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
8480 Federal Register / Vol. 62, No. 37 / Tuesday, February 25, 1997 / Notices

3 15 U.S.C. 78s(b)(3)(A)(ii).

4 17 CFR 240.19b–4(e)(2).

5 17 CFR 200.30–3(a)(12)

Philadep’s schedule of fees and charges.

This filing is being made in accordance

with Philadep’s policy to annually file

a comprehensive schedule of all existing

fees and charges. Philadep also is

revising certain fees associated with the

stock loan program.

Additionally, Philadep is

implementing a 31⁄2% surcharge based

on service fee revenues and passthrough charges to recover costs

associated with making Philadep’s

system Year 2000 compliant. The

surcharge will be billed and collected as

part of routine monthly invoicing.

Philadep currently estimates that Year

2000 costs will be recovered in three to

four years. Philadep will evaluate

surcharge revenues annually and will

recommend to its Board of Directors any

modifications that may become

necessary, including the removal of the

surcharge.

Philadep believes the proposed rule

change is consistent with Section 17A of

the Act and the rules and regulations

thereunder because the proposal

provides for the equitable allocations of

reasonable dues, fees, and other charges

among participants.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

Philadep 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) 3 of the Act and pursuant

to Rule 19b–4(e)(2) 4 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,

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

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 Philadep. All submissions

should refer to File No. SR–Philadep–

96–23 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.

Exhibit A—SR–PHILADEP–96–23

(Deleted text bracketed, new text italicized)

PHILADELPHIA DEPOSITORY TRUST COMPANY CONSOLIDATED RESTATEMENT OF FEES

Service Fee

1. Account Fees:

a. General Maintenance Fee ............................................................. $400.00 per month with account activity.

$200.00 per month for accounts with less than $10.00 of depository

activity.

b. Pledge Bank Fee ........................................................................... $100.00 per month.

c. Manual Interface Fee .................................................................... $150.00 per month in addition to the general maintenance fee.

d. Bearer Municipal Bonds ................................................................ $200.00 per month in addition to the general maintenance fee.

$260.00 per month for bearer bond account only.

2. Custody Fees:

a. Registered Securities .................................................................... Base fee of $0.50 per issue, per month.

Plus for each 100 shares or $4,000.00 in bonds:

0–1 Million Shares $0.01.

1–5 Million Shares $0.005.

Over 5 Million Shares $0.0025.

Additional $0.50 fee per issue if Philadep eligible only, per month.

b. Bearer Municipal Bonds ................................................................ Base fee of $1.45 per issue, per month.

Plus for each $1,000 of par value:

$0–$0.5 Billion $0.010.

$0.5–$1.0 Billion $0.007.

More than $1 Billion $0.005.

3. Deposit Fees:

a. Registered Securities .................................................................... $1.60 per deposit.*

b. Bearer Municipal Bonds ................................................................ $8.00 per deposit.
Federal Register / Vol. 62, No. 37 / Tuesday, February 25, 1997 / Notices 8481

PHILADELPHIA DEPOSITORY TRUST COMPANY CONSOLIDATED RESTATEMENT OF FEES—Continued

Service Fee

4. Deposit Reject Fees:

a. Registered Securities .................................................................... No charge if total deposit rejects are less than 1% of total deposits for

the month. Charge of $10.00 per reject if more than 1%.

b. Bearer Municipal Bonds ................................................................ $10.00 per reject.

5. Legal Deposits ...................................................................................... Processing fees are based on monthly deposit volume:

Volume Level Per Deposit.

1–300—$8.50.

301–3000—$3.50.

3001 and over $2.75 flat fee for all legal deposits.

No charge for deposit rejects. Transfer agent charges will be passed

through to the Participant on an item for item basis.

6. Withdrawals:

a. Registered Securities .................................................................... $2.60 per manual (paper) transfer.*

$1.65 per computer to computer transfer.*

$2.60 per terminal originated transfer.*

$25.00 per rush transfer.

$2.00 per cancelled transfer.

b. By Certificate ................................................................................. $22.95 per urgent certificate withdrawal (same-day or next-day).*

7. Customer Name Mailing:

a. Full Service .................................................................................... $0.65 per transfer, plus appropriate transfer withdrawal charge (fee

does not include postage and delivery valuation charges).

b. Interdepository ............................................................................... $0.75 per transfer, for securities delivered interdepository plus appropriate transfer withdrawal charge (fee does not include postage and

delivery valuation charges).

c. Transmittal Messages ................................................................... $.10 per transmittal

8. Certificate Fees .................................................................................... $5.75 deposits.

$7.50 transfers.

9. Accommodation Transfers and Ironclads ............................................. $5.00 per request, plus applicable transfer agent fees.

10. MDO Movements:

a. Automated Bookentry, Delivery/Receive ....................................... $0.75 per movement.

b. Manual Bookentry, Delivery/Receive ............................................ $1.50 per movement.

c. Automatic Bookentry, Interdepository, Deliveries ......................... $0.50 per CUSIP (daily deliveries).

$0.55 per CUSIP (weekly deliveries).

$0.60 per CUSIP (bi-weekly deliveries).

$0.65 per CUSIP (monthly deliveries).

d. Bearer Municipal Bonds, Automated or Manual ........................... $0.94 per movement.

11. CNS/PHILADEP Movements .............................................................. $0.20 per movement.

12. Underwritings ...................................................................................... $400.00 plus $3.00 per million (plus applicable activity charges).

13. Pledge Fees:

a. Bank loan pledge or release ......................................................... $0.35 each per line item to broker and bank.

b. OCC pledge or release ................................................................. $0.35 per line item.

c. SCCP margin pledge (no charge for release) .............................. $0.10 per line item.

14. Dividend and Interest Payments ........................................................ $1.50 per cash line item;

$10.00 per stock dividend payment.

15. Reorganization Fees:

a. Mandatory Exchanges ................................................................... $23.00 per position.

b. Voluntary Offers ............................................................................ $30.00 per instruction received before cut-off.

$50.00 per instruction received after cut-off, with authorization.

c. Redemptions: Stocks, Corporate Bonds, Registered Municipal

Bonds, others.

$25.00 per position.

d. Post Corporate Actions ................................................................. $20.00 per item (plus costs).

16. Combined Legal Deposits and Letters of Correction (Ironclads) ....... $6.25 per item (one legal deposit and one letter of correction is defined

as one item).

17. Research Fees:

a. Per photocopy of records .............................................................. $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.

18. Reports on Microfiche ........................................................................ $1.25 per page.

19. Eligibility Book .................................................................................... $35.00 per book.

20. Stock Loan Program:

Interest charge to lender ................................................................... Percentage of [bank broker call rate] federal funds rate (fee will be

waived if less than $500 per month).

21. National Institutional Delivery System (NIDS):

a. Confirms ........................................................................................ $0.40 per confirm.

b. For each unaffirmed trade reported .............................................. $0.09 to broker.

c. For each eligible trade reported .................................................... $0.09 to broker and clearing agent.

d. For each ineligible trade reported ................................................. $0.09 to broker and clearing agent.

e. Automated Settlement ................................................................... $0.26 per receive and per delivery to broker and clearing agent.
8482 Federal Register / Vol. 62, No. 37 / Tuesday, February 25, 1997 / Notices

PHILADELPHIA DEPOSITORY TRUST COMPANY CONSOLIDATED RESTATEMENT OF FEES—Continued

Service Fee

22. Philadep Discounts: Participants may select one of the following

discount plans (the greater discount will apply)

a. Volume .......................................................................................... 5% off Philadep charges for participants with 10,001 to 15,000 trades

per month.

An additional 5% off Philadep charges for participants with 15,001 to

30,000 trades per month.

An additional 5% off Philadep charges for participants with 30,001 to

45,000 trades per month.

An additional 5% off Philadep charges for participants with 45,001 or

more trades per month.

b. Automated Deposit Reporting Service (ADRS) ............................ $0.40 per deposit for participants utilizing Philadep ADRS and CNM

services.

23. Computer Transmission/Tapes:

a. Eligibility Files:

1. Daily Update ........................................................................... $50.00 per month.

2. Weekly Full File ...................................................................... $200.00 per month.

3. Monthly or on Request ........................................................... $75.00 each request.

b. Bookkeeping Positions:

1. Daily ....................................................................................... $150.00 per month.

2. Weekly .................................................................................... $100.00 per month.

3. Monthly or on Request ........................................................... $50.00 each request.

c. Activity:

1. Daily ....................................................................................... $150.00 per month.

d. Bookkeeping plus Activity:

1. Daily ....................................................................................... $250.00 per month.

2. Weekly .................................................................................... $200.00 per month.

e. Cash Settlement (fee includes both dividends and reorganizations; transmissions are separate):

1. Daily ....................................................................................... $100.00 per month.

f. Record Date Positions:

1. Daily ....................................................................................... $100.00 per month.

g. Status of Withdrawals by Transfer:

1. Daily ....................................................................................... $100.00 per month.

24. Philanet Terminal:

a. Dedicated Line .............................................................................. $250.00 per month.

b. Dial-up Line ................................................................................... $150.00 per month.

c. Installation ...................................................................................... $600.00.

d. Usage ............................................................................................ No Charge.

25. Position Listings

a. General Fees ................................................................................. $45.00—per individual request (per date, per CUSIP) (plus costs).

$360.00 annually—monthly basis (plus costs).

$1,300.00 annually—weekly basis (plus costs).

b. Municipal Bonds Quantity Discount 1 (multiple CUSIP requests

for the same issuer and for the same date).

1st 100 CUSIPs—$20 per CUSIP.

2nd 100 CUSIPs—$15 per CUSIP.

3rd 100 CUSIPs—$10 per CUSIP.

In excess of 300 CUSIPs—$7.50.

26. Direct Registration System:

a. Limited Participants:

1. Accountholder Fee ................................................................. $225.00 per month.

2. Deliver Order Transaction Processing Fee ........................... $0.45 per transaction.

b. Participants:

1. Deliver Order Transaction Processing Fee ........................... $0.45 per transaction.

2. Transfer Agent Fee ................................................................ $0.55 for mailing and handling.

27. Year 2000 System Change Surcharge .............................................. Participants monthly fee billings (which include pass-through charges)

will include a 31⁄2% surcharge to offset costs to make Philadep systems Year 2000 compliant. The surcharge will be removed by

Philadep’s Board of Directors once such costs are fully offset by revenues collected from the surcharge.

* Transfer and deposit activity subject to pass-through charges.

1 Requests made pursuant to this discount may take ten or more business days to be reached and sent.

[FR Doc. 97–4608 Filed 2–24–97; 8:45 am]

BILLING CODE 8010–01–M