13196 Federal Register / Vol. 60, No. 47 / Friday, March 10, 1995 / Notices

1The Exchange stated that noncorporate or

partnership entities would have to be structured in

such a format that would qualify as a broker or

dealer registered with the SEC pursuant to the Act,

since this is a prerequisite to becoming an Exchange

member organization. Telephone conversation

between Michael D. Pierson, Senior Attorney, PSE,

and Elisa Metzger, Senior Counsel, SEC, on March

3, 1995.

or distribution fee under a plan adopted

in accordance with rule 12b–1 under the

Act.

2. The investment advisers and their

respective affiliates, in their capacities

as service providers for the Money

Market Series, will remit to the

respective Non-Money Market Series, or

waive their fees with respect to the NonMoney Market Series, in an amount

equal to all fees received by them or

their affiliates under their respective

agreements with the Money Market

Series to the extent such fees are based

upon the Non-Money Market Series’

assets invested in shares of the Money

Market Series. Any of these fees

remitted or waived will not be subject

to recoupment by the Series’ investment

advisers or their affiliates at a later date.

3. For the purpose of determining any

amount to be waived and/or expenses to

be borne to comply with an Expense

Waiver, the adjusted fees for a NonMoney Market Series (gross fees minus

Expense Waiver) will be calculated

without reference to the amounts

waived or remitted pursuant to

condition 2. Adjusted fees then will be

reduced by the amount waived pursuant

to condition 2. If the amount waived

pursuant to condition 2 exceeds

adjusted fees, the Non-Money Market

Series’ investment adviser also will

reimburse the Non-Money Market Series

in an amount equal to such excess.

4. The Non-Money Market Series will

vote their shares of each of the Money

Market Series in the same proportion as

the votes of all other shareholders in

such Money Market Series.

5. The Non-Money Market Series will

receive dividends and bear their

proportionate share of expenses on the

same basis as other shareholders of such

Money Market Series. A separate

account will be established in the

shareholder records of each of the

Money Market Series for each of the

acquiring Non-Money Market Series.

For the Commission, by the Division of

Investment Management, under delegated

authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 95–5965 Filed 3–9–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35443; File No. SR–PSE–

95–06]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Pacific Stock Exchange, Inc.

Relating to New Organizational

Structures

March 6, 1995.

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

Securities Exchange Act of 1934

(‘‘Act’’), 15 U.S.C. § 78s(b)(1), notice is

hereby given that on February 21, 1995,

the Pacific Stock Exchange, Inc. (‘‘PSE’’

or ‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) the proposed

rule change as described in Items I, II

and III below, which Items have been

prepared by the self-regulatory

organization. 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 PSE is proposing to amend

articles V and VIII of its Constitution to

allow for the admission of entities with

new organizational structures as

member organizations.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

self-regulatory organization 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.

The self-regulatory organization 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

1. Purpose

The PSE Constitution currently allows

members of the Exchange to confer the

privileges of their memberships on a

firm which may be either a partnership

or a corporation. Recent changes to state

corporate laws, however, have

expanded the types of organizational

structures available to such members.

Accordingly, the Exchange is proposing

to amend its Constitution to permit the

Exchange, in its discretion, and on such

terms and conditions as the Exchange

may prescribe, to approve business

trusts, limited liability companies and

other organizational structures as

member organizations so long as the

characteristics of the entity in question

are essentially similar to those of

corporations or partnerships.1

Specifically, the Exchange is

proposing to amend Article VIII, Section

1(a) of its Constitution to provide that

the Exchange may, in its discretion, and

on such terms as the Exchange may

prescribe, approve as a member firm

entities that have characteristics

essentially similar to corporations,

partnerships, or both. The proposed

change states that such entities and

persons associated therewith shall upon

approval, be fully, formally and

effectively subject to the jurisdiction,

and to the Constitution and Rules, of the

Exchange to the same extent and degree

as are any other member organizations

and persons associated therewith.

The Exchange is also proposing to

amend Article V, Sections 4, 5, and 7 of

the PSE Constitution (definitions of

‘‘member firm,’’ ‘‘member

organization,’’ and ‘‘associated person’’)

to be consistent with the proposed

change to Article VIII, Section 1(a).

Accordingly, the Exchange is proposing

to add the phrase ‘‘other Organization’’

to the definitions of ‘‘member firm’’ and

‘‘member organization’’ and to add the

phrases ‘‘member of a Limited Liability

Company’’ and ‘‘trustee of a business

trust’’ to the definition of ‘‘associated

person.’’

2. Statutory Basis

The proposal is consistent with

Section 6(b) of the Exchange Act, in

general, and Section 6(b)(5), in

particular, in that it is designed to

promote just and equitable principles of

trade and to protect investors and the

public interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act.
Federal Register / Vol. 60, No. 47 / Friday, March 10, 1995 / Notices 13197

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

2Letters from Karen Saperstein, General Counsel,

NSCC, to Jerry Carpenter, Assistant Director, Office

of Securities Processing, Division of Market

Regulation, Commission (January 31, 1995 and

March 1, 1995).

3On October 6, 1993, the Commission adopted

Rule 15c6–1 which became effective June 7, 1995,

establishes T+3 as the standard settlement cycle.

Securities Exchange Act Release Nos. 33023

(October 6, 1993), 58 FR 52891 (order approving

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

59137 (order changing the effective date of Rule

15c6–1).

4 In a T+3 settlement environment, one day

settlement will be provided for any transaction

processed on T+2 prior to the cut off time.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants or Others

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

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.

VI. 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, NW.,

Washington, DC 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 U.S.C. § 552, will be

available for inspection and copying at

the Commission’s Public Reference

Section 450 Fifth Street, NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the PSE. All submissions

should refer to File No. SR–PSE–95–06

and should be submitted by March 31,

1995.

For the Commission, by the Division of

Market Regulations, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 95–5864 Filed 3–9–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35442; File No. SR–NSCC–

95–02]

Self-Regulatory Organizations;

National Securities Clearing

Corporation; Notice of Filing and Order

Granting Accelerated Approval of a

Proposed Rule Change To Provide a

One Day Settling Capability

March 3, 1995.

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

Securities Exchange Act of 1934

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

January 24, 1995, the National

Securities Clearing Corporation

(‘‘NSCC’’) filed with the Securities and

Exchange Commission (‘‘Commission’’)

the proposed rule change (File No. SR–

NSCC–95–02) as described in Items I

and II below, which items have been

prepared primarily by NSCC. On

January 31, 1995, and March 1, 1995,

NSCC filed amendments to the

proposed rule change.2 The Commission

is publishing this notice and order to

solicit comments from interested

persons and to grant accelerated

approval of the proposed rule change.

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 modify NSCC’s rules and

procedures in order to provide a one

day settling capability for trades that are

compared or recorded one day prior to

normal settlement date and thereafter.

The proposed rule also will revise

NSCC’s trade guarantee to provide that

NSCC will guarantee one day settling

items at the time that NSCC completes

the trade comparison process for trades

which NSCC compares or the trade

recording process for trades which

NSCC receives in a lock-in capacity.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

NSCC included statements concerning

the purpose of and basis for the

proposed rule change and discussed any

comments that it received on the

proposed rule change. The test of these

statement may be examined at the

places specified in Item IV below. NSCC

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

(a) In the current environment where

trades are settled five business days

after the trade (‘‘T+5’’), trades that are

compared or recorded at NSCC after the

third business day after the trade date

(‘‘T+3’’) do not settle until two days

later. Thus, a trade which is compared

or is recorded on T+4 is not included in

the normal settlement cycle for

settlement on T+5. NSCC’s system

assigns a new settlement date to these

items which is two business days after

the trade is compared or recorded,

which in this case would be T+6. Under

this processing system, when the T+3

settlement cycle is implemented, trades

which are compared or recorded on T+2

would not settle until T+4.3 Without a

change in this process it is estimated

that a substantial number of transactions

could miss timely settlement.

In order to allow as many compared

trades as possible to settle in a normal

cycle, NSCC proposes to provide a

processing capability that will permit

items processed one day prior to the

normal settlement day or later to settle

the next business day instead of settling

two business days after processing. This

enhancement will be implemented first

in the processing of trades settling in the

five day settlement cycle and will

include trades processed on T+4 prior to

the cut off time, which initially will be

9:00 p.m.4 T+4, trades processed prior

to the daily cut off time also will be

subject to next day settlement. Trades

processed after the daily cut off time

will continue to settle two business days

following comparison or recordation.

Transactions in securities which are not

eligible for NSCC’s Continuous Net

Settlement (‘‘CNS’’) system received

prior to the cut off time on T+4 (in a T+5

settlement cycle) or on T+2 (in a T+3

settlement cycle) will be processed on a

trade for trade basis for settlement the

next business day.

One day settling items will be

reported back to members on the

morning of the settlement day in a

separate section of the Consolidated

Trade Summary (‘‘CTS’’). Unlike other

trades listed on the CTS, these trades