[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\                  
------------------------------------------------------------------------
           Service                                Fee                   
------------------------------------------------------------------------
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