Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Notices 18865

4 17 CFR 200.30–3(a)(12) (1994).

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

2For the purposes of this rule proposal, NYSE is

using the term ‘‘side’’ to mean a purchase or a sale

that consists of two or more separate transactions

made with the same firm, in the same security, at

the same price, on the same side of the market, and

which have been added together and submitted for

comparison as one item. NYSE refers to this process

as summarization.

3For background on NYSE’s trade date

comparison procedure, refer to Securities Exchange

Act Release No. 34153 (June 3, 1994), 59 FR 30071

[File No. SR–NYSE–94–08] (order approving

proposed rule change).

4For the purpose of this rule proposal, the term

‘‘qualified clearing agency’’ means a clearing agency

that: (1) is registered under the Act, (2) maintains

facilities through which NYSE’s trades may be

compared or settled, (3) has agreed to supply NYSE

with data in connection with NYSE’s compliance

duties under the Act, and (4) has agreed to establish

rules and procedures to facilitate the comparison of

transactions as provided in NYSE Rule 130 (i.e.,

NYSE’s principal rule governing trade comparison).

NYSE Rule 130, Supplementary Material .10 and

NYSE Rule 132, Supplementary Material .10.

5 15 U.S.C. 78q–1(f)(b)(4) (1988).

6 15 U.S.C. 78s(b)(3)(A)(ii) (1988).

7 17 CFR 204.19b–4(e)(4) (1994).

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of the

submissions, all subsequent

amendments, all written statements

with respect to the proposed rule

changes that are filed with the

Commission, and all written

communications relating to the

proposed rule changes 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 and at the principal offices of

MCC and MSTC. All submissions

should refer to File Nos. SR–MCC–95–

01 and SR–MSTC 95–04 and should be

submitted by May 4, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.4

Jonathan G. Katz,

Secretary.

[FR Doc. 95–9079 Filed 4–12–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35568; File No. SR–NYSE–

95–03]

Self-Regulatory Organizations; New

York Stock Exchange, Inc.; Notice of

Filing and Immediate Effectiveness of

a Proposed Rule Change Relating to

Fees for the Initial Comparison of

Equity Security Trade Sides Submitted

for Comparison Through the On-Line

Comparison System

April 5, 1995.

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

Securities Exchange Act of 1934

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

February 21, 1995, the New York Stock

Exchange, Inc. (‘‘NYSE’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–NYSE–95–03) as

described in Items I, II, and III below,

which Items have been prepared

primarily by NYSE. 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 rule change modifies NYSE’s fee

structure for trade comparison.

Commencing on or about March 1, 1995,

NYSE will charge participants for the

comparison of each side of a trade in an

equity security 2 submitted to it on the

day of the trade (‘‘initial trade data’’)

through its On-Line Comparison System

(‘‘OCS’’). NYSE has not previously

charged for this service.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

NYSE 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. NYSE 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

On August 15, 1994, NYSE began

requiring its clearing members to submit

listed equity comparison data to NYSE’s

OCS within two hours of the time of a

trade’s execution or at two-hour

intervals (e.g., 12:00 noon, 2:00 p.m.,

4:00 p.m., and 6:00 p.m.) on each

business day.3 Under this procedure, by

the end of each trading day NYSE

forwards the day’s initial trade data,

which consists of both compared and

uncompared trades, to a qualified

clearing agency for final processing.4

From August 1994 to date, NYSE has

provided these OCS services to its

clearing members without charge. NYSE

states, however, that its costs for

providing these services have been

rising due to increased usage and that it

now proposes to recoup some of these

additional costs by charging a

processing fee based on the number of

shares per sides. While the NYSE will

continue charging no fee for sides from

one share to 999 shares, the fee for each

side from 1,000 shares to 2,999 shares

will be $0.06, and the fee for each side

for 3,000 shares to any higher amount

will be $0.18. As noted, the NYSE will

commence charging this new fee on or

about March 1, 1995.

NYSE believes the rule change

provides for the equitable allocation of

fees among its members. Therefore,

NYSE believes the rule change is

consistent with the requirements of the

Act and particularly with Section 6(b)(4)

of the Act.5

B. Self-Regulatory Organization’s

Statement on Burden on Competition

NYSE believes that the proposed rule

changes will not impose any burden on

competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants, or Others

NYSE has neither solicited nor

received any written comments on the

proposed rule change.

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)(ii) of the Act 6 and

subparagraph (e)(2) of Rule 19b–4

thereunder because it establishes a due,

fee, or other charge imposed by NYSE.7

At any time within sixty days of the

filing of such rule change, the

Commission may summarily abrogate

such rule change if it appears to the

Commission that such action is

necessary or appropriate in the public

interest, for the protection of investors,

or otherwise in furtherance of the

purposes of the Act.

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
18866 Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Notices

8 17 CFR 200.30–3(a)(12) (1994).

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

2PTC Rules, Article III, Rule 2, Section 1,

‘‘Principal and Interest Payments.’’ For a complete

description of PTC’s amendments, refer to

Securities Exchange Act Release Nos. 33132

(November 9, 1993), 58 FR 59501 [File No. SR–

PTC–93–02] (order approving proposed rule

change) and 33856 (April 12, 1994), 59 FR 59501

[File No. SR–PTC–93–05] (order approving

proposed rule change).

3 In November 1994, the intraday distribution

program was extended to permit early distribution

of one hundred percent of collected and available

GNMA II P&I. Securities Exchange Act Release No.

34988 (November 18, 1994), 59 FR 61016 [File No.

SR–PTC–94–05] (order approving proposed rule

change).

4PTC disbursed a total of $103.9 billion in GNMA

I P&I payments to its participants in 1994, of which

$51.1 billion was distributed intraday. As of

February 1, 1995, fifty participants elected to

receive the intraday distribution.

5 During 1994, an average of 72.5% of funds to be

distributed were available by 12 noon on the

distribution date.

6 15 U.S.C. 78q–1(b)(3)(F) (1988).

proposed rule change 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 will also be

available for inspection and copying at

the principal office of NYSE. All

submissions should refer to File No.

SR–NYSE–95–03 and should be

submitted by May 4, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Jonathan G. Katz,

Secretary.

[FR Doc. 95–9078 Filed 4–12–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35574; File No. SR–PTC–

95–02]

Self-Regulatory Organizations;

Participants Trust Company; Notice of

Filing and Order Granting Accelerated

Approval of Proposed Rule Change

Modifying PTC’s Program for the Early

Distribution of Principal and Interest

on Government National Mortgage

Association I Securities

April 6, 1995.

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

Securities Exchange Act of 1934

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

March 7, 1995, the Participants Trust

Company (‘‘PTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–PTC–95–02) as

described in Items I and II below, which

Items have been prepared primarily by

PTC. The Commission is publishing this

notice and order to solicit comments on

the proposed rule change 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 proposed rule change modifies

PTC’s program for the early distribution

of principal and interest (‘‘P&I’’) on

Government National Mortgage

Association (‘‘GNMA’’) I securities.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, PTC

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. PTC 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 the

Statutory Basis for, the Proposed Rule

Change

Background

Before November 1993, PTC’s rules

and procedures provided that PTC

disburse P&I by means of a credit to

participants’ cash balances. This

resulted in participants receiving at the

end of the day as part of the settlement

process the amount of the P&I net of any

account debits and/or credits. In

November 1993, PTC’s rules were

amended to eliminate the requirement

that P&I be disbursed by means of a

credit to participants’ cash balances and

to permit PTC to make intraday Fedwire

distributions of collected and available

GNMA I P&I.2

PTC’s present program for the early

distribution of GNMA I P&I permits the

distribution of up to fifty percent of

collected and available P&I on GNMA I

securities by intraday Fedwire transfer

of funds on the distribution date,

generally the sixteenth day of the

month, with the balance distributed by

credit to participant’s cash balances

payable at the end of the day

settlement.3 Participants are permitted

to elect to receive the intraday

distribution or they may choose to

receive the entire distribution at the end

of the day settlement.4

Unlike the GNMA II program, there is

no central paying agent for GNMA I

securities and issuers make payment to

PTC directly, sometimes by means of a

check. Because of these inefficiencies in

collecting and disbursing GNMA I P&I,

PTC funds the total GNMA I P&I

disbursement from several sources: (1)

collected and available P&I payments

that are timely received; (2) PTC’s own

funds; (3) the cash portion of the

participants fund; and (4) borrowed

funds secured by the P&I receivables or

the securities portion of the participants

fund.

GNMA I P&I Proposal

PTC proposes to increase the

percentage of collected and available

GNMA I P&I that may be distributed

intraday, from the current maximum of

fifty percent to a maximum of sixty-five

percent of the total distribution,

commencing with the April 1995

GNMA I distribution. PTC believes that

based on PTC’s experience with the

GNMA I collection process, an amount

in excess of sixty-five percent may

reasonably be anticipated to be available

by noon on the distribution date for

disbursement intraday.5 The balance

would be distributed by means of a

credit to the participants’ credit

balances payable at the end of the day

settlement, as is currently the practice.

In the event the amount of collected and

available funds is insufficient to make

the scheduled intraday distribution

amount, whether it be the current fifty

percent maximum or the proposed

sixty-five percent maximum, the

shortfall is allocated ratably among

participants scheduled to receive

intraday distribution according to the

relative amounts of their scheduled

distributions.

PTC believes that the proposed rule

change is consistent with Section

17A(b)(3)(F) of the Act 6 and the rules

and regulations thereunder in that it

facilitates the prompt and accurate

clearance and settlement of securities

transactions and provides for the

safeguarding of securities and funds in

PTC’s custody or control or for which

PTC is responsible.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

PTC does not believe that the

proposed rule change will impose any

burden on competition not necessary or