[Federal Register Volume 61, Number 104 (Wednesday, May 29, 1996)]
[Notices]
[Pages 26942-26943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13331]



=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-37235; File No. SR-DCC-96-06]


Self Regulatory Organizations; Delta Clearing Corp.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Relating 
to the Authorization of Tradition (Government Securities) Inc. To 
Participate as an Interdealer Broker for U.S. Treasury Repurchase and 
Reverse Repurchase Agreement Trades

May 20, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on April 24, 1996, Delta 
Clearing Corp. (``DCC'') 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 
DCC. 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).
---------------------------------------------------------------------------

I. Self-Regualtory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to notify the Commission 
that Tradition (Government Securities) Inc. (``Tradition'') has been 
authorized to act as an interdealer broker in DCC's clearance and 
settlement system for repurchase and reverse repurchase agreement 
transactions in U.S. Treasury securities.

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

    In its filing with the Commission, DCC included statements 
concerning

[[Page 26943]]

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. 
DCC 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.
---------------------------------------------------------------------------

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    DCC's repo clearance system clears transactions in repurchase 
agreements that have been agreed to through the facilities of 
interdealer brokers that have been authorized by DCC (``Authorized 
Brokers'') to offer their services to DCC participants.\3\ Currently, 
Liberty Brokerage, Inc., RMJ Special Brokerage, Inc., Euro Brokers 
Maxcor Inc., and Prebon Securities (USA) Inc. are Authorized Brokers. 
The purpose of the proposed rule change is to notify the Commission 
that Tradition has been added as an Authorized Broker in DCC's 
clearance and settlement system for repo trades.
---------------------------------------------------------------------------

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

    Tradition is a wholly owned subsidiary of Tradition (North America) 
Inc. and is registered as a broker-dealer with the Commission under 
Rule 15(b) of the Act. Tradition (North America) Inc. is a subsidiary 
of Compagnie Financiere Tradition of Switzerland, which is an 
institutional broker of money market and debt market instruments and 
derivatives.
    The proposed rule change will facilitate the prompt and accurate 
clearance and settlement of securities transactions, and therefore, the 
proposed rule change is consistent with the requirements of the Act, 
specifically Section 17A of the Act, and the rules and regulations 
thereunder.\4\
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78q-1 (1988).
---------------------------------------------------------------------------

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

    DCC 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(e)(4) \6\ in that the 
proposal effects a change in an existing service of a registered 
clearing agency that does not adversely affect the safeguarding of 
securities or funds in the custody or control of the clearing agency or 
for which it is responsible 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 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(iii) (1988).
    \6\ 17 CFR 240.19b-4(e)(4) (1995).
---------------------------------------------------------------------------

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 communciation 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 also will be available 
for inspection and copying at DCC. All submissions should refer to File 
No. SR-DCC-96-06 and should be submitted by June 19, 1996.

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

    \7\ 17 CFR 200.30-3(a)(12) (1995).
---------------------------------------------------------------------------

Margaret M. McFarland,
Deputy Secretary.
[FR Doc. 96-13331 Filed 5-28-96; 8:45 am]
BILLING CODE 8010-01-M