Document ID: SEC-2011-1766-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2011-11-17T05:00Z

[Federal Register Volume 76, Number 222 (Thursday, November 17, 2011)]
[Notices]
[Pages 71394-71395]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-29670]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65721; File No. SR-DTC-2011-07]

 Self-Regulatory Organizations; The Depository Trust Company; 
Order Approving a Proposed Rule Change as Modified by Amendment Nos. 1 
and 2 Relating To a New Daily Report Subscription for Security Position 
Reports

November 10, 2011.

I. Introduction

    On August 24, 2011, The Depository Trust Company (``DTC'') filed 
with the Securities and Exchange Commission (``Commission'') proposed 
rule change File No. SR-DTC-2011-07 pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder 
\2\ and on August 31, 2011, and September 7, 2011,\3\ filed Amendment 
Nos. 1 and 2, respectively, to the proposed rule change. The proposed 
rule change enables DTC to add a new Daily Report subscription category 
to its Security Position Report (``SPR'') Service. The proposed rule 
change was published for comment in the Federal Register on September 
14, 2011.\4\ No comment letters were received. This order approves the 
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ DTC's amendment of August 31, 2011, clarified that the 
effective date of the proposed fee schedule would be the date that 
the Commission approves the proposed rule change. DTC's amendment of 
September 7, 2011, added a statement that DTC believes that the 
proposed rule change is consistent with Rule 17Ad-8, 17 CFR 
240.17Ad-8.
    \4\ Securities Exchange Act Release No. 65286 (Sept. 7, 2011), 
76 FR 56847.
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II. Description of the Proposal

    SPRs are reports produced by DTC that provide information on the 
holdings on a specified day of an issuer's security in DTC participant 
accounts. The SPR service enables an issuer, trustee, or authorized 
third party to request on a subscription basis a report that reflects 
each DTC participant's closing position recorded by DTC for a specific 
issue. Currently, DTC offers subscriptions on a weekly, monthly, 
dividend record date, and special request (i.e., ``as needed'') 
basis.\5\ With respect to special request SPRs, the entities requesting 
these reports tend to be corporate issuers seeking holder information 
with respect to their equity securities.
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    \5\ See Securities Exchange Act Release No. 52393 (Sept. 8, 
2005), 70 FR 54598 (Sept. 15, 2005) [File No. SR-DTC-2005-12].
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    Recently, some authorized users of the SPR service had been 
ordering the special request SPR on a daily basis in order to satisfy 
certain tax reporting requirements in non-U.S. markets. DTC's fees for 
special request SPRs are currently $120 per CUSIP. Because of the 
expense associated with ordering SPRs on a daily basis, the non-U.S. 
issuer/trustee community requested that DTC create a daily report 
subscription category for SPRs. DTC reviewed this request and 
determined that it would be feasible for it to offer SPR subscriptions 
on a daily basis.
    Pursuant to this proposed rule change, DTC is updating its Fee 
Schedule to reflect the new subscription type. Specifically, DTC will 
charge $9,450 per year for the first recipient of the Daily SPR for a 
security issue and $6,785 for each additional recipient of the Daily 
SPR for that security. In addition, DTC will charge $2,785 per year for 
each additional CUSIP in the same family (i.e., securities whose CUSIP 
numbers have the same first six characters) of securities, one of which 
is the subject of an existing Daily Report annual subscription. A one 
year minimum Daily Report subscription is required to qualify for this 
new subscription category.
    In addition, DTC will offer a new ``Commercial Paper Family 
Report'' that will indicate DTC's participants' closing positions as of 
a specific date in issues of commercial paper . The fee for this report 
will be $9,450 per year for the first CUSIP and $22 per report for each 
additional CUSIP in the same family (i.e., securities whose CUSIP 
numbers have the same first six characters) of securities, one of which 
is the subject of an existing Daily Report annual subscription.
    DTC is also updating its SPR Fee Schedule with certain technical 
changes that are detailed in Exhibit 5 to DTC's filing and that can be 
viewed online at http://www.dtcc.com/legal/rule_filings/dtc/2011.php.

III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to DTC. In particular, based on DTC's 
representation that the proposed fees are designed to recover the 
reasonable costs of providing the securities position listing, the 
Commission believes the proposal is consistent with DTC's obligations 
under

[[Page 71395]]

Rule 17Ad-8,\6\ which requires DTC upon request to promptly furnish a 
securities position listing to each issuer whose securities are held in 
the name of DTC or its nominee and which permits DTC to charge issuers 
requesting securities position listings a fee designed to recover the 
reasonable costs of providing the securities position listing to the 
issuer. By providing the new Daily Report and Commercial Paper Family 
Report subscription services, DTC is providing the issuer community 
with various ways to obtain needed shareholder information from DTC.
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    \6\ 17 CFR 240.17Ad-8.
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposed rule change is consistent with the requirements of the Act, in 
particular Section 17A of the Act,\7\ and the rules and regulations 
thereunder.
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    \7\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-DTC-2011-07) be and 
hereby is approved.\9\
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    \8\ 15 U.S.C. 78s(b)(2).
    \9\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition and 
capital formation. 15 U.S.C. 78c(f).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-29670 Filed 11-16-11; 8:45 am]
BILLING CODE 8011-01-P