[Federal Register Volume 62, Number 164 (Monday, August 25, 1997)]
[Notices]
[Pages 44995-44997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22525]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38949; File No. SR-DTC-97-11]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Fees and Charges
August 19, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 19, 1997, 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
[[Page 44996]]
Commission is publishing this notice to solicit comments from
interested persons on the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The proposed rule change revises DTC's fee schedule for its
transfer agent drop service (``TAD service''), 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 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. DTC 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 DTC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
DTC's TAD service provides transfer agents located outside of New
York City with a central location within Manhattan for the receipt of
securities from banks, broker-dealers, depositories, and
shareholders.\3\ Until 1996, a similar service was offered by the New
York office of the Midwest Clearing Corporation (``MCC'').\4\
---------------------------------------------------------------------------
\3\ For a complete description of the TAD service, refer to
Securities Exchange Act Release No. 37562 (August 13, 1996), 61 FR
43283 [File No. SR-DTC-96-09] (order approving proposed rule
change.)
\4\ MCC withdrew from the clearing and depository business in
1996. Securities Exchange Act Release No. 36684 (January 5, 1996),
61 FR 1195 [File Nos. SR-CHX-95-27, SR-DTC-95-22, SR-MCC-95-04, SR-
MSTC-95-10, SR-NSCC-95-15] (order approving MCC's withdrawal from
the clearance and settlement business).
---------------------------------------------------------------------------
The purpose of the proposed rule change is to revise the fees
associated with DTC's TAD service. DTC continually strives to align
service fees with estimated service costs, and the subject revisions
are part of that effort. DTC currently charges the users of its TAD
service the same fees that MCC had charged since 1994 for its drop
services.
DTC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \5\ 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 who use DTC's TAD service.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1 (1988).
---------------------------------------------------------------------------
(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) \6\ of the Act and pursuant to Rule 19b-4(e)(2) \7\
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 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).
\7\ 17 CFR 240.19b-4(e)(2).
---------------------------------------------------------------------------
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. Sec. 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-97-11 and should be
submitted by September 15, 1997.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[[Page 44997]]
Exhibit 1.--Transfer Agent Drop Service Fees
------------------------------------------------------------------------
Type of service Present fee New fee
------------------------------------------------------------------------
Monthly Service Charge.......... $250.00 $500.00
Window Tickets Issued........... .75 1.00
Microfilming (Per Hour)......... 14.50 15.00
Microfilming Securities (Per
Roll).......................... 15.75 16.00
Dividend Reinvestment Plan
Voluntary Contributions (Window
Ticket Per Check).............. .75 1.00
Wire Transfer Service (Window
Ticket Per Check).............. .75 1.00
Check Collection (Window Ticket
Per Check)..................... .75 1.00
Routing Envelopes (Window Ticket
Per Check)..................... .75 1.00
Daily Valuation (Daily Flat Fee) 175.00 \1\ 25.00 to
175.00
Midnight Closings (Per
Occurrence).................... 1,000.00 1,000.00
------------------------------------------------------------------------
\1\ Depending on number of issues and activity.
[FR Doc. 97-22525 Filed 8-22-97; 8:45 am]
BILLING CODE 8010-01-M
