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Self-Regulatory Organizations; the Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Revisions to the Fee Schedule

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Start Preamble January 20, 2004.

Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),[1] notice is hereby given that on December 29, 2003, 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.

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

The proposed rule change consists of revisions to DTC's fee schedule for services.[2]

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.[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 adjust the fees DTC charges for various services so that the fees are aligned with DTC's estimated service costs for 2004, effective with respect to services provided on and after January 1, 2004.

DTC believes that the proposed rule change is consistent with the requirements of section 17A of the Act and the rules and regulations Start Printed Page 3960thereunder applicable to DTC because fees will be more equitably allocated among users of DTC services.

(B) Self-Regulatory Organization's Statement on Burden on Competition

DTC perceives no impact on competition by reason of the proposed rule change.

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

Written comments from DTC participants or others have not been solicited or received 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 fees to be imposed by DTC, it has become effective pursuant to section 19(b)(3)(A)(ii) of the Act [4] and Rule 19b-4(f)(2).[5] At any time within 60 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.

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., Washington, DC 20549-0609. Comments may also be submitted electronically at the following e-mail address: All comment letters should refer to File No. SR-DTC-2003-15. 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, comments should be sent in hardcopy or by e-mail but not by both methods. 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, NW., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of DTC and DTC's Web site at​impNtc/​mor/​index.html. All submissions should refer to File No. SR-DTC-2003-15 and should be submitted by February 17, 2004.

Start Signature

For the Commission by the Division of Market Regulation, pursuant to delegated authority.[6]

Jill M. Peterson,

Assistant Secretary.

End Signature

Exhibit 1.—2004 DTC Service Fee Revisions

ServiceCurrent feeProposed fee
ASSET Servicing
Floating Payable Date Securities (ARPs, ARNs)$1.31$2.40
DIVANN—Annual Fee1,800.009,000.00
Reorg New Fees:
Proxy Record Date Meetings0.00(1)
Dissent Letters/Shareholder Demands0.00(2)
Reorg Modified Fees:
Full Prerefundings0.007.00
Voluntary Exchange/Tender35.00(3)
Voluntary Dividend Reinvest Program11.2914.00
Remarketing Agent Fee0.0017.50
CRS Service Election25.0035.00
Custody Fee:
COD/Pickup—Next Day
COD/Pickup— Next Day16.9130.00
Trailing Docs.3.484.50
Certificate Copies—PINS8.0015.00
Rush W/T's46.6965.00
Reorg Rejects37.9350.00
Cancel Processing12.6716.00
Account No. Change4.375.00
Non Securitized Rec.3.094.50
Coupon Clipping7.319.00
Custom/Mail Letter4.725.50
COD/Pickup—Same Day16.9130.00
Non-Transferables (Long Position) Surcharge—Greater Than 6 Years0.171.00
Start Printed Page 3961
Deposit Mail Charge1.051.50
Research of CUSIP for Name Change4.8515.00
WT DMD5.409.50
WT Delivery to the Participant7.909.50
WT DMD Mail Cost2.503.00
WT Hold and Bust Feature0.601.00
Rush WT Transfer49.6965.00
WT Mail Issue Surcharge for TA Outside of NYC1.051.50
WT DMA (Cert or DRS)4.605.00
Critical COD (Cede and Co.)46.6975.00
DRS Certificate Surcharge (Cert. Disincentive)1.005.00
DRS LPA Account Charge per Month225.00275.00
DRS LPA Application Fee0.00250.00
Securities Processing Research Fee0.0055.00
MMI Transactions0.560.70
Day (Zone B) Receiving0.260.27
Day (Zone B) Deliveries0.440.45
Payment Orders0.100.11
Memo Segregation0.100.09
Institutional Deliveries0.170.16
CNS Deliveries0.170.16
New Issues:
Basic BEO Eligibility250.00275.00
CD BEO Eligibility90.00125.00
Non-Receipt of Final Offering Docs0.00300.00
Multi Certificated675.001,000.00
MMI Swings0.00250.00
Single Certificated585.00750.00
WUN Incentive Rebate(4)
Foreign Tax Service (EDS)27.00(5)
DTax—PTS Inquiries5.0015.00
DTax—CCF File1,500.007,500.00
U.S. Tax Withholding—Minimum Annual FeeN/A5,000.00
U.S. Tax Withholding—Tax Adjustments1.501.80
E-Learning Courses (Per Course)0.0075.00
Instructor Led Course (Customer Site)(6)(7)
Instructor Led Course (Internet)0.00(8)
E-Learning Certification Exam0.00400.00
1 $0.50 per participant record date position.
2 $400 per dissent letter/shareholder demand processed.
3 $35 per Letter of Transmittal, $20 offer service fee per position holder, and a voluntary offering instruction fee of $20 for the first 50 instructions, and $0.70 for each instruction over 50.
4 A rebate of $52 for single CUSIP issues, and $107 for multi-CUSIP issues, will be applied if the issue is submitted via WUM.
5 One half of one percent (.5%) of the tax relief secured by the participant. A minimum fee of $30 and a maximum fee of $500 per transaction will apply.
6 Current fee is $1000 per day per customer visit.
7 $750 per student with a two student minimum.
8 $250 per student with a two student minimum.
Start Printed Page 3962 End Preamble


2.  A copy of DTC's 2004 service fee revisions is attached as Exhibit 1.

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3.  The Commission has modified parts of these statements.

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4.  15 U.S.C. 78s(b)(3)(A)(ii).

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[FR Doc. 04-1604 Filed 1-26-04; 8:45 am]