8074 Federal Register / Vol. 62, No. 35 / Friday, February 21, 1997 / Notices

6 15 U.S.C. 78q–1(b)(3)(F).

7The staff of the Board of Governors of the

Federal Reserve System has concurred with the

Commission’s granting of accelerated approval.

Telephone conversation between John Rudolph,

Board of Governors of the Federal Reserve System,

and Chris Concannon, Staff Attorney, Division of

Market Regulation, Commission (February 13,

1997).

8 17 CFR 200.30–3(a)(12).

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

obligation, Philadep can use any and all

such collateral contained in the

participant’s collateral monitor to

address the default pursuant to

Philadep’s existing default procedures.

Philadep also proposes to clarify and

to amend its SDFS procedures relating

to minimum net debit caps. Currently,

the minimum net debit cap applied to

participants’ accounts is an amount

equal to 50% of the combined Philadep

and SCCP participants funds (a

Philadep-only participant’s minimum

net debit cap is the amount equal to

50% of the Philadep participants fund).

Philadep proposes to establish a

minimum net debit cap formula which

is the lesser of: (1) An amount equal to

50% of the combined Philadep and

SCCP participants funds (a Philadeponly participant’s minimum net debit

cap is an amount equal to 50% of the

Philadep participants fund); or (2) an

amount equal to twice the participant’s

aggregate end-of-day settlement

amounts calculated over the past three

months. The minimum net debit cap

will be recalculated and adjusted on a

monthly basis. Furthermore, Philadep

reserves the right to set an individual

participant’s minimum net debit cap at

a level less than that computed by the

above formulas if Philadep believes that

for risk management purposes the

minimum net debit cap should be

adjusted downward.

Philadep believes the proposed rule

change is consistent with Section 17A of

the Act and the rules and regulations

thereunder because the proposal will

assure the safeguarding of securities and

funds which are in the custody or

control of Philadep or for which it is

responsible.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

Philadep does not believe that the

proposed rule change will impose any

inappropriate 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. Philadep will

notify the Commission of any written

comments received by Philadep.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

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

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 Philadep’s proposed rule change

clarifying certain SDFS procedures is

consistent with Philadep’s obligations

because the proposal should provide

participants with some certainty with

respect to Philadep’s application of

SDFS risk management controls to CNS

activity and failure to settle procedures.

Additionally, the proposed rule change

is consistent with Philadep’s obligations

because the proposal establishes a

second minimum net debit cap formula

which produces a more conservative

minimum net debit cap for certain

participants.

Philadep 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 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

the proposed rule change, which should

clarify certain SDFS procedures that are

currently being applied to participants,

should become effective as soon as

possible.7

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

Room, 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 Philadep. All submissions

should refer to the file number SR–

Philadep–96–15 and should be

submitted by March 14, 1997.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

Philadep–96–15) be, and hereby is,

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–4239 Filed 2–26–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38282; File No. SR–SCCP–

96–06]

Self-Regulatory Organizations; Stock

Clearing Corporation of Philadelphia;

Notice of Filing and Order Granting

Accelerated Approval of a Proposed

Rule Change To Amend and Clarify

Same-Day Funds Settlement

Procedures

February 13, 1997.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

August 6, 1996, the Stock Clearing

Corporation of Philadelphia (‘‘SCCP’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change (File No. SR–

SCCP–96–06) as described in Items I

and II below, which items have been

prepared primarily by SCCP. The

Commission is publishing this notice

and order to solicit comments from

interested persons and to grant

accelerated approval of the proposed

rule change.

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 and clarify SCCP’s

same-day funds settlement (‘‘SDFS’’)

procedures.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for the Proposed Rule

Change

In its filing with the Commission,

SCCP included statements concerning

the purpose of and basis for the

proposed rule change and discussed any

comments they received on the

proposed rule changes. The text of these

statements may be examined at the

places specified in Item IV below. SCCP

has prepared summaries, set forth in
Federal Register / Vol. 62, No. 35 / Friday, February 21, 1997 / Notices 8075

2The Commission has modified the text of the

summaries submitted by SCCP.

3Securities Exchange Act Release Nos. 36875

(February 22, 1996), 61 FR 7846 File No. SR–SCCP–

95–06] and 36876 (February 22, 1996), 61 FR 7841

[SR–Philadep–95–08] (orders granting partial

temporary approval and partial permanent approval

of proposed rule changes to convert to same-day

funds settlement systems) (‘‘SDFS Approval

Orders’’).

4Philadep’s collateral monitor and net debit cap

analysis were structured to incorporate this netting

of SCCP and Philadep settlements. 5 15 U.S.C. 78q–1(b)(3)(F). 6 17 CFR 200.30–3(a)(12).

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

On February 22, 1996, the

Commission granted partial permanent

approval and partial temporary approval

of proposed rule changes filed by SCCP

and the Philadelphia Depository Trust

Company (‘‘Philadep’’) to establish an

SDFS system.3 The purpose of the

proposed rule change is to amend and

clarify certain SDFS procedures relating

to the risk management controls (i.e.,

collateral monitor and net debit cap).

Pursuant to SCCP’s SDFS Approval

Order, SCCP provides each participant

with a settlement amount which is an

aggregate of the participant’s end-of-theday net debits and net credits in its

SCCP and Philadep accounts.4 Because

of this common net settlement feature,

Philadep’s SDFS Approval Order sets

forth that Philadep’s SDFS system risk

management controls would be applied

in a limited manner to SCCP’s

Continuous Net Settlement (‘‘CNS’’)

activity. Specifically, SCCP will not

suspend the processing of a

participant’s CNS activity when the

participant’s collateral monitor is

negative on its net debit cap is

exceeded.

Pursuant to Philadep’s SDFS

Approval Order, a participant’s

activities at SCCP, such as CNS

securities delivered to a SCCP

participant, are included in the

participant’s Philadep collateral

monitor. Additionally, a participant’s

net debit cap is determined by a

participant’s combined net debit history

at Philadep and SCCP, and for purpose

of calculating a participant’s net debit

settlement, Philadep includes net CNS

settlements.

The purpose of the proposed rule

change is to formally restate and clarify

in SCCP’s procedures the limited

applicability of Philadep SDFS risk

management controls on SCCP

participants’ activity. The proposed rule

change also provides that all collateral

derived from any SCCP CNS participant

contained in Philadep’s collateral

monitor may be used by Philadep to

address any settlement default by such

joint participant. Collateral derived from

a SCCP CNS participant generally

includes the participant’s SCCP

participants fund contribution and CNS

securities received.

Furthermore, SCCP authorizes

Philadep to utilize any collateral

derived from a defaulting SCCP/

Philadep participant to address a default

in accordance with Philadep Rule 4(a)

and any subsequent amendments

thereto.

SCCP believes the proposed rule

change is consistent with Section 17A of

the Act and the rules and regulations

thereunder because the proposal should

promote the prompt and accurate

clearance and settlement of securities

transactions.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

SCCP believes that the proposed rule

change will not impose any burden on

competition not permitted by the Act.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Written comments were neither

solicited nor received with respect to

the proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Section 17A(b)(3)(F) of the Act 5

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

hat SCCP’s proposed rule change

clarifying certain SDFS procedures are

consistent with such obligations

because the proposal should provide

participants with some certainty with

respect to SCCP’s application of SDFS

risk management controls to CNS

activity.

SCCP 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 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

the proposal, which should clarify

certain SDFS procedures that are

currently being applied to participants,

should become effective as soon as

possible.

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

Room, 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 SCCP. All submissions should

refer to the file number SR–SCCP–96–06

and should be submitted by March 14,

1997.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

SCPP–96–06) be, and hereby is,

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–4238 Filed 2–20–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Advisory Committee on Veterans

Business Affairs; Reestablishment

The U.S. Small Business

Administration, The Office of Veterans

Affairs, Washington D.C., Central Office,

wishes to submit a statement in the

Federal Register regarding

reestablishment of the Advisory

Committee on Veterans Business Affairs

at the Small Business Administration,

409 3rd St. SW, Washington, DC 20416.

For further information, write or call Joan

McNair, Office of Veterans Affairs, at SBA,

409 3rd St. SW., Washington, DC 20416,

telephone 205–6775.