[Federal Register Volume 63, Number 90 (Monday, May 11, 1998)]
[Notices]
[Page 25890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12350]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39953; File No. SR-DTC-98-06]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Fees and Charges
May 4, 1998.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on April 16, 1998, 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).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The proposed rule change establishes fees for the matching feature
of DTC's Institutional Delivery (ID) system.
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 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
Items 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 matching feature is an enhancement to the current confirmation
and affirmation processing in the ID system.\3\ The proposed fees are
designed to recover DTC's estimated service costs and will be effective
for services provided after April 30, 1998. Under the proposed rule
change, DTC will charge $0.08 for each matched or unmatched
confirmation in addition to the regular confirmation fees. DTC will
charge this fee to the following parties: (1) To a clearing broker for
each matched or unmatched confirmation to a broker, clearing broker, or
interested party; (2) to the clearing agent for each matched or
unmatched confirmation to the ID agent or clearing agent; and (3) to
the clearing agent or clearing broker for each matched or unmatched
confirmation to an institution that either agrees to pay for it or
$0.04 when the parties agree to split the fee.
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\3\ For a description of the matching feature of the ID System,
refer to Securities Exchange Act Release No. 39832 (April 6, 1998),
63 FR 18062 [File No. SR-DTC-95-23] (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 \4\ 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 that use DTC's ID service.
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\4\ 15 U.S.C. 78q-1.
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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 purposes 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) \5\ of the Act and Rule 19b-4(e)(2) \6\ promulgated
thereunder because the proposal establishes or changes a due, fee, or
other charge imposed by DTC. At any time within sixty days of the
filing of such proposed 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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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(e)(2).
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IV. Solicitation of Comments
Interested person are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. 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-DTC-98-06 and should be
submitted by June 1, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-12350 Filed 5-8-98; 8:45 am]
BILLING CODE 8010-01-M
