Document ID: SEC-2014-1349-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2014-08-11T04:00Z

[Federal Register Volume 79, Number 154 (Monday, August 11, 2014)]
[Notices]
[Pages 46886-46887]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-18879]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72763; File No. SR-DTC-2014-08]

Self-Regulatory Organizations; The Depository Trust Company; 
Order Approving Proposed Rule Change To Transfer NIIDS to a Non-
Clearing Agency Affiliate

August 5, 2014.

I. Introduction

    On June 5, 2014, The Depository Trust Company (``DTC'') filed with 
the Securities and Exchange Commission (``Commission'') proposed rule 
change SR-DTC-2014-08 (``Proposed Rule Change'') pursuant to Section 
19(b)(1) of the Securities Exchange Act of 1934 \1\ (``Act'') and Rule 
19b-4 thereunder.\2\ The Proposed Rule Change was published for comment 
in the Federal Register on June 25, 2014.\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. 72432 (June 19, 2014); 
79 FR 36116 (June 25, 2014) (SR-DTC-2014-08).
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II. Description

    DTC filed the Proposed Rule Change to amend its Operational 
Arrangements \4\ to transfer its New Issue Information Dissemination 
Service (``NIIDS'') to a non-clearing agency affiliate (``NIIDS 
Disseminator'').
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    \4\ DTC Operational Arrangements, available at http://
www.dtcc.com/~/media/Files/Downloads/Settlement-Asset-Services/
Underwriting/operational-arrangements.pdf.
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    The Commission approved DTC's establishment of NIIDS in 2008.\5\ 
NIIDS collects information (``NIIDS Data Elements'') regarding the 
reporting, comparison, confirmation, and settlement of new issues in 
municipal securities (``New Issue'') from the lead underwriter or other 
authorized representative of a New Issue (``Dissemination Agent'') and 
then makes that information available to information vendors and other 
users (``Subscribers'') upon authorization by the Dissemination Agent.
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    \5\ Securities Exchange Act Release No. 57768 (May 2, 2008); 73 
FR 26181 (May 8, 2008) (SR-DTC-2007-10).
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    Currently, when a Dissemination Agent provides authorization, DTC 
disseminates the applicable NIIDS Data Elements directly to 
Subscribers. Under the Proposed Rule Change, the Dissemination Agents 
will continue to electronically input NIIDS Data Elements into DTC's 
underwriting system for New Issue Processing but DTC will make NIIDS 
Data Elements available to the NIIDS Disseminator, which will then deal 
directly with Subscribers.
    Additionally, because DTC will be a conduit of the NIIDS Data 
Elements and related information, and because DTC does not confirm the 
validity of the NIIDS Data Elements, the inputting of NIIDS Data 
Elements and the subsequent use thereof by any party will constitute a 
waiver of any and all claims (whether direct or indirect) against DTC 
and its affiliates and an agreement that DTC and its affiliates shall 
not be liable for any loss or damages in relation to the collection and 
any subsequent dissemination of NIIDS Data Elements and related 
information. In addition, any party that inputs NIIDS Data Elements or 
thereafter uses such data and related information agrees to indemnify 
and hold DTC and its affiliates harmless from and against any and all 
losses, damages, liabilities, costs, judgments, charges, and expenses 
incurred by such party arising out of or relating to the collection and 
subsequent dissemination of the NIIDS Data Elements.
    The date on which DTC will transfer NIIDS to the NIIDS Disseminator 
will be set forth in a subsequent Important Notice to DTC Participants.

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 \7\ 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.
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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 that the Proposed Rule Change is consistent 
with the requirements of the Act because transferring NIIDS from DTC to 
the NIIDS Disseminator will promote the prompt and accurate clearance 
and

[[Page 46887]]

settlement of securities transactions by providing for a more efficient 
allocation of DTC's resources.

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 \8\ and 
the rules and regulations thereunder.
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    \8\ 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-2014-08 be, and hereby is, 
approved.\9\
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    \9\ 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).

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. 2014-18879 Filed 8-8-14; 8:45 am]
BILLING CODE 8011-01-P