Document ID: SEC-2009-0234-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2009-02-20T05:00Z

[Federal Register: February 20, 2009 (Volume 74, Number 33)]
[Notices]               
[Page 7942-7943]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20fe09-113]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59409; File No. SR-DTC-2009-03]

 
Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Order Granting Accelerated Approval of Proposed 
Rule Change To Revise Its Fee Schedule

February 13, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 13, 2009, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') and on February 13, 2009, amended 
the proposed rule change described in Items I, II, and III below, which 
items have been prepared primarily by DTC. The Commission is publishing 
this notice and order to solicit comments on the rule change from 
interested parties and to grant accelerated approval of the proposal.
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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 rule change is to revise fees for certain DTC 
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, 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 these 
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 is proposing to revise fees for certain services. The revisions 
include: (i) Decreases of Settlement Services fees to realign fees with 
costs incurred in providing the services; (ii) decreases of Custody and 
Dividend service fees to realign fees with costs scaled to reflect 
processing complexity creating fee simplification and transparency; 
(iii) increases of Reorganization services fees to realign fees with 
costs incurred due to low volume tender offers which are subject to 
extensive monitoring; and (iv) increases of Custody and Deposits fees 
to realign fees with costs associated with intensive photocopy and 
research requests.
    In addition, DTC will increase certain disincentive fees to 
discourage activities that increase industry inefficiencies. These 
revisions include: fee increases for underwriters who have incomplete, 
inaccurate, or untimely submission of information in connection with 
DTC's Underwriting services and fee increases for Withdrawals by 
Transfer and Deposits (in connection with DTC's continuing efforts to 
discourage continued traffic in physical securities and to discourage 
erroneous requests).
    The proposed fee revisions are consistent with DTC's overall 
pricing philosophy to align service fees with underlying costs, 
discourage manual and exception processing, and encourage 
immobilization and dematerialization of securities. Except as otherwise 
noted above, the effective date for these fee adjustments is January 2, 
2009.
    The proposed rule change is consistent with Section 17A of the 
Act,\3\ as amended, because it clarifies and updates DTC's fee 
schedule. As such, it provides for the equitable allocation of fees 
among its participants.
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    \3\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC does not believe that the proposed rule change will have any 
impact or impose any burden on competition.

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

    Written comments relating to the proposed rule change have not yet 
been solicited or received. DTC will notify the Commission of any 
written comments received by DTC.

[[Page 7943]]

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Section 17A(b)(3)(D) of the Act requires that the rules of a 
clearing agency provide for the equitable allocation of reasonable 
dues, fees, and other charges among its participants. The Commission 
finds that DTC's proposed rule change is consistent with DTC's 
obligation under the Act because it clarifies and updates DTC's fee 
schedule.
    The Commission finds good cause for approving the proposed rule 
change prior to the thirtieth day after the date of publication of 
notice of filing in the Federal Register because the proposed rule 
change originally was filed previously but had to be refiled due to a 
technical issue.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml ); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-DTC-2009-03 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-DTC-2009-03. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml 
). 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, 100 F Street, NE., Washington, DC 
20549, on official business days between the hours of 10 a.m. and 3 
p.m. Copies of such filings also will be available for inspection and 
copying at the principal office of DTC and on DTC's Web site at http://
www.dtcc.com/downloads/legal/rule_filings/2009/dtc/2009-03.pdf . All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-DTC-2009-03 and should be 
submitted on or before March 13, 2009.

V. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposal is consistent with the requirements of the Act and in 
particular with the requirements of Section 17A of the Act \4\ and the 
rules and regulations thereunder.
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    \4\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\5\ that the proposed rule change (File No. SR-DTC-2009-03) be, and 
hereby is, approved.\6\
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    \5\ 15 U.S.C. 78s(b)(2).
    \6\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-3576 Filed 2-19-09; 8:45 am]

BILLING CODE 8011-01-P