[Federal Register Volume 63, Number 208 (Wednesday, October 28, 1998)]
[Notices]
[Pages 57717-57718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28848]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40589; File No. SR-DTC-98-17]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Enhancements of Its Memo Segregation Procedures
October 22, 1998.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on August 21, 1998, The
Depository Trust Company (``DTC'') 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 DTC. The Commission is publishing this notice to solicit
comments from interested persons on the proposed rule change.
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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 adds three options to DTC's Memo
Segregation (``Memo Seg'') procedures.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, DTC 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. DTC has prepared summaries, set forth in sections (A),
(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 DTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
This proposed rule change is adding three Memo Seg options made
possible by the modification. The three memo seg options being added
are: (1) an instruction to increase the instructing participant's Free
position and Memo Seg position upon the receipt of deliver orders (free
or valued) with certain reclaim reason codes; (2) an instruction to
increase the instructing participant's Free position and Memo Seg
position upon the receipt of certain continuous net settlement system
account allocations; and (3) an instruction to turn around all
positions received from deliver orders except for certain positions.
These enhancements will be made available to participants starting
August 24, 1998.
DTC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \3\ and the rules and
regulations thereunder because it provided for the safeguarding of
securities and funds in DTC's custody or control or for which it is
responsible.
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\3\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition
DTC perceives no impact on competition by reason of the proposed
rule change.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
DTC informed participants of the proposed rule change in Important
Notices dated May 5, 1998, and August 12, 1998. Written comments from
DTC participants or others have not been solicited or received 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)(iii) \4\ of the Act and pursuant
[[Page 57718]]
to Rule 19b-4(e)(4) \5\ promulgated thereunder because 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 DTC or persons using the service. 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)(iii).
\5\ 17 CFR 240.19b-4(e)(4).
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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, 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 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 the principal office of DTC. All
submissions should refer to File No. SR-DTC-98-17 and should be
submitted by November 18, 1998.
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. 98-28848 Filed 10-27-98; 8:45 am]
BILLING CODE 8010-01-M
