[Federal Register Volume 60, Number 45 (Wednesday, March 8, 1995)]
[Notices]
[Pages 12800-12802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5577]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35434; File No. SR-PTC-95-01]


Self-Regulatory Organizations; Participants Trust Company; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to the Reduction of Certain Fees

March 2, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934\1\ (``Act''), notice is hereby given that on January 31, 1995, the 
Participants Trust Company (``PTC'') 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 PTC. On February 7, 1995, PTC amended the proposal.\2\ The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.

    \1\15 U.S.C. 78s(b)(1) (1988).
    \2\Letter from Leopold S. Rassnick, Senior Vice President, 
General Counsel and Secretary, PTC, to Jonathan Katz, Secretary, 
Commission (February 1, 1995).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The text of the proposed rule change is as follows:

italics indicate additions
[brackets] indicate deletions

Participants Trust Company Schedule of Fees

                        Full Service Participants                       
                        [Effective April 1, 1995]                       
------------------------------------------------------------------------
              Service                                Fee                
------------------------------------------------------------------------
Account Maintenance:                                                    
    First Six Business Accounts....  $[2,500.00] 2,000.00/month.        
    Additional Account.............  $250.00/account/month.             
Book-Entry Delivery/Receipt*--       $[3.00] 2.00 each.                 
 (includes all DK's and FTX                                             
 Transactions).                                                         
Repo Movement......................  $[3.00] 2.00 each.                 
Seg Movement ($.50/side)...........  $1.00 each.                        
MVC (Bulk Seg Movement--regardless   $50.00 each.                       
 of number of positions).                                               
[[Page 12801]]                                                          
                                                                        
Position Maintenance/P&I             $[1.50] 1.25/security/month.       
 Disbursement (includes custody,     $.50/Serial Note/month.            
 P&I processing, redemptions and                                        
 repo accounting).                                                      
Bulk Transfers (transfers of         $50.00/transfer (regardless of     
 collateral into LPA accounts, or     number of positions).             
 caused by a Participant merger).                                       
Deposits...........................  $3.00/certificate.**               
    [Manual].......................  [$4.00/certificate].               
    [Automated Bulk (200-1,000       [$3.50/certificate].               
     pools)].                                                           
    [Automated Bulk (more than       [$3.00/certificate].               
     1,000 pools)].                                                     
Withdrawals........................  $15.00 each.***                    
CLF/BFT Movements..................  $.50/position/side with a maximum  
                                      charge of $50.00/side.            
HIC Segregation....................  $50.00 each.                       
Interim Accounting Adjustments.....  $10.00 each side.                  
Publications (Participant Operating  $50.00 each copy (first set free). 
 Guide, Data Entry Guide and PTC                                        
 Rules).                                                                
------------------------------------------------------------------------
*Receive transaction fee waived for transfer of positions to a new      
  Participant.                                                          
**Plus transfer agent fee, if applicable. GNMA MBS transfer agent fee is
  $10.00 per pool. PTC deposit fee is waived for new Participants.      
***Plus transfer agent fee, if applicable. GNMA MBS transfer agent fees 
  are: $50.00 per certificate for same day availability, $25,00 per     
  certificate for next day availability or $10.00 per certificate for   
  two-business day availability.                                        


                      Limited Purpose Participants                      
                         [Effective April 1995]                         
------------------------------------------------------------------------
              Service                                Fee                
------------------------------------------------------------------------
Account Maintenance................  $500.00/month.*                    
Book-Entry Delivery/Receipt**--      $[3.00] 2.00 each.                 
 (includes all DK's and FTX                                             
 Transactions).                                                         
Seg Movement ($.50/side)...........  $1.00 each.                        
MVC (Bulk Seg Movement--regardless   $50.00 each.                       
 of number of positions).                                               
Position Maintenance/P&I             $[1.50] 1.25/security/month.       
 Disbursement (includes custody,     $.50/Serial Note unit/month.       
 P&I processing, redemptions and                                        
 repo accounting).                                                      
Bulk Transfers (transfers of         $50.00/transfer (regardless of     
 collateral into LPA accounts, or     number of positions).             
 caused by a Participant merger).                                       
Deposits...........................  $3.00/certificate.***              
    [Manual].......................  [$4.00/certificate].               
    [Automated Bulk (200-1,000       [$3.50/certificate].               
     pools)].                                                           
    [Automated Bulk (more than       [$3.00/certificate].               
     1,000 pools)].                                                     
Withdrawals........................  $15.00 each.****                   
CLF/BFT Movements..................  $.50/position/side with a maximum  
                                      charge of $50.00/side.            
HIC Segregation....................  $50.00 each.                       
Interim Accounting Adjustments.....  $10.00 each side.                  
Publications (Participant Operating  $50.00 each copy (first set free). 
 Guide, Data Entry Guide and PTC                                        
 Rules).                                                                
------------------------------------------------------------------------
*A Limited Purpose Account opened by a Full Service Participant is      
  subject to the fee schedule for a Full Service Participant.           
**Receive transaction fee waived for transfer of positions to a new     
  Participant.                                                          
***Plus transfer agent fee, if applicable. GNMA MBS transfer agent fee  
  is $10.00 per pool. PTC deposit fee is waived for new Participants.   
****Plus transfer agent fee, if applicable. GNMA MBS transfer agent fees
  are: $50.00 per certificate for same day availability, $25.00 per     
  certificate for next day availability or $10.00 per certificate for   
  two-business day availability.                                        

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

    In its filing with the Commission, PTC 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. PTC 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

    The purpose of the proposed rule change is to reduce PTC's fees for 
five of its services (i.e., Account Maintenance, Book-entry Delivery 
and Receipt, Repo Movement, Position Maintenance/P&I Disbursement and 
Deposits) and to include additional fees with respect to certain 
incidental services that are not frequently utilized by PTC 
participants (i.e., Bulk Transfers and Publications). This proposed 
rule change will be effective April 1, 1995. PTC believes that the 
modification is appropriate based upon PTC's projected earnings and 
expenses, the desirability of paying dividends on its outstanding 
stock, and its level of capital.
    PTC believes the proposed rule change is consistent with the 
requirements of the Act and specifically with Section 17A(b)(3)(D) of 
the Act because the proposal provides for the equitable allocation of 
fees amount PTC participants.

(B) Self-Regulatory Organizaton's Statement on Burden on Competition

    PTC does not believe that the proposed rule change will have an 
[[Page 12802]] impact on or impose a 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 have been solicited or received. PTC will 
notify the Commission of any written comments received by PTC.

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)\3\ of the Act and pursuant to Rule 19b-4(e)(2)\4\ 
promulgated thereunder because the proposal effects a change in a dues, 
fee, or other charge imposed by PTC. 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.

    \3\15 U.S.C. 78s(b)(3)(A)(ii) (1988).
    \4\17 CFR 240.19b-4(e)(2) (1994).
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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 submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW, Washington DC 20549. 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, 450 Fifth Street, NW, 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of PTC. All submissions 
should refer to File No. SR-PTC-95-01 and should be submitted by March 
29, 1995.

    For the Commission by the Division of Market Regulations, 
pursuant to delegated authority.\5\

    \5\17 CFR 200.30-3(a)912) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-5577 Filed 3-7-95; 8:45 am]
BILLING CODE 8010-01-M