[Federal Register Volume 64, Number 62 (Thursday, April 1, 1999)]
[Notices]
[Pages 15854-15855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: X99-10401]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41211; 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

Marach 24, 1999.
    On March 11, 1999, 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 or in the alternative extend MBSCC's temporary registration until 
permanent registration is granted.\3\ Because MBSCC's current temporary 
registration expires on March 31, 1999, the Commission is extending 
MBSCC's temporary registration as a clearing agency through March 31, 
2000, while the Commission 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, 
2000.
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    \1\ Letter from Anthony H. Davidson, Managing Director and 
General Counsel, MBSCC (March 11, 1999).
    \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 extended 
MBSCC's temporary registration as a clearing agency several times with 
the most current extension extending MBSCC's temporary registration 
through March 31, 1999.\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 34212; 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; 38784 (June 27, 1997) 62 FR 36587; and 39776 
(March 20, 1998) 63 FR 14740.
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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 its 
original temporary registration order, MBSCC has implemented many 
improvements and continues to work towards enhancing the safety and 
efficiency of its operations. For example, during the past year, MBSCC 
modified its rules to strengthen its processes for liquidating open 
trades when MBSCC ceases to act for a participant.\9\ In addition, 
MBSCC increased the number of directors on its board of directors from 
thirteen to fifteen, which allows two additional participants to be 
represented MBSCC's board.\10\
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    \9\ Securities Exchange Act Release No. 39747 (March 13, 1999), 
63 FR 13712 [File No. FR-MBSCC-97-10].
    \10\ Securities Exchange Act Release No. 41104 (December 5, 
1997), 62 FR 65466 [File No. FR-MBSCC-98-03].
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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, 2000. During this temporary 
registration period, the Commission anticipates that it will act on 
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 permanent 
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, 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 the extending 
MBSCC's temporary registration as a clearing agency is consistent with 
the

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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, 2000.

    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 Dos. 99-8064 Filed 3-31-99; 8:45 am]
BILLING CODE 8010-01-M