[Federal Register Volume 66, Number 165 (Friday, August 24, 2001)]
[Notices]
[Pages 44656-44657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21370]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44719; File No. SR-DTC-2001-01]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Filing of Five Service Guides

August 17, 2001.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 24, 2001, 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. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
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1. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change consists of the implementation of five 
Service Guides, which constitute a restatement of certain sections of 
the Participant Operating Procedures (``POP'') and Participant Terminal 
System (``PTS'') Manual of DTC. Such sections are being retitled as 
Service Guides for DTC Custody, Dividend, Reorganization, Settlement, 
and Underwriting services.\2\
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    \2\ A copy of the text of DTC's proposed rule change and the 
attached exhibit are available at the Commission's Public Reference 
Section or through DTC.
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II. Self-Regulatory Organization'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 these 
statements.\3\
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    \3\ The Commission has modified the text of the summaries 
prepared by DTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    DTC's POP constitutes procedures of DTC adopted pursuant to its 
Rule 27. It is a hardcopy multivolume manual that, among other things, 
provides participants with procedures and information pertaining to a 
number of DTC services. DTC's PTS Manual, also a hardcopy multivolume 
manual, describes and documents each function (or user application) of 
PTS. It serves as a navigational tool or operational guide for 
authorized users.
    DTC determined that both POP and the PTS Manual would better serve 
participants and other authorized users if they were restated together 
utilizing modern electronic media. As a result, DTC is developing 
Service Guides to replace all POP and PTS documentation.
    With this proposed rule filing, DTC is filing Service Guides for 
the following DTC services; Custody, Dividend, Reorganization, 
Settlement, and Underwriting. DTC intends to file additional Service 
Guides with the Commission when they are completed. Existing sections 
of POP and PTS documentation will remain in effect only until such time 
as they are restated as Service Guides. No substantive changes in the 
procedures of DTC are being made at this time.
    Service Guides are currently organized into four sections:
    1. Using This Guide contains copyright and disclaimer information 
plus information on document conventions and the structure and 
organization of the Service Guide. The language in this section is the 
same for all Service Guides regardless of service.
    2. About DTC's [Service Name] Guide is a restatement of POP and 
contains product overviews, definitions, important dates, and legal 
information. It has links to the various PTS functions used by the 
particular service. (See Section 4 below.)
    3. About the Participant Terminal System provides general PTS 
overview information such as directions about the use of passwords, 
logging on and off, and common function keys. The language in this 
section is the same for all Service Guides regardless of service.
    4. [Service Name] Functions is a restatement of the PTS Manual. It 
provides information for each PTS function, including step-by-step PTS 
procedures together with screen and field definitions. The 
``Functions'' and ``About'' sections of every Service Guide are linked.
    The five Service Guides will be implemented upon filing and are 
available to participants and other authorized users via CD ROM (which 
is comprised of current Service Guide, POP, and PTS Manual information) 
and the Internet at DTC's web site: http://

[[Page 44657]]

www.dtc.org/. The two formats contain the same information and are 
similar in functionality. At this time, DTC updates such information on 
its web site on a monthly basis and distributes CD ROM updates on a 
quarterly basis.\4\
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    \4\ DTC will provide the Commission with above-mentioned CD ROMs 
upon issuance each quarter. The Commission has been granted access 
to those screens on DTC's web site which contain the Service Guides 
and related information.
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    The proposed rule change is consistent with the requirements of 
Section 17A of the Act \5\ and the rules and regulations thereunder 
applicable to DTC because the proposed rule change will contribute to 
the ease of use of DTC's services and PTS. The proposed rule change 
will be implemented consistently with the safeguarding of securities 
and funds in DTC's custody or control or for which it is responsible 
because the proposed rule change enhances the utilization of DTC's 
existing services.
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    \5\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC perceives no adverse impact on competition by reason of the 
proposed rule change.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    The proposed rule change has been developed through discussions 
with a number of participants. Written comments from participants or 
others have not been solicited or received on the proposed rule change.

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)(i) \6\ of the Act and Rule 19b-4(f)(1) \7\ promulgated 
thereunder because the proposal constitutes a stated policy, practice, 
or interpretation with respect to the meaning, administration, or 
enforcement of an existing rule. At any time within sixty days of the 
filing of such proposed 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(i).
    \7\ 17 CFR 240.19b-4(f)(1).
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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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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 inspection and copying in the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing also will be available for 
inspection and copying at the principal office of DTC. All submissions 
should refer to File No. SR-DTC-2001-01 and should be submitted by 
September 14, 2001.

    For the Commission by the Division of Market Regulation, pursuant 
to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).

Jonathan G. Katz,
Secretary.
[FR Doc. 01-21370 Filed 8-23-01; 8:45 am]
BILLING CODE 8010-01-M