96-17635. Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Processing Schedule for Deposits and Withdrawals of Government Securities  

  • [Federal Register Volume 61, Number 134 (Thursday, July 11, 1996)]
    [Notices]
    [Pages 36593-36594]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-17635]
    
    
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    SECURITIES AND EXCHANGE COMMISSION
    [Release No. 34-37394; File No. SR-DTC-96-10]
    
    
    Self-Regulatory Organizations; The Depository Trust Company; 
    Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
    Relating to the Processing Schedule for Deposits and Withdrawals of 
    Government Securities
    
    July 2, 1996.
        Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
    (``Act''),\1\ notice is hereby given that on May 30, 1996, 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) (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 modifies DTC's processing schedule for 
    deposits and withdrawals of government securities eligible for 
    settlement through the Federal Reserve Book-Entry (``FBE'') system.
    
    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 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. 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 parts of these statements.
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    (A) Self-Regulatory Organization's Statement of the Purpose of, and 
    Statutory Basis for, the Proposed Rule Change
    
        DTC proposes to revise the processing schedule for deposits and 
    withdrawals of government securities eligible for settlement through 
    the FBE system. In the past, participants depositing securities through 
    the FBE system were required to deposit eligible securities by 12:30 
    p.m. Eastern Standard Time (``EST'') in order to receive credit in time 
    for the securities to be used the same day for DTC book-entry 
    deliveries for value. As a result of recent changes in the cutoff time 
    for the FBE system and the recent conversion by DTC to a same-day funds 
    settlement system, DTC is able to extend from 12:30 p.m. to 2:00 p.m. 
    EST the time by which a participant may deposit such securities through 
    the FBE system so that the securities may be used that day for valued 
    book-entry deliveries.
        DTC is also able to extend the time by which a participant may 
    withdraw securities eligible for the FBE system in order to make a 
    book-entry delivery from DTC's account at the Federal Reserve Bank of 
    New York (``FRBNY'') to another FRBNY member. DTC proposes to extend 
    the cutoff time for the withdrawal of FBE system eligible securities 
    from 11:00 a.m. EST to 1:00 p.m. EST.
        The proposed rule change is consistent with the requirements of 
    Section 17A of the Act,\3\ in that the proposed rule change will 
    promote efficiencies in the clearance and settlement of government 
    securities transactions.
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        \3\ 15 U.S.C. 78q-1 (1988).
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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.
    
    [[Page 36594]]
    
    (C) Self-Regulatory Organization's Statement on Comments on the 
    Proposed Rule Change Received From Members, Participants or Others
    
        Written comments from DTC participants or others have not been 
    solicited or 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)(iii) of the Act \4\ and Rule 19b-4(e)(4),\5\ in that the 
    proposal effects change in an existing service of a registered clearing 
    agency that does not adversely affect the safeguarding of securities or 
    funds in the custody or control of the clearing agency or for which it 
    is responsible and does not significantly affect the respective rights 
    or obligations of the clearing agency or persons using the service. At 
    any time within sixty days of the filing of such proposed 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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        \4\ 15 U.S.C. 78s(b)(3)(A)(iii) (1988).
        \5\ 17 CFR 240.19b-4(e)(4) (1995).
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    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 Room, 450 Fifth Street, N.W., Washington, 
    D.C. 20549. Copies of such filing will also be available for inspection 
    at DTC. All submissions should refer to the File No. SR-DTC-96-10 and 
    should be submitted by August 1, 1996.
    
        For the Commission by the Division of Market Regulation, 
    pursuant to delegated authority.\6\
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        \6\ 17 CFR 200.30-3(a)(12) (1995).
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    Jonathan G. Katz,
    Secretary.
    [FR Doc. 96-17635 Filed 7-10-96; 8:45 am]
    BILLING CODE 8010-01-M
    
    
    

Document Information

Published:
07/11/1996
Department:
Securities and Exchange Commission
Entry Type:
Notice
Document Number:
96-17635
Pages:
36593-36594 (2 pages)
Docket Numbers:
Release No. 34-37394, File No. SR-DTC-96-10
PDF File:
96-17635.pdf