[Federal Register Volume 61, Number 20 (Tuesday, January 30, 1996)]
[Notices]
[Pages 3060-3063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1672]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36763; File No. SR-Philadep-95-11]
Self-Regulatory Organizations; Philadelphia Depository Trust
Company; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change To Restate, and Amend Schedule of Fees and Charges
January 24, 1996.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 26, 1995, the
Philadelphia Depository Trust Company (``Philadep'') 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 Philadep. 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)
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change will restate Philadep's schedule of fees
and charges with certain amendments.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Philadep included statements
concerning the purpose of and statutory basis for the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. Philadep has prepared summaries, set forth
in sections (A), (B),
[[Page 3061]]
and (C) below, of the most significant aspects of such statements.\2\
\2\The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statements of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Philadep last filed amendments to its fee schedule in July 1995.\3\
Philadep hereby increases certain fees in the areas of account charges,
certificate withdrawals, post-corporate actions (reorganizations), and
eligibility book. Philadep also is instituting new fees for rush
transfers, cancelled transfers, and customer transmittal messages.
\3\Securities Exchange Act Release No. 36013 (July 24, 1995), 60
FR 39037.
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Additionally, Philadep seeks to consolidate and restate all
existing fees and charges in its schedule. This reflects Philadep's
policy to file annually a comprehensive schedule of all existing fees,
charges, and any amendments. The amendments to the fee schedule shall
become effective January 1, 1996.
Consolidated Restatement of Fees\4\
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Service Fee
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1. ACCOUNT FEES
a. General Maintenance [$360.00] $400.00 per month with account
Fee. activity.
[$150.00] $200.00 per month for accounts
with less than $10.00 of depository
activity.
b. Pledge Bank Fee....... $100.00 per month.
c. Manual Interface Fee.. $150.00 per month in addition to the
general maintenance fee.
d. Bearer Municipal Bonds $200.00 per month in addition to the
general maintenance fee.
$260.00 per month for bearer bond account
only.
2. CUSTODY FEES
a. Registered Securities. Base fee of $0.50 per issue, per month.
Plus for each 100 shares or $4,000.00 in
bonds:
0-1 Million Shares--$0.01.
1-5 Million Shares--$0.005.
Over 5 Million Shares--$0.0025
Additional $0.50 fee per issue if
Philadep eligible only, per month.
b. Bearer Municipal Bonds Base fee of $1.45 per issue, per month.
Plus for each $1,000 of par value:
$0-$0.5 Billion--$0.010.
$0.5-$1.0 Billion--$0.007.
More than $1 Billion--$0.005.
3. DEPOSIT FEES
a. Registered Securities. $1.60 per deposit.*
b. Bearer Municipal Bonds $8.00 per deposit.
4. DEPOSIT REJECT FEES
a. Registered Securities. No charge if total deposit rejects are
less than 1% of total deposits for the
month. Charge of $10.00 per reject if
more than 1%.
b. Bearer Municipal Bonds $10.00 per reject.
5. LEGAL DEPOSITS
Processing fees are based
on monthly deposit
volume:
Volume Level Per Deposit.
0-100................ $8.50.
101-500.............. $6.00.
501-1,000............ $5.50.
1,001-1,700.......... $5.00.
1,701-2,500.......... $4.50.
2,501-3,000.......... $3.50 flat fee for all legal deposits.
3,001 and over....... $2.75 flat fee for all legal deposits.
No charge for deposit rejects. Transfer
agent charges will be passed through to
the participant on an item for item
basis.
6. WITHDRAWALS
a. Registered Securities. $2.60 per manual (paper) transfer.*
$1.65 per computer to computer transfer.*
$2.60 per terminal originated transfer.*
$25.00 per rush transfer.
$2.00 per cancelled transfer.
b. By Certificate........ [$17.95] $22.95 per urgent certificate
withdrawal (same-day or next-day).*
7. CUSTOMER NAME MAILINGS
a. Full Service.......... $0.65 per transfer, plus appropriate
transfer withdrawal charge (fee does not
include postage and delivery valuation
charges).
b. Interdepository....... $0.75 per transfer, for securities
delivered interdepository plus
appropriate transfer withdrawal charge
(fee does not include postage and
delivery valuation charges).
c. Transmittal Messages.. $.10 per transmittal.
8. CERTIFICATE FEES.......... $5.75 deposits.
$7.50 transfers.
9. ACCOMMODATION TRANSFERS $5.00 per request, plus applicable
AND IRONCLADS. transfer agent fees.
10. MDO MOVEMENTS
a. Automated Bookentry $0.75 per movement.
Delivery/Receive.
b. Manual Bookentry $1.50 per movement.
Delivery/Receive.
[[Page 3062]]
c. Automatic Bookentry $0.50 per CUSIP (daily deliveries).
Interdepository
Deliveries.
$0.55 per CUSIP (weekly deliveries).
$0.60 per CUSIP (biweekly deliveries).
$0.65 per CUSIP (monthly deliveries).
d. Bearer Municipal Bonds $0.94 per movement.
Automated or Manual.
11. CNS/PHILADEP MOVEMENTS... $0.20 per movement.
12. UNDERWRITINGS............ $400.00 plus $3.00 per million (plus
applicable activity charges).
13. PLEDGE FEES
a. Bank loan pledge or $0.35 each per line item to broker and
release. bank.
b. OCC pledge or release. $0.35 per line item.
c. SCCP margin pledge (no $0.10 per line item.
charge for release).
14. DIVIDEND AND INTEREST $1.50 per cash line item.
PAYMENTS
$10.00 per stock dividend payment.
15. REORGANIZATION FEES
a. Mandatory Exchanges... $23.00 per position.
b. Voluntary Offers...... $30.00 per instruction received before
cut-off.
$50.00 per instruction received after cut-
off, with authorization.
c. Redemptions: Stocks, $25.00 per position.
Corporate Bonds,
Registered Municipal
Bonds, others.
d. Post Corporate Actions [$17.50] $20.00 per item (plus costs).
16. COMBINED LEGAL DEPOSITS $6.25 per item (one legal deposit and one
AND LETTERS OF CORRECTION letter of correction is defined as one
(IRONCLADS). item).
17. RESEARCH FEES
a. Per photocopy of $4.00.
records.
b. Per microfiche copy... $4.00.
c. Items less than 90 No charge.
days old.
d. Items 1 year old or $15.00 per hour.
less.
e. Items over 1 year old. $15.00 per hour, $25.00 minimum, plus
archive retrieval costs.
18. REPORTS ON MICROFICHE.... $1.25 per page.
19. ELIGIBILITY BOOK......... [$8.00] $35.00 per book.
20. STOCK LOAN PROGRAM
Interest charge to lender Percentage of bank broker call rate.
21. NATIONAL INSTITUTIONAL
DELIVERY SYSTEM (NIDS)
a. Confirms.............. $0.40 per confirm.
b. For each unaffirmed $0.09 to broker.
trade reported.
c. For each eligible $0.09 to broker and clearing agent.
trade reported.
d. For each ineligible $0.09 to broker and clearing agent.
trade reported.
e. Automated Settlement.. $0.26 per receive and per delivery to
broker and clearing agent.
22. PHILADEP DISCOUNTS
Participants may select
one of the following
discount plans (the
greater discount will
apply):
a. Volume................ 5% off Philadep charges for participants
with 10,001 to 15,000 trades per month.
An additional 5% off Philadep charges for
participants with 15,001 to 30,000
trades per month.
An additional 5% off Philadep charges for
participants with 30,001 to 45,000
trades per month.
An additional 5% off Philadep charges for
participants with 45,001 or more trades
per month.
b. Automated Deposit $0.40 per deposit for participants
Service (ADS). utilizing Philadep ADS and CNM services.
23. COMPUTER TRANSMISSION/
TAPES
a. Eligibility Files:
1. Daily Update...... $50.00 per month.
2. Weekly Full File.. $200.00 per month.
3. Monthly or on $75.00 each request.
Request.
b. Bookkeeping Positions:
1. Daily............. $150.00 per month.
2. Weekly............ $100.00 per month.
3. Monthly or on $50.00 each request.
Request.
c. Activity:
1. Daily............. $150.00 per month.
d. Bookkeeping plus
Activity:
1. Daily............. $250.00 per month.
2. Weekly............ $200.00 per month.
e. Cash Settlement (fee
includes both dividends
and reorganizations;
transmissions are
separate):
1. Daily............. $100.00 per month.
f. Record Date Positions:
1. Daily............. $100.00 per month.
[[Page 3063]]
g. Status of Withdrawals
by Transfer:
1. Daily............. $100.00 per month.
24. PHILANET TERMINAL
a. Dedicated Line........ $250.00 per month.
b. Dial-up Line.......... $150.00 per month.
c. Installation.......... $600.00
d. Usage................. No Charge.
25. POSITION LISTINGS........ $45.00--per individual request (per date,
per CUSIP) (plus costs).
$360.00 annually--monthly basis (plus
costs).
$1,300.00 annually--weekly basis (plus
costs).
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\4\Deleted text is bracketed. New text is italicized.
*Transfer and deposit activity subject to pass-through costs.
The aforementioned fee revisions are intended to align fees with
costs incurred to provide particular services. The proposed rule change
is consistent with section 17A(b)(3)(D) of the Act\5\ in that it
provides for equitable allocations of reasonable dues, fees, and other
charges among participants.
\5\15 U.S.C. 78q-1(b)(3)(D) (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
Philadep does not perceive any burdens on competition as a result
of the proposed rule change.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
A Philadep participant bulletin will notify participants of changes
to the fee schedule and advise them to whom they may direct questions
upon receipt of the new fee schedule.
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)\6\ and Rule 19b-4(e)(2)\7\ promulgated thereunder
because the proposed rule change establishes or changes a due, fee, or
other charge imposed by Philadep. At any time within sixty days of the
filing of such 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.
\6\15 U.S.C. 78s(b)(3)(A)(ii) (1988).
\7\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 also will be available for
inspection and copying at Philadep. All submissions should refer to
File No. SR-Philadep-95-11 and should be submitted by February 20,
1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
\8\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-1672 Filed 1-29-96; 8:45 am]
BILLING CODE 8010-01-M