Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Relating to the Deposits Service Guide, 5876-5877 [E9-2162]
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5876
Federal Register / Vol. 74, No. 20 / Monday, February 2, 2009 / Notices
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2161 Filed 1–30–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59286; File No. SR–DTC–
2009–01]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Relating to the
Deposits Service Guide
January 23, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
January 5, 2009, 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. 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 persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change will amend
DTC’s Deposits Service Guide.
dwashington3 on PROD1PC60 with NOTICES
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.
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(iii).
3 17 CFR 240.19b–4(f)(4).
1 15
VerDate Nov<24>2008
15:03 Jan 30, 2009
Jkt 217001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Under this rule change, DTC will
amend its Deposits Service Guide by
eliminating the Legal Guidance System
(‘‘LGS’’) and by making other minor
clarifications.
LGS is a Participant Terminal Service
function that enables DTC participants
to obtain comprehensive information on
state and local regulations that must be
followed when making a legal deposit.
This function has been superseded by
the Securities Transfer Association
(‘‘STA’’) Guidelines that are consistent
with DTC’s processing and is now
obsolete. All DTC participants have
access to the STA guidelines through
the public STA Web site (https://
www.stai.org).
Additionally, DTC is making some
minor corrections and clarifications to
the Deposits Service Guide. Specifically,
an inadvertent reference to ‘‘restricted’’
deposit in the legal deposits section of
the Deposit Service Guide is removed;
clarifying language to the time it takes
for appropriate payments and exchange
of shares to be made through DTC’s
settlement area is being added,4 and
detailed narrative describing custody
services is being removed from the
Deposits Service Guide since such
narrative is contained in the Custody
Service Guide.
DTC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act
and the rules and regulations
thereunder applicable to DTC because it
will facilitate the prompt and accurate
clearance and settlement of securities
transactions by enhancing the
utilization of DTC’s existing services.
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
4 The language explains that ‘‘if the effective date
of the corporate action is three years or less,
allocation occurs one day after the deposit. If the
effective date is over three years, allocation of new
stock entitlement will not occur until DTC has
received the security from the agent. Allocations for
cash will not occur on any reorg deposit until DTC
receives the funds from the agent, regardless of the
effective date of the corporate action.’’
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 5 and Rule
19b–4(f)(4) 6 thereunder because it
effects a change in an existing service of
a registered clearing agency that does
not adversely affect the safeguarding of
securities and 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 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 rulecomment@sec.gov. Please include File
No. SR–DTC–2009–01 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File No.
SR–DTC–2009–01. 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
5 15
6 17
E:\FR\FM\02FEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
02FEN1
Federal Register / Vol. 74, No. 20 / Monday, February 2, 2009 / Notices
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.dtc.org/
impNtc/mor/>. 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. DTC–2009–01
and should be submitted on or before
February 23, 2009.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2162 Filed 1–30–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59274; File No. SR–FINRA–
2009–001]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Exemptive
Criteria in FINRA Rule 7470
dwashington3 on PROD1PC60 with NOTICES
January 22, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on January 7,
2009, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Nov<24>2008
15:03 Jan 30, 2009
Jkt 217001
change pursuant to Section
19(b)(3)(A)(iii) of the Act,3 and Rule
19b–4(f)(6) thereunder,4 which renders
the proposal effective upon receipt of
this filing by the Commission. On
January 16, 2009, FINRA submitted
Amendment No. 1 to the proposed rule
change. The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 7470 to revise the criteria
necessary to qualify for an exemption
from the order recording and data
transmission requirements in the Order
Audit Trail System (‘‘OATS’’) Rules for
manual orders.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s public reading room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA 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. Purpose
On September 28, 2005, the SEC
approved amendments to the OATS
Rules that, among other things,
permitted FINRA to grant exemptive
relief from the OATS reporting
requirements for manual orders.5 The
exemptive authority was broadened in
2006 to give FINRA the authority to
exempt members from the OATS
recording requirements, in addition to
the reporting requirements.6 At a
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 52521
(September 28, 2005), 70 FR 57909 (October 4,
2005).
6 See Securities Exchange Act Release No. 53580
(March 30, 2006), 71 FR 17529 (April 6, 2006). In
2006, the exemptive provision was also relocated
from NASD Rule 6955(d) to NASD Rule 6958. As
5877
minimum, members must meet the
following criteria to be eligible to
request an exemption from the OATS
recording and reporting requirements
for manual orders: (1) The member and
current control affiliates and associated
persons of the member have not been
subject within the last five years to any
final disciplinary action, and within the
last ten years to any disciplinary action
involving fraud; (2) the member has
annual revenues of less than $2 million;
(3) the member does not conduct any
market making activities in Nasdaq
Stock Market equity securities; (4) the
member does not execute principal
transactions with its customers (with
limited exceptions for principal
transactions executed pursuant to error
corrections); and (5) the member does
not conduct clearing or carrying
activities for other firms.
In addition to the amendments to the
exemptive provision in the OATS Rules
in 2006, the SEC separately approved
amendments to the OATS Rules to
require members to record and report to
OATS order information relating to OTC
equity securities.7 The extension of the
OATS requirements to OTC equity
securities became effective on February
4, 2008.8
When the Commission approved the
exemptive provision in the OATS Rules
and the amendment extending FINRA’s
authority under that provision in 2006,
the OATS Rules applied only to equity
securities listed on the Nasdaq Stock
Market. Consequently, at that time, one
of the minimum criteria for a member to
request an exemption from the OATS
requirements, specifically the
requirement that the member not
conduct any market making activities,
was limited to Nasdaq Stock Market
equity securities. This requirement,
similar to the other exemptive criteria
such as the prohibition on principal
transactions with customers and
conducting clearing or carrying
activities for other firms, reflects
FINRA’s conclusion that exemptive
relief should only be available to
members that conduct very limited
types of trading activities.
When the OATS recording and
reporting requirements were extended
to OTC equity securities, the exemptive
provision was not similarly extended to
account for market-making activities in
OTC equity securities. The proposed
rule change would amend the minimum
4 17
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
of December 15, 2008, NASD Rule 6958 was
renumbered as FINRA Rule 7470. See FINRA
Regulatory Notice 08–57 (October 2008).
7 See Securities Exchange Act Release No. 54585
(October 10, 2006), 71 FR 61112 (October 17, 2006).
8 See Securities Exchange Act Release No. 55440
(March 9, 2007), 72 FR 12852 (March 19, 2007).
E:\FR\FM\02FEN1.SGM
02FEN1
]]>Agencies
[Federal Register Volume 74, Number 20 (Monday, February 2, 2009)]
[Notices]
[Pages 5876-5877]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2162]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59286; File No. SR-DTC-2009-01]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Relating
to the Deposits Service Guide
January 23, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 5, 2009, 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. 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 persons.
---------------------------------------------------------------------------
\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 will amend DTC's Deposits 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 such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Under this rule change, DTC will amend its Deposits Service Guide
by eliminating the Legal Guidance System (``LGS'') and by making other
minor clarifications.
LGS is a Participant Terminal Service function that enables DTC
participants to obtain comprehensive information on state and local
regulations that must be followed when making a legal deposit. This
function has been superseded by the Securities Transfer Association
(``STA'') Guidelines that are consistent with DTC's processing and is
now obsolete. All DTC participants have access to the STA guidelines
through the public STA Web site (https://www.stai.org).
Additionally, DTC is making some minor corrections and
clarifications to the Deposits Service Guide. Specifically, an
inadvertent reference to ``restricted'' deposit in the legal deposits
section of the Deposit Service Guide is removed; clarifying language to
the time it takes for appropriate payments and exchange of shares to be
made through DTC's settlement area is being added,\4\ and detailed
narrative describing custody services is being removed from the
Deposits Service Guide since such narrative is contained in the Custody
Service Guide.
---------------------------------------------------------------------------
\4\ The language explains that ``if the effective date of the
corporate action is three years or less, allocation occurs one day
after the deposit. If the effective date is over three years,
allocation of new stock entitlement will not occur until DTC has
received the security from the agent. Allocations for cash will not
occur on any reorg deposit until DTC receives the funds from the
agent, regardless of the effective date of the corporate action.''
---------------------------------------------------------------------------
DTC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules and regulations
thereunder applicable to DTC because it will facilitate the prompt and
accurate clearance and settlement of securities transactions by
enhancing the utilization of DTC's existing services.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(4) \6\ thereunder
because it effects a change in an existing service of a registered
clearing agency that does not adversely affect the safeguarding of
securities and 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 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-comment@sec.gov. Please include
File No. SR-DTC-2009-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-DTC-2009-01. 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
[[Page 5877]]
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.dtc.org/
impNtc/mor/>. 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. DTC-
2009-01 and should be submitted on or before February 23, 2009.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-2162 Filed 1-30-09; 8:45 am]
BILLING CODE 8011-01-P
