[Federal Register Volume 67, Number 233 (Wednesday, December 4, 2002)]
[Notices]
[Pages 72256-72257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-30662]


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SECURITIES AND EXCHANGE COMMISSION

(Release No. 34-46913; File No. SR-NSCC-2002-09)


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Order Granting Accelerated Approval 
of a Proposed Rule Change Relating to the Acceptance of Trade Data

November 26, 2002.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\ notice is hereby given that on October 24, 2002, National 
Securities Clearing Corporation (``NSCC'') 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 NSCC. The Commission is publishing this notice and order 
to solicit comments from interested persons and to grant approval of 
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 would amend NSCC's rules to provide that 
NSCC may accept trade data from derivatives clearing organizations.

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

    In its filing with the Commission, NSCC included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on 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. NSCC 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 parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule filing is to allow NSCC to accept 
trade data from derivatives clearing organizations (``DCOs'') that are 
registered or deemed registered with the Commodity Futures Trading 
Commission pursuant to the Commodity Exchange Act. OneChicago LLC has 
developed a physically-settled, narrow-based security index futures 
that wills delivery of the underlying securities at expiration. To 
facilitate the settlement of these futures at expiration, NSCC will 
need to receive trade date relating to exercise obligations.
    NSCC's rules currently provide that NSCC may accept trade data from 
self regulatory organizations (``SROs)'', as defined in the Act.\3\ In 
its connection with OneChicago and these physically-settled, narrow-
based security index futures, the Chicago Mercantile Exchange (``CME'') 
will have trade data relating to expiration obligations necessary for 
settlement. While the CME is a DCO, it is not an SRO. In order to be 
able to accept trade data from the CME, NSCC is proposing to amend 
Section 5 of its Rule 7 (Comparison and Trade Recording Operation) to 
provided that NSCC may accept trade data from DCOs that are registered 
or deemed to be registered with the Commodity Futures Trading 
Commission pursuant to the Commodity Exchange Act.
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    \3\ Section 3(a)(26) of the Act defines an SRO as any national 
securities exchange, registered securities association, registered 
clearing agency, or (solely for purposes of sections 19(b), 19(c), 
an 23(b) of the Act) the Municipal Securities Rulemaking Board 
established by Section 15B of the Act.
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    NSCC believes that the proposed rule filing is consistent with the 
requirements of the Act and the rules and regulations there under 
because it promotes the prompt and accurate clearance and settlement of 
securities transactions.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change would have an 
impact on or impose a burden on competition.

(C) Self-Regulatory Organization's Statement 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. NSCC will notify the Commission of any written 
comments received by NSCC.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations there 
under particularly with the requirements of Section 17A(b)(3)(F).\4\ 
Section 17A(b)(3)(F) requires that the rules of a

[[Page 72257]]

clearing agency be designed to promote the prompt and accurate 
clearance and settlement of securities transactions. By authorizing 
NSCC to accept trade data from registered DCOs, the proposed rule 
change will allow NSCC to accept trade relating to expiration 
obligations of security futures from CME or any other DCO with such 
information. As a result, the proposed rule change promotes the prompt 
and accurate clearance and settlement of security futures.
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    \4\ 15 U.S.C. 78q-1(b)(3)(F).
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    NSCC has requested that the Commission approve the proposed rule 
change prior to the thirtieth day after publication of the notice of 
the filing. The Commission funds good cause for approving the rule 
change prior to the thirtieth day after publication because by so 
approving NSCC will be able to accept trade data from the CME on these 
physically-settled, narrow-based security index futures once they begin 
trading in the near future.

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 related 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 will also be available for 
inspection and copying at the principal office of NSCC. All submissions 
should refer to the File No. SR-NSCC-2002-09 and should be submitted by 
December 26, 2002.

V. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposal is consistent with the requirements of the Act and in 
particular with the requirements of Section 17A of the Act and the 
rules and regulations thereunder.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (File No. SR-NSCC-2002-09) be and hereby 
is approved on an accelerated basis.

    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. 02-30662 Filed 12-3-02; 8:45 am]
BILLING CODE 8010-01-M