[Federal Register Volume 65, Number 131 (Friday, July 7, 2000)]
[Notices]
[Pages 42051-42052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17144]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42991; File No. SR-GSCC-00-03]


Self-Regulatory Organizations; Government Securities Clearing 
Corporation; Notice of Filing of Proposed Rule Change Relating to 
Choice of Law Rules

June 29, 2000.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''), notice is hereby given that on April 27, 2000, the 
Government Securities Clearing Corporation (``GSCC'') 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 primarily prepared by GSCC. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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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 will amend GSCC's rules by specifying that 
GSCC's rules will be governed by and interpreted under the laws of the 
State of New York.

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

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

    GSCC proposes to add a new provision to its rules that will specify 
that GSCC's rules and the rights and obligations under the rules will 
be governed by the laws of the State of New York without regard to New 
York's conflicts of laws principles. Even though GSCC believes that New 
York law governs its rules since GSCC's membership agreement states 
that the agreement and rules are expressly governed by New York law, 
GSCC believes that the proposed rule change will eliminate any doubts 
as to which law governs its rules.
    GSCC believes that being governed by New York law is appropriate 
and offers numerous advantages, including: (i) New York has well-
established commercial law principles; (ii) GSCC is established under 
the New York Business Corporation Law; (iii) GSCC is located in New 
York; and (iv) the majority of GSCC's members have their principal 
office in New York.
    GSCC believes that the proposed rule change is consistent with 
Section 17A(b)(3)(F) \3\ of the Act and the rules and regulations 
thereunder because it will clarify GSCC's rules.
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    \3\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    GSCC does not believe that the proposed rule change will have an 
impact 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.

    Written comments relating to the proposed rule change have not yet 
been solicited or received.\4\ GSCC will notify the Commission of any 
written comments received by GSCC.
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    \4\ Members will be notified of the rule change filing and 
comments will be solicited by an Important Notice.
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III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Within 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 GSCC 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 20549-0609. 
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 Room in Washington, DC. Copies of such 
filing will also be available for inspection and copying at GSCC's 
principal office. All submissions should refer to File No. SR-GSCC-00-
03 and should be submitted by July 28, 2000.


[[Page 42052]]


    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. 00-17144 Filed 7-6-00; 8:45 am]
BILLING CODE 8010-01-M