Document ID: SEC-2011-0247-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2011-02-25T05:00Z

[Federal Register: February 25, 2011 (Volume 76, Number 38)]
[Notices]               
[Page 10628-10629]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25fe11-87]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63936; File No. SR-DTC-2011-03]

 
Self-Regulatory Organizations; the Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Regarding Providing Participants With a New Optional Settlement Web 
Interface

February 22, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 7, 2011, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change as 
described in Items I and II 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) \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 proposed rule change will establish a new browser-based 
interface, the ``Settlement Web,'' that allows Participants to view 
their settlement-related activity.

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

    DTC Participants have the ability to view all of their settlement 
related activity using different functions in the Participant Browser 
System (``PBS'').\4\ Based on request from its Participants, DTC has 
created a more user-friendly interface called Settlement Web that 
allows Participants to view their settlement related activity. The 
Settlement Web will reduce the amount of time that Participants spend 
in PBS by increasing the efficiency in searching for settlement 
activity. Participants that chose to use the Settlement Web will have 
access to a Navigation Bar that will provide Participants with improved 
inquiry and update capabilities for their settlement transactions. 
Participants will also have the ability to view different settlement 
related activities using the Dashboard in the Settlement Web homepage. 
Additionally, Participants will have the option to use an alert 
function located within the Settlement Web's dashboard to provide them 
to set alerts regarding settlement related events.\5\ Participants will 
be able to customize the function to control which events for which 
they want to be notified. These alerts will reduce the amount of time 
spent in PBS because Participants will no longer have to manually check 
multiple settlement functions to be made aware of various settlement 
events. Notifications will be made available to Participants through 
the alerts window in the dashboard or by e-mail. The e-mail will notify 
the

[[Page 10629]]

Participant that an alert has been triggered, but the Participant will 
be required to sign into the Dashboard in order to receive the alert 
message. While this alert message will provide Participants with 
greater efficiency in how they view settlement events, Participants 
will continue to have the responsibility to independently check the 
settlement functions to verify all of their settlement related events.
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    \4\ In 2008, DTCC completed a multi-year initiative to 
transition all Participant Terminal System (``PTS'') functions to 
PBS. Now, rather than toggle between the two tools, Participants can 
manage all their needs through the web-based PBS, which is more 
flexible than PTS while offering greater functionality. However, 
Participants are still able to use PTS for most of their settlement 
activities.
    \5\ Events, which include, for example, settlement extension 
broadcasts and the receipt of a specific delivery, are regularly 
scheduled processing milestones associated with a given settlement 
cycle.
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    Additionally, DTC is making unrelated technical updates to its 
Settlement Service Guide to conform to certain rule changes that have 
previously been filed with the Commission.\6\ These changes will 
necessitate revisions to the existing DTC Settlement Guide and those 
revisions are attached to DTC's proposed rule filing as Exhibit 5.
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    \6\ In 2010, DTC implemented a new function that allows DTC 
Participants to set a profile in PBS so that they can request that 
excess funds be wired to their settling bank account at 
approximately 3:20 p.m. Eastern Time. Securities Exchange Act 
Release No. 61922 (Apr. 15, 2010), 75 FR 21072 (Apr. 22, 2010). Also 
in 2010, DTC updated its processing schedule in order to extend the 
end-of-day cutoff time for processing pledges and releases to and 
from the New York Federal Reserve Bank from 3 p.m. to 5 p.m. 
Securities Exchange Act Release No. 63415 (Dec. 2, 2010), 75 FR 
76506 (Dec. 8, 2010).
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    DTC states that the proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to DTC because it will promote efficiencies in the way that 
Participants view settlement related transactions and as such will 
promote the safeguarding of securities and funds in DTC's custody or 
control or for which it is responsible.

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 upon filing pursuant 
to Section 19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(4) \8\ 
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 DTC's custody or control or for which it is 
responsible and (ii) does not significantly affect the respective 
rights of DTC or persons using the service. 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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    \7\ Supra note 2.
    \8\ Supra note 3.
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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 No. SR-DTC-2011-03 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-2011-03. 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 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 DTC's principal office and DTC's Web site at 
http://www.dtcc.com/downloads/legal/rule_filings/2011/dtc/2011-03.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 No. SR-DTC-2011-03 and 
should be submitted on or before March 18, 2011.

    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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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-4289 Filed 2-24-11; 8:45 am]
BILLING CODE 8011-01-P