[Federal Register Volume 60, Number 100 (Wednesday, May 24, 1995)]
[Notices]
[Pages 27577-27578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12699]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35736; File No. SR-DTC-95-08]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Fees Charged for Various Services
May 18, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on April 25, 1995, 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 on the proposed rule change from interested persons.
\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 purpose of the proposed rule change is to adjust DTC's fee
schedule for various services.\2\
\2\ The revised fee schedule is available for review in the
Annex to Exhibit A of File No. SR-DTC-95-08. The file is available
for review in the Commission's Public Reference Room and at the
principal office of DTC.
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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 that 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.\3\
\3\ 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, which will be effective
for services provided on and after May 1, 1995, is to adjust the fees
charged for various services to bring them closer to or to their
respective estimated service costs for 1995.
Continuing DTC's annual practice of aligning service fees with
estimated service costs, DTC's Board of Directors completed a review of
its unit service costs for 1995 and adjusted many DTC service fees
accordingly. The 1995 fee schedule has been set to yield $11.4 million
less in operating revenue on an annual basis than the 1994 fee schedule
would have yielded. This will mark the ninth consecutive year in which
DTC has not had to increase its overall schedule of service fees to
users. Moreover, for the fourth consecutive year a significant fee
reduction will be implemented.\4\
\4\ While some service fees were increased, others remained
unchanged or were decreased making the net result an overall
decrease in service fees. Telephone conversation between Piku
Thakkar, Attorney, DTC, and Margaret J. Robb, Attorney, Division of
Market Regulation, Commission (April 27, 1995).
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Section 17A(b)(3)(D) of the Act \5\ requires that the rules of a
clearing agency provide for the equitable allocation of reasonable
dues, fees, and other charges among its participants. DTC believes that
the proposed rule change is consistent with the requirements of Section
17A(b)(3)(D) of the Act because its new fee schedule allocates its fees
more equitably among its participants.
\5\ 15 U.S.C. 78q-1(b)(3)(D) (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 purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants, or Others
DTC informed participants and other users of its services of the
proposed fee [[Page 27578]] revisions by a memorandum dated March 10,
1995, entitled ``1995 Revisions of DTC Service Fees.'' Because
participants have supported cost-based fees in the past and because
overall the subject fee changes are modest, DTC believes that a formal
period for participant comment was not necessary this year.
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 Rule 19b-4(e)(2) \7\ thereunder
because the rule change establishes or changes a due, fee, or other
charge. 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.
\6\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
\7\ 17 CFR 240.19b-4(e)(2) (1994).
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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 DTC. All submissions should
refer to the File No. SR-DTC-95-08 and should be submitted by June 14,
1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
\8\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-12699 Filed 5-23-95; 8:45 am]
BILLING CODE 8010-01-M
