Federal Register / Vol. 86, No. 118 / Wednesday, June 23, 2021 / Notices 32987 

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). 

5Each capitalized term not otherwise defined 

herein has its respective meaning as set forth in the 

Rules, By-Laws and Organization Certificate of DTC 

(the ‘‘Rules’’), the Canadian Link Service Guide, 

ClaimConnect Service Guide, Custody Service 

Guide, Deposits Service Guide, Distributions 

Service Guide, Redemptions Service Guide, 

Reorganizations Service Guide, Settlement Service 

Guide, and Underwriting Service Guide 

(collectively, the ‘‘Service Guides’’) and the DTC 

Operational Arrangements (Necessary for Securities 

to Become and Remain Eligible for DTC Services) 

(‘‘Operational Arrangements’’ or ‘‘OA’’), available at 

http://www.dtcc.com/legal/rules-andprocedures.aspx. 

6Stakeholders include issuers, agents (as defined 

in the OA), underwriters (as defined in the OA), 

and other parties, as context requires. 

7For example, the OA requires that, in order for 

DTC to make a same day allocation of funds, the 

agent must provide DTC with CUSIP-specific 

details for the payment before 2:50 p.m. on payable 

date, and that the details must match the amount 

of funds that are received by DTC no later than 3:00 

p.m. See OA, supra note 5, at 27. 

8For example, the Settlement Service Guide 

indicates that at 1:30 p.m. on a settlement day, DTC 

releases all pending delivery account positions and 

reverts to default recycle processing. See Settlement 

Service Guide, supra note 5, at 26. 

[FR Doc. 2021–13101 Filed 6–22–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92198; File No. SR–DTC– 

2021–009] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Provide 

Enhanced Clarity for Deadlines and 

Processing Times 

June 16, 2021. 

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 June 8, 

2021, 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. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change of DTC is 

attached hereto as Exhibit 5,5 as 

described in greater detail below. 

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 would 

amend the Service Guides and the OA 

to provide enhanced clarity around (i) 

deadlines, timeframes, and cutoffs 

established by DTC in connection with 

DTC services (‘‘DTC-established 

Stakeholder Deadlines’’), and (ii) the 

times and timeframes for DTC actions 

and processes relating to DTC services 

(‘‘DTC Processing Times’’). In particular, 

the proposed rule change would 

enhance the transparency around the 

ability of DTC to extend DTCestablished Stakeholder Deadlines, and 

around DTC Processing Times, which 

are standards, rather than deadlines, as 

further described below. 

(i) DTC-established Stakeholder 

Deadlines 

The Service Guides provide 

Participants with procedures and 

information pertaining to DTC 

settlement and asset services. The 

procedures and information include, 

among other things, descriptions of 

DTC-established Stakeholder Deadlines 

for Participant and stakeholder 6 action 

relating to DTC services. The OA is 

designed to provide Participants and 

other stakeholders with information and 

procedures related to DTC eligibility for 

securities, and to provide the 

requirements for, among other things, 

the orderly processing of securities, 

corporate actions, and distributions. The 

OA includes descriptions of DTCestablished Stakeholder Deadlines in 

connection with the requirements and 

services.7

The purpose of DTC-established 

Stakeholder Deadlines is to help DTC 

efficiently and effectively manage its 

services and systems, in order to timely 

process instructions and securities 

transactions at DTC. However, there are 

times when, due to the facts and 

circumstances of a particular situation, 

DTC determines to extend a DTCestablished Stakeholder Deadline. The 

situations can include, but are not 

limited to, a Participant operational 

issue or a change to a different deadline 

(whether DTC or external) that could 

affect the ability of one or more 

Participants to meet the DTCestablished Stakeholder Deadline. 

(ii) DTC Processing Times 

The Service Guides and the OA also 

describe DTC Processing Times in 

connection with certain services.8 The 

purpose of describing these DTC 

Processing Times is to provide 

Participants and other stakeholders with 

information about the typical timing or 

timeframe of a DTC action or process, in 

order to help Participants and other 

stakeholders to more efficiently and 

effectively use and understand DTC’s 

services and processes. For example, if 

a Service Guide states that the 

processing time for a particular service 

is typically two business days, the 

Participant will understand that it is 

unlikely that it would get same-day 

turnaround from DTC and can plan 

accordingly, for instance, by ensuring 

that it submits its transaction with 

adequate lead-time. 

(iii) Overview of Proposed Rule Change 

DTC believes that Participants and 

other stakeholders benefit from clear 

information about their rights and 

obligations relating to DTC-established 

Stakeholder Deadlines and DTC 

Processing Times so that they are able 

to plan and conduct their business and 

securities transactions more effectively. 

Recent events, such as the COVID–19 

pandemic and market volatility, have 

emphasized the need for flexibility in 

times of stress and the importance of 

transparency with respect to deadlines 

and timeframes. Accordingly, after 

reviewing the Service Guides and the 

OA, DTC is proposing to enhance the 

transparency around the DTCestablished Stakeholder Deadlines and 

DTC Processing Times that are 

described in the Service Guides and the 

OA. 

Therefore, DTC is proposing to amend 

the Service Guides and the OA to clarify 

that (i) DTC may extend any DTCestablished Stakeholder Deadline, 

including, without limitation, to (x) 

address operational or other delays that 

could reasonably affect the ability of 

DTC, a Participant, or other stakeholder 

from meeting the DTC-established 


jbell on DSKJLSW7X2PROD with NOTICES
32988 Federal Register / Vol. 86, No. 118 / Wednesday, June 23, 2021 / Notices 

9 15 U.S.C. 78q–1(b)(3)(F). 

10 Id. 

11 15 U.S.C. 78q–1(b)(3)(I). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f). 

Stakeholder Deadline or (y) allow DTC 

time operationally to exercise its 

existing rights under the Rules and 

Procedures; and (ii) the DTC Processing 

Times are standards and not deadlines; 

actual processing times may vary, based 

upon the circumstances. For additional 

transparency, DTC is proposing to 

clarify that any decision to extend a 

DTC-established Stakeholder Deadline 

in one instance does not establish any 

precedent for future situations that may 

arise. 

In addition, although the Important 

Legal Information page of the Service 

Guides and the OA already contain 

general disclaimers of liability, DTC is 

proposing to expressly state that DTC 

disclaims all liability for any losses and/ 

or expenses incurred by a Participant, 

stakeholder, or any third-party resulting 

from, relating to, or arising from (i) any 

action taken by DTC with respect to an 

extension of a DTC-established 

Stakeholder Timeframe, (ii) the 

determination of DTC to decline to take 

action with respect to a DTC-established 

Stakeholder Timeframe, and/or (iii) the 

failure of a Participant, stakeholder or 

other third-party to meet any deadline, 

timeframe, cutoff or requirement 

established by a party other than DTC. 

DTC believes that this express 

disclaimer would enhance the 

understanding of Participants and other 

stakeholders of their responsibilities in 

connection with DTC-established 

Stakeholder Deadlines and possible 

extensions, which would help them to 

more effectively assess the risks relating 

to an inability to meet a DTCestablished Stakeholder Deadline and 

conduct their business accordingly. 

(iv) Proposed Rule Change 

To effectuate the proposed changes 

described above, DTC would add the 

following paragraph near the beginning 

of each of the Service Guides and the 

OA: 

Note: DTC, as it deems appropriate, 

may extend any deadline, timeframe, or 

cutoff established by DTC, including, 

without limitation, to (i) address 

operational or other delays that could 

reasonably affect the ability of DTC, a 

Participant or other stakeholder from 

meeting the deadline, timeframe, or 

cutoff; or (ii) allow DTC time 

operationally to exercise its existing 

rights under the Rules and Procedures. 

In addition, times applicable to DTC are 

standards and not deadlines; actual 

processing times may vary, based upon 

the circumstances. Any action taken by 

DTC in connection with this paragraph 

shall not establish a precedent for any 

situation that may occur in the future 

(or otherwise bind DTC in any manner). 

DTC disclaims all liability for any losses 

and/or expenses incurred by a 

Participant, stakeholder or any thirdparty resulting from, relating to, or 

arising from (i) any action taken by DTC 

in connection with this paragraph, (ii) 

the determination of DTC to decline to 

take action pursuant to this paragraph, 

and/or (iii) the failure of a Participant, 

stakeholder or any third-party to meet 

any deadline, timeframe, cutoff or 

requirement established by a party other 

than DTC. 

2. Statutory Basis 

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

requires, in part, that the rules of a 

clearing agency be designed to promote 

the prompt and accurate clearance and 

settlement of securities transactions.9

The proposed rule change would 

amend the Service Guides and the OA 

to clarify that DTC may extend any 

DTC-established Stakeholder Deadline, 

including, without limitation, to (i) 

address operational or other delays that 

could reasonably affect the ability of 

DTC, a Participant or other stakeholder 

from meeting the DTC-established 

Stakeholder Deadline; or (ii) allow DTC 

time operationally to exercise its 

existing rights under the Rules and 

Procedures. The proposed rule change 

would also clarify that the DTC 

Processing Times set forth in the Service 

Guides and the OA are standards and 

not deadlines, and that they may vary 

based upon the particular 

circumstances. The proposed rule 

change would also (i) clarify that any 

decision by DTC to extend a DTCestablished Stakeholder Deadline in one 

case does not establish any precedent 

for future situations that may arise, and 

(ii) emphasize that DTC disclaims all 

liability for any losses or expenses 

incurred by a Participant, stakeholder or 

any third party relating to, or arising 

from, the above. 

Taken together, the proposed 

amendments to the Service Guides and 

the OA would enhance Participants’ and 

stakeholders’ understanding of their 

rights and obligations relating to DTCestablished Stakeholder Deadlines and 

DTC Processing Times. By providing 

this enhanced clarity and transparency, 

the proposed rule change would help 

Participants and other stakeholders to 

appropriately plan and to conduct their 

business and securities transactions 

through DTC more effectively, thereby 

promoting the prompt and accurate 

clearance and settlement of securities 

transactions, consistent with Section 

17A(b)(3)(F) of the Act.10

(B) Clearing Agency’s Statement on 

Burden on Competition 

DTC does not believe the proposed 

rule changes described above would 

impact competition. Rather, DTC 

believes that the proposed rule changes 

would simply provide enhanced clarity 

around the rights and obligations of 

Participants and other stakeholders with 

respect to DTC-established Stakeholder 

Deadlines and DTC Processing Times, 

and would help them to appropriately 

plan and to conduct their business and 

securities transactions through DTC 

more effectively. As such, DTC believes 

the proposed rule changes would not 

have any impact on competition.11

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. DTC will notify 

the Commission of any written 

comments received by DTC. 

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) 12 of the Act and paragraph 

(f) 13 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: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

DTC–2021–009 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 118 / Wednesday, June 23, 2021 / Notices 32989 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 91714 

(April 29, 2021), 86 FR 24119. 

4 15 U.S.C. 78s(b)(2). 

5 Id. 

6 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–DTC–2021–009. 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 (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 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 

10:00 a.m. and 3:00 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 

(http://dtcc.com/legal/sec-rulefilings.aspx). All comments received 

will be posted without change. Persons 

submitting comments are cautioned that 

we do not redact or edit personal 

identifying information from comment 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–DTC– 

2021–009 and should be submitted on 

or before July 14, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–13103 Filed 6–22–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92192; File No. SR–BOX– 

2021–07] 

Self-Regulatory Organizations; BOX 

Exchange LLC; Notice of Designation 

of a Longer Period for Commission 

Action on a Proposed Rule Change To 

Adopt BOX Rule 7670 To Establish a 

Virtual Trading Floor on BOX 

June 16, 2021. 

On April 16, 2021, BOX Exchange 

LLC (‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

establish a virtual trading floor on the 

Exchange. The proposed rule change 

was published for comment in the 

Federal Register on May 5, 2021.3

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding, or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is June 19, 2021. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds it appropriate to 

designate a longer period within which 

to take action on the proposed rule 

change so that it has sufficient time to 

consider the proposed rule change. 

Accordingly, pursuant to Section 

19(b)(2) of the Act,5 the Commission 

designates August 3, 2021, as the date 

by which the Commission shall either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–BOX–2021–07). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–13099 Filed 6–22–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92200; File No. SR–Phlx– 

2021–36] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the 

Exchange’s Pricing Schedule at 

Options 7, Section 5 

June 16, 2021. 

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 June 11, 

2021, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the 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 proposes to amend the 

Exchange’s Pricing Schedule at Options 

7, Section 5 to adopt an incentive 

program for Lead Market Makers 

(‘‘LMMs’’) and Market Makers in 

Nasdaq 100 Micro Index (‘‘XND’’) 

options. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, 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 

Exchange 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 


jbell on DSKJLSW7X2PROD with NOTICES