[Federal Register Volume 80, Number 95 (Monday, May 18, 2015)]
[Notices]
[Pages 28325-28327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11868]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74926; File No. SR-DTC-2015-005]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Make Technical Revisions to the DTC Custody Service Guide and the DTC
Deposits Service Guide
May 12, 2015.
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 April 30, 2015, 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 by DTC. DTC filed the proposed rule change
pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(4) \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).
\4\ 17 CFR 240.19b-4(f)(4).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change consists of technical revisions to the:
(i) DTC Custody Service Guide (``Custody Guide'') and (ii) DTC Deposits
Service
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Guide (``Deposits Guide'') in order to make technical changes and
updates.\5\
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\5\ Each term not otherwise defined herein has the respective
meaning set forth in DTC's rules (the ``Rules''), available at
http://www.dtcc.com/~/media/Files/Downloads/legal/rules/
dtc_rules.pdf.
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II. Clearing Agency'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) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
1. Purpose
The proposed rule change would revise both of [sic] the Custody
Guide and the Deposits Guide to make technical changes and updates to
reflect current terminology, systems functionality, procedures and
practices, as well as to simplify and clarify text.
In this regard, the Custody Guide would be revised to:
(i) Harmonize descriptions throughout regarding the eligibility of
securities and other assets for deposit in the Custody Service, and
update the list of items that are accepted or not accepted for deposit;
(ii) Update references to functionality with respect to Participant
interfaces with DTC;
(iii) Clarify that Participants' may utilize the New York Window
Service to facilitate physical transfers with respect to deliveries of
securities for services offered by National Securities Clearing
Corporation (NSCC) such as the Envelope Settlement Service (ESS) and
the Automated Customer Account Transfer Service (ACATS);
(iv) Remove the ``Terms and Conditions'' section provided for the
New York Window Service which is not necessary in light of the
indemnification provisions relating to DTC's offering of services under
DTC Rule 6; \6\
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\6\ See DTC Rules (Rule 6 (Services)), pp. 45-49, available at
http://www.dtcc.com/~/media/Files/Downloads/legal/rules/
dtc_rules.pdf.
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(v) Update text, including descriptions of processes and address
information for the Custody Service and cross-references throughout;
and
(vi) Conform grammar and usage of terminology throughout.
In addition, the Deposits Guide would be revised to:
(i) Remove language relating to the Custody Service that is
duplicative of the provisions in the Custody Guide;
(ii) Clarify that provisions relating DTC's use of Participants'
medallion guarantee stamps for purposes of the Branch Deposit Service
also apply with respect to the Restricted Deposit Service;
(iii) Update other text, including descriptions of processes and
address information for the Deposits Service and cross-references
throughout; and
(iv) Conform grammar and usage of terminology throughout.
Implementation Date
The proposed rule change would become effective immediately.
2. Statutory Basis
The proposed rule change would revise the Custody Guide and the
Deposits Guide to make technical changes and updates to reflect current
terminology, systems functionality, procedures and practices, as well
as simplify and clarify the texts of both guides. Therefore, DTC
believes the proposed rule change is consistent with the requirements
of: (i) The Act, in particular Section 17A(b)(3)(F) of the Act,\7\
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, and (ii) Rule 17Ad-22(d)(9) \8\ promulgated
under the Act which requires, inter alia, that a clearing agency
establish, implement, maintain and enforce written policies and
procedures reasonably designed to identify and evaluate the risks and
costs associated with using its services, because the proposed changes
simplify and clarify the Guides' respective texts for the users of
DTC's services.
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\7\ 15 U.S.C. 78q-1(b)(3)(F).
\8\ 17 CFR 240.17Ad-22(d)(9).
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(B) Clearing Agency's Statement on Burden on Competition
DTC does not believe that the proposed rule change would have any
impact, or impose any burden, on competition.
(C) Clearing Agency'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 rule change has become effective pursuant to Section
19(b)(3)(A) \9\ of the Act and paragraph (f) of Rule 19b-4 \10\
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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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f).
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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-2015-005 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-DTC-2015-005. 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
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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 DTCC's
Web site (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-2015-005 and should be
submitted on or before June 8, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-11868 Filed 5-15-15; 8:45 am]
BILLING CODE 8011-01-P