[Federal Register Volume 63, Number 238 (Friday, December 11, 1998)]
[Notices]
[Page 68493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32959]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40752; File No. SR-DTC-98-23]


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

December 7, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 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 on the proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change amends DTC's service fee schedule to 
establish a fee for transactions processed through DTC's two-way link 
with Deutsche Borse Clearing AG (``DBC'').\2\

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. 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.\3\

(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, which became effective for 
services provided on or after November 17, 1998, is to establish a new 
surcharge designed to recover DTC's costs to implement an enhanced two-
way link with DBC from DTC participants whose transactions are 
processed through the link. DTC proposes to make the following revision 
to its service fee schedule:

------------------------------------------------------------------------
              Service                    Present fee       Proposed fee
------------------------------------------------------------------------
IX. Automated Deliver Orders:
     A surcharge for each    None...............           $3.65
     item delivered or received
     through the DTC/DBC link
     facility.
------------------------------------------------------------------------

    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 fees will more equitably be allocated 
among DTC participants.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ See Exchange Act Release No. 40660 (November 10, 1998), 63 
FR 64135 (order approving DTC's proposal to establish a two-way link 
with DBC).
    \3\ The Commission has modified the text of the summaries 
prepared by DTC.
    \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

    Comments on the proposed rule change were neither solicited nor 
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) of the Act \5\ and pursuant to Rule 19b-4(e)(2) \6\ 
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 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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    \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 persons 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-98-23 and should be 
submitted by January 4, 1999.
    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-32959 Filed 12-10-98; 8:45 am]
BILLING CODE 8010-01-M