Notice2026-06922
Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Corrections, Clarifications and Certain Other Changes to the DTC Rules and Procedures
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 10, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 69 (Friday, April 10, 2026)</title>
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[Federal Register Volume 91, Number 69 (Friday, April 10, 2026)]
[Notices]
[Pages 18497-18499]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06922]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105164; File No. SR-DTC-2026-004]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Make Corrections, Clarifications and Certain Other Changes to the DTC
Rules and Procedures
April 7, 2026.
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 31, 2026, 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
DTC proposes to make certain corrections, clarifications, and
harmonization changes to its Rules and Procedures due, in part, from a
review of DTC's Rules and Procedures \5\ with those of its two clearing
agency affiliates, National Securities Clearing Corporation (``NSCC'')
and Fixed Income Clearing Corporation (``FICC'') to improve
transparency and consistency across the three clearing agencies.
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\5\ Capitalized terms not defined herein are defined in the
Rules, By-Laws and Organization Certificate of DTC (``DTC Rules''),
the DTC Operational Arrangements (Necessary for Securities to Become
and Remain Eligible for DTC Services) (``OA''), the DTC Underwriting
Service Guide (``Underwriting Guide'') and Settlement Service Guide
(``Settlement Guide'') (collectively, ``DTC Procedures''), each
available at <a href="http://www.dtcc.com/legal/rules-and-procedures">www.dtcc.com/legal/rules-and-procedures</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
DTC proposes to make certain corrections, clarifications, and
harmonization changes to its Rule and Procedures due, in part, from a
review of DTC's Rules and Procedures with those of its two clearing
agency affiliates, National Securities Clearing Corporation (``NSCC'')
and Fixed Income Clearing Corporation (``FICC'') to improve
transparency and consistency across the three clearing agencies.
Accordingly, DTC proposes the below changes.
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DTC rules, DTC procedures,
OA, fee guide (``Rules'') Revision
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Rule 1 Definitions; Governing Add ``Officer of the Corporation'' as a
Law. defined term to mean, ``the Chairman of
the Board, President and Chief Executive
Officer, Managing Director, Executive
Director, Secretary, Assistant
Secretary, Treasurer, or Assistant
Treasurer of the Corporation.''
Add ``and Chief Executive Officer'' to
the term ``President'' in two places to
reflect the complete title.
Update the definition of ``Watch List''
to reflect an expanded scale used for
the Credit Risk Rating Matrix
(``CRRM''). The CRRM is currently based
on a scale of 1 through 7. The CRRM is
also currently calculated internally
using a more granular scale of 1 through
18 which corresponds to the current 1
through 7 scale (e.g., credit rating 6
on the current scale is equivalent to
credit ratings 12 and 13 on the more
granular scale). The changes would not
change how Participants are analyzed
with respect to the Watch List.
Add a comma after the word ``therein'' in
Section 4.
Rule 2 Participants and Replace ``the Participants Fund'' and
Pledgees. ``the Clearing Fund'' with ``any fund''
to clarify that DTC does not maintain a
clearing fund and that references to
funds are intended to apply to the
Participants Fund and its components, as
applicable.
Make grammatical correction adding
``any'' to the sentence.
Rule 15 Reports.............. Revise to reflect that financial reports
are delivered based on the fiscal year
of DTC.
Add additional specificity to be clear
that the Corporation will provide annual
audited U.S. GAAP financial statements
within 60 days of fiscal year-end and
quarterly unaudited statements within 30
days of the quarter-end.
Rule 21 Disciplinary Add ``and Chief Executive Officer'' to
Sanctions. ``President'' to reflect the complete
title of the President and Chief
Executive Officer.
[[Page 18498]]
Rule 23 Bills Rendered....... Revise the language in the Rule to
clarify the language and better align to
the current billing process.
Rule 27 Procedures........... Use defined term ``Officer of the
Corporation'' to name officers subject
to the delegation in the Rule.
Replace ``or any other'' with ``and any''
to clarify delegation authority.
Rule 28 Delegation........... Add ``and Chief Executive Officer'' to
``President'' to reflect the complete
title of the President and Chief
Executive Officer.
Rule 29 Captions............. Add ``or Procedures'' to reflect that
provisions relating to captions also
relate to Procedures.
Policy Statements On The Remove references to specific legal
Admission of Participants opinions to conform the policy to other
and Pledgee. clearing agency rulebooks. DTC no longer
requires an enforceability opinion for
certain Participants where
enforceability is addressed by an
applicable industry opinion, and DTC may
require additional legal opinions or
assurances that are not enumerated in
the policy.
Underwriting Guide........... Remove references to ``Letter of
Representation'' to align with a prior
rule change.\a\
Add quotations and parentheses to
(``PTS'') as a defined short form for
Participant Terminal System.
Add ``Participant Terminal System'' and a
footnote to describe the PTS function to
align with a prior rule change that
added the footnote but was mistakenly
removed in a subsequent filing that was
implemented prior to PTS
Decommission.\b\
OA........................... Correct section numbering.
Add quotations and parentheses to
(``PTS'') as a defined short form for
Participant Terminal System.
Add ``the Participant Terminal System''
and a footnote to describe the PTS
function to align with a prior rule
change that added the footnote but was
mistakenly removed in a subsequent
filing that was implemented prior to PTS
Decommission.\c\
Settlement Guide............. Remove ``control'' from the memo
segregation definition to align with a
prior rule change and existing usage of
the term.\d\
Guide to the DTC Fee Schedule Add ``and/or modifications'' to clarify
(``Fee Guide'') \e\. the fee description for low-volume
tender offers to reflect current
operational practice and promote billing
transparency.
Remove ``Other Services'' and ``Return to
customer'' because there is no
associated Fee ID. These errant rows
should have been removed as part of a
prior rule filing.\f\
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\a\ Securities Exchange Act Release No. 102841 (Apr. 11, 2025), 90 FR
16188 (Apr. 17, 2025) (SR-DTC-2025-005) (``Money Market Instruments
Modernization'').
\b\ Securities Exchange Act Release No. 104680 (Jan. 23, 2026), 91 FR
3755 (Jan. 28, 2026) (SR-DTC-2026-001) (``PTS Decommission'').
\c\ Id.
\d\ Securities Exchange Act Release No. 104039 (Sept. 24, 2025), 90 FR
46679 (Sept. 29, 2025) (SR-DTC-2025-014) (``Initial Public Offering
Tracking System'').
\e\ <a href="http://www.dtcc.com/-/media/Files/Downloads/legal/fee-guides/DTC-Fee-Schedule.pdf">www.dtcc.com/-/media/Files/Downloads/legal/fee-guides/DTC-Fee-Schedule.pdf</a>.
\f\ Securities Exchange Act Release No. 100532 (July 15, 2024), 89 FR
58829 (July 19, 2024) (SR-DTC-2024-005) (``DTC Fee Schedule'').
2. Statutory Basis
Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be designed to promote the prompt and accurate clearance and settlement
of securities transactions.\6\
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\6\ 15 U.S.C. 78q-1(b)(3)(F).
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DTC believes that the proposed changes to make certain corrections,
clarifications, and harmonization changes to the Rules are consistent
with Section 17(A)(b)(3)(F) of the Act \7\ because such changes would
enhance the clarity and transparency of the Rules and provide
consistency, where applicable, with equivalent rules of NSCC and FICC.
By enhancing the clarity and transparency of the Rules, the proposed
changes would allow Participants to more efficiently and effectively
conduct their business in accordance with the Rules, which DTC believes
would promote the prompt and accurate clearance and settlement of
securities transactions. As such, DTC believes that the proposed
changes would be consistent with Section 17A(b)(3)(F) of the Act.\8\
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\7\ Id.
\8\ Id.
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(B) Clearing Agency's Statement on Burden on Competition
DTC does not believe the proposed rule changes would impact
competition. The proposed rule changes described above would merely
enhance the clarity and transparency of the Rules and would not
significantly affect DTC's operations or the rights and obligations of
Participants. As such, DTC believes the proposed rule changes would not
have any impact 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, 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="http://www.sec.gov/rules-regulations/how-submit-comment">www.sec.gov/rules-regulations/how-submit-comment</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#681c1a090c01060f09060c05091a030d1c1b281b0d0b460f071e"><span class="__cf_email__" data-cfemail="c8bcbaa9aca1a6afa9a6aca5a9baa3adbcbb88bbadabe6afa7be">[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) of Rule 19b-4
thereunder.\10\ 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,
[[Page 18499]]
or otherwise in furtherance of the purposes of the Act. If the
Commission takes such action, the Commission will institute proceedings
to determine whether the proposed rule change should be approved or
disapproved.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f).
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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#bdcfc8d1d890ded2d0d0d8d3c9cefdced8de93dad2cb"><span class="__cf_email__" data-cfemail="9be9eef7feb6f8f4f6f6fef5efe8dbe8fef8b5fcf4ed">[email protected]</span></a>. Please include
File Number SR-DTC-2026-004 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-2026-004. 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 filing 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-2026-004 and should be submitted on or
before May 1, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-06922 Filed 4-9-26; 8:45 am]
BILLING CODE 8011-01-P
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