[Federal Register Volume 63, Number 238 (Friday, December 11, 1998)]
[Notices]
[Pages 68494-68495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32961]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40751; File No. SR-DTC-98-22]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Fees and Charges
December 7, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on
[[Page 68495]]
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 from interested persons on the proposed rule
change.
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The proposed rule change establishes the fees charged by DTC for
various services provided.
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\
(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 fees for
use of DTC's withhold and cancellation feature (known as ``hold and
bust'') of the Direct-Mail-by-the-Depository service. The fees are
designed to recover DTC's estimated service costs and will be
established under the heading ``A. Registered Securities, II.
Withdrawals-by-Transfer''.
DTC is adding the following to its service fee schedule:
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Service Present fee Proposed fee
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For each assignment initially withheld NONE..................... $.53 per item withheld.
at request of participant and
thereafter directly mailed.
For each assignment canceled at request NONE..................... $1.49 per item canceled.
of participant where assignment was not
withheld prior to direct mail.
For each assignment canceled at request NONE..................... $1.82 per item canceled.
of participant after being withheld at
request of participant.
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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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ The Commission has modified the text of the summaries
prepared by DTC.
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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)\3\ of the Act and pursuant to Rule 19b-4(e)(2)\4\
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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\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 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. 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-98-22 and should be
submitted by January 4, 1999.
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).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-32961 Filed 12-10-98; 8:45 am]
BILLING CODE 8010-01-M