Federal Register/Vol. 86, No. 10/Friday, January 15, 2021/Notices

Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Notices 4151 public in accordance with the SECURITIES AND EXCHANGE spacing of text that are unrelated to the provisions of 5 U.S.C. 552, will be COMMISSION E–CD program. available for website viewing and A. Background printing in the Commission’s Public [Release No. 34–90895; File No. SR–DTC– Reference Room, 100 F Street NE, 2020–017] DTC is the central securities Washington, DC 20549 on official depository (‘‘CSD’’) for substantially all business days between the hours of Self-Regulatory Organizations; The corporate and municipal debt and 10:00 a.m. and 3:00 p.m. Copies of the Depository Trust Company; Order equity securities available for trading in filing also will be available for Approving a Proposed Rule Change To the United States. As a covered clearing inspection and copying at the principal Allow for the Deposit of Electronic agency that provides CSD services,5 office of the Exchange. All comments Certificates of Deposit and Technical DTC provides a central location in received will be posted without change; Changes which securities may be immobilized, the Commission does not edit personal and interests in those securities are January 11, 2021. reflected in accounts maintained for identifying information from DTC’s Participants, which are financial submissions. You should submit only I. Introduction institutions such as brokers or banks. information that you wish to make On November 20, 2020, The available publicly. All submissions As part of its CSD services, DTC (i) Depository Trust Company (‘‘DTC’’) should refer to File Number SR– makes eligible for deposit, processes, filed with the Securities and Exchange and holds physical CDs issued by CboeEDGA–2020–032 and should be Commission (‘‘Commission’’), pursuant various U.S. banks and deposited by submitted on or before February 5, 2021. to Section 19(b)(1) of the Securities Participants, and (ii) credits interests in For the Commission, by the Division of Exchange Act of 1934 (‘‘Act’’) 1 and Rule those CDs to Participants’ Securities Trading and Markets, pursuant to delegated 19b–4 thereunder,2 proposed rule Accounts.6 DTC states that the use of authority.15 change SR–DTC–2020–017. The physical CDs presents operational J. Matthew DeLesDernier, proposed rule change was published for concerns to Participants and to DTC.7 Assistant Secretary. comment in the Federal Register on To address these operational concerns, December 4, 2020.3 The Commission [FR Doc. 2021–00820 Filed 1–14–21; 8:45 am] DTC has developed a system that will did not receive any comment letters on eliminate the need for physical BILLING CODE 8011–01–P the proposed rule change. For the certificates for certain issue types of CDs reasons discussed below, the by allowing them to be issued and held Commission is approving the proposed SECURITIES AND EXCHANGE in electronic form, as described below. rule change. COMMISSION Upon implementation, the proposed II. Description of the Proposed Rule rule change will address operational Sunshine Act Meetings Change concerns of Participants relating to the amount of time and manual effort 4 FEDERAL REGISTER CITATION OF PREVIOUS The proposed rule change will currently required for the issuance and ANNOUNCEMENT: 86 FR 1557, January 8, amend the OA and Underwriting redemption of physical CDs by allowing 2021. Service Guide to implement a new for a fully electronic process for the application and secured electronic vault execution and delivery of the affected PREVIOUSLY ANNOUNCED TIME AND DATE OF (‘‘E-vault’’) for requests for eligibility, CDs. As such, DTC states that the THE MEETING: Wednesday, January 13, execution, delivery, and storage of proposed rule change would also reduce 2021 at 2:00 p.m. certificates of deposit (‘‘CDs’’) that are the need for DTC to (i) perform manual issued by state and federal chartered processing relating to CD deposits and CHANGES IN THE MEETING: The Closed banks. Issuers and underwriters that (ii) reserve space in its secure, physical Meeting scheduled for Wednesday, choose not to use this new electronic CD vault, which is currently used for CDs, January 13, 2021 at 2:00 p.m. has been program may continue to use the by allowing for the storage of CDs in changed to Wednesday, January 13, existing process, including making electronic form in a secure E-vault.8 2021 at 2:30 p.m. In addition, the Deposits using physical certificates. following matter will also be Through the proposal, DTC will also 5 A covered clearing agency is defined as a considered: make technical changes in its registered clearing agency that provides the services • Other matters relating to procedures to spelling, punctuation and of a central counterparty (‘‘CCP’’) or CSD. See 17 CFR 240.17Ad–22(a)(5). CSD services means examination matters and enforcement services of a clearing agency that is a securities proceedings. 1 15 U.S.C. 78s(b)(1). depository as described in Section 3(a)(23)(A) of the 2 17 CFR 240.19b–4. Exchange Act. See 17 CFR 240.17Ad–22(a)(3). CONTACT PERSON FOR MORE INFORMATION: 3 Securities Exchange Act Release No. 90534 Specifically, the definition of a clearing agency For further information and to ascertain (November 30, 2020), 85 FR 78371 (December 4, includes, in part, ‘‘any person, such as a securities what, if any, matters have been added, 2020) (SR–DTC–2020–017) (‘‘Notice’’). depository that (i) acts as a custodian of securities in connection with a system for the central deleted or postponed, please contact the 4 Capitalized terms not defined herein are defined in the Rules, By-Laws and Organization Certificate handling of securities whereby all securities of a Office of the Secretary at (202) 551– of DTC (the ‘‘Rules’’), available at www.dtcc.com/ particular class or series of any issuer deposited 5400. ∼/media/Files/Downloads/legal/rules/dtc_rules.pdf, within the system are treated as fungible and may the DTC Operational Arrangements (Necessary for be transferred, loaned, or pledged by bookkeeping Dated: January 13, 2021. Securities to Become and Remain Eligible for DTC entry without physical delivery of securities Vanessa A. Countryman, Services) (‘‘OA’’), available at http:// certificates, or (ii) otherwise permits or facilitates www.dtcc.com/∼/media/Files/Downloads/legal/ the settlement of securities transactions or the Secretary. issue-eligibility/eligibility/operational- hypothecation or lending of securities without [FR Doc. 2021–01101 Filed 1–13–21; 4:15 pm] arrangements.pdf, and the DTC Underwriting physical delivery of securities certificates.’’ 15 U.S.C. 78c(a)(23)(A). BILLING CODE 8011–01–P Service Guide (‘‘Underwriting Service Guide’’), available at http://www.dtcc.com/∼/media/Files/ 6 See OA, supra note 4, at 9–10. Downloads/legal/service-guides/Underwriting- 7 See Notice, supra note 3, 85 FR at 78372. 15 17 CFR 200.30–3(a)(12). Service-Guide.pdf. 8 Id. VerDate Sep<11>2014 05:39 Jan 15, 2021 Jkt 253001 PO 00000 Frm 00165 Fmt 4703 Sfmt 4703 E:\FR\FM\15JAN1.SGM 15JAN1.

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