[Federal Register Volume 70, Number 226 (Friday, November 25, 2005)]
[Notices]
[Pages 71180-71181]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-6470]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52785; File No. SR-DTC-2005-17]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to a Systems Enhancement for the Processing of Information in
Its Restricted Deposit Service
November 16, 2005.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 11, 2005, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') a proposed rule change and on
November 16, 2005, amended the proposed rule change described in Items
I, II, and III below, which items have been prepared primarily by DTC.
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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change would effect a systems enhancement in
DTC's Restricted Deposit Service (``RDS'') to permit users to transmit
restricted stock information directly to DTC rather than manually
entering the information.
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.\2\
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\2\ 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
RDS allows DTC participants to use the depository to handle the
removal of restrictions on securities. DTC provides negotiability and
documentation review of deposited restricted securities, images and
delivers them to transfer agents, and arranges for their prompt
transfer into unrestricted securities. Restricted securities generally
are securities purchased in private placements directly from an issuer
before the company is public. They may also be stock acquired through a
corporate reorganization or acquisition, in return for services, or
from an original shareholder.\3\
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\3\ See Securities Exchange Act Release No. 41891 (September 20,
1999), 64 FR 52115 (September 27, 1999) [File No. SR-DTC-99-101].
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Currently, a participant seeking to initiate use of RDS will
transmit restricted securities deposit information to DTC through the
Restricted Deposit Service by Participant function (``RDSP'') of DTC's
Participant Terminal System. Until now the transmission of such
information has required the participant to manually input data
directly into RDSP; however, participants often have already input such
information into other applications and thus transmitting the
information to RDSP requires duplication of effort.
With this filing, DTC proposes to enhance this process to permit
participants to transfer such information directly from another
application containing the information to RDSP. The application used
for transmission of information to RDSP would either be one selected by
DTC or at the election of the participant another application so long
as such application meets technical requirements as determined by DTC.
The proposed change is consistent with section 17A of the Act \4\
and the rules and regulations thereunder applicable to DTC because it
is designed to remove impediments to and perfect a mechanism for the
prompt and accurate clearance ad settlement of securities transactions.
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\4\ 15 U.S.C. 78q-1.
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(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
Written comments relating to the proposed rule change have not yet
been solicited or received.
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
[[Page 71181]]
19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(4) \6\ thereunder
because the proposed rule effects a change in an existing service of
DTC that (i) does not adversely affect the safeguarding of securities
or funds in the custody or control of DTC or for which it is
responsible and (ii) does not significantly affect the respective
rights or obligations of DTC or persons using the service. At any time
within sixty days of the filing of the proposed 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.\7\
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\5\ 15 U.S.C. 78s(b)(3)(A)(iii).
\6\ 17 CFR 249.19b-4(f)(4)
\7\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on the date on which the last amendment to the proposed
rule change was filed with the Commission. 15 U.S.C. 78s(b)(3)(C).
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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, as amended, 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 [email protected]. Please include
File Number SR-DTC-2005-17 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-DTC-2005-17. 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. Copies of such filing also will be available
for inspection and copying at the principal office of DTC and on DTC's
Web site at https://login.dtcc.com/dtcorg/. 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-2005-17 and should be submitted on
or before December 16, 2005.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-6470 Filed 11-23-05; 8:45 am]
BILLING CODE 8010-01-P