[Federal Register Volume 66, Number 85 (Wednesday, May 2, 2001)]
[Notices]
[Pages 22057-22058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10981]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44222; File No. SR-DTC-00-16]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Revising The Depository Trust Company's Fee Schedule and Amending the 
Electronic Dividend System Procedures

April 25, 2001.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 14, 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 revises DTC's fee schedule and amends the 
elective dividend system (EDS) procedures.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule

    In its filing with the Commission, DTC included statements 
concerning the purpose of and statutory 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.\2\
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    \2\ The Commission has modified parts of these statements.
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(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 revise the EDS 
procedures so that they adequately describe the functioning of the EDS 
system. The

[[Page 22058]]

proposed rule change also revises DTC's fee schedule so that the fees 
align with the services referenced.

------------------------------------------------------------------------
                                                                Proposed
              Service                       Present fee            fee
------------------------------------------------------------------------
For each reclaim instruction        None......................    $25.00
 processed over the EDS after
 payable date in respect of
 withholding tax relief on
 Netherlands securities as part of
 the DTC Tax Relief service.
For each EDS instruction relating   None......................     25.00
 to cash-in-lieu of fractional
 shares, or round-up for
 additional shares.
For each dividend, interest or      None......................     16.26
 principal payment arranged to be
 paid at a participant's request
 directly from agent to
 participant, where such payment
 is made by a foreign issuer to
 such participant.
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    DTC believes that the proposed rule change is consistent with 
section 17A of the Act \3\ and the rules thereunder because fees will 
be more equitably allocated among users of DTC's services and EDS 
procedures will better describe current EDS functionality.
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    \3\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC perceives on impact on competition by reason of the proposed 
rule change.

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

    Written comments from DTC participants or others have not been 
solicited or received on the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Act

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by DTC, it has become effective pursuant 
to section 19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2) 
thereunder.\5\ 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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    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 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 submissions 
should file six copies thereof 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 will also be available for 
inspection and copying at DTC. All submissions should refer to the File 
No. SR-DTC-00-16 and should be submitted by May 23, 2001.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-10981 Filed 5-1-01; 8:45 am]
BILLING CODE 8010-01-M