[Federal Register Volume 79, Number 246 (Tuesday, December 23, 2014)]
[Notices]
[Pages 77063-77064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-29966]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73864; File No. SR-DTC-2014-12]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change in
Connection With the Amendment of the Existing Dividends Service Guide
December 17, 2014.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') and Rule 19b-4 \2\ thereunder, notice is hereby given
that on December 4, 2014, The Depository Trust Company (``DTC'') filed
with the Securities Exchange Commission (``Commission'') the proposed
rule change as described in Item 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) of the Act \3\ and Rule 19b-4(f)(4)
thereunder.\4\ The proposed rule change was effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed 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).
\4\ 17 CFR 240.19b-4(f)(4).
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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 renames the
``Dividends Service Guide'', the ``Distributions Service Guide'' (the
``Guide''), and streamlines and updates the Guide to align with (i) the
transition from the corporate actions functions of its Participant
Terminal System (``PTS'')/Participant Browser Service (``PBS'')
applications to the Corporate Action Web (``CA Web'') for the
processing of distribution events, (ii) the migration to International
Organization for Standardization (``ISO'') 20022 messaging to
communicate corporate action distribution event information, and (iii)
other technical changes as described below.\5\
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\5\ Terms not otherwise defined herein have the meaning set
forth in the Rules.
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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
1. Purpose
With this rule filing, DTC is proposing to rename its ``Dividends
Service Guide'', the ``Distributions Service Guide,'' and to streamline
and update the Guide to align with: (i) The transition from the
corporate actions functions of its PTS/PBS applications to CA Web for
the processing of distribution events, (ii) the migration to ISO 20022
messaging to communicate corporate action distribution event
information and (iii) other technical changes as described below.
On October 16, 2012, DTC filed a rule change \6\ introducing the CA
Web and updating its standards for communicating information related to
the announcement and processing of distribution events by publishing
the data in the ISO 20022 format. Use of CA Web for distributions
functionality provided by BOOK, DUEB and TAXI on PTS and their PBS
equivalents had become mandatory for all DTC Participants utilizing
these services beginning on October 16, 2014. The balance of the PTS
functions and their PBS equivalents related to distributions, EDS,
DIVA, DPAL, PIAR, ADJI, SDAR (Dept. D only), and DAWN will be retired
in Q1 of 2015. Therefore, DTC has updated the Guide by updating and
eliminating references to PTS/PBS functions which are being replaced by
CA Web functionality, and introducing the concept of ISO 20022
messaging. Additionally, the Guide has been updated for technical
changes to remove a reference to the automated election instruction
approval process function of the Elective Dividend Service. This
optional function, is available in PBS only, provided Participant firms
with an electronic means of internally reviewing and approving election
instructions prior to their processing by DTC. It has been discontinued
due to low levels of Participant adoption and usage.
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\6\ Securities Exchange Act Release No. 68114 (Oct. 26, 2012);
77 FR 66497 (Nov. 5, 2012) (SR-DTC-2012-08).
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Further, DTC has added a notice to the Important Legal Information
section, advising Participants that they should obtain their own tax
advice regarding any particular corporate action or other taxable
event.
Implementation Date
The proposed rule change will be implemented on January 19, 2015.
2. Statutory Basis
The proposed rule change would promote efficiencies in the way that
Participants submit instructions and view information for distribution
event types. As such, the proposed rule change is consistent with the
provisions of Section 17A(b)(3)(F) \7\ of the Act which requires that
the rules of the clearing agency be designed, inter alia, to promote
the prompt and accurate clearance and settlement of securities
transactions.
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\7\ 15 U.S. C. 78q-1(b)(3)(F).
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[[Page 77064]]
(B) Self-Regulatory Organization's Statement on Burden on Competition
All Participants would be subject to the proposed change, and
therefore DTC does not believe that the proposed rule change would have
any impact, or impose any burden, on competition.
(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 been
solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \8\ of the Act and paragraph (f)(4) \9\ of Rule 19b-4
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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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(4).
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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-2014-12 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC, 20549-1090.
All submissions should refer to File Number SR-DTC-2014-12. 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 should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-DTC-2014-12
and should be submitted on or before January 13, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-29966 Filed 12-22-14; 8:45 am]
BILLING CODE 8011-01-P