[Federal Register Volume 62, Number 37 (Tuesday, February 25, 1997)]
[Notices]
[Pages 8485-8487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4609]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38306; File No. SR-SCCP-96-13]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change to Consolidate and Restate its Fee Schedule

February 19, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 23, 1996, the 
Stock Clearing Corporation of Philadelphia (``SCCP'') 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 SCCP. The Commission is publishing this 
notice to solicit comments on the proposed rule change 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 purpose of the proposed rule change is to consolidate and 
restate SCCP's schedule of fees and charges (Exhibit A).

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, SCCP included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule changes. The 
text of these statements may be examined at the places specified in 
Item IV below. SCCP 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 SCCP.
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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 consolidate and 
restate SCCP's schedule of fees and charges. SCCP proposes to revise 
its volume discounts applicable to trade recording fees and value 
charges for PACE CNS trades settling at SCCP. SCCP currently provides a 
flat $0.77 per side discount for 4,000 or more trades per month. SCCP's 
discounts have been revised into the following schedule: $0.77 per side 
for 4,000 to 6,000 trades per month; $0.55 per side for 6,001 to 8,000 
trades per month; and $0.35 per side for over 8,000 trades per 
month.\3\
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    \3\ This is not a graduated rate schedule. Once a volume 
threshold is reached, all trades receive such volume discount rate.
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    Additionally, SCCP proposes to consolidate and restate existing 
fees and charges. This filing is being made in accordance with SCCP's 
policy to annually file a comprehensive schedule of all existing fees 
and charges.
    SCCP believes the proposed rule change is consistent with Section 
17A of the Act \4\ and the rules and regulations thereunder because it 
will provide for the equitable allocation of dues, fees, and other 
charges among participants.
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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

    SCCP does not believe the proposed rule change will impose a burden 
on competition.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received with respect 
to 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 Sections 
19(b)(3)(A)(ii) \5\ of the Act and pursuant to Rule 19b-4(e)(2) \6\ 
promulgated thereunder because the proposal establishes a due, fee, or 
other charge. 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 8486]]

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. 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 Room, 450 Fifth Street, N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office of SCCP. All 
submissions should refer to File No. SR-SCCP-96-13 and should be 
submitted by March 18, 1997.

    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.

Exhibit A--SR-SCCP-96-13

[Deleted text bracketed, new text italicized]

                  Stock Clearing Corporation of Philadelphia, Consolidated Restatement of Fees                  
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                  Service                                              Fee                                      
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1. Account Fees:                                                                                                
    a. Maintenance Fee.....................  $150.00 per month (20 or fewer trades per month)                   
                                             $250.00 per month (over 20 trades per month)                       
                                             $650.00 per month (specialist)                                     
    b. Additional Suffix...................  $32.00 per month per suffix                                        
2. Trade Recording Fees:                                                                                        
    a. Regular Trades......................  $0.47 per side                                                     
    b. PACE Trades.........................  $0.30 per side                                                     
    c. Municipal Bonds Trades..............  $1.00 per compared side                                            
    d. Yellow Tickets (between two           $0.47 per side                                                     
     accounts).                                                                                                 
    e. Basket Trades.......................  0.60 per side for 1-1,000 trades per month                         
                                             0.54 per side for 1,001-3,000 trades per month                     
                                             0.48 per side for 3,001-5,000 trades per month                     
                                             0.40 per side for more than 5,000 trades per month                 
3. Value Fees:                                                                                                  
    a. CNS Accounts........................  0.05 per $1,000 of contract value                                  
    b. Margin Accounts.....................  0.035 per $1,000 of contract value                                 
    c. PACE Trades.........................  None                                                               
    d. Maximum Value Charge................  25.00 per trade per side                                           
4. Volume Discounts (Trade Recording Fees                                                                       
 and Value Charges):                                                                                            
    a. CNS Trades settling at SCCP           [$0.77 per side maximum with 4,000 or more PACE trades             
     (utilizing PACE).                        per month]                                                        
                                             $0.77 per side--4000-6000 PACE trades per month**                  
                                             $0.55 per side--6001-8000 PACE trades per month**                  
                                             $0.35 per side--over 8000 PACE trades per month**                  
5. Specialist Discounts for Trades Cleared                                                                      
 Through a SCCP Margin Account:                                                                                 
                                                      Volume level (including PACE trades)             Discount 
                                                                                                       per side 
                                             2,501 to 10,000 sides per month.......................         0.05
                                             10,001 to 15,000 sides per month......................         0.10
                                             15,001 to 20,000 sides per month......................         0.15
                                             20,001 to 25,000 sides per month......................         0.20
                                             25,001 to 30,000 sides per month......................         0.25
                                             30,001 to 35,000 sides per month......................         0.30
                                             35,001 to 40,000 sides per month......................         0.35
                                             40,001 and over.......................................         0.40
6. Municipal Bond Margin Service...........  $500.00 per month with activity                                    
7. Treasury Transactions:                                                                                       
    a. Per trade transaction...............  $40.00 (plus pass through costs)                                   
    b. Per withdrawal--Bearer..............  $15.00                                                             
    c. Per withdrawal--Registered..........  $10.00                                                             
    d. Per transfer........................  $10.00                                                             
8. Margin Account Pledge Fees..............  $1.00                                                              
9. New York Office Transactions:                                                                                
    a. Over the Window Delivery Clearing     $5.00                                                              
     House.                                                                                                     
    b. Over the Window Delivery Paid or      $5.00                                                              
     Suspended.                                                                                                 

[[Page 8487]]

                                                                                                                
    c. Over the Window Delivery ``Don't      $10.00                                                             
     Know''.                                                                                                    
    d. Over the Window Receive Clearing      $6.00                                                              
     House.                                                                                                     
    e. Dividend Settlement Service.........  $5.00                                                              
    f. Envelope Settlement Service/          $5.00                                                              
     InterCity/Funds Only Settlement                                                                            
     Service.                                                                                                   
    g. Over the Window Delivery Fed Funds..  $22.50                                                             
    h. Over the Window Receive Fed Funds...  $22.50                                                             
    i. Syndicate Re-Delivery-Paid..........  $14.00                                                             
    j. Syndicate Re-Delivery ``Don't Know''  $17.00                                                             
    k. Securities Hold.....................  $5.00                                                              
    l. Reorganization Pick-up..............  $5.00                                                              
    m. Reorganization Reject...............  $10.00                                                             
    n. Reorganization Agent Delivery.......  $15.00                                                             
    o. Syndicate Pick-Up...................  $17.00                                                             
    p. Miscellaneous.......................  $5.00                                                              
    q. Deliveries to New Jersey............  $12.00 per item (plus costs)                                       
10. Margin Account Interest:                                                                                    
    Charge on net debit balances...........  \1/2\% above bank broker call rate                                 
11. Research Fees:                                                                                              
    a. Per photocopy of input forms........  $4.00                                                              
    b. Per microfiche copy.................  $4.00                                                              
    c. Items less than 90 days old.........  No charge                                                          
    d. Items 1 year old or less............  $15.00 per hour                                                    
    e. Items over 1 year old...............  $15.00 per hour, $25.00 minimum, plus archive                      
                                              retrieval costs                                                   
12. Computer Transmission/Tapes:                                                                                
    a. Purchase and Sale, Trade Data         $100.00 per month                                                  
     (daily).                                                                                                   
    b. Purchase and Sale, Trades plus T+2    $150.00 per month                                                  
     Settling Trades (daily).                                                                                   
    c. Miscellaneous.......................  $150.00 per month; includes 6 tapes/transmission                   
                                             $25.00 per additional tape/transmission                            
13. Lost and Stolen Securities Program.....  $100.00 per year, $2.50 per inquiry                                
14. P&L Statement Charges..................  $0.01 per line                                                     
15. Buy-ins................................  $5.00 per items submitted                                          
16. Member to Member Envelope Service......  $5.00 per envelope (charged to sender), plus carrier               
                                              costs                                                             
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**This is not a graduated rate schedule. Once this volume threshold is reached, all trades from the first trade 
  receive such volume discount rate.                                                                            

[FR Doc. 97-4609 Filed 2-24-97; 8:45 am]
BILLING CODE 8010-01-M