82_FR_37426 82 FR 37274 - Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the Effective Date of the Settlement Cycle Rule Changes

82 FR 37274 - Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the Effective Date of the Settlement Cycle Rule Changes

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 152 (August 9, 2017)

Page Range37274-37276
FR Document2017-16739

Federal Register, Volume 82 Issue 152 (Wednesday, August 9, 2017)
[Federal Register Volume 82, Number 152 (Wednesday, August 9, 2017)]
[Notices]
[Pages 37274-37276]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-16739]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81305; File No. SR-DTC-2017-015]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Establish the Effective Date of the Settlement Cycle Rule Changes

August 3, 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 July 31, 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) 
thereunder.\4\ 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).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    DTC is filing this proposed rule change to (i) establish September 
5, 2017 as the effective date (``Effective Date'') of the settlement 
cycle rule changes (``T2 Changes'') submitted pursuant to rule filing 
SR-DTC-2016-013 (``Prior Rule Filing''),\5\ (ii) incorporate the T2 
Changes into the DTC Settlement Service Guide (``Settlement Guide'') 
\6\ and DTC Distributions Service Guide (``Distributions Guide'') \7\ 
(collectively, ``Guides'') as of the Effective Date, and (iii) amend 
the legends (``Legends'') on the respective cover pages of the Guides 
in order to include the Effective Date and self-eliminating language 
for the Legends, and remove the Legends' current reference to DTC 
making a subsequent rule filing with the Commission, as this proposal 
is that subsequent rule filing.\8\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 79304 (November 14, 
2016), 81 FR 81825 (November 18, 2016) (SR-DTC-2016-013).
    \6\ Available at http://www.dtcc.com/~/media/Files/Downloads/
legal/service-guides/Settlement.pdf.
    \7\ Available at http://www.dtcc.com/~/media/Files/Downloads/
legal/service-guides/Distributions-Service-Guide-FINAL-January-
2017.pdf.
    \8\ Capitalized terms not otherwise defined herein have the 
respective meanings set forth in the DTC Rules, By-laws and 
Organization Certificate, available at http://www.dtcc.com/~/media/
Files/Downloads/legal/rules/dtc_rules.pdf.
---------------------------------------------------------------------------

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

[[Page 37275]]

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 Prior Rule Filing \9\ was filed by DTC pursuant to Section 
19(b)(3)(A) of the Act,\10\ and was effective upon filing with the 
Commission.
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    \9\ Supra note 5.
    \10\ 15 U.S.C. 78s(b)(3)(A).
---------------------------------------------------------------------------

    The purpose of the Prior Rule Filing was to amend the Guides to 
make technical revisions related to the anticipated industry-wide move 
to a shorter standard settlement cycle from the third business day 
after the trade date (``T+3'') to the second business day after the 
trade date (``T+2''). Although the Prior Rule Filing \11\ became 
effective pursuant to Section 19(b)(3)(A) of the Act, the Prior Rule 
Filing \12\ stated that the T2 Changes would not become effective and 
would not be implemented until an effective date is established by a 
subsequent proposed rule change to be submitted by DTC under Rule 19b-4 
of the Act.\13\
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    \11\ Supra note 5.
    \12\ Id.
    \13\ 17 CFR 240.19b-4.
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    DTC is filing this proposed rule change to (i) establish the 
Effective Date for the T2 Changes, which is also the compliance date 
for the Commission's amendment to Rule 15c6-1(a) under the Act,\14\ 
(ii) incorporate the T2 Changes into the Guides as of the Effective 
Date, and (iii) amend the Legends on the respective cover pages of the 
Guides in order to include the Effective Date and self-eliminating 
language for the Legends, and remove the Legends' current reference to 
DTC making a subsequent rule filing with the Commission, as this 
proposal is that subsequent rule filing.
---------------------------------------------------------------------------

    \14\ The Commission adopted an amendment to the Settlement Cycle 
Rule (Rule 15c6-1(a)) under the Act to shorten the standard 
settlement cycle for most broker-dealer transactions from T+3 to 
T+2. See Amendment to Securities Transaction Settlement Cycle, 
Exchange Act Release No. 80295 (March 22, 2017), 82 FR 15564 (March 
29, 2017).
---------------------------------------------------------------------------

2. Statutory Basis
    Section 17A(b)(3)(F) of the Act requires, in part, that the Guides 
be designed to promote the prompt and accurate clearance and settlement 
of securities transactions.\15\ The proposed rule change would 
establish the Effective Date for the T2 Changes and provide DTC 
participants (``Participants'') with an understanding of when the T2 
Changes will begin to affect them. Knowing when the T2 Changes will 
begin to affect Participants would enable them to timely fulfill their 
obligations to DTC, which would in turn ensure that securities 
transactions would be promptly and accurately cleared and settled 
within the industry standard settlement cycle and, by extension, 
facilitate the prompt and accurate clearance and settlement of 
securities transactions submitted to DTC for clearing and settlement. 
Therefore, DTC believes that the proposed rule change would promote the 
prompt and accurate clearance and settlement of securities 
transactions, consistent with Section 17A(b)(3)(F) of the Act cited 
above.
---------------------------------------------------------------------------

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

(B) Clearing Agency's Statement on Burden on Competition

    DTC does not believe that the proposed rule change to (i) establish 
the Effective Date for the T2 Changes, (ii) incorporate the T2 Changes 
into the Guides as of the Effective Date, and (iii) amend the 
respective Legends on the cover pages of the Guides in order to include 
the Effective Date and self-eliminating language for the Legends, and 
remove the Legends' current reference to DTC making a subsequent rule 
filing with the Commission would have any impact, or impose any burden, 
on competition because the proposed rule change is intended to provide 
additional clarity in the Guides regarding when the T2 Changes would 
become effective for Participants. As such, the proposed rule change 
would not impact a particular category of Participants nor would it 
impact particular types of Participants' businesses.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants, or Others

    DTC has not received or solicited any written comments relating to 
this proposal. 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 \16\ and paragraph (f) of Rule 19b-4 
thereunder.\17\ 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.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 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 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-2017-015 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-2017-015. 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-

[[Page 37276]]

2017-015 and should be submitted on or before August 30, 2017.
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    \18\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-16739 Filed 8-8-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                37274                            Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices

                                                considered irrelevant factors in order to                  Commission, 100 F Street NE.,                          (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
                                                establish fair, reasonable, and not                        Washington, DC 20549–1090.                             notice is hereby given that on July 31,
                                                unreasonably discriminatory fees and an                    All submissions should refer to File                   2017, The Depository Trust Company
                                                equitable allocation of fees among all                     Number SR–BatsBZX–2017–48. This file                   (‘‘DTC’’) filed with the Securities and
                                                users. The existence of alternatives to                    number should be included on the                       Exchange Commission (‘‘Commission’’)
                                                Multicast PITCH, including existing                        subject line if email is used. To help the             the proposed rule change as described
                                                similar feeds by other exchanges,                          Commission process and review your                     in Items I, II and III below, which Items
                                                consolidated data, and proprietary data                    comments more efficiently, please use                  have been prepared by the clearing
                                                from other sources, ensures that the                       only one method. The Commission will                   agency. DTC filed the proposed rule
                                                Exchange cannot set unreasonable fees,                     post all comments on the Commission’s                  change pursuant to Section 19(b)(3)(A)
                                                or fees that are unreasonably                              Internet Web site (http://www.sec.gov/                 of the Act 3 and Rule 19b–4(f)(4)
                                                discriminatory, when vendors and                           rules/sro.shtml). Copies of the                        thereunder.4 The Commission is
                                                subscribers can elect these alternatives                   submission, all subsequent                             publishing this notice to solicit
                                                or choose not to purchase a specific                       amendments, all written statements                     comments on the proposed rule change
                                                proprietary data product if its cost to                    with respect to the proposed rule                      from interested persons.
                                                purchase is not justified by the returns                   change that are filed with the                         I. Clearing Agency’s Statement of the
                                                any particular vendor or subscriber                        Commission, and all written                            Terms of Substance of the Proposed
                                                would achieve through the purchase.                        communications relating to the                         Rule Change
                                                (C) Self-Regulatory Organization’s                         proposed rule change between the                          DTC is filing this proposed rule
                                                Statement on Comments on the                               Commission and any person, other than                  change to (i) establish September 5,
                                                Proposed Rule Change Received From                         those that may be withheld from the                    2017 as the effective date (‘‘Effective
                                                Members, Participants or Others                            public in accordance with the                          Date’’) of the settlement cycle rule
                                                                                                           provisions of 5 U.S.C. 552, will be                    changes (‘‘T2 Changes’’) submitted
                                                  The Exchange has not solicited, and                      available for Web site viewing and
                                                does not intend to solicit, comments on                                                                           pursuant to rule filing SR–DTC–2016–
                                                                                                           printing in the Commission’s Public                    013 (‘‘Prior Rule Filing’’),5 (ii)
                                                this proposed rule change. The                             Reference Room, 100 F Street NE.,
                                                Exchange has not received any written                                                                             incorporate the T2 Changes into the
                                                                                                           Washington, DC 20549, on official                      DTC Settlement Service Guide
                                                comments from members or other                             business days between the hours of
                                                interested parties.                                                                                               (‘‘Settlement Guide’’) 6 and DTC
                                                                                                           10:00 a.m. and 3:00 p.m. Copies of such                Distributions Service Guide
                                                III. Date of Effectiveness of the                          filing will also be available for                      (‘‘Distributions Guide’’) 7 (collectively,
                                                Proposed Rule Change and Timing for                        inspection and copying at the principal                ‘‘Guides’’) as of the Effective Date, and
                                                Commission Action                                          office of the Exchange. All comments                   (iii) amend the legends (‘‘Legends’’) on
                                                                                                           received will be posted without change;                the respective cover pages of the Guides
                                                   The foregoing rule change has become
                                                                                                           the Commission does not edit personal                  in order to include the Effective Date
                                                effective pursuant to Section 19(b)(3)(A)
                                                                                                           identifying information from                           and self-eliminating language for the
                                                of the Act 17 and paragraph (f) of Rule
                                                                                                           submissions. You should submit only                    Legends, and remove the Legends’
                                                19b–4 thereunder.18 At any time within
                                                                                                           information that you wish to make                      current reference to DTC making a
                                                60 days of the filing of the proposed rule
                                                                                                           available publicly. All submissions                    subsequent rule filing with the
                                                change, the Commission summarily may
                                                                                                           should refer to File Number SR-                        Commission, as this proposal is that
                                                temporarily suspend such rule change if
                                                                                                           BatsBZX–2017–48 and should be                          subsequent rule filing.8
                                                it appears to the Commission that such
                                                                                                           submitted on or before August 30, 2017.
                                                action is necessary or appropriate in the                                                                         II. Clearing Agency’s Statement of the
                                                public interest, for the protection of                       For the Commission, by the Division of               Purpose of, and Statutory Basis for, the
                                                investors, or otherwise in furtherance of                  Trading and Markets, pursuant to delegated
                                                                                                           authority.19
                                                                                                                                                                  Proposed Rule Change
                                                the purposes of the Act.
                                                                                                           Eduardo A. Aleman,                                        In its filing with the Commission, the
                                                IV. Solicitation of Comments                               Assistant Secretary.                                   clearing agency included statements
                                                  Interested persons are invited to                        [FR Doc. 2017–16738 Filed 8–8–17; 8:45 am]
                                                                                                                                                                  concerning the purpose of and basis for
                                                submit written data, views, and                                                                                   the proposed rule change and discussed
                                                                                                           BILLING CODE 8011–01–P
                                                arguments concerning the foregoing,                                                                               any comments it received on the
                                                including whether the proposed rule                                                                               proposed rule change. The text of these
                                                                                                           SECURITIES AND EXCHANGE                                statements may be examined at the
                                                change is consistent with the Act.
                                                                                                           COMMISSION                                             places specified in Item IV below. The
                                                Comments may be submitted by any of
                                                the following methods:                                                                                              1 15 U.S.C. 78s(b)(1).
                                                                                                           [Release No. 34–81305; File No. SR–DTC–
                                                Electronic Comments                                                                                                 2 17 CFR 240.19b–4.
                                                                                                           2017–015]                                                3 15 U.S.C. 78s(b)(3)(A).
                                                  • Use the Commission’s Internet                                                                                   4 17 CFR 240.19b–4(f)(4).

                                                comment form (http://www.sec.gov/                          Self-Regulatory Organizations; The                       5 See Securities Exchange Act Release No. 79304

                                                rules/sro.shtml); or                                       Depository Trust Company; Notice of                    (November 14, 2016), 81 FR 81825 (November 18,
                                                  • Send an email to rule-comments@                        Filing and Immediate Effectiveness of                  2016) (SR–DTC–2016–013).
                                                                                                                                                                    6 Available at http://www.dtcc.com/∼/media/
                                                sec.gov. Please include File No. SR–                       Proposed Rule Change To Establish
                                                                                                                                                                  Files/Downloads/legal/service-guides/
sradovich on DSK3GMQ082PROD with NOTICES




                                                BatsBZX–2017–48 on the subject line.                       the Effective Date of the Settlement                   Settlement.pdf.
                                                                                                           Cycle Rule Changes                                       7 Available at http://www.dtcc.com/∼/media/
                                                Paper Comments                                                                                                    Files/Downloads/legal/service-guides/Distributions-
                                                  • Send paper comments in triplicate                      August 3, 2017.                                        Service-Guide-FINAL-January-2017.pdf.
                                                to Secretary, Securities and Exchange                        Pursuant to Section 19(b)(1) of the                    8 Capitalized terms not otherwise defined herein

                                                                                                           Securities Exchange Act of 1934                        have the respective meanings set forth in the DTC
                                                                                                                                                                  Rules, By-laws and Organization Certificate,
                                                  17 15   U.S.C. 78s(b)(3)(A).                                                                                    available at http://www.dtcc.com/∼/media/Files/
                                                  18 17   CFR 240.19b–4(f).                                  19 17   CFR 200.30–3(a)(12).                         Downloads/legal/rules/dtc_rules.pdf.



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                                                                           Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices                                                37275

                                                clearing agency has prepared                            (‘‘Participants’’) with an understanding                  temporarily suspend such rule change if
                                                summaries, set forth in sections A, B,                  of when the T2 Changes will begin to                      it appears to the Commission that such
                                                and C below, of the most significant                    affect them. Knowing when the T2                          action is necessary or appropriate in the
                                                aspects of such statements.                             Changes will begin to affect Participants                 public interest, for the protection of
                                                                                                        would enable them to timely fulfill their                 investors, or otherwise in furtherance of
                                                (A) Clearing Agency’s Statement of the                  obligations to DTC, which would in turn                   the purposes of the Act.
                                                Purpose of, and Statutory Basis for, the                ensure that securities transactions
                                                Proposed Rule Change                                    would be promptly and accurately                          IV. Solicitation of Comments
                                                1. Purpose                                              cleared and settled within the industry                     Interested persons are invited to
                                                   The Prior Rule Filing 9 was filed by                 standard settlement cycle and, by                         submit written data, views, and
                                                DTC pursuant to Section 19(b)(3)(A) of                  extension, facilitate the prompt and                      arguments concerning the foregoing,
                                                the Act,10 and was effective upon filing                accurate clearance and settlement of                      including whether the proposed rule
                                                with the Commission.                                    securities transactions submitted to DTC                  change is consistent with the Act.
                                                   The purpose of the Prior Rule Filing                 for clearing and settlement. Therefore,                   Comments may be submitted by any of
                                                was to amend the Guides to make                         DTC believes that the proposed rule                       the following methods:
                                                technical revisions related to the                      change would promote the prompt and
                                                                                                                                                                  Electronic Comments
                                                anticipated industry-wide move to a                     accurate clearance and settlement of
                                                shorter standard settlement cycle from                  securities transactions, consistent with                    • Use the Commission’s Internet
                                                the third business day after the trade                  Section 17A(b)(3)(F) of the Act cited                     comment form (http://www.sec.gov/
                                                date (‘‘T+3’’) to the second business day               above.                                                    rules/sro.shtml); or
                                                after the trade date (‘‘T+2’’). Although                                                                            • Send an email to rule-comments@
                                                                                                        (B) Clearing Agency’s Statement on                        sec.gov. Please include File Number SR–
                                                the Prior Rule Filing 11 became effective               Burden on Competition
                                                pursuant to Section 19(b)(3)(A) of the                                                                            DTC–2017–015 on the subject line.
                                                                                                           DTC does not believe that the
                                                Act, the Prior Rule Filing 12 stated that                                                                         Paper Comments
                                                                                                        proposed rule change to (i) establish the
                                                the T2 Changes would not become
                                                                                                        Effective Date for the T2 Changes, (ii)                      • Send paper comments in triplicate
                                                effective and would not be implemented
                                                                                                        incorporate the T2 Changes into the                       to Secretary, Securities and Exchange
                                                until an effective date is established by
                                                                                                        Guides as of the Effective Date, and (iii)                Commission, 100 F Street NE.,
                                                a subsequent proposed rule change to be
                                                                                                        amend the respective Legends on the                       Washington, DC 20549–1090.
                                                submitted by DTC under Rule 19b-4 of
                                                                                                        cover pages of the Guides in order to                     All submissions should refer to File
                                                the Act.13
                                                                                                        include the Effective Date and self-                      Number SR–DTC–2017–015. This file
                                                   DTC is filing this proposed rule
                                                                                                        eliminating language for the Legends,                     number should be included on the
                                                change to (i) establish the Effective Date
                                                                                                        and remove the Legends’ current                           subject line if email is used. To help the
                                                for the T2 Changes, which is also the
                                                                                                        reference to DTC making a subsequent                      Commission process and review your
                                                compliance date for the Commission’s
                                                                                                        rule filing with the Commission would                     comments more efficiently, please use
                                                amendment to Rule 15c6–1(a) under the
                                                                                                        have any impact, or impose any burden,                    only one method. The Commission will
                                                Act,14 (ii) incorporate the T2 Changes
                                                                                                        on competition because the proposed                       post all comments on the Commission’s
                                                into the Guides as of the Effective Date,
                                                                                                        rule change is intended to provide                        Internet Web site (http://www.sec.gov/
                                                and (iii) amend the Legends on the
                                                                                                        additional clarity in the Guides                          rules/sro.shtml). Copies of the
                                                respective cover pages of the Guides in
                                                                                                        regarding when the T2 Changes would                       submission, all subsequent
                                                order to include the Effective Date and
                                                                                                        become effective for Participants. As                     amendments, all written statements
                                                self-eliminating language for the
                                                                                                        such, the proposed rule change would                      with respect to the proposed rule
                                                Legends, and remove the Legends’
                                                                                                        not impact a particular category of                       change that are filed with the
                                                current reference to DTC making a
                                                                                                        Participants nor would it impact                          Commission, and all written
                                                subsequent rule filing with the
                                                                                                        particular types of Participants’                         communications relating to the
                                                Commission, as this proposal is that
                                                                                                        businesses.                                               proposed rule change between the
                                                subsequent rule filing.
                                                                                                        (C) Clearing Agency’s Statement on                        Commission and any person, other than
                                                2. Statutory Basis                                                                                                those that may be withheld from the
                                                                                                        Comments on the Proposed Rule
                                                   Section 17A(b)(3)(F) of the Act                      Change Received From Members,                             public in accordance with the
                                                requires, in part, that the Guides be                   Participants, or Others                                   provisions of 5 U.S.C. 552, will be
                                                designed to promote the prompt and                                                                                available for Web site viewing and
                                                                                                          DTC has not received or solicited any
                                                accurate clearance and settlement of                                                                              printing in the Commission’s Public
                                                                                                        written comments relating to this
                                                securities transactions.15 The proposed                                                                           Reference Room, 100 F Street NE.,
                                                                                                        proposal. DTC will notify the
                                                rule change would establish the                                                                                   Washington, DC 20549–1090 on official
                                                                                                        Commission of any written comments
                                                Effective Date for the T2 Changes and                                                                             business days between the hours of
                                                                                                        received by DTC.
                                                provide DTC participants                                                                                          10:00 a.m. and 3:00 p.m. Copies of the
                                                                                                        III. Date of Effectiveness of the                         filing also will be available for
                                                  9 Supra note 5.                                       Proposed Rule Change, and Timing for                      inspection and copying at the principal
                                                  10 15 U.S.C. 78s(b)(3)(A).
                                                                                                        Commission Action                                         office of DTC and on DTCC’s Web site
                                                  11 Supra note 5.
                                                                                                           The foregoing rule change has become                   (http://dtcc.com/legal/sec-rule-
                                                  12 Id.
                                                                                                                                                                  filings.aspx). All comments received
sradovich on DSK3GMQ082PROD with NOTICES




                                                  13 17 CFR 240.19b–4.                                  effective pursuant to Section 19(b)(3)(A)
                                                  14 The Commission adopted an amendment to the         of the Act 16 and paragraph (f) of Rule                   will be posted without change; the
                                                Settlement Cycle Rule (Rule 15c6–1(a)) under the        19b–4 thereunder.17 At any time within                    Commission does not edit personal
                                                Act to shorten the standard settlement cycle for        60 days of the filing of the proposed rule                identifying information from
                                                most broker-dealer transactions from T+3 to T+2.
                                                                                                        change, the Commission summarily may                      submissions. You should submit only
                                                See Amendment to Securities Transaction                                                                           information that you wish to make
                                                Settlement Cycle, Exchange Act Release No. 80295
                                                (March 22, 2017), 82 FR 15564 (March 29, 2017).           16 15   U.S.C. 78s(b)(3)(A).                            available publicly. All submissions
                                                  15 15 U.S.C. 78q–1(b)(3)(F).                            17 17   CFR 240.19b–4(f).                               should refer to File Number SR–DTC–


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                                                37276                       Federal Register / Vol. 82, No. 152 / Wednesday, August 9, 2017 / Notices

                                                2017–015 and should be submitted on                     DDR filed its initial application with the             Act of 2010 added Section 13(n) to the
                                                or before August 30, 2017.                              Commission (‘‘Initial Form SDR’’) on                   Securities Exchange Act of 1934
                                                  For the Commission, by the Division of                April 6, 2016, as amended on April 25,                 (‘‘Exchange Act’’), which makes it
                                                Trading and Markets, pursuant to delegated              2016, and notice thereof was published                 ‘‘unlawful for any person, unless
                                                authority.18                                            in the Federal Register on July 7, 2016,               registered with the Commission,
                                                Eduardo A. Aleman,                                      to solicit comment from interested                     directly or indirectly, to make use of the
                                                Assistant Secretary.                                    persons.5 The Commission received five                 mails or any means or instrumentality of
                                                [FR Doc. 2017–16739 Filed 8–8–17; 8:45 am]
                                                                                                        comment letters to date on DDR’s Initial               interstate commerce to perform the
                                                BILLING CODE 8011–01–P
                                                                                                        Form SDR.6                                             function of a security-based SDR.’’ To be
                                                                                                          DDR submitted its Amended Form                       registered and maintain registration,
                                                                                                        SDR with both technical and                            each SDR must comply with certain
                                                SECURITIES AND EXCHANGE                                 substantive changes, including, but not                requirements and ‘‘core principles’’
                                                COMMISSION                                              limited to, revisions to several                       described in Section 13(n) as well as
                                                                                                        important policies and procedures.                     any requirement that the Commission
                                                [Release No. 34–81302; File No. SBSDR–                  DDR’s Amended Form SDR described                       may impose by rule or regulation.9
                                                2016–02]                                                herein includes 7 substantive                             Exchange Act Rules 13n–1 through
                                                                                                        amendments to DDR’s policies and                       13n–12 (‘‘SDR Rules’’), establish the
                                                Security-Based Swap Data
                                                                                                        procedures relating to fees and fee                    procedures and Form SDR by which an
                                                Repositories; DTCC Data Repository
                                                                                                        policies, calculation of positions,                    SDR shall register with the Commission
                                                (U.S.), LLC; Notice of Filing of
                                                                                                        resolution of disputes, termination and                and certain ‘‘duties and core principles’’
                                                Amended Application for Registration
                                                                                                        disciplinary procedures, access to and                 to which an SDR must adhere.10 Among
                                                as a Security-Based Swap Data
                                                                                                        use of data, and compliance with                       other requirements, the SDR Rules
                                                Repository
                                                                                                        Regulation SBSR. The Commission                        require an SDR to collect and maintain
                                                August 3, 2017.                                         seeks comment from interested parties                  complete and accurate SBS data and
                                                                                                        on the Amended Form SDR, the changes                   make such data available to the
                                                I. Introduction                                         discussed in this notice, as well as any               Commission and other authorities so
                                                   On April 28, 2017, DTCC Data                         other changes DDR made in its                          that relevant authorities will be better
                                                Repository, LLC (‘‘DDR’’) filed with the                Amended Form SDR, and is publishing                    able to monitor the buildup and
                                                U.S. Securities and Exchange                            DDR’s revisions in its Amended Form                    concentration of risk exposure in the
                                                Commission (‘‘Commission’’ or ‘‘SEC’’)                  SDR with a 21-day comment period.8                     SBS market.11
                                                an amended application pursuant to
                                                Section 13(n)(1) of the Securities                      II. Background                                            Concurrent with the Commission’s
                                                Exchange Act of 1934 (‘‘Exchange                                                                               adoption of the SDR rules, the
                                                                                                        A. SDR Registration, Duties and Core
                                                Act’’) 1 and Exchange Act Rule 13n–1                    Principles, and Regulation SBSR                        Commission adopted,12 and later
                                                thereunder,2 seeking registration as a                                                                         amended,13 Exchange Act Rules 900 to
                                                                                                          Section 763(i) of the Dodd-Frank Wall                909 (‘‘Regulation SBSR’’),14 which,
                                                security-based swap data repository                     Street Reform and Consumer Protection
                                                (‘‘SDR’’) for security-based swap                                                                              among other things, provide for the
                                                (‘‘SBS’’) transactions in the equity,                                                                          reporting of SBS trade data to registered
                                                                                                        materials in redlined form on the Commission’s         SDRs, and the public dissemination of
                                                credit, and interest rate 3 derivatives                 Web site at: https://www.sec.gov/rules/other/2017/
                                                asset classes (‘‘Amended Form SDR’’).4                  34-81302.pdf. DDR’s Form SDR application also          SBS transaction, volume, and pricing
                                                                                                        constitutes an application for registration as a       information by registered SDRs. In
                                                  18 17
                                                                                                        securities information processor. See Exchange Act     addition, Regulation SBSR requires each
                                                         CFR 200.30–3(a)(12).                           Release No. 74246 (Feb. 11, 2015), 80 FR 14438,
                                                  1 15  U.S.C. 78m(n)(1).                               14458 (Mar. 19, 2015) (‘‘SDR Adopting Release’’).
                                                                                                                                                               registered SDR to register with the
                                                   2 17 CFR 240.13n–1.                                     5 See Exchange Act Release No. 78216 (June 30,      Commission as a securities information
                                                   3 DDR seeks to include in its application the
                                                                                                        2016), 81 FR 44379 (July 7, 2016) (‘‘DDR Notice        processor (‘‘SIP’’).15
                                                ‘‘interest rates’’ asset class based on feedback from   Release’’).
                                                potential DDR participants who have identified             6 See letters from Jennifer S. Choi, Associate      B. Standard for Granting SDR
                                                certain types of transactions which will be reported    General Counsel, Investment Company Institute          Registration
                                                through the interest rate infrastructure within the     (August 5, 2016); Tara Kruse, Director, Co-Head of
                                                industry and that the industry participants have        Data, Reporting and FpML, International Swaps and        To be registered with the Commission
                                                identified as falling under the definition of a SBS.    Derivatives Association, Inc. (August 8, 2016);        as an SDR and maintain such
                                                The Commission notes that DDR’s application is for      Andrew Rogers, Director and Global Head of
                                                registration as a SBS data repository, which the
                                                                                                                                                               registration, an SDR is required (absent
                                                                                                        Reference Data, IHS Markit (Aug. 8, 2016);
                                                Exchange Act defines as a ‘‘person that collects and    Katherine Delp, DDR Business Manager, DTCC Data        an exemption) to comply with the
                                                maintains information or records with respect to        Repository (U.S.) LLC (September 1, 2016); Timothy     requirements and core principles
                                                transactions or positions in, or the terms and          W. Cameron, Asset Management Group—Head, and           described in Exchange Act Section
                                                conditions of, security-based swaps entered into by     Laura Martin, Asset Management Group—Managing
                                                third parties for the purpose of providing a
                                                                                                                                                               13(n), as well as with any requirements
                                                                                                        Director and Associate General Counsel, Securities
                                                centralized recordkeeping facility for security-based   Industry and Financial Markets Association (August     that the Commission adopts by rule or
                                                swaps.’’ 15 U.S.C. 78c(a)(75).                          5, 2016. Copies of all comment letters are available
                                                   4 DDR filed its Amended Form SDR, including the      at https://www.sec.gov/comments/sbsdr-2016-01/           9 15  U.S.C. 78m(n).
                                                exhibits thereto, electronically with the               sbsdr201601.htm.                                         10 17  CFR 240.13n–1 through 13n–12. See also
                                                Commission. The descriptions set forth in this             7 DDR is amending, replacing or eliminating a
                                                                                                                                                               SDR Adopting Release, 80 FR 14438.
                                                notice regarding the structure and operations of        number of its exhibits not discussed in this notice.      11 See id. at 14450.
                                                DDR have been derived, excerpted, and/or                Please see Amended Form SDR to view all changes           12 See Securities Exchange Act Release No. 74244
                                                summarized from information in DDR’s Amended            to DDR’s Amended Form SDR, available at https://
sradovich on DSK3GMQ082PROD with NOTICES




                                                Form SDR application, which outlines the                www.sec.gov/cgi-bin/browse-edgar?company=              (Feb. 11, 2015), 80 FR 14563 (Mar. 19, 2015).
                                                                                                                                                                  13 See Securities Exchange Act Release No. 78321
                                                applicant’s policies and procedures designed to         dtcc&owner=exclude&action=getcompany and
                                                address its statutory and regulatory obligations as     https://www.sec.gov/rules/other/2017/34-81302.pdf.     (July 14, 2016), 81 FR 53546 (Aug. 12, 2016).
                                                                                                                                                                  14 See 17 CFR 242.900 to 242.909; see also
                                                an SDR registered with the Commission. DDR’s               8 The Commission intends to address any

                                                Amended Form SDR and non-confidential exhibits          comments received for this notice, as well as those    Exchange Act Release No. 74244 (Feb. 11, 2015), 80
                                                thereto are available on https://www.sec.gov/cgi-       comments previously submitted regarding the            FR 14563 (Mar. 19, 2015) (‘‘Regulation SBSR
                                                bin/browse-edgar?company=                               Initial Form SDR, when the Commission makes a          Adopting Release’’).
                                                dtcc&owner=exclude&action=getcompany. In                determination of whether to register DDR as an SDR        15 See Regulation SBSR Adopting Release, 80 FR

                                                addition, the public may access copies of these         pursuant to Rule 13n–1(c).                             at 14567.



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Document Created: 2017-08-09 02:18:13
Document Modified: 2017-08-09 02:18:13
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 Citation82 FR 37274 

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