[Federal Register Volume 61, Number 213 (Friday, November 1, 1996)]
[Notices]
[Pages 56588-56590]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28008]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37864; File No. SR-DTC-96-16]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Fees and Charges
October 24, 1996.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on September 24, 1996, 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
primarily by DTC. The Commission is publishing this notice to solicit
comments from interested persons on the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change revises DTC's Service Fee Schedule, which
is attached as Exhibit 1.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, DTC included statements
concerning
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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.
DTC has prepared summaries, set forth in sections (A), (B), and (C)
below, of the most significant aspects of such statements.\2\
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\2\ The Commission has modified the text of the summaries
prepared by DTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to revise the fees
associated with the Notice of Order Execution (``NOE''), the Institute
Instruction (``II''), and Standing Instructions Database (``SID'')
features of DTC's Institutional Delivery (``ID'') System. DTC
continually strives to align service fees with estimated service costs
and these revisions are part of that effort. Under the proposed rule
change, the fees for NOEs and IIs will be billed to broker-dealers
because these instructions facilitate the communication of execution
and allocation details between broker-dealers and their institutional
clients. The revised fee structure for SID is similar to the fee
structure for ID confirmations which allocate the cost of the
institution's copy to the bank and/or broker-dealer.
DTC is not currently assessing fees for the use of NOEs and IIs
because these services currently are offered to participants and other
parties as a pilot program.\3\ However, DTC intends to begin assessing
fees for NOEs and IIs as of October 1, 1996.\4\ Participants and other
users of SID will be subject to the fee revisions as of October 1,
1996.
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\3\ Although DTC offers NOEs and IIs to its participants
pursuant to a DTC pilot program, the Commission previously has fully
approved these services. Securities Exchange Act Release No. 34119
(June 10, 1994) 59 FR 31660 [File No. SR-DTC-94-04] (order approving
proposed rule change) Securities Exchange Act Release No. 35736 (May
18, 1995) 60 FR 27577 [File No. SR-DTC-95-08] (order approving
proposed rule change).
\4\ The Commission previously approved fees for the NOE and II
services in DTC's 1995 fee schedule, but DTC has not assessed its
participants for these services. Securities Exchange Act Release No.
35736 (May 18, 1995) 60 FR 27577 [File No. SR-DTC-95-08] (order
approving proposed rule change).
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DTC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \5\ and the rules and
regulations thereunder because it provides for the equitable allocation
of dues, fees, and other charges among DTC's participants and other
parties who use DTC's ID System.
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\5\ 15 U.S.C. 78q-1 (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
DTC does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purpose of the Act.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
No comments on the proposed rule change were solicited or 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)(ii) \6\ of the Act and pursuant to Rule 19b-4(e)(2) \7\
promulgated thereunder because the proposal establishes or changes a
due, fee, or other change imposed by DTC. At any time within sixty days
of the filing of such rule change, the Commission may summarily
abrogate 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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\6\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
\7\ 17 CFR 240.19b-4(e)(2) (1996).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
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 inspection and copying in the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing also will be available
for inspection and copying at the principal office of DTC. All
submissions should refer to File No. SR-STC-96-16 and should be
submitted by November 22, 1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12) (1996).
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Margaret H. McFarland,
Deputy Secretary.
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[GRAPHIC] [TIFF OMITTED] TN01NO96.000
[FR Doc. 96-28008 Filed 10-31-96; 8:45 am]
BILLING CODE 8010-01-C
