Document ID: SEC-2009-0145-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Filing and Immediate Effectiveness of Proposed Rule Relating to the Deposits Service Guide: Depository Trust Co
Posted Date: 2009-02-02T05:00Z

[Federal Register: February 2, 2009 (Volume 74, Number 20)]
[Notices]               
[Page 5876-5877]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02fe09-86]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59286; File No. SR-DTC-2009-01]

 
Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Relating 
to the Deposits Service Guide

January 23, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 5, 2009, 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. 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 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 proposed rule change will amend DTC's Deposits 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 such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Under this rule change, DTC will amend its Deposits Service Guide 
by eliminating the Legal Guidance System (``LGS'') and by making other 
minor clarifications.
    LGS is a Participant Terminal Service function that enables DTC 
participants to obtain comprehensive information on state and local 
regulations that must be followed when making a legal deposit. This 
function has been superseded by the Securities Transfer Association 
(``STA'') Guidelines that are consistent with DTC's processing and is 
now obsolete. All DTC participants have access to the STA guidelines 
through the public STA Web site (http://www.stai.org).
    Additionally, DTC is making some minor corrections and 
clarifications to the Deposits Service Guide. Specifically, an 
inadvertent reference to ``restricted'' deposit in the legal deposits 
section of the Deposit Service Guide is removed; clarifying language to 
the time it takes for appropriate payments and exchange of shares to be 
made through DTC's settlement area is being added,\4\ and detailed 
narrative describing custody services is being removed from the 
Deposits Service Guide since such narrative is contained in the Custody 
Service Guide.
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    \4\ The language explains that ``if the effective date of the 
corporate action is three years or less, allocation occurs one day 
after the deposit. If the effective date is over three years, 
allocation of new stock entitlement will not occur until DTC has 
received the security from the agent. Allocations for cash will not 
occur on any reorg deposit until DTC receives the funds from the 
agent, regardless of the effective date of the corporate action.''
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    DTC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder applicable to DTC because it will facilitate the prompt and 
accurate clearance and settlement of securities transactions by 
enhancing the utilization of DTC's existing services.

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

    DTC has not solicited or received written comments relating to the 
proposed rule change. DTC will notify the Commission of any written 
comments it receives.

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\ thereunder 
because it effects a change in an existing service of a registered 
clearing agency that does not adversely affect the safeguarding of 
securities and funds in the custody or control of the clearing agency 
or for which it is responsible and does not significantly affect the 
respective rights or obligations of the clearing agency or persons 
using the service. At any time within 60 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
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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-comment@sec.gov. Please include 
File No. SR-DTC-2009-01 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 No. SR-DTC-2009-01. 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

[[Page 5877]]

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. to 3 p.m. 
Copies of such filing also will be available for inspection and copying 
at DTC's principal office and on DTC's Web site at <http://www.dtc.org/
impNtc/mor/index.html>. 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 No. DTC-
2009-01 and should be submitted on or before February 23, 2009.

    For the Commission by the Division of Trading and Markets, 
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. E9-2162 Filed 1-30-09; 8:45 am]

BILLING CODE 8011-01-P