[Federal Register Volume 59, Number 25 (Monday, February 7, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-2722] [[Page Unknown]] [Federal Register: February 7, 1994] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-33556; File No. SR-MSTC-94-01] Self-Regulatory Organizations; Midwest Securities Trust Company; Notice of Filing and Order Granting Temporary Approval on an Accelerated Basis of a Proposed Rule Change Concerning the Institutional Participant Services Program January 31, 1994. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on January 6, 1994, the Midwest Securities and Trust Company (``MSTC'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared primarily by MSTC. The Commission is publishing this notice and order to solicit comments from interested persons and to grant accelerated approval of the proposed rule change on a temporary basis through January 31, 1995. --------------------------------------------------------------------------- \1\15 U.S.C. 78s(b)(1) (1988). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change extends the temporary approval of (i) the Institutional Participant Services Program (``Program'') and (ii) the Institutional Participant (``Institutions'') category of participants. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, MSTC 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. MSTC has prepared summaries, set forth in Sections (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 Commission has approved the Program on a temporary basis through January 31, 1994.\2\ The rationale for initially approving the rule change on a temporary basis was to provide MSTC with the opportunity to formulate more definitive financial and operational standards for Institutions that desire to participate in the Program. On December 26, 1990, MSTC filed a proposed rule change\3\ which proposed more definitive standards and which requested permanent approval of the Program.\4\ In order to provide the Commission and MSTC with the opportunity to continue their studies of these standards while providing continuity of service to Institutions participating in the Program, MSTC requests that the Commission grant temporary approval of this proposed rule change on an accelerated basis under the terms of the previous temporary approval orders through January 31, 1995. MSTC believes that the proposed rule change is consistent with Section 17A of the Act\5\ because it will promote the prompt and accurate clearance and settlement of securities transactions and help perfect the national system for the clearance and settlement of securities transactions. --------------------------------------------------------------------------- \2\Securities Exchange Act Release Nos. 27752 (March 1, 1990), 55 FR 8271 [File No. SR-MSTC-89-05]; 28844 (February 1, 1991), 56 FR 5035 [File No. SR-MSTC-91-01]; 29493 (July 26, 1991), 56 FR 36854 [File No. SR-MSTC-91-03]; 30326 (January 31, 1992), 57 FR 4783 [File No. SR-MSTC-92-01]; 30981 (August 10, 1992), 57 FR 35616 [File No. Sr-MSTC-92-06]; and 31798 (January 29, 1993), 58 FR 7276 [File No. SR-MSTC-92-11] (collectively referred to as ``temporary approval orders''). \3\File No. SR-MSTC-90-10. \4\For a complete description of the services offered and the current standards of financial and operational capabilities for Institutions, refer to the temporary approval orders. \5\15 U.S.C. 78q-1 (1988). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition MSTC believes that no burdens 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 MSTC has not received any comments from participants on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Commission finds that the proposed rule change is consistent with the requirements of the Act and, in particular, with the requirements of section 17A(b)(3) (A) and (F) of the Act.\6\ Those sections require that the rules and organizational structure of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions and to remove impediments to and perfect the mechanism for the national system for the prompt and accurate clearance and settlement of securities transactions. The Commission believes that MSTC's proposal will help achieve these requirements by providing Institutions with the opportunity to participate directly in the national market system through MSTC's Program. --------------------------------------------------------------------------- \6\15 U.S.C. 78q-1(b)(3) (A) and (F) (1988). --------------------------------------------------------------------------- MSTC has requested that the Commission approve the proposed rule change prior to the thirtieth day after the date of publication of notice of the filing. The Commission finds good cause for so approving the proposed rule change because such accelerated approval will permit MSTC to offer continuity of service to Institutions that currently participate in the Program while providing the Commission and MSTC with additional time to analyze MSTC's proposed standards of participation and of financial and operational capabilities for Institutions. The Commission does not anticipate that it will receive any negative comments on the proposed rule change in light of the fact that no comments have been received on the proposals approved in the temporary approval orders, which were identical in substance to this proposed rule change. Furthermore, the Commission notes that the Program has operated without incident during the previous temporary approval periods. 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 at the principal office of MSTC. All submissions should refer to File No. SR- MSTC-94-01 and should be submitted by February 28, 1994. It is therefore ordered, Pursuant to Section 19(b)(2) of the Act,\7\ that the proposed rule change (File No. SR-MSTC-94-01) be, and hereby is, approved on an accelerated basis through January 31, 1995. \7\15 U.S.C. 78s(b)(2) (1988). --------------------------------------------------------------------------- For the Commission by the Division of Market Regulation, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\17 CFR 200.30-3(a)(12) (1992). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 94-2722 Filed 2-4-94; 8:45 am] BILLING CODE 8010-01-M