[Federal Register Volume 86, Number 136 (Tuesday, July 20, 2021)]
[Notices]
[Pages 38381-38389]
[FR Doc No: 2021-15345]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92410; File No. SR-DTC-2021-012]

Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Consisting of Modifications to the Text of the Rules and the
Procedures, of the Service Guide for the DTC Canadian-Link Service and
the DTC Operational Arrangements Relating to the Elimination of the
Canadian Dollar Settlement Feature of the Canadian-Link Service

July 14, 2021.
    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 July 12, 2021, 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 the clearing agency. DTC filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(4)
thereunder.\4\ 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)(4).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule change of DTC \5\ consists of modifications to
the text of the Rules and the Procedures,\6\

including Rule 30, of the service guide (``Guide'') \7\ for the DTC
Canadian-Link Service (``Canadian-Link Service'') and the DTC
Operational Arrangements (Necessary for Securities to Become and Remain
Eligible for DTC Services) (``OA'') \8\ relating to the elimination of
the Canadian dollar (``CAD'') settlement feature of the Canadian-Link
Service, as described below.
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    \5\ Capitalized terms not defined herein are defined in the
Rules, By-Laws, and Organization Certificate of DTC (``Rules''),
available at www.dtcc.com/~/media/Files/Downloads/legal/rules/
dtc_rules.pdf and the Guide.
    \6\ Pursuant to the Rules, the term ``Procedures'' means the
Procedures, service guides, and regulations of DTC adopted pursuant
to Rule 27, as amended from time to time. See Rule 1, Section 1,
supra note 5. Pursuant to Rule 27, each Participant and DTC is bound
by the Procedures and any amendment thereto in the same manner as it
is bound by the Rules. See Rule 27 at 97, supra note 5.
    \7\ Available at http://www.dtcc.com/~/media/Files/Downloads/
legal/service-guides/Canadian_Dollar_Settlement.pdf.
    \8\ Available at http://www.dtcc.com/~/media/Files/Downloads/
legal/issue-eligibility/eligibility/operational-arrangements.pdf.
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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 proposed rule change consists of modifications to the text of
the Rules and the Procedures, including Rule 30,\9\ the Guide and the
OA relating to the elimination of the CAD settlement feature of the
Canadian-Link Service, as described below.
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    \9\ Supra note 5.
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Background

    In 2006, DTC established a ``northbound'' Canadian-Link Service
that supports transactions settled in CAD.\10\ Rule 30 \11\ describes
the operation of the Canadian-Link Service, that permits DTC
Participants using the Canadian Link Service (``Canadian-Link
Participants'') to (A) settle Delivery Versus Payment (``DVP'')
Securities transactions with participants (``CDS Participants'') of The
Canadian Depository for Securities Limited (``CDS'') and other
Canadian-Link Participants in CAD and (B) transfer CAD to or receive
CAD from CDS Participants and other Canadian-Link Participants without
any corresponding delivery or receipt of Securities.\12\
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    \10\ See Securities Exchange Act Release No. 52784 (November 16,
2005), 70 FR 70902 (November 23, 2005) (SR-DTC-2005-08).
    \11\ Supra note 5.
    \12\ The Canadian-Link Service also provides for Cross-Border
USD Securities Transactions between Participants and CDS
Participants. See Rule 30, Section 1(a)(2), supra note 5. See also
Securities Exchange Act Release No. 55239 (February 5, 2007), 72 FR
6797 (February 13, 2007) (SR-DTC-2006-15).
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    The Canadian-Link Service provides Participants with a single
depository interface for CAD transactions. The link facilitates
Participants' ability to maintain U.S. and Canadian Security positions
in their DTC accounts for Securities listed in both Canada and the
United States (i.e., dually listed). This eliminates the need for
Participants to maintain separate positions in an eligible \13\
Security in CDS for CAD settlements and in DTC for USD settlements. It
also eliminates the need for Participants to reposition Securities
inventory between DTC and CDS in preparation for corporate action
events and or transaction processing for dually listed issues.
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    \13\ DTC may determine the Securities that are eligible for the
Canadian-Link Service. Some Securities may be eligible for all
purposes of the Canadian-Link Service, and some Securities may be
eligible only for limited purposes (e.g., clearance and settlement
through the facilities of CDS but only custody and asset servicing
through the facilities of DTC). See Rule 30, Section 4, supra note
5.
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    Transactions between Canadian-Link Participants and CDS
Participants are processed through an omnibus account maintained by DTC
at CDS (``DTC Omnibus Account'') in accordance with the rules and
procedures of CDS. Canadian-Link Participants are able (i) to deliver
Securities to or receive Securities from CDS Participants against
payment (i.e., DVP) in CAD and (ii) to transfer funds to or receive
funds from CDS Participants in CAD without any corresponding delivery
or receipt of Securities. Transactions between Canadian-Link
Participants and other Canadian-Link Participants are processed through
accounts at DTC in accordance with the Rules.
    For both transactions (i) between Canadian-Link Participants and
CDS Participants processed through the DTC Omnibus Account and (ii)
between Canadian-Link Participants and other Canadian-Link Participants
processed through accounts at DTC, there is a single end-of-day CAD
money settlement between DTC and its Canadian-Link Participants.\14\
For the transactions between Canadian-Link Participants and CDS
Participants processed through the DTC Omnibus Account, there is a
separate end-of-day CAD money settlement between CDS and DTC.
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    \14\ Pursuant to Section 1(h)(15) of Rule 30, the term
``Canadian-Link CAD Money Settlement'' is defined as the money
settlement of Canadian-Link Transactions in CAD Funds between the
DTC and Canadian-Link Participants. Rule 30, supra note 5. DTC notes
that in a list of defined terms at the beginning of Rule 30, the
definition of Canadian-Link CAD Money Settlement is specified to
appear in Section 1(a)(15); however, the definition actually appears
in Section 1(h)(15) of Rule 30 and not Section 1(a)(15) of Rule 30.
Id.
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    As with all transactions processed at DTC, DTC maintains risk
controls with respect to transactions processed by Canadian-Link
Participants, including the Net Debit Cap and Collateral Monitor.\15\
With respect to Collateral Monitor, each Canadian-Link Participant has
a single Collateral Monitor with respect to transactions processed for
such Participant through the Canadian-Link Service and other
transactions processed by DTC for such Participant.
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    \15\ The term ``Collateral Monitor'' of a Participant, as used
with respect to its obligations to the Corporation, means, on any
Business Day, the record maintained by the Corporation for the
Participant which records, in the manner specified in Procedures,
the algebraic sum of (i) the Net Credit or Debit Balance of the
Participant and (ii) the aggregate Collateral Value of the
Collateral of the Participant. Rule 1, Section 1 at 3, supra note 5.
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Proposed Rule Change
    In recent years, activity at DTC in CAD has accounted for less than
0.20 percent of DTC's average daily valued settlement volume. Most of
this activity relates to distributions such as principal, interest and
dividend payments in Securities held at CDS by DTC on behalf of
Participants. While Participants continue to use the Canadian-Link
Service for custody purposes to position Securities inventory at CDS
through DTC's CDS account and receive related distribution payments, no
Participants have effectuated a DVP of Securities through the Canadian-
Link Service since 2018. DTC attributes this lack of DVP activity to a
lack of demand among its Participants for the DVP aspect of the
Canadian-Link Service.
    CDS recently communicated to CDS's participants, including DTC,
that it will be modernizing its settlement system through an initiative
referred to as the Post Trade Modernization (``CDS PTM'') Project.\16\
For DTC to continue to maintain access to CDS's CAD settlement
services, it would have been necessary for DTC to perform systems
development in order to be able to continue to use this aspect of the
Canadian-Link service. However, the CDS modernization does not
adversely impact DTC's ability to hold Securities

at CDS on behalf of Participants, receive distributions on behalf of
Participants and facilitate Free Deliveries \17\ through the link.
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    \16\ See CDS's website at https://www.cds.ca/about/post-trade-modernization for information published by CDS regarding CDS PTM.
    \17\ Pursuant to Rule 1, the term ``Free Delivery'' means a
Delivery free of any payment by the Receiver through the facilities
of the Corporation, as provided in Rule 9(B) and as specified in the
Procedures. See supra note 5.
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    Rule 30, Section 2 provides:

    The Corporation has entered into various agreements with CDS,
and as a participant of CDS has undertaken to abide by the rules,
procedures and user guides of CDS (the ``Rules and Procedures of
CDS''). Such agreements and the Rules and Procedures of CDS, as the
same may be amended or supplemented from time to time, are
collectively referred to as the ``CDS Documents''. Notwithstanding
anything else contained in this Rule 30 or otherwise in the Rules
and Procedures of the Corporation, the Corporation shall offer the
Canadian-Link Service only for so long as the Corporation continues
to be a participant of CDS and there have been no changes in the CDS
Documents, or actions taken by CDS, which would, in the judgment of
the Corporation, prevent or impair the ability of the Corporation to
offer the Canadian-Link Service or make it impractical or onerous
for the Corporation to do so.

    DTC has determined that it would no longer be able to access CDS's
CAD settlement service without making necessary system changes
consistent with CDS PTM. In DTC's judgement, it would be impractical
for DTC to incur the costs to undertake such changes, including
incurring development costs, due to the lack of demand by its
Participants to use the valued aspect of the Canadian Link Service.
    In this regard, because there is no Participant demand for valued
CAD Securities transaction and CAD Funds transfer aspect of the
Canadian-Link Service, it is DTC's judgement that it would be
impractical for DTC to continue to process valued CAD Securities and
CAD Funds transfer transactions and, in accordance with its discretion
set forth in Rule 30 as described above, DTC has discontinued
processing of CAD Securities and CAD Funds transactions through the
Canadian-Link Service.\18\ DTC proposes to amend the Rules to clarify
its Rules in this regard and reflect the elimination of the function of
processing of CAD Securities and CAD Funds transactions pursuant to the
provisions of Rule 30, Section 2.\19\ However, because the CDS PTM
changes are not expected to materially impact DTC's ability to perform
custody and process Free Deliveries at CDS, DTC would continue to
maintain its membership, including its Securities account, at CDS, to
hold Securities on behalf of DTC Participants at CDS and offer the
functionality allowing Participants the ability to process Free
Deliveries through the Canadian-Link Service. In addition, DTC would
continue to pass distributions paid on Securities held in its DTC
account to the applicable Participants in CAD or USD.\20\
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    \18\ See DTC Important Notice 13639-20 (July 10, 2020).
Available at https://www.dtcc.com/-/media/Files/pdf/2020/7/10/13639-20.pdf.
    \19\ Supra note 5.
    \20\ See OA at 23-27, supra note 8.
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    In this regard, DTC proposes to update the text of its Rules to
reflect the discontinuance of processing valued CAD Securities
transactions and CAD Funds transfers through the Canadian-Link Service.
Proposed Rule Changes
Proposed Changes to Rulebook
    Pursuant to the proposed rule change, DTC will delete text in Rule
30 relating to the processing of CAD transactions in the Canadian-Link
Service, including as follows.
Defined Terms
    Defined terms relating to the description of the processing of CAD
transactions in Rule 30 would be deleted, including CAD Funds,\21\
Canadian-Link CAD Money Settlement,\22\ Canadian-Link CAD Net Debit
Cap,\23\ Canadian-Link CAD Net Settlement Credit,\24\ Canadian-Link CAD
Settlement Debit,\25\ Canadian-Link Funds Transactions,\26\ Canadian-
Link Net Debit Cap,\27\ Canadian-Link Net Settlement Credit,\28\
Canadian-Link Net Settlement Debit,\29\ Canadian-Link Participants Fund
Cash,\30\ Canadian-Link Required Participants Fund Deposit,\31\
Canadian-Link USD Net Debit Cap,\32\ Canadian-Link USD Net Settlement
Credit,\33\ Canadian-Link USD Net Settlement Debit,\34\ CDS Payment
Exchange,\35\ Canadian-Link Securities

Transactions,\36\ CDS Settlement Recap,\37\ CDS Settlement Recap
Time,\38\ Collateral Monitor Conversion Rate,\39\ Cross-Border CAD
Funds Transactions,\40\ Cross-Border CAD Securities Transactions,\41\
Cross-Border Net Additions,\42\ Cross-Border USD Securities
Transactions,\43\ DTC Omnibus Account CAD Net Debit Cap,\44\ DTC
Omnibus Account CAD Net Settlement Credit,\45\ DTC Omnibus Account CAD
Net Settlement Debit,\46\ DTC Omnibus Account Net Debit Cap,\47\ DTC
Omnibus Account Net Settlement Credit,\48\ DTC Omnibus Account Net
Settlement Debit,\49\ DTC Omnibus Account USD Net Debit Cap,\50\ DTC
Omnibus Account USD Net Settlement Credit,\51\ DTC Omnibus Account USD
Net Settlement Debit,\52\ DTC Canadian Settlement Bank,\53\ DTC
Settlement Payment Deadline,\54\ DTC Settlement Recap,\55\ DTC
Settlement Recap Time,\56\ Funds,\57\ Intra-DTC CAD Funds
Transactions,\58\ Intra-DTC CAD Securities Transactions,\59\
Participant Canadian Settlement Bank,\60\ Payment Default Conversion
Rate,\61\ Payment

Default Exchange Rate \62\ and USD Funds.\63\
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    \21\ Pursuant to Section 1(h)(3) of Rule 30, the term ``CAD
Funds'' are defined as funds denominated in Canadian dollars. See
Rule 30, supra note 5.
    \22\ See supra note 14.
    \23\ Pursuant to Section 8(a) of Rule 30, the term ``Canadian-
Link CAD Net Debit Cap'' is defined as a limit established by DTC
(i) on the negative CAD Funds balance that may, from time to time,
be incurred by a Canadian-Link Participant in respect of Canadian-
Link Transactions processed for such Participant through the
Canadian-Link Service in CAD Funds. See Rule 30, supra note 5.
    \24\ Pursuant to Rule 30, Section 12(b), the term ``Canadian-
Link CAD Net Settlement Credit'' is defined as the net amount of CAD
Funds, calculated by DTC by a time on a CDS Business Day set forth
in the Procedures, payable by DTC to a Canadian-Link Participant.
Id.
    \25\ Pursuant to Rule 30, Section 12(b), the term ``Canadian-
Link CAD Net Settlement Debit'' is defined as the net amount of CAD
Funds, calculated by DTC by a time on a CDS Business Day set forth
in the Procedures, payable to DTC by a Canadian-Link Participant.
Id.
    \26\ Pursuant to Rule 30, Section 1(h)(8), the term ``Canadian-
Link Funds Transactions'' is defined as Cross-Border CAD Funds
Transactions and Intra-DTC CAD Funds Transactions, referred to
individually or collectively as the context may require. Id.
    \27\ Pursuant to Rule 30, Section 8(a), the term ``Canadian-Link
Net Debit Cap'' is defined as the Canadian-Link CAD Net Debit Cap
and Canadian-Link USD Net Debit Cap referred to, individually or
collectively as the context may require. This section provides that
the Canadian-Link Net Debit Cap of each Canadian-Link Participant
shall be determined by a formula (taking into account the volume of
Canadian-Link Transactions of each Canadian-Link Participant) that
shall be fixed by DTC and set forth in the Procedures. Id.
    \28\ Pursuant to Rule 30, Section 12(b), the term ``Canadian-
Link Net Settlement Credit'' is defined as the Canadian-Link CAD Net
Settlement Credit and Canadian-Link USD Net Settlement Credit
referred to, individually or collectively as the context may
require. Id.
    \29\ Pursuant to Rule 30, Section 12(b), the term ``Canadian-
Link Net Settlement Debit'' is defined as the Canadian-Link CAD Net
Settlement Debit and Canadian-Link USD Net Settlement Debit referred
to, individually or collectively as the context may require. Id.
    \30\ Pursuant to Rule 30, Section 6(c), the term ``Canadian-Link
Participants Fund Cash'' is defined as that portion of the cash in
the Participants Fund equal to the aggregate amount of the Canadian-
Link Required Participants Fund Deposits of all Canadian-Link
Participants. Id.
    \31\ Pursuant to Rule 30, Section 6(a), the term ``Canadian-Link
Required Participant Fund Deposit'' is defined as an amount each
Canadian-Link Participant shall be required to deposit to the
Participants Fund (as described in Section 1 of Rule 4) an amount of
USD Funds in addition to the amount of USD Funds specified in
Section 1(a)(i) of Rule 4. The Canadian-Link Required Participants
Fund Deposit shall be in cash. The Canadian-Link Required
Participants Fund Deposit of each Canadian-Link Participant shall be
determined by a formula (considering the volume of transactions of
each Canadian-Link Participant) that shall be fixed by the DTC and
set forth in the Procedures. DTC may, from time to time, change the
formula for determining the Canadian-Link Required Participants Fund
Deposits of Canadian-Link Participants; provided, however, that
notice of such change shall be given to each Canadian-Link
Participant at least ten Business Days in advance of the effective
date thereof. Id.
    \32\ Pursuant to Rule 30, Section 8(a), a ``Canadian-Link USD
Net Debit Cap'' is to be established by DTC on the negative USD
Funds balance that may, from time to time, be incurred by a
Canadian-Link Participant in respect to Canadian-Link Transactions
processed for such Participant through the Canadian-Link Service in
USD Funds. Id.
    \33\ Pursuant to Rule 30, Section 12(b), the term ``Canadian-
Link USD Net Settlement Credit'' is defined as the net amount of USD
Funds calculated by DTC by a time on a CDS Business Day set forth in
the Procedures and payable by DTC to a Canadian-Link Participant.
Id.
    \34\ Pursuant to Rule 30, Section 12(b), the term ``Canadian-
Link USD Net Settlement Debit'' is defined as the net amount of USD
Funds calculated by DTC by a time on a CDS Business Day set forth in
the Procedures and payable to DTC by a Canadian-Link Participant.
Id.
    \35\ Pursuant to Rule 30, Section 13(a), ``CDS Payment
Exchange'' is defined as on each CDS Business Day, during a period
of time set forth in the Rules and Procedures of CDS, when CDS is
required to pay to DTC the amount of its DTC Omnibus Account CAD Net
Settlement Credit, id, or DTC is required to pay to CDS the amount
of its DTC Omnibus Account CAD Net Settlement Debit, as specified in
the CDS Settlement Recap. All such payments to or by DTC are made to
or by a Canadian bank acting on behalf of DTC. Id.
    \36\ Pursuant to Rule 30, Section 1(h)(7), ``Canadian-Link
Securities Transactions'' is defined, individually or collectively
as the context may require, Cross-Border CAD Securities
Transactions, Cross-Border USD Securities Transactions and Intra-DTC
CAD Securities Transactions. Id.
    \37\ Pursuant to Rule 30, Section 12(a), provides the definition
of ``CDS Settlement Recap'' as follows: ``On each CDS Business Day,
by a time set forth in the Rules and Procedures of CDS, CDS
calculates and provides to the Corporation a settlement recap (the
``CDS Settlement Recap'') with (i) the net amount of CAD Funds
payable by CDS to the Corporation (a ``DTC Omnibus Account CAD Net
Settlement Credit'') or by the Corporation to CDS (a ``DTC Omnibus
Account CAD Net Settlement Debit''), (ii) the net amount of USD
Funds payable by CDS to the Corporation (a ``DTC Omnibus Account USD
Net Settlement Credit'') or by the Corporation to CDS (a ``DTC
Omnibus Account USD Net Settlement Debit'') and (iii) other
information in respect of the Cross-Border Transactions processed by
CDS for the Corporation on such CDS Business Day.'' Id.
    \38\ Pursuant to Rule 30, Section 12(a), ``CDS Settlement Recap
Time'' is defined as time when CDS provides the CDS Settlement Recap
to DTC. Id.
    \39\ Pursuant to Rule 30, Section 16(b), provides the definition
of ``Collateral Monitor Conversion Rate'' as follows: ``If any
computation has to be made requiring the conversion of an amount of
CAD Funds into an amount of USD Funds for the purpose of calculating
the Collateral Monitor of a Canadian-Link Participant pursuant to
Section 9 of this Rule 30, the conversion rate for such purpose
shall be a rate determined by a formula (taking into account
exchange rate fluctuations) that shall be fixed by the Corporation
and set forth in the Procedures (the ``Collateral Monitor Conversion
Rate'').'' Id.
    \40\ Pursuant to Rule 30, Section 1(a)(4), the term ``Cross-
Border CAD Funds Transactions'' is defined as the transfer of
Canadian dollars between Participants of DTC and participants of
CDS. Id.
    \41\ Pursuant to Rule 30, Section 1(a)(1), the term ``Cross-
Border CAD Securities Transactions'' is defined as the settlement of
valued transactions (A) in Securities that are Eligible Securities
(as described in Section 1 of Rule 5) and in Securities that are not
Eligible Securities (B) in Canadian dollars (C) between Participants
of the Corporation and participants of CDS (``Cross-Border CAD
Securities Transactions''). Id.
    \42\ Pursuant to Rule 30, Section 7(b), the term ``Cross-Border
Net Additions'' is defined as any Cross-Border Securities credited
to the DTC Omnibus Account. Id.
    \43\ Pursuant to Rule 30, Section 1(a)(2), the term ``Cross-
Border USD Securities Transactions'' is defined as the settlement of
valued transactions in (A) Securities that are not Eligible
Securities (B) in US dollars (C) between Participants of DTC and
participants of CDS. Id.
    \44\ Pursuant to Rule 30, Section 8(a), the term ``DTC Omnibus
Account CAD Net Debit Cap'' is defined as a limit established by CDS
on the negative CAD Funds balance that may, from time to time, be
incurred in the DTC Omnibus Account in respect of Cross-Border
Transactions processed for DTC through the facilities of CDS in CAD
Funds. Id.
    \45\ See supra note 37.
    \46\ Id.
    \47\ Pursuant to Rule 30, Section 8(a), the terms ``DTC Omnibus
Account CAD Net Debit Cap'' and ``DTC Omnibus Account USD Net Debit
Cap'' are referred to, individually or collectively as the context
may require, as the ``DTC Omnibus Account Net Debit Cap.'' See Rule
30, supra note 5.
    \48\ Pursuant to Rule 30, Section 12(a), the term ``DTC Omnibus
Account Net Settlement Credit'' means the DTC Omnibus Account CAD
Net Settlement Credit and DTC Omnibus Account USD Net Settlement
Credit, individually or collectively as the context may require. Id.
    \49\ Pursuant to Rule 30, Section 12(a), the term ``DTC Omnibus
Account Net Settlement Debit'' means the DTC Omnibus Account CAD Net
Settlement Debit and DTC Omnibus Account USD Net Settlement Debit,
individually or collectively as the context may require. Id.
    \50\ Pursuant to Rule 30, Section 8(a), the term ``DTC Omnibus
Account USD Net Debit Cap'' is defined pursuant to the Rules and
Procedures of CDS, as a limit established by CDS (i) on the negative
USD Funds balance that may, from time to time, be incurred in the
DTC Omnibus Account in respect of Cross-Border Transactions
processed for the Corporation through the facilities of CDS in USD
Funds. Id.
    \51\ See supra note 37.
    \52\ Id.
    \53\ Pursuant to Rule 30, Section 13(a), the term ``DTC Canadian
Settlement Bank'' is defined as a Canadian bank acting on behalf of
DTC for payments relating to CDS paying to DTC the amount of the DTC
Omnibus Account CAD Net Settlement Credit, or DTC paying to CDS the
amount of its DTC Omnibus Account CAD Net Settlement Debit, as
specified in the CDS Settlement Recap. See Rule 30, supra note 5.
    \54\ Pursuant to Rule 30, Section 13(b), the term ``DTC
Settlement Payment Deadline'' is defined as on each CDS Business
Day, by a time set forth in the Procedures of the Corporation, each
Canadian-Link Participant with a Canadian-Link CAD Net Settlement
Debit shall pay to the Corporation the amount of its Canadian-Link
CAD Net Settlement Debit, as specified in the DTC Settlement Recap.
See Rule 30, supra note 5. The time when such payment must be made
is referred to as the ``DTC Settlement Payment Deadline.'' Id.
    \55\ Pursuant to Rule 30, Section 12(b), the term ``DTC
Settlement Recap'' is defined as described in the following: ``On
each CDS Business Day, by a time set forth in the Procedures of the
Corporation, the Corporation shall calculate and provide to each
Canadian-Link Participant a settlement recap (a ``DTC Settlement
Recap'') with (i) the net amount of CAD Funds payable by the
Corporation to such Canadian-Link Participant (a ``Canadian-Link CAD
Net Settlement Credit'') or by such Canadian-Link Participant to the
Corporation (a ``Canadian-Link CAD Net Settlement Debit''), (ii) the
net amount of USD Funds payable by the Corporation to such Canadian-
Link Participant (a ``Canadian-Link USD Net Settlement Credit'') or
by such Canadian-Link Participant to the Corporation (a ``Canadian-
Link USD Net Settlement Debit'') and (iii) other information in
respect of the Canadian-Link Transactions of such Canadian-Link
Participant processed through the Canadian-Link Service on such CDS
Business Day, including both Cross-Border Transactions with CDS
Participants processed for such Participant through the DTC Omnibus
Account and Intra-DTC Transactions with other Canadian-Link
Participants processed for such Participant through Accounts with
the Corporation.'' Id.
    \56\ Pursuant to Rule 30, Section 12(b), the term ``DTC
Settlement Recap Time'' means the time when DTC provides the DTC
Settlement Recap to Canadian-Link Participants. Id.
    \57\ Pursuant to Rule 30, Section 1(h)(5), the term ``Funds'' is
defined as CAD Funds and USD Funds, individually or collectively as
the context may require. Id.
    \58\ Pursuant to Rule 30, Section 1(a)(5), the term ``Intra-DTC
CAD Funds Transactions'' is defined as the transfer of Canadian
dollars between Participants of DTC and other Participants of DTC.
Id.
    \59\ Pursuant to Rule 30, Section 1(a)(3), the term ``Intra-DTC
CAD Securities Transactions'' is defined as the settlement of valued
transactions (A) in Securities that are Eligible Securities (B) in
Canadian dollars (C) between Participants of DTC and other
Participants of DTC. Id.
    \60\ Pursuant to Rule 30, Section 13(d), the term ``Participant
Canadian Settlement Bank'' is defined as a Canadian Bank acting on
behalf of a Canadian bank to which all payments of CAD Funds to or
by a Canadian-Link Participant shall be made. Id.
    \61\ Pursuant to Rule 30, Section 16 (c), ``Payment Default
Conversion Rate'' is defined as follows: ``If any computation has to
be made requiring the conversion of an amount of CAD Funds into an
amount of USD Funds for the purpose of calculating the Gross
Settlement Debit of a Canadian-Link Participant pursuant to Section
15 of this Rule 30, the conversion rate for such purpose shall be a
rate determined by a formula (taking into account all factors
incident to the default of such Participant in the payment of its
Canadian-Link CAD Net Settlement Debit) that shall be fixed by the
Corporation and set forth in the Procedures (the ``Payment Default
Conversion Rate'').'' Id.
    \62\ Pursuant to Rule 30, Section 16(a), the term ``Payment
Default Exchange Rate'' is defined as the exchange rate determined
by a formula (taking into account all factors incident to the
default of such Participant in the payment of its Canadian-Link CAD
Net Settlement Debit) that shall be fixed by DTC and set forth in
the Procedures. The exchange rate relates to any amount of USD Funds
has to be exchanged for an amount of CAD Funds to pay (or re-fund) a
DTC Omnibus Account CAD Net Settlement Debit to CDS in accordance
with Section 13 of this Rule 30 because a Canadian-Link Participant
failed to pay DTC the amount of its Canadian-Link CAD Net Settlement
Debit. Id.
    \63\ Pursuant to Rule 30, Section 1(h)(4), the term ``USD
Funds'' is defined as funds denominated in US dollars. Id.
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    Cross references to sections of Rule 30 for certain defined terms
would be revised to reflect renumbering of the respective referenced
sections, as more fully described below. The referenced section for the
term (A) ``Canadian-Link Participants'' would be revised from Section
1(h)(1) to Section 1(e)(1), (B) ``Canadian-Link Securities'' from
Section 1(h)(14) to Section 1(e)(8), (C) ``Canadian-Link Transactions''
from Section 1(h)(11) to Section 1(e)(5), ``CDS Business Day'' from
Section 11(a) to Section 7(a), (D) ``CDS Participants'' from Section
1(h)(2) to Section 1(e)(2), (E) ``Cross-Border Securities'' from
Section 1(h)(12) to Section 1(e)(6), (F) ``Cross-Border Transactions''
from Section 1(h)(9) to Section 1(e)(3), (G) ``DTC Business Day'' from
Section 11(a) to Section 7(a), (I) ``Intra-DTC Securities'' from
Section 1(h)(13) to Section 1(e)(7), and ``Intra-DTC Transactions''
from Section 1(h)(10) to Section 1(e)(4).
Section 1--Overview of Canadian Link Service
    Section 1 of Rule 30 describes the scope of services offered by DTC
relating to the Canadian-Link Service. Pursuant to the proposed rule
change, Section 1 of Rule 30 would be revised to remove references to
the processing of CAD Securities and CAD Funds transactions through the
Canadian-Link service and provide only for processing of Free
Deliveries through the link. These changes include:
    (i) Consolidate subsection (a) of Section 1 by eliminating
references to DTC processing of (1) Cross-Border CAD Securities
Transactions, (2) Cross-Border USD Securities Transactions, (3) Intra-
DTC CAD Securities Transactions, (4) Cross-Border CAD Funds
Transactions and (5) Intra-DTC CAD Funds Transactions, and instead
refer to processing of Free Deliveries only.
    (ii) Subsection (b) of Section 1 which currently states, among
other things, that DTC provides the Canadian-Link Service as a
Securities Intermediary for its Participants, and all transactions in
Securities and transfers of funds are subject to the Rules and
Procedures of the Corporation, including this Rule 30 and the
Procedures adopted pursuant to Rule 30, would be amended to delete the
reference to ``and transfers of funds.'' This reference would be
deleted as DTC would no longer offer the ability to process CAD Funds
Transactions through the Canadian-Link Service. As indicated above, DTC
notes that distributions such as principal, interest and dividend
payments relating Securities held at CDS by DTC on behalf of
Participants would continue to be processed through DTC's CAD Settling
Bank to DTC Participants, pursuant to the applicable provisions of the
OA. Processing of such distributions are conducted through DTC's asset
servicing functions and are not part of the DVP functionality that DTC
proposes to eliminate from its Rules and Procedures.
    (iii) DTC would amend Subsection (c) of Section 1 to change
references to ``seller'' and ``purchaser'' of Securities to
``Deliverer'' \64\ and ``Receiver,'' \65\ respectively, to harmonize
the use of terms with DTC's rules related to settlement of Securities
Deliveries and receives generally. DTC would also amend the text of
this subsection to reflect the proposal that DVP transactions would no
longer be processed through the Canadian-Link Service. In this regard,
references to settlement in CAD would be deleted, and the text would
refer to the crediting and debiting of Securities from a ``Deliverer''
to a ``Receiver.'' Also, Subsection (d) directly below Subsection (c),
which refers to cross-border settlement of transactions in USD would be
deleted in its entirety to reflect the elimination of DVP settlement
through the service. Since Subsection (c), as described above, would be
written to address the Deliveries and Receives of Securities,
generally, Securities transactions previously covered under Subsection
(d) would be covered under the proposed revisions to Subsection (c).
---------------------------------------------------------------------------

    \64\ Pursuant to Rule 1, the term ``Deliverer,'' as used with
respect to a Delivery of a Security, means the Person which Delivers
the Security. See Rule 1, supra note 5.
    \65\ Pursuant to Rule 1, the term ``Receiver,'' as used with
respect to a Delivery of a Security, means the Person which receives
the Security. Id.
---------------------------------------------------------------------------

    (iv) Subsection (e) of Section 1 describes the processing of CAD
Securities Transactions between DTC Participants. DTC proposes to amend
Subsection (e) of Section 1 to reflect the elimination of money
settlement relating to transactions conducted through the Canadian-Link
Service. In this regard, a sentence that describes the debiting and
crediting of Securities between Participants and references the term
``Intra-DTC CAD Securities Transaction'' would be revised to refer to
``intra-DTC Securities transaction'' instead, to reflect that movements
of Securities between Participants would continue to be permitted
through the Canadian-Link Service, even though the ability to settle a
Securities transaction in CAD would be eliminated. In addition, DTC
would change references to ``seller'' and ``purchaser'' of Securities
to ``Deliverer'' and ``Receiver,'' respectively, to harmonize the use
of terms with DTC's rules related to settlement of Securities
deliveries and receives generally. DTC would also revise Subsection (e)
so that it would be renumbered as Subsection (d) to reflect the
deletion of the current Subsection (d), described above.
    (v) DTC would delete Subsection (f) of Section 1 which states: ``A
Cross-Border CAD Funds Transaction between a Participant of the
Corporation and a participant of CDS is processed through the
facilities of CDS.'' In addition, DTC would delete Subsection (g) of
Section 1 which states: ``An Intra-DTC CAD Funds Transaction between a
Participant of the Corporation and another Participant of Corporation
is processed though Canadian settlement banks acting for the
Corporation and such Participants.'' Both subsections would be obsolete
because of the elimination of CAD processing through the Canadian-Link
Service.
    (vi) Subsection (h) of Section 1 would be amended to delete
explanations of certain definitions described above, including CAD
Funds, USD Funds, Funds, Cross-Border Securities Transactions,
Canadian-Link Securities Transactions, Canadian-Link Funds
Transactions, and Canadian-Link CAD Money Settlement. Also the
definitions of Intra-DTC Transactions, Cross-Border Securities, Cross-
Border Transactions and Intra-DTC Securities would be amended to
reflect the above-described elimination of money settlement in the
Canadian-Link Service so that transactions are not referred to as
involving DVP settlement or payment of funds. In this regard,
references to the terms ``Cross-Border USD Securities Transactions''
and ``Cross-Border CAD Securities Transactions'' as elements of the
definition of ``Cross-Border Transactions'' would be replaced with an
undefined term ``Cross-border securities transactions'' to reflect that
movements of Securities between Canadian-Link Participants and CDS

Participants would continue to be permitted through the Canadian-Link
Service, even though the ability to settle a Securities transaction
versus payment would be eliminated. Further, ``Intra-DTC CAD Securities
Transactions'' and ``Intra-DTC CAD Funds Transactions'' as elements of
the definition of ``Intra-DTC Transactions'' would be replaced with a
reference ``Intra-DTC securities transactions,'' for the same reason as
an identical change to current Subsection (e) of Section 1 (proposed to
be renumbered as Subsection (d)), as described above. Also, ``Cross-
Border CAD Securities Transactions'' and ``Cross-Border USD Securities
Transactions'' used as elements of the description of ``Cross-Border
Securities'' would be deleted and replaced with Cross-Border
Transactions. Also, ``Intra-DTC CAD Securities Transactions,'' used as
a descriptor relating to Securities underlying an element of the
definition of ``Intra-DTC Securities,'' would be replaced with ``Intra-
DTC Transactions,'' because (i) even though Intra-DTC CAD Securities
Transactions would no longer be provided for under Rule 30, intra-DTC
Securities transactions could still occur through the Canadian-Link
Service, as described above and (ii) such transactions would defined as
``Intra-DTC Transactions,'' as described above. In addition, Subsection
(h) would be renumbered as Subsection (e) to conform the numbering of
this section with the elimination and renumbering of other subsections
as described above. In this regard, the explanations of definitions in
subsection (h) are currently set forth in an itemized list numbered
from (1) to (15), with each item followed by a semicolon. As a result
of the proposed revisions described above, in addition to changes to
the text to reflect the substantive changes described above, item
numbers (3), (4), (5), (6) (7), (8) and (15) would be deleted and items
(9), (10), (11), (12), (13) and (14) would be renumbered respectively
as (3), (4), (5), (6), (7) and (8). A semicolon and the word ``and''
would be deleted from the end of current (14) (to be renumbered as (8))
and replaced with a period because the deletion of (15) would make the
newly renumbered (8) the last item of this list. The word ``and'' would
be added to the end of current (13) (to be renumbered as 7) directly
after an existing semicolon.
Section 2--CDS Documents
    Section 2 of Rule 30 provides, among other things, that ``[E]ach
Canadian-Link Participant shall observe and comply with the CDS
Documents applicable to the Canadian-Link Service as if such Canadian-
Link Participant were a CDS Participant and a direct party to the CDS
Documents. Each Canadian-Link Participant acknowledges that the CDS
Documents may include grants of security interests in and liens on
Cross-Border Securities and CAD Funds in which such Canadian-Link
Participant may have an interest. . . .''
    Pursuant to the proposed rule change, DTC proposes to change ``CAD
Funds'' in the preceding sentence to ``funds.'' As described herein,
the term ``CAD Funds'' would be eliminated pursuant to the proposed
rule change. However, CDS may continue to have a security interest in
funds owed to DTC for dividends and interest paid on Securities held by
DTC at CDS on behalf of Canadian-Link Participants.\66\
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    \66\ See Section 5.2.2 of CDS's rules, available at https://www.cds.ca/resource/en/311.
---------------------------------------------------------------------------

Section 4--Participants Eligible for Canadian-Link Service
    Section 4 of Rule 30 provides, among other things that ``A Security
that is an Eligible Security may or may not be a Canadian-Link Security
and may or may not be the subject of Cross-Border CAD Securities
Transactions, Cross-Border USD Securities Transactions and/or Intra-DTC
Securities Transactions. A Security that is not an Eligible Security
may be a Limited-Service Canadian-Link Security, but it may not be a
Full-Service Canadian-Link Security and may not be the subject of
Intra-DTC CAD Securities Transactions.'' Consistent with the proposed
changes described above, DTC proposes to amend this section to
eliminate references to CAD and USD-related transactions and refer to
transactions without reference to Canadian or U.S. currency. In this
regard, a reference to ``Intra-DTC CAD Securities Transactions'' would
be revised to ``Intra-DTC Transactions'' in a sentence describing to
the effect, among other things, that a Limited-Service Canadian-Link
Security cannot be included in an intra-DTC Securities transaction.
Section 5--Canadian-Link Interface and DTC Omnibus Account
    Section 5(a) of Rule 10 includes a description of ledgers and
accounts that CDS maintains for DTC at CDS that relate to Securities
and funds. The funds accounts are denominated in Canadian dollars and
US dollars. While the DVP function of the Canadian-Link Service would
be discontinued pursuant to the proposed rule change, DTC would
continue to receive dividends and interest on Securities held by it at
CDS and DTC may owe fees for services to CDS. As a result, DTC would
continue to maintain funds accounts for these purposes. While the terms
``CAD Funds'' and ``USD Funds'' would be removed from Rule 30 as
described herein, DTC proposes to replace these terms as used in
Section 5(a) of Rule 30 with ``Canadian Dollar funds'' and ``US dollar
funds,'' respectively.
    Section 5(b) provides that DTC will make the DTC Omnibus Account
available for the purpose of processing Cross-Border Transactions
between Canadian-Link Participants and CDS Participants. This section
states that DTC will act on behalf of Canadian-Link Participants and in
accordance with their instructions, but DTC maintains, at all times,
control over the Cross-Border Securities and Funds in the DTC Omnibus
Account. As described herein, DTC would remove the defined term for
``Funds''. However, as described above, DTC would continue to receive
funds into its account at CDS in the form of dividends and interest.
Therefore, DTC would replace ``Funds'' as used in Section 5(b) with
``funds.''
Section 6--Canadian-Link Required Participants Fund Deposit
    Section 6 of Rule 30 provides that a Participant must make a
deposit that is deemed to be included in the Participants Fund with
respect to DVP volume conducted by the Participant through the
Canadian-Link Service. The section also provides for the investment of
such deposits by DTC and the payment of interest for those investments
to the applicable Participants. The Participants Fund provides
liquidity for DTC to complete settlement in the event a Participant
fails to meet its settlement obligation. Section 6 would be deleted in
its entirety pursuant to the proposed rule change, because Participants
would no longer have a settlement obligation in the Canadian-Link
Service due to the elimination of money settlement for Securities
transactions conducted through the service. In this regard, DTC would
no longer have a settlement obligation with respect to CDS. As a
result, there would no longer be a need to maintain such deposits with
respect to Canadian-Link activity.
Section 7--Security for Canadian-Link Transactions
    Section 7 of Rule 30 provides DTC with a security interest in
Securities settled DVP through the Canadian-Link Service and allows DTC
to use such Securities to secure loans for purposes of completing
settlement in the event a Participant fails to satisfy its settlement
obligation. This Section would be

deleted in its entirety pursuant to the proposal, because since
Participants would no longer be able to incur a settlement obligation
with respect to activity within the Canadian-Link Service, it would no
longer necessary for DTC to maintain a security interest in Securities
that are the subject of Canadian-Link Transactions.
Section 8--Canadian-Link Net Debit Caps of Canadian-Link Participants
    Section 8 of Rule 30 provides for a limit to be established by DTC
(i) on the negative CAD Funds balance that may, from time to time, be
incurred by a Canadian-Link Participant in respect of Canadian-Link
Transactions processed for such Participant through the Canadian-Link
Service in CAD Funds (each a ``Canadian-Link CAD Net Debit Cap'') and
(ii) on the negative USD Funds balance that may, from time to time, be
incurred by a Canadian-Link Participant in respect to Canadian-Link
Transactions processed for such Participant through the Canadian-Link
Service in USD Funds (each, a ``Canadian-Link USD Net Debit Cap''). The
Canadian-Link CAD Net Debit Cap and Canadian-Link USD Net Debit Cap are
referred to, individually or collectively as the context may require,
as the ``Canadian-Link Net Debit Cap.'' This Section subjects all
transactions processed though the Canadian-Link Service to be subject
to the Canadian-Link Net Debit Cap. The section further provides that
DTC shall not comply with any instruction from a Canadian-Link
Participant in respect of any Canadian-Link Transaction that would
cause DTC to exceed its DTC Omnibus Account Net Debit Cap or cause such
Canadian-Link Participant to exceed its Canadian-Link Net Debit Cap but
rather shall pend such Canadian-Link Transaction (subject to the Rules)
until such Canadian-Link Transaction may be processed without causing
DTC to exceed its DTC Omnibus Account Net Debit Cap or causing such
Canadian-Link Participant to exceed its Canadian-Link Net Debit Cap.
    Pursuant to the proposed rule change, DTC would delete Section 8 of
Rule 30 in its entirety. The maintenance of a Canadian-Link Net Debit
Cap would no longer be necessary as this limit applies to DVP
transactions, and DVP transactions would no longer be processed through
the Canadian-Link Service.
Section 9--Collateral Monitor of Canadian-Link Participants
    In addition to the Net Debit Cap,\67\ another tool DTC uses in
managing credit risk is the Collateral Monitor.\68\ These two controls
work together to protect the DTC settlement system in the event of
Participant default. The Collateral Monitor requires net debit
settlement obligations, as they accrue intraday, to be fully
collateralized. Meanwhile, the Net Debit Cap limits the amount of any
Participant's net debit settlement obligation to the amount that can be
satisfied with DTC liquidity resources. Section 9 of Rule 30 provides
for activity conducted by a Participant through the Canadian-Link
Service to be included in the Participant's Collateral Monitor. For the
same reason as described above with respect to the elimination of
Section 8, DTC would delete Section 9 in its entirety, because the
elimination of DVP activity would eliminate any credit risk associated
with transactions conducted through the Canadian-Link Service, and
therefore DTC would no longer require the inclusion of Canadian-Link
activity in the Collateral Monitor in managing its credit risk.
---------------------------------------------------------------------------

    \67\ Id.
    \68\ Id.
---------------------------------------------------------------------------

Section 10--Processing Canadian-Link Transactions
    Section 10 of Rule 30 provides for the process by which Securities
and funds are credited and debited to and from Canadian-Link
Participants' accounts for activity instructed by Participants to be
processed through the Canadian-Link Service. As described above, DTC
would continue to process transfers of Securities through the Canadian-
Link Service, but it would no longer process DVP and/or CAD Funds
activity for transactions conducted through the service. Therefore,
pursuant to the proposed rule change, DTC would amend Section 10 to
reflect the elimination of processing of funds debits and credits as
part of the processing of Canadian-Link Transactions. In this regard,
DTC would also revise references in the text of this section to (a)
``Canadian-Link Securities Transaction'' to ``Canadian-Link
Transaction,'' (b) ``Intra-DTC CAD Securities Transaction'' to ``Intra-
DTC Transaction,'' and (c) ``Cross-Border Securities Transaction'' to
``Cross-Border Transaction,'' because the currently used terms would be
deleted from Rule 30, as described above, and the elimination of the
processing of funds debits and credits, as described above, would
eliminate the need for the use of defined terms relating to
transactions processed through the Canadian-Link that distinguish
between Securities transactions from funds transactions. Further
subsections (C) and (D) of Section 10(a)(1) and Item (iii) of Sections
10(a)(2)(A) and 10(a)(2)(B) would be deleted from Rule 30. Finally,
this section would also be renumbered as Section 6 due to the deletion
of the original Sections 6, 7, 8 and 9, as described above.
Section 11--CDS Business Days
    Pursuant to the proposed rule change, Section 11 would be
renumbered as Section 7.
Section 12--Settlement Recaps
    Section 12 provides the process for the issuance of Settlement
Recaps by DTC. Because the money settlement aspect of the Canadian-Link
Service would be eliminated, there would no longer be a need for DTC to
issue Settlement Recaps with respect to CAD activity. Therefore, DTC
would eliminate Section 12 in its entirety because Settlement Recaps
would no longer be issued by DTC, and this Section would become
obsolete.
Section 13--Settlement Payments
    Section 13 provides for the processing of settlement payments
relating to DVP activity through the Canadian-Link Service. As
described above, money settlement would be eliminated pursuant to the
proposed rule change. Therefore, DTC would no longer provide for money
settlement relating to transactions processed through the Canadian-
Link. In this regard, DTC proposes to eliminate Section 13 in its
entirety as it would become obsolete.
Section 14--End of Day Sweep
    Section 14 provides for the timing of the movement of Securities
between accounts used for the Canadian-Link Service. This section
provides that such movements occur at the end of each CDS Business Day
after the completion of money settlement. DTC would delete the
provision requiring for the completion of money settlement prior to the
``sweeping'' of Securities in this regard as DTC would no longer be
conducting money settlement for the Canadian-Link Service. Also, DTC
would renumber this section as Section 8 to reflect the renumbering and
deletion of previous sections as described above.

Section 15--Failure To Make Settlement Payments
    Section 15 provides the process to be followed if a Participant
fails to make payment with regards to Canadian-Link activity. As
described above, DTC proposes to eliminate money settlement with
respect to Canadian-Link activity. In this regard, DTC would delete
Section 15 in its entirety as it would become obsolete due to the
elimination of settlement payments through this service.
Section 16--Currency Conversion and Exchange
    Section 16 provides the process for the conversion of USD Funds to
CAD Funds as necessary for a Participant to complete settlement or
satisfy its risk controls relating to the Canadian-Link Service. Since
money settlement would no longer occur through this service, such
conversions of currency would no longer occur, and this section would
become obsolete. Therefore, pursuant to the proposed rule change, DTC
would delete Section 16 in its entirety.
Section 17--Choice of Law and Submission to Jurisdiction
    To conform the numbering of sections to reflect the deletion and
renumbering of previous sections as described above, Section 17 would
be renumbered as Section 9.
Section 18--Canadian Link Charges
    Section 18 provides that Participants must pay to DTC any fees and
charges relating to their use of the Canadian-Link Service. These
charges include charges relating to the cost to DTC for maintaining
liquidity resources to settle Canadian-Link Transactions. As mentioned
above, money settlement under this service would be eliminated and
therefore it would no longer necessary for DTC to maintain such
liquidity resources with respect to activity processed through the
Canadian-Link Service. Therefore, text referring to charges relating to
the cost of maintaining liquidity resources with respect to the
Canadian-Link Service would be obsolete and would be deleted. As a
result of these proposed changes, to conform the numbering of the
subsections to reflect the deletion of subsection (ii), the subsections
following would be renumbered, (ii), (iii), (iv) and (v). Also, to
conform the numbering of sections to reflect the deletion and
renumbering of previous sections as described above, Section 18 would
be renumbered as Section 10.
Elimination of the Canadian-Link Service Guide
    DTC proposes to eliminate the full text of the Guide. The Guide
relates to Procedures necessary for the DVP settlement of Canadian-Link
Transactions. These Procedures cover all operational aspects of the
service as it relates to DVP activity, including DVP transaction
processing, risk controls and tracking established to control for
failed DVP transactions in the processing of end-of-day sweeps. Due to
the elimination of money settlement through the Canadian-Link Service,
this Guide would become obsolete.
Proposed Changes to the OA
    The OA sets forth requirements that a Security must meet to become
and remain eligible for DTC services and provides for the orderly
processing of such Securities and timely payments to Participants.
Proposed Changes to Text of the OA Relating to Eligibility
Requirements/Non-U.S. Denominated Securities
    Section I.C.5. of the OA contains provisions relating to the
eligibility of Securities denominated in a non-U.S. currencies and
processing of distribution payments in non-U.S. currencies. This
section currently contains references to CAD settlement through the
Canadian-Link Service. To reflect the proposed elimination of money
settlement in the Canadian-Link Service, DTC proposes to amend this
section to remove references to the availability of Canadian dollar
settlement. Since, as described above, DTC would continue to process
distributions in CAD, this section would continue to provide for such
distributions in CAD. The proposed rule change would make a grammatical
change that does not affect the substance of the section.
Proposed Changes to Dividend and Income Payment Notification Procedures
    Section IV of the OA sets forth Dividend and Income Payment
Notification Procedures. Subsection B of this section describes
currency provisions relating to dividend and income payments, and
specifically refers to such payments made in CAD. The text includes
mentions of CAD settlement performed through the Canadian-Link Service.
It also refers to the service generally as ``Canadian dollar
settlement.'' In order to reflect the proposed elimination of CAD
settlement through the Canadian-Link Service, DTC would (i) revise this
section to delete provisions referring to or describing CAD settlement
and (ii) modify a statement relating to Securities eligible to receive
payments in CAD from referencing Securities eligible for Canadian
dollar settlement to Securities eligible for the Canadian-Link Service.
    Also, the proposed rule change in this regard would cause a defined
term for CDS to be deleted as it falls within a paragraph that
describes CAD settlement. The proposed rule change moves the defining
term for CDS to a sentence that would not be eliminated by the
proposal.
Effective Date
    The proposed rule change would become effective upon filing with
the Commission.
2. Statutory Basis
    Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be designed to promote the prompt and accurate clearance and settlement
of Securities transactions.\69\ DTC believes that the proposed rule
change is consistent with this provision because it would provide
enhanced clarity and transparency for participants with respect to
services offered by DTC by updating the Rules to remove the ability to
access services that Canadian-Link Participants have not recently
utilized and are unlikely to utilize in the future.
---------------------------------------------------------------------------

    \69\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Therefore, by providing enhanced clarity and transparency in the
Rules regarding the services provided by DTC, DTC believes the proposed
rule change would promote the prompt and accurate clearance and
settlement of Securities transactions, consistent with the requirements
of the Act, in particular Section 17A(b)(3)(F), cited above.

(B) Clearing Agency's Statement on Burden on Competition

    DTC does not believe that the proposed rule change would have any
impact on competition. Participants have not used the Canadian-Link
Service for DVP Securities and/or CAD Funds transactions in several
years. Also, based on discussions DTC has had with Participants
regarding their use of the Canadian-Link Service, DTC believes
Participants are unlikely to use the service for this purpose in the
future. Therefore, DTC believes that the proposed rule change should
have no effect on Participants, other than to remove references to the
ability for Participants to conduct DVP transactions through the
Canadian-Link Service from the Rules and Procedures, which transactions
are unlikely to be conducted by Participants.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others

    DTC has not received or solicited any written comments relating to
this proposal. 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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \70\ of the Act and paragraph (f) \71\ of Rule 19b-4
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.
---------------------------------------------------------------------------

    \70\ 15 U.S.C. 78s(b)(3)(A).
    \71\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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_ADDRESS>Please include
File Number SR-DTC-2021-012 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-2021-012. 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 website (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 website 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 website
(http://dtcc.com/legal/sec-rule-filings.aspx). All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-DTC-2021-012 and should be submitted on
or before August 10, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\72\
---------------------------------------------------------------------------

    \72\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-15345 Filed 7-19-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 202 (Friday, October 20, 2017)]
[Notices]
[Pages 48827-48828]
[FR Doc No: 2017-22768]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2015-N-1349]

Extension of the Timetable Requirement To Submit Study Data in
Logical Observation Identifiers Names and Codes

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Food and Drug Administration (FDA or the Agency) is
announcing the extension of the deadline to provide Logical Observation
Identifiers Names and Codes (LOINC)

for clinical laboratory test results in investigational study data
provided in regulatory submissions submitted to the Center for Drug
Evaluation and Research and to the Center for Biologics Evaluation and
Research. FDA has determined, in response to industry comments and
internal review, that it is appropriate to extend the date required to
submit LOINC codes in new drug applications (NDAs), abbreviated new
drug applications (ANDAs), and biologics license applications (BLAs),
and for certain investigational new drugs (INDs). LOINC codes will be
required in NDAs, ANDAs, and BLAs for studies that start after March
15, 2020 (March 15, 2021, for certain INDs).

ADDRESSES: You may submit either electronic or written comments at any
time as follows:

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments.
Comments submitted electronically, including attachments, to https://www.regulations.gov will be posted to the docket unchanged. Because
your comment will be made public, you are solely responsible for
ensuring that your comment does not include any confidential
information that you or a third party may not wish to be posted, such
as medical information, your or anyone else's Social Security number,
or confidential business information, such as a manufacturing process.
Please note that if you include your name, contact information, or
other information that identifies you in the body of your comments,
that information will be posted on https://www.regulations.gov.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand delivery/Courier (for written/paper
submissions): Dockets Management Staff (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Dockets
Management Staff, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-2015-N-1349 for ``Extension of the Timetable Requirement to Submit
Study Data in Logical Observation Identifiers Names and Codes.''
Received comments will be placed in the docket and, except for those
submitted as ``Confidential Submissions,'' publicly viewable at https://www.regulations.gov or at the Dockets Management Staff between 9 a.m.
and 4 p.m., Monday through Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on https://www.regulations.gov.
Submit both copies to the Dockets Management Staff. If you do not wish
your name and contact information to be made publicly available, you
can provide this information on the cover sheet and not in the body of
your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-23389.pdf.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to https://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: Ron Fitzmartin, Center for Drug
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 51, Rm. 1115, Silver Spring, MD 20993-0002, 301-
796-5333<EMAIL_ADDRESS>or Stephen Ripley, Center for
Biologics Evaluation and Research, Food and Drug Administration, 10903
New Hampshire Ave., Bldg. 71, Rm. 7268, Silver Spring, MD 20993-0002,
240-402-7911<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: On May 14, 2015, FDA announced in the
Federal Register (80 FR 27690) its adoption of LOINC for lab test
results. FDA supports LOINC-coded laboratory test results because: (1)
LOINC is widely used among clinical laboratories; (2) LOINC-coded lab
data make the information easier to understand and analyze; and (3) the
currently supported exchange standard for laboratory test results in
clinical trials, the Study Data Tabulation Model (available at http://www.cdisc.org/sdtm), already supports the exchange of LOINC codes
(available at https://loinc.org/). FDA's decision to adopt LOINC for
lab test results is part of a larger FDA effort to align the use of
data standards for clinical research with ongoing nationwide health
information technology initiatives. The FDA Data Standards Catalog was
updated to indicate FDA support for LOINC and a requirement date of
March 15, 2018, for NDAs, ANDAs, and BLAs, and March 15, 2019, for
certain INDs (see https://www.fda.gov/forindustry/datastandards/studydatastandards/default.htm). FDA has determined, in response to
industry comments and internal review, that it is appropriate to extend
the date required to submit LOINC codes. LOINC codes will be required
in NDAs, ANDAs, and BLAs for studies that start after March 15, 2020
(March 15, 2021, for certain INDs). Although use of LOINC codes are not
required at this time, FDA continues to support and encourages the use
of LOINC codes for clinical laboratory test results used in
investigational study data.

    Dated: October 16, 2017.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2017-22768 Filed 10-19-17; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register Volume 87, Number 151 (Monday, August 8, 2022)]
[Notices]
[Pages 48219-48220]
[FR Doc No: 2022-16964]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No.: FAA-2021-1028; Summary Notice No. 2022-34]

Petition for Exemption; Summary of Petition Received; Helicopter
Association International

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Federal Aviation Regulations. The
purpose of this notice is to improve the public's awareness of, and
participation in, the FAA's exemption process. Neither publication of
this notice nor the inclusion nor omission of information in the
summary is intended to affect the legal status of the petition or its
final disposition.

DATES: Comments on this petition must identify the petition docket
number and must be received on or before August 29, 2022.

ADDRESSES: Send comments identified by docket number FAA-2021-1028
using any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation, 1200 New Jersey Avenue SE, Room W12-140,
West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments
from the public to better inform its rulemaking process. DOT posts
these comments, without edit, including any personal information the
commenter provides, to https://www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
https://www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at
https://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE,
Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Alphonso Pendergrass,<PHONE_NUMBER>,
Office of Rulemaking, Federal Aviation Administration, 800 Independence
Avenue SW, Washington, DC 20591.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC.
Timothy R. Adams,
Deputy Executive Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2021-1028.
    Petitioner: Helicopter Association International.
    Section(s) of 14 CFR Affected: Sec. Sec.  91.205(h)(7), 91.9(a),
135.160, and 135.179(a).
    Description of Relief Sought: Helicopter Association International
(HAI), currently holds Exemption No. 18973 for relief from Sec. Sec.
91.205(h)(7) and 91.9(a) to allow 14 CFR part 135 Helicopter Air
Ambulance operations, including operations with night vision googles
(NVG) and night landings and takeoffs from unimproved or off-airport
sites, with inoperative or unreliable radar (radio) altimeters due to
5G C-band interference. HAI, on behalf of its membership of Parts 91
and 135 Operators, seeks an amendment of Exemption No. 18973 for relief
from Sec. Sec.  91.205(h)(7), 91.9(a), 135.160, and 135.179(a), to
expand relief to operations to be conducted under 14 CFR parts 91 and
135, including operations with NVGs and night

landings and takeoffs from unimproved or off-airport sites, with
inoperative or unreliable radio altimeters.

[FR Doc. 2022-16964 Filed 8-5-22; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 30 (Wednesday, February 13, 2013)]
[Notices]
[Pages 10164-10165]
[FR Doc No: 2013-03301]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER12-1643-001.
    Applicants: ISO New England Inc.
    Description: ISO New England Inc. submits Order No. 755 Regulation
Mkt. Compliance Changes to be effective 12/31/9998.
    Filed Date: 2/6/13.
    Accession Number: 20130206-5047.
    Comments Due: 5 p.m. e.t. 2/27/13.

    Docket Numbers: ER12-2277-003.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: Midwest Independent Transmission System Operator, Inc.
submits 2013-02-05 SA 2457 G631-2-3 Term to be effective 4/6/2013.
    Filed Date: 2/5/13.
    Accession Number: 20130205-5158.
    Comments Due: 5 p.m. e.t. 2/26/13.

    Docket Numbers: ER13-886-000.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: Midwest Independent Transmission System Operator, Inc.

submits tariff filing per 35.13(a)(2)(iii: 02-05-2013 SA 2456
Termination Emmet Cty Energy-ITC to be effective 4/6/2013.
    Filed Date: 2/5/13.
    Accession Number: 20130205-5156.
    Comments Due: 5 p.m. e.t. 2/26/13.

    Docket Numbers: ER13-887-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Request for Limited Waiver of PJM Interconnection,
L.L.C.
    Filed Date: 2/6/13.
    Accession Number: 20130206-5015.
    Comments Due: 5 p.m. e.t. 2/27/13.

    Docket Numbers: ER13-888-000.
    Applicants: Niagara Mohawk Power Corporation, New York Independent
System Operator, Inc.
    Description: Niagara Mohawk Power Corporation submits tariff filing
per 35.13(a)(2)(iii: NYISO filing of Agreement No. 1953 between
National Grid and Erie Blvd. Hydropowr to be effective 11/9/2012.
    Filed Date: 2/6/13.
    Accession Number: 20130206-5040.
    Comments Due: 5 p.m. e.t. 2/27/13.

    Docket Numbers: ER13-889-000.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: Midwest Independent Transmission System Operator, Inc.
submits tariff filing per 35.13(a)(2)(iii: 02-05-2013 SA 2509 ITC-
Tuscola Wind E&P to be effective 2/7/2013.
    Filed Date: 2/6/13.
    Accession Number: 20130206-5044.
    Comments Due: 5 p.m. e.t. 2/27/13.

    Docket Numbers: ER13-890-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: PJM Interconnection, L.L.C. submits Notice of
Cancellation of Original Service Agreement No. 3259 to be effective 1/
4/2013.
    Filed Date: 2/6/13.
    Accession Number: 20130206-5049.
    Comments Due: 5 p.m. e.t. 2/27/13.

    Docket Numbers: ER13-891-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: PJM Interconnection, L.L.C. submits tariff filing per
35.13(a)(2)(iii: Non-Queue 69 Safe Harbor ISA--Original Service
Agreement No. 3504 to be effective 1/7/2013.
    Filed Date: 2/6/13.
    Accession Number: 20130206-5050.
    Comments Due: 5 p.m. e.t. 2/27/13.

    Docket Numbers: ER13-892-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: PJM Interconnection, L.L.C. submits Notice of
Cancellation of Original SA No. 2711 in Dkt No. ER11-2707-000 to be
effective 1/10/2013.
    Filed Date: 2/6/13.
    Accession Number: 20130206-5055.
    Comments Due: 5 p.m. e.t. 2/27/13.

    Docket Numbers: ER13-893-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: PJM Interconnection, L.L.C. submits Notice of
Cancellation of Original SA No. 3149 -Docket No. ER12-518-000 to be
effective 1/10/2013.
    Filed Date: 2/6/13.
    Accession Number: 20130206-5056.
    Comments Due: 5 p.m. e.t 2/27/13.

    Take notice that the Commission received the following electric
securities filings:

    Docket Numbers: ES13-17-000.
    Applicants: Northern Maine Independent System Administrator, Inc.
    Description: Application of Northern Maine Independent System
Administrator, Inc. for Authorization to Issue Securities Pursuant to
Section 204 of the Federal Power Act.
    Filed Date: 2/5/13.
    Accession Number: 20130205-5178.
    Comments Due: 5 p.m. e.t. 2/26/13.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: February 6, 2013.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013-03301 Filed 2-12-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: July 16, 2008 (Volume 73, Number 137)]
[Notices]
[Page 40890-40891]
[DOCID:fr16jy08-107]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58124; File No. SR-FINRA-2008-031]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed Rule Change to Amend the
Arbitration Uniform Submission Agreement and Related Rules

July 9, 2008.
    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
Financial Industry Regulatory Authority, Inc. (``FINRA'') (f/k/a
National Association of Securities Dealers, Inc. (``NASD'')) filed with
the Securities and Exchange Commission (``Commission'') on June 19,
2008, the proposed rule change as described in Items I, II, and III
below, which Items have been substantially prepared by FINRA Dispute
Resolution. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    FINRA Dispute Resolution is proposing to amend the Uniform
Submission Agreement (``USA''), which parties must sign prior to
entering into arbitration, and certain rules of the Code of Arbitration
Procedure for Customer Disputes (``Customer Code'') and the Code of
Arbitration Procedure for Industry Disputes (``Industry Code'') that
contain references to the agreement. The proposed revisions to the USA
would: (1) Clarify what the parties are attesting to when they execute
the USA; (2) require parties to indicate in what capacity they are
signing the agreement; (3) convert the USA to a FINRA-specific
agreement; and (4) use plain English to make the agreement easier to
read.
    The text of the proposed rule change is available at FINRA, the
Commission's Public Reference Room, and http://www.finra.org/web/
groups/rules_regs/documents/rule_filing/p038800.pdf. The text of the
proposed Submission Agreement is available at FINRA, the Commission's
Public Reference Room, and http://www.finra.org/web/groups/rules_regs/
documents/rule_filing/p038817.pdf.

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

    In its filing with the Commission, FINRA 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. FINRA has prepared summaries, set forth in Sections (A),
(B), and (C) below, of the most significant aspects of such statements.

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

(a) Purpose
    The USA is an agreement that claimants and respondents
(hereinafter, collectively referred to as ``parties'') must sign prior
to entering into arbitration. Rule 12302(a) of the Customer Code and
Rule 13302(a) of the Industry Code require a claimant to file a signed
and dated USA and a statement of claim to initiate an arbitration.
Similarly, Rule 12303(a) of the Customer Code and Rule 13303(a) of the
Industry Code require a respondent to directly serve each other party
with a signed and dated USA and an answer within 45 days of receipt of
the statement of claim. By signing the USA, the parties agree to submit
to the arbitration process, and to be bound by the determination that
may be rendered by the arbitrator(s).
    FINRA proposes to amend the USA to: (1) Clarify what the parties
are attesting to when they execute the agreement; (2) require parties
to indicate in what capacity they are signing the agreement; (3)
convert it to a FINRA-specific agreement; and (4) use plain English to
make the agreement easier to read. FINRA also proposes to amend the
rules of the Customer Code and the Industry Code that refer to the USA.
    First, FINRA proposes to amend paragraph 2 of the USA to clarify
what the parties are attesting to when they execute the agreement.
Currently, this section states that the parties have read the
procedures and rules relating to arbitration. FINRA understands that
few investors who are represented by counsel actually read the relevant
self-regulatory organization (SRO) rules (such as the Customer Code).
Rather, in most cases, these investors are relying on their attorneys
or other representatives to know the rules. Thus, some investors have
been reluctant to sign a statement that they have read all the relevant
rules. In light of these concerns, FINRA is proposing to amend
paragraph 2 to permit parties to certify that they or their
representatives read the relevant procedures and rules and that the
parties agree to be bound by them. FINRA believes that the provision as
proposed to be amended would reflect more accurately what the parties
are attesting to when they execute the USA. The new language would make
clear that the parties themselves are bound by the procedures and
rules, whether or not they read them personally.
    Second, FINRA proposes to require that parties indicate in what
capacity they are signing the agreement. Because the USA is a contract
between the parties and FINRA's dispute resolution forum, FINRA must
ensure that the parties entering the agreement have the authority or
standing to sign the agreement. In those cases in which the signatory
is not an individually named party, the signatory must state the
capacity in which he or she is acting if other than an individual and
sign in that capacity, so that FINRA can determine from the statement
of claim and other supporting information whether he or she is
authorized to enter the agreement. For example, a person signing as the
trustee of a family trust would sign his or her name exactly as shown
on the trust documents and then write ``Trustee'' on the line below the
instruction ``State Capacity if other than individual (example:
Executor, Trustee, Corporate Officer).'' This change would simply
formalize an existing practice. Currently, if a party fails to sign the
USA in the capacity in which he or she is submitting the claim, FINRA
classifies the claim as deficient, which can delay the arbitration and
increase the party's costs. FINRA believes that the proposed change
would clarify how the agreement must be signed, and should help
expedite the processing of claims, thereby minimizing unnecessary
delays and expenses that parties could incur.
    Third, FINRA proposes to convert the USA into a FINRA-specific
agreement.

The USA was designed by the Securities Industry Conference on
Arbitration (SICA) \3\ a number of years ago and was intended to be
used by the ten SROs that offered an arbitration forum at that time.
Thus, the language is generic and references to rules or procedures
include broad terms to encompass the rules from the various SROs. Over
the years, most SROs have closed their arbitration forums and
contracted with FINRA to handle their arbitrations. In addition, on
August 6, 2007, FINRA consolidated its dispute resolution program with
that of the New York Stock Exchange, Inc.\4\ As a result, FINRA now
handles over 99 percent of all arbitrations filed with SROs. In light
of these changes, FINRA proposes to convert the USA to a FINRA-specific
agreement by removing references to ``sponsoring organization'' and
replacing them with references to FINRA; expressly referencing the
FINRA Code of Arbitration Procedure;\5\ and removing the term
``Uniform'' from the title of the agreement. FINRA believes these
changes would minimize confusion for parties concerning the
applicability of the form and would clarify which FINRA rules apply in
the arbitration context.
---------------------------------------------------------------------------

    \3\ SICA was formed in 1977 to develop and maintain a Uniform
Code of Arbitration and to provide a forum for the discussion of new
developments in securities arbitration among SRO arbitration forums
and participants in those forums. The membership currently includes
representatives of each securities SRO that currently runs an
arbitration forum, three ``public'' members, and representatives
from the Securities Industry and Financial Markets Association
(SIFMA) and the North American Securities Administrators Association
(NASAA).
    \4\ See Securities Exchange Act Release No. 56145 (July 26,
2007), 72 FR 42169 (August 1, 2007) (SR-NASD-2007-023) (approval
order).
    \5\ The Submission Agreement's use of the term ``FINRA Code of
Arbitration Procedure'' means the Customer Code or the Industry
Code, as applicable.
---------------------------------------------------------------------------

    Fourth, FINRA proposes to make minor stylistic changes to the
document, such as defining ``undersigned parties'' as ``parties'' after
the first usage, moving the reference to cross-claims and dividing a
long sentence in paragraph 4 into two sentences.\6\ FINRA believes
these changes will make the agreement easier to read.
---------------------------------------------------------------------------

    \6\ In the proposed definition of ``Submission Agreement''
(proposed NASD Rules 12100 (x) and 13100 (z)), FINRA is not
proposing to replace references to ``NASD Submission Agreement''
with ``FINRA Submission Agreement'' at this time, because those
changes have been proposed as part of a separate rule filing
(FINRA's Proposed Rule Change to Adopt NASD Rules 4000 Through 1000
Series and the 12000 Through 14000 Series as FINRA Rules in the New
Consolidated FINRA Rulebook (SR-FINRA-2008-021) (See Exhibit 5 at
pp. 530 and 550-551).
---------------------------------------------------------------------------

    Finally, FINRA proposes to amend Rules 12100(x), 12100(y),
12302(a)(1), (b), and (d), 12303(a) and (c), 12306(a) and (c), and
12307(a) of the Customer Code to conform the references to the USA to
the proposed changes to the agreement. FINRA proposes to amend Rules
13100(z)--(bb), 13302(a)(1), (b), and (d), 13303(a) and (c), 13306(a)
and (c), and 13307(a) of the Industry Code for the same reason.
    (b) Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\7\ which requires, among
other things, that the Association's rules must be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, and, in general, to protect investors
and the public interest. FINRA believes that the proposed rule change
would enhance the efficiency of the forum in processing claims, by
clarifying the terms of the agreement and improving its readability.
Moreover, the proposed rule change is consistent with FINRA's statutory
obligations under the Act to prevent fraudulent and manipulative
practices by requiring that signers of the agreement indicate in what
capacity they are signing, so that FINRA can ensure that signers of the
agreement are authorized to do so.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

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

    FINRA does not believe that the proposed rule change would result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.

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

    Written comments were neither solicited nor received by FINRA.

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date 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 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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2008-031 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-FINRA-2008-031. 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 inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. 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 the File
Number SR-FINRA-2008-031 and should be submitted on or before August 6,
2008.
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Florence Harmon,
Acting Secretary.
[FR Doc. E8-16228 Filed 7-15-08; 8:45 am]

BILLING CODE 8010-01-P