[Federal Register Volume 59, Number 250 (Friday, December 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32155]
[[Page Unknown]]
[Federal Register: December 30, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35132; File Nos. 600-19 and 600-22]
Self-Regulatory Organizations; MBS Clearing Corporation; Order
Granting Approval of Application for Extension of Temporary
Registration as a Clearing Agency
On November 7, 1994, the MBS Clearing Corporation (``MBS'') filed
with the Securities and Exchange Commission (``Commission''), pursuant
to Section 19(a) of the Securities Exchange Act of 1934 (``Act''),\1\ a
request for extension of its registration as a clearing agency under
Section 17A of the Act for a period of eighteen months.\2\ Notice of
MBS's request for extension of temporary registration appeared in the
Federal Register on November 16, 1994.\3\ This order approves MBS's
request for extension of temporary registration as a clearing agency
through June 30, 1996.
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\1\15 U.S.C. 78s(a) (1988).
\2\Letter from David T. Rusoff, Foley & Lardner, to Ari
Burstein, Attorney, Division of Market Regulation, Commission,
(November 7, 1994).
MBS filed with the Commission an amendment to its Form CA-1
dated August 15, 1994, which was considered in connection with this
extension of MBS's temporary registration.
\3\Securities Exchange Act Release No. 34948 (November 8, 1994),
59 FR 59263.
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On February 2, 1987, the Commission granted the application of MBS
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
issued orders that extended MBS's temporary registration as a clearing
agency with the last order extending MBS's registration through
December 31, 1994.\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 (order granting MBS registration as a clearing agency for
a period not to exceed eighteen months).
\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; 29751 (September 27, 1991), 56 FR 50602;
31750 (January 21, 1993), 58 FR 6424; and 33348 (December 15, 1993),
58 FR 68183.
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Since the last order extending MBS's temporary registration, the
Chicago Stock Exchange, MBS's parent corporation, sold their entire
interest in MBS to MBS participants and the National Securities
Clearing Corporation (``NSCC''). The Commission issued a no-action
letter to MBS in connection with the sale stating that the new MBS that
resulted after the sale can rely upon MBS's current clearing agency
registration.\8\ The amended Form CA-1 considered in connection with
this extension of temporary registration corrected any information that
became inaccurate or incomplete as a result of MBS's sale.
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\8\Letter from Jerry W. Carpenter, Assistant Director, Division
of Market Regulation, Commission, to J. Craig Long, Foley & Lardner
(August 5, 1994).
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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. In
addition, MBS has made significant progress towards implementation of a
fully operational off-site backup system. Specifically, MBS recently
entered into a facilities management agreement with the Securities
Industry Automation Corporation (``SIAC'') to provide, among other
things, data processing support for MBS. The conversion to SIAC is
intended to facilitate the establishment of a fully operational off-
site backup system.
MBS has functioned effectively as a registered clearing agency for
over seven years. Accordingly, in light of the past performance of MBS
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
registration through June 30, 1996. Any comments received concerning
MBS's amended application 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.\9\
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\9\15 U.S.C. 78q-1(b) (1988).
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It is therefore ordered, That MBS's registration as a clearing
agency be and hereby is approved on a temporary basis through June 30,
1996.
For the Commission, by the Division of Market Regulation
pursuant to delegated authority.\10\
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\10\17 CFR 200.30-3(a)(50) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-32155 Filed 12-29-94; 8:45 am]
BILLING CODE 8010-01-M