[Federal Register Volume 59, Number 43 (Friday, March 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4998]


[[Page Unknown]]

[Federal Register: March 4, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-33679; File No. SR-DTC-94-01]

 

Self-Regulatory Organization; The Depository Trust Company; 
Notice of Filing of Proposed Rule Change Relating To the Implementation 
of the Standing Instruction Database Feature of the Enhanced 
Institutional Delivery System

February 24, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ notice is hereby given that on January 31, 1994, The 
Depository Trust Company (``DTC'') 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 
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 procedures for the Standing 
Instructions Database (``SID'') feature of DTC's enhanced Institutional 
Delivery (``ID'') system.\2\
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    \2\The enhanced ID system concept was approved in an earlier 
Commission order. The order specified that each individual feature 
of the enhanced ID system would be the subject of a separate filing 
under Section 19(b)(1). Securities Exchange Act Release No. 33466 
(January 12, 1994), 59 FR 3139 [File No. SR-DTC-93-07] (order 
approving concept of enhanced ID system).
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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

    SID is a central repository for customer account and settlement 
information furnished by institutions, agents, and broker-dealers. The 
information includes items such as the agent for an institutional 
customer, the agent's internal account number for the institutional 
customer, and interested parties. A broker-dealer can link its internal 
account numbers for its institutional customers to the internal account 
numbers at the institutions. When entering trade data into the ID 
system, a broker-dealer can simply refer to its internal account number 
in SID, and the ID system will extract the necessary information from 
SID (such as customer name, agent, interested parties, and settlement 
related information) and automatically will add the information to the 
confirmation. SID will eliminate the need for the broker-dealer to 
provide all such information each time that the broker-dealer enters 
trade data into the ID system.
    SID is an optional feature for ID users. However, once a broker-
dealer links its internal customer account number with account 
information furnished to SID by the institutional customer, data in SID 
will be used for certain fields in ID system processing, regardless of 
whether the broker-dealer submits data for those fields, when the 
broker-dealer submits trade data for that institutional customer's 
trades.
    The proposed rule change is consistent with the requirements of 
Section 17A of the Act and the rules and regulations thereunder because 
the proposed rule change will further automate the process by which 
securities transactions are cleared and settled.

(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

    SID has been developed through widespread consultations with 
securities industry members. Written comments from DTC participants or 
others have not been solicited or received on the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will:


    (a) By order approve such proposed rule change or
    (b) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 Section, 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-94-01 and should be submitted by March 
25, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\3\
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    \3\17 CFR 200.30-3(a)(12) (1992).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-4998 Filed 3-3-94; 8:45 am]
BILLING CODE 8010-01-M