[Federal Register Volume 64, Number 131 (Friday, July 9, 1999)]
[Notices]
[Pages 37183-37184]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17417]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41592; File No. SR-MBSCC-99-03]
Self-Regulatory Organizations; MBS Clearing Corporation; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to the ElIgibility of Applicants
July 1, 1999.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on April 19, 1999, 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 adds Addendum B to MBSCC's rules regarding
the eligibility of applicants.
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 is 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
Article III, Rule 1, Section 1 of MBSCC's rules sets forth the
categories of applicants that are eligible to become participants of
MBSCC. The specific categories of entities that may become participants
include mortgage bankers, broker-dealers registered with the
Commission, commercial banks, thrift institutions, insurance companies,
clearing agencies registered with the Commission, and investment
companies registered with the Commission. The rule also contains a
provision for ``firms in such other categories as the [MBSCC] from time
to time may determine.''
The addendum clarifies the provision of MBSCC's eligibility rule
regarding ``firms in such other categories as the [MBSCC] from time to
time may determine.'' The categories of firms that are participants
pursuant to this provision currently include government sponsored
enterprises, international organizations, and private investment
companies. The addendum also states that pension funds have expressed
an interest in becoming participants of MBSCC and in the future may
constitute an additional category within this provision. The addendum
specifically provides that these firms are subject to MBSCC's rules and
procedures, including standards for qualifications to the same extent
as other firms.
MBSCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \3\ and the rules and
regulations thereunder because it constitutes an interpretation of an
existing rule regarding the admission of participants.
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\3\ 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 relating to the proposed rule change 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)(i) of the Act \4\ and pursuant to Rule 19b-4(e)(1) \5\
promulgated thereunder because the proposal constitutes a stated
policy, practice, or interpretation with respect to the
[[Page 37184]]
meaning, administration, or enforcement of an existing MBSCC rule. At
any time within sixty days of the filing of such 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 purposes of the Act.
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\4\ 15 U.S.C. 78s(b)(3)(A)(i).
\5\ 17 CFR 240.19b-4(e)(1).
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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 20549-0609.
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-99-03 and should be
submitted by July 30, 1999.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-17417 Filed 7-8-99; 8:45 am]
BILLING CODE 8010-01-M
