[Federal Register Volume 61, Number 134 (Thursday, July 11, 1996)]
[Notices]
[Pages 36593-36594]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17635]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37394; File No. SR-DTC-96-10]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the Processing Schedule for Deposits and Withdrawals of 
Government Securities

July 2, 1996.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 30, 1996, The 
Depository Trust Company (``DTC'') 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 DTC. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \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

    The proposed rule change modifies DTC's processing schedule for 
deposits and withdrawals of government securities eligible for 
settlement through the Federal Reserve Book-Entry (``FBE'') system.

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

    In its filing with the Commission, DTC included statements 
concerning the purpose of 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. DTC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of such 
statements.\2\
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    \2\ The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    DTC proposes to revise the processing schedule for deposits and 
withdrawals of government securities eligible for settlement through 
the FBE system. In the past, participants depositing securities through 
the FBE system were required to deposit eligible securities by 12:30 
p.m. Eastern Standard Time (``EST'') in order to receive credit in time 
for the securities to be used the same day for DTC book-entry 
deliveries for value. As a result of recent changes in the cutoff time 
for the FBE system and the recent conversion by DTC to a same-day funds 
settlement system, DTC is able to extend from 12:30 p.m. to 2:00 p.m. 
EST the time by which a participant may deposit such securities through 
the FBE system so that the securities may be used that day for valued 
book-entry deliveries.
    DTC is also able to extend the time by which a participant may 
withdraw securities eligible for the FBE system in order to make a 
book-entry delivery from DTC's account at the Federal Reserve Bank of 
New York (``FRBNY'') to another FRBNY member. DTC proposes to extend 
the cutoff time for the withdrawal of FBE system eligible securities 
from 11:00 a.m. EST to 1:00 p.m. EST.
    The proposed rule change is consistent with the requirements of 
Section 17A of the Act,\3\ in that the proposed rule change will 
promote efficiencies in the clearance and settlement of government 
securities transactions.
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    \3\ 15 U.S.C. 78q-1 (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC does not believe that the proposed rule change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act.

[[Page 36594]]

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

    Written comments from DTC participants or others have not been 
solicited or received.

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

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A)(iii) of the Act \4\ and Rule 19b-4(e)(4),\5\ in that the 
proposal effects change in an existing service of a registered clearing 
agency that does not adversely affect the safeguarding of securities or 
funds in the custody or control of the clearing agency or for which it 
is responsible and does not significantly affect the respective rights 
or obligations of the clearing agency or persons using the service. At 
any time within sixty days of the filing of such 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.
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    \4\ 15 U.S.C. 78s(b)(3)(A)(iii) (1988).
    \5\ 17 CFR 240.19b-4(e)(4) (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 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 Room, 450 Fifth Street, N.W., Washington, 
D.C. 20549. Copies of such filing will also be available for inspection 
at DTC. All submissions should refer to the File No. SR-DTC-96-10 and 
should be submitted by August 1, 1996.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12) (1995).
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Jonathan G. Katz,
Secretary.
[FR Doc. 96-17635 Filed 7-10-96; 8:45 am]
BILLING CODE 8010-01-M