[Federal Register Volume 60, Number 188 (Thursday, September 28, 1995)]
[Notices]
[Pages 50231-50233]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24028]
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[[Page 50232]]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36264; File No. SR-PHILADEP-95-07]
Self-Regulatory Organizations; Philadelphia Depository Trust
Company; Notice of Filing of Proposed Rule Change Seeking To Implement
the Fully Automated Securities Transfer Reconciliation Accounting
Control System on a Permanent Basis
September 21, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 14, 1995, 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
parties.
\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 seeks permanent approval for its Fully Automated
Securities Transfer Reconciliation Accounting Control System
(``FASTRACS'').\2\
\2\ For a complete description of FASTRACS, refer to Securities
Exchange Act Release Nos. 34404 (July 19, 1994), 59 FR 38010 [File
No. SR-PHILADEP-90-03] (order approving proposed rule change
relating to implementation of an automated balance certificate
program on a temporary basis until December 30, 1994) and 35676 (May
4, 1995), 60 FR 24951 [File No. SR-PHILADEP-94-06] (order granting
temporary approval of a proposed rule change extending the pilot
program for FASTRACS until December 29, 1995).
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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 the 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, as set forth in
sections (A), (B), and (C) below, of the most significant aspects of
these statements.\3\
\3\ The Commission has modified the text of the summaries
prepared by PHILADEP.
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A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
On July 19, 1994, the Commission approved a proposed rule change
establishing a pilot program for FASTRACS for the transfer of certain
securities between PHILADEP and certain transfer agents.\4\ On March
10, 1995, the Commission extended its approval of the pilot program
through December 29, 1995.\5\ FASTRACS is an automated program by which
PHILADEP and the participating transfer agents use a master balance
certificate to evidence the number of securities of a particular issue
that are registered in PHILADEP's nominee name. The transfer agents
have custody of the securities in the form of balance certificates. The
transfer agents adjust daily the balance certificates to reflect
PHILADEP's withdrawal and deposit activity.
\4\ Securities Exchange Act Release No. 34404 (July 19, 1994),
59 FR 38010 [File No. SR-PHILADEP-90-03] (order approving FASTRACS
program on a temporary basis).
\5\ Securities Exchange Act Release No. 35676 (May 4, 1995), 60
FR 24951 [File No. SR-PHILADEP-94-06] (order granting temporary
approval of a proposed rule change extending the pilot program for
FASTRACS until December 29, 1995). The Commission extended the
temporary approval of the FASTRACS program so that PHILADEP could
complete adequate testing. The program was limited to three transfer
agents for the duration of the temporary approval period.
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Since obtaining temporary approval of the original filing, PHILADEP
has provided the Commission with copies of the test results of FASTRACS
activity among the three designated transfer agents. PHILADEP now seeks
permanent approval of FASTRACS and requests that the Commission allow
it to implement FASTRACS with an unlimited number of transfer agents.
PHILADEP states that FASTRACS has enhanced PHILADEP's operational
efficiency, has substantially reduced its burdens in reconciling its
positions, and has saved costs associated with these functions.
PHILADEP represents that it has encountered no significant operational
problems and believes the system operated effectively during the
testing phase. Furthermore, PHILADEP believes the current filing is
consistent with the Commission's Direct Registration System (``DRS'')
initiative \6\ insofar as DRS compels PHILADEP and other participating
clearing agencies to establish fully operational automated programs for
the transfer of certain securities between participating clearing
agencies and their transfer agents.
\6\ For a complete description of DRS, refer to Securities
Exchange Act Release No. 35038 (December 1, 1994), 59 FR 63652 [File
No. S7-34-94] (concept release soliciting comment on proposed
transfer agent operated direct registration system).
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PHILADEP believes that the proposed rule change is consistent with
its requirements under 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 operate its deposit
and transfer operation.
B. Self-Regulatory Organization's Statement on Burden on Competition
PHILADEP contends that the proposed rule change poses no
appreciable threat or 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 Changes 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 changes or
(B) Institute proceeding to determine whether the proposed rule
changes should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making such 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 respecting the proposed rule change that are filed with the
Commission, and all written communications concerning the proposed rule
change between the Commission and any person, other than those that may
be withheld from the public pursuant to 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, N.W.,
Washington, D.C.
[[Page 50233]]
20549. Copies of such filings will also be available for inspection and
copying at the principal office of PHILADEP. All submissions should
refer to File No. SR-PHILADEP-95-07 and should be submitted within
October 19, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
\7\ 17 CFR 200.30-3(a)(12)(1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-24028 Filed 9-27-95; 8:45 am]
BILLING CODE 8010-01-M
