Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices 27577

5 17 CFR 240.19b–4(e)(6) (1994).

6 17 CFR 200.30–3(a)(12) (1994).

1 15 U.S.C. 78s(b)(1) (1988).

2The revised fee schedule is available for review

in the Annex to Exhibit A of File No. SR–DTC–95–

08. The file is available for review in the

Commission’s Public Reference Room and at the

principal office of DTC.

3The Commission has modified the text of the

summaries prepared by DTC.

4While some service fees were increased, others

remained unchanged or were decreased making the

net result an overall decrease in service fees.

Telephone conversation between Piku Thakkar,

Attorney, DTC, and Margaret J. Robb, Attorney,

Division of Market Regulation, Commission (April

27, 1995).

5 15 U.S.C. 78q–1(b)(3)(D) (1988).

the fees to be charged by the CBOE in

connection with the telephones located

at the OEX trading post is consistent

with Section 6(b)(4) of the Act in that it

is designed to provide for the equitable

allocation of reasonable dues, fees, and

charges among CBOE members.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any 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 proposed

rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing proposed rule

change: (1) Does not significantly affect

the protection of investors or the public

interest; (2) does not impose any

significant burden on competition; (3)

does not become operative for 30 days

from May 12, 1995, the date on which

it was filed, and the Exchange provided

the Commission with written notice of

its intent to file the proposed rule

change at least five days prior to the

filing date, it has become effective

pursuant to Section 19(b)(3)(A) of the

Act and Rule 19b–4(e)(6) thereunder.5

At any time within 60 days of the

filing of the 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 CBOE. All submissions

should refer to File No. SR–CBOE–95–

15 and should be submitted by June 14,

1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–12693 Filed 5–23–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35736; File No. SR–DTC–

95–08]

Self-Regulatory Organizations; The

Depository Trust Company; Notice of

Filing and Immediate Effectiveness of

a Proposed Rule Change Relating to

Fees Charged for Various Services

May 18, 1995.

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

Securities Exchange Act of 1934

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

April 25, 1995, 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 on the proposed rule

change from interested persons.

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 adjust DTC’s fee schedule

for various services.2

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 that 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.3

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, which will be effective for

services provided on and after May 1,

1995, is to adjust the fees charged for

various services to bring them closer to

or to their respective estimated service

costs for 1995.

Continuing DTC’s annual practice of

aligning service fees with estimated

service costs, DTC’s Board of Directors

completed a review of its unit service

costs for 1995 and adjusted many DTC

service fees accordingly. The 1995 fee

schedule has been set to yield $11.4

million less in operating revenue on an

annual basis than the 1994 fee schedule

would have yielded. This will mark the

ninth consecutive year in which DTC

has not had to increase its overall

schedule of service fees to users.

Moreover, for the fourth consecutive

year a significant fee reduction will be

implemented.4

Section 17A(b)(3)(D) of the Act 5

requires that the rules of a clearing

agency provide for the equitable

allocation of reasonable dues, fees, and

other charges among its participants.

DTC believes that the proposed rule

change is consistent with the

requirements of Section 17A(b)(3)(D) of

the Act because its new fee schedule

allocates its fees more equitably among

its participants.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

DTC does not believe that the

proposed rule change will impose any

burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants, or Others

DTC informed participants and other

users of its services of the proposed fee
27578 Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices

6 15 U.S.C. 78s(b)(3)(A)(ii) (1988).

7 17 CFR 240.19b–4(e)(2) (1994).

8 17 CFR 200.30–3(a)(12) (1994).

1 15 U.S.C. 78s(b) (1988).

2Securities Exchange Act Release No. 35580

(April 7, 1995), 60 FR 19312.

3Securities Exchange Act Release Nos. 33023

(October 6, 1993), 58 FR 52891 (adopting Rule

15c6–1) and 34952 (November 9, 1994), 59 FR

59137 (changing effective date from June 1, 1995,

to June 7, 1995).

4Friday, June 2, will be the last trading day with

five business day settlement. Monday, June 5, and

Tuesday, June 6, will be trading days with four

business day settlement. Wednesday, June 7, will be

the first trading day with three business day

settlement. As a result, trades from June 2 and June

5 will settle on Friday, June 9. Trades from June 6

and June 7 will settle on Monday, June 12.

5 15 U.S.C. 78f (1988).

6The release adopting Commission Rule 15c6–1

stated, ‘‘[T]he value of securities positions can

change suddenly causing a market participant to

default on unsettled positions. Because the markets

are interwoven through common members, default

at one clearing corporation or by a major market

participant or end-user could trigger additional

failures resulting in risk to the national clearance

and settlement system.’’ Securities Exchange Act

Release No. 33023 (October 6, 1993), 58 FR 52891.

715 U.S.C. 78f (1988).

revisions by a memorandum dated

March 10, 1995, entitled ‘‘1995

Revisions of DTC Service Fees.’’

Because participants have supported

cost-based fees in the past and because

overall the subject fee changes are

modest, DTC believes that a formal

period for participant comment was not

necessary this year.

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)(ii) 6 of the Act and Rule 19b–

4(e)(2) 7 thereunder because the rule

change establishes or changes a due, fee,

or other charge. At any time within sixty

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, N.W.,

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. 552, will be

available for inspection and copying in

the Commission’s Public Reference

Room, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of DTC. All submissions should

refer to the File No. SR–DTC–95–08 and

should be submitted by June 14, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–12699 Filed 5–23–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35724; File No. SR–CSE–

95–04]

Self-Regulatory Organizations; The

Cincinnati Stock Exchange

Incorporated; Order Approving

Proposed Rule Change Relating to

Implementation of a Three-Day

Settlement Standard

May 17, 1995.

On April 4, 1995, The Cincinnati

Stock Exchange Incorporated (‘‘CSE’’)

filed a proposed rule change (File No.

SR–CSE–95–04) with the Securities and

Exchange Commission (‘‘Commission’’)

pursuant to Section 19(b) of the

Securities Exchange Act of 1934

(‘‘Act’’).1 Notice of the proposal was

published in the Federal Register on

April 17, 1995, to solicit comments from

interested persons.2 The Commission

did not receive any comments. As

discussed below, this order approves

the proposed rule change.

I. Description

In October 1993, the Commission

adopted Rule 15c6–1 under the Act

which will become effective June 7,

1995.3 The rule establishes three

business days after the trade date

(‘‘T+3’’), instead of five business days

(‘‘T+5’’), as the standard settlement

cycle for most securities transactions.

Several of the CSE’s rules are

interrelated with the standard

settlement time frame. The purpose of

the proposed rule change is to amend

CSE’s rules in order that they are

consistent with a T+3 settlement

standard for securities transactions.

The following changes to CSE rules

are needed to implement the new

settlement standard established by Rule

15c6–1. Rule 3.8(b)(1)(iii) will require

that members receive reasonable

assurance from the customer that a

security will be delivered within three

business days of the execution of the

order. Rule 3.8(b)(2) will require that

members note on order tickets that the

customer has the ability to deliver stock

within three business days. Rule 11.4

will provide that transactions in stocks

(other than those made for ‘‘cash’’) shall

be ‘‘ex-dividend’’ or ‘‘ex-rights’’ on the

second business day preceding the

record date fixed by the company or the

date of the closing of transfer books

except when the Board of Trustees of

CSE rules otherwise. When the record

date or closing of transfer books occur

upon a day other than a business day,

transactions in stocks shall be ‘‘exdividend’’ or ‘‘ex-rights’’ on the third

preceding business day.

CSE has requested that the proposed

rule change become effective on the

same date as Rule 15c6–1, which will be

June 7, 1995. The transition from five

day settlement to three day settlement

will occur over a four day period.4

II. Discussion

The Commission believes the

proposal is consistent with the

requirements of Section 6 of the Act.5

Specifically, Section 6(b)(5) states that

the rules of the exchange must be

designed to foster cooperation and

coordination with persons engaged in

regulating, clearing, settling, and

processing information. On June 7,

1995, the new settlement cycle of T+3

will be established, as mandated by the

Commission’s Rule 15c6–1. As a result,

the CSE’s current rules based on a T+5

settlement cycle will be inconsistent

with this rule. This proposal will amend

the CSE’s rules to harmonize them with

the Commission Rule 15c6–1 and with

a T+3 settlement cycle.

In addition, the Commission believes

that the proposed rule change is

consistent with Section 6(b)(5) of the

Act in that it protects investors and the

public interest by reducing the risk to

clearing corporations, their members,

and public investors which is inherent

in settling securities transactions. The

reduction of the time period for

settlement of most securities

transactions will correspondingly

decrease the number of unsettled trades

in the clearance and settlement system

at any given time. Thus fewer unsettled

trades will be subject to credit and

market risk.6

IV. Conclusion

For the reasons stated above, the

Commission finds that CSE’s proposal is

consistent with Section 6 of the Act.7