[Federal Register Volume 63, Number 90 (Monday, May 11, 1998)]
[Notices]
[Page 25891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12349]



[[Page 25891]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39954; File No. SR-MBSCC-98-2]


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

May 4, 1998.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''), notice is hereby given that on April 10, 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.\2\
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    \2\ MBSCC has separate fee schedules for brokers and dealers. 
The dealer account group is the fee schedule for dealers' accounts.
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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.\3\
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    \3\ 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. Specifically, the proposed rule change 
reduces account maintenance fees, currently at $350 per month for each 
account, for participants that use a common investment manager to 
process trades with MBSCC.
    The new account maintenance fee for a participant that uses a 
common investment manager to process trades with MBSCC is based on the 
total number of accounts a participant maintains with an investment 
manager. The new monthly account maintenance fees are $350 for one 
account, $185 per account for two or three accounts, $150 per account 
for four to seven accounts, $130 per account for eight to ten accounts, 
and $120 per month for more than ten accounts.
    The reduced account maintenance fees reflect efficiencies obtained 
by using a common investment manager to process trades with MBSCC such 
as reduced communications costs, systems overhead, and support services 
that result in savings to MBSCC. MBSCC will implement these changes 
commencing with its May 1998 billing cycle.
    MBSCC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act \4\ 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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    \4\ 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) \5\ of the Act and pursuant to Rule 19b-4(e)(2) \6\ 
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 rule 
change, the Commission may summarily abrogate such proposed 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 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, 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-98-02 and should be 
submitted by June 1, 1998.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-12349 Filed 5-8-98; 8:45 am]
BILLING CODE 8010-01-M