[Federal Register Volume 64, Number 189 (Thursday, September 30, 1999)]
[Notices]
[Pages 52816-52817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25384]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41910; File No. SR-MBSCC-99-07]
Self-Regulatory Organizations; MBS Clearing Corporation; Notice
of Filing and Order Granting Accelerated Approval of a Proposed Rule
Change Modifying Rules Regarding Year 2000
September 23, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on September 20, 1999, MBS
Clearing Corporation (``MBSCC'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which items have been prepared primarily by
MBSCC. The Commission is publishing this notice and order to solicit
comments from interested persons and to grant accelerated approval of
the proposal.
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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
Under the proposed rule change, MBSCC will not activate any new or
additional clearing participant accounts or electronic pool
notification (``EPN'') participant accounts (other than updating EPN
subaccount information) or provide any new or additional services to
clearing participants or EPN participants and will freeze all
nonemergency code releases after November 30, 1999, through January 26,
2000, which is the completion date of the first settlement cycle in the
Year 2000, or such later date as MBSCC reasonably determines.
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 provides that MBSCC will not activate any
new or additional clearing participant accounts or EPN participant
accounts (other than updating EPN subaccount information) or provide
any new or additional services to clearing participants or EPN
participants and will freeze all nonemergency code release after
November 30, 1999, through January 26, 2000, which is the completion
date of the first settlement cycle in the Year 2000, or such later date
as MBSCC reasonably determines.\3\
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\3\ The proposed rule change modified Addendum A of MBSCC's
rules regarding mandatory Year 2000 testing. See Securities Exchange
Act Release No. 40889 (January 6, 1999), 64 FR 2691.
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MBSCC believes that continuing to activate new or additional
participant accounts (other than updating EPN subaccount information)
or to provide new or additional services to participants or to
implement nonemergency code release after November 30, 1999, could
potentially be disruptive to the rest of its Year 2000 efforts.
Accordingly, MBSCC believes that the proposed rule change will
facilitate a smooth Year 2000 transition.
MBSCC believes that the proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder. In
particular, the proposed rule change is consistent with Section
17A(b)(3)(F) and the Act \4\ which requires that the rules of a
clearing agency be designed to promote the prompt and accurate
clearance and settlement of securities transactions and, in general, to
protect investors and the public interest.
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\4\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
MBSCC does not believe that the proposed rule change will have an
impact on or impose a burden on competition.
(C) Self-Regulatory Organization's Statement on Comment 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
Section 17A(b)(3)(F) of the Act \5\ requires that the rules of a
clearing agency be designed to promote the prompt and accurate
clearance and settlement of securities transactions. The Commission
finds that the proposed rule change is consistent with this obligation
because the proposed modifications to MBSCC's Year 2000 rules will
permit MBSCC sufficient time before year end to complete its Year 2000
preparations. As a result, MBSCC should be able to continue to provide
prompt and accurate clearance and settlement of securities transactions
before, on, and after Year 2000 without interruption.
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\5\ 15 U.S.C. 78q-1(b)(3)(F).
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MBSCC requested that the Commission find good cause for approving
the proposed rule change prior to the thirtieth day after the
publication of notice of the filing. The Commission finds good cause
for approving the proposed rule change prior to the thirtieth day after
the publication of notice of the filing because such approval will
allow MBSCC to better prepare for a smooth Year 2000 transition.
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-
0609. Copies of the submission, all subsequent
[[Page 52817]]
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 Room, 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 the File No.
SR-MBSCC-99-07 and should be submitted by October 21, 1999.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\6\ that the proposed rule change (file No. SR-MBSCC-99-07) be and
hereby is approved.
\6\ 15 U.S.C. 78s(b)(2).
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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. 99-25384 Filed 9-29-99; 8:45 am]
BILLING CODE 8010-01-M
