[Federal Register Volume 63, Number 157 (Friday, August 14, 1998)]
[Notices]
[Pages 43737-43738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21846]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-403111; International Series Release No. 1151; SR-EMCC-
98-07]


Self-Regulatory Organizations; Emerging Markets Clearing 
Corporation; Notice of a Proposed Rule Change To Require Members To 
Maintain a Pre-Billing Deposit

August 7, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 24, 1998, Emerging 
Markets Clearing Corporation (``EMCC'') 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 EMCC. 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

    Under the proposed rule change, EMCC will require each of its 
members to maintain a deposit with EMCC in an amount equal to three 
times the member's average monthly bill.

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

    In its filing with the Commission, EMCC 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. EMCC 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 EMCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Under the proposed rule change, EMCC will require each member to 
maintain on deposit with EMCC an amount equal to three times the 
member's average monthly EMCC bill (``pre-bill amount''). The purpose 
of the pre-bill amount is to provide EMCC with additional operating 
cash. The average monthly bill will be based on a member's three most 
recent monthly EMCC bills, excluding all pass-through charges.\3\ 
Members will continue to be billed monthly based on their actual use of 
EMCC's services.
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    \3\ If a member does not have a three month billing history 
(e.g., a new member), EMCC will estimate the member's average 
monthly bill in calculating the pre-bill amount.
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    The pre-bill amount will be recalculated quarterly. If a member's 
recalculated pre-bill amount is greater than its prior pre-bill amount, 
the amount of such difference will appear on the member's next monthly 
bill as an additional charge. Conversely, if a member's recalculated 
pre-bill amount is less than its prior pre-bill amount, the amount of 
such difference will appear on the member's next monthly bill as a 
credit. Within forty-five days of December 31st of each year, EMCC will 
provide each member with a statement reflecting the member's pre-bill 
amount on deposit with EMCC as of December 31st.
    EMCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder since it will facilitate the prompt and accurate clearance 
and settlement of securities transactions.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    EMCC does not believe that the proposed rule change will have an 
impact on or impose a burden on competition.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    No written comments relating to the proposed rule change have been 
solicited or received. EMCC will notify the Commission of any written 
comments received by EMCC.

[[Page 43738]]

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Withing 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 EMCC 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, 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, NW., Washington, DC 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 available for inspection and copying in the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing also will be available for 
inspection and copying at the principal office of EMCC. All submissions 
should refer to File No. SR-EMCC-98-07 and should be submitted by 
September 4, 1998.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12)
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-21846 Filed 8-13-98; 8:45 am]
BILLING CODE 8010-01-M