18864 Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Notices

9 17 CFR 200.30–3(a)(12) (1994).

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

2Under MCC’s and MSTC’s rules, their Risk

Assessment Committees have substantial authority.

This includes, among other things, the authority to

determine: (1) Whether a participant that has failed

to make timely payment to MCC should continue

as a participant, (2) whether a participant has been

responsible for fraudulent or dishonest conduct,

and (3) whether a participant poses a financial risk

to MCC. See MCC Rules, Article VIII, Rule 2; MSTC

Rules, Article V, Rule 2.

3 15 U.S.C. 78q–1 (1988).

as the Commission may designate up to

90 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 the Exchange 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. Copies of such filing

will also be available for inspection and

copying at the principal office of the

CBOE. All submissions should refer to

File No. SR–CBOE–95–20 and should be

submitted by May 4, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Jonathan G. Katz,

Secretary.

[FR Doc. 95–9077 Filed 4–12–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35569; File Nos. SR–MCC–

95–01 and SR–MSTC–95–04]

Self-Regulatory Organizations;

Midwest Clearing Corporation and

Midwest Securities Trust Co.; Notice of

Proposed Rule Changes Relating to

Indemnification of Committees

April 5, 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 and January 14, 1995,

respectively, the Midwest Clearing

Corporation (‘‘MCC’’) and the Midwest

Securities Trust Co. (‘‘MSTC’’) filed

with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule changes as described in

Items I, II, and III below, which items

have been prepared mainly by MCC and

MSTC, self-regulatory organizations

(‘‘SROs’’). The Commission is

publishing this notice to solicit

comments on the proposed rule changes

from interested persons.

I. Self-Regulatory Organizations’

Statement of the Terms of Substance of

the Proposed Rule Changes

The proposed rule changes will

amend MCC’s and MSTC’s mandatory

indemnifications requirements, which

are set forth in Article 6, Section 1 of

MCC’s By-Laws and Article VI, Section

1 of MSTC’s By-Laws by requiring MCC

and MSTC to indemnify members of

their committees.

II. Self-Regulatory Organizations’

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Changes

In their filings with the Commission,

MCC and MSTC included statements

concerning the purpose of and basis for

the proposed rule changes 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.

MCC and MSTC have prepared

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

and (C) below, of the most significant

aspects of such statements.

(A) Self-Regulatory Organizations’

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Changes

MCC and MSTC currently have

provision in their By-Laws (i.e., Article

6, Section 1 of the MCC’s By-Laws and

Article VI, Section 1 of MSTC’s ByLaws) that requires MCC and MSTC to

indemnify, to the fullest extent

permitted by the General Corporation

Law of Delaware, any person who was

or is threatened to be made a party to

any threatened, pending, or completed

action, suit or proceeding, whether civil,

criminal, administrative, or

investigative, by reason of the fact that

he is or was a director or officer of MCC

or of MSTC or was or is serving at

MCC’s or MSTC’s request as a director

or officer of another corporation,

partnership, joint venture, trust, or other

committee. The purpose of the proposed

rule changes is to give members of

MCC’s and MSTC’s committees,

including members of their Risk

Assessment Committees, the same

indemnification protection that is

currently given to MCC’s and MSTC’s

directors and officers.2

MCC and MSTC believe that the

proposed rule changes are consistent

with Section 17A of the Act 3 in that

they will remove impediments from

MCC’s and MSTC’s efforts to attract

competent persons to serve on their

committees, such as their Risk

Assessment Committees. Thus, MCC

and MSTC believe that the proposed

rule changes will help them in

providing fair procedure with respect to:

(1) The disciplining of participants, (2)

the denial of participation to any person

seeking participation, and (3) the

prohibition or limitation by MCC or

MSTC of any person with respect to

access to services.

(B) Self-Regulatory Organizations’

Statement on Burden on Competition

MCC and MSTC believe that no

burden will be placed on competition as

a result of the proposed rule changes.

(C) Self-Regulatory Organizations’

Statement on Comments on the

Proposed Rule Changes Received From

Members, Participants or Others

MCC and MSTC have neither solicited

nor received any comments on this rule

proposal.

III. Date of Effectiveness of the

Proposed Rule Changes 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 the self-regulatory

organizations consent, the Commission

will:

(A) By order approve the proposed

rule changes or

(B) Institute proceedings to determine

whether the proposed rule changes

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
Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Notices 18865

4 17 CFR 200.30–3(a)(12) (1994).

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

2For the purposes of this rule proposal, NYSE is

using the term ‘‘side’’ to mean a purchase or a sale

that consists of two or more separate transactions

made with the same firm, in the same security, at

the same price, on the same side of the market, and

which have been added together and submitted for

comparison as one item. NYSE refers to this process

as summarization.

3For background on NYSE’s trade date

comparison procedure, refer to Securities Exchange

Act Release No. 34153 (June 3, 1994), 59 FR 30071

[File No. SR–NYSE–94–08] (order approving

proposed rule change).

4For the purpose of this rule proposal, the term

‘‘qualified clearing agency’’ means a clearing agency

that: (1) is registered under the Act, (2) maintains

facilities through which NYSE’s trades may be

compared or settled, (3) has agreed to supply NYSE

with data in connection with NYSE’s compliance

duties under the Act, and (4) has agreed to establish

rules and procedures to facilitate the comparison of

transactions as provided in NYSE Rule 130 (i.e.,

NYSE’s principal rule governing trade comparison).

NYSE Rule 130, Supplementary Material .10 and

NYSE Rule 132, Supplementary Material .10.

5 15 U.S.C. 78q–1(f)(b)(4) (1988).

6 15 U.S.C. 78s(b)(3)(A)(ii) (1988).

7 17 CFR 204.19b–4(e)(4) (1994).

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of the

submissions, all subsequent

amendments, all written statements

with respect to the proposed rule

changes that are filed with the

Commission, and all written

communications relating to the

proposed rule changes 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 and at the principal offices of

MCC and MSTC. All submissions

should refer to File Nos. SR–MCC–95–

01 and SR–MSTC 95–04 and should be

submitted by May 4, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.4

Jonathan G. Katz,

Secretary.

[FR Doc. 95–9079 Filed 4–12–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35568; File No. SR–NYSE–

95–03]

Self-Regulatory Organizations; New

York Stock Exchange, Inc.; Notice of

Filing and Immediate Effectiveness of

a Proposed Rule Change Relating to

Fees for the Initial Comparison of

Equity Security Trade Sides Submitted

for Comparison Through the On-Line

Comparison System

April 5, 1995.

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

Securities Exchange Act of 1934

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

February 21, 1995, the New York Stock

Exchange, Inc. (‘‘NYSE’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–NYSE–95–03) as

described in Items I, II, and III below,

which Items have been prepared

primarily by NYSE. 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 rule change modifies NYSE’s fee

structure for trade comparison.

Commencing on or about March 1, 1995,

NYSE will charge participants for the

comparison of each side of a trade in an

equity security 2 submitted to it on the

day of the trade (‘‘initial trade data’’)

through its On-Line Comparison System

(‘‘OCS’’). NYSE has not previously

charged for this service.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

NYSE 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. NYSE 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

On August 15, 1994, NYSE began

requiring its clearing members to submit

listed equity comparison data to NYSE’s

OCS within two hours of the time of a

trade’s execution or at two-hour

intervals (e.g., 12:00 noon, 2:00 p.m.,

4:00 p.m., and 6:00 p.m.) on each

business day.3 Under this procedure, by

the end of each trading day NYSE

forwards the day’s initial trade data,

which consists of both compared and

uncompared trades, to a qualified

clearing agency for final processing.4

From August 1994 to date, NYSE has

provided these OCS services to its

clearing members without charge. NYSE

states, however, that its costs for

providing these services have been

rising due to increased usage and that it

now proposes to recoup some of these

additional costs by charging a

processing fee based on the number of

shares per sides. While the NYSE will

continue charging no fee for sides from

one share to 999 shares, the fee for each

side from 1,000 shares to 2,999 shares

will be $0.06, and the fee for each side

for 3,000 shares to any higher amount

will be $0.18. As noted, the NYSE will

commence charging this new fee on or

about March 1, 1995.

NYSE believes the rule change

provides for the equitable allocation of

fees among its members. Therefore,

NYSE believes the rule change is

consistent with the requirements of the

Act and particularly with Section 6(b)(4)

of the Act.5

B. Self-Regulatory Organization’s

Statement on Burden on Competition

NYSE believes that the proposed rule

changes will not impose any burden on

competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants, or Others

NYSE has neither solicited nor

received any written comments on the

proposed rule change.

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 6 and

subparagraph (e)(2) of Rule 19b–4

thereunder because it establishes a due,

fee, or other charge imposed by NYSE.7

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

purposes 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

Commission, and all written

communications relating to the