Federal Register: February 3, 1999 (Volume 64, Number 22)NoticesPage 5329From the Federal Register Online via GPO Access [wais.access.gpo.gov]

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SECURITIES AND EXCHANGE COMMISSION

Release No. 34-40989; File No. SR-EMCC-99-1Self-Regulatory Organizations; the Emerging Markets Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fees and Charges for Pairing-Off

January 28, 1999.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on January 6, 1999, Emerging Markets Clearing Corporation (``EMCC'') filedwith 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 EMCC. The Commission is publishing this notice to solicit comments from interested persons on the proposed rule change.

\1\ 15 U.S.C. 78s(b)(1).

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The proposed rule change expands the fees charged by EMCC for pairing-off services provided.

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\

\2\ The Commission has modified the text of the summaries prepared by EMCC.

  (A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

Addendum H to EMCC's Rules allows EMCC to pair-off fail receive and deliver obligations relating to EMCC eligible instruments.\3\ When EMCC conducted its first pairing-off of fail receive and deliver obligations of EMCC eligible instruments, it only charged for the pairing-off of obligations related to warrants. EMCC charges a fee of $2.00 per warrant fail receive or deliver obligation eliminated as a result of any pairing-off. The proposed rule change expands the $2.00 fee to cover the pairing-off of all fail receive and deliver obligations regardless of the type of EMCC eligible instruments to which they relate.\4\

\3\ Prior to the approval of Addendum H, EMCC only had the authority to pair-off fail receive and deliver obligations relating to warrants.

\4\ The complete text of the proposed amendments to EMCC's rules and procedures is attached to EMCC's filing as Exhibit A, which is available for inspection and copying at the Commission's Public Reference Room and through EMCC.

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

EMCC does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.

  (C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received from Members, Participants or Others

No comments on the proposed rule change were solicited or received.

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) \5\ of the Act and pursuant to Rule 19b-4(e)(2) \6\ promulgated thereunder because the proposal establishes or changes a due, fee, or other charge imposed by EMCC. At any time within sixty days of the filing of such 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.

\5\ 15 U.S.C. 78s(b)(3)(A)(ii).

\6\ 17 CFR 240.19b-4(e)(2).

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. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filedwith 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 the principal office of EMCC. All submissions should refer to File No. SR-EMCC-99-1 and should be submitted by February 24, 1999.

For the Commission by the Division of Market Regulation, pursuant to delegated authority.\7\

\7\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland, Deputy Secretary.

FR Doc. 99-2532Filed2-2-99; 8:45 amBILLING CODE 8010-01-M