Document ID: SEC-2009-0883-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; the Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Voluntary Participants Fund Deposit
Posted Date: 2009-07-02T04:00Z

[Federal Register: July 2, 2009 (Volume 74, Number 126)]
[Notices]               
[Page 31781-31782]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02jy09-103]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60173; File No. SR-DTC-2009-12]

 
Self-Regulatory Organizations; the Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Voluntary Participants Fund Deposit

June 25, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 12, 2009, 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 
primariy by DTC. DTC filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \2\ and Rule 19b-4(f)(4) \3\ 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 persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b-4(f)4).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change will allow a DTC participant to submit a 
request to have its Voluntary Participants Fund Deposit credited to its 
settlement account on the next business day following the request.

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 such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The Participants Fund is a mandatory risk management control for 
all DTC participants and is comprised of the Required Participants Fund 
Deposits, which are collected through DTC's Settlement System, and any 
Voluntary Participants Fund Deposits (collectively, ``Actual 
Participants Fund Deposits'' \4\) of all participants. Currently, 
participants may request a return of their Voluntary Participants Fund 
Deposit on a monthly basis by sending free form wire instructions to 
DTC through the Participants Fund Return Request application. DTC's 
Risk Management Department reviews each request and, if appropriate, 
DTC will make the return through Fedwire to the account requested on 
the wire instruction.
---------------------------------------------------------------------------

    \4\ The term ``Actual Participants Fund Deposit'' means the 
actual amount the participant has deposited to the Participants Fund 
including its Required Participants Fund Deposit and Voluntary 
Participants Fund Deposit.
---------------------------------------------------------------------------

    DTC's participants have requested the ability to also receive their 
Voluntary

[[Page 31782]]

Participants Fund Deposit by credit to their settlement accounts. 
Effective July 31, 2009, DTC will enhance its Participants Fund Return 
Request application to give each participant the ability to have its 
Voluntary Participants Fund Deposit credited to its settlement account 
on the next business day following the request. A decrease request must 
be submitted by 2:30 p.m. in order for a participant to be eligible to 
receive the credit the following business day. In addition, in an 
effort to effectively manage risk and to eliminate the need for 
participants to provide DTC with free form wire instructions, DTC will 
require that each participant wishing to receive its Voluntary 
Participants Fund Deposit through Fedwire must establish standing wire 
instructions with DTC's Account Administration Department for the 
return of any Voluntary Participants Fund Deposit going forward. Absent 
such standing wire instructions, DTC will automatically return any 
requested Voluntary Participants Fund Deposit by crediting the 
Participant's settlement account. Participants will continue to have 
the ability to withdraw their Voluntary Participants Fund Deposit on a 
monthly basis by sending free form wire instructions to DTC.
    DTC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \5\ and the rules and 
regulations thereunder because it will promote the prompt and accurate 
clearance and settlement of securities transactions by providing 
participants with a more efficient process for receiving their 
Voluntary Participants Fund Deposits.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    DTC has not solicited or received written comments relating to the 
proposed rule change. DTC will notify the Commission of any written 
comments it receives.

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 \6\ and Rule 19b-4(f)(4) \7\ 
thereunder because the proposed rule change effects a change in an 
existing service of DTC that (i) does not adversely affect the 
safeguarding of securities or funds in DTC's custody or control or for 
which it is responsible and (ii) does not significantly affect the 
respective rights of DTC or persons using the service. At any time 
within sixty days of the filing of such rule change, the Commission may 
summarily abrogate 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

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 e-mail to rule-comments@sec.gov. Please include 
File No. SR-DTC-2009-12 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 No. SR-DTC-2009-12. This file 
number should be included on the subject line if e-mail 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 inspection and 
copying in the Commission's Public Reference Section, 100 F Street, 
NE., Washington, DC 20549, on official business days between the hours 
of 10 a.m. and 3 p.m. Copies of such filings also will be available for 
inspection and copying at DTC's principal office and DTC's Web site at 
http://www.dtc.org/impNtc/mor/index.html. 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 No. SR-DTC-2009-12 and should be submitted on or 
before July 23, 2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-15612 Filed 7-1-09; 8:45 am]

BILLING CODE 8010-01-P