Federal Register / Vol. 60, No. 239 / Wednesday, December 13, 1995 / Notices 64083

1 15 U.S.C. 78s(b)(1) (1988).

2Securities Exchange Act Release No. 36435

(October 30, 1995), 60 FR 56082.

3The Risk Management Committee provides

advice to GSCC on the creditworthiness of

individual applicants for netting system

membership, on the assessment of the financial

status of current netting system members, and on

market conditions affecting the government

securities market.

4 15 U.S.C. 78q–1(b)(3)(F) (1988).

5 17 CFR 200.30–3(a)(12) (1994).

1 15 U.S.C. § 78s(b)(1) (1988).

2Letter from Anthony H. Davidson, MBSCC, to

Michele J. Bianco, Division of Market Regulation,

Commission (November 1, 1995).

3The Commission has modified parts of these

statements.

Room 5315, Washington, DC 20415–

0001, (202) 606–1000.

SUPPLEMENTARY INFORMATION: We invite

interested persons and organizations to

submit written comments. Mail or

deliver your comments to Mr. Douglas

K. Walker at the address shown above.

Written comments should be received

by December 8 in order to be considered

at the December 13 meeting.

Office of Personnel Management.

James B. King,

Director.

[FR Doc. 95–30296 Filed 12–12–95; 8:45 am]

BILLING CODE 6325–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–36559; File No. SR–GSCC–

95–04]

Self-Regulatory Organizations;

Government Securities Clearing

Corporation; Order Approving a

Proposed Rule Change Modifying

GSCC’s By-laws To Provide

Indemnification Protection for

Members of Committees

December 6, 1995.

On August 25, 1995, the Government

Securities Clearing Corporation

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

Exchange Commission (‘‘Commission’’)

the proposed rule change (File No. SR–

GSCC–95–04) pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’) 1 Notice of the proposal

was published in the Federal Register

on November 6, 1995.2 No comment

letters were received. For the reasons

discussed below, the Commission is

granting approval of the proposed rule

change.

I. Description

GSCC has amended its by-laws to

provide indemnification protection for

members of committees established by

GSCC’s Board of Directors who are not

officers or directors of GSCC. Article IV,

Section 4.1, of GSCC’s by-laws currently

requires that GSCC indemnify to the full

extent permitted by law a present or

past director or officer of GSCC who is

made a party to any action or

proceeding, whether civil or criminal,

by reason of the fact that such person is

or was a director or officer of GSCC.

The indemnification obligation under

Article IV, Section 4.1, did not extend

to members of committees established

by GSCC’s Board of Directors if the

members of the committees were not

directors or officers of GSCC. Thus, for

example, the indemnification protection

in GSCC’s by-laws did not cover most of

the members of GSCC’s Risk

Management Committee who are senior

credit officers of GSCC member firms.3

The amendment provides members of

Board-established committees with

indemnification protection comparable

to the protection currently given to

GSCC’s directors and officers.

II. Discussion

Section 17A(b)(3)(F) 4 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

GSCC’s proposed rule change is

consistent with the requirements of

Section 17A(b)(3)(F) because the

proposal, by affording appropriate

protection to committee members,

should enable GSCC to obtain the

services of qualified individuals on its

Board-established committees and

should help ensure that such

individuals may act freely and

objectively in the exercise of their

duties. By enhancing the selection and

objectivity of its committee members,

GSCC’s committees may better fulfill

their obligations to limit credit and

market risks to GSCC’s system thus

assuring GSCC’s ability to safeguard

securities and funds under its control.

III. Conclusion

On the basis of the foregoing, the

Commission finds that the proposed

rule change is consistent with the

requirements of the Act and in

particular Section 17A of the Act and

the rules and regulations thereunder.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

GSCC–95–04) be and hereby is

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–30301 Filed 12–2–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–36557; File No. SR–

MBSCC–95–8]

Self-Regulatory Organizations; MBS

Clearing Corporation; Notice of Filing

Relating to Eligibility Changes for

Settlement Balance Order Settlement

December 6, 1995.

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

Securities Exchange Act of 1934

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

October 17, 1995, MBS Clearing

Corporation (‘‘MBSCC’’) 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 MBSCC. On

November 1, 1995, MBSCC filed an

amendment to its proposed rule

change.2 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 consists of

modifications to MBSCC’s Procedures

relating to eligibility for Settlement

Balance Order (SBO) settlement.

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.3

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The proposed rule change will modify

MBSCC’s Procedures relating to

eligibility for SBO settlement.

Specifically, the purpose of the

proposed rule change is to enable

MBSCC to reject trades destined for SBO

settlement between multiple accounts of

a participant as well as between a

participant’s account and an account of