[Federal Register Volume 69, Number 17 (Tuesday, January 27, 2004)]
[Notices]
[Pages 3959-3962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1604]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49100; File No. SR-DTC-2003-15]


Self-Regulatory Organizations; the Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating To Revisions to the Fee Schedule

January 20, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 29, 2003, 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.
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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 consists of revisions to DTC's fee 
schedule for services.\2\
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    \2\ A copy of DTC's 2004 service fee revisions is attached as 
Exhibit 1.
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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 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.\3\
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    \3\ 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 adjust the fees DTC 
charges for various services so that the fees are aligned with DTC's 
estimated service costs for 2004, effective with respect to services 
provided on and after January 1, 2004.
    DTC believes that the proposed rule change is consistent with the 
requirements of section 17A of the Act and the rules and regulations

[[Page 3960]]

thereunder applicable to DTC because fees will be more equitably 
allocated among users of DTC services.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC perceives no 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 Action

    Because the foregoing rule change establishes or changes fees to be 
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).\5\ At any time 
within 60 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. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-DTC-2003-15. This file number should be included on the 
subject line if e-mail is used. To help the Commission process and 
review your comments more efficiently, comments should be sent in 
hardcopy or by e-mail but not by both methods. 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 and DTC's Web site at www.dtc.org/impNtc/mor/index.html. All submissions should refer to File No. SR-DTC-
2003-15 and should be submitted by February 17, 2004.

    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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Jill M. Peterson,
Assistant Secretary.

               Exhibit 1.--2004 DTC Service Fee Revisions
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                 Service                    Current fee    Proposed fee
------------------------------------------------------------------------
                             ASSET Servicing
                                Dividends
------------------------------------------------------------------------
P&I:
    Floating Payable Date Securities               $1.31           $2.40
     (ARPs, ARNs).......................
    VRDO................................            2.40            2.90
    DIVANN--Annual Fee..................        1,800.00        9,000.00
Reorg New Fees:
    Proxy Record Date Meetings..........            0.00           (\1\)
    Dissent Letters/Shareholder Demands.            0.00           (\2\)
Reorg Modified Fees:
    Full Prerefundings..................            0.00            7.00
     Voluntary Exchange/Tender..........           35.00           (\3\)
    Voluntary Dividend Reinvest Program.           11.29           14.00
    Remarketing Agent Fee...............            0.00           17.50
    CRS Service Election................           25.00           35.00
Custody Fee:
    COD/Pickup--Next Day................
    COD/Pickup-- Next Day...............           16.91           30.00
    COD/Ship............................           18.80           24.00
    COD/Redeposit.......................           15.35           24.00
    Trailing Docs.......................            3.48            4.50
    Certificate Copies--PINS............            8.00           15.00
    W/T's...............................           25.69           30.00
    Rush W/T's..........................           46.69           65.00
    COD/Partial.........................           12.83           24.00
    Reorg Rejects.......................           37.93           50.00
    Cancel Processing...................           12.67           16.00
    Account No. Change..................            4.37            5.00
    Non Securitized Rec.................            3.09            4.50
    Coupon Clipping.....................            7.31            9.00
    Custom/Mail Letter..................            4.72            5.50
    COD/Pickup--Same Day................           16.91           30.00
    Non-Transferables (Long Position)               0.17            1.00
     Surcharge--Greater Than 6 Years....
Deposits:
    DWAC................................            1.00            1.50
    Rejects.............................           41.00           50.00

[[Page 3961]]

 
    Deposit Mail Charge.................            1.05            1.50
    Research of CUSIP for Name Change...            4.85           15.00
WTs:
    WT DMD..............................            5.40            9.50
    WT Delivery to the Participant......            7.90            9.50
    DWAC................................            1.00            1.50
    WT DMD Mail Cost....................            2.50            3.00
    WT Hold and Bust Feature............            0.60            1.00
    Rush WT Transfer....................           49.69           65.00
    WT Mail Issue Surcharge for TA                  1.05            1.50
     Outside of NYC.....................
    Rejects.............................           41.00           50.00
    WT DMA (Cert or DRS)................            4.60            5.00
CODs:
    Critical COD (Cede and Co.).........           46.69           75.00
DRS:
    DRS Certificate Surcharge (Cert.                1.00            5.00
     Disincentive)......................
    DRS LPA Account Charge per Month....          225.00          275.00
    DRS LPA Application Fee.............            0.00          250.00
Securities Processing Research Fee......            0.00           55.00
-----------------------------------------
                               SETTLEMENT
------------------------------------------------------------------------
Deliveries:
    MMI Transactions....................            0.56            0.70
    Day (Zone B) Receiving..............            0.26            0.27
    Day (Zone B) Deliveries.............            0.44            0.45
    Payment Orders......................            0.10            0.11
    Memo Segregation....................            0.10            0.09
    Institutional Deliveries............            0.17            0.16
    CNS Deliveries......................            0.17            0.16
New Issues:
    Basic BEO Eligibility...............          250.00          275.00
    CD BEO Eligibility..................           90.00          125.00
    Non-Receipt of Final Offering Docs..            0.00          300.00
    Multi Certificated..................          675.00        1,000.00
    MMI Swings..........................            0.00          250.00
    Single Certificated.................          585.00          750.00
    WUN Incentive Rebate................           (\4\)  ..............
-----------------------------------------
                       INTERNATIONAL TAX SERVICES
------------------------------------------------------------------------
Foreign Tax Service (EDS)...............           27.00           (\5\)
DTax--PTS Inquiries.....................            5.00           15.00
DTax--Web...............................        1,500.00        5,000.00
DTax--CCF File..........................        1,500.00        7,500.00
U.S. Tax Withholding--Minimum Annual Fee             N/A        5,000.00
U.S. Tax Withholding--Tax Adjustments...            1.50            1.80
-----------------------------------------
                                TRAINING
------------------------------------------------------------------------
E-Learning Courses (Per Course).........            0.00           75.00
Instructor Led Course (Customer Site)...           (\6\)           (\7\)
Instructor Led Course (Internet)........            0.00           (\8\)
E-Learning Certification Exam...........            0.00         400.00
------------------------------------------------------------------------
\1\ $0.50 per participant record date position.
\2\ $400 per dissent letter/shareholder demand processed.
\3\ $35 per Letter of Transmittal, $20 offer service fee per position
  holder, and a voluntary offering instruction fee of $20 for the first
  50 instructions, and $0.70 for each instruction over 50.
\4\ A rebate of $52 for single CUSIP issues, and $107 for multi-CUSIP
  issues, will be applied if the issue is submitted via WUM.
\5\ One half of one percent (.5%) of the tax relief secured by the
  participant. A minimum fee of $30 and a maximum fee of $500 per
  transaction will apply.
\6\ Current fee is $1000 per day per customer visit.
\7\ $750 per student with a two student minimum.
\8\ $250 per student with a two student minimum.


[[Page 3962]]

[FR Doc. 04-1604 Filed 1-26-04; 8:45 am]
BILLING CODE 8010-01-P