62920 Federal Register / Vol. 60, No. 235 / Thursday, December 7, 1995 / Notices

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

2While MSTC does not have specific written ID

procedures, the MST System Flash newsletter is

sent to MSTC participants to update them on,

among other things, ID system changes. The

newsletter is kept on record at MSTC and is used

by MSTC as its participant procedures.

3 27 CFR 240.10b–10 (1994).

4The Commission has modified the text of the

summaries prepared by PHILADEP and MSTC.

5For a complete discussion of the amendments,

refer to Securities Exchange Act Release No. 34962

(November 10, 1994), 59 FR 59612.

6Letter from Catherine McGuire, Chief Counsel,

Division of Market Regulation, Commission, to

George P. Miller, Esq., Vice President and Associate

General Counsel, PSA (September 29, 1995).

The CHX’s proposed Tier II standards

are essentially identical to the current

CHX standards applicable to all listed

issues, except that index warrants and

contingent value rights will no longer be

listed under Tier II.

Miscellaneous

The CHX does not propose to

materially change its admissions

procedures or its delisting procedures.

2. Statutory Basis

The proposed rule change is

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

Act in that the proposal fosters

cooperation and coordination with

persons engaged in regulating, clearing,

settling, processing information with

respect to, and facilitating transactions

in securities, removes impediments to

and perfects the mechanism of a free

and open market and a national market

system and protects investors and the

public interest. The proposal also is

consistent with Section 11A of the Act

in that approval of the Tier I standards

will aid in the development of the

national market system by enhancing

competition for equity listings.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any inappropriate 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 either

solicited or received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the publication of

this notice in the Federal Register or

within such other period (i) as the

Commission may designate up to 90

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 the 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.

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

communication 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, N.W., Washington, D.C.

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–CHX–95–26 and should be

submitted by December 28, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

FR Doc. 95–29782 Filed 12–6–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–36533; File Nos. SR–

PHILADEP–95–09; SR–MSTC–95–09]

Self-Regulatory Organizations;

Philadelphia Depository Trust

Company and Midwest Securities Trust

Company; Notice of Filing and

Immediate Effectiveness of Proposed

Rule Changes Modifying Procedures to

Enable Compliance With Confirmation

Disclosure Requirements Through the

Use of the Institutional Delivery

System

November 30, 1995.

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

Securities Exchange Act of 1934 (‘‘Act),1

notice is hereby given that on October

24, 1995, and on October 27, 1995,

respectively, the Philadelphia

Depository Trust Company

(‘‘PHILADEP’’) and the Midwest

Securities Trust Company (‘‘MSTC’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule changes as described in

Items I, II, and III below, which Items

have been prepared primarily by

PHILADEP and MSTC. The Commission

is publishing this notice to solicit

comments on the proposed rule changes

from interested parties.

I. Self-Regulatory Organizations’

Statements of the Terms of Substance of

the Proposed Rule Changes

PHILADEP and MSTC propose to

make additions to their respective

procedures 2 to enable their participants

using the Institutional Delivery (‘‘ID’’)

system for generating confirmations for

customer transactions to comply with

certain disclosure requirements of Rule

10b–10 under the Act.3

II. Self-Regulatory Organizations’

Statements of the Purpose of, and

Statutory Basis for, the Proposed Rule

Changes

In their filings with the Commission,

PHILADEP and MSTC included

statements concerning the purpose of

and the basis for the proposed rule

changes and discussed any comments

they received on the proposed rule

changes. The text of these statements

may be examined at the places specified

in Item IV below. PHILADEP and MSTC

have prepared summaries, set forth in

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

most significant aspects of such

statements.4

A. Self-Regulatory Organizations’

Statements of the Purpose of, and the

Statutory Basis for, the Proposed Rule

Changes

In 1994, the Commission adopted

amendments to Rule 10b–10.5

Subsequently, the Division of Market

Regulation issued a no-action letter to

the Public Securities Association

(‘‘PSA’’) on behalf of its members and

all other brokers and dealers

temporarily exempting them from

certain disclosure requirements of

paragraphs (a)(7), (a)(8), and (a)(9) of

Rule 20b–10 until November 1, 1995.6

The purpose of these proposed rule

changes is to enable PHILADEP and

MSTC participants using the ID system

for generating confirmations for

customer transactions to comply with

the following three disclosure

requirements upon the expiration of the

temporary exemption on November 1,

1995.
Federal Register / Vol. 60, No. 235 / Thursday, December 7, 1995 / Notices 62921

7 15 U.S.C. 78q–1(b)(3)(F) (1988).

8 15 U.S.C. 78s(b)(3)(A)(i) (1988).

9 17 CFR 240.19b–4(e)(4) (1994).

10 17 CFR 200.30–3(a)(12) (1994).

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

2 17 CFR 240.19b–4.

3See Letter from Geraldine M. Brindisi, Vice

President and Corporate Secretary, Amex, to Glen

Barrentine, Senior Counsel/Team Leader, SEC

(Sept. 28, 1995).

4Securities Exchange Act Release No. 36326 (Oct.

3, 1995), 60 FR 52713.

(1) The amended rule reburies brokerdealers to disclose that they are not

members of the Securities Investor

Protection Corporation (‘‘SIPC’’) if, in

fact, they are not so affiliated. These

broker-dealers may make such

disclosures by noting ‘‘[Name of brokerdealer] is not a member of SIPC’’ in the

Special Instructions field of trade data

submitted to the ID system. PHILADEP’s

and MSTC’s proposed rule changes add

to their respective procedures the

method by which broker-dealers

indicate that they are not SIPC

members.

(2) In the case of a private debt

security, the amended rule requires

broker-dealers to disclose if the security

is not rated by a nationally recognized

statistical rating organization. A brokerdealer using the ID system can disclose

that fact by entering ‘‘Not Rated’’ or

‘‘N/R’’ in the Special Instructions field.

PHILADEP’s and MSTC’s proposed rule

changes add to their respective

procedures a statement of the meaning

of the codes ‘‘Not Rated‘‘ or ‘‘N/R.’’

(3) The amended rule requires brokerdealers to disclose that the yield for

asset-backed securities that are

continuously subject to prepayment

may vary depending upon the rate of

prepayments. Upon written request

from their customers, broker-dealers

will provide certain information

concerning the factors that affect these

securities’ yield. A broker-dealer using

the ID System can enter one of several

acronyms in the Security Type field

identifying the security as one of several

types of securities that meet the rule’s

definition of asset-backed security.

PHILADEP’s and MSTC’s proposed rule

changes add to their respective

procedures a provision designating

several acronyms that when placed in

the Security Type field will denote that

the security meets the Rule 10b–10

definition of an asset-backed security.

PHILADEP and MSTC believe the

proposed rule changes are consistent

with the requirements of Section

17A(B)(3)(F) 7 of the Act and the rules

and regulations thereunder applicable to

PHILADEP and MSTC because the

proposed rule changes will facilitate the

confirmation of transactions through the

use of the ID system in compliance with

the additional requirements of Rule

10b–10 and in conjunction with the

expiration date of the temporary

exemption on November 1, 1995.

B. Self-Regulatory Organizations’

Statements on Burden on Competition

PHILADEP and MSTC believe these

procedural modifications will not

impose a burden on competition.

Self-Regulatory Organizations’

Statements on Comments on the

Proposed Rule Changes Received From

Members, Participants or Others

PHILADEP and MSTC have neither

solicited nor received comments on the

proposed rule changes.

III. Date of Effectiveness of the

Proposed Rule Changes and Timing for

Commission Action

The foregoing rule changes have

become effective pursuant to Section

19(b)(3)(A)(i) 8 of the Act and pursuant

to Rule 19b–4(e)(4) 9 promulgated

thereunder because the proposals

constitute changes in existing services

of registered clearing agencies that do

not adversely affect the safeguarding of

securities or funds in the custody or

control of those clearing agencies or for

which they are responsible and do not

significantly affect the respective rights

or obligations of the clearing agencies or

persons using the service. At any time

within sixty days of the filing of such

rule changes, the Commission may

summarily abrogate such rule changes 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 such submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, DC 20549. Copies of the

submission, all subsequent

amendments, all written statements

respecting the proposed rule changes

that are filed with the Commission, and

all written communications concerning

the proposed rule changes between the

Commission and any person, other than

those that may be withheld from the

public pursuant to 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, DC

20549. Copies of the respective filings

will also be available for inspection and

copying at the principal offices of

PHILADEP and MSTC. All submissions

should refer to File Nos. SR–

PHILADEP–95–09 and SR–MSTC–95–

09 and should be submitted by

December 28, 1995.

For the Commission by the Division

of Market Regulation, pursuant to

delegated authority.10

Jonathan G. Katz,

Secretary.

[FR Doc. 95–29783 Filed 12–6–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–36541; File No. SR–Amex–

95–28]

Self-Regulatory Organizations;

American Stock Exchange, Inc.; Order

Granting Approval to Proposed Rule

Change Relating to Updates to the

Exchange’s Company Guide

November 30, 1995.

I. Introduction

On July 19, 1995, the American Stock

Exchange, Inc. (‘‘Amex’’ or ‘‘Exchange’’)

submitted to the Securities and

Exchange Commission (‘‘Commission’’),

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

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a

proposed rule change to update various

sections of its Company Guide. On

September 28, 1995, the Exchange filed

Amendment No. 1 to the proposed rule

change.3

The proposed rule change, as

amended, was published for comment

in the Federal Register on October 10,

1995.4 No comments were received on

the proposal.

II. Description of the Proposal

The Exchange has proposed

amendments to several sections of the

Amex Company Guide in order to

conform it with recent changes to

comparable New York Stock Exchange

(‘‘NYSE’’) sections, to update certain

sections that contain provisions that are

no longer applicable, and to clarify

certain obligations contained in the

rules. As described more fully below,

the Exchange proposes to amend

sections of its Company Guide that

pertain to preferred stock, warrants,

conflicts of interest, original and annual

listing fees, the listing resolution,

‘‘backdoor’’ listings, fractional shares,

the listing agreement, interim reports,