Self-Regulatory Organization; The Depository Trust Company; Notice of Filing of Proposed Rule Change Relating To the Implementation of the Standing Instruction Database Feature of the Enhanced Institutional Delivery System

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-33679; File No. SR-DTC-94-01]

Self-Regulatory Organization; The Depository Trust Company;

Notice of Filing of Proposed Rule Change Relating To the Implementation

of the Standing Instruction Database Feature of the Enhanced

Institutional Delivery System

February 24, 1994.

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

1934,\1\ notice is hereby given that on January 31, 1994, The

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

Exchange Commission (``Commission'') the proposed rule change 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 procedures for the Standing

Instructions Database (``SID'') feature of DTC's enhanced Institutional

Delivery (``ID'') system.\2\

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\2\The enhanced ID system concept was approved in an earlier

Commission order. The order specified that each individual feature

of the enhanced ID system would be the subject of a separate filing

under Section 19(b)(1). Securities Exchange Act Release No. 33466

(January 12, 1994), 59 FR 3139 [File No. SR-DTC-93-07] (order

approving concept of enhanced ID system).

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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, 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

SID is a central repository for customer account and settlement

information furnished by institutions, agents, and broker-dealers. The

information includes items such as the agent for an institutional

customer, the agent's internal account number for the institutional

customer, and interested parties. A broker-dealer can link its internal

account numbers for its institutional customers to the internal account

numbers at the institutions. When entering trade data into the ID

system, a broker-dealer can simply refer to its internal account number

in SID, and the ID system will extract the necessary information from

SID (such as customer name, agent, interested parties, and settlement

related information) and automatically will add the information to the

confirmation. SID will eliminate the need for the broker-dealer to

provide all such information each time that the broker-dealer enters

trade data into the ID system.

SID is an optional feature for ID users. However, once a broker-

dealer links its internal customer account number with account

information furnished to SID by the institutional customer, data in SID

will be used for certain fields in ID system processing, regardless of

whether the broker-dealer submits data for those fields, when the

broker-dealer submits trade data for that institutional customer's

trades.

The proposed rule change is consistent with the requirements of

Section 17A of the Act and the rules and regulations thereunder because

the proposed rule change will further automate the process by which

securities transactions are cleared and settled.

(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

SID has been developed through widespread consultations with

securities industry members. Written comments from DTC participants or

others have not been solicited or received on the proposed rule change.

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 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 Section, 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-94-01 and should be submitted by March

25, 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) (1992).

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Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 94-4998 Filed 3-3-94; 8:45 am]

BILLING CODE 8010-01-M