[Federal Register Volume 63, Number 36 (Tuesday, February 24, 1998)]
[Notices]
[Pages 9274-9275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4571]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39673; File No. SR-MBSCC-98-01]
Self-Regulatory Organizations; MBS Clearing Corporation; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Modifying
MBS Clearing Corporation's Schedule of Charges for the Dealer Account
Group
February 17, 1998.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on January 26, 1998, the
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. The Commission is publishing this notice to solicit
comments from interested persons on the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change modifies MBSCC's schedule of charges for
the dealer account group.
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.\2\
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\2\ The Commission has modified the text of the summaries
prepared by MBSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The proposed rule change modifies MBSCC's schedule of charges for
the dealer account group.\3\ Specifically, the proposed rule change
reduces trade processing fees for settlement balance order (``SBO'')
destined trades, trade-for-trade transactions, and option trades to
more accurately reflect the costs incurred by MBSCC to provide trade
processing services to dealers.
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\3\ MBSCC has separate fee schedules for brokers and dealers.
The dealer account group is the fee schedule for dealers' accounts.
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MBSCC charges dealers for trade creates \4\ relating to SBO
destined trades a monthly fee for each million of par value. The fee
currently charged is $2.45 [par value between $1 million and $2,500
million], $2.25 [par value between $2,501 and $5,000 million], $2.10
[par value between $5,001 and $7,500 million], $1.95 [par value between
$7,501 and $10,000 million], $1.75 [par value between $10,001 and
$12,500 million], and $1.60 [par value of $12,501 million and over].
These fees are reduced to $2.00, $1.85, $1.75, $1.60, $1.45, and $1.30
respectively.
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\4\ A trade create is a type of transaction used to identify the
submission and/or subsequent processing of trades as opposed to
cancels or notifications of settlement.
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The current fee charged to dealers for trade creates relating to
trade-for-trade transactions is $5.00 per side. The current fee charged
to dealers for trade creates for option trades is $4.00 per side. The
new reduced fee charged to dealers for trade creates relating to both
trade-for-trade transactions and option trades is $2.50 per side.
MBSCC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act \5\ and the rules and
regulations thereunder because it provides for the equitable allocation
of dues, fees, and other charges among MBSCC's participants.
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\5\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition
MBSCC does not believe that the proposed rule change will impact 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
No written comments have been solicited or received. MBSCC will
notify the Commission of any written comments received by MBSCC.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) \6\ of the Act and pursuant to Rule 19b-4(e)(2) \7\
promulgated thereunder in that the proposed rule change establishes or
changes a due, fee, or other charge imposed by the self-regulatory
organization. At any time within sixty days of the filing of such
[[Page 9275]]
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 purpose of the Act.
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(e)(2).
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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, N.W., Washington, D.C. 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 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, N.W.,
Washington, D.C. 20549. Copies of such filing also will be available
for inspection and copying at the principal office of MBSCC. All
submissions should refer to File No. SR-MBSCC-98-01 and should be
submitted by March 17, 1998.
For the Commission by the Division of Market Regulation, pursuant
to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-4571 Filed 2-22-98; 8:45 am]
BILLING CODE 8010-01-M
