[Federal Register Volume 60, Number 103 (Tuesday, May 30, 1995)]
[Notices]
[Pages 28191-28192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13073]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35752; file No. SR-PTC-95-04]


Self-Regulatory Organizations; Participants Trust Company; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Changing 
Custodians for the Safekeeping of Physical Certificates on Deposit With 
the Participants Trust Company

May 22, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 1, 1995, the 
Participants Trust Company (``PTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change (File No. 
SR-PTC-95-04) as described in Items I, II, and III below, which Items 
have been prepared primarily by PTC. On May 9, 1995, PTC filed an 
amendment to the proposed rule change.\2\ The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.

    \1\ 15 U.S.C. 78s(b)(1) (1988).
    \2\ As originally filed, the proposal incorrectly stated that 
the effective date of the transfer of securities was to be completed 
on or about May 8, 1996. The amendment set forth the correct date as 
May 8, 1995. Letter from Leopold S. Rassnick, Senior Vice President, 
General Counsel, and Secretary, PTC, to Jonathan Katz, Secretary, 
Commission (May 9, 1995).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change concerns PTC's change in custodians for 
the safekeeping of physical certificates on deposit with PTC.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, PTC 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. PTC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of such 
statements.\3\

    \3\ The Commission has modified the text of the summaries 
prepared by PTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    On April 18, 1995, PTC entered into a custody agreement with The 
Depository Trust Company (``DTC'') providing for the safekeeping by DTC 
of physical certificates on deposit with PTC. On the same date, PTC 
amended its custody agreement with Chemical Bank providing for the 
termination of the current custody arrangements with Chemical Bank. DTC 
began providing custodial services upon the completion of the transfer 
of the physical certificates to DTC on May 8, 1995. The custodial 
services to be provided by DTC are substantially similar to the 
services previously provided by Chemical Bank at considerable savings 
to PTC and its participants. The change in custodians was authorized by 
PTC's Board of Directors after completion of a due diligence review of 
DTC's facilities and procedures. DTC currently has approximately $8.3 
trillion in securities under its custody and control in connection with 
the custodial services it offers to its own participants.
    PTC believes that the proposed rule change is consistent with 
Section 17A(b)(3)(F) of the Act \4\ and the rules and regulations 
thereunder because it provides for the safeguarding of securities and 
funds in PTC's custody or control or for which PTC is responsible.

    \4\ 15 U.S.C. 78q-1(b)(3)(F) (1988).
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(B) Self-Regulatory Organization's Statements on Burden on Competition

    PTC does not believe that the proposed rule change imposes any 
burden on competition.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants, or Others

    PTC has neither solicited nor received comments on this proposed 
rule change.

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)(iii) of the Act \5\ and subparagraph (e)(3) of Rule 19b-4 
\6\ thereunder because the proposed rule change concerns the 
administration of PTC. At any time within sixty days of the filing of 
such 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.

    \5\ 15 U.S.C. 78s(b)(3)(A)(iii) (1988).
    \6\ 17 U.S.C. 240.19b-4(e)(3) (1994).

[[Page 28192]]

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\

    \7\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-13073 Filed 5-26-95; 8:45 am]
BILLING CODE 8010-01-M