[Federal Register Volume 61, Number 216 (Wednesday, November 6, 1996)]
[Notices]
[Pages 57505-57506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28518]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37906; File No. SR-DTC-96-18]
Self-Regulatory Organizations; the Depository Trust Company;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Revision of Fees
October 31, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 17, 1996, 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. Sec. 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 proposed rule change reduces the fee associated with book-entry
deliveries made through DTC and the National Securities Clearing
Corporation's (``NSCC'') Continuous Net Settlement (``CNS'') system.
DTC is reducing the fee from $0.08 to $0.075 per item delivered.
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 proposed rule change is to revise the fee
associated with book-entry deliveries made through DTC and NSCC's CNS
system. The CNS delivery fees were last revised when DTC converted to
an all same-day funds settlement (``SDFS'') system in February 1996. At
that time, the CNS delivery fee increased from $0.07 to $0.08 per item
delivered or received through the CNS system. The revised fee was an
estimate of the cost of processing such transactions in an SDFS
environment rather than in a next-day funds settlement environment.
Since the conversion, DTC has determined that usage of DTC's computer
resources supports a reduction in the CNS delivery fee from $0.08 to
$0.075 per item delivered or received. The reduced fee became effective
on October 15, 1996. DTC believes that the proposed rule change is
consistent with Section 17A(b)(3)(D) of the Act \3\ and the rules and
regulations thereunder because it provides for the equitable
allocations of reasonable dues, fees, and other charges among DTC's
participants.
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\3\ 15 U.S.C. Sec. 78q-1(b)(3)(D) (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
No written comments have been solicited or received. 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 forgoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \4\ and pursuant to Rule 19b-4(e)(2) \5\
promulgated thereunder because the proposal changes a due, fee, or
other charge imposed by DTC. 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
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) (1988).
\5\ 17 CFR 240.19b-4(e)(2) (1996).
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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 Section, 450 Fifth Street, N.W.,
Washington, D.C. 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-96-18 and should be
submitted by November 27, 1996.
[[Page 57506]]
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) (1996).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-28518 Filed 11-5-96; 8:45 am]
BILLING CODE 8010-01-M