[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]


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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.
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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 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\
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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

    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.
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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 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.
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    \4\ 15 U.S.C. 78s(b)(3)(A)(i).
    \5\ 17 CFR 240.19b-4(e)(1).
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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 20549-0609. 
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\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-17417 Filed 7-8-99; 8:45 am]
BILLING CODE 8010-01-M