[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]


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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.
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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 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.
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    \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).
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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.
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    \6\15 U.S.C. 78q-1(b)(3) (A) and (F) (1988).
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    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).
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    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\17 CFR 200.30-3(a)(12) (1992).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-2722 Filed 2-4-94; 8:45 am]
BILLING CODE 8010-01-M