[Federal Register Volume 59, Number 220 (Wednesday, November 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28266]
[[Page Unknown]]
[Federal Register: November 16, 1994]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
17 CFR Parts 200 and 240
[Release No. 33-7110; 34-34952; IC-20691; File No. S7-5-93]
RIN 3235-AF85
Securities Transactions Settlement
AGENCY: Securities and Exchange Commission.
ACTION: Final rule; change of effective date.
-----------------------------------------------------------------------
SUMMARY: On October 6, 1993, the Securities and Exchange Commission
(``Commission'' or ``SEC'') adopted Rule 15c6-1 (17 CFR 240.15c6-1)
under the Securities Exchange Act of 1934 which establishes, effective
June 1, 1995, three business days as the standard settlement time frame
for most broker-dealer trades. In order to provide for an orderly
conversion to three business day settlement, the effective date of Rule
15c6-1 has been changed.
EFFECTIVE DATE: The regulation published on October 13, 1993, 58 FR
52891, will now be effective on June 7, 1995.
FOR FURTHER INFORMATION CONTACT: Jerry Carpenter, Assistant Director,
or Christine Sibille, Senior Counsel, at 202/942-4187, Office of
Securities Processing Regulation, Division of Market Regulation
(``Division''), 450 Fifth Street, N.W., Mail Stop 5-1, Washington, D.C.
20549.
SUPPLEMENTARY INFORMATION: On October 6, 1993, the Commission adopted
Rule 15c6-1\1\ which establishes three business days after the trade
date (``T+3'') instead of five business days (``T+5'') as the standard
settlement time frame for most broker-dealer securities transactions.
As adopted, Rule 15c6-1 was to be effective June 1, 1995.
---------------------------------------------------------------------------
\1\17 CFR 240.15c6-1 (1994).
---------------------------------------------------------------------------
After discussions with representatives from the securities
exchanges, the clearing agencies, the National Association of
Securities Dealers, and the Municipal Securities Rulemaking Board, it
was determined that implementation should be moved from June 1, 1995,
to June 7, 1995, in order to minimize any potential disruption
resulting from the conversion to a T+3 settlement environment.
It has been decided that the most efficient method of converting to
a T+3 settlement time frame is to have trades executed on Friday, June
2, 1995, settle five business days later; trades on Monday, June 5, and
Tuesday, June 6, settle four business days later; and trades executed
on Wednesday, June 7, 1995, the new effective date for Rule 15c6-1,
settle three business days later. This process will result in two
double settlement days (i.e., days in which trades from two trade dates
will settle). Trades from June 2 and June 5 will settle on Friday, June
9, and trades from June 6 and June 7 will settle on Monday, June 12.
By moving the conversion to T+3 settlement from June 1, 1995, to
June 7, 1995, the two double settlement days will be split by a
weekend. This will provide an opportunity for broker-dealers to make
any necessary adjustments to their systems should any problems develop
during the conversion process. Furthermore, by moving the effective
date to June 7, implementation will not take place at the same time as
heavy systems usage that is expected to occur from the processing of
interest and dividend payments (interest and dividend processing are
typically times of extensive systems usage).
By the Commission.
Dated: November 9, 1994.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-28266 Filed 11-15-94; 8:45 am]
BILLING CODE 8010-01-M
