[Federal Register Volume 64, Number 151 (Friday, August 6, 1999)]
[Notices]
[Page 43004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20302]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41683; File No. SR-DTC-99-19]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Reducing the Fees for the Mortgage-Backed Securities Division

August 2, 1999.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ notice is hereby given that on July 21, 1999, 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 parties.
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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 revises the service fee schedule of DTC's 
Mortgage-Backed Securities (``MBS'') Division.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for the Proposed Rule

    In its filing with the Commission, DTC 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. 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 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 proposed rule change revises the service fees for the MBS 
Division of DTC effective August 1, 1999, in order to more closely 
align the fees with current estimated unit service costs.\3\ The 
revised fee schedule will result in an overall fee reduction for MBS 
Division services of approximately 15.5 percent. The fee decrease is a 
result of increased transaction volumes and decreased costs.
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    \3\ A copy of the revised MBS Division service fee schedule is 
attached as Exhibit 2 of DTC's proposed rule change, which is 
available for inspection and copying at the Commission's Public 
Reference room or at DTC.
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    For these reasons, DTC believes that the proposed rule change is 
consistent with section 17A(b)(3)(D) of the Act,\4\ which requires that 
the rules of a registered clearing agency provide for equitable 
allocation of reasonable dues, fees, and other charges for services 
which it provides to its participants.
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    \4\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Self-Regulator 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 for 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 has not solicited nor received written comments 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 a due, 
fee, or other charge imposed by DTC, it has become effective pursuant 
to section 19(b)(3)(A)(ii) of the Act \5\ and Rule 18b-4(f)(2) 
thereunder.\6\ 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 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 for 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. 
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 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 will also be available for 
inspection and copying at DTC. All submissions should refer to the File 
No. SR-DTC-99-19 and should be submitted by August 27, 1999.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12)
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-20302 Filed 8-5-99; 8:45 am]
BILLING CODE 8010-01-M