| A# |
5719 |
| P&S #: |
5289 |
| DATE: |
NOVEMBER 18, 2003 |
| TO: |
PARTICIPANTS AND OTHER USERS |
| ATTENTION: |
MANAGING PARTNER/OFFICER OPERATIONS PARTNER/OFFICER, CASHIER, MANAGER DATA PROCESSING DEPARTMENT |
| FROM: |
PRODUCT MANAGEMENT |
| SUBJECT: | 2004 REVISIONS OF NSCC SERVICE FEES - REVISED |
This Notice replaces Notice A# 5717 and P&S# 5287 dated November 13, 2003.
The Board has approved fee revisions to selected NSCC product lines. The NSCC fee adjustments are expected to reduce trade recording fees by $11.5 million over the next year and are part of our continuing effort to move all product lines towards full cost recovery.
In conjunction with the implementation of the NSCC fee changes, DTC fee changes will also be implemented that are expected to increase participant fees by $9.1 million (see DTC Important Notice B#5460R). Overall, the DTC and NSCC fee revisions are anticipated to result in a net participant fee decrease of $2.4 million in 2004.
In 2004, NSCC will introduce new services. The fees for these new services can be found in the attached NSCC fee schedule.
The proposed fee revisions are consistent with NSCC’s overall pricing philosophy to align service fees with underlying cost, discourage manual and exception processing, and encourage immobilization and dematerialization of securities.
The NSCC fee revisions can be found in the attached 2004 NSCC Service Fee Revisions document, and an appropriate rule filing will be made with the Securities and Exchange Commission. If you have any questions regarding the 2004 fee revisions, or the impact on your 2004 bills, please contact your Relationship Manager.
All fees are scheduled to become effective January 2, 2004.
John Abel
Director
Product Marketing and Development