10602 Federal Register / Vol. 62, No. 45 / Friday, March 7, 1997 / Notices

2The Commission has modified the text of the

summaries prepared by NSCC.

3Securities Exchange Act Release No. 33145

(November 3, 1993), 58 FR 59766 [File No. SR–

NSCC–93–07] (order approving proposed rule

change relating to a netting contract and limited

cross guaranty agreement (‘‘NSCC-DTC

Agreement’’)).

4Securities Exchange Act Release No. 35809

(June 5, 1995), 60 FR 30912 [File No. SR–NSCC–

93–06] (order approving proposed rule change

establishing CMS).

5The rules of the International Securities Clearing

Corporation (Rule 1—Definition of ‘‘Limited CrossGuaranty Agreement’’), the MBS Clearing

Corporation (Rule 1—Definition of ‘‘Limited CrossGuaranty Agreement’’), and the Government

Securities Clearing Corporation (Rule 1—Definition

of ‘‘Limited Cross-Guaranty Agreement’’) permit

entering into cross-guaranty agreements with

futures clearing entities.

6 17 CFR 200.30–3(a)(12).

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

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change revises

NSCC’s rules to modify the definition of

‘‘Clearing Agency Cross-Guaranty

Agreement’’.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

NSCC 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. NSCC 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

In 1993, the Commission approved a

proposed rule change filed by NSCC to

establish a Netting Contract and Limited

Cross-Guaranty Agreement between it

and The Depository Trust Company

(‘‘DTC’’).3 In connection with the

implementation of the NSCC–DTC

Agreement, a definition of a ‘‘Clearing

Agency Cross-Guaranty Agreement’’ was

added to NSCC’s rules. The definition

was limited to registered clearing

agencies because NSCC and DTC

believed that only registered clearing

agencies would enter into such

arrangements.

In 1995, the Commission approved a

proposed rule change filed by NSCC to

establish the Collateral Management

Service (‘‘CMS’’).4 In order to provide

their participants with a more accurate

and broader picture of the aggregate

amount of their clearing fund deposits

and collateral, NSCC and other

participating clearing entities

recognized that other types of clearing

entities should be included in the CMS.

This broad category of participating

entities is reflected in Rule 53 (CMS

Rule) of NSCC’s rules which includes

clearing organizations affiliated with or

designated by contract markets trading

specific futures products under the

oversight of the Commodity Futures

Trading Commission. NSCC believes the

rationale of providing a broad range of

clearing entities in the scope of the CMS

should be similarly applied to NSCC’s

ability to enter into limited crossguaranty agreements.5 Therefore, the

purpose of the proposed rule change is

to modify the definition of ‘‘Clearing

Agency Cross-Guaranty Agreement’’ to

permit NSCC to enter into limited cross

guaranty agreements with the same

broad category of clearing entities as

provided in the CMS.

NSCC believes the proposed rule

change is consistent with the

requirements of Section 17A of the Act

and the rules and regulations

thereunder because it makes technical

modifications to rules so that they

coincide with intended practice.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

NSCC 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

No written comments have been

solicited or received. NSCC will notify

the Commission of any written

comments received by NSCC.

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 DTC 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.

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 also will be available for

inspection and copying at the principal

office of NSCC. All submissions should

refer to File No. SR–NSCC–96–20 and

should be submitted by March 28, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–5671 Filed 3–6–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38352; File No. SR–NSCC–

97–01]

Self-Regulatory Organizations;

National Securities Clearing

Corporation; Notice of Filing of a

Proposed Rule Change To Eliminate

NSCC’s Securities Transfer Service

February 28, 1997.

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

Securities Exchange Act of 1934

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

January 22, 1997, the National

Securities Clearing Corporation

(‘‘NSCC’’) filed with the Securities and

Exchange Commission (‘‘Commission’’)

the proposed rule change (File No. SR–

NSCC–97–01) as described in Items I, II,

and III below, which items have been

prepared primarily by NSCC. 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 purpose of the proposed rule

change is to permit NSCC to eliminate

its Securities Transfer Service (‘‘STS’’).
Federal Register / Vol. 62, No. 45 / Friday, March 7, 1997 / Notices 10603

2The Commission has modified the text of the

summaries submitted by NSCC.

3STS is commonly referred to as the National

Transfer Service.

4The Group of Thirty, established in 1978, is an

independent, non partisan organization composed

of international financial leaders whose focus is on

international economic and financial issues. In

March 1989, the Group of Thirty issued a report

containing nine recommendations to improve

clearance and settlement systems.

5 15 U.S.C. 78q–1. 6 17 CFR 200.20–3(a)(12).

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

NSCC included statements concerning

the purpose of and basis for the

proposed rule change and discussed any

comments that it received on the

proposed rule change. The text of these

statements may be examined at the

places specified in Item IV below. NSCC

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 permit NSCC to eliminate

its STS.3 NSCC Rule 42, which

established STS, will be deleted. STS

was originally developed by NSCC in

1976 to provide assistance with the

manual processing of items that were

ineligible at The Depository Trust

Company (‘‘DTC’’). It was established as

an optional service to be used by full

settling participants for the high volume

transfer of DTC ineligible items and for

the high volume transfer and

reregistration of physical securities

through various transfer agencies. STS

was also designed to deliver book

closing items, legal transfers, and

accommodation transfers. Once STS is

eliminated, participants will process

items directly through the appropriate

transfer agent.

The STS process is primarily manual.

STS participants first physically send

envelopes containing securities

certificates to an NSCC office. Pursuant

to the participant’s transfer instructions,

the envelopes are next forwarded by

NSCC to the offices of the indicated

transfer agents, which are located

throughout the United States and

Canada. Upon completion of the

reregistration, the transfer agents return

the certificates to NSCC’s office for pick

up.

A review of STS’ volume during the

1980s shows that STS processed

approximately 670 securities certificates

per day. As a high volume service, STS

was able to take advantage of economies

of scale for the broker-dealer

community. However, after 1987

volume fell dramatically because DTC

began increasing the number of DTC

eligible securities and because the

Group of 30 initiatives caused the

brokerage industry to move towards a

book-entry registration environment

which decreased the movement of

physical securities.4 By 1994, STS’

volume fell 82% to 120 securities

certificates processed per day. The

downward trend continues today. STS

processed just over twenty-five items

per day in October 1996 or about an

80% decrease from its 1994 volume and

a 96% decrease from its 1980s volume.

NSCC expects to eliminate STS thirty

business days after notification to

participants that this proposed rule

change is approved by the Commission.

NSCC believes the proposed rule change

is consistent with the requirements of

Section 17A of the Act 5 and the rules

and regulations thereunder because the

rule proposal will facilitate the prompt

and accurate clearance and settlement of

securities transactions.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

NSCC 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 have been

solicited or received. NSCC will notify

the Commission of any written

comments received by NSCC.

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 NSCC 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.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 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, NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of NSCC. All submissions should

refer to the file number SR–NSCC–97–

01 and should be submitted by March

28, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–5672 Filed 3–6–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[License No. 06/06–0288]

Wesbanc Ventures, Ltd; Notice of

License Surrender

Notice is hereby given that Wesbanc

Ventures, Ltd. (‘‘WBV’’), 6411 Rutgers

Street, Houston, Texas 77005, has

surrendered its license to operate as a

small business investment company

under the Small Business Investment

Act of 1958, as amended (‘‘the Act’’).

WBV was licensed by the Small

Business Administration on May 28,

1985.

Under the authority vested by the Act

and pursuant to the regulations

promulgated thereunder, the surrender

of the license was accepted on

December 12, 1996, and accordingly, all

rights, privileges, and franchises derived

therefrom have been terminated.

(Catalog of Federal Domestic Assistance

Program No. 59.011, Small Business

Investment Companies.)