Notice2025-22146
Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Decommission the DTax Service
Primary source
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Published
December 8, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 233 (Monday, December 8, 2025)</title>
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[Federal Register Volume 90, Number 233 (Monday, December 8, 2025)]
[Notices]
[Pages 56822-56824]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22146]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104296; File No. SR-DTC-2025-018]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Decommission the DTax Service
December 3, 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 November 26, 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
[[Page 56823]]
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\ would (i) amend the Distributions
Guide to remove references to the Domestic Tax Reporting System
(``DTax''), a product offering of DTCC Solutions LLC (``DTCC
Solutions'') \6\ that is accessible via DTC's inquiry functions on the
DTC Participant Terminal System (``PTS'') and Participant Browser
Service (``PBS'') \7\, and, consequently, (ii) remove from the Guide to
the DTC Fee Schedule \8\ (``Fee Guide'') the DTax definition included
in the glossary.
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\5\ Each term not otherwise defined herein has its respective
meaning as set forth in the Rules, By-Laws and Organization
Certificate of DTC (``Rules'') or the DTC Corporate Actions
Distributions Service Guide (``Distributions Guide''), available at
<a href="http://www.dtcc.com/legal/rules-and-procedures">www.dtcc.com/legal/rules-and-procedures</a>.
\6\ DTCC Solutions LLC is an affiliate of DTC that provides data
and information services to support post-trade processing.
\7\ PTS and PBS are user interfaces that provide direct terminal
connectivity into various DTC services. PTS is mainframe-based and
PBS is web-based with a mainframe back-end.
\8\ Available at <a href="http://www.dtcc.com/-/media/Files/Downloads/legal/fee-guides/DTC-FeeSchedule.pdf">www.dtcc.com/-/media/Files/Downloads/legal/fee-guides/DTC-FeeSchedule.pdf</a>.
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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 would (i) amend the Distributions Guide to
remove references to DTax, a product offering of DTCC Solutions that is
accessible via DTC's inquiry functions on PTS and PBS, and,
consequently, (ii) remove from the Fee Guide the DTax definition
included in the glossary, as described below.
Background
DTax was introduced by DTC in 1998 to provide Participants with
issuer-sourced income classification data to support brokers and other
intermediaries in preparing Internal Revenue Service (IRS) form 1099
tax reports. DTC offered the service for several years as an optional
tool for tax reporting. In 2005, DTC filed a proposed rule change \9\
to discontinue DTax as a DTC-offered service and, instead, the service
was offered by DTCC Solutions. However, to accommodate Participants,
DTax remained accessible via DTC's inquiry functions via the DTC PTS
and PBS interfaces.
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\9\ Securities Exchange Act Release No. 52977 (Dec. 19, 2005),
70 FR 76474 (Dec. 27, 2005) (SR-DTC-2005-20).
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DTCC Solutions has decided to decommission the DTax service
effective December 4, 2025 (``Decommission Date''), based on limited
client usage and the availability of alternative data-sourcing
solutions. Affected clients have been notified via Important Notice,
and DTCC Solutions will continue to support DTax until the Decommission
Date. In response to the upcoming decommissioning of DTax, DTC proposes
to update its Distributions and Fee Guides to remove provisions and
references regarding the accessibility of DTax via DTC's PTS and PBS
inquiry functions, as described below.
Proposed Changes
Distributions Guide
DTC proposes to remove from the Distributions Guide all provisions
relating to DTax, including deleting (i) ``Domestic Tax Reporting
(DTAX)'' under the ``About the Distributions Service'' section and (ii)
the entire text of the section titled ``The Domestic Tax Reporting
Service (``DTax''),'' which describes the service and the associated
PTS and PBS functions for accessing information related to the service.
Fee Guide
DTC also proposes to eliminate references to DTax included in the
glossary of the Fee Guide.\10\ Because DTC did not charge a fee to
access DTax via PTS or PBS, there is no associated fee to remove, and
the historic glossary reference, originally included when DTax was
offered as a DTC service, will be deleted on the Decommission Date.
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\10\ See Fee Guide, supra note 8 at 28.
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Implementation
The proposed rule change would be implemented on December 4, 2025,
in alignment with DTCC Solutions' retirement of DTax.
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 transactions.\11\
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\11\ 15 U.S.C. 78q-1(b)(3)(F).
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As described above, the proposed rule change would (i) amend the
Distributions Guide, to remove mentions of DTax and, consequently, (ii)
remove from the Fee Guide the DTax definition. These amendments will
align DTC's Guides with the upcoming retirement of DTax by DTCC
Solutions. Removing obsolete references will ensure that DTC's
Distributions and Fee Guides accurately reflect the PTS and PBS service
functions currently available to Participants. By keeping the Guides
accurate, Participants are better able to access and use DTC services,
promoting more efficient and effective clearance and settlement.
Therefore, 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.
Rule 17ad-22(e)(21) \12\ promulgated under the Act requires, inter
alia, that DTC, a covered clearing agency, establish, implement,
maintain and enforce written policies and procedures reasonably
designed to, as applicable, be efficient and effective in meeting the
requirements of its Participants and the markets it serves. As
described above, the DTax section of the Distributions Guide currently
details an informational service offered by DTCC Solutions, including
data on reclassification of income for U.S. tax reporting purposes,
accessible via DTC's PTS and PBS functions. Because DTax is operated by
DTCC Solutions rather than DTC and is being decommissioned by DTCC
Solutions, removal of the DTax references from DTC's Guides ensures
that DTC's Guides accurately reflect the PTS and PBS services supported
by DTC. Accordingly, DTC believes that the proposed rule change would
help promote efficiency and effectiveness in a manner consistent with
Rule 17ad-22(e)(21).
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\12\ 17 CFR 240.17ad-22(e)(21).
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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
[[Page 56824]]
impact or impose any burden on competition because, as described above,
the proposed rule change is limited to removing obsolete references to
DTax from the Distributions Guide and Fee Guide. DTax is a DTCC
Solutions service and is not a service operated by DTC and the proposed
changes are intended solely to align DTC's Guides with the current
scope of its PTS and PBS services. Because DTax is being retired by
DTCC Solutions and has no operational connection to DTC, the inability
to access the service via DTC's PTS and PBS functions should have no
effect on the rights or obligations of Participants. Therefore, DTC
believes that the proposed rule change would not favor or disadvantage
any Participant.
(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 will be
publicly filed 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#e2969083868b8c85838c868f839089879691a2918781cc858d94"><span class="__cf_email__" data-cfemail="43373122272a2d24222d272e223128263730033026206d242c35">[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 \13\ and paragraph (f) of Rule 19b-4
thereunder.\14\ 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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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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#e795928b82ca84888a8a82899394a7948284c9808891"><span class="__cf_email__" data-cfemail="2654534a430b45494b4b434852556655434508414950">[email protected]</span></a>. Please include
File Number SR-DTC-2025-018 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-2025-018. 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 filing will be available for inspection and
copying at the principal office of DTC and on DTCC's website (<a href="https://www.dtcc.com/legal/sec-rule-filings.aspx">https://www.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-2025-018 and should be submitted on or
before December 29, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-22146 Filed 12-5-25; 8:45 am]
BILLING CODE 8011-01-P
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