[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]
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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.
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\1\ 15 U.S.C. 78s(b)(1) (1988).
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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\
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\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
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.
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\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.
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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\
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\4\ 15 U.S.C. 78q-1 (1988).
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(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.
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\5\ 15 U.S.C. 78s(b)(3)(A)(iii) (1988).
\6\ 17 CFR 240.19b-4(e)(4) (1995).
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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\
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\7\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret M. McFarland,
Deputy Secretary.
[FR Doc. 96-13331 Filed 5-28-96; 8:45 am]
BILLING CODE 8010-01-M