Federal Register / Vol. 62, No. 203 / Tuesday, October 21, 1997 / Notices 54667

8 15 U.S.C. 78q–1(b)(3)(A).

9 15 U.S.C. 78s(b)(3)(A)(iii).

1017 CFR 240.19b–4(e)(4).

11 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

2The Commission has modified the text of the

summaries prepared by MBSCC.

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.

4At 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.

notice’s initial send date. LOFF notices

that have been accepted (i.e., for which

funds are available) will remain on the

database for two days. LOFF notices that

have been declined (i.e., for which

funds are available) will remain on the

database for five days. All other LOFF

notices that receive replies (i.e., prime

broker or rejected) will be removed from

the database thirty days after the initial

send date of the notice.

The proposed rule change is designed

to eliminate the physical delivery and

confirmation of LOFFs thereby

providing DTC participants with a more

timely and accurate messaging vehicle

for these documents. In addition, by

incorporating LOFFs into the PEX

System, DTC will offer its participants

an efficient means of tracking notices of

LOFFs.

DTC believes that the proposed rule

change is consistent with the

requirements of Section 17A(b)(3)(A) of

the Act 8 and the rules and regulations

thereunder because it promotes

efficiencies in the clearance and

settlement of securities transactions.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

DTC 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, in the public

interest, and for the protection of

investors.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

DTC has not solicited participant

comments on the proposed rule change.

A working group of participants has

requested that DTC incorporate LOFFs

into the PEX system and has committed

to using such a service.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has been

effective pursuant to Section

19(b)(3)(A)(iii) of the Act 9 and Rule

19b–4(e)(4) thereunder 10 because it

effects a change in an existing service of

DTC that (i) does not adversely affect

the safeguarding of securities or funds

in the custody or control of DTC or for

which it is responsible and (ii) does not

significantly affect the respective rights

or obligations of DTC 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.

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. 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 DTC. All submissions should

refer to File No. SR–DTC–97–18 and

should be submitted by November 12,

1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–27758 Filed 10–20–97; 8:45 am]

BILLING CODE 8010–01–M

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.

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

(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.

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.
54668 Federal Register / Vol. 62, No. 203 / Tuesday, October 21, 1997 / Notices

5 15 U.S.C. 78q–1.

6 15 U.S.C. 78s(b)(3)(A)(iii).

7 17 CFR 240.19b–4(e).

8 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

2The Commission has modified parts of these

statements.

3Securities Exchange Act Release No. 39096

(September 19, 1997), 62 FR 50416 (order approving

proposed rule change).

4 15 U.S.C. 78q–1(b)(3)(D).

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.

(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.

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. § 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

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–27759 Filed 10–20–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39233; File No. SR–NSCC–

97–09]

Self-Regulatory Organizations;

National Securities Clearing

Corporation; Notice of Filing and

Immediate Effectiveness of a Proposed

Rule Change Establishing Fees for the

Annuities Processing Service

October 10, 1997.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

August 14, 1997, the National Securities

Clearing Corporation (‘‘NSCC’’) 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 NSCC.

The Commission is publishing this

notice to solicit comments on the

proposed rule change from interested

persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The purpose of the proposed rule

change is to establish fees for NSCC’s

annuities processing service (‘‘APS’’).

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

NSCC included statements concerning

the purpose of and statutory basis for

the proposed rule change and discussed

any comments it received on the

proposed rule change. The test of these

statements may be examined at the

places specified in Item IV below. Set

forth in sections (A), (B), and (C) below,

are the most significant aspects of such

statements.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

NSCC has filed and had approved by

the Commission its APS.3 APS is a

centralized communication link that

connects participating insurance

carriers with broker-dealers, banks, and

the broker-dealers’ or banks’ affiliated

life insurance agencies where

appropriate.

The purpose of this proposed rule

change is to establish fees for NSCC’s

APS. Three categories of fees will be

established. Membership fees will be

$335 per month. Transaction fees will

be $0.60 per 1,000 full positions, $0.50

per 1,000 focused positions, and $8.50

per 1,000 commission items. File fees

will be $15.00 per file per day for

sending or receiving APS related files.

The new fees became effective upon

implementation of APS.

NSCC believes that the proposed rule

change is consistent with Section

17A(b)(3)(D) of the Act.4 which requires

that the rules of a registered clearing

agency provide for an equitable

allocation of reasonable dues, fees, and

other charges for services which it

provides to its participants.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

NSCC does not believe that the

proposed rule change will impact or

impose a burden on competition.

(C) Self-Regulatory Organization’s

Statement of Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

No written comments have been

solicited or received. NSCC will notify

the Commission of any written

comments received by NSCC.