[Federal Register Volume 63, Number 58 (Thursday, March 26, 1998)]
[Notices]
[Pages 14740-14741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7919]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39776; File No. 600-22]
Self-Regulatory Organizations; MBS Clearing Corporation; Notice
of Filing and Order Granting Approval of Extension of Temporary
Registration as a Clearing Agency
March 20, 1998
On February 28, 1997, the MBS Clearing Corporation (``MBSCC'')
filed \1\ with the Securities and Exchange Commission (``Commission'')
an application pursuant to Section 19(a) of the Securities Exchange Act
of 1934 (``Act'') \2\ requesting that the Commission grant MBSCC
permanent registration as a clearing agency under Section 17A of the
Act.\3\ Because MBSCC's current temporary registration expires on March
31, 1998, the Commission is extending MBSCC's temporary registration as
a clearing agency through March 31, 1999, while it completes its review
of MBSCC's application for permanent registration. The Commission is
publishing this notice and order to solicit comments from interested
persons and to extend MBSCC's temporary registration as a clearing
agency through March 31, 1999.
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\1\ Letter from Julie Beyers, MBSCC, February 27, 1997.
\2\ 15 U.S.C. 78s(a).
\3\ 15 U.S.C. 78q-1.
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On February 2, 1987, the Commission granted MBSCC's application for
registration as a clearing agency pursuant to Sections 17A(b) \4\ and
19(a)(1) \5\ of the Act and Rule 17Ab2-1(c) \6\ thereunder for a period
of eighteen months. \7\ Subsequently, the Commission has issued orders
that extended MBSCC's temporary registration as a clearing agency. The
last extension order extends MBSCC's temporary registration through
March 31, 1998.\8\
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\4\ 15 U.S.C. 78q-1(b).
\5\ 15 U.S.C. 78s(a)(1).
\6\ 17 CFR 240.17Ab2-1(c).
\7\ Securities Exchange Act Release No. 24046 (February 2,
1987), 52 FR 4218.
\8\ Securities Exchange Act Release Nos. 25957 (August 2, 1988),
53 FR 29537; 27079 (July 31, 1989), 54 FR 32412; 28492 (September
28, 1990), 55 FR 41148; 29751 (September 27, 1991), 56 FR 50602;
31750 (January 21, 1993), 58 FR 6424; 33348 (December 15, 1993), 58
FR 68183; 35132 (December 21, 1994), 59 FR 67743; 37372 (June 26,
1996), 61 FR 35281; and 38784 (June 27, 1997) 62 FR 36587.
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As discussed in detail in the original order granting MBSCC's
registration, one of the primary reasons for MBSCC's registration was
to enable it to provide for the safe and efficient clearance and
settlement of transactions in mortgage-backed securities. Since the
original temporary registration order, MBSCC has implemented several
improvements to its operating and financial standards and continues to
work towards enhancing the safety and efficiency of its operations. For
example during the past year MBSCC appraised the value given to
securities deposited as collateral for participants funds
obligations.\9\ In addition, MBSCC modified its rules to explicitly
state that MBSCC's participants are liable as principal for any
contracts or other transactions they submit to MBSCC on behalf of
entities that are not participants.\10\
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\9\ Securities Exchange Act Release No. 38769 (June 24, 1997),
62 FR 34859 [File No. MBS-97-02].
\10\ Securities Exchange Act Release No. 39405 (December 5,
1997), 62 FR 65466 [File No. MBS-97-05].
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MBSCC has functioned effectively as a registered clearing agency
for over ten years. Accordingly, in light of MBSCC's past performance
and the need for continuity of the services MBSCC provides to its
participants, the Commission believes that it is necessary and
appropriate in the public interest and for the prompt and accurate
clearance and settlement of securities transactions to extend MBSCC's
temporary registration through March 31, 1999. During this temporary
registration period, the Commission will continue its review of MBSCC's
application for permanent registration. Any comments received during
MBSCC's temporary registration will be considered in conjunction with
the Commission's review of MBSCC's request for permenant registration
as a clearing agency under Section 17A of the Act.\11\
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\11\ 15 U.S.C. 78q-1.
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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 request for permanent registration as a
clearing agency that are filed with the Commission, and all written
communications relating to the extension 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
[[Page 14741]]
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. 600-22.
Conclusion
On the basis of the foregoing, the Commission finds that extending
MBSCC's temporary registration as a clearing agency is consistent with
the Act and in particular with Section 17A of the Act.\12\
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\12\ 15 U.S.C. 78q-1.
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It is therefore ordered, pursuant to Section 19(a) of the Act, that
MBSCC's temporary registration as a clearing agency (File No. 600-22)
be, and hereby is, extended through March 31, 1999.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(50)(i).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-7919 Filed 3-25-98; 8:45 am]
BILLING CODE 8010-01-M
