[Federal Register Volume 62, Number 38 (Wednesday, February 26, 1997)]
[Notices]
[Pages 8810-8811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4751]


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SECURITIES AND EXCHANGE COMMISSION
[(Release No. 34-38313); File No. SR-PTC-96-06]

Self-Regulatory Organizations; Participants Trust Company; Notice 
of Filing and Order Granting Accelerated Approval of Proposed Rule 
Change to Authorize the Release of Clearing Data
February 19, 1997.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''), notice is hereby given that on November 22, 1996, the 
Participants Trust Company (``PTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change as 
described in Items I and II below, which items have been prepared 
primarily by PTC. The Commission is publishing this notice and order to 
solicit comments from interested persons and to grant accelerated 
approval of the proposed rule change.
    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change
    The proposed rule change modifies Article VI of PTC's rules to add 
a new Rule 14 which authorizes PTC to release transaction and other 
data relating to participants obtained by PTC in the normal 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, PTC 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. PTC 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 the text of the summaries 
prepared by PTC.
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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 modify Article VI of 
PTC's rules to add a new Rule 14 which authorizes PTC to release 
transaction and other data relating to participants obtained by PTC in 
the normal course of its business. The rule will permit PTC to disclose 
such data to (1) regulatory, self-regulatory, other similar 
organizations, (2) clearing organizations which are under the oversight 
of the

[[Page 8811]]

Commodity Futures Trading Commission, and (3) to other entities as may 
be authorized by a participant. The proposed rule change will allow PTC 
to participate in the National Securities Clearing Corporation's 
(``NSCC'') Collateral Management Service (``CMS'') \3\ and to provide 
information to the CMS database regarding PTC's participants' net debit 
and credit balances, participants' fund deposits, including excess 
(deficit) amounts, and comprehensive data on underlying collateral.
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    \3\ Securities Exchange Act Release No. 35809 (June 5, 1995), 60 
FR 30912 [File No. SR-NSCC-95-06] (order approving proposed rule 
change establishing the CMS).
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    PTC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder because it sets forth PTC's responsibilities and obligations 
with regard to releasing participant's clearing data and facilitates 
PTC's participation in the CMS database by permitting PTC to provide 
participant information to the CMS database.

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

    PTC does not believe that the proposed rule change will 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

    No written comments have been solicited or received. PTC will 
notify the Commission of any written comments received by PTC.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Section 17A(b)(3)(F) of the Act requires that the rules of a 
clearing agency be designed to assure the safeguarding of securities 
and funds which are in the custody or control of the clearing agency or 
for which it is responsible.\4\ The Commission believes the proposed 
rule change is consistent with PTC's obligation under Section 
17A(b)(3)(F) because the proposal sets forth PTC's responsibilities and 
obligations with regard to releasing participants' clearing data and 
should facilitate PTC's participation in NSCC's CMS by allowing PTC to 
provide participant information to NSCC for use in its CMS. PTC's and 
its participants' participation in NSCC's CMS should help PTC and other 
clearing agencies to better monitor their clearing members' clearing 
fund, margin, and other similar required deposits that protect the 
clearing agencies against loss should a member default on its 
obligations.
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    \4\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission finds good cause for approving the proposed rule 
change prior to the thirtieth day after the date of publication of 
notice of the filing because accelerated approval will allow PTC to 
immediately participate in NSCC's CMS thus allowing both PTC and other 
clearing agency participants in the CMS to benefit from the data 
contained in CMS regarding common participants.

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 Section, 450 Fifth Street, N.W., 
Washington, D.C. 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of PTC. All 
submissions should refer to File No. SR-PTC-96-06 and should be 
submitted by March 19, 1997.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (File No. SR-PTC-96-06) be, and hereby 
is, approved.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-4751 Filed 2-25-97; 8:45 am]
BILLING CODE 8010-01-M