Document ID: SEC-2010-0345-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2010-03-08T05:00Z

[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Notices]
[Pages 10539-10541]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-4763]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61620; File No. SR-DTC-2010-04]

Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify Its Registered Transfer Agent Notification Methods for 
Assumption or Termination of Services

March 1, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 3, 2010, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change as 
described in Items I, II, and

[[Page 10540]]

III below, which Items have been prepared primarily by DTC. DTC filed 
the proposal pursuant to Section 19(b)(3)(A)(iii) of the Act \2\ and 
Rule 19b-4(f)(4) \3\ thereunder 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 persons.
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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 purpose of the proposed rule change is to modify the registered 
transfer agent notification methods for assumption or termination of 
services.

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.\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

    Rule 17Ad-16 under the Act is designed to help reduce delays in 
securities transfers. The rule requires registered transfer agents to 
notify the appropriate qualified registered securities depository when 
the transfer agent assumes or terminates services on behalf of an 
issuer or when the transfer agent changes its name or address.
    In 1995, DTC filed a proposed rule change with the Commission in 
which DTC requested designation as the appropriate qualified registered 
securities depository for purposes of Rule 17Ad-16 and also sought 
approval of its procedures to receive and transmit such notices. The 
Commission approved the rule filing and ordered that DTC be designated 
as the appropriate qualified registered securities depository.\5\ 
Existing DTC Procedures allow transfer agents to provide their notices 
to DTC by e-mail to DTC's Transfer Agent Services Mailbox, by fax, or 
by mail.
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    \5\ Securities Exchange Release Act No. 35378 (February 15, 
1995), 60 FR 9875 (February 22, 1995) (File No. SR-DTC-95-02).
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    To increase certainty regarding where transfer agents should direct 
these notices to DTC, as well as to reduce costs and administrative 
burdens, DTC proposes modifying its Procedures so that registered 
transfer agents would only notify DTC by sending e-mails to DTC's 
Transfer Agent Services Mailbox. The proposed changes to DTC's 
Procedures can be found in Exhibit 5 to proposed rule change SR-DTC-
2010-04 at http://www.dtcc.com/downloads/legal/rule_filings/2010/dtc/2010-04.pdf
    DTC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act \6\ and the rules and 
regulations thereunder applicable to DTC because the proposed rule 
change promotes efficiencies in the clearance and settlement of 
securities transactions by modifying DTC's Procedures to expedite the 
notification process for transfer agent changes and decrease transfer 
delays.
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    \6\ 15 U.S.C. 78q-1.
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(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 pursuant to Section 
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(4) \8\ thereunder 
because the proposed rule change effects a change in an existing 
service of a registered clearing agency that: (i) Does not adversely 
affect the safeguarding of securities or funds in the custody or 
control of the clearing agency or for which it is responsible and (ii) 
does not significantly affect the respective rights or obligations of 
the clearing agency or persons using the service. At any time within 
sixty days of the filing of such 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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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 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

     Electronic comments may be submitted by using 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 No. SR-DTC-2010-04 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-DTC-2010-04. 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 Web site viewing and 
printing in the Commission's Public Reference Section, 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 filings also will be available for 
inspection and copying at the principal office of DTC and on DTC's Web 
site at http://www.dtcc.com/legal/rule_filings/dtc/2010.php.
    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

[[Page 10541]]

submissions should refer to file number SR-DTC-2010-04 and should be 
submitted on or before March 29, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-4763 Filed 3-5-10; 8:45 am]
BILLING CODE 8011-01-P