[Federal Register Volume 59, Number 224 (Tuesday, November 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28780]


[[Page Unknown]]

[Federal Register: November 22, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34980; File No. SR-ISCC-94-05]

 

Self-Regulatory Organizations; International Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Eliminating the PORTAL Program

November 16, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on October 11, 1994, the 
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 primarily 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change.

    The proposed rule change consists of the elimination of ISCC's 
PORTAL program.

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

    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), and (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) In 1989, ISCC obtained approval to provide a service which 
would permit ISCC to accept data from the National Association of 
Securities Dealers (``NASD'') in connection with transactions in the 
National Securities Clearing Corporation's PORTAL system. ISCC would 
forward instructions regarding PORTAL transactions to the Centrale de 
Livraison de Valeurs Mobiliers (``CEDEL'') and The Depository Trust 
Company's Institutional Delivery System for settlement.
    ISCC has not processed any PORTAL transactions for over two and one 
half years. Because this service has not been used and because 
currently the NASD does not and in the future the NASD will not 
transmit information on PORTAL transactions directly to ISCC, ISCC has 
determined to discontinue the service. Broker-dealers will have 
alternative means of settling transactions in PORTAL securities, 
including the ability to send data on these transactions directly to 
ISCC for transmission to CEDEL.
    (b) Since the filing will eliminate a service that has no volume 
and is therefore not cost effective to maintain, elimination is 
consistent with the requirements of Section 17A of the Act.

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

    ISCC does not believe that the proposed rule 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

    ISCC has not solicited or received any comments. ISCC 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(iii) of the Act\2\ and Rule 19b-4(e)(4)\3\ thereunder in 
that it effects a change in an existing service of ISCC that does not 
adversely effect the safeguarding of securities of funds in the custody 
or control of ISCC or for which ISCC is responsible and does not 
significantly effect the rights or obligations of ISCC or persons using 
the service. 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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    \2\15 U.S.C. 78s(b)(3)(A)(iii) (1988).
    \3\17 CFR 240.19b-4(e)(4) (1994).
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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 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 NW., Washington 
DC 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 number 
SR-ISCC-95-05 and should be submitted by December 13, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-28780 Filed 11-21-94; 8:45 am]
BILLING CODE 8010-01-M