[Federal Register Volume 61, Number 140 (Friday, July 19, 1996)]
[Notices]
[Pages 37783-37784]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18296]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37433; File No. SR-DTC-96-11]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing of a Proposed Rule Change Seeking Authority To Release
Clearing Data Relating to Participants
July 12, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 28, 1996, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change (File No.
SR-DTC-96-11) as described in Items I, II, and III below, which items
have been prepared primarily by DTC. 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-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to establish a new rule
governing the release of certain information relating to DTC's
participants which information is obtained in DTC's ordinary course of
business.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, DTC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments that it received on the proposed rule change.
The text of these statements may be examined at the places specified in
Item IV below. DTC 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 the text of the summaries
submitted by DTC.
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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 Rule 2,
Section 6, which will govern the release of certain information
relating to DTC's participants which information is obtained in DTC's
ordinary course of business. The new rule will authorize DTC to release
information relating to a participant's fund deposit, collateral,
[[Page 37784]]
net credit balance, and net debit balance (referred to herein as
``clearing information'') to authorized parties. Such authorized
parties will include other clearing agencies registered with the
Commission at which the participant is a member; any clearing
organization that is affiliated with or has been designated by a
futures contract market under the oversight of the Commodities Futures
Trading Commission of which the participant is a member; and upon the
request of the participant, to such other entities as the participant
may designate.
The proposed rule change will permit DTC to release clearing
information to the National Securities Clearing Corporation for use in
its Collateral Management Service (``CMS'').\3\ CMS provides collateral
information regarding a participant to the participant and to other
clearing agencies at which the participant is a member.
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\3\ For a complete description of the CMS, refer to Securities
Exchange Act Release No. 36091 (August 5, 1995), 60 FR 30912 [File
No. SR-NSCC-95-06] (order approving the CMS).
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DTC believes the proposed rule change is consistent with Section
17A of the Act and the rules and regulations thereunder because the
proposal will enable DTC to share clearing information with other
clearing agencies so that they may better monitor a common
participant's total clearing fund, margin, and other similar required
deposits that may be available to protect a clearing agency against
loss should the participant default on its obligations. DTC's ability
to share information with other clearing agencies will ultimately
assist DTC and these entities in assuring the safeguarding of
securities and funds in their custody or control.
(B) Self-Regulatory Organization's Statement on Burden on Competition
DTC does not believe that the proposed rule change will have an
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
Comments on the proposed rule change were not solicited. DTC will
notify the Commission of any written comments received by DTC.
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 DTC 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 DTC. All submissions should
refer to the file number SR-DTC-96-11 and should be submitted by August
9, 1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\4\
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\4\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-18296 Filed 7-18-96; 8:45 am]
BILLING CODE 801001-M