[Federal Register Volume 66, Number 151 (Monday, August 6, 2001)]
[Notices]
[Pages 41072-41073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19523]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44618; File No. SR-EMCC-2001-01]


Self-Regulatory Organizations; Emerging Markets Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Revising Fees

July 30, 2001.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 29, 2001, 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 by EMCC. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 USC 78s(b)(1)
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I. Self-Regulatory Organization's Statement of the Term of 
Substance of the Proposed Rule Change

    The proposed rule change modified EMCC's fee schedule to charge 
members that use the Match-EM formats or the Datatrack/Autoroute 
communications network.

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

    When EMCC first began operations, EMCC supported the message 
formats created for the Match-EM trade comparison system operated by 
General Electric Corporation. In October 1999, however, EMCC stopped 
accepting trade data via the Match-EM system although it has continued 
to accept data directly from those members still using the Match-EM 
formats. Similarly, the Datatrack/Autoroute communications

[[Page 41073]]

link offered to members when EMCC began operations has largely been 
supplanted by communications via the SWIFT network or via direct 
communication using MQ protocol.
    EMCC currently incurs data processing costs attributable to 
accepting data in the Match-EM format and receiving transmissions via 
the Datatrack/Autoroute communications network. EMCC does not believe 
that it is appropriate to absorb these costs and that these costs 
should be paid by those members who continue to use these services. 
Accordingly, EMCC has determined to charge those members who, from and 
after July 1, 2001, continue to use the Match-EM format and/or the 
Datatrack/Autoroute communications network a fee equal to EMCC's cost 
of providing such data processing services on a proportionate pass-
through basis based upon a formula that takes into account transaction 
volumes and the number of participants utilizing the services. EMCC 
estimates these costs to be approximately $30,000 per year for using 
the Match-EM format and approximately $90,000 per year for using the 
Datatrack/Autoroute network. Thus, the maximum annual charge a member 
would have responsibility for, if it were the last member using both 
services, is $120,000.
    EMCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder since 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 \3\ and Rule 19b-4(2) \4\ thereunder because 
the proposed rule change establishes a fee. 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 he purposes of 
the Act.
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    \3\ 15 U.S.C. 78s(b)(3)(A)(ii)
    \4\ 17 C.F.R. 240.19b-4(f)(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 20549-0609. 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the rule proposal that are filed with the 
Commission, and all written communications relating to the rule 
proposal 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 EMCC's 
principal office. All submissions should refer to file No. SR-EMCC-
2001-01 and should be submitted by August 27, 2001.

    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. 01-19523 Filed 8-3-01; 8:45 am]
BILLING CODE 8010-01-M