[Federal Register Volume 61, Number 55 (Wednesday, March 20, 1996)]
[Notices]
[Pages 11455-11456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6675]



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[[Page 11456]]


SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36965; File Nos. SR-MCC-96-02 and SR-MSTC-96-02]


Self-Regulatory Organizations; Midwest Clearing Corporation; 
Midwest Securities Trust Company; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Changes Relating to Termination of 
Services Provided by Midwest Clearing Corporation and Midwest 
Securities Trust Company

March 13, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 16, 1996, the 
Midwest Clearing Corporation (``MCC'') and the Midwest Securities Trust 
Company (``MSTC'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule changes (File Nos. SR-MCC-96-02 and 
SR-MSTC-96-02) as described in Items I, II, and III below, which items 
have been prepared primarily by MCC and MSTC. On February 26, 1996, MCC 
and MSTC filed an amendment to the proposed rule changes to make 
technical corrections which did not affect the substance of the 
proposals.\2\ The Commission is publishing this notice to solicit 
comments from interested persons.
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    \1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
    \2\ Letter from David T. Rusoff, Foley & Lardner [counsel to 
MCC/MSTC], to Cheryl Tumlin, Staff Attorney, Division of Market 
Regulation, Commission (February 26, 1996).
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I. Self-Regulatory Organizations' Statement of the Terms of Substance 
of the Proposed Rule Changes

    On February 16, 1996, MCC and MSTC notified their participants of 
the procedures that MCC and MSTC will follow with respect to returning 
to participants their MCC and MSTC participant funds contributions. 
MSTC also notified its participants on February 16, 1996, that the 
interface between MSTC and The Depository Trust Company (``DTC'') was 
to be discontinued on February 20, 1996.

II. Self-Regulatory Organizations' Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    In its filing with the Commission, MCC and MSTC included statements 
concerning the purpose of and basis for the proposed rule changes and 
discussed any comments they received on the proposed rule changes. The 
text of these statements may be examined at the places specified in 
Item IV below. MCC and MSTC have prepared summaries, set forth in 
section (A), (B), and (C) below, of the most significant aspects of 
such statements.\3\
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    \3\ The Commission has modified the text of the summaries 
prepared by MCC and MSTC.
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(A) Self-Regulatory Organizations' Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    On January 5, 1996, the Commission approved proposed rule changes 
filed by MCC, MSTC, and Chicago Stock Exchange, Incorporated regarding 
their decisions to terminate as of January 15, 1996, securities 
clearing and depository services offered by MCC and MSTC. The decision 
to terminate such services was made in conjunction with an agreement 
with the National Securities Clearing Corporation and DTC.\4\
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    \4\ Securities Exchange Act Release No. 36684 (January 5, 1996), 
61 FR 1195, [File Nos. SR-MCC-95-04 and SR-MSTC-95-10] (order 
approving proposed rule changes).
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    MCC and MSTC have issued a Conversion Flash describing a method for 
the orderly and equitable return of participants' MCC and MSTC 
participant funds contributions.\5\ MSTC also issued a Conversion Flash 
on February 16, 1996, notifying its participants that the MSTC/DTC 
interface would be discontinued with the close of business on February 
20, 1996, in anticipation of the conversion to same-day funds 
settlement on February 22, 1996.\6\
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    \5\ The Conversion Flash is attached as Exhibit A to MCC's and 
MSTC's filings and is available in the Commission's Public Reference 
Room or through MCC or MSTC.
    \6\ The Conversion Flash is attached as Exhibit A to MSTC's 
proposed rule change and is available in the Commission's Public 
Reference Room or through MSTC.
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    MCC and MSTC believe that the proposed rule changes are consistent 
with Section 17A of the Act and the rules and regulations thereunder 
because the proposals will facilitate the prompt and accurate clearance 
and settlement of securities transactions and will assure the 
safeguarding of securities and funds which are in MCC's and MSTC's 
custody or control of for which MCC and MSTC are responsible.

(B) Self-Regulatory Organizations' Statement on Burden on Competition

    MCC and MSTC do not believe the proposed rule changes will impose 
any burden on competition.

(C) Self-Regulatory Organizations' Statement on Comments on the 
Proposed Rule Changes Received from Members, Participants or Others

    MCC and MSTC have neither solicited nor received written comments 
on the proposed rule changes.

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

    The foregoing rule changes have become effective pursuant to 
Section 19(b)(3)(A)(i) \7\ of the Act and pursuant to Rule 19b-4(e)(1) 
\8\ promulgated thereunder because the proposals constitute stated 
policies, practices, or interpretations with respect to the meaning, 
administration, or enforcement of existing rules of MCC and MSTC. At 
any time within sixty days of the filing of such rule changes, 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.
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    \7\ 15 U.S.C. Sec. 78s(b)(3)(A)(i) (1988).
    \8\ 17 CFR 240.19b-4(e)(1) (1995).
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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 changes that are filed 
with the Commission, and all written communications relating to the 
proposed rule changes 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 Room, 450 Fifth Street, N.W., 
Washington, D.C. Copies of such filing also will be available for 
inspection and copying at the principal offices of MCC and MSTC.
    All submissions should refer to the file numbers SR-MCC-96-02 and 
SR-MSTC-96-02 and should be submitted by April 10, 1996.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-6675 Filed 3-19-96; 8:45 am]
BILLING CODE 8010-01-M