Document ID: SEC-2009-1387-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2009-10-01T04:00Z

[Federal Register: October 1, 2009 (Volume 74, Number 189)]
[Notices]               
[Page 50852-50853]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01oc09-125]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60704; File No. SR-DTC-2009-15]

 
Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Related to the Payment Order System for Premium Payment Orders

September 22, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 28, 2009, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change described 
in Items I, II, and 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 rule change from 
interested parties.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change establishes technical changes which are 
non-substantive in nature and are to support the industry wide Options 
Symbology Initiative.

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\
---------------------------------------------------------------------------

    \4\ The Commission has modified the text of the summaries 
prepared by DTC.
---------------------------------------------------------------------------

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

    Today, many organizations that support trading in listed options 
are restricted in their ability to identify and process exchange listed 
option contracts. These organizations typically use a three to five 
alpha character representation. The first one to three characters 
identify the option root symbol and the remaining two alpha characters 
identify the expiration month, call/put indicator, and strike price.
    In an effort to standardize option symbols and overhaul the 
existing method of identifying exchange-listed options contracts, The 
Options Clearing Corporation (``OCC'') is spearheading the industry-
wide adoption of the Options Symbology Initiative (``OSI''). The OSI 
supports the elimination of alpha codes that are currently used to 
denote expiration month, call/put code, and strike price.\5\ As a 
result of the OSI, DTC has to modify its record layouts for its Payment 
Order system \6\ in order to comply with the symbology defined by the 
OSI. This includes the expansion of field sizes and the addition of new 
fields. These changes will increase efficiency and improve the 
mechanism for Participants to perform under the OSI initiative. The 
proposed modifications in reference to Participant input and output 
formats will include the expansion of field sizes for OCC related 
fields that currently exist in the ``comments field'' and the addition 
of new fields to DTC's PBS screens MQ/NDM/CF2 record layouts and ISO 
message formats.\7\
---------------------------------------------------------------------------

    \5\ For more information about The Options Clearing 
Corporation's Options Symbology Initiative see the most recent plan 
at http://www.theocc.com/initiatives/symbology/implementation_
plan.jsp.
    \6\ DTC's Payment Order service provides participants with a 
method for settling amounts of money related to securities 
transactions that are effected separately through DTC earlier on the 
same day or on a previous day. Payment orders can be used to collect 
option contract premiums and mark-to-market open contracts such as 
stock loans.
    \7\ For more information regarding the record layout changes, 
see DTC Important Notice B5422 which is attached to Filing 
No. SR-DTC-2009-15 as Exhibit 2.
---------------------------------------------------------------------------

    OCC has requested that DTC implement these changes on October 30, 
2009, so that OCC members can begin to migrate to the new formats. OCC 
has mandated that OCC members be ready to use the new formats by 
February 12, 2010.
    The proposed rule change is consistent with the requirements of 
Section 17A of the Act and the rules and regulations thereunder. It 
will promote the prompt and accurate clearance and settlement of 
securities transactions because the modification in record layouts to 
conform to the new symbology series key as defined by the OSI will 
increase efficiency and improve the mechanism for DTC Participants to 
perform under the OSI initiative.

(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 as it merely makes changes 
to the record layouts for DTC's Payment Order System.

(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 proposed rule change has become effective upon filing 
pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-
4(f)(4) \9\ 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 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

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:

[[Page 50853]]

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-2009-15 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-2009-15. 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 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/2009-15.pdf. 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-2009-15 and should be 
submitted on or before October 22, 2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-23623 Filed 9-30-09; 8:45 am]

BILLING CODE 8011-01-P