Self-Regulatory Organizations; The Deposit Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding the Foreign Currency Redemption Service

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-33597; File No. SR-DTC-93-10]

Self-Regulatory Organizations; The Deposit Trust Company; Notice

of Filing and Immediate Effectiveness of Proposed Rule Change Regarding

the Foreign Currency Redemption Service

February 8, 1994.

Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934

(``Act''),\1\ notice is hereby given that on October 12, 1993, The

Depository Trust Company (``DTC'') filed with the Securities Exchange

Commission (``Commission'') the proposed rule change (File No. SR-DTC-

93-10) as described in Items I, II, and III below, which items have

been prepared primarily by the self-regulatory organization. The

Commission is publishing this notice to solicit comments on the

proposed rule change from interested persons.

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

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I. Self-Regulatory Organization's Statement of the Terms of Substance

of the Proposed Rule Change

The proposed rule change consists of enhancements to DTC's foreign

currency payment service to provide for a foreign currency redemption

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, 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

DTC's current foreign currency payment service enables participants

to elect to receive periodic interest payments on certain foreign

currency denominated issues either through DTC in U.S. dollars or

directly from the paying agent in the currency in which the issue is

denominated. The purpose of the proposed rule change is to enable

participants to make the same election for maturity or redemption

payments on those foreign currency denominated issues for which the

foreign currency redemption service is made available with the

agreement of the paying agent.

When a participant wishes to receive maturity or redemption

proceeds in foreign currency on all or part of its position in a

foreign currency denominated issue, the participant will utilize DTC's

Participant Terminal System to submit instructions to DTC (including an

instruction on where to wire the foreign currency proceeds). DTC will

forward the instructions to the paying agent. DTC will pay the

appropriate amount of U.S. currency proceeds to the participant, and

the paying agent will pay the appropriate amount of foreign currency

proceeds directly to the participant or its customer. A participant

that wishes to be paid the maturity or redemption proceeds on its

entire position in U.S. currency will not have to take any action.

The proposed rule change is consistent with the requirements of the

Act, particularly section 17A of the Act,\2\ and the rules and

regulations thereunder applicable to DTC because the proposed rule

change will encourage the immobilization of foreign currency

denominated issues in DTC. The proposed rule change will be implemented

consistently with the safeguarding of securities and funds in DTC's

custody or control or for which it is responsible because the proposed

rule change will enhance DTC's existing services for foreign currency

denominated issues.

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\2\15 U.S.C. 78q-1 (1988).

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B. Self-Regulatory Organization's Statement on Burden on Competition

DTC perceives no impact on competition by reason of the proposed

rule change.

C. Self-Regulatory Organization's Statement on Comments on the Proposed

Rule Change Received from Members, Participants or Others

DTC 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) of the Act\3\ and subparagraph (e)(4) of Securities

Exchange Act Rule 19b-4\4\ because the proposed rule change effects

changes in existing services of DTC that (i) do not adversely affect

the safeguarding of securities or funds in the custody or control of

DTC or for which it is responsible and (ii) do not significantly affect

the respective rights or obligations of DTC or persons using the

services.

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

\4\17 CFR 240.19b-4(e)(4) (1993).

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At any time within sixty days of the filing of such proposed 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, NW., Washington, DC 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 Room, 450 Fifth Street, NW., Washington,

DC 20549. Copies of such filing will also be available for inspection

and copying at the principal office of DTC. All submissions should

refer to File No. SR-DTC-93-10 and should be submitted by March 8,

1994.

For the Commission by the Division of Market Regulation,

pursuant to delegated authority.\5\

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\5\17 CFR 200.30-3(a)(12) (1993).

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Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 94-3479 Filed 2-14-94; 8:45 am]

BILLING CODE 8010-01-M