Document ID: SEC-2011-2002-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2011-12-22T05:00Z

[Federal Register Volume 76, Number 246 (Thursday, December 22, 2011)]
[Notices]
[Pages 79725-79726]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-32756]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65994; File No. SR-DTC-2011-12]

 Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Rules Relating to DTC's Deposits Service Guide

December 16, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 14, 2011, 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 proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(4) thereunder so that the 
proposed rule change was effective upon filing with the Commission.\2\ 
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).
    \2\ 15 U.S.C. 78s(b)(3)(A)(iii) and 17 CFR 240.19b-4(f)(4).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The purpose of this proposed rule change is to update DTC's 
Deposits Service Guide in order to streamline the document and to 
mitigate certain risks associated with certain deposit processes.\3\
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    \3\ The text of the proposed rule change is attached as Exhibit 
5 to DTC's filing, which is available at www.dtcc.com/downloads/legal/rule_filings/2011/dtc/2011-12.pdf.
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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 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
    DTC's deposits service allow participants to use a full range of 
safekeeping and processing services for various types of eligible 
securities. DTC is now proposing to update its Deposits Service Guide 
(``Deposits Guide'') in order to streamline the document and to 
mitigate risk associated with certain deposit processes. DTC is also 
proposing to make some ministerial changes regarding methods of 
notification, definitions, and communication inputs in order to provide 
a more precise version of the Deposits Guide.\5\
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    \5\ For example, DTC detailed the PBS functions that 
participants have the ability to use with the deposit service and 
made changes to phone numbers and contact information.
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    Specifically, DTC is proposing to make the following updates to the 
Deposits Guide:
    (a) DTC is proposing to update the procedure associated with the 
use of Medallion Signature Guarantee stamps as it relates to its Branch 
Deposit Service in order to document the process that it takes to 
safeguard the use and storage of such stamps.
    (b) DTC is proposing to add a section to the Deposits Guide 
detailing its Paperless Legal Transfer Program.\6\
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    \6\ For more information regarding DTC's Paperless Legal 
Transfer Program, see Important Notices B6931 (September 
29, 2004), B7139 (December 1, 2004), and B9787 
(June 21, 2006).
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    (c) DTC is proposing to remove the narrative describing its custody 
services because such services are fully described in DTC's Custody 
Service Guide.\7\
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    \7\ The language DTC is proposing to eliminate from the Deposit 
Guide continues to be included in the Custody Service Guide.
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(2) Statutory Basis
    The proposed rule change is consistent with the requirements of the 
Act and the rules and regulations thereunder applicable to DTC because 
proposed changes to the procedures associated with DTC's deposit 
service should facilitate the prompt and accurate clearance and 
settlement of securities transactions by reducing the costs, 
inefficiencies, and risks associated with the physical safekeeping of 
securities. In so doing, the proposal should in turn also enhance the 
use of DTC's existing services.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC does not believe that the proposed rule change would 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 have not been 
solicited DTC. 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 \8\ and Rule 19b-4(f)(4) \9\ 
thereunder because it is a change in an existing service that does not 
adversely affect the safeguarding of

[[Page 79726]]

securities or funds in the custody or control of the clearing agency 
and does not significantly affect the respective rights or obligations 
of the clearing agency or persons using the service. At any time within 
sixty days of the filing of such 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 email to rule-comments@sec.gov. Please include 
File Number SR-DTC-2011-12 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-2011-12. 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 Section, 100 F Street 
NE., Washington, DC 20549-1090, on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of such filings will also 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/2011/dtc/2011-12.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-2011-12 and should be submitted on or before January 12, 2012.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-32756 Filed 12-21-11; 8:45 am]
BILLING CODE 8011-01-P