[Federal Register Volume 64, Number 101 (Wednesday, May 26, 1999)]
[Notices]
[Pages 28541-28542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13356]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41418; File No. SR-DTC-99-04]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Regarding Revisions to MBS Division Rules
May 18, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 15, 1999 The
Depository Trust Company (``DTC'') 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 DTC. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The proposed rule change revises the rules of DTC's MBS Division to
comply with the current financial reporting practices of existing MBS
Division participants and potential applicants.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, DTC 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. DTC has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.\2\
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\2\ The Commission has modified the text of the summaries
prepared by DTC.
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A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to make the rules of the
MBS Division consistent with current practice in the areas of financial
reporting of existing MBS participants and potential applicants.
The rule change revises Sections 7(b) and 8(b) of Article IV, Rule
1, to clarify that the quarterly financial reports required by
appropriate federal or state regulators, such as call reports for banks
and FOCUS reports for broker-dealers, can be used to satisfy the
requirement in Sections 7(b) and 8(b) for the submission of ``unaudited
Financial Statements''.
The rule change also revises Section 7(c) of Article IV, Rule 1, to
eliminate the requirement that the chief executive officer or chief
financial officer of a potential applicant submit a certificate stating
that no material adverse changes have occurred in the applicant's
financial condition since the applicant submitted the financial
statement required by other provisions in MBS Division rules. The MBS
Division believes this requirement is unnecessary in light of DTC's
access to other sources of information concerning MBS Division
applicants.
DTC believes that the proposed rule change is consistent with
Section 17A(b)(3)(A) of the Act \3\ and the rules and regulations
thereunder because, in accordance with the Commission's
recommendations, the proposal conforms DTC's rules to current financial
reporting practices and MBS division rules to DTC's rules generally.\4\
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\3\ 15 U.S.C. 78q-1(b)(3)(A).
\4\ DTC's rules affecting non-MBS Division participants have no
similar requirements.
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B. Self-Regulatory Organization's Statement on Burden on Competition
DTC does not believe that the proposed rule change will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No comments on the proposed rule change have been solicited, and no
written comments have been received.
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)(i) of the Act \5\ and pursuant to Rule 19b-4(f)(1) \6\
promulgated thereunder because the proposal constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule. At any time within
sixty days of the filing of such rule change, 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.
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\5\ 15 U.S.C. 78s(b)(3)(A)(i).
\6\ 17 CFR 240.19b-4(f)(1).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549-
0609. 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 in the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing also will be available
for inspection and copying at the principal office of DTC.
All submissions should refer to File No. SR-DTC-99-04 and should be
submitted by June 16, 1999.
[[Page 28542]]
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-13356 Filed 5-25-99; 8:45 am]
BILLING CODE 8010-01-M
