28192 Federal Register / Vol. 60, No. 103 / Tuesday, May 30, 1995 / Notices

7 17 CFR 200.30–3(a)(12) (1994).

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

2Some participants may continue to transmit to

PHILADEP in batch mode; however, PHILADEP

will process interactively with DTC.

3The Commission has modified the text of the

summaries submitted by PHILADEP.

4For a description of DTC’s enhancements to its

ID system to provide for interactive processing

capabilities, refer to Securities Exchange Act

Release No. 34199 (June 10, 1994), 59 FR 31660

[File No. SR–DTC–94–04] (granting accelerated

approval of a proposed rule change).

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

Section, 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 PTC. All submissions should

refer to File No. SR–PTC–95–04 and

should be submitted by June 20, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–13073 Filed 5–26–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35739; File No. SR–

PHILADEP–95–02]

Self-Regulatory Organizations;

Philadelphia Depository Trust

Company; Notice of Filing and Order

Granting Accelerated Approval of A

Proposed Rule Change to Modify the

Philadelphia Depository Trust

Company’s Interface With The

Depository Trust Company’s

Institutional Delivery System

May 19, 1995.

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

Securities Exchange Act of 1934

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

April 24, 1995, the Philadelphia

Depository Trust Company

(‘‘PHILADEP’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–PHILADEP–95–02)

as described in Items I and II below,

which Items have been prepared

primarily by PHILADEP. The

Commission is publishing this notice 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

PHILADEP proposes to modify its

interface with The Depository Trust

Company’s (‘‘DTC’’) Institutional

Delivery (‘‘ID’’) system to provide

PHILADEP participants with the ability

to send and receive trade confirmations

and affirmations on an interactive basis

and to provide participants greater

control over certain risks resulting from

incorrectly inputted trade data.2

PHILADEP also proposes to modify the

interface to facilitate the interactive

transmission of certain trade reports

between DTC and PHILADEP.

II. Self-Regulatory Organization’s

Statements of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

PHILADEP included statements

concerning the purpose of and the 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.

PHILADEP has prepared summaries, as

set forth in sections (A), (B), and (C)

below, of the most significant aspects of

these statements.3

A. Self-Regulatory Organization’s

Statement of the Purpose of, and the

Statutory Basis for, the Proposed Rule

Change

DTC’s ID system allows the parties

involved in an institutional trade (e.g.,

broker-dealer, institution, and custodian

bank) to confirm, affirm, and settle the

trade. The confirmation and affirmation

process helps to reduce the

circumstances where trades will not

settle because a party ‘‘does not know’’

(‘‘DKs’’) the trade. PHILADEP has been

operating an interface with DTC for the

settlement of institutional trades for

several years, and its interface with

DTC’s ID system provides PHILADEP

participants a single channel to

electronically coordinate all post-trade

activity among broker-dealers,

institutions, and custodians from trade

confirmation through final settlement.

DTC recently implemented

enhancements to its ID system to

provide users with the capability of

accomplishing all ID system processing

on an interactive basis throughout a

business day while also providing

participants with the option to continue

transmissions in batch mode.4

The purpose of PHILADEP’s proposed

rule change is to modify its interface

with DTC’s ID system to provide

PHILADEP participants with the ability

to send and receive trade confirmations

and affirmations on an interactive basis

and to provide participants greater

control over certain risks resulting from

incorrectly inputted trade data. When

entering trade data into the ID system,

PHILADEP broker-dealer participants

will have to assign and enter a unique

broker-dealer confirm number

corresponding to each ID trade that the

broker-dealer submits. The ID system

will not accept duplicate broker-dealer

confirm numbers, and it will reject the

trade if (i) the PHILADEP participant

omits the confirmation number or (ii)

the confirmation number matches an

existing ID trade. ID system users that

are participants of both DTC and

PHILADEP will continue to have the

ability to initially submit the trade

details to PHILADEP and to affirm

directly with DTC or with PHILADEP.

PHILADEP participants also will be

required to comply with the modified

procedures for cancelling a trade

previously entered into the ID system.

The ID system does not allow

participants to ‘‘back-out’’ a trade;

therefore, participants must cancel it by

providing the confirmation number of

the existing ID trade being cancelled

and by entering the appropriate reason

code for cancelling the trade. PHILADEP

participants can no longer enter a

numerical value of all nines in the

‘‘Other Charges’’ data field to signify a

trade cancellation.

Finally, PHILADEP also proposes to

modify the interface to facilitate the

interactive transmission of certain trade

reports between DTC and PHILADEP.

PHILADEP will be able to receive

reports of affirmed and unaffirmed

trades as often as needed from DTC and

will provide such reports to its

participants.

PHILADEP believes the proposed rule

change is consistent with Section 17A of

the Act and the rules and regulations

thereunder because modifying

PHILADEP’s interface with DTC’s ID

system to allow for the interactive

receipt and delivery of trade

confirmations and affirmations and for
Federal Register / Vol. 60, No. 103 / Tuesday, May 30, 1995 / Notices 28193

5 15 U.S.C. 78q–1(b)(3)(F) (1988).

6For a detailed description and discussion of the

conversion to a three business day settlement cycle,

refer to Securities Exchange Act Release Nos. 33023

(October 13, 1993) 58 FR 52891 [File No. S7–5–93]

(adoption of Commission Rule 15c6–1) and 34952

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

effective date from June 1, 1995, to June 7, 1995). 7 17 CFR 200.30–3(a)(12) (1994).

1 Investment Company Act Release Nos. 18710

(May 15, 1992) (notice) and 18782 (June 12, 1992)

(order).

the interactive receipt and distribution

of certain trade reports will facilitate the

prompt and accurate clearance and

settlement of securities transactions.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

PHILADEP does not believe that the

proposed rule change will impact 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. PHILADEP will

notify the Commission of any written

comments received.

III. Date of Effectiveness of the

Proposed Rule Changes and Timing for

Commission Action

Section 17A(b)(3)(F) 5 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 and to provide

for the prompt and accurate clearance

and settlement of securities

transactions. The Commission believes

that PHILADEP’s proposal to modify its

interface with DTC’s ID System to

enable interactive communication

should help cooperation and

coordination among PHILADEP and

DTC and the parties involved in

institutional trades. The Commission

further believes that the proposed

interactive capability is consistent with

PHILADEP’s obligation to provide for

the prompt and accurate clearance and

settlement of securities transactions

because it should help PHILADEP

participants to settle institutional trades

in a T+3 settlement cycle, which will be

the standard settlement time for most

broker dealer trades beginning June 7,

1995.6 Currently, institutional trades

settle on a T+5 cycle.

PHILADEP 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 of the proposed

rule change will allow PHILADEP

participants to utilize and become

familiar with the interactive capabilities

available through PHILADEP’s modified

interface with DTC’s ID 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 such 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

filings will also be available for

inspection and copying at the principal

office of PHILADEP. All submissions

should refer to File No. SR–PHILADEP–

95–02 and should be submitted by June

20, 1995.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

PHILADEP–95–02) be, and hereby is,

approved.

For the Commission by the Division of

Market Regulation pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–13074 Filed 5–26–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. IC—21087; International Series

Release No. 812; 812–7846]

Citibank, NA., et al.; Notice of

Application

May 22, 1995.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of Application for

Exemption under the Investment

Company Act of 1940 (‘‘1940 Act’’).

APPLICANTS: Citibank, N.A. (‘‘Citibank’’)

and Citicorp.

RELEVANT 1940 ACT SECTIONS: Exemption

requested under section 6(c) from

section 17(f) and rule 17F–5.

SUMMARY OF APPLICATION: Applicants

seek conditional exemptive relief from

section 17(f) of the 1940 Act and rule

17f–5 thereunder with respect to two

forms of foreign custody arrangements.

The requested exemption would amend

an existing order (the ‘‘1992 Order’’) 1

allowing Citibank, acting as custodian

or subcustodian, to deposit the

securities of United States investment

companies with certain foreign

subsidiaries of the Applicants. The

requested exemption also would allow

Citibank to make available direct

custody arrangements between United

States investment companies and

certain foreign subsidiaries of the

Applicants.

FILING DATES: The application was filed

on January 7, 1992, and was amended

and restated on September 8, 1992, May

19, 1993, November 21, 1994, April 24,

1995, and May 22, 1995.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the SEC orders a hearing.

Interested persons may request a

hearing by writing to the SEC’s

Secretary and serving Applicants with a

copy of the request, personally or by

mail. Hearing requests should be

received by the SEC by 5:30 p.m. on

June 16, 1995, and should be

accompanied by proof of service on

Applicants, in the form of an affidavit

or, for lawyers, a certificate of service.

Hearing requests should state the nature

of the writer’s interest, the reason for the

request, and the issues contested.

Persons who wish to be notified of a

hearing may request notification by

writing to the SEC’s Secretary.

ADDRESSES: Secretary, SEC, 450 5th

Street, NW., Washington, DC 20549.

Applicants, c/o Caroline F. Marks, Esq.,

GTS-Legal, 111 Wall Street, 15th Floor,

Zone 9, New York, New York 10043.

FOR FURTHER INFORMATION CONTRACT:

H.R. Hallock, Jr., Special Counsel, at

(202) 942–0564 (Office of Investment

Company Regulation, Division of

Investment Management) .

SUPPLEMENTARY INFORMATION: The

following is a summary of the

application. The complete application

may be obtained for a fee at the SEC’s

Public Reference Branch.