Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 / Notices 36095

1See Securities Exchange Act Release No. 28794

(Jan. 17, 1991), 56 FR 2964 (Jan. 25, 1991).

2See Securities Exchange Act Release No. 36081

(Aug. 10, 1995), 60 FR 42635 (Aug. 16, 1995).

3ROTs are members that trade on a proprietary

basis on the Floor in one or more designated classes

of options. Exchange Rule 958 sets forth the

obligations and requirements under which ROTs

are permitted to conduct such proprietary trading

on the Floor. When trading in their designated

options, ROTs are required under the Rule to

contribute to the maintenance of a fair and orderly

market in such options, engaging in dealings in

such options which contribute to price continuity

or depth or minimize the effects of a temporary

disparity between the supply and demand for such

options. Thus, while not subject to an option

specialist’s continuous market making obligation,

when ROTs effect proprietary equity trades on the

Floor, they are required to comply with the same

market making obligations as option specialists.

4 17 CFR 200.30–3(a)(12) (1994).

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

proprietary equity trades in paired

securities effected on the Exchange floor

by options specialists and registered

options traders (‘‘ROTs’’).

The text of the proposed rule change

is available at the Office of the

Secretary, Amex and at the Commission.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

Amex 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. The Amex 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

In 1991, the Exchange imposed

transaction charges on proprietary

equity trades by members and member

organizations, while maintaining an

exemption for proprietary trades of

equity specialists in view of the market

making function they perform.1

Subsequently, in 1995, the Exchange

waived such charges on proprietary

equity trades effected by Registered

Equity Market Markers (‘‘REMMs’’) in

order to facilitate their market making

function as set forth in Exchange Rule

114 and place them on an equal footing

with Exchange equity specialists.2

When option specialists and ROTs3

that trade ‘‘paired securities’’ (i.e.,

where both the option and underlying

equity security are traded on the Amex)

hedge an option position by trading in

the underlying Amex listed security,

they are currently subject to the

Exchange’s transaction charge on

proprietary equity trades. The Exchange

is now waiving its equity transaction

charge imposed on proprietary equity

trades by option specialists and ROTs

hedging in paired securities. Option

specialists and ROTs, like equity

specialists and REMMs, perform a

market making function in their

assigned securities and the Exchange

believes it is equitable that they be

treated the same with respect to

transaction charges on proprietary

equity trades used for hedging purposes.

The Exchange believes the proposed

rule change is consistent with Section

6(b) of the Act in general and furthers

the objectives of Section 6(b)(4) in

particular in that they provide for the

equitable allocation of reasonable dues,

fees, and other charges among Amex

members, issuers, and other persons

using the Exchange’s facilities.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes the proposed

rule change will impose no burden on

competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants or Others

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The fee change has become effective

pursuant to Section 19(b)(3)(A) of the

Act and subparagraph (e)(2) of Rule

19b–4. At any time within 60 days of

the filing of such fee change, the

Commission may summarily abrogate

such fee 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

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 at

the Commission’s Public Reference

Section, 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 the Amex. All submissions

should refer to File No. SR–Amex–96–

22 and should be submitted by July 30,

1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.4

Jonathan G. Katz,

Secretary.

[FR Doc. 96–17354 Filed 7–8–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37392; File No. SR–DCC–

96–08]

Self Regulatory Organizations; Delta

Clearing Corp.; Notice of Filing and

Immediate Effectiveness of a Proposed

Rule Change Relating to the Addition

of Patriot Securities, Inc. as an

Interdealer Broker for Delta Clearing

Corp.’s Repurchase Agreement

Clearance System

July 1, 1996.

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

Securities Exchange Act of 1934

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

June 12, 1996, Delta Clearing Corp.

(‘‘DCC’’) 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 DCC.

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 give notice that DCC has

authorized Patriot Securities, Inc.

(‘‘Patriot’’) to act as an interdealer

broker in DCC’s over-the-counter

clearance and settlement system for

repurchase agreement and reverse

repurchase agreement (‘‘repos’’)

transactions involving U.S. Treasury

securities.
36096 Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 / Notices

2The Commission has modified parts of these

statements.

3For a complete description of the DCC’s repo

clearance system, see Securities Exchange Act

Release No. 36367 (October 13, 1995), 60 FR 54095.

4Securities Exchange Act Release Nos. 36367

(October 13, 1994), 60 FR 54059; 36901 (February

28, 1996), 61 FR 8991; 37212 (May 14, 1996), 61

FR 25722; and 37235 (May 20, 1996), 61 FR 26942.

5 15 U.S.C. 78q–1 (1988).

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

7 17 CFR 240.19b–4(e)(4) (1995).

8 17 CFR 200.30–3(a)(12) (1995).

1 15 U.S.C. § 78s(b)(1) (1988).

2The Commission temporarily approved two

previous ISCC proposed rule changes amending

ISCC’s clearing fund formula. Securities Exchange

Act Release No. 35970 (July 13, 1995), 60 FR 37698

[File No. SR–ISCC–95–03] (notice of filing and

order granting accelerated approval on a temporary

basis of ISCC’s clearing fund formula) and

Securities Exchange Act Release No. 34392 (July 15,

1994), 59 FR 37798 [File No. SR–ISCC–94–1] (order

temporarily approving on an accelerated basis

ISCC’s clearing fund formula).

3The Commission has modified these summaries.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

DCC 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. DCC has prepared

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

and (C) below, of the most significant

aspects of such statements.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

Through its repo clearing system, DCC

clears repo transactions that have been

agreed to by DCC participants through

the facilities of interdealer brokers that

have been specially authorized by DCC

(‘‘authorized brokers’’) to offer their

services to DCC participants.3 Currently,

Liberty Brokerage, Inc., RMJ Special

Brokerage Inc., Euro Brokers Maxcor

Inc., Tullet and Tokyo Securities Inc.,

and Tradition (Government Securities),

Inc., are authorized brokers.4 The

purpose of the proposed rule change is

to give notice that DCC has authorized

Patriot to act as a broker in DCC’s

clearance and settlement system for

repo trades.

The proposed rule change will

facilitate the prompt and accurate

clearance and settlement of securities

transactions, and therefore, the

proposed rule change is consistent with

the requirements of the Act, specifically

Section 17A of the Act, and the rules

and regulations thereunder.5

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

DCC does not believe that the

proposed rule change will impose any

burden on competition that is 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

Comments were neither solicited nor

received.

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)(iii) of the Act 6 and Rule

19b–4(e)(4) thereunder 7 in that the

proposal effects a change in an existing

service of a registered clearing agency

that does not adversely affect the

safeguarding of securities or funds in

the custody or control of the clearing

agency or for which it is responsible and

does not significantly affect the

respective rights or obligations of the

clearing agency or persons using the

service. At any time within sixty days

of the filing of the proposed 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

communication 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.

20549. Copies of such filing also will be

available for inspection and copying at

DCC. All submissions should refer to

File No. SR–DCC–96–08 and should be

submitted by July 30, 1996.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Jonathan G. Katz,

Secretary.

[FR Doc. 96–17352 Filed 7–8–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37390; International Series

Release No. 999; File No. SR–ISCC–96–03]

Self-Regulatory Organizations;

International Securities Clearing

Corporation; Notice of Filing of a

Proposed Rule Change Relating to the

Clearing Fund Formula

July 1, 1996.

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

Securities Exchange Act of 1934

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

May 16, 1996, the International

Securities Clearing Corporation

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

Exchange Commission (‘‘Commission’’)

the proposed rule change (File No. SR–

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

and III below, which items have been

prepared primarily by ISCC. 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 Changes

ISCC is filing the proposed rule

change to extend approval of its clearing

fund formula.2

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Changes

In its filing with the Commission,

ISCC 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. ISCC has prepared

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

and (C) below, of the most significant

aspects of such statements.3