[Federal Register Volume 59, Number 152 (Tuesday, August 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19374]


[[Page Unknown]]

[Federal Register: August 9, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34478; File No. SR-DTC-94-11]

 

Self-Regulatory Organizations; the Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Amending the Fee Schedule for Commercial Paper and Money Market 
Instruments

August 2, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 15, 1994, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change (File No. 
SR-DTC-94-11) 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 
persons.

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    DTC is filing herewith the following change in its fee schedule:
\1\15 U.S.C. Sec. 78s(b)(1) (1988).

------------------------------------------------------------------------
          Service                Present fee            Proposed fee    
------------------------------------------------------------------------
VIII.                                                                   
    Commercial Paper/Money                                              
     Market Instrument                                                  
     Activity:                                                          
        Deliver     $1.26 to the           $1.41 to the         
         orders.             deliverer.             deliverer.          
                            $1.11 to the receiver  $1.26 to the         
                                                    receiver.           
        Maturity    $1.06 for each item    $1.21 for each item  
         or reorganization   delivered or           delivered or        
         presentments.       received.              received.           
------------------------------------------------------------------------

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

    On April 22, 1994, the Commission temporarily approved a proposed 
rule change expanding and improving DTC's Money Market Instrument 
(``MMI'') programs.\2\ As an interim solution to the concerns raised by 
DTC's regulators about the application of unwind procedures related to 
a MMI issuer insolvency, DTC proposed to obtain an additional $500 
million committed line of credit. This line of credit has been acquired 
and is dedicated to the completion of settlement in the event a 
participant fails to settle after DTC has reversed certain transactions 
in an insolvent issuer's MMIs. This line of credit does not increase 
participants' fixed or adjustable net debit caps.\3\ The subject 
proposed fee change, which will be effective for services provided on 
or after August 1, 1994, including services in corporate commercial 
paper, will recover the cost of the $500 million line of credit by 
adding $.15 per side to MMI deliver order and maturity presentment 
service fees.
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    \2\Securities Exchange Act Release No. 33958 (April 22, 1994), 
58 FR 59283 [File No. SR-DTC-12] (order temporarily approving 
proposed rule change until April 30, 1995).
    \3\The addition of this line of credit to DTC's previous $750 
million in liquidity resources has brought DTC's total liquidity 
resources to $1,250 million. As agreed upon with DTC's regulators, 
if DTC finds as they expand the MMI program that $1,250 million of 
liquidity is insufficient, DTC will add to the $500 million 
dedicated line of credit accordingly.
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    The proposed rule change is consistent with Section 17A(b)(3)(D)\4\ 
of the Act, as amended, which requires that the rules of a registered 
clearing agency provide for the equitable allocation of reasonable fees 
for the services which it provides to participants.
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    \4\15 U.S.C. Sec. 78q-1(b)(3)(D) (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule change will 
more equitably allocate fees among participants.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    Comments were neither solicited nor received. Earlier this year, 
DTC advised participants that the proposed fee increases would be 
implemented if acquiring the additional line of credit was necessary to 
obtain regulatory approval for the expanded MMI program.

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

    The foregoing rule change has become effective on filing pursuant 
to Section 19(b)(3)(A)(ii\5\ of the Act and pursuant to Rule 19b-
4(e)(2)\6\ in that the proposed rule change establishes or changes a 
due, fee, or other charge imposed by DTC. At any time within sixty days 
of the filing of this 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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    \5\15 U.S.C. Sec. 78s(b)(3)(A)(ii).
    \6\17 CFR 240.19b-4(e)(2) (1993).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submission 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington DC 20549. Copies 
of the submissions, 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. Sec. 552, will be available for inspection and copying in 
the Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filings will also be available for 
inspection and copying at the principal offices of DTC. All submissions 
should refer to File No. SR-DTC-94-11 and should be submitted by August 
30, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-19374 Filed 8-8-94; 8:45 am]
BILLING CODE 8010-01-M