[Federal Register Volume 60, Number 198 (Friday, October 13, 1995)]
[Notices]
[Pages 53446-53448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25366]



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[[Page 53447]]


SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36339; International Series Release No. 862, File No. 
SR-ISCC-95-04]


Self-Regulatory Organizations; International Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Relating to Adding an Additional Service Provider to the 
Global Clearance Network Service

October 5, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on September 11, 1995, 
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. On September 19, 1995, and October 3, 
1995, ISCC filed amendments to the proposed rule change.\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 Karen Saperstein, Counsel, ISCC, to Jerry W. 
Carpenter, Assistant Director, Office of Securities Processing 
Regulation (``OSPR''), Division of Market Regulation (``Division''), 
Commission (September 12, 1995) and from Julie Beyer, Associate 
Counsel, ISCC, to Christine Sibille, Senior Counsel, OSPR, Division, 
Commission (October 3, 1995).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change adds an additional service provider to 
ISCC's Global Clearance Network (``GCN'') service.

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

    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.\3\

    \3\ These statements have been modified by the Commission.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    ISCC's Rule 50 provides that ISCC may establish a foreign clearing 
settlement and custody service, in conjunction with banks, trust 
companies, and other entities. ISCC has established such a service with 
GCN service. Presently, ISCC has established a GCN relationship with 
Citibank N.A., Standard Bank of South Africa, and Westpac Custodian 
Nominees Limited of Australia.\4\ Originally, ISCC intended that the 
agreement with Westpac Custodian Nominees Limited of Australia would 
cover GCN services in both Australia and New Zealand. However, due to 
its corporate structure, Westpac Banking Corporation, the parent 
company of both Westpac Custodian Nominees Limited of Australia and 
Westpac Nominees-NZ-Limited, has required that ISCC enter into a 
separate agreement with Westpac Nominees-NZ-Limited in order to provide 
GCN services in New Zealand. The purpose of the rule change is to add 
Westpac Nominees-NZ-Limited as an additional service provider.\5\

    \4\ Securities Exchange Act Release Nos. 29841 (October 18, 
1991), 56 FR 55960 [File No. ISCC-91-01] (Order approving 
establishment of GCN service with Citibank, N.A. as service 
provider), and 35392 (February 16, 1995), 60 FR 10415 [File No. SR-
ISCC-94-06] (Order approving Standard Bank of South Africa and 
Westpac Custodian Nominees Limited of Australia as service 
providers).
    \5\ Westpac Nominees-NZ-Limited has been providing custody and 
settlement services since 1961. It currently provides custodial and 
securities settlement services to over 70 local and international 
clients and Westpac manages over 1.4 billion in New Zealand dollars 
in assets under custody. It is qualified as an eligible foreign 
custodian under Rule 17f-5 of the Investment Company Act of 1940.
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    Westpac Nominees-NZ-Limited will enter into an agreement with ISCC, 
identical to the agreement between ISCC and Westpac Nominees Limited of 
Australia, pursuant to which Westpac Nominees-NZ-Limited will agree to 
provide access to clearing, settlement, and custody services to GCN 
participants that qualify to be customers of the bank. As with Westpac 
Nominees Limited of Australia, Westpac Nominees-NZ-Limited has agreed 
to provided the services at reduced prices. ISCC will not provide any 
volume guarantees to the bank, and the bank will be responsible to 
collect fees directly from the participants. The agreement will be 
terminable by mutual agreement of the parties or on ninety days prior 
notice.
    Access to the additional service provider ultimately will be 
beneficial to the investing public. Accordingly, these changes are 
consistent with the requirements of Section 17A of the Act \6\ and the 
rules and regulations thereunder.

    \6\ 15 U.S.C. 78q-1 (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition.

    ISCC does not believe that the proposed rule change will have an 
impact on or impose a burden on competition.

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

    The foregoing rule change has become effective on filing pursuant 
to Section 19(b)(3)(A) of the Act \7\ and pursuant to Rule 19b-4(e) 
thereto \8\ in that the proposed rule change is effecting an existing 
service that does not adversely affect the safeguarding of securities 
or funds in the custody or control of the clearing agency and does not 
significantly affect the respective rights or obligations of the 
clearing agency 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.

    \7\ 15 U.S.C. 78s(b)(3)(A) (1988).
    \8\ 17 CFR 240.19b-4(e) (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 the provisions 
of 5 U.S.C. 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 also will be available for 
inspection and copying at the principal office of ISCC. All submissions 
should refer to the File No. SR-ISCC-95-04 and should be submitted by 
November 3, 1995.


[[Page 53448]]

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 95-25366 Filed 10-12-95; 8:45 am]
BILLING CODE 8010-01-M