[Federal Register Volume 65, Number 240 (Wednesday, December 13, 2000)]
[Notices]
[Pages 77947-77948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31680]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-43680; File No. SR-EMCC-00-04]
Self-Regulatory Organizations; Emerging Markets Clearing
Corporation; Notice of Filing of Proposed Rule Change Relating to
Membership Criteria for Inter-dealer Brokers Regulated by the
Securities and Futures Authority Limited
December 6, 2000.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 3, 2000, the Emerging
Markets Clearing Corporation (``EMCC'') 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 EMCC. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested parties.\2\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ EMCC's filing will be available for inspection and copying
in the Commission's Public Reference Section or through EMCC.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
EMCC is proposing to amend its rules to establish membership
criteria for brokers or dealers that act as inter-dealer brokers
(``IDBs'') and that are regulated by the Securities and Futures
Authority Limited (``SFA'').
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, EMCC 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. EMCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\3\
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\3\ The Commission has modified the text of the summaries
prepared by EMCC.
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(A) Self-Regulatory Organizations' Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Currently, EMCC's Rules only provide for U.S. registered broker-
dealers to act as an inter-dealer broker. The purpose of this proposed
rule change is to establish admission criteria for brokers or dealers
who are regulated by the SFA and act as IDBs. EMCC's membership
criteria for broker-dealers acting as IDBs that are registered by the
SFA will mirror the requirements of U.S. registered broker-dealers
acting as IDBs except SFA regulated IDBs will be required to maintain
``excess financial resources'' of $10,000,000 as opposed to excess net
capital of $10,000,000.
EMCC believes that the proposed rule change is consistent with the
requirements of section 17A of the Act \4\ and the rules and
regulations thereunder because the proposal should encourage IDBs'
regulated by the SFA to become participants in EMCC and therefore
facilitate the prompt and accurate clearance and settlement of emerging
market securities transactions.
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\4\ 15 U.S.C. 78q-1
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(B) Self-Regulatory Organization's Statement on Burden on Competition
EMCC does not believe that the proposed rule change will have an
impact on 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 relating to the proposed rule change have not yet
been solicited or received. EMCC will notify the Commission of any
written comments received by EMCC.
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 Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such filing also will be available for
inspection and copying at the principal office of EMCC. All submissions
should refer to File No. SR-EMCC-00-04 and should be submitted by
January 3, 2001.
[[Page 77948]]
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-31680 Filed 12-12-00; 8:45 am]
BILLING CODE 8010-01-M