[Federal Register Volume 63, Number 90 (Monday, May 11, 1998)]
[Notices]
[Page 25890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12350]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39953; File No. SR-DTC-98-06]


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

May 4, 1998.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''), notice is hereby given that on April 16, 1998, 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).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change establishes fees for the matching feature 
of DTC's Institutional Delivery (ID) system.

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 
Items 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 matching feature is an enhancement to the current confirmation 
and affirmation processing in the ID system.\3\ The proposed fees are 
designed to recover DTC's estimated service costs and will be effective 
for services provided after April 30, 1998. Under the proposed rule 
change, DTC will charge $0.08 for each matched or unmatched 
confirmation in addition to the regular confirmation fees. DTC will 
charge this fee to the following parties: (1) To a clearing broker for 
each matched or unmatched confirmation to a broker, clearing broker, or 
interested party; (2) to the clearing agent for each matched or 
unmatched confirmation to the ID agent or clearing agent; and (3) to 
the clearing agent or clearing broker for each matched or unmatched 
confirmation to an institution that either agrees to pay for it or 
$0.04 when the parties agree to split the fee.
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    \3\ For a description of the matching feature of the ID System, 
refer to Securities Exchange Act Release No. 39832 (April 6, 1998), 
63 FR 18062 [File No. SR-DTC-95-23] (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 \4\ 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 that use DTC's ID service.
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    \4\ 15 U.S.C. 78q-1.
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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 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) \5\ of the Act and Rule 19b-4(e)(2) \6\ 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 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(e)(2).
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IV. Solicitation of Comments

    Interested person are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. 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-DTC-98-06 and should be 
submitted by June 1, 1998.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-12350 Filed 5-8-98; 8:45 am]
BILLING CODE 8010-01-M