[Federal Register Volume 59, Number 146 (Monday, August 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18574]


[[Page Unknown]]

[Federal Register: August 1, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34438; International Series Release No. 692; File No. 
SR-MBS-94-04]

 

Self-Regulatory Organizations; MBS Clearing Corporation; Notice 
of Filing of Proposed Rule Change Relating to Special Provisions 
Applicable to Foreign Participants

July 25, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 27, 1994, the MBS 
Clearing Corporation (``MBS'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change (File No. SR-MBS-
94-04) 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 Organizations Statement of the Terms of Substance of 
the Proposed Rule Change

    The proposed rule change will add Article III, Rule 1, Section 13 
to MBS's rules which will set forth special provisions applicable to 
foreign participants.

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 section 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

    Currently, MBS's rules are silent on the issue of admitting 
applicants from a foreign country as a participant at MBS. The purpose 
of the proposed rule change is to set forth additional requirements for 
foreign applicants in order to ensure that MBS can properly monitor 
these potential participants adequately.
    In particular, the proposed rule change will add a new Section 13 
to Article III, Rule 1 of MBS's rules. These requirements are in 
addition to all other requirements applicable to MBS participants in 
general.
    Specifically, a foreign participant will be required to: prepare 
and maintain all required financial and other reports and a general 
ledger chart of accounts and any description thereof in English and 
U.S. dollars; ensure the availability of an individual fluent in 
English and knowledgeable in securities and financial matters to assist 
representatives of MBS; maintain an agent located in the U.S. for 
service of process; satisfy the financial net worth requirements in 
MBS's rules, computed in accordance with generally accepted U.S. 
accounting principals; and maintain an office or agent located in the 
U.S. that can adequately address all purchase and sales, margin 
compliance, clearance, and cash settlement functions for the 
participant.
    MBS believes that the proposed rule change is consistent with 
Section 17A of the Act and the rules and the regulations thereunder in 
that it provides for the safeguarding of securities or funds in MBS's 
custody or control or for which it is responsible.

B. Self-Regulatory Organization's Statement on Burden on Competition

    MBS does not believe that the proposed rule change will impose any 
burden on competition that is 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

    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 submission 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. 
Copies of the submissions, 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, N.W., 
Washington, D.C. 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 Number SR-MBS-94-04 and should be 
submitted by August 22, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-18574 Filed 7-29-94; 8:45 am]
BILLING CODE 8010-01-M