83 FR 17691 - Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the DTC Redemptions Service Guide and the DTC Reorganizations Service Guide To Add Clarifying Text Relating to the Processing of MMI Securities
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 78 (April 23, 2018)
Federal Register Volume 83, Issue 78 (April 23, 2018)
| Page Range | 17691-17694 | |
| FR Document | 2018-08355 |
[Federal Register Volume 83, Number 78 (Monday, April 23, 2018)] [Notices] [Pages 17691-17694] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-08355] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83058; File No. SR-DTC-2018-003] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the DTC Redemptions Service Guide and the DTC Reorganizations Service Guide To Add Clarifying Text Relating to the Processing of MMI Securities April 17, 2018. 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 April 16, 2018, 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. 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. --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change \3\ consists of proposed modifications to the DTC Reorganizations Service Guide (``Reorganizations Guide'') \4\ and the DTC Redemptions Service Guide (``Redemptions Guide'') \5\ to make clarifying changes and provide enhanced transparency within DTC's Procedures \6\ relating to the processing of transactions in money market instruments (``Money Market Securities'') in DTC's MMI Program,\7\ as described below. --------------------------------------------------------------------------- \3\ Each capitalized term not otherwise defined herein has its respective meaning as set forth in the Rules, By-Laws and Organization Certificate of The Depository Trust Company (``Rules''), available at http://www.dtcc.com/legal/rules-and-procedures.aspx and the DTC Settlement Service Guide (``Settlement Guide''), available at http://www.dtcc.com/~/media/Files/Downloads/ legal/service-guides/Settlement.pdf. \4\ Available at http://www.dtcc.com/~/media/Files/Downloads/ legal/service-guides/Reorganization-Service-Guide.pdf. \5\ Available at http://www.dtcc.com/~/media/Files/Downloads/ legal/service-guides/Redemptions.pdf. \6\ Pursuant to the Rules, the term ``Procedures'' means the Procedures, service guides, and regulations of DTC adopted pursuant to Rule 27, as amended from time to time. See Rule 1, Section 1, supra note 3, at 13. \7\ Pursuant to the Rules, the term MMI Program means the Program for transactions in MMI Securities, as provided in Rule 9(C) and as specified in the Procedures. See Rule 1, Section 1, supra note 3, at 10. Eligibility for inclusion in the MMI Program covers MMI Securities, which are short-term debt Securities that generally mature 1 to 270 days from their original issuance date. MMI Securities include, but are not limited to, commercial paper, banker's acceptances and short-term bank notes and are issued by financial institutions, large corporations, or state and local governments. Most MMI Securities trade in large denominations (typically, $250,000 to $50 million) and are purchased by institutional investors. Eligibility for inclusion in the MMI Program also covers medium term notes that mature over a longer term. --------------------------------------------------------------------------- [[Page 17692]] II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the clearing agency included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The clearing agency has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. (A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The proposed rule change consists of proposed modifications to the DTC Reorganizations Guide and the DTC Redemptions Guide to make clarifying changes and provide enhanced transparency within DTC's Procedures relating to the processing of transactions in MMI Securities in DTC's MMI Program, as discussed below. Background When an issuer of MMI Securities (``Issuer'') issues MMI Securities at DTC, the Issuing and Paying Agent (``IPA'') for that Issuer sends issuance instructions to DTC electronically, which results in crediting the applicable MMI Securities to the DTC Account of the IPA. These MMI Securities are then Delivered to the Accounts of applicable Participants that are purchasing the issuance of MMI Securities in accordance with their purchase amounts. These purchasing Participants typically include broker/dealers or banks, acting as custodians for institutional investors. The IPA Delivery instructions may be free of payment or, most often, Delivery Versus Payment. Deliveries of MMI Securities are processed pursuant to the same Rules and the applicable Procedures set forth in the Settlement Guide, as are Deliveries generally, whether free or versus payment. Delivery Versus Payment transactions are subject to risk management controls of the IPA and Receiving Participants for Net Debit Cap and Collateral Monitor sufficiency,\8\ and payment for Delivery Versus Payment transactions is due from the receiving Participants through DTC's net settlement process. To the extent, if any, that the Participant has a Net Debit Balance in its Settlement Account at end-of-day, payment of that amount is due to DTC. --------------------------------------------------------------------------- \8\ Delivery Versus Payment transfers at DTC are structured so that the completion of Delivery of Securities to a Participant in end-of-day settlement is contingent on the receiving Participant satisfying its end-of-day net settlement obligation, if any. The risk of Participant failure to settle is managed through risk management controls, structured so that DTC may complete settlement despite the failure to settle of the Participant, or Affiliated Family of Participants, with the largest net settlement obligation. The two principal controls are the Net Debit Cap and Collateral Monitor. The largest net settlement obligation of a Participant or Affiliated Family of Participants cannot exceed DTC liquidity resources, based on the Net Debit Cap, and must be fully collateralized, based on the Collateral Monitor. This structure is designed so that DTC may pledge or liquidate Collateral of the defaulting Participant in order to fund settlement among non- defaulting Participants. Liquidity resources, including the Participants Fund and a committed line of credit with a consortium of lenders, are available to complete settlement among non- defaulting Participants. --------------------------------------------------------------------------- In 2017, DTC implemented rule changes (``2017 Changes'') relating to the processing of MMI Securities to improve the efficiency and reduce risks associated with the processing of transactions in MMI Securities, as described in the rule filing pursuant to which the 2017 Changes were implemented.\9\ The 2017 Changes included amendments to the Rules, Settlement Guide \10\ and DTC Distributions Service Guide (``Distributions Guide'') \11\ in this regard. --------------------------------------------------------------------------- \9\ Securities Exchange Act Release No. 34-79764 (January 9, 2017), 82 FR 4434 (January 13, 2018) (SR-DTC-2016-008). \10\ Supra note 3. \11\ Available at http://www.dtcc.com/~/media/Files/Downloads/ legal/service-guides/Service%20Guide%20Distributions.pdf. --------------------------------------------------------------------------- While the Rules and Procedures governing the processing of transactions in MMI Securities are primarily contained in the Rules \12\ and the Settlement Guide,\13\ the Distributions Guide was amended pursuant to the 2017 Changes to make clarifying changes to text relating to the processing of Income Presentments,\14\ so that it is consistent with the Settlement Guide in that regard. --------------------------------------------------------------------------- \12\ See Rule 9(A), Rule 9(B) and Rule 9(C), supra note 3. \13\ See supra note 3 at 45-47. \14\ Pursuant to the Rules, the term ``Income Presentment'' means an instruction initiated by DTC to credit the Account of DTC with an amount of interest or dividend income payable to DTC by an issuer in respect of MMI Securities (other than an amount of interest or dividend income or other distribution of cash or property payable to DTC by the issuer in connection with a Maturity Presentment or a Reorganization Presentment) and to debit the designated Paying Agent Account for that issue with the same amount, as provided in Rule 9(C) and as specified in the Procedures. See Rule 1, Section 1, supra note 1, at 7. --------------------------------------------------------------------------- The proposed rule change would make clarifying changes to the Reorganizations Guide and Redemptions Guide to add text similar to that included in the Distributions Guide \15\ pursuant to the 2017 Changes and clarify certain aspects of processing relating more specifically to Reorganization Presentments and Maturity Presentments, as described below. --------------------------------------------------------------------------- \15\ See supra note 11 at 28. --------------------------------------------------------------------------- Proposed Changes to the Redemptions Guide As mentioned above, provisions governing the processing of transactions in MMI Securities are primarily contained in the Rules and Settlement Guide. The Redemptions Guide currently contains provisions relating to the processing of maturity events for non-MMI Securities and does not contain text relating to the processing of maturities of MMI Securities. In order to provide (i) enhanced clarity for Participants, and (ii) a point of reference within the Redemptions Guide, with respect to processing of transactions in maturing MMI Securities, the proposed rule change would amend the Redemptions Guide to (a) add a brief description of Maturity Presentments and the processing of transactions relating to them, (b) add a brief description of the ``Settlement User Interface,'' which is used by Participants to submit input and inquiries relating to the processing of transactions in MMI Securities in accordance with the Settlement Guide,\16\ and (c) provide a cross-reference to the Settlement Guide for Procedures relating to processing of transactions in MMI Securities. --------------------------------------------------------------------------- \16\ See supra note 3 at 5. --------------------------------------------------------------------------- In this regard, the following text would be added to a new section of the Redemptions Guide that would be titled ``Maturity Presentments for MMI Issues,'' as follows: A ``Maturity Presentment'' is a Delivery Versus Payment (as defined in Rule 1) of matured money market instruments (MMI Securities) from the account of a presenting Participant to a designated paying agent account for that issue and is subject to, and is processed in accordance with, Rule 9(A), Rule 9(B), Rule 9(C) of DTC and the Procedures set forth in the DTC Settlement Service Guide. Maturity [[Page 17693]] Presentments are not attempted for processing until the issuer's issuing and paying agent (IPA) makes a funding decision in the form of an ``MMI Funding Acknowledgment.'' Once a funding decision is made items will be processed subject to risk controls and the sufficient inventory of the relevant Participants. IPAs and other Participants may submit input and inquiries relating to MMI Securities processing through the Settlement User Interface. See the DTC Settlement Service Guide, available at http://www.dtcc.com/~/media/Files/Downloads/legal/ service-guides/Settlement.pdf, for the DTC Procedures relating to the processing of transactions in MMI Securities. Proposed Changes to the Reorganizations Guide As mentioned above, provisions governing the processing of transactions in MMI Securities are primarily contained in the Rules \17\ and Settlement Guide.\18\ The Reorganizations Guide currently contains provisions relating to the processing of reorganizations for non-MMI Securities and does not contain text relating to the processing of Reorganization Presentments. In order to provide (i) enhanced clarity and transparency for Participants, and (ii) a point of reference within the Reorganizations Guide, with respect to processing of Reorganization Presentments, the proposed rule change would amend the Reorganizations Guide to (a) add a brief description of Reorganization Presentments and the processing of transactions relating to them, (b) add a brief description of the ``Settlement User Interface,'' which is used by Participants to submit input and inquiries relating to processing of transactions in MMI Securities in accordance with the Settlement Guide,\19\ and (c) provide a cross- reference to the Settlement Guide for Procedures relating to the processing of transactions in MMI Securities. --------------------------------------------------------------------------- \17\ See supra note 12. \18\ See supra note 13. \19\ See supra note 16. --------------------------------------------------------------------------- In this regard, the following text would be added to a new section of the Reorganizations Guide that would be titled ``Reorganization Presentments for MMI Issues,'' as follows: A ``Reorganization Presentment'' is a Delivery Versus Payment (as defined in Rule 1) of money market instruments (MMI Securities) in response to a reorganization action from the account of a presenting Participant to a designated paying agent account for that issue, and is subject to, and is processed in accordance with Rule 9(A), Rule 9(B), Rule 9(C) of DTC and the Procedures set forth in the Settlement Service Guide. Reorganization Presentments are not attempted for processing until the issuer's issuing and paying agent (IPA) makes a funding decision in the form of an ``MMI Funding Acknowledgment.'' Once a funding decision is made items will be processed subject to risk controls and the sufficient inventory of the relevant Participants. IPAs and other Participants may submit input and inquiries relating to processing of transactions in MMI Securities through the Settlement User Interface. See the DTC Settlement Service Guide, available at http://www.dtcc.com/~/media/Files/Downloads/legal/service-guides/ Settlement.pdf, for the DTC Procedures relating to the processing of transactions in MMI Securities. Effective Date The proposed rule change would become effective upon filing with the Commission. 2. Statutory Basis Section 17A(b)(3)(F) of the Act \20\ requires that the rules of the clearing agency be designed, inter alia, to promote the prompt and accurate clearance and settlement of securities transactions. DTC believes that the proposed rule change is consistent with this provision of the Act because by adding text within the Procedures set forth in the Redemptions Guide and Reorganizations Guide regarding the processing of MMI Securities, the proposed rule change would provide enhanced clarity and transparency for Participants with respect to the Rules and Procedures relating to the processing of Maturity Presentments and Reorganization Presentments, as described above. Therefore, by providing Participants with enhanced clarity and transparency with regard to the Procedures relating to the processing of Maturity Presentments and Reorganizations Presentments, DTC believes that the proposed rule change would promote the prompt and accurate clearance and settlement of securities transactions consistent with the Act. --------------------------------------------------------------------------- \20\ 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 would have any impact, or impose any burden, on competition. The proposed rule change would merely clarify and provide enhanced transparency with respect to the processing of transactions in MMI Securities by adding text to the Redemptions Service Guide and the Reorganizations Service Guide that is consistent with existing provisions set forth in the Rules and the Settlement Guide, as described above. (C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments relating to this proposed rule change have not been solicited or received. DTC will notify the Commission of any written comments received by DTC. III. Date of Effectiveness of the Proposed Rule Change, and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \21\ and paragraph (f) of Rule 19b-4 thereunder.\22\ 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. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78s(b)(3)(A). \22\ 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-2018-003 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549. All submissions should refer to File Number SR-DTC-2018-003. 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 website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent [[Page 17694]] 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 website viewing and printing in the Commission's Public Reference Room, 100 F Street, NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of DTC and on DTCC's website (http://dtcc.com/legal/sec-rule-filings.aspx). All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-DTC-2018-003 and should be submitted on or before May 14, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-08355 Filed 4-20-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 78 / Monday, April 23, 2018 / Notices 17691
subparagraph (f)(6) of Rule 19b–4 • Send an email to rule-comments@ SECURITIES AND EXCHANGE
thereunder.8 sec.gov. Please include File Number SR– COMMISSION
A proposed rule change filed under NASDAQ–2018–027 on the subject line.
Rule 19b–4(f)(6) 9 normally does not [Release No. 34–83058; File No. SR–DTC–
Paper Comments 2018–003]
become operative prior to 30 days after
the date of the filing. However, Rule
• Send paper comments in triplicate Self-Regulatory Organizations; The
19b–4(f)(6)(iii) 10 permits the Depository Trust Company; Notice of
Commission to designate a shorter time to Secretary, Securities and Exchange
Commission, 100 F Street NE, Filing and Immediate Effectiveness of
if such action is consistent with the Proposed Rule Change To Amend the
protection of investors and the public Washington, DC 20549–1090.
DTC Redemptions Service Guide and
interest. The Exchange has requested All submissions should refer to File the DTC Reorganizations Service
that the Commission to waive the 30- Number SR–NASDAQ–2018–027. This Guide To Add Clarifying Text Relating
day operative delay so that the proposal file number should be included on the to the Processing of MMI Securities
will become operative upon filing. The subject line if email is used. To help the
Exchange stated that removing the Commission process and review your April 17, 2018.
duplicative CAT Rules, as discussed comments more efficiently, please use Pursuant to Section 19(b)(1) of the
above, will bring greater clarity to its Securities Exchange Act of 1934
only one method. The Commission will
rulebook and will eliminate any (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
potential confusion to the benefit of its post all comments on the Commission’s
notice is hereby given that on April 16,
members and investors. Therefore, the internet website (http://www.sec.gov/
2018, The Depository Trust Company
Commission believes that waiver of the rules/sro.shtml). Copies of the
(‘‘DTC’’) filed with the Securities and
30-day operative delay is consistent submission, all subsequent Exchange Commission (‘‘Commission’’)
with the protection of investors and the amendments, all written statements the proposed rule change as described
public interest. Accordingly, the with respect to the proposed rule in Items I, II and III below, which Items
Commission hereby waives the change that are filed with the have been prepared by the clearing
operative delay and designates the Commission, and all written agency. The Commission is publishing
proposed rule change as operative upon communications relating to the this notice to solicit comments on the
filing.11 proposed rule change between the proposed rule change from interested
At any time within 60 days of the Commission and any person, other than persons.
filing of the proposed rule change, the those that may be withheld from the
Commission summarily may public in accordance with the I. Clearing Agency’s Statement of the
temporarily suspend such rule change if Terms of Substance of the Proposed
provisions of 5 U.S.C. 552, will be
it appears to the Commission that such Rule Change
available for website viewing and
action is: (i) Necessary or appropriate in printing in the Commission’s Public The proposed rule change 3 consists of
the public interest; (ii) for the protection Reference Room, 100 F Street NE, proposed modifications to the DTC
of investors; or (iii) otherwise in Reorganizations Service Guide
Washington, DC 20549, on official
furtherance of the purposes of the Act. (‘‘Reorganizations Guide’’) 4 and the
business days between the hours of
If the Commission takes such action, the DTC Redemptions Service Guide
Commission shall institute proceedings 10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for (‘‘Redemptions Guide’’) 5 to make
to determine whether the proposed rule clarifying changes and provide
should be approved or disapproved. inspection and copying at the principal
enhanced transparency within DTC’s
office of the Exchange. All comments
IV. Solicitation of Comments Procedures 6 relating to the processing
received will be posted without change.
of transactions in money market
Interested persons are invited to Persons submitting comments are instruments (‘‘Money Market
submit written data, views, and cautioned that we do not redact or edit Securities’’) in DTC’s MMI Program,7 as
arguments concerning the foregoing, personal identifying information from described below.
including whether the proposed rule comment submissions. You should
change is consistent with the Act. submit only information that you wish 1 15 U.S.C. 78s(b)(1).
Comments may be submitted by any of to make available publicly. All 2 17 CFR 240.19b–4.
the following methods: submissions should refer to File 3 Each capitalized term not otherwise defined
herein has its respective meaning as set forth in the
Electronic Comments Number SR–NASDAQ–2018–027 and Rules, By-Laws and Organization Certificate of The
• Use the Commission’s internet should be submitted on or before May Depository Trust Company (‘‘Rules’’), available at
comment form (http://www.sec.gov/ 14, 2018. http://www.dtcc.com/legal/rules-and-
procedures.aspx and the DTC Settlement Service
rules/sro.shtml); or For the Commission, by the Division of Guide (‘‘Settlement Guide’’), available at http://
Trading and Markets, pursuant to delegated www.dtcc.com/∼/media/Files/Downloads/legal/
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– authority.12 service-guides/Settlement.pdf.
4(f)(6)(iii) requires the Exchange to give the 4 Available at http://www.dtcc.com/∼/media/
Commission written notice of the Exchange’s intent
Jill M. Peterson, Files/Downloads/legal/service-guides/
to file the proposed rule change, along with a brief Assistant Secretary. Reorganization-Service-Guide.pdf.
description and text of the proposed rule change, [FR Doc. 2018–08368 Filed 4–20–18; 8:45 am]
5 Available at http://www.dtcc.com/∼/media/
at least five business days prior to the date of filing Files/Downloads/legal/service-guides/
of the proposed rule change, or such shorter time BILLING CODE 8011–01–P Redemptions.pdf.
as designated by the Commission. The Exchange 6 Pursuant to the Rules, the term ‘‘Procedures’’
amozie on DSK30RV082PROD with NOTICES
has satisfied this requirement. means the Procedures, service guides, and
9 17 CFR 240.19b–4(f)(6).
regulations of DTC adopted pursuant to Rule 27, as
10 17 CFR 240.19b–4(f)(6)(iii). amended from time to time. See Rule 1, Section 1,
11 For purposes only of waiving the 30-day supra note 3, at 13.
operative delay, the Commission has also 7 Pursuant to the Rules, the term MMI Program
considered the proposed rule’s impact on means the Program for transactions in MMI
efficiency, competition, and capital formation. See Securities, as provided in Rule 9(C) and as specified
15 U.S.C. 78c(f). 12 17 CFR 200.30–3(a)(12). Continued
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![17694 Federal Register / Vol. 83, No. 78 / Monday, April 23, 2018 / Notices
amendments, all written statements Rule 17g–3 contains certain reporting summarized below. The Commission
with respect to the proposed rule requirements for NRSROs including plans to submit this existing collection
change that are filed with the financial statements and information of information to the Office of
Commission, and all written concerning its financial condition that Management and Budget for extension
communications relating to the the Commission, by rule, may prescribe and approval.
proposed rule change between the as necessary or appropriate in the public Rule 17f–6 (17 CFR 270.17f–6) under
Commission and any person, other than interest or for the protection of the Investment Company Act of 1940
those that may be withheld from the investors. Currently, there are 10 credit (15 U.S.C. 80a) permits registered
public in accordance with the rating agencies registered as NRSROs investment companies (‘‘funds’’) to
provisions of 5 U.S.C. 552, will be with the Commission. The Commission maintain assets (i.e., margin) with
available for website viewing and estimates that the total burden for futures commission merchants
printing in the Commission’s Public respondents to comply with Rule (‘‘FCMs’’) in connection with
Reference Room, 100 F Street, NE, 17g–3 is 3,650 hours. commodity transactions effected on
Washington, DC 20549 on official The Commission may not conduct or both domestic and foreign exchanges.
business days between the hours of sponsor a collection of information Prior to the rule’s adoption, funds
10:00 a.m. and 3:00 p.m. Copies of the unless it displays a currently valid OMB generally were required to maintain
filing also will be available for control number. No person shall be these assets in special accounts with a
inspection and copying at the principal subject to any penalty for failing to custodian bank.
office of DTC and on DTCC’s website comply with a collection of information The rule requires a written contract
(http://dtcc.com/legal/sec-rule- subject to the PRA that does not display that contains certain provisions
filings.aspx). All comments received a valid Office of Management and designed to ensure important safeguards
will be posted without change. Persons Budget (OMB) control number. and other benefits relating to the
submitting comments are cautioned that Background documentation for this custody of fund assets by FCMs. To
we do not redact or edit personal information collection may be viewed at protect fund assets, the contract must
identifying information from comment the following website: www.reginfo.gov. require that FCMs comply with the
submissions. You should submit only Comments should be directed to: (i) segregation or secured amount
information that you wish to make Desk Officer for the Securities and requirements of the Commodity
available publicly. All submissions Exchange Commission, Office of Exchange Act (‘‘CEA’’) and the rules
should refer to File Number SR–DTC– Information and Regulatory Affairs, under that statute. The contract also
2018–003 and should be submitted on Office of Management and Budget, must contain a requirement that FCMs
or before May 14, 2018. Room 10102, New Executive Office obtain an acknowledgment from any
For the Commission, by the Division of Building, Washington, DC 20503, or by clearing organization that the fund’s
Trading and Markets, pursuant to delegated sending an email to: Shagufta_Ahmed@ assets are held on behalf of the FCM’s
authority.23 omb.eop.gov; and (ii) Pamela Dyson, customers according to CEA provisions.
Eduardo A. Aleman, Director/Chief Information Officer, Because rule 17f–6 does not impose
Assistant Secretary. Securities and Exchange Commission, any ongoing obligations on funds or
[FR Doc. 2018–08355 Filed 4–20–18; 8:45 am] c/o Remi Pavlik-Simon, 100 F St. NE, FCMs, Commission staff estimates there
BILLING CODE 8011–01–P Washington, DC 20549 or send an email are no costs related to existing contracts
to: PRA_Mailbox@sec.gov. Comments between funds and FCMs. This estimate
must be submitted to OMB within 30 does not include the time required by an
SECURITIES AND EXCHANGE days of this notice. FCM to comply with the rule’s contract
COMMISSION Dated: April 17, 2018. requirements because, to the extent that
Eduardo A. Aleman, complying with the contract provisions
Submission for OMB Review;
Assistant Secretary. could be considered ‘‘collections of
Comment Request
[FR Doc. 2018–08399 Filed 4–20–18; 8:45 am] information,’’ the burden hours for
Upon Written Request, Copies Available BILLING CODE 8011–01–P
compliance are already included in
From: Securities and Exchange other PRA submissions.1
Commission, Office of FOIA Services, Thus, Commission staff estimates that
100 F Street NE, Washington, DC SECURITIES AND EXCHANGE any burden of the rule would be borne
20549–2736 COMMISSION by funds and FCMs entering into new
Extension: contracts pursuant to the rule.
Rule 17g–3; SEC File No. 270–565, OMB Proposed Collection; Comment Commission staff estimates that
Control No. 3235–0626 Request approximately 214 fund complexes and
Notice is hereby given that pursuant 2,825 funds currently effect
Upon Written Request, Copies Available commodities transactions and could
to the Paperwork Reduction Act of 1995 From: Securities and Exchange
(44 U.S.C. 3501 et seq.), the Securities deposit margin with FCMs in
Commission, Office of FOIA Services, connection with those transactions
and Exchange Commission 100 F Street NE, Washington, DC
(‘‘Commission’’) has submitted to the pursuant to rule 17f–6.2 Staff further
20549–2736
Office of Management and Budget
(‘‘OMB’’) a request for approval of Extension: 1 The rule requires a contract with the FCM to
Rule 17f–6; SEC File No. 270–392, OMB contain two provisions requiring the FCM to
extension of the previously approved Control No. 3235–0447 comply with existing requirements under the CEA
amozie on DSK30RV082PROD with NOTICES
collection of information provided for in and rules adopted thereunder. Thus, to the extent
Rule 17g–3 under the Securities Notice is hereby given that, pursuant these provisions could be considered collections of
Exchange Act of 1934 (15 U.S.C. 78a et to the Paperwork Reduction Act of 1995 information, the hours required for compliance
(44 U.S.C. 3501–3520), the Securities would be included in the collection of information
seq.).1 burden hours submitted by the CFTC for its rules.
and Exchange Commission (the 2 This estimate is based on the number of funds
23 17 CFR 200.30–3(a)(12). ‘‘Commission’’) is soliciting comments that reported on Form N–SAR from June 1, 2017–
1 See 17 CFR 240.17g–1 and 17 CFR 249b.300. on the collection of information November 30, 2017, in response to sub-items E
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Document Created: 2018-04-21 00:33:15
Document Modified: 2018-04-21 00:33:15
| 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 | 83 FR 17691 |
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