[Federal Register Volume 60, Number 159 (Thursday, August 17, 1995)]
[Notices]
[Pages 42929-42930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20397]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36093; File No. SR-DTC-95-13]
Self-Regulatory Organizations; the Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Fees and Charges
August 11, 1995.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on July 26, 1995, 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.
\1\ 15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
DTC is filing the proposed rule change in order to reduce the
monthly usage fees charged to its participants for issuing/paying agent
(``IPA'') accounts from $565 to $245.
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\
\2\ 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
The purpose of the proposed rule change is to reduce the monthly
usage fees charged to DTC participants for IPA accounts from $565 to
$245 per month. DTC's Money Market Instrument (``MMI'') programs
require that IPAs have a DTC account reserved solely for MMI issuance
and paying agency activity. DTC's current usage charge is $565 per
month for each account up to five accounts. For each account over five,
the fee is $245 per month.
On August 21, 1995, medium-term notes (``MTNs'') and short-term
bank notes (STBNs'') will become part of DTC's MMI programs. This will
necessitate the creation of separate IPA accounts by MTN and STBN IPAs
that do not already have a separate IPA account for other existing MMIs
such as commercial paper and institutional certificates of deposit.
These may include IPAs that previously have conducted their MTN and
STBN issuance/payment activity through an existing participant account.
The charge for these new accounts and all existing IPA accounts now
will be $245 per account per month.
The proposed rule change is consistent with the requirements of
Section 17A of the Act and the rules and regulations thereunder because
it provides for the equitable allocation of dues, fees, and other
charges among DTC's participants.
(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.
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
[[Page 42930]]
time within sixty days of the filing of such 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
\4\ 17 CFR 240.19b-4(e)(2) (1994).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. 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 will also be available
for inspection and copying at the principal office of DTC. All
submissions should refer to File No. SR-DTC-95-13 and should be
submitted by September 7, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
\5\ 17 CFR 200.30-3(a)(12) (1994).
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[FR Doc. 95-20397 Filed 8-16-95; 8:45 am]
BILLING CODE 8010-01-M