Document ID: SEC-2006-1130-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Depository Trust Co.
Posted Date: 2006-09-01T04:00Z

[Federal Register: September 1, 2006 (Volume 71, Number 170)]
[Notices]               
[Page 52198-52199]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01se06-95]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54367; File No. SR-DTC-2006-09]

 
Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule To Revise 
the DTC Custody Service Guide To Incorporate the Terms of Certain 
Participant Agreements

 August 25, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 19, 2006, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') a proposed rule change and on June 
23, 2006, amended the proposed rule change described in Items I, II, 
and III below, which items have been prepared primarily by DTC. DTC 
filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of 
the Act \2\ and Rule 19b-4(f)(4) thereunder \3\ so that the proposal 
was effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested parties.
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    \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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change would incorporate the terms and conditions 
of certain participant agreements related to DTC's custody service into 
the DTC Custody Service Guide.

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\
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    \4\ The Commission has modified the text of the summaries 
prepared by DTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    DTC is filing the proposed rule change to incorporate the terms and 
conditions of various participant agreements relating to DTC's custody 
service into the DTC Custody Service Guide (``Guide'').\5\ 
Specifically, DTC is incorporating the terms of three custody service 
participant agreements into the Guide: (i) The High Value Letter,\6\ 
(ii) New York Window Service Agreement,\7\ and (iii) Medallion 
Signature Guarantee/Stamp Letter.\8\ The terms proposed to be

[[Page 52199]]

incorporated by this filing into the Guide match those currently 
included in the agreements thereby affording both DTC and its 
participants the same rights and responsibilities as those afforded by 
the agreements.
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    \5\ For background information on the Custody Service Guide, 
which replaced applicable participant operating procedures relating 
to the custody service, see Securities Exchange Act Release No. 34-
44719 (August 17, 2001), 66 FR 44656 (August 24, 2001) [File No. SR-
DTC-2001-01].
    \6\ The High Value Letter defines the extent of loss that DTC 
would incur in connection with the processing of certain ``high 
value'' certificates as being limited by the extent of the DTC 
insurance coverage at the time of an incident of loss.
    \7\ The New York Window Service Agreement sets forth the terms 
and conditions for a participant's use of the New York Window 
Service, a service offered under the umbrella of DTC's custody 
service.
    \8\ The Medallion Signature Guarantee/Stamp Letter sets forth 
the terms and conditions for DTC's use of certain participant stamps 
and medallions in connection with the New York Window Service.
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    DTC believes that the proposed rule change is consistent with the 
requirements of the Act, as amended, and the rules and regulations 
thereunder because it incorporates existing terms of DTC participant 
agreements into DTC's Guide and thus facilitates the safeguarding of 
securities in DTC's custody or control.

(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.

(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 upon filing pursuant 
to Section 19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(4) \10\ 
thereunder because the proposed rule effects a change in an existing 
service of DTC that (i) does not adversely affect the safeguarding of 
securities or funds in the custody or control of DTC or for which it is 
responsible and (ii) 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 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 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-2006-09 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-2006-09. 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 Section, 100 F Street, 
NE., Washington, DC 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of DTC and on DTC's 
Web site at http://www.dtc.org. 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-2006-09 and should be submitted on or before 
September 22, 2006.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-14552 Filed 8-31-06; 8:45 am]

BILLING CODE 8010-01-P