[Federal Register Volume 63, Number 179 (Wednesday, September 16, 1998)]
[Notices]
[Page 49622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24815]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40422; International Series Release No. 1156; File No. 
SR-EMCC-98-07]


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

September 9, 1998.
    On July 24, 1998, Emerging Markets Clearing Corporation (``EMCC'') 
filed with the Securities and Exchange Commission (``Commission'') a 
proposed rule change (File No. SR-EMCC-98-07) pursuant to Section 
19(b)(1) of the Securities Exchange Act of 1934 (``Act'').\1\ Notice of 
the proposal was published in the Federal Register on August 14, 
1998.\2\ No comment letters were received. For the reasons discussed 
below, the Commission is granting accelerated approval of the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release No. 40311 (August 7, 1998), 
63 FR 43737.
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I. Description

    Under the 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. 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. 
Members will continue to be billed monthly based on their actual use of 
EMCC's services.
    EMCC will recalculate the pre-bill amount 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.

II. Discussion

    Section 17A(b)(3)(D) of the Act \3\ requires that the rules of a 
clearing agency provide for the equitable allocation of reasonable 
dues, fees, and other charges among its participants. The Commission 
believes that the proposed rule change is consistent with EMCC's 
obligations under Section 17A(b)(3)(D) because the pre-bill amount will 
be calculated based on each member's use of EMCC's services. In 
addition, the rule change provides for quarterly recalculation of the 
pre-bill amount, which should help ensure that each member's pre-bill 
amount accurately reflects the current level of its use of EMCC's 
services.
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    \3\ 15 U.S.C. 78q-1(b)(3)(D).
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    EMCC has requested that the Commission approve the proposed rule 
change prior to the thirtieth day after publication of the notice of 
the filing. The Commission finds good cause for approving the proposed 
rule change prior to the thirtieth day after the publication of notice 
because such approval will allow EMCC to collect the pre-bill amounts 
promptly which should increase its liquidity resources.

III. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposal is consistent with the requirements of the Act and in 
particular with the requirements of Section 17A of the Act \4\ and the 
rules and regulations thereunder.
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    \4\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (File No. SR-EMCC-98-07) be and hereby is 
approved on an accelerated basis.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-24815 Filed 9-15-98; 8:45 am]
BILLING CODE 8010-01-M