Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Eliminate the Transfer Agent Drop Service, 57635-57636 [E5-5344]
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Federal Register / Vol. 70, No. 190 / Monday, October 3, 2005 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 9 and
subparagraph (f)(2) of Rule 19b–4
thereunder,10 because it establishes or
changes a due, fee, or other charge
imposed by Amex. At any time within
60 days of the filing of the proposed rule
change, the Commission may summarily
abrogate 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.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Amex–2005–094 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–9303.
All submissions should refer to File
Number SR–Amex–2005–094. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
9 15
U.S.C. 78s(b)(3)(a)(ii).
CFR 240.19b–4(f)(2).
17:26 Sep 30, 2005
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Jonathan G. Katz,
Secretary.
[FR Doc. E5–5347 Filed 9–30–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52509; File No. SR–DTC–
2005–13]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Eliminate
the Transfer Agent Drop Service
September 26, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
August 25, 2005, 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. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested parties.
11 17
10 17
VerDate Aug<31>2005
post all comments on the Commission’s
Internet Web site (https://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 inspection and copying in
the Commission’s Public Reference
Room. Copies of the filing also will be
available for inspection and copying at
the principal offices of Amex. 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–Amex–2005–094 and
should be submitted on or before
October 24, 2005.
1 15
Jkt 205001
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00085
Fmt 4703
Sfmt 4703
57635
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 eliminate DTC’s transfer
agent drop service (‘‘Drop Service’’).
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.2
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Since 1996, DTC has offered the Drop
Service in order to provide transfer
agents located outside of New York City,
New York, with a central location
within Manhattan for receipt of
securities from banks, broker-dealers,
depositories, and shareholders. This
service enabled transfer agents to
comply with the New York Stock
Exchange (‘‘NYSE’’) Rule 496, which
required, among other things, that
transfer agents for NYSE listed
companies maintain an office or obtain
an agent located south of Chambers
Street in the Borough of Manhattan, City
of New York, where securities could be
delivered in person for registration of
transfer and could be picked up after
completion of such registration (often
referred to in the industry as a ‘‘drop’’).
The drop requirement was implemented
when most securities were held in
certificated form and were settled with
physical delivery. The transfer agents’
presence in lower Manhattan, where the
brokers were also concentrated,
facilitated the speedy processing and
settlement of securities transactions.
Today most securities are held in
‘‘street name’’ at DTC with transfers of
such securities occurring through
automated book-entry systems at DTC
without the need for the transfer of
physical certificates, and very few
transfers and facilitated by the drop in
Manhattan. As a result, the NYSE
2 The Commission has modified the text of the
summaries prepared by the DTC.
E:\FR\FM\03OCN1.SGM
03OCN1
57636
Federal Register / Vol. 70, No. 190 / Monday, October 3, 2005 / Notices
amended its Rule 196 to eliminate the
drop requirement.3
DTC believes that the elimination of
the NYSE’s drop requirement will result
in a most transfer agents withdrawing
from DTC’s Drop Service. Also, in light
of an industry-wide move to
dematerialize securities holdings, DTC
seeks to discourage the use of physical
certificates by eliminating processing
facilities that makes the use of
certificates easier. Therefore, because
the Drop Service no longer serves a need
for DTC participants and termination of
the Drop Service will assist in furthering
industry initiatives to discontinue the
use of physical certificates, DTC will no
longer provide the Drop Service
effective September 1, 2005.
DTC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act 4
and the rules and regulations
thereunder applicable to DTC because it
will discourage the use of inefficient
and outdated securities transfer
methods and services and as such will
promote the prompt and accurate
clearance and settlement of securities
transactions. Furthermore, the proposed
rule change will not adversely affect the
safeguarding of securities and funds in
DTC’s control or custody or for which
it is responsible.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
DTC does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments relating to the
proposed rule change have been
solicited or received. DTC will notify
the Commission of any written
comments received by the 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 5 and Rule
19b–4(f)(4) 6 thereunder because it is
effecting a change in an existing service
of a registered clearing agency that does
not adversely affect the safeguarding of
3 Exchange Act Release No. 51973 (July 5, 2005),
70 FR 40094 (July 12, 2005), File No. SR–NYSE–
2004–62.
4 15 U.S.C. 78q–1.
5 15 U.S.C. 78s(b)(3)(A)(iii).
6 17 CFR 240.19b–4(f)(4).
VerDate Aug<31>2005
17:26 Sep 30, 2005
Jkt 205001
securities or funds in the custody or
control of the clearing agency or for
which it is responsible 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 may
summarily abrogate 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.
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–
2005–13 and should be submitted on or
before October 24, 2005.
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:
BILLING CODE 8010–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–DTC–2005–13 on the
subject line.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.7
Jonathan G. Katz,
Secretary.
[FR Doc. E5–5344 Filed 9–30–05; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52511; File No. SR–NASD–
2005–113]
Self-Regulatory Organizations;
National Association of Securities
Dealers; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to Proactive Limit
Orders
September 27, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on
• Send paper comments in triplicate
September 22, 2005, the National
to Jonathan G. Katz, Secretary,
Association of Securities Dealers, Inc.
Securities and Exchange Commission,
(‘‘NASD’’), through its subsidiary, The
100 F Street, NE., Washington, DC
Nasdaq Stock Market, Inc. (‘‘Nasdaq’’),
20549–9303.
filed with the Securities and Exchange
All submissions should refer to File
Commission (‘‘Commission’’) the
Number SR–DTC–2005–13. This file
proposed rule change as described in
number should be included on the
subject line if e-mail is used. To help the Items I and II below, which Items have
been prepared by Nasdaq. Pursuant to
Commission process and review your
Section 19(b)(3)(A) of the Act 3 and Rule
comments more efficiently, please use
4
only one method. The Commission will 19b–4(f)(6) thereunder, Nasdaq has
designated the proposed rule change as
post all comments on the Commission’s
non-controversial, and therefore the
Internet Web site (https://www.sec.gov/
proposed rule change is effective upon
rules/sro.shtml). Copies of the
filing. The Commission is publishing
submission, all subsequent
this notice to solicit comments on the
amendments, all written statements
proposed rule change from interested
with respect to the proposed rule
persons.
change that are filed with the
Commission, and all written
I. Self-Regulatory Organization’s
communications relating to the
Statement of the Terms of the Substance
proposed rule change between the
of the Proposed Rule Change
Commission and any person, other than
Nasdaq proposes to create a voluntary
those that may be withheld from the
proactive limit order type that, if locked
public in accordance with the
or crossed by another accessible market
provisions of 5 U.S.C. 552, will be
center, will automatically be routed to
available for inspection and copying in
that market center for potential
the Commission’s Public Reference
execution. Nasdaq intends to implement
Section, 100 F Street, NE., Washington,
the proposed rule change promptly and
DC 20549. Copies of such filings also
will be available for inspection and
7 17 CFR 200.30–3(a)(12).
copying at the principal office of DTC
1 15 U.S.C. 78s(b)(1).
and on DTC’s Web site, https://
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
www.dtcc.com. All comments received
4 17 CFR 240.19b–4(f)(6).
will be posted without change; the
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
E:\FR\FM\03OCN1.SGM
03OCN1
Agencies
[Federal Register Volume 70, Number 190 (Monday, October 3, 2005)]
[Notices]
[Pages 57635-57636]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5344]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52509; File No. SR-DTC-2005-13]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Eliminate the Transfer Agent Drop Service
September 26, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 25, 2005, 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. The Commission is publishing this notice to solicit comments on
the proposed rule change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
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 eliminate DTC's
transfer agent drop service (``Drop Service'').
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.\2\
---------------------------------------------------------------------------
\2\ The Commission has modified the text of the summaries
prepared by the DTC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Since 1996, DTC has offered the Drop Service in order to provide
transfer agents located outside of New York City, New York, with a
central location within Manhattan for receipt of securities from banks,
broker-dealers, depositories, and shareholders. This service enabled
transfer agents to comply with the New York Stock Exchange (``NYSE'')
Rule 496, which required, among other things, that transfer agents for
NYSE listed companies maintain an office or obtain an agent located
south of Chambers Street in the Borough of Manhattan, City of New York,
where securities could be delivered in person for registration of
transfer and could be picked up after completion of such registration
(often referred to in the industry as a ``drop''). The drop requirement
was implemented when most securities were held in certificated form and
were settled with physical delivery. The transfer agents' presence in
lower Manhattan, where the brokers were also concentrated, facilitated
the speedy processing and settlement of securities transactions.
Today most securities are held in ``street name'' at DTC with
transfers of such securities occurring through automated book-entry
systems at DTC without the need for the transfer of physical
certificates, and very few transfers and facilitated by the drop in
Manhattan. As a result, the NYSE
[[Page 57636]]
amended its Rule 196 to eliminate the drop requirement.\3\
---------------------------------------------------------------------------
\3\ Exchange Act Release No. 51973 (July 5, 2005), 70 FR 40094
(July 12, 2005), File No. SR-NYSE-2004-62.
---------------------------------------------------------------------------
DTC believes that the elimination of the NYSE's drop requirement
will result in a most transfer agents withdrawing from DTC's Drop
Service. Also, in light of an industry-wide move to dematerialize
securities holdings, DTC seeks to discourage the use of physical
certificates by eliminating processing facilities that makes the use of
certificates easier. Therefore, because the Drop Service no longer
serves a need for DTC participants and termination of the Drop Service
will assist in furthering industry initiatives to discontinue the use
of physical certificates, DTC will no longer provide the Drop Service
effective September 1, 2005.
DTC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \4\ and the rules and
regulations thereunder applicable to DTC because it will discourage the
use of inefficient and outdated securities transfer methods and
services and as such will promote the prompt and accurate clearance and
settlement of securities transactions. Furthermore, the proposed rule
change will not adversely affect the safeguarding of securities and
funds in DTC's control or custody or for which it is responsible.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
(B) Self-Regulatory Organization's Statement on Burden on Competition
DTC does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
No written comments relating to the proposed rule change have been
solicited or received. DTC will notify the Commission of any written
comments received by the 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 \5\ and Rule 19b-4(f)(4) \6\
thereunder because it is effecting a change in an existing service of a
registered clearing agency that does not adversely affect the
safeguarding of securities or funds in the custody or control of the
clearing agency or for which it is responsible 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 may summarily
abrogate 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A)(iii).
\6\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml) or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-DTC-2005-13 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-DTC-2005-13. This
file number should be included on the subject line if e-mail 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 (https://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 inspection
and copying in the Commission's Public Reference Section, 100 F Street,
NE., Washington, DC 20549. Copies of such filings also will be
available for inspection and copying at the principal office of DTC and
on DTC's Web site, https://www.dtcc.com. 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-2005-13 and should be submitted on
or before October 24, 2005.
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
Jonathan G. Katz,
Secretary.
[FR Doc. E5-5344 Filed 9-30-05; 8:45 am]
BILLING CODE 8010-01-P