[Federal Register Volume 62, Number 109 (Friday, June 6, 1997)]
[Notices]
[Pages 31183-31184]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14763]


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SECURITIES AND EXCHANGE COMMISSION

[Release 34-38703; International Series Release No. 1087; File No. 600-
20]


Self-Regulatory Organizations; International Securities Clearing 
Corporation; Notice of Filing of and Order Approving a Request for 
Extension of Temporary Registration as a Clearing Agency

May 30, 1997.
    Notice is hereby given that on May 5, 1997, the International 
Securities Clearing Corporation (``ISCC'') filed with the Securities 
and Exchange Commission (``Commission'') an application pursuant to 
Section 19(a) 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 February 28, 1998.
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    \1\ 15 U.S.C. 78s(a).
    \2\ Letter from Julie Beyers, Associate Counsel, ISCC (May 5, 
1997) (``Registration Letter'').
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    On May 12, 1989, the Commission granted, pursuant to Sections 17A 
and 19(a) of the Act \3\ and rule 17Ab2-1(c) thereunder, the 
application of ISCC for registration as a clearing agency on a 
temporary basis for a period of eighteen months.\4\ As a part of ISCC's 
temporary registration, the Commission granted to ISCC a temporary 
exemption from compliance with Section 17A(b)(3)(C) of the Act,\5\ 
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. Since 
that time, the Commission has extended ISCC's temporary registration 
through May 31, 1997.\6\
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    \3\ 15 U.S.C. 78q-1 and 78s(a).
    \4\ Securities Exchange Act Release No. 26812 (May 12, 1989), 54 
FR 21691.
    \5\ 15 U.S.C. 78q-1(b)(3)(C).
    \6\ 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; 36529 (November 29, 1995), 60 FR 
62511; and 37986 (November 25, 1996), 61 FR 64184.
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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 to foreign financial institutions. ISCC serves this function 
through its Global Clearance Network service and through its settlement 
links with foreign clearing entities such as Euroclear.\7\
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    \7\ Securities Exchange Act Release Nos. 29841 (October 18, 
1991), 56 FR 55960 (order approving ISCC's Global Clearance Network 
service) and 32564 (June 30, 1993), 58 FR 36722 (order approving 
linkage with Euroclear).
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    As a part of its temporary registration, ISCC was granted a 
temporary exemption from the fair representation requirements of 
Section 17A(b)(3)(C) due to ISCC's limited participant base.\8\ In its 
May 5, 1997, letter, ISCC notes that it has filed a proposed rule 
change which it believes will enable ISCC to comply with the fair 
representation requirements. Because ISCC's rule filing is still 
undergoing Commission review, the Commission is extending ISCC's 
temporary registration from clearing agency registration and ISCC's 
temporary exemption from the fair representation requirements of 
Section 17A(b)(3)(C). If the Commission determines that ISCC provides 
fair representation for its participants as required by Section 
17A(b)(3)(C) prior to the next renewal of its temporary

[[Page 31184]]

registration, the Commission will consider ISCC's request to obtain 
permanent registration under the Act.
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    \8\ Currently, ISCC's board of directors is authorized for a 
maximum of twenty-two members. The twenty-two directors on the board 
of the National Securities Clearing Corporation, the sole 
shareholder of ISCC, serve as ISCC's board of directors. At the time 
of ISCC's initial temporary registration, ISCC stated that it would 
provide fair representation to its participants by the earlier of: 
(1) the time ISCC has twenty-five active participants or (2) 1992.
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    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 
registration or instituting proceedings to determine whether 
registration should be denied in accordance with Section 19(a)(1) of 
the Act.\9\ Persons making written submissions should file six copies 
thereof with the Secretary, Securities and Exchange Commission, 450 
Fifth Street, NW., Washington, DC 20549. Copies of the application and 
all written comments will be available for inspection and copying at 
the Commission's Public Reference Room, 450 Fifth Street, NW., 
Washington, DC 20549. All submissions should refer to the File No. 600-
20 and should be submitted by July 7, 1997.
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    \9\ 15 U.S.C. 78s(a)(1).
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    It is therefore ordered, pursuant to Section 19(a) of the Act, that 
ISCC's registration as a clearing agency (File No. 600-20) be and 
hereby is temporarily approved through February 28, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(16).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-14763 Filed 6-5-97; 8:45 am]
BILLING CODE 8010-01-M