15620 Federal Register / Vol. 60, No. 57 / Friday, March 24, 1995 / Notices

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

2Letter from Sharon S. Metzker, SCCP, to

Christine Sibille, Senior Counsel, Division of

Market Regulation, Commission (December 12,

1994).

3Securities Exchange Act Release No. 35154

(December 27, 1994), 60 FR 519.

4 17 CFR 240.15c6–1.

5Securities Exchange Act Release Nos. 33023

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

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

59137 (changing effective date from June 1, 1995,

to June 7, 1995).

6The transition from five day settlement to three

day settlement will occur over a four day period.

Friday, 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.

7 15 U.S.C. 78q–1 (1988).

8 15 U.S.C. 78q–1(b)(3)(F) (1988).

9 15 U.S.C. 78q–1 (1988).

10 15 U.S.C. 78s(b)(2) (1988).

11 17 CFR 200.30(a)(12) (1994).

[Release No. 34–35510; File No. SR–SCCP–

94–07]

Self-Regulatory Organizations; Stock

Clearing Corporation of Philadelphia;

Order Approving Proposed Rule

Change Relating to Implementation of

a Three-Day Settlement Standard

March 17, 1995.

On November 14, 1994, the Stock

Clearing Corporation of Philadelphia

filed a proposed rule change (File No.

SR–SCCP–94–07) with the Securities

and Exchange Commission

(‘‘Commission’’) pursuant to Section

19(b) of the Securities Exchange Act of

1934 (‘‘Act’’).1 On December 19, 1994,

SCCP filed an amendment to the

proposed rule change.2 Notice of the

proposal was published in the Federal

Register on January 4, 1995, to solicit

comments from interested persons.3 As

discussed below, this order approves

the proposed rule change.

I. Description

In October 1993, the Commission

adopted Rule 15c6–1 under the Act 4

which 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. The rule will

become effective June 7, 1995.5 Several

of SCCP’s rules are interrelated with

settlement time frames. The purpose of

the proposed rule change is to amend

SCCP’s rules to be consistent with a T+3

settlement standard for securities

transactions.

The proposed rule change amends

Rule 18 (‘‘Insolvency’’), Section 6 to

provide that upon the insolvency of a

participant, no contracts pending

settlement up to and including T+1

shall be settled by SCCP. Rule 18,

Section 7 is amended to provide that on

or after T+2, SCCP will buy in the

securities due it from an insolvent

participant and will sell out the

securities due to the participant from

SCCP. The proposed rule change also

amends Rule 40 (‘‘Instruments with

Exercise Privileges’’) to state that a

participant is advised of potential

liability based on its short value

positions on its CNS projection report

starting on the second business day after

the trade date.

SCCP has requested that the proposed

rule change become effective on the

same date as Rule 15c6–1. Rule 15c6–

1 becomes effective on June 7, 1995.6

II. Discussion

The Commission believes the

proposal is consistent with the

requirements of Section 17A of the Act.7

Specifically, Section 17A(b)(3)(F) 8

states that the rules of a clearing agency

must be designed to assure the

safeguarding of securities and funds

which are in the clearing agency’s

custody or control or for which it is

responsible and must be designed to

foster cooperation and coordination

with persons engaged in the clearance

and settlement of securities

transactions. Several of SCCP rules are

based on a five day time frame for

settlement of securities transactions. 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, SCCP’s current rules will be

inconsistent with the Commission’s

rule. This proposal will amend SCCP’s

rules to harmonize them with the

Commission’s Rule 15c6–1 and a T+3

settlement cycle. Further, the proposal

amends SCCP’s procedures for dealing

with an insolvent participant to be

consistent with a T+3 settlement cycle.

Thus, the proposal enhances SCCP’s

ability to safeguard securities and funds

in its custody and control or for which

it is responsible.

III. Conclusion

For reasons stated above, the

Commission finds that SCCP’s proposal

is consistent with Section 17A of the

Act.9

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,10 that the

proposed rule change (File No. SR–

SCCP–94–07) be and hereby is approved

and will become effective June 7, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–7240 Filed 3–23–95; 8:45 am]

BILLING CODE 8010–01–M

Issuer Delisting; Notice of Application

To Withdraw From Listing and

Registration; (Kinark Corporation,

Common Stock, $0.10 Par Value) File

No. 1–3920

March 20, 1995.

Kinark Corporation (‘‘Company’’) has

filed an application with the Securities

and Exchange Commission

(‘‘Commission’’), pursuant to Section

12(d) of the Securities Exchange Act of

1934 (‘‘Act’’) and Rule 12d2–(d)

promulgated thereunder, to withdraw

the above specified security (‘‘Security’’)

from listing and registration on the

Pacific Stock Exchange, Incorporated.

(‘‘PSE’’).

The reasons alleged in the application

for withdrawing the Security from

listing and registration include the

following:

The Board of Directors of the

Company (‘‘Board’’), pursuant to

lawfully delegated authority,

unanimously approved a resolution on

September 21, 1994, to withdraw the

Company’s listing on the PSE and to

maintain its listing and registration on

the American Stock Exchange, Inc.

(‘‘Amex’’). The decision of the Board

followed a study of the matter, and was

based upon the belief that the listing on

the PSE was no longer beneficial to the

Company because:

(1) The dual listing of the Security on

the PSE and Amex was no longer costeffective in light of the low annual

trading volume of the Security on the

PSE;

(2) The presence of a substantial

national and liquid market for the

Security on Amex; and

(3) The continuing need for the

Company to reduce the costs of doing

business in the current competitive

environment in which the Company

operates.

Any interested person may, on or

before April 10, 1995, submit by letter

to the Secretary of the Securities and

Exchange Commission, 450 Fifth Street

NW., Washington, D.C. 20549, facts

bearing upon whether the application

has been made in accordance with the

rules of the exchanges and what terms,

if any, should be imposed by the

Commission for the protection of

investors. The Commission, based on

the information submitted to it, will

issue an order granting the application

after the date mentioned above, unless