Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add a Discount to the Pricing Schedule for Special Requests for Security Position Reports Relating to Municipal Security Issues, 43274-43276 [2017-19476]
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43274
Federal Register / Vol. 82, No. 177 / Thursday, September 14, 2017 / Notices
amount to be invested by each such
party will be allocated among them pro
rata based on each party’s capital
available for investment in the asset
class being allocated, up to the amount
proposed to be invested by each.
(d) The acquisition of Follow-On
Investments as permitted by this
condition will be considered a CoInvestment Transaction for all purposes
and be subject to the other conditions
set forth in the application.
9. The Independent Directors of each
Regulated Entity will be provided
quarterly for review all information
concerning Potential Co-Investment
Transactions and Co-Investment
Transactions, including investments
made by other Regulated Entities or
Affiliated Funds that the Regulated
Entity considered but declined to
participate in, so that the Independent
Directors may determine whether all
investments made during the preceding
quarter, including those investments
that the Regulated Entity considered but
declined to participate in, comply with
the conditions of the Order. In addition,
the Independent Directors will consider
at least annually the continued
appropriateness for the Regulated
Entities of participating in new and
existing Co-Investment Transactions.
10. Each Regulated Entity will
maintain the records required by section
57(f)(3) as if each of the Regulated
Entities were a BDC and each of the
investments permitted under these
conditions were approved by the
Required Majority under section 57(f).
11. No Independent Director of a
Regulated Entity will also be a director,
general partner, managing member or
principal, or otherwise an ‘‘affiliated
person’’ (as defined in the Act) of, any
of the Affiliated Funds.
12. The expenses, if any, associated
with acquiring, holding or disposing of
any securities acquired in a CoInvestment Transaction (including,
without limitation, the expenses of the
distribution of any such securities
registered for sale under the 1933 Act)
shall, to the extent not payable by the
Regulated Entity Advisers or the
Affiliated Investment Advisers under
their respective investment advisory
agreements with the Regulated Entities
and the Participating Funds, be shared
by the applicable Regulated Entities and
the Participating Funds in proportion to
the relative amounts of their securities
held or being acquired or disposed of,
as the case may be.
13. Any transaction fee (including
break-up or commitment fees but
excluding brokers’ fees contemplated by
section 57(k)(2) or 17(e)(2), as
applicable) received in connection with
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16:41 Sep 13, 2017
Jkt 241001
a Co-Investment Transaction will be
distributed to the applicable Regulated
Entities and the Participating Funds on
a pro rata basis based on the amounts
each invested or committed, as the case
may be, in such Co-Investment
Transaction. If any transaction fee is to
be held by a Regulated Entity Adviser or
an Affiliated Investment Adviser
pending consummation of the
transaction, the fee will be deposited
into an account maintained by the
Regulated Entity Adviser or such other
adviser, as the case may be, at a bank
or banks having the qualifications
prescribed in Section 26(a)(1), and the
account will earn a competitive rate of
interest that will also be divided pro
rata among each applicable Regulated
Entity and each Participating Fund
based on the amount each invests in
such Co-Investment Transaction. None
of the Affiliated Funds, Regulated Entity
Advisers, Affiliated Investment
Advisers, or any affiliated person of any
of the Regulated Entities will receive
additional compensation or
remuneration of any kind (other than (a)
in the case of the Regulated Entities and
the Participating Funds, the pro rata
transaction fees described above and
fees or other compensation described in
condition 2(c)(iii)(C) and (b) in the case
of the Regulated Entity Advisers and the
Affiliated Advisers, investment advisory
fees paid in accordance with the
Regulated Entities’ and Affiliated
Funds’ governing agreements) as a result
of or in connection with a CoInvestment Transaction.
14. If the Regulated Entity Advisers,
the Principals, any person controlling,
controlled by, or under common control
with the Regulated Entity Advisers or
the Principals, and the Affiliated Funds
(collectively, the ‘‘Holders’’) own in the
aggregate more than 25% of the
outstanding voting securities of a
Regulated Entity (‘‘Shares’’), then the
Holders will vote such Shares as
directed by an independent third party
when voting on (1) the election of
directors; (2) the removal of one or more
directors; or (3) any other matter under
either the Act or applicable State law
affecting the Board’s composition, size
or manner of election.
15. The Medley Proprietary Accounts
will not be permitted to invest in a
Potential Co-Investment Transaction
except to the extent the aggregate
demand from the Regulated Entities and
the other Affiliated Funds is less than
the total investment opportunity.
16. The Regulated Entity Advisers and
the Affiliated Investment Advisers will
maintain written policies and
procedures reasonably designed to
ensure compliance with the foregoing
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conditions. These policies and
procedures will require, among other
things, that each Regulated Entity
Adviser will be notified of all Potential
Co-Investment Transactions that fall
within the then-current Objectives and
Strategies of any Regulated Entity it
advises and will be given sufficient
information to make its independent
determination and recommendations
under conditions 1, 2(a), 7 and 8.
17. Each Regulated Entity’s chief
compliance officer, as defined in Rule
38a–1(a)(4), will prepare an annual
report for its Board each year that
evaluates (and documents the basis of
that evaluation) the Regulated Entity’s
compliance with the terms and
conditions of the application and the
procedures established to achieve such
compliance.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–19473 Filed 9–13–17; 8:45 am]
BILLING CODE P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81554; File No. SR–DTC–
2017–017]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Add a
Discount to the Pricing Schedule for
Special Requests for Security Position
Reports Relating to Municipal Security
Issues
September 8, 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
September 1, 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)(2) 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).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
2 17
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Federal Register / Vol. 82, No. 177 / Thursday, September 14, 2017 / Notices
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change by DTC
would revise the text of the pricing
schedule (‘‘Pricing Schedule’’) for
Security Position Reports (‘‘SPRs’’) 5
with respect to charges for special
request reports (‘‘Special Requests’’)
relating to municipal security issues
(‘‘Muni Issues’’). Specifically, the
proposed rule change would add to the
Pricing Schedule a discount (‘‘Muni
Discount’’) for Special Requests relating
to Muni Issues (‘‘Special Muni
Requests’’).6
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
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
asabaliauskas on DSKBBXCHB2PROD with NOTICES
1. Purpose
SPRs, which are available by
subscription on a daily, weekly, or
monthly basis,7 are listings by CUSIP
number of Participants’ holdings of
Issuer Securities on a specific date for
specific Securities, that DTC may
provide to Issuers, trustees and
authorized third-party Agents of Issuers
and trustees (collectively, ‘‘Users’’).8 A
Special Request, which may be ordered
5 Available at https://www.dtcc.com/assetservices/issuer-services/spr-pricing.
6 Terms not otherwise defined herein have the
meaning set forth in the DTC Rules, By-laws and
Organization Certificate (‘‘DTC Rules’’), available at
https://www.dtcc.com/legal/rules-andprocedures.aspx, and the DTC Operational
Arrangements (‘‘OA’’), available at https://
www.dtcc.com/∼/media/Files/Downloads/legal/
issue-eligibility/eligibility/operationalarrangements.pdf.
7 Daily, weekly, and monthly subscriptions are
made on an annual basis. A monthly subscription
shows the closing position for each Participant
having the applicable Security credited to its
Account on the last Business Day of the month. A
weekly subscription shows the daily closing
position for each Participant having the Security
credited to its Account during the week along with
the weekly percentage and share changes. A daily
subscription shows the closing position for each
Participant having the Security credited to its
Account on each Business Day.
8 OA, supra note 6, at 53.
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16:41 Sep 13, 2017
Jkt 241001
by a User as needed on any given
Business Day, shows the closing
position for each Participant having the
applicable Security credited to its
Account on a specified date. Users
request these reports for various
reasons, including facilitating their
proxy activities and communicating
with holders with respect to their
issues. Because of the cost that DTC
incurs in producing these, and other
related reports, DTC charges Users a fee
when they request a report, as set forth
in the Pricing Schedule.9
The fee for Special Requests is $120
per report, per date requested. However,
DTC is proposing to provide the Muni
Discount for Special Muni Requests to
reduce the Users’ cost burden relating to
high volume Special Muni Requests.
The Muni Discount would be applied to
Special Requests, using the calculation
described further below, when the
following criteria (‘‘Muni Discount
Criteria’’) are met:
(i) The CUSIP numbers entered for
Special Muni Requests share the same
six digit base and the same ‘‘Dated
Date’’; 10 and
(ii) the Special Muni Requests are
entered on the same Business Day with
the same request start date by the same
User.
Under the proposed Muni Discount, a
User would be charged the standard
$120 fee for a Special Muni Request, but
the User would receive for free up to
nine additional Special Muni Requests
that have the same Muni Discount
Criteria as the first Special Muni
Request. In other words, if a User
purchases one Special Muni Request,
the User would receive nine more for
free, where those additional nine have
the same Muni Discount Criteria. If the
User submits an eleventh Special Muni
Request that meets the same Muni
Discount Criteria as the first, the User
would be charged another fee of $120
for that request, but then the next nine
Special Muni Requests with the same
Muni Discount Criteria would be free of
charge. In the same way, if the User
submits a new Special Muni Request
with different Muni Discount Criteria
than the prior submissions, a fee of $120
would be charged and the next nine
Special Muni Requests conforming to
the same criteria would be free of
charge.
DTC believes that applying the Muni
Discount to Special Muni Requests
would allow DTC to align the fees
note 5.
Dated Date is the date at which interest
begins to accrue on fixed income securities,
including municipal bonds. A footnote would be
added to the Pricing Schedule defining Dated Date.
charged to Users for Special Muni
Requests with DTC’s costs of providing
the related reports, because Special
Muni Requests by a User for a single
base CUSIP often involve a high volume
of requests made simultaneously,
allowing the requests to be fulfilled at
the same time (rather than, for example,
individually on separate days) and
therefore resulting in a lower cost per
request to DTC than low volume
requests or otherwise related requests
that may be spread over multiple days.
Proposed Revisions to the Pricing
Schedule
In connection with this proposal, DTC
would update the Special Requests
section of the Pricing Schedule to reflect
details of the Muni Discount as
described above.
Implementation
The proposed rule change would be
effective upon filing.
2. Statutory Basis
Section 17A(b)(3)(D) of the Act 11
requires that the rules of the clearing
agency be designed, inter alia, in
general, to provide for the equitable
allocation of reasonable dues, fees and
other charges. DTC believes that the
proposed rule change is consistent with
this provision because, by accounting
for the reduced costs of processing high
volume Special Muni Requests,
providing the Muni Discount allows
DTC to align the fees charged to Users
for such Special Muni Requests with
DTC’s costs of providing the reports.
Thus, by better aligning User fees with
DTC’s costs of providing Special Muni
Requests, the proposed rule change
would provide for a better equitable
allocation of reasonable dues, fees, and
other charges.
(B) Clearing Agency’s Statement on
Burden on Competition
DTC does not believe that the
proposed rule change would place a
burden on competition because it would
not have an effect on User access to
SPRs. The proposed rule change may
promote competition by allowing Users
to make Special Requests in higher
volumes as needed to conduct their
shareholder communication and other
related activities without incurring
significantly higher DTC fees.
9 Supra
10 The
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43275
11 15
E:\FR\FM\14SEN1.SGM
U.S.C. 78q–1(b)(3)(D).
14SEN1
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Federal Register / Vol. 82, No. 177 / Thursday, September 14, 2017 / Notices
(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 12 and paragraph (f) of Rule
19b–4 thereunder.13 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
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:
asabaliauskas on DSKBBXCHB2PROD with NOTICES
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–2017–017 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549.
All submissions should refer to File
Number SR–DTC–2017–017. 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
12 15
13 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
16:41 Sep 13, 2017
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–
2017–017 and should be submitted on
or before October 5, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–19476 Filed 9–13–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
32811; 812–14782]
Innovator ETFs Trust, et al.
September 11, 2017.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
AGENCY:
Notice of an application for an order
under section 6(c) of the Investment
Company Act of 1940 (the ‘‘Act’’) for an
exemption from sections 2(a)(32),
5(a)(1), 22(d), and 22(e) of the Act and
rule 22c–1 under the Act, under
sections 6(c) and 17(b) of the Act for an
exemption from sections 17(a)(1) and
17(a)(2) of the Act, and under section
12(d)(1)(J) for an exemption from
sections 12(d)(1)(A) and 12(d)(1)(B) of
the Act. The requested order would
permit (a) index-based series of certain
open-end management investment
companies (‘‘Funds’’) to issue shares
redeemable in large aggregations only
(‘‘Creation Units’’); (b) secondary market
transactions in Fund shares to occur at
negotiated market prices rather than at
net asset value (‘‘NAV’’); (c) certain
Funds to pay redemption proceeds,
under certain circumstances, more than
seven days after the tender of shares for
14 17
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PO 00000
CFR 200.30–3(a)(12).
Frm 00061
Fmt 4703
Sfmt 4703
redemption; (d) certain affiliated
persons of a Fund to deposit securities
into, and receive securities from, the
Fund in connection with the purchase
and redemption of Creation Units; and
(e) certain registered management
investment companies and unit
investment trusts outside of the same
group of investment companies as the
Funds (‘‘Funds of Funds’’) to acquire
shares of the Funds.
APPLICANTS: Innovator ETFs Trust
(formerly, Academy Funds Trust)
(‘‘Trust’’), a Delaware statutory trust
registered under the Act as an open-end
management investment company with
multiple series, Innovator Capital
Management, LLC (‘‘Innovator’’),
Delaware limited liability company
registered as an investment adviser
under the Investment Advisers Act of
1940, and Quasar Distributors, LLC
(‘‘Distributor’’), a Delaware limited
liability company and broker-dealer
registered under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’).
FILING DATES: The application was filed
on June 7, 2017, and amended on
September 8, 2017.
HEARING OR NOTIFICATION OF HEARING: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on October 5, 2017, and
should be accompanied by proof of
service on applicants, in the form of an
affidavit, or for lawyers, a certificate of
service. Pursuant to rule 0–5 under the
Act, hearing requests should state the
nature of the writer’s interest, any facts
bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
ADDRESSES: Secretary, Securities and
Exchange Commission, 100 F Street NE.,
Washington, DC 20549–1090;
Applicants: Innovator and the Trust,
120 N. Hale Street, Suite 200, Wheaton
IL, 60187; the Distributor, 615 East
Michigan Street, Milwaukee, Wisconsin
53202.
FOR FURTHER INFORMATION CONTACT: Jill
Ehrlich, Senior Counsel, at (202) 551–
6819, or Andrea Ottomanelli Magovern,
Acting Branch Chief, at (202) 551–6821
(Division of Investment Management,
Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
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]]>Agencies
[Federal Register Volume 82, Number 177 (Thursday, September 14, 2017)]
[Notices]
[Pages 43274-43276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19476]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81554; File No. SR-DTC-2017-017]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Add a Discount to the Pricing Schedule for Special Requests for
Security Position Reports Relating to Municipal Security Issues
September 8, 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 September 1, 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)(2) 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)(2).
---------------------------------------------------------------------------
[[Page 43275]]
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change by DTC would revise the text of the
pricing schedule (``Pricing Schedule'') for Security Position Reports
(``SPRs'') \5\ with respect to charges for special request reports
(``Special Requests'') relating to municipal security issues (``Muni
Issues''). Specifically, the proposed rule change would add to the
Pricing Schedule a discount (``Muni Discount'') for Special Requests
relating to Muni Issues (``Special Muni Requests'').\6\
---------------------------------------------------------------------------
\5\ Available at https://www.dtcc.com/asset-services/issuer-services/spr-pricing.
\6\ Terms not otherwise defined herein have the meaning set
forth in the DTC Rules, By-laws and Organization Certificate (``DTC
Rules''), available at https://www.dtcc.com/legal/rules-and-procedures.aspx, and the DTC Operational Arrangements (``OA''),
available at https://www.dtcc.com/~/media/Files/Downloads/legal/
issue-eligibility/eligibility/operational-arrangements.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 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
SPRs, which are available by subscription on a daily, weekly, or
monthly basis,\7\ are listings by CUSIP number of Participants'
holdings of Issuer Securities on a specific date for specific
Securities, that DTC may provide to Issuers, trustees and authorized
third-party Agents of Issuers and trustees (collectively,
``Users'').\8\ A Special Request, which may be ordered by a User as
needed on any given Business Day, shows the closing position for each
Participant having the applicable Security credited to its Account on a
specified date. Users request these reports for various reasons,
including facilitating their proxy activities and communicating with
holders with respect to their issues. Because of the cost that DTC
incurs in producing these, and other related reports, DTC charges Users
a fee when they request a report, as set forth in the Pricing
Schedule.\9\
---------------------------------------------------------------------------
\7\ Daily, weekly, and monthly subscriptions are made on an
annual basis. A monthly subscription shows the closing position for
each Participant having the applicable Security credited to its
Account on the last Business Day of the month. A weekly subscription
shows the daily closing position for each Participant having the
Security credited to its Account during the week along with the
weekly percentage and share changes. A daily subscription shows the
closing position for each Participant having the Security credited
to its Account on each Business Day.
\8\ OA, supra note 6, at 53.
\9\ Supra note 5.
---------------------------------------------------------------------------
The fee for Special Requests is $120 per report, per date
requested. However, DTC is proposing to provide the Muni Discount for
Special Muni Requests to reduce the Users' cost burden relating to high
volume Special Muni Requests. The Muni Discount would be applied to
Special Requests, using the calculation described further below, when
the following criteria (``Muni Discount Criteria'') are met:
(i) The CUSIP numbers entered for Special Muni Requests share the
same six digit base and the same ``Dated Date''; \10\ and
---------------------------------------------------------------------------
\10\ The Dated Date is the date at which interest begins to
accrue on fixed income securities, including municipal bonds. A
footnote would be added to the Pricing Schedule defining Dated Date.
---------------------------------------------------------------------------
(ii) the Special Muni Requests are entered on the same Business Day
with the same request start date by the same User.
Under the proposed Muni Discount, a User would be charged the
standard $120 fee for a Special Muni Request, but the User would
receive for free up to nine additional Special Muni Requests that have
the same Muni Discount Criteria as the first Special Muni Request. In
other words, if a User purchases one Special Muni Request, the User
would receive nine more for free, where those additional nine have the
same Muni Discount Criteria. If the User submits an eleventh Special
Muni Request that meets the same Muni Discount Criteria as the first,
the User would be charged another fee of $120 for that request, but
then the next nine Special Muni Requests with the same Muni Discount
Criteria would be free of charge. In the same way, if the User submits
a new Special Muni Request with different Muni Discount Criteria than
the prior submissions, a fee of $120 would be charged and the next nine
Special Muni Requests conforming to the same criteria would be free of
charge.
DTC believes that applying the Muni Discount to Special Muni
Requests would allow DTC to align the fees charged to Users for Special
Muni Requests with DTC's costs of providing the related reports,
because Special Muni Requests by a User for a single base CUSIP often
involve a high volume of requests made simultaneously, allowing the
requests to be fulfilled at the same time (rather than, for example,
individually on separate days) and therefore resulting in a lower cost
per request to DTC than low volume requests or otherwise related
requests that may be spread over multiple days.
Proposed Revisions to the Pricing Schedule
In connection with this proposal, DTC would update the Special
Requests section of the Pricing Schedule to reflect details of the Muni
Discount as described above.
Implementation
The proposed rule change would be effective upon filing.
2. Statutory Basis
Section 17A(b)(3)(D) of the Act \11\ requires that the rules of the
clearing agency be designed, inter alia, in general, to provide for the
equitable allocation of reasonable dues, fees and other charges. DTC
believes that the proposed rule change is consistent with this
provision because, by accounting for the reduced costs of processing
high volume Special Muni Requests, providing the Muni Discount allows
DTC to align the fees charged to Users for such Special Muni Requests
with DTC's costs of providing the reports. Thus, by better aligning
User fees with DTC's costs of providing Special Muni Requests, the
proposed rule change would provide for a better equitable allocation of
reasonable dues, fees, and other charges.
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\11\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Clearing Agency's Statement on Burden on Competition
DTC does not believe that the proposed rule change would place a
burden on competition because it would not have an effect on User
access to SPRs. The proposed rule change may promote competition by
allowing Users to make Special Requests in higher volumes as needed to
conduct their shareholder communication and other related activities
without incurring significantly higher DTC fees.
[[Page 43276]]
(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 \12\ and paragraph (f) of Rule 19b-4
thereunder.\13\ 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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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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-2017-017 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549.
All submissions should refer to File Number SR-DTC-2017-017. 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-2017-017 and should be
submitted on or before October 5, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19476 Filed 9-13-17; 8:45 am]
BILLING CODE 8011-01-P
