[Federal Register Volume 61, Number 55 (Wednesday, March 20, 1996)]
[Notices]
[Pages 11455-11456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6675]
-----------------------------------------------------------------------
[[Page 11456]]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36965; File Nos. SR-MCC-96-02 and SR-MSTC-96-02]
Self-Regulatory Organizations; Midwest Clearing Corporation;
Midwest Securities Trust Company; Notice of Filing and Immediate
Effectiveness of Proposed Rule Changes Relating to Termination of
Services Provided by Midwest Clearing Corporation and Midwest
Securities Trust Company
March 13, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 16, 1996, the
Midwest Clearing Corporation (``MCC'') and the Midwest Securities Trust
Company (``MSTC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule changes (File Nos. SR-MCC-96-02 and
SR-MSTC-96-02) as described in Items I, II, and III below, which items
have been prepared primarily by MCC and MSTC. On February 26, 1996, MCC
and MSTC filed an amendment to the proposed rule changes to make
technical corrections which did not affect the substance of the
proposals.\2\ The Commission is publishing this notice to solicit
comments from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
\2\ Letter from David T. Rusoff, Foley & Lardner [counsel to
MCC/MSTC], to Cheryl Tumlin, Staff Attorney, Division of Market
Regulation, Commission (February 26, 1996).
---------------------------------------------------------------------------
I. Self-Regulatory Organizations' Statement of the Terms of Substance
of the Proposed Rule Changes
On February 16, 1996, MCC and MSTC notified their participants of
the procedures that MCC and MSTC will follow with respect to returning
to participants their MCC and MSTC participant funds contributions.
MSTC also notified its participants on February 16, 1996, that the
interface between MSTC and The Depository Trust Company (``DTC'') was
to be discontinued on February 20, 1996.
II. Self-Regulatory Organizations' Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Changes
In its filing with the Commission, MCC and MSTC included statements
concerning the purpose of and basis for the proposed rule changes and
discussed any comments they received on the proposed rule changes. The
text of these statements may be examined at the places specified in
Item IV below. MCC and MSTC have prepared summaries, set forth in
section (A), (B), and (C) below, of the most significant aspects of
such statements.\3\
---------------------------------------------------------------------------
\3\ The Commission has modified the text of the summaries
prepared by MCC and MSTC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organizations' Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Changes
On January 5, 1996, the Commission approved proposed rule changes
filed by MCC, MSTC, and Chicago Stock Exchange, Incorporated regarding
their decisions to terminate as of January 15, 1996, securities
clearing and depository services offered by MCC and MSTC. The decision
to terminate such services was made in conjunction with an agreement
with the National Securities Clearing Corporation and DTC.\4\
---------------------------------------------------------------------------
\4\ Securities Exchange Act Release No. 36684 (January 5, 1996),
61 FR 1195, [File Nos. SR-MCC-95-04 and SR-MSTC-95-10] (order
approving proposed rule changes).
---------------------------------------------------------------------------
MCC and MSTC have issued a Conversion Flash describing a method for
the orderly and equitable return of participants' MCC and MSTC
participant funds contributions.\5\ MSTC also issued a Conversion Flash
on February 16, 1996, notifying its participants that the MSTC/DTC
interface would be discontinued with the close of business on February
20, 1996, in anticipation of the conversion to same-day funds
settlement on February 22, 1996.\6\
---------------------------------------------------------------------------
\5\ The Conversion Flash is attached as Exhibit A to MCC's and
MSTC's filings and is available in the Commission's Public Reference
Room or through MCC or MSTC.
\6\ The Conversion Flash is attached as Exhibit A to MSTC's
proposed rule change and is available in the Commission's Public
Reference Room or through MSTC.
---------------------------------------------------------------------------
MCC and MSTC believe that the proposed rule changes are consistent
with Section 17A of the Act and the rules and regulations thereunder
because the proposals will facilitate the prompt and accurate clearance
and settlement of securities transactions and will assure the
safeguarding of securities and funds which are in MCC's and MSTC's
custody or control of for which MCC and MSTC are responsible.
(B) Self-Regulatory Organizations' Statement on Burden on Competition
MCC and MSTC do not believe the proposed rule changes will impose
any burden on competition.
(C) Self-Regulatory Organizations' Statement on Comments on the
Proposed Rule Changes Received from Members, Participants or Others
MCC and MSTC have neither solicited nor received written comments
on the proposed rule changes.
III. Date of Effectiveness of the Proposed Rule Changes and Timing for
Commission Action
The foregoing rule changes have become effective pursuant to
Section 19(b)(3)(A)(i) \7\ of the Act and pursuant to Rule 19b-4(e)(1)
\8\ promulgated thereunder because the proposals constitute stated
policies, practices, or interpretations with respect to the meaning,
administration, or enforcement of existing rules of MCC and MSTC. At
any time within sixty days of the filing of such rule changes, 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. Sec. 78s(b)(3)(A)(i) (1988).
\8\ 17 CFR 240.19b-4(e)(1) (1995).
---------------------------------------------------------------------------
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 changes that are filed
with the Commission, and all written communications relating to the
proposed rule changes 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 Room, 450 Fifth Street, N.W.,
Washington, D.C. Copies of such filing also will be available for
inspection and copying at the principal offices of MCC and MSTC.
All submissions should refer to the file numbers SR-MCC-96-02 and
SR-MSTC-96-02 and should be submitted by April 10, 1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12) (1995).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-6675 Filed 3-19-96; 8:45 am]
BILLING CODE 8010-01-M
