[Federal Register Volume 60, Number 52 (Friday, March 17, 1995)]
[Notices]
[Pages 14477-14478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6575]




    \4\17 CFR 200.30-3(a)(12) (1994).
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[Release No. 34-35470; File No. SR-PHILADEP-94-6]


Self-Regulatory Organizations; the Philadelphia Depository Trust 
Company; Notice of Filing of Proposed Rule Change Extending the Pilot 
Program for the Fully Automated Securities Transfer Reconciliation 
Accounting Control System

March 10, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 14, 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 
parties.

    \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 extend its pilot program governing the Fully 
Automated Securities Transfer Reconciliation Accounting Control System 
(``FASTRACS'') through December 29, 1995.

II. Self-Regulatory Organization's Statements Regarding the Proposed 
Rule Change

    In its filing with the Commission, PHILADEP included statements 
concerning the purpose of and the 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, as set forth in 
sections (A), (B), and (C) below, of the most significant aspects of 
these statements.

A. Self-Regulatory Organization's Statement of the Purpose of and the 
Statutory Basis for the Proposed Rule Change

    On July 19, 1994, the Commission approved a proposed rule change 
establishing a pilot program for FASTRACS for the transfer of certain 
securities between PHILADEP and certain transfer agents.\2\ FASTRACS is 
an automated program by which PHILADEP and the participating transfer 
agents use a master balance certificate to evidence the number of 
securities of a particular issue that are registered in PHILADEP's 
nominee name. The transfer agents have custody of the securities in the 
form of balance certificates registered in PHILADEP's nominee name. The 
balance certificates are adjusted daily to reflect PHILADEP's 
withdrawal and deposit activity.

    \2\For a complete description of PHILADEP's FASTRACS, refer to 
Securities Exchange Act Release No. 34404 (July 19, 1994), 59 FR 
38010 [File No. SR-PHILADEP-90-03] (order approving FASTRACS program 
on a temporary basis).
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    According to PHILADEP, the pilot program has operated successfully 
in accordance with the operational and technical specifications; 
however, testing of the program is not complete.\3\ PHILADEP therefore 
requests an extension of the FASTRACS pilot program on a temporary 
basis through December 29, 1995.

    \3\Currently, PHILADEP has completed testing with two transfer 
agents who are now fully operational with FASTRACS. PHILADEP 
continues to conduct testing with a third transfer agent. Upon 
successful completion of testing with the third transfer agent, 
PHILADEP will file a proposed rule change under Section 19(b) of the 
Act to seek permanent approval of the FASTRACS program. Telephone 
conversation between Keith Kessel, Compliance Officer, PHILADEP and 
Margaret J. Robb, Attorney, Division of Market Regulation, 
Commission (December 22, 1994).
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    PHILADEP believes extending the program is consistent with Section 
17A of the Act.\4\ By providing an efficient mechanism for the transfer 
of securities positions to and from participating transfer agents, the 
programs should help foster cooperation and coordination with persons 
engaged in the clearance and settlement of securities transactions and 
should facilitate the prompt and accurate clearance and settlement of 
securities transactions.

    \4\15 U.S.C. 78q-1 (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    PHILADEP does not believe the proposed rule change will impose any 
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) [[Page 14478]] 
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 the self-regulatory organization 
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 such 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 
respecting the proposed rule change that are filed with the Commission, 
and all written communications concerning the proposed rule change 
between the Commission and any person, other than those that may be 
withheld from the public pursuant to the provisions of 5 U.S.C. 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 filings will also be available for inspection and copying at 
the principal office of PHILADEP. All submissions should refer to File 
Number SR-PHILADEP-94-6 and should be submitted by April 7, 1995.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\

    \5\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-6575 Filed 3-16-95; 8:45 am]
BILLING CODE 8010-01-M