[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