[Federal Register Volume 60, Number 103 (Tuesday, May 30, 1995)]
[Notices]
[Pages 28191-28192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13073]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35752; file No. SR-PTC-95-04]
Self-Regulatory Organizations; Participants Trust Company; Notice
of Filing and Immediate Effectiveness of Proposed Rule Changing
Custodians for the Safekeeping of Physical Certificates on Deposit With
the Participants Trust Company
May 22, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 1, 1995, the
Participants Trust Company (``PTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change (File No.
SR-PTC-95-04) as described in Items I, II, and III below, which Items
have been prepared primarily by PTC. On May 9, 1995, PTC filed an
amendment to the proposed rule change.\2\ 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).
\2\ As originally filed, the proposal incorrectly stated that
the effective date of the transfer of securities was to be completed
on or about May 8, 1996. The amendment set forth the correct date as
May 8, 1995. Letter from Leopold S. Rassnick, Senior Vice President,
General Counsel, and Secretary, PTC, to Jonathan Katz, Secretary,
Commission (May 9, 1995).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The proposed rule change concerns PTC's change in custodians for
the safekeeping of physical certificates on deposit with PTC.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, PTC 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. PTC has prepared summaries, set forth in sections (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 PTC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
On April 18, 1995, PTC entered into a custody agreement with The
Depository Trust Company (``DTC'') providing for the safekeeping by DTC
of physical certificates on deposit with PTC. On the same date, PTC
amended its custody agreement with Chemical Bank providing for the
termination of the current custody arrangements with Chemical Bank. DTC
began providing custodial services upon the completion of the transfer
of the physical certificates to DTC on May 8, 1995. The custodial
services to be provided by DTC are substantially similar to the
services previously provided by Chemical Bank at considerable savings
to PTC and its participants. The change in custodians was authorized by
PTC's Board of Directors after completion of a due diligence review of
DTC's facilities and procedures. DTC currently has approximately $8.3
trillion in securities under its custody and control in connection with
the custodial services it offers to its own participants.
PTC believes that the proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act \4\ and the rules and regulations
thereunder because it provides for the safeguarding of securities and
funds in PTC's custody or control or for which PTC is responsible.
\4\ 15 U.S.C. 78q-1(b)(3)(F) (1988).
---------------------------------------------------------------------------
(B) Self-Regulatory Organization's Statements on Burden on Competition
PTC does not believe that the proposed rule change imposes any
burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
PTC has neither solicited nor received comments on this proposed
rule change.
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)(iii) of the Act \5\ and subparagraph (e)(3) of Rule 19b-4
\6\ thereunder because the proposed rule change concerns the
administration of PTC. 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.
\5\ 15 U.S.C. 78s(b)(3)(A)(iii) (1988).
\6\ 17 U.S.C. 240.19b-4(e)(3) (1994).
[[Page 28192]]
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, N.W., Washington, D.C. 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 in 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 PTC. All
submissions should refer to File No. SR-PTC-95-04 and should be
submitted by June 20, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
\7\ 17 CFR 200.30-3(a)(12) (1994).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-13073 Filed 5-26-95; 8:45 am]
BILLING CODE 8010-01-M
