Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the Effective Date of the Settlement Cycle Rule Changes, 37274-37276 [2017-16739]
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Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices
considered irrelevant factors in order to
establish fair, reasonable, and not
unreasonably discriminatory fees and an
equitable allocation of fees among all
users. The existence of alternatives to
Multicast PITCH, including existing
similar feeds by other exchanges,
consolidated data, and proprietary data
from other sources, ensures that the
Exchange cannot set unreasonable fees,
or fees that are unreasonably
discriminatory, when vendors and
subscribers can elect these alternatives
or choose not to purchase a specific
proprietary data product if its cost to
purchase is not justified by the returns
any particular vendor or subscriber
would achieve through the purchase.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 17 and paragraph (f) of Rule
19b–4 thereunder.18 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.
IV. Solicitation of Comments
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BatsBZX–2017–48. 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 will also 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 SRBatsBZX–2017–48 and should be
submitted on or before August 30, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–16738 Filed 8–8–17; 8:45 am]
Electronic Comments
sradovich on DSK3GMQ082PROD with NOTICES
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:
[Release No. 34–81305; File No. SR–DTC–
2017–015]
• 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–
BatsBZX–2017–48 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
17 15
18 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Establish
the Effective Date of the Settlement
Cycle Rule Changes
August 3, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
19 17
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PO 00000
CFR 200.30–3(a)(12).
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(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 31,
2017, 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 the clearing
agency. DTC filed the proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(4)
thereunder.4 The Commission is
publishing this notice to 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
DTC is filing this proposed rule
change to (i) establish September 5,
2017 as the effective date (‘‘Effective
Date’’) of the settlement cycle rule
changes (‘‘T2 Changes’’) submitted
pursuant to rule filing SR–DTC–2016–
013 (‘‘Prior Rule Filing’’),5 (ii)
incorporate the T2 Changes into the
DTC Settlement Service Guide
(‘‘Settlement Guide’’) 6 and DTC
Distributions Service Guide
(‘‘Distributions Guide’’) 7 (collectively,
‘‘Guides’’) as of the Effective Date, and
(iii) amend the legends (‘‘Legends’’) on
the respective cover pages of the Guides
in order to include the Effective Date
and self-eliminating language for the
Legends, and remove the Legends’
current reference to DTC making a
subsequent rule filing with the
Commission, as this proposal is that
subsequent rule filing.8
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4).
5 See Securities Exchange Act Release No. 79304
(November 14, 2016), 81 FR 81825 (November 18,
2016) (SR–DTC–2016–013).
6 Available at https://www.dtcc.com/∼/media/
Files/Downloads/legal/service-guides/
Settlement.pdf.
7 Available at https://www.dtcc.com/∼/media/
Files/Downloads/legal/service-guides/DistributionsService-Guide-FINAL-January-2017.pdf.
8 Capitalized terms not otherwise defined herein
have the respective meanings set forth in the DTC
Rules, By-laws and Organization Certificate,
available at https://www.dtcc.com/∼/media/Files/
Downloads/legal/rules/dtc_rules.pdf.
2 17
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Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices
clearing agency 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 Prior Rule Filing 9 was filed by
DTC pursuant to Section 19(b)(3)(A) of
the Act,10 and was effective upon filing
with the Commission.
The purpose of the Prior Rule Filing
was to amend the Guides to make
technical revisions related to the
anticipated industry-wide move to a
shorter standard settlement cycle from
the third business day after the trade
date (‘‘T+3’’) to the second business day
after the trade date (‘‘T+2’’). Although
the Prior Rule Filing 11 became effective
pursuant to Section 19(b)(3)(A) of the
Act, the Prior Rule Filing 12 stated that
the T2 Changes would not become
effective and would not be implemented
until an effective date is established by
a subsequent proposed rule change to be
submitted by DTC under Rule 19b-4 of
the Act.13
DTC is filing this proposed rule
change to (i) establish the Effective Date
for the T2 Changes, which is also the
compliance date for the Commission’s
amendment to Rule 15c6–1(a) under the
Act,14 (ii) incorporate the T2 Changes
into the Guides as of the Effective Date,
and (iii) amend the Legends on the
respective cover pages of the Guides in
order to include the Effective Date and
self-eliminating language for the
Legends, and remove the Legends’
current reference to DTC making a
subsequent rule filing with the
Commission, as this proposal is that
subsequent rule filing.
2. Statutory Basis
Section 17A(b)(3)(F) of the Act
requires, in part, that the Guides be
designed to promote the prompt and
accurate clearance and settlement of
securities transactions.15 The proposed
rule change would establish the
Effective Date for the T2 Changes and
provide DTC participants
sradovich on DSK3GMQ082PROD with NOTICES
9 Supra
note 5.
10 15 U.S.C. 78s(b)(3)(A).
11 Supra note 5.
12 Id.
13 17 CFR 240.19b–4.
14 The Commission adopted an amendment to the
Settlement Cycle Rule (Rule 15c6–1(a)) under the
Act to shorten the standard settlement cycle for
most broker-dealer transactions from T+3 to T+2.
See Amendment to Securities Transaction
Settlement Cycle, Exchange Act Release No. 80295
(March 22, 2017), 82 FR 15564 (March 29, 2017).
15 15 U.S.C. 78q–1(b)(3)(F).
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(‘‘Participants’’) with an understanding
of when the T2 Changes will begin to
affect them. Knowing when the T2
Changes will begin to affect Participants
would enable them to timely fulfill their
obligations to DTC, which would in turn
ensure that securities transactions
would be promptly and accurately
cleared and settled within the industry
standard settlement cycle and, by
extension, facilitate the prompt and
accurate clearance and settlement of
securities transactions submitted to DTC
for clearing and settlement. Therefore,
DTC believes that the proposed rule
change would promote the prompt and
accurate clearance and settlement of
securities transactions, consistent with
Section 17A(b)(3)(F) of the Act cited
above.
(B) Clearing Agency’s Statement on
Burden on Competition
DTC does not believe that the
proposed rule change to (i) establish the
Effective Date for the T2 Changes, (ii)
incorporate the T2 Changes into the
Guides as of the Effective Date, and (iii)
amend the respective Legends on the
cover pages of the Guides in order to
include the Effective Date and selfeliminating language for the Legends,
and remove the Legends’ current
reference to DTC making a subsequent
rule filing with the Commission would
have any impact, or impose any burden,
on competition because the proposed
rule change is intended to provide
additional clarity in the Guides
regarding when the T2 Changes would
become effective for Participants. As
such, the proposed rule change would
not impact a particular category of
Participants nor would it impact
particular types of Participants’
businesses.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants, or Others
DTC has not received or solicited any
written comments relating to this
proposal. DTC will notify the
Commission of any written comments
received by DTC.
III. Date of Effectiveness of the
Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 16 and paragraph (f) of Rule
19b–4 thereunder.17 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
16 15
17 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
Frm 00087
Fmt 4703
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37275
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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
DTC–2017–015 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–DTC–2017–015. 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 20549–1090 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–
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37276
Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices
2017–015 and should be submitted on
or before August 30, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–16739 Filed 8–8–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81302; File No. SBSDR–
2016–02]
Security-Based Swap Data
Repositories; DTCC Data Repository
(U.S.), LLC; Notice of Filing of
Amended Application for Registration
as a Security-Based Swap Data
Repository
August 3, 2017.
I. Introduction
On April 28, 2017, DTCC Data
Repository, LLC (‘‘DDR’’) filed with the
U.S. Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’)
an amended application pursuant to
Section 13(n)(1) of the Securities
Exchange Act of 1934 (‘‘Exchange
Act’’) 1 and Exchange Act Rule 13n–1
thereunder,2 seeking registration as a
security-based swap data repository
(‘‘SDR’’) for security-based swap
(‘‘SBS’’) transactions in the equity,
credit, and interest rate 3 derivatives
asset classes (‘‘Amended Form SDR’’).4
18 17
CFR 200.30–3(a)(12).
U.S.C. 78m(n)(1).
2 17 CFR 240.13n–1.
3 DDR seeks to include in its application the
‘‘interest rates’’ asset class based on feedback from
potential DDR participants who have identified
certain types of transactions which will be reported
through the interest rate infrastructure within the
industry and that the industry participants have
identified as falling under the definition of a SBS.
The Commission notes that DDR’s application is for
registration as a SBS data repository, which the
Exchange Act defines as a ‘‘person that collects and
maintains information or records with respect to
transactions or positions in, or the terms and
conditions of, security-based swaps entered into by
third parties for the purpose of providing a
centralized recordkeeping facility for security-based
swaps.’’ 15 U.S.C. 78c(a)(75).
4 DDR filed its Amended Form SDR, including the
exhibits thereto, electronically with the
Commission. The descriptions set forth in this
notice regarding the structure and operations of
DDR have been derived, excerpted, and/or
summarized from information in DDR’s Amended
Form SDR application, which outlines the
applicant’s policies and procedures designed to
address its statutory and regulatory obligations as
an SDR registered with the Commission. DDR’s
Amended Form SDR and non-confidential exhibits
thereto are available on https://www.sec.gov/cgibin/browse-edgar?company=
dtcc&owner=exclude&action=getcompany. In
addition, the public may access copies of these
sradovich on DSK3GMQ082PROD with NOTICES
1 15
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DDR filed its initial application with the
Commission (‘‘Initial Form SDR’’) on
April 6, 2016, as amended on April 25,
2016, and notice thereof was published
in the Federal Register on July 7, 2016,
to solicit comment from interested
persons.5 The Commission received five
comment letters to date on DDR’s Initial
Form SDR.6
DDR submitted its Amended Form
SDR with both technical and
substantive changes, including, but not
limited to, revisions to several
important policies and procedures.
DDR’s Amended Form SDR described
herein includes 7 substantive
amendments to DDR’s policies and
procedures relating to fees and fee
policies, calculation of positions,
resolution of disputes, termination and
disciplinary procedures, access to and
use of data, and compliance with
Regulation SBSR. The Commission
seeks comment from interested parties
on the Amended Form SDR, the changes
discussed in this notice, as well as any
other changes DDR made in its
Amended Form SDR, and is publishing
DDR’s revisions in its Amended Form
SDR with a 21-day comment period.8
II. Background
A. SDR Registration, Duties and Core
Principles, and Regulation SBSR
Section 763(i) of the Dodd-Frank Wall
Street Reform and Consumer Protection
materials in redlined form on the Commission’s
Web site at: https://www.sec.gov/rules/other/2017/
34-81302.pdf. DDR’s Form SDR application also
constitutes an application for registration as a
securities information processor. See Exchange Act
Release No. 74246 (Feb. 11, 2015), 80 FR 14438,
14458 (Mar. 19, 2015) (‘‘SDR Adopting Release’’).
5 See Exchange Act Release No. 78216 (June 30,
2016), 81 FR 44379 (July 7, 2016) (‘‘DDR Notice
Release’’).
6 See letters from Jennifer S. Choi, Associate
General Counsel, Investment Company Institute
(August 5, 2016); Tara Kruse, Director, Co-Head of
Data, Reporting and FpML, International Swaps and
Derivatives Association, Inc. (August 8, 2016);
Andrew Rogers, Director and Global Head of
Reference Data, IHS Markit (Aug. 8, 2016);
Katherine Delp, DDR Business Manager, DTCC Data
Repository (U.S.) LLC (September 1, 2016); Timothy
W. Cameron, Asset Management Group—Head, and
Laura Martin, Asset Management Group—Managing
Director and Associate General Counsel, Securities
Industry and Financial Markets Association (August
5, 2016. Copies of all comment letters are available
at https://www.sec.gov/comments/sbsdr-2016-01/
sbsdr201601.htm.
7 DDR is amending, replacing or eliminating a
number of its exhibits not discussed in this notice.
Please see Amended Form SDR to view all changes
to DDR’s Amended Form SDR, available at https://
www.sec.gov/cgi-bin/browse-edgar?company=
dtcc&owner=exclude&action=getcompany and
https://www.sec.gov/rules/other/2017/34-81302.pdf.
8 The Commission intends to address any
comments received for this notice, as well as those
comments previously submitted regarding the
Initial Form SDR, when the Commission makes a
determination of whether to register DDR as an SDR
pursuant to Rule 13n–1(c).
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Act of 2010 added Section 13(n) to the
Securities Exchange Act of 1934
(‘‘Exchange Act’’), which makes it
‘‘unlawful for any person, unless
registered with the Commission,
directly or indirectly, to make use of the
mails or any means or instrumentality of
interstate commerce to perform the
function of a security-based SDR.’’ To be
registered and maintain registration,
each SDR must comply with certain
requirements and ‘‘core principles’’
described in Section 13(n) as well as
any requirement that the Commission
may impose by rule or regulation.9
Exchange Act Rules 13n–1 through
13n–12 (‘‘SDR Rules’’), establish the
procedures and Form SDR by which an
SDR shall register with the Commission
and certain ‘‘duties and core principles’’
to which an SDR must adhere.10 Among
other requirements, the SDR Rules
require an SDR to collect and maintain
complete and accurate SBS data and
make such data available to the
Commission and other authorities so
that relevant authorities will be better
able to monitor the buildup and
concentration of risk exposure in the
SBS market.11
Concurrent with the Commission’s
adoption of the SDR rules, the
Commission adopted,12 and later
amended,13 Exchange Act Rules 900 to
909 (‘‘Regulation SBSR’’),14 which,
among other things, provide for the
reporting of SBS trade data to registered
SDRs, and the public dissemination of
SBS transaction, volume, and pricing
information by registered SDRs. In
addition, Regulation SBSR requires each
registered SDR to register with the
Commission as a securities information
processor (‘‘SIP’’).15
B. Standard for Granting SDR
Registration
To be registered with the Commission
as an SDR and maintain such
registration, an SDR is required (absent
an exemption) to comply with the
requirements and core principles
described in Exchange Act Section
13(n), as well as with any requirements
that the Commission adopts by rule or
9 15
U.S.C. 78m(n).
CFR 240.13n–1 through 13n–12. See also
SDR Adopting Release, 80 FR 14438.
11 See id. at 14450.
12 See Securities Exchange Act Release No. 74244
(Feb. 11, 2015), 80 FR 14563 (Mar. 19, 2015).
13 See Securities Exchange Act Release No. 78321
(July 14, 2016), 81 FR 53546 (Aug. 12, 2016).
14 See 17 CFR 242.900 to 242.909; see also
Exchange Act Release No. 74244 (Feb. 11, 2015), 80
FR 14563 (Mar. 19, 2015) (‘‘Regulation SBSR
Adopting Release’’).
15 See Regulation SBSR Adopting Release, 80 FR
at 14567.
10 17
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]]>Agencies
[Federal Register Volume 82, Number 152 (Wednesday, August 9, 2017)]
[Notices]
[Pages 37274-37276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16739]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81305; File No. SR-DTC-2017-015]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Establish the Effective Date of the Settlement Cycle Rule Changes
August 3, 2017.
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 July 31, 2017, 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 the clearing agency. DTC filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(4)
thereunder.\4\ 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\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
DTC is filing this proposed rule change to (i) establish September
5, 2017 as the effective date (``Effective Date'') of the settlement
cycle rule changes (``T2 Changes'') submitted pursuant to rule filing
SR-DTC-2016-013 (``Prior Rule Filing''),\5\ (ii) incorporate the T2
Changes into the DTC Settlement Service Guide (``Settlement Guide'')
\6\ and DTC Distributions Service Guide (``Distributions Guide'') \7\
(collectively, ``Guides'') as of the Effective Date, and (iii) amend
the legends (``Legends'') on the respective cover pages of the Guides
in order to include the Effective Date and self-eliminating language
for the Legends, and remove the Legends' current reference to DTC
making a subsequent rule filing with the Commission, as this proposal
is that subsequent rule filing.\8\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 79304 (November 14,
2016), 81 FR 81825 (November 18, 2016) (SR-DTC-2016-013).
\6\ Available at https://www.dtcc.com/~/media/Files/Downloads/
legal/service-guides/Settlement.pdf.
\7\ Available at https://www.dtcc.com/~/media/Files/Downloads/
legal/service-guides/Distributions-Service-Guide-FINAL-January-
2017.pdf.
\8\ Capitalized terms not otherwise defined herein have the
respective meanings set forth in the DTC Rules, By-laws and
Organization Certificate, available at https://www.dtcc.com/~/media/
Files/Downloads/legal/rules/dtc_rules.pdf.
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, the clearing agency 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
[[Page 37275]]
clearing agency 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 Prior Rule Filing \9\ was filed by DTC pursuant to Section
19(b)(3)(A) of the Act,\10\ and was effective upon filing with the
Commission.
---------------------------------------------------------------------------
\9\ Supra note 5.
\10\ 15 U.S.C. 78s(b)(3)(A).
---------------------------------------------------------------------------
The purpose of the Prior Rule Filing was to amend the Guides to
make technical revisions related to the anticipated industry-wide move
to a shorter standard settlement cycle from the third business day
after the trade date (``T+3'') to the second business day after the
trade date (``T+2''). Although the Prior Rule Filing \11\ became
effective pursuant to Section 19(b)(3)(A) of the Act, the Prior Rule
Filing \12\ stated that the T2 Changes would not become effective and
would not be implemented until an effective date is established by a
subsequent proposed rule change to be submitted by DTC under Rule 19b-4
of the Act.\13\
---------------------------------------------------------------------------
\11\ Supra note 5.
\12\ Id.
\13\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
DTC is filing this proposed rule change to (i) establish the
Effective Date for the T2 Changes, which is also the compliance date
for the Commission's amendment to Rule 15c6-1(a) under the Act,\14\
(ii) incorporate the T2 Changes into the Guides as of the Effective
Date, and (iii) amend the Legends on the respective cover pages of the
Guides in order to include the Effective Date and self-eliminating
language for the Legends, and remove the Legends' current reference to
DTC making a subsequent rule filing with the Commission, as this
proposal is that subsequent rule filing.
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\14\ The Commission adopted an amendment to the Settlement Cycle
Rule (Rule 15c6-1(a)) under the Act to shorten the standard
settlement cycle for most broker-dealer transactions from T+3 to
T+2. See Amendment to Securities Transaction Settlement Cycle,
Exchange Act Release No. 80295 (March 22, 2017), 82 FR 15564 (March
29, 2017).
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2. Statutory Basis
Section 17A(b)(3)(F) of the Act requires, in part, that the Guides
be designed to promote the prompt and accurate clearance and settlement
of securities transactions.\15\ The proposed rule change would
establish the Effective Date for the T2 Changes and provide DTC
participants (``Participants'') with an understanding of when the T2
Changes will begin to affect them. Knowing when the T2 Changes will
begin to affect Participants would enable them to timely fulfill their
obligations to DTC, which would in turn ensure that securities
transactions would be promptly and accurately cleared and settled
within the industry standard settlement cycle and, by extension,
facilitate the prompt and accurate clearance and settlement of
securities transactions submitted to DTC for clearing and settlement.
Therefore, DTC believes that the proposed rule change would promote the
prompt and accurate clearance and settlement of securities
transactions, consistent with Section 17A(b)(3)(F) of the Act cited
above.
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\15\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Clearing Agency's Statement on Burden on Competition
DTC does not believe that the proposed rule change to (i) establish
the Effective Date for the T2 Changes, (ii) incorporate the T2 Changes
into the Guides as of the Effective Date, and (iii) amend the
respective Legends on the cover pages of the Guides in order to include
the Effective Date and self-eliminating language for the Legends, and
remove the Legends' current reference to DTC making a subsequent rule
filing with the Commission would have any impact, or impose any burden,
on competition because the proposed rule change is intended to provide
additional clarity in the Guides regarding when the T2 Changes would
become effective for Participants. As such, the proposed rule change
would not impact a particular category of Participants nor would it
impact particular types of Participants' businesses.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
DTC has not received or solicited any written comments relating to
this proposal. DTC will notify the Commission of any written comments
received by DTC.
III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \16\ and paragraph (f) of Rule 19b-4
thereunder.\17\ 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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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f).
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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 Number SR-DTC-2017-015 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-DTC-2017-015. 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 20549-1090 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-
[[Page 37276]]
2017-015 and should be submitted on or before August 30, 2017.
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\18\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-16739 Filed 8-8-17; 8:45 am]
BILLING CODE 8011-01-P
