[Federal Register Volume 64, Number 125 (Wednesday, June 30, 1999)] [Notices] [Pages 35228-35229] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-16577] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-41550; File No. SR-MBSCC-99-4] Self-Regulatory Organizations; MBS Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Modifying MBSCC's Schedule of Charges Relating To the Electronic Pool Notification Service June 23, 1999. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ notice if hereby given that on April 30, 1999, 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 proposed rule change modifies the schedule of charges relating to MBSCC's Electronic Pool Notification (``EPN'') service. 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 The purpose of the proposed rule change is to add new fees for dial-up circuits and modems relating to MBSCC's EPN service. EPN participants currently are required to own the circuits and modems necessary for dial-up connectivity to EPN. Participant ownership of circuits and modems at EPN data centers makes installation, service, and deinstallation cumbersome because circuit providers and modem vendors typically require the participant to become involved in the process. The proposed rule change will allow MBSCC to own the dial-up circuits and modems at EPN data centers which MBSCC believes will streamline the process of installation, service, and deinstallation. The new fees will offset the cost of MBSCC ownership of the dial-up circuits and modems. The new dial-up circuit wage fee will be $30.00 per month (per circuit to MetroTech and Water Street) and the new dial- up modem usage fee will be $30.00 per month (per circuit to MetroTech and Water Street) and the new dial-up modem usage fee will be $15.00 per month (per modem at MetroTech and Water Street). These fees are in addition to the existing monthly access fees that cover port charges for dial-up connectivity to the EPN data centers. EPN participants that currently own dial-up modems and circuits will not be affected by the new fees. Participants with new dial-up connectivity to EPN will not be required to purchase circuits or modems for the EPN data centers but will be charged the new fees. The proposed rule change also makes a conforming change to the statement in the EPN schedule of charges that ``telecommunication circuit charges from Sector (or vendor of choice) will apply.'' The word ``will'' is changed to ``may'' because EPN participants will not receive circuit charges from vendors when MBSCC owns the circuit. The proposed rule change is consistent with the requirements of Section 17A of the Act \3\ and the rules and regulations thereunder because it provides for the equitable allocation of dues, fees, and other charges among MBSCC's participants. --------------------------------------------------------------------------- \3\ 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 impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. (C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received from Members, Participants or Others No comments on the proposed rule change were solicited or received. 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) \4\ of the Act and pursuant to Rule 19b-4(f)(2) \5\ promulgated thereunder because the proposal establishes or changes a due, fee, or other charge imposed by MBSCC. At any time within sixty days of the filing of such proposed 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. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78s(b)(3)(A)(ii). \5\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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 [[Page 35229]] 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-94-4 and should be submitted by July 21, 1999. For the Commission by the Division of market Regulation, pursuant to delegated authority.\6\ --------------------------------------------------------------------------- \6\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Margaret H. McMcFarland, Deputy Secretary. [FR Doc. 99-16577 Filed 6-29-99; 8:45 am] BILLING CODE 8010-01-M