Document ID: SEC-2013-1221-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2013-07-03T04:00Z

[Federal Register Volume 78, Number 128 (Wednesday, July 3, 2013)]
[Notices]
[Pages 40234-40235]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15930]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69866; File No. SR-DTC-2013-07]

Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Harmonize and Clarify Language Within the DTC Service Guides Regarding 
Restrictions on Use of Information and Data Distributed by DTC

 June 27, 2013
    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 June 13, 2013, The Depository Trust Company (``DTC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change described in Items I, II and III below, which Items have been 
prepared primarily by DTC. DTC filed the proposal pursuant to Section 
19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(4)(i) \4\ thereunder so 
that the proposal was effective upon filing with the Commission. 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\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4)(i).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to harmonize and clarify 
language within the DTC Service Guides regarding restrictions on use of 
information and data distributed by DTC.

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.\5\
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    \5\ 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

(a) Proposal Overview
    As the central depository of securities in the U.S. securities 
markets, DTC is the registered holder of securities on the books of 
issuers of those securities (in its nominee name, Cede & Co.) and, 
accordingly, receives information and data relating to those securities 
from the issuers, for distribution to the DTC participants 
(``Participants'') holding interests in such securities on the books of 
DTC. As a further service to these Participants with respect to 
securities held by DTC for their benefit, DTC additionally compiles 
information from other sources to enhance data provided by it to its 
Participants. The information and data so received and compiled by DTC 
includes information such as descriptive reference data, names, country 
of incorporation, exchange, dividend announcement and corporate action 
announcement information on securities and other financial assets, as 
further described in the applicable Service Guides which are being 
amended by this rule filing, including, the Custody Service Guide, the 
Deposits Service Guide, the Dividend Service Guide, the Money Market 
Instruments Service Guide, the Redemptions Service Guide, the 
Reorganization Service Guide, the Settlement Service Guide and the 
Underwriting Service Guide (``Affected Service Guides''). Each of the 
Affected Service Guides, except the Deposits Service Guide and the 
Underwriting Service Guide, specifically provides that the information 
and data so received and compiled by DTC may not be redistributed to 
any other persons who, to a Participant's knowledge, use the 
information as a basis for producing and distributing data or related 
services. However, DTC has observed that these restrictions may require 
some clarification.
Proposed Rule Changes
    By this filing DTC will harmonize the language regarding 
restrictions on redistribution of data between all of the Affected 
Service Guides as the described restrictions apply to all data and 
information distributed by DTC through its services. In addition, DTC 
is amending the text of each of the Affected Service Guides to clarify 
that the data and information so received and compiled by DTC is 
proprietary to DTC and shall not be used for commercial purposes by 
Participants (or third parties acting on behalf of Participants) to 
which the data and information is distributed by DTC. To the extent any 
such person wishes to rightfully redistribute the data or information, 
a further amendment to the Affected Service Guides will direct 
interested Participants and third parties to DTCC Solutions, LLC, an 
affiliate of DTC which, under service level agreements with DTC, is 
licensed to further process and distribute such information and data 
pursuant to appropriate agreements with Participants and third parties.
(b) Statutory Basis
    The proposed rule change is consistent with the requirements of 
Section 17A(b)(3)(F) of the Act, and the rules and regulations 
thereunder applicable to DTC as it does not adversely affect the 
safeguarding of funds or securities in DTC's custody and control, or 
for which it is responsible, but, rather, clarifies the procedures set 
forth in the Affected Service Guides with respect to the use of data 
and information received and compiled by DTC.

(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.

[[Page 40235]]

(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 yet 
been 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) \6\ of the Act and Rule 19b-
4(f)(4)(i).\7\ 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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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(4)(i).
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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-2013-07 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-2013-07. 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 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 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/2013/dtc/SR-DTC-2013-07.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-2013-07 and should be submitted on or before July 24, 2013.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-15930 Filed 7-2-13; 8:45 am]
BILLING CODE 8011-01-P