Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Approving Proposed Rule Change to MSRB Rule G-14 RTRS Procedures Relating to “List Offering Price” and “Takedown” Transactions, 62141-62142 [E6-17668]

Download as PDF Federal Register / Vol. 71, No. 204 / Monday, October 23, 2006 / Notices connection with the investment by the Fund of Funds in the Other Group Fund made at the direction of the Subadviser. In the event that the Subadviser waives fees, the benefit of the waiver will be passed through to the Fund of Funds. 11. With respect to Registered Separate Accounts that invest in a Fund of Funds, no sales load will be charged at the Fund of Funds level or at the Underlying Fund level. Other sales charges and services fees, as defined in Rule 2830, if any, will only be charged at the Fund of Funds level or at the Underlying Fund level, but not both. With respect to other investments in a Fund of Funds, any sales charges and/ or service fees will not exceed the limits applicable to a fund of funds as set forth in Rule 2830. 12. No Underlying Fund will acquire securities of any investment company or company relying on section 3(c)(1) or 3(c)(7) of the Act in excess of the limits contained in section 12(d)(1)(A) of the Act except to the extent the Underlying Fund (a) receives securities of another investment company as a dividend or as a result of a plan of reorganization of a company (other than a plan devised for the purpose of evading section 12(d)(1) of the Act); or (b) acquires (or is deemed to have acquired) securities of another investment company pursuant to exemptive relief from the Commission permitting the Underlying Fund to (i) acquire securities of one or more affiliated investment companies for short-term cash management purposes; or (ii) engage in interfund borrowing or lending transactions. For the Commission, by the Division of Investment Management, under delegated authority. Nancy M. Morris, Secretary. [FR Doc. E6–17619 Filed 10–20–06; 8:45 am] staff members who have an interest in the matters may also be present. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), (8), (9)(B) and (10) and 17 CFR 200.402(a) (3), (5), (7), (8), (9)(ii), and (10) permit consideration of the scheduled matters at the Closed Meeting. Commissioner Nazareth, as duty officer, voted to consider the items listed for the closed meeting in closed session. The subject matters of the Closed Meeting scheduled for Thursday, October 26, 2006 will be: Formal orders of investigation; Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings of an enforcement nature; Other matters relating to enforcement proceeding; Collection matter; Regulatory matter regarding a financial institution; and Adjudicatory matters. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. Dated: October 19, 2006. J. Lynn Taylor, Assistant Secretary. [FR Doc. 06–8861 Filed 10–19–06; 3:59 pm] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION BILLING CODE 8011–01–P [Release No. 34–54612, File No. SR–MSRB– 2006–07] SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Approving Proposed Rule Change to MSRB Rule G–14 RTRS Procedures Relating to ‘‘List Offering Price’’ and ‘‘Takedown’’ Transactions mstockstill on PROD1PC76 with NOTICES Sunshine Act Meeting Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold the following meeting during the week of October 23, 2006: A Closed Meeting will be held on Thursday, October 26, 2006 at 10 a.m. Commissioners, Counsels to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain VerDate Aug<31>2005 15:50 Oct 20, 2006 Jkt 211001 October 17, 2006. On August 15, 2006, the Municipal Securities Rulemaking Board (‘‘MSRB’’ or ‘‘Board’’), filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 1 15 PO 00000 U.S.C. 78s(b)(1). Frm 00062 Fmt 4703 Sfmt 4703 62141 thereunder,2 a proposed rule change to Rule G–14 RTRS Procedures under Rule G–14, Reports of Sales or Purchases, to expand the usage of ‘‘list offering price’’ transactions to include certain interdealer ‘‘takedown’’ transactions and to require the reporting of these transactions as ‘‘list offering price’’ transactions on the first day of trading of a new issue. The MSRB proposed an effective date for the proposed rule change of January 8, 2007. The proposed rule change was published for comment in the Federal Register on September 14, 2006.3 The Commission received no comment letters regarding the proposal. The proposed rule change retains the end of the day exception from the normal fifteen minute reporting deadline for the expanded category of ‘‘List Offering Price/Takedown’’ transactions. The MSRB believes that the proposed rule change recognizes the similarities between List Offering Price and Takedown transactions and the dissimilarities between these transactions and secondary market transactions in a new issue, and further believes that transparency reports on the first day of trading for a new issue would be more useful if List Offering Price and Takedown transactions were identified with a special condition indicator. The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to the MSRB 4 and, in particular, the requirements of Section 15B(b)(2)(C) of the Act 5 and the rules and regulations thereunder. Section 15B(b)(2)(C) of the Act requires, among other things, that the MSRB’s rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in municipal securities, to remove impediments to and perfect the mechanism of a free and open market in municipal securities, and, in general, to protect investors and the public interest.6 In particular, the Commission finds that the proposed rule change will allow the municipal 2 17 CFR 240.19b–4. Securities Exchange Act Release No. 54416 (September 8, 2006), 71 FR 54323 (September 14, 2006). 4 4 In approving this rule the Commission notes that it has considered the proposed rule’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). 5 15 U.S.C. 78o–4(b)(2)(C). 6 Id. 3 See E:\FR\FM\23OCN1.SGM 23OCN1 62142 Federal Register / Vol. 71, No. 204 / Monday, October 23, 2006 / Notices securities industry to produce more accurate trade reporting and transparency and will enhance surveillance data used by enforcement agencies. The proposal will be effective on January 8, 2007, as requested by the MSRB. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–MSRB–2006– 07) be, and hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Nancy M. Morris, Secretary. [FR Doc. E6–17668 Filed 10–20–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54610; File No. SR–NYSE– 2006–84] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Pilot To Put Into Operation Certain Rule Changes Pending Before the Securities and Exchange Commission to Coincide With the Exchange’s Implementation of Phase 3 of the NYSE HYBRID MARKETSM October 16, 2006. mstockstill on PROD1PC76 with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on October 13, 2006, the New York Stock Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. NYSE filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 7 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 8 17 VerDate Aug<31>2005 15:50 Oct 20, 2006 Jkt 211001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NYSE proposes to make a technical amendment to Rule 104.10(6)(P3) which was part of the pilot (‘‘Pilot’’) 5 to put into operation certain rule changes pending before the Commission to coincide with the Exchange’s implementation of Phase 3 of the NYSE HYBRID MARKETSM (‘‘Hybrid Market’’).6 The Exchange further proposes to add a security to those operating under the Pilot that are identified in Exhibit 3 of the Pilot filing. The text of the proposed rule change is available on the Exchange’s Web site (www.nyse.com), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose On October 5, 2006, the Exchange proposed a Pilot to, among other things, make operative certain proposed modifications to Exchange Rules that are the subject of pending rule filings 7 before the Commission to coincide with the Exchange’s implementation of Phase 3 of the Hybrid Market. The Pilot commenced following Commission 5 See Securities Exchange Act Release No. 54578 (October 5, 2006), 71 FR 60216 (October 12, 2006). 6 See Securities Exchange Act Release No. 53539 (March 22, 2006), 71 FR 16353 (March 31, 2006). 7 See Securities Exchange Act Release Nos. 54504 (September 26, 2006), 71 FR 57011 (September 28, 2006) (proposing to amend the specialist stabilization requirements set forth in Exchange Rule 104.10) (‘‘Stabilization Filing’’); 54520 (September 27, 2006), 71 FR 57590 (September 29, 2006) (proposing to amend several Exchange Rules to clarify certain definitions and systemic processes) (‘‘Omnibus Filing’’); and SR–NYSE– 2006–73 (filed on September 13, 2006) (proposing to amend Exchange Rule 127 which governs the execution of a block cross transaction at a price outside the prevailing NYSE quotation) (‘‘Block Cross Filing’’). PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 approval, on October 5, 2006 and is scheduled to terminate at the close of business on October 31, 2006. Through this filing the Exchange seeks to make a technical amendment to Rule 104.10(6)(P3). Specifically, pursuant to the Pilot, in order to eliminate possible confusion as to which Exchange Rules or sections apply to the securities operating pursuant to the Pilot (‘‘Pilot securities’’),8 the Exchange identified the rules operational during the Pilot with a ‘‘P3.’’ A typographical error identified subparagraph (iv) under Exchange Rule 104.10(6)(P3) with a ‘‘P4.’’ As a result, that subparagraph currently appears as follows: (iv)(P4) Re-entry Obligations for Conditional Transactions: The Exchange seeks to delete the number ‘‘4’’ after the letter ‘‘P’’ and replace it with the number ‘‘3’’ in order accurately reflect that subparagraph’s inclusion in the Pilot. The Exchange further seeks to add a security to the Pilot securities. The Exchange identified the specific securities included in the Pilot securities in the form of an Exhibit 3 to the Pilot filing. Included in the Pilot securities was Agilent Technologies, Inc. which is traded on the Exchange under the stock symbol ‘‘A.’’ On or about October 16, 2006, Agilent will distribute the results of a spin-off. Anyone who purchases the stock after the distribution date would not be entitled to the distribution. Accordingly, on Monday, October 16, 2006, Agilent stock in an ‘‘ex-distibution’’ form will begin trading on the Exchange under the stock symbol ‘‘A.WD.’’ A.WD will trade at the same post and panel as Agilent. Given the relationship between Agilent and A.WD stock, the Exchange requests to have A.WD included in the Pilot securities. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 9 in general, and furthers the objectives of Section 6(b)(5) of the Act 10 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Exchange believes that the proposed rule change is also designed to support the principles of 8 Phase 3 Pilot Securities are also posted on the Exchange’s Web site. 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). E:\FR\FM\23OCN1.SGM 23OCN1

Agencies

[Federal Register Volume 71, Number 204 (Monday, October 23, 2006)]
[Notices]
[Pages 62141-62142]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-17668]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54612, File No. SR-MSRB-2006-07]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Order Approving Proposed Rule Change to MSRB Rule G-14 RTRS 
Procedures Relating to ``List Offering Price'' and ``Takedown'' 
Transactions

October 17, 2006.
    On August 15, 2006, the Municipal Securities Rulemaking Board 
(``MSRB'' or ``Board''), filed with the Securities and Exchange 
Commission (``SEC'' or ``Commission''), pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to Rule G-14 RTRS Procedures 
under Rule G-14, Reports of Sales or Purchases, to expand the usage of 
``list offering price'' transactions to include certain inter-dealer 
``takedown'' transactions and to require the reporting of these 
transactions as ``list offering price'' transactions on the first day 
of trading of a new issue. The MSRB proposed an effective date for the 
proposed rule change of January 8, 2007. The proposed rule change was 
published for comment in the Federal Register on September 14, 2006.\3\ 
The Commission received no comment letters regarding the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 54416 (September 8, 
2006), 71 FR 54323 (September 14, 2006).
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    The proposed rule change retains the end of the day exception from 
the normal fifteen minute reporting deadline for the expanded category 
of ``List Offering Price/Takedown'' transactions. The MSRB believes 
that the proposed rule change recognizes the similarities between List 
Offering Price and Takedown transactions and the dissimilarities 
between these transactions and secondary market transactions in a new 
issue, and further believes that transparency reports on the first day 
of trading for a new issue would be more useful if List Offering Price 
and Takedown transactions were identified with a special condition 
indicator.
    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to the MSRB \4\ and, in particular, the 
requirements of Section 15B(b)(2)(C) of the Act \5\ and the rules and 
regulations thereunder. Section 15B(b)(2)(C) of the Act requires, among 
other things, that the MSRB's rules be designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in municipal 
securities, to remove impediments to and perfect the mechanism of a 
free and open market in municipal securities, and, in general, to 
protect investors and the public interest.\6\ In particular, the 
Commission finds that the proposed rule change will allow the municipal

[[Page 62142]]

securities industry to produce more accurate trade reporting and 
transparency and will enhance surveillance data used by enforcement 
agencies. The proposal will be effective on January 8, 2007, as 
requested by the MSRB.
---------------------------------------------------------------------------

    \4\ 4 In approving this rule the Commission notes that it has 
considered the proposed rule's impact on efficiency, competition and 
capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78o-4(b)(2)(C).
    \6\ Id.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-MSRB-2006-07) be, and hereby 
is, approved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-17668 Filed 10-20-06; 8:45 am]
BILLING CODE 8011-01-P