[Federal Register Volume 64, Number 131 (Friday, July 9, 1999)] [Notices] [Pages 37183-37184] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-17417] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-41592; File No. SR-MBSCC-99-03] Self-Regulatory Organizations; MBS Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the ElIgibility of Applicants July 1, 1999. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act''), notice is hereby given that on April 19, 1999, 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. --------------------------------------------------------------------------- \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 adds Addendum B to MBSCC's rules regarding the eligibility of applicants. 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 is 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 Article III, Rule 1, Section 1 of MBSCC's rules sets forth the categories of applicants that are eligible to become participants of MBSCC. The specific categories of entities that may become participants include mortgage bankers, broker-dealers registered with the Commission, commercial banks, thrift institutions, insurance companies, clearing agencies registered with the Commission, and investment companies registered with the Commission. The rule also contains a provision for ``firms in such other categories as the [MBSCC] from time to time may determine.'' The addendum clarifies the provision of MBSCC's eligibility rule regarding ``firms in such other categories as the [MBSCC] from time to time may determine.'' The categories of firms that are participants pursuant to this provision currently include government sponsored enterprises, international organizations, and private investment companies. The addendum also states that pension funds have expressed an interest in becoming participants of MBSCC and in the future may constitute an additional category within this provision. The addendum specifically provides that these firms are subject to MBSCC's rules and procedures, including standards for qualifications to the same extent as other firms. MBSCC believes that the proposed rule change is consistent with the requirements of Section 17A of the Act \3\ and the rules and regulations thereunder because it constitutes an interpretation of an existing rule regarding the admission of 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 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 relating to the proposed rule change 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)(i) of the Act \4\ and pursuant to Rule 19b-4(e)(1) \5\ promulgated thereunder because the proposal constitutes a stated policy, practice, or interpretation with respect to the [[Page 37184]] meaning, administration, or enforcement of an existing MBSCC rule. At any time within sixty days of the filing of such 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)(i). \5\ 17 CFR 240.19b-4(e)(1). --------------------------------------------------------------------------- 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 20549-0609. 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-99-03 and should be submitted by July 30, 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. McFarland, Deputy Secretary. [FR Doc. 99-17417 Filed 7-8-99; 8:45 am] BILLING CODE 8010-01-M