Document ID: SEC-2010-0049-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; the Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Revise FeeSchedule
Posted Date: 2010-01-11T05:00Z

[Federal Register: January 11, 2010 (Volume 75, Number 6)]
[Notices]               
[Page 1425-1426]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11ja10-90]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61263; File No. SR-DTC-2009-19]

 
Self-Regulatory Organizations; the Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Revise Fee Schedule

December 30, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 24, 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. DTC filed the proposal pursuant to Section 
19(b)(3)(A)(iii) of the Act \2\ and Rule 19b-4(f)(4) \3\ thereunder so 
that the proposal 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\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b-4(f)(4).
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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 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 such 
statements.\4\
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    \4\ 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 proposes increasing certain existing service fees and 
introducing fees associated with new service capabilities. Increased 
fees are proposed for existing services related to Deposits, Custody 
and Asset Servicing, Underwriting and Dividends, Book-Entry Delivery, 
and Money Market Instruments. These changes are intended to realign the 
fees with DTC's corresponding service costs, scale the fees to reflect 
processing complexity, and create fee simplification and transparency.
    In addition, DTC will increase and implement certain disincentive 
fees to discourage activities that increase industry inefficiencies. 
This includes fee increases for reject processing services and for 
exception processing related to Deposit and Withdrawal activities and 
Custody. It also includes a new password reset fee.\5\
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    \5\ The password reset fee would apply after an initial 
allowance of two password resets at no cost.
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    New fees are proposed for recently-developed services related to 
Underwriting, Deposits, and Reorganization. The new fees include an 
Underwriting fee for Incomplete Eligibility Information and Older Issue 
Eligibility, a Reorganization fee structure for Survivor Options, and a 
new Long Position fee for issues with a large number of shares but low 
market value.
    These proposed fee revisions are consistent with DTC's overall 
pricing philosophy of aligning service fees with underlying costs, 
discouraging manual and exception processing, and encouraging 
immobilization and dematerialization of securities. The effective date 
for these fee adjustments is January 4, 2010. The changes to DTC's Fee 
Schedule can be found in Exhibit 5 to proposed rule change SR-DTC-2009-
19 at http://www.dtcc.com/downloads/legal/rule_filings/2009/dtc/2009-
19.pdf.
    DTC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \6\

[[Page 1426]]

and the rules and regulations thereunder applicable to DTC because the 
proposed rule change updates DTC's fee schedule and provides equitable 
allocation of fees among its members.
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    \6\ 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.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) \8\ thereunder 
because the proposed rule change is establishing or changing a due, 
fee, or other charge applicable only to a member. At any time within 
sixty days of the filing of such rule change, the Commission may 
summarily abrogate 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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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 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

     Electronic comments may be submitted by using the 
Commission's Internet comment form (http://www.sec.gov/rules/
sro.shtml), or
     Send an e-mail to rule-comment@sec.gov. Please include 
File No. SR-DTC-2009-19 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-2009-19. 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 
am and 3 pm. 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/
2009-19.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-
2009-19 and should be submitted on or before February 1, 2010.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-188 Filed 1-8-10; 8:45 am]
BILLING CODE 8011-01-P