[Federal Register Volume 62, Number 182 (Friday, September 19, 1997)]
[Notices]
[Pages 49279-49280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-24969]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39075; File No. SR-DTC-97-13]
Self-Regulatory Organizations; the Depository Trust Company;
Notice of Filing of Proposed Rule Change Regarding the Branch Deposit
Service
September 12, 1997.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ notice is hereby given that on June 30, 1997, 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
[[Page 49280]]
solicit comments from interested persons on the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change will allow DTC to enter into contracts
with individual participants to provide customized processing services
under DTC's branch deposit service (``BDS'').
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 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. 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 the text of the summaries
prepared by DTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
BDS currently allows DTC participants to route securities
certificates and related documentation from their branches and other
satellite offices directly to DTC rather than to the participants' own
central locations for processing before being deposited at DTC.\3\ DTC
has advised the Commission that some participants have requested
customization of BDS in order to suit their individual needs.\4\ The
purpose of the proposed rule change is to permit DTC to enter into
contracts with individual participants to provide such customized
processing services under BDS. Under the proposed rule change, however,
DTC would not be obligated to enter into any such contracts with
participants or to offer the same terms under any such contracts to all
participants.\5\
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\3\ For a complete description of BDS, refer to Securities
Exchange Act Release No. 34600 (August 25, 1994), 59 FR 45317 [File
No. SR-DTC-94-05] (order approving proposed rule change).
\4\ For example, DTC has advised the Commission that one
participant has requested that DTC develop a certain imaging
functionality for BDS. That specific service, however, would not be
used by other participants that utilize BDS.
\5\ DTC has advised the Commission that it will charge fees for
customization of BDS based on a consistently applied methodology.
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DTC believes that the proposed rule change is consistent with the
requirements of section 17A(b)(3)(A) of the Act \6\ and the rules and
regulations thereunder because it promotes efficiencies in the
clearance and settlement of securities transactions.
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\6\ 15 U.S.C. 78q-1(b)(3)(A).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
DTC believes that no burden will be placed on competition as a
result of the proposed rule change.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Comments were neither solicited nor received.
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 DTC 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. 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 also will be available for
inspection and copying at the principal office of DTC. All submissions
should refer to File No. SR-DTC-97-13 and should be submitted by
October 10, 1997.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-24969 Filed 9-18-97; 8:45 am]
BILLING CODE 8010-01-M
