Document ID: SEC-2007-1026-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Depository Trust Co.
Posted Date: 2007-08-01T04:00Z

[Federal Register: August 1, 2007 (Volume 72, Number 147)]
[Notices]               
[Page 42160-42161]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01au07-125]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56126; File No. SR-DTC-2007-08]

 
Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Use of the National Settlement Service

 July 24, 2007.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 1, 2007, 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. The Commission is publishing this notice to

[[Page 42161]]

solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change permits DTC to use the Federal Reserve 
Bank's National Settlement Service (``NSS'') for the settlement of 
credit balances.

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.\2\
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    \2\ The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In 2003, DTC mandated NSS as the vehicle for all DTC Settling Banks 
to satisfy their end of day net debits.\3\ In an effort to increase the 
efficiencies afforded by NSS, DTC is modifying its rules and procedures 
to permit DTC's use of NSS to also distribute net credits.\4\ Utilizing 
NSS as the payment mechanism for net credits will eliminate the need 
for DTC to initiate wire payments for settlement monies owed by DTC. 
However, should NSS not be available for any reason, DTC will retain 
the capability to satisfy its settlement obligations using wire 
transfer.
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    \3\ Securities Exchange Act Release No. 48089 (June 25, 2003), 
68 FR 40314 (July 7, 2003) (File No. SR-DTC-2002-06).
    \4\ The National Securities Clearing Corporation (``NSCC'') has 
submitted a similar proposed rule change (File No. SR-NSCC-2007-02) 
providing for the use of NSS for the distribution of net-net 
credits.
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    The proposed rule change is consistent with the requirements of 
section 17A of the Act and the rules and regulations thereunder because 
it will not affect the safeguarding of funds or securities in DTC's 
custody and control or for which it is responsible.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC does not believe that the proposed rule change would 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

    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 rule change has become effective pursuant to section 
19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(4) \6\ promulgated 
thereunder because the proposal effects a change in an existing service 
of DTC that (A) Does not adversely affect the safeguarding of 
securities or funds in the custody or control of DTC or for which it is 
responsible and (B) does not significantly affect the respective rights 
or obligations of DTC or persons using the service. At any time within 
sixty days of the filing of the proposed rule change, the Commission 
could have summarily abrogated such rule change if it appeared to the 
Commission that such action was necessary or appropriate in the public 
interest, for the protection of investors, or otherwise in furtherance 
of the purposes of the Act.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(4).
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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 rule-comments@sec.gov. Please include 

File Number SR-DTC-2007-08 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-DTC-2007-08. 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. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of DTC. 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-2007-08 and should be 
submitted on or before August 22, 2007.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-14830 Filed 7-31-07; 8:45 am]

BILLING CODE 8010-01-P