[Federal Register Volume 64, Number 42 (Thursday, March 4, 1999)]
[Notices]
[Pages 10521-10522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5368]


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SECURITIES AND EXCHANGE COMMISSION

[Release 34-41103; International Series Release No. 1185; File No. 600-
20]


Self-Regulatory Organizations; International Securities Clearing 
Corporation; Notice of Filing and Order Approving a Request for 
Extension of Temporary Registration as a Clearing Agency

February 24, 1999.
    Notice is hereby given that on February 1, 1999, the International 
Securities Clearing Corporation (``ISCC'') filed with the Securities 
and Exchange Commission (``Commission'') an application pursuant to 
Section 19(a) of the Securities Exchange Act of 1934 (``Act'') \1\ 
requesting that the Commission extend ISCC's temporary registration as 
a clearing agency for one year.\2\ The Commission is publishing this 
notice and order to solicit comments from interested persons and to 
extend ISCC's temporary registration as a clearing agency until 
February 29, 2000.
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    \1\ 15 U.S.C. 78s(a).
    \2\ Letter from Julie Beyers, Vice President and Associate 
Counsel, ISCC (January 28, 1999).
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    On May 12, 1989, pursuant to Sections 17A(b) and 19(a) of the Act 
\3\ and rule 17Ab2-1 promulgated thereunder,\4\ the Commission granted 
ISCC's application for registration as a clearing agency for a period 
of eighteen months.\5\ Since that time, the Commission has extended 
ISCC's temporary registration through February 28, 1999.\6\
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    \3\ 15 U.S.C. 78q-1(b) and 78s(a).
    \4\ 17 CFR 240.17Ab2-1.
    \5\ Securities Exchange Act Release No. 26812 (May 12, 1989), 54 
FR 21691.
    \6\ Securities Exchange Act Release Nos. 28606 (November 16, 
1990), 55 FR 47976; 30005 (November 27, 1991), 56 FR 63747; 33233 
(November 22, 1993), 58 FR 63195; 36529 (November 29, 1995), 60 FR 
62511; 37986 (November 25, 1996), 61 FR 64184; 38703 (May 30, 1997), 
62 FR 31183; and 39700 (February 26, 1998) 63 FR 10669.
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    ISCC was created to provide safe and efficient clearance and 
settlement of securities transactions between United States broker-
dealers and foreign financial institutions. ISCC serves this function 
through its Global Clearance Network service and through its settlement 
links with foreign clearing entities such as the Euroclear system, 
which is operated by the Brussels Office of Morgan Guaranty Trust 
Company of New York.\7\
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    \7\ Securities Exchange Act Release Nos. 29841 (October 18, 
1991), 56 FR 55960 (order approving ISCC's Global Clearance Network 
service) and 32564 (June 30, 1993), 58 FR 36722 (order approving 
linkage with Euroclear).
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    As part of ISCC's temporary registration, the Commission granted 
ISCC a temporary exemption from compliance with Section 17A(b)(3)(C) of 
the Act,\8\ which requires that the rules of a clearing agency assure 
the fair representation of its shareholders or members and participants 
in the selection of its directors and administration of its affairs. 
The Commission granted this temporary exemption due to ISCC's limited 
participant base. In July 1997, the Commission approved ISCC's new 
structure for matters relating to its corporate governance.\9\ The 
Commission concluded that these changes were consistent with ISCC's 
obligation to provide fair representation to its participants and 
eliminated its exemption from Section 17A(b)(3)(C) of the Act. However, 
due to internal reorganization considerations, the changes were not 
implemented. Accordingly, ISCC has requested that the Commission 
reinstate its exemption from the fair representation requirements.
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    \8\ 15 U.S.C. 78q-1(b)(3)(C).
    \9\ Securities Exchange Act Release No. 38846 (July 17, 1997), 
62 FR 39562.
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    Because ISCC has not yet implemented its new structure, the 
Commission is reinstating ISCC's temporary exemption from the fair 
representation requirements of Section

[[Page 10522]]

17A(b)(3)(C) and is extending ISCC's temporary registration as a 
clearing agency through February 29, 2000.
    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing application. Such written data, 
views, and arguments will be considered by the Commission in granting 
registration or instituting proceedings to determine whether 
registration should be denied in accordance with Section 19(a)(1) of 
the Act.\10\ 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 amended 
application for registration and all written comments will be available 
for inspection at the Commission's Public Reference Room, 450 Fifth 
Street, NW., Washington, DC 20549. All submissions should refer to File 
No. 600-20 and should be submitted by March 25, 1999.
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    \10\ 15 U.S.C. 78s(a)(1).
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    It is therefore ordered pursuant to Section 19(a) of the Act, that 
ISCC's registration as a clearing agency (File No. 600-20) be and 
hereby is temporarily approved through February 29, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delebated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(16).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-5368 Filed 3-3-99; 8:45 am]
BILLING CODE 8012-01-M