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Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Establishing Fees for the DALI Service

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Start Preamble December 6, 2000.

Pursuant to section 19(b)(1) [1] of the Securities Exchange Act of 1934 (“Act”), notice is hereby given that on December 5, 2000, 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 by DTC. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The proposed rule change will establish fees for DTC's DALI service.[2]

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

It 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.[3]

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 the following fees for DTC's DALI service:


Initial Registration Fee—$2,500

Annual Membership Fee—$2,500 (browser only) or $10,000 (File Transfer Protocol and browser)

Transaction Fee—$0.33 per billable message

DTC believes that the proposed rule change is consistent with the requirements of section 17A of the Act [4] and the rules thereunder because it will promote the prompt and accurate clearance and settlement of securities transactions by equitably allocating fees among users of the DALI service.

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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received from Members, Participants or Others

No comments from DTC's participants concerning the proposed rule change were solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action

The propose rule change has become effective pursuant to section 19(b)(3)(A)(ii) of the Act [5] and Rule 19b-4(f)(2) [6] thereunder because the proposed rule change establishes a fee. At any time within sixty days of the filing of such 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.

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. Persons making written submissions should file six copies thereof with the Secretary. Securities and Exchange Commission, 450 Fifth Street, NW., Start Printed Page 77947Washington, 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 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room, 450th Fifth Street, NW., Washington, DC. Copies of such filing also will be available for inspection and copying at DTC's principal office. All submissions should refer to File No SR-DTC-00-20 and should be submitted by January 3, 2001.

Start Signature

For the Commission, by the Division of Market Regulation, pursuant to delegated authority.[7]

Margaret H. McFarland,

Deputy Secretary.

End Signature End Preamble


2.  DALI is a tax service that will be available on or about January 1, 2001, for the transmission of information used in calculating and reporting U.S. withholding tax on payments made to non-U.S. persons. For further explanation of the DALI service, refer to Securities Exchange Act Release No. 43640 (Nov. 29, 2000).

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3.  The Commission has modified the text of the summaries prepared by DTC.

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5.  15 U.S.C. 78s(b)(3)(A)(ii).

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7.  CFR 200.30-3(a)(12).

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[FR Doc. 00-31717 Filed 12-12-00; 8:45 am]