[Federal Register Volume 62, Number 170 (Wednesday, September 3, 1997)]
[Notices]
[Pages 46530-46535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23261]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38971; File No. SR-DCC-97-04]
Self-Regulatory Organizations; Delta Clearing Corp.; Notice of
Filing of a Proposed Rule Change Relating to the Combining of Options
and Repo Procedures
August 26, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 17, 1997, Delta
Clearing Corp. (``Delta'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change (File No. SR-DCC-
97-04) as described in Items, I, II, and III below, which items have
been prepared primarily by Delta. Delta amended the proposed rule
change on May 7, 1997, and May 29, 1997. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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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
Delta proposes to combine its procedures (``Options Procedures'')
for the clearance and settlement of options trades and its procedures
(``Repo Procedures'') for the clearance and settlement of repurchase
and reverse (``repo'') agreement transactions into one set of
procedures (``Combined Procedures'') to be known as the Procedures for
the Clearing of Securities and Financial Instrument Transactions.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Delta 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. Delta has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such
statement.\2\
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\2\ The Commission has modified the text of the summaries
prepared by Delta.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Combined Procedures
The proposed rule change will effect various modifications to
Delta's procedures relating to the clearance and settlement of options
and repos.
a. Definitions: In addition to the defined terms discussed
elsewhere in this notice, the Combined Procedures will contain the
following defined terms which apply to transactions in both options and
repos: closing transaction, contract, delivering participant, holder,
long position, opening transaction, positions, purchasing participant,
receiving participant, selling participant, settlement date, short
position, system, trade date, transactions, underlying collateral, unit
of trading, and variable terms.
``Contract'' will refer to both option contracts and repo
contracts. ``Options contracts'' will be defined to include puts and
calls issued by Delta to a purchasing participant and matching puts and
calls purchased by Delta from a writing participant. ``Repo contracts''
will be defined to include repos and
[[Page 46531]]
reverse repos entered into by Delta with participants. ``Holder'' will
be defined to include the holder of an option or a repo contract.
The Options Procedures use the term ``underlying treasury
securities'' to refer to the treasury securities underlying an option
contract. The Repo Procedures use the term ``underlying collateral'' to
refer to the treasury securities underlying a repo contract. The
Combined Procedures will use the term ``underlying collateral'' for
both options and repo transactions. ``Unit of trading'' will refer to
underlying collateral in the principal amount of $1,000,000 for a
single option contract or for a single repo contract.
``System'' will be defined in the Combined Procedures as the over-
the-counter clearing system to facilitate clearance and settlement by
participants of transactions in options on treasury securities and
repos in treasury securities. ``Transactions'' will refer to all
transactions settled and cleared through the system, which includes all
options transactions and repo transactions cleared through the system.
Consistent with this definition, the term ``opening transaction'' will
include opening purchase and writing transactions in options and
opening repo and reverse repo transactions, and the term ``closing
transaction'' will include closing purchase and sale transactions in
options and closing repo and reverse repo transactions. Similarly,
``delivering participant'' will include the participant to whom an
exercise notice has been assigned on a matching call, the exercising
participant on a put, the seller of the repo collateral on the on-date,
or the party responsible for returning the repo collateral on the off-
date. ``Receiving participant'' will include the exercising participant
on a call, the participant to whom an exercise notice has been assigned
on a matching put, the holder of the reverse repo on the on-date, and
the holder of the repo on the off-date. ``Purchasing participant'' will
include the purchaser of an option contract or the purchaser of the
collateral on the on-date of a repo transaction. ``Selling
participant'' will include the seller of an option contract or the
seller of the collateral on the on-date of a repo transaction.
The Combined Procedures will use the term ``positions'' to refer to
all options and repo positions of a participant. Consistent with this
definition, the term ``long position'' will include the interest of a
participant as the holder of one or more option contracts or reverse
repos, and the term ``short position'' will include the aggregate
obligations of a participant as a writer of one or more option
contracts and the interest of the holder of one or more repos.
The Combined Procedures will use the term ``trade date'' to refer
to the date on which an option contract was written, sold, or purchased
or the date that a new repo contract was established. The Combined
Procedures will use the term ``settlement date'' to refer to the first
business day immediately following the day on which Delta receives
matching trade reports with respect to options transactions and the
business day upon which two participants agree to transfer underlying
collateral versus payment with respect to repo transactions.
With respect to an option contract, ``variable terms'' will refer
to the exercise price, expiration date, premium, and either the
maturity date and coupon rate (if the underlying collateral are
treasury bonds or notes) or the maturity week (if the underlying
collateral are treasury bills). With respect to repo contracts,
``variable terms'' will refer to the repo rate, net money, rights of
substitution, settlement date, maturity date, and coupon rate (if the
underlying collateral are treasury notes or bonds).
b. Exposure Limit and MPSE: Delta currently sets exposure limits
for each participant in the system on an aggregate basis for options
and repo transactions that limit the amount of exposure such
participant can have to Delta. In addition, the maximum potential
system exposure (``MPSE'') of the system is measured on an aggregate
basis for options and repo transactions. The Combined Procedures will
clarify that calculations of exposure limit and MPSE are to be
determined on an aggregate system-wide basis by providing for a single
uniform definition of these terms and by providing in Section 204 of
the Combined Procedures that each participant agrees to conduct all
transactions cleared through the system within such participant's
exposure limit. In the case of option contracts, a participant may have
exposure on its short positions but does not have exposure on its long
positions. In the case of repo contracts, a participant may have
exposure on both its long positions and its short positions. This
distinction will be reflected in the definitions of exposure limit and
MPSE.
C. Participant Default: The proposal will add to the Combined
Procedures the term ``participant default'' which will mean a payment
default, delivery default, premium default, and margin default. The
terms ``payment default'' and ``delivery default'' will be revised to
include a payment or delivery default with respect to options or repo
transactions. The effect of these changes and other conforming changes
in the Combined Procedures will be to clarify that a default by a
participant with respect to an options or a repo transaction may result
in remedies, including suspension and liquidation, which are applicable
to all transactions in a participant's account.
Under Delta's current procedures, a default by a participant with
respect to an option contract would not constitute a default with
respect to the repo contracts to which the participant is a party, and
a default by a participant with respect to a repo contract would not
constitute a default with respect to the option contracts to which the
participant is a party. Under Section 212 of the Combined Procedures, a
default by a participant in the performance of any obligations with
respect to an option contract or a repo contract will constitute a
default by the participant with respect to all transactions of the
participant in the system, and Delta will be entitled, in such event,
to set off any obligations of Delta in respect of any of the
participant's transactions in the system against the participant's
obligations to Delta.\3\
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\3\ The changes to Section 212 proposed by the Combined
Procedures are intended to broaden Delta's right of setoff in the
event of a participant default. However, the Combined Procedures are
not intended to affect Delta's operational netting.
In general, Delta clears option transactions on a delivery
versus payment basis (Sections 2901 (b) and (c)). However, pursuant
to Section 2805, to the extent that a participant is both a
delivering and receiving participant for option contracts of the
same type (i.e., put or call), covering the same issue and unit of
trading of Treasury securities and having the same exercise price
and settlement date, the settlement (i.e., payment and delivery)
obligations of the participant with respect to such option contracts
will be netted.
Similarly, Delta clears repo contracts on a delivery versus
payment basis (Section 3103 (b) and (c) with respect to on-date
settlement and Section 3604 (b) and (c) with respect to off-date
settlement). However, pursuant to Sections 3401 and 3402, if a
participant has a repo and reverse repo with the same underlying
collateral and the same on-date or off-date, as applicable, the
participant's payment and delivery obligations with respect to such
agreements will be netted. This means that if a participant is
required to deliver $3 million par amount of a specified security on
the off-date of a reverse repo and to receive on that same date $2
million par amount of the same security on the off-date of a repo,
these obligations will be netted and a net delivery of $1 million
par amount (the ``net par amount'') will be made by the participant.
Payment obligations for such transactions will also be netted. The
definition of net par amount will be amended to provide greater
clarity consistent with the foregoing description.
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Consistent with the foregoing, Section 307 of the Combined
Procedures, which will replace Section 307 of the Options Procedures
and Section 2307 of the Repo Procedures, will provide that Delta will
have a security interest in all
[[Page 46532]]
money and securities of a participant as security for payment of any
liability of such participant to Delta arising from participation in
the system. For example, Delta will have a security interest in margin
deposited for repo transactions which will be security for payment of a
liability resulting from a default by a participant on an option or a
repo contract.
Upon the occurrence of a participant default, Delta may liquidate a
participant's account through a liquidating settlement account
established for such participant. The term ``liquidating settlement
account'' will be defined in the Combined Procedures as the account
established for the orderly liquidation of a suspended participant's
positions. Because ``positions'' will be defined to include positions
in both options and repo contracts, the Combined Procedures will
clarify that Delta will effect any liquidation of a participant through
one settlement account rather than through separate accounts for
liquidation of options and repo positions.
d. Multiple Brokers: On June 30, 1997, the Commission approved
proposed changes to Delta's Options Procedures to provide for the
introduction of multiple brokers to the clearance system for options
transactions.\4\ Under the Combined Procedures, the provisions of
Article XX of the Options Procedures (``Authorize Brokers'') will be
incorporated into the Combined Procedures as Article 12 and thus made
applicable to both options and repo transactions.\5\ In addition, other
changes made by such filing will be incorporated into Article 23 of the
Combined Procedures with respect to trade reporting for options
transactions, and such changes will be incorporated for trade reporting
of repo transactions by comparable amendments to Article 30 of the
Combined Procedures. Other changes made by the filing, such as the
definitions of ``authorized broker'' and ``authorized broker trade
report,'' will be incorporated in the Combined Procedures and thus will
be made applicable to options and repo transactions.
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\4\ Securities Exchange Act Release No. 38796 (June 30, 1997),
62 FR 37326 [File No. SR-DCC-97-02] (order approving proposed rule
change).
\5\ Such provisions establish qualification requirements for
brokers, including compliance with Rule 17a-23 under the Act,
maintenance of books and records, and necessary operational
capacity.
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e. Margin: The Combined Procedures will combine in Article 22 of
the procedures the margin provisions currently set forth in Article VI
of the Options Procedures and Article XXVI of the Repo Procedures.
Prior to 8:00 a.m. of each business day, participants receive a ``daily
margin report'' showing the net positive or negative exposure on their
aggregate positions as of the end of the prior business day. This net
positive or negative exposure takes into account a participant's
options positions and term repo positions; margin for a participant's
positions in overnight repos is calculated separately.\6\ The
amendments are not intended to change existing participant margin
requirements. By combining Articles VI and XXVI, the Combined
Procedures will clarify that a participant is required to deposit
margin based upon its aggregate net exposure on its options positions
and its positions in term repos.
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\6\ Securities Exchange Act Release No. 38471 (April 2, 1997),
62 FR 17257 [File No. SR-DCC-96-12] (order approving proposed rule
change).
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``Settlement time'' is defined in the Options Procedures as 11:00
a.m. New York time or the earliest time practicable following the
opening of the Federal Reserve wire on the settlement day. Section 602
of the Options Procedures requires the deposit of margin other than
intraday additional margin at or before the settlement time on each
business day. Section 2602.1 of the Repo Procedures provides for the
deposit of margin other than supplemental or intraday additional margin
at or before 11:00 a.m. The Combined Procedures will conform the
Options and Repo Procedures by providing in Section 2204, which is
applicable to options and repo positions, that margin deficits shown on
the daily margin report must be deposited at or before the later of
11:00 a.m. or the earliest time practicable following the opening of
the Federal Reserve System.
Section 2202 of the Combined Procedures (the equivalent to Section
601.1 of the Options Procedures and 2601.1 of the Repo Procedures) will
incorporate for options transactions the recently approved rule change
\7\ under the Repo Procedures permitting participants to deposit
treasury notes and treasury bonds as margin and incorporating the
schedule of applicable haircuts found in Rule 15c3-1(c)(2)(vi)(A)(1)
under the Act. Consistent with this change, the defined term ``cash
margin'' will be changed to ``margin'' in certain sections of the
Combined Procedures.
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\7\ Securities Exchange Act Release No. 37639 (September 4,
1996), 61 FR 48186 [File No. SR-DCC-96-09] (order granting approval
of proposed rule change relating to acceptable forms of collateral).
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Section 602 of the Options Procedures currently provides that
deposits of additional margin in respect of margin deficits shown on
the daily margin report are not required if the amount to be deposited
by the participant is $5,000 or less. The Repo Procedures in Section
2602.1 currently provide that deposits are not required if such amount
is $50,000 or less. Consistent with the current Repo Procedures,
section 2204 of the Combined Procedures will provide that deposits are
not required if the margin deficit shown on the daily margin report is
$50,000 or less. However, as discussed above, the daily margin report
will aggregate options positions and positions in term repo agreements.
f. Business Day: The Combined Procedures will conform the
definition of business day for options and repo transactions. As
currently written, the Repo Procedures define business day to exclude
``a Saturday, Sunday, or a day on which banking institutions in the
City of New York are authorized by law to close,'' while the Options
Procedures also exclude ``any day on which government securities
dealers in the City of New York are not open for business.'' The
Combined Procedures will conform the definition of this term in the
Repo Procedures to the definition in the Options Procedures.
g. Sanctions for Late Trade Reports: Section 3301 of the Repo
Procedures provides that the sanction for filing a late trade report in
an amount not to exceed $500. In contrast, the Options Procedures in
Section 1301 provide for sanctions of $100 for the first violation,
$200 for any second violation occurring within three months of the
first violation, and $300 for any subsequent violation occurring within
three months of a prior violation. The Combined Procedures will retain
the graduated fee schedule of Section 1301 and will apply that schedule
to late trade reports involving repos.
h. Central Bank Wire System; Federal Reserve System: The Repo
Procedures in various places use the terms ``central bank funds'' and
``central bank wire system'' in place of the terms ``Federal Reserve
System'' and ``Fed Funds'' which are used in the Options Procedures.
The use of these terms was intended to cover the situation where Delta
had received authorization to clear trades to be effected by
participants through central banks other than the Federal Reserve.
Because Delta has not yet applied for nor received any such
authorization, Delta proposes in the Combined Procedures to replace the
[[Page 46533]]
terms ``central bank funds'' and ``central bank wire system'' with the
terms ``Fed Funds'' and ``Federal Reserve System.'' For purposes of
consistency, the Combined Procedures will amend Delta's existing
procedures by using the term ``Federal Reserve System'' in various
sections in place of the term ``Federal Wire System'' and the term
``Fed Funds'' in various sections in place of the term ``Federal
Reserve Funds.''
i. Suspension or Termination of Operations: The Repo Procedures
provide that the suspension or termination of the operation of the
system will not affect the terms of any existing repo agreement. The
Options Procedures provide that the suspension or termination of the
system will not affect the terms of any existing option contract absent
the consent of the participant which is party to such contract. The
Combined Procedures will adopt the language set forth in the Options
Procedures which will be made applicable to option and repo contracts.
Delta does not believe that this constitutes a material change because
the parties could agree to modify a contract under either provision.
2. Timing of Margin Collection and Monetization of Net Positive
Exposure
The Options Procedures currently provide that a participant may
borrow from Delta on an overnight basis up to 35% of the participant's
net positive exposure on its options positions, adjusted for
``performance margin.'' \8\ Under the Combined Procedures, a
participant will be able to borrow from Delta on an overnight basis up
to 35% of the participant's net positive exposure on its options
positions and positions in term repos.
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\8\ Performance margin represents an estimate of the net
shortfall from the liquidation of a participant's positions at the
close of the next business day.
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Each morning at approximately 8:00 a.m. of each business day, Delta
sends to each participant a daily margin report which includes a
statement of the participant's net positive or negative exposure as of
the close of the prior business day.\9\ Delta requires that any
participant with a negative exposure deposit with Delta any required
margin by 11:00 a.m. of the morning on which the report is sent. Under
proposed Section 2212, if the daily margin report shows that the
participant has a net positive exposure after adjustment for
performance margin, the participant may request on or before 11:00 a.m.
of the morning on which the report is sent that Delta lend to it on an
overnight basis cash or treasury securities to the extent available to
Delta with a value of not more than 35% of the participant's net
positive exposure after adjustment for performance margin. In order to
make such overnight loans, Delta will generally transmit securities by
3:00 p.m. that day or will transmit funds by 5:00 p.m. that day.
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\9\ This discussion excludes overnight repos which are not
included within proposed Section 2212.
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Participants may wish to borrow against their net positive exposure
in order to reduce their exposure to Delta, to obtain working capital,
or for other purposes. Delta does not believe that permitting such
borrowing exposes the clearing system to any material additional risk
because participants borrowing against their net positive exposure
remain over-collateralized with Delta to the extent of 65% of their net
positive exposure with Delta after adjusting for performance margin.
3. Waiver of Suspension
Delta proposes that the waiver of suspension provisions of Section
401 be revised to provide that suspension may be deferred not more than
two hours in the event of a margin, premium, or payment default and for
such period as Delta determines appropriate in the event of a delivery
default if Delta determines that the participant required to make
delivery has been unable to obtain the security required to be
delivered after good faith effort and that such failure to delivery is
not the result of a change in the participant's financial condition.
The proposed change will not allow deferral of suspension beyond the
two hour period in the case of a margin, premium, or payment default,
which all involve the failure to make payment. In the case of a
delivery default, however, Delta believes that there may be situations
where the failure to deliver is unrelated to the participant's
financial condition but instead results from the scarcity of the
security required to be delivered.
4. Annual List of Participants
Section 213 of the Combined Procedures will provide that Delta will
on an annual basis send a list of current participants in the system to
all participants. Section 213 will make this requirement, currently
applicable for repo participants, applicable for both options and repo
participants. This is in addition to the existing requirement that
participants be notified upon the admission or withdrawal of a
participant.
5. Audited Report of Internal Accounting Controls
Delta's existing procedures provide that each participant is
required to deliver to Delta within forty-five days after the end of
its fiscal year an audited report of its financial condition and its
internal accounting controls prepared in accordance with generally
accepted accounting principles. Certain participants have indicated
that an audited report of ``internal accounting controls'' is not a
standard requirement. Delta proposes in Section 206 of the Combined
Procedures to eliminate the requirement that participants deliver
audited reports of their internal accounting controls. Participants
will continue to be obligated to deliver to Delta annual audited
financial statements.
6. Allocation of Duties Between Delta and the Clearing Bank
Delta has determined to undertake various duties related to
operation of the clearing system instead of delegating those duties to
the clearing bank. The Combined Procedures will identify where the
change in responsibilities affects participants. Under the proposed
procedures, Delta, rather than the clearing bank, will assume the
authority and obligation to receive, compare, and transmit trade
reports and other reports (Articles 23 and 30); to accept trades for
clearance (Sections 2303 and 3003); to provide system software (Section
303); to calculate and maintain margin (Article 22); to transmit,
receive, and assign exercise notices and to accept exercise notices for
clearance (Article 28); and to reconcile differences with participants
(Sections 2303 and 3003).
7. Miscellaneous Changes
Section 2403 of the current Repo Procedures provides that Delta
will accept a transaction only if it is designated as delivery versus
payment. The Combined Procedures will clarify in Section 3003 that
delivery versus payment is not required in the event that positions in
repo contracts are netted pursuant to Section 3401 or 3402 of the
Combined Procedures (currently Sections 2901 and 2902 of the Repo
Procedures).
Section 304 of the Combined Procedures will provide that inspection
by Delta of participants' records will be at such time as may be
reasonably requested by Delta and that the scope of such inspections
will be limited to matters related to the procedures, the participant's
transactions in the system, and other matters related to Delta's
business. Sections 209(b) and 2209(b) of
[[Page 46534]]
Delta's existing Options and Repo Procedures provide that as a
condition to participating in the system, a participant must agree to
permit inspection of its books and records. The Combined Procedures
will provide that a participant agrees to permit inspection subject to
Section 304. This means that a participant only will be required to
permit inspections which relate to the Combined Procedures, the
participant's transactions in the system, and other matters related to
Delta's business.
The Repo Procedures currently use the terms ``repo'' and
``repurchase agreement'' interchangeably. The Combined Procedures will
provide for more uniform use of these terms. The term ``repurchase
agreement'' will be used in the following defined terms: repurchase
agreement, reverse repurchase agreement, matching repurchase agreement,
matching reverse repurchase agreement, term repurchase and reverse
repurchase agreements, and overnight repurchase and reverse repurchase
agreements. The term ``repo'' will be used in the following defined
terms: repo transaction, opening repo transaction, closing repo
transaction, repo contract, repo position, repo interest, and repo
rate.
In the definition of ``closing price,'' the reference to the New
York Fed publishing quotations will be revised to include any other
similar reputable pricing source. This is in anticipation of Delta's
understanding that the New York Fed will cease publishing such
quotations. Delta intends to use a pricing source such as Muller Data,
Telerate, Reuters, or Bloomberg which is widely known and accepted by
brokers and dealers in treasury securities. Delta will notify the
Division of Market Regulation prior to designating a new pricing
source.
The definitions of ``letter of credit'' and ``surety bond'' will be
revised to conform to one another. Redundant language in Section 2303
of the existing Repo Procedures (Section 303 of the Combined
Procedures) will be deleted. The definitions of ``daily margin report''
and ``daily position activity report'' will be amended to more
accurately reflect the titles and contents of such reports.
Delta's current Options and Repo Procedures contain various
references to custodian bank and margin accounts for investment
companies, but the use of such terms is not consistent. However, at
present, there are no registered investment companies which have
applied to become participants in the clearing system. Delta is not
seeking authority currently to admit registered investment companies as
participants in the system. The Combined Procedures will revise the
existing Options and Repo Procedures by deleting all references to
registered investment company, margin account, and custodian bank.
The Combined Procedures will add a definition of ``correspondent
bank'' which is a term used but not defined by the Options and Repo
Procedures. ``Correspondent bank'' will refer to a bank designated by a
participant pursuant to Section 302 of the Combined Procedures for
receipt and delivery of money and securities. The Combined Procedures
will make other definitional, conforming, cross-referencing, spelling,
and grammatical changes which do not constitute material amendments to
Delta's procedures, including changing article headings from roman
numerals to arabic numbers.
8. Benefit to Participants
The Combined Procedures will benefit participants because a
participant's exposure for option and term repo transactions and the
margin required to be deposited and maintained by the participant will
be based upon a single calculation.\10\ For example, if a participant
has a negative exposure of $3 million as a result of option
transactions entered into by the participant in the clearing system and
a positive exposure of $1 million as a result of term repo transactions
entered into by the participant in the clearing system, the
participant's margin requirements will be determined based upon a net
short position of $2 million rather than $3 million.
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\10\ The discussion in this paragraph relates to option and term
repo transactions. Exposures with respect to overnight repos are
subject to a separate margin requirement.
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Delta believes the proposed rule changes are consistent with the
requirements of Act and the rules and regulations thereunder applicable
to Delta and in particular with Section 17A(b)(3)(F) of the Act which
requires that a clearing agency be organized and its rules be designed
to promote the prompt and accurate clearance and settlement or
securities transactions, to safeguard funds and securities in Delta's
possession and control, and to remove impediments to and perfect the
mechanism of a national system for the prompt and accurate clearance
and settlement of securities transactions. Delta believes that the
combining of the Options and Repo Procedures will permit wider
utilization of the clearing system by participants.
(B) Self-Regulatory Organization's Statement on Burden on Competition
Delta does not believe that the proposed rule change will impose
any burden on competition not necessary or appropriate in furtherance
of the purposes of the Act.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
Comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) as the
Commission may designate up to ninety days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which Delta consents, the Commission will:
(A) By order approve such proposed rule change or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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 will also be available for inspection
and copying at the principal office of Delta. All submissions should
refer to the file number SR-DCC-97-04 and should be submitted by
September 24, 1997.
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)(12).
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[[Page 46535]]
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-23261 Filed 9-2-97; 8:45 am]
BILLING CODE 8010-01-M