Document ID: SEC-2007-0064-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Depository Trust Co.
Posted Date: 2007-01-16T05:00Z

[Federal Register: January 16, 2007 (Volume 72, Number 9)]
[
Notices]               
[Page 1793-1794]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16ja07-94]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55058; File No. SR-DTC-2006-17]

 
Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Adding the Security Holder Report Service to the Security Position 
Report Service

January 8, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 17, 2006, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') and on January 5, 2007, amended 
the proposed rule change described in Items I, II, and III below, which 
items have been prepared primarily by DTC. 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).
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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 add a new service, 
the Security Holder Report (``SHR'') service, to DTC's Security 
Position Report (``SPR'') service.

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.\2\
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    \2\ 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

    SPRs are reports prepared by DTC that show for each issuer whose 
securities are eligible for DTC's book entry services the identity of 
each DTC participant having that issuer's securities credited to its 
participant account and the quantity of that issuer's securities that 
the DTC participant has credited to its participant account as of a 
selected date. Most securities are registered with the issuer's 
transfer agent in the name of DTC's nominee, Cede & Co. Issuers rely on 
DTC to provide them with SPR information. DTC also provides SPR 
information to trustees and authorized third party agents. These 
entities typically need SPR information provided by DTC in order to 
properly conduct proxy, record date, and voting rights related 
functions.
    Some authorized users of the SPR service also perform regulatory 
reporting functions for which they require the participants' identities 
but do not need the corresponding quantity of securities credited to 
each participant. Currently, such users are required to order from DTC 
an SPR, which costs $120 per CUSIP. In order to mitigate user expenses, 
DTC is proposing to offer the SHR service as part of its SPR service. 
The SHR will allow authorized users to obtain reports with only 
participant identity. SHRs will result in lower production costs to DTC 
and in greater protection of participant information and will allow a 
lower fee to be charged than that for standard SPRs. The SHR fees are:
    (i) $55.00 per CUSIP for the first 500 CUSIPS and
    (ii) $6.00 per CUSIP for requests of 501 or more CUSIPS.
    The proposed rule change is consistent with the requirements of 
Section 17A of the Act \3\ and the rules and regulations thereunder 
applicable to DTC because it will foster cooperation and coordination 
with persons engaged in the clearance and settlement of securities 
transactions and, in general, protects investors and the public 
interest.
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    \3\ 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 on 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

    No written comments relating to the proposed rule change have 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 \4\ and Rule 19b-4(f)(4) \5\ 
thereunder because the proposed rule change 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.\6\
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    \4\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \5\ 17 CFR 240.19b-4(f)(4).
    \6\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on January 5, 2007, the date on which the last amendment 
to the proposed rule change was filed with the Commission. 15 U.S.C. 
78s(b)(3)(C).
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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

[[Page 1794]]

Number SR-DTC-2006-17 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-2006-17. 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 https://login.dtcc.com/dtcorg/. 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-2006-17 and should be submitted on 
or before February 6, 2007.
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    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-389 Filed 1-12-07; 8:45 am]

BILLING CODE 8011-01-P