[Federal Register Volume 82, Number 56 (Friday, March 24, 2017)]
[Notices]
[Pages 15081-15085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05853]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80280; File No. SR-DTC-2017-001]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing of Proposed Rule Change To Establish a Sub-Account for 
Use With the DTCC Euroclear Global Collateral Ltd Collateral Management 
Service and Provide for the Authorization of a Representative To 
Receive Information About the Sub-Account

March 20, 2017.
    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 March 9, 2017, 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. 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.
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change consists of amendments to Rules, By-Laws 
and Organization Certificate of The Depository Trust Company (the ``DTC 
Rules'') \3\ in order to add new Rule 35 (CMS Reporting) which would 
provide that any DTC Participant that is, or is acting on behalf of, a 
user of certain collateral management services (``CMS'') \4\ of DTCC 
Euroclear Global Collateral Ltd. (``DEGCL'') \5\ may establish one or 
more sub-Accounts for use in connection with CMS (each, a ``CMS Sub-
Account''). A DTC Participant that establishes a CMS Sub-Account 
pursuant to the proposed rule (a ``CMS Participant'') would thereby: 
(i) Authorize DEGCL to receive account and transactional information 
and reports with respect to the CMS Sub-Account, and (ii) direct DTC to 
provide such information and reports to DEGCL, as described in detail 
below.
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    \3\ Each capitalized term not otherwise defined herein has its 
respective meaning as set forth in the Rules, By-Laws and 
Organization Certificate of The Depository Trust Company (the ``DTC 
Rules''), available at http://www.dtcc.com/legal/rules-and-procedures.aspx.
    \4\ In particular, there will be a CMS option authorizing DEGCL, 
on behalf of the CMS User, to propose collateral allocations to 
satisfy counterparty obligations of the CMS User, referred to by 
DEGCL as the ``Allocation Option'' and further explained below.
    \5\ DEGCL is a joint venture of The Depository Trust & Clearing 
Corporation (``DTCC''), the corporate parent of DTC, and Euroclear 
S.A./N.V. (``Euroclear''), the corporate parent of Euroclear Bank, 
described further below. DTC understands that CMS will be operated 
by Euroclear Bank and other entities in the Euroclear group, as 
service providers to DEGCL, in accordance with appropriate 
agreements between them.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency 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. The clearing agency 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

1. Purpose
    The proposal would add new Rule 35 (CMS Reporting), which would 
provide that any DTC Participant that is, or is acting on behalf of, a 
user of DEGCL CMS may establish one or more CMS Sub-Accounts. A CMS 
Participant would thereby: (i) Authorize DEGCL to receive account and 
transactional information and reports with respect to the CMS Sub-
Account, and (ii) direct DTC to provide such information and reports to 
DEGCL, as described below.
(i) Background
(a) DEGCL
    DEGCL was formed in the United Kingdom (``UK''), and is authorized 
by the Financial Conduct Authority (``FCA'') \6\ in the UK as a 
``service company'' in accordance with applicable law of the UK.\7\ 
DEGCL was formed for the purpose of offering global information, record 
keeping, and processing services for derivatives collateral 
transactions and other types of financing transactions. DEGCL seeks to 
provide services to buy-side and sell-side financial institutions that 
seek increased efficiency in the availability and deployment of 
collateral and streamlined margin processing, in light

[[Page 15082]]

of new and enhanced regulatory requirements.\8\ These requirements have 
resulted in increased capital requirements, mandatory central clearing 
of more derivative transactions, and new margining rules for bilateral 
trades, driving a significant increased demand for high quality 
collateral, and for efficient and effective deployment of collateral.
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    \6\ The FCA is an independent public body that regulates 56,000 
financial services firms and financial markets in the UK financial 
services firms in the UK. It is accountable to the UK Treasury, 
which is responsible for the UK's financial system, and to 
Parliament.
    \7\ DEGCL was authorized as a ``service company'' by the FCA on 
March 29, 2016. A ``service company,'' as defined in the FCA 
Handbook, Glossary, is: ``[A] firm whose only permitted activities 
are making arrangements with a view to transactions in investments, 
and agreeing to carry on that regulated activity, and whose Part 4A 
permission: (a) Incorporates a limitation substantially to the 
effect that the firm carry on regulated activities only with market 
counterparties or intermediate customers; and (b) includes 
requirements substantially to the effect that the firm must not: (i) 
Guarantee, or otherwise accept responsibility for, the performance, 
by a participant in arrangements made by the firm in carrying on 
regulated activities, of obligations undertaken by that participant 
in connection with those arrangements; or (ii) approve any financial 
promotion on behalf of any other person or any specified class of 
persons; or (iii) in carrying on its regulated activities, provide 
services otherwise than in accordance with documents (of a kind 
specified in the requirement) provided by the firm to the FCA.'' FCA 
Handbook, Glossary, available at https://www.handbook.fca.org.uk/handbook/glossary.
    \8\ See Basel III liquidity rules (Basel Committee on Banking 
Supervision, Basel III: A global framework for more resilient banks 
and the banking system, December 2010 and revised June 2011; Basel 
Committee on Banking Supervision, Basel III: The Liquidity Coverage 
Ratio and liquidity risk monitoring tools, January 2013; Basel 
Committee on Banking Supervision, Basel III: The net stable funding 
ratio, October 2014, available at www.bis.org/bcbs/basel3.htm), as 
well as recent regulatory changes by the Commodity Futures Trading 
Commission (Margin Requirements for Uncleared Swaps for Swap Dealers 
and Major Swap Participants, 81 FR 635 (January 6, 2016); 17 CFR 23 
and 140), the U.S. prudential regulators (Margin and Capital 
Requirements for Covered Swap Entities, 80 FR 74840 (November 30, 
2015); 12 CFR parts 45, 237, 349, 624 and 1221. The U.S. prudential 
regulators include: Office of the Comptroller of the Currency--
Treasury, Board of Governors of the Federal Reserve System, Federal 
Deposit Insurance Corporation, Farm Credit Administration, and the 
Federal Housing Finance Agency), European Market Infrastructure 
Regulation (European Supervisory Authorities' (ESAs) Final Draft 
Regulatory Technical Standards on risk-mitigation techniques for 
OTC-derivative contracts not cleared by a CCP under Article 11(15) 
of Regulation (EU) No 648/2012 (EMIR), available at https://www.eba.europa.eu/documents/10180/1398349/RTS+on+Risk+Mitigation+Techniques+for+OTC+contracts+%28JC-2016-+18%29.pdf/fb0b3387-3366-4c56-9e25-74b2a4997e1d), and the Basel 
Committee on Banking Supervision (``BCBS'') and the International 
Organization of Securities Commissions (``IOSCO'') (BCBS-IOSCO, 
Margin requirements for non-centrally cleared derivatives (March 
2015), available at http://www.bis.org/bcbs/publ/d317.htm).
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(b) DEGCL CMS Options
    DEGCL performs information and record-keeping services for CMS 
users who have entered into user agreements with DEGCL for this purpose 
(``CMS Users''). CMS Users are financial institutions that are 
counterparties to agreements establishing obligations between them to 
provide securities collateral with respect to swaps or other types of 
financing transactions. These bilateral swap or other financing 
agreements are entered into by such counterparties outside, and 
independently, of DEGCL or DTC.\9\
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    \9\ A CMS User will typically be a major financial institution 
or buy-side investor that is a bank, broker dealer, or investment 
company. CMS Users will enter into a Collateral Management Service 
Agreement with DEGCL, which includes general terms of conditions and 
operating procedures (``CMS Agreement'').
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    DEGCL will provide two CMS service options for the selection of 
collateral to satisfy these external collateral obligations. For use of 
these options at DEGCL, both counterparties must agree with DEGCL to 
apply the same collateral selection option to a transaction between 
them.
    The first option is referred to by DEGCL as the ``Standard Option'' 
(also referred to as ``self-select''). The Standard Option relates to 
securities collateral at any U.S. settlement location and does not 
depend on the proposed rule change. It is described in this rule filing 
for informational purposes only.
    The second collateral selection option is referred to by DEGCL as 
the ``Allocation Option'' (also referred to as ``auto-select''). This 
option relates to securities collateral held at DTC; the offering of 
this option by DEGCL depends on, and is subject to, approval of the 
proposed rule change. The CMS User with the obligation to deliver 
collateral must be a CMS Participant under the proposed rule change, or 
the customer of a CMS Participant acting on its behalf.\10\ The CMS 
User that is the counterparty receiving collateral must also be either 
a DTC Participant or the customer of a DTC Participant acting on its 
behalf.\11\
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    \10\ As further described below, a CMS Sub-Account is an account 
from which securities collateral may be delivered by a CMS 
Participant pursuant to the Allocation Option.
    \11\ The receiving DTC Participant is not a ``CMS Participant'' 
as defined in proposed Rule 35.
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(c) Standard Option, for Securities Collateral Held at Various 
Settlement Locations
    CMS Users may elect the Standard Option for securities held at any 
applicable settlement location, including custodial banks and DTC. 
Under the Standard Option, a CMS User will have the option to specify 
to DEGCL, obligation by obligation, what collateral to transfer with 
respect to each counterparty collateral obligation and at what 
settlement location, hence ``self-select.'' DEGCL will process the 
information it receives from the CMS User and generate proposed 
settlement instructions for the transfer of such collateral at the 
applicable settlement location. DEGCL will send its proposed settlement 
instructions to the CMS User and/or its agent, referred to by DEGCL as 
a designated settlement service provider (``DSSP'').\12\ The DSSP will 
determine whether to issue the proposed settlement instructions to the 
applicable settlement location.
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    \12\ DSSP is a DEGCL concept, not a DTC defined term. DTC 
understands that, pursuant to the CMS Agreement, a CMS User must 
either appoint a DSSP or act as its own DSSP, and the DSSP, as agent 
of the CMS User, is responsible for receiving the proposed 
settlement instructions (and other information) from DEGCL, and 
acting on such information in the manner agreed by the CMS User and 
its DSSP. If the applicable settlement location is DTC, the DSSP 
must be a DTC Participant that may instruct DTC in accordance with 
DTC Rules and Procedures. Because the Standard Option does not 
depend on a CMS Sub-Account, such DTC Participant is not a CMS 
Participant for purposes of the proposed rule change.
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    For the Standard Option applied to securities collateral for which 
DTC is the applicable settlement location, DEGCL will not receive any 
information from DTC and, therefore, this option is not subject to the 
proposed rule change. The CMS User will self-report information to 
DEGCL.
(c) Allocation Option for Securities Collateral Held at DTC
    The Allocation Option would only be used in connection with 
Eligible Securities held at DTC in a CMS Sub-Account by a CMS 
Participant (``CMS Securities''). The CMS Participant may be a CMS User 
acting for itself or a DTC Participant acting on behalf of a CMS User 
as the CMS Participant.\13\ As described below, the Allocation Option 
is dependent on DEGCL receiving certain information from DTC for the 
applicable CMS Sub-Account of the applicable CMS Participant. The 
proposed rule change provides a mechanism for a CMS Participant to 
authorize DEGCL as its ``CMS Representative'' to receive the necessary 
information from DTC, and to direct DTC to provide DEGCL with that 
information, as described in detail below.
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    \13\ DTC understands that, for purposes of the Allocation 
Option, DEGCL would consider the CMS Participant to be the DSSP.
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(ii) Proposed Rule Change
(a) The Proposed Rule Change Would Establish Dedicated CMS Sub-Accounts 
at DTC for CMS Participants and Provide That a CMS Participant 
Authorizes DEGCL, as its CMS Representative, To Receive Certain 
Information About its CMS Sub-Accounts and Directs DTC To Provide the 
Information to DEGCL, as its CMS Representative
    The proposed rule change would allow a CMS Participant to establish 
one or more CMS Sub-Accounts. A CMS Participant would, from time to 
time, instruct DTC to transfer Securities from its Account to its CMS 
Sub-Account, to be available for allocation by DEGCL to delivery or 
pledge by book-entry at DTC in accordance with DTC Rules and Procedures 
(including risk management controls),\14\ in satisfaction of the 
various

[[Page 15083]]

collateral obligations of the CMS Participant or the CMS User on behalf 
of which the CMS Participant is acting.
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    \14\ DTC risk management controls, including Collateral Monitor 
and Net Debit Cap (as defined in Rule 1, Section 1 of the DTC 
Rules), are designed so that DTC may complete system-wide settlement 
notwithstanding the failure to settle of its largest Participant or 
Affiliated Family of Participants. The Collateral Monitor tests 
whether a Participant has sufficient collateral for DTC to pledge or 
liquidate if that Participant were to fail to meet its settlement 
obligation. Pursuant to these controls under applicable DTC Rules 
and Procedures, any Delivery instruction order to a CMS Sub-Account 
that would cause the CMS Participant to exceed its Net Debit Cap or 
to have insufficient DTC Collateral to secure its obligations to 
DTC, would not be processed by DTC. Deliveries would be processed in 
the same order and with the same priority as otherwise provided in 
the DTC Rules and Procedures, i.e., such Deliveries would not take 
precedence over any other type of Delivery in the DTC system.
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    By establishing a CMS Sub-Account, a CMS Participant would be: (a) 
Authorizing DEGCL, as its CMS Representative, to receive the 
information defined below regarding CMS Securities credited to the CMS 
Sub-Account at the time of the report (``CMS Report''), and regarding 
any Delivery or Pledge from, or Delivery or Release to, the CMS Sub-
Account (``CMS Delivery Information''); \15\ (b) representing and 
warranting that it is duly authorized to instruct DTC to provide the 
CMS Reports and CMS Delivery Information about such CMS Sub-Account to 
the CMS Representative; (c) directing DTC to provide the CMS Reports 
and CMS Delivery Information to DEGCL; \16\ and (d) representing and 
warranting that it would conduct business in such CMS Sub-Account as 
provided in proposed Rule 35, and otherwise pursuant to the DTC Rules 
and Procedures, and in compliance with applicable law.
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    \15\ Each CMS Participant would continue to be liable as 
principal for the actions of its CMS Representative and would 
indemnify DTC against any claim or loss arising from any act or 
omission of its CMS Representative, or arising from DTC's provision 
of the CMS Report and CMS Delivery Information to DEGCL or the 
receipt and use thereof by DEGCL, except to the extent caused 
directly by DTC's gross negligence or willful misconduct.
    \16\ The CMS Report and CMS Delivery Information would be 
transmitted to DEGCL using DTCC's existing Common Data Transfer 
Service (``CDTS'') over a dedicated BT Radianz link. CDTS is DTCC's 
proprietary file input and output management system. It enables DTCC 
to securely and reliably automate the exchange of files over a 
network link with its Participants, Members, and third-parties. See 
CDTS User Guide and Schemas, available at http://www.dtcc.com/~/
media/Files/Downloads/Settlement-Asset-Services/Underwriting/
CDTS.zip. BT Radianz is an existing DTCC network service provider.
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    The CMS Report would include, with respect to the CMS Securities 
credited to a CMS Sub-Account of such CMS Participant at the time of 
such report, the following information: (a) The CUSIP, ISIN, or other 
identification number of the CMS Securities and (b) the number of 
shares or other units or principal amount of the CMS Securities. CMS 
Delivery Information would be provided in real time, and would include, 
with respect to (i) each Delivery or Pledge of CMS Securities from, or 
(ii) Delivery or Release of CMS Securities to a CMS Sub-Account, a copy 
of any Delivery, Pledge, or Release message with respect to the CMS 
Sub-Account, including the following information: (x) The CUSIP, ISIN, 
or other identification number of such CMS Securities and (y) the 
number of shares or other units or principal amount of such CMS 
Securities.
(b) The Proposed Rule Change Supports a CMS Participant's Use of the 
DEGCL CMS Allocation Option
    As explained above, once the CMS Participant establishes a CMS Sub-
Account, DTC would send CMS Reports and CMS Delivery Information for 
that CMS Sub-Account to DEGCL. The CMS Reports and CMS Delivery 
Information would provide DEGCL with up-to-date snapshots of the 
Securities credited to the CMS Sub-Account to identify to DEGCL the 
available CMS Securities from which it could propose allocations for 
Delivery or Pledge by book-entry at DTC in accordance with DTC Rules 
and Procedures (including risk management controls) and for DEGCL to 
maintain such information and records as it has agreed with CMS Users 
that it will maintain.
    DEGCL would review the Securities credited to a CMS Sub-Account and 
verify, through a series of algorithms, which CMS Securities in the CMS 
Sub-Account meet the collateral obligations of the applicable CMS User 
to its several counterparties that are CMS Users that have agreed to 
the Allocation Option. Based on the results, DEGCL would formulate a 
set of proposed settlement instructions for the Deliveries and/or 
Pledges of the CMS Securities in accordance with the DTC Rules and 
Procedures, including risk management controls.\17\ DEGCL would then 
transmit the proposed settlement instructions to the CMS Participant, 
acting on its own behalf or on behalf of a CMS User; the CMS 
Participant would determine whether to submit the proposed settlement 
instruction(s) to DTC. That is, the CMS Participant remains responsible 
for deciding whether to submit the proposed settlement instructions. 
Once the CMS Participant submits the settlement instruction to DTC, 
DEGCL would receive the corresponding Delivery Information and update 
its records accordingly.
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    \17\ See supra note 12.
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(c) Proposed Rule
    The proposed rule change would add Rule 35 to the DTC Rules, to 
provide for:
    i. The defined terms applicable to the proposed Rule 35,\18\
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    \18\ The defined terms would be CMS, CMS Delivery Information, 
CMS Participant, CMS Report, CMS Representative, CMS Securities, CMS 
Sub-Account, DEGCL, and DTCC, as discussed above.
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    ii. the establishment and maintenance of one or more CMS Sub-
Accounts for each CMS Participant;
    iii. each CMS Participant's authorization of DEGCL as its CMS 
Representative;
    iv. each CMS Participant's representation and warranty that it is 
duly authorized to instruct DTC to provide the CMS Reports and CMS 
Delivery Information about such CMS Sub-Account to the CMS 
Representative, and that it would conduct business in such CMS Sub-
Account as provided in proposed Rule 35 and otherwise pursuant to the 
DTC Rules and Procedures, and in compliance with applicable law;
    v. information to be provided by DTC to the CMS Representative of 
the CMS Participant, specifically, the CMS Report and CMS Delivery 
Information;
    vi. Deliveries of Securities by a CMS Participant from an Account 
of the CMS Participant to its CMS Sub-Account, and Deliveries and 
Pledges from its CMS Sub-Account;
    vii. each CMS Participant's liability as principal for the actions 
of its CMS Representative with respect to all matters provided under 
proposed Rule 35 or otherwise;
    viii. DTC's disclaimer of liability to: (x) Any CMS Participant as 
a result of providing the CMS Report and CMS Delivery Information to 
its CMS Representative pursuant to proposed Rule 35; (y) the CMS 
Representative or any CMS Participant as a result of (i) any loss 
relating to proposed Rule 35, unless caused directly by DTC's gross 
negligence, willful misconduct, or violation of federal securities laws 
for which there is a private right of action or (ii) any force majeure, 
market disruption, or technical malfunction, or (z) any third party for 
any reason; and
    ix. indemnification of DTC by the CMS Participant for any loss 
arising from any act or omission of its CMS Representative, or arising 
from the provision of the CMS Report and CMS Delivery Information to 
its CMS Representative or the receipt and use thereof by the CMS 
Representative, except to the extent caused directly by DTC's gross 
negligence or willful misconduct.

[[Page 15084]]

Implementation Timeframe
    DTC will implement the proposed rule change upon approval of this 
filing by the Commission.
2. Statutory Basis
    DTC believes that the proposed rule change is consistent with the 
requirements of the Act, and the rules and regulations thereunder 
applicable to DTC, in particular Section 17A(b)(3)(F) of the Act,\19\ 
and Rule 17Ad-22(d)(7) promulgated thereunder.\20\
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    \19\ 15 U.S.C. 78q-1(b)(3)(F).
    \20\ 17 CFR 240.17Ad-22(d)(7).
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    Section 17A(b)(3)(F) of the Act \21\ requires, inter alia, that the 
DTC Rules be designed to promote the prompt and accurate clearance and 
settlement of securities transactions. By looking across transactions 
of a CMS User with multiple counterparties, the Allocation Option would 
offer efficiency by automating the selection of appropriate securities 
collateral to satisfy applicable collateral obligations. Proposed Rule 
35 would provide a mechanism for DTC to provide information on behalf 
of CMS Participants to DEGCL, so that they may avail themselves of the 
efficiency of the Allocation Option and would not need to transmit 
delivery and position information to DEGCL. By supporting this 
efficiency in the collateral sector, DTC is helping to streamline the 
settlement of the increasing volume of collateral transactions, thereby 
promoting the prompt and accurate clearance and settlement, consistent 
with the requirements of the Act, in particular Section 17A(b)(3)(F), 
cited above.
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    \21\ 15 U.S.C. 78q-1(b)(3)(F).
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    Rule 17Ad-22(d)(7) promulgated under the Act \22\ requires that a 
registered clearing agency establish, implement, maintain and enforce 
written policies and procedures reasonably designed to evaluate the 
potential sources of risks that can arise when the clearing agency 
establishes links either cross-border or domestically to clear or 
settle trades, and ensure that the risks are managed prudently on an 
ongoing basis. In developing this proposal, DTC evaluated the market, 
liquidity, operational, and information security, technology, and 
privacy risks that could arise in allowing CMS Participants to 
establish a CMS Sub-Account and allow DTC to provide information to 
DEGCL in support of the Allocation Option. Such risks include data 
error from the communication link or the external communication of a 
CMS Participant's proprietary information. DTC determined that the 
identified risks are mitigated because (i) the Allocation Option would 
not require any material change to DTC's settlement framework, 
technology or operating procedures including existing settlement cycles 
and risk management controls; (ii) DTCC's Technology Risk Management 
existing control procedures will manage data integrity and 
authorization provisioning to mitigate information and technology risk; 
and (iii) DEGCL is only receiving CMS Reports and CMS Delivery 
Information from a CMS Sub-Account specifically designated for this 
purpose by a CMS Participant. As a result, the CMS Sub-Account activity 
and reporting should be well monitored. Accordingly, DTC believes the 
proposed Rule 35 is consistent with DTC's obligations under Rule 17Ad-
22(d)(7), cited above.
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    \22\ 17 CFR 240.17Ad-22(d)(7).
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(B) Clearing Agency's Statement on Burden on Competition

    DTC believes that the proposed rule change would not impose any 
burden on competition with respect to fees charged by DTC for the CMS 
Sub-Account and associated reporting because there would be no new or 
increased fees imposed. For transactions into and out of the CMS Sub-
Account, standard, existing transaction fees would apply. In addition, 
DTC believes that the proposed rule change would not impose any burden 
on competition with respect to access to the proposed service. The 
proposed service is optional and would be available to all DTC 
Participants that choose to be CMS Users of the Allocation Option (or 
DTC Participants' customers that choose to be CMS Users of the 
Allocation Option and agree that such DTC Participants will act on 
their behalf in respect of this activity). However, DTC recognizes that 
the proposed rule is tailored to support a specialized service 
available only to such CMS Users. DTC relies on the representations of 
DEGCL that it provides open access to diverse CMS Users and thus, 
indirectly, the benefits of the proposed rule change should be 
available on a broad basis to industry members requiring such services, 
not imposing a burden on competition in this respect.

(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 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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate 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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-DTC-2017-001 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549.

All submissions should refer to File Number SR-DTC-2017-001. 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

[[Page 15085]]

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-2017-001 and should be 
submitted on or before April 14, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05853 Filed 3-23-17; 8:45 am]
 BILLING CODE 8011-01-P