34728 Federal Register / Vol. 66, No. 126 / Friday, June 29, 2001 / Notices

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

2W.T. is a service that allows participants to

withdraw physical stock or registered bond

certificates from DTC and have them registered in

a name other than Cede & Co., DTC’s nominee

name.

3The Commission has modified the text of the

summaries prepared by DTC.

4 In order for an issue to be eligible for DRS

processing through DTC, the issue must be ‘‘FAST’’

eligible. The issuer or its transfer agent must

provide direct mail service and have automated

computer links with DTC.

5Securities Exchange Act Release No. 37937

(November 8, 1996), 61 FR 58728 [File No. NYSE

96–29].

6A DTC participant can establish broker-dealer

information on behalf of a customer when

submitting a W.T. request to establish a book entry

position in DRS on a limited participant’s records.

7This free deliver order activity is made up of a

movement of share positions from DRS limited

participants to participants free of payment.

8The DRS Committee is comprised of

representatives from the Commission, DTC, and the

brokerage and transfer agent communities, and is

responsible for designing DRS.

Material Authorization) was updated to

ARA (Army Radiation Authorization).

Also, on page C–19, the list of Army

Regulations was updated by deleting AR

40–14 and AR 385–11 and adding AR

11–9 (The Army Radiation Safety

Program).

3. On page Roadmap-8, the first bullet

included an equation without an equal

sign. The equation was corrected to

include the equal sign.

4. On page 4–24, the second line of

the second paragraph under Section

4.8.3.2 was missing a modifier. The

word ‘‘that’’ was added to clarify the

meaning of the sentence.

5. On page 5–12, the second line of

the second paragraph under Section

5.3.3.3 included a typographical error. A

space was added between ‘‘samples’’

and ‘‘of.’’

6. On page 6–16, the second line of

the last paragraph under Section 6.5.1.3

was edited for clarification. The word

‘‘fluence’’ was added following ‘‘total

particle.’’

7. On page 6–30, the Greek letter

epsilon character in equations 6–3 and

6–4 printed incorrectly. This misprint

was corrected.

8. On page 6–37, the example data

were modified to reflect the August

2000 Errata and Addenda correction of

the conversion factor for converting Bq/

m2 to dpm/100 cm2.

9. On page 8–19, the example data

were modified to reflect the August

2000 Errata and Addenda correction of

the conversion factor for converting Bq/

m2 to dpm/100 cm2.

10. On page 8–23, text was added to

the first and third paragraphs to clarify

the definition and use of the Greek letter

delta (lower case delta) in equation 8–

2 on that page.

11. On page 8–23, the Greek letter

delta (lower case delta) character in

equation 8–2 printed incorrectly. The

misprint was corrected.

Dated in Rockville, Maryland, this 25th

day of June 2001.

For the U.S. Nuclear Regulatory

Commission.

Thomas L. King,

Director, Division of Risk Analysis and

Applications, Office of Nuclear Regulatory

Research.

[FR Doc. 01–16392 Filed 6–28–01; 8:45 am]

BILLING CODE 7590–01–P

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44471; File No. SR–DTC–

2001–07]

Self-Regulatory Organizations; The

Depository Trust Company; Notice of

Filing of Proposed Rule Change

Relating to the Movement of All DRS

Issues into Profile and the

Establishment of the ‘‘S’’ Position as

the Default Position

June 22, 2001.

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

Securities Exchange Act of 1934

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

May 25, 2001, 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 parties.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change would

establish a date on which all securities

issues which are presently eligible for

the Direct Registration System (‘‘DRS’’)

in DTC and which are not in the Profile

Modification System (‘‘Profile’’), which

is part of DRS, will have to move into

Profile. Additionally, a broker-dealer’s

request for a withdrawal by transfer

(W.T.) 2 for a DRS eligible issue which

does not specifically request a certificate

will automatically default to a DRS

book-entry position (an ‘‘S’’ position) on

the books of the issuer or its transfer

agent. Both of these changes would

become effective November 1, 2001.

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 these statements.3

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In 1996, the New York Stock

Exchange, Inc. modified its listing

criteria to permit listed companies to

issue securities in book entry form

provided that the issue is eligible for

DRS processing 4 through a depository.5

Since them, there has been a steady

growth in securities issued through

DRS, primarily through corporate action

distributions and initial public

offerings. An investor may update

broker-dealer information directly with

the respective DRS limited participant

(i.e., the transfer agent) and also may

instruct the DRS limited participant to

move the investor’s share positions to

the investor’s broker-dealer’s participant

account at DTC by completing the

appropriate information on the

transaction advice and submitting the

hard copy paper instruction to the DRS

limited participant.6 In 1999, the

volume of DRS free deliver order

activity moving positions from DRS

limited participants to participants (i.e.,

from transfer agents to broker-dealers)

exceeded 183,000 transactions.7 In

2000, the volume increased to 280,000

transactions, and through March of

2001, the volume was 76,000.

In January 1999, the DRS Committee

approved Profile’s system specifications

and authorized DTC to proceed with the

development of Profile.8 DTC completed

production of Profile on June 5, 1999,

and it has been available for use since

then. Profile allows a DTC participant to

submit electronically to a transfer agent

who is a DRS limited participant an

investor’s instruction that its share

positions be moved from the investor’s

DRS account with the DRS limited

participant to the investor’s brokerVerDate 11<MAY>2000 20:01 Jun 28, 2001 Jkt 194001 PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 E:\FR\FM\29JNN1.SGM pfrm04 PsN: 29JNN1
Federal Register / Vol. 66, No. 126 / Friday, June 29, 2001 / Notices 34729

9A participants can also use Profile’s records to

electronically append broker-dealer information to

a shareholder’s record at the limited participant.

10Securities Exchange Act Release No. 42704

(April 19, 2000), 65 FR 24242.

11Representatives from the above-referenced

organizations also sit on the DRS Committee, an

industry committee responsible for designing DRS.

12 If a securities issuer whose issue is currently

eligible in DRS does not agree to allow processing

of its securities through Profile by November 1,

2001, that issuer will be prohibited from

establishing any new DRS positions.

13 15 U.S.C. 78q–1. 14 17 CFR 200.30–3(a)(12).

dealer’s participant account at DTC

(‘‘Electronic Participant Instruction’’).9

Similarly, a DRS limited participant

using Profile may submit an investor’s

instruction for the movement of its

share position from the investor’s

broker-dealer’s participant account at

DTC to an account maintained by the

DRS limited participant (‘‘Electronic

Limited Participant Instruction’’).

At the time that the Commission

approved DTC’s proposed rule change

establishing Profile, it was contemplated

that an electronic medallion program

would be developed by a party that

currently administers a medallion

program in connection with transfers of

physical certificates and that such an

electronic medallion program would

become part of Profile.10 At a meeting

held on April 20, 2000, that included

representatives of the Securities

Transfer Association, the Corporate

Transfer Association, the American

Society of Corporate Secretaries, the

Securities Industry Association, DTC,

the staff of the Commission, and the

New York Stock Exchange, it was

decided that because of its role in DRS,

DTC would be a logical party to

administer a program that would

provide many of the benefits of an

electronic medallion program.11 At that

meeting, it was apparent that recipients

of Electronic Instructions would like to

have the benefits of a surety bond that

would be applicable when the obligor

did not honor its obligations.

As a result, DTC proposed the DTC

Profile Surety Program (‘‘PSP’’). PSP is

open only to DTC full or limited

participants. DTC is the program

administrator of PSP. Under PSP, in

order to send an Electronic Instruction,

an entity is required to procure a surety

bond. The surety bond has a limit of $2

million per occurrence with an

aggregate limit of $6 million. The surety

company issuing the surety bond must

be either a company picked by DTC as

the administrator of PSP or at the

election of the entity procuring the

surety bond an other surety company.

Any other such surety company must

issue its surety bond subject to the terms

and conditions established by DTC for

the PSP.

The PSP went into operation on May

3, 2001, with over twenty institutions

representing 43 participant account

numbers. With PSP in place, the DRS

Committee at a meeting on April 12,

2001 agreed to take steps to migrate into

Profile all securities issues currently in

DRS but not in Profile. This migration

is scheduled to be completed by

November 1, 2001.12

In addition to the migration into

Profile, DTC would change the DRS

default code for a W.T. from the current

‘‘C’’ for certificate to ‘‘S’’ for statement.

The ‘‘S’’ default code would be utilized

if a broker submitted a W.T. for a DRS

eligible issue that omitted a ‘‘C’’

certificate request on behalf of an

investor.

The proposed rule change is

consistent with the requirements of

Section 17A of the Act 13 and the rules

and regulations thereunder applicable to

DTC because the proposed rule change

will give participants more efficient

usage of DRS and because it will be

implemented consistently with the

safeguarding of securities and funds in

DTC’s custody or control or for which

it is responsible since the operation of

DRS, as modified by the proposed rule

change, will be similar to the current

operation of the function.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

DTC perceives no adverse impact on

competition by reason of the proposed

rule change.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants or Others

Written comments relating to the

proposed rule change have not yet been

solicited or received. DTC will notify

the Commission of any written

comments received by DTC.

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 the self-regulatory

organization 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,

including whether the proposed rule

change is consistent with the Act.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW,

Washington, DC 20549–0609. 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–2001–07 and

should be submitted by July 20, 2001.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–16374 Filed 6–28–01; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3348]

State of Louisiana; Amendment #2

In accordance with a notice received

from the Federal Emergency

Management Agency, dated June 22,

2001, the above-numbered Declaration

is hereby amended to establish the

incident period for this disaster as

occurring between June 5, 2001 and

continuing through June 22, 2001.

All other information remains the

same, i.e., the deadline for filing

applications for physical damage is

August 10, 2001, and for loans for

economic injury is March 11, 2002.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008.)