[Federal Register Volume 63, Number 90 (Monday, May 11, 1998)]
[Notices]
[Page 25891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12349]
[[Page 25891]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39954; File No. SR-MBSCC-98-2]
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
May 4, 1998.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on April 10, 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.\2\
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\2\ MBSCC has separate fee schedules for brokers and dealers.
The dealer account group is the fee schedule for dealers' accounts.
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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\
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\3\ 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. Specifically, the proposed rule change
reduces account maintenance fees, currently at $350 per month for each
account, for participants that use a common investment manager to
process trades with MBSCC.
The new account maintenance fee for a participant that uses a
common investment manager to process trades with MBSCC is based on the
total number of accounts a participant maintains with an investment
manager. The new monthly account maintenance fees are $350 for one
account, $185 per account for two or three accounts, $150 per account
for four to seven accounts, $130 per account for eight to ten accounts,
and $120 per month for more than ten accounts.
The reduced account maintenance fees reflect efficiencies obtained
by using a common investment manager to process trades with MBSCC such
as reduced communications costs, systems overhead, and support services
that result in savings to MBSCC. MBSCC will implement these changes
commencing with its May 1998 billing cycle.
MBSCC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act \4\ 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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\4\ 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) \5\ of the Act and pursuant to Rule 19b-4(e)(2) \6\
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 rule
change, the Commission may summarily abrogate such proposed 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 purposes of the Act.
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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 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, 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 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, NW.,
Washington, DC 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-98-02 and should be
submitted by June 1, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-12349 Filed 5-8-98; 8:45 am]
BILLING CODE 8010-01-M
