[Federal Register Volume 78, Number 128 (Wednesday, July 3, 2013)]
[Notices]
[Pages 40234-40235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-15930]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69866; File No. SR-DTC-2013-07]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Harmonize and Clarify Language Within the DTC Service Guides Regarding
Restrictions on Use of Information and Data Distributed by DTC
June 27, 2013
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 13, 2013, The Depository Trust Company (``DTC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change described in Items I, II and III below, which Items have been
prepared primarily by DTC. DTC filed the proposal pursuant to Section
19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(4)(i) \4\ thereunder so
that the proposal was effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested parties.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4)(i).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to harmonize and clarify
language within the DTC Service Guides regarding restrictions on use of
information and data distributed by DTC.
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 these
statements.\5\
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\5\ The Commission has modified the text of the summaries
prepared by DTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
(a) Proposal Overview
As the central depository of securities in the U.S. securities
markets, DTC is the registered holder of securities on the books of
issuers of those securities (in its nominee name, Cede & Co.) and,
accordingly, receives information and data relating to those securities
from the issuers, for distribution to the DTC participants
(``Participants'') holding interests in such securities on the books of
DTC. As a further service to these Participants with respect to
securities held by DTC for their benefit, DTC additionally compiles
information from other sources to enhance data provided by it to its
Participants. The information and data so received and compiled by DTC
includes information such as descriptive reference data, names, country
of incorporation, exchange, dividend announcement and corporate action
announcement information on securities and other financial assets, as
further described in the applicable Service Guides which are being
amended by this rule filing, including, the Custody Service Guide, the
Deposits Service Guide, the Dividend Service Guide, the Money Market
Instruments Service Guide, the Redemptions Service Guide, the
Reorganization Service Guide, the Settlement Service Guide and the
Underwriting Service Guide (``Affected Service Guides''). Each of the
Affected Service Guides, except the Deposits Service Guide and the
Underwriting Service Guide, specifically provides that the information
and data so received and compiled by DTC may not be redistributed to
any other persons who, to a Participant's knowledge, use the
information as a basis for producing and distributing data or related
services. However, DTC has observed that these restrictions may require
some clarification.
Proposed Rule Changes
By this filing DTC will harmonize the language regarding
restrictions on redistribution of data between all of the Affected
Service Guides as the described restrictions apply to all data and
information distributed by DTC through its services. In addition, DTC
is amending the text of each of the Affected Service Guides to clarify
that the data and information so received and compiled by DTC is
proprietary to DTC and shall not be used for commercial purposes by
Participants (or third parties acting on behalf of Participants) to
which the data and information is distributed by DTC. To the extent any
such person wishes to rightfully redistribute the data or information,
a further amendment to the Affected Service Guides will direct
interested Participants and third parties to DTCC Solutions, LLC, an
affiliate of DTC which, under service level agreements with DTC, is
licensed to further process and distribute such information and data
pursuant to appropriate agreements with Participants and third parties.
(b) Statutory Basis
The proposed rule change is consistent with the requirements of
Section 17A(b)(3)(F) of the Act, and the rules and regulations
thereunder applicable to DTC as it does not adversely affect the
safeguarding of funds or securities in DTC's custody and control, or
for which it is responsible, but, rather, clarifies the procedures set
forth in the Affected Service Guides with respect to the use of data
and information received and compiled by DTC.
(B) Self-Regulatory Organization's Statement on Burden on Competition
DTC does not believe that the proposed rule change will have any
impact or impose any burden on competition.
[[Page 40235]]
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
Written comments relating to the proposed rule change have not yet
been solicited or received. DTC will notify the Commission of any
written comments received by DTC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A) \6\ of the Act and Rule 19b-
4(f)(4)(i).\7\ At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend 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.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(4)(i).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-DTC-2013-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-DTC-2013-07. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filings also will be available
for inspection and copying at the principal office of DTC and on DTC's
Web site at http://www.dtcc.com/downloads/legal/rule_filings/2013/dtc/SR-DTC-2013-07.pdf. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-DTC-2013-07 and should be submitted on or before July 24, 2013.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-15930 Filed 7-2-13; 8:45 am]
BILLING CODE 8011-01-P