[Federal Register Volume 60, Number 90 (Wednesday, May 10, 1995)]
[Notices]
[Pages 24951-24952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11515]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35676; File No. SR-PHILADEP-94-06]
Self-Regulatory Organizations; The Philadelphia Depository Trust
Company; Order Granting Temporary Approval of a Proposed Rule Change
Extending the Pilot Program for the Fully Automated Securities Transfer
Reconciliation Accounting Control System
May 4, 1995.
On December 14, 1994, the Philadelphia Depository Trust Company
(``PHILADEP'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change (File No. SR-PHILADEP-94-06)
under Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\ to extend the pilot program governing the Fully Automated
Securities Transfer Reconciliation Accounting Control System
(``FASTRACS'') through December 29, 1995. Notice of the proposal was
published in the Federal Register on March 17, 1995.\2\ No comment
letters were received. For the reasons discussed below, the Commission
is approving the proposed rule change and extending the FASTRACS pilot
program on a temporary basis through December 29, 1995. The program
will be limited to three transfer agents for the duration of the
temporary approval period.
\1\15 U.S.C. 78(b)(1) (1988).
\2\Securities Exchange Act Release No. 35470 (March 10, 1995),
60 FR 14477.
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I. Description
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.\3\ 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. The transfer agents adjust daily the
balance certificates to reflect PHILADEP's withdrawal and deposit
activity.
\3\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.\4\ Therefore, PHILADEP
has requested an extension of the FASTRACS pilot program on a temporary
basis through December 29, 1995.
\4\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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II. Discussion
As discussed in detail in the order initially approving PHILADEP's
FASTRACS pilot program,\5\ one of the primary reasons for approval of
the FASTRACS program is to enable PHILADEP to provide for the safe and
efficient clearance and settlement of securities transactions and to
assure the [[Page 24952]] safeguarding of securities and funds in its
custody or control or for which it is responsible in accordance with
Section 17A(b)(3)(A) and (F) of the Act.\6\ PHILADEP has stated that
the FASTRACS program has functioned effectively in this capacity since
its initial approval on July 19, 1994; however, testing of the program
is not complete. Therefore, the Commission believes that an extension
of the FASTRACS pilot program through December 29, 1995, is appropriate
because it will provide PHILADEP with the opportunity to continue
testing the FASTRACS program and to report the results of its testing
to the Commission.
\5\Supra note 3.
\6\15 U.S.C. 78q-1(b)(3)(A) and (F) (1988).
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III. Conclusion
The Commission finds that PHILADEP's proposal is consistent with
the requirements of the Act and particularly with Section 17A and the
rules and regulations thereunder.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-PHILADEP-94-06) be, and
hereby is, approved through December 29, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
\7\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-11515 Filed 5-9-95; 8:45 am]
BILLING CODE 8010-01-M