[Federal Register Volume 61, Number 163 (Wednesday, August 21, 1996)]
[Notices]
[Pages 43287-43288]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21324]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37570; File No. SR-PHILADEP-96-11]
Self-Regulatory Organizations; The Philadelphia Depository Trust
Company; Notice of Filing of a Proposed Rule Change Regarding the
Destruction of Certain Expired Securities Certificates
August 14, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 28, 1996, the
Philadelphia Depository Trust Company (``Philadep'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change (File No. SR-PHILADEP-96-11) as described in Items I, II, and
III below, which Items have been prepared primarily by Philadep. 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. Sec. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Philadep proposes to amend its rules to permit the destruction of
expired securities certificates representing warrants or rights that
have expired to be carried out under the supervision of Philadep's
internal audit department.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Philadep included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments that it received on the proposed rule change.
The text of these statements may be examined at the places specified in
Item IV below. Philadep 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
submitted by Philadep.
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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 amend Rule 31 which
governs the orderly destruction of securities certificates relating to
expired warrants and rights.\3\ Currently, Section (c) of Rule 31
requires that all securities to be destroyed pursuant to the rule must
be forwarded to Philadep's internal audit department for
destruction.\4\ Under the proposed rule change, Philadep will be
allowed to destroy the certificates in a designated area of Philadep
under the supervision of the internal audit department instead of being
required to destroy such certificates in the internal audit department
itself.
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\3\ The procedures for the destruction of expired securities set
forth in Rule 31 require Philadep to (i) contact the transfer agent
or the issuer of the expired securities to verify that the
respective warrants or rights have expired, (ii) obtain written
confirmation from such transfer agent or issuer that the
certificates representing such warrants or rights have expired (if
there is no transfer agent, Philadep personnel must exercise all
reasonable due diligence to confirm the expired nature of the
respective certificates including consulting with the Philadep's
legal department, internal audit department and senior management),
(iii) notify its participants that in the judgment of the transfer
agent, or other appropriate parties if a transfer agent does not
exist, the securities certificates have expired, (iv) delete such
securities positions from its participants' account on or after the
thirtieth day following the date of such notice, and (v)
appropriately mark the securities certificates and forward them to
its internal audit department for destruction.
\4\ Securities Exchange Act Release No. 35426 (February 28,
1995) [File No. SR-PHILADEP-94-05] (order approving proposed rule
change authorizing Philadep to implement a program for the
destruction of securities certificates relating to expired warrants
and rights).
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Philadep believes the proposed rule change complies with Section
17A of the Act because it is contemplated to foster cooperation and
coordination with persons engaged in the clearance and settlement of
securities transactions by providing an efficient administrative
mechanism to destroy expired securities that presently and
unnecessarily occupy critical space in Philadep's vault.
[[Page 43288]]
(B) Self-Regulatory Organization's Statement on Burden on Competition
Philadep believes that the proposed rule change poses no
appreciable threat or burden on competition and should foster
competition because it provides for an administratively more effective
vault protocol.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received with respect
to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) as the
Commission may designate up to ninety days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which Philadep consents, the Commission will:
(A) By order approve such proposed rule change or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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. Sec. 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 and copying at the principal office of Philadep. All
submissions should refer to the file number SR-PHILADEP-96-11 and
should be submitted by September 11, 1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-21324 Filed 8-20-96; 8:45 am]
BILLING CODE 8010-01-M