[Federal Register Volume 61, Number 213 (Friday, November 1, 1996)]
[Notices]
[Pages 56588-56590]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28008]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37864; File No. SR-DTC-96-16]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Fees and Charges

October 24, 1996.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''), notice is hereby given that on September 24, 1996, The 
Depository Trust Company (``DTC'') 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 DTC. The Commission is publishing this notice to solicit 
comments from interested persons on the proposed rule change.
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    \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 revises DTC's Service Fee Schedule, which 
is attached as Exhibit 1.

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

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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.\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 the fees 
associated with the Notice of Order Execution (``NOE''), the Institute 
Instruction (``II''), and Standing Instructions Database (``SID'') 
features of DTC's Institutional Delivery (``ID'') System. DTC 
continually strives to align service fees with estimated service costs 
and these revisions are part of that effort. Under the proposed rule 
change, the fees for NOEs and IIs will be billed to broker-dealers 
because these instructions facilitate the communication of execution 
and allocation details between broker-dealers and their institutional 
clients. The revised fee structure for SID is similar to the fee 
structure for ID confirmations which allocate the cost of the 
institution's copy to the bank and/or broker-dealer.
    DTC is not currently assessing fees for the use of NOEs and IIs 
because these services currently are offered to participants and other 
parties as a pilot program.\3\ However, DTC intends to begin assessing 
fees for NOEs and IIs as of October 1, 1996.\4\ Participants and other 
users of SID will be subject to the fee revisions as of October 1, 
1996.
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    \3\ Although DTC offers NOEs and IIs to its participants 
pursuant to a DTC pilot program, the Commission previously has fully 
approved these services. Securities Exchange Act Release No. 34119 
(June 10, 1994) 59 FR 31660 [File No. SR-DTC-94-04] (order approving 
proposed rule change) Securities Exchange Act Release No. 35736 (May 
18, 1995) 60 FR 27577 [File No. SR-DTC-95-08] (order approving 
proposed rule change).
    \4\ The Commission previously approved fees for the NOE and II 
services in DTC's 1995 fee schedule, but DTC has not assessed its 
participants for these services. Securities Exchange Act Release No. 
35736 (May 18, 1995) 60 FR 27577 [File No. SR-DTC-95-08] (order 
approving proposed rule change).
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    DTC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \5\ and the rules and 
regulations thereunder because it provides for the equitable allocation 
of dues, fees, and other charges among DTC's participants and other 
parties who use DTC's ID System.
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    \5\ 15 U.S.C. 78q-1 (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 purpose of the Act.

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

    No comments on the proposed rule change were solicited or received.

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\ of the Act and pursuant to Rule 19b-4(e)(2) \7\ 
promulgated thereunder because the proposal establishes or changes a 
due, fee, or other change imposed by DTC. 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
    \7\ 17 CFR 240.19b-4(e)(2) (1996).
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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, N.W., Washington, D.C. 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, N.W., 
Washington, D.C. 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of DTC. All 
submissions should refer to File No. SR-STC-96-16 and should be 
submitted by November 22, 1996.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12) (1996).
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Margaret H. McFarland,
Deputy Secretary.

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[FR Doc. 96-28008 Filed 10-31-96; 8:45 am]
BILLING CODE 8010-01-C