[Federal Register Volume 63, Number 75 (Monday, April 20, 1998)]
[Notices]
[Pages 19544-19545]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10342]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39850; File No. SR-DCC-98-02]


Self-Regulatory Organizations; Delta Clearing Corp.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
the Authorization of Tullet & Tokyo Securities, Inc. To Participate as 
a Broker for Over-the-Counter U.S. Treasury Options Trades

April 10, 1998.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''), notice is hereby given that on March 6, 1998, Delta 
Clearing Corp. (``DCC'') 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 
DCC. 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 notifies the Commission that Tullet & 
Tokyo Securities, Inc. (``Tullet'') has been authorized by DDC to 
participate as a broker in the over-the-counter system (``system'') 
operated for options on U.S. treasury securities.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, DCC 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. DCC has prepared summaries, set forth in sections (A), 
(B),

[[Page 19545]]

and (C) below, of the most significant aspect of such statements.\2\
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    \2\ The Commission has modified the text of the summaries 
prepared by DCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Pursuant to the Procedures for Clearing of Securities and Financial 
Instrument Transactions (``Combined Procedures''),\3\ multiple brokers 
may participate in the system operated by DCC and new brokers may be 
authorized by DCC to participate in the system. DCC has authorized 
Tullet, which is currently an authorized broker in the system for 
repurchase agreement (``repo'') and reverse repo trades, to participate 
as a broker in the system operated for options on U.S. treasury 
securities.
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    \3\ Securities Exchange Act Release No. 39236 (October 14, 1997) 
62 FR 54661 [File No. SR-DCC-97-04] (order approving the Combined 
Procedures).
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    DCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \4\ and the rules and 
regulations thereunder because it facilitates the prompt and accurate 
clearance and settlement of securities transactions.
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    \4\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    DCC does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purpose 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(iii) \5\ of the Act and pursuant to Rule 19b-4(e)(4) \6\ 
promulgated thereunder because the proposal effects a change in an 
existing service of a registered clearing agency that 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 
does not significantly affect the respective rights or obligations of 
the filing 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(e)(5).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. 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 Section, 350 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 DCC. All 
submissions should refer to File No. SR-DCC-98-02 and should be 
submitted by May 11, 1998.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-10342 Filed 4-17-98; 8:45 am]
BILLING CODE 8010-01-M