Document ID: SEC-2014-0011-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co.
Posted Date: 2014-01-06T05:00Z

[Federal Register Volume 79, Number 3 (Monday, January 6, 2014)]
[Notices]
[Pages 690-691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-31521]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71206; File No. SR-DTC-2013-12]

Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Revise the Fee Schedule of the Depository Trust Company With Respect to 
Its Underwriting Service

December 30, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 23, 2013, 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 by DTC. DTC filed the proposed rule change pursuant to 
Section 19(b)(3)(A)(ii) \3\ of the Act and Rule 19b-4(f)(2) \4\ 
thereunder; the proposed rule change was effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change is to modify DTC's Rules and Procedures, 
as described below.

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 such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

(i) Purpose
    Pursuant to the proposed rule change DTC will revise certain 
Underwriting service fees as more fully described below. Under the 
proposal, in order to align costs of processing to the associated 
revenue, DTC will replace Underwriting service fees which are currently 
applied with respect to eligibility processing for equity, corporate 
bond and municipal bond transactions (in tiered amounts depending upon 
the complexity of an issue) with new fees specific to the respective 
asset classes. Pursuant to the proposal DTC will charge Participants a 
fixed Underwriting fee for eligibility processing for municipal issues 
with one CUSIP, and a separate greater fixed fee for issues with more 
than one CUSIP. Underwriting fees for equities and corporate issues 
will migrate to a fee per CUSIP structure with an initial fixed fee for 
the first CUSIP and an incremental fee for each additional CUSIP. Also 
in order to align processing costs with associated revenues, the 
current fixed Underwriting fee for processing of eligibility requests 
by Participants for certificates of deposit will be lowered. In 
addition, DTC proposes to implement a separate fee to be charged to 
Participants for processing of book-entry only (BEO) certificates 
deposited at DTC. This will allow DTC to recover costs associated with 
processing BEO certificates (as opposed to ``FAST'' issues where the 
security remains on the books of the transfer agent and DTC does not 
incur the cost of processing certificates issued in the name of DTC's 
nominee, Cede & Co.).
Proposed Rule Changes
    The revised fees are set forth in the tables below:

                              Deleted Fees
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              Fee description                        Fee amount
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Basic (Single CUSIP) Eligibility Fee......  $350 per Issue.
Basic (Multi CUSIP) Eligibility Fee.......  $500 per Issue.
Complex Eligibility Fee...................  $750 per Issue.
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[[Page 691]]

                                New Fees
------------------------------------------------------------------------
              Fee description                        Fee amount
------------------------------------------------------------------------
Equity Eligibility Fee....................  $750 per Issue w/1 CUSIP
                                             PLUS.
                                            $250 Each Additional CUSIP.
Corporate Debt Eligibility Fee............  $350 per Issue w/1 CUSIP
                                             PLUS.
                                            $250 Each Additional CUSIP.
Municipal Debt Eligibility Fee............  $350 per Issue w/1 CUSIP;
                                            $800 per Issue w/more than 1
                                             CUSIP.
BEO Certificate (Non-FAST) Processing Fee.  $50 per CUSIP; up to a
                                             maximum charge of $500 per
                                             Issue.
------------------------------------------------------------------------

                                                   Fee Change
----------------------------------------------------------------------------------------------------------------
             Fee description                    Current fee amount                 Proposed fee amount
----------------------------------------------------------------------------------------------------------------
Certificate of Deposit Eligibility Fee...  $275 per CUSIP..............  $175 per CUSIP.
----------------------------------------------------------------------------------------------------------------

    The fee changes set forth above will be incorporated into DTC's fee 
schedule which is available at www.dtcc.com.
Implementation Timeframe
    The proposed fee changes will take effect on January 1, 2014.
(ii) Statutory Basis
    The proposed rule change will align DTC's Underwriting fees with 
the costs of delivering applicable services, and the charges will apply 
equally in accordance with Participants' use of DTC services. 
Therefore, DTC believes the proposed rule change is consistent with the 
requirements of the Securities Exchange Act of 1934, as amended 
(``Act'') and the rules and regulations thereunder applicable to DTC, 
in particular Section 17A(b)(3)(D) of the Act,\5\ which requires that 
DTC's Rules provide for the equitable allocation of reasonable dues, 
fees, and other charges among its Participants.
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    \5\ 15 U.S.C. 78q-1(b)(3)(D).
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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. As stated above, the 
proposed changes will align DTC's fees with the costs of delivering 
services to its Participants, and the revised fee schedule will apply 
equally to all DTC Participants in accordance with their use of DTC's 
Underwriting service.

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.

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

    The foregoing rule change will become effective on January 1, 2014, 
pursuant to Section 19(b)(3)(A) \6\ of the Act and paragraph (f)(2) of 
Rule 19b-4 \7\ thereunder. At any time within 60 days of the filing of 
the proposed rule change, the Commission summarily may temporarily 
suspend 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(2)
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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 email to rule-comments@sec.gov. Please include 
File No. SR-DTC-2013-12 on the subject line.

Paper Comments

     Send 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 No. SR-DTC-2013-12. This file 
number should be included on the subject line if email 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 Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filings will also be available 
for inspection and copying at the principal office of DTC.
    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 No. SR-DTC-2013-12 and 
should be submitted on or before January 27, 2014.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-31521 Filed 1-3-14; 8:45 am]
BILLING CODE 8011-01-P