Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the DTC Settlement Service Guide to Clarify the Largest Provisional Net Credit Procedures, 20285-20287 [2014-08123]
Download as PDF
Federal Register / Vol. 79, No. 70 / Friday, April 11, 2014 / Notices
At any time within 60 days of the
filing of such proposed 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. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B)14 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
office of the Exchange. 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–NYSE–
2014–18 and should be submitted on or
before May 2, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–08125 Filed 4–10–14; 8:45 am]
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–
NYSE–2014–18 on the subject line.
tkelley on DSK3SPTVN1PROD with NOTICES
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:
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on a Proposed Rule Change To Adopt
NYSE Arca Equities Rule 8.900, Which
Permits the Listing and Trading of
Managed Portfolio Shares, and To List
and Trade Shares of the ActiveShares
SM Large-Cap Fund, ActiveShares SM
Mid-Cap Fund, and ActiveShares SM
Multi-Cap Fund Pursuant to That Rule
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2014–18. 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
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
14 15
U.S.C. 78s(b)(2)(B).
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18:55 Apr 10, 2014
Jkt 232001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71895; File No. SR–
NYSEArca–2014–10]
April 7, 2014.
On February 7, 2014, NYSE Arca, Inc.
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
adopt new NYSE Arca Equities Rule
8.900, which would govern the listing
and trading of Managed Portfolio
Shares, and to list and trade shares of
the ActiveSharesSM Large-Cap Fund,
ActiveSharesSM Mid-Cap Fund, and
ActiveSharesSM Multi-Cap Fund
(collectively, ‘‘Funds’’) under proposed
NYSE Arca Equities Rule 8.900. The
proposed rule change was published for
comment in the Federal Register on
February 26, 2014.3 The Commission
has received one comment letter on the
proposed rule change.4
Section 19(b)(2) of the Act 5 provides
that, within 45 days of the publication
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 71588
(Feb. 20, 2014), 79 FR 10848.
4 See Letter from Gary L. Gastineau, President,
ETF Consultants.com, Inc., to Elizabeth M. Murphy,
Secretary, Commission, dated March 18, 2014.
5 15 U.S.C. 78s(b)(2).
1 15
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
20285
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding, or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The Commission is
extending this 45-day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change and the comment received.
The proposed rule change would permit
the Exchange to adopt new NYSE Arca
Equities Rule 8.900, which would set
forth the initial and continued listing
standards applicable to Managed
Portfolio Shares. In addition, the
proposed rule change would permit the
listing and trading of shares of the
Funds pursuant to proposed NYSE Arca
Equities Rule 8.900.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,6
designates May 27, 2014, as the date by
which the Commission shall either
approve or disapprove or institute
proceedings to determine whether to
disapprove the proposed rule change
(File Number SR–NYSEArca–2014–10).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–08130 Filed 4–10–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71888; File No. SR–DTC–
2014–02]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Amend the
DTC Settlement Service Guide to
Clarify the Largest Provisional Net
Credit Procedures
April 7, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
6 Id.
7 17
E:\FR\FM\11APN1.SGM
CFR 200.30–3(a)(31).
11APN1
20286
Federal Register / Vol. 79, No. 70 / Friday, April 11, 2014 / Notices
(‘‘Act’’) 1 and Rule 19b–4 2 thereunder,
notice is hereby given that on March 27,
2014, the Depository Trust Company
(‘‘DTC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change 3 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) 4 of the
Act and Rule 19b–4(f)(4) 5 thereunder,
which renders the proposal 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
As discussed below, the proposed
rule change would clarify DTC’s
existing Largest Provisional Net Credit
(‘‘LPNC’’) 6 Procedures within DTC’s
Settlement Service Guide (the ‘‘Service
Guide’’).7
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. Purpose
With regard to processing of Money
Market Instruments (‘‘MMI’’), DTC
employs the LPNC risk management
control to mitigate the risks associated,
on the same business day, with: (i) the
insolvency of an MMI issuer or refusal
to pay (‘‘RTP’’) on a MMI maturity
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Exhibit 5 of this proposed rule change filing
shows the text of the rule changes to be made by
DTC. File No. SR–DTC–2014–02, Exhibit 5,
https://www.sec.gov/rules/sro/dtc.shtml.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(4).
6 DTC Rule 1 (Definitions), available at https://
www.dtcc.com/en/legal/rules-and-procedures.aspx.
7 Service Guide, available at https://
www.dtcc.com/∼/media/Files/Downloads/legal/
service-guides/Settlement.ashx.
tkelley on DSK3SPTVN1PROD with NOTICES
2 17
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Jkt 232001
obligation by the applicable MMI
Issuing and Paying Agent, and (ii) a DTC
Participant’s (‘‘Participant’’) failure to
settle or DTC’s ceasing to act for the
Participant. In this regard, on each
processing day, DTC withholds intraday
credit from each MMI Participant for the
sum of the two largest aggregate net
credits with respect to an issuer’s
acronym for purposes of calculating the
Participant’s net settlement balance and
collateral monitor. This provides
protection in the event that MMI
transactions are reversed in DTC’s
system in accordance with the DTC
Rules & Procedures (‘‘Rules’’) as a result
of an issuer failure or RTP.8
DTC most recently updated its Rules
relating to LPNC in 2013.9
Pursuant to this rule filing, DTC
proposes clarifications to the LPNC
Procedures in the Service Guide,
including: (i) providing an example
illustrating the composition of the LPNC
calculation; and (ii) making other
technical changes relating to the
description of the LPNC process and
timeframes.
(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 with respect to this
filing.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The forgoing [sic] rule change has
become effective pursuant to Section
19(b)(3)(A) 11 of the Act and paragraph
(f)(4) 12 of Rule 19b–4 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
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
2. Statutory Basis
The proposed rule change clarifies the
terms associated with processing of
MMI transactions and associated risk
controls. As a result, the proposed rule
change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
DTC, and in particular, with Section
17A(b)(3)(F) 10 of the Act. This section
requires that the Rules be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions and, in general, to protect
investors and the public interest.
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–2014–02 on the subject line.
3. Implementation Timeframe
The proposed rule change is effective
immediately.
(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. As stated above, the
proposed change merely provides
clarifications to the Service Guide and
will not impact any Participant’s access
to, or use of, DTC services. In addition,
the proposal does not impact the costs
of Participants’ use of DTC services.
8 Such reversals override DTC’s net debit cap and
collateral monitor risk controls.
9 Securities Exchange Act Release No. 68983 (Feb.
25, 2013), 78 FR 13924 (Mar. 1, 2013) (SR–DTC–
2012–10).
10 15 U.S.C. 78q–1(b)(3)(F).
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–DTC–2014–02. 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
11 15
12 17
E:\FR\FM\11APN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4).
11APN1
Federal Register / Vol. 79, No. 70 / Friday, April 11, 2014 / Notices
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
10:00 a.m. and 3:00 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://www.dtcc.com/legal/sec-rulefilings.aspx. 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–2014–
02 and should be submitted on or before
May 2, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–08123 Filed 4–10–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71891; File No. SR–Phlx–
2013–113]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Request for
Comment and Notice of Designation of
Longer Period for Commission Action
on Proceedings To Determine Whether
To Approve or Disapprove a Proposed
Rule Change To Offer a Customer
Rebate
tkelley on DSK3SPTVN1PROD with NOTICES
April 7, 2014.
On October 31, 2013, NASDAQ OMX
PHLX LLC (‘‘Exchange’’ or ‘‘Phlx’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend the Customer Rebate
Program in Section B of the Exchange’s
Pricing Schedule to increase Customer
rebates available to certain market
participants that transact Customer
orders on Phlx. The proposed rule
change was published for comment in
the Federal Register on November 19,
2013.3 On November 25, 2013, the
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 70866
(November 13, 2013), 78 FR 69472 (‘‘Notice’’).
1 15
VerDate Mar<15>2010
18:55 Apr 10, 2014
Jkt 232001
Commission temporarily suspended and
initiated proceedings to determine
whether to approve or disapprove the
proposed rule change.4 The Commission
has received six comment letters on the
proposal 5 and one rebuttal letter from
Phlx.6
Section 19(b)(2) of the Act 7 provides
that, after instituting proceedings to
determine whether to approve or
disapprove a proposed rule change,
within 180 days of the publication of
notice of the filing of a proposed rule
change, the Commission shall either
approve the proposed rule change or
disapprove the proposed rule change.
The Commission may extend the period
for issuing an order approving or
disapproving the proposed rule change,
however, by not more than 60 days if
the Commission determines that a
longer period is appropriate and
publishes the reasons for such
determination. The 180th day for this
filing is May 18, 2014.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to review comment
letters submitted in response to the
Order Instituting Proceedings, to review
the Exchange’s response to such
comments, and to consider and take
action on the Exchange’s proposed rule
change.
The Commission also seeks additional
comment to help further inform its
analysis of the proposed rule change.
Specifically, the Commission invites
interested persons to submit data,
views, and arguments concerning the
proposed rule change, including
whether the proposed rule change is
consistent with the Act. In particular,
the Commission seeks comment on the
following.
4 See Securities Exchange Act Release No. 70940
(November 25, 2013), 78 FR 71700 (November 29,
2013) (‘‘Order Instituting Proceedings’’).
5 See letters to Elizabeth M. Murphy, Secretary,
Commission, from: Michael J. Simon, Secretary,
International Securities Exchange, LLC, dated
November 11, 2013; William O’Brien, Chief
Executive Officer, Direct Edge Holdings LLC, dated
November 13, 2013; Brian O’Neill, Vice President
and Senior Counsel, Miami International Securities
Exchange, LLC, dated November 27, 2013; John C.
Nagel, Managing Director and General Counsel,
Citadel Securities, dated December 18, 2013;
Angelo Evangelou, Associate General Counsel,
Chicago Board Options Exchange, Inc., dated
December 20, 2013; and Michael J. Simon,
Secretary, International Securities Exchange, LLC,
dated December 20, 2013.
6 See letter to Elizabeth M. Murphy, Secretary,
Commission, from Joan C. Conley, Senior Vice
President & Corporate Secretary, NASDAQ OMX
PHLX LLC, dated January 24, 2014 (‘‘Phlx Response
Letter’’).
7 15 U.S.C. 78s(b)(2).
PO 00000
Frm 00123
Fmt 4703
Sfmt 4703
20287
Phlx states in its January 24, 2014
response to comments ‘‘ . . . if an
exchange believes that it would be
attractive to customers to have a choice
between multiple affiliated exchanges, it
may create such exchanges as some selfregulatory exchanges—including
commenters CBOE and ISE—have
already done.’’ 8 Phlx further states that
‘‘[t]here are no significant barriers to
SROs creating additional options
exchanges.’’ 9 Phlx’s response suggests
that, if the proposal were approved,
there is a potential for entities to create
new options exchanges in order to
compete with Phlx.10
The Commission has previously
stated that its task has been to facilitate
an appropriately balanced market
structure that promotes competition
among markets, while minimizing the
potentially adverse effects of
fragmentation on efficiency, price
transparency, best execution of investor
orders, and order interaction.11 In that
Concept Release, the Commission
discussed the impact of competition
among trading venues and market
fragmentation.12 The Commission also
stated that when many trading centers
compete for order flow in the same
security, however, such competition can
lead to the fragmentation of order flow
in that security.13 The Commission
further stated that fragmentation can
inhibit the interaction of investor orders
and thereby impair certain efficiencies
and the best execution of investors’
orders.14 On the other hand, the
Commission stated that mandating the
consolidation of order flow in a single
venue would create a monopoly and
thereby lose the important benefits of
completion among markets.15 The
Commission stated that the benefits of
such competition include incentives for
trading centers to create new products,
provide high quality trading services
that meet the needs of investors, and
keep trading fees low.16
As a result, the Commission has
stated that such market fragmentation
concerns have presented challenges to
the Commission’s objective to protect
investors and maintain fair and orderly
markets.17
8 See
Phlx Response Letter, supra note 6, at 7.
9 Id.
10 Id.
11 See Exchange Act Release No. 61358 (Jan. 14,
2010), 75 FR 3593, 3597 (Jan. 21, 2010) (‘‘Concept
Release’’).
12 Id.
13 Id.
14 Id.
15 Id.
16 See Concept Release, supra note 11, at 3597.
17 Id.
E:\FR\FM\11APN1.SGM
11APN1
Agencies
[Federal Register Volume 79, Number 70 (Friday, April 11, 2014)]
[Notices]
[Pages 20285-20287]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-08123]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71888; File No. SR-DTC-2014-02]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Amend the DTC Settlement Service Guide to Clarify the Largest
Provisional Net Credit Procedures
April 7, 2014.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 20286]]
(``Act'') \1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on March 27, 2014, the Depository Trust Company (``DTC'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change \3\ 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) \4\ of the Act and Rule
19b-4(f)(4) \5\ thereunder, which renders the proposal 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\ 17 CFR 240.19b-4.
\3\ Exhibit 5 of this proposed rule change filing shows the text
of the rule changes to be made by DTC. File No. SR-DTC-2014-02,
Exhibit 5, https://www.sec.gov/rules/sro/dtc.shtml.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
As discussed below, the proposed rule change would clarify DTC's
existing Largest Provisional Net Credit (``LPNC'') \6\ Procedures
within DTC's Settlement Service Guide (the ``Service Guide'').\7\
---------------------------------------------------------------------------
\6\ DTC Rule 1 (Definitions), available at https://www.dtcc.com/en/legal/rules-and-procedures.aspx.
\7\ Service Guide, available at https://www.dtcc.com/~/media/
Files/Downloads/legal/service-guides/Settlement.ashx.
---------------------------------------------------------------------------
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. Purpose
With regard to processing of Money Market Instruments (``MMI''),
DTC employs the LPNC risk management control to mitigate the risks
associated, on the same business day, with: (i) the insolvency of an
MMI issuer or refusal to pay (``RTP'') on a MMI maturity obligation by
the applicable MMI Issuing and Paying Agent, and (ii) a DTC
Participant's (``Participant'') failure to settle or DTC's ceasing to
act for the Participant. In this regard, on each processing day, DTC
withholds intraday credit from each MMI Participant for the sum of the
two largest aggregate net credits with respect to an issuer's acronym
for purposes of calculating the Participant's net settlement balance
and collateral monitor. This provides protection in the event that MMI
transactions are reversed in DTC's system in accordance with the DTC
Rules & Procedures (``Rules'') as a result of an issuer failure or
RTP.\8\
---------------------------------------------------------------------------
\8\ Such reversals override DTC's net debit cap and collateral
monitor risk controls.
---------------------------------------------------------------------------
DTC most recently updated its Rules relating to LPNC in 2013.\9\
---------------------------------------------------------------------------
\9\ Securities Exchange Act Release No. 68983 (Feb. 25, 2013),
78 FR 13924 (Mar. 1, 2013) (SR-DTC-2012-10).
---------------------------------------------------------------------------
Pursuant to this rule filing, DTC proposes clarifications to the
LPNC Procedures in the Service Guide, including: (i) providing an
example illustrating the composition of the LPNC calculation; and (ii)
making other technical changes relating to the description of the LPNC
process and timeframes.
2. Statutory Basis
The proposed rule change clarifies the terms associated with
processing of MMI transactions and associated risk controls. As a
result, the proposed rule change is consistent with the requirements of
the Act and the rules and regulations thereunder applicable to DTC, and
in particular, with Section 17A(b)(3)(F) \10\ of the Act. This section
requires that the Rules be designed to promote the prompt and accurate
clearance and settlement of securities transactions and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
3. Implementation Timeframe
The proposed rule change is effective immediately.
(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. As stated above, the
proposed change merely provides clarifications to the Service Guide and
will not impact any Participant's access to, or use of, DTC services.
In addition, the proposal does not impact the costs of Participants'
use of DTC services.
(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 with respect to this filing.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The forgoing [sic] rule change has become effective pursuant to
Section 19(b)(3)(A) \11\ of the Act and paragraph (f)(4) \12\ of Rule
19b-4 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 action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(4).
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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-2014-02 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.
All submissions should refer to File No. SR-DTC-2014-02. 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
[[Page 20287]]
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
10:00 a.m. and 3:00 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://www.dtcc.com/legal/sec-rule-filings.aspx. 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-2014-02 and should be
submitted on or before May 2, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
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\13\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2014-08123 Filed 4-10-14; 8:45 am]
BILLING CODE 8011-01-P