Think about what is trying to be accomplished. An in-stream PROC is a way to prepare an real PROC, either for JCLLIB or for a system PROCLIB. JES2 does not have access to these procedures. OK, in a sense that statement is not true, since the converter, running in the JES2 address space does access them, but JES2 does not really know very much about this (though it does save the save the internal text created from the JCL). Since JES2 does not see in-stream data from a PROCLIB or JCLLIB procedure, why should it allow in-stream data in an in-stream PROC?