[Federal Register Volume 63, Number 161 (Thursday, August 20, 1998)]
[Notices]
[Pages 44666-44667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22364]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40323; File No. SR-DTC-98-14]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Fees and Charges
August 14, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 10, 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 on the proposed rule 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 proposed rule change establishes DTC's New York Window 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 the purpose of and basis for 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 establish a fee
schedule for the use of DTC's New York Window. The New York Window is a
physical securities processing service that DTC provides to its
participants. DTC implemented the service after the National Securities
Clearing Corporation (``NSCC'') discontinued its Direct Clearing
Service and New York Window Service.\3\ DTC's fee schedule for its New
York Window is based on NSCC's previous fee schedule for its New York
Window Service.
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\3\ On July 13, 1998, DTC began offering its New York Window,
and NSCC discontinued providing its Direct Clearing Service and New
York Window Service. Securities Exchange Act Release No. 40179 (July
8, 1998), 63 FR 38221 [File Nos. SR-DTC-98-09 and SR-NSCC-98-05].
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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 the parties who use DTC's New
York Window.
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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
DTC did not solicit any comments on 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 Section
19(b)(3)(A)(ii) of the Act \5\ and pursuant to Rule 19b-4(e)(2) \6\
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 the 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 persons 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-98-14 and should be
submitted by September 10, 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.
[[Page 44667]]
Exhibit 1.--New York Window Fee Schedule
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Proposed
Services Present fee fee Comments
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Physical Processing
Over the Window-Receives/
Deliveries:
1-50 Daily.................... None.............. $12.00 ...........................................
51-100 Daily.................. None.............. 10.00 ...........................................
101 And up Daily.............. None.............. 8.00 ...........................................
Branch Receives............... None.............. 3.50 W/SIC Validation.
Branch Receives............... None.............. 2.50 W/O Validation.
Envelope Settlement Service/
Receives:
1-100 Daily................... None.............. 6.00 ...........................................
101-150 Daily................. None.............. 5.00 ...........................................
151 And up Daily.............. None.............. 4.00 ...........................................
Envelope Settlement Services/ None.............. 6.00 ...........................................
Deliveries.
Foss/DSS-Receives/Deliveries None.............. 3.50 ...........................................
(Money Only).
Transfers..................... None.............. 15.00 ...........................................
Reoganizations (One Way)...... None.............. 15.00 ...........................................
Reorganizations (Two Way)..... None.............. 18.00 ...........................................
Underwritings (Coordinating None.............. 35.00 Man-Hour.
Distribution).
Special Handling None.............. 35.00 Man-Hour.
(Nontransaction Related
Support).
Custody (Per Cusip)........... None.............. 0.05 Business Day.
Return to Firm (Per Security). None.............. 0.10 ...........................................
Return to Firm (Per Trip)..... None.............. 12.00 ...........................................
Internal Cross-Receives/ None.............. 7.00 ...........................................
Deliveries.
Messenger Service None.............. 7.50 Hourly.
(Accommodation).
Accommodation Handling........ None.............. 3.50 ...........................................
Pass-Through Cost: Transfer None.............. (\1\) ...........................................
Fees/Postage/Etc.
Tri-Party (Internal).......... None.............. 7.00 Per Transaction.
Tri-Party (Internal).......... None.............. 1.00 Per Security.
Settlement Reconciliation..... None.............. 25.00 Per Day.
DTC Processing
DTC Receives...................... None.............. 3.00 Per Item.
DTC Delivers...................... None.............. 3.00 Per Item.
Fed Book Entry Processing
FED Book Entry Processing-Receives/ None.............. 3.50 ...........................................
Delivers.
Pass-Through Charges:
Receive....................... None.............. 3.50 Per Transaction (External).
Receive....................... None.............. 3.00 Per Transaction (Internal).
Deliver....................... None.............. 5.75 Per Transaction (External).
Deliver....................... None.............. 3.00 Per Transaction (Internal).
SEG Move...................... None.............. 1.50 Per Transaction.
Account Maintenance............... None.............. 560.00 Per Month.
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\1\ Cost.
[FR Doc. 98-22364 Filed 8-19-98; 8:45 am]
BILLING CODE 8010-01-M
