94-20776. Self-Regulatory Organizations; Philadelphia Depository Trust Company; Notice of Filing of Proposed Rule Change Modifying Philadep Rule 2, Section 1 To Require Execution of a Participant's Agreement by Participants and Pledgees  

  • [Federal Register Volume 59, Number 163 (Wednesday, August 24, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-20776]
    
    
    [[Page Unknown]]
    
    [Federal Register: August 24, 1994]
    
    
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    SECURITIES AND EXCHANGE COMMISSION
    [Release No. 34-34540; File No. SR-Philadep-94-04]
    
     
    
    Self-Regulatory Organizations; Philadelphia Depository Trust 
    Company; Notice of Filing of Proposed Rule Change Modifying Philadep 
    Rule 2, Section 1 To Require Execution of a Participant's Agreement by 
    Participants and Pledgees
    
    August 17, 1994.
        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
    (``Act'')\1\ notice is hereby given that on August 8, 1994, the 
    Philadelphia Depository Trust Company (``Philadep'') 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 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. 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 modify Philadep Rule 2, Section 1 to require 
    participants and pledgees to sign a Participant's Agreement.
    
    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 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 section 
    (A), (B), and (C) below, of the most significant aspects of such 
    statements.
    
    A. Self-Regulatory Organization's Statement of the Purpose of, and 
    Statutory Basis for, the Proposed Rule Change
    
        The proposed rule change will amend Philadep Rule 2, Section 1 with 
    respect to participants' and pledges' obligations to Philadep. The 
    proposed rule change will add language requiring participants to 
    execute a Participant's Agreement and language stating that Philadep's 
    by-laws, rules, and procedures shall supersede any conflicting 
    provision[s] of the Participant's Agreement. The proposed rule change 
    also will delete language requiring participants to execute and deliver 
    a written instrument specifying their adherence to certain obligations 
    set forth in Philadep Rule 2. This second written agreement will be 
    unnecessary because once a Participant's Agreement is signed, the 
    participant has agreed to abide by all of the rules and obligations of 
    Philadep, including those set forth in Philadep Rule 2. Accordingly, 
    all provisions of Rule 2 will be directly enforceable against 
    participants without the necessity of executing a written agreement 
    specifying selected provisions of Philadep's Rule 2.
        The proposed rule change will codify Philadep's existing but 
    unwritten policy and practice of requiring all participants to execute 
    a Participant's Agreement. The proposed rule change is consistent with 
    Section 17A of the Act and, in particular, with Section 17A(b)(3) (A) 
    and (F) in that Philadep is organized and its rules are designed to 
    promote the prompt and accurate clearance and settlement of securities 
    transactions for which it is responsible and to assure the safeguarding 
    of securities and funds which are in the custody and control of the 
    clearing agency.
    
    B. Self-Regulatory Organization's Statement on Burden on Competition
    
        Philadep does not believe that the proposed rule change will impose 
    an inappropriate burden on competition.
    
    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 NW., Washington, DC 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 Section, 450 Fifth Street, NW., 
    Washington, DC 20549. Copies of such filing will also be available for 
    inspection and copying at the principal office of Philadep. All 
    submissions should refer to File No. SR-Philadep-94-04 and should be 
    submitted within September 14, 1994.
    
        For the Commission by the Division of Market Regulation, 
    pursuant to delegated authority.\2\
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        \2\17 CFR 200.30-3(a)(12) (1993).
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    Margaret H. McFarland,
    Deputy Secretary.
    [FR Doc. 94-20776 Filed 8-23-94; 8:45 am]
    BILLING CODE 8010-01-M
    
    
    

Document Information

Published:
08/24/1994
Department:
Securities and Exchange Commission
Entry Type:
Uncategorized Document
Document Number:
94-20776
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: August 24, 1994, Release No. 34-34540, File No. SR-Philadep-94-04