[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