[Federal Register Volume 60, Number 164 (Thursday, August 24, 1995)]
[Pages 44092-44093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20950]



[Release No. 34-36107; File No. SR-MBSCC-95-05]

Self-Regulatory Organizations; MBS Clearing Corporation; Notice 
of Filing of a Proposed Rule Change Seeking Authority to Release 
Clearing Data Relating to Participants

August 16, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 28, 1995, the MBS 
Clearing Corporation (``MBSCC'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change (File No. SR-
MBSCC-95-05) as described in Items I, II, and III below, which items 
have been prepared primarily by MBSCC. On July 24, 1995, MBSCC filed an 
amendment to the proposed rule change to clarify the parties to whom 
MBSCC will release clearing data.\2\ The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 

    \1\ 15 U.S.C. 78s(b)(1) (1988).
    \2\ Letter from Anthony H. Davidson, MBSCC, to Peter R. 
Geraghty, Division of Market Regulation, Commission (July 21, 1995).

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to modify Article V of 
MBSCC's Rules by adding a new Rule 14 concerning the release of 
participants' clearance and settlement data.

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 that 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 

    \3\ The Commission has modified the text of the summaries 
submitted by MBSCC.

[[Page 44093]]


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 modify Article V of 
MBSCC's Rules by adding a new Rule 14 concerning the release of data 
relating to participants' clearance and settlement activity. MBSCC 
receives transaction data and other data relating to its participants 
in the normal course of its business. The rule change sets forth 
MBSCC's obligation to preserve its participants' rights with respect to 
such data and the conditions under which MBSCC will disclose such data.
    The proposed rule will permit MBSCC to disclose such data to 
regulatory organizations, self-regulatory organizations, clearing 
organizations affiliated with or designated by contract markets trading 
specific futures products under the oversight of the Commodity Futures 
Trading Commission, and others under certain conditions. The proposed 
rule change provides that generally, the release of a participant's 
clearing data shall be conditioned upon that participant's submission 
of a written request.\4\ The proposed rule also defines ``clearing 
data'' to mean transactions and other data which is received by MBSCC 
in the clearance and/or settlement process or such reports or summaries 
which may be produced as a result of processing such data.

    \4\ As a self-regulatory organization, MBSCC currently is 
permitted without obtaining a participant's written authorization to 
cooperate and share data with other regulatory or self-regulatory 
organizations for regulatory purposes.

    The proposed rule change also will facilitate MBSCC's participation 
in the National Securities Clearing Corporation's (``NSCC'') Collateral 
Management Service (``CMS'').\5\ The proposed rule change will enable 
MBSCC to provide information regarding MBSCC's Participants Fund, 
including excess or deficit amounts, and comprehensive data on 
underlying collateral to NSCC for inclusion in the CMS. Participants of 
MBSCC that desire access to the CMS data will be required to submit a 
CMS participation application to NSCC. The execution of a CMS 
application will constitute the written request required under the 
proposed rule change to authorize MBSCC to release a participant's 
clearing data to the participant.\6\

    \5\ Generally, the CMS will provide participating participants 
and clearing agencies with access to information regarding clearing 
fund, margin, and other similar requirements and deposits. For a 
complete description of the CMS, refer to Securities Exchange Act 
Release No. 35809 (June 5, 1995), 60 FR 30912 [File No. SR-NSCC-95-
06] (notice of filing of proposed rule change).
    \6\ The CMS agreement sets forth MBSCC's and NSCC's 
authorizations to collect and provide information relating to the 
participants' clearing fund and margin requirements and the 
participants' clearing fund and margin deposits.

    MBSCC believes the proposed rule change is consistent with Section 
17A of the Act and the rules and regulations thereunder because the 
rule proposal should help to safeguard securities and funds in its 
custody or control or for which it is responsible.

(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 on any written 
comments received by MBSCC.

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 MBSCC 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 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. 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 MBSCC. All 
submissions should refer to the file number SR-MBSCC-95-05 and should 
be submitted by September 14, 1995.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\

    \7\ 17 CFR 200.30-3(a)(12) (1994).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-20950 Filed 8-23-95; 8:45 am]