[Federal Register Volume 63, Number 58 (Thursday, March 26, 1998)]
[Notices]
[Pages 14740-14741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7919]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39776; 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

March 20, 1998
    On February 28, 1997, the MBS Clearing Corporation (``MBSCC'') 
filed \1\ with the Securities and Exchange Commission (``Commission'') 
an application pursuant to Section 19(a) of the Securities Exchange Act 
of 1934 (``Act'') \2\ requesting that the Commission grant MBSCC 
permanent registration as a clearing agency under Section 17A of the 
Act.\3\ Because MBSCC's current temporary registration expires on March 
31, 1998, the Commission is extending MBSCC's temporary registration as 
a clearing agency through March 31, 1999, 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, 1999.
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    \1\ Letter from Julie Beyers, MBSCC, February 27, 1997.
    \2\ 15 U.S.C. 78s(a).
    \3\ 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) \4\ and 
19(a)(1) \5\ of the Act and Rule 17Ab2-1(c) \6\ thereunder for a period 
of eighteen months. \7\ 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 
March 31, 1998.\8\
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    \4\ 15 U.S.C. 78q-1(b).
    \5\ 15 U.S.C. 78s(a)(1).
    \6\ 17 CFR 240.17Ab2-1(c).
    \7\ Securities Exchange Act Release No. 24046 (February 2, 
1987), 52 FR 4218.
    \8\ 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; 37372 (June 26, 
1996), 61 FR 35281; and 38784 (June 27, 1997) 62 FR 36587.
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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 during the past year MBSCC appraised the value given to 
securities deposited as collateral for participants funds 
obligations.\9\ In addition, MBSCC modified its rules to explicitly 
state that MBSCC's participants are liable as principal for any 
contracts or other transactions they submit to MBSCC on behalf of 
entities that are not participants.\10\
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    \9\ Securities Exchange Act Release No. 38769 (June 24, 1997), 
62 FR 34859 [File No. MBS-97-02].
    \10\ Securities Exchange Act Release No. 39405 (December 5, 
1997), 62 FR 65466 [File No. MBS-97-05].
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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, 1999. 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 review of MBSCC's request for permenant registration 
as a clearing agency under Section 17A of the Act.\11\
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    \11\ 15 U.S.C. 78q-1.
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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 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

[[Page 14741]]

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. 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 17A of the Act.\12\
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    \12\ 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, 1999.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(50)(i).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-7919 Filed 3-25-98; 8:45 am]
BILLING CODE 8010-01-M