[Federal Register Volume 62, Number 37 (Tuesday, February 25, 1997)]
[Notices]
[Pages 8479-8482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4608]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38305; File No. SR-Philadep-96-23]


Self-Regulatory Organizations; The Philadelphia Depository Trust 
Company; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change to Consolidate and Restate Its Fee Schedule

    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 23, 1996, 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).
---------------------------------------------------------------------------

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 consolidate and 
restate Philadep's schedule of fees and charges (Exhibit A).

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 basis for the proposed rule change and 
discussed any comments it received on the proposed rule changes. 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\
---------------------------------------------------------------------------

    \2\ The Commission has modified the text of the summaries 
prepared by Philadep.
---------------------------------------------------------------------------

(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 consolidate and 
restate

[[Page 8480]]

Philadep's schedule of fees and charges. This filing is being made in 
accordance with Philadep's policy to annually file a comprehensive 
schedule of all existing fees and charges. Philadep also is revising 
certain fees associated with the stock loan program.
    Additionally, Philadep is implementing a 3\1/2\% surcharge based on 
service fee revenues and pass-through charges to recover costs 
associated with making Philadep's system Year 2000 compliant. The 
surcharge will be billed and collected as part of routine monthly 
invoicing. Philadep currently estimates that Year 2000 costs will be 
recovered in three to four years. Philadep will evaluate surcharge 
revenues annually and will recommend to its Board of Directors any 
modifications that may become necessary, including the removal of the 
surcharge.
    Philadep believes the proposed rule change is consistent with 
Section 17A of the Act and the rules and regulations thereunder because 
the proposal provides for the equitable allocations of reasonable dues, 
fees, and other charges among participants.

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

    Philadep does not believe the proposed rule change will impose a 
burden on competition.

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

    Written comments were neither solicited nor received with respect 
to the proposed rule change.

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

    The foregoing rule change has become effective pursuant to Sections 
19(b)(3)(A)(ii) \3\ of the Act and pursuant to Rule 19b-4(e)(2) \4\ 
promulgated thereunder because the proposal establishes a due, fee, or 
other charge. 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).
    \4\ 17 CFR 240.19b-4(e)(2).
---------------------------------------------------------------------------

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 Room, 450 Fifth Street, N.W., Washington, 
D.C. 20549. Copies of such filing will also be available for inspection 
and copying at the principal office of Philadep. All submissions should 
refer to File No. SR-Philadep-96-23 and should be submitted by March 
18, 1997.

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

    \5\ 17 CFR 200.30-3(a)(12)
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.

Exhibit A--SR-PHILADEP-96-23

(Deleted text bracketed, new text italicized)

 Philadelphia Depository Trust Company Consolidated Restatement of Fees 
------------------------------------------------------------------------
                Service                                Fee              
------------------------------------------------------------------------
1. Account Fees:                                                        
    a. General Maintenance Fee.........  $400.00 per month with account 
                                          activity.                     
                                         $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.             

[[Page 8481]]

                                                                        
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.      
                                         1-300--$8.50.                  
                                         301-3000--$3.50.               
                                         3001 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..................  $22.95 per urgent certificate  
                                          withdrawal (same-day or next- 
                                          day).*                        
7. Customer Name Mailing:                                               
    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 and           $5.00 per request, plus        
 Ironclads.                               applicable transfer agent     
                                          fees.                         
10. MDO Movements:                                                      
    a. Automated Bookentry, Delivery/    $0.75 per movement.            
     Receive.                                                           
    b. Manual Bookentry, Delivery/       $1.50 per movement.            
     Receive.                                                           
    c. Automatic Bookentry,              $0.50 per CUSIP (daily         
     Interdepository, Deliveries.         deliveries).                  
                                         $0.55 per CUSIP (weekly        
                                          deliveries).                  
                                         $0.60 per CUSIP (bi-weekly     
                                          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 release.....  $0.35 each per line item to    
                                          broker and bank.              
    b. OCC pledge or release...........  $0.35 per line item.           
    c. SCCP margin pledge (no charge     $0.10 per line item.           
     for release).                                                      
14. Dividend and Interest Payments.....  $1.50 per cash line item;      
                                         $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, Corporate    $25.00 per position.           
     Bonds, Registered Municipal Bonds,                                 
     others.                                                            
    d. Post Corporate Actions..........  $20.00 per item (plus costs).  
16. Combined Legal Deposits and Letters  $6.25 per item (one legal      
 of Correction (Ironclads).               deposit and one letter of     
                                          correction is defined as one  
                                          item).                        
17. Research Fees:                                                      
    a. Per photocopy of records........  $4.00.                         
    b. Per microfiche copy.............  $4.00.                         
    c. Items less than 90 days old.....  No charge.                     
    d. Items 1 year old or less........  $15.00 per hour.               
    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...................  $35.00 per book.               
20. Stock Loan Program:                                                 
    Interest charge to lender..........  Percentage of [bank broker call
                                          rate] federal funds rate (fee 
                                          will be waived if less than   
                                          $500 per month).              
21. National Institutional Delivery                                     
 System (NIDS):                                                         
    a. Confirms........................  $0.40 per confirm.             
    b. For each unaffirmed trade         $0.09 to broker.               
     reported.                                                          
    c. For each eligible trade reported  $0.09 to broker and clearing   
                                          agent.                        
    d. For each ineligible trade         $0.09 to broker and clearing   
     reported.                            agent.                        
    e. Automated Settlement............  $0.26 per receive and per      
                                          delivery to broker and        
                                          clearing agent.               

[[Page 8482]]

                                                                        
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 Reporting       $0.40 per deposit for          
     Service (ADRS).                      participants utilizing        
                                          Philadep ADRS 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 Request.......  $75.00 each request.           
    b. Bookkeeping Positions:                                           
        1. Daily.......................  $150.00 per month.             
        2. Weekly......................  $100.00 per month.             
        3. Monthly or on Request.......  $50.00 each 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.             
    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                                                   
    a. General Fees....................  $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).           
    b. Municipal Bonds Quantity          1st 100 CUSIPs--$20 per CUSIP. 
     Discount \1\ (multiple CUSIP        2nd 100 CUSIPs--$15 per CUSIP. 
     requests for the same issuer and    3rd 100 CUSIPs--$10 per CUSIP. 
     for the same date).                 In excess of 300 CUSIPs--$7.50.
26. Direct Registration System:                                         
    a. Limited Participants:                                            
        1. Accountholder Fee...........  $225.00 per month.             
        2. Deliver Order Transaction     $0.45 per transaction.         
         Processing Fee.                                                
    b. Participants:                                                    
        1. Deliver Order Transaction     $0.45 per transaction.         
         Processing Fee.                                                
        2. Transfer Agent Fee..........  $0.55 for mailing and handling.
27. Year 2000 System Change Surcharge..  Participants monthly fee       
                                          billings (which include pass- 
                                          through charges) will include 
                                          a 3\1/2\% surcharge to offset 
                                          costs to make Philadep systems
                                          Year 2000 compliant. The      
                                          surcharge will be removed by  
                                          Philadep's Board of Directors 
                                          once such costs are fully     
                                          offset by revenues collected  
                                          from the surcharge.           
------------------------------------------------------------------------
* Transfer and deposit activity subject to pass-through charges.        
\1\ Requests made pursuant to this discount may take ten or more        
  business days to be reached and sent.                                 

[FR Doc. 97-4608 Filed 2-24-97; 8:45 am]
BILLING CODE 8010-01-M