Federal Register / Vol. 61, No. 106 / Friday, May 31, 1996 / Notices 27379

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

4 17 CFR 240.19b–4(e)(2) (1995).

5 17 CFR 200.30–3(a)(12) (1995).

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

2Securities Exchange Act Release No. 36875

(February 22, 1996), 61 FR 7846 [SR–SCCP–95–06]

(order granting partial temporary approval and

partial permanent approval of a proposed rule

change).

equitable allocations of reasonable dues,

fees, and other charges among

participants.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The proposed rule change will not

impose any inappropriate 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 neither

solicited nor received with respect to

the proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Changes and Timing for

Commission Action

The foregoing rule change has become

effective pursuant to Section

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

to Rule 19b–4(e)(2) 4 promulgated

thereunder because the proposal

establishes or changes a due, fee, or

other charge. At any time within sixty

days of the filing of such rule change,

the Commission may summarily

abrogate such 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, 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

Section, 450 Fifth Street, NW,

Washington, DC 20549. Copies of such

filings will also be available for

inspection and copying at the principal

office of Philadep. All submissions

should refer to File Number SR–

PHILADEP–96–06 and should be

submitted by June 21, 1996.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–13697 Filed 5–30–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37245; File No. SR–SCCP–

96–03]

Self-Regulatory Organizations; Stock

Clearing Corporation of Philadelphia;

Notice of Filing of a Proposed Rule

Change To Establish a Separate

Participant Category for Inactive

Accounts

May 24, 1996.

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

Securities Exchange Act of 1934

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

May 8, 1996, the Stock Clearing

Corporation of Philadelphia (‘‘SCCP’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change (File No. SR–

SCCP–96–03) as described in Items I, II,

and III below, which items have been

prepared primarily by SCCP. 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 amend SCCP’s rules of

establishment a separate participant

category for inactive accounts and to

amend the participants fund formulas

with respect to such inactive accounts.

Specifically, the proposed rule change

will define the term ‘‘Inactive Account’’

and will set forth the mechanism for

detecting a change in a participant’s

status from inactive to active for the

immediate collection of the additional

required participants fund contribution

at such time.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

SCCP included statements concerning

the purpose of and basis for the

proposed rule change 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. SCCP

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

SCCP proposes to amend its rules

with respect to the minimum cash

deposit contribution of its inactive

participants to be set at the uniform rate

of $5,000 instead of at the previously

approved rate of $10,000.2 ‘‘Inactive

Accounts’’ are proposed to be defined as

an account which conducts de minimis

activity, currently established to be

twenty or fewer trades per month.

SCCP proposes to adjust its Inactive

Account contribution to the participants

fund from $10,000 to $5,000. In

proposing this amendment, SCCP

recognizes that Inactive Accounts pose

virtually no risk to the clearing

corporation so long as they remain in

such inactive status. In this regard,

SCCP has established procedures to

detect a change in a participant’s status

from inactive to active and for the

immediate collection of the additional

required participants fund contribution

at such time.

SCCP will monitor its participants’

account activities to assure that all

participants post the requisite

participants fund contributions. SCCP

evaluates the nature and financial

integrity of all participants of SCCP,

even if they initially establish only

Inactive Accounts. SCCP evaluates

prospective participants develops a

customer profile, assesses the firm’s

capital adequacy, determines the initial

participants fund contribution, contacts

the firm’s Designated Examining

Authority for a review of its regulatory

history, and presents any and all

pertinent information collected to

SCCP’s Admissions Committee. The

Admissions Committee ultimately

makes the determination about whether

to admit the participant and directs

management where appropriate to

gather additional information so that the

Committee can make such a

determination. After admission, SCCP

monitors participants’ account activities

to assure that the proper participants

fund contribution is being collected

from each participant.

Specifically with respect to Inactive

Accounts, SCCP’s Finance and

Administration (‘‘F&A’’) Department
27380 Federal Register / Vol. 61, No. 106 / Friday, May 31, 1996 / Notices

3This report will be distributed on a daily basis

to SCCP management and SCCP’s compliance

officer. 4 17 CFR 200.30–3(a)(12) (1995).

will identify for SCCP’s Operations

Department which specific accounts are

currently inactive. Thereafter, the

Operations Department will monitor on

a daily basis purchase and sale blotters

for each Inactive Account. Trade

activity detected from Inactive Accounts

will be compiled on a separate report

identifying cumulative activity in each

Inactive Account during a monthly

billing cycle.3

In the event that an Inactive Account

exceeds ten trades, but fewer than

twenty-one trades, for a particular

month, the Operations Department will

immediately notify the F&A Department

and SCCP’s compliance officer. The

F&A Department will verify this activity

and will immediately call and send

letters to the affected participants

requiring the wiring of the additional

participants fund contributions

associated with an active account by the

next business day in order for such

participants to conduct further account

activity during the month. If a

participant has exceeded 20 trades for

any given month, the participant must

wire additional participants fund

contributions associated with an active

account by the next business day. A

participant’s failure to timely wire any

additional participants fund

contributions due subjects the

participant to a $500 fine for the first

offense and a $2,000 fine for the second

offense during a calendar year. If the

participant does not wire the additional

participants fund contribution for SCCP

by the next business day, SCCP will

disallow any further business in the

account beginning on the next business

day after the additional contribution

was due. Accordingly, an offense as

contemplated by the foregoing fine

schedule refers to the number of times

that the account was inactivated from

conducting any further business for

failure to furnish SCCP with the

additional contribution during the

calendar year.

Once active, an account will be

routinely subject to the normal review

and update process on a monthly basis,

and the F&A Department will

recalculate each participant’s

participants fund deposit requirement at

the end of each month based upon the

participant’s previous three months

activity, prior to the most recent month.

SCCP believes the proposed rule

change is consistent with Section 17A of

the Act and the rules and regulations

thereunder because the proposal should

help to safeguard securities and funds in

their custody or control or for which

they are responsible and foster

cooperation and coordination with

persons engaged in the clearance and

settlement of securities transactions.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

SCCP believes that the proposed rule

change will not impose any burden on

competition not contemplated within

the parameters of the Act.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

No written comments relating to the

proposed rule change have been

received. SCCP will notify the

Commission of any written comments

received by SCCP.

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 SCCP 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 SCCP. All submissions should

refer to the file number SR–SCCP–96–03

and should be submitted by June 21,

1996.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.4

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–13695 Filed 5–30–96; 8:45 am]

BILLING CODE 8010–01–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 Pub. 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 17, 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) 965–4125 for a copy of the

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

the address listed below the information

collections.)

1. Statement of Income and

Resources—0960–0124. The form SSA–

8010 is used to obtain information about

income and resources of individuals

whose income may be ‘‘deemed’’

(considered available) to applicants/

recipients of SSI. The information is

used by the Social Security

Administration to make initial or

continuing eligibility determinations

and to determine the amount of the SSI

payment. The respondents are

individuals whose income may be

‘‘deemed’’ to the SSI applicant/

recipient.

Number of Respondents: 355,000.

Frequency of Response: 1.

Average Burden Per Response: 25

minutes.

Estimated Annual Burden: 147,917

hours.

2. Application for Supplemental

Security Income—0960–0444. The

information collected on the SSA–8001

is used by the Social Security

Administration to determine whether

applicants for SSI benefits meet all

statutory and regulatory requirements

for eligibility and, if so, the amount of

benefits payable. The respondents are

applicants for SSI benefits.