[Federal Register Volume 62, Number 37 (Tuesday, February 25, 1997)]
[Notices]
[Pages 8479-8482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4608]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38305; File No. SR-Philadep-96-23]
Self-Regulatory Organizations; The Philadelphia Depository Trust
Company; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change to Consolidate and Restate Its Fee Schedule
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 23, 1996, the
Philadelphia Depository Trust Company (``Philadep'') 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 Philadep. 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).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The purpose of the proposed rule change is to consolidate and
restate Philadep's schedule of fees and charges (Exhibit A).
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Philadep included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule changes. The
text of these statements may be examined at the places specified in
Item IV below. Philadep 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 Philadep.
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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 consolidate and
restate
[[Page 8480]]
Philadep's schedule of fees and charges. This filing is being made in
accordance with Philadep's policy to annually file a comprehensive
schedule of all existing fees and charges. Philadep also is revising
certain fees associated with the stock loan program.
Additionally, Philadep is implementing a 3\1/2\% surcharge based on
service fee revenues and pass-through charges to recover costs
associated with making Philadep's system Year 2000 compliant. The
surcharge will be billed and collected as part of routine monthly
invoicing. Philadep currently estimates that Year 2000 costs will be
recovered in three to four years. Philadep will evaluate surcharge
revenues annually and will recommend to its Board of Directors any
modifications that may become necessary, including the removal of the
surcharge.
Philadep believes the proposed rule change is consistent with
Section 17A of the Act and the rules and regulations thereunder because
the proposal provides for the equitable allocations of reasonable dues,
fees, and other charges among participants.
(B) Self-Regulatory Organization's Statement on Burden on Competition
Philadep does not believe the proposed rule change will impose a
burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received with respect
to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change has become effective pursuant to Sections
19(b)(3)(A)(ii) \3\ of the Act and pursuant to Rule 19b-4(e)(2) \4\
promulgated thereunder because the proposal establishes a due, fee, or
other charge. 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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\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(e)(2).
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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 Room, 450 Fifth Street, N.W., Washington,
D.C. 20549. Copies of such filing will also be available for inspection
and copying at the principal office of Philadep. All submissions should
refer to File No. SR-Philadep-96-23 and should be submitted by March
18, 1997.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12)
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Margaret H. McFarland,
Deputy Secretary.
Exhibit A--SR-PHILADEP-96-23
(Deleted text bracketed, new text italicized)
Philadelphia Depository Trust Company Consolidated Restatement of Fees
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Service Fee
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1. Account Fees:
a. General Maintenance Fee......... $400.00 per month with account
activity.
$200.00 per month for accounts
with less than $10.00 of
depository activity.
b. Pledge Bank Fee................. $100.00 per month.
c. Manual Interface Fee............ $150.00 per month in addition
to the general maintenance
fee.
d. Bearer Municipal Bonds.......... $200.00 per month in addition
to the general maintenance
fee.
$260.00 per month for bearer
bond account only.
2. Custody Fees:
a. Registered Securities........... Base fee of $0.50 per issue,
per month.
Plus for each 100 shares or
$4,000.00 in bonds:
0-1 Million Shares $0.01.
1-5 Million Shares $0.005.
Over 5 Million Shares $0.0025.
Additional $0.50 fee per issue
if Philadep eligible only, per
month.
b. Bearer Municipal Bonds.......... Base fee of $1.45 per issue,
per month.
Plus for each $1,000 of par
value:
$0-$0.5 Billion $0.010.
$0.5-$1.0 Billion $0.007.
More than $1 Billion $0.005.
3. Deposit Fees:
a. Registered Securities........... $1.60 per deposit.*
b. Bearer Municipal Bonds.......... $8.00 per deposit.
[[Page 8481]]
4. Deposit Reject Fees:
a. Registered Securities........... No charge if total deposit
rejects are less than 1% of
total deposits for the month.
Charge of $10.00 per reject if
more than 1%.
b. Bearer Municipal Bonds.......... $10.00 per reject.
5. Legal Deposits...................... Processing fees are based on
monthly deposit volume:
Volume Level Per Deposit.
1-300--$8.50.
301-3000--$3.50.
3001 and over $2.75 flat fee
for all legal deposits.
No charge for deposit rejects.
Transfer agent charges will be
passed through to the
Participant on an item for
item basis.
6. Withdrawals:
a. Registered Securities........... $2.60 per manual (paper)
transfer.*
$1.65 per computer to computer
transfer.*
$2.60 per terminal originated
transfer.*
$25.00 per rush transfer.
$2.00 per cancelled transfer.
b. By Certificate.................. $22.95 per urgent certificate
withdrawal (same-day or next-
day).*
7. Customer Name Mailing:
a. Full Service.................... $0.65 per transfer, plus
appropriate transfer
withdrawal charge (fee does
not include postage and
delivery valuation charges).
b. Interdepository................. $0.75 per transfer, for
securities delivered
interdepository plus
appropriate transfer
withdrawal charge (fee does
not include postage and
delivery valuation charges).
c. Transmittal Messages............ $.10 per transmittal
8. Certificate Fees.................... $5.75 deposits.
$7.50 transfers.
9. Accommodation Transfers and $5.00 per request, plus
Ironclads. applicable transfer agent
fees.
10. MDO Movements:
a. Automated Bookentry, Delivery/ $0.75 per movement.
Receive.
b. Manual Bookentry, Delivery/ $1.50 per movement.
Receive.
c. Automatic Bookentry, $0.50 per CUSIP (daily
Interdepository, Deliveries. deliveries).
$0.55 per CUSIP (weekly
deliveries).
$0.60 per CUSIP (bi-weekly
deliveries).
$0.65 per CUSIP (monthly
deliveries).
d. Bearer Municipal Bonds, $0.94 per movement.
Automated or Manual.
11. CNS/PHILADEP Movements............. $0.20 per movement.
12. Underwritings...................... $400.00 plus $3.00 per million
(plus applicable activity
charges).
13. Pledge Fees:
a. Bank loan pledge or release..... $0.35 each per line item to
broker and bank.
b. OCC pledge or release........... $0.35 per line item.
c. SCCP margin pledge (no charge $0.10 per line item.
for release).
14. Dividend and Interest Payments..... $1.50 per cash line item;
$10.00 per stock dividend
payment.
15. Reorganization Fees:
a. Mandatory Exchanges............. $23.00 per position.
b. Voluntary Offers................ $30.00 per instruction received
before cut-off.
$50.00 per instruction received
after cut-off, with
authorization.
c. Redemptions: Stocks, Corporate $25.00 per position.
Bonds, Registered Municipal Bonds,
others.
d. Post Corporate Actions.......... $20.00 per item (plus costs).
16. Combined Legal Deposits and Letters $6.25 per item (one legal
of Correction (Ironclads). deposit and one letter of
correction is defined as one
item).
17. Research Fees:
a. Per photocopy of records........ $4.00.
b. Per microfiche copy............. $4.00.
c. Items less than 90 days old..... No charge.
d. Items 1 year old or less........ $15.00 per hour.
e. Items over 1 year old........... $15.00 per hour, $25.00
minimum, plus archive
retrieval costs.
18. Reports on Microfiche.............. $1.25 per page.
19. Eligibility Book................... $35.00 per book.
20. Stock Loan Program:
Interest charge to lender.......... Percentage of [bank broker call
rate] federal funds rate (fee
will be waived if less than
$500 per month).
21. National Institutional Delivery
System (NIDS):
a. Confirms........................ $0.40 per confirm.
b. For each unaffirmed trade $0.09 to broker.
reported.
c. For each eligible trade reported $0.09 to broker and clearing
agent.
d. For each ineligible trade $0.09 to broker and clearing
reported. agent.
e. Automated Settlement............ $0.26 per receive and per
delivery to broker and
clearing agent.
[[Page 8482]]
22. Philadep Discounts: Participants
may select one of the following
discount plans (the greater discount
will apply)
a. Volume.......................... 5% off Philadep charges for
participants with 10,001 to
15,000 trades per month.
An additional 5% off Philadep
charges for participants with
15,001 to 30,000 trades per
month.
An additional 5% off Philadep
charges for participants with
30,001 to 45,000 trades per
month.
An additional 5% off Philadep
charges for participants with
45,001 or more trades per
month.
b. Automated Deposit Reporting $0.40 per deposit for
Service (ADRS). participants utilizing
Philadep ADRS and CNM
services.
23. Computer Transmission/Tapes:
a. Eligibility Files:
1. Daily Update................ $50.00 per month.
2. Weekly Full File............ $200.00 per month.
3. Monthly or on Request....... $75.00 each request.
b. Bookkeeping Positions:
1. Daily....................... $150.00 per month.
2. Weekly...................... $100.00 per month.
3. Monthly or on Request....... $50.00 each request.
c. Activity:
1. Daily....................... $150.00 per month.
d. Bookkeeping plus Activity:
1. Daily....................... $250.00 per month.
2. Weekly...................... $200.00 per month.
e. Cash Settlement (fee includes
both dividends and
reorganizations; transmissions are
separate):
1. Daily....................... $100.00 per month.
f. Record Date Positions:
1. Daily....................... $100.00 per month.
g. Status of Withdrawals by
Transfer:
1. Daily....................... $100.00 per month.
24. Philanet Terminal:
a. Dedicated Line.................. $250.00 per month.
b. Dial-up Line.................... $150.00 per month.
c. Installation.................... $600.00.
d. Usage........................... No Charge.
25. Position Listings
a. General Fees.................... $45.00--per individual request
(per date, per CUSIP) (plus
costs).
$360.00 annually--monthly basis
(plus costs).
$1,300.00 annually--weekly
basis (plus costs).
b. Municipal Bonds Quantity 1st 100 CUSIPs--$20 per CUSIP.
Discount \1\ (multiple CUSIP 2nd 100 CUSIPs--$15 per CUSIP.
requests for the same issuer and 3rd 100 CUSIPs--$10 per CUSIP.
for the same date). In excess of 300 CUSIPs--$7.50.
26. Direct Registration System:
a. Limited Participants:
1. Accountholder Fee........... $225.00 per month.
2. Deliver Order Transaction $0.45 per transaction.
Processing Fee.
b. Participants:
1. Deliver Order Transaction $0.45 per transaction.
Processing Fee.
2. Transfer Agent Fee.......... $0.55 for mailing and handling.
27. Year 2000 System Change Surcharge.. Participants monthly fee
billings (which include pass-
through charges) will include
a 3\1/2\% surcharge to offset
costs to make Philadep systems
Year 2000 compliant. The
surcharge will be removed by
Philadep's Board of Directors
once such costs are fully
offset by revenues collected
from the surcharge.
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* Transfer and deposit activity subject to pass-through charges.
\1\ Requests made pursuant to this discount may take ten or more
business days to be reached and sent.
[FR Doc. 97-4608 Filed 2-24-97; 8:45 am]
BILLING CODE 8010-01-M
