Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of Proposed Rule Change Regarding the Discontinuance of the Distribution of Fractional Shares in Respect of Corporate Actions for New Issues in DTC's System, 32425-32427 [2015-13869]
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mstockstill on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 109 / Monday, June 8, 2015 / Notices
restrictions on cash payments for client
solicitations. The rule requires that an
adviser pay all solicitors’ fees pursuant
to a written agreement. When an adviser
will provide only impersonal advisory
services to the prospective client, the
rule imposes no disclosure
requirements. When the solicitor is
affiliated with the adviser and the
adviser will provide individualized
advisory services to the prospective
client, the solicitor must, at the time of
the solicitation or referral, indicate to
the prospective client that he is
affiliated with the adviser. When the
solicitor is not affiliated with the
adviser and the adviser will provide
individualized advisory services to the
prospective client, the solicitor must, at
the time of the solicitation or referral,
provide the prospective client with a
copy of the adviser’s brochure and a
disclosure document containing
information specified in rule 206(4)–3.
Amendments to rule 206(4)–3, adopted
in 2010 in connection with rule 206(4)–
5, specify that solicitation activities
involving a government entity, as
defined in rule 206(4)–5, are subject to
the additional limitations of rule
206(4)–5. The information rule 206(4)–
3 requires is necessary to inform
advisory clients about the nature of the
solicitor’s financial interest in the
recommendation so the prospective
clients may consider the solicitor’s
potential bias, and to protect clients
against solicitation activities being
carried out in a manner inconsistent
with the adviser’s fiduciary duty to
clients. Rule 206(4)–3 is applicable to
all Commission-registered investment
advisers. The Commission believes that
approximately 4,422 of these advisers
have cash referral fee arrangements. The
rule requires approximately 7.04 burden
hours per year per adviser and results in
a total of approximately 31,130 total
burden hours (7.04 × 4,422) for all
advisers.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
VerDate Sep<11>2014
17:09 Jun 05, 2015
Jkt 235001
publication. The Commission may not
conduct or sponsor a collection of
information unless it displays a
currently valid OMB number. No person
shall be subject to any penalty for failing
to comply with a collection of
information subject to the PRA that does
not display a valid OMB number.
Please direct your written comments
to Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Remi
Pavlik-Simon, 100 F Street NE.,
Washington, DC 20549; or send an email
to: PRA_Mailbox@sec.gov.
Dated: June 2, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–13876 Filed 6–5–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75093; File No. SR–
NYSEArca–2015–25]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on Proposed Rule Change, as Modified
by Amendment No. 1, To List and
Trade Shares of the iShares iBonds
Dec 2021 AMT-Free Muni Bond ETF
and iShares iBonds Dec 2022 AMTFree Muni Bond ETF Under NYSE Arca
Equities Rule 5.2(j)(3)
June 2, 2015.
On March 31, 2015, NYSE Arca, Inc.
(the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’),
pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 a
proposed rule change to list and trade
shares of the following series of the
iShares Trust: iShares iBonds Dec 2021
AMT-Free Muni Bond ETF and iShares
iBonds Dec 2022 AMT-Free Muni Bond
ETF under NYSE Arca Equities Rule
5.2(j)(3), Commentary .02. On April 14,
2015, the Exchange filed Amendment
No. 1 to the proposed rule change,
which superseded the original filing.
The proposed rule change, as modified
by Amendment No. 1, was published for
comment in the Federal Register on
April 21, 2015.4 The Commission has
received no comment letters on the
proposed rule change.
Section 19(b)(2) of the Act 5 provides
that, within 45 days of the publication
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.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,6
designates July 20, 2015, 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–2015–25).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–13868 Filed 6–5–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75094: File No. SR–DTC–
2015–007]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing of Proposed Rule Change
Regarding the Discontinuance of the
Distribution of Fractional Shares in
Respect of Corporate Actions for New
Issues in DTC’s System
June 2, 2015.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (‘‘Act’’)
and Rule 19b–4 2 thereunder, notice is
hereby given that on May 27, 2015, 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 by DTC. The
Commission is publishing this notice to
1 15
5 15
2 15
6 Id.
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
4 See Securities Exchange Act Release No. 74730
(April 15, 2015), 80 FR 22234 (‘‘Notice’’).
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
32425
U.S.C. 78s(b)(2).
7 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\08JNN1.SGM
08JNN1
32426
Federal Register / Vol. 80, No. 109 / Monday, June 8, 2015 / Notices
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change by DTC
would discontinue the option offered by
DTC to issuers that allows for the
distribution of fractional shares of
securities in DTC’s system, when DTC is
handling fractional dispositions of
shares resulting from corporate actions,
for new issues, as more fully described
below.3 The proposed change does not
affect the text of DTC’s Rules and
Procedures.
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) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
The purpose of the proposed rule
change is to discontinue the option
offered by DTC to issuers that allows for
the distribution of fractional shares of
securities in DTC’s system, when DTC is
handling fractional dispositions of
shares resulting from corporate actions,
for new issues, as more fully described
below.
Background
When a securities issue is made
eligible at DTC, DTC offers three options
to the issuer for handling the
disposition of fractional shares in DTC’s
system resulting from a corporate action
for the issue. The issuer may: (i) Round
up to the next full share or drop
fractions, (ii) pay ‘‘cash-in-lieu’’ of
fractional shares, or (iii) issue the
fractional shares into an identifying
number (‘‘Fractional Identifier’’)
generated by DTC.4 The assets
comprising the disposition of fractional
3 Terms not otherwise defined herein have the
meaning set forth in the DTC Rules and Procedures
(‘‘DTC Rules’’), available at https://www.dtcc.com/
legal/rules-and-procedures.aspx.
4 The Fractional Identifier generated for the third
option above is separate from the CUSIP® identifier
(‘‘CUSIP’’) that is universally recognized by the
marketplace.
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17:09 Jun 05, 2015
Jkt 235001
shares, whether in the form of shares or
cash, once received from the issuer’s
transfer or paying agent, are credited by
DTC in proportional amounts to the
respective accounts of Participants
depending on the amount shares of the
issue they have on deposit. Participants
then distribute credits on their own
books, as applicable, to their customers
that hold beneficial interests in those
shares.
The first two options for handling the
disposition of fractional shares are
specified in the DTC Distributions
Service Guide (‘‘Guide’’) 5 and DTC’s
Operational Arrangements (‘‘OA’’).6
Distributions of fractional shares in
DTC’s system under the third option are
delivered to Participants in accordance
with the provisions of DTC Rule 6 that
are applicable to DTC services related to
Deposited Securities.7
Proposal
Fractional shares are not tradable. The
distribution of fractional shares in
respect of corporate actions reduces
efficiencies for investors in an issue,
including with respect to the value and
transferability of assets delivered, as
investors are required to wait for an
extended period for the aggregation of
fractional shares into a full share that
may be traded. Tracking, processing and
reporting of fractional shares separately
from the associated CUSIP, which are
necessitated by this process, increases
costs to DTC and the industry.
In order to improve efficiencies for
investors and reduce costs for DTC and
the industry, DTC proposes to
discontinue the option for issuers to
distribute any fractional shares for new
issues into DTC’s system. DTC would
continue to allow issuers undergoing a
corporate action with a choice between:
(i) The rounding up and dropping of
fractions, and (ii) the payment of cashin-lieu of fractional shares. DTC would
maintain the Fractional Identifiers
previously designated for existing
fractional shares within DTC, and
continue to perform corporate actions
processing with respect to those
Fractional Identifiers.
5 See the Guide, p. 31, available at https://
www.dtcc.com/∼/media/Files/Downloads/legal/
service-guides/Distributions%20Service%2
0Guide%20FINAL%20November%202014.pdf.
6 See the OA, p. 31, available at https://
www.dtcc.com/∼/media/Files/Downloads/legal/
issue-eligibility/eligibility/operationalarrangements.pdf.
7 See DTC Rules (Rule 6 (Services)), p. 45,
available at https://www.dtcc.com/∼/media/Files/
Downloads/legal/rules/dtc_rules.pdf.
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Frm 00089
Fmt 4703
Sfmt 4703
Implementation
The effective date of the proposed
rule change would be announced via a
DTC Important Notice.
2. Statutory Basis
By eliminating the distribution of
fractional shares for new issues within
DTC’s system, the proposed rule change
would improve efficiencies for investors
relating to the disposition of fractional
shares in corporate action events, as
well as reduce the costs for DTC and the
industry relating to DTC tracking,
processing and reporting on separate
Fractional Identifiers for those issues.
Therefore, by improving efficiencies for
investors and reducing costs for DTC
and the industry, the proposed rule
change is consistent with the provisions
of Section 17A(b)(3)(F) 8 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, as well as, in general,
protect the interests of investors.
(B) Clearing Agency’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) Clearing Agency’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
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,
8 15
E:\FR\FM\08JNN1.SGM
U.S.C. 78q–1(b)(3)(F).
08JNN1
Federal Register / Vol. 80, No. 109 / Monday, June 8, 2015 / Notices
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–13869 Filed 6–5–15; 8:45 am]
• 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–2015–007 on the subject line.
Paper Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F
Street, NE., Washington, DC 20549–
1090.
All submissions should refer to File
Number SR–DTC–2015–007. 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 the
filing also will be available for
inspection and copying at the principal
office of DTC and on DTCC’s Web site
(https://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 Number SR–DTC–
2015–007 and should be submitted on
or before June 29, 2015.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75095; File No. SR–
NYSEMKT–2015–41]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing of Proposed
Rule Change Amending Rule 980NY(e),
Electronic Complex Order Auction
Process Removing the Limitation on
Who Can Respond to a COA and
Provide a Response Time Interval of at
Least 500 Milliseconds; and Amend
Rule 935NY, Order Exposure
Requirements To Add Use of the COA
for a User To Satisfy the Order
Exposure Requirement in Rule 935NY
and Delete the Reference in Rule
980NY(e) to the Order Exposure
Requirements Being Separate From
the Duration of the COA Response
Time Interval
June 2, 2015
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on May 21,
2015, NYSE MKT LLC (the ‘‘Exchange’’
or ‘‘NYSE MKT’’) 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 Exchange. 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 Exchange proposes to: (1) Amend
Rule 980NY(e) (Electronic Complex
Order Auction (‘‘COA’’) Process) to
remove the limitation on who can
respond to a COA and to provide a
Response Time Interval of at least 500
milliseconds; and (2) amend Rule
935NY (Order Exposure Requirements)
to add use of the COA as a means for
a User to satisfy the Order Exposure
Requirement in Rule 935NY and delete
the reference in Rule 980NY(e) to the
Order Exposure Requirements being
9 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
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17:09 Jun 05, 2015
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PO 00000
Frm 00090
Fmt 4703
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32427
separate from the duration of the COA
Response Time Interval. The text of the
proposed rule change is available on the
Exchange’s Web site at www.nyse.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
Exchange 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. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Participation in and Minimum Response
Time Interval for the COA
The Exchange operates COA, which
allows an entering ATP Holder to
initiate an auction for eligible Electronic
Complex Orders (‘‘COA-eligible
orders’’).4 Upon receiving a COAeligible order, and the direction from
the entering ATP Holder that an auction
be initiated, the Exchange sends an
automated request for response message
(‘‘RFR’’) to all ATP Holders who
subscribe to RFR messages.5 ATP
Holders that are eligible to participate in
a COA may respond to an RFR message
(‘‘RFR Responses’’) indicating the price
and the number of contracts they would
be willing trade in the COA. RFR
Responses must be submitted during the
Response Time Interval (‘‘RTI’’), the
duration of which is determined by the
Exchange, but may not exceed one (1)
second.6
Rule 980NY(e)(4) currently provides
that each Market Maker with an
appointment in the relevant option
4 The Exchange may determine, on a class by
class basis, which Electronic Complex Orders are
eligible for a COA based on marketability (defined
as a number of ticks from the current market), size,
and Complex Order origin type. See Rule
980NY(e)(1).
5 RFR messages identify the component series,
size and side of the market of the order and any
contingencies. See Rule 980NY(e)(2).
6 See Rule 980NY(e)(3) (stating, in part,’’[t]he
Exchange will determine the length of the Response
Time Interval; provided, however, that the duration
shall not exceed one (1) second.’’).
E:\FR\FM\08JNN1.SGM
08JNN1
Agencies
[Federal Register Volume 80, Number 109 (Monday, June 8, 2015)]
[Notices]
[Pages 32425-32427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13869]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75094: File No. SR-DTC-2015-007]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing of Proposed Rule Change Regarding the Discontinuance
of the Distribution of Fractional Shares in Respect of Corporate
Actions for New Issues in DTC's System
June 2, 2015.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') and Rule 19b-4 \2\ thereunder, notice is hereby given
that on May 27, 2015, 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 by DTC. The Commission is publishing this notice to
[[Page 32426]]
solicit comments on the proposed rule 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 by DTC would discontinue the option
offered by DTC to issuers that allows for the distribution of
fractional shares of securities in DTC's system, when DTC is handling
fractional dispositions of shares resulting from corporate actions, for
new issues, as more fully described below.\3\ The proposed change does
not affect the text of DTC's Rules and Procedures.
---------------------------------------------------------------------------
\3\ Terms not otherwise defined herein have the meaning set
forth in the DTC Rules and Procedures (``DTC Rules''), available at
https://www.dtcc.com/legal/rules-and-procedures.aspx.
---------------------------------------------------------------------------
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) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to discontinue the
option offered by DTC to issuers that allows for the distribution of
fractional shares of securities in DTC's system, when DTC is handling
fractional dispositions of shares resulting from corporate actions, for
new issues, as more fully described below.
Background
When a securities issue is made eligible at DTC, DTC offers three
options to the issuer for handling the disposition of fractional shares
in DTC's system resulting from a corporate action for the issue. The
issuer may: (i) Round up to the next full share or drop fractions, (ii)
pay ``cash-in-lieu'' of fractional shares, or (iii) issue the
fractional shares into an identifying number (``Fractional
Identifier'') generated by DTC.\4\ The assets comprising the
disposition of fractional shares, whether in the form of shares or
cash, once received from the issuer's transfer or paying agent, are
credited by DTC in proportional amounts to the respective accounts of
Participants depending on the amount shares of the issue they have on
deposit. Participants then distribute credits on their own books, as
applicable, to their customers that hold beneficial interests in those
shares.
---------------------------------------------------------------------------
\4\ The Fractional Identifier generated for the third option
above is separate from the CUSIP[supreg] identifier (``CUSIP'') that
is universally recognized by the marketplace.
---------------------------------------------------------------------------
The first two options for handling the disposition of fractional
shares are specified in the DTC Distributions Service Guide (``Guide'')
\5\ and DTC's Operational Arrangements (``OA'').\6\ Distributions of
fractional shares in DTC's system under the third option are delivered
to Participants in accordance with the provisions of DTC Rule 6 that
are applicable to DTC services related to Deposited Securities.\7\
---------------------------------------------------------------------------
\5\ See the Guide, p. 31, available at https://www.dtcc.com/~/
media/Files/Downloads/legal/service-guides/
Distributions%20Service%20Guide%20FINAL%20November%202014.pdf.
\6\ See the OA, p. 31, available at https://www.dtcc.com/~/media/
Files/Downloads/legal/issue-eligibility/eligibility/operational-
arrangements.pdf.
\7\ See DTC Rules (Rule 6 (Services)), p. 45, available at
https://www.dtcc.com/~/media/Files/Downloads/legal/rules/
dtc_rules.pdf.
---------------------------------------------------------------------------
Proposal
Fractional shares are not tradable. The distribution of fractional
shares in respect of corporate actions reduces efficiencies for
investors in an issue, including with respect to the value and
transferability of assets delivered, as investors are required to wait
for an extended period for the aggregation of fractional shares into a
full share that may be traded. Tracking, processing and reporting of
fractional shares separately from the associated CUSIP, which are
necessitated by this process, increases costs to DTC and the industry.
In order to improve efficiencies for investors and reduce costs for
DTC and the industry, DTC proposes to discontinue the option for
issuers to distribute any fractional shares for new issues into DTC's
system. DTC would continue to allow issuers undergoing a corporate
action with a choice between: (i) The rounding up and dropping of
fractions, and (ii) the payment of cash-in-lieu of fractional shares.
DTC would maintain the Fractional Identifiers previously designated for
existing fractional shares within DTC, and continue to perform
corporate actions processing with respect to those Fractional
Identifiers.
Implementation
The effective date of the proposed rule change would be announced
via a DTC Important Notice.
2. Statutory Basis
By eliminating the distribution of fractional shares for new issues
within DTC's system, the proposed rule change would improve
efficiencies for investors relating to the disposition of fractional
shares in corporate action events, as well as reduce the costs for DTC
and the industry relating to DTC tracking, processing and reporting on
separate Fractional Identifiers for those issues. Therefore, by
improving efficiencies for investors and reducing costs for DTC and the
industry, the proposed rule change is consistent with the provisions of
Section 17A(b)(3)(F) \8\ 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, as well
as, in general, protect the interests of investors.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
(B) Clearing Agency'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) Clearing Agency'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
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,
[[Page 32427]]
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-2015-007 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-DTC-2015-007. 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 the filing also will be available
for inspection and copying at the principal office of DTC and on DTCC's
Web site (https://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 Number SR-DTC-2015-007 and should be
submitted on or before June 29, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-13869 Filed 6-5-15; 8:45 am]
BILLING CODE 8011-01-P