[Federal Register Volume 60, Number 188 (Thursday, September 28, 1995)]
[Notices]
[Pages 50233-50234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24029]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36265; File Nos. SR-SCCP-95-05, and SR-MCC-95-03]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia and Midwest Clearing Corporation; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Changes Incorporating 
Enhancements to the Fixed Income Transaction System

September 21, 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, and August 
23, 1995, respectively, the Stock Clearing Corporation of Philadelphia 
(``SCCP'') and the Midwest Clearing Corporation, filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
changes as described in Items I, II, and III below, which Items have 
been prepared primarily by SCCP and MCC. On August 3, 1995, SCCP 
amended its filing to request approval pursuant to Rule 19b-4(e)(6) 
rather than pursuant to Rule 19b-4(e)(4) as requested in the original 
filing.\2\ On August 18, 1995, SCCP amended the filing to clarify the 
parameters defining the seller's value tolerance for the comparison of 
all fixed income securities.\3\ The Commission is publishing this 
notice to solicit comments on the proposed rule changes from interested 
parties.

    \1\ 15 U.S.C. 78s(b)(1) (1988).
    \2\ Letter from J. Keith Kessel, Compliance Officer, SCCP, to 
Peter R. Geraghty, Esq., Division of Market Regulation 
(``Division''), Commission (August 3, 1995).
    \3\ Letter from J. Keith Kessel, Compliance Officer, SCCP, to 
Margaret J. Blake, Esq., Staff Attorney, Division, Commission 
(August 16, 1995).
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I. Self-Regulatory Organizations' Statements of the Terms of Substance 
of the Proposed Rule Changes

    SCCP and MCC propose to offer their participants the benefits of a 
recent enhancement to the National Securities Clearing Corporation's 
(``NSCC'') Fixed Income Transaction System (``FITS'').\4\ The 
enhancement expands the parameters for the seller's trade input and 
trade comparison for FITS transactions.

    \4\ For a complete description of the enhancement to NSCC's 
FITS, refer to Securities Exchange Act Release No. 35853 (June 16, 
1995), 60 FR 32722 [File No. SR-NSCC-95-05] (order granting 
accelerated approval of a proposed rule change modifying procedures 
relating to the trade comparison service for debt securities).
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II. Self-Regulatory Organizations' Statements of the Purpose of and 
Statutory Basis for, the Proposed Rule Changes

    In their filings with the Commission, SCCP and MCC included 
statements concerning the purpose of and the basis for the proposed 
rule changes and discussed any comments received on the proposed rule 
changes. The text of these statements may be examined at the places 
specified in Item IV below. SCCP and MCC have prepared summaries, as 
set forth in sections (A), (B), and (C) below, of the most significant 
aspects of these statements.\5\

    \5\ The Commission has modified the text of the summaries 
prepared by SCCP and MCC.
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A. Self-Regulatory Organizations' Statements of the Purpose of and the 
Statutory Basis for the Proposed Rule Changes

    In previous filings, the Commission approved SCCP's and MCC's 
interfaces with NSCC's FITS service so that SCCP's and MCC's 
participants can take full advantage of the benefits and features 
offered by FITS.\6\ The current proposed rule changes expand the 
comparison parameters for trade input and comparison for transactions 
in debt securities. The comparison parameters have been increased from 
$.05 per $1,000 of contract amount to $.10 per $1,000 of contract 
amount for trades greater than $100,000 and to a net contract amount 
difference of $10.00 for trades of $100,000 or less. The rule changes 
are being made in accordance with NSCC's recent changes to FITS.\7\

    \6\ Securities Exchange Act Release No. 33524 (January 26, 
1994), 59 FR 4958 [File Nos. SR-MCC-93-04 and SCCP-93-03] (order 
granting accelerated approval of proposed rule changes relating to 
the establishment of interfaces with NSCC's FITS).
    \7\ Supra note 4.
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    SCCP and MCC believe the proposed system enhancements comply with 
Section 17A(b)(3)(F) \8\ of the Act because the enhancements should 
promote the prompt and accurate clearance and settlement of securities 
transactions by increasing the initial comparison rates of FITS trade 
activity.

    \8\ 15 U.S.C. 78q-1(b)(1)(F) (1988).
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B. Self-Regulatory Organizations' Statements on Burden on Competition

    SCCP and MCC do not believe that the proposed rule changes will 
impose any burden on competition.

C. Self-Regulatory Organizations' Statements on Comments on the 
Proposed Rule Changes Received from Members, Participants or Others

    Written comments were neither solicited nor received with respect 
to 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 upon filing 
pursuant to Section 19(b)(3)(A)\9\ of the Act and Rule 19b-4(e)(6)\10\ 
thereunder because the rule changes do not significantly affect the 
protection of investors or the public interest; do not impose any 
significant burden on competition; and by their terms, do not become 
operative for thirty days after the date of the filing, or such shorter 
time as the Commission may designate if consistent with the protection 
of investors and the public interest. The Commission has designated 
that these proposed rule changes (File Nos. SR-SCCP-95-05 and SR-MCC-
95-03) become effective upon filing. The proposals are consistent with 
the protection of investors and the public interest because the 
expanded trade comparison parameters at SCCP and MCC now will be 
consistent with the parameters used by NSCC. 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.

    \9\ 15 U.S.C. Sec. 78s(b)(3)(A) (1988).
    \10\ 17 CFR 240.19b-4(e)(6) (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, N.W., Washington, D.C. 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 

[[Page 50234]]
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 Room, 450 Fifth Street, N.W., Washington, D.C. 20549. Copies 
of such filings will also be available for inspection and copying at 
the principal offices of SCCP and MCC. All submissions should refer to 
the File Nos. SR-SCCP-95-05 and SR-MCC-95-03, and should be submitted 
by October 19, 1995.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\11\

    \11\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-24029 Filed 9-27-95; 8:45 am]
BILLING CODE 8010-01-M