[Federal Register Volume 61, Number 151 (Monday, August 5, 1996)]
[Notices]
[Pages 40692-40693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19762]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37490; File No. SR-DTC-96-12]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Regarding the Quarterly Assessment of Participants for Lines of Credit
Costs
July 29, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 12, 1996, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change (File No.
SR-DTC-96-12) 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposal is to change from a monthly basis to a
quarterly basis DTC's assessment of participants to recover its costs
of obtaining a committed line of credit to fund shortfalls resulting
from late payments of principal and income (``P&I payments'').
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\
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\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 proposal is to change from a monthly basis to a
quarterly basis DTC's assessment of participants to recover its costs
of obtaining a committed line of credit to fund shortfalls resulting
from late P&I payments. In order to help assure that DTC is able to
allocate P&I payments to participants in same-day funds on the payment
date, DTC has obtained a committed bank line of credit to support P&I
Payment allocations of funds not received by DTC's 2:30 p.m. cut-off
time. DTC's procedures provide that the commitment fee paid by DTC will
be charged to participants monthly on a pro-rata basis based upon the
P&I payments that each participant received during the previous
calendar year or other reasonably determined time period.\3\ The
purpose of the proposed rule change is to provide for this charge to be
made quarterly, instead of monthly, because DTC is billed on a
quarterly basis.
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\3\ Securities Exchange Act Release No. 36837 (February 13,
1996), 61 FR 6404 [File No. SR-DTC-96-02] (notice of filing and
immediate effectiveness of proposed rule change regarding principal
and income payments to participants).
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DTC believes that the proposed rule change is consistent with
Section 17A of the Act \4\ and the rules and regulations thereunder,
because it will provide for the equitable allocation of dues, fees, and
other charges among participants.
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\4\ 15 U.S.C. Sec. 78q-1 (1988).
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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 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
DTC did not solicit comments on the proposed rule change.
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) \5\ of the Act and pursuant to Rule 19b-4(e)(2) \6\
promulgated thereunder in that the proposal changes a due, fee, or
other charge. At any 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
[[Page 40693]]
investors, or otherwise in furtherance of the purposes of the Act.
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\5\ 15 U.S.C. Sec. 78s(b)(3)(A)(ii) (1988).
\6\ 17 CFR 240.19b-4(e)(2) (1995).
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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. Sec. 552, will be available for inspection and copying in
the Commission's Public Reference Room, 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-96-12 and should be
submitted by August 26, 1996.
\7\ 17 CFR 200.30-3(a)(12) (1995).
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For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-19762 Filed 8-2-96; 8:45 am]
BILLING CODE 8010-01-M