Federal Register / Vol. 60, No. 49 / Tuesday, March 14, 1995 / Notices 13743

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

2For a complete description of these procedures,

refer to Securities Exchange Act Release Nos. 23219

(May 8, 1986), 51 FR 17845 [SR–DTC–86–03]

(notice of filing and immediate effectiveness on a

temporary basis of a proposed rule change

implementing procedures for charging back

erroneous dividend and interest payments from

participants’ accounts), 23686 (October 7, 1986), 51

FR 37104 [SR–DTC–86–04] (order approving

proposed rule change implementing charge back

procedures), and 26070 (September 9, 1988) 53 FR

36142 [SR–DTC–88–17] (notice of filing and

immediate effectiveness of proposed rule change

clarifying that charge back procedures apply to

DTC’s same-day funds settlement system as well as

its next-day funds settlement system).

3For a complete description of DTC’s MMI

programs, refer to Securities Exchange Act Release

No. 33958 (April 22, 1994), 59 FR 22878 [SR–DTC–

93–12] (notice of order temporarily approving a

proposed rule change expanding the Money Market

Instrument Settlement Program).

5(d)(viii) (Over-the-Counter Execution

of Equity Securities Transactions) to

Rules 560 and 570 are being deleted

because Rules 560 and 570 have been

rescinded. The Exchange is also deleting

the signature requirement in Rule 181

(Cancellations Must Be Written) to

reflect the current practice. The

signature requirement, going back to the

N.Y. Curb Exchange circa 1939, has not

been deemed necessary on the Trading

Floor in the era of the printed ticket.

The Exchange is also amending Rules

183 (Specialist Registration Fee) and

184 (Specialist Clerks) to eliminate outof-date charges and timing of payments.

The Exchange proposes to use general

language in the rules to alleviate the

need for repeated amendments to the

Exchange Rules each time these fees are

changed. The Exchange will make the

necessary rule filings with the

Commission before any fee changes

become effective. The Exchange is also

amendment Rule 783(d) (Normal BuyIns) to delete the reference to a

member’s entitlement to a Floor

brokerage commission because the

commissions are negotiated.

2. Statutory Basis

The proposed rule change is

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

Act in that it is designed to prevent

fraudulent and manipulative acts and

practices and to perfect the mechanism

of a free and open market.

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

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 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–Amex–95–

10 and should be submitted by April 4,

1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–6164 Filed 3–13–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35452; File No. SR–DTC–

95–03]

Self-Regulatory Organizations; The

Depository Trust Company; Notice of

Filing and Immediate Effectiveness of

Proposed Rule Change Clarifying

Exclusion of Money Market Instrument

Programs From DTC’s Charge Back

and Return of Funds Procedures for

Erroneous or Improper Payments of

Dividends and Interest and

Redemption Proceeds

March 7, 1995.

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

Securities Exchange Act of 1934

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

January 31, 1995, 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 persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change.

The proposed rule change clarifies

that DTC’s procedures for charging back

from participants’ accounts erroneous or

improper payments of dividends and

interest and redemption proceeds, as

well as DTC’s procedures for the

subsequent return of such funds to

payors,2 do not apply to such payments

made for instruments in DTC’s Money

Market Instrument (‘‘MMI’’) programs.3

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 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 clarify that DTC’s

procedures for charging back from

participants’ accounts erroneous or

improper payments of dividends and

interest and redemption proceeds, as

well as DTC’s procedures for the

subsequent return of funds to payors, do

not apply to payments made for

instruments in DTC’s MMI programs.

DTC’s charge back and return of funds

procedures do not apply to those

instruments that are included in DTC’s
13744 Federal Register / Vol. 60, No. 49 / Tuesday, March 14, 1995 / Notices

4 15 U.S.C. 78s(b)(3)(A)(i) (1988).

5 17 CFR 240.19b–4(e)(1) (1994).

6 17 CFR 200.30–3(a)(12) (1994).

1 In addition, the NASD filed Amendment No. 1

on January 11, 1995, to clarify who must report to

the NASD, what the entities must report, and the

mechanics of how to transmit such report. Because

the Amendment did not substantively change the

proposal, the Commission did not publish it for

comment. See letter from Joan C. Conley, Secretary,

NASD, to Mark Barracca, Attorney, SEC, dated

January 11, 1995.

2 15 U.S.C. 78s(b)(1) (1988).

3 17 CFR 240.19b–4 (1991).

4 ‘‘Short’’ positions to be reported are those

resulting from ‘‘short’’ sales as defined in SEC Rule

3b–3, but excludes positions resulting from sales

specified in clauses (1), (6), (7), (8), (9) and (10) of

paragraph (e) of SEC Rule 10a–1. Also to be

excluded are ‘‘short’’ positions carried for other

members and member organizations reporting for

themselves.

MMI programs because MMIs are

processed differently as discussed more

fully below.

DTC sweeps maturing MMIs from the

accounts of ‘‘presenting participants’’

and initiates book-entry deliveries

versus payment to paying agents’

accounts on maturity date for inclusion

in that day’s same-day settlement

system net settlement. Paying agents can

refuse to accept maturity presentments

of an issuer’s MMIs so long as the

paying agents notify DTC of their

intention by 3:00 p.m. Eastern Standard

Time on the day the MMI matures. If a

paying agent refuses to accept maturity

presentments, DTC will communicate

this to all DTC participants and will

reverse the maturity presentments by

recrediting the participants’ accounts

with the maturing MMI, thus offsetting

settlement credits in those accounts.

DTC also will unwind any other

maturity presentments, valued issuance,

periodic income payments (e.g., interest

or dividend), principal presentments,

and reorganization presentments that it

may have processed earlier that day in

the same and other MMIs of a

‘‘defaulting issuer.’’

DTC believes that the proposed rule

change is consistent with the

requirements of Section 17A of the Act

and the rules and regulations

thereunder applicable to DTC because

the proposal will improve the timeliness

of dividend and redemption payments

to DTC participants and will improve

the processing and recordkeeping in the

Dividends and Reorganization

Departments of DTC and its

participants. The proposed rule change

also will improve the procedures for

safeguarding funds in DTC’s custody or

control of for which it is responsible.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

DTC does not believe that the

proposed rule change will impose any

burden on competition not necessary or

appropriate in furtherance of the

purposes of the Act.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants or Others

Written comments from DTC

participants or others have not been

solicited or received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregone rule change has become

effective pursuant to Section

19(b)(3)(A)(i) 4 of the Act and Rule 19b4(e)(1)5 promulgated thereunder

because it constitutes a state policy,

practice, or interpretation with respect

to the meaning, administration, or

enforcement of DTC’s existing

procedures for the payment of

dividends, interest, and redemption

proceeds. At any time within sixty days

of the filing of this proposed rule

change, the Commission summarily may

abrogate the rule change if it appears to

the Commission that such action is

necessary or appropriate in the public

interests, for the protection of investors,

or otherwise in furtherance of the

proposed of the Act.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing.

Persons making written submission

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

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, N.W.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection at DTC. All submissions

should refer to File No. SR–DTC–95–03

and should be submitted by April 13,

1995.

For the Commission by the Division of

Market Regulation, pursuant to the delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–6214 Filed 3–13–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35450; File Nos. SR–NYSE–

94–39; SR–Phlx–94–29; SR–PSE–94–34;

SR–BSE–94–15; SR–CHX–94–28; SR–

NASD–94–67; SR–CBOE–94–55]

Self-Regulatory Organizations; New

York Stock Exchange, Inc.,

Philadelphia Stock Exchange, Inc.,

Pacific Stock Exchange, Inc., Boston

Stock Exchange, Inc., Chicago Stock

Exchange, Inc., National Association of

Securities Dealers, Inc., and Chicago

Board Options Exchange;

Supplemental Order Regarding

Recently Adopted Rules for Short

Position Reporting

March 7, 1995.

I. Background

The New York Stock Exchange, Inc.

(‘‘NYSE’’), on October 27, 1994, the

Philadelphia Stock Exchange, Inc.,

(‘‘Phlx’’), on October 20, 1994, the

Pacific Stock Exchange, Inc. (‘‘PSE’’), on

November 23, 1994, the Boston Stock

Exchange, Inc. (‘‘BSE’’), on November

28, 1994, the Chicago Stock Exchange,

Inc. (‘‘CHX’’), on December 12, 1994, the

National Association of Securities

Dealers, Inc. (‘‘NASD’‘), on December 2,

19941 and the Chicago Board Options

Exchange (‘‘CBOE’’), on January 3, 1995,

(collectively, ‘‘self-regulatory

organizations’’ or ‘‘SROs’’) submitted to

the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’),

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

Securities Exchange Act of 1934

(‘‘Act’’)2 and Rule 19b–4 thereunder,3

proposed rule changes to facilitate

uniform short position reporting

requirements.4

The proposed rule change filed by the

CBOE was published for comment in

Securities Exchange Act Release No.

35227 (January 13, 1995), 60 FR 4208

(January 20, 1995). In addition, all of the

other proposed rule changes were

published for comment in Securities

Exchange Act Release No. 35147

(December 23, 1994), 60 FR 518 (January

4, 1995). No comments were received on