[Federal Register Volume 62, Number 146 (Wednesday, July 30, 1997)]
[Notices]
[Pages 40871-40872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20054]


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SECURITIES AND EXCHANGE COMMISSION

[Release 34-38869; File No. 600-24]


Self-Regulatory Organizations; Delta Clearing Corp.; Notice of 
Filing and Order Approving a Request for Extension of Temporary 
Registration as a Clearing Agency

July 24, 1997.
    Notice is hereby given that on June 25, 1997, Delta Clearing Corp. 
(``DCC'') 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 DCC'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 DCC's temporary registration as a clearing agency through July 
31, 1998.
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    \1\ 15 U.S.C. 78s(a).
    \2\ Letter from Stephen K. Lynner, Delta Clearing Corp. (June 
12, 1997).
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    On January 12, 1990, pursuant to Sections 17A and 19(a) of the Act 
\3\ and Rule 17Ab2-1(c) thereunder,\4\ the Commission granted DCC's 
application for registration as a clearing agency on a temporary basis 
for a period of thirty-six months.\5\ Since that time, the Commission 
has extended DCC's temporary registration through July 31, 1997.\6\ DCC 
now requests that the Commission grant an extension of its original 
order granting DCC temporary registration as a clearing agency, subject 
to the same terms and conditions, for a period of twelve months or for 
such longer period as the Commission deems appropriate.
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    \3\ 15 U.S.C. 78q-1 and 78s(a).
    \4\ 17 CFR 240.17Ab2-1(c).
    \5\ Securities Exchange Act Release No. 27611 (January 12, 
1990), 55 FR 1890. Prior to a 1996 name change, DCC was named Delta 
Government Options Corp.
    \6\ Securities Exchange Act Release Nos. 31856 (February 11, 
1993), 58 FR 9005 (extension until January 12, 1995); 35198 (January 
6, 1995), 60 FR 3286 (extension until January 31, 1997); and 38224 
(January 31, 1997), 62 FR 5869 (extension until July 31, 1997).
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    One of the primary reasons for DCC's registration as a clearing 
agency was to enable it to provide for the safe and efficient clearance 
and settlement of transactions involving the over-the-counter trading 
of options of U.S. Treasury securities. Since that time, the Commission 
has approved DCC's request to begin clearance and settlement of 
repurchase agreement transactions involving U.S. Treasury securities as 
the underlying instrument.\7\ Currently, repurchase agreement 
transactions constitute the majority of the transactions cleared by 
DCC.
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    \7\ Securities Exchange Act Release No. 36367 (October 13, 
1995), 60 FR 54095.
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    As a part of its temporary registration, DCC was granted a 
temporary exemption from the requirements of Section 17A(b)(3)(C),\8\ 
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. While 
Commission staff and DCC staff have conducted discussions on DCC's 
proposed method of complying with Section 17A(b)(3)(C), the Commission 
believes that the issue of DCC's compliance with the fair 
representation requirements should be completely resolved before DCC

[[Page 40872]]

receives permanent registration as a clearing agency under Section 
17A(b) of the Act.\9\
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    \8\ 15 U.S.C. 78q-1(b)(3)(C).
    \9\ 15 U.S.C. 78q-1(b).
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    In light of DCC's past performance, the Commission believes that 
DCC complies with the statutory prerequisites for registration as a 
clearing agency contained in Section 17A(b)(3) of the Act except for 
the fair representation requirement discussed above.\10\ Therefore, the 
Commission believes that DCC should continue to be registered on a 
temporary basis. Comments received during DCC's temporary registration 
will be considered in determining whether DCC should receive permanent 
registration as a clearing agency.
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    \10\ 15. U.S.C. 78q-1(b)(3).
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    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing application. 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 inspection and copying at the Commission's Public 
Reference Room, 450 Fifth Street, N.W., Washington, D.C. 20549. All 
submissions should refer to the File No. 600-24 and should be submitted 
by August 29, 1997.
    It is therefore ordered, pursuant to Section 19(a) of the Act, that 
DCC's registration as a clearing agency (File No. 600-24) be and hereby 
is temporarily approved through July 31, 1998.

    For the Commission by the Division of Market Regulation pursuant 
to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(16).
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Jonathan G. Katz,
Secretary.
[FR Doc. 97-20054 Filed 7-29-97; 8:45 am]
BILLING CODE 8010-01-M