regulatory organizations; proposed rule changes: Government Securities Clearing Corp.,

[Federal Register: July 7, 2000 (Volume 65, Number 131)]

[Notices]

[Page 42051-42052]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr07jy00-112]

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42991; File No. SR-GSCC-00-03]

Self-Regulatory Organizations; Government Securities Clearing Corporation; Notice of Filing of Proposed Rule Change Relating to Choice of Law Rules

June 29, 2000.

Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act''), notice is hereby given that on April 27, 2000, the Government Securities Clearing Corporation (``GSCC'') filedwith the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been primarily prepared by GSCC. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

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

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

   The proposed rule change will amend GSCC's rules by specifying that GSCC's rules will be governed by and interpreted under the laws of the State of New York.

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

   In its filing with the Commission, GSCC 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. GSCC 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 GSCC.

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

      GSCC proposes to add a new provision to its rules that will specify that GSCC's rules and the rights and obligations under the rules will be governed by the laws of the State of New York without regard to New York's conflicts of laws principles. Even though GSCC believes that New York law governs its rules since GSCC's membership agreement states that the agreement and rules are expressly governed by New York law, GSCC believes that the proposed rule change will eliminate any doubts as to which law governs its rules.

      GSCC believes that being governed by New York law is appropriate and offers numerous advantages, including: (i) New York has well- established commercial law principles; (ii) GSCC is established under the New York Business Corporation Law; (iii) GSCC is located in New York; and (iv) the majority of GSCC's members have their principal office in New York.

      GSCC believes that the proposed rule change is consistent with Section 17A(b)(3)(F) \3\ of the Act and the rules and regulations thereunder because it will clarify GSCC's rules.

      \3\ 15 U.S.C. 78q-1(b)(3)(F).

   2. Self-Regulatory Organization's Statement on Burden on Competition

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

   3. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others.

      Written comments relating to the proposed rule change have not yet been solicited or received.\4\ GSCC will notify the Commission of any written comments received by GSCC.

      \4\ Members will be notified of the rule change filing and comments will be solicited by an Important Notice.

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

   Within thirty-five days of the date of publication of this notice in the Federal Register or within such longer period: (i) as the Commission may designate up to ninety days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which GSCC consents, the Commission will:

   (a) by order approve such proposed rule change or

   (b) institute proceedings to determine whether the proposed rule change should be disapproved.

4. 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 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 Room in Washington, DC. Copies of such filing will also be available for inspection and copying at GSCC's principal office. All submissions should refer to File No. SR-GSCC-00- 03 and should be submitted by July 28, 2000.

   [[Page 42052]]

   For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\5\

   \5\ 17 CFR 200.30-3(a)(12).

   Margaret H. McFarland, Deputy Secretary.

   [FR Doc. 00-17144Filed7-6-00; 8:45 am]

   BILLING CODE 8010-01-M