[Federal Register Volume 61, Number 22 (Thursday, February 1, 1996)]
[Notices]
[Page 3743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2013]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36772; File No. SR-DGOC-96-01]


Self-Regulatory Organizations; Delta Government Options Corp.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the Establishment of Fees Charged for Repurchase Agreements

January 25, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 16, 1996, Delta 
Government Options Corp. (``DGOC'') 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 DGOC. 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).
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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 establish DGOC's fee 
schedule for repurchase and reverse repurchase agreements trades 
involving U.S. Treasury securities as the underlying instrument 
(``repos'').

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

    In its filing with the Commission, DGOC included statements 
concerning the purpose of and statutory basis for the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. DGOC has prepared summaries, set forth in 
sections (A), (B), and (C) below, of the most significant aspects of 
such statements.\2\

    \2\ The Commission has modified parts of these statements.
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A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to establish DGOC's fee 
schedule for repo trades. On October 13, 1995, DGOC commenced its 
clearance and settlement system for repos.\3\ At that time, DGOC did 
not propose any fees. DGOC has now set fees for repo trades as follows.

    \3\ For a description of DGOC's repo system, see Securities 
Exchange Act Release No. 36367 (October 13, 1995), 60 FR 54095.

------------------------------------------------------------------------
                                             Fee based on invoice price 
             Term of the trade                           \4\            
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0-30 days.................................  .05 Basis Points \5\ per    
                                             day.                       
Greater than 30 days......................  .033 Basis Points/per day.  
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    DGOC believes that the proposed rule change is consistent with 
Section 17A(b)(3)(D) of the Act,\6\ which requires that the rules of a 
registered clearing agency provide for equitable allocation of 
reasonable dues, fees, and other charges for services it provides to 
its participants.

    \4\ Invoice price equals the amount for which the reverse 
repurchase agreement is settled (principal amount of the underlying 
securities plus the repo interest).
    \5\ A basis point equals 1/100th of a percent.
    \6\ 15 U.S.C. 78q-1(b)(3)(D) (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    DGOC does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants or others

    Comments were neither solicited nor received.

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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by DGOC, it has become effective pursuant 
to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(e)(2) 
thereunder.\8\ At any time within sixty days of the filing of the 
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. 78q-1(b)(3)(A) (1988).
    \8\ 17 CFR 240.19b-4(e)(2) (1994).
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IV. Solicitation of Comments

    Intersted 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 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, N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at DGOC. All submissions should refer to the 
File No. SR-DGOC-96-01 and should be submitted by February 22, 1996.

    For the Commission by the Division of Market Regulation, 
pursaunt to delegated authority.\9\

    \9\ 17 CFR 200.30-3 (a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-2013 Filed 1-31-96; 8:45 am]
BILLING CODE 8010-01-M