Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Enable The Depository Trust Company To Collect and Pass Through Certain Fees Owed by Participants to Transfer Agents in Connection With the Deposit and Withdrawal at Custodian System, 49048-49049 [2012-19980]
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<![CDATA[
49048
Federal Register / Vol. 77, No. 158 / Wednesday, August 15, 2012 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–19978 Filed 8–14–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67629; File No. SR–DTC–
2012–05]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Enable The
Depository Trust Company To Collect
and Pass Through Certain Fees Owed
by Participants to Transfer Agents in
Connection With the Deposit and
Withdrawal at Custodian System
August 9, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
June 30, 2012, The Depository Trust
Company (‘‘DTC’’) 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
primarily by DTC. DTC filed the
proposal pursuant to Section
19(b)(3)(A)(ii) of the Act,2 and Rule
19b–4(f)(2) 3 thereunder 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 purpose of this proposed rule
change is to enable DTC to collect and
pass through certain fees owed by
participants to transfer agents in
connection with the Deposit and
Withdrawal at Custodian (‘‘DWAC’’)
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,
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.4
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
DWAC can be utilized to
electronically transfer securities
between Participants and transfer
agents, acting as custodians.5 DWAC is
designed for utilization by any
Participant with respect to certain issues
of securities in DTC’s Fast Automated
Securities Transfer program (‘‘FAST’’).
For securities that are part of the FAST
program, the transfer agents hold the
securities registered in the name of
DTC’s nominee, Cede & Co., in the form
of balance certificates. As additional
securities are deposited or withdrawn
from DTC, the transfer agents adjust the
denomination of the certificate as
appropriate, and electronically confirm
these changes with DTC. Transfer agents
charge Participants a fee for the
processing of a DWAC request.
Participants must submit a check in the
amount of the DWAC fee upon
presentation of the transfer instructions,
or the transfer agent invoices the
Participant.
In order to facilitate a more efficient
DWAC fee collection process, DTC is
proposing to collect and pass through
DWAC fees owed by Participants to
transfer agents.6 DTC will only collect
DWAC fees from an entity that is a
Participant of DTC at the close of
business on the 7th business day of each
month that DTC is collecting the fee.
The introduction of this process has
been discussed with and endorsed by
the Securities Transfer Association.
Furthermore, DTC has discussed this
proposal with several of its Participants
and all agree that it should be
implemented as soon as possible. In
order to cover costs incurred in
collecting fees associated with DWAC
transactions, DTC will retain a monthly
collection charge equal to 1.5% of the
DWAC fee collected on behalf of each
transfer agent.7 This collection charge
will appear in the DTC Fee Schedule as
follows:
Service
Current fee
Proposed fee
Per
Collection of transfer agent DWAC fees ......................
N/A
1.5%
Per monthly amount collected for each transfer agent.
srobinson on DSK4SPTVN1PROD with NOTICES
DTC expects to begin collecting DWAC
fees in the first quarter of 2013. DTC
will announce the implementation date
by Important Notice.
DTC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act,8
and the rules and regulations
thereunder applicable to it because the
proposed fee change is designed to
provide for the equitable allocation of
reasonable fees and charges among the
users of DTC’s services.
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(ii).
3 17 CFR 240.19b–4(f)(2).
4 The Commission has modified the text of the
summaries prepared by DTC.
1 15
VerDate Mar<15>2010
17:49 Aug 14, 2012
Jkt 226001
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
the Commission of any written
comments received by DTC.
DTC does not believe that the
proposed rule change will have any
impact, or impose any burden, on
competition.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Written comments relating to the
proposed rule change have not yet been
solicited or received. DTC will notify
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A)(ii) 9 of the Act and Rule 19b–
4(f)(2) 10 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
5 For more information about the DWAC service,
see Securities Exchange Act Release No. 29952
(November 18, 1991) 56 FR 59307 (November 25,
1991) (SR–DTC–91–16) (order granting approval of
the DWAC service).
6 Transfer agents that use DTC’s DWAC services
are not required to use this collection service.
7 DTC is charging this 1.5% collection fee to the
transfer agent to cover its cost of administering the
program.
8 15 U.S.C. 78q–1.
9 15 U.S.C. 78s(b)(3)(A)(ii).
10 17 CFR 240.19b–4(f)(2).
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
PO 00000
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Fmt 4703
Sfmt 4703
E:\FR\FM\15AUN1.SGM
15AUN1
Federal Register / Vol. 77, No. 158 / Wednesday, August 15, 2012 / Notices
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:
srobinson on DSK4SPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
DTC–2012–05 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–2012–05. This file
number should be included on the
subject line if email 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 Web site viewing and
printing in the Commission’s Public
Reference Section, 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
will also be available for inspection and
copying at the principal office of DTC
and on DTC’s Web site (https://www.
dtcc.com/downloads/legal/rule_filings/
2012/dtc/DTC_Rule_Filing_2012_05.
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–2012–05 and should
VerDate Mar<15>2010
17:49 Aug 14, 2012
Jkt 226001
be submitted on or before September 5,
2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
49049
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[FR Doc. 2012–19980 Filed 8–14–12; 8:45 am]
[Release No. 34–67628; File No. SR–ISE–
2012–71]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend Fees for Certain
Regular and Complex Orders Executed
on the Exchange
August 9, 2012.
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 August 1,
2012, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which items have been
prepared by the self-regulatory
organization. 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 ISE is proposing to amend
transaction fees for certain regular and
complex orders executed on the
Exchange. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.ise.com), at the
principal office of the Exchange, and at
the Commission’s Public Reference
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, 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
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
The Exchange currently assesses a per
contract transaction charge and provides
rebates to market participants that add
or remove liquidity from the Exchange
(‘‘maker/taker fees and rebates’’) in a
number of options classes (the ‘‘Select
Symbols’’).3 For removing liquidity in
the Select Symbols, the Exchange
currently charges a taker fee of: (i) $0.29
per contract for Market Maker 4 and
Market Maker Plus 5 orders, (ii) $0.35
per contract for Non-ISE Market Maker 6
orders, (iii) $0.30 per contract for Firm
Proprietary/Broker-Dealer and
Professional Customer 7 orders, and (iv)
$0.20 per contract for Priority
3 Options classes subject to maker/taker fees and
rebates are identified by their ticker symbol on the
Exchange’s Schedule of Fees.
4 The term ‘‘Market Makers’’ refers to
‘‘Competitive Market Makers’’ and ‘‘Primary Market
Makers’’ collectively. See ISE Rule 100(a)(25).
5 A Market Maker Plus is an ISE Market Maker
who is on the National Best Bid or National Best
Offer 80% of the time for series trading between
$0.03 and $5.00 (for options whose underlying
stock’s previous trading day’s last sale price was
less than or equal to $100) and between $0.10 and
$5.00 (for options whose underlying stock’s
previous trading day’s last sale price was greater
than $100) in premium in each of the front two
expiration months and 80% of the time for series
trading between $0.03 and $5.00 (for options whose
underlying stock’s previous trading day’s last sale
price was less than or equal to $100) and between
$0.10 and $5.00 (for options whose underlying
stock’s previous trading day’s last sale price was
greater than $100) in premium across all expiration
months in order to receive the rebate. The Exchange
determines whether a Market Maker qualifies as a
Market Maker Plus at the end of each month by
looking back at each Market Maker’s quoting
statistics during that month. A Market Maker’s
single best and single worst overall quoting days
each month, on a per symbol basis, are excluded
in calculating whether a Market Maker qualifies for
this rebate, if doing so qualifies a Market Maker for
the rebate. If at the end of the month, a Market
Maker meets the Exchange’s stated criteria, the
Exchange rebates $0.10 per contract for transactions
executed by that Market Maker during that month.
The Exchange provides Market Makers a report on
a daily basis with quoting statistics so that Market
Makers can determine whether or not they are
meeting the Exchange’s stated criteria.
6 A Non-ISE Market Maker, or Far Away Market
Maker (‘‘FARMM’’), is a market maker as defined
in Section 3(a)(38) of the Securities Exchange Act
of 1934, as amended, registered in the same options
class on another options exchange.
7 A Professional Customer is a person who is not
a broker/dealer and is not a Priority Customer.
E:\FR\FM\15AUN1.SGM
15AUN1
]]>Agencies
[Federal Register Volume 77, Number 158 (Wednesday, August 15, 2012)]
[Notices]
[Pages 49048-49049]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19980]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67629; File No. SR-DTC-2012-05]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Enable The Depository Trust Company To Collect and Pass Through Certain
Fees Owed by Participants to Transfer Agents in Connection With the
Deposit and Withdrawal at Custodian System
August 9, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 30, 2012, The
Depository Trust Company (``DTC'') 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
primarily by DTC. DTC filed the proposal pursuant to Section
19(b)(3)(A)(ii) of the Act,\2\ and Rule 19b-4(f)(2) \3\ thereunder 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)(ii).
\3\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of this proposed rule change is to enable DTC to
collect and pass through certain fees owed by participants to transfer
agents in connection with the Deposit and Withdrawal at Custodian
(``DWAC'') 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, 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.\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
DWAC can be utilized to electronically transfer securities between
Participants and transfer agents, acting as custodians.\5\ DWAC is
designed for utilization by any Participant with respect to certain
issues of securities in DTC's Fast Automated Securities Transfer
program (``FAST''). For securities that are part of the FAST program,
the transfer agents hold the securities registered in the name of DTC's
nominee, Cede & Co., in the form of balance certificates. As additional
securities are deposited or withdrawn from DTC, the transfer agents
adjust the denomination of the certificate as appropriate, and
electronically confirm these changes with DTC. Transfer agents charge
Participants a fee for the processing of a DWAC request. Participants
must submit a check in the amount of the DWAC fee upon presentation of
the transfer instructions, or the transfer agent invoices the
Participant.
---------------------------------------------------------------------------
\5\ For more information about the DWAC service, see Securities
Exchange Act Release No. 29952 (November 18, 1991) 56 FR 59307
(November 25, 1991) (SR-DTC-91-16) (order granting approval of the
DWAC service).
---------------------------------------------------------------------------
In order to facilitate a more efficient DWAC fee collection
process, DTC is proposing to collect and pass through DWAC fees owed by
Participants to transfer agents.\6\ DTC will only collect DWAC fees
from an entity that is a Participant of DTC at the close of business on
the 7th business day of each month that DTC is collecting the fee. The
introduction of this process has been discussed with and endorsed by
the Securities Transfer Association. Furthermore, DTC has discussed
this proposal with several of its Participants and all agree that it
should be implemented as soon as possible. In order to cover costs
incurred in collecting fees associated with DWAC transactions, DTC will
retain a monthly collection charge equal to 1.5% of the DWAC fee
collected on behalf of each transfer agent.\7\ This collection charge
will appear in the DTC Fee Schedule as follows:
---------------------------------------------------------------------------
\6\ Transfer agents that use DTC's DWAC services are not
required to use this collection service.
\7\ DTC is charging this 1.5% collection fee to the transfer
agent to cover its cost of administering the program.
----------------------------------------------------------------------------------------------------------------
Service Current fee Proposed fee Per
----------------------------------------------------------------------------------------------------------------
Collection of transfer agent DWAC fees....... N/A 1.5% Per monthly amount collected
for each transfer agent.
----------------------------------------------------------------------------------------------------------------
DTC expects to begin collecting DWAC fees in the first quarter of 2013.
DTC will announce the implementation date by Important Notice.
DTC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act,\8\ and the rules and
regulations thereunder applicable to it because the proposed fee change
is designed to provide for the equitable allocation of reasonable fees
and charges among the users of DTC's services.
---------------------------------------------------------------------------
\8\ 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.
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)(ii) \9\ of the Act and Rule 19b-4(f)(2) \10\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such
[[Page 49049]]
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)(ii).
\10\ 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 email to rule-comments@sec.gov. Please include
File Number SR-DTC-2012-05 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-2012-05. This file
number should be included on the subject line if email 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 Web site viewing and
printing in the Commission's Public Reference Section, 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 will also be available for
inspection and copying at the principal office of DTC and on DTC's Web
site (https://www.dtcc.com/downloads/legal/rule_filings/2012/dtc/DTC_Rule_Filing_2012_05.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-2012-05
and should be submitted on or before September 5, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-19980 Filed 8-14-12; 8:45 am]
BILLING CODE 8011-01-P
