[Federal Register Volume 61, Number 130 (Friday, July 5, 1996)]
[Notices]
[Pages 35281-35282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17145]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37372; File No. 600-22]


Self-Regulatory Organizations; MBS Clearing Corporation; Notice 
of Filing of Request and Order Approving Application for Extension of 
Temporary Registration as a Clearing Agency

June 26, 1996.
    On June 6, 1996, the MBS Clearing Corporation (``MBS'') filed with 
the Securities and Exchange Commission (``Commission'') a request 
pursuant to

[[Page 35282]]

Section 19(a) \1\ of the Securities Exchange Act of 1934 (``Act'') for 
extension of its temporary registration as a clearing agency under 
Section 17A \2\ of the Act for a period of one year.\3\ The Commission 
is publishing this notice of filing of request and order to solicit 
comments from interested persons and to grant MBS's request for an 
extension of its temporary registration as a clearing agency through 
June 30, 1997.
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    \1\ 15 U.S.C. 78s(a) (1988).
    \2\ 15 U.S.C. 78q-1(a) (1988).
    \3\ Letter from Robert J. Woldow, Secretary and General Counsel, 
MBS, to Jerry Carpenter, Assistant Director, Division of Market 
Regulation, Commission (June 6, 1996).
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    On February 2, 1987, the Commission granted MBS's application for 
registration as a clearing agency pursuant to Sections 17A(b) and 
19(a)(1) of the Act \4\ and Rule 17Ab2-1(c) \5\ thereunder on a 
temporary basis for a period of eighteen months.\6\ Subsequently, the 
Commission has issued orders that extended MBS's temporary registration 
as a clearing agency. The last extension order extended MBS's temporary 
registration through June 30, 1996.\7\
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    \4\ 15 U.S.C. 78q-1(b) and 78s(a)(1) (1988).
    \5\ 17 CFR 240.17Ab2-1(c) (1994).
    \6\ Securities Exchange Act Release No. 24046 (February 2, 
1987), 52 FR 4218.
    \7\ Securities Exchange Act Release Nos. 25957 (August 2, 1988), 
53 FR 29537; 27079 (July 31, 1989), 54 FR 32412; 28492 (September 
28, 1990), 55 FR 41148; 29571 (September 27, 1991), 56 FR 50602; 
31750 (January 21, 1993), 58 FR 6424; 33348 (December 15, 1993), 58 
FR 68183; and 35132 (December 21, 1994), 59 FR 67743.
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    As discussed in detail in the original order granting MBS's 
registration, one of the primary reasons for MBS's registration was to 
enable it to provide for the safe and efficient clearance and 
settlement of transactions in mortgage-backed securities. Since the 
original temporary registration order, MBS has implemented several 
improvements to its operating and financial standards and continues to 
work towards enhancing the safety and efficiency of its operations. For 
example, over he past year the Commission granted permanent approval of 
MBS's Electronic Pool Notification (``EPN'') service, an electronic, 
post-trade communication system for mortgage-backed securities.\8\ In 
addition, MBS modified its procedures relating to settlement balance 
order (``SBO'') settlement to help prevent participants from 
influencing the amount of their cash adjustments through submissions of 
internal trades.\9\
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    \8\ Securities Exchange Act Release No. 36540 (November 30, 
1995) 60 FR 63089 [File No. MBS-95-09] (order granting accelerated 
approval of proposed rule change).
    \9\ Securities Exchange Act Release No. 37205 (May 13, 1996), 
989 61 FR 24898 [File No. MBS-95-08] (order approving proposed rule 
change).
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    MBS has functioned effectively as a registered clearing agency for 
over nine years. Accordingly, in light of MBS's past performance and 
the need for MBS to provide continuity of service to its participants, 
the Commission believes that, pursuant to Section 17A(b)(2) of the Act, 
it is necessary and appropriate in the public interest and for the 
prompt and accurate clearance and settlement of securities transactions 
to approve MBS's request to extend its temporary registration through 
June 30, 1997. During this temporary registration period, the 
Commission expects MBS to file a request for permanent registration as 
a clearing agency. Any comments received during MBS's temporary 
registration will be considered in conjunction with the Commission's 
consideration of whether to grant MBS permanent registration as a 
clearing agency under Section 17A(b) of the Act.\10\
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    \10\ 15 U.S.C. 78q-1(b) (1988).
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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 request for extension of temporary 
registration as a clearing agency that are filed with the Commission, 
and all written communications relating to the requested extension 
between the Commission and any person, other than those that may be 
withheld from the public in accordance with 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 MBS. All 
submissions should refer to File No. 600-22.

Conclusion

    On the basis of the foregoing, the Commission finds that MBS's 
request for extension of temporary registration as a clearing agency is 
consistent with the Act and in particular with Section 17A of the Act.
    It is therefore ordered, that MBS's temporary registration as a 
clearing agency (File No. 600-22) be, and hereby is, extended through 
June 30, 1997.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(50)(i) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-17145 Filed 7-3-96; 8:45 am]
BILLING CODE 8010-01-M