Self-Regulatory Organization; Midwest Securities Trust Company; Notice of Filing of Proposed Rule Change To Rescind Signature Distribution and Signature Guarantee Programs

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-33669; File No. SR-MSTC-93-13]

Self-Regulatory Organization; Midwest Securities Trust Company;

Notice of Filing of Proposed Rule Change To Rescind Signature

Distribution and Signature Guarantee Programs

February 23, 1994.

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

(``Act''),\1\ notice is hereby given that on December 15, 1993, the

Midwest Securities Trust Company (``MSTC'') filed with the Securities

Exchange Commission (``Commission'') the proposed rule change as

described in Items I, II, and III below, which Items have been prepared

mainly by MSTC, a 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 rescinds MSTC's Signature Distribution and

Signature Guarantee Programs which have been rendered obsolete by

Securities Exchange Act Rule 17Ad-15.\2\

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\2\17 CFR 240.17Ad-15 (1993).

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II. Self-Regulatory Organization's Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, MSTC 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. MSTC 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 January 6, 1992, the Commission promulgated rule 17Ad-15 which

permits transfer agents to reject signature guarantees from eligible

guarantor institutions that are not part of a signature guarantee

program as defined in Rule 17Ad-15. This new rule render's MSTC's

Signature Distribution Program and Signature Guarantee Program

obsolete. Therefore, to avoid costs that produce not benefits, MSTC

seeks to eliminate its Signature Distribution and Signature Guarantee

Programs and to delete MSTC Rule 5, Sections 1 and 2 which govern these

programs.

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

MSTC believes that the proposed rule change will not impose any

burden on competition that is not necessary or appropriate in

furtherance of the purposes of the Act.

(C) Self-Regulatory Organization's Statement of Comments on the

Proposed Rule Change Received From Members, Participants or Others

MSTC has not solicited or received any comments.

III. Date of Effectiveness of the Proposed Rule Change and Timing

for Commission Action

Within thirty-five days of the date of publication of this notice

in the Federal Register or within such longer period: (i) As the

Commission may designate up to ninety days of such date if it finds

such longer period to be appropriate and publishes its reasons for so

finding or (ii) as to which the self-regulatory organization consents,

the Commission will:

(A) By order approve such proposed rule change or,

(B) Institute proceedings to determine whether the proposed rule

change should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and

arguments concerning the foregoing. Persons making written submission

should file six copies thereof with the 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 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 Section and at the principal office of

the MSTC. All submissions should refer to File No. SR-MSTC-93-13 and

should be submitted by March 24, 1994.

For the Commission, by the Division of Market Regulation,

pursuant to delegated authority.\3\

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

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Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 94-4867 Filed 3-2-94; 8:45 am]

BILLING CODE 8010-01-M