[Federal Register Volume 62, Number 130 (Tuesday, July 8, 1997)]
[Notices]
[Pages 36587-36588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17671]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38784; File No. 600-22]
Self-Regulatory Organizations; MBS Clearing Corporation; Notice
of Filing and Order Granting Approval of Extension of Temporary
Registration as a Clearing Agency
June 27, 1997.
On February 28, 1997, the MBS Clearing Corporation (``MBSCC'')
filed with the Securities and Exchange Commission (``Commission'') an
application pursuant to Section 19(a) \1\ of the Securities Exchange
Act of 1934 (``Act'') requesting that the Commission grant MBSCC
permanent registration as
[[Page 36588]]
a clearing agency under Section 17A \2\ of the Act. Because MBSCC's
current temporary registration expires on June 30, 1997, the Commission
is extending MBSCC's temporary registration as a clearing agency
through March 31, 1998, while it completes its review of MBSCC's
application for permanent registration. The Commission is publishing
this notice and order to solicit comments from interested persons and
to extend MBSCC's temporary registration as a clearing agency through
March 31, 1998.
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\1\ 15 U.S.C. 78s(a).
\2\ 15 U.S.C. 78q-1.
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On February 2, 1987, the Commission granted MBSCC's application for
registration as a clearing agency pursuant to Sections 17A(b) \3\ and
19(a)(1) \4\ of the Act and Rule 17ab2-1(c) \5\ thereunder for a period
of eighteen months.\6\ Subsequently, the Commission has issued orders
that extended MBSCC's temporary registration as a clearing agency. The
last extension order extends MBSCC's temporary registration through
June 30, 1997.\7\
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\3\ 15 U.S.C. 78q-1(b).
\4\ 15 U.S.C. 78s(a)(1).
\5\ 17 CFR 240.17Ab2-1(c).
\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; 29751 (September 27, 1991), 56 FR 50602;
31750 (January 21, 1993), 58 FR 6424; 33348 (December 15, 1993), 58
FR 68183; 35132 (December 21, 1994), 59 FR 67743; and 37372 (June
26, 1996), 61 FR 35281.
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As discussed in detail in the original order granting MBSCC's
registration, one of the primary reasons for MBSCC'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, MBSCC 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 the past year MBSCC has modified its rules to explicitly
state that MBSCC has a lien on all property placed in its possession by
its participants in order to ensure that MBSCC can cover a
participant's unpaid obligations to MBSCC.\8\ In addition, MBSCC has
established the Comparison Only System (``COS'') which is a limited
system that allows principals to compare trade data.\9\
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\8\ Securities Exchange Act Release No. 38598 (May 9, 1997), 62
FR 27091 [File No. MBS-96-08].
\9\ Securities Exchange Act Release No. 38461 (April 1, 1997),
62 FR 16634 [File No. MBS-97-03].
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MBSCC has functioned effectively as a registered clearing agency
for over ten years. Accordingly, in light of MBSCC's past performance
and the need for continuity of the services MBSCC provides to its
participants, the Commission believes that it is necessary and
appropriate in the public interest and for the prompt and accurate
clearance and settlement of securities transactions to extend MBSCC's
temporary registration through March 31, 1998. During this temporary
registration period, the Commission will continue its review of MBSCC's
application for permanent registration. Any comments received during
MBSCC's temporary registration will be considered in conjunction with
the Commission's consideration of whether to grant MBSCC permanent
registration as a clearing agency under Section 17A(b) \10\ of the Act.
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\10\ 15 U.S.C. 78q-1(b).
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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, NW., Washington, DC 20549.
Copies of the submission, all subsequent amendments, all written
statements with respect to the request for permanent registration as a
clearing agency that are filed with the Commission, and all written
communications relating to the extension 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 also
will be available for inspection and copying at the principal office of
MBSCC. All submissions should refer to File No. 600-22.
Conclusion
On the basis of the foregoing, the Commission finds that extending
MBSCC's temporary registration as a clearing agency is consistent with
the Act and in particular with Section 174 \11\ of the Act.
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\11\ 15 U.S.C. 78q-1.
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It is therefore ordered, pursuant to Section 19(a) of the Act, that
MBSCC's temporary registration as a clearing agency (File No. 600-22)
be, and hereby is, extended through March 31, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(50)(i).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-17671 Filed 7-7-97; 8:45 am]
BILLING CODE 8010-01-M