Document ID: SEC-2009-0231-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2009-02-19T05:00Z

[Federal Register: February 19, 2009 (Volume 74, Number 32)]
[Notices]               
[Page 7716-7718]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19fe09-85]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59387; File No. SR-DTC-2009-04]

 
Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing of Proposed Rule Change To Implement and Revise Fees 
Related to Non-Participant Services

February 11, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 16, 2009, The 
Depository Trust Company (``DTC'') 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 DTC. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested parties.
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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

    DTC is seeking to revise its fee schedule for Security Position 
Reports (``SPRs'').

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

    An SPR is a report prepared by DTC showing for an issuer whose 
securities are eligible for DTC's book entry

[[Page 7717]]

services (1) the identity of each DTC participant having that issuer's 
securities credited as of a selected date to its participant account 
(i.e., ``security position'') and (2) the quantity of securities so 
credited. DTC also provides SPR information to trustees and other 
authorized third-party agents. These entities typically need SPR 
information provided by DTC in order to properly conduct proxy, record 
date, and voting rights-related functions.
    Several types of SPRs are available: (1) Weekly reports that show 
daily closing positions during that week; (2) monthly reports that show 
closing positions on the last business day of the month; (3) quarterly 
dividend record date reports that show closing positions on the 
dividend record date; and (4) special requests that show closing 
positions for the date specified. Weekly, monthly, and quarterly record 
date reports are available by annual subscription only.
    DTC charges a fee for each SPR and offers discounts for high volume 
SPR service users.
    Currently, the fee charged to issuers or trustees for SPRs are as 
follows:

------------------------------------------------------------------------
              Report/item                              Fee
------------------------------------------------------------------------
Weekly Report (one-year minimum           $1,950 per year for
 subscription required).                  the first security issue.
                                          $575.00 per year for
                                          each additional security for
                                          the same issuer.
Monthly Report (one-year minimum          $450.00 per year for
 subscription required).                  the first security issue.
                                          $225.00 per year for
                                          each additional security for
                                          the same issuer.
Dividend Record Date Report (one-year     $150 per year.
 minimum subscription required).
Special Requests.......................   $120.00 per report,
                                          per date request.
Fax....................................   $25.00 additional per
                                          report charge when fax service
                                          is specifically requested.
Spreadsheet............................   $25.00 additional per
                                          report charge when spreadsheet
                                          is specifically requested.
Extra Copy.............................   $25.00 additional fee
                                          for the reproduction of
                                          previously compiled SPR
                                          information.
------------------------------------------------------------------------

    Fax, Spreadsheet and Extra copy charges are currently billed in 
addition to subscription and special request charges. DTC is proposing 
to improve processing efficiencies by eliminating the separate billing 
of Fax, Spreadsheet, and Extra Copy charges for weekly and monthly 
subscriptions, as well as dividend record date reports, and by 
incorporating the cost of delivering those ``additional'' services into 
the subscription charge for the particular report ordered. Fees for 
Special Requests, including Fax, Spreadsheet, and Extra Copy charges 
would remain unchanged. Therefore, DTC proposes to adopt revised SPR 
fees as follows:

------------------------------------------------------------------------
         Report/item                              Fee
------------------------------------------------------------------------
Weekly Report (one-year         $1950 per year for the first
 minimum subscription           security issue, plus a one time charge
 required).                     of $1400 per additional copy/recipient
                                for that security issue.
                                $575.00 per year for each
                                additional security for the same issuer,
                                plus a one time charge of $575 per
                                additional copy/recipient.
Monthly Report (one-year        $450.00 per year for the first
 minimum subscription           security issue, plus a one time charge
 required).                     of $300 per additional copy/recipient
                                for that security issue.
                                $225.00 per year for each
                                additional security for the same issuer,
                                plus a one time charge of $225 per
                                additional copy/recipient.
Dividend Record Date Report     $150 per year; one year minimum
 (one-year minimum              subscription required, plus a one time
 subscription required).        charge of $150 per additional copy/
                                recipient for that security issue.
Special Requests.............   $120.00 per report, per date
                                request.
Special Requests--Fax........   $25.00 additional per report
                                charge when fax service is specifically
                                requested.
Special Requests --             $25.00 additional per report
 Spreadsheet.                   charge when spreadsheet is specifically
                                requested.
Special Requests--Extra Copy.   $25.00 additional fee for the
                                reproduction of previously compiled SPR
                                information.
------------------------------------------------------------------------

    DTC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \3\ and the rules and 
regulations thereunder applicable to DTC because it should provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among the users of DTC's services.
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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 have not been solicited with respect to the 
proposed rule change, and none have been received.

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 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 the foregoing, including whether the proposed rule 
change is consistent with the Act.

[[Page 7718]]

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-2009-04 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-2009-04. 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 Section, 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 filing 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/
2009-04.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-
2009-04 and should be submitted on or before March 12, 2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-3429 Filed 2-18-09; 8:45 am]

BILLING CODE 8011-01-P