[Federal Register Volume 75, Number 157 (Monday, August 16, 2010)]
[Notices]
[Pages 50032-50033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-20182]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62686; File No. SR-DTC-2010-10]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Promote Efficiencies Within the Legal Notice System
August 10, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 29, 2010, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change described
in Items I and II below, which items have been prepared primarily by
DTC. DTC filed the proposal 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 rule change from interested
parties.
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\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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change promotes efficiencies within the Legal
Notice System (``LENS'').
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.\4\
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\4\ 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
1. Purpose
In 1991, DTC created LENS to reduce the amount of paper that DTC
participants (``Participants'') receive in connection with DTC's
distribution of legal notices. At that time, notices were made
available through an electronic format through DTC's proprietary PTS
3270 terminal network (``PTS service'').\5\ In 2000, DTC enhanced LENS
by making the notices available over the Internet (``Web service'').\6\
The Web service improved the PTS service by: (i) Reducing the costs of
distribution, which cost was ultimately borne by Participants, (ii)
offering online viewing of notices and notice download capability, and
(iii) providing up-to-date functionality that a web environment
supports such as the option to receive e-mail alerts when new notices
are posted for CUSIPs specified by the user. The Web service is also
more accessible, requiring little or no training when Participants
bring on new staff.
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\5\ Securities Exchange Act Release No. 34-29291 (June 12,
1991), 56 FR 28190 (June 19, 1991).
\6\ Securities Exchange Act Release No. 34-43964 (February 14,
2001), 66 FR 1190 (February 22, 2001).
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Recently, DTC has been studying whether further enhancements and
efficiencies can be made to the LENS service. In an effort to reduce
the costs associated with LENS, DTC will end the use of the LENS
service through PTS effective August 27, 2010. DTC has notified
Participants currently using the LENS system through PTS by Important
Notice on a ``splash screen'' (displayed when Participants sign on to
PTS) and through its Relationship Management newsletter. Participants
will continue to have access to LENS through the Web service, which, as
mentioned previously, provides greater ease of use and functionality.
2. Statutory Basis
DTC believes that the proposed rule change is consistent with
Section 17A of the Act \7\ because it controls costs associated with a
service provided by DTC and therefore does not significantly affect the
respective rights or obligations of DTC or persons using the service.
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\7\ 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 were not and
are not intended to be 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)(iii) of the Act \8\ and Rule 19b-
4(f)(4) \9\ 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 and obligations of DTC or persons using
the service. 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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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(4).
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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 e-mail to [email protected]. Please include
File Number SR-DTC-2010-10 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-2010-10. 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
[[Page 50033]]
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 a.m. and 3
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/2010/dtc/2010-10.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-2010-10
and should be submitted on or before September 7, 2010.
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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-20182 Filed 8-13-10; 8:45 am]
BILLING CODE 8010-01-P