[Federal Register Volume 60, Number 239 (Wednesday, December 13, 1995)]
[Notices]
[Pages 64083-64084]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30300]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36557; File No. SR-MBSCC-95-8]


Self-Regulatory Organizations; MBS Clearing Corporation; Notice 
of Filing Relating to Eligibility Changes for Settlement Balance Order 
Settlement

December 6, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on October 17, 1995, MBS 
Clearing Corporation (``MBSCC'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I, II, and III below, which items have been prepared primarily by 
MBSCC. On November 1, 1995, MBSCC filed an amendment to its proposed 
rule change.\2\ The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.

    \1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
    \2\ Letter from Anthony H. Davidson, MBSCC, to Michele J. 
Bianco, Division of Market Regulation, Commission (November 1, 
1995).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change consists of modifications to MBSCC's 
Procedures relating to eligibility for Settlement Balance Order (SBO) 
settlement.

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.\3\

    \3\ The Commission has modified parts of these statements.
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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 will modify MBSCC's Procedures relating to 
eligibility for SBO settlement. Specifically, the purpose of the 
proposed rule change is to enable MBSCC to reject trades destined for 
SBO settlement between multiple accounts of a participant as well as 
between a participant's account and an account of 

[[Page 64084]]
a related participant.\4\ The SBO settlement netting process was not 
intended for trades between multiple accounts of a participant or 
between a participant's account and an account of a related 
participant. The inclusion of these types of trades was not 
contemplated when the MBSCC cash adjustment procedures were developed, 
and the inclusion could cause a perception that participants might 
receive greater or lesser amounts than originally intended depending 
upon the amount of internal trades submitted. Participants may record 
such trades on a trade-for-trade basis.

    \4\ The term ``related participant'' means any affiliate (as 
defined in Rule 12b-2 of the Act) or entity that is used or intended 
to be used in whole or in part to contravene the purposes of the 
proposed rule change. Letter from Anthony H. Davidson, MBSCC, to 
Michele J. Bianco, Division of Market Regulation, Commission 
(November 1, 1995).
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    The proposed rule change is consistent with the requirements of 
Section 17A of the Act and the rules and regulations thereunder because 
it will facilitate the prompt and accurate clearance and settlement of 
securities transactions.\5\

    \5\ 15 U.S.C. Sec. 78q-1 (1988).
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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 Comments on the 
Proposed Rule Change Received from Members, Participants, or Others

    MBSCC advised participants by an administrative bulletin dated 
October 6, 1995, that it would file the proposed rule change with the 
Commission. No written comments relating to the proposed rule change 
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 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 provisions of 5 
U.S.C. 552, will be available for inspection and copying in the 
Commission's Public Reference Room in Washington, DC. Copies of such 
filing will also be available for inspection and copying at the 
principal office of the above-mentioned self-regulatory organization.
    All submissions should refer to the file number SR-MBSCC-95-08 and 
should be submitted by January 3, 1996.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-30300 Filed 12-12-95; 8:45 am]
BILLING CODE 8010-01-M