[Federal Register Volume 59, Number 43 (Friday, March 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4998]
[[Page Unknown]]
[Federal Register: March 4, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33679; File No. SR-DTC-94-01]
Self-Regulatory Organization; The Depository Trust Company;
Notice of Filing of Proposed Rule Change Relating To the Implementation
of the Standing Instruction Database Feature of the Enhanced
Institutional Delivery System
February 24, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ notice is hereby given that on January 31, 1994, 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 the self-regulatory organization. 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
The proposed rule change consists of procedures for the Standing
Instructions Database (``SID'') feature of DTC's enhanced Institutional
Delivery (``ID'') system.\2\
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\2\The enhanced ID system concept was approved in an earlier
Commission order. The order specified that each individual feature
of the enhanced ID system would be the subject of a separate filing
under Section 19(b)(1). Securities Exchange Act Release No. 33466
(January 12, 1994), 59 FR 3139 [File No. SR-DTC-93-07] (order
approving concept of enhanced ID system).
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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, 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.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
SID is a central repository for customer account and settlement
information furnished by institutions, agents, and broker-dealers. The
information includes items such as the agent for an institutional
customer, the agent's internal account number for the institutional
customer, and interested parties. A broker-dealer can link its internal
account numbers for its institutional customers to the internal account
numbers at the institutions. When entering trade data into the ID
system, a broker-dealer can simply refer to its internal account number
in SID, and the ID system will extract the necessary information from
SID (such as customer name, agent, interested parties, and settlement
related information) and automatically will add the information to the
confirmation. SID will eliminate the need for the broker-dealer to
provide all such information each time that the broker-dealer enters
trade data into the ID system.
SID is an optional feature for ID users. However, once a broker-
dealer links its internal customer account number with account
information furnished to SID by the institutional customer, data in SID
will be used for certain fields in ID system processing, regardless of
whether the broker-dealer submits data for those fields, when the
broker-dealer submits trade data for that institutional customer's
trades.
The proposed rule change is consistent with the requirements of
Section 17A of the Act and the rules and regulations thereunder because
the proposed rule change will further automate the process by which
securities transactions are cleared and settled.
(B) Self-Regulatory Organization's Statement on Burden on Competition
DTC perceives no impact on competition by reason of the proposed
rule change.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
SID has been developed through widespread consultations with
securities industry members. Written comments from DTC participants or
others have not been solicited or received on 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 the self-regulatory organization 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 will also be available for
inspection and copying at the principal office of DTC. All submissions
should refer to File No. SR-DTC-94-01 and should be submitted by March
25, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\3\
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\3\17 CFR 200.30-3(a)(12) (1992).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-4998 Filed 3-3-94; 8:45 am]
BILLING CODE 8010-01-M