[Federal Register Volume 62, Number 14 (Wednesday, January 22, 1997)]
[Notices]
[Pages 3320-3321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1433]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38153; File No. SR-PTC-96-08]


Self-Regulatory Organizations; Participants Trust Company; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Extending 
the Time for the Close of the Collateral Loan Facility and the Deadline 
for Participant Payment of Settlement Obligations

January 10, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 3321]]

(``Act''),\1\ notice is hereby given that on December 3, 1996, the 
Participants Trust Company (``PTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change (File No. 
SR-PTC-96-08) as described in Items I, II, and III below, which items 
have been prepared primarily by PTC. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change extends the close of the Collateral Loan 
Facility (``CLF'') processing vs. payment from 3:30.59 p.m. to 4:00.59 
p.m. and extends the deadline for participants to send settlement wire 
payments to PTC from 4:15 p.m. to 4:30 p.m., beginning on January 6, 
1997.

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

    In its filing with the Commission, PTC included statements 
concerning the purpose of and 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. PTC has prepared summaries, set forth in sections (A), 
and (B), and (C) below, of the most significant aspects of such 
statements.\2\
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    \2\ The Commission has modified the text of the summaries 
prepared by PTC.
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(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 extend the close of 
the CLF processing vs. payment from 3:30.59 p.m. to 4:00.59 p.m. To 
accommodate the processing extension, the deadline for participant 
settlement wire payments due PTC also will be extended from 4:15 p.m. 
to 4:30 p.m. to allow participants sufficient time to arrange for 
payment when the participant's settlement balance changes as a result 
of the additional one-half hour financing period. Current opening times 
and all other deadlines will remain unchanged.
    Participants have requested that the extension of the close of the 
CLF for an additional one-half hour after the normal 3:30.59 p.m. close 
for regular transaction vs. payment processing be implemented as part 
of PTC's program to make Federal Home Loan Mortgage Corporation 
(``FHLMC'') and Federal National Mortgage Association (``FNMA'') 
securities eligible for PTC's book-entry system to allow participants 
additional time to finance their positions. PTC plans to implement the 
rule change on January 6, 1997, so that the new deadlines can be 
evaluated before the FHLMC and FNMA program is implemented.
    PTC believes the proposed rule change is consistent with Section 
17A(b)(3)(F) of the Act \3\ and the rules and regulations thereunder 
because it assures the safeguarding of securities and funds in PTC's 
custody or control or for which it is responsible.
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    \3\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Self-Regulatory Organization's Statement on Burden of Competition

    PTC does not believe that the proposed rule change imposes any 
burden on competition.

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

    Participants have requested that PTC make the proposed rule change. 
PTC has not solicited nor received any written comments on the proposed 
rule change.

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)(i) of the Act \4\ and pursuant to Rule 19b-4(e)(1) \5\ 
promulgated thereunder because the proposal is concerned solely with 
the administration of PTC. At any time within sixty days of the filing 
of such 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)(i).
    \5\ 17 CFR 240.19b-4(e)(1).
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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, NW., 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. Sec. 552, will be available for inspection and copying in 
the Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing also will be available for 
inspection and copying at the principal office of PTC. All submissions 
should refer to File No. SR-PTC-96-08 and should be submitted by 
February 12, 1997.
    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).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-1433 Filed 1-21-97; 8:45 am]
BILLING CODE 8010-01-M