Document ID: SEC-2020-0134-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The Depository Trust Co.
Posted Date: 2020-01-31T05:00Z

[Federal Register Volume 85, Number 21 (Friday, January 31, 2020)]
[Notices]
[Pages 5728-5730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01786]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88050; File No. SR-DTC-2020-002]

Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Decommission the Web Inquiry Notification System and Make Other 
Related and Technical Changes

January 27, 2020.
    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 January 22, 2020, 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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change is to (i) decommission DTC's Web Inquiry 
Notification System (``WINS''); (ii) update the DTC Deposits Service 
Guide and the DTC Corporate Actions Distributions Service Guide 
(collectively, ``Guides'') \5\ to direct DTC participants 
(``Participants'') to submit inquiries via The Depository Trust & 
Clearing Corporation (``DTCC'') \6\ Client Center,\7\ instead of using 
WINS; and (iii) make other technical, grammatical, and drafting updates 
to the Guides.
---------------------------------------------------------------------------

    \5\ Available at http://www.dtcc.com/legal/rules-and-procedures.
    \6\ DTCC is the parent company of DTC and its affiliated 
clearing agencies, National Securities Clearing Corporation 
(``NSCC'') and Fixed Income Clearing Corporation (``FICC''). DTCC 
operates on a shared services model for DTC, NSCC, and FICC. Most 
corporate functions are established and managed on an enterprise-
wide basis pursuant to intercompany agreements under which it is 
generally DTCC that provides a relevant service to DTC, NSCC, or 
FICC.
    \7\ Available at http://www.dtcc.com/client-center.
---------------------------------------------------------------------------

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

[[Page 5729]]

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 is to (i) decommission WINS; (ii) update 
the Guides to direct Participants to submit inquiries via the DTCC 
Client Center, instead of using WINS; and (iii) make other technical, 
grammatical, and drafting updates to the Guides.
    WINS was established in 2009 to replace, in part, DTC's Participant 
Inquiry Notification System (``PINS'').\8\ At the time, WINS was a new, 
browser-based inquiry management system, through which Participants 
submitted inquiries about their records in various DTC services, 
including dividends, corporate reorganizations, custody services, and 
securities processing. WINS offered many improvements over PINS: A more 
streamlined process for the submission and monitoring of inquiries and 
requests, easier navigation and data entry, and quicker response times. 
WINS also provided real-time status updates via email, where the emails 
notified Participants that their inquiry was received, updated, or 
closed. Nevertheless, WINS has several drawbacks. For example, it has a 
rigid user interface that limits the types of inquiries that can be 
made. Additionally, system changes to WINS--a proprietary, legacy 
system--are difficult, which makes keeping pace with business 
improvements challenging.
---------------------------------------------------------------------------

    \8\ Securities Exchange Act Release No. 60096 (June 11, 2009), 
74 FR 28745 (June 17, 2009) (SR-DTC-2009-10).
---------------------------------------------------------------------------

    To address these issues and further improve the inquiry process, 
DTC proposes to decommission WINS and, instead, direct Participants to 
the Client Center to submit inquiries. Through the Client Center, which 
is available via the DTCC homepage, Participants will have various 
options for submitting inquires, including a general customer support 
line, dedicated business support lines, and the Participants' MyDTCC 
portal account.\9\
---------------------------------------------------------------------------

    \9\ MyDTCC is a secure website portal of DTCC that provides a 
single point-of-entry for DTCC clients, including Participants, when 
obtaining access to services that require client authentication.
---------------------------------------------------------------------------

    The inquiry submission options available through the Client Center 
offer improvements over WINS. For example, if a Participant chooses to 
submit an inquiry through a Client Center support line, the Participant 
will receive a live representative who will help the Participant create 
the inquiry request. That request, and any associated responses, then 
will be immediately accessible to the Participant through its MyDTCC 
account. Alternatively, if a Participant submits an inquiry directly 
through its MyDTCC account, the Participant will experience a modern 
user interface with enhanced functionality, including robust client 
support capabilities. These improved support functionalities are 
designed to better enable Participants to submit and manage inquires 
and support requests on various issues.
    To effectuate this proposed rule change, the WINS Function Guide 
will be deleted and references to WINS in the Guides will be updated to 
direct Participants to submit inquiries through the Client Center. 
Relatedly, a technical update will be made to the Deposits Service 
Guide to delete a reference to a specific Customer Help Center support 
line and, instead, direct Participants to the Client Center, which will 
provide the most current support lines. Finally, the proposed rule 
change will make other technical, grammatical, and drafting updates to 
the Guides to improve clarity and readability.
Effective Date
    By February 29, 2020, Participants will no longer be permitted to 
submit new inquiries via WINS. Nevertheless, all inquiries previously 
submitted via WINS will remain accessible to Participants in WINS until 
the inquiries are closed. DTC plans to close all open WINS inquiries by 
March 31, 2020, at which time WINS will be decommissioned. Participants 
will be notified of specific dates, in advance, via Important Notice.
2. Statutory Basis
    Section 17A(b)(3)(F) of the Act,\10\ requires that the rules of the 
clearing agency be designed, inter alia, to promote the prompt and 
accurate clearance and settlement of securities transactions. DTC 
believes that the proposed rule change is consistent with this 
provision of the Act.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    As described above, the proposal would decommission the outdated, 
legacy system WINS, through which Participants submit service inquires, 
including inquiries regarding their clearance and settlement activity 
at DTC. Instead, the Guides would be updated to direct Participants to 
submit inquiries and contact customer support through the Client 
Center, which offers various inquiry submission options (e.g., customer 
support lines and the MyDTCC account portal), with improved 
functionality over WINS. Additionally, as noted above, the proposal 
will make various technical, grammatical, and drafting updates to the 
Guides.
    By removing WINS and directing inquiries through the options 
available on the Client Center, the proposal will improve the means by 
which Participants submit service inquires and, in turn, receive 
responses, including inquiries and responses regarding clearance and 
settlement activity. Similarly, by deleting a reference to a specific 
Customer Help Center support line, in favor of support lines available 
in the Client Center, and by making technical, grammatical, and 
drafting updates to the Guides, the Guides will be clearer, more 
readable, and provide the most up-to-date customer support information 
to help manage Participant questions about their clearance and 
settlement activity.
    Therefore, for the above reasons, DTC believes that the proposed 
rule change helps promote the prompt and accurate clearance and 
settlement of securities transactions, consistent with Section 
17(A)(b)(3)(F) of the Act.\11\
---------------------------------------------------------------------------

    \11\ Id.
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    DTC does not believe that the proposed rule change will have any 
impact on competition because neither the decommissioning of WINS nor 
the other related, technical, grammatical, and drafting updates to the 
Guides, as described above, will change the ability of Participants to 
submit support inquiries or contact customer support, as Participants 
will be directed to do both through the Client Center.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants, or Others

    Written comments relating to this proposed rule change have not 
been solicited or received. DTC will notify the Commission of any 
written comments received by DTC.

[[Page 5730]]

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) of the Act \12\ and paragraph (f) of Rule 19b-4 
thereunder.\13\ 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-2020-002 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-2020-002. 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-rule-filings.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-2020-002 and should be submitted on 
or before February 21, 2020.
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-01786 Filed 1-30-20; 8:45 am]
 BILLING CODE 8011-01-P