[Federal Register Volume 62, Number 158 (Friday, August 15, 1997)]
[Notices]
[Pages 43763-43764]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21682]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-38911; File No. SR-DCC-97-08]


Self-Regulatory Organizations; Delta Clearing Corp.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Relating 
to the Amendment of Fees Charged for Options

August 8, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 43764]]

(``Act''),\1\ notice is hereby given that on July 30, 1997, Delta 
Clearing Corp. (``DCC'') 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 primarily by 
DCC. 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 purpose of the proposed rule change is to amend DCC's fee 
schedule for the clearance of options on U.S. Government securities.

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

    In its filing with the Commission, DCC included statements 
concerning the purpose of and statutory basis for the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. DCC had 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 parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Currently, DCC charges each party to an options contract submitted 
to DCC for settlement a fee based on the maturity date of the option. 
Each participant pays five dollars for options that mature within 
fourteen days, ten dollars for options that mature within fifteen to 
ninety days, and fifteen dollars for options that mature within ninety-
one days to two years.
    The proposed rule change amends DCC's fee schedule for the 
clearance of options. Each participant will pay a fee of three dollars 
for options that mature within thirty-three days, four dollars for 
options that mature within thirty-four to sixty-three days, five 
dollars for options that mature within sixty-four to 123 days, and 
seven dollars for options that mature within 124 days to two years. In 
addition, participants will be charged all out of pocket charges 
including but not limited to charges by Federal Reserve banks for 
delivery of securities and money through FedWire and any charges by 
DCC's clearing bank.
    DCC believes that the proposed rule change is consistent with 
Section 17A(b)(3)(D) of the Act,\3\ which requires that the rules of a 
registered clearing agency provide for equitable allocation of 
reasonable dues, fees, and other charges for services which it provides 
to its participants. DCC believes that the proposed rule change will 
result in increased utilization of its clearing services thereby 
resulting in more securities transactions being cleared and settled 
through a registered clearing agency environment.
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    \3\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    DCC 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

    Comments were neither solicited nor received.

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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by DCC, it has become effective pursuant 
to Section 19(b) (3)(A)(ii) of the Act \4\ and Rule 19b-4(e)(2) 
thereunder.\5\ At any time within sixty days of the filing of the 
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.
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    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b(e)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. 
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, N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at DCC. All submissions should refer to the 
File No. SR-DCC-97-08 and should be submitted by September 5, 1997.

    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. 97-21682 Filed 8-14-97; 8:45 am]
BILLING CODE 8010-01-M