[Federal Register Volume 66, Number 36 (Thursday, February 22, 2001)]
[Notices]
[Pages 11190-11191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-4354]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43964; File No. SR-DTC-00-18]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Establishment of ``LENS-on-the-Web'' Procedures and 
Fees

February 14, 2001.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 17, 2000, 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 parties.
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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 ``LENS-on-the-Web'' procedures 
and fees whereby DTC participants may order copies of certain notices 
received by DTC from a menu on DTC's Internet website (www.DTC.org) 
through DTC's Legal Notice System (``LENS'').\2\
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    \2\ The proposed procedures, attached as Exhibit B to DTC's 
proposed rule change, are available for inspection and copying in 
the Commission's Public Reference Room and the principal office of 
DTC.
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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

[[Page 11191]]

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 these statements.\3\
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    \3\ 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

    In 1991, DTC created LENS to reduce the amount of paper that its 
participants receive.\4\ LENS has been offered to DTC Participants 
since 1991 over DTC's proprietary PTS 3270 terminal network. Through 
the proposed rule change, DTC is seeking to offer the same LENS service 
to its participants over the Internet.\5\
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    \4\ Securities Exchange Act Release No. 29291 (June 12, 1991), 
56 FR 28190 (File No. SR-DTC-91-08) (order approving LENS use by DTC 
participants).
    \5\ Initially, DTC intends to make only certain categories of 
LENS notices and LENS services available through LENS-on-the-Web 
(For example, asset backed notices and position-check capability 
will not be included at the outset.). DTC will ultimately, however, 
make most, if not all, LENS notices and services available over 
LENS-on-the-Web, provided security issues and processing capacity 
permit.
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    LENS and LENS-on-the-Web allow participants to prescreen certain 
notices \6\ so that participants can avoid receiving and, ultimately, 
paying for the duplication and distribution of notices that are 
irrelevant to them. LENS has allowed, where practical, certain 
enhancements to the historical notice distribution system. Enhancements 
have included: (1) The identification of CUSIP numbers; (2) 
participants' ability to search by CUSIP; (3) participants' access to a 
computer record of past notices with automatic order capability; (4) 
DTC's distribution of certain notices which would otherwise not be 
distributed by DTC, given their length or relative importance; and (5) 
equitable billing.\7\
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    \6\ These include notices relating to bankruptcies, tax 
information, corporate status, and transfer agents which are 
received by DTC and which DTC chooses to make available to 
participants via LENS and LENS-on-the-Web.
    \7\ A participant only pays for those notices that it orders.
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    Pricing for LENS-on-the-Web will be as follows:

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            Activity                  Description        Proposed fee
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Access a Notice.................  Unlimited viewing   $5 per notice.
                                   and/or
                                   downloading of a
                                   notice during a
                                   single user's
                                   online session.
Subscription....................  Unlimited viewing   $999 per month per
                                   and/or              participant
                                   downloading of      number.
                                   notice(s) by one
                                   or more users.
E-Mail..........................  E-mail a notice to  $5 per e-mail
                                   one or more         form.
                                   recipients.
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    DTC believes that the proposed rule change is consistent with the 
requirements of section 17A of the Act \8\ and the rules and 
regulations thereunder applicable to DTC because it promotes 
efficiencies in the clearance and settlement of securities 
transactions.
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    \8\ 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, in the public interest, and for 
the protection of investors.

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

    DTC has neither solicited nor received written comments from 
participants. DTC will notify the Commission of any written comments 
received by DTC.

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)(iii) \9\ of the Act and Rule 19b-4(f)(4) \10\promulgated 
thereunder because it effects a change in an existing service of DTC 
that does not adversely affect the safeguarding of securities or funds 
in the custody or control of the clearing agency or for which it is 
responsible and does not significantly affect the respective rights or 
obligations of the clearing agency or persons using the service and 
pursuant to section 19(b)(3)(A)(ii) \11\ of the Act and Rule 19b-
4(f)(2) \12\ 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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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(4).
    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 17 CFR 240.19b-4(f)(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 submission 
should file six copies therof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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, NW., 
Washington, DC 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-00-18 and should be 
submitted by March 15, 2001.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-4354 Filed 2-21-01; 8:45 am]
BILLING CODE 8010-01-M