[Federal Register Volume 69, Number 65 (Monday, April 5, 2004)]
[Notices]
[Page 17724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-7539]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49492; File No. SR-SCCP-2002-07]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Order Approving a Proposed Rule Change Relating to Ex-
Clearing Account Transactions

March 29, 2004.
    On December 26, 2002, the Stock Clearing Corporation of 
Philadelphia (``SCCP'') filed with the Securities and Exchange 
Commission (``Commission'') proposed rule change SR-SCCP-2002-07 
pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'').\1\ Notice of the proposal was published in the Federal 
Register on January 14, 2004.\2\ No comment letters were received. For 
the reasons discussed below, the Commission is approving the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release No. 49046 (Jan. 8, 2004), 69 
FR 2167.
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I. Description

    The proposed rule change will add a provision to SCCP Rule 11 (Ex-
Clearing Accounts) to enable SCCP participants to use an ex-clearing 
account when both sides of a securities transaction facilitated by the 
Philadelphia Stock Exchange (``Phlx'') agree to transmit the 
transaction data to the National Securities Clearing Corporation 
(``NSCC'') for clearance and settlement themselves, instead of 
transmitting the transaction data to NSCC through SCCP. Currently, SCCP 
participants that have agreed to settle a transaction outside any 
registered clearing agency may do so through an ``ex-clearing 
account.'' With this rule amendment, the ex-clearing account may be 
used not only for transactions to be settled outside a registered 
clearing agency but also for transaction being sent to NSCC but not 
through SCCP. SCCP anticipates that certain Phlx members that 
participate in Phlx's program to trade Nasdaq securities will arrange 
for the clearance and settlement of their Nasdaq securities trading at 
Phlx directly with NSCC.\3\ As before the amendment, SCCP makes no 
trade guarantee respecting any ex-clearing transaction.
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    \3\ The use of ex-clearing accounts is not limited to trading in 
Nasdaq securities and may be used in any situation that otherwise 
meets the criteria for the use of ex-clearing accounts.
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II. Discussion

    Section 17A(b)(3)(F) of the Act \4\ requires, among other things, 
that the rules of a clearing agency be designed to promote the prompt 
and accurate clearance and settlement of securities transactions. The 
Commission finds that the proposed rule change is consistent with this 
requirement because it will provide an additional mechanism for SCCP 
participants to have their securities transactions cleared and settled 
at NSCC, a registered clearing agency, which should promote the prompt 
and accurate clearance and settlement of securities transactions.
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    \4\ 15 U.S.C. 78q-1(b)(3)(F).
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III. 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 \5\ and the 
rules and regulations thereunder.
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    \5\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to section 19(b)(2) of the Act, 
that the proposed rule change (File No. SR-SCCP-2002-07) be, and hereby 
is, approved.

    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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-7539 Filed 4-2-04; 8:45 am]
BILLING CODE 8010-01-P