Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Updates to Its Custody Service, 52082-52083 [2012-21107]
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Federal Register / Vol. 77, No. 167 / Tuesday, August 28, 2012 / Notices
SECURITIES AND EXCHANGE
COMMISSION
Program and Rule 614 in its Rules and
in its By-Laws.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67706; File No. SR–OCC–
2012–10]
III. Discussion
[Release No. 34–67707; File No. SR–DTC–
2012–06]
Self-Regulatory Organizations; The
Options Clearing Corporation; Order
Approving Proposed Rule Change To
Amend OCC’s By-Laws and Rules To
Terminate OCC’s Pledge Program
August 22, 2012.
I. Introduction
On June 28, 2012, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change SR–OCC–2012–10
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b-4 thereunder.2
The proposed rule change was
published for comment in the Federal
Register on July 16, 2012.3 The
Commission received no comment
letters. For the reasons discussed below,
the Commission is granting approval of
the proposed rule change.
srobinson on DSK4SPTVN1PROD with NOTICES
II. Description
The proposed rule change would
terminate OCC’s pledge program (the
‘‘Program’’). Since implementation of
the Program, only a limited number of
clearing members participated and those
that did participate did so on a sporadic
basis. OCC is eliminating the Program in
its entirety.
The Program was adopted by OCC in
the early 1980s to facilitate the ability of
an OCC clearing member to finance
positions by permitting the clearing
member to pledge unsegregated long
positions in cleared securities (other
than securities futures) for a loan of
cash. The Program was initially
designed for, and used by, firms clearing
market maker business; however, use of
the Program diminished as market
making operations were acquired by
larger wire houses. While OCC
occasionally receives an inquiry
regarding the Program, it has been
essentially dormant for some time. OCC
recently reviewed the Program and
determined that any potential benefits
that OCC may gain through updating the
Program are greatly offset by the
resources required for such
modernization. Accordingly, OCC is
terminating the Program in its entirety.
OCC is eliminating Rule 614 in its
entirety as well as references to the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Securities Exchange Act Release No. 34–67392
(July 10, 2012), 77 FR 41835 (July 16, 2012).
2 17
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16:39 Aug 27, 2012
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Section 19(b)(2)(C) of the Act 4 directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if it finds that such
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to such organization. Section
17A(b)(3)(F) of the Act 5 requires, among
other things, that the rules of a clearing
agency are designed to remove
impediments to and perfect the
mechanism of a national system for the
prompt and accurate clearance and
settlement of securities transactions.
The changes to OCC’s Rules and ByLaws are designed to allow OCC to
remove a rarely used operational
function and focus its resources on core
clearing operations. Moreover, the
elimination of the Program will not
materially affect clearing members given
its limited and infrequent use. The rule
change is not inconsistent with any
rules of OCC, including any proposed to
be amended. As a result, the rule change
is consistent with the requirements of
Section 17A(b)(3)(F) of the Act.
IV. 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 6
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 7, that the
proposed rule change (File No. SR–
OCC–2012–10) be, and hereby is,
approved.8
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–21106 Filed 8–27–12; 8:45 am]
BILLING CODE 8011–01–P
4 15
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1(b)(3)(F).
6 15 U.S.C. 78q–1.
7 15 U.S.C. 78s(b)(2).
8 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).
9 17 CFR 200.30–3(a)(12).
5 15
PO 00000
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Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Make
Updates to Its Custody Service
August 22, 2012.
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 August
13, 2012, 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) 3 of the Act and Rule
19b–4(f)(4)(i) 4 thereunder, so that the
proposed rule change was effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested parties.
I. Self-Regulatory Organization’s
Statement of Terms of Substance of the
Proposed Rule Change
The purpose of the proposed rule
change is to update the DTC Custody
Guide with respect to which assets are
eligible to be held for Custody
Safekeeping and to make other
administrative changes and
clarifications.
II. Self-Regulatory Organization’s
Statement of Purpose of, and Statutory
Basis for, the Proposed Rule Change
In its filing with the Commission,
DTC included statements concerning
the purpose 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 Purpose of, and Statutory
Basis for, the Proposed Rule Change
The Custody Service enables
Participants that hold securities which
are not presently eligible for book-entry
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4)(i).
2 17
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Federal Register / Vol. 77, No. 167 / Tuesday, August 28, 2012 / Notices
services at DTC to deposit those
securities with DTC for safe-keeping and
certain limited depository services.
Certificates deposited through the
Custody Service are held by DTC in
customer or Participant name and are
not transferred into DTC’s nominee
name. With this rule filing, DTC is
making the following updates to the
Custody Guide:
• Clarifying which assets are eligible
to be held for Custody Safekeeping by
noting DTC’s Custody Service will hold
certain ‘‘Non-Standard’’ type assets,
fully disclosed, for safekeeping only.
These assets include, but are not limited
to, Option Agreements and Warrant to
Purchase. DTC does not accept any
liability should such assets be lost,
stolen or destroyed. Depositing
participants assume full liability as well
as responsibility for replacement of lost,
stolen or destroyed fully disclosed
‘‘Non-Standard’’ assets;
• Modifying the timeframe within
which DTC must receive settlement
delivery instructions from Participants
in order to meet industry cutoff times;
• Removing duplicative language and
language regarding the funds only
settlement system and the dividend
settlement system since such systems
were incorporated into the Envelope
Settlement Service;5 and
• Making clarifications regarding the
description of custody services, the
vault, inputs and methods of
notification.
DTC believes that the proposed rule
change is consistent with the
requirements of the Securities Exchange
Act of 1934, as amended (the ‘‘Act’’),
and the rules and regulations
thereunder, applicable to DTC in that it
promotes efficiencies in the prompt and
accurate clearance and settlement of
securities transactions by enhancing the
utilization of DTC’s existing services.
Moreover, the proposed rule change
reduces the costs, inefficiencies and
risks associated with the physical safekeeping of securities by clarifying the
procedures associated with the Custody
Service.
srobinson on DSK4SPTVN1PROD with NOTICES
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.
5 For more information regarding this changes,
see Securities Exchange Act Release No. 34–65032
(August 4, 2011), 76 FR 49511 (August 10, 2011)
[File No. SR–NSCC–2011–04].
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16:39 Aug 27, 2012
Jkt 226001
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 was filed
pursuant to Section 19(b)(3)(A) 6 of the
Act and Rule 19b–4(f)(4)(i) 7 thereunder
and thus became effective upon filing
because it is effecting a change in an
existing service of DTC that does not
adversely affect the safeguarding of
securities or funds in the custody or
control of DTC or for which it is
responsible and does not significantly
affect the respective rights or obligations
of DTC or persons using the service. At
any time within sixty days of the filing
of such rule change, the Commission
summarily may temporarily suspend
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.
52083
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 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
will also be available for inspection and
copying at the principal office of DTC
and on DTC’s Web site at https://
dtcc.com/downloads/legal/rule_filings/
2012/dtc/SR–DTC–2012–06.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–2012–06 and should
be submitted on or before September 18,
2012.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
No. SR–DTC–2012–06 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send 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–2012–06. 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
[FR Doc. 2012–21107 Filed 8–27–12; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–67715; File No. SR–
NYSEArca–2012–88]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change To List and Trade Shares
of the RiverFront Strategic Income
Fund Under NYSE Arca Equities Rule
8.600
August 22, 2012.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’) 2 and Rule 19b–4
thereunder,3 notice is hereby given that,
on August 10, 2012, NYSE Arca, Inc.
(the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
8 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
6 15
7 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4)(i).
Frm 00119
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28AUN1
]]>Agencies
[Federal Register Volume 77, Number 167 (Tuesday, August 28, 2012)]
[Notices]
[Pages 52082-52083]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-21107]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67707; File No. SR-DTC-2012-06]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Make Updates to Its Custody Service
August 22, 2012.
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 August 13, 2012, 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) \3\ of the Act and Rule 19b-4(f)(4)(i)
\4\ thereunder, so that the proposed rule change was effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4)(i).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule change is to update the DTC
Custody Guide with respect to which assets are eligible to be held for
Custody Safekeeping and to make other administrative changes and
clarifications.
II. Self-Regulatory Organization's Statement of Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, DTC included statements
concerning the purpose 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 Purpose of, and
Statutory Basis for, the Proposed Rule Change
The Custody Service enables Participants that hold securities which
are not presently eligible for book-entry
[[Page 52083]]
services at DTC to deposit those securities with DTC for safe-keeping
and certain limited depository services. Certificates deposited through
the Custody Service are held by DTC in customer or Participant name and
are not transferred into DTC's nominee name. With this rule filing, DTC
is making the following updates to the Custody Guide:
Clarifying which assets are eligible to be held for
Custody Safekeeping by noting DTC's Custody Service will hold certain
``Non-Standard'' type assets, fully disclosed, for safekeeping only.
These assets include, but are not limited to, Option Agreements and
Warrant to Purchase. DTC does not accept any liability should such
assets be lost, stolen or destroyed. Depositing participants assume
full liability as well as responsibility for replacement of lost,
stolen or destroyed fully disclosed ``Non-Standard'' assets;
Modifying the timeframe within which DTC must receive
settlement delivery instructions from Participants in order to meet
industry cutoff times;
Removing duplicative language and language regarding the
funds only settlement system and the dividend settlement system since
such systems were incorporated into the Envelope Settlement Service;\5\
and
---------------------------------------------------------------------------
\5\ For more information regarding this changes, see Securities
Exchange Act Release No. 34-65032 (August 4, 2011), 76 FR 49511
(August 10, 2011) [File No. SR-NSCC-2011-04].
---------------------------------------------------------------------------
Making clarifications regarding the description of custody
services, the vault, inputs and methods of notification.
DTC believes that the proposed rule change is consistent with the
requirements of the Securities Exchange Act of 1934, as amended (the
``Act''), and the rules and regulations thereunder, applicable to DTC
in that it promotes efficiencies in the prompt and accurate clearance
and settlement of securities transactions by enhancing the utilization
of DTC's existing services. Moreover, the proposed rule change reduces
the costs, inefficiencies and risks associated with the physical safe-
keeping of securities by clarifying the procedures associated with the
Custody Service.
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 was filed pursuant to Section 19(b)(3)(A)
\6\ of the Act and Rule 19b-4(f)(4)(i) \7\ thereunder and thus became
effective upon filing because it is effecting a change in an existing
service of DTC that does not adversely affect the safeguarding of
securities or funds in the custody or control of DTC or for which it is
responsible and does not significantly affect the respective rights or
obligations of DTC or persons using the service. At any time within
sixty days of the filing of such rule change, the Commission summarily
may temporarily suspend 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(4)(i).
---------------------------------------------------------------------------
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 No. SR-DTC-2012-06 on the subject line.
Paper Comments
Send 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-2012-06. 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 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 will also be available for
inspection and copying at the principal office of DTC and on DTC's Web
site at https://dtcc.com/downloads/legal/rule_filings/2012/dtc/SR-DTC-2012-06.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-2012-06
and should be submitted on or before September 18, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated
authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-21107 Filed 8-27-12; 8:45 am]
BILLING CODE 8011-01-P
