[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