Federal Register / Vol. 66, No. 245 / Thursday, December 20, 2001 / Notices 65769

8 15 U.S.C. 78q–1.

9 17 CFR 200.30–3(a)(12).

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

2The Commission has modified the text of the

summaries prepared by MBSCC.

3Because of the current functional integration of

operations of GSCC and MBSCC, the integration of

GSCC with DTCC is contingent upon the successful

integration of MBSCC with DTCC and vice versa.

Securities Exchange Act Release Nos. 44989 (Oct.

25, 2001), 66 FR 55220 (Nov. 1, 2001); and 44988

(Oct. 25, 2001), 66 FR 55222 (Nov. 1, 2001).

4Pursuant to a separate plan for the integration

of EMCC with DTCC, it is contemplated that EMCC

will become an operating subsidiary of DTCDC at

the same time that GSCC and MBSCC become

operating subsidiaries of DTCC. However, the

transaction involving GSCC and MBSCC is not

contingent on the transaction involving EMCC and

vice versa.

5 DTC and NSCC are wholly-owned subsidiaries

of DTCC.

6After the completion of the integration, GSCC,

MBSCC, and EMCC shall each be a wholly-owned

subsidiary of DTCC, and a single group of

individuals shall serve as directors of each of the

Synergy Companies. Following the integration,

MBSCC will continue to exist as a separate

registered clearing agency. The retained earnings of

MBSCC existing at the time of (or as of the end of

the last full calendar month preceding) the

integration of MBSCC with DTCC will, as a matter

of DTCC policy, be dedicated to supporting the

business of MBSCC. MBSCC will be managed and

operated so as to be appropriately capitalized for its

activities as a clearing agency.

39 that states that GSCC will not be

liable for the obligations of any other

entity or member of any other entity and

that such other entity or member of such

other entity shall not be liable for any

obligations of GSCC.

GSCC believes that the proposed rule

change is consistent with the

requirements of section 17A of the Act 8

and the rules and regulations

thereunder applicable to GSCC because

is promotes the safeguarding of

securities and funds in GSCC’s custody

or control or for which it is responsible.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

GSCC does not believe that the

proposed rule change will have any

impact or impose any burden on

competition.

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

solicited or received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within the 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 selfregulatory organization 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,

including whether the proposed rule

change is consistent with the Act.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549–0609. 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, NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at GSCC’s

principal office. All submissions should

refer to File No. SR–GSCC–2001–14 and

should be submitted by January 4, 2002.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Jonathan G. Katz,

Secretary.

[FR Doc. 01–31359 Filed 12–19–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–45153; File No. SR–

MBSCC–2001–04]

Self-Regulatory Organizations; MBS

Clearing Corporation; Notice of Filing

of Proposed Rule Change Relating to

Liability of Affiliated Entities

December 14, 2001.

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

Securities Exchange Act of 1934,1 notice

is hereby given that on October 11,

2001, the MBS Securities Clearing

Corporation (‘‘MBSCC’’) 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 by MBSCC. 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

MBSCC proposes to amend its rules in

order to limit its liability with respect to

affiliated entities. Specifically, MBSCC

proposes to add a section to its rules

that states that, except as otherwise

provided by written agreement between

MBSCC and such other entities, (1)

MBSCC shall not be liable for any

obligations of such other entity and its

clearing fund and other assets shall not

be available to such other entity and (2)

such other entity shall not be liable for

any obligations of MBSCC and any

assets of such other entity shall not be

available to MBSCC.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

MBSCC 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 the statements

may be examined at the places specified

in Item IV below. MBSCC 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

The proposed rule change addresses

liability issues that may arise after the

completion of the integration of MBSCC,

the Government Securities Clearing

Corporation (‘‘GSCC’’),3 and the

Emerging Markets Clearing Corporation

(‘‘EMCC’’) 4 with The Depository Trust

and Clearing Corporation (‘‘DTCC’’). For

purposes of this notice, DTCC, GSCC,

MBSCC, EMCC, The Depository Trust

Company (‘‘DTC’’), and National

Securities Clearing Corporation

(‘‘NSCC’’) 5 are collectively referred to as

the ‘‘Synergy Companies.’’ 6

65770 Federal Register / Vol. 66, No. 245 / Thursday, December 20, 2001 / Notices

7Similarly, the integration plan attempts to

insulate GSSC and EMCC from the risks of

MBSCC’s business. Securities Exchange Act Release

Nos. 45155 (Dec. 14, 2001) (SR–GSCC–2001–14);

45154 (Dec. 14, 2001) (SR–EMCC–2001–04). See

also Securities Exchange Act Release Nos. 42013

(Oct. 15, 1999), 64 FR 57168 (Oct. 22, 1999)(SR–

DTC–99–11) and 42014 (Oct. 15, 1999), 64 FR

57171 (Oct. 22, 1999) (SR–NSCC–99–07) (DTC and

NSCC have adopted rules similar to this proposed

rule as part of their 1999 integration with DTCC.)

8 15 U.S.C. 78q–1.

9 17 CFR 200.30–3(a)(12).

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

2The Commission has modified parts of these

statements.

An important aspect of the integration

plan is to insulate MBSCC, its

participants, its limited purpose

participants, its Electronic Profile

Network users, and its participants fund

from the risks and obligations that may

arise from the activities of the other

Synergy Companies.7 The proposed rule

change will specifically add a new Rule

15 to Section V of MBSCC’s rules that

states that MBSCC will not be liable for

the obligations of any other entity or

member of any other entity and that

such other entity or member of such

other entity shall not be liable for any

obligations of MBSCC.

MBSCC believes that the proposed

rule change is consistent with the

requirements of section 17A of the Act 8

and the rules and regulations

thereunder applicable to MBSCC

because it promotes the safeguarding of

securities and funds in MBSCC’s

custody or control or for which it is

responsible.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

MBSCC does not believe that the

proposed rule change will have any

impact or impose any burden on

competition.,

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

solicited or 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 the self-regulatory

organization 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,

including whether the proposed rule

change is consistent with the Act.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549–0609. 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, NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at MBSCC’s

principal office. All submissions should

refer to File No. SR–MBSCC–2001–04

and should be submitted by January 4,

2002.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.9

Jonathan G. Katz,

Secretary.

[FR Doc. 01–31360 Filed 12–19–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–45152; File No. SR–OCC–

2001–16]

Self-Regulatory Organizations; The

Options Clearing Corporation; Notice

of Filing of a Proposed Rule Change

Relating to Clearing Certain

Commodity Futures and Options

Thereon

December 12, 2001.

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

Securities Exchange Act of 1934

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

October 24, 2001, The Options Clearing

Corporation (‘‘OCC’’) 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 OCC. 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 amends

OCC’s by-laws and rules to provide for

the clearance and settlement of

transactions in commodity futures on

broad-based stock indexes and options

on such futures, both of which are

subject to the exclusive jurisdiction of

the Commodity Futures Trading

Commission (‘‘CFTC’’).

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 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.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Introduction

The proposed rules would provide for

the clearance and settlement of futures

on broad-based stock indexes and

options on such futures under the same

basic rules and procedures currently

applicable to the clearance and

settlement of other OCC-cleared

contracts, including options and

security futures. Because such contracts

are within the exclusive jurisdiction of

the CFTC, OCC submitted to the CFTC

on October 9, 2001, an application for

registration as a derivatives clearing

organization (‘‘DCO’’) under section

5b(c) of the Commodity Exchange Act

(‘‘CEA’’) and part 39 of the CFTC’s

regulations. The CFTC granted OCC’s

application for registration on December

10, 2001.

Commodity futures would be cleared

pursuant to the same basic OCC rules

and procedures recently approved by

the Commission for the clearance of