[Federal Register Volume 61, Number 130 (Friday, July 5, 1996)]
[Notices]
[Pages 35281-35282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17145]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37372; File No. 600-22]
Self-Regulatory Organizations; MBS Clearing Corporation; Notice
of Filing of Request and Order Approving Application for Extension of
Temporary Registration as a Clearing Agency
June 26, 1996.
On June 6, 1996, the MBS Clearing Corporation (``MBS'') filed with
the Securities and Exchange Commission (``Commission'') a request
pursuant to
[[Page 35282]]
Section 19(a) \1\ of the Securities Exchange Act of 1934 (``Act'') for
extension of its temporary registration as a clearing agency under
Section 17A \2\ of the Act for a period of one year.\3\ The Commission
is publishing this notice of filing of request and order to solicit
comments from interested persons and to grant MBS's request for an
extension of its temporary registration as a clearing agency through
June 30, 1997.
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\1\ 15 U.S.C. 78s(a) (1988).
\2\ 15 U.S.C. 78q-1(a) (1988).
\3\ Letter from Robert J. Woldow, Secretary and General Counsel,
MBS, to Jerry Carpenter, Assistant Director, Division of Market
Regulation, Commission (June 6, 1996).
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On February 2, 1987, the Commission granted MBS's application for
registration as a clearing agency pursuant to Sections 17A(b) and
19(a)(1) of the Act \4\ and Rule 17Ab2-1(c) \5\ thereunder on a
temporary basis for a period of eighteen months.\6\ Subsequently, the
Commission has issued orders that extended MBS's temporary registration
as a clearing agency. The last extension order extended MBS's temporary
registration through June 30, 1996.\7\
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\4\ 15 U.S.C. 78q-1(b) and 78s(a)(1) (1988).
\5\ 17 CFR 240.17Ab2-1(c) (1994).
\6\ Securities Exchange Act Release No. 24046 (February 2,
1987), 52 FR 4218.
\7\ Securities Exchange Act Release Nos. 25957 (August 2, 1988),
53 FR 29537; 27079 (July 31, 1989), 54 FR 32412; 28492 (September
28, 1990), 55 FR 41148; 29571 (September 27, 1991), 56 FR 50602;
31750 (January 21, 1993), 58 FR 6424; 33348 (December 15, 1993), 58
FR 68183; and 35132 (December 21, 1994), 59 FR 67743.
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As discussed in detail in the original order granting MBS's
registration, one of the primary reasons for MBS's registration was to
enable it to provide for the safe and efficient clearance and
settlement of transactions in mortgage-backed securities. Since the
original temporary registration order, MBS has implemented several
improvements to its operating and financial standards and continues to
work towards enhancing the safety and efficiency of its operations. For
example, over he past year the Commission granted permanent approval of
MBS's Electronic Pool Notification (``EPN'') service, an electronic,
post-trade communication system for mortgage-backed securities.\8\ In
addition, MBS modified its procedures relating to settlement balance
order (``SBO'') settlement to help prevent participants from
influencing the amount of their cash adjustments through submissions of
internal trades.\9\
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\8\ Securities Exchange Act Release No. 36540 (November 30,
1995) 60 FR 63089 [File No. MBS-95-09] (order granting accelerated
approval of proposed rule change).
\9\ Securities Exchange Act Release No. 37205 (May 13, 1996),
989 61 FR 24898 [File No. MBS-95-08] (order approving proposed rule
change).
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MBS has functioned effectively as a registered clearing agency for
over nine years. Accordingly, in light of MBS's past performance and
the need for MBS to provide continuity of service to its participants,
the Commission believes that, pursuant to Section 17A(b)(2) of the Act,
it is necessary and appropriate in the public interest and for the
prompt and accurate clearance and settlement of securities transactions
to approve MBS's request to extend its temporary registration through
June 30, 1997. During this temporary registration period, the
Commission expects MBS to file a request for permanent registration as
a clearing agency. Any comments received during MBS's temporary
registration will be considered in conjunction with the Commission's
consideration of whether to grant MBS permanent registration as a
clearing agency under Section 17A(b) of the Act.\10\
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\10\ 15 U.S.C. 78q-1(b) (1988).
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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, N.W., Washington, D.C. 20549.
Copies of the submission, all subsequent amendments, all written
statements with respect to the request for extension of temporary
registration as a clearing agency that are filed with the Commission,
and all written communications relating to the requested extension
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.
Sec. 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 also will be available
for inspection and copying at the principal office of MBS. All
submissions should refer to File No. 600-22.
Conclusion
On the basis of the foregoing, the Commission finds that MBS's
request for extension of temporary registration as a clearing agency is
consistent with the Act and in particular with Section 17A of the Act.
It is therefore ordered, that MBS's temporary registration as a
clearing agency (File No. 600-22) be, and hereby is, extended through
June 30, 1997.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(50)(i) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-17145 Filed 7-3-96; 8:45 am]
BILLING CODE 8010-01-M