[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]


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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.
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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 
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\
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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

    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\
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    \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).
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    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.
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    \5\ 15 U.S.C. 78q-1 (1988).
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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

    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.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 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. 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\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.

[[Page 44997]]



              Exhibit 1.--Transfer Agent Drop Service Fees              
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         Type of service              Present fee           New fee     
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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
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\1\ Depending on number of issues and activity.                         

[FR Doc. 97-22525 Filed 8-22-97; 8:45 am]
BILLING CODE 8010-01-M