[Federal Register Volume 61, Number 138 (Wednesday, July 17, 1996)]
[Notices]
[Pages 37307-37308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18082]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 37420; File No. SR-MBSCC-96-03]
Self-Regulatory Organizations; MBS Clearing Corporation; Notice
of Proposed Rule Change Relating to Eliminating the Monthly Audit
Package Requirements
July 11, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 18, 1996, 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 on
the proposed rule change from interested persons.
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\1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
MBSCC proposes to modify its rules and procedures to eliminate the
requirement that it provide a monthly audit package to each participant
and the requirement that such participant review and respond to the
package.
[[Page 37308]]
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 the
Statutory Basis for, the Proposed Rule Change
MBSCC proposes to modify its rules and procedures to eliminate the
requirement that it provide a monthly audit package to each participant
and the requirement that such participant review and respond to the
package. MBSCC currently provides each participant with the
participant's Open Commitment Report on a daily basis pursuant to its
rules. Participants have a duty under the rules to review each report
for errors and discrepancies and to report any error or discrepancy to
MBSCC. MBSCC's rules and source book also require MBSCC to send each
participant a monthly audit package which consists of a copy of the
participant's Open Commitment Report dated the last business day of the
previous month and an Audit Exception Reporting Form which must be
completed by each participant and returned to MBSCC whether or not any
exceptions are found.
Participants are obligated to review daily Open Commitment Reports
and will continue to be so required. By eliminating the monthly audit
package and the participants' requirement to review it, the
administrative and economic burdens on participants' resources due to
the duplicative nature of the requirements will be eliminated without
any substantive effect.
In connection with this proposed rule change, MBSCC will eliminate
the late audit confirmation penalties from its schedule of penalty
fees.
MBSCC believes the proposed rule change is consistent with its
obligations under Section 17A of the Act because by eliminating the
monthly audit package and the participants' requirement to review it,
MBSCC will facilitate the prompt and accurate clearance and settlement
of securities transactions.
B. Self-Regulatory Organization's Statement on Burden on Competition
MBSCC does not believe that the proposed rule change will have an
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
Comments on the proposed rule change have not yet been solicited or
received. Members will be notified of the rule filing, and comments
will be solicited by an important notice. 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
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 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. Sec. 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 will also be available
for inspection and copying at the principal office of MBSCC. All
submissions should refer to File No. SR-MBSCC-96-03 and should be
submitted by August 7, 1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\3\
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\3\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-18082 Filed 7-16-96; 8:45 am]
BILLING CODE 8010-01-M
