[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