[Federal Register Volume 67, Number 241 (Monday, December 16, 2002)]
[Notices]
[Page 77115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-31554]



[[Page 77115]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46956; File No. SR-DTC-2002-15]


Self-Regulatory Organizations; The Depository Trust Company; 
Order Granting Accelerated Approval of a Proposed Rule Change To 
Eliminate the FAST Certificates-on-Demand Service

December 6, 2002.

I. Introduction

    On September 4, 2002, The Depository Trust Company filed with the 
Securities and Exchange Commission (``Commission'') a proposed rule 
change File No. SR-DTC-2002-15 pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'').\1\ Notice of the proposal 
was published in the Federal Register on November 12, 2002.\2\ No 
comment letters were received. For the reasons discussed below, the 
Commission is granting accelerated approval of the proposed rule 
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release No. 46772, (November 5, 
2002, 67 FR 68709, 2002).
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II. Description

    Currently, DTC's FAST COD service allows participants to request 
for same day availability a physical certificate in the participant's 
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 has decided 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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III. Discussion

    Section 17A(b)(3)(F) requires that the rules of a clearing agency 
be designed to remove impediments to and perfect the mechanism of a 
national system for the prompt and accurate clearance and settlement of 
securities transactions.\5\ By eliminating a duplicative and 
infrequently used service such as FAST COD, the rule change allows DTC 
to better allocate the resources used on FAST COD toward other needed 
programs or improvements. An improved distribution of resources should 
assist DTC in removing impediments to and perfecting the national 
system for the prompt and accurate clearance and settlement of 
securities transactions. Furthermore, DTC has other services, RWT and 
DWAC, that it participants can use in place of FAST COD. Accordingly, 
the Commission believes the proposed rule change is consistent with the 
Act and specifically with Section 17A(b)(3)(f) of the Act.
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    \5\ 15 U.S.C. 78q-1(b)(3)(F).
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    DTC has requested that the Commission find good cause for approving 
the proposed rule change prior to the thirtieth day after the date of 
publication of notice of the filing. The Commission finds good cause 
for approving the proposed rule change prior to the thirtieth day after 
publication because this will allow DTC to eliminate the FAST COD 
service and reallocate those resources to other projects scheduled for 
completion by the end of the year.

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposed rule change is consistent with the requirements of the Act and 
in particular with the requirements of Section 17A(b)(3)(F) of the Act 
and the rules and regulations thereunder.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (File No. SR-DTC-2002-15) be and hereby 
is approved on an accelerated basis.

    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 02-31554 Filed 12-13-02; 8:45 am]
BILLING CODE 8010-01-P