[Federal Register Volume 60, Number 17 (Thursday, January 26, 1995)]
[Notices]
[Pages 5235-5236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1981]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35231; File No. SR-MSTC-94-13]
Self-Regulatory Organization; Midwest Securities Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
That Merges the MSTC Bearer Bond System and the MSTC Registered Bond
System
January 13, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 11, 1994, the
Midwest Securities Trust Company (``MSTC'') 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
mainly by MSTC, a self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
\1\15 U.S.C. 78s(b)(1) (1994).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
MSTC proposes to merge its bearer bond system into its registered
bond system and to make certain related conforming changes.
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
MSTC currently processes bearer municipal bonds in a different
system from that which is used to process registered bonds and
equities.\2\ This proposal merges the bearer and registered securities
processing systems with the registered securities processing system
being the surviving system.
\2\The only bearer securities currently processed by MSTC are
municipal bonds. The registered securities processing system, the
``V3 System,'' is an enhanced electronic system. Telephone
conversation between David T. Rusoff, Attorney, Foley & Lardner, and
Thomas C. Etter, Jr., Senior Counsel, Division of Market Regulation,
Commission (December 1, 1994).
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MSTC believes that merging the two systems provided several
advantages. First, it reduces the number of separate reports that must
be provided to participants. Second, it consolidates into one system
all bearer and registered securities activity, input/inquiry functions,
reports, and file transmissions. Third, it makes intraday transactions
in bearer securities subject to the 1:30 p.m. cutoff that is currently
in effect for registered securities transactions rather than the
existing 2:30 p.m. cutoff time.\3\ Finally, the merger permits bearer
securities to be eligible for MSTC's pledge loan program.
\3\All times in this proposal are Central Time.
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MSTC believes that the proposed rule change is consistent with
Section 17A of the Act\4\ in that it will facilitate the prompt and
accurate clearance and settlement of securities transactions and will
assure the safeguarding of securities and funds which are in MSTC's
custody or control or for which MSTC is responsible.
\4\15 U.S.C. 78q-1 (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
MSTC believes that the proposed rule change will not place any
burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
MSTC has neither solicited nor received any written comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act\5\ and Rule 19b-4(e)(4) thereunder\6\
because the proposal effects a change in an existing service of MSTC
which does not adversely affect the safeguarding of securities or funds
in the custody or control of MSTC or for which it is responsible and
does not significantly affect the respective rights or obligations of
MSTC or persons using the services.
\5\15 U.S.C. 78s(b)(3)(A)(iii) (1988).
\6\17 CFR 240.19b-4(e)(4) (1994).
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At any time within sixty days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submission
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington D.C. 20549.
Copies of the submissions, all subsequent [[Page 5236]] 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. 442, will be available for inspection and
copying at the Commission's Public Reference Section, 450 Fifth Street,
N.W., Washington, D.C. 20549. Copies of such filing will also be
available at the principal offices of MSTC. All submissions should
refer to File No. SR-MSTC-94-13 and should be submitted by February 16,
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. 95-1981 Filed 1-25-95; 8:45 am]
BILLING CODE 8010-01-M