69150 Federal Register / Vol. 75, No. 217 / Wednesday, November 10, 2010 / Notices 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2Securities Exchange Act Release No. 62990 

(September 24, 2010), 75 FR 60158. 

3 15 U.S.C. 78q–1(b)(3)(F). 

4 17 CFR 200.30–3(a)(12). 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549 on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of CBOE. 

All comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–CBOE–2010–100 and 

should be submitted on or before 

December 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28330 Filed 11–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63245; File No. SR–DTC– 

2010–12] 

Self-Regulatory Organizations; The 

Depository Trust Company; Order 

Approving Proposed Rule Change To 

Automate the Approval Process in 

Providing Trustee Access to the 

Security Position Report Service 

November 4, 2010. 

I. Introduction 

On September 14, 2010, The 

Depository Trust Company (‘‘DTC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) proposed 

rule change SR–DTC–2010–12 pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’).1 Notice of 

the proposal was published in the 

Federal Register on September 29, 

2010.2 The Commission received no 

comment letters in response to the 

proposed rule change. For the reasons 

discussed below, the Commission is 

approving the proposed rule change. 

II. Description 

DTC’s Security Position Report 

(‘‘SPR’’) service provides valuable 

information on the record date holdings 

of an issuer’s security in DTC 

Participant accounts. An SPR provides 

information needed to contact 

shareholders about corporate-related 

events such as annual meetings. DTC 

currently provides SPRs to issuers, 

trustees, and authorized third parties. 

DTC’s Proxy area receives requests for 

SPR services access and reviews such 

requests to ensure that only appropriate 

parties receive access. The current 

review process to approve a trustee’s 

access to the SPR service for a security 

is done manually, and the process is 

therefore subject to error. Currently, the 

SPR system sends an e-mail to the DTC 

Proxy mailbox notifying the Proxy staff 

that a trustee has added a CUSIP to its 

eligible issues list. Any trustee can add 

a CUSIP to its eligible issues list. The 

CUSIP will show ‘‘unauthorized’’ until 

reviewed and approved by the DTC 

Proxy staff. DTC Proxy staff requires 

that the trustee provide to it one of the 

following: Trust agreement, Annual 

Report, 10K, 10Q, SEC filing, or any 

other document deemed necessary and 

appropriate to prove that the trustee is 

in fact the trustee for the CUSIP and 

therefore is entitled to access to SPRs for 

the CUSIP. Generally, it takes two or 

more days for a decision on access 

requests because of the manual process 

associated with the review of trustee 

information. 

To increase the efficiency by which 

DTC provides trustees with access to the 

SPR service, DTC is seeking to collect 

trustee data at the point of eligibility of 

the issue. This will allow DTC to store 

and maintain trustee data on the Entity 

Master File and the Security Master File 

(‘‘Master Files’’). DTC will then have the 

ability to automate the validation using 

the information stored on the Master 

Files in response to a trustee’s request 

for SPR access. 

Initially, DTC will populate and 

update the trustee field on the Master 

Files through DTC’s Participant 

Terminal System. Ultimately and as set 

forth below this information will be 

supplied by underwriters at the time of 

issue eligibility through DTC’s UW 

(underwriting) Source System. This 

change requires DTC to update the UW 

Source System to designate trustee data 

as a mandatory field at the time of 

eligibility. In order to provide the time 

it may take for underwriters to update 

their systems to supply the information 

required by this new mandatory field, 

DTC plans to implement the change to 

the UW Source System in the fourth 

quarter of 2011. In the event of a change 

in trustee, DTC will require that the new 

and the prior trustees both update the 

trustee information using Form 17Ad16, which is used today to update 

transfer agent changes. By automating 

the trustee authorization process, DTC 

will increase the efficiency of the SPR 

system and will reduce the risk of error 

associated with the manual processing 

of trustee data. 

III. Discussion 

Section 19(b) of the Act directs the 

Commission to approve a proposed rule 

change of a self-regulatory organization 

if it finds that such proposed rule 

change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

such organization. Section 17A(b)(3)(F) 

of the Act requires that the rules of a 

clearing agency be designed to protect 

investors and the public interest.3 The 

Commission believes that DTC’s rule 

change is consistent with this 

requirement because by replacing the 

current manual process for approving a 

trustee’s access to DTC’s SPR service for 

an issue with an automated approval 

process, DTC will be able to reduce the 

number of errors associated with 

manual processing and thereby better 

protect investors’ confidential 

information. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and in 

particular Section 17A of the Act and 

the rules and regulations thereunder. In 

approving the proposed rule change, the 

Commission considered the proposal’s 

impact on efficiency, competition, and 

capital formation. 

IT IS THEREFORE ORDERED, 

pursuant to Section 19(b)(2) of the Act, 

that the proposed rule change (File No. 

SR–DTC–2010–12) be and hereby is 

approved. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.4

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28331 Filed 11–9–10; 8:45 am] 

BILLING CODE 8011–01–P 


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