Document ID: SEC-2014-0958-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The Depository Trust Co
Posted Date: 2014-06-10T04:00Z

[Federal Register Volume 79, Number 111 (Tuesday, June 10, 2014)]
[Notices]
[Pages 33241-33243]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13453]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72308; File No. SR-DTC-2014-07]

Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change in 
Connection With the Implementation of a Fee for ACATS-Related 
Deliveries and Receives

June 4, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 29, 2014, 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)(ii) \3\ of the Act and Rule 19b-4(f)(2) \4\ 
thereunder. The proposed rule change 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\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    As more fully described below, the proposed rule change consists of 
changes to the DTC fee schedule \5\ to add new fees for securities 
deliveries and receives relating to customer account transfers that 
utilize a new process to be implemented by National Securities Clearing 
Corporation (``NSCC'').
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    \5\ The DTC fee schedule is available at http://www.dtcc.com/~/
media/Files/Downloads/legal/fee-guides/dtcfeeguide.ashx.
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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.

[[Page 33242]]

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

1. Purpose \6\
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    \6\ Terms not defined herein have the meaning set forth in DTC's 
Rules & Procedures (the ``Rules'').
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    Pursuant to its rule filing SR-NSCC-2014-04 (the ``NSCC Rule 
Filing''),\7\ National Securities Clearing Corporation (``NSCC'') will 
implement a new process, called the ``ACATS Settlement Accounting 
Operation,'' to facilitate the settlement of Automated Customer Account 
Transfer Service (``ACATS'') \8\ activity relating to securities 
eligible for processing through DTC. The ACATS Settlement Accounting 
Operation will have a DTC omnibus account (``New Account'') associated 
with it against which Participants will, via their respective DTC 
accounts, deliver securities to, or receive securities from, NSCC in 
order to satisfy their ACATS obligations in eligible securities.
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    \7\ Release No. 34-72223 (May 22, 2014), 79 FR 30912 (May 29, 
2014) (SR-NSCC-2014-04).
    \8\ ACATS is a service of NSCC designed for the automated 
transfer of customer accounts between broker-dealers.
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    Pursuant to the proposed rule change, in order to align costs with 
revenues of processing deliveries and receives of securities for 
Participants against the New Account, DTC will incorporate the 
following new fees into its fee schedule:

------------------------------------------------------------------------
            Fee description                         Fee amount
------------------------------------------------------------------------
Deliveries to the NSCC ACATS Settlement  $0.06 per item; charged to
 Accounting Operation omnibus account.    delivering Participant.
Receives from the ACATS Settlement       $0.06 per item; charged to the
 Accounting Operation omnibus account.    receiving Participant.
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Implementation Timeframe
    The proposed fee changes will take effect on May 30, 2014, for 
Participant deliveries and receives of securities to and from the New 
Account occurring on or after that date.
2. Statutory Basis
    The proposed fee changes will align DTC's revenue related to 
processing of ACATS transactions versus the New Account with the 
associated costs to DTC, and the fees will apply to each Participant 
equally in accordance with each Participant's use of the applicable DTC 
services. Therefore, DTC believes that the proposed rule change is 
consistent with the requirements of the Act, in particular Section 
17A(b)(3)(D) \9\ of the Act, which requires that the Rules provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among its Participants. In addition to the above, DTC's provision of 
the related services facilitates the safe and secure delivery of 
customer securities for ACATS transfers. Therefore, DTC further 
believes that the proposed rule change is consistent with Rule 17Ad-
22(d)(6) \10\ under the Act which requires clearing agencies to 
establish, implement, maintain and enforce written policies and 
procedures reasonably designed to be cost-effective in meeting the 
requirements of Participants while maintaining safe and secure 
operations.
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    \9\ 15 U.S.C. 78q-1(b)(3)(D).
    \10\ 17 CFR 240.17Ad-22(d)(6).
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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. As stated above, the 
proposed changes will align DTC's fees with the costs of delivering 
services to its Participants, and the new fee will apply equally to all 
DTC Participants in accordance with their use of the applicable 
services.

(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 with respect to this filing.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The forgoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \11\ and Rule 19b-4(f)(2) \12\ thereunder. 
At any time within 60 days of the filing of the proposed rule change, 
the Commission summarily may temporarily suspend 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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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 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 email to rule-comments@sec.gov. Please include 
File No. SR-DTC-2014-07 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-DTC-2014-07. This file 
number should be included on the subject line if email 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 Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of DTC and on DTC's 
Web site at http://dtcc.com/legal/sec-rule-filings.aspx.
    All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You

[[Page 33243]]

should submit only information that you wish to make available 
publicly. All submissions should refer to File No. SR-DTC-2014-07 and 
should be submitted on or before July 1, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13453 Filed 6-9-14; 8:45 am]
BILLING CODE 8011-01-P