[Federal Register Volume 69, Number 116 (Thursday, June 17, 2004)]
[Notices]
[Pages 33965-33966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13635]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49826; File No. SR-EMCC-2004-07]


Self-Regulatory Organizations; Emerging Markets Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Relating to Applicants' and Members' Financial Reporting 
Obligations

June 8, 2004.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on April 2, 2004, the 
Emerging Markets Clearing Corporation (``EMCC'') filed a proposed rule 
change with the Securities and Exchange Commission (``Commission'') 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 revises EMCC Rule 13 (``Financial 
Responsibility and Operational Capability'') to specifically set forth 
the types of financial materials that EMCC expects its members and 
applicants to submit to it.

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

[[Page 33966]]

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

    EMCC's Rule 13 provides that EMCC has the authority to examine the 
financial responsibility of any member or applicant to become a member. 
Rule 13 also provides that in conducting such examinations, EMCC may 
require a member or applicant to furnish such information to EMCC as 
EMCC deems necessary to evaluate the member's or applicant's financial 
and operational capability.
    This proposed rule change formally memorializes EMCC's general 
practice of requesting applicants and members to provide, as 
applicable, FOCUS, Call, or SFA reports and returns on an ongoing 
basis. Accordingly, to ensure that its members are fully aware of the 
requirements imposed upon them, EMCC has determined to modify Rule 13 
to specifically enumerate the types of documents that EMCC expects to 
receive from members and applicants. These documents include, but are 
not limited to:
    (i) Financial statements, audited and unaudited;
    (ii) FOCUS reports or FOGS reports (for U.S. registered broker-
dealers) submitted to the designated examining authority and any 
supplemental reports required to be filed with the Commission pursuant 
to SEC Rule 17a-11 or 17 C.F.R. Section 405.3, or any successor rules 
or regulations thereto;
    (iii) Call Reports (for U.S. banks) submitted to the appropriate 
regulatory agency and, to the extent not contained within such Call 
Reports (or to the extent that Call Reports are not required to be 
filed), information containing capital levels and ratios, as such 
levels and ratios are required to be provided to the appropriate 
regulatory agency; and
    (iv) SFA monthly reports and returns (for non-U.S. registered 
broker-dealers subject to regulation by the SFA).
    EMCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \3\ and the rules and 
regulations thereunder as the proposed rule change clarifies for its 
applicants and members EMCC's requirements with respect to provide 
financial materials to EMCC.
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    \3\ 15 U.S.C. 78q-1.
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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 it receives.

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)(i) of the Act \4\ and Rule 19b-4(f)(1) \5\ thereunder 
because it constitutes a stated policy, practice, or interpretation 
with respect to the meaning, administration, or enforcement of an 
existing rule. At any time within sixty days of the filing of such rule 
change, the Commission could have summarily abrogated such rule change 
if it appeared to the Commission that such action was 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)(i).
    \5\ 17 CFR 240.19b-4(f)(1).
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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. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-EMCC-2004-07 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609. All submissions should refer to File Number 
SR-EMCC-2004-07. This file number should be included on the subject 
line if e-mail is used. To help the Commission process and review your 
comments more efficiently, please use only one method. The Commission 
will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 
EMCC's principal office and on EMCC's Web site at http://www.e-m-c-c.com. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
EMCC-2004-07 and should be submitted on or before July 8, 2004.

    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. 04-13635 Filed 6-16-04; 8:45 am]
BILLING CODE 8010-01-P