Document ID: SEC-2009-0420-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2009-03-27T04:00Z

[Federal Register: March 27, 2009 (Volume 74, Number 58)]
[Notices]               
[Page 13490-13491]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27mr09-98]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59618; File No. SR-DTC-2009-04]

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

March 23, 2009.

I. Introduction

    On January 16, 2009, The Depository Trust Company (``DTC'') filed 
with the Securities and Exchange Commission (``Commission'') proposed 
rule change SR-DTC-2009-04 pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'').\1\ Notice of the proposal 
was published in the Federal Register on February 19, 2009.\2\ The 
Commission received no comment letters in response to the proposed rule 
change. For the reasons discussed below, the Commission is approving 
the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release No. 59387 (February 11, 
2009), 74 FR 7716.
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II. Description

    DTC is revising its fee schedule for Security Position Reports 
(``SPRs''). An SPR is a report prepared by DTC showing for an issuer 
whose securities are eligible for DTC's book entry services (1) the 
identity of each DTC participant having that issuer's securities 
credited to its participant account (i.e., ``security position'') as of 
a selected date 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 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 fees charged to issuers or trustees for SPRs are as 
follows:

------------------------------------------------------------------------
            Report/item                              Fee
------------------------------------------------------------------------
Weekly Report (one-year minimum     $1950 per year for the first
 subscription required).             security issue.
                                    $575.00 per year for each additional
                                     security for the same issuer.
Monthly Report (one-year minimum    $450.00 per year for the first
 subscription required).             security issue.
                                    $225.00 per year for each additional
                                     security for the same issuer.
Dividend Record Date Report (one-   $150 per year.
 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 has proposed 
to improve processing efficiencies by eliminating the separate billing 
of fax, spreadsheet, and extra copy charges for weekly reports, monthly 
reports, and for 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 will remain 
unchanged.
    The revised SPR fees being adopted by DTC are as follows:

------------------------------------------------------------------------
            Report/item                              Fee
------------------------------------------------------------------------
Weekly Report (one-year minimum     $1950 per year for the first
 subscription required).             security issue, plus a one time
                                     charge of $1400 per additional copy/
                                     recipient for that security issue.

[[Page 13491]]

                                    $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 minimum    $450.00 per year for the first
 subscription required).             security issue, plus a one time
                                     charge 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 (one-   $150 per year; one year minimum
 year minimum subscription           subscription required, plus a one
 required).                          time 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--Spreadsheet.....  $25.00 additional per report charge
                                     when spreadsheet is specifically
                                     requested.
Special Requests--Extra Copy......  $25.00 additional fee for the
                                     reproduction of previously compiled
                                     SPR information.
------------------------------------------------------------------------

III. Discussion

    Section 19(b) of the Act directs the Commission to approve a 
proposed rule change of a self-regulatory organization if it finds that 
such proposed rule change is consistent with the requirements of the 
Act and the rules and regulations thereunder applicable to such 
organization. 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.\3\ The Commission believes that DTC's 
rule change is consistent with this Section because it will 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(b)(3)(D).
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposed rule change is consistent with the requirements of the Act and 
in particular Section 17A of the Act and the rules and regulations 
thereunder. In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition, and 
capital formation.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (File No. SR-DTC-2009-04) be and hereby 
is approved.

    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. E9-6832 Filed 3-26-09; 8:45 am]

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