processing 
Regulation, Division of Market Regulation, Commission (September 22, 
1994).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change will modify Delta's Over-The-Counter 
Options Trading System Procedures (``Procedures'') relating to 
emergency contingencies and disaster recovery. In particular, Delta is 
adopting provisions governing (1) the waiver or suspension of Delta's 
procedures; (2) action by Delta's management on behalf of Delta; and 
(3) interpretation of Delta'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, Delta 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. Delta 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

    (a) The proposed rule change will add a new Article XIX to Delta's 
Procedures. Article XIX contains Section 1901, ``Waiver or Suspension 
of Procedures,'' Section 1902, ``Action by Delta,'' and Section 1903, 
``Interpretation of Rules.'' These new provisions codify Delta's 
existing policies regarding emergency contingencies and disaster 
recovery.
    Section 1901 will permit Delta's Board of Directors, Chairman of 
the Board, President, Vice President, Chief Financial Officer, 
Secretary, or Controller (1) to extend the time fixed by any provision 
of Delta's Procedures or any regulations issued by Delta for the doing 
of any act or acts or (2) to waive or to suspend any provision of 
Delta's Procedures or any regulations issued by Delta if they judge 
such extension, waiver, or suspension to be necessary or expedient. The 
extension, waiver, or suspension may remain in effect only for sixty 
days unless approved by Delta's Board of Directors.
    Section 1901 will require that a written report of the extension, 
waiver, or suspension be filed with Delta and shall be available for 
inspection by any participant. The written report will set forth the 
pertinent facts, the identity of the person who authorized the 
extension, waiver, or suspension, and the reason the extension, waiver, 
or suspension was deemed necessary or expedient. No written report will 
be required for extensions of time of less than eight hours.
    Section 1902 will permit Delta's Board of Directors, Chairman of 
the Board, President, Vice President, Chief Financial Officer, 
Secretary, Controller, or other persons designated by Delta's Board of 
Directors to act on behalf of Delta except where Delta's Procedures 
require action by the Board of Directors. Section 1903 will authorize 
Delta's Board of Directors, Chairman of the Board, President, any 
committee of the Board of Directors, or any designee of the Board of 
Directors to interpret Delta's Procedures.
    (b) The proposed rule change will enable Delta to establish 
contingency planning and disaster recovery procedures that can be used 
in the event of an emergency, market disruption, or other unanticipated 
event and will permit Delta to maintain continuous operations while 
safeguarding the assets under its custodianship. Delta believes that 
the proposed rule change is consistent with the requirements of Section 
17A of the Act and the rules and regulations thereunder and in 
particular with Section 17A(b)(3)(F) of the Act which requires that a 
clearing agency be organized and its rules be designed to promote the 
prompt and accurate clearance and settlement of securities transactions 
and to remove impediments to and perfect the mechanism of a national 
system for the prompt and accurate clearance and settlement of 
securities transactions. Delta believes the proposed rule change will 
greatly reduce the possibility of market disruption and insure the 
prompt and accurate clearance and settlement of transactions in Delta's 
system in the event of an emergency or other unanticipated event.

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

    Delta does not believe that the proposed rule change will have an 
impact 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

    Comments have neither been solicited nor received.

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 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 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, Washington, 
D.C. 20549. Copies of such filing will also 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-
DGOC-94-5 and should be submitted by December 1, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-27810 Filed 11-9-94; 8:45 am]
BILLING CODE 8010-01-M