Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Order Approving an Extension of Temporary Registration as a Clearing Agency, 38193 [E6-10433]

Download as PDF Federal Register / Vol. 71, No. 128 / Wednesday, July 5, 2006 / Notices Issued June 28, 2006. By the Commission. Steven W. Williams, Secretary. [FR Doc. E6–10439 Filed 7–3–06; 8:45 am] BILLING CODE 7710–FW–P SECURITIES AND EXCHANGE COMMISSION [Release 34–54056; 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 28, 2006. rwilkins on PROD1PC63 with NOTICES 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, 2007.1 On May 24, 1988, pursuant to sections 17A(b) and 19(a) of the Act 2 and Rule 17Ab2–1 promulgated thereunder,3 the Commission granted the Government Securities Clearing Corporation (‘‘GSCC’’) registration as a clearing agency on a temporary basis for a period of three years.4 The Commission subsequently extended GSCC’s registration through June 30, 2003.5 On February 2, 1987, pursuant to sections 17A(b) and 19(a) of the Act 6 and Rule 17Ab2–1 promulgated thereunder,7 the Commission granted the MBS Clearing Corporation (‘‘MBSCC’’) registration as a clearing agency on a temporary basis for a period of eighteen months.8 The Commission 1 FICC is the successor to MBS Clearing Corporation and Government Securities Clearing Corporation. 2 15 U.S.C. 78q–1(b) and 78s(a). 3 17 CFR 240.17Ab2–1. 4 Securities Exchange Act Release No. 25740 (May 24, 1988), 53 FR 19639. 5 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. 6 Supra note 2. 7 Supra note 3. 8 Securities Exchange Act Release No. 24046 (February 2, 1987), 52 FR 4218. VerDate Aug<31>2005 19:34 Jul 03, 2006 Jkt 205001 subsequently extended MBSCC’s registration through June 30, 2003.9 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, 2006.11 On June 2, 2006, 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 Recently FICC announced its intention to implement a central counterparty (‘‘CCP’’) service in its Mortgage-Backed Services Division (‘‘MBS Division’’). Pursuant to this service, FICC, acting as the CCP for MBS Division members, would become the new legal counterparty to all original counterparties for eligible mortgagebacked securities transactions. Currently, FICC, through its Government Securities Division, acts as the CCP for its members U.S. Government securities transactions. The Commission therefore is extending FICC’s temporary registration as a clearing agency in order that FICC may continue to provide its users clearing and settlement services as a registered clearing agency. The Commission will consider permanent registration of FICC at a future date 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, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: 9 Securities Exchange Act Release Nos. 25957 (August 2, 1988), 53 FR 39537; 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. 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. 12 Letter from Nikki Poulos, Vice President and General Counsel, FICC (June 2, 2006). PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 38193 Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number 600–23 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, 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 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 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 26, 2006. 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, 2007. For the Commission by the Division of Market Regulation, pursuant to delegated authority.13 Nancy M. Morris, Secretary. [FR Doc. E6–10433 Filed 7–3–06; 8:45 am] BILLING CODE 8010–01–P 13 17 E:\FR\FM\05JYN1.SGM CFR 200.30–3(a)(1506). 05JYN1

Agencies

[Federal Register Volume 71, Number 128 (Wednesday, July 5, 2006)]
[Notices]
[Page 38193]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-10433]


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SECURITIES AND EXCHANGE COMMISSION

[Release 34-54056; 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 28, 2006.
    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, 
2007.\1\
---------------------------------------------------------------------------

    \1\ FICC is the successor to MBS Clearing Corporation and 
Government Securities Clearing Corporation.
---------------------------------------------------------------------------

    On May 24, 1988, pursuant to sections 17A(b) and 19(a) of the Act 
\2\ and Rule 17Ab2-1 promulgated thereunder,\3\ the Commission granted 
the Government Securities Clearing Corporation (``GSCC'') registration 
as a clearing agency on a temporary basis for a period of three 
years.\4\ The Commission subsequently extended GSCC's registration 
through June 30, 2003.\5\
---------------------------------------------------------------------------

    \2\ 15 U.S.C. 78q-1(b) and 78s(a).
    \3\ 17 CFR 240.17Ab2-1.
    \4\ Securities Exchange Act Release No. 25740 (May 24, 1988), 53 
FR 19639.
    \5\ 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.
---------------------------------------------------------------------------

    On February 2, 1987, pursuant to sections 17A(b) and 19(a) of the 
Act \6\ and Rule 17Ab2-1 promulgated thereunder,\7\ the Commission 
granted the MBS Clearing Corporation (``MBSCC'') registration as a 
clearing agency on a temporary basis for a period of eighteen 
months.\8\ The Commission subsequently extended MBSCC's registration 
through June 30, 2003.\9\
---------------------------------------------------------------------------

    \6\ Supra note 2.
    \7\ Supra note 3.
    \8\ Securities Exchange Act Release No. 24046 (February 2, 
1987), 52 FR 4218.
    \9\ Securities Exchange Act Release Nos. 25957 (August 2, 1988), 
53 FR 39537; 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.
---------------------------------------------------------------------------

    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, 2006.\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.
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    On June 2, 2006, 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\
---------------------------------------------------------------------------

    \12\ Letter from Nikki Poulos, Vice President and General 
Counsel, FICC (June 2, 2006).
---------------------------------------------------------------------------

    Recently FICC announced its intention to implement a central 
counterparty (``CCP'') service in its Mortgage-Backed Services Division 
(``MBS Division''). Pursuant to this service, FICC, acting as the CCP 
for MBS Division members, would become the new legal counterparty to 
all original counterparties 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.
    The Commission therefore is extending FICC's temporary registration 
as a clearing agency in order that FICC may continue to provide its 
users clearing and settlement services as a registered clearing agency. 
The Commission will consider permanent registration of FICC at a future 
date 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, including whether the proposed rule 
change is consistent with the Act. 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 Nancy M. Morris, 
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 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 
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 26, 2006.
    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, 2007.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(1506).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-10433 Filed 7-3-06; 8:45 am]
BILLING CODE 8010-01-P