[Federal Register Volume 62, Number 247 (Wednesday, December 24, 1997)]
[Notices]
[Pages 67422-67423]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33527]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39449; File No. SR-MBSCC-97-08]


Self-Regulatory Organizations; MBS Clearing Corporation; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to the Electronic Pool Notification Service's Fee Schedule

December 15, 1997.
    Pursuant to Section 19(b)(1)\1\ of the Securities Exchange Act of 
1934 (``Act''), notice is hereby given that on October 22, 1997, the 
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. The Commission is publishing this notice to solicit 
comments from interested persons on the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The text of the proposed rule change consists of modifications to 
the Electronic Pool Notification (``EPN'') schedule of charges, which 
is attached as Exhibit A to the filing.

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.\2\
---------------------------------------------------------------------------

    \2\ The Commission has modified the text of the summaries 
prepared by MBSCC.
---------------------------------------------------------------------------

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    MBSCC currently assesses message processing fees as reflected in 
the EPN Schedule of Charges. MBSCC assesses

[[Page 67423]]

``On Send'' fees of $.25/million current face from 8:00 a.m. to 1:00 
p.m. and $1.25/million current face from 3:00 p.m. to 5:00 p.m. MBSCC 
also assesses a message processing ``On Receive'' fee of $.50/million 
current face 8:00 a.m. to 1:00 p.m. MBSCC does not charge a message 
processing On Receive fee from 3:00 p.m. to 5:00.
    On occasion, MBSCC may open the EPN service before 8:00 a.m. or 
close it after 5:00 p.m. to accommodate the processing needs of its 
participants.\3\ When this happens, MBSCC does not charge higher fees 
for the additional usage. The proposed rule change codifies this 
practice by amending the EPN Schedule of Charges to reflect that the 
``On Send'' fee will be $.25/million from the opening of business to 
1:00 p.m. and $1.25/million from 3:00 p.m. to the close of business. 
The proposed rule change also amends fees to reflect that the EPN ``On 
Receive'' fee will be $.50/million from the opening of business to 1:00 
p.m. and no charges from 3:00 p.m. to the close of business. As a 
result, MBSCC's schedule of charges now reflects that message 
processing fees will not be altered when the normal hours of operation 
for the EPN service are extended. MBSCC believes that the proposed rule 
change is consistent with the requirements of Section 17A of the Act 
\4\ and the rules and regulations thereunder because it will promote 
the prompt and accurate clearance and settlement of securities 
transactions.
---------------------------------------------------------------------------

    \3\ Conversation between Richard Paley, Associate Counsel, 
MBSCC, and Jeffrey Mooney, Attorney, Division of Market Regulation, 
Commission (November 6, 1997).
    \4\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

(B) Self-Regulatory Organization's Statement on Burden on Competition

    MBSCC does not believe that the proposed rule change will impact 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

    No written comments have been solicited or received. MBSCC will 
notify the Commission of any written comments received by MBSCC.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(i) of the Act \5\ and pursuant to Rule 19b-4(e)(1)\6\ 
promulgated thereunder because the proposal constitutes a stated 
policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of existing MBSCC rules. At any time 
within sixty days of the filing of such rule change, the Commission may 
summarily abrogate such rule change if it appears to the Commission 
that such action is necessary or appropriate in the public interest, 
for the protection of investors, or otherwise in furtherance of the 
purposes of the Act.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(i).
    \6\ 17 CFR 240.19b-4(e)(1).
---------------------------------------------------------------------------

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 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. SR-MBSCC-97-08 and should be 
submitted by January 14, 1998.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-33527 Filed 12-23-97; 8:45 am]
BILLING CODE 8010-01-M