[Federal Register Volume 59, Number 55 (Tuesday, March 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6659]


[[Page Unknown]]

[Federal Register: March 22, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33767; File No. SR-MBS-94-01]

 

Self-Regulatory Organizations; MBS Clearing Corporation; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to a Rebate to Certain Participants and Former Participants

March 16, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\ notice is hereby given that on March 4, 1994, the MBS 
Clearing Corporation (``MBS'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change (File No. SR-MBS-
94-01) as described in Items I, II, and III below, which Items have 
been prepared primarily by the self-regulatory organization. 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. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change establishes a rebate in the amount of $1.3 
million to most MBS participants and certain former MBS participants. 
These participants and former participants each will receive a pro-rata 
share of the above amount based on their prorata contribution to MBS's 
revenues from January 1985 through March 1989.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
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. The self-regulatory organization 
has prepared summaries, set forth in sections (A), (B), and (C) below, 
of the most significant aspects of such statements.

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to rebate $1.3 million 
to most MBS participants and certain former MBS participants who will 
each receive a pro-rata share of the above amount based on their 
contribution to the revenue of MBS from January 1985 through March 
1989.
    The rebate corresponds to a final royalty payment that MBS recently 
received from the Participants Trust Company (``PTC'') resulting from 
the sale of MBS's depository division to PTC in March 1989. The rebate 
is being given to most participants and certain former participants who 
in part funded the development of the depository division prior to the 
sale through increased fees charged by MBS at the time.
    MBS believes that the proposed rule change is consistent with 
Section 17A(b)(3)(D) of the Act,\2\ and the rules and regulations 
thereunder, in that it provides for the equitable allocation of 
reasonable dues, fees, and other charges among its participants.
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    \2\15 U.S.C. 78q-1(b)(3)(D) (1988).
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(B) Self-Regulatory Organization's Statements on Burden on Competition

    MBS does not believe that the proposed rule change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants, or Others

    MBS has not solicited comments with respect to the proposed rule 
change, and none have been received.

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) of the Act and subparagraph (e) of Rule 19b-4 thereunder, 
because the proposed rule change establishes a due, fee, or other 
charge imposed by the self-regulatory organization and constitutes a 
stated policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule. At any time within 
60 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.

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, 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. Sec. 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 will also be available for 
inspection and copying at the principal office of MBS. All submissions 
should refer to File No. SR-MBS-94-01 and should be submitted by April 
12, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\3\
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    \3\17 C.F.R. Sec. 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-6659 Filed 3-21-94; 8:45 am]
BILLING CODE 8010-01-M