[Federal Register Volume 62, Number 203 (Tuesday, October 21, 1997)]
[Notices]
[Pages 54667-54668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27759]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39234; File No. SR-MBSCC-97-7]


Self-Regulatory Organizations; MBS Clearing Corporation; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Use of CUSIP Numbers in Processing Eligible Securities

October 10, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on September 25, 1997, 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 amends MBSCC's rules to allow MBSCC to use 
CUSIP numbers to process eligible securities in addition to the current 
practice of using class codes.

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

    Currently, MBSCC processes transactions relating to eligible 
securities based on a ten character class code identifying the class of 
such securities.\3\ To accommodate the March 1998 industry-wide 
conversion to a system based on a nine character CUSIP number, MBSCC 
will permit participants to submit transactions with either the 
appropriate class code or CUSIP number. MBSCC anticipates that as of 
January 1, 1999, it will accept only CUSIP numbers.\4\ Other than this 
technical change from a class system to a CUSIP system, the processing 
of eligible securities will not change.
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    \3\ ``Class'' is defined in MBSCC's rules as a particular type 
of eligible securities issues or guaranteed by the same agency and 
having the same coupon rate and date of maturity.
    \4\ At such time, MBSCC will submit a rule filing with the 
Commission under Section 19(b)(3)(A) of the Act to eliminate all 
references to class codes.
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    With respect to MBSCC's electronic pool notification (``EPN'') 
system, there is no similar period of time during which EPN users can 
submit either the class code or CUSIP number. Beginning March 31, 1998, 
EPN will operate on a CUSIP number basis.

[[Page 54668]]

    CUSIP numbers will be assigned based on the same factors as 
currently used for class codes. Standard & Poor's anticipates 
publishing CUSIPs for eligible securities no later than December 31, 
1997.
    MBSCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \5\ and the rules and 
regulations thereunder because it promotes efficiencies in the 
clearance and settlement of securities transactions.
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    \5\ 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. 
MNSCC will notify the Commission of any written comments its receives.

III. Date for 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)(iii) \6\ of the Act and pursuant to Rule 19b-4(e) \7\ 
promulgated thereunder because the proposal effects a change in an 
existing service of a registered clearing agency that (i) does not 
adversely affect the safeguarding of securities or funds in the custody 
or control of MBSCC or for which it is responsible and (ii) does not 
significantly affect the respective rights or obligations of MBSCC or 
persons using the service. 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(e).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 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 those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. Sec. 552, will be available for inspection and copying in 
the Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C. 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-97-7 and should be 
submitted by November 12, 1997.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-27759 Filed 10-20-97; 8:45 am]
BILLING CODE 8010-01-M