Federal Register / Vol. 61, No. 97 / Friday, May 17, 1996 / Notices 24995

17 15 U.S.C. § 78q–1(b)(3)(F) (1988). 18 17 CFR 200.30–3(a)(12) (1995).

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

2Letter from James C. Yong, First Vice President

and General Counsel, OCC, to Jerry W. Carpenter,

Assistant Director, Division of Market Regulation

(‘‘Division’’), Commission (February 5, 1996).

3Securities Exchange Act Release No. 36960

(March 13, 1996), 61 FR 11458.

4Letter from James C. Yong, First Vice President

and General Counsel, OCC, to Jerry W. Carpenter,

Assistant Director, Division, Commission (March

19, 1996).

5The Commission has modified the text of the

summaries submitted by OCC.

a daily basis instead of a twenty-day

rolling average basis and may collect

deficiencies at such times and in such

manner as specified by NSCC from time

to time, including immediate collection

of same-day funds.

Nothing in the foregoing rule change

will limit NSCC’s discretion with

respect to placing settling members on

Class A surveillance or requiring

settling members to furnish adequate

assurance of financial responsibility or

operational capability as set forth in

NSCC’s rules and procedures.

II. Discussion

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

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 and generally to

protect investors and the public interest.

The Commission believes the proposed

rule change is consistent with NSCC’s

obligations under the Act because it will

allow NSCC to take particular action to

protect itself, its members, and investors

in situations where settling members

pose an increased risk because of their

involvement in OTC market making.

Under the proposal, NSCC will have

the authority with respect to settling

members who participate in OTC

market making activities or clear for

correspondents that engage in such

activity (1) to place such members on

Class A surveillance, (2) to require such

members to post additional collateral

with NSCC, and (3) to calculate an

alternative clearing fund requirement

for such members when additional risk

factors are present. Collectively, the

higher level of surveillance, the

additional level of collateralization, and

the alternative clearing fund

requirements should help to ameliorate

NSCC’s exposure which in turn should

assist NSCC in fulfilling its obligations

under the Act to safeguard securities

and funds for which it has control of, is

responsible for and, generally, to protect

investors and the public interest.

The Commission is temporarily

approving the proposed rule change

through May 31, 1997, so that NSCC can

gain additional experience in the

surveillance of OTC market makers and

the risks posed by clearing such activity.

NSCC also will be able to gain

experience with the additional

collateralization requirements and

alternative clearing formula

requirements for settling members

subject to Class A surveillance prior to

permanent imposition of these

requirements. Temporary approval also

will afford both the Commission and

NSCC an opportunity to observe

whether the additional collateralization

and alternative clearing fund

requirements adequately protect NSCC,

its members, and investors from the

expected risks of participating in and

clearing OTC market maker activity and

whether adjustments to the procedures

are necessary. Prior to filing a proposed

rule change seeking permanent approval

of the procedures set forth in this

temporary approval order, NSCC shall

present to the Commission a more

detailed report of its findings regarding

the adequacy of the controls and

discussing any changes to be made to

the procedures. During the temporary

approval period, NSCC will from time to

time apprise the Commission on the

operation of the additional

collateralization requirements to enable

the Commission to monitor the

implementation of such requirements.

III. Conclusion

On the basis of the foregoing, the

Commission finds that the proposal is

consistent with the requirements of the

Act and in particular with the

requirements of 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–

NSCC–95–17) be, and hereby is,

approved on a temporary basis through

May 31, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.18

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–12471 Filed 5–16–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37203; File No. SR–OCC–

95–20]

Self-Regulatory Organizations; The

Options Clearing Corporation; Notice

of Filing of an Amendment to a

Proposed Rule Change Relating to the

Issuance, Clearance, and Settlement of

Buy-Write Options Unitary Derivatives

May 10, 1996.

On December 27, 1995, The Options

Clearing Corporation (‘‘OCC’’) filed with

the Securities and Exchange

Commission (‘‘Commission’’) a

proposed rule change (File No. SR–

OCC–95–20) pursuant to Section

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

of 1934 (‘‘Act’’) relating to the issuance,

clearance, and settlement of Buy-Write

Options Unitary Derivatives

(‘‘BOUND’’).1 On February 5, 1996, OCC

filed Amendment No. 1 to the proposed

rule change.2 Notice of the proposed

rule change, as amended, was published

in the Federal Register on March 20,

1996.3 On March 20, 1996, OCC filed

Amendment No. 2.4 Amendment No. 2

is described in Items I, II, and III below,

which items have been prepared

primarily by OCC. The Commission is

publishing this notice to solicit

comments on the proposed rule change,

as amended, from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The purpose of Amendment No. 2 to

the proposed rule change is to add a

provision to Article XXIV, Section 6 of

OCC’s By-Laws to specify that the

closing price for the underlying security

of a BOUND is conclusively presumed

to be accurate and shall be final for

purposes of determining settlement

rights and obligations with respect to

that BOUND.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

OCC 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. OCC

has prepared summaries, set forth in

sections (A), (B), and (C) below, of the

most significant aspects of such

statements.5

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The purpose of Amendment No. 2 to

the proposed rule change is to add a

provision to Article XXIV, Section 6 of

OCC’s By-Laws to specify that the
24996 Federal Register / Vol. 61, No. 97 / Friday, May 17, 1996 / Notices

6The term ‘‘closing price’’ is defined under

proposed Article XXIV, Section 1(C)(2) of the

proposed rule change. 7 17 CFR 200.30–3(a)(12) (1995).

closing price 6 for the underlying

security of a BOUND is conclusively

presumed to be accurate and shall be

final for purposes of determining

settlement rights and obligations with

respect to that BOUND. The amendment

also proposes to add an interpretation to

Section 6 to provide that, except in

extraordinary circumstances, OCC will

not adjust an officially reported closing

price for exercise settlement purposes

even if the closing price is subsequently

found to have been erroneous.

OCC believes the proposed rule

change, as amended, is consistent with

the requirements of Section 17A of the

Act and the rules and regulations

thereunder because the proposal should

facilitate the prompt and accurate

clearance and settlement of BOUNDs.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

OCC does not believe that the

proposed rule change as amended 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

Written comments were not solicited

with respect to the proposed rule

change as amended and none have been

received.

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 OCC 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

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 OCC. All submissions should

refer to the file number SR–OCC–95–20

and should be submitted by June 7,

1996.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–12470 Filed 5–16–96; 8:45 am]

BILLING CODE 80–01–M

SOCIAL SECURITY ADMINISTRATION

Agency Information Collection

Activities: Proposed Collection

Request

Normally on Fridays, the Social

Security Administration publishes a list

of information collection packages that

will require submission to the Office of

Management and Budget (OMB) for

clearance in compliance with P.L. 104–

13 effective October 1, 1995, The

Paperwork Reduction Act of 1995. Since

the last list was published in the

Federal Register on May 8, 1996, the

information collections listed below

have been proposed or will require

extension of the current OMB approvals:

(Call the SSA Reports Clearance Officer

on (410) 965–4123 for a copy of the

form(s) or package(s), or write to her at

the address listed below the information

collections.)

1. Report(s) of Student Beneficiary at

End of School Year—0960–0089. The

information collected on form SSA–

1388 is used by the Social Security

Administration to verify a student’s fulltime attendance at an approved

educational institution. The affected

public consists of claimants or

beneficiaries who are students and are

requested to provide this information.

Number of Respondents: 200,000.

Frequency of Response: 1.

Average Burden Per Response: 10

minutes.

Estimated Annual Burden: 33,333

hours.

2. Work History Report—0960–0552.

The information collected on form SSA–

3369 is used to document a claimant’s

work history and used, in conjunction

with other evidence, to determine

eligibility for disability benefits. The

respondents are claimant’s for disability

benefits.

Number of Respondents: 2,000,000.

Frequency of Response: 1.

Average Burden Per Response: 30

minutes.

Estimated Annual Burden: 1,000,000

hours.

Written comments and

recommendations regarding these

information collections should be sent

within 60 days from the date of this

publication, directly to the SSA Reports

Clearance Officer at the following

address: Social Security Administration,

DCFAM, Attn: Charlotte S. Whitenight,

6401 Security Blvd., 1–A–21 Operations

Bldg., Baltimore, MD 21235.

In addition to your comments on the

accuracy of the agency’s burden

estimate, we are soliciting comments on

the need for the information; its

practical utility; ways to enhance its

quality, utility and clarity; and on ways

to minimize burden on respondents,

including the use of automated

collection techniques or other forms of

information technology.

Dated: May 9, 1996.

Charlotte Whitenight,

Reports Clearance Officer, Social Security

Administration.

[FR Doc. 96–12215 Filed 5–16–96; 8:45 am]

BILLING CODE 4190–29–P

DEPARTMENT OF STATE

[Public Notice 2389]

Office of Overseas Schools;

Information Collection Under Review

Office of Management and Budget

(OMB) approval is being sought for the

information collection listed below.

This proposed information collection

was previously published in the Federal

Register and allowed 60 days for public

comment.

The purpose of this notice is to allow

an additional 30 days for public

comments from the date listed at the top

of this page in the Federal Register.

This process is conducted in accordance

with 5 Code of Federal Regulation, Part

1320.10.

1. Summary

The Office of Overseas Schools of the

Department of State (A/OS) is