Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of a Proposed Rule Change To Implement a New Service to Allow Issuers To Track and Limit the Number of Beneficial Owners for an Individual CUSIP, 51870-51872 [E8-20612]
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51870
Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices
UBS Health Sciences Fund, L.L.C. [File
No. 811–9985]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. On June 19, 2008,
applicant made a final liquidating
distribution to its shareholders, based
on net asset value. Expenses of $11,045
incurred in connection with the
liquidation were paid by applicant.
Filing Dates: The application was
filed on June 30, 2008 and amended on
August 15, 2008.
Applicant’s Address: c/o UBS
Financial Services, Inc., 51 West 52nd
St., New York, NY 10019.
mstockstill on PROD1PC66 with NOTICES
IQ Tax Advantaged Dividend Income
Fund Inc. [File No. 811–21555]; S&P
500 GEAREDSM Fund V Inc. [File No.
811–21692]; NASDAQ–100 GEAREDSM
Fund Inc. [File No. 811–21693]; S&P
500 GEAREDSM Fund II Inc. [File No.
811–21794]
Summary: Each applicant, a closedend investment company, seeks an
order declaring that it has ceased to be
an investment company. Applicants
have never made a public offering of
their securities and do not propose to
make a public offering or engage in
business of any kind.
Filing Date: The applications were
filed on July 24, 2008.
Applicants’ Address: 2 World
Financial Center, 7th Floor, 225 Liberty
St., New York, NY 10281.
Eaton Vance Prime Rate Reserves [File
No. 811–5808]; EV Classic Senior
Floating-Rate Fund [File No. 811–7946];
Eaton Vance Advisers Senior FloatingRate Fund [File No. 811–8671]; Eaton
Vance Institutional Senior FloatingRate Fund [File No. 811–9249]
Summary: Each applicant, a closedend investment company, seeks an
order declaring that it has ceased to be
an investment company. On March 14,
2008, each applicant transferred its
assets to Eaton Vance Floating-Rate
Advantage Fund, a series of Eaton
Vance Mutual Funds Trust, based on net
asset value. Expenses of $240,232,
$238,662, $88,464 and $30,397,
respectively, incurred in connection
with the reorganizations were paid by
applicants.
Filing Date: The applications were
filed on July 23, 2008.
Applicants’ Address: The Eaton
Vance Building, 255 State St., Boston,
MA 02109.
Sage Life Investment Trust [File No.
811–8623]
Summary: Applicant seeks an order
declaring that it has ceased to be an
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18:40 Sep 04, 2008
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investment company. On May 29, 2003,
Applicant’s board of directors approved
Applicant’s liquidation. On May 30,
2003, Applicant made a liquidating
distribution to its shareholders, based
on net asset value. Expenses of
$35,050.15 incurred in connection with
the liquidation were paid by Applicant
and its investment advisor, Sage
Advisors, Inc. Applicant has no assets
or liabilities and is not now engaged, or
intending to engage, in any business
activities other than those necessary for
winding up its affairs.
Filing Dates: The application was
filed on December 24, 2003, and
amended on June 24, 2008.
Applicant’s Address: 175 King Street,
Armonk, New York, 10504.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–20550 Filed 9–4–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of Continental Beverage
and Nutrition, Inc.; Order of
Suspension of Trading
September 3, 2008.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58436; File No. SR–DTC–
2008–11]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing of a Proposed Rule Change To
Implement a New Service to Allow
Issuers To Track and Limit the Number
of Beneficial Owners for an Individual
CUSIP
August 27, 2008.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
August 6, 2008, 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 primarily by DTC. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the rule change is to
implement a new service that will allow
issuers, either themselves or through an
issuer-designated administrator, to track
and limit the number of beneficial
owners for an individual CUSIP. This
service would be called the Security
Holder Tracking Service (‘‘SH Tracking
Service’’).
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Continental
Beverage and Nutrition, Inc.
(‘‘Continental’’) because it has not filed
any periodic reports since it filed a
Form 10–QSB for the period ended
November 30, 2006.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of Continental.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of Continental is suspended
for the period from 9:30 a.m. EDT on
September 3, 2008, through 11:59 p.m.
EDT on September 16, 2008.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
By the Commission.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–20707 Filed 9–3–08; 11:15 am]
A group of investment banks
requested that DTC assist them in
providing greater liquidity and access to
capital for securities of closely held
BILLING CODE 8010–01–P
PO 00000
Frm 00089
Fmt 4703
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. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Background
1 15
Sfmt 4703
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U.S.C. 78s(b)(1).
05SEN1
Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices
issuers that are traded in private
equities markets.2 Specifically, this
group asked DTC to build a system that
would allow these closely held
securities to be eligible for DTC’s
depository services while allowing the
issuer, typically through an agent, to
monitor and control the number and
character (e.g., qualified institutional
buyers or ‘‘QIBs’’) of beneficial owners
of its securities.3 Currently, the
processing and settlement of
transactions of such issues is
accomplished in a physical
environment outside DTC.4
mstockstill on PROD1PC66 with NOTICES
2. Proposed Rule Change
DTC proposes to implement its new
SH Tracking Service that would
facilitate the book-entry settlement and
asset servicing for securities that are
privately transacted. This service would
allow issuers to track and limit the
number of beneficial owners of its
securities (‘‘Tracked Securities’’).
The eligibility process for a Tracked
Security to be made and remain DTCeligible would not change from DTC’s
current process. However, under the
new proposed system, DTC would be
requested in writing to set up a specific
CUSIP for tracking such securities 5 and
would be notified who will perform the
function of the issuer’s administrator for
the CUSIP in the SH Tracking Service.6
Upon receipt of all of such
documentation, DTC would make the
CUSIP DTC-eligible and would activate
the tracking indicator on its security
master file. Additionally, once it is
made eligible, DTC would perform asset
servicing for the issue.
The issuer’s administrator would
control movements of the particular
2 Among the securities at issue are those that are
commonly referred to as ‘‘Rule 144A securities.’’
These securities are transacted pursuant to the
terms of Rule 144A (17 CFR 230.144A), which
provides a safe harbor from the registration
requirements of Section 5 of the Securities Act of
1933. 15 U.S.C. 77e.
3 Issuers must control the number of beneficial
owners pursuant to certain regulatory registration
and reporting requirements. In order for issuers to
be able to avoid the periodic reporting requirements
imposed by the Act they must not have more than
500 beneficial owners. 15 U.S.C. 78l(g), 15 U.S.C.
78m(a), 15 U.S.C. 78o(d).
4 DTC already allows Rule 144A securities that
are not investment grade rated debt to be eligible
for deposit, book-entry delivery, and other
depository services only if the Rule 144A securities
are designated for inclusion in a system of a selfregulatory organization approved by the
Commission for the reporting of quotation and trade
information of Rule 144A transactions (‘‘SRO
system’’). Securities Exchange Act Release No.
33327 (Dec. 13, 1993); 58 FR 67878 (Dec. 22, 1993).
5 DTC anticipates that this instruction will come
from the underwriter at the time of the initial
distribution at DTC.
6 DTC anticipates that the issuer’s transfer agent
will serve as its administrator.
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18:40 Sep 04, 2008
Jkt 214001
CUSIP for which it had been appointed.
Once the tracking indicator has been
activated on the master file and the
Administrator has been appointed, no
transfer of the securities would take
place in the Tracked Security without
the approval of the administrator
through DTC’s Inventory Management
System (‘‘IMS’’). The administrator,
based on requirements of the issuer,
would be solely responsible for
determining whether a transaction
should be effected in DTC. Once
approved by the administrator, DTC
would perform centralized book-entry
settlement. IMS would only allow an
administrator access to view and
approve transactions for CUSIPs for
which it had been appointed
administrator as reflected in DTC’s
records.
Because DTC would be relying solely
on the instructions of the administrator
in order to effect settlement in Tracked
Securities and would have no
knowledge of the number or character of
the underlying beneficial owners, use of
the SH Tracking Service by any party
would constitute an agreement that DTC
shall not be liable for any loss or
damages related to the use of the SH
Tracking System. Each user of the SH
Tracking Service would agree to
indemnify and hold harmless DTC and
its affiliates from and against any and all
losses, damages, liabilities, costs,
judgments, charges, and expenses
arising out of or relating to the use of the
SH Tracking Service.
The Tracked Securities would not be
held as part of a Participant’s general
free account and would not be
considered eligible collateral in DTC’s
settlement system.
Although the SH Tracking Service
was developed to address the specific
concerns of Rule144A securities, in
practice DTC envisions that it could be
utilized for other types of securities for
which the number or character of the
beneficial owners requires some level of
control.
3. Fees
In an effort to recover the costs of
building the SH Tracking Service, DTC
proposes the following fees to be added
to its Fee Schedule:
• $25,000 per CUSIP for SH Tracking
Services.
• $5 per delivery and receive for
Tracked Securities.
• $5 per receive and delivery for
reclaims of Tracked Securities.
DTC believes that the proposed rule
change is consistent with the
requirements of section 17A of the Act 7
7 15
PO 00000
U.S.C. 78q–1.
Frm 00090
Fmt 4703
Sfmt 4703
51871
and the rules and regulations
thereunder as it allows for more
efficient processing of transactions that
are currently being effected outside of
DTC by physical processing. Therefore,
it will not adversely affect the
safeguarding of funds or securities in
DTC’s custody and control 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 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
DTC has not solicited or received
written comments relating to the
proposed rule change. DTC will notify
the Commission of any written
comments it receives.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
ninety days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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
No. SR–DTC–2008–11 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
E:\FR\FM\05SEN1.SGM
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51872
Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices
All submissions should refer to File No.
SR–DTC–2008–11. 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
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. to 3 p.m.
Copies of such filing also will be
available for inspection and copying at
DTC’s principal office and on DTC’s
Web site at https://www.dtcc.com/legal/
rule_filings/dtc/2008.php. 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 No.
SR–DTC–2008–11 and should be
submitted on or before September 26,
2008.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–20612 Filed 9–4–08; 8:45 am]
BILLING CODE 8010–01–P
mstockstill on PROD1PC66 with NOTICES
[Release No. 34–58444; File No. SR–
NYSEArca–2008–96]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Order
Granting Accelerated Approval of
Proposed Rule Change To Establish
NYSE Arca Realtime Reference Prices
Service
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to establish a
pilot test NYSE Arca Realtime Reference
Prices service. This new NYSE Arcaonly market data service allows a
vendor to redistribute on a real-time
basis last sale prices of transactions that
take place on the Exchange (‘‘NYSE
Arca Realtime Reference Prices’’) and to
establish a flat monthly fee for that
service. There is no new rule text.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization 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 those statements may be examined at
the places specified in Item III below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
August 29, 2008.
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
28, 2008, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons, and is
approving the proposal on an
accelerated basis.
i. The Service. The Exchange proposes
to conduct a pilot program that will
allow the Exchange to test the viability
of NYSE Arca Realtime Reference
Prices. The Exchange intends for the
NYSE Arca Realtime Reference Prices
service to accomplish three goals:
1. To provide a low-cost service that
will make real-time prices widely
available to millions of casual investors;
2. To provide vendors with a real-time
substitute for delayed prices; and
3. To relieve vendors of
administrative burdens.
1 15
8 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
18:40 Sep 04, 2008
2 17
Jkt 214001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00091
Fmt 4703
Sfmt 4703
This pilot program is similar to pilot
programs that the Nasdaq Stock Market,
Inc. (‘‘Nasdaq’’) 3 and the New York
Stock Exchange LLC (‘‘NYSE’’) 4
recently established.
During the pilot program, the NYSE
Arca Realtime Reference Prices service
would allow Internet service providers,
traditional market data vendors, and
others (‘‘NYSE Arca-Only Vendors’’) to
make available NYSE Arca Realtime
Reference Prices on a real-time basis.5
The NYSE Arca Realtime Reference
Price information would include last
sale prices for all securities that trade on
the Exchange. It would include only
prices. It would not include the size of
each trade and would not include bid/
asked quotations.
The product responds to the
requirements for distribution of realtime last sale prices over the Internet for
reference purposes, rather than as a
basis for making trading decisions. The
Exchange contemplates that Internet
service providers with a substantial
customer base and traditional vendors
with large numbers of less active
investors are potential subscribers to
NYSE Arca Realtime Reference Prices.
During the pilot period, the Exchange
will not permit NYSE Arca-Only
Vendors to provide NYSE Arca Realtime
Reference Prices in a context in which
a trading or order-routing decision can
be implemented unless the NYSE ArcaOnly Vendor also provides consolidated
displays of Network A last sale prices
available in an equivalent manner, as
Rule 603(c)(1) of Regulation NMS
requires.
The service eliminates some of the
administrative burdens associated with
the current distribution of real-time
CTA prices. It features a flat, fixed
monthly vendor fee, no user-based fees,
no vendor reporting requirements, and
no professional or non-professional
subscriber agreements. It will make
NYSE Arca Realtime Reference Prices
widely available and without charge to
an unlimited number of casual
investors.
ii. The Fees. For the duration of the
pilot program, the Exchange proposes to
establish a monthly flat fee that will
entitle an NYSE Arca-Only Vendor to
receive access to the NYSE Arca
3 See Securities Exchange Act Release Nos. 57965
(June 16, 2008), 73 FR 35178 (June 20, 2008) (File
No. SR–NASDAQ–2006–060); and 57973 (June 16,
2008), 73 FR 35430 (June 23, 2008) (File No. SR–
NASDAQ–2008–050).
4 See Securities Exchange Act Release No. 57966
(June 16, 2008), 73 FR 35182 (June 20, 2008) (File
No. SR–NYSE–2007–04).
5 The Exchange notes that it will make the NYSE
Arca Realtime Reference Prices available to vendors
no earlier than it makes those prices available to the
processor under the CTA Plan.
E:\FR\FM\05SEN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 173 (Friday, September 5, 2008)]
[Notices]
[Pages 51870-51872]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-20612]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58436; File No. SR-DTC-2008-11]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing of a Proposed Rule Change To Implement a New Service
to Allow Issuers To Track and Limit the Number of Beneficial Owners for
an Individual CUSIP
August 27, 2008.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 6, 2008, 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
primarily by DTC. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\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 rule change is to implement a new service that
will allow issuers, either themselves or through an issuer-designated
administrator, to track and limit the number of beneficial owners for
an individual CUSIP. This service would be called the Security Holder
Tracking Service (``SH Tracking 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 such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Background
A group of investment banks requested that DTC assist them in
providing greater liquidity and access to capital for securities of
closely held
[[Page 51871]]
issuers that are traded in private equities markets.\2\ Specifically,
this group asked DTC to build a system that would allow these closely
held securities to be eligible for DTC's depository services while
allowing the issuer, typically through an agent, to monitor and control
the number and character (e.g., qualified institutional buyers or
``QIBs'') of beneficial owners of its securities.\3\ Currently, the
processing and settlement of transactions of such issues is
accomplished in a physical environment outside DTC.\4\
---------------------------------------------------------------------------
\2\ Among the securities at issue are those that are commonly
referred to as ``Rule 144A securities.'' These securities are
transacted pursuant to the terms of Rule 144A (17 CFR 230.144A),
which provides a safe harbor from the registration requirements of
Section 5 of the Securities Act of 1933. 15 U.S.C. 77e.
\3\ Issuers must control the number of beneficial owners
pursuant to certain regulatory registration and reporting
requirements. In order for issuers to be able to avoid the periodic
reporting requirements imposed by the Act they must not have more
than 500 beneficial owners. 15 U.S.C. 78l(g), 15 U.S.C. 78m(a), 15
U.S.C. 78o(d).
\4\ DTC already allows Rule 144A securities that are not
investment grade rated debt to be eligible for deposit, book-entry
delivery, and other depository services only if the Rule 144A
securities are designated for inclusion in a system of a self-
regulatory organization approved by the Commission for the reporting
of quotation and trade information of Rule 144A transactions (``SRO
system''). Securities Exchange Act Release No. 33327 (Dec. 13,
1993); 58 FR 67878 (Dec. 22, 1993).
---------------------------------------------------------------------------
2. Proposed Rule Change
DTC proposes to implement its new SH Tracking Service that would
facilitate the book-entry settlement and asset servicing for securities
that are privately transacted. This service would allow issuers to
track and limit the number of beneficial owners of its securities
(``Tracked Securities'').
The eligibility process for a Tracked Security to be made and
remain DTC-eligible would not change from DTC's current process.
However, under the new proposed system, DTC would be requested in
writing to set up a specific CUSIP for tracking such securities \5\ and
would be notified who will perform the function of the issuer's
administrator for the CUSIP in the SH Tracking Service.\6\ Upon receipt
of all of such documentation, DTC would make the CUSIP DTC-eligible and
would activate the tracking indicator on its security master file.
Additionally, once it is made eligible, DTC would perform asset
servicing for the issue.
---------------------------------------------------------------------------
\5\ DTC anticipates that this instruction will come from the
underwriter at the time of the initial distribution at DTC.
\6\ DTC anticipates that the issuer's transfer agent will serve
as its administrator.
---------------------------------------------------------------------------
The issuer's administrator would control movements of the
particular CUSIP for which it had been appointed. Once the tracking
indicator has been activated on the master file and the Administrator
has been appointed, no transfer of the securities would take place in
the Tracked Security without the approval of the administrator through
DTC's Inventory Management System (``IMS''). The administrator, based
on requirements of the issuer, would be solely responsible for
determining whether a transaction should be effected in DTC. Once
approved by the administrator, DTC would perform centralized book-entry
settlement. IMS would only allow an administrator access to view and
approve transactions for CUSIPs for which it had been appointed
administrator as reflected in DTC's records.
Because DTC would be relying solely on the instructions of the
administrator in order to effect settlement in Tracked Securities and
would have no knowledge of the number or character of the underlying
beneficial owners, use of the SH Tracking Service by any party would
constitute an agreement that DTC shall not be liable for any loss or
damages related to the use of the SH Tracking System. Each user of the
SH Tracking Service would agree to indemnify and hold harmless DTC and
its affiliates from and against any and all losses, damages,
liabilities, costs, judgments, charges, and expenses arising out of or
relating to the use of the SH Tracking Service.
The Tracked Securities would not be held as part of a Participant's
general free account and would not be considered eligible collateral in
DTC's settlement system.
Although the SH Tracking Service was developed to address the
specific concerns of Rule144A securities, in practice DTC envisions
that it could be utilized for other types of securities for which the
number or character of the beneficial owners requires some level of
control.
3. Fees
In an effort to recover the costs of building the SH Tracking
Service, DTC proposes the following fees to be added to its Fee
Schedule:
$25,000 per CUSIP for SH Tracking Services.
$5 per delivery and receive for Tracked Securities.
$5 per receive and delivery for reclaims of Tracked
Securities.
DTC believes that the proposed rule change is consistent with the
requirements of section 17A of the Act \7\ and the rules and
regulations thereunder as it allows for more efficient processing of
transactions that are currently being effected outside of DTC by
physical processing. Therefore, it will not adversely affect the
safeguarding of funds or securities in DTC's custody and control or for
which it is responsible.
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\7\ 15 U.S.C. 78q-1.
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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
DTC has not solicited or received written comments relating to the
proposed rule change. DTC will notify the Commission of any written
comments it receives.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) as the
Commission may designate up to ninety days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which the self-regulatory organization consents,
the Commission will:
(A) By order approve such proposed rule change or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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 No. SR-DTC-2008-11 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
[[Page 51872]]
All submissions should refer to File No. SR-DTC-2008-11. 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 Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. to 3 p.m. Copies of such filing also will be available for
inspection and copying at DTC's principal office and on DTC's Web site
at https://www.dtcc.com/legal/rule_filings/dtc/2008.php. 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 No. SR-DTC-2008-11 and should be
submitted on or before September 26, 2008.
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\8\ 17 CFR 200.30-3(a)(12).
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-20612 Filed 9-4-08; 8:45 am]
BILLING CODE 8010-01-P
