[Federal Register Volume 61, Number 233 (Tuesday, December 3, 1996)]
[Notices]
[Pages 64184-64185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30678]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37986; International Series Release No. 1032; File No. 
600-20]


Self-Regulatory Organizations; International Securities Clearing 
Corporation; Notice of Filing and Order Granting Approval of a Request 
for an Extension of Temporary Registration as a Clearing Agency Until 
May 31, 1997

November 25, 1996.
    Notice is hereby given that on October 10, 1996, the International 
Securities Clearing Corporation (``ISCC'') filed with the Securities 
and Exchange Commission (``Commission'') an application pursuant to 
Section 19(a)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ 
to extend ISCC's temporary registration as a clearing agency.\2\ The 
Commission is publishing this notice and order to solicit comments from 
interested persons and to extend ISCC's temporary registration as a 
clearing agency through May 31, 1997.
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    \1\ 15 U.S.C. Sec. 78s(a)(1) (1988).
    \2\ Letter from Julie Beyers, Associate Counsel, ISCC, to 
Christine Sibille, Division of Market Regulation, Commission 
(October 10, 1996).
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    On May 12, 1989, the Commission granted the application of ISCC for 
registration as a clearing agency pursuant to Sections 17A and 19(a) of 
the Act\3\ and Rule 17Ab2-1(c) \4\ thereunder on a temporary basis for 
a period of eighteen months.\5\ At that time, the Commission granted to 
ISCC a temporary exemption from compliance with Section 17A(b)(3)(C) of 
the Act \6\ which requires that the rules of a clearing agency assure 
the fair representation of its shareholders (or members) and 
participants in the selection of its directors and administration of 
its affairs.\7\ Since that time, the Commission has extended ISCC's 
temporary registration through November 30, 1996.\8\
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    \3\ 15 U.S.C. Secs. 78q-1 and 78s(a) (1988).
    \4\ 17 C.F.R. 240.17Ab2-1(c) (1996).
    \5\ Securities Exchange Act Release No. 26812 (May 12, 1989), 54 
FR 21691.
    \6\ 15 U.S.C. Sec. 78q-1(b)(3)(C) (1988).
    \7\ Currently, ISCC's Board of Directors is authorized for a 
maximum of twenty-two members. The twenty-two directors on the board 
of National Securities Clearing Corporation (``NSCC''), the sole 
shareholder of ISCC, serve as ISCC's board of directors.
    \8\ Securities Exchange Act Release Nos. 28606 (November 16, 
1990), 55 FR 47976; 30005 (November 27, 1991), 56 FR 63747; 33233 
(November 22, 1993), 58 FR 63195; and 36529 (November 29, 1995), 60 
FR 62511.
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    One of the primary reasons for ISCC's registration as a clearing 
agency was to enable it to provide for the safe and efficient clearance 
and settlement of international securities transactions by providing 
links to centralized, efficient processing systems in the United States 
and in foreign financial institutions. ISCC continues to develop its 
capacity to offer these services.\9\
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    \9\ For example, ISCC has added two service providers, Standard 
Chartered Bank and S.D. Indeval, S.A. de C.V., to its Global 
Clearance Network to provide settlement and custody services in the 
Asian-Pacific Region and Mexico, respectively. Securities Exchange 
Act Release Nos. 36902 (February 28, 1996), 61 FR 8995 and 36605 
(January 30, 1996), 61 FR 4508.
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    As a part of its temporary registration, ISCC was granted an 
exemption from the fair representation request of Section 17A(b)(3)(C) 
of the Act due to ISCC's limited participant base. In its letter dated 
October 10, 1996, ISCC noted that it had filed a proposed rule change 
which it believes will enable ISCC to comply with the fair 
representation requirements. Because ISCC's proposal is still 
undergoing Commission review, the Commission is extending ISCC's 
temporary registration from clearing agency registration and ISCC's 
exemption from the fair representation requirements of Section 
17A(b)(3)(c).
    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing application. Such written data, 
views, and arguments will be considered by the Commission in granting 
permanent registration or instituting proceedings to determine whether 
registration should be denied in accordance with Section 19(a)(1) of 
the Act.\10\ 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 application 
and all written comments will be available for

[[Page 64185]]

inspection at the Commission's Public Reference Room, 450 Fifth Street, 
N.W., Washington, D.C. 20549. All submissions should refer to File No. 
600-20 and should be submitted by January 2, 1997.
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    \10\ 15 U.S.C. Sec. 78s(a)(1) (1988).
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    It is therefore ordered, that ISCC's registration as a clearing 
agency (File No. 600-20) be and hereby is temporarily approved through 
May 31, 1997.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 C.F.R. Sec. 240.30-3(a)(50) (1996).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-30678 Filed 12-2-96; 8:45 am]
BILLING CODE 8010-01-M