[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Notices]
[Pages 10539-10541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4763]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61620; File No. SR-DTC-2010-04]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Its Registered Transfer Agent Notification Methods for
Assumption or Termination of Services
March 1, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 3, 2010, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I, II, and
[[Page 10540]]
III 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 proposed rule change from interested persons.
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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 purpose of the proposed rule change is to modify the registered
transfer agent notification methods for assumption or termination of
services.
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.\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
Rule 17Ad-16 under the Act is designed to help reduce delays in
securities transfers. The rule requires registered transfer agents to
notify the appropriate qualified registered securities depository when
the transfer agent assumes or terminates services on behalf of an
issuer or when the transfer agent changes its name or address.
In 1995, DTC filed a proposed rule change with the Commission in
which DTC requested designation as the appropriate qualified registered
securities depository for purposes of Rule 17Ad-16 and also sought
approval of its procedures to receive and transmit such notices. The
Commission approved the rule filing and ordered that DTC be designated
as the appropriate qualified registered securities depository.\5\
Existing DTC Procedures allow transfer agents to provide their notices
to DTC by e-mail to DTC's Transfer Agent Services Mailbox, by fax, or
by mail.
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\5\ Securities Exchange Release Act No. 35378 (February 15,
1995), 60 FR 9875 (February 22, 1995) (File No. SR-DTC-95-02).
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To increase certainty regarding where transfer agents should direct
these notices to DTC, as well as to reduce costs and administrative
burdens, DTC proposes modifying its Procedures so that registered
transfer agents would only notify DTC by sending e-mails to DTC's
Transfer Agent Services Mailbox. The proposed changes to DTC's
Procedures can be found in Exhibit 5 to proposed rule change SR-DTC-
2010-04 at http://www.dtcc.com/downloads/legal/rule_filings/2010/dtc/2010-04.pdf
DTC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act \6\ and the rules and
regulations thereunder applicable to DTC because the proposed rule
change promotes efficiencies in the clearance and settlement of
securities transactions by modifying DTC's Procedures to expedite the
notification process for transfer agent changes and decrease transfer
delays.
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\6\ 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. 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 rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(4) \8\ thereunder
because the proposed rule change effects a change in an existing
service of a registered clearing agency that: (i) Does not adversely
affect the safeguarding of securities or funds in the custody or
control of the clearing agency or for which it is responsible and (ii)
does not significantly affect the respective rights or obligations of
the clearing agency 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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 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
Electronic comments may be submitted by using the
Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml), or
Send an e-mail to [email protected]. Please include
File No. SR-DTC-2010-04 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-2010-04. 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 Web site viewing and
printing 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 the principal office of DTC and on DTC's Web
site at http://www.dtcc.com/legal/rule_filings/dtc/2010.php.
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
[[Page 10541]]
submissions should refer to file number SR-DTC-2010-04 and should be
submitted on or before March 29, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-4763 Filed 3-5-10; 8:45 am]
BILLING CODE 8011-01-P