Notice2024-30529
Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update the ClaimConnectTM Service Guide
Primary source
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Published
December 23, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 246 (Monday, December 23, 2024)</title>
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[Federal Register Volume 89, Number 246 (Monday, December 23, 2024)]
[Notices]
[Pages 104578-104579]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-30529]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101945; File No. SR-DTC-2024-012]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Update the ClaimConnect<SUP>TM</SUP> Service Guide
December 17, 2024.
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 December 5, 2024, 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 \5\ consists of amendments to the DTC
ClaimConnect<SUP>TM</SUP> Service Guide (``ClaimConnect Guide'') \6\ to
(i) enable ClaimConnect users (``Users'') to submit and affirm multiple
claims at once (i.e., the ``Claim Upload'' function), and (ii) make
clarifying, technical, and ministerial changes, as described in greater
detail below.
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\5\ Each capitalized term not otherwise defined herein has its
respective meaning as set forth the Rules, By-Laws and Organization
Certificate of DTC (the ``Rules'') available at <a href="http://www.dtcc.com/legal/rules-and-procedures.aspx">www.dtcc.com/legal/rules-and-procedures.aspx</a> or the DTC ClaimConnect<SUP>TM</SUP>
Service Guide, available at <a href="http://www.dtcc.com/-/media/Files/Downloads/legal/service-guides/ClaimConnect.pdf">www.dtcc.com/-/media/Files/Downloads/legal/service-guides/ClaimConnect.pdf</a>.
\6\ ClaimConnect Guide, supra note 5.
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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 will update the ClaimConnect Guide to (i)
enable Users to submit and affirm multiple claims at once (i.e., the
``Claim Upload'' function), and (ii) make clarifying, technical, and
ministerial changes, as more fully described below.
Background
ClaimConnect is a service available to all Participants. The
service enables Participants to bilaterally match and settle cash claim
transactions at DTC.
With respect to ClaimConnect, a cash claim or cash claim
transaction is a cash entitlement (i.e., a request for cash) from one
Participant to another Participant. Typically, cash claims arise as a
result of trading exceptions from a Corporate Action event, where a
cash entitlement needs to be delivered from one holder to another.
ClaimConnect is a validation and matching engine that continually
monitors claims throughout their lifecycle in order to settle and close
claims through DTC's settlement process. This continuous processing
allows for both the manual matching of claims (i.e., affirmation) by
Users and systematic matching of two like claims by ClaimConnect based
on the alignment of certain data elements (i.e., auto-matching).\7\
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\7\ For more information about ClaimConnect, see Securities
Exchange Act Release No. 90481 (Nov. 23, 2020), 85 FR 76640 (Nov.
30, 2020) (SR-DTC-2020-012).
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Proposed Rule Change
Claim Processing via Claim Upload
Currently, for a User to submit a claim via the ClaimConnect web
application, the User must manually submit each claim individually.
This individual, manual process can be arduous and time consuming for
Participants who need to submit multiple claims. Therefore, pursuant to
the proposed rule change, a function will be added to ClaimConnect
(i.e., the ``Claim Upload'' function'') to enable Users to submit and
affirm multiple claims, at once, via the ClaimConnect web application
located in the MyDTCC portal, by uploading a type of file specified in
the ClaimConnect web application (e.g., a comma separated value file).
Before a Claim Upload submission is processed, the system will
perform a validation check to ensure all field values for each claim
included are accurate. Claims that fail validation are flagged and
rejected and will need to be corrected and resubmitted manually. Users
will have the option to either reject all claims included in the
uploaded file, even claims that passed validation, and upload a new
file, or the User can continue with the claims that passed validation
and then, separately, upload a new file containing only the claims that
needed to be corrected. However, since Claim Upload does not offer an
automated modification function, Users are only able to submit and
affirm claims, and any modifications or cancellations of previously
submitted claims must be made manually.
In further support of the new Claim Upload function, the proposed
rule change will (i) add a ``Claim Upload'' definition to mean ``a
claim-submission option, via the ClaimConnect web application in the
MyDTCC portal, for Users to submit and affirm multiple claims at one
time by uploading a type of file specified in the ClaimConnect web
application,'' (ii) explain that claims can be submitted and affirmed
manually, either individually or in bulk via Claim Upload, and (iii)
direct Users to the DTCC Learning Center page to obtain more
information about Claim Upload.
Technical and Clarifying Changes
Additionally, the proposed rule change will make clarifying,
technical, and ministerial changes to the ClaimConnect Guide to (i)
update the copyright date, (ii) remove a broken URL address for the
DTCC Learning Center, and (iii) clarify that certain references to the
MyDTCC portal are, more specifically, references to the ClaimConnect
web application in the portal.
2. Statutory Basis
Section 17A(b)(3)(F) of the Act requires that the rules of the
clearing agency be designed, inter alia, to promote the prompt and
accurate clearance and settlement of securities
[[Page 104579]]
transactions.\8\ DTC believes that the proposed rule change is
consistent with the Section 17A(b)(3)(F) of the Act, as cited above.
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\8\ 15 U.S.C. 78q-1(b)(3)(F).
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As described above, the proposed rule change will update the
ClaimConnect Guide to (i) add the Claim Upload function and (ii) make
clarifying, technical, and ministerial changes.
Collectively, the proposed changes are intended to streamline and
enhance claim processing related to trading exceptions from Corporate
Action events associated with securities maintained by DTC by enabling
easier submission and affirmation of multiple claims and ensuring the
ClaimConnect Guide is clear, accurate, and current. By improving the
claim management process for securities held at DTC for its
Participants, DTC believes that the proposed rule change would help
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.
(B) Clearing Agency's Statement on Burden on Competition
DTC does not believe that the proposed rule change will have any
impact or impose any burden on competition because, as described above,
the proposed rule change simply updates the ClaimConnect Guide to add
the Claim Upload function and make clarifying, technical, and
ministerial changes to better describe the service and ensure the Guide
is current, none of which should have any competitive impact on
Participants or their use of DTC services.
(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, DTC will amend
this filing to publicly file such comments as an Exhibit 2 to this
filing, as required by Form 19b-4 and the General Instructions thereto.
Persons submitting written 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="http://www.sec.gov/regulatory-actions/how-to-submit-comments">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#a5d1d7c4c1cccbc2c4cbc1c8c4d7cec0d1d6e5d6c0c68bc2cad3"><span class="__cf_email__" data-cfemail="f2868093969b9c95939c969f938099978681b2819791dc959d84">[email 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) \9\ of the Act and paragraph (f) \10\ 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.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#87f5f2ebe2aae4e8eaeae2e9f3f4c7f4e2e4a9e0e8f1"><span class="__cf_email__" data-cfemail="ccbeb9a0a9e1afa3a1a1a9a2b8bf8cbfa9afe2aba3ba">[email protected]</span></a>. Please include
file number SR-DTC-2024-012 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-2024-012. 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 (<a href="https://www.sec.gov/rules/sro.shtml">https://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
a.m. and 3 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">dtcc.com/legal/sec-rule-filings</a>). Do not include personal
identifiable information in submissions; you should submit only
information that you wish to make available publicly. We may redact in
part or withhold entirely from publication submitted material that is
obscene or subject to copyright protection. All submissions should
refer to file number SR-DTC-2024-012 and should be submitted on or
before January 13, 2025.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-30529 Filed 12-20-24; 8:45 am]
BILLING CODE 8011-01-P
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