[Federal Register Volume 64, Number 22 (Wednesday, February 3, 1999)]
[Notices]
[Page 5329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2532]



[[Page 5329]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40989; File No. SR-EMCC-99-1]


Self-Regulatory Organizations; the Emerging Markets Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Fees and Charges for Pairing-Off

January 28, 1999.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 6, 1999, 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

    The proposed rule change expands the fees charged by EMCC for 
pairing-off services provided.

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

    Addendum H to EMCC's Rules allows EMCC to pair-off fail receive and 
deliver obligations relating to EMCC eligible instruments.\3\ When EMCC 
conducted its first pairing-off of fail receive and deliver obligations 
of EMCC eligible instruments, it only charged for the pairing-off of 
obligations related to warrants. EMCC charges a fee of $2.00 per 
warrant fail receive or deliver obligation eliminated as a result of 
any pairing-off. The proposed rule change expands the $2.00 fee to 
cover the pairing-off of all fail receive and deliver obligations 
regardless of the type of EMCC eligible instruments to which they 
relate.\4\
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    \3\ Prior to the approval of Addendum H, EMCC only had the 
authority to pair-off fail receive and deliver obligations relating 
to warrants.
    \4\ The complete text of the proposed amendments to EMCC's rules 
and procedures is attached to EMCC's filing as Exhibit A, which is 
available for inspection and copying at the Commission's Public 
Reference Room and through EMCC.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    EMCC does not believe that the proposed rule change will impose any 
burden on competition that is 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

    No comments on the proposed rule change were solicited or 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)(ii) \5\ of the Act and pursuant to Rule 19b-4(e)(2) \6\ 
promulgated thereunder because the proposal establishes or changes a 
due, fee, or other charge imposed by EMCC. At any time within sixty 
days of the filing of such proposed 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)(ii).
    \6\ 17 CFR 240.19b-4(e)(2).
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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, 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 be 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-99-1 and should be submitted by 
February 24, 1999.

    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. 99-2532 Filed 2-2-99; 8:45 am]
BILLING CODE 8010-01-M