[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