51444 Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 

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)(6). 

5Each capitalized term not otherwise defined 

herein has its respective meaning as set forth in the 

Rules, By-Laws and Organization Certificate of The 

Depository Trust Company (the ‘‘Rules’’), available 

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

6 ‘‘Customer Property Segregation Rules’’ means 

the rules and regulations of the Commodity Futures 

Trading Commission (‘‘CFTC’’), relating to the 

deposit of customer property (including money, 

securities and other property) held by derivatives 

clearing organizations (‘‘DCOs’’) or futures 

commission merchants (‘‘FCMs’’) for customers that 

trade commodities, options, swaps and other 

products. 7 U.S.C. 6d; 17 CFR 1.20–1.30, 22, 30. 

Under the proposed rule change, only Deposited 

Securities credited to an appropriately designated 

Account may constitute ‘‘Customer Property’’ for 

purposes of such Customer Property Segregation 

Rules; DTC does not, and will not under the 

proposed rule change, segregate money. 

7See 7 U.S.C. 6d(a)(2); 7 U.S.C. 6d(f); 17 CFR 

1.20(d); 1.20(g); 1.26; 22.5; 30.7. 

8 DTC holds Eligible Securities collectively on 

behalf of Participants and reflects the transfer of 

interests in those Eligible Securities among 

Participants by computerized book-entry. Eligible 

Securities Deposited with DTC for book-entry 

transfer services are registered in the name of its 

nominee, Cede & Co. (‘‘Cede’’), a New York 

partnership. When the Eligible Securities are 

registered in the name of Cede, DTC acquires legal 

title to the Eligible Securities and, when DTC 

credits interests in these Eligible Securities to the 

Securities Accounts of Participants, those 

Participants acquire a beneficial interest in the 

Eligible Securities and a Security Entitlement with 

respect to those Eligible Securities is credited to 

their Accounts. A Security Entitlement is both a 

package of personal rights against the securities 

intermediary [in this case, DTC] and an interest in 

the property held by the securities intermediary. 

NYUCC § 8–102(14)(i); NYUCC § 8–102(17) and 

OFF. CMT. 17. A security entitlement is not, 

however, a specific property interest in any 

[security] held by the securities intermediary or by 

the clearing corporation through which the 

securities intermediary holds the [security]. NYUCC 

§ 8–102(17) and OFF. CMT. 17. Thus, a Participant 

does not have a right to any particular security; 

each Participant has a proportionate interest in the 

fungible total inventory of the issue held by DTC. 

Participants, in many cases, are themselves 

securities intermediaries, maintaining securities 

accounts for the benefit of their customers, crediting 

a portion of the amount of any issue of a Security 

held in their Account(s) to one or more customers, 

as securities entitlements of their customers against 

them. That is, their customers are entitlement 

holders, holding the rights and property interest 

represented by the amount of the security credited 

to their account(s) vis a vis the Participant. Some 

customers of a Participant may also be securities 

intermediaries, holding on behalf of, and 

maintaining securities accounts for, their own 

customers, and so forth. DTC does not know 

whether a Participant is holding interest in the 

Securities for itself or on behalf of its customers, as 

their securities intermediary. 

This tiered system of intermediaries holding 

interests in securities for their respective customers 

is generally described as the ‘‘indirect holding 

POSTAL SERVICE 

Product Change—Priority Mail Express 

and Priority Mail Negotiated Service 

Agreement 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 

SUMMARY: The Postal Service gives 

notice of filing a request with the Postal 

Regulatory Commission to add a 

domestic shipping services contract to 

the list of Negotiated Service 

Agreements in the Mail Classification 

Schedule’s Competitive Products List. 

DATES: Date of notice required under 39 

U.S.C. 3642(d)(1): November 6, 2017. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth A. Reed, 202–268–3179. 

SUPPLEMENTARY INFORMATION: The 

United States Postal Service® hereby 

gives notice that, pursuant to 39 U.S.C. 

3642 and 3632(b)(3), on October 31, 

2017, it filed with the Postal Regulatory 

Commission a USPS Request to Add 

Priority Mail Express & Priority Mail 

Contract 52 to Competitive Product List. 

Documents are available at 

www.prc.gov, Docket Nos. MC2018–18, 

CP2018–40. 

Elizabeth A. Reed, 

Attorney, Corporate and Postal Business Law. 

[FR Doc. 2017–24039 Filed 11–3–17; 8:45 am] 

BILLING CODE 7710–12–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81990; File No. SR–DTC– 

2017–020] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Establish a 

Special Segregation Account for a 

Participant or Pledgee That Is a 

Derivatives Clearing Organization or 

Futures Commission Merchant 

October 31, 2017. 

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 October 

20, 2017, 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 DTC. DTC filed the proposed rule 

change pursuant to section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(6) 

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 proposal would add new Rule 37 

(Segregated Accounts for Customer 

Property) to provide that a Participant 5

or Pledgee may establish a specifically 

designated Account to which Eligible 

Securities may be credited that the 

Participant or Pledgee wishes to 

segregate as the property of its 

customers that trade commodities, 

options, swaps, and other products 

(‘‘Customer Property’’) subject to the 

Customer Property Segregation Rules.6

Based on this segregation structure and 

the representations and warranties made 

by the Participant or Pledgee under the 

proposed Rule, DTC would, upon the 

request of the Participant or Pledgee, 

provide an acknowledgment of the 

segregation of such Customer Property,7

as further described below. 

II. Clearing Agency’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) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

The proposal would add new Rule 37 

(Segregated Accounts for Customer 

Property) to provide that a Participant or 

Pledgee may establish a specifically 

designated Account to which Eligible 

Securities may be credited that the 

Participant or Pledgee wishes to 

segregate as Customer Property subject 

to the Customer Property Segregation 

Rules. Based on this segregation 

structure and the representations and 

warranties made by the Participant or 

Pledgee under the proposed Rule, DTC 

would, upon the request of the 

Participant or Pledgee, provide an 

acknowledgment of the segregation of 

such Customer Property, as further 

described below. 

A. Background 

a. DTC Omnibus Account Structure 

DTC maintains omnibus Accounts for 

its Participants and Pledgees.8 That is, it 


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