80878 Federal Register / Vol. 75, No. 246 / Thursday, December 23, 2010 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2Securities Exchange Act Release No. 63254 

(November 5, 2010), 75 FR 69514 (November 12, 

2010). 

3The amendment was the subject of a DTC 

proposed rule change approved by the Commission. 

Securities Exchange Act No. 34–41529 (June 15, 

1999), 64 FR 33333 (June 22, 1999) [File No. SR– 

DTC–1999–08]. The amendment was also approved 

by the New York State Superintendent of Banks. 

4Securities Exchange Release No. 43197 (August 

23, 2000), 65 FR 52459 (August 29, 2000) [File No. 

SR–DTC–2000–02]. 

5Securities Exchange Act Release No. 54775 

(November 17, 2006), 71 FR 68662 (November 27, 

2006) [SR–DTC–2006–14]. 

6Securities Exchange Act Release No. 59612 

(March 20, 2009), 74 FR 13488 (March 27, 2009) 

[File No. SR–DTC–2009–06]. 

7On October 20, 2010, DTC’s sole stockholder, 

The Depository Trust & Clearing Corporation, 

authorized DTC to amend its Certificate of 

Organization to increase the number of shares of 

authorized preferred stock, as required by Section 

8003 of the Banking Law of the State of New York. 

DTC is also required to seek approval from the New 

York State Banking Department, which concurrent 

with the filing of this proposed rule change, it has 

done. 

8 DTC, as a member institution of the Federal 

Reserve System, is subject to capital guidelines 

issued by the Board of Governors of the Federal 

Reserve System. To be considered ‘‘wellcapitalized’’ under these guidelines, DTC must, 

among other things, maintain a Total Risk-Based 

Capital Ratio of at least 10%, a Leverage Ratio of 

at least 5%, and a Tier 1 Risk-Based Capital Ratio 

of at least 6%. 

The authorization and issuance of this additional 

1,750,000 shares will increase the number of shares 

of Series A Preferred Stock to a total of 3,250,000 

shares with a total par value of $325 million. This 

will enable DTC to continue to be ‘‘well capitalized’’ 

under the capital guidelines issued by the Board of 

Governors of the Federal Reserve System. 

9 15 U.S.C. 78q–1(b)(3)(F). 

10 17 CFR 200.30–3(a)(12). 

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–EDGX– 

2010–17 and should be submitted on or 

before January 13, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32286 Filed 12–22–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63567; File No. SR–DTC– 

2010–14] 

Self-Regulatory Organizations; The 

Depository Trust Company; Order 

Granting Approval of a Proposed Rule 

Change To Authorize Additional 

Shares of Preferred Stock and 

Designate Shares as Series A 

Preferred Stock 

December 16, 2010. 

I. Introduction 

On October 22, 2010, The Depository 

Trust Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) proposed rule change 

SR–DTC–2010–11 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 November 12, 2010.2 The 

Commission received no comment 

letters. For the reasons discussed below, 

the Commission is granting approval of 

the proposed rule change. 

II. Description 

In 1999, DTC’s Certificate of 

Organization was amended (‘‘1999 

Amendment’’) to provide for the 

authorization and issuance of 1,500,000 

shares of preferred stock, par value $100 

per share.3 The 1999 Amendment also 

provided that the preferred stock could 

be issued in one or more classes having 

such designations, relative rights, 

preferences, or limitation as fixed by the 

Board of Directors of DTC at the time of 

issuance of any such preferred stock. 

DTC’s Certificate of Organization has 

been amended three times since the 

1999 Amendment to provide for the 

issuance of variable rate, 

noncumulative, nonvoting shares of 

Series A preferred stock, par value $100 

per shares, which are preferred over 

DTC’s common stock as to dividends 

and in the event of liquidation (‘‘Series 

A Preferred Stock’’). The first such 

amendment (filed in 2000) provided for 

the issuance of 750,000 shares of the 

Series A Preferred Stock.4 The second 

amendment (filed in 2006) provided for 

the issuance of an additional 500,000 

shares of Series A Preferred Stock.5 The 

third amendment (filed in 2009) 

provided for the issuance of an 

additional 250,000 shares of Series A 

Preferred Stock.6

DTC participants are required to 

purchase and own shares of the Series 

A Preferred Stock in proportion to their 

use of DTC services. DTC treats the 

Series A Preferred Stock held by 

participants substantially the same as it 

treats the mandatory cash deposits made 

by participants to the Participants Fund 

for purposes of collateralizing securities 

transactions, limiting net debit 

positions, implementing default 

procedures, and allocating unrecovered 

losses. 

In order to further increase its capital, 

DTC is amending its Certificate of 

Organization 7 to authorize an 

additional 1,750,000 shares of Series A 

Preferred stock with such rights, 

preferences, and limitations as currently 

provided in its Certificate of 

Organization.8

III. Discussion 

Section 17A(b)(3)(F) of the Act 

requires that the rules of a clearing 

agency be designed to, among other 

things, assure the safeguarding of 

securities and funds which are in the 

custody or control of the clearing agency 

or for which it is responsible and to 

protect investors and the public 

interest.9 The Commission believes that 

the rule change is consistent with DTC’s 

obligations under the Exchange Act 

because the rule change will enable DTC 

to be ‘‘well capitalized’’ while not 

adversely affecting its ability to 

adequately safeguard the securities and 

funds in its custody or control or for 

which it is responsible. 

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 with the requirements of 

Section 17A of the Act and the rules and 

regulations thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act, that the 

proposed rule change (File No. SR– 

DTC–2010–14) be and hereby is 

approved. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32225 Filed 12–22–10; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #12418 and #12419] 

U.S. Virgin Islands Disaster #VI–00006 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the U.S. Virgin Islands dated 12/15/ 

2010. 

Incident: Tropical Storm Tomas. 

Incident Period: 11/08/2010 through 

11/12/2010. 

Effective Date: 12/15/2010. 

Physical Loan Application Deadline 

Date: 02/14/2011. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 09/15/2011. 

mstockstill on DSKH9S0YB1PROD with NOTICES