[Federal Register Volume 60, Number 143 (Wednesday, July 26, 1995)]
[Notices]
[Pages 38388-38389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18337]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35992; File No. SR-MSTC-95-08]
Self-Regulatory Organizations; the Midwest Securities Trust
Company; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Establishing Procedures for the Destruction of Expired Rights
and Warrants
July 19, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
\1\ (``Act''), notice is hereby given that on May 24, 1995, the Midwest
Securities Trust Company (``MSTC'') 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 MSTC. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
MSTC proposes to add a new section 3 to Rule 1 of Article VI of its
rules to establish procedures for the orderly destruction of certain
expired rights and warrants.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, MSTC included statements
concerning the purpose of an 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. MSTC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such
statements.\2\
\2\ The Commission has modified the text of the summaries
prepared by MSTC.
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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 add a new section 3
to Article 1, Rule 1 of MSTC's rules to establish procedures for the
orderly destruction of certain expired rights and
[[Page 38389]]
warrants. MSTC proposes this rule change in order to reduce the burden
and cost of maintaining expired warrants and rights in its vault.
MSTC will adhere to the following procedures relating to expired
rights and warrants. First, MSTC shall contact the transfer agent or
the issuer of the securities after their expiration date to verify that
the respective warrants or rights have expired. Second, MSTC will
obtain written confirmation from the transfer agent or the issuer that
the certificates representing such warrants or rights have expired. If
there is no transfer agent, MSTC personnel shall exercise all
reasonable due diligence to confirm that the respective certificates
have expired. Third, MSTC will notify participants of the following:
(1) That according to the judgment of the transfer agent or in the
event that a transfer agent does not exist of other appropriate
parties, the securities certificates are expired; (2) that MSTC will
delete such securities positions from participants' accounts on or
after the thirtieth day following the date of the notice; and (3) that
MSTC shall appropriately mark the securities certificates and destroy
them. At MSTC's discretion, it may retain copies of the certificates on
microfilm or on other media.
MSTC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules and regulations
thereunder because the proposal will assure the safeguarding of
securities or funds in its custody or control or for which it is
responsible.
(B) Self-Regulatory Organization's Statement on Burden on Competition
MSTC does not believe that the proposed rule change will have an
impact on or impose a burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
No written comments have been solicited or received. MSTC will
notify the Commission of any written comments received by MSTC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (i) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
(3) was provided to the Commission for its review at least five days
prior to the filing date; and (4) does not become operative for thirty
days from the date of its filing on May 24, 1995, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A)(iii) \3\ of
the Act and Rule 19b-4(e)(6) \4\ thereunder. In particular, the
Commission believes the proposed standards do not significantly affect
the protection of investors or the public interest and do not impose
any significant burden on competition. At any time within sixty days of
the filing of the 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii) (1988).
\4\ 17 CFR 240.19b-4(e)(6) (1994).
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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 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 MSTC. All
submissions should refer to File No. SR-MSTC-95-08 and should be
submitted by August 16, 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. 95-18337 Filed 7-25-95; 8:45 am]
BILLING CODE 8010-01-M
