Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Eliminate a Surcharge for Eligibility Requests Submitted to DTC Two Days Prior to Closing Date, 48287-48289 [2017-22391]
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Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Notices
Planned price adjustments. The
Governors’ Decisions include an
overview of the Postal Service’s planned
price changes, which is summarized in
the table below.
TABLE I–1—PROPOSED PRICE
CHANGES
Average
price
increase
(percent)
Product name
Domestic Competitive Products
Priority Mail Express .....................
Retail .........................................
Commercial Base ......................
Commercial Plus .......................
Priority Mail ...................................
Retail .........................................
Commercial Base ......................
Commercial Plus .......................
Parcel Select ................................
Traditional .................................
Lightweight ................................
Parcel Return Service ..................
Return Sectional Center Facility
Return Delivery Unit ..................
First-Class Package Service ........
Commercial ...............................
Retail .........................................
Retail Ground ...............................
3.9
3.9
3.7
3.7
3.9
0.8
6.2
6.1
................
4.9
7.0
4.9
5.2
4.6
................
3.9
14.5
3.9
Domestic Extra Services
Premium Forwarding Service Enrollment Fee ..............................
Adult Signature Service ................
Basic .........................................
Person-Specific .........................
Competitive Post Office Box ........
Package Intercept Service ...........
3.9
................
3.4
3.3
6.5
3.9
International Competitive Products
Global Express Guaranteed .........
Priority Mail Express International
Priority Mail International ..............
International Priority Airmail .........
International Priority Airmail MBags ......................................
International Surface Air Lift .........
International Surface Air Lift MBags ......................................
Airmail M-Bags .............................
First-Class Package International
Service ......................................
3.9
3.9
3.9
3.9
sradovich on DSK3GMQ082PROD with NOTICES
3.9
II. Initial Administrative Actions
The Commission establishes Docket
No. CP2018–8 to consider the Postal
Service’s Notice. Interested persons may
express views and offer comments on
17:10 Oct 16, 2017
Jkt 244001
By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2017–22373 Filed 10–16–17; 8:45 am]
BILLING CODE 7710–FW–P
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.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change 5 would
revise the DTC Fee Schedule (‘‘Fee
Schedule’’) 6 to eliminate a fee charged
to Participants that submit an eligibility
request or required offering documents
for a new issue (‘‘Issue’’) of Securities
two business days prior to the Closing
Date (‘‘Two-Day Surcharge’’), as
discussed below.
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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81854; File No. SR–DTC–
2017–019]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
3.9 Proposed Rule Change To Eliminate a
3.9 Surcharge for Eligibility Requests
Submitted to DTC Two Days Prior to
3.9 Closing Date
Source: See Governors’ Decision No. 16–8
at 2–5; Governors’ Decision No. 16–10 at 1;
Mail Classification Schedule sections 2105.6,
2110.6, 2115.6, 2125.6, 2135.6, 2305.6,
2315.6, 2335.6, and 2510.9.6.
VerDate Sep<11>2014
III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket
No. CP2018–8 to provide interested
persons an opportunity to express views
and offer comments on whether the
planned changes are consistent with 39
U.S.C. 3632, 3633, and 3642, 39 CFR
part 3015, and 39 CFR 3020 subparts B
and E.
2. Comments are due no later than
October 24, 2017.
3. The Commission appoints Curtis E.
Kidd to serve as Public Representative
to represent the interests of the general
public in this proceeding.
4. The Secretary shall arrange for
publication of this order in the Federal
Register.
3.9
3.9
International Ancillary Services and Special
Services
International Ancillary Services ....
whether the planned changes are
consistent with 39 U.S.C. 3632, 3633,
and 3642, 39 CFR part 3015, and 39 CFR
3020 subparts B and E. Comments are
due no later than October 24, 2017. For
specific details of the planned price
changes, interested persons are
encouraged to review the Notice, which
is available on the Commission’s Web
site, www.prc.gov.
Pursuant to 39 U.S.C. 505, Curtis E.
Kidd is appointed to serve as Public
Representative to represent the interests
of the general public in this docket.
48287
October 11, 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 October
2, 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
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00076
Fmt 4703
Background
The proposed rule change would
revise the Fee Schedule 7 to eliminate
the Two-Day Surcharge, as discussed
below.
Participants 8 are required to provide
an eligibility request for specified
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
5 Each term not otherwise defined herein has its
respective meaning as set forth in the Rules, ByLaws and Organization Certificate of DTC (the
‘‘Rules’’), available at https://www.dtcc.com/legal/
rules-and-procedures.aspx, and the DTC
Operational Arrangements (Necessary for Securities
to Become and Remain Eligible for DTC Services)
(‘‘OA’’), available at https://www.dtcc.com/∼/media/
Files/Downloads/legal/issue-eligibility/eligibility/
operational-arrangements.pdf.
6 Available at https://www.dtcc.com/∼/media/
Files/Downloads/legal/fee-guides/dtcfee
guide.pdf?la=en.
7 Supra note 6.
8 Only (i) Participants and (ii) underwriters with
an approved correspondent relationship with a
Participant, may request DTC eligibility for a new
security being offered and distributed. It is therefore
incumbent on an Issuer to have a relationship with
an underwriter or other financial institution that is
4 17
Continued
Sfmt 4703
E:\FR\FM\17OCN1.SGM
17OCN1
48288
Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Notices
Securities to DTC by the submission of
all required ‘‘Issuer’’ 9 and securities
data and all required offering
documents,10 at a minimum, through
the online Securities Origination,
Underwriting and Reliable Corporate
Action Environment (‘‘UW SOURCE’’)
system for the Security to be considered
for full service eligibility at DTC.11 In
addition to meeting other requirements
as set forth in the OA,12 a Participant
that seeks to make a new Issue eligible
for Deposit at DTC must submit the
eligibility request and offering
documentation described above through
UW SOURCE at least six business days
prior to the Closing Date. If the
Participant submits the eligibility
request or the required offering
documentation for a new Issue within
two days or less prior to the Closing
Date, it will be subject to fees, referred
to in the Fee Schedule as surcharges
(‘‘Surcharges’’), as outlined in the DTC
Fee Schedule: (a) The Two-Day
Surcharge is $2,000 per Issue (b) the
Surcharge for submission of an
eligibility request or the required
offering documentation one day prior to
the Closing Date is $5,000 per Issue
(‘‘One-Day Surcharge’’), and (c) the
Surcharge for submission of an
eligibility request or required the
offering documentation on the Closing
Date is $10,000 per Issue (‘‘Closing Date
Surcharge’’).13 The Surcharges are
designed to cover costs to DTC of
providing expedited processing of the
eligibility request.
sradovich on DSK3GMQ082PROD with NOTICES
Proposed Rule Change
After reviewing its cost structure
relating to eligibility processing, DTC
has determined that due to the
development of enhanced systemic and
processing efficiencies over time, the
Two-Day Surcharge is no longer
necessary to be charged in order to
cover the cost of processing an
a Participant or is directly associated with a
Participant that is willing to sponsor the eligibility
process for the Issuer’s securities. See OA, supra
note 5 at 1–2.
9 ‘‘Issuer’’ is defined as an issuer of Securities
deposited at DTC. See OA, supra note 5 at 1.
10 The eligibility request must contain the (i)
identity of the lead underwriter, (ii) CUSIP
number(s), (iii) principal/share amount, as
applicable per CUSIP, and interest rates and
maturity dates, as applicable per CUSIP. The
preliminary offering document must be submitted
and (e.g., official statement, prospectus, offering
memorandum) provide relevant information
necessary for DTC to process the Issue (e.g., Issuer
name, description of the Security, denominations,
name of the trustee, paying agent, transfer agent,
and if applicable, other features of the Security,
such as an early redemption). See Exhibit B of OA,
supra note 5.
11 See OA, supra note 5 at 1–2.
12 See Exhibit B of OA, supra note 5.
13 See Fee Schedule, supra note 6 at 28.
VerDate Sep<11>2014
17:10 Oct 16, 2017
Jkt 244001
eligibility request for a new Issue
submitted two days prior to Closing
Date. Therefore, DTC proposes to
eliminate the Two-Day Surcharge and
revise the Fee Schedule accordingly.
The Closing Date and One-Day
Surcharges would remain unchanged
and continue to be charged to
Participants to offset costs associated
with more manually intensive
processing associated with the timely
processing of eligibility requests
submitted on or one day before Closing
Date, as applicable.
Effective Date of Proposed Rule Change
The proposed rule change would be
effective on October 2, 2017.
2. Statutory Basis
Section 17A(b)(3)(D) of the Act 14
requires, in part, that the Rules provide
for the equitable allocation of reasonable
dues, fees, and other charges among its
participants. DTC believes that the
proposed rule change provides for the
equitable allocation of fees charged to
Participants, because elimination of the
Two-Day Surcharge would apply to all
Participants. In addition, DTC believes
that the proposed change is reasonable,
because the Two-Day Surcharge is no
longer necessary to balance DTC
revenue with its costs associated with
processing of the applicable eligibility
requests, as discussed above. Therefore,
DTC believes that the proposed rule
change is consistent with the
requirements of Section 17A(b)(3)(D) of
the Act.15
The proposed rule change is also
designed to be consistent with Rule
17Ad–22(e)(23) of the Act.16 Rule
17Ad–22(e)(23) requires DTC, inter alia,
to establish, implement, maintain and
enforce written policies and procedures
reasonably designed to provide
sufficient information to enable
participants to identify and evaluate the
risks, fees, and other material costs they
incur by participating in the covered
clearing agency. The proposed rule
change, as described above, would
update the Fee Schedule to reflect the
proposed elimination of the Two-Day
Surcharge. As such, DTC believes that
the proposed change would promote
disclosure of relevant rules and material
procedures and provide sufficient
information to enable participants and
other users of DTC’s services to evaluate
fees and other material costs of utilizing
DTC’s services, in accordance with the
14 15
PO 00000
(B) Clearing Agency’s Statement on
Burden on Competition
DTC does not believe that the
proposed rule change would have any
impact on competition, because the
Two-Day Surcharge is a minimal
amount and its elimination should not
have a material effect on (i) a
determination by an underwriter on
whether to submit an eligibility request
for a new Issue or (ii) costs incurred by
Participants in using DTC’s eligibility
services.
(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 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
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 Submissions
• 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–2017–019 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–2017–019. This file
U.S.C. 78q–1(b)(3)(D).
15 Id.
16 17
requirements of Rule 17Ad–22(e)(23),
promulgated under the Act, cited above.
17 15
CFR 240.17Ad–22(e)(23).
Frm 00077
Fmt 4703
Sfmt 4703
18 17
E:\FR\FM\17OCN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
17OCN1
Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Notices
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–
2017–019 and should be submitted on
or before November 7, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–22391 Filed 10–16–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
sradovich on DSK3GMQ082PROD with NOTICES
[Release No. 34–81848; File No. SR–
NYSEArca–2017–88]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on Proposed Rule Change To List and
Trade the Shares of the U.S. Equity
Cumulative Dividends Fund—Series
2027 and the U.S. Equity Ex-Dividend
Fund—Series 2027 Under NYSE Arca
Equities Rule 8.200, Commentary .02
On August 8, 2017, NYSE Arca, Inc.
filed with the Securities and Exchange
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:10 Oct 16, 2017
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–22386 Filed 10–16–17; 8:45 am]
BILLING CODE 8011–01–P
Jkt 244001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81849; File No. SR–
BatsBYX–2017–19; SR–BatsBZX–2017–55;
SR–BatsEDGA–2017–22; SR–BatsEDGX–
2017–35]
Self-Regulatory Organizations; Bats
BYX Exchange, Inc.; Bats BZX
Exchange, Inc.; Bats EDGA Exchange,
Inc.; Bats EDGX Exchange, Inc.; Order
Granting Approval of Proposed Rule
Changes, as Modified by Amendments
No. 1, To Harmonize the Corporate
Governance Framework of Each
Exchange With That of Chicago Board
Options Exchange, Incorporated and
C2 Options Exchange, Incorporated
October 11, 2017.
I. Introduction
On August 23, 2017, each of Bats BYX
Exchange, Inc. (‘‘BYX’’), Bats BZX
Exchange, Inc. (‘‘BZX’’), Bats EDGA
Exchange, Inc. (‘‘EDGA’’), and Bats
EDGX Exchange, Inc. (‘‘EDGX’’) (each,
an ‘‘Exchange’’ and collectively,
‘‘Exchanges’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
align its corporate governance
framework to the structure of other U.S.
securities exchanges owned by its
ultimate parent company, CBOE
Holdings, Inc. (‘‘CBOE Holdings’’). On
August 25, 2017, each of BYX, BZX,
EDGA, and EDGX filed Amendment No.
1 to its respective proposed rule change.
The proposed rule changes, as modified
by Amendments No. 1, were published
for comment in the Federal Register on
September 6, 2017.3 The Commission
received no comments on the proposed
rule changes. This order grants approval
of the proposed rule changes, each as
modified by its respective Amendment
No. 1.
II. Background
On December 16, 2016, the
Commission approved proposed rule
changes relating to a corporate
transaction (‘‘Transaction’’) in which
CBOE Holdings became the ultimate
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release Nos. 81498
(August 30, 2017), 82 FR 42127 (September 6, 2017)
(‘‘BYX Notice’’); 81497 (August 30, 2017), 82 FR
42181 (September 6, 2017) (‘‘BZX Notice’’); 81496
(August 30, 2017), 82 FR 42206 (September 6, 2017)
(‘‘EDGA Notice’’); and 81503 (August 30, 2017), 82
FR 42153 (September 6, 2017) (‘‘EDGX Notice,’’ and
together with the BYX Notice, BZX Notice, and
EDGA Notice, ‘‘Notices’’).
2 17
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 81453
(August 22, 2017), 82 FR 40816.
4 15 U.S.C. 78s(b)(2).
5 Id.
6 17 CFR 200.30–3(a)(31).
2 17
October 11, 2017.
19 17
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to list and trade shares of the
U.S. Equity Cumulative Dividends
Fund—Series 2027 and the U.S. Equity
Ex-Dividend Fund—Series 2027 under
NYSE Arca Equities Rule 8.200,
Commentary .02. The proposed rule
change was published for comment in
the Federal Register on August 28,
2017.3 The Commission has received no
comment letters on the proposed rule
change.
Section 19(b)(2) of the Act 4 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 45th day after
publication of the notice for this
proposed rule change is October 12,
2017. 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,5
designates November 26, 2017 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–2017–88).
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
48289
E:\FR\FM\17OCN1.SGM
17OCN1
]]>Agencies
[Federal Register Volume 82, Number 199 (Tuesday, October 17, 2017)]
[Notices]
[Pages 48287-48289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22391]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81854; File No. SR-DTC-2017-019]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Eliminate a Surcharge for Eligibility Requests Submitted to DTC Two
Days Prior to Closing Date
October 11, 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 October 2, 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).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change \5\ would revise the DTC Fee Schedule
(``Fee Schedule'') \6\ to eliminate a fee charged to Participants that
submit an eligibility request or required offering documents for a new
issue (``Issue'') of Securities two business days prior to the Closing
Date (``Two-Day Surcharge''), as discussed below.
---------------------------------------------------------------------------
\5\ Each term not otherwise defined herein has its respective
meaning as set forth in the Rules, By-Laws and Organization
Certificate of DTC (the ``Rules''), available at https://www.dtcc.com/legal/rules-and-procedures.aspx, and the DTC
Operational Arrangements (Necessary for Securities to Become and
Remain Eligible for DTC Services) (``OA''), available at https://
www.dtcc.com/~/media/Files/Downloads/legal/issue-eligibility/
eligibility/operational-arrangements.pdf.
\6\ Available at https://www.dtcc.com/~/media/Files/Downloads/
legal/fee-guides/dtcfeeguide.pdf?la=en.
---------------------------------------------------------------------------
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
Background
The proposed rule change would revise the Fee Schedule \7\ to
eliminate the Two-Day Surcharge, as discussed below.
---------------------------------------------------------------------------
\7\ Supra note 6.
---------------------------------------------------------------------------
Participants \8\ are required to provide an eligibility request for
specified
[[Page 48288]]
Securities to DTC by the submission of all required ``Issuer'' \9\ and
securities data and all required offering documents,\10\ at a minimum,
through the online Securities Origination, Underwriting and Reliable
Corporate Action Environment (``UW SOURCE'') system for the Security to
be considered for full service eligibility at DTC.\11\ In addition to
meeting other requirements as set forth in the OA,\12\ a Participant
that seeks to make a new Issue eligible for Deposit at DTC must submit
the eligibility request and offering documentation described above
through UW SOURCE at least six business days prior to the Closing Date.
If the Participant submits the eligibility request or the required
offering documentation for a new Issue within two days or less prior to
the Closing Date, it will be subject to fees, referred to in the Fee
Schedule as surcharges (``Surcharges''), as outlined in the DTC Fee
Schedule: (a) The Two-Day Surcharge is $2,000 per Issue (b) the
Surcharge for submission of an eligibility request or the required
offering documentation one day prior to the Closing Date is $5,000 per
Issue (``One-Day Surcharge''), and (c) the Surcharge for submission of
an eligibility request or required the offering documentation on the
Closing Date is $10,000 per Issue (``Closing Date Surcharge'').\13\ The
Surcharges are designed to cover costs to DTC of providing expedited
processing of the eligibility request.
---------------------------------------------------------------------------
\8\ Only (i) Participants and (ii) underwriters with an approved
correspondent relationship with a Participant, may request DTC
eligibility for a new security being offered and distributed. It is
therefore incumbent on an Issuer to have a relationship with an
underwriter or other financial institution that is a Participant or
is directly associated with a Participant that is willing to sponsor
the eligibility process for the Issuer's securities. See OA, supra
note 5 at 1-2.
\9\ ``Issuer'' is defined as an issuer of Securities deposited
at DTC. See OA, supra note 5 at 1.
\10\ The eligibility request must contain the (i) identity of
the lead underwriter, (ii) CUSIP number(s), (iii) principal/share
amount, as applicable per CUSIP, and interest rates and maturity
dates, as applicable per CUSIP. The preliminary offering document
must be submitted and (e.g., official statement, prospectus,
offering memorandum) provide relevant information necessary for DTC
to process the Issue (e.g., Issuer name, description of the
Security, denominations, name of the trustee, paying agent, transfer
agent, and if applicable, other features of the Security, such as an
early redemption). See Exhibit B of OA, supra note 5.
\11\ See OA, supra note 5 at 1-2.
\12\ See Exhibit B of OA, supra note 5.
\13\ See Fee Schedule, supra note 6 at 28.
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Proposed Rule Change
After reviewing its cost structure relating to eligibility
processing, DTC has determined that due to the development of enhanced
systemic and processing efficiencies over time, the Two-Day Surcharge
is no longer necessary to be charged in order to cover the cost of
processing an eligibility request for a new Issue submitted two days
prior to Closing Date. Therefore, DTC proposes to eliminate the Two-Day
Surcharge and revise the Fee Schedule accordingly. The Closing Date and
One-Day Surcharges would remain unchanged and continue to be charged to
Participants to offset costs associated with more manually intensive
processing associated with the timely processing of eligibility
requests submitted on or one day before Closing Date, as applicable.
Effective Date of Proposed Rule Change
The proposed rule change would be effective on October 2, 2017.
2. Statutory Basis
Section 17A(b)(3)(D) of the Act \14\ requires, in part, that the
Rules provide for the equitable allocation of reasonable dues, fees,
and other charges among its participants. DTC believes that the
proposed rule change provides for the equitable allocation of fees
charged to Participants, because elimination of the Two-Day Surcharge
would apply to all Participants. In addition, DTC believes that the
proposed change is reasonable, because the Two-Day Surcharge is no
longer necessary to balance DTC revenue with its costs associated with
processing of the applicable eligibility requests, as discussed above.
Therefore, DTC believes that the proposed rule change is consistent
with the requirements of Section 17A(b)(3)(D) of the Act.\15\
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\14\ 15 U.S.C. 78q-1(b)(3)(D).
\15\ Id.
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The proposed rule change is also designed to be consistent with
Rule 17Ad-22(e)(23) of the Act.\16\ Rule 17Ad-22(e)(23) requires DTC,
inter alia, to establish, implement, maintain and enforce written
policies and procedures reasonably designed to provide sufficient
information to enable participants to identify and evaluate the risks,
fees, and other material costs they incur by participating in the
covered clearing agency. The proposed rule change, as described above,
would update the Fee Schedule to reflect the proposed elimination of
the Two-Day Surcharge. As such, DTC believes that the proposed change
would promote disclosure of relevant rules and material procedures and
provide sufficient information to enable participants and other users
of DTC's services to evaluate fees and other material costs of
utilizing DTC's services, in accordance with the requirements of Rule
17Ad-22(e)(23), promulgated under the Act, cited above.
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\16\ 17 CFR 240.17Ad-22(e)(23).
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(B) Clearing Agency's Statement on Burden on Competition
DTC does not believe that the proposed rule change would have any
impact on competition, because the Two-Day Surcharge is a minimal
amount and its elimination should not have a material effect on (i) a
determination by an underwriter on whether to submit an eligibility
request for a new Issue or (ii) costs incurred by Participants in using
DTC's eligibility services.
(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 \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.
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\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 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 Submissions
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-2017-019 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-2017-019. This file
[[Page 48289]]
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-2017-019 and should be
submitted on or before November 7, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-22391 Filed 10-16-17; 8:45 am]
BILLING CODE 8011-01-P
