Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule To Revise the DTC Custody Service Guide To Incorporate the Terms of Certain Participant Agreements, 52198-52199 [E6-14552]

Download as PDF 52198 Federal Register / Vol. 71, No. 170 / Friday, September 1, 2006 / Notices clarify how cross orders would be executed in the Post-Primary Trading Session. The Exchange also corrected several technical errors contained in the rule text. The Commission believes that these clarifying and technical changes to the proposed rule change improve the proposal and raise no new or novel issues of regulatory concern, and therefore should not delay its implementation. Accordingly, the Commission finds good cause to accelerate approval of Amendment No. 5, pursuant to Section 19(b)(2) of the Act.55 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning Amendment No. 5, including whether Amendment No. 5 is consistent with the Act. Comments may be submitted by any of the following methods: sroberts on PROD1PC70 with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–BSE–2006–22 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–BSE–2006–22. 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 (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 inspection and copying in the Commission’s Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All 55 15 U.S.C. 78s(b)(2). VerDate Aug<31>2005 16:21 Aug 31, 2006 Jkt 208001 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 Amendment No. 5 of File Number SR–BSE–2006–22 and should be submitted on or before September 22, 2006. V. Conclusion For the foregoing reasons, the Commission finds that the proposed rule change, as amended, is consistent with the Act and the rules and regulations thereunder applicable to a national securities exchange, and, in particular, with Section 6(b)(5) of the Act.56 It is therefore ordered, pursuant to Section 19(b)(2) of the Act,57 that the proposed rule change (SR-BSE–2006– 22), as amended, and Amendment No. 3 thereto, is approved and Amendment No. 5 is approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.58 Nancy M. Morris, Secretary. [FR Doc. E6–14564 Filed 8–31–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54367; File No. SR–DTC– 2006–09] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule To Revise the DTC Custody Service Guide To Incorporate the Terms of Certain Participant Agreements Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on May 19, 2006, The Depository Trust Company (‘‘DTC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change and on June 23, 2006, amended the proposed rule change described in Items 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)(iii) of the Act 2 56 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(2). 58 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78s(b)(3)(A)(iii). 57 15 Frm 00147 Fmt 4703 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change would incorporate the terms and conditions of certain participant agreements related to DTC’s custody service into the DTC Custody Service Guide. 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 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change DTC is filing the proposed rule change to incorporate the terms and conditions of various participant agreements relating to DTC’s custody service into the DTC Custody Service Guide (‘‘Guide’’).5 Specifically, DTC is incorporating the terms of three custody service participant agreements into the Guide: (i) The High Value Letter,6 (ii) New York Window Service Agreement,7 and (iii) Medallion Signature Guarantee/ Stamp Letter.8 The terms proposed to be 3 17 August 25, 2006. PO 00000 and Rule 19b–4(f)(4) thereunder 3 so that the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested parties. Sfmt 4703 CFR 240.19b–4(f)(4). Commission has modified the text of the summaries prepared by DTC. 5 For background information on the Custody Service Guide, which replaced applicable participant operating procedures relating to the custody service, see Securities Exchange Act Release No. 34–44719 (August 17, 2001), 66 FR 44656 (August 24, 2001) [File No. SR–DTC–2001– 01]. 6 The High Value Letter defines the extent of loss that DTC would incur in connection with the processing of certain ‘‘high value’’ certificates as being limited by the extent of the DTC insurance coverage at the time of an incident of loss. 7 The New York Window Service Agreement sets forth the terms and conditions for a participant’s use of the New York Window Service, a service offered under the umbrella of DTC’s custody service. 8 The Medallion Signature Guarantee/Stamp Letter sets forth the terms and conditions for DTC’s use of certain participant stamps and medallions in connection with the New York Window Service. 4 The E:\FR\FM\01SEN1.SGM 01SEN1 Federal Register / Vol. 71, No. 170 / Friday, September 1, 2006 / Notices incorporated by this filing into the Guide match those currently included in the agreements thereby affording both DTC and its participants the same rights and responsibilities as those afforded by the agreements. DTC believes that the proposed rule change is consistent with the requirements of the Act, as amended, and the rules and regulations thereunder because it incorporates existing terms of DTC participant agreements into DTC’s Guide and thus facilitates the safeguarding of securities in DTC’s custody or control. (B) Self-Regulatory Organization’s Statement on Burden on Competition DTC does not believe that the proposed rule change will 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 yet been solicited or received. DTC will notify the Commission of any written comments received by DTC. sroberts on PROD1PC70 with NOTICES 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 9 and Rule 19b–4(f)(4) 10 thereunder because the proposed rule effects a change in an existing service of DTC that (i) does not adversely affect the safeguarding of securities or funds in the custody or control of DTC or for which it is responsible and (ii) does not significantly affect the respective rights or obligations of DTC or persons using the service. At any time within sixty 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: 9 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(4). 10 17 VerDate Aug<31>2005 16:21 Aug 31, 2006 Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml) or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–DTC–2006–09 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–DTC–2006–09. 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 (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 inspection and copying in the Commission’s Public Reference Section, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of DTC and on DTC’s Web site at http://www.dtc.org. 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–2006–09 and should be submitted on or before September 22, 2006. For the Commission by the Division of Market Regulation, pursuant to delegated authority.11 Nancy M. Morris, Secretary. [FR Doc. E6–14552 Filed 8–31–06; 8:45 am] [Release No. 34–54366; File No. SR–NSCC– 2006–07] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Clarifying and Technical Changes to NSCC’s Rules Regarding Its Fund/Serv Mutual Fund Processing System August 25, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on June 5, 2006, the National Securities Clearing Corporation (‘‘NSCC’’) 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 NSCC. NSCC filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 2 and Rule 19b–4(f)(4) thereunder 3 so that the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested parties. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change would make clarifying and technical changes to NSCC’s Rules principally as they relate to funds which are eligible for processing on Fund/Serv, NSCC’s mutual fund processing system. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements.4 U.S.C. 78s(b)(1). U.S.C. 78s(b)(3)(A)(iii). 3 17 CFR 240.19b&ndash;4(f)(4). 4 The Commission has modified the text of the summaries prepared by NSCC. 2 15 11 17 Jkt 208001 SECURITIES AND EXCHANGE COMMISSION 1 15 BILLING CODE 8010–01–P PO 00000 CFR 200.30–3(a)(12). Frm 00148 Fmt 4703 Sfmt 4703 52199 E:\FR\FM\01SEN1.SGM 01SEN1

Agencies

[Federal Register Volume 71, Number 170 (Friday, September 1, 2006)]
[Notices]
[Pages 52198-52199]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14552]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54367; File No. SR-DTC-2006-09]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule To Revise 
the DTC Custody Service Guide To Incorporate the Terms of Certain 
Participant Agreements

 August 25, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 19, 2006, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') a proposed rule change and on June 
23, 2006, amended the proposed rule change described in Items 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)(iii) of 
the Act \2\ and Rule 19b-4(f)(4) thereunder \3\ so that the proposal 
was effective upon filing with the Commission. 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).
    \2\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change would incorporate the terms and conditions 
of certain participant agreements related to DTC's custody service into 
the DTC Custody Service Guide.

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\
---------------------------------------------------------------------------

    \4\ The Commission has modified the text of the summaries 
prepared by DTC.
---------------------------------------------------------------------------

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    DTC is filing the proposed rule change to incorporate the terms and 
conditions of various participant agreements relating to DTC's custody 
service into the DTC Custody Service Guide (``Guide'').\5\ 
Specifically, DTC is incorporating the terms of three custody service 
participant agreements into the Guide: (i) The High Value Letter,\6\ 
(ii) New York Window Service Agreement,\7\ and (iii) Medallion 
Signature Guarantee/Stamp Letter.\8\ The terms proposed to be

[[Page 52199]]

incorporated by this filing into the Guide match those currently 
included in the agreements thereby affording both DTC and its 
participants the same rights and responsibilities as those afforded by 
the agreements.
---------------------------------------------------------------------------

    \5\ For background information on the Custody Service Guide, 
which replaced applicable participant operating procedures relating 
to the custody service, see Securities Exchange Act Release No. 34-
44719 (August 17, 2001), 66 FR 44656 (August 24, 2001) [File No. SR-
DTC-2001-01].
    \6\ The High Value Letter defines the extent of loss that DTC 
would incur in connection with the processing of certain ``high 
value'' certificates as being limited by the extent of the DTC 
insurance coverage at the time of an incident of loss.
    \7\ The New York Window Service Agreement sets forth the terms 
and conditions for a participant's use of the New York Window 
Service, a service offered under the umbrella of DTC's custody 
service.
    \8\ The Medallion Signature Guarantee/Stamp Letter sets forth 
the terms and conditions for DTC's use of certain participant stamps 
and medallions in connection with the New York Window Service.
---------------------------------------------------------------------------

    DTC believes that the proposed rule change is consistent with the 
requirements of the Act, as amended, and the rules and regulations 
thereunder because it incorporates existing terms of DTC participant 
agreements into DTC's Guide and thus facilitates the safeguarding of 
securities in DTC's custody or control.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC does not believe that the proposed rule change will 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 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 upon filing pursuant 
to Section 19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(4) \10\ 
thereunder because the proposed rule effects a change in an existing 
service of DTC that (i) does not adversely affect the safeguarding of 
securities or funds in the custody or control of DTC or for which it is 
responsible and (ii) does not significantly affect the respective 
rights or obligations of DTC or persons using the service. At any time 
within sixty 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 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 (http://
www.sec.gov/rules/sro.shtml) or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-DTC-2006-09 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-DTC-2006-09. 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 (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 inspection and 
copying in the Commission's Public Reference Section, 100 F Street, 
NE., Washington, DC 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of DTC and on DTC's 
Web site at http://www.dtc.org. 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-2006-09 and should be submitted on or before 
September 22, 2006.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-14552 Filed 8-31-06; 8:45 am]
BILLING CODE 8010-01-P