[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]



-----------------------------------------------------------------------

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.
---------------------------------------------------------------------------

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).
---------------------------------------------------------------------------

    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).
---------------------------------------------------------------------------

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).
---------------------------------------------------------------------------

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).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-11515 Filed 5-9-95; 8:45 am]
BILLING CODE 8010-01-M