
[Federal Register: July 7, 2009 (Volume 74, Number 128)]
[Notices]               
[Page 32198-32199]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07jy09-101]                         

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60189; 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 29, 2009.
    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'')

[[Page 32199]]

temporary registration as a clearing agency through June 30, 2010.\1\
---------------------------------------------------------------------------

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

    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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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, 2009.\11\
---------------------------------------------------------------------------

    \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; and 57949 (June 11, 2008), 73 FR 34808.
---------------------------------------------------------------------------

    On May 7, 2009, 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, Managing Director and General 
Counsel, FICC (May 7, 2009).
---------------------------------------------------------------------------

    In April 2006, FICC announced its plan to have its Mortgage-Backed 
Securities Division (``MBS Division'') act as a central counterparty 
(``CCP'').\13\ As such, 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 acts as the CCP for its Government Securities Division 
members' eligible U.S. Government securities transactions but does not 
act as the CCP for its MBS Division members' eligible mortgage-backed 
securities transactions.
---------------------------------------------------------------------------

    \13\ FICC White Paper: ``A Central Counterparty For Mortgage-
Backed Securities: Paving The Way'' at http://www.dtcc.com/
downloads/leadership/whitepapers/ccp.pdf.
---------------------------------------------------------------------------

    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 its 
users. The Commission will consider permanent registration of FICC at a 
future date after the Commission and FICC have had the opportunity 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 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 inspection and copying 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 28, 2009.
    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, 2010.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(16).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-15902 Filed 7-6-09; 8:45 am]

BILLING CODE 8010-01-P
