# Self-Regulatory Organizations; The Deposit Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding the Foreign Currency Redemption Service > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-3479 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** February 15, 1994 ## Text 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. --------------------------------------------------------------------------- \1\15 U.S.C. 78s(b)(1) (1988). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \2\15 U.S.C. 78q-1 (1988). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \3\15 U.S.C. 78s(b)(3)(A) (1988). \4\17 CFR 240.19b-4(e)(4) (1993). --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \5\17 CFR 200.30-3(a)(12) (1993). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 94-3479 Filed 2-14-94; 8:45 am] BILLING CODE 8010-01-M --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-3479. Public record. Not legal advice.