82 FR 32417 - Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the DTC Settlement Service Guide in Order To Enhance the Memo Segregation Function in Connection With Deliveries Processed at DTC Related to the Direct Registration System
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 133 (July 13, 2017)
Federal Register Volume 82, Issue 133 (July 13, 2017)
| Page Range | 32417-32419 | |
| FR Document | 2017-14668 |
[Federal Register Volume 82, Number 133 (Thursday, July 13, 2017)] [Notices] [Pages 32417-32419] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-14668] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81099; File No. SR-DTC-2017-012] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the DTC Settlement Service Guide in Order To Enhance the Memo Segregation Function in Connection With Deliveries Processed at DTC Related to the Direct Registration System July 7, 2017. 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 June 30, 2017, 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 the clearing agency. DTC filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(4) \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)(4). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change would revise the DTC Settlement Service Guide (``Service Guide'') \5\ to enhance the Memo Segregation function (``Memo Seg'') with respect to its use by a Participant \6\ in connection with Deliveries processed at DTC for transactions related to DRS,\7\ as discussed below. --------------------------------------------------------------------------- \5\ Available at http://www.dtcc.com/~/media/Files/Downloads/ legal/service-guides/Settlement.pdf. Each term not otherwise defined herein has its respective meaning as set forth in the Rules, By-Laws and Organization Certificate of DTC (the ``Rules''), available at http://www.dtcc.com/legal/rules-and-procedures.aspx, and the Service Guide. \6\ For the purposes of this proposed rule change, the term Participant refers to both Participants and Limited Participants that use the Direct Registration System (``DRS''), as discussed below. (Pursuant to Rule 2 ``. . . the term ``Participant'' shall include the term ``Limited Participant'' unless the (i) context otherwise requires or (ii) the Procedures otherwise provide.'' See Rule 2, supra note 5.) \7\ External to DTC, DRS allows an investor to hold a Security as the registered owner in electronic form on the books of a transfer agent rather than holding a certificate or holding indirectly through a Securities Intermediary (e.g., a broker- dealer). DRS-related transactions between transfer agents and broker-dealers that are both Participants may be processed through DTC. (Typically, transfer agents are Limited Participants for purposes of processing DRS-related transactions.) See Securities Exchange Act Release No. 37931 (November 7, 1996), 61 FR 58600 (November 15, 1996) (SR-DTC-96-15). --------------------------------------------------------------------------- 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 Background Memo Seg allows a Participant to elect to protect a designated quantity of Securities in a given CUSIP (``Designated Quantity'') from unintended intraday Delivery at DTC.\8\ When a Participant uses Memo Seg, if the total quantity of Securities in its account in a given CUSIP as a result of processing the Delivery would be equal to, or less than, the Designated Quantity, the Securities will not be Delivered, unless (a) the Participant elects to reduce the Designated Quantity or (b) the Designated Quantity is automatically reduced as a result of the Participant executing certain transactions (e.g., withdrawals-by- transfer, certificate-on-demand withdrawals, and free Deliveries that are not identified as stock loan or stock loan returns).\9\ This allows for automated processing of Securities, reducing manual entries of a Participant to maintain a certain quantity of Securities in an Account. --------------------------------------------------------------------------- \8\ Participants that are registered broker-dealers use Memo Seg as a tool to maintain compliance with their obligations under Rule 15c3-3 (``Customer Protection Rule''). 17 CFR 240.15c3-3. The Customer Protection Rule requires, among other things, that broker- dealers maintain control of all fully-paid or excess margin Securities they hold for the accounts of customers. Compliance with those obligations by such broker-dealers is external to DTC. See Rule 2, supra note 5. \9\ See Service Guide, supra note 5, at 43-45. --------------------------------------------------------------------------- Proposed Rule Change 1. Proposal That Standing Instructions From a Receiving Participant Would Automatically Increase the Participant's Designated Quantity for Deliveries Associated With DRS Transactions By providing standing instructions, a Receiving Participant may currently elect to have Deliveries of Securities for certain types of transactions automatically increase the Receiving Participant's Designated Quantity.\10\ However, Securities transferred through DRS do not automatically increase the Receiving Participant's Designated Amount. The Regulatory and Clearance [[Page 32418]] Committee of the Securities Operations Section of the Securities Industry and Financial Markets Association (``SIMFA'') has requested that DTC modify Memo Seg so that Deliveries of Securities processed through DRS would automatically increase the Receiving Participant's Designated Quantity.\11\ --------------------------------------------------------------------------- \10\ Transaction types are designated by the Delivering Participant using a reason code provided on a Delivery instruction (``Code'') (e.g., stock loan transactions, DRS-related, etc.). The Receiving Participant may provide standing instructions regarding its Designated Quantity using an indicator (``Indicator''), as discussed in the Service Guide. By selecting Indicators numbered 1, 2, 3 and 6, the Participant provides a standing instruction for its Designated Quantity to automatically increase when it is the Receiving Participant of a transaction designated with an applicable Code. See Service Guide, supra note 5 at 43-45. \11\ SIFMA has indicated that making this update to Memo Seg would strengthen the ability of Participants to control and protect customer fully-paid Securities transferred through DRS. --------------------------------------------------------------------------- In this regard, pursuant to the proposed rule change, DTC would revise the Service Guide to allow a Receiving Participant in a DRS- related transaction to elect to have its Designated Quantity automatically increased when the Delivering Participant uses Codes 390 or 391.\12\ A Receiving Participant would make this election by selecting Indicator 1. --------------------------------------------------------------------------- \12\ Code 390 indicates a DRS-related Delivery and Code 391 indicates a DRS-related return of a Delivery. --------------------------------------------------------------------------- 2. Proposal To Update Memo Seg To Prevent Automatic Decrease of a Participant's Designated Quantity for DRS Reclaims Pursuant to the Service Guide, a Free Delivery made by a Participant always reduces its Designated Quantity unless an exception for a given transaction type is expressly provided for. Pursuant to the proposed rule change, the text of the Service Guide would be revised so that a ``Reclaim'' of a DRS-related Free Delivery, where the related transaction is one that the Receiving Participant does not know (``DK'') (performed with Code 396), would not automatically reduce the Receiving Participant's Designated Quantity. This change would allow a Participant to exercise greater control in managing its Designated Quantity. 3. Proposal To Make Technical Changes to the Memo Seg Section of the Service Guide The proposed rule change would also make technical changes to the Memo Seg section of the Service Guide to: a. (i) Change references to ``you'' and ``your'' to ``a Participant,'' ``the Participant,'' ``Participants'' or ``its,'' as applicable and (ii) make grammatical and spacing changes to the text to provide enhanced clarity and readability with respect to provisions related to Memo Seg; and b. Add an annex to the Service Guide containing the descriptions of the Codes listed in the ``Non-Optional Memo Segregation Transactions'' and the ``Optional Memo Segregation Indicators'' subsections. Effective Date of Proposed Rule Change The proposed rule change would be effective upon filing with the Commission. 2. Statutory Basis Section 17A(b)(3)(F) \13\ of the Securities Exchange Act of 1934 (``Act'') requires that the rules of the clearing agency be designed, inter alia, to protect investors and the public interest. DTC believes the proposed rule change is consistent with this provision because it would (i) reduce the risk of unintended Delivery of Securities that are the subject of a DRS-related transaction by a Participant that (A) elects to use applicable Indicators \14\ or (B) enters a DK-related Reclaim in connection with a DRS-related Free Delivery and (ii) make other technical and grammatical changes to the text of the Service Guide that would provide enhanced clarity and readability with respect to provisions related to Memo Seg, as discussed above. Thus, by (i) reducing the risk of an unintended Delivery in this regard and (ii) making other technical and grammatical changes to the text of the Service Guide in order to provide enhanced clarity and readability with respect to provisions related to Memo Seg, DTC believes that the proposed rule change would help protect investors and the public interest, consistent with Section 17(b)(3)(F) of the Act, cited above. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78q-1(b)(3)(F). \14\ DTC makes Memo Seg available as a tool for Participants, but does not monitor, and is not responsible for, any Participant's compliance with its obligation to protect customer fully-paid Securities. With respect to any Securities processed through DTC, DTC does not recognize (and is not required by its Rules and Procedures or applicable law to recognize) a distinction between proprietary and customer Securities. --------------------------------------------------------------------------- The proposed rule change is also designed to be consistent with Rule 17Ad-22(e)(23) of the Act,\15\ which was recently adopted by the Commission.\16\ Rule 17Ad-22(e)(23) requires DTC, inter alia, to establish, implement, maintain and enforce written policies and procedures reasonably designed to publicly disclose all relevant rules and material procedures. The proposed rule change, as described above, would update the Service Guide to add descriptions of the Codes referenced in the Memo Seg section of the Service Guide, as discussed above. As such, DTC believes that the proposed rule change would promote disclosure of relevant rules and material procedures relating to Participants' use of Memo Seg, in accordance with the requirements of Rule 17Ad-22(e)(23), promulgated under the Act, cited above. --------------------------------------------------------------------------- \15\ 17 CFR 240.17Ad-22(e)(23). \16\ The Commission adopted amendments to Rule 17ad-22, including the addition of new subsection 17ad-22(e), on September 28, 2016. See Securities Exchange Act Release No. 78961 (September 28, 2016), 81 FR 70786 (October 13, 2016) (S7-03-14). DTC is a ``covered clearing agency'' as defined by new Rule 17ad-22(a)(5) and must comply with subsection (e) of Rule 17Ad-22. Id. --------------------------------------------------------------------------- (B) Clearing Agency's Statement on Burden on Competition DTC does not believe that the proposed rule change would have any impact on competition because the proposed rule change would merely enhance the ability of any Receiving Participant to control Securities in its Account. (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. DTC management has discussed its intent to implement the proposed change with SIFMA and Participants. 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) \17\ of the Act and paragraph (f) of Rule 19b-4 \18\ 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. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(3)(A). \18\ 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-2017-012 on the subject line. [[Page 32419]] 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-2017-012. 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 20549-1090 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-2017-012 and should be submitted on or before August 3, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-14668 Filed 7-12-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 133 / Thursday, July 13, 2017 / Notices 32417
only one method. The Commission will the proposed rule change as described (A) Clearing Agency’s Statement of the
post all comments on the Commission’s in Items I, II and III below, which Items Purpose of, and Statutory Basis for, the
Internet Web site (http://www.sec.gov/ have been prepared by the clearing Proposed Rule Change
rules/sro.shtml). Copies of the agency. DTC filed the proposed rule 1. Purpose
submission, all subsequent change pursuant to Section 19(b)(3)(A)
amendments, all written statements of the Act 3 and Rule 19b–4(f)(4) 4 Background
with respect to the proposed rule thereunder. The proposed rule change Memo Seg allows a Participant to
change that are filed with the was effective upon filing with the elect to protect a designated quantity of
Commission, and all written Commission. The Commission is Securities in a given CUSIP
communications relating to the publishing this notice to solicit (‘‘Designated Quantity’’) from
proposed rule change between the comments on the proposed rule change unintended intraday Delivery at DTC.8
Commission and any person, other than from interested persons. When a Participant uses Memo Seg, if
those that may be withheld from the the total quantity of Securities in its
public in accordance with the I. Clearing Agency’s Statement of the account in a given CUSIP as a result of
provisions of 5 U.S.C. 552, will be Terms of Substance of the Proposed processing the Delivery would be equal
available for Web site viewing and Rule Change to, or less than, the Designated Quantity,
printing in the Commission’s Public the Securities will not be Delivered,
Reference Room, 100 F Street NE., The proposed rule change would unless (a) the Participant elects to
Washington, DC 20549 on official revise the DTC Settlement Service reduce the Designated Quantity or (b)
business days between the hours of Guide (‘‘Service Guide’’) 5 to enhance the Designated Quantity is
10:00 a.m. and 3:00 p.m. Copies of such the Memo Segregation function (‘‘Memo automatically reduced as a result of the
filing also will be available for Seg’’) with respect to its use by a Participant executing certain
inspection and copying at the principal Participant 6 in connection with transactions (e.g., withdrawals-by-
office of the Exchange. All comments Deliveries processed at DTC for transfer, certificate-on-demand
received will be posted without change; transactions related to DRS,7 as withdrawals, and free Deliveries that are
the Commission does not edit personal discussed below. not identified as stock loan or stock loan
identifying information from returns).9 This allows for automated
submissions. You should submit only II. Clearing Agency’s Statement of the processing of Securities, reducing
information that you wish to make Purpose of, and Statutory Basis for, the manual entries of a Participant to
available publicly. All submissions Proposed Rule Change maintain a certain quantity of Securities
should refer to File Number SR–BX– in an Account.
2017–030, and should be submitted on In its filing with the Commission, the
or before August 3, 2017. clearing agency included statements Proposed Rule Change
concerning the purpose of and basis for
For the Commission, by the Division of 1. Proposal That Standing Instructions
the proposed rule change and discussed From a Receiving Participant Would
Trading and Markets, pursuant to delegated
authority.12 any comments it received on the Automatically Increase the Participant’s
Eduardo A. Aleman,
proposed rule change. The text of these Designated Quantity for Deliveries
statements may be examined at the Associated With DRS Transactions
Assistant Secretary.
places specified in Item IV below. The
[FR Doc. 2017–14662 Filed 7–12–17; 8:45 am]
clearing agency has prepared By providing standing instructions, a
BILLING CODE 8011–01–P
summaries, set forth in sections A, B, Receiving Participant may currently
and C below, of the most significant elect to have Deliveries of Securities for
certain types of transactions
SECURITIES AND EXCHANGE aspects of such statements.
automatically increase the Receiving
COMMISSION Participant’s Designated Quantity.10
3 15
U.S.C. 78s(b)(3)(A).
[Release No. 34–81099; File No. SR–DTC– 4 17
However, Securities transferred through
CFR 240.19b–4(f)(4).
2017–012] 5 Available at http://www.dtcc.com/∼/media/ DRS do not automatically increase the
Files/Downloads/legal/service-guides/ Receiving Participant’s Designated
Self-Regulatory Organizations; The Settlement.pdf. Each term not otherwise defined Amount. The Regulatory and Clearance
Depository Trust Company; Notice of herein has its respective meaning as set forth in the
Filing and Immediate Effectiveness of Rules, By-Laws and Organization Certificate of DTC 8 Participants that are registered broker-dealers
(the ‘‘Rules’’), available at http://www.dtcc.com/ use Memo Seg as a tool to maintain compliance
a Proposed Rule Change To Modify the legal/rules-and-procedures.aspx, and the Service with their obligations under Rule 15c3–3
DTC Settlement Service Guide in Order Guide. (‘‘Customer Protection Rule’’). 17 CFR 240.15c3–3.
To Enhance the Memo Segregation 6 For the purposes of this proposed rule change,
The Customer Protection Rule requires, among
Function in Connection With Deliveries the term Participant refers to both Participants and other things, that broker-dealers maintain control of
Limited Participants that use the Direct Registration all fully-paid or excess margin Securities they hold
Processed at DTC Related to the Direct System (‘‘DRS’’), as discussed below. (Pursuant to for the accounts of customers. Compliance with
Registration System Rule 2 ‘‘. . . the term ‘‘Participant’’ shall include those obligations by such broker-dealers is external
the term ‘‘Limited Participant’’ unless the (i) to DTC. See Rule 2, supra note 5.
July 7, 2017. context otherwise requires or (ii) the Procedures 9 See Service Guide, supra note 5, at 43–45.
Pursuant to Section 19(b)(1) of the otherwise provide.’’ See Rule 2, supra note 5.) 10 Transaction types are designated by the
Securities Exchange Act of 1934 7 External to DTC, DRS allows an investor to hold
Delivering Participant using a reason code provided
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a Security as the registered owner in electronic form on a Delivery instruction (‘‘Code’’) (e.g., stock loan
on the books of a transfer agent rather than holding
sradovich on DSK3GMQ082PROD with NOTICES
transactions, DRS-related, etc.). The Receiving
notice is hereby given that on June 30, a certificate or holding indirectly through a Participant may provide standing instructions
2017, The Depository Trust Company Securities Intermediary (e.g., a broker-dealer). DRS- regarding its Designated Quantity using an indicator
(‘‘DTC’’) filed with the Securities and related transactions between transfer agents and (‘‘Indicator’’), as discussed in the Service Guide. By
Exchange Commission (‘‘Commission’’) broker-dealers that are both Participants may be selecting Indicators numbered 1, 2, 3 and 6, the
processed through DTC. (Typically, transfer agents Participant provides a standing instruction for its
are Limited Participants for purposes of processing Designated Quantity to automatically increase when
12 17 CFR 200.30–3(a)(12). DRS-related transactions.) See Securities Exchange it is the Receiving Participant of a transaction
1 15 U.S.C. 78s(b)(1). Act Release No. 37931 (November 7, 1996), 61 FR designated with an applicable Code. See Service
2 17 CFR 240.19b–4. 58600 (November 15, 1996) (SR–DTC–96–15). Guide, supra note 5 at 43–45.
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![Federal Register / Vol. 82, No. 133 / Thursday, July 13, 2017 / Notices 32419
Paper Comments SECURITIES AND EXCHANGE extended the time period for the
COMMISSION Commission to act on the proposal to
• Send paper comments in triplicate July 7, 2017. On June 26, 2017, FINRA
to Secretary, Securities and Exchange [Release No. 34–81098; File No. SR–FINRA–
2017–007]
submitted a response to the commenter
Commission, 100 F Street NE., letters.6 This order approves the
Washington, DC 20549–1090. Self-Regulatory Organizations; proposed rule change.
All submissions should refer to File Financial Industry Regulatory II. Description of the Proposal 7
Number SR–DTC–2017–012. This file Authority, Inc.; Order Approving
Proposed Rule Change To Adopt FINRA proposes to adopt with
number should be included on the amendments the NASD and
subject line if email is used. To help the Consolidated Registration Rules,
Restructure the Representative-Level Incorporated NYSE rules relating to
Commission process and review your qualification and registration as FINRA
comments more efficiently, please use Qualification Examination Program,
Allow Permissive Registration, rules in the Consolidated FINRA
only one method. The Commission will Rulebook. In addition, FINRA proposes
Establish Exam Waiver Process for
post all comments on the Commission’s to restructure the current representative-
Persons Working for Financial
Internet Web site (http://www.sec.gov/ Services Affiliate of Member, and level qualification examinations, create
rules/sro.shtml). Copies of the Amend the Continuing Education a general knowledge examination and
submission, all subsequent specialized knowledge examinations
Requirements
amendments, all written statements and amend the CE requirements, among
with respect to the proposed rule July 7, 2017. other changes.8
change that are filed with the I. Introduction A. Registration Requirements
Commission, and all written
On March 28, 2017, Financial Proposed Rule 1210 provides that
communications relating to the
Industry Regulatory Authority, Inc. each person engaged in the investment
proposed rule change between the
(‘‘FINRA’’) filed with the Securities and
Commission and any person, other than
Exchange Commission (‘‘Commission’’), from Pat Swanson, President, CFA Societies Texas,
those that may be withheld from the pursuant to Section 19(b)(1) of the dated April 10, 2017 (‘‘CFA Texas Letter’’); letter
public in accordance with the from John Skinner, Atlanta Society of Finance and
Securities Exchange Act of 1934 Investment Professionals, dated April 18, 2017
provisions of 5 U.S.C. 552, will be (‘‘Exchange Act’’) 1 and Rule 19b–4 (‘‘CFA Atlanta Letter’’); letter from Matthew O’Hara,
available for Web site viewing and thereunder,2 a proposed rule change to CFA Society, San Francisco, dated April 20, 2017
printing in the Commission’s Public (‘‘CFA San Francisco Letter’’); letter from Douglas
adopt rules relating to qualification and Jackman and Shannon Curley, CFA Society,
Reference Room, 100 F Street NE., registration requirements in the Chicago, dated April 26, 2017 (‘‘CFA Chicago
Washington, DC 20549–1090 on official Consolidated FINRA Rulebook,3 Letter’’); letter from Philip J. Taylor, New York
business days between the hours of restructure the current representative- Society of Security Analysts, Inc., dated April 28,
2017 (‘‘CFA New York Letter’’); letter from Jeanne
10:00 a.m. and 3:00 p.m. Copies of the level qualification examinations, create W. Wolf, CFA Society, Boston, dated April 28, 2017
filing also will be available for a general knowledge examination and (‘‘CFA Boston Letter’’); letter from David T. Bellaire,
inspection and copying at the principal specialized knowledge examinations, Executive Vice President & General Counsel,
Financial Services Institute, dated May 1, 2017
office of DTC and on DTCC’s Web site allow permissive registration, establish (‘‘FSI Letter’’); letter from Michelle Van Tassel,
(http://dtcc.com/legal/sec-rule- an exam waiver process for persons President, Association of Registration Management,
filings.aspx). All comments received working for a financial services affiliate Inc., dated May 1, 2017 (‘‘ARM Letter’’); letter from
of a member, and amend certain Kevin Zambrowicz, Managing Director & Associate
will be posted without change; the General Counsel, Securities Industry and Financial
Commission does not edit personal Continuing Education (‘‘CE’’) Markets Association, dated May 1, 2017 (‘‘SIFMA
identifying information from requirements. The proposed rule change Letter’’); letter from Mike Rothman, President,
submissions. You should submit only was published for comment in the North American Securities Administrators
Federal Register on April 10, 2017.4 Association, Inc., dated May 1, 2017 (‘‘NASAA
information that you wish to make Letter’’); letter from Robert J. McCarthy, Director of
available publicly. The Commission received 18 comments Regulatory Policy, Wells Fargo Advisors, dated May
in response to the proposed rule 1, 2017 (‘‘Wells Fargo Letter’’); letter from Norman
All submissions should refer to File change.5 On May 12, 2017, FINRA L. Ashkenas, Richard J. O’Brien, and Jason Linde,
Number SR–DTC–2017–012 and should Fidelity Investments, dated May 1, 2017 (‘‘Fidelity
be submitted on or before August 3, 1 15
Letter’’); letter from Erwin J. Dugasz, Jr., Managing
U.S.C. 78s(b)(1). Counsel, Nationwide (‘‘Nationwide Letter’’); letter
2017. 2 17
CFR 240.19b–4. from Eric Arnold & Clifford Kirsch, Eversheds
3 The current FINRA rulebook consists of: (1)
Sutherland (US) LLP, on behalf of the Committee
For the Commission, by the Division of FINRA rules; (2) NASD rules; and (3) rules of Annuity Insurers, dated May 1, 2017 (‘‘CAI
Trading and Markets, pursuant to delegated incorporated from the NYSE (‘‘Incorporated NYSE Letter’’); and letter from Daniel Kosowsky, Chief
authority.19 rules’’). While the NASD rules generally apply to Compliance Officer, Morgan Stanley & Co. LLC, and
all FINRA members, the Incorporated NYSE rules Rose-Anne Richter, Chief Compliance Officer,
Eduardo A. Aleman, apply only to those members of FINRA that are also Morgan Stanley Smith Barney LLC, dated June 5,
Assistant Secretary. members of the NYSE. The FINRA rules apply to 2017 (‘‘Morgan Stanley Letter’’).
[FR Doc. 2017–14668 Filed 7–12–17; 8:45 am] all FINRA members, unless such rules have a more 6 See letter from Afshin Atabaki, Associate
limited application by their terms. For more General Counsel, FINRA, to Brent J. Fields,
BILLING CODE 8011–01–P information about the rulebook consolidation Secretary, Commission, dated June 26, 2017
process, see Information Notice, March 12, 2008 (‘‘FINRA Response Letter’’).
(Rulebook Consolidation Process). 7 FINRA states that the proposed rule change
4 Securities Exchange Act Release No. 80371
combines the proposals set forth in Regulatory
sradovich on DSK3GMQ082PROD with NOTICES
(April 4, 2017), 82 FR 17336 (‘‘Notice’’). Notices 09–70 (December 2009) and 15–20 (May
5 See letter from Inigo J. Bengoechea, Director, 2015) with a few changes, including those made in
Program Recognition, and Daniel J. Larocco, response to comments. See Notice, supra note 4.
Manager, Program Recognition, CFA Institute, dated 8 In addition, FINRA proposes to delete certain
March 30, 2017 (‘‘CFA Letter’’); letter from Incorporated NYSE rules. FINRA states that these
Nathaniel Downes, CFA Society, Los Angeles, dated rules are substantially similar to the proposed rules,
April 4, 2017 (‘‘CFA Los Angeles Letter’’); letter otherwise incorporated in the proposed rules,
from Roman Iwachiw, CFA Society, Washington, rendered obsolete by the proposed rules, or
19 17 CFR 200.30–3(a)(12). DC, dated April 7, 2017 (‘‘CFA DC Letter’’); letter addressed by other rules. See id.
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Document Created: 2017-07-13 01:00:50
Document Modified: 2017-07-13 01:00:50
| 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 | 82 FR 32417 |
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