Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to DTC's New Issue Information Dissemination Service To Unwind a Prior Rule Filing and Provide a More Accurate Description of the Service, 105138-105140 [2024-30684]
Download as PDF
105138
Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices
which has processes to respond to
misconduct of attorneys subject to its
jurisdiction.
With respect to St. John’s comment,
FINRA notes that any increase to the
$50,000 threshold for simplified
arbitrations would require a separate
proposed rule change as the focus of
this proposed rule change is on
accelerating the processing of arbitration
proceedings for parties who qualify
based on their age or health condition
rather than claim size.
Finally, with respect to Iannarone’s
comment, FINRA notes that its website
offers several resources to help parties
find an attorney.94
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) by order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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–
FINRA–2024–021 on the subject line.
ddrumheller on DSK120RN23PROD with NOTICES1
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–2024–021. 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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–FINRA–2024–021 and should be
submitted on or before January 16, 2025.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.95
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–30680 Filed 12–23–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101964; File No. SR–DTC–
2024–015]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to DTC’s New
Issue Information Dissemination
Service To Unwind a Prior Rule Filing
and Provide a More Accurate
Description of the Service
Find An Attorney, https://www.finra.org/
arbitration-mediation/about/find-attorney.
VerDate Sep<11>2014
19:37 Dec 23, 2024
Jkt 265001
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change will (i)
correct DTC’s rule filing record by
unwinding a prior rule filing (‘‘2014
Filing’’) 5 regarding DTC’s New Issue
Information Dissemination Service
(‘‘NIIDS’’) and (ii) update the
description of NIIDS in the DTC
Operational Arrangements (Necessary
for Securities to Become and Remain
Eligible for DTC Service) (‘‘OA’’) 6 to
more clearly describe NIIDS, as
described in greater detail below.7
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 proposed rule change will (i)
correct DTC’s rule filing record by
unwinding the 2014 Filing regarding
DTC’s NIIDS and (ii) update the
description of NIIDS in the OA to more
clearly describe NIIDS.
December 18, 2024.
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 December
12, 2024, The Depository Trust
Company ‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
95 17
94 See
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.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00174
Fmt 4703
Sfmt 4703
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4).
5 Securities Exchange Act Release No. 72763
(Aug. 5, 2014), 79 FR 46886 (Aug. 11, 2014) (SR–
DTC–2014–08).
6 Available at www.dtcc.com/∼/media/Files/
Downloads/legal/issue-eligibility/eligibility/
operational-arrangements.pdf.
7 Each capitalized term not otherwise defined
herein has its respective meaning as set forth the
Rules, By-Laws and Organization Certificate of DTC
(the ‘‘Rules’’) available at www.dtcc.com/legal/
rules-and-procedures.
4 17
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Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices
Background
NIIDS was established by DTC in
2008.8 It was built to improve the
process by which brokers comply with
Municipal Securities Rule Making
Board (‘‘MSRB’’) standards for making
available certain data information
(‘‘NIIDS Data Elements’’) pertaining to
the reporting, comparison, confirmation,
and settlement of trades in newly issued
municipal securities (‘‘New Muni
Issues’’).9 Through NIIDS, underwriters
or other authorized representatives
(‘‘Dissemination Agents’’) are able to
distribute NIIDS Data Elements to data
vendors or other users of such
information, as required by the MSRB.10
DTC collects NIIDS Data Elements
about New Muni Issues from
Dissemination Agents in electronic
format through DTC’s underwriting
system as part of DTC’s New Muni Issue
underwriting process. Those NIIDS Data
Elements are then disseminated to
market participants that subscribed to
such information (‘‘NIIDS Subscribers’’).
2014 Filing
Prior to 2014, DTC was responsible
for disseminating NIIDS Data Elements
to NIIDS Subscribers upon approval to
do so by the Dissemination Agent. The
2014 Filing was a rule change by DTC
to transfer the dissemination process
from DTC to a non-clearing agency
affiliate (i.e., the ‘‘NIIDS
Disseminator’’).11 The impetus for
moving the dissemination process was
in anticipation of further business
opportunities for the NIIDS
Disseminator. However, such
opportunities did not materialize, and
the dissemination process was never
transferred from DTC to the NIIDS
Disseminator. Because the transfer never
occurred, the OA was never updated to
reflect the proposed changes from the
2014 Filing.
Since the OA was never updated and
because DTC will remain the
disseminator of NIIDS Data Elements,
DTC is now proposing to correct the
record and unwind the 2014 Filing with
this rule filing.
ddrumheller on DSK120RN23PROD with NOTICES1
Updated NIIDS Description
In addition to unwinding the 2014
Filing, this proposed rule change will
delete the current NIIDS description in
8 Securities Exchange Act Release No. 57768 (May
2, 2008), 73 FR 26181 (May 8, 2008) (SR–DTC–
2007–10).
9 NIIDS Data Elements are needed for trade
reporting, trade matching and to set up trade
confirmation for certain municipal securities.
10 MSRB Rule G–34(a)(ii)(C).
11 Securities Exchange Act Release No. 72763
(Aug. 5, 2014), 79 FR 46886 (Aug. 11, 2014) (SR–
DTC–2014–08).
VerDate Sep<11>2014
19:37 Dec 23, 2024
Jkt 265001
the OA and replace that language with
a more concise, clear, and accurate
description of the NIIDS dissemination
process. The proposed language would
not change the way NIIDS works; rather,
the new description would simply
provide a more thorough and precise
explanation of NIIDS. Specifically, the
proposed rule language would (1)
provide an improved introduction and
explanation of the purpose of NIIDS,
how NIIDS is integrated into DTC’s
underwriting system (i.e., UW
SOURCE), and give a clearer overview
of NIIDS’s role and its regulatory
context; (2) explain the specific process
that the Dissemination Agent must
follow to successfully disseminate
NIIDS Data Elements, outline the steps
involved, and emphasize, for clarity,
that failure to enter the required data or
select the dissemination function would
prevent the information from being
disseminated; (3) clarify the role and
importance of NIIDS Data Elements by
defining them and distinguishing them
from the DTC eligibility process; (4)
correct grammatical and technical errors
(e.g., the term ‘‘New Issue Identification
Dissemination System’’ would be
replaced by the correct term ‘‘New Issue
Information Dissemination Service’’);
and (5) provide an updated legal
disclaimer, which specifies that DTC
functions solely as a conduit for NIIDS,
disclaims responsibility for validating
the accuracy or completeness of NIIDS
Data Elements and limits liability for
any faults, errors or damages arising
from the use of NIIDS. In order to
provide a disclaimer that is more
precise, accurate and more aligned to
DTC’s current disclaimer language, the
updated disclaimer is broader, more
detailed, and explicitly addresses data
faults, warranties and limits liability for
various damages, including the
adequacy, quality, accuracy,
completeness, or timeliness of
information made available through
NIIDS.
2. Statutory Basis
Section 17A(b)(3)(F) of the Act
requires that the rules of the clearing
agency be designed, inter alia, to
promote the prompt and accurate
clearance and settlement of securities
transactions.12 DTC believes that the
proposed rule change is consistent with
the Section 17A(b)(3)(F) of the Act.
As described above, the proposed rule
change will (i) correct DTC’s filing
record by unwinding the 2014 Filing,
and (ii) remove the current description
of NIIDS in the OA and replace it with
an update description that more clearly
12 15
PO 00000
U.S.C. 78q–1(b)(3)(F).
Frm 00175
Fmt 4703
Sfmt 4703
105139
and accurately describes the service,
including an updated and clearer
liability disclaimer. By unwinding the
2014 Filing and updating and correcting
the description of NIIDS in the OA, the
proposed rule change clarifies for
Participants, NIIDS Subscribers, and
other interested parties in NIIDS how
the service works, which, in turn, better
enables the timely and accurate
reporting of NIIDS Data Elements and
their use in associated transactions.
Therefore, DTC believes that the
proposed rule change would help
promote the prompt and accurate
clearance and settlement of securities
transactions, consistent with the
requirements of the Act, in particular
Section 17A(b)(3)(F) of the Act, cited
above.
(B) Clearing Agency’s Statement on
Burden on Competition
DTC does not believe that the
proposed rule change would have any
impact or impose any burden on
competition because, as described
above, the proposed rule change simply
corrects DTC’s filing record with respect
to the dissemination of NIIDS Data
Elements, and more clearly describes
NIIDS, without making any actual
changes to the service.
(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. If any written comments are
received, they will be publicly filed as
an Exhibit 2 to this filing, as required by
Form 19b–4 and the General
Instructions thereto.
Persons submitting written comments
are cautioned that, according to Section
IV (Solicitation of Comments) of the
Exhibit 1A in the General Instructions to
Form 19b–4, the Securities and
Exchange Commission (‘‘Commission’’)
does not edit personal identifying
information from comment submissions.
Commenters should submit only
information that they wish to make
available publicly, including their
name, email address, and any other
identifying information.
All prospective commenters should
follow the Commission’s instructions on
How to Submit Comments, available at
www.sec.gov/regulatory-actions/how-tosubmit-comments. General questions
regarding the rule filing process or
logistical questions regarding this filing
should be directed to the Main Office of
the Commission’s Division of Trading
and Markets at tradingandmarkets@
sec.gov or 202–551–5777.
E:\FR\FM\26DEN1.SGM
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Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices
DTC reserves the right to not respond
to any comments received.
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) 13 of the Act and paragraph
(f) 14 of Rule 19b–4 thereunder. 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:
ddrumheller on DSK120RN23PROD with NOTICES1
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–2024–015 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
All submissions should refer to file
number SR–DTC–2024–015. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet 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
a.m. and 3 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 (www.dtcc.com/
legal/sec-rule-filings). Do not include
personal identifiable information in
submissions; you should submit only
information that you wish to make
available publicly. We may redact in
part or withhold entirely from
publication submitted material that is
obscene or subject to copyright
protection. All submissions should refer
to File Number SR–DTC–2024–015 and
should be submitted on or before
January 16, 2025.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–30684 Filed 12–23–24; 8:45 am]
BILLING CODE 8011–01–P
14 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
19:37 Dec 23, 2024
Jkt 265001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization 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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101962; File No. SR–
NYSEARCA–2024–114]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify the NYSE Arca
Options Fee Schedule
December 18, 2024.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
17, 2024, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify the
NYSE Arca Options Fee Schedule (‘‘Fee
Schedule’’) regarding certain transaction
fees. The Exchange proposes to
implement the fee change effective
December 17, 2024. The proposed rule
change is available on the Exchange’s
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
13 15
website at www.nyse.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
PO 00000
Frm 00176
Fmt 4703
Sfmt 4703
The purpose of this filing is to amend
the Fee Schedule to modify certain
transaction fees. Specifically, the
Exchange proposes to adopt pricing
incentives to encourage trading in
options on Exchange Traded Funds that
hold digital assets (‘‘digital asset ETFs’’)
that are listed on NYSE Arca Equities.
The Exchange proposes to implement
the fee change effective December 17,
2024.4
On November 22, 2024, the Exchange
began trading options on the following
digital asset ETFs, each of which is
listed on NYSE Arca Equities: Grayscale
Bitcoin Trust ETF (GBTC); Grayscale
Bitcoin Mini Trust ETF (BTC); and
Bitwise Bitcoin ETF Trust (BITB).5 To
incentivize trading in these newly
available options on digital asset ETFs
(as well as in other options series in
digital asset ETFs that may be listed on
NYSE Arca Equities in the future), the
Exchange proposes to offer a per
contract discount or credit, which may
be combined with other discounts or
credits unless otherwise specified.
Specifically, the Exchange proposes
that executions in options on NYSE
Arca Equities-listed digital asset ETFs
(excluding QCC transactions) will
4 On December 2, 2024, the Exchange filed to
amend the Fee Schedule (NYSEARCA–2024–107)
and withdrew such filing on December 3, 2024 (SR–
NYSEARCA–2024–109), which latter filing the
Exchange withdrew on December 17, 2024.
5 See Trader Update, November 21, 2024
(announcing that on November 22, 2024, the
Exchange would begin listing and trading options
on GBTC, BTC, and BITB), available here, https://
www.nyse.com/trader-update/
history#110000945911.
E:\FR\FM\26DEN1.SGM
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Agencies
[Federal Register Volume 89, Number 247 (Thursday, December 26, 2024)]
[Notices]
[Pages 105138-105140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30684]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101964; File No. SR-DTC-2024-015]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
DTC's New Issue Information Dissemination Service To Unwind a Prior
Rule Filing and Provide a More Accurate Description of the Service
December 18, 2024.
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 December 12, 2024, 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 will (i) correct DTC's rule filing record
by unwinding a prior rule filing (``2014 Filing'') \5\ regarding DTC's
New Issue Information Dissemination Service (``NIIDS'') and (ii) update
the description of NIIDS in the DTC Operational Arrangements (Necessary
for Securities to Become and Remain Eligible for DTC Service) (``OA'')
\6\ to more clearly describe NIIDS, as described in greater detail
below.\7\
---------------------------------------------------------------------------
\5\ Securities Exchange Act Release No. 72763 (Aug. 5, 2014), 79
FR 46886 (Aug. 11, 2014) (SR-DTC-2014-08).
\6\ Available at www.dtcc.com/~/media/Files/Downloads/legal/
issue-eligibility/eligibility/operational-arrangements.pdf.
\7\ Each capitalized term not otherwise defined herein has its
respective meaning as set forth the Rules, By-Laws and Organization
Certificate of DTC (the ``Rules'') available at www.dtcc.com/legal/rules-and-procedures.
---------------------------------------------------------------------------
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 proposed rule change will (i) correct DTC's rule filing record
by unwinding the 2014 Filing regarding DTC's NIIDS and (ii) update the
description of NIIDS in the OA to more clearly describe NIIDS.
[[Page 105139]]
Background
NIIDS was established by DTC in 2008.\8\ It was built to improve
the process by which brokers comply with Municipal Securities Rule
Making Board (``MSRB'') standards for making available certain data
information (``NIIDS Data Elements'') pertaining to the reporting,
comparison, confirmation, and settlement of trades in newly issued
municipal securities (``New Muni Issues'').\9\ Through NIIDS,
underwriters or other authorized representatives (``Dissemination
Agents'') are able to distribute NIIDS Data Elements to data vendors or
other users of such information, as required by the MSRB.\10\
---------------------------------------------------------------------------
\8\ Securities Exchange Act Release No. 57768 (May 2, 2008), 73
FR 26181 (May 8, 2008) (SR-DTC-2007-10).
\9\ NIIDS Data Elements are needed for trade reporting, trade
matching and to set up trade confirmation for certain municipal
securities.
\10\ MSRB Rule G-34(a)(ii)(C).
---------------------------------------------------------------------------
DTC collects NIIDS Data Elements about New Muni Issues from
Dissemination Agents in electronic format through DTC's underwriting
system as part of DTC's New Muni Issue underwriting process. Those
NIIDS Data Elements are then disseminated to market participants that
subscribed to such information (``NIIDS Subscribers'').
2014 Filing
Prior to 2014, DTC was responsible for disseminating NIIDS Data
Elements to NIIDS Subscribers upon approval to do so by the
Dissemination Agent. The 2014 Filing was a rule change by DTC to
transfer the dissemination process from DTC to a non-clearing agency
affiliate (i.e., the ``NIIDS Disseminator'').\11\ The impetus for
moving the dissemination process was in anticipation of further
business opportunities for the NIIDS Disseminator. However, such
opportunities did not materialize, and the dissemination process was
never transferred from DTC to the NIIDS Disseminator. Because the
transfer never occurred, the OA was never updated to reflect the
proposed changes from the 2014 Filing.
---------------------------------------------------------------------------
\11\ Securities Exchange Act Release No. 72763 (Aug. 5, 2014),
79 FR 46886 (Aug. 11, 2014) (SR-DTC-2014-08).
---------------------------------------------------------------------------
Since the OA was never updated and because DTC will remain the
disseminator of NIIDS Data Elements, DTC is now proposing to correct
the record and unwind the 2014 Filing with this rule filing.
Updated NIIDS Description
In addition to unwinding the 2014 Filing, this proposed rule change
will delete the current NIIDS description in the OA and replace that
language with a more concise, clear, and accurate description of the
NIIDS dissemination process. The proposed language would not change the
way NIIDS works; rather, the new description would simply provide a
more thorough and precise explanation of NIIDS. Specifically, the
proposed rule language would (1) provide an improved introduction and
explanation of the purpose of NIIDS, how NIIDS is integrated into DTC's
underwriting system (i.e., UW SOURCE), and give a clearer overview of
NIIDS's role and its regulatory context; (2) explain the specific
process that the Dissemination Agent must follow to successfully
disseminate NIIDS Data Elements, outline the steps involved, and
emphasize, for clarity, that failure to enter the required data or
select the dissemination function would prevent the information from
being disseminated; (3) clarify the role and importance of NIIDS Data
Elements by defining them and distinguishing them from the DTC
eligibility process; (4) correct grammatical and technical errors
(e.g., the term ``New Issue Identification Dissemination System'' would
be replaced by the correct term ``New Issue Information Dissemination
Service''); and (5) provide an updated legal disclaimer, which
specifies that DTC functions solely as a conduit for NIIDS, disclaims
responsibility for validating the accuracy or completeness of NIIDS
Data Elements and limits liability for any faults, errors or damages
arising from the use of NIIDS. In order to provide a disclaimer that is
more precise, accurate and more aligned to DTC's current disclaimer
language, the updated disclaimer is broader, more detailed, and
explicitly addresses data faults, warranties and limits liability for
various damages, including the adequacy, quality, accuracy,
completeness, or timeliness of information made available through
NIIDS.
2. Statutory Basis
Section 17A(b)(3)(F) of the Act requires that the rules of the
clearing agency be designed, inter alia, to promote the prompt and
accurate clearance and settlement of securities transactions.\12\ DTC
believes that the proposed rule change is consistent with the Section
17A(b)(3)(F) of the Act.
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\12\ 15 U.S.C. 78q-1(b)(3)(F).
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As described above, the proposed rule change will (i) correct DTC's
filing record by unwinding the 2014 Filing, and (ii) remove the current
description of NIIDS in the OA and replace it with an update
description that more clearly and accurately describes the service,
including an updated and clearer liability disclaimer. By unwinding the
2014 Filing and updating and correcting the description of NIIDS in the
OA, the proposed rule change clarifies for Participants, NIIDS
Subscribers, and other interested parties in NIIDS how the service
works, which, in turn, better enables the timely and accurate reporting
of NIIDS Data Elements and their use in associated transactions.
Therefore, DTC believes that the proposed rule change would help
promote the prompt and accurate clearance and settlement of securities
transactions, consistent with the requirements of the Act, in
particular Section 17A(b)(3)(F) of the Act, cited above.
(B) Clearing Agency's Statement on Burden on Competition
DTC does not believe that the proposed rule change would have any
impact or impose any burden on competition because, as described above,
the proposed rule change simply corrects DTC's filing record with
respect to the dissemination of NIIDS Data Elements, and more clearly
describes NIIDS, without making any actual changes to the service.
(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. If any written comments are received, they will be
publicly filed as an Exhibit 2 to this filing, as required by Form 19b-
4 and the General Instructions thereto.
Persons submitting written comments are cautioned that, according
to Section IV (Solicitation of Comments) of the Exhibit 1A in the
General Instructions to Form 19b-4, the Securities and Exchange
Commission (``Commission'') does not edit personal identifying
information from comment submissions. Commenters should submit only
information that they wish to make available publicly, including their
name, email address, and any other identifying information.
All prospective commenters should follow the Commission's
instructions on How to Submit Comments, available at www.sec.gov/regulatory-actions/how-to-submit-comments. General questions regarding
the rule filing process or logistical questions regarding this filing
should be directed to the Main Office of the Commission's Division of
Trading and Markets at [email protected] or 202-551-5777.
[[Page 105140]]
DTC reserves the right to not respond to any comments received.
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) \13\ of the Act and paragraph (f) \14\ of Rule 19b-4
thereunder. 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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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-DTC-2024-015 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to file number SR-DTC-2024-015. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet 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
a.m. and 3 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 (www.dtcc.com/legal/sec-rule-filings). Do not include personal
identifiable information in submissions; you should submit only
information that you wish to make available publicly. We may redact in
part or withhold entirely from publication submitted material that is
obscene or subject to copyright protection. All submissions should
refer to File Number SR-DTC-2024-015 and should be submitted on or
before January 16, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-30684 Filed 12-23-24; 8:45 am]
BILLING CODE 8011-01-P