[Federal Register Volume 67, Number 218 (Tuesday, November 12, 2002)]
[Notices]
[Pages 68709-68710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-28654]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46772; File No. SR-DTC-2002-15]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing of Proposed Rule Change To Eliminate the FAST 
Certificates-on-Demand Service

November 5, 2002.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on September 4, 2002, 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 the DTC. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested parties.
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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 purpose of the proposed rule change is to eliminate the FAST 
Certificate-on-Demand (``FAST COD'') service.

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 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. The DTC has prepared summaries, set forth in sections 
(A), (B), and (C) below, of the most significant aspects of these 
statements.\2\
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    \2\ The Commission has modified the text of the summaries 
prepared by the DTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Currently DTC's FAST COD service allows participants to request for 
same day availability a physical certificate in the participants' or 
its nominee's name for issues which are held in DTC's nominee name, 
Cede & Co., at the transfer agent under DTC's FAST program. After 
consultation with the largest users of the service, DTC is proposing to 
eliminate the FAST COD service due to decreasing demand for the 
service. Currently there is an average of approximately five FAST COD 
requests per day. In the place of FAST COD, participants may continue 
to use the Rush Withdrawals-by-Transfer (``RWT'') service \3\ or the 
Deposit/Withdrawal at Custodian (``DWAC'') service.\4\ RWT allows 
participants to quickly obtain physical certificates, which can be 
registered in either the participant's name or its customer's name. 
Using DWAC, participants can request certificates in client name 
directly from the transfer agents.
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    \3\ For more information about the RWT service, see Securities 
Exchange Act Release Nos. 30505 (March 20, 1992) [SR-DTC-91-
23](order approving implementation of the RWT service on permanent 
basis); 27518 (December 7, 1989)(order granting temporary extension 
of the RWT service); 26960 (June 23, 1989) [SR-DTC-89-11] (order 
granting approval of the RWT service procedures); 27052 (July 21, 
1989) [SR-DTC-89-1] (order granting temporary approval of the RWT 
service).
    \4\ For more information about the DWAC service, see Securities 
Exchange Release No. 30283 (January 23, 1992) [SR-DTC-91-16] (order 
granting approval of the DWAC service).
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    DTC believes that the proposed rule filing is consistent with 
section 17A of the Act because it will eliminate a little-used service 
but will retain functionally similar services thereby promoting the 
prompt and accurate clearance and settlement of securities 
transactions.

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

    DTC 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

    DTC consulted orally with the largest users of the FAST COD service 
and circulated an Important Notice to Participants, which invited 
public comment on this proposal.\5\ DTC has received no written comment 
on the proposed rule change.
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    \5\ Important Notice to Participants 3624 is available 
through the Commission's Public Reference Room or through DTC.
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III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will:

[[Page 68710]]

    (A) By order approve such proposed rule change or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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, NW., 
Washington, DC 20549. Copies of such filing also will be available for 
inspection and copying at the principal office of the DTC. All 
submissions should refer to File No. SR-DTC-2002-15 and should be 
submitted by December 3, 2002.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\
Margaret H. McFarland,
Deputy Secretary.
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    \6\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 02-28654 Filed 11-8-02; 8:45 am]
BILLING CODE 8010-01-P