[Federal Register Volume 61, Number 57 (Friday, March 22, 1996)]
[Notices]
[Pages 11912-11913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6968]



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[[Page 11913]]


SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36982; File Nos. SR-MCC-96-03]


Self-Regulatory Organizations; Midwest Clearing Corporation; 
Notice of Filing of a Proposed Rule Change Relating to the Pass-Through 
of Certain Fees and Charges and the Elimination of All Other Charges

March 18, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 1, 1996, the Midwest 
Clearing Corporation (``MCC'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change (File No. SR-MCC-
96-03) as described in Items I, II, and III below, which items have 
been prepared primarily by MCC. MCC amended the filing on March 7, 
1996.\2\ The Commission is publishing this notice to solicit comments 
from interested persons.

    \1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
    \2\ MCC originally filed the proposed rule change under Section 
19(b)(3)(A) of the Act. On March 7, 1996, MCC requested that the 
proposal be considered filed under Section 19(b)(2) of the Act. 
Telephone conversation between David T. Rusoff, Foley and Lardner 
[counsel to MCC], and Jerry W. Carpenter, Assistant Director, Peter 
R. Geraghty, Senior Counsel, and Cheryl O. Tumlin, Attorney, 
Division of Market Regulation, Commission (March 7, 1996).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    MCC proposes to add a provision to its Services and Schedule of 
Charges that will permit MCC to pass-through at cost to Sponsored 
Participants (``SPs'') and Temporary Sponsored Participants (``TSPs'') 
\3\ fees and other charges assessed MCC by the National Securities 
Clearing Corporation (``NSCC''). MCC also proposes to eliminate the 
remainder of its existing fee schedule.

    \3\ For a detailed discussion of the clearing arrangements for 
SPs and TSPs, refer to Securities Exchange Act Release No. 36740 
(January 19, 1996) 61 FR 2553 [File No. SR-MCC-95-05] (notice of 
filing and order granting accelerated approval of a proposed rule 
change relating to a contingency plan for participants in connection 
with MCC's decision to withdraw from the securities clearing 
business). Release No. 36740 (January 19, 1996) 61 FR 2553 [File No. 
SR-MCC-95-05] (notice of filing and order granting accelerated 
approval of a proposed rule change relating to a contingency plan 
for participants in connection with MCC's decision to withdraw from 
the securities clearing business).
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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, MCC 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. MCC has prepared summaries, set forth in section (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 MCC.
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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 permit MCC to charge 
SPs and TSPs at cost the fees and charges assessed on MCC by NSCC in 
connection with SPs' and TSPs' use of NSCC's services. The proposed 
rule change also eliminates all other existing MCC fees.
    MCC proposes to eliminate its existing fee schedule in its entirety 
and replace it with the following schedule.
Sponsored Participants and Temporary Sponsored Participants
Fees and charges assessed on MCC by the National Securities Clearing 
Corporation
    Charge: Rebilled at Cost

    MCC believes the proposed rule change is consistent with Section 
17A of the Act and the rules and regulations thereunder because it 
provides for the equitable allocation of reasonable fees and other 
charges among participants using its facilities.

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

    MCC does not believe the proposed rule change will impose a 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 
Purposed Rule Change Received From Members, Participants or Others

    Written comments on the proposals have not been solicited or 
received.

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 MCC 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 submission 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington D.C. 20549. 
Copies of the submissions, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communication 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. 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 filing also will be available 
for inspection and copying at the principal office of MCC. All 
submissions should refer to the file number SR-MCC-96-03 and should be 
submitted by April 12, 1996.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\

    \5\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-6968 Filed 3-21-96; 8:45 am]
BILLING CODE 8010-01-M