[Federal Register Volume 60, Number 186 (Tuesday, September 26, 1995)]
[Notices]
[Pages 49648-49653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23760]



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[[Page 49649]]


SECURITIES AND EXCHANGE COMMISSION
[Release No. 36252; File No. SR-GSCC-95-02]


Self-Regulatory Organizations; Government Securities Clearing 
Corporation; Notice of Proposed Rule Change Relating to Netting 
Services for the Non-Same-Day-Settling Aspects of Next-Day and Forward-
Settling Repurchase and Reverse Repurchase Transactions

September 19, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 1, 1995, the 
Government Securities Clearing Corporation (``GSCC'') 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 GSCC. On August 29, 1995, and September 19, 
1995, GSCC amended the filing.\2\ The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.

    \1\ 15 U.S.C. 78s(b)(1) (1988).
    \2\ Letters from Jeffrey F. Ingber, General Counsel, GSCC, to 
Christine Sibille, Senior Counsel, Division of Market Regulation, 
Commission (August 24, 1995, and September 14, 1995).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    GSCC proposes to modify its rules to begin implementing netting and 
risk management services for the non-same-day-settling aspects of next-
day and forward-settling repurchase and reverse repurchase transactions 
involving government securities as the underlying instrument 
(``repos'').\3\

    \3\ The text of the proposed revised rules is attached as 
Exhibit A to File No. SR-GSCC-95-02 and is available for review in 
the Commission's Public Reference Room.
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, GSCC 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. GSCC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of such 
statements.\4\

    \4\ The Commission has modified the text of the summaries 
prepared by GSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

    GSCC plans to offer its repo services in three phases. Phase I 
involves providing comparison and netting services for next-day and 
forward-settling repo transactions, Phase II will focus on providing 
comparison, netting, and risk management services for open repos, and 
Phase III will focus on providing intraday netting and risk management 
services for same-day settling aspects of repo transactions.
    In a previous rule filing the Commission approved the comparison 
element of Phase I,\5\ and GSCC implemented its comparison service for 
next-day and forward-settling repos on May 12, 1995. Currently, there 
are forty members participating in this process. In this rule filing, 
GSCC seeks the authority to implement the next stage of Phase I of its 
repo services, which is providing netting and risk management services 
for the non-same-day-settling aspects of next-day and term repo 
transactions.\6\

    \5\ Securities Exchange Act Release No. 35557 (March 31, 1995), 
60 FR 17598 [File No. SR-GSCC-94-10] (order approving proposed rule 
change relating to implementing a comparison service for repurchase 
and reverse repurchase transactions involving government securities 
as the underlying instrument).
    \6\ Future phases will add the following repo services (not 
necessarily in this order): (1) an intraday start leg settlement 
service, (2) comparison, netting, and risk management services for 
open repos including the tracking of rate changes, (3) the tracking 
and facilitation of collateral substitutions, (4) enhanced 
comparison services for forward-starting repos, (5) interest rate 
protection for forward-starting repos, and (6) intra-day netting, 
settlement, and risk management services for all same-day-settling 
start and close legs.
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    All non-same-day settling repo legs (i.e., the close leg of 
overnight and term repos and the start leg of forward-settling repos) 
in GSCC netting-eligible securities will be netted with regular buy/
sell (i.e., cash) activity and Treasury auction purchases in GSCC's 
system. Thus, a participant's repo activity will be netted with its 
cash activity and Treasury auction purchases to arrive at a single net 
position in the security. Appropriate netting output, including the 
breakdown of the repo versus the cash component of each net settlement 
position, will be generated and distributed to participants.
    GSCC believes that incorporating repos into GSCC's net will afford 
its members and the marketplace in general a number of important 
benefits, including the following: guaranteed settlement, enhanced risk 
protection, reduction in funds wire transfer activity, elimination of 
the bulk of the underlying collateral movements, reduction of daylight 
overdraft charges, and provision of an automated coupon tracking 
system.
    The repo netting process will begin in test mode and then move into 
``non-live'' production. Once the repo netting system is running 
smoothly (i.e., when GSCC and participating members are satisfied with 
the test results and generated output) and the Commission approves this 
rule filing, GSCC will be ready to fully implement repo netting.
    Netting implementation entails a number of rule changes including, 
most notably, substantial modifications to GSCC's forward margin and 
clearing fund procedures and methodologies. The necessary rule changes 
are set forth below.
(1) Eligibility for Netting
    GSCC netting members, other than interdealer broker netting 
members, will be able to participate in repo netting upon being 
designated by GSCC's Membership and Standards Committee as eligible for 
such services.\7\ This determination of eligibility will be based on: 
(1) satisfactory participation in the repo comparison service, (2) 
demonstration by the member of its ability to meet its obligations with 
regards to repos, and (3) execution by the member of documentation 
provided by GSCC ensuring that the netting and settlement of its repos 
is to be done in conformance with GSCC's rules.

    \7\ Interdealer broker netting members will not be eligible for 
GSCC's repo netting service during this first phase because 
brokering in the repo market currently is done on a ``giveup'' basis 
with interdealer brokers giving up the names of each counterparty to 
the other counterparty and dropping completely out of the 
transaction. The various issues related to GSCC's acting with its 
interdealer broker members as principals with regard to repo 
transactions will be addressed in the next repo netting rule filing.
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    A single repo transaction could have two corresponding netting-
eligible settlements. In other words, both the start and the close legs 
of a repo transaction may be netted if data on the repo is received and 
compared by GSCC prior to the scheduled settlement date for the start 
leg.
    In order for a start leg or a close leg of a repo transaction to be 
eligible for netting and settlement through the netting system, it must 
meet various requirements: (1) the repo must be compared by GSCC, (2) 
the number of business days between the scheduled settlement date for 
the close leg and the business day on which the repo is submitted to 
GSCC must not be greater than the maximum number of business days 
established by GSCC which initially will be no more than 195 

[[Page 49650]]
calendar days,\8\ (3) netting of the leg must occur on or before its 
scheduled settlement date (i.e., the leg cannot be a same-day settling 
leg), (4) data on each side of the repo must be submitted to GSCC by 
members designated as eligible to participate in the repo netting 
process, (5) the underlying securities must be eligible for netting, 
and (6) the maturity date of the underlying securities must be no later 
than the scheduled settlement date of the leg. A forward-settling start 
leg,\9\ if submitted to GSCC within 195 calendar days of the scheduled 
settlement date for the close leg associated with that start leg, will 
not be submitted into the netting system until the scheduled settlement 
date for that start leg. At that time, it will drop into the net as 
does any other trade, and its settlement will become guaranteed by 
GSCC. A forward-settling close leg, if submitted within 195 calendar 
days of its scheduled settlement date, will not be submitted to the 
netting system until the scheduled settlement date for the associated 
start leg.

    \8\ Supra note 2. The September 19, 1995 letter amended the 
maximum number of business days between the scheduled settlement 
date for the close leg and the date on which the repo is submitted 
from 364 days to 195 calendar days.
    \9\ A forward-settling start leg is a start leg that is 
submitted one or more business days prior to its scheduled 
settlement date.
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(2) Netting Process
    As noted above, each night a participating repo netting member's 
eligible repo transactions will be netted with its regular buy/sell 
cash activity and Treasury auction purchases in the same CUSIP to 
establish a single net position in the security. For netting purposes, 
the settlements associated with repo start legs and reverse repo close 
legs will be treated as short positions. The settlements associated 
with repo close legs and reverse repo start legs will be treated as 
long positions. The difference between a member's total shore activity 
and its total long activity within a CUSIP is its net position in the 
CUSIP.
    While netting will result in the establishment of a single net 
position for each participant in each of its active securities, GSCC 
will provide each participant with a breakdown of its net positions by 
reporting for each security: (1) The net buy/sell position, (2) the net 
repo position, and (3) the total net position. A participant's forward 
settling net position for a security is recalculated on a daily basis. 
Forward settling net positions automatically convert into deliver or 
receive obligations on their scheduled settlement dates.
(3) Settlement
    GSCC conducts two settlement processes on a daily basis: a morning 
funds-only settlement process and a day-long securities settlement. For 
securities settlement, each netting member is obliged to deliver to or 
to receive from GSCC its net deliver or receive obligation in a given 
CUSIP that is generated as a result of the netting process. Securities 
settlement for repo legs will not differ from securities settlement for 
regular buy/sell activity.
    For funds-only settlement, amounts pertaining to repos will be 
added to amounts pertaining to regular buy/sell activity and Treasury 
auction purchases and will be reported within the existing categories. 
In addition, the daily net funds-only settlement amount for each 
netting member will be adjusted to reflect certain changes to CGCC's 
margining processes. With these changes, forward margin debits will be 
paid through to the credit side, interest will be paid to members with 
forward margin debits and will be paid by members with forward margin 
credits [as discussed below in Section (7)], and forward debit margin 
obligations will be satisfied on a cash-only basis.
(4) Coupon Protection
    In a repo transaction, when the start leg is initiated, securities 
are moved from the account of the funds borrower (i.e., the long side 
for the close leg) to the account of the funds lender (i.e., the short 
side for the close leg) in exchange for a negotiated cash amount. 
Securities remain in the account of the funds lender until the 
settlement of the close leg takes place. However, the funds lender is 
not entitled to any coupon payments made while the securities are in 
its possession. In order to ensure that coupon payments related to the 
underlying collateral are collected by the appropriate party, GSCC will 
automatically pass the coupon payment from the funds lender (the holder 
of the securities) to the funds borrower when the repo term crosses a 
coupon payment date.
    The coupon payments that are made by the issuer directly to the 
funds lender's clearing bank on coupon date therefore will be passed 
through to the funds borrower by GSCC on coupon date when appropriate. 
On the coupon payment date, GSCC will pass the coupon payment from the 
funds lender (short side) to the funds borrower (long side) when (1) 
the coupon date is after the repo start date and (2) the repo 
settlement date is on or after the coupon date. GSCC's current 
procedures for paying coupon on all fail obligations will not change 
and will apply to fail obligations arising from repos as well.
(5) Collateral Substitution
    In this initial phase of repo netting, GSCC will not perform 
collateral substitutions on an automated basis. However, GSCC will 
facilitate the ability of participants to make collateral substitutions 
by allowing them to designate new underlying collateral for a repo 
transaction through use of the ``cancel and correct'' feature of its 
comparison system. GSCC's operations staff will manually process the 
collateral substitution as it does now for clearing fund securities 
margin. An automated facility for performing repo collateral 
substitutions will be provided as part of a future phase of repo 
services.
(6) Guarantee of Settlement
    When GSCC nets repo transactions, it interposes itself between the 
two submitting participants for transaction settlement purposes as it 
does for cash transactions. For example, in the case of a repo close 
leg, GSCC will interpose itself between the participant that submitted 
the repo (the long participant for the close leg) and the participant 
that submitted the corresponding reverse (the short participant for the 
close leg). In doing so, GSC assumes contraparty responsibility and 
guarantees settlement of all repos that enter its netting system, 
including the return of the underlying collateral to the funds borrower 
and both the return of principal (repo start amount) and the payment of 
interest to the term of the repo transaction to the funds lender.
    Again, forward-settling repo start legs are eligible for netting 
but are not netted or guaranteed until they reach scheduled settlement 
date. Forward-settling repo close legs are not guaranteed until the 
settlement date of the associated start leg.
(7) Forward Margin
    Because GSCC guarantees the settlement of all transactions once 
they are compared and netted, forward settling net positions are 
marked-to-the-market daily, and participating members are assessed 
forward margin accordingly in their daily funds settlement.\10\ A 
member's required margin will continue to be recalculated daily; 
therefore, each day, the previous day's debit/credit will be reversed 
and a new forward margin obligation established.

    \10\ Because forward-settling start legs are not guaranteed 
until the scheduled settlement date, such transactions are not 
margined.
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    Margin for cash trades will continue to be calculated by marking 
each 

[[Page 49651]]
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transaction to-the-market using the following formula:

Market Value=GSCC Price x Par Amount+Accrued Coupon Interest 
Calculated to Scheduled Settlement Date

The resulting value is then subtracted from contract value to calculate 
the appropriate margin amount.
    One significant change to the daily forward margin process for both 
cash and repo trades is that credit margin amounts will be used to 
fully offset debit margin amounts across CUSIPs with any remaining 
credits being paid out to participants in funds settlement. There will 
be the following exceptions to this pay-through policy: (1) As an 
initial measure, until GSCC is able to more extensively assess the 
risks that arise from paying through debit forward margin amounts to 
the credit side, GSCC will limit members' right to collect credit 
forward margin amounts to bank and category one dealer netting members 
that have been active in the netting system for at least sixty days, 
(2) if a member has been awarded Treasury securities at auction, GSCC's 
obligation to pay to such member a credit forward margin payment will 
be limited by the amount of debit forward margin payment(s) that under 
GSCC's rules the Federal Reserve Banks are not obligated to pay to 
GSCC, and (3) GSCC may suspend a member's right to collect credit 
forward margin if the member is placed on surveillance.
    Another fundamental change to the daily forward margin process is 
that because credit margins will now be paid through, only cash may be 
used to post margin. Members will no longer be able to post collateral 
in advance in lieu of their cash forward margin obligations. Moreover, 
to take into account differences between the repo market and the when-
issued cash market, including the fact that the liquidation process for 
repos involves a cost-of-carry element, forward margin calculations for 
repos will differ from those of cash market trades.
    To margin a forward settling repo close leg to-the-market, GSCC 
will begin by calculating market value, using the following formula:

Market Value=GSCC Price x Par Amount+Accrued Coupon Interest 
Calculated to Current Date

    The market value calculated will be subtracted from the repo's 
contract value \11\ to establish a debit or credit collateral mark. 
Next, the repo financing mark for the transaction will be calculated. 
The rationale for including such a component is that if the member in 
the net short position (reverse side) fails, GSCC will replace the 
position by buying securities and putting them out on repo in the 
market and thus will incur a financing cost. Conversely, if the member 
in the net long position (repo side) fails, GSCC will replace the 
position by selling securities obtained by doing a reverse repo in the 
market and thus will create interest income potential. Therefore, GSCC 
will compute the financing mark and will include it in the clearing 
margin calculation. The formula used to calculate the financing mark 
will be:

    \11\ The contract value of the repo is the dollar value at which 
the close leg is to be settled.
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Financing Mark=Market Value of Repo x GSCC Repo Rate x Number of 
Days to Scheduled Settlement Date360

    The financing mark will be debited to the reverse (short) side and 
will be credited to the repo (long) side.
    The total forward margin for repos will be calculated using the 
following formula:

Total Forward Margin=Collateral Mark+Financing Mark

    The debit and credit margins calculated for the individual 
transactions comprising the participant's net settlement position will 
then be added together. As noted above, credit margins will offset 
debit margins. A participant's total forward margin will be the 
mathematical sum of the individual debit and credit margins calculated 
across all securities and across all settlement dates.
    It should be noted that the GSCC repo rate used in margin 
calculations will be tailored to each individual repo transaction. GSCC 
will determine if the collateral underlying the repo is general or 
specific.\12\ For general collateral repos, GSCC will use the remaining 
term of the repo to determine the appropriate market repo rate. For 
specific collateral repos, GSCC will determine the specific repo rate 
by CUSIP and the remaining term of the repo. GSCC will use multiple 
market sources to obtain repo rates which will be monitored on a daily 
basis.

    \12\ General collateral repos refer to repo transactions that do 
not specify the underlying collateral by a CUSIP number while 
specific collateral repos indicate by CUSIP number what the 
underlying security must be in a given transaction.
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    In designing the repo netting system, GSCC sought not to affect 
adversely the economics of the repo. Therefore, GSCC will pay interest 
on margin amounts collected and will charge interest on margin amounts 
paid on a daily basis using the effective Fed Funds rate. Because there 
will be a single margining process for all forward net settlement 
positions, interest will be paid on all debit forward margin payments 
and interest will be collected on all credit forward margin payments 
including margin payments relating to cash buy/sell trades.
    It should be noted that GSCC's margining process effectively 
provides a daily repricing service that operates on a cash rather than 
a collateral basis. Therefore, participants will not need to build 
margin into the original value of the repo but rather should price the 
repo at the current market value. GSCC's margining and repricing 
services will provide a standardized approach for moving repo cash 
collateral with interest.
(8) Clearing Fund
    GSCC's clearing fund was established to require each participant to 
collateralize its calculated exposure to ensure that GSCC has 
sufficient assets at all times to provide orderly settlement by meeting 
its payment and delivery obligations even if one or more of its 
participants became insolvent. Consistent with these objectives, the 
following changes will be made to the clearing fund in conjunction with 
repo netting implementation.
    (a) Clearing Fund Calculations Will Include Repo Activity.
    The net settlement positions used in clearing fund calculations 
will include the net of all cash and repo activities.
    (b) Change in the Clearing Fund Calculation.
    Currently, the funds settlement risk component of the clearing fund 
calculation and the securities settlement risk component of the 
clearing fund calculation each takes into account the average of a 
member's settlement activity over the most recent twenty business days. 
To better take into account the exposure presented by a member during 
periods of relatively high volume and activity (e.g., quarterly 
refunding periods), each calculation will be changed to take into 
account the average of a member's most active ten days over the most 
recent seventy-five business days.\13\

    \13\ This change will be made to both the general rules on 
clearing fund deposits and the specific rules for Category 2 dealer 
netting members and Category 2 futures commission merchants.
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    (c) Clearing Fund Calculations Will Anticipate the Settlement of 
the Current Day's Activities.
    The current clearing fund formula for any particular day fails to 
take into account the fact that certain trades that comprise net 
settlement positions are scheduled to settle on that day and that their 
settlement will change the nature of those positions. In this sense, 
the 

[[Page 49652]]
clearing fund adjusts to the changing nature of a member's net 
settlement positions one business day late.
    To adjust for this, the clearing fund formula will be modified to 
anticipate any exposure resulting from the clearance of the present 
day's settlement transactions. Specifically, a member's outstanding net 
settlement positions for clearing fund purposes will be calculated 
alternately by disregarding and including the amount of securities 
underlying positions that are scheduled to settle that day. Thus, the 
portion of the clearing fund formal that reflects securities settlement 
exposure will be calculated by taking the average offset margin amount 
\14\ or, if greater, the greatest of the following three calculations: 
(1) Fifty percent of that day's gross margin amount, (2) one hundred 
percent of that day's offset margin amount calculated by disregarding 
the amount of securities underlying such positions that are scheduled 
to settle that day, or (3) one hundred percent of that day's offset 
margin amount calculated as it is today.\15\

    \14\ The offset margin amount is the gross margin (the dollar 
value of a member's net settlement positions multiplied by the 
appropriate margin factors) as reduced by offsetting short and long 
positions based on maturity date and par amount. The average offset 
margin, as discussed above in (b), will take the average of offset 
margin from the ten most active days over the previous seventy-five 
days.
    \15\ Currently, securities settlement exposure is calculated as 
the greater of the average offset margin amount or 50% of the gross 
margin amount.
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    The calculation of the securities settlement exposure for a 
Category 2 dealer netting member or a Category 2 futures commission 
merchant netting member also is being revised to require such member to 
deposit the greatest of (1) such member's average gross margin amount 
based on the average of the ten most active days over the most recent 
seventy-five days, (2) such member's gross margin amount, or (3) such 
member's gross margin amount calculated by disregarding positions 
settling that day.
    (d) Addition of Repo Rate Volatility.
    A new component of the clearing fund formula will reflect the 
historical daily volatility in repo rates and its impact on the 
financing component of net settling positions involving repo activity. 
Specifically, GSCC will apply a set of percentages (``repo volatility 
factors'') to repos that constitute net settlement positions as 
necessary to cover the securities' settlement exposure posed by such 
repo activity. These percentages will be derived based on GSCC's 
research, which has been conducted with the assistance of its members, 
on historical repo rate volatility including repo market participants' 
analytics and raw data itself. GSCC is building and will maintain its 
own data base on the historical daily volatility of repo rates.
    A member will be required to add to its clearing fund requirement 
the greater of (1) the product of the repo volatility factors and the 
market value of the member's repo transactions reduced by offsetting 
short and long positions based on maturity date and par amount 
(``offset repo volatility amount'') or (2) the average of a member's 
ten highest offset repo volatility amounts over the most recent 
seventy-five days.
    (e) Return of Excess Clearing Fund.
    Participants will have the ability to submit requests for the 
return of excess collateral on a monthly basis, as opposed to on a 
quarterly basis. This change is being made for a number of reasons. One 
is to help position GSCC to better accommodate market initiatives such 
as NSCC's Collateral Management Service, which facilitates market 
participants' management of their margin balances at clearing 
organizations and which ultimately will allow those market participants 
to move margin amounts from one clearing organization to another in an 
automated fashion. This change also responds to members' requests to 
make excess funds available more frequently.
(9) Loss Allocation
    GSCC conducted an extensive review of its loss allocation 
procedures in conjunction with repo netting implementation and 
determined that the existing loss allocation procedures remain adequate 
and appropriate. Loss allocation, whether related to regular buy/sell 
activity or repo activity, will continue to be a function of the extent 
of a member's activity with the defaulting member done prior to the 
default.
(10) Obligation to Submit Trades
    GSCC will amend its Rule 11, Section 3, to state that such rule, 
which requires a netting member to submit all eligible trades to GSCC 
for comparison and netting, is not applicable to a netting member's 
repo transactions. Rule 18, Section 4, will be added to require a repo 
netting member to submit for comparison and netting all repo trades 
eligible for netting to either GSCC, another Commission registered 
clearing agency, or to a clearing agency exempted by the Commission 
from clearing agency registration.
    GSCC believes that the proposed rule changes are consistent with 
the requirements of Section 17A of the Act and specifically with 
17A(b)(3)(A) and (F) \16\ because the proposed rule changes will allow 
GSCC to expand in a prudent manner its existing netting, settlement, 
and risk management services to a broader range of Government 
securities transactions and thus will facilitate the prompt and 
accurate clearance and settlement of securities transactions.

    \16\ 15 U.S.C. 78q-1(b)(3) (A) and (F) (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    GSCC 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

    Comments on the proposed rule change have not yet been solicited or 
received. Members will be notified of the rule filing, and comments 
will be solicited by an important notice. GSCC will notify the 
Commission of any written comments received by GSCC.

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, 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 the provisions 
of 5 U.S.C. 552, will be 

[[Page 49653]]
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 GSCC. All submissions should refer to File 
No. SR-GSCC-95-02 and should be submitted by October 17, 1995.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\17\

    \17\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-23760 Filed 9-25-95; 8:45 am]
BILLING CODE 8010-01-M