[Federal Register Volume 63, Number 36 (Tuesday, February 24, 1998)]
[Notices]
[Pages 9274-9275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4571]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39673; File No. SR-MBSCC-98-01]


Self-Regulatory Organizations; MBS Clearing Corporation; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Modifying 
MBS Clearing Corporation's Schedule of Charges for the Dealer Account 
Group

February 17, 1998.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''), notice is hereby given that on January 26, 1998, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change modifies MBSCC's schedule of charges for 
the dealer account group.

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\
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    \2\ The Commission has modified the text of the summaries 
prepared by MBSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The proposed rule change modifies MBSCC's schedule of charges for 
the dealer account group.\3\ Specifically, the proposed rule change 
reduces trade processing fees for settlement balance order (``SBO'') 
destined trades, trade-for-trade transactions, and option trades to 
more accurately reflect the costs incurred by MBSCC to provide trade 
processing services to dealers.
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    \3\ MBSCC has separate fee schedules for brokers and dealers. 
The dealer account group is the fee schedule for dealers' accounts.
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    MBSCC charges dealers for trade creates \4\ relating to SBO 
destined trades a monthly fee for each million of par value. The fee 
currently charged is $2.45 [par value between $1 million and $2,500 
million], $2.25 [par value between $2,501 and $5,000 million], $2.10 
[par value between $5,001 and $7,500 million], $1.95 [par value between 
$7,501 and $10,000 million], $1.75 [par value between $10,001 and 
$12,500 million], and $1.60 [par value of $12,501 million and over]. 
These fees are reduced to $2.00, $1.85, $1.75, $1.60, $1.45, and $1.30 
respectively.
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    \4\ A trade create is a type of transaction used to identify the 
submission and/or subsequent processing of trades as opposed to 
cancels or notifications of settlement.
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    The current fee charged to dealers for trade creates relating to 
trade-for-trade transactions is $5.00 per side. The current fee charged 
to dealers for trade creates for option trades is $4.00 per side. The 
new reduced fee charged to dealers for trade creates relating to both 
trade-for-trade transactions and option trades is $2.50 per side.
    MBSCC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act \5\ and the rules and 
regulations thereunder because it provides for the equitable allocation 
of dues, fees, and other charges among MBSCC's participants.
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    \5\ 15 U.S.C. 78q-1.
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(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)(ii) \6\ of the Act and pursuant to Rule 19b-4(e)(2) \7\ 
promulgated thereunder in that the proposed rule change establishes or 
changes a due, fee, or other charge imposed by the self-regulatory 
organization. At any time within sixty days of the filing of such

[[Page 9275]]

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 purpose of the Act.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(e)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. 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 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, N.W., 
Washington, D.C. 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-98-01 and should be 
submitted by March 17, 1998.
    For the Commission by the Division of Market Regulation, pursuant 
to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-4571 Filed 2-22-98; 8:45 am]
BILLING CODE 8010-01-M