[Federal Register Volume 62, Number 164 (Monday, August 25, 1997)] [Notices] [Pages 44995-44997] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-22525] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-38949; File No. SR-DTC-97-11] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fees and Charges August 19, 1997. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on June 19, 1997, 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 [[Page 44996]] Commission is publishing this notice to solicit comments from interested persons on the proposed rule change. --------------------------------------------------------------------------- \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 proposed rule change revises DTC's fee schedule for its transfer agent drop service (``TAD service''), 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 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\ --------------------------------------------------------------------------- \2\ The Commission has modified the text of the summaries prepared by DTC. --------------------------------------------------------------------------- (A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change DTC's TAD service provides transfer agents located outside of New York City with a central location within Manhattan for the receipt of securities from banks, broker-dealers, depositories, and shareholders.\3\ Until 1996, a similar service was offered by the New York office of the Midwest Clearing Corporation (``MCC'').\4\ --------------------------------------------------------------------------- \3\ For a complete description of the TAD service, refer to Securities Exchange Act Release No. 37562 (August 13, 1996), 61 FR 43283 [File No. SR-DTC-96-09] (order approving proposed rule change.) \4\ MCC withdrew from the clearing and depository business in 1996. Securities Exchange Act Release No. 36684 (January 5, 1996), 61 FR 1195 [File Nos. SR-CHX-95-27, SR-DTC-95-22, SR-MCC-95-04, SR- MSTC-95-10, SR-NSCC-95-15] (order approving MCC's withdrawal from the clearance and settlement business). --------------------------------------------------------------------------- The purpose of the proposed rule change is to revise the fees associated with DTC's TAD service. DTC continually strives to align service fees with estimated service costs, and the subject revisions are part of that effort. DTC currently charges the users of its TAD service the same fees that MCC had charged since 1994 for its drop services. 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 TAD service. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78q-1 (1988). --------------------------------------------------------------------------- (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 purposes 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 charge 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A)(ii). \7\ 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. Sec. 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-DTC-97-11 and should be submitted by September 15, 1997. For the Commission by the Division of Market Regulation, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [[Page 44997]] Exhibit 1.--Transfer Agent Drop Service Fees ------------------------------------------------------------------------ Type of service Present fee New fee ------------------------------------------------------------------------ Monthly Service Charge.......... $250.00 $500.00 Window Tickets Issued........... .75 1.00 Microfilming (Per Hour)......... 14.50 15.00 Microfilming Securities (Per Roll).......................... 15.75 16.00 Dividend Reinvestment Plan Voluntary Contributions (Window Ticket Per Check).............. .75 1.00 Wire Transfer Service (Window Ticket Per Check).............. .75 1.00 Check Collection (Window Ticket Per Check)..................... .75 1.00 Routing Envelopes (Window Ticket Per Check)..................... .75 1.00 Daily Valuation (Daily Flat Fee) 175.00 \1\ 25.00 to 175.00 Midnight Closings (Per Occurrence).................... 1,000.00 1,000.00 ------------------------------------------------------------------------ \1\ Depending on number of issues and activity. [FR Doc. 97-22525 Filed 8-22-97; 8:45 am] BILLING CODE 8010-01-M