[Federal Register Volume 62, Number 14 (Wednesday, January 22, 1997)]
[Notices]
[Pages 3320-3321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1433]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38153; File No. SR-PTC-96-08]
Self-Regulatory Organizations; Participants Trust Company; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Extending
the Time for the Close of the Collateral Loan Facility and the Deadline
for Participant Payment of Settlement Obligations
January 10, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 3321]]
(``Act''),\1\ notice is hereby given that on December 3, 1996, the
Participants Trust Company (``PTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change (File No.
SR-PTC-96-08) as described in Items I, II, and III below, which items
have been prepared primarily by PTC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change extends the close of the Collateral Loan
Facility (``CLF'') processing vs. payment from 3:30.59 p.m. to 4:00.59
p.m. and extends the deadline for participants to send settlement wire
payments to PTC from 4:15 p.m. to 4:30 p.m., beginning on January 6,
1997.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, PTC 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. PTC has prepared summaries, set forth in sections (A),
and (B), and (C) below, of the most significant aspects of such
statements.\2\
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\2\ The Commission has modified the text of the summaries
prepared by PTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to extend the close of
the CLF processing vs. payment from 3:30.59 p.m. to 4:00.59 p.m. To
accommodate the processing extension, the deadline for participant
settlement wire payments due PTC also will be extended from 4:15 p.m.
to 4:30 p.m. to allow participants sufficient time to arrange for
payment when the participant's settlement balance changes as a result
of the additional one-half hour financing period. Current opening times
and all other deadlines will remain unchanged.
Participants have requested that the extension of the close of the
CLF for an additional one-half hour after the normal 3:30.59 p.m. close
for regular transaction vs. payment processing be implemented as part
of PTC's program to make Federal Home Loan Mortgage Corporation
(``FHLMC'') and Federal National Mortgage Association (``FNMA'')
securities eligible for PTC's book-entry system to allow participants
additional time to finance their positions. PTC plans to implement the
rule change on January 6, 1997, so that the new deadlines can be
evaluated before the FHLMC and FNMA program is implemented.
PTC believes the proposed rule change is consistent with Section
17A(b)(3)(F) of the Act \3\ and the rules and regulations thereunder
because it assures the safeguarding of securities and funds in PTC's
custody or control or for which it is responsible.
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\3\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Self-Regulatory Organization's Statement on Burden of Competition
PTC does not believe that the proposed rule change imposes any
burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Participants have requested that PTC make the proposed rule change.
PTC has not solicited nor received any written comments on the proposed
rule change.
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)(i) of the Act \4\ and pursuant to Rule 19b-4(e)(1) \5\
promulgated thereunder because the proposal is concerned solely with
the administration of PTC. At any time within sixty days of the filing
of such 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.
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\4\ 15 U.S.C. 78s(b)(3)(A)(i).
\5\ 17 CFR 240.19b-4(e)(1).
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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, 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. Sec. 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 PTC. All submissions
should refer to File No. SR-PTC-96-08 and should be submitted by
February 12, 1997.
For the Commission by the Division of Market Regulation, pursuant
to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-1433 Filed 1-21-97; 8:45 am]
BILLING CODE 8010-01-M
