18648 Federal Register / Vol. 60, No. 70 / Wednesday, April 12, 1995 / Notices

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

2 Securities Exchange Act Release No. 35285

(January 27, 1995), 60 FR 6579.

3 On September 24, 1991, the Commission

approved a proposed rule change on a temporary

basis that provided authority for GSCC to

implement the yield-to-price conversion service.

Securities Exchange Act Release No. 29732

(September 24, 1991), 56 FR 49937. The

Commission permanently approved GSCC’s

conversion service on February 4, 1993. Securities

Exchange Act Release No. 31820 (February 4, 1993),

58 FR 8072.

CHANGES FROM CORPORATION FINANCE EDGAR PHASE-IN LIST AS PUBLISHED IN SECURITIES ACT RELEASE #33–7122

(DECEMBER 19, 1994)—Continued

Name CIK No. Former

group

New

group

ULTRATECH STEPPER INC .................................................................................................................... 909791 NONE .......... CF–10

UNAPIX ENTERTAINMENT INC .............................................................................................................. 902787 NONE .......... CF–10

UNIPHASE CORP /CA/ ............................................................................................................................. 912093 NONE .......... CF–10

UNIROYAL INVESTORS MANAGEMENT CO ......................................................................................... 890096 CF–10 ......... CF–10

Change to UNIROYAL TECHNOLOGY CORP ................................................................................. 890096 CF–10 ......... CF–10

UNITED FINANCIAL BANKING COMPANIES INC .................................................................................. 714286 CF–06 ......... CF–09

UNITED STATES PAGING CORP ............................................................................................................ 813239 NONE .......... CF–10

UNITED VANGUARD HOMES INC /DE ................................................................................................... 021221 NONE .......... CF–10

UNITED VIDEO SATELLITE GROUP INC ............................................................................................... 913061 NONE .......... CF–10

UNITED WASTE SYSTEMS INC .............................................................................................................. 879688 NONE .......... CF–10

US 1 INDUSTRIES INC ............................................................................................................................ 351498 NONE .......... CF–10

U S ALCOHOL TESTING OF AMERICA INC .......................................................................................... 853017 NONE .......... CF–10

UTI ENERGY CORP ................................................................................................................................. 912899 NONE .......... CF–10

VALLEY FINANCIAL CORP /VA/ .............................................................................................................. 921590 NONE .......... CF–10

VANDERBILT MORTGAGE & FINANCE INC .......................................................................................... 816512 NONE .......... CF–10

VARCO INTERNATIONAL INC ................................................................................................................. 102993 CF–05 ......... CF–04

VASTAR RESOURCES INC ..................................................................................................................... 918252 NONE .......... CF–10

VEECO INSTRUMENTS INC .................................................................................................................... 103145 NONE .......... CF–10

VENTRITEX INC ....................................................................................................................................... 793354 NONE .......... CF–10

VENTURE ENTERPRISES INC ................................................................................................................ 778165 CF–09 ......... CF–09

Change to HANOVER GOLD COMPANY INC .................................................................................. 778165 CF–09 ......... CF–09

VERDIX CORP .......................................................................................................................................... 722056 CF–06 ......... CF–09

Change to RATIONAL SOFTWARE CORP ....................................................................................... 722056 CF–06 ......... CF–09

VETERINARY CENTERS OF AMERICA INC .......................................................................................... 817366 NONE .......... CF–10

VICON INDUSTRIES INC /NY/ ................................................................................................................. 310056 CF–05 ......... CF–06

VIDEONICS INC ........................................................................................................................................ 932113 NONE .......... CF–10

VIDEOTELECOM CORP /DE/ ................................................................................................................... 884144 CF–10 ......... CF–10

Change to VTEL CORP ..................................................................................................................... 884144 CF–10 ......... CF–10

VISTA BANCORP INC .............................................................................................................................. 831979 NONE .......... CF–10

WALKER INTERNATIONAL INDUSTRIES INC ....................................................................................... 104224 CF–07 ......... CF–09

WALTER INDUSTRIES INC /NEW/ .......................................................................................................... 837173 NONE .......... CF–05

WASHINGTON HOMES INC .................................................................................................................... 104834 NONE .......... CF–10

WATSON PHARMACEUTICALS INC ....................................................................................................... 884629 NONE .......... CF–10

WEGENER CORP ..................................................................................................................................... 715073 CF–06 ......... CF–07

WELLFLEET COMMUNICATIONS INC .................................................................................................... 876516 CF–10 ......... CF–10

Change to BAY NETWORKS INC ..................................................................................................... 876516 CF–10 ......... CF–10

WHAT A WORLD INC /DE/ ....................................................................................................................... 931073 NONE .......... CF–10

WHITE RIVER CORP ............................................................................................................................... 913338 NONE .......... CF–10

WILLIAMS INDUSTRIES INC ................................................................................................................... 107294 CF–05 ......... CF–10

WILSHIRE TECHNOLOGIES INC ............................................................................................................ 891762 NONE .......... CF–10

WINSLOEW FURNITURE INC .................................................................................................................. 931814 NONE .......... CF–10

WINSTON HOTELS INC ........................................................................................................................... 920605 NONE .......... CF–10

WISCONSIN REAL ESTATE INVESTMENT TRUST ............................................................................... 107835 CF–05 ......... CF–09

WISCONSIN SOUTHERN GAS CO INC .................................................................................................. 107841 CF–06 ......... REMOVE

ZONAGEN INC .......................................................................................................................................... 897075 NONE .......... CF–10

Dated: April 6, 1995.

Margaret H. McFarlland,

Deputy Secretary.

[FR Doc. 95–8925 Filed 4–11–95; 8:45 am]

BILLING CODE 8010–01–P

[Release No. 34–35561; File No. SR-GSCC

94–8]

Self-Regulatory Organizations;

Government Securities Clearing

Corporation; Order Approving a

Proposed Rule Change Relating to

Mandatory Participation in the Yield-toPrice Conversion Process

April 3, 1995.

On November 8, 1994, pursuant to

section 19(b)(1) of the Securities

Exchange Act of 1934 (‘‘Act’’),1 the

Government Securities Clearing

Corporation (‘‘GSCC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) a proposed rule change

that will require GSCC netting members

to participate in GSCC’s yield-to-price

conversion process. On February 2,

1995, the Commission published notice

of the proposed rule change in the

Federal Register to solicit comment

from interested persons.2 No comments

were received. This order approves the

proposal.

I. Description

On October 16, 1992, GSCC

implemented its yield-to-price

conversion feature, which allows yield

trades to be netted and notated on the

night the trade is entered and eliminates

the need for double submission of

when-issued trades.3 At that time, in

order not to impose undue operational

or systems burdens on certain firms,
Federal Register / Vol. 60, No. 70 / Wednesday, April 12, 1995 / Notices 18649

4 15 U.S.C. 78q–1(b)(3)(F) (1988).

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

2 17 CFR 240.19b–4 (1994).

3Letter from Robert G. Britz, Senior Vice

President, New Listings & Client Service, NYSE, to

Sharon Lawson, Assistant Director, Division of

Market Regulation, SEC, dated January 27, 1995

(‘‘Amendment No. 1’’). Amendment No. 1 is further

described at note 11, infra. Letter from J. Paul

Wyciskala, Managing Director, Financial

Continued

participation in the conversion process

was not made mandatory.

The conversion service permits GSCC

to compare, convert, and net, prior to

the U.S. Treasury auction, trades

between members in Treasury note and

bond issues that have been executed on

the basis of the current market yield.

GSCC members submit to GSCC trade

data for yield trades with the price field

blank. GSCC compares the trade on the

basis of the yield. At the time of

conversion, GSCC calculates the

assumed coupon rate based on the par

weighted average yield of trades

compared by GSCC in each CUSIP

adjusted down to the nearest 1⁄8%.

GSCC then uses the assumed coupon

rate to convert yield trades to priced

trades based on the U.S. Treasury

standard conversion formula.

Each day until the coupon rate is set

and publicly available, GSCC

recalculates the assumed coupon rate

for the issue, converts new yield trades

to priced trades, and adjusts the prices

of previously converted, compared, and

netted yield trades. During the preauction period, GSCC calucates the

clearing fund contribution and the

forward mark allocation for

participating and nonparticipating

members. On the day of the auction,

final price data is submitted to GSCC. At

that time, the trades are compared and

netted on a final price basis.

GSC believes that participation in the

yield-to-price conversion process is

important for a netting member and for

the settlement process in general

because otherwise a netting member’s

when-issued trades do not have GSCC’s

guarantee of settlement until auction

date. Because of this, since October

1992, GSCC has not admitted an entity

into netting system membership unless

the applicant has agreed to participate

in the yield-to-price process at the time

of commencement of participation in

the netting system. Currently, only one

netting member still is not participating

in the conversion process, and it is

anticipated that it will commence

participation in the yield-to-price

process by the end of this year.

As a result, participation in the yieldto-price conversion process by netting

members will now be mandatory.

However, there may be temporary

situations, for example when an entity

commences its participation in the

netting system, in which there are

operational or other considerations that

render participation in the yield-to-price

conversion process difficult for a

member. In such circumstances, GSCC

will retain the ability to temporarily

exempt such member from the

requirement to participate in the yieldto-price conversion process. For GSCC’s

protection, however, GSCC will

calculate such member’s clearing fund

deposit and forward mark allocation

payment obligations as if it were

participating in the yield-to-price

conversion process.

II. Discussion

Section 17A(b)(3)(F) of the Act 4

provides that the rules of a clearing

agency must promote the prompt and

accurate clearance and settlement of

securities transactions and to assure the

safeguarding of securities and funds in

GSCC’s custody or under GSCC’s

control. In the first order temporarily

approving GSCC’s yield-to-price

conversion service, the Commission

found that such service was consistent

with Section 17A(b)(3)(F) in that it

extended the benefits of GSCC’s

centralized automated netting system to

netting members that execute yield

trades. The Commission further stated

that the service reduces netting

members’ exposure to the risk arising

from contraparty default prior to the

settlement of the transaction by

allowing GSCC to interpose itself

between the parties to a trade and

guarantee performance of each netting

member’s obligation sooner.

In the order permanently approving

GSCC’s yield-to-price conversion

service, the Commission noted its

potential concern about the interplay

between voluntary submission of

compared trades for GSCC netting and

the potential financial exposure to

GSCC and its members resulting from

the exclusion of those trades from

GSCC’s netting operation. The

Commission further encouraged GSCC

to reconsider the appropriateness for

netting members to withhold from the

netting operation yield trades that were

compared. GSCC delayed making the

netting of such trades mandatory

because some GSCC members needed to

make further operational changes to

accommodate mandatory netting of

trades compared through the yield-toprice conversion system. Currently, only

one member is not participating in the

conversion process, and GSCC

anticipates that such member will

commence participation in the yield-toprice process by the end of this year.

Accordingly, the Commission believes

that it is appropriate to make

participation in the yield-to-price

conversion process mandatory. By

including more trades in GSCC’s netting

system, the proposal furthers Section

17A’s goals of prompt and accurate

clearance of securities transactions.

Inclusion of more member trades within

GSCC’s guarantee and margin

requirements is consistent with Section

17A’s goals of assurance of the

safeguarding of securities and funds in

GSCC’s custody or under GSCC’s

control. Thus, the Commission believes

that the proposed rule change is

consistent with Section 17A(b)(3)(F).

Conclusion

For the reasons stated above, the

Commission finds that the proposed

rule change is consistent with Section

17A of the Act.

It is therefore ordered, pursuant to

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

proposed rule change (SR–GSCC–94–08)

be and hereby is approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–8924 Filed 4–11–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35571; File No. SR–NYSE–

95–01]

Self-Regulatory Organizations; New

York Stock Exchange, Inc.; Order

Approving Proposed Rule Change

Relating to Domestic Listing Standards

April 5, 1995.

I. Introduction

On January 18, 1995, the New York

Stock Exchange, Inc. (‘‘NYSE’’ or

‘‘Exchange’’) submitted to the Securities

and Exchange Commission (SEC’’ or

‘‘Commission’’), pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’) 1 and Rule 19b–4

thereunder,2 a proposed rule change to

amend its domestic listing standards.

The proposed rule change was

published for comment in Securities

Exchange Act Release No. 35301

(January 31, 1995), 60 FR 7245

(February 7, 1995). On February 2, and

April 5, 1995, the Exchange submitted

to the Commission Amendment Nos. 1

and 2 to the proposed rule change. Each

of these amendments made a single,

non-substantive change to clarify the

language of the original filing and are

incorporated into the discussion below.3