Document ID: SEC-2011-0886-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Fixed Income Clearing Corp.
Posted Date: 2011-06-24T04:00Z

[Federal Register Volume 76, Number 122 (Friday, June 24, 2011)]
[Notices]
[Pages 37165-37166]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-15805]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64707; 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 20, 2011.
    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, 
2013.\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 
Securities Exchange Act of 1934 (``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, 2011.\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; 55920 (June 
18, 2007), 72 FR 35270; 57949 (June 11, 2008), 73 FR 34808; 60189 
(June 29, 2009), 74 FR 32198; and 62348 (June 22, 2010), 75 FR 
36723.
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    On April 11, 2011, FICC requested that the Commission 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 and General 
Counsel, FICC (April 11, 2011).
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    On March 12, 2008, FICC filed a proposed rule change pursuant to 
Section 19(b)(1) of the Act and Rule 19b-4 thereunder to introduce 
central counterparty (``CCP'') and guarantee settlement services to its 
MBS Division.\13\ Currently, FICC acts as the CCP and provides 
guarantee settlement services for its Government Securities Division 
members' eligible U.S. Government securities transactions but does not 
act as the CCP or provide guarantee settlement services for its MBS 
Division members' eligible mortgage-backed securities transactions.
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    \13\ The filed proposed rule change can be viewed at http://www.dtcc.com/downloads/legal/rule_filings/2008/ficc/2008-01.pdf. 
See also 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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    Pursuant to this Notice and Order, 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 may 
continue to provide uninterrupted clearing and settlement services to 
its users. The Commission will consider permanent registration of FICC 
at a future date after the Commission has acted upon FICC's proposed 
rule change to introduce CCP and guarantee settlement services to its 
MBS Division.
    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Comments may be submitted by any of 
the following methods:

[[Page 37166]]

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 Elizabeth M. Murphy, 
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 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 website viewing and printing in 
the Commission's Public Reference Section, 100 F Street, NE., 
Washington, DC 20549 on official business days between the hours of 10 
a.m. and 3 p.m. 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 http://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 15, 2011.
    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, 2013.

    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)(50)(i).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-15805 Filed 6-23-11; 8:45 am]
BILLING CODE 8011-01-P