Federal Register / Vol. 74, No. 112 / Friday, June 12, 2009 / Notices 28085 

16 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 Commission has modified the text of the 

summaries prepared by DTC. 

5For a description of Profile, see Securities 

Exchange Act Release No. 41862 (September 10, 

1999), 64 FR 51162 (September 21, 1999) (order 

approving implementation of Profile). 

6The Screen Indemnity protects, among others, 

the party delivering the share position from liability 

in connection with the transaction arising from a 

User’s breach of the representation of authority and 

consent to initiate the transaction. For a broader 

description of the Screen Indemnity, see Securities 

Exchange Act Release No. 42704 (April 19, 2000), 

65 FR 24242 (April 25, 2000) (order approving 

modification of Profile to incorporate use of the 

Screen Indemnity). 

7Securities Exchange Act Release No. 42422 

(September 14, 2005), 70 FR 55196 (September 20, 

2005). 

8Under PSP, each user of Profile that agrees to 

the Screen Indemnity must procure a surety bond 

to back its obligations under such indemnity 

(‘‘Surety Bond’’). Participation in PSP requires the 

payment of an annual premium of $3,150 to a 

surety provider and a DTC administration fee of 

$250. The current PSP surety provider provides for 

a coverage limit of $3 million per transaction with 

an annual aggregate limit of $6 million. The 

Commission approved a rule filing establishing an 

alternate to PSP in June 2008 (‘‘PSP II’’). Securities 

Exchange Act Release No. 58042 (June 26, 2008), 73 

FR 39067 (July 8, 2008). 

9 15 U.S.C. 78q–1. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13809 Filed 6–11–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60036; File No. SR–DTC– 

2009–09] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Establish an 

Alternate Choice in DTC’s Profile 

Modification System Indemnity 

Insurance Program 

June 3, 2009. 

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

Securities Exchange Act of 1934 

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

May 11, 2009, The Depository Trust 

Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I, II, and III 

below, which items have been prepared 

primarily by DTC. DTC filed the 

proposal pursuant to Section 

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

19b–4(f)(4) 3 thereunder so that the 

proposal was effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 

comments on the rule change from 

interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The purpose of the rule change is to 

establish an alternate choice in DTC’s 

Profile Modification System Indemnity 

Insurance Program. 

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 these statements.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

DTC’s Profile Modification System 

(‘‘Profile’’) is an electronic 

communication hub between transfer 

agents that participate in the Direct 

Registration System (‘‘DRS’’), which 

transfer agents are Limited Participants 

(‘‘Limited Participants’’) of DTC, and 

broker-dealers that participate in DRS, 

which broker-dealers are DTC 

Participants (‘‘Participants;’’ 

Participants together with Limited 

Participants are collectively referred to 

as ‘‘Users’’).5 Profile allows Participants 

to submit an investor’s instruction to 

move a share position from the 

investor’s DRS account at the transfer 

agent to the Participant’s account at 

DTC (‘‘Electronic Participant 

Instruction’’). Profile also allows 

Limited Participants to submit an 

investor’s instruction to move its share 

position from the Participant’s account 

at DTC to the DRS account at the 

transfer agent (‘‘Electronic Limited 

Participant Instruction;’’ Electronic 

Limited Participant Instruction and 

Electronic Participant Instruction are 

collectively referred to as ‘‘Electronic 

Instructions’’). A User submitting an 

Electronic Instruction through Profile is 

required to agree to a Participant 

Terminal System (‘‘PTS’’) screen 

indemnity (‘‘Screen Indemnity’’).6

On August 22, 2005, the Commission 

approved a rule filing establishing the 

DTC Profile Indemnity Insurance 

Program (‘‘PIP’’),7 on as an alternative to 

the existing DTC Profile Surety Program 

(‘‘PSP’’).8 Profile users who agree to the 

Screen Indemnity have the option to 

procure Profile Indemnity Insurance 

(‘‘Insurance’’) relating to a particular 

transaction according to the value of 

each individual securities transaction. 

The Insurance option provides a 

coverage limit of $25 million per 

transaction with an annual aggregate 

limit of $100 million. In addition to any 

pass-through fee from the insurer, DTC 

charges users participating in PIP an 

annual administration fee of $250 and a 

$27.50 per transaction fee. 

DTC is proposing to provide Profile 

users an option to procure insurance 

with a different coverage limit than that 

currently offered (‘‘PIP II’’). The 

coverage limit for PIP II will be $7.5 

million per transaction with an annual 

aggregate limit of $15 million. PIP II 

users will be required to pay an annual 

premium of $6,000 to an insurance 

provider and a DTC administration fee 

of $250. The intent of this program is to 

provide an alternative insurance option 

for Profile users with high volume and 

moderate value and also for contingency 

planning if a provider is no longer able 

to provide insurance or surety. Users 

will be permitted to participate with 

each provider but will continue to be 

required to select only one provider per 

Profile transaction. 

The insurance company issuing the 

insurance policy will either be a 

company selected by DTC as the 

administrator of such insurance 

program, or an insurance company 

selected by the User. If a User elects to 

use an insurance company other than 

the one DTC has selected, the insurance 

company selected must issue its 

insurance policy in a form consistent 

with the policy issued by the insurance 

company selected by DTC. 

The proposed rule change is 

consistent with Section 17A of the Act,9

as amended, because it modifies an 

existing service by establishing an 

alternate choice for Profile insurance 

users to provide a broader range of 

options to safeguard transactions 

processed within Profile. 

(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. 

28086 Federal Register / Vol. 74, No. 112 / Friday, June 12, 2009 / Notices 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 17 CFR 240.19b–4(f)(4). 

12 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(3)(A)(iii). 

5 17 CFR 240.19b–4(f)(6). 

(C) Self-Regulatory Organization’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 yet 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 proposed rule change 

has become effective upon filing 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 10 and Rule 19b–4(f)(4) 11

thereunder because the proposed rule 

change effects a change in an existing 

service of a registered clearing agency 

that: (i) Does not adversely affect the 

safeguarding of securities or funds in 

the custody or control of the clearing 

agency or for which it is responsible and 

(ii) does not significantly affect the 

respective rights or obligations of the 

clearing agency or persons using the 

service. At any time within sixty 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 rulecomments@sec.gov. Please include File 

Number SR–DTC–2009–09 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 

Number SR–DTC–2009–09. 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. and 3 p.m. 

Copies of such filings also will be 

available for inspection and copying at 

the principal office of DTC and on 

DTC’s Web site at http://www.dtcc.com/ 

legal/rule_filings/dtc/2009-09.pdf. 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–DTC–2009–09 and should 

be submitted on or before July 6, 2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13808 Filed 6–11–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59997; File Nos. SR–NYSE– 

2009–50 and SR–NYSEAmex–2009–20] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC and NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Changes Relating to Comparison 

of Executed Transactions 

May 28, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on May 19, 

2009, New York Stock Exchange LLC 

(‘‘NYSE’’) and NYSE Amex LLC 

(‘‘NYSE-Amex’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

changes as described in Items I and II 

below, which Items have been prepared 

primarily by NYSE and NYSE-Amex 

(collectively, ‘‘Exchanges’’). The 

Exchanges filed the proposed rule 

changes pursuant to Section 

19(b)(3)(A)(iii) of the Act 4 and Rule 

19b–4(f)(6) thereunder 5 so that the 

proposals were effective upon filing 

with the Commission. The Commission 

is publishing this notice to solicit 

comments on the proposed rule changes 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchanges propose to amend 

NYSE Rule 134 (Differences and 

Omissions-Cleared Transactions) and 

NYSE-Amex Rule 134 (NYSE Amex 

Equities. Differences and OmissionsCleared Transactions) to provide for 

certain technical procedures that the 

Exchanges use in the comparison stage 

of trade settlement. 

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 

Exchanges included statements 

concerning the purpose of, and basis for, 

the proposed rule changes and 

discussed any comments they received 

on the proposed rule changes. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchanges have prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

parts of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

NYSE operates the On-Line 

Comparison System (‘‘OCS’’), which 

provides the first step for the settlement 

of securities transactions on the 

Exchanges. OCS conducts comparison 

processing, which includes matching 

initial trade submissions, correction 

processing, omnibus processing, and 

questioned trade (‘‘QT’’) resolution. 

OCS interacts with the Exchanges’ 

members and member organizations in 

their roles as clearing firms, brokers, 

and Designated Market Making Units 

(‘‘DMM Units’’) and is linked internally 

to the Exchanges’ trading systems and