Document ID: SEC-2008-0153-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Company
Posted Date: 2008-01-30T05:00Z

[Federal Register: January 30, 2008 (Volume 73, Number 20)]
[Notices]               
[Page 5614-5615]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ja08-128]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57193; File No. SR-DTC-2007-17]

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

January 24, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 31, 2007, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') 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 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

    The purpose of the proposed rule change is to revise DTC's fee 
schedule.

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

    The purpose of the proposed rule change is to revise fees for 
certain services provided by DTC.
    These changes include: \3\
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    \3\ The specific changes to DTC's fee schedule are attached as 
an exhibit to the filing.
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    (1) Decreases to Settlement Services fees to realign fees with 
costs incurred in providing the services.
    (2) Increases in Securities Processing, Custody, and Asset 
Servicing fees to realign fees with costs scaled to reflect processing 
complexity.
    (3) Elimination of certain Participant Output Services fees.
    In addition, DTC is implementing certain disincentive fees to 
discourage activities which increase industry inefficiencies. These 
disincentive fees include:
    (1) A disincentive fee related to underwritings of non-conforming 
structured securities (i.e., issues with structural elements that 
prevent agents from making timely announcements on income 
distributions) as compensation for the additional costs to DTC in 
processing them. The effective date for this fee will be announced by 
DTC via Important Notice upon the Commission's approval of proposed 
rule change SR-DTC-2007-11.\4\
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    \4\ Notice of filing was published for comment on November 26, 
2007. Securities Exchange Act Release No. 56795 (November 15, 2007), 
72 FR 66009.

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[[Page 5615]]

    (2) A disincentive fee for underwriters that submit incomplete 
information.
    (3) Additional disincentive fees related to rejects and exceptions 
for Custody and Deposits.
    DTC is introducing associated fees for new capabilities in Tax 
Services and Securities Processing. DTC is also introducing new 
Underwriting fees for the New Issue Information Dissemination Service 
(NIIDS). The effective date for the new Underwriting fees will be 
announced by DTC through an Important Notice upon the Commission's 
approval proposed rule change SR-DTC-2007-10.\5\
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    \5\ Notice of filing was published for comment on October 3, 
2007. Securities Exchange Act Release No. 56552 (September 27, 
2007), 72 FR 56407.
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    These proposed fee revisions are consistent with DTC's overall 
pricing philosophy to align service fees with underlying costs, to 
discourage manual and exception processing, and to encourage 
immobilization and dematerialization of securities. Except as noted, 
the effective date for these fee adjustments was January 2, 2008.
    DTC believes that the proposed rule change is consistent with the 
requirements of Section 17A(b)(3)(D) of the Act \6\ and the rules and 
regulations thereunder applicable to DTC because it provides for the 
equitable allocation of reasonable dues, fees, and other charges among 
DTC's participants.
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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 on 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

    No written comments relating to the proposed rule change have 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 upon filing 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 establishes or changes a 
due, fee, or other charge applicable only to a participant. At any time 
within sixty days of the filing of the proposed 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

     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-2007-17 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
All submissions should refer to File Number SR-DTC-2007-17. 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://login.dtcc.com/dtcorg/. 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-2007-17 and 
should be submitted on or before February 20, 2008.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-1615 Filed 1-29-08; 8:45 am]

BILLING CODE 8011-01-P