[Federal Register Volume 59, Number 42 (Thursday, March 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4866]


[[Page Unknown]]

[Federal Register: March 3, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33668; File No. SR-MSTC-89-02]

 

Self-Regulatory Organizations; Midwest Securities Trust Company; 
Order Approving Proposed Rule Change Relating To the Processing of 
Interchangeable Municipal Bonds Deposited in Registered Form

February 23, 1994.
    On April 11, 1989, Midwest Securities Trust Company (``MSTC'') 
filed a proposed rule change (File No. SR-MSTC-89-02) with the 
Securities and Exchange Commission (``Commission'') pursuant to section 
19(b)(1) of the Securities Exchange Act of 1934 (``Act'').\1\ On May 2, 
1989, MSTC filed an amendment to the proposed rule change.\2\ Notice of 
the proposal was published in the Federal Register on July 5, 1989, to 
solicit comments from interested persons.\3\ No comments have been 
received by the Commission. This order approves the proposal.
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    \1\15 U.S.C. 78s(b)(1) (1988).
    \2\As originally filed, MSTC requested that its proposal be 
declared immediately effective pursuant to section 19(b)(3)(A) of 
the Act. In the amendment, MSTC requested that its proposal be filed 
pursuant to Section 19(b)(2) of the Act. Letter from Jeffrey E. 
Lewis, Associate Counsel, MSTC, to Richard Konrath, Attorney, 
Division of Market Regulation, Commission (May 2, 1989).
    \3\Securities Exchange Act Release No. 26970 (June 23, 1989), 54 
FR 28136.
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I. Description of the Proposal

    The proposal establishes procedures for the deposit, processing, 
and withdrawal of the registered form of interchangeable municipal 
bonds at MSTC.\4\ (Prior to this proposal, MSTC accepted the bearer 
form of interchangeable municipal bonds.) Deposits of the registered 
form of interchangeable municipal bonds are maintained along with 
deposits of the bearer form in MSTC's Bearer System and lose their 
registered identities. Interchangeable municipal bonds are eligible for 
deposit at MSTC only in the MSTC Bearer System.
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    \4\Interchangeable municipal bonds are municipal security issues 
that may be held in registered form or bearer form and may be 
converted from one form to the other.
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    The proposal also establishes procedures for the withdrawal of 
interchangeable municipal bonds from MSTC's Bearer System. A 
participant effecting a withdrawal of interchangeable municipal bonds 
from MSTC may request certificates in either bearer or registered form, 
and MSTC, while offering no guarantee, will attempt to fill such 
requests.

II. Discussion

    The Commission believes that the proposal is consistent with the 
Act and particularly with section 17A of the Act.\5\ Sections 17A(b)(3) 
(A) and (F) of the Act\6\ require that a clearing agency be organized 
and its rules designed to facilitate the prompt and accurate clearance 
and settlement of securities transactions and to assure the 
safeguarding of securities and funds that are in its custody and 
control or for which it is responsible. The Commission believes that 
this proposal is consistent with those sections of the Act because it 
facilitates the prompt and accurate clearance and settlement of 
securities transactions by providing an automated, centralized location 
where MSTC participants can maintain both the registered and bearer 
form of their interchangeable municipal bonds. Furthermore, MSTC's 
Bearer System, along with the modifications allowing for the processing 
of the registered form of interchangeable municipal bonds, has been 
designed to assure that MSTC fulfills its safeguarding obligations 
under the Act.
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    \5\15 U.S.C. 78q-1 (1988).
    \6\15 U.S.C. 78q-1(b)(3) (A) and (F) (1988).
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III. Conclusion

    For the reasons discussed above, the Commission believes that the 
proposal is consistent with the requirements of the Act, particularly 
with those of section 17A of the Act, and the rules and regulations 
thereunder.
    It is therefore ordered, Pursuant to section 19(b)(2) of the 
Act,\7\ that the above-mentioned proposed rule change (File No. SR-
MSTC-89-02) be, and hereby is, approved.


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    \7\15 U.S.C. 78s(b)(2) (1988).

    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) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-4866 Filed 3-2-94; 8:45 am]
BILLING CODE 8010-01-M