27378 Federal Register / Vol. 61, No. 106 / Friday, May 31, 1996 / Notices

4 17 CFR 200.30–3(a)(12) (1995).

1 15 U.S.C. § 78s(b)(1) (1988).

2The Commission has modified the text of the

summaries prepared by Philadep.

any further business in the account

beginning on the next business day after

the additional contribution was due.

Accordingly, an offense as contemplated

by the foregoing fine schedule refers to

the number of times that the account

was inactivated from conducting any

further business for failure to furnish

Philadep with the additional

contribution during a calendar year.

Once active, an account will be

routinely subject to the normal review

and update process on a monthly basis,

and the F&A Department will

recalculate each participant’s

participants fund deposit requirement at

the end of each month based upon the

participant’s previous three months

activity, prior to the most recent month.

Philadep believes the proposed rule

change is consistent with Section 17A of

the Act and the rules and regulations

thereunder because the proposal should

help to safeguard securities and funds in

their custody or control or for which

they are responsible and foster

cooperation and coordination with

persons engaged in the clearance and

settlement of securities transactions.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

Philadep believes that the proposed

rule change will not impose any burden

on competition not contemplated within

the parameters of the Act.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants, or Others

No written comments relating to the

proposed rule change have been

received. Philadep will notify the

Commission of any written comments

received by Philadep.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within thirty-five 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

ninety 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 Philadep 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 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 the file number SR–

Philadep–96–07 and should be

submitted by June 21, 1996.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.4

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–13694 Filed 5–30–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37234; File No. SR–

PHILADEP–96–06]

Self-Regulatory Organizations;

Philadelphia Depository Trust

Company; Notice of Filing and

Immediate Effectiveness of Proposed

Rule Change to Amend the Fee

Schedule for the Legal Deposit

Service.

May 21, 1996.

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

Securities Exchange Act of 1934

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

April 1, 1996, the Philadelphia

Depository Trust Company (‘‘Philadep’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change (File No. SR–

PHILADEP–96–06) 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

parties.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

Philadep proposes to consolidate and

modify the fees and the underlying

volume categories for its Legal Deposit

Service.

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 purposes of and the

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.

Philadep has prepared summaries, as set

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

of the most significant aspects of these

statements.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and the

Statutory Basis for, the Proposed Rule

Change

Philadep proposes to modify its

existing fees for its Legal Deposit

Service. Under the existing schedule,

medium volume depositors pay

significantly greater costs than high

volume depositors. In order to attract

new medium volume business while

offering its current users more cost

competitive pricing, Philadep is

consolidating the number of categories

for its Legal Deposit Service and

modifying the fees that the medium

volume participants pay for this service.

The text of the proposed rule change

is as follows:

Philadelphia Depository Trust

Company—Schedule of Fees

Additions are italicized; deletions

[bracketed]

5. Legal Deposits

Processing fees are based upon

monthly deposit volume:

Volume Level:

[0–100 ....................... $8.50.

101–500 ..................... $6.00.

501–1,000 .................. $5.50.

1,001–1,700 ............... $5.00.

1,701–2,500 ............... $4.50.

2,501–3,000 ............... $3.50 flat fee for all

legal deposits.

3,001 and over .......... $2.75 flat fee for all

legal deposits.]

1–300 ........................................................$8.50

301–3000 ..................................................$3.50

3001 and over...........................................$2.75

No charge for deposit rejects. Transfer

agent charges will be passed through to

the Participant on an item for item basis.

Philadep believes the proposed

change complies with Section 17A of

the Act because it provides for the
Federal Register / Vol. 61, No. 106 / Friday, May 31, 1996 / Notices 27379

3 15 U.S.C. 78s(b)(3)(A)(ii) (1988).

4 17 CFR 240.19b–4(e)(2) (1995).

5 17 CFR 200.30–3(a)(12) (1995).

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

2Securities Exchange Act Release No. 36875

(February 22, 1996), 61 FR 7846 [SR–SCCP–95–06]

(order granting partial temporary approval and

partial permanent approval of a proposed rule

change).

equitable allocations of reasonable dues,

fees, and other charges among

participants.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The proposed rule change will not

impose any inappropriate 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 Changes and Timing for

Commission Action

The foregoing rule change has become

effective pursuant to Section

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

to Rule 19b–4(e)(2) 4 promulgated

thereunder because the proposal

establishes or changes 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 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, NW,

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

Section, 450 Fifth Street, NW,

Washington, DC 20549. Copies of such

filings will also be available for

inspection and copying at the principal

office of Philadep. All submissions

should refer to File Number SR–

PHILADEP–96–06 and should be

submitted by June 21, 1996.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–13697 Filed 5–30–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37245; File No. SR–SCCP–

96–03]

Self-Regulatory Organizations; Stock

Clearing Corporation of Philadelphia;

Notice of Filing of a Proposed Rule

Change To Establish a Separate

Participant Category for Inactive

Accounts

May 24, 1996.

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

Securities Exchange Act of 1934

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

May 8, 1996, the Stock Clearing

Corporation of Philadelphia (‘‘SCCP’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change (File No. SR–

SCCP–96–03) 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.

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 amend SCCP’s rules of

establishment a separate participant

category for inactive accounts and to

amend the participants fund formulas

with respect to such inactive accounts.

Specifically, the proposed rule change

will define the term ‘‘Inactive Account’’

and will set forth the mechanism for

detecting a change in a participant’s

status from inactive to active for the

immediate collection of the additional

required participants fund contribution

at such time.

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 they 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.

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

SCCP proposes to amend its rules

with respect to the minimum cash

deposit contribution of its inactive

participants to be set at the uniform rate

of $5,000 instead of at the previously

approved rate of $10,000.2 ‘‘Inactive

Accounts’’ are proposed to be defined as

an account which conducts de minimis

activity, currently established to be

twenty or fewer trades per month.

SCCP proposes to adjust its Inactive

Account contribution to the participants

fund from $10,000 to $5,000. In

proposing this amendment, SCCP

recognizes that Inactive Accounts pose

virtually no risk to the clearing

corporation so long as they remain in

such inactive status. In this regard,

SCCP has established procedures to

detect a change in a participant’s status

from inactive to active and for the

immediate collection of the additional

required participants fund contribution

at such time.

SCCP will monitor its participants’

account activities to assure that all

participants post the requisite

participants fund contributions. SCCP

evaluates the nature and financial

integrity of all participants of SCCP,

even if they initially establish only

Inactive Accounts. SCCP evaluates

prospective participants develops a

customer profile, assesses the firm’s

capital adequacy, determines the initial

participants fund contribution, contacts

the firm’s Designated Examining

Authority for a review of its regulatory

history, and presents any and all

pertinent information collected to

SCCP’s Admissions Committee. The

Admissions Committee ultimately

makes the determination about whether

to admit the participant and directs

management where appropriate to

gather additional information so that the

Committee can make such a

determination. After admission, SCCP

monitors participants’ account activities

to assure that the proper participants

fund contribution is being collected

from each participant.

Specifically with respect to Inactive

Accounts, SCCP’s Finance and

Administration (‘‘F&A’’) Department