Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Reorganizations Service Guide, 32508-32510 [2019-14400]
Download as PDF
<![CDATA[
32508
Federal Register / Vol. 84, No. 130 / Monday, July 8, 2019 / Notices
Although there do not appear to be any
issues relevant to approval or
disapproval which would be facilitated
by an oral presentation of views, data,
and arguments, the Commission will
consider, pursuant to Rule 19b–4, any
request for an opportunity to make an
oral presentation.33
Such comments should be submitted
by July 29, 2019. Rebuttal comments
should be submitted by August 12,
2019.
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–
FINRA–2019–008 on the subject line.
jbell on DSK3GLQ082PROD with NOTICES
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–FINRA–2019–008. The 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 website (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 website 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 also will be available for
inspection and copying at the principal
office of FINRA. All comments received
will be posted without change. Persons
33 Section 19(b)(2) of the Act, as amended by the
Securities Act Amendments of 1975, Public Law
94–29 (June 4, 1975), grants the Commission
flexibility to determine what type of proceeding—
either oral or notice and opportunity for written
comments—is appropriate for consideration of a
particular proposal by a self-regulatory
organization. See Securities Act Amendments of
1975, Senate Comm. on Banking, Housing & Urban
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
(1975).
VerDate Sep<11>2014
19:44 Jul 05, 2019
Jkt 247001
submitting comments are cautioned that
we do not redact or edit personal
identifying information from comment
submissions. You should submit only
information that you wish to make
publicly available. All submissions
should refer to File Number SR–FINRA–
2019–008 and should be submitted on
or before July 29, 2019. Rebuttal
comments should be submitted by
August 12, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.34
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–14401 Filed 7–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86255; File No. SR–DTC–
2019–004]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
the Reorganizations Service Guide
July 1, 2019.
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 June 26,
2019, 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
The proposed rule change by DTC
would revise the Reorganizations
Service Guide (‘‘Guide’’) 5 to postpone
the date for the retirement of the RIPS
(Reorganization Inquiry for Participants)
function on the Participant Terminal
CFR 200.30–3(a)(57).
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).
5 Each capitalized term not otherwise defined
herein has its respective meaning as set forth in the
Rules, By-Laws and Organization Certificate of DTC
(‘‘DTC Rules’’) and in the Guide, available at https://
www.dtcc.com/legal/rules-and-procedures.aspx.
PO 00000
34 17
1 15
Frm 00108
Fmt 4703
Sfmt 4703
System (‘‘PTS’’) and Participant Browser
Service (‘‘PBS’’),6 as more fully
described 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
The purpose of the proposed rule
change is to amend the Guide to
postpone the date for the retirement of
the RIPS function on PTS and PBS, as
more fully described below.
Background
On May 21, 2019, DTC filed with the
Commission a proposed rule change to,
among other things, update its corporate
action service by transitioning corporate
action functions on PTS and PBS for the
processing of reorganizations
(‘‘Reorganizations’’) 7 to its Corporate
Action Web (‘‘CA Web’’) 8 system.9 The
6 PTS and PBS are user interfaces for DTC’s
Settlement and Asset Services functions. PTS is
mainframe-based and PBS is web-based with a
mainframe back-end. Participants may use either
PTS or PBS, as they are functionally equivalent.
References to a particular PTS function in this rule
filing include the corresponding PBS function.
7 DTC offers an array of services for processing
corporate action events. The services fall into three
categories: (i) Distributions, such as cash and stock
dividends, principal and interest, and capital gain
distributions; (ii) redemptions, such as full and
partial calls, final paydowns, and maturities; and
(iii) Reorganizations, which include both
mandatory and voluntary reorganizations such as
exchange offers, conversions, Dutch auctions,
mergers, puts, reverse stock splits, tender offers,
and warrant exercises.
8 In PTS/PBS, corporate actions are announced
using DTC proprietary codes to signify event types.
CA Web replaces DTC’s proprietary codes with
market standard language. For example, a cash
dividend payment that PTS/PBS identifies as a
‘‘08’’ function code is identified in CA Web as a
‘‘Cash Dividend’’ event. Additionally, CA Web
incorporates the entire lifecycle of an event into one
platform with a unique corporate action identifier
that follows the event through its lifecycle. CA Web
gives Participants the ability to customize screen
displays and offers flexible methods for event
search, neither of which is available in the PTS/PBS
systems.
9 See Securities Exchange Act Release No. 85986
(May 31, 2019), 84 FR 26466 (June 6, 2019) (SR–
DTC–2019–003).
E:\FR\FM\08JYN1.SGM
08JYN1
Federal Register / Vol. 84, No. 130 / Monday, July 8, 2019 / Notices
rule change provided that, at the
conclusion of the pilot test phase in Q2
of 2019, Reorganizations activity within
the ADJI (Adjustment Inquiries), RIPS,
and SDAR Dept. C 10 (Same Day
Allocation Reporting) functions 11 will
be retired from PTS/PBS and the
functionality will only be available on
CA Web. DTC has been communicating
this change to Participants through CA
Web review sessions, Important Notices,
and industry outreach.12
Proposed Rule Change
Subsequent to the May 21, 2019 rule
filing, DTC began to receive feedback
from Participants indicating that they
need additional time to test the parallel
RIPS functionality on CA Web, the
‘‘Reorganizations Announcements’’
function, before the retirement of the
RIPS function on PTS/PBS.
In response to this feedback, with this
proposed rule change, DTC would
postpone the date for the retirement of
the RIPS function on PTS/PBS. DTC
will continue the pilot test phase in
which the RIPS function would
continue to be available on PTS/PBS,
and its parallel Reorganizations
Announcements function would
continue to be available on CA Web. A
new date for the retirement of the RIPS
function from PTS/PBS would be
announced, subject to a future proposed
rule change and Important Notice issued
by DTC. The proposed rule change
would not impact the retirement of PTS/
PBS function ADJI and SDAR Dept. C.
Pursuant to the proposed rule change,
DTC would amend the Guide to reflect
the postponement of the RIPS function
from PTS/PBS.
2. Statutory Basis
jbell on DSK3GLQ082PROD with NOTICES
DTC believes that this proposal is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a registered
clearing agency. Specifically, DTC
believes that this proposal is consistent
10 The initial rule filing on May 21, 2019
inadvertently referred to this function as SDAR
Dept ‘‘R’’, a related element of the SDAR function
that had already been retired. The Guide and
Participant outreach refer to the correct element of
the function, SDAR Dept ‘‘C’’.
11 See PTS/PBS Function Guides, available at
https://www.dtcc.com/settlement-and-asset-services/
edl-ptspbs-function-guides.
12 See Important Notice B10792–19 (March 14,
2019); Important Notice B8760–18 (June 7, 2018),
Important Notice B9072–18 (July 9, 2018) and
Important Notice B9122–18 (July 26, 2018),
available at https://www.dtcc.com/legal/importantnotices; and DTC Corporate Actions Product Update
to SIFMA (October 11, 2018), available at https://
www.sifma.org/wp-content/uploads/2017/05/
SIFMA-CAS_DTCC-Corporate-Actions-Update_
2018.pdf.
VerDate Sep<11>2014
19:44 Jul 05, 2019
Jkt 247001
with Section 17A(b)(3)(F) of the Act,13
for the reasons described below.
Section 17(A)(b)(3)(F) of the Act,
requires, inter alia, that DTC Rules be
designed to promote the prompt and
accurate clearance and settlement of
securities transactions.14 The proposed
rule change would postpone the date for
the retirement of the RIPS function from
PTS/PBS until further notice. By
affording Participants additional time to
test the Reorganizations
Announcements function on CA Web
prior to the retirement of RIPS, the
proposed rule change would provide
Participants the opportunity to
minimize potential business
interruption in their processing of
reorganization events when the RIPS
function is retired. Therefore, by
providing Participants with the
opportunity to minimize potential
business disruption in this manner, DTC
believes that the proposed rule change
is designed to promote the prompt and
accurate clearance and settlement of
securities transactions related to
Reorganizations, consistent with Section
17A(b)(3)(F) of the Act.15
(B) Clearing Agency’s Statement on
Burden on Competition
DTC believes that the proposed rule
change with respect to postponing the
date for the retirement of the RIPS
function from PTS/PBS may impact
competition by potentially reducing
business interruption in Participants’
processing of reorganization events.16
The proposed rule change would afford
Participants additional time to test the
Reorganizations Announcements
function on CA Web prior to the
retirement of RIPS, thereby providing
Participants the opportunity to
minimize potential business
interruption in their processing of
reorganization events when the RIPS
function is retired. Therefore, DTC
believes that the proposed rule change
with respect to postponing the date for
the retirement of the RIPS function from
PTS/PBS would not impose a burden on
competition, but may promote
competition.17
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants, or Others
Written comments relating to the
proposed rule change have not been
solicited or received. DTC will notify
PO 00000
13 15
U.S.C. 78q–1(b)(3)(F).
14 Id.
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 18 and paragraph (f) of Rule
19b–4 thereunder.19 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 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–2019–004 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–2019–004. 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 website (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 website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
15 Id.
16 15
U.S.C. 78q–1(b)(3)(I).
17 Id.
Frm 00109
18 15
19 17
Fmt 4703
Sfmt 4703
32509
E:\FR\FM\08JYN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
08JYN1
32510
Federal Register / Vol. 84, No. 130 / Monday, July 8, 2019 / Notices
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 website
(https://www.dtcc.com/legal/sec-rulefilings.aspx). All comments received
will be posted without change. Persons
submitting comments are cautioned that
we do not redact or edit personal
identifying information from comment
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–DTC–
2019–004 and should be submitted on
or before July 29, 2019.
Dated: June 7, 2019.
Brian J. Bulatao,
Under Secretary of State for Management,
Department of State.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Eduardo A. Aleman,
Deputy Secretary.
SUMMARY:
[FR Doc. 2019–14400 Filed 7–5–19; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Delegation of Authority No. 471]
jbell on DSK3GLQ082PROD with NOTICES
Re-Delegation of Authority To Invoke
the Law Enforcement Privilege
Information Relating To Vetting of
Certain Refugee Applicants
By virtue of the authority delegated to
the Under Secretary of State for
Management by the laws of the United
States, as delegated by Department of
State Delegation of Authority No. 462, I
hereby re-delegate to the Director of
Admissions for the Bureau of
Population, Refugees, and Migration, to
the extent authorized by law, the
authority to invoke the law enforcement
privilege with respect to information
relating to security vetting of refugee
applicants to the U.S. Refugee
Admissions Program.
This re-delegation of authority does
not revoke or otherwise affect any other
delegation of authority currently in
effect. The authority re-delegated herein
may also be exercised, to the extent
authorized by law, by the Secretary, the
Deputy Secretary, the Under Secretary
and Deputy Under Secretary for
Management, the Under Secretary for
Civilian Security, Democracy, and
Human Rights, and the Assistant
Secretary for Population, Refugees, and
Migration.
This re-delegation is effective upon
signature and will be published in the
Federal Register.
[FR Doc. 2019–14454 Filed 7–5–19; 8:45 am]
BILLING CODE 4710–33–P
DEPARTMENT OF STATE
[Public Notice: 10817]
Notice of Determinations; Culturally
Significant Objects Imported for
Exhibition—Determinations:
‘‘Verrocchio: Sculptor and Painter of
Renaissance Florence’’ Exhibition
Notice is hereby given of the
following determinations: I hereby
determine that certain objects to be
included in the exhibition ‘‘Verrocchio:
Sculptor and Painter of Renaissance
Florence,’’ imported from abroad for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to loan
agreements with the foreign owners or
custodians. I also determine that the
exhibition or display of the exhibit
objects at the National Gallery of Art,
Washington, District of Columbia, from
on or about September 15, 2019, until
on or about January 12, 2020, and at
possible additional exhibitions or
venues yet to be determined, is in the
national interest. I have ordered that
Public Notice of these determinations be
published in the Federal Register.
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
19:44 Jul 05, 2019
Elliot Chiu, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–632–6471; email:
section2459@state.gov). The mailing
address is U.S. Department of State, L/
PD, SA–5, Suite 5H03, Washington, DC
20522–0505.
The
foregoing determinations were made
pursuant to the authority vested in me
by the Act of October 19, 1965 (79 Stat.
985; 22 U.S.C. 2459), Executive Order
12047 of March 27, 1978, the Foreign
Affairs Reform and Restructuring Act of
1998 (112 Stat. 2681, et seq.; 22 U.S.C.
6501 note, et seq.), Delegation of
Authority No. 234 of October 1, 1999,
Delegation of Authority No. 236–3 of
August 28, 2000, and Delegation of
Authority No. 236–28 of June 10, 2019.
SUPPLEMENTARY INFORMATION:
Rick A. Ruth,
Senior Advisor, Bureau of Educational and
Cultural Affairs, Department of State.
BILLING CODE 4710–05–P
Jkt 247001
[Delegation of Authority No. 473]
Delegation of Authority Approval of
Construction Security Certifications to
Congress
By virtue of the authority vested in
the Secretary of State by the laws of the
United States, including 22 U.S.C.
2651a; the Diplomatic Security Act,
codified in 22 U.S.C. 4801, et seq.; and
the Foreign Affairs Authorization Act,
1988 and 1989 (Pub. L. 100–204) (the
Act), as amended, I hereby delegate to
the Under Secretary for Management, to
the extent authorized by law, the
authority to approve submission to
Congress of the certifications required
by section 160(a) of the Act.
The authority delegated herein may
also be exercised by the Deputy Under
Secretary for Management, to the extent
authorized by law; and by the Secretary
and Deputy Secretary.
This delegation does not repeal or
amend any other delegation currently in
effect. Any act, authority, or procedure
subject to, or affected by, this delegation
shall be deemed to be such act,
authority, or procedure as amended
from time to time.
This delegation of authority shall be
published in the Federal Register.
Dated: June 19, 2019.
Michael R. Pompeo,
Secretary of State, Department of State.
[FR Doc. 2019–14455 Filed 7–5–19; 8:45 am]
BILLING CODE 4710–43–P
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2019–14421 Filed 7–5–19; 8:45 am]
20 17
DEPARTMENT OF STATE
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
SURFACE TRANSPORTATION BOARD
[Docket No. AB 33 (Sub-No. 339X)]
Union Pacific Railroad Company—
Abandonment Exemption—In Harris
and Chambers Counties, Tex.
Union Pacific Railroad Company (UP)
has filed a verified notice of exemption
under 49 CFR pt. 1152 subpart F—
Exempt Abandonments to abandon a
2.23-mile portion of the U.S. Steel
Industrial Lead between milepost 2.4 in
Baytown and milepost 4.63 at the east
side of Cedar Bayou, in Harris and
Chambers Counties, Tex. (the Line).1
The Line traverses U.S. Postal Service
Zip Codes 77520 and 77523.
UP has certified that: (1) No local or
overhead traffic has moved over the
Line for at least two years; (2) there is
1 UP previously obtained authority to abandon
the Line, but did not file a notice of consummation
within the time period prescribed by 49 CFR
1152.29(e)(2). See Union Pac. R.R.—Aban.
Exemption—In Harris & Chambers Ctys., Tex., AB
33 (Sub-No. 324X) (STB served Mar. 29, 2017).
E:\FR\FM\08JYN1.SGM
08JYN1
]]>Agencies
[Federal Register Volume 84, Number 130 (Monday, July 8, 2019)]
[Notices]
[Pages 32508-32510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14400]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86255; File No. SR-DTC-2019-004]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend the Reorganizations Service Guide
July 1, 2019.
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 June 26, 2019, 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
The proposed rule change by DTC would revise the Reorganizations
Service Guide (``Guide'') \5\ to postpone the date for the retirement
of the RIPS (Reorganization Inquiry for Participants) function on the
Participant Terminal System (``PTS'') and Participant Browser Service
(``PBS''),\6\ as more fully described below.
---------------------------------------------------------------------------
\5\ Each capitalized term not otherwise defined herein has its
respective meaning as set forth in the Rules, By-Laws and
Organization Certificate of DTC (``DTC Rules'') and in the Guide,
available at https://www.dtcc.com/legal/rules-and-procedures.aspx.
\6\ PTS and PBS are user interfaces for DTC's Settlement and
Asset Services functions. PTS is mainframe-based and PBS is web-
based with a mainframe back-end. Participants may use either PTS or
PBS, as they are functionally equivalent. References to a particular
PTS function in this rule filing include the corresponding PBS
function.
---------------------------------------------------------------------------
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
The purpose of the proposed rule change is to amend the Guide to
postpone the date for the retirement of the RIPS function on PTS and
PBS, as more fully described below.
Background
On May 21, 2019, DTC filed with the Commission a proposed rule
change to, among other things, update its corporate action service by
transitioning corporate action functions on PTS and PBS for the
processing of reorganizations (``Reorganizations'') \7\ to its
Corporate Action Web (``CA Web'') \8\ system.\9\ The
[[Page 32509]]
rule change provided that, at the conclusion of the pilot test phase in
Q2 of 2019, Reorganizations activity within the ADJI (Adjustment
Inquiries), RIPS, and SDAR Dept. C \10\ (Same Day Allocation Reporting)
functions \11\ will be retired from PTS/PBS and the functionality will
only be available on CA Web. DTC has been communicating this change to
Participants through CA Web review sessions, Important Notices, and
industry outreach.\12\
---------------------------------------------------------------------------
\7\ DTC offers an array of services for processing corporate
action events. The services fall into three categories: (i)
Distributions, such as cash and stock dividends, principal and
interest, and capital gain distributions; (ii) redemptions, such as
full and partial calls, final paydowns, and maturities; and (iii)
Reorganizations, which include both mandatory and voluntary
reorganizations such as exchange offers, conversions, Dutch
auctions, mergers, puts, reverse stock splits, tender offers, and
warrant exercises.
\8\ In PTS/PBS, corporate actions are announced using DTC
proprietary codes to signify event types. CA Web replaces DTC's
proprietary codes with market standard language. For example, a cash
dividend payment that PTS/PBS identifies as a ``08'' function code
is identified in CA Web as a ``Cash Dividend'' event. Additionally,
CA Web incorporates the entire lifecycle of an event into one
platform with a unique corporate action identifier that follows the
event through its lifecycle. CA Web gives Participants the ability
to customize screen displays and offers flexible methods for event
search, neither of which is available in the PTS/PBS systems.
\9\ See Securities Exchange Act Release No. 85986 (May 31,
2019), 84 FR 26466 (June 6, 2019) (SR-DTC-2019-003).
\10\ The initial rule filing on May 21, 2019 inadvertently
referred to this function as SDAR Dept ``R'', a related element of
the SDAR function that had already been retired. The Guide and
Participant outreach refer to the correct element of the function,
SDAR Dept ``C''.
\11\ See PTS/PBS Function Guides, available at https://www.dtcc.com/settlement-and-asset-services/edl-ptspbs-function-guides.
\12\ See Important Notice B10792-19 (March 14, 2019); Important
Notice B8760-18 (June 7, 2018), Important Notice B9072-18 (July 9,
2018) and Important Notice B9122-18 (July 26, 2018), available at
https://www.dtcc.com/legal/important-notices; and DTC Corporate
Actions Product Update to SIFMA (October 11, 2018), available at
https://www.sifma.org/wp-content/uploads/2017/05/SIFMA-CAS_DTCC-Corporate-Actions-Update_2018.pdf.
---------------------------------------------------------------------------
Proposed Rule Change
Subsequent to the May 21, 2019 rule filing, DTC began to receive
feedback from Participants indicating that they need additional time to
test the parallel RIPS functionality on CA Web, the ``Reorganizations
Announcements'' function, before the retirement of the RIPS function on
PTS/PBS.
In response to this feedback, with this proposed rule change, DTC
would postpone the date for the retirement of the RIPS function on PTS/
PBS. DTC will continue the pilot test phase in which the RIPS function
would continue to be available on PTS/PBS, and its parallel
Reorganizations Announcements function would continue to be available
on CA Web. A new date for the retirement of the RIPS function from PTS/
PBS would be announced, subject to a future proposed rule change and
Important Notice issued by DTC. The proposed rule change would not
impact the retirement of PTS/PBS function ADJI and SDAR Dept. C.
Pursuant to the proposed rule change, DTC would amend the Guide to
reflect the postponement of the RIPS function from PTS/PBS.
2. Statutory Basis
DTC believes that this proposal is consistent with the requirements
of the Act and the rules and regulations thereunder applicable to a
registered clearing agency. Specifically, DTC believes that this
proposal is consistent with Section 17A(b)(3)(F) of the Act,\13\ for
the reasons described below.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Section 17(A)(b)(3)(F) of the Act, requires, inter alia, that DTC
Rules be designed to promote the prompt and accurate clearance and
settlement of securities transactions.\14\ The proposed rule change
would postpone the date for the retirement of the RIPS function from
PTS/PBS until further notice. By affording Participants additional time
to test the Reorganizations Announcements function on CA Web prior to
the retirement of RIPS, the proposed rule change would provide
Participants the opportunity to minimize potential business
interruption in their processing of reorganization events when the RIPS
function is retired. Therefore, by providing Participants with the
opportunity to minimize potential business disruption in this manner,
DTC believes that the proposed rule change is designed to promote the
prompt and accurate clearance and settlement of securities transactions
related to Reorganizations, consistent with Section 17A(b)(3)(F) of the
Act.\15\
---------------------------------------------------------------------------
\14\ Id.
\15\ Id.
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
DTC believes that the proposed rule change with respect to
postponing the date for the retirement of the RIPS function from PTS/
PBS may impact competition by potentially reducing business
interruption in Participants' processing of reorganization events.\16\
The proposed rule change would afford Participants additional time to
test the Reorganizations Announcements function on CA Web prior to the
retirement of RIPS, thereby providing Participants the opportunity to
minimize potential business interruption in their processing of
reorganization events when the RIPS function is retired. Therefore, DTC
believes that the proposed rule change with respect to postponing the
date for the retirement of the RIPS function from PTS/PBS would not
impose a burden on competition, but may promote competition.\17\
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78q-1(b)(3)(I).
\17\ Id.
---------------------------------------------------------------------------
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
Written comments relating to the proposed rule change have not been
solicited or received. DTC will notify the Commission of any written
comments received by DTC.
III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \18\ and paragraph (f) of Rule 19b-4
thereunder.\19\ 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.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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 [email protected]. Please include
File Number SR-DTC-2019-004 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-2019-004. 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 website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE,
[[Page 32510]]
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
website (https://www.dtcc.com/legal/sec-rule-filings.aspx). All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-DTC-2019-004 and should be submitted on
or before July 29, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------
\20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-14400 Filed 7-5-19; 8:45 am]
BILLING CODE 8011-01-P
