[Federal Register Volume 62, Number 188 (Monday, September 29, 1997)]
[Notices]
[Pages 50977-50978]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25692]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39114; File No. SR-DTC-97-15]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing of Proposed Rule Change Relating to the Coupon
Collection Service
September 22, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 15, 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 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 revises DTC's fee schedule for its coupon
collection service (``CCS''). DTC will give participants that use CCS a
discount of $0.25 per shell for any month in which the participant's
shell deposit volume is 6,250 or greater. If a participant's year-end
shell deposit volume is 75,000 or greater, DTC will rebate to the
participant the $0.25 per shell for any month(s) in that year for which
the participant did not receive a discount because its shell deposit
volume was less than 6,250.
In addition, DTC will charge participants $0.60 per shell received
without a valid CUSIP number. This additional fee is designed to serve
as an incentive to Participants to identify their shells properly. As
all of DTC's fees are reviewed on an annual basis, this surcharge will
be reevaluated each year, based on the proportion of shells that DTC
receives without a valid CUSIP number.
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\
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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
CCS provides participants with a method for the collection of
interest relating to coupons from municipal bearer bonds.\3\
Participants using CCS are required to deposit coupons in a standard
sealed envelope or ``shell'' each of which may contain no more than 200
coupons. Participants also must identify each shell properly, which
includes labeling each shell with a valid CUSIP number.\4\ After
verifying the contents of the shells, DTC credits the participants with
the interest due on the coupons contained in the shells.
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\3\ For a more detailed description of CCS, refer to Securities
Exchange Act Release No. 35750 (January 22, 1996), 61 FR 2852 [File
No. SR-DTC-95-18] (order approving proposed rule change).
\4\ The coupons contained in a shell must all be for the same
CUSIP number, series, and payable date.
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The purpose of the proposed rule change is to revise the fees
associated with CCS. DTC continually strives to align service fees with
estimated service costs and the subject revisions are part of that
effort.
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.
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\5\ 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
Not applicable.
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 \6\ and Rule 19b-4(e)(2) thereunder \7\
because the proposal establishes or changes a due, fee, or other charge
imposed by DTC.\8\ 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,
[[Page 50978]]
or otherwise in furtherance of the purposes of the Act.
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(e)(2).
\8\ DTC's rule filing originally was submitted for consideration
pursuant to Section 19(b)(2) of the Act. 15 U.s.C. 78s(b)(2).
However, DTC subsequently requested that the Commission consider the
rule filing pursuant to Rule 19(b)(3)(A) of the Act. Letter from
Larry Thompson, Senior Vice President and Deputy General Counsel,
DTC (September 22, 1997).
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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, DC 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, NW.,
Washington, DC 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-97-15 and should be submitted by
October 20, 1997.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-25692 Filed 9-26-97; 8:45 am]
BILLING CODE 8010-01-M
