Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Revise Its Fee Schedule, 7942-7943 [E9-3576]
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Federal Register / Vol. 74, No. 33 / Friday, February 20, 2009 / Notices
applicable to DTC. In particular, the
Commission believes the proposal is
consistent with Section 17A(b)(3)(F) of
the Act,6 which requires that the rules
of a registered clearing agency are
designed to, among other things, remove
impediments to the perfection of the
mechanism of a national system for the
prompt and accurate clearance and
settlement of securities transactions.
When DTC established the SRO
Requirement as a condition of eligibility
for Rule 144A Securities, DTC and the
Commission envisioned that an SRO
Rule 144A System would provide
comprehensive safeguards to facilitate
the SRO’s ability to monitor compliance
with Rule 144A. However, the only SRO
Rule 144A System that was developed
was the NASD’s PORTAL Market
System (‘‘PORTAL’’). Additionally,
PORTAL neither developed as
anticipated nor included the safeguards
contemplated by the DTC requirement.7
Thus, the Commission agrees with DTC
that the SRO Requirement is no longer
necessary or practical to achieve the
purpose for which it was added to
DTC’s rules. In addition, the
requirement appears to deter the
development of alternative markets for
Rule 144A Securities that could avail
traders in 144A Securities of DTC’s
automated clearance, settlement, and
risk management services.8
Accordingly, DTC’s removal of the SRO
Requirement should expand the number
of restricted securities that can become
eligible for DTC’s clearance and
settlement services thus helping to
perfect the mechanism of a national
system for the prompt and accurate
clearance and settlement of securities
transactions, which is consistent with
Section 17A(b)(3)(F) of the Act.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular Section 17A of the Act 9 and
the rules and regulations thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (File No. SR–
6 15
U.S.C. 78q-1(b)(3)(F).
Exchange Release No. 56172 (Jul. 31,
2007), 72 FR 44196 (Aug. 7, 2007) [File No. SR–
NASDAQ–2006–65].
8 In a 2007 order approving Nasdaq’s
reestablishment of its PORTAL market, the
Commission acknowledged comments suggesting
such and encouraged DTC to review its SRO
Requirement. Supra note 7.
9 15 U.S.C. 78q–1.
10 15 U.S.C. 78s(b)(2).
7 Securities
VerDate Nov<24>2008
17:55 Feb 19, 2009
Jkt 217001
DTC–2008–13) be and hereby is
approved.11
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–3573 Filed 2–19–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59409; File No. SR–DTC–
2009–03]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Order Granting Accelerated
Approval of Proposed Rule Change To
Revise Its Fee Schedule
February 13, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
January 13, 2009, The Depository Trust
Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) and on February 13,
2009, amended 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 and order to
solicit comments on the rule change
from interested parties and to grant
accelerated approval of the proposal.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the rule change is to
revise fees for certain DTC services.
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
11 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
12 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 The Commission has modified the text of the
summaries prepared by DTC.
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
DTC is proposing to revise fees for
certain services. The revisions include:
(i) Decreases of Settlement Services fees
to realign fees with costs incurred in
providing the services; (ii) decreases of
Custody and Dividend service fees to
realign fees with costs scaled to reflect
processing complexity creating fee
simplification and transparency; (iii)
increases of Reorganization services fees
to realign fees with costs incurred due
to low volume tender offers which are
subject to extensive monitoring; and (iv)
increases of Custody and Deposits fees
to realign fees with costs associated
with intensive photocopy and research
requests.
In addition, DTC will increase certain
disincentive fees to discourage activities
that increase industry inefficiencies.
These revisions include: fee increases
for underwriters who have incomplete,
inaccurate, or untimely submission of
information in connection with DTC’s
Underwriting services and fee increases
for Withdrawals by Transfer and
Deposits (in connection with DTC’s
continuing efforts to discourage
continued traffic in physical securities
and to discourage erroneous requests).
The proposed fee revisions are
consistent with DTC’s overall pricing
philosophy to align service fees with
underlying costs, discourage manual
and exception processing, and
encourage immobilization and
dematerialization of securities. Except
as otherwise noted above, the effective
date for these fee adjustments is January
2, 2009.
The proposed rule change is
consistent with Section 17A of the Act,3
as amended, because it clarifies and
updates DTC’s fee schedule. As such, it
provides for the equitable allocation of
fees among its participants.
(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.
3 15
E:\FR\FM\20FEN1.SGM
U.S.C. 78q–1.
20FEN1
Federal Register / Vol. 74, No. 33 / Friday, February 20, 2009 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Section 17A(b)(3)(D) of the Act
requires that the rules of a clearing
agency provide for the equitable
allocation of reasonable dues, fees, and
other charges among its participants.
The Commission finds that DTC’s
proposed rule change is consistent with
DTC’s obligation under the Act because
it clarifies and updates DTC’s fee
schedule.
The Commission finds good cause for
approving the proposed rule change
prior to the thirtieth day after the date
of publication of notice of filing in the
Federal Register because the proposed
rule change originally was filed
previously but had to be refiled due to
a technical issue.
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–DTC–2009–03 on the
subject line.
• 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
Number SR–DTC–2009–03. 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
17:55 Feb 19, 2009
V. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 4
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,5 that the
proposed rule change (File No. SR–
DTC–2009–03) be, and hereby is,
approved.6
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–3576 Filed 2–19–09; 8:45 am]
BILLING CODE 8011–01–P
Paper Comments
VerDate Nov<24>2008
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filings also will be
available for inspection and copying at
the principal office of DTC and on
DTC’s Web site at https://www.dtcc.com/
downloads/legal/rule_filings/2009/dtc/
2009–03.pdf . 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–
2009–03 and should be submitted on or
before March 13, 2009.
Jkt 217001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59392; File No. SR–
NASDAQ–2009–006]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Establish a
Post-Only Order
February 11, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
28, 2009, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
4 15
U.S.C. 78q–1.
U.S.C. 78s(b)(2).
6 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
7 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
5 15
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
7943
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 Nasdaq. Nasdaq filed
the proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
it 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
Nasdaq proposes to establish a PostOnly Order. The text of the proposed
rule change is below. Proposed new
language is italicized.5
*
*
*
*
*
4751. Definitions
(a)–(e) No change.
(f) No change.
(1)–(9) No change.
(10) ‘‘Post-Only Orders’’ are orders
that if, at the time of entry, would lock
an order on the System, the order will
be re-priced and displayed by the
System to one minimum price
increment (i.e., $0.01 or $0.0001) below
the current low offer (for bids) or above
the current best bid (for offers).
(g)–(i) No change.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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. Nasdaq 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
In order to provide enhanced
functionality, Nasdaq proposes to adopt
an additional order type known as the
Post-Only Order. A Post-Only Order is
an order that does not remove liquidity
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 Changes are marked to the rule text that appears
in the electronic manual of Nasdaq found at
https://nasdaq.cchwallstreet.com.
4 17
E:\FR\FM\20FEN1.SGM
20FEN1
]]>Agencies
[Federal Register Volume 74, Number 33 (Friday, February 20, 2009)]
[Notices]
[Pages 7942-7943]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-3576]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59409; File No. SR-DTC-2009-03]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change To Revise Its Fee Schedule
February 13, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 13, 2009, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') and on February 13, 2009, amended
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 and order to solicit comments on the rule change from
interested parties and to grant accelerated approval of the proposal.
---------------------------------------------------------------------------
\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 revise fees for certain DTC
services.
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 DTC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
DTC is proposing to revise fees for certain services. The revisions
include: (i) Decreases of Settlement Services fees to realign fees with
costs incurred in providing the services; (ii) decreases of Custody and
Dividend service fees to realign fees with costs scaled to reflect
processing complexity creating fee simplification and transparency;
(iii) increases of Reorganization services fees to realign fees with
costs incurred due to low volume tender offers which are subject to
extensive monitoring; and (iv) increases of Custody and Deposits fees
to realign fees with costs associated with intensive photocopy and
research requests.
In addition, DTC will increase certain disincentive fees to
discourage activities that increase industry inefficiencies. These
revisions include: fee increases for underwriters who have incomplete,
inaccurate, or untimely submission of information in connection with
DTC's Underwriting services and fee increases for Withdrawals by
Transfer and Deposits (in connection with DTC's continuing efforts to
discourage continued traffic in physical securities and to discourage
erroneous requests).
The proposed fee revisions are consistent with DTC's overall
pricing philosophy to align service fees with underlying costs,
discourage manual and exception processing, and encourage
immobilization and dematerialization of securities. Except as otherwise
noted above, the effective date for these fee adjustments is January 2,
2009.
The proposed rule change is consistent with Section 17A of the
Act,\3\ as amended, because it clarifies and updates DTC's fee
schedule. As such, it provides for the equitable allocation of fees
among its participants.
---------------------------------------------------------------------------
\3\ 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 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.
[[Page 7943]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Section 17A(b)(3)(D) of the Act requires that the rules of a
clearing agency provide for the equitable allocation of reasonable
dues, fees, and other charges among its participants. The Commission
finds that DTC's proposed rule change is consistent with DTC's
obligation under the Act because it clarifies and updates DTC's fee
schedule.
The Commission finds good cause for approving the proposed rule
change prior to the thirtieth day after the date of publication of
notice of filing in the Federal Register because the proposed rule
change originally was filed previously but had to be refiled due to a
technical issue.
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-2009-03 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 Number SR-DTC-2009-03. 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. and 3
p.m. Copies of such filings also will be available for inspection and
copying at the principal office of DTC and on DTC's Web site at https://
www.dtcc.com/downloads/legal/rule_filings/2009/dtc/2009-03.pdf . 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-2009-03 and should be
submitted on or before March 13, 2009.
V. Conclusion
On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of Section 17A of the Act \4\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\5\ that the proposed rule change (File No. SR-DTC-2009-03) be, and
hereby is, approved.\6\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2).
\6\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
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. E9-3576 Filed 2-19-09; 8:45 am]
BILLING CODE 8011-01-P
