[Federal Register Volume 60, Number 239 (Wednesday, December 13, 1995)]
[Notices]
[Pages 64083-64084]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30300]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36557; File No. SR-MBSCC-95-8]
Self-Regulatory Organizations; MBS Clearing Corporation; Notice
of Filing Relating to Eligibility Changes for Settlement Balance Order
Settlement
December 6, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 17, 1995, MBS
Clearing Corporation (``MBSCC'') 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
MBSCC. On November 1, 1995, MBSCC filed an amendment to its proposed
rule change.\2\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
\1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
\2\ Letter from Anthony H. Davidson, MBSCC, to Michele J.
Bianco, Division of Market Regulation, Commission (November 1,
1995).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change consists of modifications to MBSCC's
Procedures relating to eligibility for Settlement Balance Order (SBO)
settlement.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, MBSCC 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. MBSCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such
statements.\3\
\3\ The Commission has modified parts of these statements.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The proposed rule change will modify MBSCC's Procedures relating to
eligibility for SBO settlement. Specifically, the purpose of the
proposed rule change is to enable MBSCC to reject trades destined for
SBO settlement between multiple accounts of a participant as well as
between a participant's account and an account of
[[Page 64084]]
a related participant.\4\ The SBO settlement netting process was not
intended for trades between multiple accounts of a participant or
between a participant's account and an account of a related
participant. The inclusion of these types of trades was not
contemplated when the MBSCC cash adjustment procedures were developed,
and the inclusion could cause a perception that participants might
receive greater or lesser amounts than originally intended depending
upon the amount of internal trades submitted. Participants may record
such trades on a trade-for-trade basis.
\4\ The term ``related participant'' means any affiliate (as
defined in Rule 12b-2 of the Act) or entity that is used or intended
to be used in whole or in part to contravene the purposes of the
proposed rule change. Letter from Anthony H. Davidson, MBSCC, to
Michele J. Bianco, Division of Market Regulation, Commission
(November 1, 1995).
---------------------------------------------------------------------------
The proposed rule change is consistent with the requirements of
Section 17A of the Act and the rules and regulations thereunder because
it will facilitate the prompt and accurate clearance and settlement of
securities transactions.\5\
\5\ 15 U.S.C. Sec. 78q-1 (1988).
---------------------------------------------------------------------------
(B) Self-Regulatory Organization's Statement on Burden on Competition
MBSCC does not believe that the proposed rule change will have an
impact on or impose a burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received from Members, Participants, or Others
MBSCC advised participants by an administrative bulletin dated
October 6, 1995, that it would file the proposed rule change with the
Commission. No written comments relating to the proposed rule change
have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) as the
Commission may designate up to ninety days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which the self-regulatory organization consents,
the Commission will:
(A) By order approve such proposed rule change or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street NW., Washington, DC 20549. 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 provisions of 5
U.S.C. 552, will be available for inspection and copying in the
Commission's Public Reference Room in Washington, DC. Copies of such
filing will also be available for inspection and copying at the
principal office of the above-mentioned self-regulatory organization.
All submissions should refer to the file number SR-MBSCC-95-08 and
should be submitted by January 3, 1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-30300 Filed 12-12-95; 8:45 am]
BILLING CODE 8010-01-M
