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]

Download as PDF 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]


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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
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