79320 Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 

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

2 17 CFR 240.19b–4. 

3Available at www.dtcc.com/-/media/Files/ 

Downloads/legal/service-guides/Settlement.pdf. 

The Settlement Guide is a Procedure of DTC. 

Pursuant to the DTC Rules, the term ‘‘Procedures’’ 

means the Procedures, service guides, and 

regulations of DTC adopted pursuant to DTC Rule 

27, as amended from time to time. See DTC Rule 

1, Section 1, infra note 6. They are binding on DTC 

and each Participant in the same manner that they 

are bound by the DTC Rules. 

4NSCC also filed a proposed rule change with the 

Commission in connection with the retirement of ID 

Net. See NSCC filing SR–NSCC–2024–008. 

5Available at www.dtcc.com/∼/media/Files/ 

Downloads/legal/fee-guides/DTC-Fee-Schedule.pdf. 

6Each 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. 

7An institutional transaction is one between a 

broker/dealer and its institutional customer. Such 

institutional customers are not Participants. 

Therefore, the counterparties on an Affirmed 

Transaction submitted by a Matching Utility to DTC 

are a (i) DTC Participant, acting as clearing broker 

to the Affirmed Transaction and (ii) DTC 

Participant bank, acting as the custodian for an 

institutional customer. 

8The Matching Utility must be (i) a clearing 

agency registered with the Commission (ii) an entity 

that has obtained an exemption from such 

registration from the Commission, or (iii) a 

‘‘qualified vendor’’ for trade confirmation/ 

affirmation services as defined by the rules of a selfregulatory organization. See Settlement Guide, 

supra note 3 at 38. DTCC ITP Matching (US) LLC 

(‘‘ITP’’), a DTC affiliate, is currently the only 

Matching Utility that submits Affirmed 

Transactions to DTC. 

Advantage Contract 358 to the 

Competitive Product List and Notice of 

Filing Materials Under Seal; Filing 

Acceptance Date: September 20, 2024; 

Filing Authority: 39 U.S.C. 3642, 39 CFR 

3035.105, and 3041.310; Public 

Representative: Katalin K. Clendenin; 

Comments Due: September 30, 2024. 

5. Docket No(s).: MC2024–722 and 

K2024–15; Filing Title: USPS Request to 

Add Priority Mail Express, Priority Mail 

& USPS Ground Advantage Contract 369 

to the Competitive Product List and 

Notice of Filing Materials Under Seal; 

Filing Acceptance Date: September 20, 

2024; Filing Authority: 39 U.S.C. 3642, 

39 CFR 3035.105, and 3041.310; Public 

Representative: Kenneth R. Moeller; 

Comments Due: September 30, 2024. 

6. Docket No(s).: MC2024–723 and 

K2024–16; Filing Title: USPS Request to 

Add Priority Mail & USPS Ground 

Advantage Contract 359 to the 

Competitive Product List and Notice of 

Filing Materials Under Seal; Filing 

Acceptance Date: September 20, 2024; 

Filing Authority: 39 U.S.C. 3642, 39 CFR 

3035.105, and 3041.310; Public 

Representative: Katalin K. Clendenin; 

Comments Due: September 30, 2024. 

7. Docket No(s).: MC2024–724 and 

K2024–17; Filing Title: USPS Request to 

Add Priority Mail Express, Priority Mail 

& USPS Ground Advantage Contract 370 

to the Competitive Product List and 

Notice of Filing Materials Under Seal; 

Filing Acceptance Date: September 20, 

2024; Filing Authority: 39 U.S.C. 3642, 

39 CFR 3035.105, and 3041.310; Public 

Representative: Gregory S. Stanton; 

Comments Due: September 30, 2024. 

8. Docket No(s).: MC2024–725 and 

K2024–18; Filing Title: USPS Request to 

Add Priority Mail Express, Priority Mail 

& USPS Ground Advantage Contract 371 

to the Competitive Product List and 

Notice of Filing Materials Under Seal; 

Filing Acceptance Date: September 20, 

2024; Filing Authority: 39 U.S.C. 3642, 

39 CFR 3035.105, and 3041.310; Public 

Representative: Jennaca D. Upperman; 

Comments Due: September 30, 2024. 

9. Docket No(s).: MC2024–726 and 

K2024–19; Filing Title: USPS Request to 

Add Priority Mail Express, Priority Mail 

& USPS Ground Advantage Contract 372 

to the Competitive Product List and 

Notice of Filing Materials Under Seal; 

Filing Acceptance Date: September 20, 

2024; Filing Authority: 39 U.S.C. 3642, 

39 CFR 3035.105, and 3041.310; Public 

Representative: Kenneth R. Moeller; 

Comments Due: September 30, 2024. 

This Notice will be published in the 

Federal Register. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2024–22116 Filed 9–26–24; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101132; File No. SR–DTC– 

2024–010] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing of Proposed Rule Change To 

Decommission the ID Net Service 

September 23, 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 

September 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. 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 is to (1) 

amend the DTC Settlement Service 

Guide (‘‘Settlement Guide) 3 to retire the 

ID Net Service (‘‘ID Net’’), a joint service 

offering of DTC and National Securities 

Clearing Corporation (‘‘NSCC’’), a DTC 

affiliate,4 and, consequently, (2) remove 

from the Guide to the DTC Fee Schedule 

(‘‘Fee Guide’’) 5 the related fee (‘‘ID Net 

Fee’’) associated with ID Net, as 

described in greater detail below.6

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

The purpose of this proposed rule 

change is to (1) amend the Settlement 

Guide to retire the ID Net, a joint service 

offering of DTC and NSCC and, 

consequently, (2) remove from the Fee 

Guide the ID Net Fee associated with ID 

Net. 

Background 

DTC may accept affirmed institutional 

transactions (‘‘Affirmed Transactions’’) 7

from a matching utility (‘‘Matching 

Utility’’).8 An Affirmed Transaction 

submitted to DTC is processed on a 

trade-for-trade basis at DTC, unless it is 

designated for ID Net processing by the 

Matching Utility and meets certain 

eligibility requirements, as described 

below. 

In order for an Affirmed Transaction 

to be eligible for processing in ID Net, 

(i) both counterparties to the Affirmed 

Transaction must be a Member of NSCC 

and a Participant of DTC, or a bank that 

is a Participant of DTC, that has 

subscribed to ID Net; and (ii) the 

transaction must be (a) in a security 

eligible for processing through NSCC’s 

Continuous Net Settlement (‘‘CNS’’) 


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9CNS is NSCC’s system for accounting and 

settling CNS-eligible securities. See NSCC Rule 11 

(describing the CNS System) and Procedure VII 

(describing the CNS Accounting Operation), 

available at www.dtcc.com/-/media/Files/ 

Downloads/legal/rules/nscc_rules.pdf. To be CNSeligible, a security must be eligible for book-entry 

transfer on the books of DTC and must be capable 

of being processed in the CNS system. All eligible 

compared and recorded transactions for a particular 

settlement date are netted by issue into one net long 

(buy), net short (sell) or flat position for each NSCC 

Member. As a continuous net system, those 

positions are further netted with positions of the 

same issue that remain open after their originally 

scheduled settlement date. NSCC becomes the 

contra-party for settlement purposes, assuming the 

obligation of its Members that are receiving 

securities to receive and pay for those securities, 

and the obligation of Members that are delivering 

securities to make the delivery. CNS netting thus 

reduces the costs associated with securities 

transfers by reducing the number of securities 

movements required to settle transactions. 

10See Settlement Guide, supra note 3 at 40–41. 

11 ID Net-related transactions currently comprise 

less than 1 percent of all activity processed by CNS. 

DTC believes that ID Net usage has been limited 

since its implementation in 2008 because, in part, 

the service needs both parties to an ID Net 

transaction to be subscribers of ID Net, as described 

above, which is not always the case. 

12This complexity includes (i) special eligibility 

checks versus the ID Net eligibility criteria 

described above, and (ii) leveraging of the abovementioned omnibus accounts to simultaneously 

allow (a) a bank to process ID Net-eligible 

transactions on a trade-for-trade basis and (b) the 

broker/dealer side of an ID Net-eligible transaction 

to settle via CNS. 

13See Settlement Guide, supra note 3 at 40–46. 

14 Id. at 38. 

15See Fee Guide, supra note 5 at 18. 

16 Id. 

17 15 U.S.C. 78q–1(b)(3)(F). 

18 Id. 

19 15 U.S.C. 78q–1(b)(3)(I). 

system 9 and (b) affirmed within 

established timeframes set forth in the 

Settlement Guide.10

If an Affirmed Transaction is 

designated for ID Net by the Matching 

Utility and meets the eligibility criteria 

described above, then DTC will direct 

the transaction to ID Net, which 

facilitates the netting of a broker/ 

dealer’s side of an Affirmed Transaction 

with that broker/dealer’s CNS activity 

via omnibus accounts that are 

maintained by NSCC at DTC and 

designated for ID Net activity. If a bank 

is a counterparty to the ID Net-eligible 

Affirmed Transaction, then it will either 

receive or deliver the subject shares 

versus payment, on a trade-for-trade 

basis, via the ID Net omnibus accounts. 

While ID Net was designed to allow 

broker/dealers to realize the benefit of 

netting for Affirmed Transactions by 

allowing the broker/dealer to net its ID 

Net-eligible Affirmed Transactions with 

its transactions in CNS, banks using ID 

Net settle ID Net transactions on a tradefor-trade basis as they would for other 

Affirmed Transactions, as described 

above. In this regard, ID Net’s main 

benefit is to streamline clearance and 

settlement of ID Net-eligible Affirmed 

Transactions for broker/dealers. 

Proposed Changes 

NSCC and DTC continually evaluate 

the efficiency and effectiveness of the 

services they each provide. As part of 

these evaluations, and in furtherance of 

their ongoing modernization efforts, 

both DTC and NSCC are seeking to 

streamline and simplify their services 

and processes, including through the 

elimination of underutilized services. 

DTC and NSCC have identified ID Net 

as an underused service that may be 

eliminated as part of their 

modernization efforts. They each 

propose to retire ID Net due to (i) 

limited uptake and usage of the service 

since its adoption 11 and (ii) complexity 

of the processing logic required to 

maintain the service,12 especially given 

its limited usage. 

DTC believes that the retirement of ID 

Net would have minimal impact on its 

Participants because (1) only 13 broker/ 

dealers and 20 banks subscribe to ID 

Net, with not all of them even using the 

service, and (2) Affirmed Transactions 

can simply settle trade-for-trade, 

directly between the counterparties, if 

not eligible for ID Net, like they do 

today. 

To implement the proposed change, 

DTC would remove all provisions 

relating to ID Net from the Settlement 

Guide, including (i) the entire text of the 

section titled ‘‘ID Net,’’ which contains 

the DTC Procedures for processing of ID 

Net transactions,13 and (ii) a reference to 

ID Net relating to messaging in the 

section titled ‘‘Affirmed 

Transactions.’’ 14

DTC has performed direct outreach to 

Participants that use ID Net and has also 

announced its plans to decommission 

ID Net through Important Notice. There 

have been no material objections or 

concerns raised by Participants. 

In addition, DTC would delete the 

associated ID Net Fee of 2 cents per 

transaction from the Fee Guide 15

because the fee would be obsolete. 

Instead, such transactions would, by 

default, be charged the standard fee 

charged for Affirmed Transactions of 4 

cents per transaction.16

Implementation Timeframe 

Subject to approval by the 

Commission, DTC and NSCC would 

implement the proposed rule change 

using a phased approach. First, DTC 

Participants and NSCC Members have 

been informed that they may be 

unsubscribed from ID Net voluntarily at 

any time prior to termination of the 

service on November 15, 2024. Second, 

upon approval of the proposed rule 

change by the Commission prior to 

November 15, 2024, any DTC 

Participants and NSCC Members that 

have been inactive in the service for at 

least the last twelve (12) months will be 

offboarded from the service. Finally, 

NSCC and DTC will continue to fully 

support ID Net processing for any 

remaining active users until November 

15, 2024, at which time the service will 

be fully retired. NSCC and DTC will 

work with their respective Members and 

Participants to support all required 

offboarding activities. 

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 

a registered clearing agency. Section 

17A(b)(3)(F) of the Act 17 requires that 

the rules of a clearing agency be 

designed to, among other things, 

promote the prompt and accurate 

clearance and settlement of securities 

transactions. DTC believes the proposed 

rule change is consistent with the 

requirements of Section 17A(b)(3)(F) of 

the Act for the reasons stated below. 

The proposed rule change would 

amend the Settlement Guide to 

decommission ID Net, and remove the 

ID Net Fee from the Fee Guide, because 

the service is hardly used yet 

challenging to maintain. As discussed 

above, DTC believes that the retirement 

of ID Net would have minimal impact 

on its Participants given the limited 

usage of the service. Furthermore, 

Affirmed Transactions that would have 

otherwise been directed to ID Net can 

simply settle trade-for-trade, directly 

between the counterparties, like most 

other Affirmed Transactions do today. 

As a result, these Affirmed Transactions 

would continue to settle promptly and 

accurately, as other Affirmed 

Transactions do, outside of ID Net. For 

these reasons, DTC believes its Rules 

would continue to promote the prompt 

and accurate clearance and settlement of 

securities transactions in accordance 

with Section 17A(b)(3)(F) of the Act.18

(B) Clearing Agency’s Statement on 

Burden on Competition 

Section 17A(b)(3)(I) of the Act 19

requires that the rules of the clearing 

agency do not impose any burden on 

competition not necessary or 

appropriate in furtherance of the Act. 

DTC does not believe the proposed 

rule change to decommission ID Net 

would present a burden on competition. 

While the few broker/dealer Participants 


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79322 Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 

20See Fee Guide, supra note 5 at 18. 

21 Id. 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

using the service may see a reduced 

netting benefit, since Affirmed 

Transactions will no longer be 

processed through NSCC’s CNS, DTC 

does not believe such reduction would 

rise to the level of a burden given the 

limited usage of the service. Meanwhile, 

banks using ID Net would continue to 

process affected Affirmed Transactions 

trade-for-trade, albeit directly with their 

counterparties rather than the ID Net 

omnibus accounts, described above. 

Furthermore, DTC does not believe 

the removal of the ID Net Fee, which 

would become obsolete with the 

decommissioning ID Net, would impose 

a burden on competition. Upon the 

decommissioning of ID Net, Affirmed 

Transactions that were previously 

processed via ID Net will now be subject 

to the existing standard charge for 

Affirmed Transactions of 4 cents 20 per 

transaction instead of the ID Net Fee of 

2 cents.21 Notwithstanding the 

increased fee, DTC does believe the 

application of the standard fee applied 

to Affirmed Transactions will be 

significant or burdensome for 

Participants because of the limited 

amount of activity that was processed 

through ID Net. 

(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 by DTC, 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 comments are 

cautioned that, according to Section IV 

(Solicitation of Comments) of the 

Exhibit 1A in the General Instructions to 

Form 19b–4, the 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. 

DTC reserves the right not to respond 

to any comments received. 

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 

up to 90 days (i) as the Commission may 

designate 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– 

DTC–2024–010 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–2024–010. 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 

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–2024–010 and 

should be submitted on or before 

October 18, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–22128 Filed 9–26–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101135; File No. SR– 

PEARL–2024–43] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the MIAX Pearl 

Equities Fee Schedule 

September 23, 2024. 

Pursuant to the provisions of 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 September 10, 2024, MIAX PEARL, 

LLC (‘‘MIAX Pearl’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

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 is filing a proposal to 

amend the MIAX Pearl Equities 

Exchange Fee Schedule (the ‘‘Fee 

Schedule’’) to amend Section 2)e), 

Member and Non-Member Technical 

Support Request Fee. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://www.miaxglobal.com/markets/ 


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