[Federal Register Volume 76, Number 246 (Thursday, December 22, 2011)]
[Notices]
[Pages 79725-79726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32756]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65994; File No. SR-DTC-2011-12]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rules Relating to DTC's Deposits Service Guide
December 16, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 14, 2011, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change described
in Items I and II below, which items have been prepared primarily by
DTC. DTC filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(4) thereunder so that the
proposed rule change was effective upon filing with the Commission.\2\
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\ 15 U.S.C. 78s(b)(3)(A)(iii) and 17 CFR 240.19b-4(f)(4).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The purpose of this proposed rule change is to update DTC's
Deposits Service Guide in order to streamline the document and to
mitigate certain risks associated with certain deposit processes.\3\
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\3\ The text of the proposed rule change is attached as Exhibit
5 to DTC's filing, which is available at www.dtcc.com/downloads/legal/rule_filings/2011/dtc/2011-12.pdf.
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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 these
statements.\4\
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\4\ 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
(1) Purpose
DTC's deposits service allow participants to use a full range of
safekeeping and processing services for various types of eligible
securities. DTC is now proposing to update its Deposits Service Guide
(``Deposits Guide'') in order to streamline the document and to
mitigate risk associated with certain deposit processes. DTC is also
proposing to make some ministerial changes regarding methods of
notification, definitions, and communication inputs in order to provide
a more precise version of the Deposits Guide.\5\
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\5\ For example, DTC detailed the PBS functions that
participants have the ability to use with the deposit service and
made changes to phone numbers and contact information.
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Specifically, DTC is proposing to make the following updates to the
Deposits Guide:
(a) DTC is proposing to update the procedure associated with the
use of Medallion Signature Guarantee stamps as it relates to its Branch
Deposit Service in order to document the process that it takes to
safeguard the use and storage of such stamps.
(b) DTC is proposing to add a section to the Deposits Guide
detailing its Paperless Legal Transfer Program.\6\
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\6\ For more information regarding DTC's Paperless Legal
Transfer Program, see Important Notices B6931 (September
29, 2004), B7139 (December 1, 2004), and B9787
(June 21, 2006).
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(c) DTC is proposing to remove the narrative describing its custody
services because such services are fully described in DTC's Custody
Service Guide.\7\
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\7\ The language DTC is proposing to eliminate from the Deposit
Guide continues to be included in the Custody Service Guide.
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(2) Statutory Basis
The proposed rule change is consistent with the requirements of the
Act and the rules and regulations thereunder applicable to DTC because
proposed changes to the procedures associated with DTC's deposit
service should facilitate the prompt and accurate clearance and
settlement of securities transactions by reducing the costs,
inefficiencies, and risks associated with the physical safekeeping of
securities. In so doing, the proposal should in turn also enhance the
use of DTC's existing services.
(B) Self-Regulatory Organization's Statement on Burden on Competition
DTC does not believe that the proposed rule change would 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 DTC. 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 upon filing pursuant
to Section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(4) \9\
thereunder because it is a change in an existing service that does not
adversely affect the safeguarding of
[[Page 79726]]
securities or funds in the custody or control of the clearing agency
and does not significantly affect the respective rights or obligations
of the clearing agency or persons using the service. At any time within
sixty days of the filing of such 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)(iii).
\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-2011-12 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-2011-12. 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 Section, 100 F Street
NE., Washington, DC 20549-1090, on official business days between the
hours of 10 a.m. and 3 p.m. Copies of such filings will also 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/2011/dtc/2011-12.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-2011-12 and should be submitted on or before January 12, 2012.
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. 2011-32756 Filed 12-21-11; 8:45 am]
BILLING CODE 8011-01-P