39456 Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Notices

10 17 CFR 200.30–3(a)(12).

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

2The Commission has modified the text of the

summaries prepared by MBSCC.

3Article I, Rule 1 of MBSCC’s rules will be

amended as follows. ‘‘The term an ‘Affiliate’ of, or

a person ‘Affiliated’ with, a specified person, means

a person that directly, or indirectly, through one or

more intermediaries, controls, or is controlled by,

or is under common control with, the person

specified. For purposes of this definition, the term

‘control’ (including the terms ‘controls,’ ‘controlled

by,’ and ‘under common control with’) means the

possession, direct or indirect, of the power to direct

or cause the direction of the management and

policies of a person, whether through the

ownership of voting securities, by contract, or

otherwise.’’

4 15 U.S.C. 78q–1(b)(3)(A).

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

purpose of the Act.

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 20549–0609. 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 nay 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, 450 Fifth Street, NW,

Washington, DC. Copies of such filing

will also be available for inspection and

copying at the principal office of the

Exchange. All submissions should refer

to File No. SR–CHX–00–21 and should

be submitted by July 17, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–16027 Filed 6–23–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42961; File No. SR–

MBSCC–00–01]

Self-Regulatory Organizations; MBS

Clearing Corporation; Notice of Filing

of Proposed Rule Change Relating to

Letters of Credit

June 20, 2000.

Pursuant to Section 19(b) 1 of the

Securities Exchange Act of 1934

(‘‘Act’’), notice is hereby given that on

April 11, 2000, the MBS Clearing

Corporation (‘‘MBSCC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) and on June 13, 2000,

amended the proposed rule change as

described in Items I, II, and III below,

which Items have been prepared

primarily by MBSCC. The Commission

is publishing this notice to solicit

comments on the proposed rule change

from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change will

prohibit MBSCC from accepting a letter

of credit from a participant when the

participant or an affiliate of that

participant issues the letter of credit.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

MBSCC 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. MBSCC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The purpose of the proposed rule

change is to modify Article IV, Rule 2,

Section 9 of MBSCC’s rules, which

governs deposits of letters of credit by

participants to the participants fund for

margin purposes. This rule provides

that MBSCC may approve as the issuer

of a letter of credit any domestic or

foreign bank or trust company meeting

the requirements set forth in procedures

adopted from time to time by MBSCC.

The proposed rule change will amend

Article IV, Rule 2, Section 9 by adding

a new subsection (b) which will prohibit

MBSCC from accepting a letter of credit

from a participant that is issued by that

participant or by an affiliate of that

participant.3 The proposed rule change

will codify MBSCC’s historical practice

of requiring that a letter of credit

deposited by a participant to the

participants fund be issued by an

approved letter of credit issuer other

than the participant or an affiliate of the

participant.

The proposed rule change also makes

a technical modification to Article III,

Rule 5 of MBSCC’s rules to correct the

reference contained within such rule

from ‘‘Rule 4’’ to ‘‘Rule 5.’’

MBSCC believes that the proposed

rule change is consistent with the

requirements of Section 17A(b)(3)(A) 4

of the Act and the rules and regulations

thereunder because it is designed to

assure the safeguarding of securities and

funds that are in the custody or control

of MBSCC or for which it is responsible.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

MBSCC 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. MBSCC will notify

the Commission of any written

comments received by MBSCC.

III. 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 the self-regulatory

organization 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.

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

Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Notices 39457

5 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

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 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

Room in Washington, D.C. Copies of

such filing will also be available for

inspection and copying at MBSCC’s

principal office. All submissions should

refer to File No. SR–MBSCC–00–01 and

should be submitted by July 17, 2000.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–16064 Filed 6–23–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42958; File No. SR–NASD–

00–20]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the National Association of Securities

Dealers, Inc. Relating to Amendments

to Rule 2320(g) and Rule 3110(b)

June 20, 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 13,

2000, the National Association of

Securities Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’), through its wholly

owned subsidiary, NASD Regulation,

Inc. (‘‘NASD Regulation’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change as described in Items I, II, and

III below, which Items have been

prepared by NASD Regulation. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

NASD Regulation is proposing to

amend NASD Rules 2320(g) and

3110(b): (1) To require that members

executing a customer order in a nonNasdaq security contact and obtain

quotations from three dealers (or all

dealers if three or less) to determine the

best inter-dealer market for security,

unless two or more priced quotations

are displayed in an inter-dealer

quotation system that permits quotation

updates on a real-time basis (such as the

OTC Bulletin Board (‘‘OTCBB’’) or the

electronic pink sheets); (2) to require

that members that display priced

quotations for the same non-Nasdaq

security in two or more quotation

mediums that permit quotation updates

on a real-time basis display the same

priced quotations for the security in

each quotation medium; (3) to eliminate

the requirement that a member indicate

on the order ticket for each transaction

in a non-Nasdaq security the name of

each broker-dealer contacted and the

quotations received, if two or more

priced quotations are displayed and

NASD Regulation has access, on a

historical basis, to the quotation data;

and (4) to define the terms inter-dealer

quotation system and quotation medium

for the purposes of the proposed rule

change.

Below is the text of the proposed rule

change. Proposed new language is in

italics; proposed deletions are in

brackets.

2320. Best Execution and

Interpositioning

(a) through (f) No Change.

(g)(1) Unless two or more priced

quotations for a non-Nasdaq security (as

defined in the Rule 6700 Series) are

displayed in an inter-dealer quotation

system that permits quotation updates

on a real-time basis, [I]in any

transaction for or with a customer

pertaining to the execution of an order

in a non-Nasdaq security [(as defined in

the Rule 6700 Series)], a member or

person associated with a member, shall

contact and obtain quotations from three

dealers (or all dealers if three or less) to

determine the best inter-dealer market

for the subject security.

(2) Members that display priced

quotations on a real-time basis for a

non-Nasdaq security in two or more

quotation mediums that permit

quotation updates on a real-time basis

must display the same priced quotations

for the security in each medium.

(3) For purposes of this paragraph, the

term ‘‘inter-dealer quotation system’’

means any system of general circulation

to brokers or dealers that regularly

disseminates quotations of identified

brokers or dealers.

(4) For purposes of this paragraph, the

term ‘‘quotation medium’’ means any

inter-dealer quotation system or any

publication or electronic

communications network or other

device that is used by brokers or dealers

to make known to others their interest

in transactions in any security,

including offers to buy or sell at a stated

price or otherwise, or invitations of

offers to buy or sell.

(5) Pursuant to the Rule 9600 Series,

the staff, for good cause shown, after

taking into consideration all relevant

factors, may exempt any transaction or

classes of transactions, either

unconditionally or on specified terms,

from any or all of the provisions of this

paragraph if it determines that such

exemption is consistent with the

purpose of this Rule, the protection of

investors, and the public interest.

* * * * *

3110. Books and Records

(a) No Change

(b)(1) No Change

(b)(2) A person associated with a

member shall indicate on the

memorandum for each transaction in a

non-Nasdaq security, as that term is

defined in the Rule 6700 Series, the

name of each dealer contacted and the

quotations received to determine the

best inter-dealer market; however, the

requirements of this subparagraph shall

not apply if two or more priced

quotations for the security are displayed

in an inter-dealer quotation system, as

defined in Rule 2320(g), that permits

quotation updates on a real-time basis

for which NASD Regulation has access

to historical quotation information.

* * * * *

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

NASD Regulation included statements

concerning the purposes 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.

NASD Regulation has prepared

summaries, set forth in Sections A, B,

and C below, of the most significant

aspects of such statements.