Document ID: SEC-2012-0348-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Pacific Securities Depository Trust Co.
Posted Date: 2012-03-02T05:00Z

[Federal Register Volume 77, Number 42 (Friday, March 2, 2012)]
[Notices]
[Pages 12897-12898]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-5056]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66460; File No. 600-10]

Self-Regulatory Organizations; Pacific Securities Depository 
Trust Company; Order Cancelling Clearing Agency Registration

February 24, 2012.

I. Background

    On December 1, 1975, pursuant to Sections 17A(b) and 19(a)(1) of 
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 17Ab2-1 
thereunder,\2\ the Securities and Exchange Commission (``Commission'') 
approved on a temporary basis the application for registration as a 
clearing agency filed by the Pacific Securities Depository Trust 
Company (``PSDTC'').\3\ By subsequent orders, the Commission extended 
PSDTC's temporary registration.\4\ On September 23, 1983, pursuant to 
Section 17A and Rule 17Ab2-1 thereunder,\5\ the Commission approved on 
a permanent basis PSDTC's registration as a clearing agency.\6\
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    \1\ 15 U.S.C. 78q-1(b) and 78s(a)(1).
    \2\ 17 CFR 240.17Ab2-1.
    \3\ Release No. 34-11875 (Nov. 26, 1975), 40 FR 55910 (Dec. 2, 
1975).
    \4\ Release Nos. 34-13584 (June 1, 1977), 42 FR 30066 (Jun. 10, 
1977); 34-13911 (Aug. 31, 1977), 1977 WL 190688; 34-14531, 43 FR 
10288 (Mar. 10, 1978); and 34-18584 (Mar. 22, 1982), 47 FR 13266 
(Mar. 29, 1982).
    \5\ 15 U.S.C. 78q-1 and 17 CFR 240.17Ab2-1.
    \6\ Release No. 34-20221, 48 FR 45167 (Oct. 3, 1983).
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    PSDTC was a wholly owned subsidiary of the Pacific Exchange, Inc. 
(``PCX'') \7\ (now NYSE Arca, Inc. [``NYSE Arca'']).\8\ Prior to the 
transaction described below, PSDTC offered various clearance and 
settlement services such as trade recording for Pacific Stock Exchange-
listed and over-the-counter securities transactions, trade comparison, 
continuous net settlement, and book-entry depository services.\9\
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    \7\ Letter from Kathryn L. Beck, Senior Vice President, General 
Counsel and Corporate Secretary, Pacific Stock Exchange, to Jerry W. 
Carpenter, Assistant Director, Division of Market Regulation, 
Commission (April 11, 2005) (``April 2005 Letter'').
    \8\ PCXE and PCC had previously been wholly owned subsidiaries 
of Archipelago Holdings, Inc. Following the merger of New York Stock 
Exchange, Inc. with Archipelago Holdings, Inc., on March 6, 2006, 
the PCX filed a rule proposal with the Securities and Exchange 
Commission, which was effective upon filing, that amended its rules 
to reflect these name changes: From PCX to NYSE Arca; from PCX 
Equities, Inc. to NYSE Arca Equities, Inc.; from PCX Holdings, Inc., 
to NYSE Arca Holdings, Inc.; and from the Archipelago Exchange, 
L.L.C. to NYSE Arca, L.L.C. Release No. 34-53615, 71 FR 19226 (Apr. 
13, 2006). For ease of reference NYSE Arca is generally referred to 
by its former name, PCX, in this order.
    \9\ Release No. 34-20221, supra note 6.
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II. Cancellation of PSDTC's Registration as a Clearing Agency

    In the April 2005 Letter, PCX notified the Commission that PSDTC 
had been dissolved.\10\ PCX represented PCX had diligently identified 
and paid all PSDTC claims and liabilities including completing the 
outstanding PSDTC transaction balances and making final monetary 
distributions to the proper parties or if the proper parties were not 
identified remitted to the State of California in accordance with state 
escheatment regulations.\11\
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    \10\ April 2005 Letter. PSDTC was incorporated in California on 
September 5, 1974, and was dissolved on October 19, 1992. 
LexisNexis, Public Records, Corporate Filings search (http://www.lexis.com). PCX stated that PSDTC voluntarily surrendered its 
license with the California State Banking Department. April 2005 
Letter.
    \11\ April 2005 Letter.
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    In connection with the dissolution of PSDTC, PCX represented that 
pursuant to Rule 17a-1 \12\ PCX would retain at least one copy of all 
documents, including all correspondence, memoranda, papers, books, 
notices, accounts, and other such PSDTC records in PCX's possession for 
at least 5 years from the date of termination of PSDTC's registration 
as a clearing agency.\13\
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    \12\ 17 CFR 240.17a-1.
    \13\ April 2005 Letter. In addition, NYSE Euronext represented 
to the Commission that as of August 26, 2011, it had not received 
any requests over the last two years for documents relating to PSDTC 
and that no claims relating to the operations of PSDTC had been 
made. Email from Janet McGinness, Senior Vice President, Legal and 
Corporate Secretary, NYSE Euronext, to David Karasik, Division of 
Trading and Markets, Commission (Aug. 26, 2011).
    As a result of the business combination of NYSE Group, Inc. and 
Euronext N.V., the businesses of NYSE Group, including that of the 
NYSE LLC and NYSE Arca, and Euronext are now held under a single, 
publicly traded holding company named NYSE Euronext. Release Nos. 
34-55293 (Feb. 14, 2007), 72 FR 8033 (Feb. 22, 2007) and 34-55026 
(Dec. 29, 2006), 72 FR 814 (Jan. 8, 2007).

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[[Page 12898]]

    Section 19(a)(3) of the Act \14\ provides that in the event any 
self-regulatory organization is no longer in existence or has ceased to 
do business in the capacity specified in its application for 
registration, ``the Commission, by order, shall cancel its 
registration.''
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    \14\ 15 U.S.C. 78s(a)(3).
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    Based upon the representations and undertakings made by PCX to the 
Commission and because PSDTC is no longer in existence and has ceased 
to do business in the capacity specified in its registration 
application, the Commission is canceling its registration effective 
February 24, 2012.
    It is therefore ordered that:
    Effective February 24, 2012, based on the facts and representations 
noted above, PSDTC's registration as a clearing agency under Section 
17A of the Exchange Act and Rule 17Ab2-1 thereunder is cancelled.

    By the Commission.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-5056 Filed 3-1-12; 8:45 am]
BILLING CODE 8011-01-P