Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Granting Approval of Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to Rule G-8, Books and Records, Rule G-9, Preservation of Records, and Rule G-34, CUSIP Numbers and New Issue Requirements, To Improve Transaction Reporting of New Issues, 25815-25816 [E8-10024]

Download as PDF Federal Register / Vol. 73, No. 89 / Wednesday, May 7, 2008 / Notices necessary or appropriate in furtherance of the purposes of the Act. sroberts on PROD1PC70 with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received from Members, Participants or Others No written comments were solicited or received with respect to the proposed rule change. you wish to make available publicly. All submissions should refer to File Number SR–CBOE–2008–44 and should be submitted on or before May 28, 2008. IV. Commission’s Findings and Order Granting Accelerated Approval of the Proposed Rule Change After careful consideration, the Commission finds that the proposed rule change is consistent with the III. Solicitation of Comments requirements of the Act and the rules Interested persons are invited to and regulations thereunder applicable to submit written data, views, and a national securities exchange.9 In arguments concerning the foregoing, particular, the Commission finds that including whether the proposed rule the proposed rule change is consistent change is consistent with the Act. with section 6(b)(5) of the Act,10 which Comments may be submitted by any of requires that the rules of an exchange be the following methods: designed, among other things, to Electronic Comments prevent fraudulent and manipulative acts and practices, to promote just and • Use the Commission’s Internet equitable principles of trade, to remove comment form (http://www.sec.gov/ impediments to and perfect the rules/sro.shtml); or mechanism of a free and open market • Send an e-mail to ruleand a national market system, and, in comments@sec.gov. Please include File general, to protect investors and the Number SR–CBOE–2008–44 on the public interest. subject line. The Commission finds good cause for Paper Comments approving this proposal before the 30th • Send paper comments in triplicate day after the publication of notice to Nancy M. Morris, Secretary, thereof in the Federal Register. The Securities and Exchange Commission, proposal seeks to clarify that the 100 F Street, NE., Washington, DC Exchange’s listing and trading of ELTNs 20549–1090. is subject to Rule 19b–4(e) under the All submissions should refer to File Act. Therefore, the Commission does Number SR–CBOE–2008–44. This file not believe that the Exchange’s proposal number should be included on the raises any novel regulatory issues. The subject line if e-mail is used. To help the Commission believes that accelerating Commission process and review your approval of this proposal would ensure comments more efficiently, please use that the Exchange’s rules clearly reflect only one method. The Commission will the standards for listing and trading of post all comments on the Commission’s ELTNs and conform the rules to those Internet Web site (http://www.sec.gov/ of other Exchanges without undue rules/sro.shtml). Copies of the delay.11 submission, all subsequent V. Conclusion amendments, all written statements with respect to the proposed rule It is therefore ordered, pursuant to change that are filed with the section 19(b)(2) of the Act,12 that the Commission, and all written proposed rule change, as amended (SR– communications relating to the CBOE–2008–44), be, and it hereby is, proposed rule change between the Commission and any person, other than approved on an accelerated basis. For the Commission, by the Division of those that may be withheld from the Trading and Markets, pursuant to delegated public in accordance with the authority.13 provisions of 5 U.S.C. 552, will be Florence E. Harmon, available for inspection and copying in Deputy Secretary. the Commission’s Public Reference Room, 100 F Street, NE., Washington, [FR Doc. E8–10071 Filed 5–6–08; 8:45 am] DC 20549, on official business days BILLING CODE 8010–01–P between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available 9 In approving this rule change, the Commission notes that it has considered the proposed rule’s for inspection and copying at the impact on efficiency, competition, and capital principal office of the Exchange. All formation. See 15 U.S.C. 78c(f). comments received will be posted 10 15 U.S.C. 78f(b)(5). without change; the Commission does 11 See e.g., International Securities Exchange Rule not edit personal identifying 2130 and NYSE Arca Rule 5.2(j)(2). 12 15 U.S.C. 78s(b)(2). information from submissions. You 13 17 CFR 200.30–3(a)(12). should submit only information that VerDate Aug<31>2005 21:00 May 06, 2008 Jkt 214001 PO 00000 Frm 00175 Fmt 4703 Sfmt 4703 25815 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57750, File No. SR–MSRB– 2007–08] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Granting Approval of Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to Rule G–8, Books and Records, Rule G– 9, Preservation of Records, and Rule G–34, CUSIP Numbers and New Issue Requirements, To Improve Transaction Reporting of New Issues May 1, 2008. On November 27, 2007, the Municipal Securities Rulemaking Board (‘‘MSRB’’), filed with the Securities and Exchange Commission (‘‘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 consisting of an amendment of its Rule G–8, Books and Records, Rule G–9, Preservation of Records, and Rule G–34, CUSIP Numbers and New Issue Requirements. The proposed rule change was published for comment in the Federal Register on January 17, 2008.3 The Commission received two comment letters about the proposed rule change.4 The MSRB also forwarded to the Commission a comment letter about the proposed rule change received by the MSRB.5 On April 22, 2008, the MSRB filed Amendment No. 1 to the proposed rule change.6 This order approves the proposed rule change as modified by Amendment No. 1. The proposed rule change is designed to improve transaction reporting of new issues and would accelerate the timing for CUSIP number assignment and, with the exception of new issues of shortterm instruments with less than nine months in effective maturity, require 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 57131 (January 11, 2008), 73 FR 3295 (January 17, 2008) (‘‘Commission’s Notice’’). 4 See letter from Leslie M. Norwood, Managing Director and Associate General Counsel, Securities Industry and Financial Markets Association (‘‘SIFMA’’), dated March 28, 2008, and letter from Mary Lee Corrigan, Executive Vice President & Chief Financial Officer and Janis C. Brennan, Vice President & Operations Manager, Griffin, Kubik, Stephens & Thompson, Inc. (‘‘GKST’’), dated April 3, 2008. 5 See letter from Michael Decker and Michael Nicholas, Co-Chief Executive Officers, Regional Bond Dealers Association (‘‘RBDA’’), dated April 1, 2008. 6 In Amendment No. 1, the MSRB responded to the three comment letters and, in response to the comment letters, postponed the effective date of the proposed rule change from June 30, 2008 to September 30, 2008. This is a technical amendment and is not subject to notice and comment. 2 17 E:\FR\FM\07MYN1.SGM 07MYN1 sroberts on PROD1PC70 with NOTICES 25816 Federal Register / Vol. 73, No. 89 / Wednesday, May 7, 2008 / Notices underwriters to: (i) Submit certain information about a new issue of municipal securities to Depository Trust and Clearing Corporation’s New Issue Information Dissemination System (‘‘NIIDS’’) within set timeframes; and (ii) set and disseminate a ‘‘Time of First Execution’’ that allows time for market participants to access necessary information in preparation for trade reporting prior to beginning trade executions in the issue. A full description of the proposal is contained in the Commission’s Notice. SIFMA stated in its comment letter that it fully supports increased price transparency in the municipal marketplace and strongly supports the development of the Depository Trust and Clearing Corporation’s New Issue Information Dissemination System. However, SIFMA recommended that the proposal not be effective on June 30, 2008 because firms have not had sufficient time to review and test the system and because current unexpected market issues and issuance volume related to auction-rate securities have significantly increased the time demands on the operations staff at the various firms. GKST also supported increased price transparency and the proposal but believed that if the Depository Trust and Clearing Corporation cannot fix the problems that have already been identified, the cost of complying with the proposed directive will be a severe burden to all firms but relatively more so to smaller firms. The RBDA also supported the development and implementation of the New Issue Information Dissemination System as a way to enhance the overall level of transparency in the municipal market, but did not believe the June 30 deadline offered the market enough time to fully test and implement the system. All three commentators suggested postponing the originally-proposed June 30, 2008 implementation date. In Amendment No. 1, the MSRB postponed the effective date of the proposed rule change from June 30, 2008 to September 30, 2008. The MSRB believes that the new effective date will address commentators concerns and will allow for the additional time necessary for implementation of NIIDS. 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 7 and, in particular, the requirements of Section 7 In approving this proposed rule change, the commission notes that it has considered the proposed rule’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). VerDate Aug<31>2005 21:00 May 06, 2008 Jkt 214001 15B(b)(2)(C) of the Act 8 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.9 In particular, the Commission finds that the proposed rule change is consistent with the Act because it will allow the municipal securities industry to produce more accurate trade reporting and transparency. The proposal will be effective on September 30, 2008, as requested by the MSRB. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,10 that the proposed rule change (SR–MSRB–2007– 08), as modified by Amendment No. 1, be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–10024 Filed 5–6–08; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57746; File No. SR–NYSE– 2008–34] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Exchange Rule 36 (Communication Between Exchange and Exchange Members’ Offices) April 30, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on April 29, 2008, the New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in 8 15 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange seeks to extend its current portable phone pilot (the ‘‘Pilot’’) operating pursuant to Exchange Rule 36 from its scheduled April 30, 2008 expiration date to no later than the approval of SR–NYSE–2008–20 5 or June 30, 2008, the earlier thereof. 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 Exchange 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 The Exchange seeks to extend the Pilot operating pursuant to Exchange Rule 36 from the Pilot’s scheduled April 30, 2008 expiration date to no later than the approval of SR–NYSE–2008–20 or June 30, 2008, the earlier thereof. Pursuant to the Pilot, Floor brokers and Registered Competitive Market Makers (‘‘RCMMs’’) are permitted to use an Exchange authorized and provided portable telephone on the Exchange Floor provided certain conditions are met. Such usage has been permitted on a pilot basis. The current Pilot expires on April 30, 2008. Through the rule filing SR–NYSE–2008–20, the Exchange seeks to have the amendment to Exchange Rule 36 made permanent. U.S.C. 78o–4(b)(2)(C). 9 Id. 3 15 10 15 U.S.C. 78s(b)(2). 11 17 CFR 200.30–3(a)(12). 1 15 U.S.C.78s(b)(1). 2 17 CFR 240.19b–4. PO 00000 Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange 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 proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. Frm 00176 Fmt 4703 Sfmt 4703 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 5 See Securities Exchange Act Release No. 57611 (April 3, 2008), 73 FR 19274 (April 9, 2008). The comment period expires on April 30, 2008. 4 17 E:\FR\FM\07MYN1.SGM 07MYN1

Agencies

[Federal Register Volume 73, Number 89 (Wednesday, May 7, 2008)]
[Notices]
[Pages 25815-25816]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-10024]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57750, File No. SR-MSRB-2007-08]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Order Granting Approval of Proposed Rule Change as Modified by 
Amendment No. 1 Thereto Relating to Rule G-8, Books and Records, Rule 
G-9, Preservation of Records, and Rule G-34, CUSIP Numbers and New 
Issue Requirements, To Improve Transaction Reporting of New Issues

May 1, 2008.
    On November 27, 2007, the Municipal Securities Rulemaking Board 
(``MSRB''), filed with the Securities and Exchange Commission 
(``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 consisting of an amendment of its Rule G-8, Books 
and Records, Rule G-9, Preservation of Records, and Rule G-34, CUSIP 
Numbers and New Issue Requirements. The proposed rule change was 
published for comment in the Federal Register on January 17, 2008.\3\ 
The Commission received two comment letters about the proposed rule 
change.\4\ The MSRB also forwarded to the Commission a comment letter 
about the proposed rule change received by the MSRB.\5\ On April 22, 
2008, the MSRB filed Amendment No. 1 to the proposed rule change.\6\ 
This order approves the proposed rule change as modified by Amendment 
No. 1.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 57131 (January 11, 
2008), 73 FR 3295 (January 17, 2008) (``Commission's Notice'').
    \4\ See letter from Leslie M. Norwood, Managing Director and 
Associate General Counsel, Securities Industry and Financial Markets 
Association (``SIFMA''), dated March 28, 2008, and letter from Mary 
Lee Corrigan, Executive Vice President & Chief Financial Officer and 
Janis C. Brennan, Vice President & Operations Manager, Griffin, 
Kubik, Stephens & Thompson, Inc. (``GKST''), dated April 3, 2008.
    \5\ See letter from Michael Decker and Michael Nicholas, Co-
Chief Executive Officers, Regional Bond Dealers Association 
(``RBDA''), dated April 1, 2008.
    \6\ In Amendment No. 1, the MSRB responded to the three comment 
letters and, in response to the comment letters, postponed the 
effective date of the proposed rule change from June 30, 2008 to 
September 30, 2008. This is a technical amendment and is not subject 
to notice and comment.
---------------------------------------------------------------------------

    The proposed rule change is designed to improve transaction 
reporting of new issues and would accelerate the timing for CUSIP 
number assignment and, with the exception of new issues of short-term 
instruments with less than nine months in effective maturity, require

[[Page 25816]]

underwriters to: (i) Submit certain information about a new issue of 
municipal securities to Depository Trust and Clearing Corporation's New 
Issue Information Dissemination System (``NIIDS'') within set 
timeframes; and (ii) set and disseminate a ``Time of First Execution'' 
that allows time for market participants to access necessary 
information in preparation for trade reporting prior to beginning trade 
executions in the issue. A full description of the proposal is 
contained in the Commission's Notice.
    SIFMA stated in its comment letter that it fully supports increased 
price transparency in the municipal marketplace and strongly supports 
the development of the Depository Trust and Clearing Corporation's New 
Issue Information Dissemination System. However, SIFMA recommended that 
the proposal not be effective on June 30, 2008 because firms have not 
had sufficient time to review and test the system and because current 
unexpected market issues and issuance volume related to auction-rate 
securities have significantly increased the time demands on the 
operations staff at the various firms. GKST also supported increased 
price transparency and the proposal but believed that if the Depository 
Trust and Clearing Corporation cannot fix the problems that have 
already been identified, the cost of complying with the proposed 
directive will be a severe burden to all firms but relatively more so 
to smaller firms. The RBDA also supported the development and 
implementation of the New Issue Information Dissemination System as a 
way to enhance the overall level of transparency in the municipal 
market, but did not believe the June 30 deadline offered the market 
enough time to fully test and implement the system. All three 
commentators suggested postponing the originally-proposed June 30, 2008 
implementation date.
    In Amendment No. 1, the MSRB postponed the effective date of the 
proposed rule change from June 30, 2008 to September 30, 2008. The MSRB 
believes that the new effective date will address commentators concerns 
and will allow for the additional time necessary for implementation of 
NIIDS.
    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 \7\ and, in particular, the 
requirements of Section 15B(b)(2)(C) of the Act \8\ 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.\9\ In particular, the 
Commission finds that the proposed rule change is consistent with the 
Act because it will allow the municipal securities industry to produce 
more accurate trade reporting and transparency. The proposal will be 
effective on September 30, 2008, as requested by the MSRB.
---------------------------------------------------------------------------

    \7\ In approving this proposed rule change, the commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition and capital formation. 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78o-4(b)(2)(C).
    \9\ Id.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-MSRB-2007-08), as modified 
by Amendment No. 1, be, and it hereby is, approved.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. E8-10024 Filed 5-6-08; 8:45 am]
BILLING CODE 8010-01-P