[Federal Register Volume 61, Number 61 (Thursday, March 28, 1996)]
[Notices]
[Pages 13908-13909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7501]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37000; International Release No. 955; File No. SR-ISCC-
96-02]


Self-Regulatory Organizations; International Securities Clearing 
Corporation; Notice of Filing of a Proposed Rule Change To Permit ISCC 
To Charge and To Collect From Members Charges Imposed by Certain Third 
Parties

March 21, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 19, 1996, the 
International Securities Clearing Corporation (``ISCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change (File No. SR-

[[Page 13909]]
ISCC-96-02) as described in Items I, II, and III below, which items 
have been prepared primarily by ISCC. 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 expand ISCC's 
authority to charge and to collect from members fees imposed by third 
parties.

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.\2\

    \2\ The Commission has modified the text of the statements 
prepared by ISCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    ISCC proposes to expand its authority to charge and to collect from 
its members fees imposed by certain third parties. ISCC's current rules 
permit ISCC to charge members for fees imposed by banks and trust 
companies in conjunction with the Global Clearance Network Service. The 
proposed modifications to ISCC's rules will permit ISCC to include on 
members' settlement statements charges imposed by entitles or 
organizations with which ISCC has entered into agreements and which 
provide services or equipment to ISCC members which are integral to the 
services provided by ISCC.
    From time to time, third parties which have entered into agreements 
with ISCC and which provide ISCC members with certain services or 
equipment which facilitate access to an ISCC service request that ISCC 
directly bill its members for the services such third parties provide 
to members.\3\ The proposed rule change will permit such third parties 
to aggregate individual member charges in one invoice to ISCC and will 
allow ISCC in turn to include the third parties' charges to individual 
members on such ISCC members' settlement statements. The proposed rule 
will thereby enable ISCC members to consolidate their payment 
obligations. If a member does not consent to such charges or otherwise 
disputes such charges, ISCC will not fine the member for not paying to 
ISCC the third party's charges. In addition, ISCC will have no 
liability to any third party vendors for such charges.

    \3\ For example, ISCC members may want to obtain computer 
hardware and/or software to access certain ISCC services. To 
facilitate such access, ISCC would make arrangements with a third 
party vendor to supply members with the appropriate hardware and/or 
software. The third party vendor would send a detailed monthly 
invoice directly to ISCC reflecting the individual member charge and 
aggregate charges for the month. ISCC would then include the 
appropriate charge on each member's monthly statement. ISCC would 
remit to the vendor within the agreed upon time period the amount 
that ISCC actually collected from members in connection with the 
vendor's charges.
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    ISCC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder because the rule proposal provides for the equitable 
allocation of dues, fees, and other charges among ISCC's participants.

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

    ISCC 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. ISCC will notify the Commission of any written 
comments received by ISCC.

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 ISCC 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, 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 Room, 450 Fifth Street, N.W., Washington, 
D.C. 20549. Copies of such filing will also be available for inspection 
and copying at the principal office of ISCC. All submissions should 
refer to the file number SR-ISCC-96-02 and should be submitted by April 
18, 1996.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\4\

    \4\ 17 CFR 200.30-3(a)(12) (1994).
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Jonathan G. Katz,
Secretary.
[FR Doc. 96-7501 Filed 3-27-96; 8:45 am]
BILLING CODE 8010-01-M