[Federal Register Volume 62, Number 54 (Thursday, March 20, 1997)]
[Notices]
[Pages 13425-13426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7047]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38405; File No. SR-SCCP-97-01]
Self-Regulatory Organizations; Stock Clearing Corporation of
Philadelphia; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Over-the-Counter Trade Corrections
March 14, 1997.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on February 26, 1997, the
Stock Clearing Corporation of Philadelphia (``SCCP'') 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 SCCP. The Commission is publishing this
notice to solicit comments from interested persons on the proposed rule
change.
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\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 provides SCCP participants an additional
method of forwarding over-the-counter (``OTC'') trade corrections to
SCCP.
II. Self-Regulatory Organization's Statement of the Purpose of and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, SCCP 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. SCCP 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
prepared by SCCP.
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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 provide to SCCP's
participants that have access to Philadep's Philanet system an
additional method of forwarding OTC corrections to SCCP. OTC trade
submissions for trades that are not looked in are submitted separately
by the buyer and seller. The submissions are matched by National Stock
Clearing Corporation (``NSCC'') as the central processor for OTC
transactions. The primary matching criteria used by NSCC are buyer,
seller, number of shares, cusip number, settlement date, and the dollar
amount of the trade. When the buy and sell submissions match based on
the matching criteria the trade is considered ``compared.'' When the
buy and sell submissions do not match or either the buyer or seller
does not submit any data, an ``uncompared'' trade results. Both buyer
and seller are notified of the uncompared trade and are then able to
use a series of trade correcting entries to make necessary changes to
the original buy and sell entries or to enter a buy or sell transaction
that was inadvertently not entered.
Currently, OTC corrections are forwarded to SCCP by one of two
methods. First, the submitting participant may forward its OTC
corrections via facsmilie. The corrections are then entered into the
system by data entry personnel at SCCP. The corrections are then
appended to
[[Page 13426]]
the participants OTC trade file and transmitted to NSCC. Second, the
submitting participant may forward OTC corrections to SCCP via
electronic transmission. The corrections are then appended to the
participants OTC trade file and transmitted electronically to NSCC.
SCCP now proposes to afford its participants the ability to forward OTC
corrections to SCCP through the participant's Philanet terminal.
Philanet access provides participants with the ability to enter and
modify OTC corrections through an on-line application.
SCCP believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \3\ and the rules and
regulations thereunder because it promotes the prompt and accurate
clearance and settlement of securities transactions.
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\3\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition
This modification will not impose a burden on competition not
contemplated under the Act.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received with respect
to the proposed rule change.
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) \4\ of the Act and pursuant to Rule 19b-4(e)(4) \5\
promulgated thereunder because the proposal effects a change in an
existing service that (1) 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 (2) 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 such
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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\4\ 15 U.S.C. 78s(b)(3)(A)(iii).
\5\ 17 CFR 240.19b-4(e)(4).
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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 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 also will be available for inspection
and copying at the principal office of SCCP. All submissions should
refer to File No. SR-SCCP-97-01 and should be submitted by April 10,
1997.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 97-7047 Filed 3-19-97; 8:45 am]
BILLING CODE 8010-01-M