Document ID: SEC-2010-1246-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2010-08-16T04:00Z

[Federal Register: August 16, 2010 (Volume 75, Number 157)]
[Notices]               
[Page 50032-50033]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16au10-129]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62686; File No. SR-DTC-2010-10]

 
Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Promote Efficiencies Within the Legal Notice System

August 10, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 29, 2010, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change described 
in Items I and II 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.
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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 promotes efficiencies within the Legal 
Notice System (``LENS'').

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\
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    \4\ 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

1. Purpose
    In 1991, DTC created LENS to reduce the amount of paper that DTC 
participants (``Participants'') receive in connection with DTC's 
distribution of legal notices. At that time, notices were made 
available through an electronic format through DTC's proprietary PTS 
3270 terminal network (``PTS service'').\5\ In 2000, DTC enhanced LENS 
by making the notices available over the Internet (``Web service'').\6\ 
The Web service improved the PTS service by: (i) Reducing the costs of 
distribution, which cost was ultimately borne by Participants, (ii) 
offering online viewing of notices and notice download capability, and 
(iii) providing up-to-date functionality that a web environment 
supports such as the option to receive e-mail alerts when new notices 
are posted for CUSIPs specified by the user. The Web service is also 
more accessible, requiring little or no training when Participants 
bring on new staff.
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    \5\ Securities Exchange Act Release No. 34-29291 (June 12, 
1991), 56 FR 28190 (June 19, 1991).
    \6\ Securities Exchange Act Release No. 34-43964 (February 14, 
2001), 66 FR 1190 (February 22, 2001).
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    Recently, DTC has been studying whether further enhancements and 
efficiencies can be made to the LENS service. In an effort to reduce 
the costs associated with LENS, DTC will end the use of the LENS 
service through PTS effective August 27, 2010. DTC has notified 
Participants currently using the LENS system through PTS by Important 
Notice on a ``splash screen'' (displayed when Participants sign on to 
PTS) and through its Relationship Management newsletter. Participants 
will continue to have access to LENS through the Web service, which, as 
mentioned previously, provides greater ease of use and functionality.
2. Statutory Basis
    DTC believes that the proposed rule change is consistent with 
Section 17A of the Act \7\ because it controls costs associated with a 
service provided by DTC and therefore does not significantly affect the 
respective rights or obligations of DTC or persons using the service.
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    \7\ 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 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

    Written comments relating to the proposed rule change were not and 
are not intended to be 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 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 and obligations 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(4).
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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 Number SR-DTC-2010-10 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-2010-10. 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

[[Page 50033]]

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 the principal office of DTC and on DTC's Web site at http://
www.dtcc.com/downloads/legal/rule_filings/2010/dtc/2010-10.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-2010-10 
and should be submitted on or before September 7, 2010.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-20182 Filed 8-13-10; 8:45 am]
BILLING CODE 8010-01-P