81 FR 73450 - Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Allow DTC To Automate the Process for Participants To Submit Eligibility Requests for Older Issues
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 206 (October 25, 2016)
Federal Register Volume 81, Issue 206 (October 25, 2016)
| Page Range | 73450-73452 | |
| FR Document | 2016-25686 |
[Federal Register Volume 81, Number 206 (Tuesday, October 25, 2016)] [Notices] [Pages 73450-73452] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-25686] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79122; File No. SR-DTC-2016-010] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Allow DTC To Automate the Process for Participants To Submit Eligibility Requests for Older Issues October 19, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4,\2\ notice is hereby given that on October 14, 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 Rule 19b-4(f)(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. --------------------------------------------------------------------------- \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)(4). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change would amend the DTC Operational Arrangements for Securities to Become and Remain Eligible for DTC Services (``OA'') \5\ and the DTC Underwriting Service Guide (``Guide'') \6\ to allow DTC to automate the process by which Participants submit requests and related documents for Securities that are already issued and outstanding (``Older Issues'') to become eligible for Deposit and book-entry transfer services at DTC (``Older Issue Eligibility Requests'').\7\ Upon its implementation, the proposed rule change would enhance efficiencies for Participants and DTC by providing a secure, centralized environment for the submission of Older Issue Eligibility Requests. --------------------------------------------------------------------------- \5\ Available at http://www.dtcc.com/~/media/Files/Downloads/ legal/issue-eligibility/eligibility/operational-arrangements.pdf. \6\ Available at http://www.dtcc.com/~/media/Files/Downloads/ Settlement-Asset-Services/Underwriting/Underwriting-Service- Guide.pdf. \7\ Capitalized terms not otherwise defined herein have the respective meanings set forth in the DTC Rules, By-laws and Organization Certificate (``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, the clearing agency 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. The clearing agency 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 change the method of submission of Older Issue Eligibility Requests by Participants from the current email method to instead utilize DTC's Securities Origination, Underwriting and Reliable Corporate Action Environment (``UW SOURCE'') for this purpose.\8\ --------------------------------------------------------------------------- \8\ UW SOURCE is an existing Internet-based system currently used by Participants to submit eligibility requests for newly-issued Securities (``New Issues''). See OA, supra note 5, at 1. The process for submitting eligibility requests for New Issues through UW SOURCE would not change as a result of the proposed rule change. See generally DTC UW Reengineering Web page, available at http://dtcc.com/matching-settlement-and-asset-services/underwriting/uw-source-info (providing background and links to additional information on UW SOURCE). --------------------------------------------------------------------------- In order for an Older Issue to be made eligible for Deposit and book-entry transfer services at DTC, a Participant must submit an Older Issue Eligibility Request to DTC \9\ that evidences that the Older Issue meets DTC's requirements for Securities to become and remain eligible for DTC services \10\ as set forth in the OA (``Eligibility Requirements'').\11\ The Older Issue Eligibility Request must at a minimum include a questionnaire (``Older [[Page 73451]] Eligibility Questionnaire''),\12\ a copy of the Security certificate for the Older Issue, an attestation form signed by the ``Agent'' \13\ for the issue (``Agent Attestation Form'') \14\ and the original offering documents prepared by the issuer of the Older Issue (collectively, ``Eligibility Request Documents'').\15\ Today, Participants submit Older Issue Eligibility Requests, including the Eligibility Request Documents, to DTC using email. --------------------------------------------------------------------------- \9\ Only Participants can request that DTC make a Security eligible. See OA, supra note 5, at 1-2. \10\ It is the responsibility of the Participant requesting eligibility for the Securities to provide evidence that the Securities satisfy the criteria set forth in DTC's OA. See id. \11\ See OA, supra note 5, at 2-13 (for DTC's eligibility criteria). \12\ The Older Issue Eligibility Questionnaire is a form that a Participant must complete with respect to the Older Issue to provide DTC with the issuer's name, issue description, CUSIP number, information relating to compliance with Eligibility Requirements, contact information, and other information required in order for DTC to process the issue. In addition, by signing the Older Eligibility Questionnaire, the Participant (i) represents and warrants (a) that the issuer complies with all applicable securities laws, rules and regulations, and banking regulations, (b) the registration or exemption status of the Older Issue under the Securities Act of 1933, and (c) that the information provided on the form is true, accurate and complete, (ii) agrees to indemnify DTC and its affiliates for any loss, damage, cost or expense, arising out of the eligibility request and the Deposit of the referenced Security, and (iii) certifies that it complies with the Rules regarding compliance with sanctions administered and enforced by the Office of Foreign Assets Control (OFAC) and that the Participant has implemented a risk-based OFAC compliance program. (See Rule 2, Section 8, supra note 7.). \13\ ``Agent'' in the OA means an issuer's auction agent, custodian, depositary, dividend reinvestment plan administrator, exchange agent, issuing and/or paying agent, redemption agent, remarketing agent, registrar, tender agent, transfer agent, trustee, trust company, and/or any other person or entity acting in an agency capacity on behalf of the issuer. See OA, supra note 5, at 1. \14\ By signing the Agent Attestation Form, the Agent for the issue represents that the Agent will comply with the requirements stated in the OA with respect to the issue upon acceptance of the issue as eligible for deposit at DTC. \15\ Further documents and information (e.g., legal opinions, indemnifications and other documentation) may be required as part of the eligibility review. See OA, supra note 5, at 2-13. --------------------------------------------------------------------------- Pursuant to the proposed rule change, in an effort to improve processing efficiencies and provide a centralized, secure method for the submission of Older Issue Eligibility Requests, Participants would be required to submit their Older Issue Eligibility Requests, including required Eligibility Request Documents, through UW SOURCE with the designation as an ``Eligibility Only'' request.\16\ In other words, pursuant to the proposed rule change, rather than attaching the Eligibility Request Documents to an email message to be sent to a DTC email box as in the current method, Participants would instead transmit the Eligibility Request Documents to DTC via online transmission by uploading the documents into UW SOURCE.\17\ --------------------------------------------------------------------------- \16\ Designating the submission as ``Eligibility Only'' in UW SOURCE signifies that the issue is not a New Issue and allows the Participant to deposit the Securities for the issue as soon as it has been made eligible by DTC. \17\ The forms of the Eligibility Request Documents as described above would not change. --------------------------------------------------------------------------- Implementation of the proposed rule change would provide several advantages to Participants and DTC in relation to the current email- based method used for Participants to transmit Older Issue Eligibility Requests to DTC. First, UW SOURCE would enhance security in transmission of Older Issue Eligibility Requests by using a secure online system instead of the current email method.\18\ Second, use of UW SOURCE for this purpose would enhance transparency for Participants with respect to the status of their Older Issue Eligibility Requests.\19\ Third, the migration of this function to UW SOURCE would enhance efficiencies associated with DTC's processing of Older Issue Eligibility Requests by providing an automated and centralized means of receiving and managing Eligibility Request Documents rather than having to manually retrieve them from multiple emails as it does today. --------------------------------------------------------------------------- \18\ UW SOURCE is a secure, centralized online system managed by DTC, whereas Participant security protocols for the transmission of emails may vary. \19\ UW SOURCE provides Participants with the ability to view the status of their eligibility request online and directly obtain the contact information for the DTC staff person that is handling the request. --------------------------------------------------------------------------- Proposed Changes to the OA and Guide Text Pursuant to the proposed rule change, DTC would amend the text of the OA to: i. State that Eligibility Request Documents must be submitted through UW SOURCE; ii. update an Internet link to an informational page on DTCC's Web site relating to UW SOURCE; and iii. update the copyright date of the OA. In addition, DTC would amend the Guide to: i. Delete text indicating that Older Issue Eligibility Requests are submitted either by providing DTC with copies of security certificates or a file on a diskette, and replacing it with text that would reflect the proposed UW SOURCE-based submission process; ii. conform relevant text relating to the Older Issue Eligibility Request process to the text of the OA, as amended by this proposed rule change; iii. provide the Internet address for the OA in order for Participants to reference additional information on the Eligibility Requirements and related documentation; and iv. delete an incorrect statement indicating that when a certificate is received in connection with an Older Issue Eligibility Request that does not have a CUSIP number assigned to it, DTC would facilitate the assignment of a CUSIP number.\20\ --------------------------------------------------------------------------- \20\ DTC performs this function in regards to its Custody Service. See the DTC Custody Service Guide, at 4, available at http://www.dtcc.com/~/media/Files/Downloads/legal/service-guides/ Custody.pdf. --------------------------------------------------------------------------- Implementation Date DTC would announce the implementation date for the proposed rule change via a DTC Important Notice. 2. Statutory Basis Section 17A(b)(3)(F) of the Act \21\ requires that the rules of the clearing agency be designed, inter alia, to promote the prompt and accurate clearance and settlement of securities transactions. DTC believes that the proposed rule change is consistent with this provision of the Act because it would (i) improve processing efficiencies and provide for a more secure transmission method for Older Issue Eligibility Requests by replacing an email-based method of submission with a secure online submission method, and (ii) provide greater transparency to Participants by providing them with a direct online view into the status of their Older Issue Eligibility Requests. As a result, the proposed rule change would facilitate processing of Participant requests to make Older Issues eligible for Deposit and book-entry transfer services at DTC, and therefore promote the prompt and accurate clearance and settlement of securities transactions through DTC, consistent with the Act, in particular Section 17A(b)(3)(F) cited above. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- Rule 17Ad-22(d)(6) promulgated under the Act \22\ requires that each registered clearing agency shall establish, implement, maintain and enforce written policies and procedures reasonably designed to, as applicable, be cost-effective in meeting the requirements of participants while maintaining safe and secure operations. DTC believes that the proposed rule change is consistent with Rule 17Ad-22(d)(6) because (i) by enhancing the efficiency of the processing of Older Issue Eligibility Requests without increasing costs to Participants to access the service,\23\ the proposed rule change would be cost- effective in meeting requirements of Participants, and (ii) by processing Older Issue Eligibility Requests through UW SOURCE, a [[Page 73452]] centralized and secure online application, DTC would maintain safe and secure operations with respect to transmission and processing of such requests. --------------------------------------------------------------------------- \22\ 17 CFR 240.17Ad-22(d)(6). \23\ DTC does not charge Participants a fee for access to UW SOURCE. --------------------------------------------------------------------------- (B) Clearing Agency's Statement on Burden on Competition DTC does not believe that the proposed rule change would have any adverse impact, or impose any burden, on competition because DTC does not charge a fee for access to UW SOURCE and therefore the proposal would not impose additional costs on Participants in this regard. In addition, the process for Participant's to register for UW SOURCE is transparent and available on DTCC's Web site \24\ and identical to that used by Participants to register for DTC Web-based services generally. Moreover, because the proposed rule change improves the efficiency of the Older Issue Eligibility Request process, the proposed rule change may have a positive effect on competition among DTC Participants. --------------------------------------------------------------------------- \24\ See DTC's UW SOURCE Registration Information, available at http://www.dtcc.com/matching-settlement-and-asset-services/underwriting/uw-source-registration-information. --------------------------------------------------------------------------- (C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others DTC has not solicited and does not intend to solicit, comments regarding the proposed rule change. DTC has not received any unsolicited written comments from interested parties. To the extent DTC receives written comments on the proposed rule change, DTC will forward such comments to the Commission. DTC has issued an Important Notice to provide notice and related information with regard to the implementation of the proposal.\25\ --------------------------------------------------------------------------- \25\ Available at http://www.dtcc.com/~/media/Files/pdf/2016/8/ 10/3896-16.pdf. --------------------------------------------------------------------------- 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) \26\ of the Act and paragraph (f) of Rule 19b-4 \27\ 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. --------------------------------------------------------------------------- \26\ 15 U.S.C. 78s(b)(3)(A). \27\ 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-2016-010 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549. All submissions should refer to File Number SR-DTC-2016-010. 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-2016-010 and should be submitted on or before November 15, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\28\ --------------------------------------------------------------------------- \28\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-25686 Filed 10-24-16; 8:45 am] BILLING CODE 8011-01-P
![73450 Federal Register / Vol. 81, No. 206 / Tuesday, October 25, 2016 / Notices
Securities Rule 477, SEC File No. 270–493, Dated: October 18, 2016. Upon its implementation, the proposed
OMB Control No. 3235–0550. Brent J. Fields, rule change would enhance efficiencies
Secretary. for Participants and DTC by providing a
Notice is hereby given that, pursuant secure, centralized environment for the
[FR Doc. 2016–25708 Filed 10–24–16; 8:45 am]
to the Paperwork Reduction Act of 1995 submission of Older Issue Eligibility
BILLING CODE 8011–01–P
(44 U.S.C. 3501 et seq.), the Securities Requests.
and Exchange Commission
(‘‘Commission’’) has submitted to the II. Clearing Agency’s Statement of the
SECURITIES AND EXCHANGE Purpose of, and Statutory Basis for, the
Office of Management and Budget this COMMISSION
request for extension of the previously Proposed Rule Change
approved collection of information [Release No. 34–79122; File No. SR–DTC– In its filing with the Commission, the
discussed below. 2016–010] clearing agency included statements
Rule 477 (17 CFR 230.477) under the concerning the purpose of and basis for
Self-Regulatory Organizations; The
Securities Act of 1933 (15 U.S.C. 77a et the proposed rule change and discussed
Depository Trust Company; Notice of
seq.) sets forth procedures for Filing and Immediate Effectiveness of any comments it received on the
withdrawing a registration statement, a Proposed Rule Change To Allow DTC proposed rule change. The text of these
including any amendments or exhibits To Automate the Process for statements may be examined at the
to the registration statement. The rule Participants To Submit Eligibility places specified in Item IV below. The
provides that if an issuer intends to rely Requests for Older Issues clearing agency has prepared
on the safe harbor contained in summaries, set forth in sections A, B,
Securities Act Rule 155 to conduct an October 19, 2016. and C below, of the most significant
unregistered private offering of Pursuant to Section 19(b)(1) of the aspects of such statements.
securities, the issuer must affirmatively Securities Exchange Act of 1934 (A) Clearing Agency’s Statement of the
state in the withdrawal application that (‘‘Act’’) 1 and Rule 19b–4,2 notice is Purpose of, and Statutory Basis for, the
it plans to undertake a subsequent hereby given that on October 14, 2016, Proposed Rule Change
private offering of its securities. Without The Depository Trust Company (‘‘DTC’’)
this statement, the Commission would filed with the Securities and Exchange 1. Purpose
not be able to monitor a company’s Commission (‘‘Commission’’) the
The proposed rule change would
reliance on, and compliance with, proposed rule change as described in
change the method of submission of
Securities Act Rule 155(c). All Items I, II and III below, which Items
Older Issue Eligibility Requests by
information submitted to the have been prepared by DTC. DTC filed
Participants from the current email
Commission under Securities Act Rule the proposed rule change pursuant to
method to instead utilize DTC’s
477 is available to the public for review. Section 19(b)(3)(A) of the Act 3 and Rule
Securities Origination, Underwriting
Information provided under Securities 19b–4(f)(4) thereunder.4 The proposed
and Reliable Corporate Action
Act Rule 477 is mandatory. The rule change was effective upon filing
Environment (‘‘UW SOURCE’’) for this
information is required on occasion. We with the Commission. The Commission
purpose.8
estimate that approximately 327 issuers is publishing this notice to solicit
will file Securities Act Rule 477 comments on the proposed rule change In order for an Older Issue to be made
submissions annually at an estimated from interested persons. eligible for Deposit and book-entry
one hour per response for a total annual transfer services at DTC, a Participant
I. Clearing Agency’s Statement of the must submit an Older Issue Eligibility
burden of approximately 327 hours. We Terms of Substance of the Proposed
estimate that 100% of the reporting Request to DTC 9 that evidences that the
Rule Change Older Issue meets DTC’s requirements
burden is prepared by the issuer.
The proposed rule change would for Securities to become and remain
An agency may not conduct or amend the DTC Operational eligible for DTC services 10 as set forth
sponsor, and a person is not required to Arrangements for Securities to Become in the OA (‘‘Eligibility
respond to, a collection of information and Remain Eligible for DTC Services Requirements’’).11 The Older Issue
unless it displays a currently valid (‘‘OA’’) 5 and the DTC Underwriting Eligibility Request must at a minimum
control number. Service Guide (‘‘Guide’’) 6 to allow DTC include a questionnaire (‘‘Older
The public may view the background to automate the process by which
documentation for this information Participants submit requests and related (‘‘Rules’’), available at http://www.dtcc.com/legal/
collection at the following Web site, documents for Securities that are rules-and-procedures.aspx.
8 UW SOURCE is an existing Internet-based
www.reginfo.gov. Comments should be already issued and outstanding (‘‘Older system currently used by Participants to submit
directed to: (i) Desk Officer for the Issues’’) to become eligible for Deposit eligibility requests for newly-issued Securities
Securities and Exchange Commission, and book-entry transfer services at DTC (‘‘New Issues’’). See OA, supra note 5, at 1. The
Office of Information and Regulatory (‘‘Older Issue Eligibility Requests’’).7 process for submitting eligibility requests for New
Issues through UW SOURCE would not change as
Affairs, Office of Management and a result of the proposed rule change. See generally
Budget, Room 10102, New Executive 1 15 U.S.C. 78s(b)(1). DTC UW Reengineering Web page, available at
2 17 CFR 240.19b–4.
Office Building, Washington, DC 20503, http://dtcc.com/matching-settlement-and-asset-
3 15 U.S.C. 78s(b)(3)(A).
or by sending an email to: Shagufta_ services/underwriting/uw-source-info (providing
4 17 CFR 240.19b–4(f)(4). background and links to additional information on
Ahmed@omb.eop.gov; and (ii) Pamela
mstockstill on DSK3G9T082PROD with NOTICES
5 Available at http://www.dtcc.com/∼/media/ UW SOURCE).
Dyson, Director/Chief Information Files/Downloads/legal/issue-eligibility/eligibility/ 9 Only Participants can request that DTC make a
Officer, Securities and Exchange operational-arrangements.pdf. Security eligible. See OA, supra note 5, at 1–2.
Commission, c/o Remi Pavlik-Simon, 6 Available at http://www.dtcc.com/∼/media/ 10 It is the responsibility of the Participant
100 F Street NE., Washington, DC 20549 Files/Downloads/Settlement-Asset-Services/ requesting eligibility for the Securities to provide
Underwriting/Underwriting-Service-Guide.pdf. evidence that the Securities satisfy the criteria set
or send an email to: PRA_Mailbox@ 7 Capitalized terms not otherwise defined herein forth in DTC’s OA. See id.
sec.gov. Comments must be submitted to have the respective meanings set forth in the DTC 11 See OA, supra note 5, at 2–13 (for DTC’s
OMB within 30 days of this notice. Rules, By-laws and Organization Certificate eligibility criteria).
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![73452 Federal Register / Vol. 81, No. 206 / Tuesday, October 25, 2016 / Notices
centralized and secure online or otherwise in furtherance of the For the Commission, by the Division of
application, DTC would maintain safe purposes of the Act. Trading and Markets, pursuant to delegated
and secure operations with respect to authority.28
IV. Solicitation of Comments Brent J. Fields,
transmission and processing of such
requests. Interested persons are invited to Secretary.
submit written data, views, and [FR Doc. 2016–25686 Filed 10–24–16; 8:45 am]
(B) Clearing Agency’s Statement on arguments concerning the foregoing, BILLING CODE 8011–01–P
Burden on Competition including whether the proposed rule
change is consistent with the Act.
DTC does not believe that the Comments may be submitted by any of SECURITIES AND EXCHANGE
proposed rule change would have any the following methods: COMMISSION
adverse impact, or impose any burden,
on competition because DTC does not Electronic Comments [Release No. 34–79125; File No. SR–
charge a fee for access to UW SOURCE • Use the Commission’s Internet NYSEMKT–2016–48]
and therefore the proposal would not comment form
impose additional costs on Participants (http://www.sec.gov/rules/sro.shtml); Self-Regulatory Organizations; NYSE
in this regard. In addition, the process or MKT LLC; Notice of Filing of
for Participant’s to register for UW • Send an email to rule-comments@ Amendment Nos. 2 and 3 and Order
SOURCE is transparent and available on sec.gov. Please include File Number SR– Granting Accelerated Approval of
DTC–2016–010 on the subject line. Proposed Rule Change, as Modified by
DTCC’s Web site 24 and identical to that
Amendment Nos. 2 and 3, To Amend
used by Participants to register for DTC Paper Comments Certain Rules Related to Flexible
Web-based services generally. Moreover,
because the proposed rule change • Send paper comments in triplicate Exchange Options
improves the efficiency of the Older to Secretary, Securities and Exchange
October 19, 2016.
Issue Eligibility Request process, the Commission, 100 F Street NE.,
proposed rule change may have a Washington, DC 20549. I. Introduction
positive effect on competition among All submissions should refer to File On July 1, 2016, NYSE MKT LLC
DTC Participants. Number SR–DTC–2016–010. This file (‘‘NYSE MKT’’ or the ‘‘Exchange’’) filed
number should be included on the with the Securities and Exchange
(C) Clearing Agency’s Statement on subject line if email is used. To help the Commission (‘‘Commission’’), pursuant
Comments on the Proposed Rule Commission process and review your to Section 19(b)(1) of the Securities
Change Received From Members, comments more efficiently, please use Exchange Act of 1934 (‘‘Act’’) 1 and Rule
Participants, or Others only one method. The Commission will 19b–4 thereunder,2 a proposed rule
post all comments on the Commission’s change to amend certain rules related to
DTC has not solicited and does not Internet Web site (http://www.sec.gov/ Flexible Exchange (‘‘FLEX’’) Options.
intend to solicit, comments regarding rules/sro.shtml). Copies of the The proposed rule change was
the proposed rule change. DTC has not submission, all subsequent published for comment in the Federal
received any unsolicited written amendments, all written statements Register on July 21, 2016.3 On August
comments from interested parties. To with respect to the proposed rule 30, 2016, the Exchange filed
the extent DTC receives written change that are filed with the Amendment No. 1 to the proposed rule
comments on the proposed rule change, Commission, and all written change. On August 31, 2016, pursuant
DTC will forward such comments to the communications relating to the to Section 19(b)(2) of the Act,4 the
Commission. DTC has issued an proposed rule change between the Commission designated a longer period
Important Notice to provide notice and Commission and any person, other than within which to either approve the
related information with regard to the those that may be withheld from the proposed rule change, disapprove the
implementation of the proposal.25 public in accordance with the proposed rule change, or institute
III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be proceedings to determine whether to
Proposed Rule Change and Timing for available for Web site viewing and disapprove the proposed rule change.5
Commission Action printing in the Commission’s Public On September 27, 2016, the Exchange
Reference Room, 100 F Street NE., filed Amendment No. 2 to the proposed
The foregoing rule change has become Washington, DC 20549 on official rule change, which superseded and
effective pursuant to Section business days between the hours of replaced Amendment No. 1.6 On
19(b)(3)(A) 26 of the Act and paragraph 10:00 a.m. and 3:00 p.m. Copies of the
(f) of Rule 19b–4 27 thereunder. At any filing also will be available for 1 15 U.S.C. 78s(b)(1).
time within 60 days of the filing of the inspection and copying at the principal 2 17 CFR 240.19b–4.
proposed rule change, the Commission office of DTC and on DTCC’s Web site 3 See Securities Exchange Act Release No. 78348
summarily may temporarily suspend (July 15, 2016), 81 FR 47469 (‘‘Notice’’).
(http://dtcc.com/legal/sec-rule- 4 15 U.S.C. 78s(b)(2).
such rule change if it appears to the filings.aspx). All comments received 5 See Securities Exchange Act Release No. 78744
Commission that such action is will be posted without change; the (August 31, 2016), 81 FR 61725 (September 7,
necessary or appropriate in the public Commission does not edit personal 2016). The Commission designated October 19,
interest, for the protection of investors, identifying information from 2016 as the date by which it shall approve,
disapprove, or institute proceedings to determine
submissions. You should submit only
mstockstill on DSK3G9T082PROD with NOTICES
whether to disapprove the proposed rule change.
24 See DTC’s UW SOURCE Registration information that you wish to make 6 In Amendment No. 2, the Exchange: (1)
Information, available at http://www.dtcc.com/ available publicly. All submissions Provided greater clarity regarding the operation of
matching-settlement-and-asset-services/
underwriting/uw-source-registration-information.
should refer to File Number SR–DTC– FLEX Binary Return Derivatives contracts
2016–010 and should be submitted on (‘‘ByRDs’’), including specifying position limits
25 Available at http://www.dtcc.com/∼/media/
applicable to FLEX ByRDs and indicating that FLEX
Files/pdf/2016/8/10/3896-16.pdf. or before November 15, 2016. ByRDs will be settled using VWAP settlement and
26 15 U.S.C. 78s(b)(3)(A).
European exercise style; (2) specified that Asian
27 17 CFR 240.19b–4(f). 28 17 CFR 200.30–3(a)(12). and Cliquet style settlement will be available for
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Document Created: 2018-02-13 16:38:36
Document Modified: 2018-02-13 16:38:36
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| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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