[Federal Register Volume 59, Number 163 (Wednesday, August 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20776]
[[Page Unknown]]
[Federal Register: August 24, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34540; File No. SR-Philadep-94-04]
Self-Regulatory Organizations; Philadelphia Depository Trust
Company; Notice of Filing of Proposed Rule Change Modifying Philadep
Rule 2, Section 1 To Require Execution of a Participant's Agreement by
Participants and Pledgees
August 17, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\ notice is hereby given that on August 8, 1994, the
Philadelphia Depository Trust Company (``Philadep'') 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 Philadep. 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
Philadep proposes to modify Philadep Rule 2, Section 1 to require
participants and pledgees to sign a Participant's Agreement.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Philadep 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. Philadep has prepared summaries set forth in section
(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
The proposed rule change will amend Philadep Rule 2, Section 1 with
respect to participants' and pledges' obligations to Philadep. The
proposed rule change will add language requiring participants to
execute a Participant's Agreement and language stating that Philadep's
by-laws, rules, and procedures shall supersede any conflicting
provision[s] of the Participant's Agreement. The proposed rule change
also will delete language requiring participants to execute and deliver
a written instrument specifying their adherence to certain obligations
set forth in Philadep Rule 2. This second written agreement will be
unnecessary because once a Participant's Agreement is signed, the
participant has agreed to abide by all of the rules and obligations of
Philadep, including those set forth in Philadep Rule 2. Accordingly,
all provisions of Rule 2 will be directly enforceable against
participants without the necessity of executing a written agreement
specifying selected provisions of Philadep's Rule 2.
The proposed rule change will codify Philadep's existing but
unwritten policy and practice of requiring all participants to execute
a Participant's Agreement. The proposed rule change is consistent with
Section 17A of the Act and, in particular, with Section 17A(b)(3) (A)
and (F) in that Philadep is organized and its rules are designed to
promote the prompt and accurate clearance and settlement of securities
transactions for which it is responsible and to assure the safeguarding
of securities and funds which are in the custody and control of the
clearing agency.
B. Self-Regulatory Organization's Statement on Burden on Competition
Philadep does not believe that the proposed rule change will impose
an inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received with respect
to 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 Philadep 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. Sec. 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 Philadep. All
submissions should refer to File No. SR-Philadep-94-04 and should be
submitted within September 14, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\2\
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\2\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-20776 Filed 8-23-94; 8:45 am]
BILLING CODE 8010-01-M