[Federal Register Volume 66, Number 65 (Wednesday, April 4, 2001)]
[Notices]
[Pages 17978-17979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-8207]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44125; File No. SR-EMCC-00-10]


Self-Regulatory Organizations; The Emerging Markets Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Fee Schedules

DATES: March 28, 2001.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 8, 2000, the 
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 on the proposed rule change from interested 
parties.
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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 allow EMCC to modify its current fee 
schedule.

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 these 
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

    EMCC, as part of its risk analysis, calculates a margin amount for 
each member.\3\ Among the factors used in making these calculations are 
the liquidity ratings assigned to the securities through EMCC (``EMCC 
eligible instruments'') and the volatility of those securities. Several 
members have recently requested on an ad hoc basis that EMCC prepare 
specialized reports showing either the liquidity ratings for all EMCC 
eligible instruments or the volatilities applicable at a given time for 
all those instruments. These reports may assist the requesting member 
in monitoring their trading positions and avoiding any overnight 
exposure cap violation resulting from their positions.
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    \3\ EMCC calculates each member's margin amount pursuant to the 
formula set forth in EMCC Rule 4, section 5.
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    While EMCC has the right to charge the requesting member for the 
cost of preparing any specialized reports,\4\ it has determined to 
establish a fixed fee for the preparation of these specialized risk 
reports and set the fee in the fee schedule. The fee for preparation of 
a report showing one standard deviation of volatility, as defined and 
calculated in accordance with EMCC Rule 4, section 5.II of all EMCC 
eligible instruments (``Volatility Report'') will be $500. The fee for 
preparation of a report showing the liquidity rating of all such

[[Page 17979]]

instruments (``Liquidity Rating Report'') will be $500.
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    \4\ EMCC Rule 20, section 2, states, ``A Member may be charged 
for any unusual expense caused directly or indirectly by such Member 
including but without limitation, the cost of producing records 
pursuant to a court order or other legal process in any litigation 
or other legal proceeding to which such Member is a party or in 
which such records relating to such Member are so required to be 
produced, whether such production is required at the instance of 
such Member, or of any other party other than the Corporation.''
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    The proposed rule change is consistent with the requirements of 
Section 17A of the Act and the rules and regulations thereunder 
applicable to EMCC because it provides for the equitable allocation of 
dues, fees, and other charges among EMCC's participants.

(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.

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) of the Act and Rule 19b-4(f)(2) thereunder because the 
proposed rule change establishes a due, fee, or charge imposed by the 
self-regulatory organization. At any time within sixty days of the 
filing of such 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.

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 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-00-10 and should be submitted by April 
25, 2001.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-8207 Filed 4-3-01; 8:45 am]
BILLING CODE 8010-01-M