Federal Register / Vol. 74, No. 76 / Wednesday, April 22, 2009 / Notices 18415 

25 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78s(b)(3)(A)(iii). 

3 17 CFR 240.19b–4(f)(4). 

4The rule change does not change the option for 

a participant to submit P&I withdrawal requests 

electronically. 

5 ‘‘Collateral’’ is defined in DTC’s rules as the sum 

of (i) the participant’s Actual Fund Deposit, (ii) the 

participant’s Actual Preferred Stock Investment, 

(iii) the participant’s Net Additions, and (iv) any 

SPPs wired by the participant to DTC’s account at 

the Federal Reserve Bank of New York. 

6A net debit cap helps ensure that DTC can 

complete settlement, even if a participant fails to 

settle. 

7Under DTC’s rules, a settling bank is a 

participant that is a bank or trust company subject 

to supervision or regulation pursuant to Federal or 

State banking laws and a party to an effective 

‘‘Settling Bank Agreement.’’ 

8The upcoming reduction in debit caps for 

‘‘families’’ will likely cause increased volume in 

SPPs. See Securities Exchange Act Release No. 

59148 (Dec. 23, 2008), 73 FR 80481 (Dec. 31, 2008). 

9 DTC tracks collateral in a participant’s account 

through the Collateral Monitor (‘‘CM’’). The CM 

reflects the amount that the collateral in the account 

exceeds the net debit in the account. When 

processing a transaction, DTC verifies that the 

participant’s CM would not become negative when 

the transaction completes. If the transaction would 

cause the participant to have a negative CM, the 

transaction will recycle until the participant has 

sufficient collateral to complete. 

10Withdrawals that are blocked as a result of 

insufficient collateral or net debit cap will recycle 

until enough collateral or settlement credits are 

generated to satisfy the collateral or net debit cap 

deficiency or until the end of the recycle period 

when transactions that have not successfully 

completed are dropped by the system. 

11The updated wire instructions are attached as 

Exhibit 5 to DTC’s rule filing. 

12 15 U.S.C. 78q–1. 

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 inspection and copying 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 FINRA. 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–FINRA– 

2009–016 and should be submitted on 

or before May 13, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–9157 Filed 4–21–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59774; File No. SR–DTC– 

2009–08] 

Self-Regulatory Organizations; the 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Settlement Service Guide and 

Settlement Progress Payments 

April 15, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

April 3, 2009, 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 primarily by DTC. DTC filed 

the proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 2 and 

Rule 19b–4(f)(4) thereunder 3 so that the 

proposal was effective upon filing with 

the Commission. 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 proposed rule change will (i) 

amend DTC’s Settlement Service 

Guide’s instructions regarding 

withdrawals of intraday principal and 

income payments for non-money market 

instrument issues and (ii) update certain 

aspects of DTC’s Settlement Progress 

Payments (‘‘SPP’’) procedures. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

DTC 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. DTC has prepared 

summaries, set forth in Sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

DTC is amending the procedures 

governing a participant’s withdraw of 

principal and income (‘‘P&I’’) payments 

for non-money market instrument issues 

that DTC has received from paying 

agents and allocated to a participant’s 

settlement account. The changes 

include the address and fax number to 

which a participant must send the wire 

instruction form to and the information 

that must be included in that form as 

well as a clarification that the funds 

must be wired to the participant’s DTC 

settlement bank.4

DTC is also amending its SPP 

procedures. As background, an SPP is a 

payment sent from a DTC participant to 

DTC through Fedwire when a DTC 

participant has insufficient collateral 5

or is at its net debit cap.6 The SPP 

creates a credit to the participant’s 

settlement account thereby reducing 

their net debit and allowing the 

participant to continue to receive 

deliveries into their participant account. 

Under this rule change, DTC will 

implement a new automated SPP return 

functionality that will permit 

participants to request that DTC return 

all or a portion of an SPP and to have 

these payments wired to the 

participant’s settlement bank account 7

intraday and before the settlement 

period. DTC states that these changes 

should simplify the SPP return process 

and should allow participants to 

maximize the early return of available 

liquidity.8

Prior to this rule change, DTC would 

return only the full amount of a SPP 

provided that returning the SPP would 

not result in a negative collateral 

monitor 9 or cause the participant’s net 

settlement debit to exceed its net debit 

cap.10 DTC would debit the full amount 

of the SPP from the participant’s 

settlement account and return the funds 

through Fedwire to the participant’s 

original sending bank. If a participant 

only had sufficient collateral or debit 

cap to return a portion of the SPP, DTC 

would not process the request until the 

full amount of the SPP could be 

returned. Furthermore, return requests 

required manual approval from DTC’s 

Settlement Operations. 

The changes to DTC’s SPP function 

also include new wire instructions and 

parameters for using the new automated 

SPP Return function.11

DTC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the 

Act 12 and the rules and regulations 

thereunder applicable to DTC. The 

proposed rule change will not affect the 


dwashington3 on PROD1PC60 with NOTICES
18416 Federal Register / Vol. 74, No. 76 / Wednesday, April 22, 2009 / Notices 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 240.19b–4(f)(2). 15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Premium Products is defined in the Schedule of 

Fees as the products enumerated therein. 

safeguarding of funds or securities in 

DTC’s custody and control or for which 

it is responsible because it allows for a 

more efficient processing of P&I 

withdrawals and SPP returns. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC does not believe that the 

proposed rule change will have any 

impact or impose any burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

DTC has not solicited or received 

written comments relating to the 

proposed rule change. DTC will notify 

the Commission of any written 

comments it receives. 

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)(iii) of the Act 13 and Rule 

19b–4(f)(4) 14 thereunder because it 

effects a change in an existing service of 

a registered clearing agency that does 

not adversely affect the safeguarding of 

securities and funds in the custody or 

control of the clearing agency or for 

which it is responsible and does not 

significantly affect the respective rights 

or obligations of the clearing agency or 

persons using the service. At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

may summarily abrogate 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: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml) or 

• Send an e-mail to rulecomment@sec.gov. Please include File 

No. SR–DTC–2009–08 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File No. 

SR–DTC–2009–08. This file number 

should be included on the subject line 

if e-mail 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 Web site (http://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 inspection and copying 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. to 3 p.m. 

Copies of such filing also will be 

available for inspection and copying at 

DTC’s principal office and on DTC’s 

Web site at http://www.dtc.org/impNtc/ 

mor/index.html. 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 No. SR–DTC–2009– 

08 and should be submitted on or before 

May 13, 2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–9239 Filed 4–21–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59777; File No. SR–ISE– 

2009–20] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes 

April 16, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 14, 

2009, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change, as described in Items I, II, and 

III 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 ISE is proposing to amend its 

Schedule of Fees to establish fees for 

transactions in options on 3 Premium 

Products.3 The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.ise.com), at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

sections A, B and C below, of the most 

significant aspects of such statements. 


dwashington3 on PROD1PC60 with NOTICES