[Federal Register Volume 60, Number 143 (Wednesday, July 26, 1995)]
[Notices]
[Pages 38388-38389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18337]



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

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35992; File No. SR-MSTC-95-08]


Self-Regulatory Organizations; the Midwest Securities Trust 
Company; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Establishing Procedures for the Destruction of Expired Rights 
and Warrants

July 19, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
\1\ (``Act''), notice is hereby given that on May 24, 1995, 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.

    \1\ 15 U.S.C. 78s(b)(1) (1988).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    MSTC proposes to add a new section 3 to Rule 1 of Article VI of its 
rules to establish procedures for the orderly destruction of certain 
expired rights and warrants.

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 an 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 sections (A), 
(B), and (C) below, of the most significant aspects of such 
statements.\2\

    \2\ The Commission has modified the text of the summaries 
prepared by MSTC.
---------------------------------------------------------------------------

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

    The purpose of the proposed rule change is to add a new section 3 
to Article 1, Rule 1 of MSTC's rules to establish procedures for the 
orderly destruction of certain expired rights and 

[[Page 38389]]
warrants. MSTC proposes this rule change in order to reduce the burden 
and cost of maintaining expired warrants and rights in its vault.
    MSTC will adhere to the following procedures relating to expired 
rights and warrants. First, MSTC shall contact the transfer agent or 
the issuer of the securities after their expiration date to verify that 
the respective warrants or rights have expired. Second, MSTC will 
obtain written confirmation from the transfer agent or the issuer that 
the certificates representing such warrants or rights have expired. If 
there is no transfer agent, MSTC personnel shall exercise all 
reasonable due diligence to confirm that the respective certificates 
have expired. Third, MSTC will notify participants of the following: 
(1) That according to the judgment of the transfer agent or in the 
event that a transfer agent does not exist of other appropriate 
parties, the securities certificates are expired; (2) that MSTC will 
delete such securities positions from participants' accounts on or 
after the thirtieth day following the date of the notice; and (3) that 
MSTC shall appropriately mark the securities certificates and destroy 
them. At MSTC's discretion, it may retain copies of the certificates on 
microfilm or on other media.
    MSTC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder because the proposal will assure the safeguarding of 
securities or funds in its custody or control or for which it is 
responsible.

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

    MSTC does not believe that the proposed rule change will have an 
impact on or impose a burden on competition.

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

    No written comments have been solicited or received. MSTC will 
notify the Commission of any written comments received by MSTC.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change: (i) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
(3) was provided to the Commission for its review at least five days 
prior to the filing date; and (4) does not become operative for thirty 
days from the date of its filing on May 24, 1995, the proposed rule 
change has become effective pursuant to Section 19(b)(3)(A)(iii) \3\ of 
the Act and Rule 19b-4(e)(6) \4\ thereunder. In particular, the 
Commission believes the proposed standards do not significantly affect 
the protection of investors or the public interest and do not impose 
any significant burden on competition. At any time within sixty days of 
the filing of the proposed rule change, the Commission may summarily 
abrogate such 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.

    \3\ 15 U.S.C. 78s(b)(3)(A)(iii) (1988).
    \4\ 17 CFR 240.19b-4(e)(6) (1994).
---------------------------------------------------------------------------

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, N.W., Washington, D.C. 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. 552, will be available for inspection and copying in 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-95-08 and should be 
submitted by August 16, 1995.

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

    \5\ 17 CFR 200.30-3(a)(12) (1994).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-18337 Filed 7-25-95; 8:45 am]
BILLING CODE 8010-01-M