8478 Federal Register / Vol. 62, No. 37 / Tuesday, February 25, 1997 / Notices

1 15 U.S.C. 78s(b)(1) (1988).

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

Below is the text of the proposed rule

change. Proposed new language is

italicized.

2280. Investor Education and Protection

(a) Each member shall, with a

frequency of not less than once every

calendar year, provide in writing to each

customer the following items of

information.

(1) NASD Regulation Public Disclosure

Program Hotline Number

(2) NASD Regulation Web Site Address

(3) A statement as to the availability to

the customer of an investor

brochure that includes information

describing the Public Disclosure

Program

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the commission, the

NASD 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. The NASD has

prepared summaries, set forth in

Sections A, B, and C below, of the most

significant aspects of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

During 1995, at the request of the

Honorable Edward J. Markey, the

General Accounting Office (‘‘GAO’’)

undertook a review of the effectiveness

of the NASD’s toll-free telephone

information service used to disseminate

information under the NASD Regulation

Public Disclosure Program (‘‘PDP’’). In

July 1996, the General Accounting

Office issued a report of its review of the

PDP. The report included a

recommendation that NASD Regulation

publicize and educate investors about

the availability of information through

the NASD Regulation PDP. Specifically,

the report recommended that NASD

Regulation:

[E]xplore other ways of publicizing

the hotline to a wider audience of

investors, such as including the hotline

number on account-opening documents

or account statements, making

disciplinary-related information directly

available to investors through the

Internet.

The Proposed amendment in new

paragraph 2280(a) would require each

member to provide to each customer, at

least once annually on a written

statement, the 800 telephone number for

the PDP, the NASD Regulation Web Site

Address, and the availability of an

investor brochure that includes

information describing the PDP. This

proposal gives NASD members the

flexibility to determine what kind of

written statement is to be used. Some

members may elect to include this

information on customer account

statements and some may elect to use

another kind of publication.

The NASD believes that the proposed

rule change is consistent with the

provision of Sections 15A(b)(6) and

15A(i) of the Act in that the requirement

that firms publish on a written

statement to existing customer accounts,

as least annually, the availability of

information through the PDP is an

important element in promoting the

availability of the PDP information to

investors.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The NASD does not believe that the

proposed rule change will result in any

burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act, as amended.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participant, or Others

Written comments were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

At any time within 60 days of the

filing of a rule change pursuant to

Section 19(b)(3)(A) of the Act, the

Commission may summarily abrogate

the 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.

Within 35 days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

90 days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so finding or

(ii) as to which the self-regulatory

organization consents, the Commission

will:

A. by order approve such proposed

rule change, or

B. institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning SR–NASD–97–

10. Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

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

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the NASD. All

submissions should refer to the file

number in the caption above and should

be submitted by March 18, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority, 17 CFR 200.30–3(a)(12).

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–4610 Filed 2–24–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38303; File No. SR–PHIL–

96–18]

Self-Regulatory Organizations;

Philadelphia Depository Trust

Company; Notice of Filing and

Immediate Effectiveness of a Proposed

Rule Change Relating to the

Establishment of Fees Charged for

Direct Registration System

February 18, 1997.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

November 6, 1996, Philadelphia

Depository Trust Company (‘‘Philadep’’)

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

Philadep. The Commission is

publishing this notice to solicit
Federal Register / Vol. 62, No. 37 / Tuesday, February 25, 1997 / Notices 8479

2The Commission has modified parts of these

statements.

3 15 U.S.C. 78q–1(b)(3)(A) (1988).

4 17 CFR 240.19b–4(e)(2) (1994).

5 17 CFR 200.30–3(a)(12) (1994).

1 15 U.S.C. 78s(b)(1).

2The Commission has modified the text of the

summaries prepared by Philadep.

comments on the proposed rule change

from interested persons.

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 establish Philadep’s fee

schedule for participants using direct

registration system (‘‘DRS’’) services.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

Philadep included statements

concerning the purpose of and statutory

basis for the proposed rule change. The

text of these statements may be

examined at the places specified in Item

IV below. Philadep has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.2

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 Philadep’s fee

schedule for DRS services. Philadep

proposes to enable its participants to

use Philadep’s processing environment

to account for certain investors’

purchases and sales of securities

according to the DRS procedures.

Philadep will establish a limited

participant category of participant

which will be charged the following

fees:

1. Limited Participant Accountholder

Fee—$225 per month

2. Deliver Order Transaction Processing

Fee—$.45 per transaction

Philadep participants receiving such a

DRS delivery also will be charged $.45

per transaction. In addition, when a

transfer agent mails a transaction advice

to the shareholder, the transfer agent’s

fee of $.55 for mailing and handling the

DRS transaction advice will be charged

back to the participant directly by

Philadep. Philadep will collect the

advice fees and will periodically remit

such fees to the transfer agent.

The proposed rule change complies

with Section 17A of the Act in

providing for equitable allocation of

reasonable dues, fees, and other charges

among participants.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

Philadep 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

Comments were neither solicited nor

received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing rule change

establishes or changes a due, fee, or

other charge imposed by Philadep, it

has become effective pursuant to

Section 19(b)(3)(A)(ii) of the Act 3 and

Rule 19b–4(e)(2) thereunder.4 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.

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. 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 will also be available for

inspection and copying at Philadep. All

submissions should refer to the File No.

SR–Phil–96–18 and should be

submitted by March 18, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–4530 Filed 2–24–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38305; File No. SR–

Philadep–96–23]

Self-Regulatory Organizations; The

Philadelphia Depository Trust

Company; Notice of Filing and

Immediate Effectiveness of Proposed

Rule Change to Consolidate and

Restate Its Fee Schedule

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 Philadelphia

Depository Trust Company (‘‘Philadep’’)

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

Philadep. The Commission is

publishing this notice to solicit

comments on the proposed rule change

from interested persons.

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

Philadep’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,

Philadep 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.

Philadep has prepared summaries, set

forth in sections (A), (B), and (C) below,

of the most significant aspects of such

statements.2

(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