[Federal Register Volume 60, Number 18 (Friday, January 27, 1995)]
[Notices]
[Pages 5445-5446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2072]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35259; File Nos. SR-MCC-94-15 and SR-MSTC-94-18]


Self-Regulatory Organizations; Midwest Clearing Corporation and 
Midwest Securities Trust Company; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Changes Eliminating MBS Clearing 
Corporation's Right to Collect Monies From the Participants Funds

January 20, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 8, 1994, Midwest 
Clearing Corporation (``MCC'') and Midwest Securities Trust Company 
(``MSTC'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule changes (File Nos. SR-MCC-94-15 and 
SR-MSTC-94-18) as described in Items I, II, and III below, which items 
have been prepared primarily by MCC and MSTC. The Commission is 
publishing this notice to solicit comments on the proposed rule changes 
from interested persons.

    \1\15 U.S.C. Sec. 78s(b)(1) (1988).
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I. Self-Regulatory Organizations' Statement of the Terms of Substance 
of the Proposed Rule Changes

    These rule changes amend Article IX, Rule 2, Section 3 of MCC's 
Rules and Article VI, Rule 2, Section 3 of MSTC's Rules to eliminate 
the right of MBS Clearing Corporation (``MBS'') to collect monies, 
respectively, from the MCC Participants Fund and from the MSTC 
Participants Fund when an MCC or MSTC participant fails to discharge a 
liability to MBS.

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

    In their filings with the Commission, MCC and MSTC included 
statements concerning the purpose of and basis for the proposed rule 
changes and discussed any comments they received on the proposed rule 
changes. The text of these statements may be examined at the places 
specified in Item IV below. MCC and MSTC have prepared summaries, set 
forth in sections (A), (B), and (C) below, of the most significant 
aspects of such statements.

(A) Self-Regulatory Organizations' Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    The purpose of the proposed changes is to eliminate the right of 
MBS to collect money from the MCC Participants Fund and from the MSTC 
Participants Fund when an MCC participant or an MSTC participant, 
respectively, fails to discharge a liability owed to MBS. MBS is no 
longer affiliated with MCC, MSTC or with the Chicago Stock Exchange 
(``CHX''), the parent corporation of both MCC and MSTC.\2\ The proposed 
rule changes also amend Article II, Rule 3, Section 1 and Article IX, 
Rule 2, Section 3 of MCC's Rules and Article VI, Rule 2, Section 3 of 
MSTC's Rules to change references to the Midwest Stock Exchange to 
either CHX or the Exchange in order to reflect CHX's name change.

    \2\In August 1994, the CHX sold its interest in MBX to the 
participants of MBS and to the National Securities Clearing 
Corporation.
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    MCC and MSTC believe that the proposed rule changes are consistent 
with Section 17A of the Act\3\ in that they provide for the prompt and 
accurate clearance and settlement of securities transactions including 
the safeguarding of securities and funds related thereto.

    \3\15 U.S.C. Sec. 78q-1 (1988).
    [[Page 5446]]
    
(B) Self-Regulatory Organizations' Statements on Burden on Competition

    MCC and MSTC believe that the proposed rule changes will not place 
any burden on competition.

(C) Self-Regulatory Organizations' Statement on Comments on the 
Proposed Rule Changes Received From Members, Participants, or Others

    MCC and MSTC have neither solicited nor received any written 
comments on the proposed rule changes.

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

    The foregoing rule changes have become effective pursuant to 
Section 19(b)(3)(A)(iii) of the Act\4\ and subparagraph (e)(3) of Rule 
19b-4 thereunder\5\ because they are concerned solely with the 
administration of the self-regulatory organizations. At any time within 
sixty days of the filing of such proposed rule changes, the Commission 
may summarily abrogate such rule changes 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.

    \4\15 U.S.C. 78s(b)(3)(A)(iii) (1988).
    \5\17 CFR 240.19b-4(e)(3) (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 changes that are filed 
with the Commission, and all written communications relating to the 
proposed rule changes 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 at the Commission's Public Reference Section, 450 Fifth Street, 
NW., Washington, DC 20549. Copies of such filings will also be 
available for inspection and copying at the principal offices of MCC 
and MSTC. All submissions should refer to File Numbers SR-MCC-94-15 and 
SR-MSTC-94-18 and should be submitted by February 17, 1995.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\

    \6\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-2072 Filed 1-26-95; 8:45 am]
BILLING CODE 8010-01-M