[Federal Register Volume 60, Number 1 (Tuesday, January 3, 1995)]
[Notices]
[Pages 161-162]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32255]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35153; File No. SR-Philadep-94-05]
Self-Regulatory Organization; Philadelphia Depository Trust
Company; Notice of Proposed Rule Change Concerning Disposal of Expired
Securities Certificates of Warrants and Rights
December 27, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 6, 1994, the
Philadelphia Depository Trust Company (``Philadep'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change (File No. SR-Philadep-94-05) as described in Items I, II, and
III below, which Items have been prepared primarily by Philadep, a
self-regulatory organization (``SRO''). The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
\1\15 U.S.C. Sec. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
Philadep proposes to implement a rule change that would allow the
disposal of expired securities certificates of warrants and rights. The
proposed rule change would enable Philadep to reduce its administrative
expenses associated with keeping expired warrants and rights related
certificates in its vault.
II. Self-Regulatory Organization's Statement Regarding the Proposed
Rule Change
In its filing with the Commission, Philadep included statements
concerning the purpose of and the 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. Philadep has prepared summaries, as set forth in
sections (A), (B) and (C) below, of the most significant aspects of
these statements.
A. Self-Regulatory Organization's Statement of the Purpose of and the
Statutory Basis for the Proposed Rule Change
In order to reduce costs and increase operational efficiency,
Philadep proposes to implement a program which would allow it to
destroy certain expired securities certificates, specifically expired
warrants and rights. This destruction policy would enable Philadep to
reduce the administrative and safekeeping expenses associated with
keeping expired warrants and rights related certificates in its vault.
In implementing this program, Philadep will adhere to serveral
procedures to assure that Philadep does not assume any undue risk.
First, Philadep will contact the transfer agent or the issuer of the
securities after the securities has reached their expiration dates to
verify that the respective warrants or rights have expired. Second,
Philadep will obtain written confirmation from the transfer agent or
the issuer that the certificates representing such warrants or rights
have expired. If there is no transfer agent, Philadep personnel will
exercise all reasonable due diligence to confirm the expired nature of
the respective certificates, including (1) consulting with Philadep's
legal department, its internal audit department, and its senior
management and (2) receiving a confirmation from the issuer. Third,
Philadep (1) will notify its participants that the certificates have
expired in the judgment of the transfer agent or, where there is no
transfer agent exist, other appropriate parties; (2) will delete such
securities positions from its participants' account on or after the
thirtieth day following the date of the notice; and (3) will mark the
securities certificates and send them to the internal audit department
for destruction. Additionally, at Philadep's discretion, it may retain
copies of the certificates on microfilm or on other mediums.
Philadep believes that the proposed program complies with Section
17A of the Act\2\ in that it is contemplated to foster cooperation and
coordination with persons engaged in the clearance and settlement of
securities transactions by providing an efficient administrative
mechanism to destroy expired securities.
\2\15 U.S.C. Sec. 78q-1 (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition
Philadep believe that the proposed rule change will not pose any
burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants or Others
Philadep has neither solicited nor received any comments with
respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Changes 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 Philadep 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 such 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 respecting the proposed rule change that [[Page 162]] are
filed with the Commission, and all written communications concerning
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public pursuant to 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,
N.W., Washington, D.C. 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-94-05
and should be submitted by January 24, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\3\
\3\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-32255 Filed 11-30-94; 8:45 am]
BILLING CODE 8010-01-M
