Document ID: SEC-2020-1694-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The Depository Trust Co.
Posted Date: 2020-10-21T04:00Z

[Federal Register Volume 85, Number 204 (Wednesday, October 21, 2020)]
[Notices]
[Pages 67018-67022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23260]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90203; File No. SR-DTC-2020-012]

Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing of Proposed Rule Change To Adopt a New Service Guide 
To Establish the ClaimConnectTM Service and Update the Settlement 
Service Guide

October 15, 2020.
    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 October 8, 2020, 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 by the clearing agency. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change \3\ consists of amendments to (i) adopt a 
new DTC service guide to establish the ClaimConnect service at DTC 
(``ClaimConnect Service Guide''),\4\ and (ii) update the existing DTC 
Settlement Service Guide \5\ (``Settlement Guide'') to (A) account for 
a new ClaimConnect process that would bypass DTC's existing Receiver 
Authorized Delivery function (``RAD''), (B) make related clarifying 
changes regarding RAD, and (C) update certain address and contact 
information in the Copyright section of the Settlement Guide, as 
described in greater detail below.
---------------------------------------------------------------------------

    \3\ Capitalized terms not defined herein are defined in the 
Rules, By-Laws and Organization Certificate of DTC (``Rules'') 
available at http://www.dtcc.com/~/media/Files/Downloads/legal/
rules/dtc_rules.pdf, or in the hereby proposed ClaimConnect Service 
Guide, included as Exhibit 5 to this proposed rule change filing.
    \4\ The hereby proposed ClaimConnect Service Guide sets forth 
Procedures for the proposed DTC ClaimConnect service. Procedures, in 
this context, pursuant to Section 1 of Rule 1, means ``the 
Procedures, service guides, and regulations of [DTC] adopted 
pursuant to Rule 27, as amended from time to time.'' Rule 1, Section 
1, supra note 3. The proposed ClaimConnect Service Guide would 
constitute a Procedure of DTC, as defined in the Rules.
    \5\ Available at http://www.dtcc.com/~/media/Files/Downloads/
legal/service-guides/Settlement.pdf.
---------------------------------------------------------------------------

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency 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. The clearing agency has prepared summaries, 
set forth in sections A, B, and C below, of the most significant 
aspects of such statements.

[[Page 67019]]

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to (i) adopt the 
ClaimConnect Service Guide, and (ii) update the Settlement Guide to (A) 
account for a new ClaimConnect process that would bypass RAD, (B) make 
related clarifying changes regarding RAD, and (C) update certain 
address and contact information in the Copyright section of the 
Settlement Guide.
About ClaimConnect
    The proposed ClaimConnect service will be an optional service 
available to all Participants.\6\ The service will enable Participants 
to bilaterally match and settle cash claim transactions at DTC.
---------------------------------------------------------------------------

    \6\ A fee associated with Participants' use of the ClaimConnect 
service will be the subject of a separate, subsequent rule filing 
with the Commission.
---------------------------------------------------------------------------

    With respect to ClaimConnect, a cash claim or cash claim 
transaction is a cash entitlement (i.e., a request for cash) from one 
Participant to another Participant. Typically, cash claims arise as a 
result of trading exceptions from a Corporate Action event,\7\ where a 
cash entitlement needs to be delivered from one holder to another. 
Today, such claims are settled away from DTC, except for some stock 
loan and repurchase (``repo'') substitution payments, which can be 
settled via Adjustment Payment Orders (``APOs'').\8\ However, based on 
discussions with Participants, DTC has developed ClaimConnect so 
Participants can settle cash claims in one centralized location, using 
the DTC system.\9\
---------------------------------------------------------------------------

    \7\ Trading exceptions include, but are not limited to, trades 
outside of the market's agreed upon settlement cycle, lack of due 
bill fail tracking, stock loan or repo transaction discrepancy, or 
tax treaty differences.
    \8\ In light of the proposed ClaimConnect service, DTC is 
considering retiring the APO process. If such a decision is made, 
then any corresponding changes would be the subject of a separate, 
subsequent rule filing with the Commission, as applicable. Until 
such time, Participants would have the option to settle stock loan 
and repo substitution payments via APOs or ClaimConnect.
    \9\ Based on discussions with Participants, DTC estimates that 
ClaimConnect may process approximately 212,000 claims its first 
year, increasing to approximately 425,000 claims by its fifth year.
---------------------------------------------------------------------------

    As described below, ClaimConnect will be a validation and matching 
engine that continually monitors claims throughout their lifecycle in 
order to settle and close claims through DTC's settlement process. This 
continuous processing will allow for both the manual matching of claims 
(i.e., to Affirm or Affirmation) by ClaimConnect users (``Users'') and 
systematic matching of two like claims by ClaimConnect based on the 
alignment of certain data elements (i.e., Auto-matching).
    ClaimConnect will offer various claim processing functions, 
including end-of-day settlement of cash claims through systematic 
Securities Payment Orders (``SPOs'') generated and submitted by 
ClaimConnect at set times intraday (``settlement time'') on a 
settlement date.
Preparing To Use ClaimConnect
    To use ClaimConnect, a Participant need only request to be a 
``Claim Participant'' by contacting its Relationship Manager. The 
Participant's account information at DTC will then be updated to 
indicate that the Participant is now a member of the service (i.e., a 
User).
    Once permissioned, a Participant (now a User) will be able to 
engage ClaimConnect in two ways: (i) The ClaimConnect application via 
the MyDTCC portal, and (ii) the ClaimConnect Application Programming 
Interfaces (``APIs'').\10\
---------------------------------------------------------------------------

    \10\ ClaimConnect APIs will provide Users with callable 
endpoints for creating and deleting data resources, as well as 
reading and updating data resource values. Information including 
specifications related to ClaimConnect APIs will be available to 
Participants at https://developer.dtcc.com or by navigating through 
the Portals menu on www.dtcc.com.
---------------------------------------------------------------------------

    If using ClaimConnect through the web application on the MyDTCC 
portal, Users will have access to all ClaimConnect functionality, 
including:
     Submitting new claims;
     modifying claims submitted by the User;
     attaching documents to claims;
     Canceling claims submitted by the User;
     DKing and Un-DKing claims; \11\
---------------------------------------------------------------------------

    \11\ DK is shorthand for ``Don't Know.''
---------------------------------------------------------------------------

     Affirming claims;
     utilizing the ClaimConnect Auto-match feature;
     establishing Approvals; and
     searching all claims submitted or received by the User.
    Additionally, the ClaimConnect dashboard, which would be available 
via the MyDTCC portal, will offer a comprehensive overview of a User's 
claim activity, as well as provide daily and weekly email alerts on the 
status of claims, and the ability to pull reports and export data for 
manipulation and analysis.
    Meanwhile, the ClaimConnect family of APIs will enable Users to 
automate the claim process. The APIs could be used separately for 
machine-to-machine processing of claims or in combination with the 
ClaimConnect web application through the MyDTCC portal. Although 
ClaimConnect functionality is more limited through the APIs (i.e., APIs 
cannot Affirm claims, attach documents to claims, access the 
ClaimConnect dashboard or establish an Approval), Users will still be 
able to:
     Submit new claims;
     modify their own claims;
     Cancel their own claims;
     utilize the ClaimConnect Auto-match feature;
     DK and Un-DK claims; and
     search all claims submitted or received by the User.
    Each ClaimConnect function is described in greater detail below. 
Unless otherwise noted, the functions apply to both the ClaimConnect 
service via the web application and the APIs.
Submitting Claims
    If overpaid or underpaid a cash entitlement due to a trading 
exception, a User will be able to create a claim against a claim 
counterparty through ClaimConnect. To create a claim, the ClaimConnect 
system will require certain data elements to be included, while other 
data elements will be optional.\12\ Optional data elements will help 
Users differentiate similar claims.
---------------------------------------------------------------------------

    \12\ A sample list of required and optional data elements will 
be available in the proposed ClaimConnect Service Guide. A complete 
list of data elements and whether the data elements are required or 
optional will be available on the ClaimConnect DTCC Learning Center 
page.
---------------------------------------------------------------------------

    To help expedite the claim process, Users will be able to attach a 
document to a claim, through the ClaimConnect web application in the 
MyDTCC portal, which can provide further details about the claim. 
Similarly, to more easily identify claims and expedite the settlement 
process, claim submitters should work with claim counterparties during 
the claim submission process.
    Once all required data elements are entered and the claim is 
submitted, the claim is assigned a Claim ID.\13\ If both parties to a 
claim submit their respective sides to the claim (i.e., a debit claim 
and a credit claim), and the two sides of the claim are Auto-matched, 
then the claim will be identified by the Claim ID associated with the 
debit side of the claim. The Claim ID of the credit side of the claim 
will be viewable in the claim's audit history.
---------------------------------------------------------------------------

    \13\ A Claim ID is a unique claim identification number that is 
assigned to a claim after all required data elements are entered and 
the claim is submitted.
---------------------------------------------------------------------------

Claim States
    Once submitted, claims can exist in several different ``states'' 
depending upon the actions taken by the parties to the claim. Claims 
will be able to exist

[[Page 67020]]

as Matched, Uncompared, DK-uncompared, Cancelled, or Closed.
    Matched. A claim will be in a Matched state when it has been Auto-
matched by the ClaimConnect system, or it has been Affirmed by the 
counterparty to the claim.
    Uncompared. A claim will be in an Uncompared state, and will remain 
in such a state indefinitely, until an action is taken on it. This will 
occur when (i) a claim is initially submitted, without any further 
action taken on the claim; (ii) a claim is modified by the submitting 
party before the counterparty has acted on it; (iii) a claim is 
modified by the submitting party after it has been DK'd by the 
counterparty; or (iv) a claim is Un-DK'd, without any further action 
taken on the claim.
    DK-uncompared. A claim will be in a DK-uncompared state when it has 
been DK'd by the receiving counterparty, and the submitting party has 
not yet acted on the counterparty's DK.\14\
---------------------------------------------------------------------------

    \14\ The DK-uncompared state is synonymous with an Uncompared 
status but will be distinguished in the proposed ClaimConnect 
Service Guide to better depict the workflow.
---------------------------------------------------------------------------

    Cancelled. A claim will be in a Cancelled state when the submitting 
party determines that the claim is no longer needed. This will occur 
when the submitting party Cancels the claim before it has been acted on 
by the counterparty, or the submitting party Cancels a claim that has 
been DK'd by the counterparty.
    Closed. A claim will be in a Closed state when a Matched claim 
settles or fails to settle, as part of DTC's end-of-day settlement 
process, by the close of the scheduled settlement day, as described 
below. Once a claim is either Matched or Closed, then it can no longer 
be modified, DK'd, or moved into an Uncompared state. If a correction 
needs to be made to a Matched or Closed claim, then a new claim will 
need to be submitted.
Validating Claims
    Validation, the process of confirming claim data elements, will 
happen in two ways: (i) When a claim is Affirmed (i.e., by Affirming a 
claim, the receiving counterparty is confirming the claim's data 
elements), or (ii) when ClaimConnect Auto-matches two claims.
    Once Validated, a claim will switch from an Uncompared to a Matched 
state. However, if certain data elements of the two sides of a claim do 
not agree, the claims cannot be Validated and, thus, cannot be 
Matched.\15\ Such claims will remain in an Uncompared state until 
action is taken upon one or both claims.
---------------------------------------------------------------------------

    \15\ A complete list of data elements that require matching will 
be available in the training materials found on the ClaimConnect 
DTCC Learning Center page.
---------------------------------------------------------------------------

Modifying and Canceling Claims
    Users will be able to modify or Cancel claims. However, not all 
data elements can be modified after submission,\16\ and a claim can be 
modified if and only if:
---------------------------------------------------------------------------

    \16\ Users will be able to refer to the ClaimConnect user guides 
and other training materials to determine which fields can be 
modified.
---------------------------------------------------------------------------

     The modifying User is the User that submitted the claim; 
and
     the claim is Uncompared;
     the claim has not been Cancelled;
     the claim has not been Matched; or
     the claim has not been Closed.
    A claim can be Cancelled if and only if:
     The Canceling User is the User that submitted the claim; 
and
     the claim is Uncompared;
     the claim has not been Matched; or
     the claim has not been Closed.
    Once a claim is Cancelled, no further action can be made on the 
claim.
Affirming Claims
    If a counterparty receives a claim and agrees with its details 
(i.e., the data elements), then the counterparty could Affirm the 
claim. Affirming a claim will be a confirmation of the claim's data 
elements and would move the claim into a Matched state. Once Affirmed, 
the claim will be settled on the Claim Settlement Date \17\ or Settle 
After Match,\18\ whichever the parties agree to.
---------------------------------------------------------------------------

    \17\ The Claim Settlement Date is the date on which a claim will 
settle, as agreed upon by the claim parties.
    \18\ Settle After Match is a settlement option where a Matched 
claim will settle at the next scheduled settlement time, as compared 
to a future settlement date. Both parties to the claim would need to 
select the Settle After Match option to be effective.
---------------------------------------------------------------------------

    Affirmation will usually occur only when one side of a claim is 
submitted because it affords the counterparty enough time to Affirm the 
claim. If both sides of a claim are submitted, and the applicable data 
elements align, then Auto-match will likely Match the claims before 
either party has time to make an Affirmation.
    Claims can be Affirmed only:
     ``Manually'' via the MyDTCC portal, not through an API;
     by the counterparty that received the claim; and
     when the claim is Uncompared; or
     when the claim is not Cancelled or Closed.
    Once Affirmed, the claim will move to a Matched state and no 
further action will be permitted on the claim.
DKing Claims
    If a counterparty receives a claim that it does not know or does 
not agree with, then it can DK the claim. Claims can be DK'd only by 
the User that received the claim and when the claim is Uncompared or 
when the claim is not Cancelled or Closed. Users that DK a claim must 
provide a reason for the DK.\19\ DKing a claim will return it to the 
submitting party and change the state of the claim to DK-uncompared. 
The submitting party will then have the option to modify the claim or 
Cancel it.
---------------------------------------------------------------------------

    \19\ Reasons for a DK include, but are not limited to, bad 
quantity, bad trade date, bad settlement date, bad amount, bad 
counterparty, duplicate record, invalid security identifier, need 
paperwork, need medallion stamp, settlement date difference, other 
bad data, or wrong event type.
---------------------------------------------------------------------------

    A claim DK'd in error can be Un-DK'd (i.e., reversed) by the party, 
and only that party, that DK'd the claim. Once Un-DK'd, the claim will 
be in an Uncompared state. Uncompared claims can be modified or 
Cancelled by the submitting party, or they can be Affirmed or DK'd by 
the receiving party.
Searching and Reporting on Claims
    ClaimConnect also will have both search and report functions. There 
will be two types of searches: (i) Quick Search, to look up a specific 
claim using either the unique Claim ID or Xref that the User assigned 
to the claim, and (ii) Advanced Search, to search for a range of claim 
activity, including claims submitted by the User or by a counterparty.
    From the search results, Users will be able to select a claim to 
view more detailed information. ClaimConnect also will enable Users to 
view all of their claims as of a given date (either on a current or 
historic day), which can then be downloaded into a CSV (Comma-Separated 
Value) file format report.
Approving Claims
    To assist Users with the management of their claims, ClaimConnect 
will offer an Approval feature. The Approval feature will require 
certain actions on a claim to be approved by a separate User employee, 
if the claim amount meets or exceeds a predetermined dollar threshold 
set by the User, before that action can be completed. This feature is 
designed to enable Users to better monitor and manage certain cash 
debits that are leaving their account to satisfy claims.
    Users will be able to activate the Approval feature by updating 
their ClaimConnect client profile. When doing so, the User must then 
set the dollar threshold that will trigger the Approval process. For 
example, if a User wants all debit claims equaling $100.00 or greater 
to be Approved, the User would set the Approval threshold

[[Page 67021]]

to $100.00. Unfortunately, because of the manual aspects of the 
Approval feature, this feature will not be available via APIs.\20\
---------------------------------------------------------------------------

    \20\ Because APIs are a form of machine-to-machine or system-to-
system communication, all necessary actions, such as the manual 
process of Approving a claim, must be completed prior to that 
communication.
---------------------------------------------------------------------------

    Once the Approval process is activated and a dollar threshold set, 
Approval by another User employee is required when the dollar threshold 
is met for claims that are new, being Affirmed, being modified, or 
being Cancelled after being previously Approved.
    If a claim would be modified so that the dollar amount of the claim 
would no longer meet or exceed a previously established approval 
threshold, then the modification will not need to be Approved. 
Conversely, if a claim would be modified so that the dollar amount of 
the claim would now meet or exceed a previously established Approval 
threshold, then the claim will need to be Approved. If a previously 
Approved claim is modified but the claim amount remains unchanged 
(i.e., it still meets or exceeds the Approval threshold), then the 
claim will need to be re-Approved. Approval is not required to DK or 
Un-DK a claim.
    New claims that are pending Approval will not have a claim state, 
and the counterparty to the claim will not see the claim until it is 
Approved. Once Approved, the claim will be moved to an Uncompared 
state.
    In order to modify a new claim that is still pending Approval, the 
submitting User should reject the claim, make the modification, and 
resubmit it for Approval. If the claim has already been Approved, a 
modification may require re-Approval, if the Approval threshold is met.
    Claim Approvers must be different than the User employee that 
created the claim. Approvers can view the details of the claim prior to 
Approving. If an Approver rejects a claim, the claim will need to be 
resubmitted for Approval or Cancelled.
Settling Claims
    Matched claims will generate a ClaimConnect SPO for settlement on 
either the Claim Settlement Date, the next applicable daily settlement 
time if the Settle After Match indicator has been agreed to by both 
parties,\21\ or the first settlement time on the next settlement day if 
the current day is a holiday or non-settlement date. The SPO will 
credit the payee Participant and debit the payor Participant the claim 
amount and will then be incorporated into DTC's end-of-day settlement 
process.
---------------------------------------------------------------------------

    \21\ The intraday settlement times for processing ClaimConnect 
SPOs will be available on the ClaimConnect DTCC Learning Center 
page.
---------------------------------------------------------------------------

    Although a ClaimConnect SPO will be similar to other DTC SPOs, it 
will be unique to ClaimConnect and its settlement process in several 
ways:
     The reason code for ClaimConnect SPOs will be used only 
for ClaimConnect cash movements;
     ClaimConnect SPOs will not be able to be instructed 
manually, as the instructions will be an automated process through the 
ClaimConnect service; and
     ClaimConnect SPOs will bypass RAD, meaning there will be 
no additional approval or rejection process for ClaimConnect SPOs.
    ClaimConnect will Close the claim once it settles or fails to 
settle by the close of the settlement day. Closed claims cannot be 
reopened, modified, or processed again. If an adjustment is needed, a 
new claim will need to be submitted and processed.
    ClaimConnect SPOs will be subject to DTC's Risk Controls (i.e., 
Collateral Monitor and Net Debit Cap) and will ``recycle'' (i.e., pend) 
if the SPO cannot satisfy those controls.\22\ If a ClaimConnect SPO 
does not ``make'' (i.e., settle) by the end of the settlement day, the 
SPO will be ``dropped'' (i.e., Closed). Details on failed claims will 
be available using the Settlement Web activity inquiry function.
---------------------------------------------------------------------------

    \22\ Because ClaimConnect SPOs will not be submitted for night 
cycle processing, they will not be subject to DTC's settlement 
optimization process. See Securities Exchange Act Release No. 87022 
(September 19, 2019), 84 FR 50541 (September 25, 2019) (SR-DTC-2019-
005).
---------------------------------------------------------------------------

Changes to the Rules
    To effectuate the establishment of the ClaimConnect service, DTC 
hereby proposes to adopt a new service guide--the ClaimConnect Service 
Guide--to explain the ClaimConnect service as described above. In 
addition, the existing Settlement Guide will be updated to (A) indicate 
that not all SPOs are subject to RAD prior to settlement, as 
ClaimConnect SPOs will not be subject to RAD, (B) make related 
clarifying changes regarding RAD, and (C) update certain address and 
contact information in the Copyright section of the Settlement Guide.
Implementation Timeframe
    The ClaimConnect service, and associated guide, will become 
effective and available to Participants within 10 business days 
following Commission approval. DTC will announce the effective date of 
the proposed changes by Important Notice posted to its website. A fee 
associated with Participants' use of ClaimConnect will be the subject 
of a separate, subsequent rule filing with the Commission. If that fee 
filing has not been completed by the time the ClaimConnect service 
becomes effective and available to Participants, then Participants will 
not be charged a fee for their use of ClaimConnect until that filing is 
completed. The proposed changes the Settlement Service Guide will 
become effective upon Commission approval.
2. Statutory Basis
    Section 17A(b)(3)(F) of the Act requires, in part, that the rules 
of a clearing agency be designed to foster cooperation and coordination 
with persons engaged in the clearance and settlement of securities 
transactions.\23\ DTC believes this proposed rule change is consistent 
with that provision of the Act, and the rules and regulations 
thereunder applicable to a registered clearing agency.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    As described above, the ClaimConnect service will be an optional 
service that was developed based on discussions with Participants. 
ClaimConnect would enable Participants to bilaterally match and settle 
cash claim transactions at DTC. While settlement of cash claims occurs 
today, it does so away from DTC, in a dispersed fashion. ClaimConnect 
would establish a centralized and coordinated location for Participants 
to settle such claims and, as described above, include various 
functionality, such as a web application, APIs, an Auto-match feature, 
an Approval function, and final settlement via SPOs.
    Although a cash claim transaction itself is not a securities 
transaction, it is the biproduct of a securities transaction and a 
Corporate Action event on the securities. By offering a centralized and 
coordinated location for Participants to settle cash claims, with 
various functionality, the ClaimConnect service is designed to help 
Participants more easily settle cash claim activity associated with a 
securities transaction. Similarly, by updating the existing Settlement 
Service Guide to indicate that not all SPOs will be subject to RAD 
(since ClaimConnect SPOs will not be subject to RAD, as explained 
above), the guide will help Participants better understand the 
clearance and settlement processes.
    Finally, by updating the Settlement Guide with more current 
information about where Participants and others may direct inquiries 
about the DTC

[[Page 67022]]

service guides, the Settlement Guide will provide the most up-to-date 
information to help Participants submit questions or comments about the 
service guides.
    Therefore, for the above reasons, DTC believes that the proposed 
rule change will help foster cooperation and coordination with persons 
engaged in the clearance and settlement of securities transactions, 
consistent with Section 17A(b)(3)(F) of the Act.\24\
---------------------------------------------------------------------------

    \24\ Id.
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    DTC does not believe that the adoption of the proposed service 
guide to establish the ClaimConnect service or the proposed 
modifications to the existing Settlement Guide will have any impact on 
competition.
    As described above, the ClaimConnect service will be an optional 
service (i.e., Participants will have the option to either use 
ClaimConnect or continue to settle cash claims away from DTC). Although 
DTC believes settling a cash claim via ClaimConnect will offer benefits 
over settling such claims away from DTC, those benefits would be 
available to all Participants that choose to use the service, including 
both the credit and debit sides of any single claim. Meanwhile, the 
proposed changes to the Settlement Guide would simply (A) account for 
the processing of ClaimConnect SPOs, with respect to RAD, (B) make 
related clarifying changes regarding RAD, and (C) update certain 
address and contact information in the Copyright section of the 
Settlement Guide.
    For these reasons, DTC does not believe that the proposed rule 
change will have any impact on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants, or Others

    DTC has not received or solicited any written comments relating to 
this proposal. 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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 Number SR-DTC-2020-012 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-DTC-2020-012. 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 website (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 website 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 DTCC's website 
(http://dtcc.com/legal/sec-rule-filings.aspx). All comments received 
will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-DTC-2020-012 and should be submitted on 
or before November 12, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
---------------------------------------------------------------------------

    \25\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-23260 Filed 10-20-20; 8:45 am]
BILLING CODE 8011-01-P