[Federal Register Volume 59, Number 25 (Monday, February 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2722]
[[Page Unknown]]
[Federal Register: February 7, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33556; File No. SR-MSTC-94-01]
Self-Regulatory Organizations; Midwest Securities Trust Company;
Notice of Filing and Order Granting Temporary Approval on an
Accelerated Basis of a Proposed Rule Change Concerning the
Institutional Participant Services Program
January 31, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 6, 1994, the
Midwest Securities and Trust Company (``MSTC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared primarily by MSTC. The Commission is publishing this notice
and order to solicit comments from interested persons and to grant
accelerated approval of the proposed rule change on a temporary basis
through January 31, 1995.
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\1\15 U.S.C. 78s(b)(1) (1988).
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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 temporary approval of (i) the
Institutional Participant Services Program (``Program'') and (ii) the
Institutional Participant (``Institutions'') category of participants.
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 Sections (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
The Commission has approved the Program on a temporary basis
through January 31, 1994.\2\ The rationale for initially approving the
rule change on a temporary basis was to provide MSTC with the
opportunity to formulate more definitive financial and operational
standards for Institutions that desire to participate in the Program.
On December 26, 1990, MSTC filed a proposed rule change\3\ which
proposed more definitive standards and which requested permanent
approval of the Program.\4\ In order to provide the Commission and MSTC
with the opportunity to continue their studies of these standards while
providing continuity of service to Institutions participating in the
Program, MSTC requests that the Commission grant temporary approval of
this proposed rule change on an accelerated basis under the terms of
the previous temporary approval orders through January 31, 1995. MSTC
believes that the proposed rule change is consistent with Section 17A
of the Act\5\ because it will promote the prompt and accurate clearance
and settlement of securities transactions and help perfect the national
system for the clearance and settlement of securities transactions.
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\2\Securities Exchange Act Release Nos. 27752 (March 1, 1990),
55 FR 8271 [File No. SR-MSTC-89-05]; 28844 (February 1, 1991), 56 FR
5035 [File No. SR-MSTC-91-01]; 29493 (July 26, 1991), 56 FR 36854
[File No. SR-MSTC-91-03]; 30326 (January 31, 1992), 57 FR 4783 [File
No. SR-MSTC-92-01]; 30981 (August 10, 1992), 57 FR 35616 [File No.
Sr-MSTC-92-06]; and 31798 (January 29, 1993), 58 FR 7276 [File No.
SR-MSTC-92-11] (collectively referred to as ``temporary approval
orders'').
\3\File No. SR-MSTC-90-10.
\4\For a complete description of the services offered and the
current standards of financial and operational capabilities for
Institutions, refer to the temporary approval orders.
\5\15 U.S.C. 78q-1 (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition
MSTC believes that no burdens 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 received any comments from participants on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and, in particular, with the
requirements of section 17A(b)(3) (A) and (F) of the Act.\6\ Those
sections require that the rules and organizational structure of a
clearing agency be designed to promote the prompt and accurate
clearance and settlement of securities transactions and to remove
impediments to and perfect the mechanism for the national system for
the prompt and accurate clearance and settlement of securities
transactions. The Commission believes that MSTC's proposal will help
achieve these requirements by providing Institutions with the
opportunity to participate directly in the national market system
through MSTC's Program.
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\6\15 U.S.C. 78q-1(b)(3) (A) and (F) (1988).
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MSTC has requested that the Commission approve the proposed rule
change prior to the thirtieth day after the date of publication of
notice of the filing. The Commission finds good cause for so approving
the proposed rule change because such accelerated approval will permit
MSTC to offer continuity of service to Institutions that currently
participate in the Program while providing the Commission and MSTC with
additional time to analyze MSTC's proposed standards of participation
and of financial and operational capabilities for Institutions. The
Commission does not anticipate that it will receive any negative
comments on the proposed rule change in light of the fact that no
comments have been received on the proposals approved in the temporary
approval orders, which were identical in substance to this proposed
rule change. Furthermore, the Commission notes that the Program has
operated without incident during the previous temporary approval
periods.
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, DC 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 at the
principal office of MSTC. All submissions should refer to File No. SR-
MSTC-94-01 and should be submitted by February 28, 1994.
It is therefore ordered, Pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (File No. SR-MSTC-94-01) be, and
hereby is, approved on an accelerated basis through January 31, 1995.
\7\15 U.S.C. 78s(b)(2) (1988).
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For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\17 CFR 200.30-3(a)(12) (1992).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-2722 Filed 2-4-94; 8:45 am]
BILLING CODE 8010-01-M
