14806 Federal Register / Vol. 60, No. 53 / Monday, March 20, 1995 / Notices

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

2 15 U.S.C. 78q–1 (1988).

3Letter from John J. Sceppa, President and Chief

Executive Officer, PTC, to Jerry Carpenter, Assistant

Director, Division of Market Regulation,

Commission (February 28, 1995).

4 15 U.S.C. 78q–1(b)(2) and 78s(a) (1988).

5Securities Exchange Act Release No. 26671

(March 28, 1989), 54 FR 13266.

6Securities Exchange Act Release Nos. 27858

(March 28, 1990), 55 FR 12614; 29024 (March 28,

1991), 56 FR 13848; 30537 (April 9, 1992), 57 FR

12351; 32040 (March 23, 1993), 58 FR 16902; and

33734 (March 8, 1994), 59 FR 11815.

7Supra note 5.

8Supra note 3.

9Securities Exchange Act Release No. 34154

(June 3, 1994), 59 FR 30073.

10Securities Exchange Act Release No. 35044

(December 2, 1994), 59 FR 63847.

11Securities Exchange Act Release No. 34472

(August 1, 1994), 59 FR 40397.

12Securities Exchange Act Release No. 35205

(January 9, 1995), 60 FR 3444.

13 In connection with PTC’s original temporary

registration, PTC committed to the Commission and

to the Federal Reserve Bank of New York to make

a number of operational and procedural changes

which include:

(1) Eliminating trade reversals from PTC’s

procedures to cover a participant default;

(2) Phasing out the aggregate excess net debit

limitation for extensions under the net debit

monitoring level procedures;

(3) Making principal and interest advances, now

mandatory, optional;

(4) Allowing participants to retrieve securities in

the abeyance account and not allowing participants

to reverse transfers because customers may not be

able to fulfill financial obligations to the

participants;

(5) Eliminating the deliverer’s security interest

and replacing it with a substitute;

(6) Reexamining PTC’s account structure rules to

make them consistent with PTC’s lien procedures;

(7) Expanding and diversifying PTC’s lines of

credit;

(8) Assuring operational integrity by developing

and constructing a back-up facility; and

(9) Reviewing PTC rules and procedures for

consistency with current operations.

Service data, see for example,

Comments of McGraw-Hill, Inc.

The Postal Service filed comments in

response to the Advance Notice. It

suggests that rate and classification

requests could be improved if

consideration were given to reducing

the amount of information which the

Postal Service is required to provide in

support of its requests. It suggests that

the Commission ‘‘canvass the postal

community as to which of the Postal

Service’s filings are actually used in the

course of Commission litigation.’’

Response of the United States Postal

Service to Request for Comments at 5.

The rules applicable to requests for

changes in rates and fees describe the

scope of supporting information which

the Postal Service must provide, see

rules of practice 54(b)–(r). The rules

applicable to requests for changes in the

Domestic Mail Classification Schedule

describe the scope of supporting

information which the Postal Service

must provide, see rules of practice

64(b)–(h). The vast preponderance of

these rules relate to the rationale

supporting the Postal Service request, or

estimates of the effect on costs, volumes,

and revenues should the proposed

changes be accepted.

This request for information is being

sent to participants in the last two

omnibus rate cases, Docket Nos. R94–1

and R90–1. Recipients are requested to

comment on whether current rules of

practice 54(b)–(r) or 64(b)–(h) require

the Postal Service to provide

information which is either not helpful

to participants or likely to be largely

irrelevant to issues in rate and

classification cases. Respondents are

asked to indicate either specific rules or

subjects which might be eliminated

without reducing the Commission’s

ability to issue recommended decisions

which comport with applicable

statutory criteria.

Respondents are assured that this

remains a preliminary stage in the effort

to streamline Commission proceedings.

No changes will be made in this

proceeding without providing interested

persons an opportunity to comment on

specific proposals. Nonetheless,

responses on the general topic of

whether current filing requirements are

unnecessarily burdensome to the Postal

Service will assist the Commission to

direct the focus of subsequent phases of

this rulemaking, and submissions on

this proposition by interested

participants will be extremely helpful.

By direction of the Commission.

Margaret P. Crenshaw,

Secretary.

[FR Doc. 95–6757 Filed 3–17–95; 8:45 am]

BILLING CODE 7710–FW–P

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–35482; File No. 600–25]

Self-Regulatory Organizations;

Participants Trust Company; Notice of

Filing of Request and Order Approving

Application for Extension of

Temporary Registration as a Clearing

Agency

March 13, 1995.

On February 28, 1995, the

Participants Trust Company (‘‘PTC’’)

files with the Securities and Exchange

Commission (‘‘Commission’’) a request

pursuant to section 19(a) 1 of the

Securities Exchange Act of 1934 (‘‘Act’’)

for extension of its registration as a

clearing agency under Section 17A 2 of

the Act for a period of one year.3 The

Commission is publishing this notice of

filing of request and order to solicit

comments from interested persons and

to grant PTC’s request for an extension

of its temporary registration as a

clearing agency through March 31, 1996.

On March 28, 1989, the Commission

granted PTC’s application for

registration as a clearing agency

pursuant to Sections 17A(b)(2) and

19(a) 4 of the Act on a temporary basis

for a period of one year.5 Subsequently,

the Commission issued orders that

extended PTC’s temporary registration

as a clearing agency, the last of which

extended PTC’s registration until March

31, 1995.6

As discussed in detail in the initial

order granting PTC’s temporary

registration,7 one of the primary reasons

for PTC’s registration was to develop

depository facilities for mortgage-backed

securities, particularly securities

guaranteed by the Government National

Mortgage Association (‘‘GNMA’’). PTC

services include certificate safekeeping,

book entry deliveries, an automated

facility for the pledge or segregation of

securities, and other services related to

the immobilization of securities

certificates.

PTC continues to make significant

progress in the areas of financial

performance, regulatory commitments,

and operational capabilities. For

example, the par value of GNMA

securities on deposit at PTC has grown

from $850 billion on December 31,

1993, to $967 billion on December 31,

1994, with average monthly GNMA I

principal and interest distributions

processed by PTC increasing from $13.5

billion in 1993 to $103.9 billion in 1994.

The par value of VA REMICs on deposit

at PTC has grown from $4.634 billion on

December 31, 1993, to $7.256 billion on

December 31, 1994. The average

monthly transaction volume processed

by PTC has grown from 309,000 in 1993

to 353,225 in 1994.8 PTC also has

expanded its product base with the

designation of GNMA REMICs,9 GNMA

Platinum securities,10 and certain

Freddie Mac REMICs backed by GNMA

securities 11 as depository eligible

securities. In addition, PTC declared a

dividend of $1.00 per share to

stockholders of record on December 31,

1994.12

PTC also continued its efforts over the

past year to implement operational and

procedural changes in connection with

PTC’s temporary registration.13 For
Federal Register / Vol. 60, No. 53 / Monday, March 20, 1995 / Notices 14807

14Securities Exchange Act Release No. 34701

(September 22, 1994), 59 FR 49730.

15 15 U.S.C. 78q–1(b)(3) (1988).

16 15 U.S.C. 78q–1(b) (1988).

17 17 CFR 200.30–3(a)(50)(i) (1994).

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

2For a description of MSTC’s changes to its

reorganization processing system, refer to Securities

Exchange Act Release No. 35293 (January 30, 1995),

60 FR 6741 [File No. SR–MSTC–94–19] (notice of

filing and order granting accelerated approval of

proposed rule change).

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

4 17 CFR 240.19b–4(e)(4) (1994).

example, PTC eliminated the Deliverer’s

Security Interest from its rules in

response to its commitment made to the

Commission and the Federal Reserve

Bank of New York.14

PTC has functioned effectively as a

registered clearing agency for the past

six years. In light of PTC’s past

performance, the Commission believes

that PTC has the capacity to comply

with the statutory obligations set forth

under Section 17A(b)(3) of the Act 15 as

the prerequisites for registration as a

clearing agency. Comments received

during PTC’s temporary registration will

be considered in determining whether

PTC should receive permanent

registration as a clearing agency under

Section 17A(b) of the Act.16

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 request for extension

of temporary registration as a clearing

agency that are filed with the

Commission, and all written

communications relating to the

requested extension between the

Commission and any person, other than

those that may be withheld from the

public in accordance with 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 also will be

available for inspection and copying at

the principal office of PTC. All

submissions should refer to File No.

600–25.

Conclusion

On the basis of the foregoing, the

Commission finds that PTC’s request for

extension of temporary registration as a

clearing agency is consistent with the

Act and in particular with Section 17A

of the Act.

It is therefore ordered, That PTC’s

temporary registration as a clearing

agency (File No. 600–25) be, and hereby

is, extended through March 31, 1996.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.17

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–6698 Filed 3–17–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35478; Rile No. SR–MSTC–

95–05]

Self-Regulatory Organizations;

Midwest Securities Trust Company;

Notice of Filing and Immediate

Effectiveness of Proposed Rule

Change Regarding Distribution of

Reorganization Processing Reports

and Notices

March 13, 1995.

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

Securities Exchange Act of 1934 1

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

March 3, 1995, the Midwest Securities

Trust Company (‘‘MSTC’’) filed with

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 MSTC. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The purpose of the proposed rule

change is to amend MSTC’s procedures

regarding distribution reorganization

notices and reports. Effective March 3,

1995, hard copy reports will only be

distributed upon request to those

participants who have access to MSTC’s

On-Line Report Availability (‘‘ORA’’)

function.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

MSTC 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. MSTC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The purpose of the proposed rule

change is to reduce participant cost by

distributing certain reorganization

processing reports and notices

electronically through MSTC’s ORA

function to those participants who have

terminal access. In an earlier proposed

rule change,2 MSTC amended its

procedures regarding the distribution of

reports and notices. In that filing, MSTC

stated that it would distribute certain of

those reports in hard copy form.

Effective March 3, 1995, hard copy

reports will only be distributed upon

request to those participants who have

access to MSTC’s ORA function.

MSTC believes the proposed rule

change is consistent with the

requirements of the Act, specifically

with Section 17A of the Act, and the

rules and regulations thereunder

because the proposal will facilitate the

prompt and accurate clearance and

settlement of securities transactions.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

MSTC believes that no burden will be

placed on competition as a result of the

proposed rule.

(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. MSTC will notify

the Commission of any written

comments received MSTC.

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) 3 of the Act and pursuant

to Rule 19b–4(e)(4) 4 promulgated

thereunder because the proposal effects

a change in an existing service that does

not adversely affect the safeguarding of

securities of funds in MSTC’s custody or

control or for which it is responsible

and does not significantly affect the

respective rights or obligations of MSTC

or persons using MSTC’s services. At

any time within sixty days of the filing

of such rule change, the Commission