26256 Federal Register / Vol. 65, No. 88 / Friday, May 5, 2000 / Notices

5The proposed cross-margining arrangement will

be the subject of a separate rule filing by GSCC in

the future. GSCC, Euroclear, and LCH intend to

work toward implementing the cross-margining

arrangement by early 2001.

6 15 U.S.C. 78q–1(b)(3)(F).

7 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3Securities Exchange Act Release No. 42473

(February 29, 2000), 65 FR 11818.

4 In approving this rule, the Commission has

considered its impact on efficiency, competition,

and capital formation. 15 U.S.C. 78c(f).

5 15 U.S.C. 78f.

6 15 U.S.C. 78f(b)(4).

7 Id.

8 15 U.S.C. 78s(b)(2).

9 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

management processes. GSCC intends to

help ensure that: (i) Processing

efficiencies will be attained through the

utilization of standardized SWIFT

message formats for input and output;

(ii) participants’ margin requirements

will be reduced through cross-margining

both their European Government

securities activity and their combined

United States and European activity; 5

(iii) participants’ balance sheets will be

reduced and they will experience

increased capital utilization through a

maximization of the offsets available

from repo and reverse repo activity; (iv)

the RepoClear service will support

global electronic trading systems which

will allow for more efficient settlement

of side-by-side cash and futures

activities through coordinated mark-tomarket and margining processes,

standardized clearance and settlement

practices, and optimized crossmargining of correlated positions.

II. Discussion

Section 17A(b)(3)(F) 6 of the Act

requires that the rules of a clearing

agency be designed to promote the

prompt and accurate clearance and

settlement of securities transactions and

to foster cooperation and coordination

with persons engaged in the clearance

and settlement of securities

transactions. For the reasons set forth

below, the Commission believes that

GSCC’s proposed rule change is

consistent with GSCC’s obligations

under the Act.

GSCC’s participation in ESCC as a

shareholder and a member of the board

of directors should help to ensure that

ESCC is able to provide both to United

States organizations operating abroad,

either directly or through their

European affiliates, and to non-United

States organizations a clearance and

settlement system that provides for the

prompt and accurate clearance and

settlement of buys and sells and repo

transactions involving European

sovereign debt instruments. GSCC’s

participation in ESCC should also foster

cooperation and coordination between

itself, Euroclear, and LCH, all of which

are major providers of clearance and

settlement services.

III. Conclusion

On the basis of the foregoing, the

Commission finds that the proposed

rule change is consistent with the

requirements of the Act and in

particular Section 17A of the Act and

the rules and regulations thereunder.

It Is Therefore Ordered, pursuant to

section 19(b)(2) of the Act, that the

proposed rule change (File No. SR–

GSCC–99–05) be and hereby is

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Jonathan G. Katz,

Secretary.

[FR Doc. 00–11254 Filed 5–4–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42370; File No. SR–ISE–

00–02]

Self-Regulatory Organizations; Order

Granting Approval of Proposed Rule

Change by the International Securities

Exchange LLC Relating to Its Fee

Schedule

April 28, 2000.

I. Introduction

On February 25, 2000, the

International Securities Exchange LLC

(‘‘ISE’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’), pursuant to

section 19(b)(1) of the Securities

Exchange Act of 1934 (‘‘Act’’),1 and

Rule 19b–4 thereunder,2 a proposed rule

change to adopt a fee schedule.

The proposed rule change was

published for comment in the Federal

Register on March 6, 2000.3 No

comments were received on the

proposal. This order approves the

proposal.

II. Description of the Proposal

ISE’s proposed fee schedule itemizes

fees for the services it will offer to its

members and others. This schedule

includes membership fees, trading fees,

and fees for a variety of other services,

including the installation and

maintenance of certain equipment. ISE

stated in its proposal that it intends to

use revenues from these fees to recover

its costs of operating a trading market

and to build a reserve for future needs.

ISE further stated that it does not intend

to use these fees to generate an

operating profit to distribute to its

members, and will adjust its fees to

maintain the appropriate balance

between costs and expenses, as ISE

gains experience in the operation of its

market.

III. Discussion

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and rules

and regulations thereunder applicable to

a national securities exchange,4 and in

particular, with the requirements of

section 6 of the Act.5 Specifically, the

Commission finds that the proposal is

consistent with section 6(b)(4) of the

Act.6

Under section 6(b)(4),7 a registered

national securities exchange must

promulgate rules that provide for the

equitable allocation of reasonable dues,

fees and other charges among its

members and other persons using its

facilities. The Commission finds that

ISE’s fee schedule is not unreasonable

and should not discriminate unfairly

among market participants.

IV. Conclusion

It Is Therefore Ordered, pursuant to

section 19(b)(2) of the Act,8 that the

proposed rule change (SR–ISE–00–02) is

approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Jonathan G. Katz,

Secretary.

[FR Doc. 00–11229 Filed 5–4–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42734; File No. SR–NASD–

00–25]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by National

Association of Securities Dealers, Inc.

Relating to Extension of Time To Pass

the Series 55 Examination, Equity

Trader

April 28, 2000.

Pursuant to section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 27,

2000, the National Association of