[Federal Register Volume 60, Number 162 (Tuesday, August 22, 1995)]
[Notices]
[Pages 43629-43630]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20694]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36097; File No. SR-NSCC-95-09]
Self-Regulatory Organization; National Securities Clearing
Corporation; Notice of Filing of Proposed Rule Change Relating to
Modifications to its Procedures to Allow the Processing of Voluntary
Reorganizations With Protect Periods of Three Days or Greater
August 11, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 27, 1995, National
Securities Clearing Corporation (``NSCC'') 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 NSCC. 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
The text of the proposed rule change consists of modifications to
NSCC's Procedures to allow the processing of voluntary reorganizations
with protect periods of three days or greater.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such
statements.\2\
\2\ These statements have been modified by the Commission.
[[Page 43630]]
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
NSCC recently modified its Rules and Procedures to accommodate
three-day (``T+3'') settlement of securities transactions. NSCC did not
modify its Procedures for voluntary reorganizations (i.e., tender or
exchange offers) which currently require a protect period \3\ of five
days or greater because the industry indicated to NSCC that five day
protect periods would prevail for a substantial period of time after
the implementation of T+3. However, with the implementation of T+3,
some voluntary reorganizations have had protect periods of three days
rather than five days. In response, NSCC has suspended references in
its Procedures to the five day protect period in order to accommodate
voluntary reorganizations with three day protect periods. Accordingly,
the purpose of the proposed rule change is to modify Section VII.H.4(b)
of NSCC's Procedures to allow the processing of voluntary
reorganizations with protect periods of three days or greater through
NSCC's Continuous Net Settlement System.
\3\ A protect period is generally understood to mean the amount
of time after the expiration of a tender or exchange offer that the
owner or record holder who has elected to participate in the offer
has to submit the shares to the tender agent to cover his or her
position.
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The proposed rule change is consistent with the requirements of
Section 17A of the Act and the rules and regulations thereunder because
it should facilitate the prompt and accurate clearance and settlement
of securities transactions.
(B) Self-Regulatory Organization's Statement on Burden on Competition
NSCC 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 relating to the proposed rule change have been
solicited or received. NSCC will notify the Commission of any written
comments received by NSCC.
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 NSCC 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. 552, will be available for inspection and copying in the
Commission's Public Reference Room in Washington, D.C. 20549. Copies of
such filing will also be available for inspection and copying at the
principal office of NSCC. All submissions should refer to the File No.
SR-NSCC-95-09 and should be submitted by September 12, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-20694 Filed 8-21-95; 8:45 am]
BILLING CODE 8010-01-M
