[Federal Register Volume 60, Number 212 (Thursday, November 2, 1995)]
[Notices]
[Pages 55748-55749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27236]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-36430; File No. SR-GSCC-95-03]


Self-Regulatory Organizations; Government Securities Clearing 
Corporation; Notice of Filing of a Proposed Rule Change Seeking 
Authority To Release Clearing Data Relating to Participants to the 
National Securities Clearing Corporation's Collateral Management 
Service and Other Parties

October 27, 1995.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 28, 1995, the 
Government Securities Clearing Corporation (``GSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change (File No. SR-GSCC-95-03) as described in Items I, II, and III 
below, which items have been prepared primarily by GSCC. On September 
13, 1995, GSCC filed an amendment to the proposed rule change to make a 
technical correction.\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\ Letter from Jeffrey F. Ingber, General Counsel and 
Secretary, GSCC, to Peter R. Geraghty, Division of Market 
Regulation, Commission (September 13, 1995).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to modify GSCC's rules 
to authorize the release of clearing data relating to GSCC's 
participants to the National Securities Clearing Corporation's 
(``NSCC'') Collateral Management Service (``CMS'') \3\ and to other 
parties.

    \3\ Infra note 5.
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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 that 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 
submitted by GSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The proposal will amend GSCC Rule 1 and GSCC Rule 29 to enable GSCC 
to participate in NSCC's CMS.\5\ GSCC Rule 1 (``Definitions'') will be 
amended by adding the term ``CFTC-Recognized Clearing Organization'' 
and to define it as ``a clearing organization that is affiliated with, 
or designed by, a contracts market or markets trading specific futures 
products, and is under the oversight of the Commodity Futures Trading 
Commission.'' The term ``Collateral Management Service'' also will be 
added and defined as ``the collateral management information-sharing 
service operated by the National Securities Clearing Corporation.''

    \5\ Generally, NSCC's CMS will provide participating 
participants and clearing agencies with access to information 
regarding participating participants' clearing fund, margin, and 
other similar requirements and deposits at participating clearing 
agencies. For a complete description of the CMS, refer to Securities 
Exchange Act Release No. 36091 (August 10, 1995), 60 FR 42931 [File 
No. SR-NSCC-95-06] (order approving NSCC's CMS).
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    GSCC Rule 29 (``Release of Clearing Data'') will be amended to 
permit GSCC to release clearing data to CFTC-Recognized Clearing 
Organizations and otherwise to NSCC solely in connection with NSCC 
providing its CMS.\6\ Section 4 of Rule 29 will be amended to clarify 
that the term ``Clearing Data'' will include other data in addition to 
transaction date that is received by GSCC in the clearance and/or 
settlement process.

    \6\ Section 2(a) of Rule 29 already permits GSCC to release 
clearing data to other self-regulatory organizations such as NSCC 
that have regulatory authority over a GSCC member. The purpose of 
new Section 2(b) is to make explicit GSCC's authority to release 
clearing data to NSCC for its CMS.
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    GSCC believes the proposed rule change is consistent with Section 
17A of the Act and the rules and regulations thereunder because the 
rule proposal should help to safeguard securities and funds in its 
custody or control or for which it is responsible.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    GSCC does not believe that the proposed rule change will 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

    No written comments relating to the proposed rule change have been 
solicited or received. 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 GSCC 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 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 will also be available for 
inspection and copying at the principal office of GSCC. All submissions 
should refer to the file number SR-GSCC-95-03 and should be submitted 
by November 24, 1995.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\

    \7\ 17 CFR 200.30-3(a)(12) (1994). 

[[Page 55749]]

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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-27236 Filed 11-1-95; 8:45 am]
BILLING CODE 8010-01-M