[Federal Register Volume 76, Number 9 (Thursday, January 13, 2011)]
[Notices]
[Pages 2430-2431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-663]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63659; File No. SR-DTC-2010-17]
Self-Regulatory Organizations; the Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Fee Revisions
January 6, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 28, 2010, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II, which Items have been prepared primarily
by DTC. DTC filed the proposed rule change pursuant to Section
19(b)(3)(A)(ii) of the Act \2\ and Rule 19b-4(f)(2) \3\ thereunder so
that the proposal was effective upon filing with the Commission. 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).
\2\ 15 U.S.C. 78s(b)(3)(A)(ii).
\3\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of this filing is to revise the fees for certain
services provided by DTC.
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.
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 fees for
certain services provided by DTC. DTC will increase fees associated
with Custody and Asset Servicing, Deposits, Underwriting and Dividend,
Book-Entry Delivery, and MMI services in order to realign fees with
costs incurred in providing these services and to scale the fees to
reflect processing complexity, with the objective of fee simplification
and transparency.
DTC will also introduce fees for new capabilities in Asset
Services, including a fee to recover costs associated with excluding
Treasury Shares of a company from dividend processing.
In addition, DTC will implement or increase certain disincentive
fees to discourage behavior that keeps the industry from achieving peak
efficiency, including fee increases in Asset Services reject and
exception processing relating to Underwriting and Withdrawal
activities.
DTC states that the proposed fee revisions are consistent with
DTC's overall pricing philosophy of aligning service fees with
underlying costs,
[[Page 2431]]
discouraging manual and exception processing, and encouraging
immobilization and dematerialization of securities. Information on
specific fee changes is included as Exhibit 5 to DTC's proposed rule
filing, which can be viewed at DTC's Web site (http://www.dtcc.com/legal/rule_filings/dtc/2010.php). The effective date for these fee
adjustments is January 3, 2011.
DTC states that this rule filing is consistent with the
requirements of Section 17A of the Act \4\ and the rules and
regulations thereunder because it clarifies and updates DTC's fee
schedule. As such, it provides for the equitable allocation of fees
among its Participants.
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\4\ 15 U.S.C. 78q-1.
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B. Self-Regulatory Organization's Statement on Burden on Competition
DTC does not believe that the proposed rule change will have any
impact or impose any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
DTC has not solicited or received written comments relating to the
proposed rule change. DTC will notify the Commission of any comments it
receives.
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) of the Act \5\ and Rule 19b-4(f)(2) \6\ because the
proposed rule change establishes or changes a due, fee, or other charge
applicable only to a member. At any time within 60 days of the filing
of the proposed rule change, the Commission summarily may temporarily
suspend 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\ Supra note 2.
\6\ Supra note 3.
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml) or
Send an e-mail to [email protected]. Please include
File No. SR-DTC-2010-17 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC, 20549-1090.
All submissions should refer to File No. SR-DTC-2010-17. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filings also will be available for
inspection and copying at DTC's principal office and on DTC's Web site
at http://www.dtcc.com/legal/rule_filings/dtc/2010.php. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions.
You should submit only information that you wish to make available
publicly. All submission should refer to File No. SR-DTC-2010-17 and
should be submitted on or before February 3, 2011.
For the Commission by the Division of Trading and Markets
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-663 Filed 1-12-11; 8:45 am]
BILLING CODE 8011-01-P