Federal Register / Vol. 62, No. 194 / Tuesday, October 7, 1997 / Notices 52369

6 15 U.S.C. 78q–1.

7 15 U.S.C. 78q–1(b)(3)(F). 8 17 CFR 200.30–3(a)(12).

deposited with DCC no later than 5:00

p.m. on the applicable business day. If

additional margin is required, DCC may

apply towards a participant’s exposures

on overnight repos excess margin

maintained by the participant with DCC

which is not then being used to

collateralize other margin obligations to

DCC. However, DCC may not apply a

participant’s core margin amount

maintained with DCC towards other

margin obligations to DCC arising from

options transactions or term repros.

In connection with the proposed rule

change, DCC agreed that during the

temporary approval period it will

submit to the Commission on a monthly

basis reports detailing the operation of

the new margining system for overnight

repos. DCC instituted the new

margining system on July 1, 1997, and

has been providing reports to the

Commission since that time. In response

to a request from the Commission, DCC

has amended the format of the report to

provide additional information to the

Commission. The first report

incorporating the revised format was

filed by DCC with the Commission in

September 1997.

DCC believes the proposed extension

of the temporary approval of the

proposed rule change is consistent with

the requirements of Section 17A of the

Act 6 and the rules and regulations

promulgated thereunder because the

proposed rule change will better enable

DCC to safeguard the funds and

securities under its possession and

control by amending DCC’s procedures

to assure that it has adequate collateral

to address a participant’s default or

insolvency.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

DCC does not believe that the

proposed rule change will impact 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

Comments were neither solicited nor

received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Section 17A(b)(3)(F) 7 of the Act

requires that the rules of a clearing

agency be designed to assure the

safeguarding of securities and funds

which are in the custody or control of

the clearing agency or for which it is

responsible. The Commission believes

that DCC’s proposed rule change is

consistent with DCC’s obligations under

the Act because the proposal

establishes: (1) a minimum core margin

requirement to reflect DCC’s exposure to

each participant’s overnight repo

activity and (2) an intraday margin

requirement that is triggered if a

participant’s mark-to-market exposure is

valued at more than 65 percent of the

core requirement. Therefore, the

Commission believes that the proposal

should provide to DCC margin in an

amount that will assist DCC in meeting

its obligation to safeguard securities and

funds.

Currently, DCC has operated its new

margining system for only three months.

Therefore, the Commission believes that

it is appropriate to extend temporary

approval of the proposal in order that

the Commission and DCC will have

opportunity to further monitor the

effectiveness of the new system in

practice. Accordingly, the Commission

is temporarily approving the proposed

rule change through March 31, 1998.

During this temporary approval period,

DCC should continue to submit on a

monthly basis reports detailing its

analysis of its overnight repo margining

system.

DCC has requested that the

Commission find good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of the filing. The

Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of filing because

accelerated approval will allow DCC to

continue to use its overnight repo

margining procedures without

interruption when the current

temporary approval period expires on

September 30, 1997.

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 the principal

office of DCC. All submissions should

refer to the File No. SR–DCC–97–11 and

should be submitted by October 28,

1997.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

DCC–97–11) be, and hereby is, approved

through March 31, 1998.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–26520 Filed 10–6–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

State of Michigan

[Amendment #3]

Declaration of Disaster #2965

In accordance with information

received from the Federal Emergency

Management Agency dated September

19, 1997, the above-numbered

Declaration is hereby amended to

extend the deadline for filing

applications for physical damage as a

result of this disaster to October 7, 1997.

All other information remains the

same, i.e., the deadline for filing

applications for economic injury is

April 13, 1998.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: September 26, 1997.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 97–26512 Filed 10–6–97; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

Declaration of Disaster #2982; State of

New Jersey

As a result of the President’s major

disaster declaration on September 23,

1997, I find that Atlantic County in the

State of New Jersey constitutes a

disaster area due to damages caused by

severe storms and flooding which

occurred August 20–21, 1997.

Applications for loans for physical