Notice2025-05895
Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Recovery and Wind-Down Plan
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
April 7, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 65 (Monday, April 7, 2025)</title>
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[Federal Register Volume 90, Number 65 (Monday, April 7, 2025)]
[Notices]
[Pages 15019-15023]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05895]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-102756; File No. SR-DTC-2025-004]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Recovery and Wind-Down Plan
April 1, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 25, 2025, 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 consists of amendments the R&W Plan to
reflect business and product developments that have taken place since
the time it was last amended,\5\ make certain changes to improve the
clarity of the Plan and make other updates and technical revisions.\6\
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\5\ See Securities Exchange Act Release Nos. 98330 (Sept. 8,
2023), 88 FR 63169 (Sept. 14, 2023) (SR-DTC-2023-008); and 91429
(Mar. 29, 2021), 86 FR 17421 (Apr. 2, 2021) (SR-DTC-2021-004).
\6\ Capitalized terms not defined herein are defined in the
Rules, By-Laws and Organization Certificate of DTC (the ``Rules''),
available at <a href="http://www.dtcc.com/-/media/Files/Downloads/legal/rules/dtc_rules.pdf">www.dtcc.com/-/media/Files/Downloads/legal/rules/dtc_rules.pdf</a>, or in the Recovery & Wind-down Plan of DTC (the
``Recovery & Wind-down Plan,'' ``R&W Plan'' or ``Plan'').
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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
Executive Summary
The R&W Plan was adopted in August 2018 \7\ and is maintained by
DTC for compliance with Rule 17ad-22(e)(3)(ii) under the Act.\8\ Rule
17ad-22(e)(3)(ii) requires registered clearing agencies to, in short,
establish, implement and maintain plans for the recovery and
[[Page 15020]]
orderly wind-down of the covered clearing agency necessitated by credit
losses, liquidity shortfalls, losses from general business risk, or any
other losses. The Plan is intended to be used by the Board and DTC
management in the event DTC encounters scenarios that could potentially
prevent it from being able to provide its critical services to the
marketplace as a going concern.
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\7\ See Securities Exchange Act Release Nos. 83972 (Aug. 28,
2018), 83 FR 44964 (Sept. 4, 2018) (SR-DTC-2017-021); and 83953
(Aug. 27, 2018), 83 FR 44381 (Aug. 30, 2018) (SR-DTC-2017-803).
\8\ 17 CFR 240.17ad-22(e)(3)(ii). DTC is a ``covered clearing
agency'' as defined in Rule 17ad-22(a)(5) under the Act and must
comply with paragraph (e) of Rule 17ad-22.
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The R&W Plan is comprised of two primary sections: (i) the
``Recovery Plan,'' which sets out the tools and strategies to enable
DTC to recover, in the event it experiences losses that exceed its
prefunded resources, and (ii) the ``Wind-down Plan,'' which describes
the tools and strategies to be used to conduct an orderly wind-down of
DTC's business in a manner designed to permit the continuation of DTC's
critical services in the event that its recovery efforts are not
successful.
DTC believes that by helping to ensure that the R&W Plan reflects
current business and product developments, providing additional
clarity, and making necessary grammatical corrections, that the
proposed rule change will help DTC continue to maintain the Plan in a
manner that supports the continuity of DTC's critical services and
enables Participants and Pledgees to maintain access to DTC's services
through the transfer of its membership in the event DTC defaults or the
Wind-down Plan is ever triggered by the Board.
Background
The R&W Plan is managed by the Office of Recovery & Resolution
Planning (referred to in the Plan as the ``R&R Team'') of DTC's parent
company, the Depository Trust & Clearing Corporation (``DTCC''),\9\ on
behalf of DTC, with review and oversight by the DTCC Executive
Committee and the Board. In accordance with the SEC's Approval Order
covering the Plan,\10\ the Board, or such committees as may be
delegated authority by the Board from time to time, is required to
review and approve the R&W Plan biennially and would also review and
approve any changes that are proposed to the R&W Plan outside of the
biennial review. DTC completed its most recent biennial review in
2024.\11\ The proposed rule change reflects amendments proposed to the
Plans resulting from that review, which are described in greater detail
below. None of the proposed changes modify DTC's general objectives and
approach with respect to its recovery and wind-down strategy as set
forth under the current Plan.
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\9\ DTCC operates on a shared service model with respect to DTC
and its other affiliated clearing agencies, National Securities
Clearing Corporation (``NSCCNSCC'') and Fixed Income Clearing
Corporation (``FICC''). Most corporate functions are established and
managed on an enterprise-wide basis pursuant to intercompany
agreements under which it is generally DTCC that provides relevant
services to DTC, NSCC and FICC (collectively, the ``Clearing
Agencies'').
\10\ Supra note 7.
\11\ Upon the effective date of recently adopted SEC Rule 17ad-
26(9), DTC will be updating its procedures to require review and
approval of the Plan by the Board at least every 12 months or
following material changes to DTC's operations that would
significantly affect the viability or execution of the Plan.
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Proposed Amendments
A. Proposed Changes To Reflect Business or Product Developments
DTC is proposing changes to the following sections of the Plan
based upon business updates that have occurred since the Plan was last
amended.\12\
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\12\ Supra note 5.
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Section 2.4 (Intercompany Arrangements) describes how corporate
support services are provided to DTC from DTCC and DTCC's other
subsidiaries, through intercompany agreements under a shared services
model. This section includes a table, (Facilities, Table 2-B), that
lists each of the DTCC facilities utilized by the Clearing Agencies and
indicates whether the facility is owned or leased. DTC proposes to
update this table to add Hyderabad, India as an additional facility
location leased by DTCC, which site became operational at the end of
2024. In addition, for purposes of clarity, the proposed rule change
would update the table to make clear that DTCC is the owner of the
Tampa, Florida location.
Section 2.5 (Clearing Agency Links) \13\ describes some of the key
financial market infrastructures (``FMIs''), both domestic and foreign,
that DTC has identified as critical ``links.'' \14\ This section of the
Plan also identifies the group within DTCC that is responsible for
maintaining the inventory of links and that has set forth a set of
practices and protocols for managing and reviewing the various risks
and controls associated with clearing agency links. Based on a change
to the name of this internal group from ``the DTCC Systemic Risk Office
(``SRO'')'' to the ``Emerging and Systemic Risk (ESR),'' the proposed
rule change would replace all references to ``SRO'' with ``ESR.'' The
reference to the ``Chief Systemic Risk Officer (``CSRO'')'' would be
replaced with ``Operational Risk management.'' Also, for the same
reason, the reference in the first sentence of this section to the
``DTCC Systemic Risk Office (``SRO''), Clearing Agency Links--Risk
Review Procedures'' would be changed to the ``Clearing Agency Links--
Risk Review Procedures.'' Additionally, for purposes of consistency, in
other sections of the Plan where a reference is made to ``linked
FMIs,'' which are Sections 1.3, 3.2, 7.3, 8.4.2 and 8.4.5., it would be
replaced with ``Clearing Agency Links.''
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\13\ For purposes of consistency, under the proposed rule change
any remaining references to ``FMI Links'' would be revised to refer
to these as ``Clearing Agency Links.''
\14\ As defined in Rule 17ad-22(a)(8) under the Act, a link
``means, for purposes of paragraph (e)(20) of Rule 17ad-22, a set of
contractual and operational arrangements between two or more
clearing agencies, financial market utilities, or trading markets
that connect them directly or indirectly for the purposes of
participating in settlement, cross margining, expanding their
services to additional instruments or participants, or for any other
purposes material to their business.'' 17 CFR 240.17ad-22(a)(8).
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This section of the Plan also includes two tables (Table 2-C, Links
and Table 2-D: Schedule A Relationships) \15\ that sets out a brief
description of DTC's Clearing Agency links and Schedule A
Relationships. The rule proposal would make the following updates to
Table 2-C: (i) remove Deposito Central de Valores S.A. from the list of
inbound links, due to its voluntary termination from DTC,\16\ (ii) in
the entry describing The Central Depository (Pte.) Ltd., remove
``Nasdaq'' before the word ``issues'' in the following sentence which,
as modified, would read, ``It holds a FOP omnibus account at DTC which
facilitates the book-entry movements of U.S. issues quoted in the Stock
Exchange of Singapore's (``SES'') foreign equity market on behalf of
SES,'' and (iii) based on an internal change in its classification from
a link to a Schedule A relationship, remove ``Federal Reserve Bank
(``FRB'') Pledge Services from Table 2-C, Links and add it to Table 2-
D, Schedule A Relationships.
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\15\ DTC has identified certain critical external service
providers that, as determined by DTC's management, do not meet the
specified criteria of ``link'' but nevertheless are subject to the
same review process as is conducted for links, referred to within
DTC as ``Schedule A Relationships.''
\16\ See DTC Important Notice issued to Participants on May 17,
2024, <a href="http://www.dtcc.com/-/media/Files/pdf/2024/5/17/20196-24.pdf">www.dtcc.com/-/media/Files/pdf/2024/5/17/20196-24.pdf</a>.
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Section 3 (Critical Services) defines the criteria for classifying
certain of DTC's services as ``critical,'' \17\ and
[[Page 15021]]
identifies such critical services and the rationale for their
classification. The identification of DTC's critical services is
important for evaluating how the recovery tools and the wind-down
strategy would facilitate and provide for the continuation of DTC's
critical services to the markets it serves.
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\17\ The criteria that is used to identify an DTC service or
function as critical includes consideration as to whether (1) there
is a lack of alternative providers or products; (2) failure/
disruption of Book-Entry Delivery and Settlement Services (Impact on
Transaction Processing) would result in clients' inability to settle
transactions through book-entry movement of securities held at DTC;
(3) failure/disruption of cash payment processing services could
materially strain the flow of liquidity in the U.S. financial
markets and (4) the service is interconnected with other
participants and processes within the U.S. financial system (for
example, with other FMIs, settlement banks, broker-dealers, and
exchanges).
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There is a table (Table 3-B: DTC Critical Services) that lists each
of the services, functions or activities that DTC has identified as
``critical'' based on the applicability of the criteria. For purposes
of consolidation and consistency with the naming conventions, broader
descriptions of these services as set forth in DTCC's enterprise
service catalogue (the ``ESC''), which is used by DTC's internal
stakeholders, the proposed rule change would (i) make changes to the
names and descriptions of certain critical services, (ii) remove some
rows in the table that are currently designated as separate critical
services and list them instead as material components of more broadly
described critical service(s). These proposed changes are described in
more detail below:
(i) The row for ``CNS Deliveries'' would be renamed ``Equity,
Corporate, and Muni Debt Transaction Processing'' with a broad
description of this service that, ``DTC's Settlement Service for
equity, corporate debt and municipal debt securities transactions
consolidates and facilitates end-of-day net funds settlement of a
participant's net debits and credits resulting from various intraday
activities, including institutional trading activity, stock loans,
etc.'' The current description of ``CNS Deliveries'' would be retained
and listed as a material component of ``Equity, Corporate, and Muni
Debt Transaction Processing'' service.
(ii) Similarly, the separate rows for ``Delivery Orders,''
``Payment Orders,'' and ``Collateral Loans (i.e., Pledge Service)''
would be deleted and moved under the ``Equity, Corporate, and Muni Debt
Transaction Processing'' as material components of that service.
(iii) The separate row for ``Pre-Issuance Messaging'' would be
deleted and moved under ``MMIs and Commercial Paper Processing,'' as a
material component of that service.
(iv) The current row titled ``Segregation,'' would be replaced with
``Inventory Management,'' which would describe that ``Inventory
Management'' offers various inquiry and prioritization options, audit
trails and transaction update capabilities that allow a client to
manage their settlement delivery inventory. The Inventory Management
System (IMS) warehouses most participant transactions and introduces
them for settlement processing based on transaction type and user-
defined profiles.'' ``Segregation'' would be designated as a material
component if this service. Also, the separate row for ``Memo
Segregation,'' would also be deleted and included as a material
component of this broader service designation. Based on these changes,
an additional criteria used in the determination of criticality of the
``Inventory Management'' service would be included in the table, which
is the impact on transaction processing.
(v) The row for the ``Automated Customer Account Transfer Service
(``ACATS'')'' would be deleted and included in NSCC's list of critical
services going forward.
(vi) The separate row for the ``New Issue Information
Dissemination'' service would be deleted and included under
``Underwriting,'' as a material component of that service.
(vii) The row for ``Branch Deposit Service'' would be re-named
``Deposits Service,'' and the description would be refined to describe
that this is the primary method for participants to deposit physical
certificates to receive positions in their account where they will be
eligible for, among others, trade settlement and asset services. In
addition, the row for ``Deposit/Withdrawal at Custodian Deposits''
would be deleted and included as a material component of this service.
(viii) The separate rows for ``Physical Withdrawals'' and ``Direct
Registration System Withdrawals by Transfer'' would be deleted and
moved under ``Custody Withdrawals'' as material components of this
service.
(ix) The row for ``Mandatory and Voluntary Corporate Actions''
would be renamed ``Redemptions'' with a broad description of this
service which would describe DTC's corporate actions processing service
for redemptions. The current description of ``Mandatory and Voluntary
Corporate Actions,'' would be retained and included as a material
component of this service.
(x) The following critical services would be added to Table 3-B:
(x) ``Reorganizations,'' which describes DTC's corporate actions
processing service for reorganizations, and (y) ``Tax Event
Announcements'' that are information only announcements regarding
taxable events.
In addition, there is a table (Table 3-C: Indicative Non-Critical
DTC Services) that identifies indicative non-critical services of DTC,
which list is not exhaustive. Pursuant to the proposed rule change, the
following entries to Table 3-C would be removed to align with the ESC:
(i) ``Older Issue Eligibility'' would be removed because it comprises
``Underwriting,'' which is designated in Table 3-B as a critical
service, (ii) ``Initial Public Offering (IPO) Tracking'' would be
removed because it is a component of ``Equity, Corporate, and Muni Debt
Transaction Processing,'' which is designated in Table 3-B as a
critical service, and (iii) ``Domestic Tax Reporting Service would be
removed because it is covered under the entry for ``Foreign Tax Relief
Services.'' Also, ``ID Netting Services'' would be removed from the
table because this service has been decommissioned by DTC.\18\
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\18\ Securities Exchange Act Release No. 101486 (Oct. 31, 2024),
89 FR 88078 (Nov. 6, 2024) (SR-DTC-2024-010).
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Section 5 (Participant Default Losses through the Crisis Continuum)
of the Plan is comprised of multiple subsections that identify the risk
management surveillance, tools, and governance that DTC may employ
across an increasing stress environment, referred to as the ``Crisis
Continuum.'' \19\ Included in this section are descriptions of
potential stress events that could lead to recovery, and several early
warning indicators and metrics that DTC has established. These
indicators, which are referred to in the Recovery Plan as recovery
corridor indicators (``Corridor Indicators''),\20\ are listed in an
associated table (Table 5-A, Corridor Indicators). The table provides a
brief description of each Corridor Indicator, along with columns
reflecting how the indicator is measured, evaluated, how its status
(i.e., deteriorating or
[[Page 15022]]
improving) is determined, and the escalation process if triggered. The
proposed rule change would update this table to remove the ``hedging''
\21\ indicator entry. This is because the DTC liquidation portfolio is
primarily comprised of long-only collateral positions, meaning no short
positions. As a business-as-usual process, these positions are subject
to conservative haircuts. Therefore, this Corridor Indicator is not
necessary to include because as a practical matter, the benefits of
hedging such long-only positions that would ultimately be sold to raise
cash do not outweigh the cost to DTC of trying to hedge them.
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\19\ As set forth in the Recovery Plan, the phases of the
``Crisis Continuum'' include (1) a stable market phase, (2) a
stressed market phase, (3) a phase commencing with DTC's decision to
cease to act for a Participant or Affiliated Family of Participants
(The Plan refers to an ``Affiliated Family'' of Participants as a
number of affiliated entities that are all Participants of DTC), and
(4) a recovery phase.
\20\ The majority of the Corridor Indicators, as identified in
the Recovery Plan, relate directly to conditions that may require
DTC to adjust its strategy for hedging and liquidating collateral
securities, and any such changes would include an assessment of the
status of the Corridor Indicators. Corridor Indicators include, for
example, the effectiveness and speed of DTC's efforts to liquidate
Collateral securities, and an impediment to the availability of
DTC's resources to repay any borrowings due to any Participant
Default. For each Corridor Indicator, the Recovery Plan identifies
(1) measures of the indicator, (2) evaluations of the status of the
indicator, (3) metrics for determining the status of the
deterioration or improvement of the indicator, and (4) ``Corridor
Actions,'' which are steps that may be taken to improve the status
of the indicator, as well as management escalations required to
authorize those steps.
\21\ Hedging is a risk management strategy that would be
employed when executing the liquidation of a defaulting
participant's portfolio to potentially help reduce the risk of loss
of an existing position.
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B. Other Updates, Clarifications and Technical Revisions
DTC is also proposing to make other updates and technical revisions
to the Plan. These technical revisions would, for example, make
grammatical corrections, update the names of certain DTC internal
groups, and clarify the description of internal organizations, without
changing the substantive statements being revised.
For example, in Section 4.1 (DTCC and SIFMU Governance Structure),
for purposes of reflecting organizational updates and internal name
changes, DTC proposes to make the following changes, (i) revise the
number of Board committees from six to seven, (ii) revise the name of
the ``Businesses, Technology and Operations'' committee to the
``Technology & Cyber Committee, and add to the committees list a new
committee, the ``Enterprise Services Committee,'' (iii) throughout the
Plan, replace all references to ``Management Committee'' with
``Executive Committee,'' based on a change made to the name of this
existing committee, (iv) in Section 4.3 (Recovery and Wind-down Program
Governance), for purposes consolidating of the list of risk groups that
comprise representation on DTCC's Recovery & Wind-down Planning
Council, revise reference to the ``Financial Risk Management,''
``Operational,'' ``Systemic Risk'' and ``Financial and Operational
Risk'' to ``Group Chief Risk Office,'' and remove reference to
``Embedded Risk Management,'' (v) in Table 5-A: Corridor Indicators,
and elsewhere, replace the reference to ``Global Business Operations''
with ``Enterprise Business Operations,'' and (vi) with respect to
Section 6.3.1 (Financial Risk and Capital Management), the last
sentence describes that at the center of DTCC's approach to measuring
and managing its capital is a framework comprised of regulatory and
economic components designed to comprehensively assess the capital
needs of the consolidated enterprise and its operating subsidiaries.
Based on a change in terminology that does not impact how FICC measures
or manages its capital, the term ``economic components'' would be
replaced with ``management views,'' and (vii) for purposes of clarity
and to avoid redundancy, at the end of Section 8.7 (Costs and Time to
Effectuate Plan), (x) the following sentence would be revised to add
the words ``at least'' before ``four months, ``Based on the foregoing
analysis, the costs to execute DTC's recovery or orderly wind-down are
estimated at an amount equal to four months of operating expenses, and
(y) the subsequent sentence that ``This amount thus should be less than
the amount based upon six months of operating costs,'' would be
deleted.
DTC believes the proposed updates and technical revisions would
improve the clarity and accuracy of the Plan and, therefore, would help
facilitate the execution of Plan, if necessary.
2. Statutory Basis
DTC believes that the proposal is consistent with the requirements
of the Act and the rules and regulations thereunder applicable to a
registered clearing agency. In particular, DTC believes that the
amendments to the R&W Plan are consistent with Section 17A(b)(3)(F) of
the Act \22\ and Rule 17ad-22(e)(3)(ii) under the Act,\23\ for the
reasons described below.
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\22\ 15 U.S.C. 78q-1(b)(3)(F).
\23\ 17 CFR 240.17ad-22(e)(3)(ii).
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Section 17A(b)(3)(F) of the Act requires, in part, that the rules
of DTC be designed to promote the prompt and accurate clearance and
settlement of securities transactions. As described above, the proposed
rule change would update the R&W Plan to reflect business and product
developments and make certain technical corrections. By helping to
ensure that the R&W Plan reflects current business and product
developments, and providing additional clarity, DTC believes that the
proposed rule change would help it continue to maintain the Plan in a
manner that supports the continuity of DTC's critical services and
enables its Participants and Pledgees to maintain access to DTC's
services through the transfer of its membership in the event DTC
defaults or the Wind-down Plan is ever triggered by the Board. Further,
by facilitating the continuity of its critical clearance and settlement
services, DTC believes the Plan and the proposed rule change would
continue to promote the prompt and accurate clearance and settlement of
securities transactions. Therefore, DTC believes the proposed
amendments to the R&W Plan are consistent with the requirements of
Section 17A(b)(3)(F) of the Act.
Rule 17ad-22(e)(3)(ii) under the Act requires DTC to establish,
implement, maintain and enforce written policies and procedures
reasonably designed to maintain a sound risk management framework for
comprehensively managing legal, credit, liquidity, operational, general
business, investment, custody, and other risks that arise in or are
borne by the covered clearing agency, which includes plans for the
recovery and orderly wind-down of the covered clearing agency
necessitated by credit losses, liquidity shortfalls, losses from
general business risk, or any other losses.\24\
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\24\ Id.
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Specifically, the Recovery Plan defines the risk management
activities, stress conditions and indicators, and tools that DTC may
use to address stress scenarios that could eventually prevent it from
being able to provide its critical services as a going concern. Through
the framework of the Crisis Continuum, the Recovery Plan addresses
measures that DTC may take to address risks of credit losses and
liquidity shortfalls, and other losses that could arise from a
Participant default. The Recovery Plan also addresses the management of
general business risks and other non-default risks that could lead to
losses. The Wind-down Plan would be triggered by a determination by the
Board that recovery efforts have not been, or are unlikely to be,
successful in returning DTC to viability as a going concern. Once
triggered, the Wind-down Plan sets forth clear mechanisms for the
transfer of DTC's membership and business and is designed to facilitate
continued access to DTC's critical services and to minimize market
impact of the transfer. By establishing the framework and strategy for
the execution of the transfer and wind-down of DTC in order to
facilitate continuous access to its critical services, the Wind-down
Plan establishes a plan for the orderly wind-down of DTC.
As described above, the proposed rule change would update the R&W
Plan to reflect business and product developments and make certain
technical corrections. By ensuring that material provisions of the Plan
are current, clear, and technically correct,
[[Page 15023]]
DTC believes that the proposed amendments are designed to support the
maintenance of the Plan for the recovery and orderly wind-down of the
covered clearing agency necessitated by credit losses, liquidity
shortfalls, losses from general business risk, or any other losses,
and, as such, meets the requirements of Rule 17ad-22(e)(3)(ii) under
the Act.\25\ Therefore, the proposed changes would help DTC to maintain
the Plan in a way that continues to be consistent with the requirements
of Rule 17ad-22(e)(3)(ii).
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\25\ Id.
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(B) Clearing Agency's Statement on Burden on Competition
DTC does not believe that the proposed rule change would have any
impact, or impose any burden, on competition. DTC does not anticipate
that the proposal would affect its day-to-day operations under normal
circumstances, or in the management of a typical Participant default
scenario or non-default event. The R&W Plan was developed and
documented in order to satisfy applicable regulatory requirements, as
discussed above. The proposal is intended to enhance and update the
Plan to ensure it is clear and remains current in the event it is ever
necessary to be implemented. The proposed revisions would not affect
any changes to the overall structure or operation of the Plan or DTC's
recovery and wind-down strategy as set forth under the current Plan. As
such, DTC believes the proposal would not have any impact, or impose
any burden, on competition.
(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#35414754515c5b52545b515854475e504146754650561b525a43"><span class="__cf_email__" data-cfemail="fe8a8c9f9a9790999f909a939f8c959b8a8dbe8d9b9dd0999188">[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) of the Act and paragraph (f) 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.
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#c2b0b7aea7efa1adafafa7acb6b182b1a7a1eca5adb4"><span class="__cf_email__" data-cfemail="552720393078363a3838303b2126152630367b323a23">[email protected]</span></a>. Please include
File Number SR-DTC-2025-004 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-2025-004. 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
10:00 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="https://dtcc.com/legal/sec-rule-filings.aspx">https://dtcc.com/legal/sec-rule-filings.aspx</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-2025-004 and should be submitted on
or before April 28, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-05895 Filed 4-4-25; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on April 7, 2025.
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.