[Federal Register Volume 61, Number 195 (Monday, October 7, 1996)] [Notices] [Page 52483] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-25620] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-37752; File No. SR-MBSCC-96-04] Self-Regulatory Organizations; MBS Clearing Corporation; Order Approving a Proposed Rule Change to Establish Term Limits for the Chairman of the Board of Directors September 30, 1996. On June 24, 1996, MBS Learning Corporation; Order Approving a Proposed Rule Change to Establish Term Limits for the Chairman of the Board of Directors On June 24, 1996, MBS Clearing Corporation (``MBSCC'') filed with the Securities and Exchange Commission (``Commission'') a proposed rule change (File No. SR-MBSCC-96-06) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') to establish term limits for the chairman of MBSCC's Board of Directors.\1\ Notice of the proposal was published in the Federal Register On August 14, 1996.\2\ No comment letters were received. For the reasons discussed below, the Commission is approving the proposed rule change. --------------------------------------------------------------------------- \1\ U.S.C. Sec. 78s(b)(1) (1988). \2\ Securities Exchange Act Release No. 37541 (August 8, 1996), 61 FR 42298. --------------------------------------------------------------------------- I. Description The rule change amends Section 5.3 of MBSCC's by-laws, regarding the term of office, removal, and vacancies of officers, to limit the term of office for the Chairman of the Board to not more than four consecutive one-year terms. II. Discussion Section 17A(b)(3)(C) \3\ of the Act requires that the rules of a clearing agency be designed to assure a fair representation of its shareholders or members and participants in the selection of its directors and administration of its affairs. The Commission believes that MBSCC's rule change is consistent with MBSCC's obligations under the Act because it should create greater diversity in the individuals who will serve as MBSCC's Chairman of the Board and thereby should promote the fair representation of participants in the administration of MBSCC's affairs. --------------------------------------------------------------------------- \3\ 15 U.S.C. Sec. 78q-1(b)(3)(C) (1988). --------------------------------------------------------------------------- III. Conclusion On the basis of the foregoing, the Commission finds that the proposal is consistent with the requirements of the Act and in particular with the requirements of Section 17A of the Act and the rules and regulations thereunder. It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (File No. SR-MBSCC-96-04) be, and hereby is, approved. For the Commission by the Division of Market Regulation, pursuant to delegated authority.\4\ --------------------------------------------------------------------------- \4\ 17 CFR 200.30-3(a)(12) (1996). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 96-25620 Filed 10-4-96; 8:45 am] BILLING CODE 8010-01-M