[Federal Register Volume 69, Number 64 (Friday, April 2, 2004)]
[Notices]
[Pages 17465-17466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-7498]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49489; File No. SR-DTC-2004-01]


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

    March 26, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 8, 2004, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change 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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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change would permit DTC to terminate its 
TaxReclaim service.

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.\2\
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    \2\ 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

    The proposed rule change consists of the termination of DTC's 
TaxReclaim service. TaxReclaim assists DTC participants in preparing 
foreign tax reclaim forms required for reclaiming taxes withheld by 
foreign jurisdictions with respect to distributions in foreign 
securities. Using DTC's Participant Terminal System, DTC participants 
input data relating to the beneficial owner, foreign security, and 
payment details as required by the country of issuance. TaxReclaim 
processes the information and transmits back to the participant the 
completed tax reclaim form, reclaim calculation, and instructions for 
filing the reclaim form.
    TaxReclaim was introduced in 1999. Usage in recent years has 
decreased significantly due in part to the expansion of DTC's TaxRelief 
product. TaxRelief facilitates participants' ability to obtain tax 
relief at the source, reducing the instances of over-withholding by the 
taxing authorities of the foreign jurisdiction. The expansion of 
TaxRelief has reduced the need for participants to use TaxReclaim to 
file reclaim forms. In calendar year 2003, usage of TaxReclaim declined 
to 209 transactions processed by seven participants.
    DTC notified the users of TaxReclaim in January 2004 that the 
service would be terminated in 2004. All users have found alternate tax 
reclaim service providers, and there are currently no users of the 
TaxReclaim service.
    The proposed rule change is consistent with the requirements of 
section 17A(b)(3)(A) of the Act \3\ and the rules and regulations 
thereunder applicable to DTC and is consistent with the safeguarding of 
securities and funds in DTC's custody or control or for which it is 
responsible. The proposed rule change promotes the efficient allocation 
of DTC's resources and services among DTC's participants by terminating 
operation of a service that was not being utilized by a sufficient 
number of DTC participants to support its costs.
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    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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

    DTC has not solicited nor received written comments on the proposed 
rule change. DTC will inform the Commission of any written comments it 
receives.

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

    The foregoing rule change relating to the deleted fine has become 
effective upon filing pursuant to section 19(b)(3)(A)(iii) of the Act 
\4\ and Rule 19b-4(f)(4)\5\ thereunder because the proposed rule 
effects a change in an existing service of DTC that (i) does not 
adversely affect the safeguarding of securities or funds in the custody 
or control of DTC or for which it is responsible and (ii) does not 
significantly affect the respective rights or obligations of DTC 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.
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    \4\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \5\ 17 CFR 240.19b-4(f)(4).
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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.

[[Page 17466]]

Persons making written submissions should file six copies thereof with 
the Secretary, Securities and Exchange Commission, 450 Fifth Street, 
NW., Washington, DC 20549-0609. Comments may also be submitted 
electronically at the following e-mail address: [email protected]. 
All comment letters should refer to File No. SR-DTC-2004-01. 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, 
comments should be sent in either hardcopy or by e-mail but not by both 
methods. 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 20549-0609. Copies of such filing also will be 
available for inspection and copying at the principal office of DTC and 
on DTC's Web site at http://www.dtc.org. All submissions should refer 
to File No. SR-DTC-2004-01 and should be submitted by April 23, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-7498 Filed 4-1-04; 8:45 am]
BILLING CODE 8010-01-P