[Federal Register Volume 61, Number 216 (Wednesday, November 6, 1996)]
[Notices]
[Pages 57504-57505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28519]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37907; File No. SR-DCC-96-11]


Self-Regulatory Organizations; Delta Clearing Corp.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Relating 
to the Addition of Garban LLC as an Interdealer Broker for Delta 
Clearing Corp.'s Repurchase Agreement Clearance System

October 31, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on October 29, 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-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to give notice that DCC 
has authorized Garban LLC (``Garban'') to act as an interdealer broker 
in DCC's over-the-counter clearance and settlement system for 
repurchase agreement and reverse repurchase agreement (``repos'') 
transactions involving 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 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

    Through its repo clearing system, DCC clears repo transactions that 
have been agreed to by DCC participants 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., Prebon Securities (USA) Inc., Tullet and Tokyo Securities 
Inc., Tradition (Government Securities), Inc., Patriot Securities, 
Inc., and GFI Group Inc. are authorized brokers.\4\ The purpose of the 
proposed rule change is to give notice that DCC has authorized Garban 
to act as a 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.
    \4\ Securities Exchange Act Release Nos. 36367 (October 13, 
1995), 60 FR 54095; 36901 (February 28, 1996), 61 FR 8991; 37042 
(March 29, 1996), 61 FR 15330; 37212 (May 14, 1996), 61 FR 25722; 
37235 (May 20, 1996), 61 FR 26942; 37392 (July 1, 1996), 61 FR 
36095; and 37488 (July 26, 1996) 61 FR 40471.
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    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.\5\
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    \5\ 15 U.S.C. 78q-1 (1988).
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(B) Self-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 \6\ and Rule 19b-4(e)(4) thereunder \7\ 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

[[Page 57505]]

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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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii) (1988).
    \7\ 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 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. 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-96-11 and should be submitted by November 27, 1996.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-28519 Filed 11-5-96; 8:45 am]
BILLING CODE 8010-01-M