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Notice

Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Its Registered Transfer Agent Notification Methods for Assumption or Termination of Services

 

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March 1, 2010.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), [1] notice is hereby given that on February 3, 2010, 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 primarily by DTC. DTC filed the proposal pursuant to Section 19(b)(3)(A)(iii) of the Act [2] and Rule 19b-4(f)(4) [3] thereunder so that the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Back to Top

The purpose of the proposed rule change is to modify the registered transfer agent notification methods for assumption or termination of services.

II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Back to Top

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. [4]

(A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

Rule 17Ad-16 under the Act is designed to help reduce delays in securities transfers. The rule requires registered transfer agents to notify the appropriate qualified registered securities depository when the transfer agent assumes or terminates services on behalf of an issuer or when the transfer agent changes its name or address.

In 1995, DTC filed a proposed rule change with the Commission in which DTC requested designation as the appropriate qualified registered securities depository for purposes of Rule 17Ad-16 and also sought approval of its procedures to receive and transmit such notices. The Commission approved the rule filing and ordered that DTC be designated as the appropriate qualified registered securities depository. [5] Existing DTC Procedures allow transfer agents to provide their notices to DTC by e-mail to DTC's Transfer Agent Services Mailbox, by fax, or by mail.

To increase certainty regarding where transfer agents should direct these notices to DTC, as well as to reduce costs and administrative burdens, DTC proposes modifying its Procedures so that registered transfer agents would only notify DTC by sending e-mails to DTC's Transfer Agent Services Mailbox. The proposed changes to DTC's Procedures can be found in Exhibit 5 to proposed rule change SR-DTC-2010-04 at http://www.dtcc.com/downloads/legal/rule_filings/2010/dtc/2010-04.pdf

DTC believes the proposed rule change is consistent with the requirements of Section 17A of the Act [6] and the rules and regulations thereunder applicable to DTC because the proposed rule change promotes efficiencies in the clearance and settlement of securities transactions by modifying DTC's Procedures to expedite the notification process for transfer agent changes and decrease transfer delays.

(B) Self-Regulatory Organization's Statement on Burden on Competition

DTC does not believe that the proposed rule change will have any impact or impose any burden on competition.

(C) Self-Regulatory Organization'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.

III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Back to Top

The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act [7] and Rule 19b-4(f)(4) [8] thereunder because the proposed rule change effects a change in an existing service of a registered clearing agency that: (i) Does not adversely affect the safeguarding of securities or funds in the custody or control of the clearing agency or for which it is responsible and (ii) does not significantly affect the respective rights or obligations of the clearing agency or persons using the service. At any time within sixty days of the filing of such rule change, the Commission may summarily abrogate 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.

IV. Solicitation of Comments Back to Top

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

Paper Comments

  • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington DC 20549-1090.

All submissions should refer to File Number SR-DTC-2010-04. This file number should be included on the subject line if e-mail 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 Section, 100 F Street, NE., Washington DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filings also will be available for inspection and copying at the principal office of DTC and on DTC's Web site at http://www.dtcc.com/legal/rule_filings/dtc/2010.php.

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-2010-04 and should be submitted on or before March 29, 2010.

For the Commission, by the Division of Trading and Markets, pursuant to delegatedauthority. [9]

Florence E. Harmon,

Deputy Secretary.

[FR Doc. 2010-4763 Filed 3-5-10; 8:45 am]

BILLING CODE 8011-01-P

Footnotes Back to Top

2. 15 U.S.C. 78s(b)(3)(A)(iii).

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4. The Commission has modified the text of the summaries prepared by DTC.

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5. Securities Exchange Release Act No. 35378 (February 15, 1995), 60 FR 9875 (February 22, 1995) (File No. SR-DTC-95-02).

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7. 15 U.S.C. 78s(b)(3)(A)(iii).

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