Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of Proposed Rule Change in Connection With the Modifications To Require Receiver Authorized Delivery Approval for DTC Processing of Institutional Delivery Transactions, 65268-65270 [2014-26004]

Download as PDF 65268 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: A. Significantly affect the protection of investors or the public interest; B. impose any significant burden on competition; and C. become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 23 and Rule 19b–4(f)(6) 24 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. If the Commission takes such action, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. 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: mstockstill on DSK4VPTVN1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– CBOE–2014–081 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 Number SR–CBOE–2014–081. 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 (http://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 the filing also will be available for inspection and copying at the principal 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–CBOE– 2014–081, and should be submitted on or before November 24, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.25 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–26010 Filed 10–31–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73443; File No. SR–DTC– 2014–10] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of Proposed Rule Change in Connection With the Modifications To Require Receiver Authorized Delivery Approval for DTC Processing of Institutional Delivery Transactions October 28, 2014. 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 October 16, 2014, The Depository Trust Company (‘‘DTC’’) filed with the Securities Exchange Commission (‘‘Commission’’) the proposed rule change as described in Item I, II and III 25 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 23 15 U.S.C. 78s(b)(3)(A). 24 17 CFR 240.19b–4(f)(6). VerDate Sep<11>2014 17:37 Oct 31, 2014 1 15 Jkt 235001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 below, which Items have been prepared by DTC. The Commission is publishing this notice to solicit comments on the proposed change from interested persons. I. Clearing Agency’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of changes to the DTC Settlement Service Guide (the ‘‘Guide’’) 3 to require Participants to use the Receiver Authorized Delivery (‘‘RAD’’) function to accept (i.e., ‘‘match’’) any affirmed institutional delivery transaction (‘‘ID Transaction’’) prior to DTC processing of the related securities delivery.4 II. Clearing Agency’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 DTC proposes to modify the Guide to require Participants to use RAD to accept any affirmed ID Transaction prior to DTC processing of the respective delivery of securities. RAD allows a receiver of valued deliveries of securities (‘‘Receiver’’) to manage which deliveries to accept, or to reject, prior to further processing by DTC. Prior to the proposed rule change, pursuant to a recent rule change (the ‘‘Prior RAD Change’’) 5 DTC has instituted the requirement that all Deliver Orders and Payment Orders be approved through RAD for further processing at DTC. The purpose of the Prior RAD Change and this proposed rule change is to establish a consistent internal ‘‘matching’’ system for bookentry deliveries at DTC, by which the agreement of the Participant delivering securities (‘‘Deliverer’’) and Receiver is 3 The Guide is available at http://www.dtcc.com/ ∼/media/Files/Downloads/legal/service-guides/ Settlement.ashx. 4 Terms not otherwise defined herein have the meaning set forth in the Rules. 5 Securities Exchange Act Release No. 72576 (Jul. 9, 2014); 79 FR 41335 (Jul. 15, 2014) (SR–DTC– 2014–06). E:\FR\FM\03NON1.SGM 03NON1 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES confirmed with respect to each delivery for purposes of DTC settlement. ID Transactions generally have not required RAD approval, because these transactions are externally pre-matched through Omgeo, LLC: the Guide has permitted Participants, at their option, to apply RAD.6 Instead of RAD, a Participant may use the same-day reclaim process to return securities to the original Deliverer without the acceptance of the latter. This process creates uncertainty for Participants and DTC with respect to ID Transactions as to whether securities would be delivered or reclaimed on the same day without the prior acceptance of the Receiver or original Deliverer, as applicable. Pursuant to the proposed rule change, DTC would amend the Guide to eliminate this uncertainty by providing that ID Transactions would only be processed for delivery once the intended Receiver has approved the transaction in RAD.7 Same day reclaims would also be subject to RAD approval by the original Deliverer. As with any securities delivery, these transactions would be subject to risk management controls.8 Additionally, the Guide would be updated for technical changes to: (i) Update the text for consistency to reflect that all valued Deliver Orders, Payment Orders, ID Transactions, MMI transactions, reclaims, pledges and releases of pledged securities would be subject to RAD; (ii) update the text for consistency to reflect that all reclaims would be subject to risk management controls and remove references to system functions related to reclaims that have become obsolete; (iii) add an email address to which Settling Banks seeking to adjust Net Debit Caps may send their requests, in addition to via mail or overnight delivery to the existing mailing address; (iv) indicate where Participants may access certain system functions via Settlement Web either in 6 Receivers may optionally set their DTC profile to route ID Transactions to RAD. 7 For processing efficiency, the proposed change to the Guide would offer Participants the option to set their system profile to allow affirmed ID Transactions to be automatically accepted in RAD. However, Participants would no longer have an option to allow ID Transactions to bypass RAD. 8 DTC risk management controls, including Collateral Monitor and Net Debit Cap (as defined in DTC Rule 1), are designed so that DTC may complete system-wide settlement notwithstanding the failure to settle of its largest Participant or affiliated family of Participants. The Collateral Monitor tests that a Receiver has adequate collateral to secure the amount of its net debit balance and the Net Debit Cap limits the net debit balance of a Participant so that it cannot exceed DTC liquidity resources for settlement. See DTC Rules, http:// dtcc.com/∼/media/Files/Downloads/legal/rules/ dtc_rules.ashx. VerDate Sep<11>2014 17:37 Oct 31, 2014 Jkt 235001 addition to, or in lieu of, PBS/PTS; (v) eliminate references to fees, relating to the ID Net service, which are redundant since those fees are also listed in DTC’s fee schedule; and (vi) delete reference to the population of a ‘‘third party’’ field on DTC’s system screens for the ID Net service which is no longer applicable. Implementation. The effective date of the proposed rule change would be announced via a DTC Important Notice. (2) Statutory Basis The proposed rule change would reduce uncertainty relating to settlement of securities deliveries for ID transactions through DTC by requiring acceptance by the receiving party prior to delivery. Therefore, the proposed rule change is consistent with the provisions of Section 17A(b)(3)(F) 9 of the Act which requires that the rules of the clearing agency be designed, inter alia, to promote the prompt and accurate clearance and settlement of securities transactions. In addition, the proposed rule change is consistent with Rule 17Ad–22(d)(12) of the Act 10 which requires that a clearing agency establish, implement, maintain and enforce written policies and procedures reasonably designed to ensure that final settlement occurs no later than the end of the settlement day and requires that intraday or real-time finality be provided where necessary to reduce risks. B. Self-Regulatory Organization’s Statement on Burden on Competition DTC does not believe that the proposed rule change would 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 with respect to this filing. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: 9 15 U.S.C. 78q–1(b)(3)(F). CFR 240.17Ad–22(d)(12). 10 17 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 65269 (A) By order approve or disapprove such proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File No. SR– DTC–2014–10 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–2014–10. 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 (http://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 the filing also will be available for inspection and copying at the principal office of DTC and on DTC’s Web site at http://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– 10 and should be submitted on or before November 24, 2014. E:\FR\FM\03NON1.SGM 03NON1 65270 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–26004 Filed 10–31–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73444; File No. SR–ICC– 2014–18] Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change To Revise the ICC Risk Management Framework October 28, 2014. 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 October 22, 2014, ICE Clear Credit LLC (‘‘ICC’’) 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 ICC. 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 principal purpose of the proposed rule change is to revise the ICC Risk Management Framework to incorporate certain risk model enhancements. These revisions do not require any changes to the ICC Clearing Rules (‘‘Rules’’). mstockstill on DSK4VPTVN1PROD with NOTICES II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, ICC 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. ICC has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of these statements. 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 17:37 Oct 31, 2014 Jkt 235001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change ICC proposes revising the ICC Risk Management Framework to incorporate risk model enhancements related to anti-procyclicality, devolatilization, liquidity charges, and concentration charges. ICC believes such revisions will facilitate the prompt and accurate clearance and settlement of securities transactions and derivative agreements, contracts, and transactions for which it is responsible. The proposed revisions are described in detail as follows. ICC proposes revising the ICC Risk Management Framework to facilitate compliance with requirements under the European Market Infrastructure Regulations, specifically antiprocyclicality conditions described in Article 28 of the Regulatory Technical Standards.3 Currently, ICC considers three levels of volatility in its Risk Management Framework to account for stable but prudent margin requirements. ICC proposes adding a fourth volatility scale that assigns a 25% weight to a stress period (currently the stress period is set to January 14, 2008 to December 31, 2008) and the remaining 75% to the immediate most recent 250 observations, consistent with Article 28(b) of the Regulatory Technical Standards. The revised initial margin requirements are expected to result in more conservative initial margin figures for some risk factors. In addition, ICC proposes introducing devolatilization enhancements to describe spread logreturn time series that span market periods associated with different volatility regimes. Additionally, ICC proposes a revised approach to computing index liquidity charges. The enhancement consists of reducing the portfolio liquidity benefits across different index series. As part of its product offering, ICC clears credit default swap (‘‘CDS’’) index series. A new series of CDS indices is issued every six months, and the new series is referred to as being ‘‘on-the-run,’’ while previous series is referred to as being ‘‘off-the-run.’’ The revised calculation establishes series-specific liquidity charges by considering the seriesspecific positions and establishing series-specific position directionality based on the corresponding 5-year equivalent notional amount 3 Commission Delegated Regulation (EU) No. 153/ 2013 of 19 December 2012 Supplementing Regulation (EU) No. 648/2012 of the European Parliament and of the Council with regard to Regulatory Technical Standards on Requirements for Central Counterparties (the ‘‘Regulatory Technical Standards’’). PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 directionality. Further, to capture the market behavior around index rolls when the bid/offer width for index-roll transactions (i.e., trading the on-the-run vs. first off-the-run indices) is typically smaller than the bid/offer width of each individual leg, ICC proposes implementing time-dependent long/ short liquidity charge portfolio benefits for the on-the-run and the first off-the run series. The proposed revisions to the liquidity charges are expected to result in more conservative requirements than the ones associated with the current approach. ICC also proposes enhancements to the calculation of its concentration charges by introducing index seriesspecific concentration charges. The revised calculation establishes seriesspecific concentration charges for positions exceeding series-specific concentration threshold limits based on the direction of the 5-year equivalent notional amount or the net notional amount. Under the revised calculation, ICC will estimate series-specific concentration charge threshold limits based on the distribution of seriesspecific open interest information at the Clearing House. The estimated seriesspecific concentration charge threshold limits reflect the average open interest over a 5-day period. The proposed revisions to the concentration charge are expected to result in more conservative requirements than the ones associated with the current approach. Section 17A(b)(3)(F) of the Act 4 requires, among other things, that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions, and to the extent applicable, derivative agreements, contracts and transactions and to comply with the provisions of the Act and the rules and regulations thereunder. ICC believes that the proposed rule changes are consistent with the requirements of the Act and the rules and regulations thereunder applicable to ICC, in particular, to Section 17(A)(b)(3)(F),5 because ICC believes that the proposed rule changes will promote the prompt and accurate clearance and settlement of securities transactions, derivatives agreements, contracts, and transactions, as the proposed risk model revisions enhance risk policies and are expected to impose more conservative initial margin requirements, which would enhance the financial resources available to ICC and thereby facilitate its ability to promptly and accurately clear and settle its 4 15 U.S.C. 78q–1(b)(3)(F). 5 Id. E:\FR\FM\03NON1.SGM 03NON1

Agencies

[Federal Register Volume 79, Number 212 (Monday, November 3, 2014)]
[Notices]
[Pages 65268-65270]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26004]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73443; File No. SR-DTC-2014-10]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing of Proposed Rule Change in Connection With the 
Modifications To Require Receiver Authorized Delivery Approval for DTC 
Processing of Institutional Delivery Transactions

October 28, 2014.
    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 October 16, 2014, The Depository Trust Company (``DTC'') filed with 
the Securities Exchange Commission (``Commission'') the proposed rule 
change as described in Item I, II and III below, which Items have been 
prepared by DTC. The Commission is publishing this notice to solicit 
comments on the proposed change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change consists of changes to the DTC Settlement 
Service Guide (the ``Guide'') \3\ to require Participants to use the 
Receiver Authorized Delivery (``RAD'') function to accept (i.e., 
``match'') any affirmed institutional delivery transaction (``ID 
Transaction'') prior to DTC processing of the related securities 
delivery.\4\
---------------------------------------------------------------------------

    \3\ The Guide is available at http://www.dtcc.com/~/media/Files/
Downloads/legal/service-guides/Settlement.ashx.
    \4\ Terms not otherwise defined herein have the meaning set 
forth in the Rules.
---------------------------------------------------------------------------

II. Clearing Agency'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
    DTC proposes to modify the Guide to require Participants to use RAD 
to accept any affirmed ID Transaction prior to DTC processing of the 
respective delivery of securities.
    RAD allows a receiver of valued deliveries of securities 
(``Receiver'') to manage which deliveries to accept, or to reject, 
prior to further processing by DTC. Prior to the proposed rule change, 
pursuant to a recent rule change (the ``Prior RAD Change'') \5\ DTC has 
instituted the requirement that all Deliver Orders and Payment Orders 
be approved through RAD for further processing at DTC. The purpose of 
the Prior RAD Change and this proposed rule change is to establish a 
consistent internal ``matching'' system for book-entry deliveries at 
DTC, by which the agreement of the Participant delivering securities 
(``Deliverer'') and Receiver is

[[Page 65269]]

confirmed with respect to each delivery for purposes of DTC settlement.
---------------------------------------------------------------------------

    \5\ Securities Exchange Act Release No. 72576 (Jul. 9, 2014); 79 
FR 41335 (Jul. 15, 2014) (SR-DTC-2014-06).
---------------------------------------------------------------------------

    ID Transactions generally have not required RAD approval, because 
these transactions are externally pre-matched through Omgeo, LLC: the 
Guide has permitted Participants, at their option, to apply RAD.\6\ 
Instead of RAD, a Participant may use the same-day reclaim process to 
return securities to the original Deliverer without the acceptance of 
the latter. This process creates uncertainty for Participants and DTC 
with respect to ID Transactions as to whether securities would be 
delivered or reclaimed on the same day without the prior acceptance of 
the Receiver or original Deliverer, as applicable.
---------------------------------------------------------------------------

    \6\ Receivers may optionally set their DTC profile to route ID 
Transactions to RAD.
---------------------------------------------------------------------------

    Pursuant to the proposed rule change, DTC would amend the Guide to 
eliminate this uncertainty by providing that ID Transactions would only 
be processed for delivery once the intended Receiver has approved the 
transaction in RAD.\7\ Same day reclaims would also be subject to RAD 
approval by the original Deliverer. As with any securities delivery, 
these transactions would be subject to risk management controls.\8\
---------------------------------------------------------------------------

    \7\ For processing efficiency, the proposed change to the Guide 
would offer Participants the option to set their system profile to 
allow affirmed ID Transactions to be automatically accepted in RAD. 
However, Participants would no longer have an option to allow ID 
Transactions to bypass RAD.
    \8\ DTC risk management controls, including Collateral Monitor 
and Net Debit Cap (as defined in DTC Rule 1), are designed so that 
DTC may complete system-wide settlement notwithstanding the failure 
to settle of its largest Participant or affiliated family of 
Participants. The Collateral Monitor tests that a Receiver has 
adequate collateral to secure the amount of its net debit balance 
and the Net Debit Cap limits the net debit balance of a Participant 
so that it cannot exceed DTC liquidity resources for settlement. See 
DTC Rules, http://dtcc.com/~/media/Files/Downloads/legal/rules/
dtc_rules.ashx.
---------------------------------------------------------------------------

    Additionally, the Guide would be updated for technical changes to: 
(i) Update the text for consistency to reflect that all valued Deliver 
Orders, Payment Orders, ID Transactions, MMI transactions, reclaims, 
pledges and releases of pledged securities would be subject to RAD; 
(ii) update the text for consistency to reflect that all reclaims would 
be subject to risk management controls and remove references to system 
functions related to reclaims that have become obsolete; (iii) add an 
email address to which Settling Banks seeking to adjust Net Debit Caps 
may send their requests, in addition to via mail or overnight delivery 
to the existing mailing address; (iv) indicate where Participants may 
access certain system functions via Settlement Web either in addition 
to, or in lieu of, PBS/PTS; (v) eliminate references to fees, relating 
to the ID Net service, which are redundant since those fees are also 
listed in DTC's fee schedule; and (vi) delete reference to the 
population of a ``third party'' field on DTC's system screens for the 
ID Net service which is no longer applicable.
    Implementation. The effective date of the proposed rule change 
would be announced via a DTC Important Notice.
(2) Statutory Basis
    The proposed rule change would reduce uncertainty relating to 
settlement of securities deliveries for ID transactions through DTC by 
requiring acceptance by the receiving party prior to delivery. 
Therefore, the proposed rule change is consistent with the provisions 
of Section 17A(b)(3)(F) \9\ of the Act which requires that the rules of 
the clearing agency be designed, inter alia, to promote the prompt and 
accurate clearance and settlement of securities transactions. In 
addition, the proposed rule change is consistent with Rule 17Ad-
22(d)(12) of the Act \10\ which requires that a clearing agency 
establish, implement, maintain and enforce written policies and 
procedures reasonably designed to ensure that final settlement occurs 
no later than the end of the settlement day and requires that intraday 
or real-time finality be provided where necessary to reduce risks.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78q-1(b)(3)(F).
    \10\ 17 CFR 240.17Ad-22(d)(12).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    DTC does not believe that the proposed rule change would 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 with respect to this filing.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File No. SR-DTC-2014-10 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-2014-10. 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 (http://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 the filing also will be available 
for inspection and copying at the principal office of DTC and on DTC's 
Web site at http://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-2014-10 and should be 
submitted on or before November 24, 2014.


[[Page 65270]]


    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. 2014-26004 Filed 10-31-14; 8:45 am]
BILLING CODE 8011-01-P