The Depository Trust Company (DTC) has filed a proposed rule change with the Securities and Exchange Commission (SEC) to introduce new fees for its Money Market Instrument Program (MMI Program). This change aims to amend the DTC Fee Schedule to add new charges for adjustments in MMI processing that require manual intervention due to errors or late reconciliation by participants. The goal is to motivate participants to input accurate data and make timely adjustments to avoid additional settlement and operational risks. The proposed fees are tiered based on the type and risk level of the required adjustment, ranging from $2,000 to $10,000 per CUSIP.
Simple Explanation
The Depository Trust Company (DTC) wants to start charging banks more money if they make mistakes with their money market instruments to encourage them to be more careful, but it's not clear why the fees are set at certain amounts or how exactly they will help make things safer.