Document ID: SEC-2015-0665-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2015-04-16T04:00Z

[Federal Register Volume 80, Number 73 (Thursday, April 16, 2015)]
[Notices]
[Pages 20525-20526]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-08704]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74712; File No. SR-DTC-2015-01]

Self-Regulatory Organizations; The Depository Trust Company; 
Order Approving Proposed Rule Change To Discontinue the Prospectus 
Repository System Service

April 10, 2015.

I. Introduction

    On February 13, 2015, The Depository Trust Company (``DTC'') filed 
with the Securities and Exchange Commission (``Commission'') proposed 
rule change SR-DTC-2015-01 (``Proposed Rule Change'') pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder.\2\ The Proposed Rule Change was published 
for comment in the Federal Registrar on March 2, 2015.\3\ The 
Commission did not receive any comments on the Proposed Rule Change. 
This order approves the Proposed Rule Change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 74358 (February 24, 
2015), 80 FR 11243 (March 2, 2015) (SR-DTC-2015-01).
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II. Description

    DTC filed the Proposed Rule Change to discontinue DTC's Prospectus 
Repository System (``PRS'') and its Terms of Use (``Terms of Use''), as 
discussed below.
    DTC launched PRS in 2003 to provide DTC participants 
(``Participants'') and DTC-authorized third parties (collectively, 
``Users'') \4\ access to prospectuses and official statements relating 
to new issues of corporate and municipal securities (``Documents'').\5\ 
Today, however, there are few Users of PRS because many of the 
Documents provided through PRS are publicly available. As such, DTC 
states that it is not worth the cost of maintaining PRS and, thus, will 
discontinue it.
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    \4\ Third-party Users of PRS include syndicate members, 
correspondent banks, paying agents, transfer agents, and certain 
legal counsel and financial advisors. Individual investors do not 
have access to PRS.
    \5\ Securities Exchange Act Release No. 47410 (February 26, 
2003), 68 FR 10558 (March 5, 2003) (SR-DTC-2002-13).
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III. Discussion

    Section 19(b)(2)(C) of the Act \6\ directs the Commission to 
approve a proposed rule change of a self-regulatory organization if it 
finds that such proposed rule change is consistent with the 
requirements of the Act and rules and regulations thereunder applicable 
to such organization. Section 17A(b)(3)(F) of the Act requires, among 
other things, that the rules of a clearing agency be designed to 
promote the prompt and accurate clearance and settlement of securities 
transactions.\7\
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    \6\ 15 U.S.C. 78s(b)(2)(C).
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission finds the Proposed Rule Change consistent with the 
Act. More specifically, the Commission finds that the Proposed Rule 
Change is consistent with Section 17A(b)(3)(F) of the Act.\8\ By 
eliminating a service that is not economically efficient to maintain or 
central to DTC's core clearing business, DTC can better allocate its 
economic resources to support the safeguarding of securities or funds 
in its

[[Page 20526]]

custody or control, and promote the prompt and accurate clearance and 
settlement of securities transactions.
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    \8\ Id.
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
Proposed Rule Change is consistent with the requirements of the Act and 
in particular with the requirements of Section 17A of the Act \9\ and 
the rules and regulations thereunder.
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    \9\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that proposed rule change SR-DTC-2015-01 be, and hereby is, 
approved.\10\

    \10\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).
    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Brent J. Fields,
Secretary.
[FR Doc. 2015-08704 Filed 4-15-15; 8:45 am]
 BILLING CODE 8011-01-P