[Federal Register Volume 62, Number 37 (Tuesday, February 25, 1997)]
[Notices]
[Pages 8478-8479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4530]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38303; File No. SR-PHIL-96-18]


Self-Regulatory Organizations; Philadelphia Depository Trust 
Company; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Relating to the Establishment of Fees Charged for Direct 
Registration System

February 18, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 6, 1996, 
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

[[Page 8479]]

comments on the proposed rule change from interested persons.
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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 purpose of the proposed rule change is to establish Philadep's 
fee schedule for participants using direct registration system 
(``DRS'') services.

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), and (C) below, of the most significant aspects of 
such statements.\2\
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    \2\ The Commission has modified parts of these statements.
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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 establish Philadep's 
fee schedule for DRS services. Philadep proposes to enable its 
participants to use Philadep's processing environment to account for 
certain investors' purchases and sales of securities according to the 
DRS procedures. Philadep will establish a limited participant category 
of participant which will be charged the following fees:

1. Limited Participant Accountholder Fee--$225 per month
2. Deliver Order Transaction Processing Fee--$.45 per transaction

    Philadep participants receiving such a DRS delivery also will be 
charged $.45 per transaction. In addition, when a transfer agent mails 
a transaction advice to the shareholder, the transfer agent's fee of 
$.55 for mailing and handling the DRS transaction advice will be 
charged back to the participant directly by Philadep. Philadep will 
collect the advice fees and will periodically remit such fees to the 
transfer agent.
    The proposed rule change complies with Section 17A of the Act in 
providing for equitable allocation of reasonable dues, fees, and other 
charges among participants.

B. Self-Regulatory Organization's Statement on Burden on Competition

    Philadep 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.

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.

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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by Philadep, it has become effective 
pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(e)(2) 
thereunder.\4\ At any time within sixty days of the filing of the 
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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    \3\ 15 U.S.C. 78q-1(b)(3)(A) (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, 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 will also be available 
for inspection and copying at Philadep. All submissions should refer to 
the File No. SR-Phil-96-18 and should be submitted by March 18, 1997.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-4530 Filed 2-24-97; 8:45 am]
BILLING CODE 8010-01-M