[Federal Register Volume 60, Number 52 (Friday, March 17, 1995)]
[Notices]
[Pages 14477-14478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6575]
\4\17 CFR 200.30-3(a)(12) (1994).
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[Release No. 34-35470; File No. SR-PHILADEP-94-6]
Self-Regulatory Organizations; the Philadelphia Depository Trust
Company; Notice of Filing of Proposed Rule Change Extending the Pilot
Program for the Fully Automated Securities Transfer Reconciliation
Accounting Control System
March 10, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 14, 1994, the
Philadelphia Depository Trust Company (``PHILADEP'') 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 PHILADEP. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
parties.
\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
PHILADEP proposes to extend its pilot program governing the Fully
Automated Securities Transfer Reconciliation Accounting Control System
(``FASTRACS'') through December 29, 1995.
II. Self-Regulatory Organization's Statements 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
On July 19, 1994, the Commission approved a proposed rule change
establishing a pilot program for FASTRACS for the transfer of certain
securities between PHILADEP and certain transfer agents.\2\ FASTRACS is
an automated program by which PHILADEP and the participating transfer
agents use a master balance certificate to evidence the number of
securities of a particular issue that are registered in PHILADEP's
nominee name. The transfer agents have custody of the securities in the
form of balance certificates registered in PHILADEP's nominee name. The
balance certificates are adjusted daily to reflect PHILADEP's
withdrawal and deposit activity.
\2\For a complete description of PHILADEP's FASTRACS, refer to
Securities Exchange Act Release No. 34404 (July 19, 1994), 59 FR
38010 [File No. SR-PHILADEP-90-03] (order approving FASTRACS program
on a temporary basis).
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According to PHILADEP, the pilot program has operated successfully
in accordance with the operational and technical specifications;
however, testing of the program is not complete.\3\ PHILADEP therefore
requests an extension of the FASTRACS pilot program on a temporary
basis through December 29, 1995.
\3\Currently, PHILADEP has completed testing with two transfer
agents who are now fully operational with FASTRACS. PHILADEP
continues to conduct testing with a third transfer agent. Upon
successful completion of testing with the third transfer agent,
PHILADEP will file a proposed rule change under Section 19(b) of the
Act to seek permanent approval of the FASTRACS program. Telephone
conversation between Keith Kessel, Compliance Officer, PHILADEP and
Margaret J. Robb, Attorney, Division of Market Regulation,
Commission (December 22, 1994).
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PHILADEP believes extending the program is consistent with Section
17A of the Act.\4\ By providing an efficient mechanism for the transfer
of securities positions to and from participating transfer agents, the
programs should help foster cooperation and coordination with persons
engaged in the clearance and settlement of securities transactions and
should facilitate the prompt and accurate clearance and settlement of
securities transactions.
\4\15 U.S.C. 78q-1 (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition
PHILADEP does not believe the proposed rule change will impose any
inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received with respect
to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change 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) [[Page 14478]]
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 the self-regulatory organization
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, NW., Washington DC 20549. Copies
of the submission, all subsequent amendments, all written statements
respecting the proposed rule change that 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. 552,
will be available for inspection and copying in the Commission's Public
Reference Section, 450 Fifth Street, NW., Washington, DC 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-94-6 and should be submitted by April 7, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
\5\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-6575 Filed 3-16-95; 8:45 am]
BILLING CODE 8010-01-M
