[Federal Register Volume 79, Number 111 (Tuesday, June 10, 2014)]
[Notices]
[Pages 33241-33243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-13453]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72308; File No. SR-DTC-2014-07]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change in
Connection With the Implementation of a Fee for ACATS-Related
Deliveries and Receives
June 4, 2014.
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 May 29, 2014, 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 DTC. DTC filed the proposed rule change pursuant
to Section 19(b)(3)(A)(ii) \3\ of the Act and Rule 19b-4(f)(2) \4\
thereunder. The proposed rule change was effective upon filing with the
Commission. 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).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
As more fully described below, the proposed rule change consists of
changes to the DTC fee schedule \5\ to add new fees for securities
deliveries and receives relating to customer account transfers that
utilize a new process to be implemented by National Securities Clearing
Corporation (``NSCC'').
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\5\ The DTC fee schedule is available at http://www.dtcc.com/~/
media/Files/Downloads/legal/fee-guides/dtcfeeguide.ashx.
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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.
[[Page 33242]]
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose \6\
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\6\ Terms not defined herein have the meaning set forth in DTC's
Rules & Procedures (the ``Rules'').
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Pursuant to its rule filing SR-NSCC-2014-04 (the ``NSCC Rule
Filing''),\7\ National Securities Clearing Corporation (``NSCC'') will
implement a new process, called the ``ACATS Settlement Accounting
Operation,'' to facilitate the settlement of Automated Customer Account
Transfer Service (``ACATS'') \8\ activity relating to securities
eligible for processing through DTC. The ACATS Settlement Accounting
Operation will have a DTC omnibus account (``New Account'') associated
with it against which Participants will, via their respective DTC
accounts, deliver securities to, or receive securities from, NSCC in
order to satisfy their ACATS obligations in eligible securities.
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\7\ Release No. 34-72223 (May 22, 2014), 79 FR 30912 (May 29,
2014) (SR-NSCC-2014-04).
\8\ ACATS is a service of NSCC designed for the automated
transfer of customer accounts between broker-dealers.
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Pursuant to the proposed rule change, in order to align costs with
revenues of processing deliveries and receives of securities for
Participants against the New Account, DTC will incorporate the
following new fees into its fee schedule:
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Fee description Fee amount
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Deliveries to the NSCC ACATS Settlement $0.06 per item; charged to
Accounting Operation omnibus account. delivering Participant.
Receives from the ACATS Settlement $0.06 per item; charged to the
Accounting Operation omnibus account. receiving Participant.
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Implementation Timeframe
The proposed fee changes will take effect on May 30, 2014, for
Participant deliveries and receives of securities to and from the New
Account occurring on or after that date.
2. Statutory Basis
The proposed fee changes will align DTC's revenue related to
processing of ACATS transactions versus the New Account with the
associated costs to DTC, and the fees will apply to each Participant
equally in accordance with each Participant's use of the applicable DTC
services. Therefore, DTC believes that the proposed rule change is
consistent with the requirements of the Act, in particular Section
17A(b)(3)(D) \9\ of the Act, which requires that the Rules provide for
the equitable allocation of reasonable dues, fees, and other charges
among its Participants. In addition to the above, DTC's provision of
the related services facilitates the safe and secure delivery of
customer securities for ACATS transfers. Therefore, DTC further
believes that the proposed rule change is consistent with Rule 17Ad-
22(d)(6) \10\ under the Act which requires clearing agencies to
establish, implement, maintain and enforce written policies and
procedures reasonably designed to be cost-effective in meeting the
requirements of Participants while maintaining safe and secure
operations.
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\9\ 15 U.S.C. 78q-1(b)(3)(D).
\10\ 17 CFR 240.17Ad-22(d)(6).
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(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. As stated above, the
proposed changes will align DTC's fees with the costs of delivering
services to its Participants, and the new fee will apply equally to all
DTC Participants in accordance with their use of the applicable
services.
(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 with respect to this filing.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The forgoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \11\ and Rule 19b-4(f)(2) \12\ thereunder.
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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\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
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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 No. SR-DTC-2014-07 on the subject line.
Paper Comments
Send in triplicate to Secretary, Securities and Exchange
Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-DTC-2014-07. 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 the filing also will be available
for inspection and copying at the principal office of DTC and on DTC's
Web site at http://dtcc.com/legal/sec-rule-filings.aspx.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
[[Page 33243]]
should submit only information that you wish to make available
publicly. All submissions should refer to File No. SR-DTC-2014-07 and
should be submitted on or before July 1, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13453 Filed 6-9-14; 8:45 am]
BILLING CODE 8011-01-P