83 FR 42741 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend FINRA Rule 7730 (Trade Reporting and Compliance Engine (TRACE)) To Remove Computer-to-Computer Interface as a Technological Option for TRACE Reporting
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 164 (August 23, 2018)
Federal Register Volume 83, Issue 164 (August 23, 2018)
| Page Range | 42741-42743 | |
| FR Document | 2018-18156 |
[Federal Register Volume 83, Number 164 (Thursday, August 23, 2018)] [Notices] [Pages 42741-42743] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-18156] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83868; File No. SR-FINRA-2018-030] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend FINRA Rule 7730 (Trade Reporting and Compliance Engine (TRACE)) To Remove Computer-to-Computer Interface as a Technological Option for TRACE Reporting August 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 August 15, 2018, Financial Industry Regulatory Authority, Inc. (``FINRA'') 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 FINRA. 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. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing to amend FINRA Rule 7730 to modify the technological connectivity options available to members for reporting transactions to TRACE. The text of the proposed rule change is available on FINRA's website at http://www.finra.org, at the principal office of FINRA and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA 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. FINRA has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose FINRA is proposing to amend Rule 7730 (Trade Reporting and Compliance Engine (TRACE)) to remove Computer-to-Computer Interface (``CTCI'') as a technological means of connectivity for use in reporting transactions to TRACE. Technology and connectivity options have evolved since the inception of the TRACE system (at which time CTCI, rather than Financial Information eXchange (``FIX''), was made available for TRACE reporting purposes).\3\ FINRA has determined that it is now appropriate to remove CTCI--a Nasdaq proprietary protocol--as a means of connectivity. Accordingly, firms would be required to report transactions to TRACE using one of the remaining currently available options: (i) Web browser access; (ii) FIX line access; or (iii) indirectly via third-party intermediaries (e.g., service bureaus).\4\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 42201 (December 3, 1999), 64 FR 69305 (December 10, 1999) (Notice of Filing of File No. SR-NASD-99-65). \4\ See Rule 7730. --------------------------------------------------------------------------- FINRA notes that FIX--an industry standard protocol--is an immediately available and viable alternative to CTCI that already is widely used by members. Since adding FIX as a protocol for transaction reporting to TRACE in 2011 for Securitized Products (and for corporates and Agency Debt Securities in 2012), approximately two thirds of firms with direct connections, and half of the service bureaus, have opted to migrate from CTCI to FIX. In fact, the majority of members that report trades to TRACE currently connect via FIX,\5\ and FINRA believes that an increasing amount of firms and service bureaus will continue to migrate to FIX.\6\ FINRA also believes that removing CTCI as a means of connectivity will reduce operational overhead and risk for FINRA. --------------------------------------------------------------------------- \5\ Currently, 61 members have direct FIX connections for TRACE reporting, 32 have direct CTCI connections, and 709 members have web browser access (the 709 firms with web browser access also may have CTCI or FIX access for connecting to TRACE). The top five members that connect through CTCI for reporting transactions to TRACE represent 63% of all TRACE reports submitted directly using a CTCI connection. In addition, five service bureaus report to TRACE through CTCI connections and five report through FIX connections. The five service bureaus that use CTCI report transactions to TRACE on behalf of 191 members in aggregate, with over 95% of these transaction reports received from one service bureau. For all TRACE- eligible securities, approximately 33% of all transaction reports are received via CTCI, which consists of 23% submitted by members with direct CTCI connections and 10% by service bureaus connected via CTCI. \6\ For example, members may report trades to the recently approved second FINRA/Nasdaq Trade Reporting Facility via FIX but firms will not have the option to report trades via CTCI. See Securities Exchange Act Release No. 83082 (April 20, 2018), 83 FR 18379 (April 26, 2018) (Notice of Filing of File No. SR-FINRA-2018- 013). --------------------------------------------------------------------------- Accordingly, FINRA is proposing to amend Rule 7730 to remove CTCI as a means of connectivity for members to report transactions to TRACE.\7\ FINRA intends to provide ample time, until February 3, 2020, to allow firms that still use CTCI as a means of connectivity to migrate, and will permit members to migrate at any point throughout the implementation period. During that timeframe, FINRA also will engage in extensive outreach with the industry to assist in migration awareness and efforts.\8\ --------------------------------------------------------------------------- \7\ FINRA will be eliminating CTCI as a means of connectivity for reporting to all FINRA trade reporting facilities. \8\ In addition to general outreach (industry-wide calls and a Technical Notice), FINRA will contact each individual firm that directly reports to TRACE via CTCI by email and telephone to provide information and assistance in connection with the migration. --------------------------------------------------------------------------- If the Commission approves the proposed rule change, the effective date of the proposed rule change will be February 3, 2020. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,\9\ which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78o-3(b)(6). --------------------------------------------------------------------------- FINRA is proposing to amend Rule 7730 to remove CTCI as a means of connectivity for members to report transactions to TRACE. FINRA does not believe the proposed rule change will have a significant impact, as a majority of members already use FIX as a means of connectivity to report trades to TRACE, and FINRA believes that an increasing amount of members and service providers are migrating to exclusive use of FIX. FIX is an industry standard protocol that is an immediately available and viable alternative for the minority of members who directly use CTCI as a means of connectivity to report transactions to TRACE. [[Page 42742]] B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Economic Impact Assessment FINRA has undertaken an economic impact assessment, as set forth below, to further analyze the regulatory need for the proposed rule change, the economic baseline, the economic impact, and the alternatives considered. Regulatory Need Rule 7730 provides that members may report transactions to TRACE via CTCI protocol. Due to technological advances, FINRA is proposing to discontinue supporting CTCI as means of connectivity for members to report transactions. Therefore, FINRA is proposing to amend Rule 7730 to reflect this change. Economic Baseline The baseline for the proposed amendment is current Rule 7730, which allows members to report to TRACE via (1) CTCI, (2) FIX, (3) web browser, or (4) indirectly via a third party intermediary. Presently, 32 members directly report transactions to TRACE via CTCI and 61 members directly report transactions to TRACE via FIX. In addition, five service bureaus report transactions to TRACE via FIX (on behalf of 25 members), and five service bureaus report transactions to TRACE via CTCI (on behalf of 191 members).\10\ Firms reporting via either CTCI or FIX are charged $25/month to do so. Firms that report via a web browser are charged $20/month per user ID. For all TRACE-eligible securities, approximately 33% of all transaction reports are received via CTCI, which consists of 23% submitted by members with direct CTCI connections and 10% by service bureaus connected via CTCI. --------------------------------------------------------------------------- \10\ See supra note 5. --------------------------------------------------------------------------- Economic Impact The proposal would apply equally to all members who report transactions to TRACE. However, there is no impact to firms that currently report via FIX or a web browser. Only firms reporting via CTCI would incur additional costs as a result of the proposed rule change. There are 223 members that use CTCI (either directly or indirectly) for TRACE reporting purposes.\11\ However, the majority of these members (191) are indirectly impacted--i.e., those who report through a service bureau--since most of the work to migrate to the FIX protocol will be performed by the service bureaus. Although the service bureaus may choose to pass some or all of the cost of reprogramming on to the member firms, the costs would be spread across these firms. --------------------------------------------------------------------------- \11\ At the time of this filing, 309 members report to TRACE via CTCI or FIX (either directly or indirectly). --------------------------------------------------------------------------- The 32 members reporting directly via their own CTCI connection would incur costs associated with reporting via a new method. These members would face a tradeoff between greater upfront costs and on- going efficiencies. The development of a compliant FIX submission protocol would require up-front investment, but could provide cost- saving efficiency over time.\12\ A firm that chooses not to replace CTCI with FIX, but instead chooses to submit their trades via web browser access, will require a more limited initial investment, but relatively more on-going cost. Presumably, firms will choose a new reporting method that minimizes their overall costs or maximizes their efficiency. Anecdotally, FINRA understands that some firms are contemplating discontinuing use of CTCI and migrating to FIX. For these firms, however, the proposal may result in them incurring certain costs sooner than planned. --------------------------------------------------------------------------- \12\ The programming costs that these firms incur would vary due to a number of factors, including existing expertise. --------------------------------------------------------------------------- For FINRA, each protocol type requires maintenance and support, and maintaining two protocols increases operational risk.\13\ There is inherent risk associated with supporting any information technology system, including risk of an operational failure. Since CTCI currently is used to collect transaction information, an operational event could negatively impact any market stakeholder that uses disseminated transaction information. Thus, a benefit of this proposal would be to eliminate risk associated with supporting CTCI. Since an operational event could harm the integrity of the market (by resulting in information asymmetry), this benefit should accrue to all market stakeholders. Thus, it is FINRA's view that the benefits of the amendment outweigh any associated cost. --------------------------------------------------------------------------- \13\ FINRA also should realize cost savings as a result of the proposal, since it no longer would need to maintain a CTCI protocol. --------------------------------------------------------------------------- Alternatives Considered FINRA considered maintaining the status quo and continuing to support CTCI. However, given the decreased reliance on the protocol and that the owner of the protocol does not intend to support it for its new facility,\14\ FINRA determined that it is now appropriate to retire the protocol for the purpose of reporting transactions to FINRA facilities. --------------------------------------------------------------------------- \14\ See supra note 6. --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove such proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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 rule-comments@sec.gov. Please include File Number SR-FINRA-2018-030 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-FINRA-2018-030. 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 amendments, all written statements with respect to the proposed rule [[Page 42743]] 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 such filing also will be available for inspection and copying at the principal office of FINRA. 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-FINRA-2018- 030, and should be submitted on or before September 13, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-18156 Filed 8-22-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 164 / Thursday, August 23, 2018 / Notices 42741
For the Commission, by the Division of in Item IV below. FINRA has prepared amount of firms and service bureaus
Trading and Markets, pursuant to delegated summaries, set forth in sections A, B, will continue to migrate to FIX.6 FINRA
authority.11 and C below, of the most significant also believes that removing CTCI as a
Eduardo A. Aleman, aspects of such statements. means of connectivity will reduce
Assistant Secretary. operational overhead and risk for
A. Self-Regulatory Organization’s
[FR Doc. 2018–18164 Filed 8–22–18; 8:45 am]
Statement of the Purpose of, and the FINRA.
BILLING CODE 8011–01–P
Statutory Basis for, the Proposed Rule Accordingly, FINRA is proposing to
Change amend Rule 7730 to remove CTCI as a
means of connectivity for members to
SECURITIES AND EXCHANGE 1. Purpose report transactions to TRACE.7 FINRA
COMMISSION FINRA is proposing to amend Rule intends to provide ample time, until
[Release No. 34–83868; File No. SR–FINRA– 7730 (Trade Reporting and Compliance February 3, 2020, to allow firms that
2018–030] Engine (TRACE)) to remove Computer- still use CTCI as a means of connectivity
to-Computer Interface (‘‘CTCI’’) as a to migrate, and will permit members to
Self-Regulatory Organizations; technological means of connectivity for migrate at any point throughout the
Financial Industry Regulatory use in reporting transactions to TRACE. implementation period. During that
Authority, Inc.; Notice of Filing of a Technology and connectivity options timeframe, FINRA also will engage in
Proposed Rule Change To Amend have evolved since the inception of the extensive outreach with the industry to
FINRA Rule 7730 (Trade Reporting and TRACE system (at which time CTCI, assist in migration awareness and
Compliance Engine (TRACE)) To rather than Financial Information efforts.8
Remove Computer-to-Computer eXchange (‘‘FIX’’), was made available If the Commission approves the
Interface as a Technological Option for for TRACE reporting purposes).3 FINRA proposed rule change, the effective date
TRACE Reporting has determined that it is now of the proposed rule change will be
appropriate to remove CTCI—a Nasdaq February 3, 2020.
August 17, 2018. proprietary protocol—as a means of
Pursuant to Section 19(b)(1) of the connectivity. Accordingly, firms would 2. Statutory Basis
Securities Exchange Act of 1934 be required to report transactions to FINRA believes that the proposed rule
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 TRACE using one of the remaining change is consistent with the provisions
notice is hereby given that on August currently available options: (i) Web of Section 15A(b)(6) of the Act,9 which
15, 2018, Financial Industry Regulatory browser access; (ii) FIX line access; or requires, among other things, that
Authority, Inc. (‘‘FINRA’’) filed with the (iii) indirectly via third-party FINRA rules must be designed to
Securities and Exchange Commission intermediaries (e.g., service bureaus).4 prevent fraudulent and manipulative
(‘‘Commission’’) the proposed rule FINRA notes that FIX—an industry acts and practices, to promote just and
change as described in Items I, II, and standard protocol—is an immediately equitable principles of trade, and, in
III below, which Items have been available and viable alternative to CTCI general, to protect investors and the
prepared by FINRA. The Commission is that already is widely used by members. public interest.
publishing this notice to solicit Since adding FIX as a protocol for FINRA is proposing to amend Rule
comments on the proposed rule change transaction reporting to TRACE in 2011 7730 to remove CTCI as a means of
from interested persons. for Securitized Products (and for connectivity for members to report
I. Self-Regulatory Organization’s corporates and Agency Debt Securities transactions to TRACE. FINRA does not
Statement of the Terms of Substance of in 2012), approximately two thirds of believe the proposed rule change will
the Proposed Rule Change firms with direct connections, and half have a significant impact, as a majority
of the service bureaus, have opted to of members already use FIX as a means
FINRA is proposing to amend FINRA migrate from CTCI to FIX. In fact, the of connectivity to report trades to
Rule 7730 to modify the technological majority of members that report trades TRACE, and FINRA believes that an
connectivity options available to to TRACE currently connect via FIX,5 increasing amount of members and
members for reporting transactions to and FINRA believes that an increasing service providers are migrating to
TRACE. exclusive use of FIX. FIX is an industry
The text of the proposed rule change 3 See Securities Exchange Act Release No. 42201
standard protocol that is an immediately
is available on FINRA’s website at (December 3, 1999), 64 FR 69305 (December 10,
available and viable alternative for the
http://www.finra.org, at the principal 1999) (Notice of Filing of File No. SR–NASD–99–
65). minority of members who directly use
office of FINRA and at the 4 See Rule 7730. CTCI as a means of connectivity to
Commission’s Public Reference Room. 5 Currently, 61 members have direct FIX report transactions to TRACE.
II. Self-Regulatory Organization’s connections for TRACE reporting, 32 have direct
CTCI connections, and 709 members have web
Statement of the Purpose of, and browser access (the 709 firms with web browser
6 For example, members may report trades to the
Statutory Basis for, the Proposed Rule access also may have CTCI or FIX access for recently approved second FINRA/Nasdaq Trade
Reporting Facility via FIX but firms will not have
Change connecting to TRACE). The top five members that
the option to report trades via CTCI. See Securities
connect through CTCI for reporting transactions to
In its filing with the Commission, TRACE represent 63% of all TRACE reports Exchange Act Release No. 83082 (April 20, 2018),
83 FR 18379 (April 26, 2018) (Notice of Filing of
FINRA included statements concerning submitted directly using a CTCI connection. In
File No. SR–FINRA–2018–013).
the purpose of and basis for the addition, five service bureaus report to TRACE
7 FINRA will be eliminating CTCI as a means of
through CTCI connections and five report through
proposed rule change and discussed any
daltland on DSKBBV9HB2PROD with NOTICES
FIX connections. The five service bureaus that use connectivity for reporting to all FINRA trade
comments it received on the proposed CTCI report transactions to TRACE on behalf of 191 reporting facilities.
8 In addition to general outreach (industry-wide
rule change. The text of these statements members in aggregate, with over 95% of these
transaction reports received from one service calls and a Technical Notice), FINRA will contact
may be examined at the places specified each individual firm that directly reports to TRACE
bureau. For all TRACE-eligible securities,
approximately 33% of all transaction reports are via CTCI by email and telephone to provide
11 17 CFR 200.30–3(a)(12). received via CTCI, which consists of 23% submitted information and assistance in connection with the
1 15 U.S.C. 78s(b)(1). migration.
by members with direct CTCI connections and 10%
2 17 CFR 240.19b–4. by service bureaus connected via CTCI. 9 15 U.S.C. 78o–3(b)(6).
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![Federal Register / Vol. 83, No. 164 / Thursday, August 23, 2018 / Notices 42743
change that are filed with the of the Act 3 and Rule 19b–4(f)(6) 4 II. Clearing Agency’s Statement of the
Commission, and all written thereunder. The Commission is Purpose of, and Statutory Basis for, the
communications relating to the publishing this notice to solicit Proposed Rule Change
proposed rule change between the comments on the proposed rule change In its filing with the Commission, the
Commission and any person, other than from interested persons. clearing agency included statements
those that may be withheld from the
I. Clearing Agency’s Statement of the concerning the purpose of and basis for
public in accordance with the
Terms of Substance of the Proposed the proposed rule change and discussed
provisions of 5 U.S.C. 552, will be
Rule Change any comments it received on the
available for website viewing and
proposed rule change. The text of these
printing in the Commission’s Public
The proposed rule change of DTC statements may be examined at the
Reference Room, 100 F Street NE,
would amend the Operational places specified in Item IV below. The
Washington, DC 20549 on official
Arrangements and the Distributions clearing agency has prepared
business days between the hours of
Guide‘‘ 5 to streamline the process for summaries, set forth in sections A, B,
10:00 a.m. and 3:00 p.m. Copies of such
reducing payment to a Participant of a and C below, of the most significant
filing also will be available for
dividend or interest payment with aspects of such statements.
inspection and copying at the principal
office of FINRA. All comments received respect to an equity or debt security, (A) Clearing Agency’s Statement of the
will be posted without change. Persons when such Participant held, on the Purpose of, and Statutory Basis for, the
submitting comments are cautioned that record date for the distribution: (i) Proposed Rule Change
we do not redact or edit personal Shares of the security that had been
repurchased by the issuer of the security 1. Purpose
identifying information from comment
submissions. You should submit only (‘‘Treasury Shares’’) or (ii) debt that had The proposed rule change would
information that you wish to make been repurchased by the issuer of the amend the Operational Arrangements
available publicly. All submissions debt (‘‘Repurchased Debt Securities’’). and the Distributions Guide to
should refer to File Number SR–FINRA– Specifically, DTC proposes to provide streamline the process for reducing
2018–030, and should be submitted on functionality to Participants so that a payment to a Participant of a dividend
or before September 13, 2018. Participant that held Treasury Shares or or interest payment with respect to an
For the Commission, by the Division of Repurchased Debt Securities on the equity or debt security, when such
Trading and Markets, pursuant to delegated record date would use the Corporate Participant held, on the record date for
authority.15 Actions Web (‘‘CA Web’’) to reduce its the distribution, Treasury Shares or
Eduardo A. Aleman, entitlement to the distribution by the Repurchased Debt Securities.
Assistant Secretary. amount attributable to the Treasury Specifically, DTC proposes to provide
[FR Doc. 2018–18156 Filed 8–22–18; 8:45 am] Shares or Repurchased Debt Securities. functionality to Participants so that a
BILLING CODE 8011–01–P The proposed rule change would also Participant that held Treasury Shares or
amend the Fee Guide to modify and Repurchased Debt Securities on the
record date would use the CA Web to
clarify the fees associated with Treasury
SECURITIES AND EXCHANGE reduce its entitlement to the distribution
Shares or Repurchased Debt Securities
COMMISSION by the amount attributable to the
adjustments.6 In addition, DTC would
Treasury Shares or Repurchased Debt
make ministerial and clarifying changes Securities. The proposed rule change
[Release No. 34–83871; File No. SR–DTC– to the Operational Arrangements and
2018–007]
would also amend the Fee Guide to
the Fee Guide, as discussed below. modify and clarify the fees associated
Self-Regulatory Organizations; The with Treasury Shares or Repurchased
3 15 U.S.C. 78s(b)(3)(A).
Depository Trust Company; Notice of Debt Securities adjustments. In
4 17 CFR 240.19b–4(f)(6).
Filing and Immediate Effectiveness of 5 Each capitalized term not otherwise defined
addition, DTC would make ministerial
Proposed Rule Change To Amend the and clarifying changes to the
herein has its respective meaning as set forth in the
Process of the Reduction of Dividend Rules, By-Laws and Organization Certificate of DTC Operational Arrangements and the Fee
or Interest Payments to a Participant (the ‘‘Rules’’), available at http://www.dtcc.com/ Guide, as discussed below.
on Treasury Shares or Repurchased legal/rules-and-procedures.aspx; the DTC
Operational Arrangements (Necessary for Securities (i) Background
Debt Securities to Become and Remain Eligible for DTC Services) A. Dividend and Interest Payments
(‘‘Operational Arrangements’’), available at http://
August 17, 2018.
www.dtcc.com/∼/media/Files/Downloads/legal/ DTC receives information on dividend
Pursuant to Section 19(b)(1) of the issue-eligibility/eligibility/operational- and interest payment distributions
Securities Exchange Act of 1934 arrangements.pdf; the Distributions Service Guide
(the ‘‘Distributions Guide’’), available at http:// (each, an ‘‘announcement’’) from the
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 www.dtcc.com/∼/media/Files/Downloads/legal/ issuer, the transfer agent or paying agent
notice is hereby given that on August 9, service-guides/Service%20Guide of the issuer (each, an ‘‘Agent’’),
2018, The Depository Trust Company %20Distributions.pdf; and the Guide to the 2018 exchanges, trustees, and various other
(‘‘DTC’’) filed with the Securities and DTC Fee Schedule (‘‘Fee Guide’’), available at
industry sources.7 An announcement of
Exchange Commission (‘‘Commission’’) http://www.dtcc.com/∼/media/Files/Downloads/
legal/fee-guides/dtcfeeguide.pdf. a distribution typically includes, among
the proposed rule change as described 6 The proposed rule changes with respect to the other things, a security description and
in Items I, II and III below, which Items CUSIP, record date, payable date, and
daltland on DSKBBV9HB2PROD with NOTICES
Fee Guide would apply to Treasury Shares or
have been prepared by the clearing Repurchased Debt Securities position adjustments either the rate per share for a dividend
agency. DTC filed the proposed rule in connection with distributions with a record date or the interest rate per $1,000 principal
change pursuant to Section 19(b)(3)(A) as well as to distributions with an effective date
(i.e., mandatory corporate actions). For information
amount. DTC uses the information to
on the process for reducing payment on Treasury
15 17 CFR 200.30–3(a)(12). Shares or Repurchased Debt Securities in 7 DTC also maintains internal records for
1 15 U.S.C. 78s(b)(1). connection with an effective date distribution, see scheduled fixed rate interest and principal
2 17 CFR 240.19b–4. Operational Arrangements, supra note 5, at 42–43. payments.
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Document Created: 2018-08-23 00:33:15
Document Modified: 2018-08-23 00:33:15
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 42741 |
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