Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing of Proposed Rule Change Relating to Amendments to Rule G-40 on E-Mail Contacts, 63633-63635 [E7-21981]
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Federal Register / Vol. 72, No. 217 / Friday, November 9, 2007 / Notices
including through the use of automated
collection techniques or other forms of
information technology. Consideration
will be given to comments and
suggestions submitted in writing within
60 days of this publication.
Please direct your written comments
to R. Corey Booth, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Shirley
Martinson 6432 General Green Way,
Alexandria, Virginia 22312; or send an
e-mail to: PRA_Mailbox@sec.gov.
Dated: November 5, 2007.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–22006 Filed 11–8–07; 8:45 am]
BILLING CODE 8011–01–P
[File No. 500–1]
In the Matter of Ames Department
Stores, Inc., Bradlees, Inc., Caldor
Corp., and Stuarts Department Stores,
Inc.; Order of Suspension of Trading
mstockstill on PROD1PC66 with NOTICES
November 7, 2007.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Ames
Department Stores, Inc. because it has
not filed any periodic reports since it
filed a Form 10–Q for the period ended
May 4, 2002.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Bradlees,
Inc. because it has not filed any periodic
reports since it filed a Form 10–Q for
the period ended October 28, 2000.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Caldor
Corp. because it has not filed any
periodic reports since it filed a Form
10–Q for the period ended October 31,
1998.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Stuarts
Department Stores, Inc. because it has
not filed any periodic reports since it
filed a Form 10–Q for the period ended
October 28, 1995.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
23:48 Nov 08, 2007
Jkt 214001
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. 07–5625 Filed 11–7–07; 11:20 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56736; File No. SR–MSRB–
2007–04]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing of Proposed
Rule Change Relating to Amendments
to Rule G–40 on E-Mail Contacts
SECURITIES AND EXCHANGE
COMMISSION
VerDate Aug<31>2005
Act of 1934, that trading in the abovelisted companies is suspended for the
period from 9:30 a.m. EST on November
7, 2007, through 11:59 p.m. EST on
November 20, 2007.
November 2, 2007.
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
16, 2007, the Municipal Securities
Rulemaking Board (‘‘MSRB’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially prepared by the
MSRB. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The MSRB is filing with the
Commission a proposed rule change
consisting of amendments to Rule G–40,
on electronic mail contacts, that would
more fully conform MSRB requirements
to Financial Industry Regulatory
Authority (‘‘FINRA’’) requirements
relating to contact information. The
MSRB proposes that the amendments
become effective on December 31, 2007
to coincide with the effective date of
recently-approved FINRA
requirements.3 The text of the proposed
rule change is available on the MSRB’s
Web site (https://www.msrb.org), at the
MSRB’s principal office, and at the
Commission’s Public Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Securities Exchange Act Release No. 56179
(August 1, 2007), 72 FR 44203 (August 7, 2007)
(SR–NASD–2007–034).
2 17
PO 00000
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Fmt 4703
Sfmt 4703
63633
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
MSRB 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 MSRB 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
In 2002, the MSRB adopted Rule G–
40, on e-mail contacts, to establish a
reliable method for electronic
communication with brokers, dealers
and municipal securities dealers
(collectively, ‘‘dealers’’).4 The rule
requires, among other things, that
dealers use Form G–40 to appoint a
‘‘Primary Contact’’ for purposes of
electronic communication between the
dealer and the MSRB. The Primary
Contact must be either a Series 53registered municipal securities principal
or a Series 51-registered municipal fund
securities limited principal.5 Dealers are
required to submit their original forms
and any subsequent changes
electronically through their electronic
G–40 account using the appropriate user
ID and password. The rule also requires
that each dealer maintain an Internet
electronic mail account to permit
communication with the MSRB, and to
review and, if necessary, update its
Primary Contact information within 17
business days after the end of each
calendar quarter.
4 In adopting the rule, the MSRB stated that the
events of September 11, 2001 and the weeks that
followed, emphasized the importance of, and need
for an efficient and reliable means of official
communication between regulators and the
industry, and that establishing a reliable method for
electronic communication was necessary to allow
the MSRB to efficiently alert dealers to official
communications, including time-sensitive
developments, rule changes, notices, etc., as well as
to facilitate dealers’ internal distribution of such
information. The MSRB also noted that it had
discontinued publication of MSRB Reports in 2002
(since that time, all MSRB notices have been
available exclusively on the MSRB Web site at
https://www.msrb.org.). The rule was approved in
Securities Exchange Act Release No. 46043 (June 6,
2002), 67 FR 40762 (June 13, 2002) (SR–MSRB
2002–05).
5 Dealers may also appoint an ‘‘Optional Contact’’
and this person does not have to be a registered
principal.
E:\FR\FM\09NON1.SGM
09NON1
63634
Federal Register / Vol. 72, No. 217 / Friday, November 9, 2007 / Notices
Rule G–40 was based on similar
NASD (now FINRA) requirements.6 The
MSRB attempts, whenever possible, to
adopt rule provisions and language
similar to FINRA rules in order to
facilitate dealer understanding of and
compliance with such provisions, as
well as inspection and enforcement.
The Commission recently approved a
FINRA proposal, which becomes
effective December 31, 2007, that: (i)
Changes the quarterly review/update
requirement to an annual requirement;
(ii) requires firms to update their
required contact information promptly
but not later than 30 days following any
change in such information; and (iii)
requires firms to comply with any
FINRA request for such information
promptly but not later than 15 days
following such request, or such longer
period that may be agreed to by FINRA
staff.7
The MSRB has determined to
similarly amend Rule G–40 to ensure a
coordinated regulatory approach in this
area. Thus, the proposed amendments to
Rule G–40 would require dealers to: (i)
Promptly update any change in the
required information for their Primary
Contact but not later than 30 days
mstockstill on PROD1PC66 with NOTICES
6 Those
NASD requirements (set forth in Article
IV, section 3 of the NASD By-Laws) required
member firms to appoint and certify one ‘‘executive
representative’’ to, among other things, serve as the
official contact person between the firm and NASD;
the executive representative was required to be a
member of the firm’s senior management and a
registered principal of the member, and was
required to maintain an Internet e-mail account for
communication with NASD. In addition, NASD
Rule 1150 (Executive Representative) required each
member firm to review and, if necessary, update its
executive representative information within 17
business days after the end of each calendar quarter.
7 In its filing (File No. SR–NASD–2007–034 and
Amendment No. 1 thereto), NASD proposed to
adopt new Rule 1160 (Firm Contact Information)
regarding the reporting of designated contact
information to NASD and the annual review of such
information. NASD also proposed amendments to,
among other things, Rule 1150 (Executive
Representative) to eliminate the requirement that
members review and update, at the end of each
calendar quarter, the contact information required
by that rule. In its filing, NASD noted that, for many
firms, the designated contact persons seldom
change. Thus, its proposal was designed to
eliminate any unnecessary burden that firms may
incur in conducting quarterly reviews of their
required contact information while at the same time
ensuring that such information is kept current and
provided to NASD promptly upon request. In
approving NASD’s proposal, the Commission noted
that the proposal sets forth a reasonable approach
for member firms to provide and keep current
required contact information, which should reduce
unnecessary burdens on firms by eliminating the
requirement that firms review and update the
contact information on a quarterly basis; instead,
firms would be required to conduct such reviews
on an annual basis as well as to promptly update
the information following any change. See
Securities Exchange Act Release No. 56179 (August
1, 2007), 72 FR 44203 (August 7, 2007) (SR–NASD–
2007–034).
VerDate Aug<31>2005
23:48 Nov 08, 2007
Jkt 214001
following such change; (ii) review and,
if necessary, update required
information on their Primary Contact
within 17 business days after the end of
each calendar year; and (iii) promptly
comply with any request by the
appropriate regulatory agency (as
defined in Section 3(a)(34) of the Act)
for such information but not later than
15 days following such request, or such
longer period that may be agreed to by
the appropriate regulatory agency.
2. Statutory Basis
The MSRB believes that the proposed
rule change is consistent with section
15B(b)(2)(C) of the Act,8 which provides
that the MSRB’s rules shall:
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.
The MSRB believes that the proposed
rule change is consistent with the Act
because substantially conforming Rule
G–40 to comparable FINRA
requirements relating to e-mail contact
information will promote regulatory
consistency by facilitating dealer
compliance with such requirements, as
well as the inspection and enforcement
thereof.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The MSRB does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act since it would
apply equally to all brokers, dealers and
municipal securities dealers.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
8 15
PO 00000
U.S.C. 78o–4(b)(2)(C).
Frm 00088
Fmt 4703
Sfmt 4703
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve such proposed
rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
The MSRB has proposed that the
amendments become effective on
December 31, 2007 to coincide with the
effective date of the recently-approved
FINRA requirements described above.
IV. Solicitation of Comments
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 (https://www.sec.gov/
rules/sro.shtml ); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–MSRB–2007–04 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 SR–MSRB–2007–04. 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 (https://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
Room, 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 the MSRB. All
comments received will be posted
without change; the Commission does
E:\FR\FM\09NON1.SGM
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Federal Register / Vol. 72, No. 217 / Friday, November 9, 2007 / Notices
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 SR–MSRB–2007–04 and should
be submitted on or before November 30,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–21981 Filed 11–8–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change and
Amendment No. 1 Thereto To Modify
Fees for Members Using the Nasdaq
Market Center
November 2, 2007.
mstockstill on PROD1PC66 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
1, 2007, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’), filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II , and III below, which Items
have been substantially prepared by the
Exchange. On October 31, 2007, Nasdaq
filed Amendment No. 1 to the proposed
rule change. The Exchange filed the
proposed rule change pursuant to
section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(2) thereunder,4 which renders
it effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to modify pricing for
Nasdaq members using the Nasdaq
Market Center. Nasdaq will implement
this rule change on October 1, 2007.
The text of the proposed rule change
is available at Nasdaq, the Commission’s
CFR 200.30–3(a)(12).
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)(2).
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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. Nasdaq 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
[Release No. 34–56739; File No. SR–
NASDAQ–2007–082]
9 17
Public Reference Room, and https://
www.nasdaq.complinet.com.
1. Purpose
Effective October 1, 2007, Nasdaq is
implementing a set of pricing changes to
its fees for routing to the New York
Stock Exchange (‘‘NYSE’’) that reflect
recently announced changes to order
execution fees at that venue.5 The
changes are designed to ensure that
Nasdaq’s routing fees generally reflect
the charges that Nasdaq Execution
Services, Nasdaq’s routing broker, will
incur when routing to NYSE, with
minimal markups or markdowns to
reflect the value of Nasdaq’s services as
a high-speed router and to provide
incentives for firms to enter orders that
attempt to execute in Nasdaq for the full
size of the order prior to routing.
Accordingly, Nasdaq’s routing fees are
being decreased in instances where
NYSE has lowered fees, and increased
in instances where NYSE has increased
its fees. Specifically:
• Nasdaq is eliminating the charge to
route orders in securities other than
exchange-traded funds to the NYSE in
instances where the orders add liquidity
on the NYSE, since NYSE is eliminating
charges for such orders.
• Nasdaq is increasing its fees to
route other orders to NYSE, to
approximate NYSE’s increased charge of
$0.0008 per share for orders that remove
liquidity. As is currently true, Nasdaq’s
exact charge varies depending on the
overall volume of the member and the
exact characteristics of the routed order,
but is generally within $0.0001 of
NYSE’s charge. In addition, NYSE caps
its execution fee at $120 per trade,
which translates to a cap on executions
greater than 150,000 shares. Nasdaq
1 15
VerDate Aug<31>2005
23:48 Nov 08, 2007
5 See Securities Exchange Act Release No. 56590
(October 1, 2007), 72 FR 57369 (October 9, 2007)
(SR–NYSE–2007–88).
Jkt 214001
PO 00000
Frm 00089
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63635
does not apply a cap to its routing
charges when sending orders to the
NYSE, because Nasdaq receives
extremely few executions for greater
than 150,000 shares from the NYSE.
Under the revised pricing schedule,
Nasdaq will charge:
Æ $0.00075 or $0.0008 per share
executed for orders that attempt to
execute in Nasdaq for the full size of the
order before being routed, depending on
whether the order is eligible to post
liquidity in Nasdaq or is designated
only to remove liquidity before routing;
Æ $0.0009 per share executed for
Directed Intermarket Sweep Orders and
orders that attempt to execute solely
against displayed interest in Nasdaq
before routing; and
Æ A variable charge of $0.0008 to
$0.0009 for orders that do not attempt
to execute in Nasdaq before routing. For
members with an average daily volume
in all securities during the month of
more than 35 million shares of liquidity
provided, the charge will be $0.0008; for
members with an average daily volume
of more than 60 million shares of
liquidity routed to NYSE without
attempting to execute in Nasdaq (other
than Directed Intermarket Sweep
Orders), the charge will be $0.000825;
for members with an average daily
volume in all securities of more than 20
million shares of liquidity provided, the
charge will be $0.00085; and for other
members, the charge will be $0.0009.
Æ A fee of $0.0004 per share executed
for an order that executes in the NYSE
opening or closing process as an ‘‘at the
opening’’, ‘‘at the opening only’’,
‘‘market-at-the-close’’, or ‘‘limit-at-theclose’’ order. Such orders receive a
‘‘blended execution’’ rate at NYSE,
reflecting the average between the
$0.0008 charge to take liquidity and the
$0 charge to add liquidity. Nasdaq will
pass this charge through directly.
In addition to the foregoing changes,
Nasdaq is also modifying fees for
routing orders to venues other than
NYSE and the American Stock
Exchange (‘‘Amex’’) in circumstances
where the orders do not attempt to
execute in Nasdaq for the full size of the
order prior to routing. Currently, Nasdaq
charges $0.0035 per share for valueadded orders that attempt to execute
only against displayed size or that are
designated as Directed Intermarket
Sweep Order, and a slightly discounted
fee of $0.003 per share for other orders
that do not check Nasdaq. Although
Nasdaq is retaining the discounted fee
for orders routed to Amex and for orders
in exchange-traded funds (‘‘ETFs’’)
routed to NYSE, Nasdaq adopted the
higher fee for orders routed to other
venues. Nasdaq believes that retaining
E:\FR\FM\09NON1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 217 (Friday, November 9, 2007)]
[Notices]
[Pages 63633-63635]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21981]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56736; File No. SR-MSRB-2007-04]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing of Proposed Rule Change Relating to Amendments
to Rule G-40 on E-Mail Contacts
November 2, 2007.
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 16, 2007, the Municipal Securities Rulemaking Board
(``MSRB'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the
MSRB. The Commission is publishing this notice to solicit comments on
the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The MSRB is filing with the Commission a proposed rule change
consisting of amendments to Rule G-40, on electronic mail contacts,
that would more fully conform MSRB requirements to Financial Industry
Regulatory Authority (``FINRA'') requirements relating to contact
information. The MSRB proposes that the amendments become effective on
December 31, 2007 to coincide with the effective date of recently-
approved FINRA requirements.\3\ The text of the proposed rule change is
available on the MSRB's Web site (https://www.msrb.org), at the MSRB's
principal office, and at the Commission's Public Reference Room.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 56179 (August 1, 2007),
72 FR 44203 (August 7, 2007) (SR-NASD-2007-034).
---------------------------------------------------------------------------
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 MSRB 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 MSRB 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
In 2002, the MSRB adopted Rule G-40, on e-mail contacts, to
establish a reliable method for electronic communication with brokers,
dealers and municipal securities dealers (collectively,
``dealers'').\4\ The rule requires, among other things, that dealers
use Form G-40 to appoint a ``Primary Contact'' for purposes of
electronic communication between the dealer and the MSRB. The Primary
Contact must be either a Series 53-registered municipal securities
principal or a Series 51-registered municipal fund securities limited
principal.\5\ Dealers are required to submit their original forms and
any subsequent changes electronically through their electronic G-40
account using the appropriate user ID and password. The rule also
requires that each dealer maintain an Internet electronic mail account
to permit communication with the MSRB, and to review and, if necessary,
update its Primary Contact information within 17 business days after
the end of each calendar quarter.
---------------------------------------------------------------------------
\4\ In adopting the rule, the MSRB stated that the events of
September 11, 2001 and the weeks that followed, emphasized the
importance of, and need for an efficient and reliable means of
official communication between regulators and the industry, and that
establishing a reliable method for electronic communication was
necessary to allow the MSRB to efficiently alert dealers to official
communications, including time-sensitive developments, rule changes,
notices, etc., as well as to facilitate dealers' internal
distribution of such information. The MSRB also noted that it had
discontinued publication of MSRB Reports in 2002 (since that time,
all MSRB notices have been available exclusively on the MSRB Web
site at https://www.msrb.org.). The rule was approved in Securities
Exchange Act Release No. 46043 (June 6, 2002), 67 FR 40762 (June 13,
2002) (SR-MSRB 2002-05).
\5\ Dealers may also appoint an ``Optional Contact'' and this
person does not have to be a registered principal.
---------------------------------------------------------------------------
[[Page 63634]]
Rule G-40 was based on similar NASD (now FINRA) requirements.\6\
The MSRB attempts, whenever possible, to adopt rule provisions and
language similar to FINRA rules in order to facilitate dealer
understanding of and compliance with such provisions, as well as
inspection and enforcement.
---------------------------------------------------------------------------
\6\ Those NASD requirements (set forth in Article IV, section 3
of the NASD By-Laws) required member firms to appoint and certify
one ``executive representative'' to, among other things, serve as
the official contact person between the firm and NASD; the executive
representative was required to be a member of the firm's senior
management and a registered principal of the member, and was
required to maintain an Internet e-mail account for communication
with NASD. In addition, NASD Rule 1150 (Executive Representative)
required each member firm to review and, if necessary, update its
executive representative information within 17 business days after
the end of each calendar quarter.
---------------------------------------------------------------------------
The Commission recently approved a FINRA proposal, which becomes
effective December 31, 2007, that: (i) Changes the quarterly review/
update requirement to an annual requirement; (ii) requires firms to
update their required contact information promptly but not later than
30 days following any change in such information; and (iii) requires
firms to comply with any FINRA request for such information promptly
but not later than 15 days following such request, or such longer
period that may be agreed to by FINRA staff.\7\
---------------------------------------------------------------------------
\7\ In its filing (File No. SR-NASD-2007-034 and Amendment No. 1
thereto), NASD proposed to adopt new Rule 1160 (Firm Contact
Information) regarding the reporting of designated contact
information to NASD and the annual review of such information. NASD
also proposed amendments to, among other things, Rule 1150
(Executive Representative) to eliminate the requirement that members
review and update, at the end of each calendar quarter, the contact
information required by that rule. In its filing, NASD noted that,
for many firms, the designated contact persons seldom change. Thus,
its proposal was designed to eliminate any unnecessary burden that
firms may incur in conducting quarterly reviews of their required
contact information while at the same time ensuring that such
information is kept current and provided to NASD promptly upon
request. In approving NASD's proposal, the Commission noted that the
proposal sets forth a reasonable approach for member firms to
provide and keep current required contact information, which should
reduce unnecessary burdens on firms by eliminating the requirement
that firms review and update the contact information on a quarterly
basis; instead, firms would be required to conduct such reviews on
an annual basis as well as to promptly update the information
following any change. See Securities Exchange Act Release No. 56179
(August 1, 2007), 72 FR 44203 (August 7, 2007) (SR-NASD-2007-034).
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The MSRB has determined to similarly amend Rule G-40 to ensure a
coordinated regulatory approach in this area. Thus, the proposed
amendments to Rule G-40 would require dealers to: (i) Promptly update
any change in the required information for their Primary Contact but
not later than 30 days following such change; (ii) review and, if
necessary, update required information on their Primary Contact within
17 business days after the end of each calendar year; and (iii)
promptly comply with any request by the appropriate regulatory agency
(as defined in Section 3(a)(34) of the Act) for such information but
not later than 15 days following such request, or such longer period
that may be agreed to by the appropriate regulatory agency.
2. Statutory Basis
The MSRB believes that the proposed rule change is consistent with
section 15B(b)(2)(C) of the Act,\8\ which provides that the MSRB's
rules shall:
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\8\ 15 U.S.C. 78o-4(b)(2)(C).
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
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the public interest.
The MSRB believes that the proposed rule change is consistent with the
Act because substantially conforming Rule G-40 to comparable FINRA
requirements relating to e-mail contact information will promote
regulatory consistency by facilitating dealer compliance with such
requirements, as well as the inspection and enforcement thereof.
B. Self-Regulatory Organization's Statement on Burden on Competition
The MSRB does not believe that the proposed rule change will impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act since it would apply equally to
all brokers, dealers and municipal securities dealers.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
A. By order approve such proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be disapproved.
The MSRB has proposed that the amendments become effective on
December 31, 2007 to coincide with the effective date of the recently-
approved FINRA requirements described above.
IV. Solicitation of Comments
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 (https://
www.sec.gov/rules/sro.shtml ); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-MSRB-2007-04 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 SR-MSRB-2007-04. 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 (https://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 Room, 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 the MSRB. All comments received will
be posted without change; the Commission does
[[Page 63635]]
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 SR-MSRB-2007-04 and should be
submitted on or before November 30, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-21981 Filed 11-8-07; 8:45 am]
BILLING CODE 8011-01-P
