Document ID: SEC-2008-0834-0001
Agency: sec
Document Type: Notice
Title: Filing and Order Approving an Extension of Temporary Registration as a Clearing Agency: Fixed Income Clearing Corp.
Posted Date: 2008-06-18T04:00Z

[Federal Register: June 18, 2008 (Volume 73, Number 118)]
[Notices]               
[Page 34808-34809]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jn08-130]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57949; File No. 600-23]

 
Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing and Order Approving an Extension of Temporary 
Registration as a Clearing Agency

June 11, 2008.
    The Securities and Exchange Commission (``Commission'') is 
publishing this notice and order to solicit comments from interested 
persons and to extend the Fixed Income Clearing Corporation's 
(``FICC'') temporary registration as a clearing agency through June 30, 
2009.\1\
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    \1\ FICC is the successor to MBS Clearing Corporation and 
Government Securities Clearing Corporation.
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    On February 2, 1987, pursuant to Sections 17A(b) and 19(a) of the 
Act \2\ and Rule 17Ab2-1 promulgated thereunder,\3\ the Commission 
granted the MBS Clearing Corporation (``MBSCC'') registration as a 
clearing agency on a temporary basis for a period of eighteen 
months.\4\ The Commission subsequently extended MBSCC's registration 
through June 30, 2003.\5\
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    \2\ 15 U.S.C. 78q-1(b) and 78s(a).
    \3\ 17 CFR 240.17Ab2-1.
    \4\ Securities Exchange Act Release No. 24046 (February 2, 
1987), 52 FR 4218.
    \5\ Securities Exchange Act Release Nos. 25957 (August 2, 1988), 
53 FR 29537; 27079 (July 31, 1989), 54 FR 34212; 28492 (September 
28, 1990), 55 FR 41148; 29751 (September 27, 1991), 56 FR 50602; 
31750 (January 21, 1993), 58 FR 6424; 33348 (December 15, 1993), 58 
FR 68183; 35132 (December 21, 1994), 59 FR 67743; 37372 (June 26, 
1996), 61 FR 35281; 38784 (June 27, 1997), 62 FR 36587; 39776 (March 
20, 1998), 63 FR 14740; 41211 (March 24, 1999), 64 FR 15854; 42568 
(March 23, 2000), 65 FR 16980; 44089 (March 21, 2001), 66 FR 16961; 
44831 (September 21, 2001), 66 FR 49728; 45607 (March 20, 2002), 67 
FR 14755; 46136 (June 27, 2002), 67 FR 44655.
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    On May 24, 1988, pursuant to Sections 17A(b) and 19(a) of the Act 
\6\ and Rule 17Ab2-1 promulgated thereunder,\7\ the Commission granted 
the Government Securities Clearing Corporation (``GSCC'') registration 
as a clearing agency on a temporary basis for a period of three 
years.\8\ The Commission subsequently extended GSCC's registration 
through June 30, 2003.\9\
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    \6\ Supra note 2.
    \7\ Supra note 3.
    \8\ Securities Exchange Act Release No. 25740 (May 24, 1988), 53 
FR 19839.
    \9\ Securities Exchange Act Release Nos. 25740 (May 24, 1988), 
53 FR 19639; 29236 (May 24, 1991), 56 FR 24852; 32385 (June 3, 
1993), 58 FR 32405; 35787 (May 31, 1995), 60 FR 30324; 36508 
(November 27, 1995), 60 FR 61719; 37983 (November 25, 1996), 61 FR 
64183; 38698 (May 30, 1997), 62 FR 30911; 39696 (February 24, 1998), 
63 FR 10253; 41104 (February 24, 1999), 64 FR 10510; 41805 (August 
27, 1999), 64 FR 48682; 42335 (January 12, 2000), 65 FR 3509; 43089 
(July 28, 2000), 65 FR 48032; 43900 (January 29, 2001), 66 FR 8988; 
44553 (July 13, 2001), 66 FR 37714; 45164 (December 18, 2001), 66 FR 
66957; 46135 (June 27, 2002), 67 FR 44655.
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    On January 1, 2003, MBSCC was merged into GSCC, and GSCC was 
renamed FICC.\10\ The Commission subsequently extended FICC's temporary 
registration through June 30, 2008.\11\
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    \10\ Securities Exchange Act Release No. 47015 (December 17, 
2002), 67 FR 78531 (December 24, 2002) [File Nos. SR-GSCC-2002-07 
and SR-MBSCC-2002-01].
    \11\ Securities Exchange Act Release Nos. 48116 (July 1, 2003), 
68 FR 41031; 49940 (June 29, 2004), 69 FR 40695; 51911 (June 23, 
2005), 70 FR 37878; 54056 (June 28, 2006), 71 FR 38193; and 55920 
(June 18, 2007), 72 FR 35270.
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    On May 28, 2008, FICC requested that the Commission grant FICC 
permanent registration as a clearing agency or in the alternative 
extend FICC's temporary registration until such time as the Commission 
is prepared to grant FICC permanent registration.\12\
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    \12\ Letter from Nikki Poulos, Managing Director, General 
Counsel, and Chief Privacy Officer, FICC (May 28, 2008).
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    In April, 2006, FICC announced its plan to have its Mortgage-Backed 
Securities Division (``MBS Division'') act as a central counterparty 
(``CCP'').\13\ Pursuant to this service, FICC would act as the CCP for 
MBS Division members and would become the new legal counterparty to all 
original parties for eligible mortgage-backed securities transactions. 
Currently, FICC through its Government Securities Division acts as the 
CCP for its members U.S. Government securities transactions.
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    \13\ See FICC White Paper: ``A Central Counterparty For 
Mortgage-Backed Securities: Paving The Way'' at http://www.dtcc.com/
downloads/leadership/whitepapers/ccp.pdf.
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    Therefore, the Commission is extending FICC's temporary 
registration as a clearing agency in order that FICC may continue to 
operate as a registered clearing agency and to provide its users 
clearing and settlement services. The Commission will consider 
permanent registration of FICC at a future date after the Commission 
has further evaluated FICC's plans to have its MBS Division act as a 
CCP and after the Commission and FICC have had time to evaluate how 
FICC is functioning with its MBS Division acting as a CCP, assuming the 
MBS Division CCP service is implemented.
    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number 600-23 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number 600-23. This file number 
should be included on the subject line if e-mail is used. To help the 
Commission process and review your comments more efficiently, please 
use only one method. The Commission will post all comments on the 
Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements

[[Page 34809]]

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, 100 F Street, NE., Washington, 
DC 20549. Copies of such filing also will be available for inspection 
and copying at the principal office of FICC and on FICC's Web site at 
www.ficc.com. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number 600-23 
and should be submitted on or before July 9, 2008.
    It is therefore ordered that FICC's temporary registration as a 
clearing agency (File No. 600-23) be and hereby is extended through 
June 30, 2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(16).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-13704 Filed 6-17-08; 8:45 am]

BILLING CODE 8010-01-P