[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]


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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.
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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 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\
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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 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.
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    \3\ 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 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.
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    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(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

[[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\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McMcFarland,
Deputy Secretary.
[FR Doc. 99-16577 Filed 6-29-99; 8:45 am]
BILLING CODE 8010-01-M