Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices 10415

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

2Securities Exchange Act Release No. 35212,

International Series Release No. 767 (January 10,

1995), 60 FR 3687).

3A steering committee of GCN participants

working with ISCC selected Standard and Westpac

to become GCN service providers.

4Standard was established in 1862. Standard’s

Securities Services Division provides

comprehensive services to over three hundred

foreign banks, stockbrokers, and custodian

accounts. Standard also is positioned through their

subsidiary, Stanbic Bank, to provide clearance and

settlement services in other southern and central

African countries. ISCC has informed the

Commission that Standard meets the requirements

under Rule 17f–5 under the Investment Company

Act of 1940 to be an eligible foreign custodian.

Standard currently manages in excess of 30 billion

in U.S. dollars.

5Westpac was established in 1944. Westpac

currently provides custodial and securities

settlement services to over 500 local and

international clients. ISCC has informed the

Commission that Westpac is qualified as an eligible

foreign custodian under Rule 17f–5 under the

Investment Company Act of 1940. Westpac manages

over 50.2 billion in Australian dollars in assets

under custody.

6The Society for Worldwide Interbank Financial

Telecommunication (‘‘S.W.I.F.T.’’) operates a secure

data communication and processing system which

enables thousands of financial institutions in more

than 100 countries to communicate with each other

24 hours a day and facilitates the sending in excess

of 500 million messages annually.

7The International Organization for

Standardization (‘‘ISO’’) was founded in 1949 to

promote standards worldwide. ISO 7775, the

standard for international securities messages, was

developed in close cooperation with S.W.I.F.T. It

was first published in 1984. S.W.I.F.T. has assumed

responsibility for maintenance of the standard.

8Currently, participants receive a confirmation

that ISCC has received the data. The proposal

eliminates the sending of the confirmation.

9S.W.I.F.T. automatically verifies the identity of

the sending party.

10Additionally, S.W.I.F.T., instead of ISCC, will

verify the number of records transmitted.

3. ‘‘Qualified organizations’’ pursuant

to section 170(h)(3) of the Internal

Revenue Code of 1986 (26 U.S.C.

170(h)(3)).

Written notices of serious interest

must be submitted in the following

form:

NOTICE OF SERIOUS INTEREST

RE: [insert name of property]

Federal Register Publication Date: lllll

[insert Federal Register publication date]

1. Entity name.

2. Declaration of eligibility to submit

Notice under criteria set forth in the Coastal

Barrier Improvement Act of 1990, P.L. 101–

591, section 10(b)(2), (12 U.S.C. 1441a–

3(b)(2)), including, for qualified

organizations, a determination letter from the

United States Internal Revenue Service

regarding the organization’s status under

section 170(h)(3) of the Internal Revenue

Code of 1986 (26 U.S.C. 170(h)(3)).

3. Brief description of proposed terms of

purchase or other offer for all or any portion

of the property (e.g., price, method of

financing, expected closing date, etc.).

4. Declaration of entity that it intends to

use the property for wildlife refuge,

sanctuary, open space, recreational,

historical, cultural, or natural resource

conservation purposes (12 U.S.C. 1441a–

3(b)(4)), as provided in a clear written

description of the purpose(s) to which the

property will be put and the location and

acreage of the area covered by each

purpose(s) including a declaration of entity

that it will accept the placement, by the RTC,

of an easement or deed restriction on the

property consistent with its intended

conservation use(s) as stated in its notice of

serious interest.

5. Authorized Representative (Name/

Address/Telephone/Fax).

List of Subjects

Environmental protection.

Dated: February 17, 1995.

Resolution Trust Corporation.

William J. Tricarico,

Assistant Secretary.

[FR Doc. 95–4477 Filed 2–23–95; 8:45 am]

BILLING CODE 6714–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–35392; International Series

Release No. 786; File No. SR–ISCC–94–6]

Self-Regulatory Organizations;

International Securities Clearing

Corporation; Order Granting Approval

of Proposed Rule Change Relating to

the Global Clearance Networking

System

February 16, 1995.

On December 17, 1994, International

Securities Clearing Corporation

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

Exchange Commission (‘‘Commission’’)

a proposed rule change pursuant to

Section 19(b)(1) of the Securities

Exchange Act of 1934 (‘‘Act’’).1 The

Commission published notice of the

proposed rule change in the Federal

Register on January 18, 1995.2 No

comments have been received on the

notice. As discussed below, the

Commission is approving the proposed

rule change.

I. Description

Pursuant to ISCC’s Rule 50, ISCC has

established a foreign clearing,

settlement, and custody service known

as the Global Clearance Networking

(‘‘GCN’’) service. Currently, Citibank,

N.A. is the sole provider of GCN

services. The proposed rule change adds

two additional GCN service providers:

Standard Bank of South Africa

(‘‘Standard’’) and Westpac Custodian

Nominees Limited of Australia

(‘‘Westpac’’).3 Standard will offer to

ISCC members clearance, settlement,

and custody services in South Africa.4

Westpac will offer to ISCC members

clearance, settlement, and custody

services in Australia.5 In order to obtain

access to Standard’s services or

Westpac’s services, ISCC members will

need to enter into individual agreements

with Standard or Westpac.

Both Standard and Westpac have

entered into an agreement with ISCC

pursuant to which they agree to provide

access to clearing, settlement, and

custody services to eligible GCN

participants at reduced prices. ISCC has

not provided any volume guarantees to

either of these banks, and each of the

banks are responsible for collection of

fees directly from the participants. The

agreements may be terminated by

mutual agreement of the parties with

ninety days prior notice.

The proposed rule change also

modifies the procedures for using the

GCN service contained in Addendum E

to ISCC’s rules. Currently, participants

can submit data to ISCC through their

office computer’s central processing

unit (‘‘CPU’’) or any personal computer

(‘‘PC’’) connection using an ISCC

universal trade record (‘‘UTR’’) format.

The proposal allows ISCC also to accept

data submitted via S.W.I.F.T.6 and to

accept data in ISO 7775 format.7 If the

data is not received in ISO 7775 format,

ISCC will convert the data into this

format for transmission to the service

provider.

Data submitted via PC or CPU is

routed through ISCC’s Datatrak system

to validate the sender’s identity against

ISCC‘s masterfile prior to the validation

and edit process.8 Data submitted via

S.W.I.F.T. will go directly to the

validation and edit process.9

Information that does not pass the

validation or edit process will be

rejected, and the participant will be

required to resubmit the data.

Data will be routed to the service

provider using the method required by

the service provider. In general, ISCC

will receive confirmation that the data

has been received by the service

provider. If the data is sent using

S.W.I.F.T., ISCC only will receive

confirmation that the data was

transmitted.10 If the service provider is

unable to process the data, the service

provider will contact the participant

directly. Each day, the service provider

will provide reports on behalf of the

participants’ accounts to ISCC which

ISCC will retransmit to the participants.

II. Discussion

The Commission believes the

proposed rule change is consistent with

Section 17A of the Act and, therefore, is
10416 Federal Register / Vol. 60, No. 37 / Friday, February 24, 1995 / Notices

11 15 U.S.C. 78q–1(b)(3)(F) (1988).

12Securities Exchange Act Release 26812 (May

12, 1989), 54 FR 21691. 1 15 U.S. C. 78s(b)(1) (1988).

2 15 U.S.C. 78q–1(b)(3)(D) (1988).

3 15 U.S.C. 78s(b)(3)(A)(ii) (1988).

4 17 CFR 240.19b–4(e)(2) (1994).

approving the proposal. Specifically, the

Commission believes the proposal is

consistent with Section 17A(b)(3)(F)11

of the Act in that it promotes the prompt

and accurate clearance and settlement of

securities transactions.

In the initial order granting ISCC

temporary registration as a clearing

agency, the Commission stated that the

development of efficient and

comparable automated national and

international clearance, settlement, and

payment systems is one of the more

important international goals.12 The

Commission noted that without

established international systems,

broker-dealers and their institutional

customers often are forced to devote

substantial resources to each task

related to trade settlement and must

deliver securities by physical means.

The GCN service offers participating

ISCC members advantages in securities

processing including central access for

processing trades, standardized

operating procedures, receipt of uniform

reports on their trades, and reduced

prices due to economies of scale. The

addition of Westpac and Standard as

GCN providers gives ISCC participants

access to settlement services in areas not

currently covered by the GCN service

and thus increases the utility of the GCN

service. The Commission also believes

that revising the GCN procedures to

permit the use of the ISO format is

beneficial as another step in the

standardization of the international

clearance of trades. By accepting trade

data through S.W.I.F.T., ISCC may

provide enhanced access to the system.

III. Conclusion

For the reasons stated above, the

Commission finds that the proposed

rule change is consistent with Section

17A of the Act.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

ISCC–94–06) be, and hereby is,

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–4516 Filed 2–23–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35390; File No. SR–MBS–

95–02]

Self-Regulatory Organizations; MBS

Clearing Corporation; Notice of Filing

and Immediate Effectiveness of

Proposed Rule Change Establishing

Fees for the Electronic Pool

Notification Service

February 16, 1995.

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

Securities Exchange Act of 1934

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

February 8, 1995, the MBS Clearing

Corporation (‘‘MBS’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–MBS–95–02) as

described in Items I, II, and III below,

which Items have been prepared

primarily by MBS. 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 establishes

fees for the Electronic Pool Notification

(‘‘EPN’’) service (attached as Exhibit A)

and makes certain technical changes to

the EPN procedures to accommodate the

establishment of EPN fees.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

MBS 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. MBS has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.

(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 establish fees for the EPN

service and make certain technical

changes to the EPN procedures to

accommodate the establishment of EPN

fees. Specifically, MBS is establishing

three separate types of fees for EPN

users: message processing fees, access

fees, and telecommunication circuit

charges. EPN users will be charged for

EPN services in accordance with the

EPN Schedule of Charges effective

February 9, 1995, which is the Public

Securities Association Class A pool

notification day. The fees are payable

monthly on the appropriate PSA Class

Settlement Date as determined by MBS

from time to time.

MBS believes that the proposed rule

change is consistent with Section

17A(b)(3)(D) of the Act 2 and the rules

and regulations thereunder in that it

provides for the equitable allocation of

reasonable dues, fees, and other charges

among its participants.

(B) Self-Regulatory Organization’s

Statements on Burden on Competition

MBS does not believe that the

proposed rule change will impose any

burden on competition 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

MBS advised EPN users of the

proposed rule change at a meeting held

on January 25, 1995. No written

comments have been received. MBS will

notify the Commission of any written

comments received by MBS.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become

effective pursuant to Section

19(b)(3)(A)(ii) of the Act 3 and pursuant

to Rule 19b–4(e)(2) promulgated

thereunder 4 because the proposed rule

change establishes a due, fee, or other

charge imposed by MBS. At any time

within sixty days of the filing of such

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 purpose of the Act.

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