[Federal Register Volume 62, Number 37 (Tuesday, February 25, 1997)] [Notices] [Pages 8478-8479] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-4530] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-38303; File No. SR-PHIL-96-18] Self-Regulatory Organizations; Philadelphia Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Establishment of Fees Charged for Direct Registration System February 18, 1997. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on November 6, 1996, Philadelphia Depository Trust Company (``Philadep'') 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 Philadep. The Commission is publishing this notice to solicit [[Page 8479]] comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1) (1988). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The purpose of the proposed rule change is to establish Philadep's fee schedule for participants using direct registration system (``DRS'') services. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Philadep 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. Philadep 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 parts of these statements. --------------------------------------------------------------------------- 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 establish Philadep's fee schedule for DRS services. Philadep proposes to enable its participants to use Philadep's processing environment to account for certain investors' purchases and sales of securities according to the DRS procedures. Philadep will establish a limited participant category of participant which will be charged the following fees: 1. Limited Participant Accountholder Fee--$225 per month 2. Deliver Order Transaction Processing Fee--$.45 per transaction Philadep participants receiving such a DRS delivery also will be charged $.45 per transaction. In addition, when a transfer agent mails a transaction advice to the shareholder, the transfer agent's fee of $.55 for mailing and handling the DRS transaction advice will be charged back to the participant directly by Philadep. Philadep will collect the advice fees and will periodically remit such fees to the transfer agent. The proposed rule change complies with Section 17A of the Act in providing for equitable allocation of reasonable dues, fees, and other charges among participants. B. Self-Regulatory Organization's Statement on Burden on Competition Philadep 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 Comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule change establishes or changes a due, fee, or other charge imposed by Philadep, it has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(e)(2) thereunder.\4\ 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. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78q-1(b)(3)(A) (1988). \4\ 17 CFR 240.19b-4(e)(2) (1994). --------------------------------------------------------------------------- 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 Philadep. All submissions should refer to the File No. SR-Phil-96-18 and should be submitted by March 18, 1997. For the Commission by the Division of Market Regulation, pursuant to delegated authority.\5\ --------------------------------------------------------------------------- \5\ 17 CFR 200.30-3(a)(12) (1994). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 97-4530 Filed 2-24-97; 8:45 am] BILLING CODE 8010-01-M