[Federal Register Volume 59, Number 126 (Friday, July 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16010]


[[Page Unknown]]

[Federal Register: July 1, 1994]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34253; File No. SR-MSTC-94-05]

 

Self-Regulatory Organizations; Midwest Securities Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Definition of Pledged Position

June 24, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 18, 1994, Midwest 
Securities Trust Company (``MSTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change (File No. 
SR-MSTC-94-05) as described in Items I, II, and III below, which Items 
have been prepared primarily by MSTC. MSTC supplemented the proposal 
with an explanatory letter dated June 6, 1994.\2\ The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
---------------------------------------------------------------------------

    \1\15 U.S.C. 78s(1) (1988).
    \2\Letter from David T. Rusoff, Attorney, Foley & Lardner, to 
Thomas C. Etter, Attorney, Division of Market Regulation, Commission 
(June 6, 1994).
---------------------------------------------------------------------------

I. Self-Regulatory Organizations Statement of the Terms of Substance of 
the Proposed Rule Change

    The proposed rule change makes a technical correction to the 
definition of ``pledged position'' in Article I, Rule 1 of MSTC's 
Rules.

II. Self-Regulatory Organizations Statement of the Purpose of, and 
Statutory basis for, the Proposed Rule Change

    In its filing with the Commission, MSTD 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. MSTC has 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 Change

    The purpose of the proposal is to make a technical revision to 
MSTC's definition of ``pledged position.'' The technical correction is 
needed to conform the definition of pledged position to changes 
approved in File Nos. SR-MSTC-90-01\3\ and SR-MSTC-90-08.\4\ File No. 
SR-MSTC-90-01 provided the basic definition of pledged position, and 
File No. SR-MSTC-90-08 added to that definition in connection with 
MSTC's Same Day Funds Settlement Service. Inadvertently, however, the 
earlier language of the rule was never modified to reflect the new text 
of File No. SR-MSTC-90-08, and the new text was never added to the MSTC 
rulebook. This filing corrects those past oversights.
---------------------------------------------------------------------------

    \3\Securities Exchange Act Release No. 28877, (February 12, 
1991), 56 FR 6892 (order approving proposed rule change relating to 
changes to MSTC's operating system).
    \4\Securities Exchange Act Release No. 32300 (May 12, 1993), 58 
FR 29438 (order approving proposed rule change implementing a pilot 
program for same-day funds settlement service).
---------------------------------------------------------------------------

    MSTC believes that the proposed rule change is consistent with 
Section 17A(b)(3)(A) and (F) of the Act\5\ in that it facilitates and 
promotes the prompt and accurate clearance and settlement of securities 
transactions.
---------------------------------------------------------------------------

    \5\15 U.S.C. 78q-1(b)(3)(A) and (F) (1988).
---------------------------------------------------------------------------

(B) Self-Regulatory Organizations Statement on Burden on Competition

    MSTC believes that the proposed rule change will not place any 
burden on competition.

(C) Self-Regulatory Organizations Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    MSTC has neither solicited nor received any written comments on the 
proposed rule change.

IIII. 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)(i) of the Act\6\ and subparagraph (e)(1) of Rule 19b-4 
thereunder\7\ because it constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule. 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.
---------------------------------------------------------------------------

    \6\15 U.S.C. 78s(b)(3)(A)(i) (1988).
    \7\17 CFR 240.19b-4(e)(1) (1993),
---------------------------------------------------------------------------

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, 350 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 at the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filings will also be available for 
inspection and copying at the principal office of MSTC. All submissions 
should refer to File Number SR-MSTC-94-05 and should be submitted by 
July 22, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\17 CFR 200.30-3(a)(12) (1993).
---------------------------------------------------------------------------

Jonathan G. Katz,
Secretary.
[FR Doc. 94-16010 Filed 6-30-94; 8:45 am]
BILLING CODE 8010-01-M