Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify That Participants Are Required To Participate in Operational Testing by DTC, Including Testing of DTC's Business Continuity and Disaster Recovery Plans
Federal Register, Volume 80 Issue 102 (Thursday, May 28, 2015)
Federal Register Volume 80, Number 102 (Thursday, May 28, 2015)
Notices
Pages 30505-30506
From the Federal Register Online via the Government Publishing Office www.gpo.gov
FR Doc No: 2015-12834
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SECURITIES AND EXCHANGE COMMISSION
Release No. 34-75030; File No. SR-DTC-2015-006
Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify That Participants Are Required To Participate in Operational Testing by DTC, Including Testing of DTC's Business Continuity and Disaster Recovery Plans
May 21, 2015.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') and Rule 19b-4 \2\ thereunder, notice is hereby given that on May 12, 2015, The Depository Trust Company (``DTC'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II and III below, which Items have been prepared by DTC. DTC filed the proposed rule change pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(1) \4\ thereunder. The proposed rule change was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
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\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)(1).
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Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change
The proposed rule change consists of a change to Rule 2 of the Rules of DTC to clarify that Participants are required to participate in operational testing by DTC, including testing of DTC's business continuity and disaster recovery plans, as more fully described below.\5\
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\5\ Terms not otherwise defined herein have the meaning set forth in the DTC Rules, available at http://www.dtcc.com/legal/rules-and-procedures.aspx.
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Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, DTC 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. DTC 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
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Purpose
Pursuant to DTC's Rule 2 (Participants and Pledgees), a DTC Participant is required to have ``adequate physical facilities, books and records and procedures to fulfill its anticipated commitments to, and to meet the operational requirements of, the Corporation, other Participants and Pledgees with necessary promptness and accuracy and to conform to any condition and requirement which the Corporation reasonably deems necessary for its protection.'' DTC is proposing to update Rule 2, as marked on Exhibit 5 hereto,\6\ in order to clarify that this requirement may include engagement in operational testing, including testing of DTC's business continuity and disaster recovery plans. The proposed change to Rule 2 reflects an existing policy with respect to the meaning of an existing rule, and will provide transparency regarding an existing requirement.
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\6\ The Commission notes that Exhibit 5 is attached to the filing, not to this Notice.
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Statutory Basis
The proposed rule change is consistent with the Ac sic, and the rules and regulations thereunder, in particular Section 17A(b)(3)(F) \7\ because it will promote the prompt and accurate clearance and settlement of securities transactions in that it will provide clarity to DTC Participants regarding their membership requirements.
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\7\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Clearing Agency's Statement on Burden on Competition
The proposed rule change will not have any impact, or impose any burden, on competition.
Page 30506
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others
Written comments relating to the proposed rule change have not yet been solicited or received. DTC will notify the Commission of any written comments received by DTC.
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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) \8\ of the Act and paragraph (f) of Rule 19b-4 \9\ thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f).
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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 rule-comments@sec.gov. Please include File Number SR-DTC-2015-006 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-DTC-2015-006. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of DTC and on DTCC's Web site. (http://dtcc.com/legal/sec-rule-filings.aspx). All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-DTC-2015-006 and should be submitted on or before June 18, 2015.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
FR Doc. 2015-12834 Filed 5-27-15; 8:45 am
BILLING CODE 8011-01-P
