81_FR_2280 81 FR 2270 - Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the DTC Custody Service Guide To Codify Its Current Procedures for Assigning a Value to Custody Service Securities for Shipping Insurance Valuation Purposes

81 FR 2270 - Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the DTC Custody Service Guide To Codify Its Current Procedures for Assigning a Value to Custody Service Securities for Shipping Insurance Valuation Purposes

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 10 (January 15, 2016)

Page Range2270-2271
FR Document2016-00646

Federal Register, Volume 81 Issue 10 (Friday, January 15, 2016)
[Federal Register Volume 81, Number 10 (Friday, January 15, 2016)]
[Notices]
[Pages 2270-2271]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00646]



[[Page 2270]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76870; File No. SR-DTC-2016-001]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the DTC Custody Service Guide To Codify Its Current Procedures 
for Assigning a Value to Custody Service Securities for Shipping 
Insurance Valuation Purposes

January 11, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on January 4, 2016, 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) of the Act \3\ and subparagraph (f)(1) of Rule 19b-
4 thereunder.\4\ 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.
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    \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)(1).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change would update DTC's Custody Service Guide 
(``Custody Guide'') to codify DTC's current procedures for assigning a 
value to securities held in DTC's Custody Service for shipping 
insurance valuation purposes, as more fully described below.\5\ The 
text of the proposed rule change to update the Custody Guide is set 
forth in Section II(A)(1) below.
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    \5\ Each term not otherwise defined herein has its respective 
meaning as set forth in the DTC Rules, By-laws, and Organization 
Certificate (the ``Rules''), available at http://www.dtcc.com/legal/rules-and-procedures.aspx, and the DTC Custody Service Guide, 
available at http://www.dtcc.com/~/media/Files/Downloads/legal/
service-guides/Custody.pdf.
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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 the proposed rule filing submitted by DTC is to 
update the text of the Custody Guide to codify its current procedures 
for assigning a value to securities held in DTC's Custody Service for 
shipping insurance valuation purposes only, as described below.
    The Custody Service enables Participants that hold physical 
securities that are not presently eligible for book-entry services at 
DTC to deposit those securities with DTC for safekeeping and certain 
limited depository services.\6\ Generally, DTC does not price 
securities held in DTC's Custody Service.\7\ However, DTC applies 
pricing when instructed by a Participant to ship a Custody Service 
security from DTC to the Participant or to the Participant's customers 
or agents, to ensure that its applicable insurance coverage limit is 
not exceeded. In response to internal review and to be more transparent 
with respect to its current procedures for assigning a value to 
securities held in its Custody Service, DTC is proposing to codify its 
current practice with respect to assigning such values. Following is an 
excerpt from the applicable section in the Custody Guide, text which is 
in bold and underlined indicates additions to the Custody Guide 
pursuant to the proposed rule change:
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    \6\ See Custody Guide at pp. 5 and 12 for the types of 
securities and assets eligible for deposit to the Custody Service, 
supra note 5. DTC holds certain non-standard assets in its Custody 
Service, however, those are not the subject of this proposed rule 
change.
    \7\ DTC typically only prices securities that are eligible for 
book-entry services.
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Insurance and Replacement of Certificates

    DTC carries insurance relating to the replacement of certificates 
lost in transit or on its premises. Based on DTC's insurance coverage, 
it is recommended that the depositing Participant review its holdings 
and, when possible, submit these high value certificates for breakdowns 
so that the dollar value remains within DTC's insurance limits.
    Prior to shipping high value certificates, when possible, 
arrangements are made with transfer agents or issuers to cancel these 
certificates before shipment. DTC limits its liability for loss with 
respect to high-value certificates to the Limit, as defined below; 
however DTC's liability for loss is not limited to the Limit to the 
extent that such loss is caused directly by DTC's gross negligence or 
willful misconduct; provided that in no event shall DTC be liable for 
any special, consequential, exemplary, incidental, or punitive damages 
in this regard. The ``Limit'' is defined as DTC's insurance coverage at 
the time of the loss in question, provided that with respect to a loss 
during shipment, the Limit is the lesser of DTC's insurance coverage at 
the time of the loss in question and $100 million. Participants may 
request from time to time information regarding the Limit.
    DTC has internal procedures to control, safeguard and limit the 
risk of potential loss of a high value certificate. For example, DTC 
staff will work with the depositing Participant's staff to breakdown 
the deposit into smaller workable denominations so that they fall 
within a more acceptable range of value. In addition, where possible, 
arrangements will be made with transfer agents/issuers to cancel these 
certificates prior to their shipment.

Shipping Insurance Valuation

    Securities held by Participants through the Custody Service are 
segregated from DTC's fungible mass held by Cede & Co., are not 
eligible for book-entry services, and cannot be used as collateral for 
DTC transactions.
    DTC does not generally price securities held in the Custody 
Service. However, when DTC is instructed by a Participant to ship 
securities held in the Custody Service, DTC assigns a price to the 
securities being shipped to ensure that DTC's Limit is not exceeded 
when shipping certificates. If a security being shipped is also a full 
depository eligible security, DTC will assign the full depository 
eligible security's previous day's closing price, to ensure that its 
Limit is not being exceeded. When DTC does not have a price for a 
Custody Service security based on the price of a full depository 
eligible security, and DTC is instructed by its Participant to ship the 
security, DTC will assign a price as follows:
     DTC will use a default price of $1.00 per share for equity 
issues and face value for debt issues (each, ``Default Pricing'').
     Where Default Pricing would otherwise apply, Participants 
may instead provide DTC with a price for DTC to assign to the security 
for shipping insurance valuation purposes. DTC's assignment of that 
price for

[[Page 2271]]

shipping insurance valuation purposes shall not be deemed as an 
agreement to the price or valuation of the security, and in no event 
shall DTC be bound or required to use such price for this or any other 
purpose.
    Default Pricing and Participant-provided pricing are subject to 
DTC's internal procedures to control, safeguard and limit the risk of 
potential loss of a high value certificate, as set forth above. 
Participants should consider use of their own insurance for high value 
certificates in excess of the Limit or in appropriate circumstances 
they deem to be appropriate, in their discretion.

Implementation Date

    The proposed rule change would become effective immediately.
2. Statutory Basis
    Section 17A(b)(3)(F) of the Act requires that the rules of the 
clearing agency be designed, inter alia, to assure the safeguarding of 
securities and funds which are in the custody or control of the 
clearing agency or for which it is responsible.\8\ By codifying DTC's 
current Default Pricing practice and the option for Participants to 
provide their own pricing, the proposed rule change provides 
transparency to DTC's shipping insurance valuation procedure for 
Custody Service securities, facilitating Participants' consideration of 
their insurance options for such securities. Therefore, DTC believes 
that the proposed rule change would aid in assuring the safeguarding of 
Custody Service securities and is consistent with the requirements of 
the Act, in particular, Section 17A(b)(3)(F) of the Act, cited above.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Rule 17Ad-22(d)(15) promulgated under the Act requires, inter alia, 
that a clearing agency establish, implement, maintain and enforce 
written policies and procedures reasonably designed to state to its 
participants the clearing agency's obligations with respect to physical 
deliveries and identify and manage the risks from these obligations.\9\ 
DTC believes the proposed rule change is consistent with this provision 
because codifying DTC's current practice would provide transparency 
with respect to DTC's procedures for assigning a value to physical 
securities held in the Custody Service for shipping insurance valuation 
purposes, and therefore is reasonably designed to identify and manage 
risks associated with shipments of Custody Service securities.
---------------------------------------------------------------------------

    \9\ 17 CFR 240.17Ad-22(d)(15).
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(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 because it merely codifies 
DTC's current practice with respect to shipping insurance valuation of 
Custody Service securities and DTC's identification and management of 
the risks therein and does not otherwise impact users of DTC's 
services.

(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 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) of the Act \10\ and subparagraph (f)(1) of Rule 19b-4 
thereunder.\11\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

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 email to [email protected]. Please include 
File Number SR-DTC-2016-001 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-DTC-2016-001. 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-2016-001 and should be 
submitted on or before February 5, 2016.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00646 Filed 1-14-16; 8:45 am]
BILLING CODE 8011-01-P



                                                  2270                            Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices

                                                  SECURITIES AND EXCHANGE                                  rule change. The text of these statements              certificates before shipment. DTC limits
                                                  COMMISSION                                               may be examined at the places specified                its liability for loss with respect to high-
                                                                                                           in Item IV below. DTC has prepared                     value certificates to the Limit, as
                                                  [Release No. 34–76870; File No. SR–DTC–                  summaries, set forth in sections A, B,                 defined below; however DTC’s liability
                                                  2016–001]                                                and C below, of the most significant                   for loss is not limited to the Limit to the
                                                                                                           aspects of such statements.                            extent that such loss is caused directly
                                                  Self-Regulatory Organizations; The
                                                                                                                                                                  by DTC’s gross negligence or willful
                                                  Depository Trust Company; Notice of                      (A) Clearing Agency’s Statement of the
                                                                                                                                                                  misconduct; provided that in no event
                                                  Filing and Immediate Effectiveness of                    Purpose of, and Statutory Basis for, the
                                                                                                                                                                  shall DTC be liable for any special,
                                                  Proposed Rule Change To Amend the                        Proposed Rule Change
                                                                                                                                                                  consequential, exemplary, incidental, or
                                                  DTC Custody Service Guide To Codify
                                                                                                           1. Purpose                                             punitive damages in this regard. The
                                                  Its Current Procedures for Assigning a
                                                                                                              The purpose of the proposed rule                    ‘‘Limit’’ is defined as DTC’s insurance
                                                  Value to Custody Service Securities for
                                                                                                           filing submitted by DTC is to update the               coverage at the time of the loss in
                                                  Shipping Insurance Valuation
                                                                                                           text of the Custody Guide to codify its                question, provided that with respect to
                                                  Purposes
                                                                                                           current procedures for assigning a value               a loss during shipment, the Limit is the
                                                  January 11, 2016.                                        to securities held in DTC’s Custody                    lesser of DTC’s insurance coverage at
                                                     Pursuant to Section 19(b)(1) of the                   Service for shipping insurance valuation               the time of the loss in question and $100
                                                  Securities Exchange Act of 1934                          purposes only, as described below.                     million. Participants may request from
                                                  (‘‘Act’’) 1 and Rule 19b–4 thereunder,2                     The Custody Service enables                         time to time information regarding the
                                                  notice is hereby given that on January 4,                Participants that hold physical                        Limit.
                                                  2016, The Depository Trust Company                       securities that are not presently eligible                DTC has internal procedures to
                                                  (‘‘DTC’’) filed with the Securities and                  for book-entry services at DTC to                      control, safeguard and limit the risk of
                                                  Exchange Commission (‘‘Commission’’)                     deposit those securities with DTC for                  potential loss of a high value certificate.
                                                  the proposed rule change as described                    safekeeping and certain limited                        For example, DTC staff will work with
                                                  in Items I, II and III below, which Items                depository services.6 Generally, DTC                   the depositing Participant’s staff to
                                                  have been prepared by DTC. DTC filed                     does not price securities held in DTC’s                breakdown the deposit into smaller
                                                  the proposed rule change pursuant to                     Custody Service.7 However, DTC                         workable denominations so that they
                                                  Section 19(b)(3)(A) of the Act 3 and                     applies pricing when instructed by a                   fall within a more acceptable range of
                                                                                                           Participant to ship a Custody Service                  value. In addition, where possible,
                                                  subparagraph (f)(1) of Rule 19b–4
                                                                                                           security from DTC to the Participant or                arrangements will be made with transfer
                                                  thereunder.4 The proposed rule change
                                                                                                           to the Participant’s customers or agents,              agents/issuers to cancel these
                                                  was effective upon filing with the
                                                                                                           to ensure that its applicable insurance                certificates prior to their shipment.
                                                  Commission. The Commission is
                                                  publishing this notice to solicit                        coverage limit is not exceeded. In                     Shipping Insurance Valuation
                                                  comments on the proposed rule change                     response to internal review and to be
                                                                                                                                                                     Securities held by Participants
                                                  from interested persons.                                 more transparent with respect to its
                                                                                                                                                                  through the Custody Service are
                                                                                                           current procedures for assigning a value
                                                  I. Clearing Agency’s Statement of the                                                                           segregated from DTC’s fungible mass
                                                                                                           to securities held in its Custody Service,
                                                  Terms of Substance of the Proposed                       DTC is proposing to codify its current                 held by Cede & Co., are not eligible for
                                                  Rule Change                                              practice with respect to assigning such                book-entry services, and cannot be used
                                                                                                           values. Following is an excerpt from the               as collateral for DTC transactions.
                                                     The proposed rule change would                                                                                  DTC does not generally price
                                                  update DTC’s Custody Service Guide                       applicable section in the Custody Guide,
                                                                                                                                                                  securities held in the Custody Service.
                                                  (‘‘Custody Guide’’) to codify DTC’s                      text which is in bold and underlined
                                                                                                                                                                  However, when DTC is instructed by a
                                                  current procedures for assigning a value                 indicates additions to the Custody
                                                                                                                                                                  Participant to ship securities held in the
                                                  to securities held in DTC’s Custody                      Guide pursuant to the proposed rule
                                                                                                                                                                  Custody Service, DTC assigns a price to
                                                  Service for shipping insurance valuation                 change:
                                                                                                                                                                  the securities being shipped to ensure
                                                  purposes, as more fully described                        Insurance and Replacement of                           that DTC’s Limit is not exceeded when
                                                  below.5 The text of the proposed rule                    Certificates                                           shipping certificates. If a security being
                                                  change to update the Custody Guide is                                                                           shipped is also a full depository eligible
                                                  set forth in Section II(A)(1) below.                        DTC carries insurance relating to the
                                                                                                           replacement of certificates lost in transit            security, DTC will assign the full
                                                  II. Clearing Agency’s Statement of the                   or on its premises. Based on DTC’s                     depository eligible security’s previous
                                                  Purpose of, and Statutory Basis for, the                 insurance coverage, it is recommended                  day’s closing price, to ensure that its
                                                  Proposed Rule Change                                     that the depositing Participant review                 Limit is not being exceeded. When DTC
                                                                                                           its holdings and, when possible, submit                does not have a price for a Custody
                                                    In its filing with the Commission,
                                                                                                           these high value certificates for                      Service security based on the price of a
                                                  DTC included statements concerning
                                                                                                           breakdowns so that the dollar value                    full depository eligible security, and
                                                  the purpose of, and basis for, the
                                                                                                           remains within DTC’s insurance limits.                 DTC is instructed by its Participant to
                                                  proposed rule change and discussed any
                                                                                                              Prior to shipping high value                        ship the security, DTC will assign a
                                                  comments it received on the proposed
                                                                                                           certificates, when possible,                           price as follows:
                                                    1 15                                                   arrangements are made with transfer                       • DTC will use a default price of
                                                         U.S.C. 78s(b)(1).
                                                    2 17 CFR 240.19b–4.                                    agents or issuers to cancel these                      $1.00 per share for equity issues and
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                    3 15 U.S.C. 78s(b)(3)(A).                                                                                     face value for debt issues (each,
                                                    4 17 CFR 240.19b–4(f)(1).                                 6 See Custody Guide at pp. 5 and 12 for the types   ‘‘Default Pricing’’).
                                                    5 Each term not otherwise defined herein has its       of securities and assets eligible for deposit to the      • Where Default Pricing would
                                                  respective meaning as set forth in the DTC Rules,        Custody Service, supra note 5. DTC holds certain       otherwise apply, Participants may
                                                  By-laws, and Organization Certificate (the ‘‘Rules’’),   non-standard assets in its Custody Service,            instead provide DTC with a price for
                                                  available at http://www.dtcc.com/legal/rules-and-        however, those are not the subject of this proposed
                                                  procedures.aspx, and the DTC Custody Service             rule change.                                           DTC to assign to the security for
                                                  Guide, available at http://www.dtcc.com/∼/media/            7 DTC typically only prices securities that are     shipping insurance valuation purposes.
                                                  Files/Downloads/legal/service-guides/Custody.pdf.        eligible for book-entry services.                      DTC’s assignment of that price for


                                             VerDate Sep<11>2014   20:01 Jan 14, 2016   Jkt 238001   PO 00000   Frm 00111   Fmt 4703   Sfmt 4703   E:\FR\FM\15JAN1.SGM   15JAN1


                                                                                 Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices                                                  2271

                                                  shipping insurance valuation purposes                   associated with shipments of Custody                   number should be included on the
                                                  shall not be deemed as an agreement to                  Service securities.                                    subject line if email is used. To help the
                                                  the price or valuation of the security,                                                                        Commission process and review your
                                                                                                          (B) Clearing Agency’s Statement on
                                                  and in no event shall DTC be bound or                                                                          comments more efficiently, please use
                                                                                                          Burden on Competition
                                                  required to use such price for this or any                                                                     only one method. The Commission will
                                                  other purpose.                                             DTC does not believe that the                       post all comments on the Commission’s
                                                                                                          proposed rule change would have any                    Internet Web site (http://www.sec.gov/
                                                    Default Pricing and Participant-                      impact, or impose any burden, on
                                                  provided pricing are subject to DTC’s                                                                          rules/sro.shtml). Copies of the
                                                                                                          competition because it merely codifies                 submission, all subsequent
                                                  internal procedures to control,                         DTC’s current practice with respect to
                                                  safeguard and limit the risk of potential                                                                      amendments, all written statements
                                                                                                          shipping insurance valuation of Custody                with respect to the proposed rule
                                                  loss of a high value certificate, as set                Service securities and DTC’s
                                                  forth above. Participants should                                                                               change that are filed with the
                                                                                                          identification and management of the                   Commission, and all written
                                                  consider use of their own insurance for                 risks therein and does not otherwise
                                                  high value certificates in excess of the                                                                       communications relating to the
                                                                                                          impact users of DTC’s services.                        proposed rule change between the
                                                  Limit or in appropriate circumstances
                                                                                                          (C) Clearing Agency’s Statement on                     Commission and any person, other than
                                                  they deem to be appropriate, in their
                                                                                                          Comments on the Proposed Rule                          those that may be withheld from the
                                                  discretion.
                                                                                                          Change Received From Members,                          public in accordance with the
                                                  Implementation Date                                     Participants, or Others                                provisions of 5 U.S.C. 552, will be
                                                                                                                                                                 available for Web site viewing and
                                                    The proposed rule change would                          Written comments relating to the                     printing in the Commission’s Public
                                                  become effective immediately.                           proposed rule change have not been                     Reference Room, 100 F Street NE.,
                                                                                                          solicited or received. DTC will notify                 Washington, DC 20549 on official
                                                  2. Statutory Basis                                      the Commission of any written                          business days between the hours of
                                                                                                          comments received by DTC.                              10:00 a.m. and 3:00 p.m. Copies of the
                                                     Section 17A(b)(3)(F) of the Act
                                                  requires that the rules of the clearing                 III. Date of Effectiveness of the                      filing also will be available for
                                                  agency be designed, inter alia, to assure               Proposed Rule Change and Timing for                    inspection and copying at the principal
                                                  the safeguarding of securities and funds                Commission Action                                      office of DTC and on DTCC’s Web site
                                                  which are in the custody or control of                                                                         (http://dtcc.com/legal/sec-rule-
                                                                                                             The foregoing rule change has become
                                                  the clearing agency or for which it is                                                                         filings.aspx). All comments received
                                                                                                          effective pursuant to Section 19(b)(3)(A)
                                                  responsible.8 By codifying DTC’s                                                                               will be posted without change; the
                                                                                                          of the Act 10 and subparagraph (f)(1) of
                                                  current Default Pricing practice and the                                                                       Commission does not edit personal
                                                                                                          Rule 19b–4 thereunder.11 At any time
                                                  option for Participants to provide their                                                                       identifying information from
                                                                                                          within 60 days of the filing of the
                                                  own pricing, the proposed rule change                                                                          submissions. You should submit only
                                                                                                          proposed rule change, the Commission
                                                  provides transparency to DTC’s                                                                                 information that you wish to make
                                                                                                          summarily may temporarily suspend
                                                  shipping insurance valuation procedure                                                                         available publicly. All submissions
                                                                                                          such rule change if it appears to the
                                                  for Custody Service securities,                                                                                should refer to File Number SR–DTC–
                                                                                                          Commission that such action is
                                                  facilitating Participants’ consideration                                                                       2016–001 and should be submitted on
                                                                                                          necessary or appropriate in the public
                                                  of their insurance options for such                                                                            or before February 5, 2016.
                                                                                                          interest, for the protection of investors,
                                                  securities. Therefore, DTC believes that                or otherwise in furtherance of the                       For the Commission, by the Division of
                                                  the proposed rule change would aid in                   purposes of the Act.                                   Trading and Markets, pursuant to delegated
                                                  assuring the safeguarding of Custody                                                                           authority.12
                                                  Service securities and is consistent with               IV. Solicitation of Comments                           Robert W. Errett,
                                                  the requirements of the Act, in                           Interested persons are invited to                    Deputy Secretary.
                                                  particular, Section 17A(b)(3)(F) of the                 submit written data, views and                         [FR Doc. 2016–00646 Filed 1–14–16; 8:45 am]
                                                  Act, cited above.                                       arguments concerning the foregoing,                    BILLING CODE 8011–01–P
                                                     Rule 17Ad–22(d)(15) promulgated                      including whether the proposed rule
                                                  under the Act requires, inter alia, that                change is consistent with the Act.
                                                  a clearing agency establish, implement,                 Comments may be submitted by any of                    SECURITIES AND EXCHANGE
                                                  maintain and enforce written policies                   the following methods:                                 COMMISSION
                                                  and procedures reasonably designed to                   Electronic Comments                                    [Release No. 34–76867; File No. SR–Phlx–
                                                  state to its participants the clearing                    • Use the Commission’s Internet
                                                                                                                                                                 2015–115]
                                                  agency’s obligations with respect to                    comment form (http://www.sec.gov/
                                                  physical deliveries and identify and                                                                           Self-Regulatory Organizations;
                                                                                                          rules/sro.shtml); or                                   NASDAQ OMX PHLX LLC; Notice of
                                                  manage the risks from these                               • Send an email to rule-comments@
                                                  obligations.9 DTC believes the proposed                                                                        Filing and Immediate Effectiveness of
                                                                                                          sec.gov. Please include File Number SR–                Proposed Rule Change To Amend
                                                  rule change is consistent with this                     DTC–2016–001 on the subject line.
                                                  provision because codifying DTC’s                                                                              Chapter VIII of the Pricing Schedule
                                                  current practice would provide                          Paper Comments
                                                                                                                                                                 January 11, 2016.
                                                  transparency with respect to DTC’s                        • Send paper comments in triplicate                     Pursuant to Section 19(b)(1) of the
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  procedures for assigning a value to                     to Secretary, Securities and Exchange                  Securities Exchange Act of 1934
                                                  physical securities held in the Custody                 Commission, 100 F Street NE.,                          (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                  Service for shipping insurance valuation                Washington, DC 20549–1090.                             notice is hereby given that on December
                                                  purposes, and therefore is reasonably                   All submissions should refer to File                   29, 2015, NASDAQ OMX PHLX LLC
                                                  designed to identify and manage risks                   Number SR–DTC–2016–001. This file
                                                                                                                                                                   12 17 CFR 200.30–3(a)(12).
                                                    8 15 U.S.C. 78q–1(b)(3)(F).                             10 15 U.S.C. 78s(b)(3)(A).                             1 15 U.S.C. 78s(b)(1).
                                                    9 17 CFR 240.17Ad–22(d)(15).                            11 17 CFR 240.19b–4(f)(1).                             2 17 CFR 240.19b–4.




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Document Created: 2018-02-02 12:32:12
Document Modified: 2018-02-02 12:32:12
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 2270 

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