Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / Notices 49279

11 15 U.S.C. 78s(b)(1).

2The Commission has modified the text of the

summaries prepared by DTC.

3For a more detailed description of DTC’s

custody service, refer to Securities Exchange Act

Release Nos. 38561 (April 30, 1997), 62 FR 25008

[File No. SR–DTC–97–01] (order approving

proposed rule change implementing the dividend

processing phase of DTC’s custody service) and

37314 (June 14, 1996) 61 FR 31989 [File No. SR–

DTC–96–08] (order approving proposed rule change

establishing DTC’s custody service).

4For example, DTC has advised the Commission

that one participant has requested that DTC develop

a certain imaging functionality in connection with

that participant’s use of the custody service.

However, that specific service would not be used

by other participants that utilize the custody

service.

5 DTC has advised the Commission that it will

charge fees for customization of custody service

based on a consistently applied methodology

6 15 U.S.C. 78q–1(b)(3)(A).

7 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39071; File No. SR–DTC–

97–09]

Self-Regulatory Organizations; the

Depository Trust Company; Notice of

Filing of Proposed Rule Change

Regarding the Custody Service for

Non-Depository Eligible Securities

September 12, 1997.

Pursuant to section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

June 4, 1997, 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 from interested

persons on the proposed rule change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change will allow

DTC to enter into contracts with

individual participants to provide

customized custodian, transaction, and

related processing services under DTC’s

custody service for certain securities

which are not depository eligible

(‘‘custody 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. DTC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

change

DTC’s custody service, which has

been approved by the Commission,

currently offers custodian, transaction,

and related processing services to

participants in connection with certain

securities which are not depository

eligible (i.e., securities with certain

transfer restrictions).3 DTC has advised

the Commission that some participants

that have shown an interest in the

custody service have requested

customization of the custody service in

order to meet their individual needs.4

The purpose of the proposed rule

change is to permit DTC to enter into

contracts with individual participants to

provide such customized processing

services under the custody service.

However, under the proposed rule

change DTC would not be obligated to

enter into any such contracts with

participants or to offer the same terms

under any such contracts to all

participants.5

DTC believes that the proposed rule

change is consistent with the

requirements of section 17A(b)(3)(A) of

the Act 6 and the rules and regulations

thereunder because it promotes

efficiencies in the clearance and

settlement of securities transactions.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

DTC believes that no burden will be

placed on competition as a result of the

proposed rule change.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

Comments were neither solicited nor

received.

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 DTC consents, the

Commission will:

(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.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 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

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 DTC. All submissions should

refer to File No. SR–DTC–97–09 and

should be submitted by October 10,

1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–24859 Filed 9–18–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39075; File No. SR–DTC–

97–13]

Self-Regulatory Organizations; the

Depository Trust Company; Notice of

Filing of Proposed Rule Change

Regarding the Branch Deposit Service

September 12, 1997.

Pursuant to section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’) 1 notice is hereby given that on

June 30, 1997, 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