80 FR 25761 - Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a DTC Custody Service Fee Change
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 86 (May 5, 2015)
Federal Register Volume 80, Issue 86 (May 5, 2015)
| Page Range | 25761-25763 | |
| FR Document | 2015-10401 |
[Federal Register Volume 80, Number 86 (Tuesday, May 5, 2015)] [Notices] [Pages 25761-25763] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-10401] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74831; File No. SR-DTC-2015-004] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a DTC Custody Service Fee Change 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 17, 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. DTC filed the proposed rule change pursuant to section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(2) \4\ thereunder. The proposed rule change 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\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of a change to DTC's Fee Schedule (``Fee Schedule'') with respect to the DTC Custody Service.\5\ --------------------------------------------------------------------------- \5\ Each term not otherwise defined herein has its respective meaning as 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 proposed rule change would revise the Fee Schedule with respect to a fee charged to Participants that use the Custody Service, as described below. The Custody Service provides safe keeping and physical transaction processing for securities certificates and other items (collectively, ``certificates''), including certificates for securities and other assets not eligible for deposit in DTC's core depository services.\6\ In utilizing the Custody Service, Participants are able to leverage DTC's vault facility to outsource the safe [[Page 25762]] keeping and subsequent physical transaction processing for certificates. DTC charges each Participant a monthly fee (currently described in the Fee Schedule as a ``Long Position'' Fee) of $0.70 per certificate, per month (``Current Fee'') for safe keeping in the Custody Service. --------------------------------------------------------------------------- \6\ Please see the DTC Custody Service Guide at p. 5, available at http://www.dtcc.com/~/media/Files/Downloads/legal/service-guides/ Custody.pdf for an overview on Custody Service eligibility. --------------------------------------------------------------------------- Pursuant to the proposed rule change, in order to better align fees with the cost of offering the Custody Service, DTC would revise the Fee Schedule to replace the Current Fee with a reduced fee to be named the ``Custody Certificate Position'' Fee (``New Fee''). The New Fee would be a monthly fee calculated in accordance with a ``tiered'' fee structure taking into account the quantity of certificates held in the Custody Service for the Participant on a per account basis as follows: ------------------------------------------------------------------------ Amount ($) Conditions ------------------------------------------------------------------------ 0.61....................... Monthly fee per certificate, per account; fee applied for each certificate on deposit counted up to an aggregate quantity of 50,000 certificates for the account (i.e., certificates counted as 1- 50,000). 0.20....................... Monthly fee per certificate, per account; fee applied for each certificate on deposit counted in excess of an aggregate quantity of 50,000 up to an aggregate quantity of 100,000 certificates for the account (i.e., certificates counted as 50,001-100,000). 0.10....................... Monthly fee per certificate, per account; fee applied for each certificate on deposit counted in excess of an aggregate quantity of 100,000 certificates for the account (i.e., certificates counted as 100,001 and above). ------------------------------------------------------------------------ For example, a Participant with 200,000 certificates held in the Custody Service as of a month-end for one of its accounts would be charged New Fees for the month as follows for that account: ------------------------------------------------------------------------ Fee amount per Certificates counted by tier certificate Fee totals ------------------------------------------------------------------------ First 50,000 certificates counted. $0.61............... $30,500.00 Second 50,000 certificates counted 0.20................ 10,000.00 Remaining 100,000 certificates.... 0.10................ 10,000.00 --------------- Total New Fees for 50,500.00 Account. ------------------------------------------------------------------------ Since the New Fee would be charged on a per account basis, a Participant with multiple accounts would be charged a New Fee amount for each account, as applicable. The amount would be calculated based upon the quantity of certificates held for that account only (i.e., excluding certificates held for the other accounts of the Participant).\7\ --------------------------------------------------------------------------- \7\ Using the example above, a Participant with two accounts, each with a deposit of 200,000 certificates, would be charged a New Fee amount of $50,500.00 per account, or total New Fees of $101,000.00. --------------------------------------------------------------------------- Implementation Date The proposed fee change would take effect on May 1, 2015. 2. Statutory Basis The proposed rule change would better align DTC's fees with its costs of providing safe keeping for certificates in the Custody Service, and the proposed fee would apply equally in accordance with Participants' use of the Custody Service. Therefore, DTC believes the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to DTC, in particular section 17A(b)(3)(D) \8\ of the Act, which requires that DTC's Rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Participants. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78q-1(b)(3)(D). --------------------------------------------------------------------------- (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 The foregoing rule change has become effective pursuant to section 19(b)(3)(A) \9\ of the Act and paragraph (f) of Rule 19b-4 \10\ thereunder. 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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-2015-004 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-2015-004. 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 [[Page 25763]] 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-2015-004 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. 2015-10401 Filed 5-4-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices 25761
of the Act and Rule 19b–4(f)(6)(iii) Commission, 100 F Street NE., and Rule 19b–4 2 thereunder, notice is
thereunder. Washington, DC 20549–1090. hereby given that on April 17, 2015, The
A proposed rule change filed under All submissions should refer to File Depository Trust Company (‘‘DTC’’)
Rule 19b–4(f)(6) 19 normally does not Number SR–NYSEARCA–2015–32. This filed with the Securities and Exchange
become operative prior to 30 days after file number should be included on the Commission (‘‘Commission’’) the
the date of the filing. However, pursuant subject line if email is used. proposed rule change as described in
to Rule 19b4(f)(6)(iii),20 the Commission To help the Commission process and Items I, II and III below, which Items
may designate a shorter time if such review your comments more efficiently, have been prepared by DTC. DTC filed
action is consistent with the protection please use only one method. The the proposed rule change pursuant to
of investors and the public interest. The Commission will post all comments on section 19(b)(3)(A) 3 of the Act and Rule
Exchange has requested that the the Commission’s Internet Web site 19b–4(f)(2) 4 thereunder. The proposed
Commission waive the 30-day operative (http://www.sec.gov/rules/sro.shtml). rule change was effective upon filing
delay so that the proposal may become Copies of the submission, all subsequent with the Commission. The Commission
operative immediately upon filing and amendments, all written statements is publishing this notice to solicit
thereby enable Market Makers to with respect to the proposed rule comments on the proposed rule change
enhance their risk controls and risk change that are filed with the from interested persons.
management processes without delay. Commission, and all written I. Clearing Agency’s Statement of the
The Commission believes that waiving communications relating to the Terms of Substance of the Proposed
the 30-day operative delay is consistent proposed rule change between the Rule Change
with the protection of investors and the Commission and any person, other than
public interest. Therefore, the those that may be withheld from the The proposed rule change consists of
Commission hereby waives the 30-day public in accordance with the a change to DTC’s Fee Schedule (‘‘Fee
operative delay and designates the provisions of 5 U.S.C. 552, will be Schedule’’) with respect to the DTC
proposal effective upon filing.21 available for Web site viewing and Custody Service.5
At any time within 60 days of the printing in the Commission’s Public II. Clearing Agency’s Statement of the
filing of such proposed rule change, the Reference Room, 100 F Street NE., Purpose of, and Statutory Basis for, the
Commission summarily may Washington, DC 20549, on official Proposed Rule Change
temporarily suspend such rule change if business days between the hours of In its filing with the Commission,
it appears to the Commission that such 10:00 a.m. and 3:00 p.m. Copies of the DTC included statements concerning
action is necessary or appropriate in the filing will also be available for the purpose of and basis for the
public interest, for the protection of inspection and copying at the NYSE’s proposed rule change and discussed any
investors, or otherwise in furtherance of principal office and on its Internet Web comments it received on the proposed
the purposes of the Act. If the site at www.nyse.com. All comments rule change. The text of these statements
Commission takes such action, the received will be posted without change; may be examined at the places specified
Commission shall institute proceedings the Commission does not edit personal in Item IV below. DTC has prepared
under Section 19(b)(2)(B) 22 of the Act to identifying information from summaries, set forth in sections A, B,
determine whether the proposed rule submissions. You should submit only and C below, of the most significant
change should be approved or information that you wish to make aspects of such statements.
disapproved. available publicly. All submissions
should refer to File Number SR– (A) Clearing Agency’s Statement of the
IV. Solicitation of Comments
NYSEARCA–2015–32, and should be Purpose of, and Statutory Basis for, the
Interested persons are invited to submitted on or before May 26, 2015. Proposed Rule Change
submit written data, views, and For the Commission, by the Division of
arguments concerning the foregoing, 1. Purpose
Trading and Markets, pursuant to delegated
including whether the proposed rule authority.23 The proposed rule change would
change is consistent with the Act. Brent J. Fields,
revise the Fee Schedule with respect to
Comments may be submitted by any of a fee charged to Participants that use the
Secretary.
the following methods: Custody Service, as described below.
[FR Doc. 2015–10411 Filed 5–4–15; 8:45 am] The Custody Service provides safe
Electronic Comments BILLING CODE 8011–01–P keeping and physical transaction
• Use the Commission’s Internet processing for securities certificates and
comment form (http://www.sec.gov/ other items (collectively, ‘‘certificates’’),
SECURITIES AND EXCHANGE including certificates for securities and
rules/sro.shtml); or
COMMISSION
• Send an email to rule- other assets not eligible for deposit in
comments@sec.gov. Please include File [Release No. 34–74831; File No. SR–DTC– DTC’s core depository services.6 In
Number SR–NYSEARCA–2015–32 on 2015–004] utilizing the Custody Service,
the subject line. Participants are able to leverage DTC’s
Self-Regulatory Organizations; The vault facility to outsource the safe
Paper Comments Depository Trust Company; Notice of
• Send paper comments in triplicate Filing and Immediate Effectiveness of 2 17 CFR 240.19b–4.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
to Secretary, Securities and Exchange Proposed Rule Change Relating to a 3 15 U.S.C. 78s(b)(3)(A).
DTC Custody Service Fee Change 4 17 CFR 240.19b–4(f)(2).
5 Each term not otherwise defined herein has its
19 17 CFR 240.19b–4(f)(6). April 29, 2015. respective meaning as set forth in the DTC Rules
20 17 CFR 240.19b–4(f)(6)(iii).
Pursuant to section 19(b)(1) 1 of the (the ‘‘Rules’’), available at http://www.dtcc.com/
21 For purposes of waiving the 30-day operative legal/rules-and-procedures.aspx.
delay, the Commission has considered the proposed Securities Exchange Act of 1934 (‘‘Act’’) 6 Please see the DTC Custody Service Guide at p.
rule’s impact on efficiency, competition, and capital 5, available at http://www.dtcc.com/∼/media/Files/
formation. See 15 U.S.C. 78c(f). 23 17 CFR 200.30–3(a)(12). Downloads/legal/service-guides/Custody.pdf for an
22 15 U.S.C. 78s(b)(2)(B). 1 15 U.S.C. 78s(b)(1). overview on Custody Service eligibility.
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![Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices 25763
change that are filed with the will be announced and the winning 2. Eligibility Rules for Participating in
Commission, and all written design will be unveiled during a White the Competition: To be eligible to win
communications relating to the House ceremony on June 15, 2015. The a prize under this Logo Design
proposed rule change between the winning contestant will be notified in Competition, you—
Commission and any person, other than advance of the public announcement. (a) Must register to participate in the
those that may be withheld from the FOR FURTHER INFORMATION CONTACT: competition under the link designated
public in accordance with the Nagesh Rao, Chief Technologist, Office for that purpose by SBA on
provisions of 5 U.S.C. 552, will be of Investment and Innovation, U.S. challenge.gov;
available for Web site viewing and Small Business Administration, 409 (b) Must comply with all the
printing in the Commission’s Public Third Street SW., 6th Floor, requirements under this notice and the
Reference Room, 100 F Street NE., Washington, DC 20416, (202) 205–7576, America Competes Act of 2010 (Pub. L.
Washington, DC 20549 on official sbirlogochallenge@sba.gov. 111–358);
business days between the hours of SUPPLEMENTARY INFORMATION: (c) Must be a citizen or permanent
10:00 a.m. and 3:00 p.m. Copies of the Competition Details: resident of the United States before the
filing also will be available for 1. Subject of Competition: The SBA is submission period ends;
inspection and copying at the principal seeking a new design to be used as the (d) May not be a Federal employee
office of DTC and on DTCC’s Web site official logo of the SBIR/STTR Programs acting within the scope of your
(http://dtcc.com/legal/sec-rule- and the recently redesigned Web site employment; and,
filings.aspx). All comments received https://www.sbir.gov/. The SBIR/STTR (e) May not be an entity with an
will be posted without change; the Programs are extremely competitive and outstanding, unresolved financial
Commission does not edit personal encourage small businesses to engage in obligation to, or that is currently
identifying information from federally funded research and suspended or debarred by, the Federal
submissions. You should submit only development (R&D) through eleven government.
information that you wish to make Federal agencies with R&D needs. SBIR/ If you are under 18 years of age, you
available publicly. All submissions STTR awards enable small businesses to must have the permission of a parent or
should refer to File Number SR–DTC– explore their technological potential, legal guardian to participate. If you are
2015–004 and should be submitted on a Federal grantee, you may not use
stimulate innovation to meet federal
or before May 26, 2015. Federal funds to develop applications
R&D needs, and potentially profit from
For the Commission, by the Division of private-sector commercialization of for this competition unless such use is
Trading and Markets, pursuant to delegated developed technologies. Since inception consistent with the purpose of your
authority.11 grant award. If you are a Federal
in 1982, 150,000 awards totaling $40
Brent J. Fields, billion have been awarded to the small contractor, you may not use Federal
Secretary. firms that participate. The programs funds from a contract to develop or fund
[FR Doc. 2015–10401 Filed 5–4–15; 8:45 am] touch, catalyze and seed the creation of efforts in support of applications for this
BILLING CODE 8011–01–P STEM driven innovations in industries competition. You may use Federal
critical to the nation’s long term facilities or consult with Federal
competitiveness and growth—from employees during the competition if the
SMALL BUSINESS ADMINISTRATION nanotech to robotics to mobile facilities and employees are made
communications to genetic therapies to available to all contestants participating
Announcement of ‘‘America’s Seed clean energy to advanced weapons to in the competition on an equitable basis.
Fund’’ Logo Design Competition for space exploration. Many of today’s 3. Registration Process for
the Small Business Innovation technology giants—or their underlying Participants: Design competition
Research (SBIR) and Small Business technological components—received participants must submit their
Technology Transfer (STTR) Programs seed funding through SBIR or STTR ‘‘America’s Seed Fund’’ Logo Designs
AGENCY: U.S. Small Business awards via the eleven participating online using the link designated for that
Administration. Federal agencies; the Environmental purpose on challenge.gov, either by
ACTION: Notice. Protection Agency, the National filtering search criteria to ‘‘Small
Aeronautics and Space Administration, Business Administration’’ or going to
SUMMARY: The U.S. Small Business the National Science Foundation and https://www.sbir.gov/, where the link
Administration (SBA) announces the the U.S. Departments of Agriculture, will be posted. SBA will accept logo
‘‘America’s Seed Fund’’ Logo Design Commerce, Defense, Education, Energy, design competition submissions only
Competition, pursuant to the America Health and Human Services, Homeland through challenge.gov.
Competes Act, to encourage artists and Security and Transportation. (Visit the Things to keep in mind as you design
designers to create a thoughtful and sbir.gov Web site at https:// your ‘‘America’s Seed Fund’’ Logo:
imaginative visual representation of the www.sbir.gov/ for more information.) (a) Translating the common
government’s largest innovation effort The new logo will serve as the official programmatic elements of the SBIR and
focused on research-driven, innovative logo for the SBIR/STTR Programs to be STTR programs—to support scientific
and cutting-edge small businesses used for promotional and educational excellence and technological innovation
through the Small Business Innovation information, including but not limited through the investment of Federal
Research (SBIR) and Small Business to, the Programs’ Web site, SBA’s Web research funds in critical American
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Technology Transfer (STTR) Programs. site, participating Federal agency Web priorities to build a strong national
DATES: The submission period for sites, conferences, events, television, economy . . . one small business at a
entries begins 12:00 p.m. EDT, May 4, print, and other media outlets. The time. (For more information about the
2015 or when this notice is published if winning logo is intended to premiere at SBIR and STTR Programs, visit the Web
a later date and ends May 29, 2015 at the 2015 Tibbetts Awards ceremony on site at https://www.sbir.gov/.);
11:59 p.m. EDT. The winning contestant June 15, 2015, and be highlighted at the (b) Reflecting the importance of the
National SBIR Conference, June 15–17, SBIR/STTR Programs in an insightful
11 17 CFR 200.30–3(a)(12). 2015. and ultimately innovative manner; and,
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Document Created: 2015-12-16 07:53:33
Document Modified: 2015-12-16 07:53:33
| 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 25761 |
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