regulatory organizations; proposed rule changes: Depository Trust Co.,
[Federal Register: August 20, 1998 (Volume 63, Number 161)]
[Notices]
[Page 44666-44667]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20au98-99]
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'') filedwith 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.
\1\ 15 U.S.C. 78s(b)(1).
-
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.
-
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\
\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
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.
\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].
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.
\4\ 15 U.S.C. 78q-1.
(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.
-
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.
\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(e)(2).
-
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 filedwith 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\
\7\ 17 CFR 200.30-3(a)(12).
Margaret H. McFarland, Deputy Secretary.
[[Page 44667]]
Exhibit 1.--New York Window Fee Schedule
Proposed
Services
Present fee
fee
Comments
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.
\1\ Cost.
[FR Doc. 98-22364Filed8-19-98; 8:45 am]
BILLING CODE 8010-01-M
