Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change in Connection With Changes to the Account Structure of Euroclear Bank at The Depository Trust Company, 61670-61673 [2019-24600]
Download as PDF
<![CDATA[
61670
Federal Register / Vol. 84, No. 219 / Wednesday, November 13, 2019 / Notices
change, as modified by Amendment No.
1 and Amendment No. 2, prior to the
30th day after the date of publication of
the Notices of Amendment No. 1 and
Amendment No. 2 in the Federal
Register. As discussed above,
Amendment No. 1 proposes to revise
the original proposed rule change to
state that (1) the underwriter making a
recommendation to the issuer regarding
a financing structure, including, when
applicable, a Complex Municipal
Securities Financing Recommendation,
has the fair dealing obligation to deliver
the applicable transaction-specific
disclosures and (2) the notice does not
apply to a dealer acting as a primary
distributor in a continuous offering of
municipal fund securities. Amendment
No. 1 and Amendment No. 2 otherwise
propose to revise the original proposed
rule change with technical
modifications intended to more
precisely define the scope of its
application and/or to promote clarity in
its interpretation. The MSRB has stated
that it believes that the modifications to
the original proposed rule change are
responsive to commenters, and are
consistent with the original proposed
rule change.151
For the foregoing reasons, the
Commission finds good cause for
approving the original proposed rule
change, as modified by Amendment No.
1 and Amendment No. 2, on an
accelerated basis, pursuant to Section
19(b)(2) of the Act.
VII. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,152 that the
proposed rule change (SR–MSRB–2019–
10) be, and hereby is, approved on an
accelerated basis.
For the Commission, pursuant to delegated
authority.153
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–24601 Filed 11–12–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87482; File No. 265–30]
Fixed Income Market Structure
Advisory Committee
Securities and Exchange
Commission.
ACTION: Notice of Federal Advisory
Committee renewal.
AGENCY:
151 See
Amendment No. 1, Amendment No. 2.
U.S.C. 78s(b)(2).
153 17 CFR 200.30–3(a)(12).
The Securities and Exchange
Commission is publishing this notice to
announce that the Chairman of the
Commission, with the concurrence of
the other Commissioners, has approved
the renewal of the Securities and
Exchange Commission Fixed Income
Market Structure Advisory Committee.
FOR FURTHER INFORMATION CONTACT:
David Dimitrious, Senior Special
Counsel, at (202) 551–5131, or Arisa
Kettig, Special Counsel, at (202) 551–
5676, Division of Trading and Markets,
Securities and Exchange Commission,
100 F Street NE, Washington, DC
20549–7010.
SUPPLEMENTARY INFORMATION: In
accordance with the requirements of the
Federal Advisory Committee Act, 5
U.S.C.—App, the Commission is
publishing this notice that the Chairman
of the Commission, with the
concurrence of the other
Commissioners, has approved the
renewal of the Securities and Exchange
Commission Fixed Income Market
Structure Advisory Committee (the
‘‘Committee’’). The Chairman of the
Commission affirms that the renewal of
the Committee is necessary and in the
public interest.1
The Committee’s objective is to
provide the Commission with diverse
perspectives on the structure and
operations of the U.S. fixed income
markets, as well as advice and
recommendations on matters related to
fixed income market structure.
No more than 21 voting members will
be appointed to the Committee. Such
members shall represent a cross-section
of those directly affected by, interested
in, and/or qualified to provide advice to
the Commission on matters related to
fixed income market structure. The
Committee’s membership will continue
to be balanced fairly in terms of points
of view represented. Non-voting
members may also be named.
The charter provides that the duties of
the Committee are to be solely advisory.
The Commission alone will make any
determinations of actions to be taken
and policies to be expressed with
respect to matters within the
Commission’s jurisdiction. The
Committee will meet at such intervals as
are necessary to carry out its functions.
The charter contemplates that the full
Committee will meet four times.
Meetings of subgroups or
subcommittees of the full Committee
may occur more frequently.
The Committee will operate for one
year from the date it is renewed or such
earlier date as determined by the
SUMMARY:
152 15
VerDate Sep<11>2014
17:23 Nov 12, 2019
Jkt 250001
1 See
PO 00000
41 CFR 102–3.30(a).
Frm 00077
Fmt 4703
Sfmt 4703
Commission unless, before the
expiration of that time period, it is
renewed in accordance with the Federal
Advisory Committee Act. A copy of the
charter for the Committee has been filed
with the Committee on Banking,
Housing, and Urban Affairs of the
United States Senate, the Committee on
Financial Services of the United States
House of Representatives, and the
Committee Management Secretariat of
the General Services Administration. A
copy of the charter as so filed also will
be filed with the Chairman of the
Commission, furnished to the Library of
Congress, and posted on the
Commission’s website at www.sec.gov.
By the Commission.
Dated: November 7, 2019.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2019–24653 Filed 11–12–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87474; File No. SR–DTC–
2019–010]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change in
Connection With Changes to the
Account Structure of Euroclear Bank
at The Depository Trust Company
November 6, 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 October
24, 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 5 of DTC
would make technical amendments to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4).
5 Each capitalized term not otherwise defined
herein has its respective meaning as set forth in the
2 17
E:\FR\FM\13NON1.SGM
13NON1
Federal Register / Vol. 84, No. 219 / Wednesday, November 13, 2019 / Notices
Rule 34 (EB Link) in connection with
changes to the account structure of
Euroclear Bank SA/NV (‘‘EB’’) at DTC,
as 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 proposal would make technical
amendments to Rule 34 (EB Link) in
connection with changes to the account
structure of EB at DTC, as described
below.
(i) Background
EB was accepted by DTC as a
Participant on February 18, 2016. At the
time, the purpose of EB’s membership
was to establish a free-of-payment
(‘‘FOP’’) Account at DTC (‘‘EB CP
Account’’) 6 to facilitate the positioning
of securities (‘‘CP Securities’’) held at
DTC (‘‘EB Collateral Positioning’’) for
transfers on the books of EB in
connection with EB collateral
management services.7 To support EB
Collateral Positioning, DTC filed Rule
34, which was approved by the
Commission on July 19, 2016.8
Under Rule 34, a DTC Participant that
is also a participant of EB (‘‘CP
Participant’’) may designate a subaccount at DTC (‘‘CP Sub-Account’’) for
use under Rule 34, thereby authorizing
EB as its representative (‘‘CP
Representative’’), and authorizing DTC
to provide position and transaction
information to EB and to accept EB
instructions submitted on behalf of such
Rules, By-Laws and Organization Certificate of The
Depository Trust Company (the ‘‘Rules’’), available
at https://www.dtcc.com/legal/rules-andprocedures.aspx.
6 Rule 34 provides that the adjectival use of ‘‘CP’’
in Rule 34 refers to terms or matters relating and
limited to ‘‘Collateral Positioning’’ under Rule 34.
See id.
7 Prior to the establishment of the EB CP Account,
EB had not been a DTC Participant nor had an
Account at DTC.
8 See Securities Exchange Act Release No. 78358
(July 19, 2016), 81 FR 48482 (July 25, 2016) (SR–
DTC–2016–004) (‘‘Rule 34 Approval Order’’).
VerDate Sep<11>2014
17:23 Nov 12, 2019
Jkt 250001
CP Participant, with respect to the CP
Sub-Account of the CP Participant.9
The CP Participant instructs DTC to
deliver securities from the CP
Participant’s Securities Account to its
CP Sub-Account, in order to identify the
securities that it wishes to make
available for EB Collateral Positioning
and collateral transfers on the books of
EB (‘‘EB Collateral Transactions’’). After
the CP Securities have been credited to
the CP Sub-Account, EB, as CP
Representative of the CP Participant,
instructs DTC to make a FOP delivery of
the CP Securities from the CP SubAccount to the EB CP Account. After CP
Securities have been credited to the EB
CP Account, it is then EB’s
responsibility to credit them to an
account at EB maintained for the CP
Participant, as an EB participant using
EB collateral management services (‘‘EB
Collateral Participant’’), for EB
Collateral Transactions.
Pursuant to Rule 34, EB may also
instruct DTC to make a FOP delivery of
CP Securities from the EB CP Account
to the Securities Account of a
Participant that EB has designated to
DTC as EB’s global custodian (‘‘EB
Global Custodian’’) in order to liquidate
CP Securities, if a CP Participant that is
an EB Collateral Participant has
defaulted on its obligations in respect of
any EB Collateral Transaction (‘‘EB
Liquidating Transaction’’).
(ii) Proposed Rule Change
EB has now applied to DTC for a
delivery-versus-payment (‘‘DVP’’)
Account, and its application was
approved by DTC on September 20,
2019. With a DVP Account, EB will be
permitted to engage in other
transactions, including DVP
transactions, at DTC, in addition to the
FOP deliveries provided for under Rule
34.10 EB has also requested that the new
9 In addition, Rule 34 provides that the CP
Participant has to be a user of the DTCC Euroclear
Global Collateral Ltd. (‘‘DEGCL’’) Inventory
Management Service (‘‘DEGCL IMS’’). DEGCL is a
United Kingdom joint venture of The Depository
Trust & Clearing Corporation, the corporate parent
of DTC, and Euroclear S.A./N.V. (‘‘Euroclear’’). As
noted in the Rule 34 Approval Order, DTC
understands that by providing Participants with a
mechanism for EB Collateral Positioning, Rule 34
indirectly supports the DEGCL IMS service. DEGCL
IMS is operated by EB and other entities in the
Euroclear group, as the service provider to DEGCL,
in accordance with appropriate agreements among
them and in compliance with applicable regulatory
requirements. There is no direct relationship
between DTC and DEGCL IMS.
10 DTC understands that EB performs certain
functions of a clearing agency with respect to U.S.
securities for its U.S. participants pursuant to an
exemption from clearing agency registration
approved by the Commission (the ‘‘EB
Exemption’’). See Self-Regulatory Organizations;
Morgan Guaranty Trust Company of New York,
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
61671
DVP Account (‘‘New EB Account’’)
become its main Securities Account,
and that the EB CP Account become a
sub-account of the New EB Account.
In light of this development, DTC has
reviewed Rule 34 and determined that,
although no substantive changes may be
necessary, it would be preferable to
clarify certain provisions of Rule 34 to
more accurately reflect the new EB
account structure. Specifically, DTC is
proposing to make minor technical
amendments to Rule 34 that would (i)
more clearly differentiate between the
EB CP Account and other Securities
Accounts of EB, and (ii) expressly
provide EB with the option to instruct
DTC to deliver CP Securities from the
EB CP Account to another Securities
Account of EB for EB Liquidating
Transactions if a CP Participant that is
an EB Collateral Participant has
defaulted on one of its EB Collateral
Transaction obligations.
A. EB Collateral Positioning
Currently, the language of Rule 34
reflects that the EB CP Account is the
only EB Account at DTC.11 In particular,
Rule 34 defines the Securities Account
established by EB for purposes of Rule
34 as the ‘‘EB Account.’’ However,
because EB’s application to establish a
DVP Account has been approved by
DTC, the Securities Account established
by EB for Rule 34 will no longer be the
only EB Account. Therefore, to more
clearly differentiate between the EB CP
Account and other Securities Accounts
of EB that may be established,
including, but not limited to the New
EB Account, DTC is proposing to change
the defined term in Rule 34 from ‘‘EB
Account’’ to ‘‘EB CP Account.’’ In
addition, to conform with that change,
DTC is proposing to replace the current
title of Rule 34, ‘‘EB Link,’’ with a new
title, ‘‘EB Collateral Positioning,’’ and to
delete the defined term ‘‘EB Link’’ from
Rule 34.
Brussels Office, as Operator of the Euroclear
System; Order Approving Application for
Exemption From Registration as a Clearing Agency,
Securities Exchange Act Release No. 39643
(February 11, 1998), 63 FR 8232 (February 18,
1998); Self-Regulatory Organizations; Morgan
Guaranty Trust Company, Brussels Office, as
Operator of the Euroclear System and Euroclear
Bank, S.A.; Order Approving Application to Modify
an Existing Exemption From Clearing Agency
Registration, Securities Exchange Act Release No.
43775 (December 28, 2000), 66 FR 819 (January 4,
2001); and Euroclear Bank SA/NV; Order of the
Commission Approving an Application To Modify
an Existing Exemption From Clearing Agency
Registration, Securities Exchange Act Release No.
79577 (December 16, 2016), 81 FR 93994 (December
22, 2016) (File No. 601–01).
11 See supra note 7.
E:\FR\FM\13NON1.SGM
13NON1
61672
Federal Register / Vol. 84, No. 219 / Wednesday, November 13, 2019 / Notices
B. EB Liquidating Transactions
Rule 34 currently provides that EB
may instruct DTC to deliver CP
Securities from the EB CP Account to
the EB Global Custodian in connection
with an EB Liquidating Transaction.
With its new account structure, EB may
process EB Liquidating Transactions
through its own DVP Securities
Accounts, including the New EB
Account, and may no longer require an
EB Global Custodian. Therefore, DTC is
proposing to amend Rule 34 to
expressly provide EB with the option to
deliver CP Securities from the EB CP
Account to another Securities Account
of EB for EB Liquidating Transactions.
Specifically, the proposed rule change
would provide that ‘‘EB may, from time
to time . . . (iii) in connection with an
EB Liquidating Transaction, instruct the
Corporation to make a Free Delivery of
CP Securities from the EB CP Account 12
to the Securities Account of the EB
Global Custodian or to another
Securities Account of EB, whereupon
such Securities shall no longer be CP
Securities [emphasis added].’’
In addition, DTC is proposing to make
conforming changes to the definitions of
‘‘CP Securities’’ and ‘‘EB Global
Custodian.’’
2. Statutory Basis
DTC believes that the proposed rule
change is consistent with the
requirements of the Act, and the rules
and regulations thereunder applicable to
DTC, in particular Section 17A(b)(3)(F)
of the Act.13
Section 17A(b)(3)(F) of the Act
requires, inter alia, that the rules of the
clearing agency be designed to promote
the prompt and accurate clearance and
settlement of securities transactions.14
The proposed rule change would make
minor technical amendments to Rule 34
in connection with changes requested
by EB to its account structure at DTC in
order to (i) clearly differentiate between
the EB CP Account and other Securities
Accounts of EB, and (ii) expressly
provide EB with the option, under
specific circumstances, to instruct DTC
to deliver securities from the EB CP
Account to another Securities Account
of EB. By amending Rule 34 in this
manner, the proposed rule change
would enhance the clarity and
transparency of Rule 34 so that
Participants may better understand how
to use Rule 34 for EB Collateral
Positioning, which would allow
12 As noted above, pursuant to the proposed rule
change, DTC would change the defined term ‘‘EB
Account’’ to ‘‘EB CP Account.’’
13 15 U.S.C. 78q–1(b)(3)(F).
14 Id.
VerDate Sep<11>2014
17:23 Nov 12, 2019
Jkt 250001
Participants to more accurately and
efficiently deploy their securities
collateral for EB Collateral Transactions.
Therefore, DTC believes that the
proposed rule change is designed to
promote the prompt and accurate
clearance and settlement of securities
collateral transactions, consistent with
the requirements of the Act, in
particular Section 17A(b)(3)(F), cited
above.
(B) Clearing Agency’s Statement on
Burden on Competition
DTC believes that the proposed rule
change would not have an impact on
competition.15 The proposed rule
change would make minor technical
amendments to Rule 34 in connection
with changes requested by EB to its
account structure at DTC by (i) clearly
differentiating between the EB CP
Account and other Securities Accounts
of EB, and (ii) expressly providing EB
with the option, under specific
circumstances, to instruct DTC to
deliver securities from the EB CP
Account to another Securities Account
of EB. The proposed rule change would
not make any substantive changes to the
rights and obligations of Participants or
other interested parties under Rule 34,
and so would not affect such rights and
obligations. Therefore, DTC believes
that the proposed rule change to make
technical amendments to Rule 34 would
not have an impact on competition.16
(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 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.
15 15
U.S.C. 78q–1(b)(3)(I).
16 Id.
17 15
18 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
Frm 00079
Fmt 4703
Sfmt 4703
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–2019–010 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–2019–010. 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,
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://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–
2019–010 and should be submitted on
or before December 4, 2019.
E:\FR\FM\13NON1.SGM
13NON1
Federal Register / Vol. 84, No. 219 / Wednesday, November 13, 2019 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–24600 Filed 11–12–19; 8:45 am]
DEPARTMENT OF STATE
[Public Notice 10933]
60-Day Notice of Proposed Information
Collection: Evaluation of the
Professional Fellows Program
BILLING CODE 8011–01–P
Notice of request for public
comment.
ACTION:
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #16145 and #16146;
SOUTH CAROLINA Disaster Number SC–
00060]
Presidential Declaration Amendment of
a Major Disaster for Public Assistance
Only for the State of South Carolina
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of South Carolina (FEMA–
4464–DR), dated 09/30/2019.
Incident: Hurricane Dorian.
Incident Period: 08/31/2019 through
09/06/2019.
DATES: Issued on 11/05/2019.
Physical Loan Application Deadline
Date: 11/29/2019.
Economic Injury (EIDL) Loan
Application Deadline Date: 06/30/2020.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of South
Carolina, dated 09/30/2019, is hereby
amended to include the following areas
as adversely affected by the disaster.
Primary Counties: Allendale.
All other information in the original
declaration remains unchanged.
SUMMARY:
(Catalog of Federal Domestic Assistance
Number 59008)
James Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2019–24622 Filed 11–12–19; 8:45 am]
BILLING CODE 8026–03–P
19 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:23 Nov 12, 2019
Jkt 250001
The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
In accordance with the Paperwork
Reduction Act of 1995, we are
requesting comments on this collection
from all interested individuals and
organizations. The purpose of this
notice is to allow 60 days for public
comment preceding submission of the
collection to OMB.
DATES: The Department will accept
comments from the public up to January
13, 2020.
ADDRESSES: You may submit comments
by the following methods:
• Web: persons with access to the
internet may comment on this notice by
going to www.Regulations.gov. You can
search for the document by entering
‘‘Docket Number: DOS–2019–0038’’ in
the Search field. Then click the
‘‘Comment Now’’ button and complete
the comment form.
You must include the DS form
number (if applicable), information
collection title, and the OMB control
number in any correspondence.
FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information regarding the collection
listed in this notice, including requests
for copies of the proposed collection
instrument and supporting documents,
to Natalie Donahue, Chief of Evaluation,
Bureau of Educational and Cultural
Affairs, who may be reached on (202)
632- 6193 or at DonahueNR@state.gov.
SUPPLEMENTARY INFORMATION:
• Title of Information Collection:
Evaluation of the Professional Fellows
Program (PFP).
• OMB Control Number: None.
• Type of Request: New Collection.
• Originating Office: Educational and
Cultural Affairs (ECA/P/V).
• Form Number: No form.
• Respondents: Contacts at
institutions and organizations that
hosted and interacted with foreign
Fellows; families that hosted PFP
fellows in their homes.
• Estimated Number of Professional
Contact Survey Respondents: 1,526.
• Estimated Number of Professional
Contact Survey Responses: 300.
• Average Time per Professional
Contact Survey Response: 20 minutes.
SUMMARY:
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
61673
• Total Estimated Burden Time for
Professional Contact Survey: 100 hours.
• Estimated Number of Professional
Contact Interviews: 40.
• Estimated Number of Number of
Professional Contact Interview
Responses: 40.
• Average Time per Professional
Contact Interview: 40 minutes.
• Total Estimated Burden Time for
Professional Contact Interviews: 26.7
hours.
• Estimated Number of Host Family
Survey Respondents: 855.
• Estimated Number of Host Family
Survey Responses: 86.
• Average Time per Host Family
Survey Response: 15 minutes.
• Total Estimated Burden Time for
Host Family Survey Response: 21.5
hours.
• Estimated Number of Homestay
Host Interviews: 40.
• Estimated Number of Homestay
Host Interview Responses: 40.
• Average Time per Homestay Host
Interview: 30 minutes.
• Total Estimated Burden Time for
Homestay Host Interviews: 20 hours.
• Total Estimated Burden Time (All
Instruments for U.S Audiences): 168
hours.
• Frequency: Once.
• Obligation to Respond: Voluntary.
We are soliciting public comments to
permit the Department to:
• Evaluate whether the proposed
information collection is necessary for
the proper functions of the Department.
• Evaluate the accuracy of our
estimate of the time and cost burden for
this proposed collection, including the
validity of the methodology and
assumptions used.
• Enhance the quality, utility, and
clarity of the information to be
collected.
• Minimize the reporting burden on
those who are to respond, including the
use of automated collection techniques
or other forms of information
technology.
Please note that comments submitted
in response to this Notice are public
record. Before including any detailed
personal information, you should be
aware that your comments as submitted,
including your personal information,
will be available for public review.
Abstract of Proposed Collection
The PFP is a two-way, global
exchange program for mid-level
emerging leaders from select foreign
countries. The PFP is managed by the
Professional Fellows Division of the
Bureau of Educational and Cultural
Affairs. Foreign fellows come to the
United States for a five- to six-week
E:\FR\FM\13NON1.SGM
13NON1
]]>Agencies
[Federal Register Volume 84, Number 219 (Wednesday, November 13, 2019)]
[Notices]
[Pages 61670-61673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24600]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87474; File No. SR-DTC-2019-010]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
in Connection With Changes to the Account Structure of Euroclear Bank
at The Depository Trust Company
November 6, 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 October 24, 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 \5\ of DTC would make technical amendments
to
[[Page 61671]]
Rule 34 (EB Link) in connection with changes to the account structure
of Euroclear Bank SA/NV (``EB'') at DTC, as 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 The Depository Trust Company (the
``Rules''), available at https://www.dtcc.com/legal/rules-and-procedures.aspx.
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, 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 proposal would make technical amendments to Rule 34 (EB Link)
in connection with changes to the account structure of EB at DTC, as
described below.
(i) Background
EB was accepted by DTC as a Participant on February 18, 2016. At
the time, the purpose of EB's membership was to establish a free-of-
payment (``FOP'') Account at DTC (``EB CP Account'') \6\ to facilitate
the positioning of securities (``CP Securities'') held at DTC (``EB
Collateral Positioning'') for transfers on the books of EB in
connection with EB collateral management services.\7\ To support EB
Collateral Positioning, DTC filed Rule 34, which was approved by the
Commission on July 19, 2016.\8\
---------------------------------------------------------------------------
\6\ Rule 34 provides that the adjectival use of ``CP'' in Rule
34 refers to terms or matters relating and limited to ``Collateral
Positioning'' under Rule 34. See id.
\7\ Prior to the establishment of the EB CP Account, EB had not
been a DTC Participant nor had an Account at DTC.
\8\ See Securities Exchange Act Release No. 78358 (July 19,
2016), 81 FR 48482 (July 25, 2016) (SR-DTC-2016-004) (``Rule 34
Approval Order'').
---------------------------------------------------------------------------
Under Rule 34, a DTC Participant that is also a participant of EB
(``CP Participant'') may designate a sub-account at DTC (``CP Sub-
Account'') for use under Rule 34, thereby authorizing EB as its
representative (``CP Representative''), and authorizing DTC to provide
position and transaction information to EB and to accept EB
instructions submitted on behalf of such CP Participant, with respect
to the CP Sub-Account of the CP Participant.\9\
---------------------------------------------------------------------------
\9\ In addition, Rule 34 provides that the CP Participant has to
be a user of the DTCC Euroclear Global Collateral Ltd. (``DEGCL'')
Inventory Management Service (``DEGCL IMS''). DEGCL is a United
Kingdom joint venture of The Depository Trust & Clearing
Corporation, the corporate parent of DTC, and Euroclear S.A./N.V.
(``Euroclear''). As noted in the Rule 34 Approval Order, DTC
understands that by providing Participants with a mechanism for EB
Collateral Positioning, Rule 34 indirectly supports the DEGCL IMS
service. DEGCL IMS is operated by EB and other entities in the
Euroclear group, as the service provider to DEGCL, in accordance
with appropriate agreements among them and in compliance with
applicable regulatory requirements. There is no direct relationship
between DTC and DEGCL IMS.
---------------------------------------------------------------------------
The CP Participant instructs DTC to deliver securities from the CP
Participant's Securities Account to its CP Sub-Account, in order to
identify the securities that it wishes to make available for EB
Collateral Positioning and collateral transfers on the books of EB
(``EB Collateral Transactions''). After the CP Securities have been
credited to the CP Sub-Account, EB, as CP Representative of the CP
Participant, instructs DTC to make a FOP delivery of the CP Securities
from the CP Sub-Account to the EB CP Account. After CP Securities have
been credited to the EB CP Account, it is then EB's responsibility to
credit them to an account at EB maintained for the CP Participant, as
an EB participant using EB collateral management services (``EB
Collateral Participant''), for EB Collateral Transactions.
Pursuant to Rule 34, EB may also instruct DTC to make a FOP
delivery of CP Securities from the EB CP Account to the Securities
Account of a Participant that EB has designated to DTC as EB's global
custodian (``EB Global Custodian'') in order to liquidate CP
Securities, if a CP Participant that is an EB Collateral Participant
has defaulted on its obligations in respect of any EB Collateral
Transaction (``EB Liquidating Transaction'').
(ii) Proposed Rule Change
EB has now applied to DTC for a delivery-versus-payment (``DVP'')
Account, and its application was approved by DTC on September 20, 2019.
With a DVP Account, EB will be permitted to engage in other
transactions, including DVP transactions, at DTC, in addition to the
FOP deliveries provided for under Rule 34.\10\ EB has also requested
that the new DVP Account (``New EB Account'') become its main
Securities Account, and that the EB CP Account become a sub-account of
the New EB Account.
---------------------------------------------------------------------------
\10\ DTC understands that EB performs certain functions of a
clearing agency with respect to U.S. securities for its U.S.
participants pursuant to an exemption from clearing agency
registration approved by the Commission (the ``EB Exemption''). See
Self-Regulatory Organizations; Morgan Guaranty Trust Company of New
York, Brussels Office, as Operator of the Euroclear System; Order
Approving Application for Exemption From Registration as a Clearing
Agency, Securities Exchange Act Release No. 39643 (February 11,
1998), 63 FR 8232 (February 18, 1998); Self-Regulatory
Organizations; Morgan Guaranty Trust Company, Brussels Office, as
Operator of the Euroclear System and Euroclear Bank, S.A.; Order
Approving Application to Modify an Existing Exemption From Clearing
Agency Registration, Securities Exchange Act Release No. 43775
(December 28, 2000), 66 FR 819 (January 4, 2001); and Euroclear Bank
SA/NV; Order of the Commission Approving an Application To Modify an
Existing Exemption From Clearing Agency Registration, Securities
Exchange Act Release No. 79577 (December 16, 2016), 81 FR 93994
(December 22, 2016) (File No. 601-01).
---------------------------------------------------------------------------
In light of this development, DTC has reviewed Rule 34 and
determined that, although no substantive changes may be necessary, it
would be preferable to clarify certain provisions of Rule 34 to more
accurately reflect the new EB account structure. Specifically, DTC is
proposing to make minor technical amendments to Rule 34 that would (i)
more clearly differentiate between the EB CP Account and other
Securities Accounts of EB, and (ii) expressly provide EB with the
option to instruct DTC to deliver CP Securities from the EB CP Account
to another Securities Account of EB for EB Liquidating Transactions if
a CP Participant that is an EB Collateral Participant has defaulted on
one of its EB Collateral Transaction obligations.
A. EB Collateral Positioning
Currently, the language of Rule 34 reflects that the EB CP Account
is the only EB Account at DTC.\11\ In particular, Rule 34 defines the
Securities Account established by EB for purposes of Rule 34 as the
``EB Account.'' However, because EB's application to establish a DVP
Account has been approved by DTC, the Securities Account established by
EB for Rule 34 will no longer be the only EB Account. Therefore, to
more clearly differentiate between the EB CP Account and other
Securities Accounts of EB that may be established, including, but not
limited to the New EB Account, DTC is proposing to change the defined
term in Rule 34 from ``EB Account'' to ``EB CP Account.'' In addition,
to conform with that change, DTC is proposing to replace the current
title of Rule 34, ``EB Link,'' with a new title, ``EB Collateral
Positioning,'' and to delete the defined term ``EB Link'' from Rule 34.
---------------------------------------------------------------------------
\11\ See supra note 7.
---------------------------------------------------------------------------
[[Page 61672]]
B. EB Liquidating Transactions
Rule 34 currently provides that EB may instruct DTC to deliver CP
Securities from the EB CP Account to the EB Global Custodian in
connection with an EB Liquidating Transaction. With its new account
structure, EB may process EB Liquidating Transactions through its own
DVP Securities Accounts, including the New EB Account, and may no
longer require an EB Global Custodian. Therefore, DTC is proposing to
amend Rule 34 to expressly provide EB with the option to deliver CP
Securities from the EB CP Account to another Securities Account of EB
for EB Liquidating Transactions. Specifically, the proposed rule change
would provide that ``EB may, from time to time . . . (iii) in
connection with an EB Liquidating Transaction, instruct the Corporation
to make a Free Delivery of CP Securities from the EB CP Account \12\ to
the Securities Account of the EB Global Custodian or to another
Securities Account of EB, whereupon such Securities shall no longer be
CP Securities [emphasis added].''
---------------------------------------------------------------------------
\12\ As noted above, pursuant to the proposed rule change, DTC
would change the defined term ``EB Account'' to ``EB CP Account.''
---------------------------------------------------------------------------
In addition, DTC is proposing to make conforming changes to the
definitions of ``CP Securities'' and ``EB Global Custodian.''
2. Statutory Basis
DTC believes that the proposed rule change is consistent with the
requirements of the Act, and the rules and regulations thereunder
applicable to DTC, in particular Section 17A(b)(3)(F) of the Act.\13\
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Section 17A(b)(3)(F) of the Act requires, inter alia, that the
rules of the clearing agency be designed to promote the prompt and
accurate clearance and settlement of securities transactions.\14\ The
proposed rule change would make minor technical amendments to Rule 34
in connection with changes requested by EB to its account structure at
DTC in order to (i) clearly differentiate between the EB CP Account and
other Securities Accounts of EB, and (ii) expressly provide EB with the
option, under specific circumstances, to instruct DTC to deliver
securities from the EB CP Account to another Securities Account of EB.
By amending Rule 34 in this manner, the proposed rule change would
enhance the clarity and transparency of Rule 34 so that Participants
may better understand how to use Rule 34 for EB Collateral Positioning,
which would allow Participants to more accurately and efficiently
deploy their securities collateral for EB Collateral Transactions.
Therefore, DTC believes that the proposed rule change is designed to
promote the prompt and accurate clearance and settlement of securities
collateral transactions, consistent with the requirements of the Act,
in particular Section 17A(b)(3)(F), cited above.
---------------------------------------------------------------------------
\14\ Id.
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
DTC believes that the proposed rule change would not have an impact
on competition.\15\ The proposed rule change would make minor technical
amendments to Rule 34 in connection with changes requested by EB to its
account structure at DTC by (i) clearly differentiating between the EB
CP Account and other Securities Accounts of EB, and (ii) expressly
providing EB with the option, under specific circumstances, to instruct
DTC to deliver securities from the EB CP Account to another Securities
Account of EB. The proposed rule change would not make any substantive
changes to the rights and obligations of Participants or other
interested parties under Rule 34, and so would not affect such rights
and obligations. Therefore, DTC believes that the proposed rule change
to make technical amendments to Rule 34 would not have an impact on
competition.\16\
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78q-1(b)(3)(I).
\16\ 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 \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.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 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-2019-010 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-2019-010. 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, 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://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-2019-010 and should be submitted on
or before December 4, 2019.
[[Page 61673]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-24600 Filed 11-12-19; 8:45 am]
BILLING CODE 8011-01-P
