80 FR 25727 - Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of Proposed Rule Change Regarding the Acknowledgment of End-of-Day Net-Net Settlement Balances by Settling Banks
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 86 (May 5, 2015)
Federal Register Volume 80, Issue 86 (May 5, 2015)
| Page Range | 25727-25729 | |
| FR Document | 2015-10400 |
[Federal Register Volume 80, Number 86 (Tuesday, May 5, 2015)] [Notices] [Pages 25727-25729] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-10400] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74830; File No. SR-DTC-2015-003] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of Proposed Rule Change Regarding the Acknowledgment of End-of-Day Net-Net Settlement Balances by Settling Banks April 29, 2015. Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') and Rule 19b-4 \2\ thereunder, notice is hereby given that on April 15, 2015, 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 by DTC. 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\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of proposed revisions to the DTC Settlement Service Guide (``Guide'') to provide that any Settling Bank that does not timely acknowledge its end-of-day [[Page 25728]] net-net settlement balance \3\ or notify DTC of its refusal to settle for one or more Participants for which it is the designated Settling Bank, would be deemed to have acknowledged its end-of-day net-net settlement balance.\4\ DTC would also make other changes to the Guide as set forth below. --------------------------------------------------------------------------- \3\ The end-of-day net-net settlement balance for each Settling Bank reflects: (i) A net credit amount due to the Settling Bank from DTC, (ii) a net debit amount due from the Settling Bank to DTC, or (iii) a zero balance so that no payment is due to or from the Settling Bank. In accordance with the timeframes set forth in the Guide, DTC's end-of-day funds settlement process begins with the posting by DTC of ``final settlement figures'' at approximately 3:45 p.m. [sic] each Business Day unless extended. \4\ Terms not otherwise defined herein have the meaning set forth in the DTC Rules (the ``Rules''), available at http://www.dtcc.com/legal/rules-and-procedures.aspx. --------------------------------------------------------------------------- II. Clearing Agency'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) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this rule filing is to propose a rule change to mitigate a risk to DTC in settlement relating to a Settling Bank's failure to take the action required to: (i) Acknowledge its end-of-day net-net settlement balance, or (ii) notify DTC of a refusal to settle for any Participant for which it is the designated Settling Bank, by the Acknowledgment Cutoff Time (as defined below). Background The DTC end-of-day net settlement structure depends upon the use of Settling Banks.\5\ Each Participant must designate a Settling Bank to settle on its behalf. Any Participant that is a bank may settle for itself.\6\ A Settling Bank that settles for other Participants must acknowledge its end-of-day net-net settlement balance for the group of Participants for which it settles, or notify DTC if it refuses to settle for any Participant for which it is the designated Settling Bank, by the later of 4:15 p.m. [sic] and the time that is 30 minutes after Settling Bank end-of-day net-net settlement balances are first made available by DTC (``Acknowledgment Cutoff Time'').\7\ Therefore, DTC expects by the Acknowledgment Cutoff Time that each Settling Bank that settles for other Participants will affirmatively acknowledge its end-of-day net-net settlement balance, or notify DTC if it refuses to settle on behalf of one or more Participants for which it is the designated Settling Bank. If the Settling Bank notifies DTC that it refuses to settle for a Participant, DTC will recalculate the Settling Bank's net-net settlement balance by excluding the net settlement balance of the Participant for which the Settling Bank refused to settle and DTC will advise the Settling Bank accordingly.\8\ The Settling Bank must then immediately respond to DTC to acknowledge its revised net-net settlement balance (``Adjusted Balance'') and may not refuse to settle for any other Participant on that day. After the Acknowledgment Cutoff Time and any adjustments, DTC will prepare a file to be submitted to the Federal Reserve's National Settlement Service (``NSS'') reflecting the net debits or credits from and to all Settling Banks. DTC then utilizes NSS to transmit to the Federal Reserve Bank of New York the file to debit or credit the Settling Banks' Fed accounts. --------------------------------------------------------------------------- \5\ Please see the Guide at pp. 17-18, available at http:// www.dtcc.com/~/media/Files/Downloads/legal/service-guides/ Settlement.pdf for an overview of the end-of-day net settlement process. \6\ See Rule 9(B). \7\ A Settling Bank that settles only for itself is not required to provide an acknowledgement. No Settling Bank, whether it settles for only itself or for others, may refuse to settle its own net settlement balance. \8\ No Participant has the right to refuse to settle its net settlement balance. Any Participant for which its designated Settling Bank has refused to settle on its behalf remains obligated to DTC for the payment of any net debit balance and must make another arrangement to timely pay that amount by Fedwire. --------------------------------------------------------------------------- DTC needs certainty to complete settlement. If the Settling Bank does not respond to DTC with either an acknowledgment of its end-of-day net-net settlement balance or notification of a refusal to settle for a Participant for which it is the designated Settling Bank, this introduces uncertainty with respect to timely completion of settlement. Proposal To promote settlement certainty, DTC is proposing to treat a Settling Bank that fails to timely provide its acknowledgement of its end-of-day net-net settlement balance or notify DTC of its refusal to settle for one or more Participants for which it is the designated Settling Bank, as having acknowledged its end-of-day net-net settlement balance for the purpose of settlement processing. DTC proposes to modify the Guide to provide that a Settling Bank that: (i) Fails to affirmatively acknowledge its end-of-day net-net settlement balance, or (ii) does not notify DTC of its refusal to settle on behalf of a Participant or Participants for which it is the designated Settling Bank, by the Acknowledgement Cutoff Time would be deemed to have acknowledged its end-of-day net-net settlement balance. The Settling Bank's balance would then in the ordinary course of settlement processing, be debited from or credited to its designated Fed Account through the NSS process. Likewise, DTC proposes that the Guide provide that a Settling Bank that fails to immediately upon receipt acknowledge its Adjusted Balance, if any, would be deemed to have acknowledged its Adjusted Balance and the Adjusted Balance would then in the ordinary course of settlement processing, be debited from or credited to its designated Fed Account through the NSS process. DTC maintains flexibility to allow for a Settling Bank to request extra time if the Settling Bank has a problem relating to its connectivity with DTC or another good faith reason that it cannot affirmatively acknowledge or refuse, so long as the Settling Bank notifies DTC accordingly at or before the Acknowledgement Cutoff Time, or, in the case of an Adjusted Balance, it notifies DTC immediately where it is unable to affirmatively acknowledge. In this regard, the Guide would be updated to clarify that the Settling Bank is required to notify DTC of its request via a dedicated DTC Settlement phone ``hotline'' prior to the Acknowledgment Cutoff Time. As it does today, DTC would attempt to contact the Settling Bank if it does not receive a response in the form of: (i) An acknowledgment or refusal prior to the Acknowledgment Cutoff Time, or (ii) as applicable, an immediate acknowledgment of an Adjusted Balance.\9\ In addition, the Guide would be updated to clarify that each Settling Bank must ensure that it maintains accurate contact details with DTC so that DTC may contact the Settling Bank regarding settlement issues. Settling Banks must update any contact details by contacting their DTC Relationship Manager. --------------------------------------------------------------------------- \9\ DTC uses the most recent contact information provided by the Settling Bank to its DTC Relationship Manager for this purpose. --------------------------------------------------------------------------- Additionally, DTC would revise the Guide to: (i) Clarify that a Settling Bank that settles only for itself is not required [[Page 25729]] to acknowledge its net settlement balance; (ii) state that the existing flat fee charged for a Settling Bank's failure to timely settle its balance would additionally apply to a Settling Bank's failure to: (A) Affirmatively acknowledge its net-net settlement balance, or (B) notify DTC of its refusal to settle for one or more Participants for which it is the designated Settling Bank, by the Acknowledgment Cutoff Time; (iii) clarify the fees chargeable to a Participant for a failure to settle; (iv) delete references to a Settling Bank's failure to timely settle its settlement balance from being referred to as a ``failure to settle'' and remove references to related procedures as being ``failure-to-settle'' procedures, as this use of the terminology could be confused with an individual Participant's failure to meet its settlement obligation; (v) clarify Settling Bank and settlement processing timeframes as set forth in the Guide; (vi) consolidate text, as applicable, for consistency and to eliminate duplication; (vii) apply initial capitalization as appropriate for the terms ``Participant'' and ``Settling Bank'' where they are used as defined terms; and (viii) remove references to Participant Terminal System (PTS) functions, which are no longer used for this service. Implementation The effective date of the proposed rule change would be announced via a DTC Important Notice. 2. Statutory Basis The proposed rule change would reduce delays in the settlement process by allowing DTC to collect net debits and release net credits within scheduled timeframes despite the failure of a Settling Bank to affirmatively acknowledge its end-of-day net-net settlement balance or notify DTC of its refusal to settle for a Participant for which it is the designated Settling Bank on a timely basis. Therefore, the proposed rule change is consistent with the provisions of section 17A(b)(3)(F) \10\ of the Act, which requires that the rules of the clearing agency be designed, inter alia, to promote the prompt and accurate clearance and settlement of securities transactions. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- (B) Clearing Agency's Statement on Burden on Competition DTC does not believe that the proposed rule change would have any impact, or impose any burden, on competition. (C) Clearing Agency'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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove such proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-DTC-2015-003 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-DTC-2015-003. 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 the filing also will be available for inspection and copying at the principal office of DTC and on DTCC's Web site (http://dtcc.com/legal/sec-rule-filings.aspx). 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-2015-003 and should be submitted on or before May 26, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-10400 Filed 5-4-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices 25727
Information Bulletin of the special • Send an email to rule-comments@ Commission believes that these changes
characteristics and risks associated with sec.gov. Please include File Number SR– should facilitate arbitrage opportunities,
trading the Shares. Specifically, the NYSEArca–2014–89 on the subject line. which may result in narrower spreads
Information Bulletin will discuss the between the market prices of the Shares
Paper Comments
following: (a) The procedures for and the intraday values of the Funds’
purchases and redemptions of Shares in • Send paper comments in triplicate portfolios. Accordingly, the Commission
creation units (and that Shares are not to Secretary, Securities and Exchange finds good cause, pursuant to Section
individually redeemable); (b) NYSE Commission, 100 F Street NE., 19(b)(2) of the Act,30 to approve the
Arca Equities Rule 9.2(a), which Washington, DC 20549–1090. proposed rule change, as modified by
imposes a duty of due diligence on its All submissions should refer to File Amendments Nos. 1 and 2, on an
Equity Trading Permit Holders to learn Number SR–NYSEArca–2014–89. This accelerated basis.
the essential facts relating to every file number should be included on the
subject line if email is used. To help the VI. Conclusion
customer prior to trading the Shares; (c)
the risks involved in trading the Shares Commission process and review your It is therefore ordered, pursuant to
during the Opening and Late Trading comments more efficiently, please use Section 19(b)(2) of the Act,31 that the
Sessions when an updated Portfolio only one method. The Commission will proposed rule change as modified by
Indicative Value will not be calculated post all comments on the Commission’s Amendments Nos. 1 and 2 (SR–
or publicly disseminated; (d) how Internet Web site (http://www.sec.gov/ NYSEArca–2014–89) be, and it hereby
information regarding the Portfolio rules/sro.shtml). Copies of the is, approved on an accelerated basis.
Indicative Value and Disclosed Portfolio submission, all subsequent For the Commission, by the Division of
is disseminated; (e) the requirement that amendments, all written statements Trading and Markets, pursuant to delegated
Equity Trading Permit Holders deliver a with respect to the proposed rule authority.32
prospectus to investors purchasing change that are filed with the Brent J. Fields,
newly issued Shares prior to or Commission, and all written Secretary.
concurrently with the confirmation of a communications relating to the [FR Doc. 2015–10412 Filed 5–4–15; 8:45 am]
transaction; and (f) trading information. proposed rule change between the
BILLING CODE 8011–01–P
(6) For initial and continued listing, Commission and any person, other than
the Funds will be in compliance with those that may be withheld from the
Rule 10A–3 under the Act,28 as public in accordance with the SECURITIES AND EXCHANGE
provided by NYSE Arca Equities Rule provisions of 5 U.S.C. 552, will be COMMISSION
5.3. available for Web site viewing and
(7) Each of the Funds may hold up to printing in the Commission’s Public [Release No. 34–74830; File No. SR–DTC–
an aggregate amount of 15% of its net Reference Room, 100 F Street NE., 2015–003]
assets in illiquid assets (calculated at Washington, DC 20549, on official
business days between the hours of Self-Regulatory Organizations; The
the time of investment). Depository Trust Company; Notice of
(8) A minimum of 100,000 Shares for 10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for Filing of Proposed Rule Change
each of the Funds will be outstanding at
inspection and copying at the principal Regarding the Acknowledgment of
the commencement of trading on the
office of the Exchange. All comments End-of-Day Net-Net Settlement
Exchange.
received will be posted without change; Balances by Settling Banks
This approval order is based on all of
the Exchange’s representations, the Commission does not edit personal April 29, 2015.
including those set forth above and in identifying information from Pursuant to section 19(b)(1) 1 of the
Amendments Nos. 1 and 2. submissions. You should submit only Securities Exchange Act of 1934 (‘‘Act’’)
For the foregoing reasons, the information that you wish to make and Rule 19b–4 2 thereunder, notice is
Commission finds that the proposed available publicly. All submissions hereby given that on April 15, 2015, The
rule change, as modified by should refer to File Number SR– Depository Trust Company (‘‘DTC’’)
Amendments Nos. 1 and 2, is consistent NYSEArca–2014–89 and should be filed with the Securities and Exchange
with Section 6(b)(5) of the Act 29 and the submitted on or before May 26, 2015. Commission (‘‘Commission’’) the
rules and regulations thereunder V. Accelerated Approval of Proposed proposed rule change as described in
applicable to a national securities Rule Change as Modified by Items I, II and III below, which Items
exchange. Amendments Nos. 1 and 2 have been prepared by DTC. The
IV. Solicitation of Comments on The Commission finds good cause to Commission is publishing this notice to
Amendments Nos. 1 and 2 approve the proposed rule change, as solicit comments on the proposed rule
modified by Amendments Nos. 1 and 2, change from interested persons.
Interested persons are invited to
submit written data, views, and prior to the thirtieth day after the date I. Clearing Agency’s Statement of the
arguments concerning whether of publication of notice of the Terms of Substance of the Proposed
Amendments Nos. 1 and 2 are amendments in the Federal Register. Rule Change
consistent with the Act. Comments may Amendment No. 1 modifies the The proposed rule change consists of
be submitted by any of the following proposed rule change by, among other
proposed revisions to the DTC
things, limiting each Fund’s
asabaliauskas on DSK5VPTVN1PROD with NOTICES
methods: Settlement Service Guide (‘‘Guide’’) to
investments trade claims, junior bank
Electronic Comments provide that any Settling Bank that does
loans, exchange-traded and OTC-traded
not timely acknowledge its end-of-day
• Use the Commission’s Internet structured products, and certain
comment form (http://www.sec.gov/ privately placed and unregistered 30 15 U.S.C. 78s(b)(2).
rules/sro.shtml); or securities. Additionally, Amendment 31 15 U.S.C. 78s(b)(2).
No. 2 modifies the propose rule change 32 17 CFR 200.30–3(a)(12).
28 17 CFR 240.10A–3. by expanding the description of the 1 15 U.S.C. 78s(b)(1).
29 15 U.S.C. 78f(b)(5). Funds’ use of derivatives. The 2 17 CFR 240.19b–4.
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![25728 Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices
net-net settlement balance 3 or notify Participant for which it is the acknowledged its end-of-day net-net
DTC of its refusal to settle for one or designated Settling Bank, by the later of settlement balance for the purpose of
more Participants for which it is the 4:15 p.m. [sic] and the time that is 30 settlement processing. DTC proposes to
designated Settling Bank, would be minutes after Settling Bank end-of-day modify the Guide to provide that a
deemed to have acknowledged its end- net-net settlement balances are first Settling Bank that: (i) Fails to
of-day net-net settlement balance.4 DTC made available by DTC affirmatively acknowledge its end-of-
would also make other changes to the (‘‘Acknowledgment Cutoff Time’’).7 day net-net settlement balance, or (ii)
Guide as set forth below. Therefore, DTC expects by the does not notify DTC of its refusal to
Acknowledgment Cutoff Time that each settle on behalf of a Participant or
II. Clearing Agency’s Statement of the
Settling Bank that settles for other Participants for which it is the
Purpose of, and Statutory Basis for, the
Participants will affirmatively designated Settling Bank, by the
Proposed Rule Change
acknowledge its end-of-day net-net Acknowledgement Cutoff Time would
In its filing with the Commission, settlement balance, or notify DTC if it be deemed to have acknowledged its
DTC included statements concerning refuses to settle on behalf of one or more end-of-day net-net settlement balance.
the purpose of, and basis for, the Participants for which it is the The Settling Bank’s balance would then
proposed rule change and discussed any designated Settling Bank. If the Settling in the ordinary course of settlement
comments it received on the proposed Bank notifies DTC that it refuses to processing, be debited from or credited
rule change. The text of these statements settle for a Participant, DTC will to its designated Fed Account through
may be examined at the places specified recalculate the Settling Bank’s net-net the NSS process. Likewise, DTC
in Item IV below. DTC has prepared settlement balance by excluding the net proposes that the Guide provide that a
summaries, set forth in sections A, B, settlement balance of the Participant for Settling Bank that fails to immediately
and C below, of the most significant which the Settling Bank refused to settle upon receipt acknowledge its Adjusted
aspects of such statements. and DTC will advise the Settling Bank Balance, if any, would be deemed to
(A) Clearing Agency’s Statement of the accordingly.8 The Settling Bank must have acknowledged its Adjusted
Purpose of, and Statutory Basis for, the then immediately respond to DTC to Balance and the Adjusted Balance
Proposed Rule Change acknowledge its revised net-net would then in the ordinary course of
settlement balance (‘‘Adjusted Balance’’) settlement processing, be debited from
1. Purpose and may not refuse to settle for any or credited to its designated Fed
The purpose of this rule filing is to other Participant on that day. After the Account through the NSS process.
propose a rule change to mitigate a risk Acknowledgment Cutoff Time and any DTC maintains flexibility to allow for
to DTC in settlement relating to a adjustments, DTC will prepare a file to a Settling Bank to request extra time if
Settling Bank’s failure to take the action be submitted to the Federal Reserve’s the Settling Bank has a problem relating
required to: (i) Acknowledge its end-of- National Settlement Service (‘‘NSS’’) to its connectivity with DTC or another
day net-net settlement balance, or (ii) reflecting the net debits or credits from good faith reason that it cannot
notify DTC of a refusal to settle for any and to all Settling Banks. DTC then affirmatively acknowledge or refuse, so
Participant for which it is the utilizes NSS to transmit to the Federal long as the Settling Bank notifies DTC
designated Settling Bank, by the Reserve Bank of New York the file to accordingly at or before the
Acknowledgment Cutoff Time (as debit or credit the Settling Banks’ Fed Acknowledgement Cutoff Time, or, in
defined below). accounts. the case of an Adjusted Balance, it
DTC needs certainty to complete notifies DTC immediately where it is
Background settlement. If the Settling Bank does not unable to affirmatively acknowledge. In
The DTC end-of-day net settlement respond to DTC with either an this regard, the Guide would be updated
structure depends upon the use of acknowledgment of its end-of-day net- to clarify that the Settling Bank is
Settling Banks.5 Each Participant must net settlement balance or notification of required to notify DTC of its request via
designate a Settling Bank to settle on its a refusal to settle for a Participant for a dedicated DTC Settlement phone
behalf. Any Participant that is a bank which it is the designated Settling Bank, ‘‘hotline’’ prior to the Acknowledgment
may settle for itself.6 A Settling Bank this introduces uncertainty with respect Cutoff Time. As it does today, DTC
that settles for other Participants must to timely completion of settlement. would attempt to contact the Settling
acknowledge its end-of-day net-net Bank if it does not receive a response in
Proposal
settlement balance for the group of the form of: (i) An acknowledgment or
Participants for which it settles, or To promote settlement certainty, DTC refusal prior to the Acknowledgment
notify DTC if it refuses to settle for any is proposing to treat a Settling Bank that Cutoff Time, or (ii) as applicable, an
fails to timely provide its immediate acknowledgment of an
3 The end-of-day net-net settlement balance for acknowledgement of its end-of-day net- Adjusted Balance.9 In addition, the
each Settling Bank reflects: (i) A net credit amount net settlement balance or notify DTC of Guide would be updated to clarify that
due to the Settling Bank from DTC, (ii) a net debit its refusal to settle for one or more
amount due from the Settling Bank to DTC, or (iii) each Settling Bank must ensure that it
a zero balance so that no payment is due to or from Participants for which it is the maintains accurate contact details with
the Settling Bank. In accordance with the designated Settling Bank, as having DTC so that DTC may contact the
timeframes set forth in the Guide, DTC’s end-of-day
funds settlement process begins with the posting by 7 A Settling Bank that settles only for itself is not
Settling Bank regarding settlement
DTC of ‘‘final settlement figures’’ at approximately required to provide an acknowledgement. No
issues. Settling Banks must update any
asabaliauskas on DSK5VPTVN1PROD with NOTICES
3:45 p.m. [sic] each Business Day unless extended. Settling Bank, whether it settles for only itself or for contact details by contacting their DTC
4 Terms not otherwise defined herein have the
others, may refuse to settle its own net settlement Relationship Manager.
meaning set forth in the DTC Rules (the ‘‘Rules’’), balance. Additionally, DTC would revise the
available at http://www.dtcc.com/legal/rules-and- 8 No Participant has the right to refuse to settle
procedures.aspx. Guide to: (i) Clarify that a Settling Bank
its net settlement balance. Any Participant for
5 Please see the Guide at pp. 17–18, available at
which its designated Settling Bank has refused to that settles only for itself is not required
http://www.dtcc.com/∼/media/Files/Downloads/ settle on its behalf remains obligated to DTC for the
legal/service-guides/Settlement.pdf for an overview payment of any net debit balance and must make 9 DTC uses the most recent contact information
of the end-of-day net settlement process. another arrangement to timely pay that amount by provided by the Settling Bank to its DTC
6 See Rule 9(B). Fedwire. Relationship Manager for this purpose.
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![Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices 25729
to acknowledge its net settlement (C) Clearing Agency’s Statement on those that may be withheld from the
balance; (ii) state that the existing flat Comments on the Proposed Rule public in accordance with the
fee charged for a Settling Bank’s failure Change Received From Members, provisions of 5 U.S.C. 552, will be
to timely settle its balance would Participants, or Others available for Web site viewing and
additionally apply to a Settling Bank’s Written comments relating to the printing in the Commission’s Public
failure to: (A) Affirmatively proposed rule change have not yet been Reference Room, 100 F Street NE.,
acknowledge its net-net settlement solicited or received. DTC will notify Washington, DC 20549 on official
balance, or (B) notify DTC of its refusal the Commission of any written business days between the hours of
to settle for one or more Participants for comments received by DTC. 10:00 a.m. and 3:00 p.m. Copies of the
which it is the designated Settling Bank, filing also will be available for
by the Acknowledgment Cutoff Time; III. Date of Effectiveness of the
inspection and copying at the principal
(iii) clarify the fees chargeable to a Proposed Rule Change and Timing for
office of DTC and on DTCC’s Web site
Participant for a failure to settle; (iv) Commission Action
(http://dtcc.com/legal/sec-rule-
delete references to a Settling Bank’s Within 45 days of the date of filings.aspx). All comments received
failure to timely settle its settlement publication of this notice in the Federal
balance from being referred to as a will be posted without change; the
Register or within such longer period Commission does not edit personal
‘‘failure to settle’’ and remove references up to 90 days (i) as the Commission may
to related procedures as being ‘‘failure- identifying information from
designate if it finds such longer period submissions. You should submit only
to-settle’’ procedures, as this use of the to be appropriate and publishes its
terminology could be confused with an information that you wish to make
reasons for so finding or (ii) as to which
individual Participant’s failure to meet available publicly. All submissions
the self-regulatory organization
its settlement obligation; (v) clarify should refer to File Number SR–DTC–
consents, the Commission will:
Settling Bank and settlement processing 2015–003 and should be submitted on
(A) By order approve or disapprove
timeframes as set forth in the Guide; (vi) such proposed rule change, or or before May 26, 2015.
consolidate text, as applicable, for (B) institute proceedings to determine For the Commission, by the Division of
consistency and to eliminate whether the proposed rule change Trading and Markets, pursuant to delegated
duplication; (vii) apply initial should be disapproved. authority.11
capitalization as appropriate for the Brent J. Fields,
terms ‘‘Participant’’ and ‘‘Settling Bank’’ IV. Solicitation of Comments
Secretary.
where they are used as defined terms; Interested persons are invited to
and (viii) remove references to [FR Doc. 2015–10400 Filed 5–4–15; 8:45 am]
submit written data, views and
Participant Terminal System (PTS) arguments concerning the foregoing, BILLING CODE 8011–01–P
functions, which are no longer used for including whether the proposed rule
this service. change is consistent with the Act.
Comments may be submitted by any of SECURITIES AND EXCHANGE
Implementation COMMISSION
the following methods:
The effective date of the proposed
rule change would be announced via a Electronic Comments [Release No. 34–74839; File No. SR–
DTC Important Notice. • Use the Commission’s Internet NYSEArca–2015–23]
2. Statutory Basis comment form (http://www.sec.gov/
rules/sro.shtml); or Self-Regulatory Organizations; NYSE
The proposed rule change would • Send an email to rule-comments@ Arca, Inc.; Notice of Filing of Proposed
reduce delays in the settlement process sec.gov. Please include File Number SR– Rule Change Relating to Listing and
by allowing DTC to collect net debits DTC–2015–003 on the subject line. Trading of Shares of ALPS Enhanced
and release net credits within scheduled Put Write Strategy ETF under NYSE
Paper Comments
timeframes despite the failure of a Arca Equities Rule 8.600
Settling Bank to affirmatively • Send paper comments in triplicate
acknowledge its end-of-day net-net to Brent J. Fields, Secretary, Securities April 29, 2015.
settlement balance or notify DTC of its and Exchange Commission, 100 F Street Pursuant to Section 19(b)(1) 1 of the
refusal to settle for a Participant for NE., Washington, DC 20549–1090. Securities Exchange Act of 1934
which it is the designated Settling Bank All submissions should refer to File (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
on a timely basis. Therefore, the Number SR–DTC–2015–003. This file notice is hereby given that, on April 15,
proposed rule change is consistent with number should be included on the 2015, NYSE Arca, Inc. (‘‘Exchange’’ or
the provisions of section 17A(b)(3)(F) 10 subject line if email is used. To help the ‘‘NYSE Arca’’) filed with the Securities
of the Act, which requires that the rules Commission process and review your and Exchange Commission
of the clearing agency be designed, inter comments more efficiently, please use (‘‘Commission’’) the proposed rule
alia, to promote the prompt and only one method. The Commission will change as described in Items I, II, and
accurate clearance and settlement of post all comments on the Commission’s III below, which Items have been
securities transactions. Internet Web site (http://www.sec.gov/ prepared by the Exchange. The
rules/sro.shtml). Copies of the
asabaliauskas on DSK5VPTVN1PROD with NOTICES
(B) Clearing Agency’s Statement on Commission is publishing this notice to
Burden on Competition submission, all subsequent
solicit comments on the proposed rule
amendments, all written statements
DTC does not believe that the change from interested persons.
with respect to the proposed rule
proposed rule change would have any change that are filed with the
impact, or impose any burden, on Commission, and all written 11 17 CFR 200.30–3(a)(12).
competition. communications relating to the 1 15 U.S.C.78s(b)(1).
proposed rule change between the 2 15 U.S.C. 78a.
10 15 U.S.C. 78q–1(b)(3)(F). Commission and any person, other than 3 17 CFR 240.19b–4.
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Document Created: 2015-12-16 07:53:59
Document Modified: 2015-12-16 07:53:59
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 25727 |
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