[Federal Register Volume 59, Number 243 (Tuesday, December 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31169]
[[Page Unknown]]
[Federal Register: December 20, 1994]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35098; File No. SR-MSTC-94-17]
Self-Regulatory Organizations; Midwest Securities Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Legal Expert System
December 13, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on November 29, 1994, the
Midwest Securities Trust Company (``MSTC'') 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 MSTC. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\15 U.S.C. 78s(b)(1) (1988).
---------------------------------------------------------------------------
I. Self-Regulatory Organizations Statement of the Terms and Substance
of the Proposed Rule Change
The purpose of the proposed change is to change the pricing
structure of the Legal Expert System and to clarify MSTC's policies
with regard to the use of the Legal Expert System.\2\
---------------------------------------------------------------------------
\2\For a complete description of the Legal Expert System, refer
to Securities Exchange Act Release No. 33756 (March 11, 1994), 54 FR
13350 [File No. SR-MSTC-94-02] (order approving a rule change
regarding the Legal Expert System's fees and a clarification
disclaiming any liability on MSTC's part for any misinformation
contained in the Legal Expert System).
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, MSTC 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. MSTC has prepared summaries, set forth in section (A),
(B), and (C) below, of the most significant aspects of such statements.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
MSTC proposes to amend a portion of its services and the schedule
of charges relating to the Legal Expert System. MSTC also proposes to
clarify its existing policy with respect to the use of the Legal Expert
System by participants.
The Legal Expert System is a computer program available to MSTC
participants which details the necessary documentation for effecting a
legal transfer of securities based on industry criteria and individual
state regulations. First, MSTC wishes to clarify that the Legal Expert
System is available only to full MSTC participants; accordingly, it is
not available to pledgee participants or limited purpose participants.
Furthermore, the Legal Expert System is proprietary to MSTC; therefore,
participants may not provide third parties with access to the Legal
Expert System without MSTC's prior written approval. The new schedule
of charges will be effective January 1, 1995.
The text of the proposed rule change is as follows with additions
italicized and with deletions bracketed:
MSTC Legal Expert System
[Participants that make inquiries in the Legal Expert System: $750/
month]
Terminal Inquiry
1-2500 inquiries per month: $0.50/inquiry
2,501-5,000: $0.35/inquiry
5,001-10,000: $0.35/inquiry
10,001 and over: $0.17/inquiry
MSTC full legal deposit participants will receive a free inquiry
for each legal deposit submitted to MSTC. The free inquiries are only
valid in the month the legal deposit is made.
The proposed rule change is consistent with Section 17A of the Act
in that it provides for the equitable allocation of reasonable fees and
other charges among participants using its facilities.
(B) Self-Regulatory Organization's Statement on Burden on Competition
MSTC believes that no burden will be placed on competition as a
result of the proposed rule change.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
MSTC has not solicited or received any comments. MSTC will notify
the Commission of any written comments it receives.
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)\3\ of the Act and Rule 19b-4(e)\4\ thereunder in that it
constitutes a stated policy, practice, or interpretation with respect
to the meaning, administration, or enforcement of an existing rule and
in that it establishes or changes a due, fee, or other charge imposed
by MSTC. At any time within sixty days of the filing of the proposed
rule change, the Commission summarily may abrogate the 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.
---------------------------------------------------------------------------
\3\15 U.S.C. 78s(b)(3)(A) (1988).
\4\17 CFR 240.19b-4(e) (1994).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submission
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
Copies of the submissions, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communication 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 at the
Commission's Public Reference Section, 450 Fifth Street N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of MSTC. All
submissions should refer to File No. SR-MSTC-94-17 and should be
submitted by January 10, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\17 CFR 200.30-3(a)(12) (1994).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-31169 Filed 12-19-94; 8:45 am]
BILLING CODE 8010-01-M
