24938 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Notices

issues, and provides to all users (members of the

Exchange or Approved Dealers) through the

National Securities Trading System, during

Exchange trading hours, regular bids and offers for

round lots of designated issues for which he is

registered. See CSE Rule 11.9(a)(4). 1 15 U.S.C. 73s(b)(1) (1988).

2The Commission has modified the text of the

summaries prepared by MSTC.

3Securities and Exchange Act Release No. 33023

(October 6, 1993), 58 FR 52891 (adoption of Rule

15c6–1). Rule 15c6–1 will be effective June 7, 1995.

Securities Exchange Act Release No. 34952

(November 9, 1994), 59 FR 59137 (changing the

effective date of Rule 15c6–1).

line with those of other markets. The

fees are effective on settlement date May

1, 1995.

2. Statutory Basis

The proposed rule change is

consistent with Section 6(b) of the Act

in general and furthers the objectives of

Section 6(b)(5) in that it is designed to

protect investors and the public interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The fee change will impose no burden

on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

No written comments were solicited

or received with respect to the fee

change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change establishes

or changes a due, fee, or other charge

imposed by the Exchange and, therefore,

has become effective pursuant to

Section 19(b)(3)(A) of the Act and

subparagraph (e) of Rule 19b–4

thereunder. At any time within 60 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.

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 at

the Commission’s Public Reference

Section, 450 Fifth Street NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the Exchange. All submissions

should refer to File No. SR–CSE–95–05

and should be submitted by May 31,

1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–11446 Filed 5–9–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 35–35656; File No. SR–MSTC–

95–06]

Self-Regulatory Organizations;

Midwest Securities Trust Company;

Notice of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change Relating to the Expansion

of an Interface With the Depository

Trust Company’s Interactive

Institutional Delivery System

April 28, 1995.

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

Securities and Exchange Act of 1934

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

April 6, 1995, the Midwest Securities

Trust Company (‘‘MSTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–MSTC–95–06) as

described in Items I and II below, which

items have been prepared primarily by

MSTC. The Commission is publishing

this notice and order to solicit

comments on the proposed rule change

from interested persons and to grant

accelerated approval of the proposed

rule change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

MSTC proposes to expand its

interface with The Depository Trust

Company’s (‘‘DTC’’) Interactive

Institutional Delivery (‘‘IID’’) system to

include an interactive inquiry and

affirmation capability and to facilitate

access to DTC’s standing instruction

database (‘‘SID’’).

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

MSTC 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 self-regulatory

organization 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

MSTC proposes to make certain

changes to its National Institutional

Delivery System (‘‘NIDS’’) to comply

with the accelerated settlement cycle

mandated by Commission Rule 15c6–1 3

and to provide uniformity in depository

processing for institutional trade

recording and settlement. To

accomplish those goals, MSTC is

expanding its interface with DTC’s IID

system to include an interactive inquiry

and affirmation capability and to

facilitate access to DTC’s SID. As a

result, MSTC’s NIDS system also will be

known as the Interactive Institutional

Delivery System.

Currently, MSTC provides its own

screens and functions; however, through

the new on-line interface, MSTC will

provide its participants with DTC’s

functions and screens. For example, the

current MSTC National Institutional

Delivery Affirmation (‘‘NIDA’’) function

for affirmation input will be replaced by

the IID system’s affirmation function

menu (‘‘IDAA’’). The IDAA function is

currently part of DTC’s IID system and

MSTC intends to use this function to

replace the current end of day

transmission of data accumulated via

the NIDA screen. The IDAA function

will provide MSTC participants with

on-line access to the following trade

affirmation processing options: (1)

Affirm all trades, (2) affirm all trades

with exemptions, (3) affirm individual

trade, and (4) individual exceptions.

DTC’s Institutional Delivery Global

Inquiry Menu, (‘‘IDGI’’) function also

will be made available to MSTC

participants through MSTC’s on-line

interface with DTC’s IID system. The

IDGI function will provide on-line

inquiry capability on the following data,

most of which was previously available

in hard copy reports: (1) Single trade
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Notices 24939

4Eligibility refers to depository eligibility of

securities.

5MSTC’s current trade input screen (‘‘NIDT’’)

will be replaced with MSTC’s revised IID Trade

Input screen (‘‘IIDT’’). Filed changes have been

made to both terminal and file transfer trade input

layouts to achieve compatibility with the DTC IID

system. Changes to existing fields on the trade input

screen have been made to allow for additional edits

and expanded fields. The following fields have

been deleted: (1) ISIN—international security

identification number, (2) CD—international check

digit, and (3) CORSP IND—Correspondent. The

following fields have been added: (1) SIDIND—

Bypass SID indicated, (2) SET LOC—Settlement

Location, (3) ORG CONF—Orginal Broker Confirm

Number, and (4) FED Factor—Amortized/

Accredited Factor.

The following new fields will be defaulted and

will be included on the file transmission submitted

to DTC for process but will not be populated on the

revised IIDT trade input screen: (1) Split Currency

Indicator—Default to No., (2) Quality Control

Exempt—Default to be (i.e., transaction will be

included in reporting of member firm confirmation

and affirmation rates), (3) Security Numbering

System—Default to US=CUSIP, (4) Alternate

Currently Conversion Rate—Default to zero, (5)

Alternate Currency ISO Code—Default to CUR CD

value (i.e., field currently provides default to zero

value but will permit default to alternative

currently values) and (6) Alternate Currency—

Default to zero net amount.

6As described in the Commission order

approving DTC’s overall concept of an enhanced IID

system, the matching option is intended to serve as

an alternative to the current confirmation and

affirmation processing in the IID system. The

matching feature will match trade data received

from the broker-dealer with institution instructions

received from the institution. The results of the

matching will be reported through the distribution

of output reports to the broker-dealer, the agent, and

the institution. Securities Exchange Act Release No.

33466 (January 12, 1994), 59 FR 3139 [File No. SR–

DTC–93–07]. At present, however, matching is not

available through the enhanced IID system, and

DTC has not yet filed a proposed rule change with

the Commission seeking approval of the matching

option.

7 15 U.S.C. 78q–1(b)(3)(F) (1988).

detail, (2) change of security eligibility,

(3) settlement date inquiry, (4) trade

data inquiry, and (5) batch trade

summary. As result of MSTC use of the

IDGI and IDAA functions, MSTC will

discontinue the following hard-copy

reports: (10 T+3 Unaffirmed Report, (2)

T+4 Unaffirmed Report, and (3) T+4

Cumulative Eligible Trade Report. The

following reports and contracts will be

produced three times daily instead of

once a day: (1) Broker Trade Error

Report, (2) Confirmed trades, (3)

Affirmed Trades, and (4) Unaffirmed

Trades. A change of Eligibility Report 4

will be produced once at the end of the

day.

Multiple intraday transmissions of

trade data submitted via the IIDT screen

will replace the current practice of once

at the end of the day transmission of

data submitted via the NIDT screen.5 All

on-line IID input and inquiry screens

will be available until 8:00 p.m. central

time ‘‘CT’’). Also, the current cut-off

times of 5:00 p.m. CT for affirmation

input via file transfer, 8:00 p.m. CT for

trade input via terminal, and 10:30 p.m.

CT for trade input via file transfer to

receive affirmation/confirmation output

at 7:00 a.m. CT the next day will be

changed to the following input/output

schedule:

Trade input cut-off Confirm output Affirm input cut-off (FTS)

10:30 a.m. on Trade date (T) ............................ 12:00 noon on Trade date (T) .......................... 1:00 p.m. on Trade date (T).

12:30 p.m. on Trade date (T) ............................ 2:00 p.m. on Trade date (T) ............................. 3:00 p.m. on Trade date (T).

3:30 a.m. on Trade date plus one (T+1) .......... 5:00 a.m. on Trade date plus one (T+1) .......... 6:00 a.m. on Trade date plus one (T+1).

Upon the effective date of Rule 15c6–

1 requiring settlement of most trades on

trade data plus three (‘‘T+3’’), the

affirmation cut-off time for automatic

settlement of regular way trades will be

accelerated from the close of business

on T+3 to the close of business on T+1

will a correction affirmation period

until 12:00 noon eastern time (‘‘ET’’) on

T+2. For all trades subject to a

nonstandard settlement cycle, the stated

cut-off time will be settlement data

minus two (‘‘S–2’’) with corrections

until noon ET on S–1. Finally, Quality

Control Reports will be adjusted to

reflect the shortened settlement cycle

and the revised cut-off times.

Under the proposal, when an affirmed

confirmation is received by the

established cut-off time, the new IID

system automatically will create the

book entry movement to settle the trade.

Based on the revised input/output

schedule, the IID system now has the

potential to produce settlement

transactions three times daily on the

date of affirmation.

Finally, DTC’s Standing Instruction

Database (‘‘SID’’) also will be available

to MSTC participants through MSTC’s

on-line interface with DTC’s IID system.

The SID function will allow MSTC

participants to utilize DTC’s database to

maintain customer account and

settlement information in a central

repository. This is a new function not

previously available to MSTC

participants using NIDS and will be

optional for MSTC participants. SID will

only populate certain fields on the trade

confirmation and will enable automatic

affirmation through matching.6

MSTC believes that the proposed rule

change is consistent with the

requirements of Section 17A of the Act

and the rules and regulations

thereunder because the rule proposal

will facilitate the prompt and accurate

clearance and settlement of securities

transactions.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

MSTC 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

No written comments have been

solicited or received. MSTC will notify

the Commission of any written

comments received by MSTC.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Section 17A(b)(3)F 7 of the Act

requires the rules of a clearing agency be

designed to foster cooperation and

coordination with persons engaged in

the clearance and settlement of

securities transactions. The Commission

believes that MSTC’s proposal to

expand its interface with DTC’s IID

System should help cooperation and

coordination because the proposal will

enable MSTC participants to utilize

DTC’s IID system’s interactive inquiry

and affirmation capability and to access

DTC’s SID. The proposal also will

provide uniformity in depository

processing of institutional trade

recording and settlement and should

help MSTC participants to settle

institutional trades in a T+3 settlement

cycle.

MSTC 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 so

approving the proposed rule change

because timely settlement of

institutional trades is critical to the

successful conversion to T+3, and

accelerated approval will allow MSTC
24940 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Notices

8 17 CFR 200.30–3(a)(12) (1994).

1On May 4, 1995, the PHLX clarified its proposal

by eliminating references to tie-dyed clothing and

sneakers, which, under the proposal, are no longer

specifically prohibited. The clarification makes the

PHLX’s description of its proposal consistent with

the text of the proposed rule change. See Letter

from Edith Hallahan, Special Counsel, Regulatory

Services, PHLX, to Michael Walinskas, Branch

Chief, Office of Market Supervision, Division of

Market Regulation, Commission, dated May 4, 1995.

2Under Exchange By-Law 10–15, ‘‘Floor

Procedure Committee,’’ the Exchange’s Floor

Procedures Committee supervises the dealings of

PHLX members on the equity trading floor. Under

Exchange By-Law 10–16, ‘‘FCO Committee,’’ the

PHLX’s FCO Committee supervises the dealings of

Exchange members on the FCO trading floor. Under

Exchange By-Law 10–18, ‘‘Options Committee,’’ the

Exchange’s Options Committee supervises PHLX

members on the equity and index option trading

floor.

participants to become familiar with

and utilize the new functions available

through MSTC’s expanded interface

with DTC’s IID system prior to the

implementation of T+3 settlement.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing.

Persons making written submission

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street NW.,

Washington, DC 20549. Copies of the

submissions, 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 5th Street NW.,

Washington, DC 20549. Copies of such

filings will also be available for

inspection and copying at the principal

office of MSTC. All submissions should

refer to the file number SR–MSTC–95–

06 and should be submitted by May 31,

1995.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act, that the

proposed rule change (File No. SR–

MSTC–95–06) be, and hereby is,

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–11442 Filed 5–9–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35673; File No. SR–PHLX–

95–24]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.,

Relating to the Modification of the

Dress Code

May 4, 1995.

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

Securities Exchange Act of 1934

(‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is

hereby given that on May 1, 1995, the

Philadelphia Stock Exchange, Inc.

(‘‘PHLX’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’) the proposed

rule change as described in Items I, II

and III below, which Items have been

prepared by the self-regulatory

organization.1 The Commission is

publishing this notice to solicit

comments on the proposed rule change

from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

PHLX Regulation 6, ‘‘Dress,’’ which

was adopted pursuant to Exchange Rule

60, ‘‘Assessments for Breach of

Regulations,’’ is a regulation of order

and decorumn applicable to all three

trading floors on the Exchange (equity,

foreign currency option (‘‘FCO’’), and

equity option/index option). The PHLX

proposes to amend PHLX Regulation 6

to update the Exchange’s dress code and

allow the appropriate floor standing

committee 2 to waive the Exchange’s

dress code for a specific period of time.

Specifically, the PHLX proposes to

amend PHLX Regulation 6 to: (1)

Prohibit members from wearing clothing

with words or pictures that detract from

a professional atmosphere; (2) allow the

appropriate floor committee to

determine whether males must wear

dress shirts with collars and neckties;

(3) prohibit members from wearing golf,

polo, or T-shirts, shorts, sweats, sandals,

and any shoes that are dirty, frayed,

faded, or torn; and (4) remove the

provision prohibiting members from

wearing denim garments, other than

blue jeans.

The text of the proposed rule change

is available at the Office of the

Secretary, PHLX, and at the

Commission.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

self-regulatory organization 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 self-regulatory organization has

prepared summaries, set forth in

sections (A), (B), and (C) below, of the

most significant aspects of such

statements.

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The purpose of the proposal is to

amend PHLX Regulation 6 to update the

dress code to eliminate outdated terms

and reflect changes in acceptable types

of dress. For example, under the

proposal, sneakers and denim garments,

other than blue jeans, are no longer

expressly prohibited. However, the

proposal expressly prohibits golf, polo,

and T-shirts, shorts, sweats, and

sandals, as well as words or pictures on

clothing that draw excessive attention or

detract from a professional atmosphere.

Regulation 6 continues to prohibit

clothing that is dirty, frayed, torn, or

attracts excessive attention.

Under the proposal, males will no

longer necessarily be required to wear

ties; the applicable floor standing

committee will determine whether ties

are required on that particular trading

floor. With respect to acceptable

footwear, although sandals are still

prohibited, sneakers (running/gym

shoes) are permitted. The Exchange

believes that the proposed changes

continue to establish a reasonable dress

code subject to objective enforcement.

The PHLX states that the proposed

amendments are also designed to

incorporate a waiver provision into

Regulation 6. Specifically, the

chairperson of the standing floor

committee (the Options Committee, the

Floor Procedure Committee, or the FCO

Committee) or his designee may waive

any part of the dress code for a specified

period of time. The purpose of this

change is to permit flexibility in the

dress code when deemed necessary by

the floor committee chairperson. For

example, severe weather conditions may

warrant relaxing the dress code until the

conditions abate. The Exchange states

that it will provide prior notice to the

trading floor of any such waiver or