Notice2022-15002

Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of Immediate Effectiveness of a Proposed Rule Change To Amend the DTC Distributions Guide To Enhance the Tax Event Announcements Feature of the Distributions Service and Make Related Clarifying Changes

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
July 14, 2022

Issuing agencies

Securities and Exchange Commission

Full Text

<html>
<head>
<title>Federal Register, Volume 87 Issue 134 (Thursday, July 14, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 134 (Thursday, July 14, 2022)]
[Notices]
[Pages 42243-42247]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-15002]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95231; File No. SR-DTC-2022-008]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing of Immediate Effectiveness of a Proposed Rule Change 
To Amend the DTC Distributions Guide To Enhance the Tax Event 
Announcements Feature of the Distributions Service and Make Related 
Clarifying Changes

July 8, 2022.
    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 June 30, 2022, 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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change would amend the Procedures \5\ set forth 
in the Distributions Guide to accommodate Participants' tax reporting 
and withholding obligations, by setting forth a proposed enhancement to 
DTC's Procedure for the Tax Events Announcements feature (``Tax Event 
Announcements'') of DTC's Distributions Service,\6\ as described 
below.\7\
---------------------------------------------------------------------------

    \5\ Pursuant to the DTC 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, 
infra note 7. DTC's Procedures are filed with the Commission. They 
are binding on DTC and each Participant in the same manner that they 
are bound by the DTC Rules. See Rule 27, infra note 7.
    \6\ Tax Event Announcements provides Participants with 
information-only announcements regarding taxable events that may 
give rise to information and/or withholding obligations which occur 
even in the absence of an actual distribution of dividend and 
interest payments (``Tax Events''). See Distributions Guide, infra 
note 7, at 14.
    \7\ Each capitalized term not otherwise defined herein has its 
respective meaning as set forth in the Rules, By-Laws and 
Organization Certificate of The Depository Trust Company (``DTC 
Rules''), available at <a href="http://www.dtcc.com/legal/rules-and-procedures.aspx">http://www.dtcc.com/legal/rules-and-procedures.aspx</a>, and the DTC Corporate Actions Distributions Service 
Guide (``Distributions Guide''), available at https://www.dtcc.com/
~/media/Files/Downloads/legal/service-guides/Service-Guide-
Distributions.pdf.
---------------------------------------------------------------------------

Announcements

    The Distributions Service includes the announcement, collection, 
allocation and reporting by DTC, on behalf of its Participants, of 
dividend, interest and principal payments for Eligible Securities held 
by Participants at DTC (``Announcements''). This centralized processing 
provides efficiency for Participants for their receipt of (i) payment 
information and (ii) payments on distributions covered by Announcements 
(``Distribution Event'') \8\ from multiple issuers and agents.
---------------------------------------------------------------------------

    \8\ Distribution Events covered by Announcements include cash 
dividends, interest, principal, capital gains, sale of rights on 
American depositary receipts, return of capital, dividend with 
option, stock splits, stock dividends, automatic dividend 
reinvestments, spinoffs, rights distributions, pay in kind, and 
liquidation. See Distributions Guide, supra note 7, at 12.
---------------------------------------------------------------------------

    DTC also provides a Participant holding a Security in its DTC 
account with Tax Events Announcements for distributions subject to 
Sections 305(c) and 871(m) of the Internal Revenue Code (``Code'').\9\ 
The proposed rule change would enhance Tax Event Announcements by 
adding a new type of Tax Event to be referred to as a ``1042-S 
Classification,'' as more fully described below.
---------------------------------------------------------------------------

    \9\ See Distributions Guide, supra note 7, at 14-15. See also 
Securities Exchange Act Release No. 81871 (October 13, 2017), 82 FR 
48734 (October 19, 2017) (SR-DTC-2017-018) and Securities Exchange 
Act Release No. 87729 (December 12, 2019), 84 FR 69424 (December 18, 
2019) (SR-DTC-2019-011).
---------------------------------------------------------------------------

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 would amend the Procedures \10\ set forth 
in the Distributions Guide to accommodate Participants' tax reporting 
and withholding obligations, by setting forth a proposed enhancement to 
DTC's Procedure for the Tax Events Announcements feature (``Tax Event 
Announcements'') of DTC's Distributions Service,\11\ as described 
below.
---------------------------------------------------------------------------

    \10\ Pursuant to the DTC 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 7. DTC's Procedures are filed with the 
Commission. They are binding on DTC and each Participant in the same 
manner that they are bound by the DTC Rules. See Rule 27, supra note 
7.
    \11\ Tax Event Announcements provides Participants with 
information-only announcements regarding taxable events that may 
give rise to information and/or withholding obligations which occur 
even in the absence of an actual distribution of dividend and 
interest payments (``Tax Events''). See Distributions Guide, supra 
note 7, at 14.
---------------------------------------------------------------------------

(a) Announcements
    The Distributions Service includes the announcement, collection, 
allocation and reporting by DTC, on behalf of its Participants, of 
dividend, interest and principal payments for Eligible Securities held 
by Participants at DTC (``Announcements''). This centralized processing 
provides efficiency for Participants for their receipt of (i) payment 
information and (ii) payments on distributions covered by Announcements 
(``Distribution

[[Page 42244]]

Event'') \12\ from multiple issuers and agents.
---------------------------------------------------------------------------

    \12\ Distribution Events covered by Announcements include cash 
dividends, interest, principal, capital gains, sale of rights on 
American depositary receipts, return of capital, dividend with 
option, stock splits, stock dividends, automatic dividend 
reinvestments, spinoffs, rights distributions, pay in kind, and 
liquidation. See Distributions Guide, supra note 7, at 12.
---------------------------------------------------------------------------

    DTC also provides a Participant holding a Security in its DTC 
account with Tax Events Announcements for distributions subject to 
Sections 305(c) and 871(m) of the Internal Revenue Code (``Code'').\13\ 
The proposed rule change would enhance Tax Event Announcements by 
adding a new type of Tax Event to be referred to as a ``1042-S 
Classification,'' as more fully described below.
---------------------------------------------------------------------------

    \13\ See Distributions Guide, supra note 7, at 14-15. See also 
Securities Exchange Act Release No. 81871 (October 13, 2017), 82 FR 
48734 (October 19, 2017) (SR-DTC-2017-018) and Securities Exchange 
Act Release No. 87729 (December 12, 2019), 84 FR 69424 (December 18, 
2019) (SR-DTC-2019-011)
---------------------------------------------------------------------------

Proposed New Type of Tax Event Announcement for 1042-S Classifications
    Pursuant to Rule 1.1446-4(b)(4) under the Code \14\, issuers of 
publicly traded partnerships \15\ that are Eligible Securities,\16\ 
starting with distributions on or after January 1, 2023, will be 
required to provide DTC's nominee, Cede & Co., as registered holder of 
the Security,\17\ with ``qualified notices'' that classify a 
distribution into multiple components for tax withholding and Internal 
Revenue Service Form 1042-S \18\ reporting purposes. For example, on a 
$1.00 distribution, the qualified notice may state that $0.60 is 
considered dividend income and $0.40 is income effectively connected 
with the conduct of a trade or business in the United States. DTC would 
forward to Participants such qualified notices that it receives from 
issuers, as discussed below.
---------------------------------------------------------------------------

    \14\ 26 CFR 1.1446-4(b)(4).
    \15\ 26 CFR 1.1446-4(b)(1) (providing definition of publicly 
traded partnership).
    \16\ Pursuant to Rule 5, Section 1 of the DTC Rules, an Eligible 
Security shall only be a Security accepted by DTC, in its sole 
discretion, as an Eligible Security. DTC shall accept a Security as 
an Eligible Security only (a) upon a determination by DTC that it 
has the operational capability and can obtain information regarding 
the Security necessary to permit it to provide its services to 
Participants and Pledgees when such Security is Deposited and (b) 
upon such inquiry, or based upon such criteria, as DTC may, in its 
sole discretion, determine from time to time. DTC Rules, Rule 5, 
supra note 7. See also DTC Operational Arrangements Necessary for 
Securities to Become and Remain Eligible for DTC Services (``OA''), 
available at http://www.dtcc.com/~/media/Files/Downloads/legal/
issue-eligibility/eligibility/operational-arrangements.pdf, at 6-9 
(setting forth DTC eligibility requirements).
    \17\ DTC holds eligible securities on behalf of Participants and 
reflects the transfer of interests in those securities among 
Participants by computerized book-entry. Eligible securities 
deposited with DTC for book-entry transfer services are registered 
in the name of its nominee, Cede & Co. (``Cede''), a New York 
partnership. When the certificates are registered in the name of 
Cede, DTC acquires legal title to the securities and, when DTC 
credits interests in these securities to the securities accounts of 
Participants, those Participants acquire a beneficial interest in 
the securities. A Participant does not have a right to any 
particular security; each Participant has a proportionate interest 
in the fungible total inventory of the issue held by DTC. See DTC 
Disclosure Framework for Covered Clearing Agencies and Financial 
Market Infrastructures (December 2021), available at http://
www.dtcc.com/~/media/Files/Downloads/legal/policy-and-compliance/
DTC_Disclosure_Framework.pdf, at 9.
    \18\ See Form 1042-S, available at <a href="https://www.irs.gov/pub/irs-pdf/f1042s.pdf">https://www.irs.gov/pub/irs-pdf/f1042s.pdf</a>.
---------------------------------------------------------------------------

    Meanwhile, other issuers may not be required to provide DTC with 
classification information for Form 1042-S reporting purposes. For 
example, a regulated investment company may classify a portion of a 
distribution as representing interest-related dividends or as a short-
term capital gain dividend but would not be required to provide a 
``qualified notice'' to DTC pursuant to Rule 1.1446-4(b)(4).\19\ This 
classification information would not be reported to DTC on a 
``qualified notice'' and currently could not be made available to 
Participants through the facilities of DTC. Rather, to obtain the 
information needed to fulfill any tax reporting obligations a 
Participant or its customer may have with regard to such 
classifications, DTC understands that Participants and their customers 
obtain the necessary information from the respective issuers' websites 
or from 3rd party vendors. Based on discussions with issuers and 
Participants, DTC understands that having to obtain this information on 
an individual CUSIP-by-CUSIP basis from issuers' websites or getting 
this information after the distribution from a vendor, may create 
inefficiencies for Participants and their customers that would be 
mitigated if such information were made available in a more centralized 
format.
---------------------------------------------------------------------------

    \19\ See supra note 14.
---------------------------------------------------------------------------

    To facilitate the distribution of this classification information 
in a centralized format to Participants holding such Securities at DTC, 
DTC proposes to create a new Tax Event ``Sub Event Type'' (i.e., the 
``1042-S Classification'') with the various tax components that make up 
a distribution, as more fully described below. Subject to requirements 
described below, DTC would (i) receive 1042-S Classification 
information that issuers voluntarily provide to DTC for this purpose 
and (ii) distribute the information to Participants that hold the 
applicable securities. Information that issuers are required to provide 
to DTC pursuant to Rule 1.1446-4(b)(4) would also be included in the 
1042-S Classification Sub Event Type.
Proposed Rule Change
    Pursuant to the proposed rule change, the Distributions Guide would 
be revised to reflect the addition of ``1042-S Classifications'' as a 
``Sub Event Type'' under the Tax Event Announcement feature. The new 
1042-S Classification would include a template to facilitate an 
issuer's transmission of the distribution information that the issuer 
wishes be made available to Participants through the facilities of DTC, 
broken down by applicable classifications corresponding to the 
applicable income codes for a Distribution Event.
    The Distributions Guide would provide that an issuer that wishes to 
have such 1042-S Classifications made available to Participants through 
the facilities of DTC, would be required to utilize this template. 
However, issuers making payments subject to Rule 1.1446-4(b)(4) under 
the Internal Revenue Code may provide a ``qualified notice'' in lieu of 
the template. In addition, to promote timeliness and accuracy of issuer 
information, the Distributions Guide would provide that the breakdown 
of the classifications must be provided to DTC prior to the record date 
(``Record Date'') \20\ and should not be subject to change. The 
Distributions Guide would also provide that by providing DTC with this 
template, the issuer certifies that the information provided in the 
template is not subject to change. However, the text would provide that 
DTC will accept and distribute updated information to Participants to 
the extent an issuer notifies DTC that the issuer entered an error in 
the applicable template or qualified notice provided by it to DTC and 
the issuer provides DTC with a corrected template or qualified notice, 
as applicable. In addition, the text would provide that DTC reserves 
the right not to accept classification information from issuers that do 
not abide by the requirements included in the Distributions Guide.
---------------------------------------------------------------------------

    \20\ The Record Date is the date set by an issuer of a security 
by which an investor must own the security in order to be eligible 
to receive an upcoming distribution. See OA, supra note 16, at 26.
---------------------------------------------------------------------------

    The proposed text would also state that each issuer and its 
affiliates, in the aggregate, may provide templates for up to, but no 
more than, 12 CUSIP numbers

[[Page 42245]]

per month (``CUSIP Limit'').\21\ The number of qualified notices 
provided by an issuer would not be included in the determination of the 
CUSIP Limit for that issuer or its affiliates, because it is mandatory 
under Rule 1.1446-4(b)(4) \22\ for issuers to deliver such notices to 
DTC, as described above.
---------------------------------------------------------------------------

    \21\ Depending on demand for the transmittal of 1042-S 
Classifications through the facilities of DTC, and general 
availability of processing resources at DTC, DTC may submit a future 
proposed rule change to amend the Distributions Guide to increase 
the CUSIP Limit. Given this limitation, the text would note that to 
the extent 1042-S Classification information applicable to a 
Participant's holdings is not made available through Tax Events 
Announcements, the Participant should obtain such information from 
the issuer outside of DTC.
    \22\ See supra note 14.
---------------------------------------------------------------------------

    The text of the Distributions Guide also would be updated to 
clarify that ``305(c) Deemed Dividends'' and ``871(m) Dividend 
Equivalent Amounts'' are Sub Event Types.
    In addition, text in the Distributions Guide that describes a 
``Cash Rate'' field \23\ that is included in a Tax Event Announcement 
would be expanded and clarified to describe the field's contents for 
each Sub Event Type. In this regard, three items would be added below 
the description of Cash Rate as follows:
---------------------------------------------------------------------------

    \23\ The Cash Rate field is used to display the amount of a 
deemed distribution or dividend equivalent payment. See 
Distributions Guide, supra note 7, at 15.

<bullet> field used for the amount of the deemed distribution for sub 
event type of 305(c) Deemed Dividends
<bullet> field used to provide the dividend equivalent amount for sub 
event type of 871(m) Dividend Equivalent Amount
<bullet> Events with 1042-S Classifications will include multiple cash 
rates with each cash rate having a corresponding income code per the 
instructions for Form 1042-S, as applicable.''

    Finally, DTC would add text to the Distributions Guide as it 
relates to Tax Event Announcements to clarify that DTC does not 
independently verify the accuracy and/or completeness of Tax Event 
Announcement information it receives from issuers and agents, and that 
it is the sole responsibility of each Participant to ensure the 
accuracy and completeness of Tax Event Announcement information that it 
uses for any purpose, including but not limited to tax withholding and 
reporting.
Applicability of Tax Event Fee
    As with DTC's distribution of other Tax Event information to 
Participants, the distribution of 1042-S Classification information 
would be subject to the ``Tax Event Announcement Fee'' of $12 per 
Announcement, as set forth in the Fee Guide.\24\
---------------------------------------------------------------------------

    \24\ See DTC Fee Guide, available at https://www.dtcc.com/~/
media/Files/Downloads/legal/fee-guides/2022-DTC-Fee-Schedule-FINAL, 
at 15.
---------------------------------------------------------------------------

2. Statutory Basis
    DTC believes that the proposed rule change is consistent with the 
requirements of the Act, and the rules and regulations thereunder 
applicable to DTC, in particular Section 17A(b)(3)(F) \25\ of the Act.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Section 17A(b)(3)(F) of the Act requires, inter alia, that the 
rules of the clearing agency be designed to promote the prompt and 
accurate clearance and settlement of securities transactions.\26\ As 
described above, the proposed rule change would update the 
Distributions Guide to enhance the Distributions Service by including 
the distribution of Announcements for Tax Events for Securities subject 
to ``1042-S Classification'' requirements to Participants and make 
certain related clarifying changes described above. By providing for 
the distribution of such information, the proposed rule change would 
help facilitate Participants' compliance with federal tax withholding 
obligations for Eligible Securities subject to Tax Events that are on 
Deposit at DTC and making use of DTC's book-entry transfer and 
settlement services. This would further facilitate Participants' 
ability to continue to maintain Eligible Securities subject to 1042-S 
Classifications on Deposit at DTC and make use of DTC's book-entry 
transfer and settlement services with respect to those Securities, in 
accordance with DTC Rules requirements relating to the use of DTC 
services by Participants.\27\ Therefore, by facilitating Participant's 
ability to continue to use DTC's book-entry transfer and settlement 
services at DTC with respect to Eligible Securities that are subject to 
1042-S Classifications, 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) of the Act, cited above.
---------------------------------------------------------------------------

    \26\ Id.
    \27\ In connection with their use of DTC's services, 
Participants must comply with all applicable laws, including, but 
not limited to, all applicable laws relating to taxation. See DTC 
Rule 2, Section 8, supra note 7.
---------------------------------------------------------------------------

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

    DTC believes that the proposed rule change to amend the 
Distributions Guide to update fields used by DTC to report Tax Events, 
as described above, could impose a burden on competition by subjecting 
Participants that hold Eligible Securities that may be subject to 1042-
S Classifications to additional fees which may negatively affect such 
Participant's operating costs.
    DTC believes any burden on competition imposed by the proposed rule 
changes would not be significant, and to the extent the proposed rule 
change may impose a burden on competition, DTC believes it would be 
necessary and appropriate in furtherance of the purposes of the 
Act.\28\
---------------------------------------------------------------------------

    \28\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

    DTC has discussed the proposal with Participants that hold Eligible 
Securities that may be subject to 1042-S Classifications, and issuers 
of those Securities, and DTC understands that Participants and their 
customers obtain the necessary information from the respective issuers' 
websites or from 3rd party vendors. DTC understands that having to 
obtain this information on an individual CUSIP-by-CUSIP basis from 
issuers' websites or getting this information after the distribution 
from a vendor, creates inefficiencies and timing issues for 
Participants and their customers relating to the piecemeal nature of 
the retrieval of such information, that would be mitigated if such 
information were made available in a more centralized format through 
DTC.
    DTC believes that any burden on competition imposed by the proposal 
would be necessary because the proposed rule change would provide 
Participants with a centralized means to timely (in relation to Record 
Date) receive 1042-S Classification announcement information needed to 
facilitate their compliance with tax withholding and reporting 
obligations relating to payments on Eligible Securities for which 
issuers provide 1042-S Classification information to DTC, as described 
above.
    DTC believes that any burden on competition imposed by the proposal 
would be appropriate because the fees are intended to provide revenue 
that is close to the costs to DTC of building and providing the 
services described above. DTC believes the Tax Event Announcements 
feature has a positive effect on competition among Participants because 
the service allows Participants to receive applicable tax information 
in a more efficient manner, thereby reducing the resources they would 
need to allocate to obtain the applicable tax-related information on a 
CUSIP-by-CUSIP basis through issuers

[[Page 42246]]

and 3rd party vendors. The service also provides issuers with a more 
efficient method of providing Tax Event information to parties that 
need to see such information in order to facilitate timely tax 
withholding and reporting. DTC believes this enhances competition among 
Participants by allowing parties to receive such information more 
quickly and in a more streamlined manner. Based on experiences with 
existing services provided through the Tax Event Announcements feature 
and discussions with Participants, DTC believes that despite the Tax 
Event Fee that would be charged to Participants holding affected 
securities for the distribution of 1042-S Classification information, 
the distribution of such information through the facilities of DTC 
would provide benefits to Participants in terms of processing and 
timing efficiencies that should mitigate the impact of any such fees 
charged. As such, DTC believes these proposed rule changes would be 
appropriate in furtherance of the purposes of the Act, as permitted by 
Section 17A(b)(3)(I) of the Act.
    DTC does not believe that the aspect of the proposed rule change to 
make certain clarifying changes to the Distributions Guide, as 
described above, would have an impact on competition.\29\ Having a 
clear and accurate Distributions Guide would facilitate Participants' 
understanding of the Distributions Guide and provide Participants with 
increased predictability and certainty regarding their obligations 
regarding DTC Tax Event Announcement feature. Therefore, DTC believes 
that the proposed rule change to make clarifying changes to the Rules 
and the Settlement Guide would not have an impact on competition.\30\
---------------------------------------------------------------------------

    \29\ Id.
    \30\ Id.
---------------------------------------------------------------------------

    DTC does not believe that the aspect of the proposed rule change to 
establish the CUSIP Limit for an issuer and its affiliates to be able 
to submit up to 12 templates per month, as described above, would have 
any impact, or impose any burden on competition, because issuers and 
their affiliates would be subject to the same CUSIP Limit for 
submission of templates per month, and all Participants holding the 
applicable issues would be able to receive the same aggregate amount of 
notices for any issuer and its affiliates as all other Participants 
holding the same issues. However, to the extent the proposed rule 
change could cause a burden because certain issuers may reach the CUSIP 
Limit, DTC does not believe the burden would have a significant impact 
on competition because issuers that reach the CUSIP Limit in a given 
month would be able to continue to make 1042-S Classification 
information available outside DTC, and Participants would be able to 
retrieve the information, as they do today. To the extent the proposed 
rule change could cause a burden because certain issuers may have 
issuances that are not subject to the CUSIP Limit because distributions 
for those issues are subject to the requirements of Rule 1.1446-
4(b)(4),\31\ and therefore may be able to submit qualified notices for 
more than 12 CUSIPS per month, as described above, DTC does not believe 
burden would have a significant impact on competition because DTC 
understands from conversations with issuers, and its own observations 
of activity of issuers that may be subject to Rule 1.1446-4(b)(4),\32\ 
that such issuers and their affiliates would likely supply an amount of 
qualified notices, if any, that is well below the amount of the CUSIP 
Limit that would be established for issuers that would otherwise submit 
templates that are subject to the CUSIP Limit. Also, due to their 
status as publicly traded partnerships that are subject to Rule 1.1446-
4(b)(4),\33\ DTC understands that such issuers and their affiliates 
would not have a need to submit templates that could cause them in the 
aggregate to issue notices for 1042-Classification information that 
would exceed 12 CUSIPS per month. DTC also believes any burden on 
competition imposed by this exception of the CUSIP Limit would be 
necessary and appropriate in furtherance of the purposes of the Act 
because, as indicated above, such issuers are under a regulatory 
obligation to provide qualified notices to DTC regardless of the amount 
of issuances they may have that are subject to such requirements.
---------------------------------------------------------------------------

    \31\ See supra note 14.
    \32\ See supra note 14.
    \33\ See supra note 14.
---------------------------------------------------------------------------

(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. If any written comments are received, they would be 
publicly filed as an Exhibit 2 to this filing, as required by Form 19b-
4 and the General Instructions thereto.
    Persons submitting comments are cautioned that, according to 
Section IV (Solicitation of Comments) of the Exhibit 1A in the General 
Instructions to Form 19b-4, the Commission does not edit personal 
identifying information from comment submissions. Commenters should 
submit only information that they wish to make available publicly, 
including their name, email address, and any other identifying 
information.
    All prospective commenters should follow the Commission's 
instructions on how to submit comments, available at <a href="https://www.sec.gov/regulatory-actions/how-to-submit-comments">https://www.sec.gov/regulatory-actions/how-to-submit-comments</a>. General 
questions regarding the rule filing process or logistical questions 
regarding this filing should be directed to the Main Office of the 
Commission's Division of Trading and Markets at 
<a href="/cdn-cgi/l/email-protection#fc888e9d9895929b9d9298919d8e9799888fbc8f999fd29b938a"><span class="__cf_email__" data-cfemail="06727467626f68616768626b67746d6372754675636528616970">[email&#160;protected]</span></a> or 202-551-5777.
    DTC reserves the right to not respond to any comments received.

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) \34\ of the Act and paragraph (f) \35\ 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.
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78s(b)(3)(A).
    \35\ 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

    <bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#a1d3d4cdc48cc2ceccccc4cfd5d2e1d2c4c28fc6ced7"><span class="__cf_email__" data-cfemail="88fafde4eda5ebe7e5e5ede6fcfbc8fbedeba6efe7fe">[email&#160;protected]</span></a>. Please include 
File Number SR-DTC-2022-008 on the subject line.

Paper Comments

    <bullet> 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-2022-008. This file 
number should be included on the

[[Page 42247]]

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 
(<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>). 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 (<a href="http://dtcc.com/legal/sec-rule-filings.aspx">http://dtcc.com/legal/sec-rule-filings.aspx</a>). 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-2022-008 
and should be submitted on or before August 4, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\36\
---------------------------------------------------------------------------

    \36\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-15002 Filed 7-13-22; 8:45 am]
BILLING CODE 8011-01-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>
Indexed from Federal Register on July 14, 2022.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.