[Federal Register Volume 59, Number 31 (Tuesday, February 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3479]


[[Page Unknown]]

[Federal Register: February 15, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33597; File No. SR-DTC-93-10]

 

Self-Regulatory Organizations; The Deposit Trust Company; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Regarding 
the Foreign Currency Redemption Service

February 8, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on October 12, 1993, The 
Depository Trust Company (``DTC'') filed with the Securities Exchange 
Commission (``Commission'') the proposed rule change (File No. SR-DTC-
93-10) 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 enhancements to DTC's foreign 
currency payment service to provide for a foreign currency redemption 
service.

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

    DTC's current foreign currency payment service enables participants 
to elect to receive periodic interest payments on certain foreign 
currency denominated issues either through DTC in U.S. dollars or 
directly from the paying agent in the currency in which the issue is 
denominated. The purpose of the proposed rule change is to enable 
participants to make the same election for maturity or redemption 
payments on those foreign currency denominated issues for which the 
foreign currency redemption service is made available with the 
agreement of the paying agent.
    When a participant wishes to receive maturity or redemption 
proceeds in foreign currency on all or part of its position in a 
foreign currency denominated issue, the participant will utilize DTC's 
Participant Terminal System to submit instructions to DTC (including an 
instruction on where to wire the foreign currency proceeds). DTC will 
forward the instructions to the paying agent. DTC will pay the 
appropriate amount of U.S. currency proceeds to the participant, and 
the paying agent will pay the appropriate amount of foreign currency 
proceeds directly to the participant or its customer. A participant 
that wishes to be paid the maturity or redemption proceeds on its 
entire position in U.S. currency will not have to take any action.
    The proposed rule change is consistent with the requirements of the 
Act, particularly section 17A of the Act,\2\ and the rules and 
regulations thereunder applicable to DTC because the proposed rule 
change will encourage the immobilization of foreign currency 
denominated issues in DTC. The proposed rule change will be implemented 
consistently with the safeguarding of securities and funds in DTC's 
custody or control or for which it is responsible because the proposed 
rule change will enhance DTC's existing services for foreign currency 
denominated issues.
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    \2\15 U.S.C. 78q-1 (1988).
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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

    DTC 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) of the Act\3\ and subparagraph (e)(4) of Securities 
Exchange Act Rule 19b-4\4\ because the proposed rule change effects 
changes in existing services of DTC that (i) do not adversely affect 
the safeguarding of securities or funds in the custody or control of 
DTC or for which it is responsible and (ii) do not significantly affect 
the respective rights or obligations of DTC or persons using the 
services.
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    \3\15 U.S.C. 78s(b)(3)(A) (1988).
    \4\17 CFR 240.19b-4(e)(4) (1993).
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    At any time within sixty days of the filing of such 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 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 Room, 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-93-10 and should be submitted by March 8, 
1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-3479 Filed 2-14-94; 8:45 am]
BILLING CODE 8010-01-M