17600 Federal Register / Vol. 60, No. 66 / Thursday, April 6, 1995 / Notices

12 17 CFR 200.30–3(a)(12) (1994).

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

2Securities Exchange Act Release No. 35265

(January 23, 1995), 60 FR 6583.

3Securities Exchange Act Release Nos. 33023

(October 6, 1993), 58 FR 52891 (adoption of Rule

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

59137 (changing effective date from June 1, 1995,

to June 7, 1995).

4The transition from T+5 settlement to T+3

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.

5 15 U.S.C. 79q–1 (1988).

6 15 U.S.C. 78q–1(b)(3)(F) (1988).

7 15 U.S.C. 78f (1988).

8 15 U.S.C. 78s(b)(2) (1988).

9 17 CFR 200.30(a)(12) (1994).

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–8493 Filed 4–5–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35552; File No. SR–OCC–

94–11]

Self-Regulatory Organizations; The

Options Clearing Corporation; Order

Approving Proposed Rule Change

Relating to Implementation of a ThreeDay Settlement Standard

March 30, 1995.

On December 30, 1994, the Options

Clearing Corporation (‘‘OCC’’) filed a

proposed rule change (File No. SR–

OCC–94–11) with the Securities and

Exchange Commission (‘‘Commission’’)

pursuant to Section 19(b) of the

Securities Exchange Act of 1934

(‘‘Act’’).1 Notice of the proposal was

published in the Federal Register on

February 2, 1995, to solicit comments

from interested persons.2 As discussed

below, this order approves the proposed

rule change.

I. Description

The proposed rule change will

conform OCC’s rules effective June 7,

1995, to Rule 15c6–1 under the Act.

That rule establishes three business

days after the trade date (‘‘T+3’’),

instead of five business days (‘‘T+5’’), as

the standard settlement cycle for most

transactions in securities that underlie

many OCC issued options. Rule 15c6–1

will become effective June 7, 1995.3 As

described below, OCC is revising several

of OCC’s rules that include references to

underlying securities settlement time

frames.

Under Rule 902, the assigned clearing

member of an exercised call option

contract or the exercising clearing

member of an exercised put option

contract will be required to deliver the

underlying securities on the third

business day following the day on

which the exercise notice was given to

OCC. Rule 2207 will provide that the

settlement date for a stock loan will be

three business days after the date on

which the lending clearing member

initiates the termination by notifying

OCC. Rule 2208(b) will provide that if

the lending clearing member initiates

the termination of a stock loan and does

not receive the loaned stock in its

securities depository account within

three business days, the stock loan shall

be completed when (1) OCC has

transferred the stock to the lending

clearing member’s account after OCC

has received the securities from the

borrowing member or (2) the lending

clearing member has executed a buy-in.

Rule 2208(b) also will provide that the

lending clearing member may execute a

buy-in three business days after

initiating the termination or at any time

thereafter if the lending clearing

member has not received the loaned

stock by such date.

OCC has requested that the proposed

rule change become effective on the

same date as Rule 15c6–1. Rule 15c6–

1 is scheduled to become effective on

June 7, 1995.4

II. Discussion

The Commission believes the

proposal is consistent with the

requirements of Section 17A of the Act.5

Specifically, Section 17A(b)(3)(F) 6

states that the rules of a clearing agency

must be designed to promote the prompt

and accurate clearance and settlement of

securities transactions, to assure the

safeguarding of securities and funds

which are in OCC’s custody and control

or for which OCC is responsible, and to

foster cooperation and coordination

with persons engaged in clearance and

settlement of securities transactions.

Several of OCC rules are based on a five

day time frame for settlement of

securities transactions. On June 7, 1995,

the new settlement cycle or T+3 will be

established, as mandated by the

Commission’s Rule 15c6–1. As a result,

the OCC’s current rule establishing a

T+5 settlement cycle will be

inconsistent with Commission rules.

This proposal will amend the OCC’s

rules to harmonize them with a T+3

settlement cycle. Further, as discussed

in the release adopting Rule 15c6–1, a

shorter settlement time frame could

encourage greater efficiency in clearing

agencies and broker-dealer operations.

Thus, the proposed rule change should

enhance the prompt and accurate

clearance and settlement of securities

transactions.

III. Conclusion

For the reasons stated above, the

Commission finds that OCC’s proposal

is consistent with Section 17A of the

Act.7

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,8 that the

proposed rule change (File No. SR–

OCC–94–11) 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.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–8421 Filed 4–5–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. IC–20979; 812–9444]

Van Kampen Merritt Equity

Opportunity Trust, Series, 7, et al.;

Notice of Application

March, 30, 1995.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of Application for

Exemption under the Investment

Company Act of 1940 (the ‘‘Act’’).

APPLICANTS: Van Kampen Merritt Equity

Opportunity Trust, Series 7 and Van

Kampen American Capital Distributors,

Inc. (‘‘Van Kampen American’’).

RELEVANT ACT SECTIONS: Order requested

under sections 6(c) and 17(b) from

section 17(a).

SUMMARY OF APPLICATION: Applicants

request an order to permit a terminating

series of a unit investment trust to sell

portfolio securities to a new series of the

trust.

FILING DATES: The application was filed

on January 25, 1995 and amended on

March 22, 1995.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the SEC orders a hearing.

Interested persons may request a

hearing by writing to the SEC’s

Secretary and serving applicants with a

copy of the request, personally or by

mail. Hearing requests should be

received by the SEC by 5:30 p.m. on

April 24, 1995 and should be

accompanied by proof of service on

applicants, in the form of an affidavit or,

for lawyers, a certificate of service.

Hearing requests should state the nature