[Federal Register Volume 68, Number 165 (Tuesday, August 26, 2003)]
[Notices]
[Pages 51312-51313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21825]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48367; File No. SR-EMCC-2003-03]


Self-Regulatory Organizations; Emerging Markets Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Establishing a Temporary Rebate for IDB Members

August 19, 2003.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 6, 2003, Emerging 
Markets Clearing Corporation (``EMCC'') filed with the Securities and 
Exchange Commission (``Commission'') and on August 4, 2003, amended 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 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 establishes a temporary reimbursement for 
Inter-Dealer Broker (``IDB'') members or members whose only use of EMCC 
is to clear for IDBs of the costs associated with their deposits in 
excess of $50 million.

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 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 Commission recently approved a proposed rule change filed by 
EMCC to modify its clearing fund requirements for IDB members or 
members whose only use of EMCC is to clear for IDBs.\3\ That proposed 
rule change established a fixed amount of $50 million to be deposited 
by members who are IDBs or whose only use of EMCC is to clear for IDBs. 
EMCC is concerned that if this modified requirement is not established, 
the IDBs will no longer submit their transactions to EMCC, and the 
dealer market will lose the benefits, such as the risk management and 
standardized, electronic processing, currently provided by EMCC. EMCC 
has decided to reimburse any such member the costs associated with its 
deposit requirements in excess of $50 million. The rebate is 
retroactive to May 1, 2003, and will continue in effect until the 
modified clearing fund requirement for IDBs is effective.
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    \3\ Securities Exchange Act Release No. 48366 (August 19, 2003) 
(File No. SR-EMCC-2003-02).
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    EMCC believes that 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 will permit the equitable 
allocation of charges among participants.

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

    EMCC does not believe that the proposed rule change will have any 
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

    Because the foregoing rule change establishes or changes fees to be 
imposed by EMCC, it has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \4\ and rule 19b-4(f)(2).\5\ At any time 
within 60 days of the filing of the proposed 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.
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    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 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. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-EMCC-2003-03. This file number should be included on the 
subject line if e-mail is used. To help us process and review comments 
more efficiently, comments should be sent in hardcopy or by e-mail but 
not by both methods. 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

[[Page 51313]]

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 EMCC. All submissions should refer to the File No. 
SR-EMCC-2003-03 and should be submitted by September 16, 2003.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 03-21825 Filed 8-25-03; 8:45 am]
BILLING CODE 8010-01-P