[Federal Register Volume 59, Number 63 (Friday, April 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7761]


[[Page Unknown]]

[Federal Register: April 1, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33809; File Nos. SR-MCC-94-04 and SR-MSTC-94-06]

 

Self-Regulatory Organizations; Midwest Clearing Corporation and 
Midwest Securities Trust Company; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Changes Relating to Technical Amendments 
to Rules

March 24, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 3, 1994, and March 
4, 1994, respectively, the Midwest Securities Trust Company (``MSTC'') 
and the Midwest Clearing Corporation (``MCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
changes as described in Items I, II, and III below, which Items have 
been primarily prepared by MSTC and MCC. The Commission is publishing 
this notice to solicit comments on the proposed rule changes from 
interested persons.
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    \1\15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organizations' Statement of the Terms of Substance 
of the Proposed Rule Changes

    The purpose of the proposed rule changes is to make technical 
corrections to section 1(b) of Rule 1 of Article VI of MSTC's rules and 
section 1(b) of Rule 1 of Article IX of MCC's rules.

II. Self-Regulatory Organizations' Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    In its filing with the Commission, MSTC and MCC included statements 
concerning the purpose of and basis for the proposed rule changes and 
discussed any comments they received on the proposed rule changes. The 
text of these statements may be examined at the places specified in 
Item IV below. MSTC and MCC have prepared summaries, set forth in 
sections (A), (B), and (C) below, of the most significant aspects of 
such statements.

A. Self-Regulatory Organizations' Statement of the Purposes of, and 
Statutory Basis for, the Proposed Rule Changes

    In a previous order, the Commission approved proposed rule changes 
that made enhancements to MSTC's and MCC's operating systems.\2\ As 
part of the enhancements, MSTC redefined ``depository free position'' 
as ``segregated position,'' and MCC redefined ``clearing free 
position'' as ``general free position'' and redefined ``loan free 
position'' as ``available for loan position.'' As a result, MSTC and 
MCC replaced the old terms with the new terms throughout their 
respective rules. However, the earlier proposed rule changes did not 
replace ``depository free position'' with ``segregated position'' in 
section 1(b) of Rule 1 of Article VI of MSTC's rules. Similarly, the 
earlier proposed rule changes failed to replace ``clearing free 
position'' with ``general free position'' and failed to replace ``loan 
free position'' with ``available for loan position'' in section 1(b) of 
Rule 1 of Article IX of MCC's rules. The current proposed rule changes 
make these technical corrections.
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    \2\Securities Exchange Act Release No. 28877 (February 12, 
1991), 56 FR 6892 [File Nos. SR-MSTC-90-01 and SR-MCC-90-01] (order 
approving proposed rule changes).
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    MSTC and MCC believe the proposed rule changes are consistent with 
sections 17A(b)(3)(A) and (F)\3\ of the Act in that the proposed rule 
changes facilitate the prompt and accurate clearance and settlement of 
securities transactions and will assure the safeguarding of securities 
and funds which are in MSTC or MCC's custody or control or for which 
MSTC or MCC is responsible.
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    \3\15 U.S.C. 78q-1(b)(3) (A) and (F).
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B Self-Regulatory Organizations' Statements on Burden on Competition

    MSTC and MCC believe that no burden will be placed on competition 
as a result of the proposed rule changes.

C Self-Regulatory Organizations' Statement on Comments on the Proposed 
Rule Changes Received From Members, Participants or Others

    MSTC and MCC neither solicited nor received written comments on the 
proposed rule changes.

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

    The foregoing rule changes have become effective pursuant to 
section 19(b)(3)(A)(i)\4\ of the Act and pursuant to Rule 19b-
4(e)(4)\5\ in that the proposed rule changes effect a change in 
existing services of MSTC and MCC that do not adversely affect the 
safeguarding of securities or funds in the custody or control of MSTC 
or MCC or for which MSTC or MCC is responsible and does not 
significantly effect the respective rights or obligations of MSTC or 
MCC or persons using the services. At any time within sixty days of the 
filing of such rule changes, the Commission may summarily abrogate such 
rule changes 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.
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    \4\15 U.S.C. 78s(b)(3)(A)(i).
    \5\17 CFR 240.19b-4(e)(4) (1993).
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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 changes that are filed with the 
Commission, and all written communications relating to the proposed 
rule changes 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 
Commission's Public Reference Section, 450 Fifth Street NW., 
Washington, DC 20549. Copies of such filings also will be available for 
inspection and copying at the principal office of MSTC and MCC. All 
submissions should refer to File Nos. SR-MSTC-94-06 and SR-MCC-94-04 
and should be submitted by April 22, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\17 CFR 200-30-(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-7761 Filed 3-31-94; 8:45 am]
BILLING CODE 8010-01-M