[Federal Register Volume 59, Number 243 (Tuesday, December 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31169]


[[Page Unknown]]

[Federal Register: December 20, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35098; File No. SR-MSTC-94-17]

 

Self-Regulatory Organizations; Midwest Securities Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Legal Expert System

December 13, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 29, 1994, the 
Midwest Securities Trust Company (``MSTC'') 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 MSTC. 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 Organizations Statement of the Terms and Substance 
of the Proposed Rule Change

    The purpose of the proposed change is to change the pricing 
structure of the Legal Expert System and to clarify MSTC's policies 
with regard to the use of the Legal Expert System.\2\
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    \2\For a complete description of the Legal Expert System, refer 
to Securities Exchange Act Release No. 33756 (March 11, 1994), 54 FR 
13350 [File No. SR-MSTC-94-02] (order approving a rule change 
regarding the Legal Expert System's fees and a clarification 
disclaiming any liability on MSTC's part for any misinformation 
contained in the Legal Expert 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, MSTC 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 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

    MSTC proposes to amend a portion of its services and the schedule 
of charges relating to the Legal Expert System. MSTC also proposes to 
clarify its existing policy with respect to the use of the Legal Expert 
System by participants.
    The Legal Expert System is a computer program available to MSTC 
participants which details the necessary documentation for effecting a 
legal transfer of securities based on industry criteria and individual 
state regulations. First, MSTC wishes to clarify that the Legal Expert 
System is available only to full MSTC participants; accordingly, it is 
not available to pledgee participants or limited purpose participants. 
Furthermore, the Legal Expert System is proprietary to MSTC; therefore, 
participants may not provide third parties with access to the Legal 
Expert System without MSTC's prior written approval. The new schedule 
of charges will be effective January 1, 1995.
    The text of the proposed rule change is as follows with additions 
italicized and with deletions bracketed:

MSTC Legal Expert System

[Participants that make inquiries in the Legal Expert System: $750/
month]

Terminal Inquiry

1-2500 inquiries per month: $0.50/inquiry
2,501-5,000: $0.35/inquiry
5,001-10,000: $0.35/inquiry
10,001 and over: $0.17/inquiry
    MSTC full legal deposit participants will receive a free inquiry 
for each legal deposit submitted to MSTC. The free inquiries are only 
valid in the month the legal deposit is made.
    The proposed rule change is consistent with Section 17A of the Act 
in that it provides for the equitable allocation of reasonable fees and 
other charges among participants using its facilities.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    MSTC believes that no burden will be placed on competition as a 
result of the proposed rule change.

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

    MSTC has not solicited or received any comments. MSTC will notify 
the Commission of any written comments it receives.

III. 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)\3\ of the Act and Rule 19b-4(e)\4\ thereunder in that it 
constitutes a stated policy, practice, or interpretation with respect 
to the meaning, administration, or enforcement of an existing rule and 
in that it establishes or changes a due, fee, or other charge imposed 
by MSTC. At any time within sixty days of the filing of the proposed 
rule change, the Commission summarily may abrogate the 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.
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    \3\15 U.S.C. 78s(b)(3)(A) (1988).
    \4\17 CFR 240.19b-4(e) (1994).
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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 submission 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. 
Copies of the submissions, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communication 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 N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office of MSTC. All 
submissions should refer to File No. SR-MSTC-94-17 and should be 
submitted by January 10, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-31169 Filed 12-19-94; 8:45 am]
BILLING CODE 8010-01-M