[Federal Register Volume 60, Number 146 (Monday, July 31, 1995)]
[Notices]
[Pages 39037-39040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18702]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36013; File No. SR-PHILADEP-95-04]
Self-Regulatory Organizations; Philadelphia Depository Trust
Company; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fees and Charges
July 24, 1995.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on July 10, 1995, 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 from interested persons on the proposed rule
change.
\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
Philadep is filing the proposed rule change in order to revise,
consolidate, and restate its published schedule of fees and charges
(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, Philadep 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. Philadep has prepared summaries, set forth in sections
(A), (B), and (C) below, of the most significant aspects of such
statements.\2\
\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 revise, consolidate,
and restate Philadep's published schedule of fees and charges. It has
been nearly four years since Philadep filed a comprehensive fee
schedule. Philadep has adjusted the graduated Legal Deposit Fees to
reflect a new tier of volume related discounts which provides that
Philadep participants with monthly legal deposits of 2,501 to 3,000
will be charged a flat rate of $3.50 per deposit and that Philadep
participants having monthly legal deposits of 3,001 or more will be
charged at flat rate of $2.75 per deposit.\3\ Philadep believes these
fees will be highly competitive and will encourage current and
prospective Philadep participants to increase their use of this
service. Philadep also has consolidated and restated all other existing
fees and charges and hereafter annually will file a comprehensive
schedule of fees and charges.
\3\ Previously, Philadep participants were charged $3.50 for
every deposit over 2,500.
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The proposed rule change is consistent with the requirements of
Section 17A of the Act and the rules and regulations thereunder because
it provides for the equitable allocation of dues, fees, and other
charges among Philadep's participants.
(B) Self-Regulatory Organization's Statement on Burden on Competition
Philadep does not perceive any burdens on competition as a result
of the proposed rule change.
[[Page 39038]]
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received from Members, Participants or Others
A Philadep participant bulletin will notify participants of the fee
schedule changes and advise them to whom they may direct questions upon
receipt of the new fee schedule.
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) \4\ of the Act and pursuant to Rule 19b-4(e)(2) \5\
promulgated thereunder because the proposal establishes or changes a
due, fee, or other charge imposed by Philadep. 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.
\4\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
\5\ 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 NW., 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. Sec. 552, will be available for inspection and copying in
the Commission's Public Reference Section, 450 Fifth Street NW.,
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-95-04 and should be
submitted by August 21, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
\6\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
Exhibit 1
SR-Philadep-95-04
Philadelphia Depository Trust Company Consolidated Restatement of Fees \1\
Service Fee
1. Account fees:
a. General Maintenance Fee............................................................ $360.00 per month
with account
activity.
$150.00 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.
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
0-100........................ $8.50.
101-500...................... $6.00.
501-1,000.................... $5.50.
1001-1,700................... $5.00.
1701-2,500................... $4.50.
[2,501 and over.............. $3.50].
2,501-3,000.................. $3.50 flat fee for all legal
deposits.
3,001 and over............... $2.75 flat fee for all legal
deposits.
[[Page 39039]]
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.*
b. By Certificate..................................................................... $17.95 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)
8. Certificate fees....................................................................... $5.75 deposits.
$7.50 transfers.
9. Accommodation transfers and ironclads.................................................. $5.00 per request,
plus applicable
transfer agent
fees.
10. MDO movements:
a. Automated Bookentry Delivery/Receive............................................... $0.75 per movement.
b. Manual Bookentry Delivery/Receive.................................................. $1.50 per movement.
c. Automatic Bookentry Interdepository Deliveries..................................... $0.50 per CUSIP
(daily deliveries).
$0.55 per CUSIP
(weekly
deliveries).
$0.60 per CUSIP (bi-
weekly deliveries).
$0.65 per CUSIP
(monthly
deliveries).
c. Bearer Municipal Bonds Automated or Manual......................................... $0.94 per movement.
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 for release)......................................... $0.10 per line item.
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 Bonds, Registered Municipal Bonds, others........... $25.00 per position.
d. Post Corporate Actions............................................................. $17.50 per item
(plus costs).
16. Combined legal deposits and letters of correction (ironclads)......................... $6.25 per item (one
legal 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...................................................................... $8.00 per book.
20. Stock loan program--Interest charge to lender......................................... Percentage of bank
broker call rate.
21. National institutional delivery system (NIDS):
a. Confirms........................................................................... $0.40 per confirm.
b. For each unaffirmed trade reported................................................. $0.09 to broker.
c. For each eligible trade reported................................................... $0.09 to broker and
clearing agent.
d. For each ineligible trade reported................................................. $0.09 to broker and
clearing agent.
e. Automated Settlement............................................................... $0.26 per receive
and per delivery to
broker and clearing
agent.
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
45,00 trades per
month.
An additional 5% off
Philadep charges
for participants
with 45,001 or more
trades per month.
b. Automated Deposit Reporting Service (ADRS)......................................... $0.40 per deposit
for 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.
[[Page 39040]]
3. Monthly or on Request.......................................................... $50.00 each request.
c. Activity:
b. Bookkeeping Positions:
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..................................................................... $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).
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\1\ June 29, 1995 Board resolved amendments denoted--deletions bracketed, additions italicized.
*Transfer and deposit activity subject to pass-through costs.
[FR Doc. 95-18702 Filed 7-28-95; 8:45 am]
BILLING CODE 8010-01-M
