Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Granting Approval of Proposed Rule Change Relating to MSRB Rule G-34, CUSIP Numbers and New Issue Requirements, to Require Underwriter Registration and Testing with Depository Trust and Clearing Corporation's New Issue Information Dissemination System, 37518-37519 [E8-14857]

Download as PDF 37518 Federal Register / Vol. 73, No. 127 / Tuesday, July 1, 2008 / Notices perfect the mechanisms 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 rules applicable to trading pursuant to generic listing and trading criteria, together with the Exchange’s surveillance procedures applicable to trading in the securities covered by the proposed rules, serve to foster investor protection. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange 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. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange states that written comments on the proposed rule change 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 Exchange 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 CBOE has requested accelerated approval of this proposed rule change prior to the 30th day after the date of publication of the notice of the filing thereof. The Commission has determined that a 15-day comment period is appropriate in this case. IV. Solicitation of Comments sroberts on PROD1PC70 with NOTICES 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: Number SR–CBOE–2008–64 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–58016, File No. SR–MSRB– 2008–04] • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Granting Approval of Proposed Rule Change Relating to All submissions should refer to File MSRB Rule G–34, CUSIP Numbers and Number SR–CBOE–2008–64. This file New Issue Requirements, to Require number should be included on the Underwriter Registration and Testing subject line if e-mail is used. To help the with Depository Trust and Clearing Commission process and review your Corporation’s New Issue Information comments more efficiently, please use Dissemination System only one method. The Commission will post all comments on the Commission’s June 25, 2008. On May 9, 2008, the Municipal Internet Web site (http://www.sec.gov/ Securities Rulemaking Board (‘‘MSRB’’), rules/sro.shtml). Copies of the filed with the Securities and Exchange submission, all subsequent Commission (‘‘Commission’’), pursuant amendments, all written statements to Section 19(b)(1) of the Securities with respect to the proposed rule Exchange Act of 1934 (‘‘Act’’),1 and change that are filed with the Rule 19b–4 thereunder,2 a proposed rule Commission, and all written change consisting of changes to Rule G– communications relating to the 34, CUSIP Numbers and New Issue proposed rule change between the Requirements. The proposed rule Commission and any person, other than change was published for comment in those that may be withheld from the the Federal Register on May 22, 2008.3 public in accordance with the The Commission received no comment provisions of 5 U.S.C. 552, will be letters about the proposed rule change. available for inspection and copying in This order approves the proposed rule the Commission’s Public Reference change. The proposed rule change would Room, 100 F Street, NE., Washington, require underwriters to register and DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. conduct tests with the Depository Trust Copies of the filing also will be available and Clearing Corporation’s (‘‘DTCC’’) New Issue Information Dissemination for inspection and copying at the System (‘‘NIIDS’’). The proposed rule principal office of the Exchange. All change would help ensure that dealers comments received will be posted are prepared for the September 30, 2008 without change; the Commission does effective date of changes to other MSRB not edit personal identifying rules to require underwriters to information from submissions. You participate in NIIDS.4 Accordingly, the should submit only information that proposed rule change would require all you wish to make available publicly. All brokers, dealers and municipal submissions should refer to File securities dealers (collectively Number SR–CBOE–2008–64 and should ‘‘dealers’’) that have acted as be submitted on or before July 16, 2008. underwriter 5 in the last year on a new issue of municipal securities with nine For the Commission, by the Division of months or greater effective maturity to Trading and Markets, pursuant to delegated register to use NIIDS with DTCC and authority.8 successfully test NIIDS prior to Florence E. Harmon, September 15, 2008.6 On an ongoing Acting Secretary. [FR Doc. E8–14831 Filed 6–30–08; 8:45 am] BILLING CODE 8010–01–P VerDate Aug<31>2005 21:01 Jun 30, 2008 Jkt 214001 8 17 PO 00000 CFR 200.30–3(a)(12). Frm 00112 Fmt 4703 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 57830 (May 16, 2008), 73 FR 29799 (May 22, 2008) (‘‘Commission’s Notice’’). 4 See Securities Exchange Act Release No. 57750 (May 1, 2008), 73 FR 25815 (May 7, 2008). 5 Rule G–34 defines ‘‘underwriter’’ very broadly to include a dealer acting as a placement agent as well as any dealer purchasing new issue securities from the issuer as principal. If there is an underwriting syndicate, the lead manager is considered to be the ‘‘underwriter’’ for purposes of Rule G–34. 6 Many underwriters have already registered with DTCC and initiated NIIDS testing. The proposed 2 17 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 1 15 Sfmt 4703 E:\FR\FM\01JYN1.SGM 01JYN1 Federal Register / Vol. 73, No. 127 / Tuesday, July 1, 2008 / Notices basis the proposed rule change would require dealers to register to use NIIDS with DTCC and successfully test NIIDS prior to acting as underwriter on a new issue of municipal securities with nine months or greater effective maturity. A full description of the proposal is contained in the Commission’s Notice. 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. It is therefore ordered, pursuant to section 19(b)(2) of the Act,10 that the proposed rule change (SR–MSRB–2008– 04), be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Acting Secretary. [FR Doc. E8–14857 Filed 6–30–08; 8:45 am] sroberts on PROD1PC70 with NOTICES BILLING CODE 8010–01–P rule change would place a deadline on underwriters to register with DTCC and complete NIIDS testing. Underwriters that have already satisfied the requirements of the proposed rule change prior to SEC approval are not required to re-register or retest. 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. 10 15 U.S.C. 78s(b)(2). 11 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 21:01 Jun 30, 2008 Jkt 214001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58017; File No. SR– NASDAQ–2008–056] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding a Clerical Change to a NASDAQ Rule 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 June 19, 2008, the NASDAQ Stock Market LLC (‘‘Nasdaq’’) 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 prepared substantially 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)(3) 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to make a clerical correction to the Nasdaq rulebook. The text of the proposed rule change is available at Nasdaq’s principal office, the Commission’s Public Reference Room, and http://www.complinet.com/ nasdaq. 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. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(2). 2 17 Frm 00113 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Nasdaq proposes to make a clerical correction to the Nasdaq rulebook. Specifically, Nasdaq proposes to renumber Nasdaq Rule 7039 to Nasdaq Rule 7041.5 2. Statutory Basis June 25, 2008. PO 00000 37519 Fmt 4703 Sfmt 4703 Nasdaq believes that the proposed rule change is consistent with the requirements of Section 6(b) of the Act,6 in general, and Section 6(b)(5) of the Act,7 in particular, in that it is 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 securities, 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 proposed rule change makes a minor clerical change to renumber an existing Nasdaq rule. B. Self-Regulatory Organization’s Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. 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 with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change is effective upon filing pursuant to Section 19(b)(3)(A)(ii) of the Act 8 and Rule 19b– 4(f)(3) thereunder,9 because it is 5 Nasdaq is renumbering Nasdaq Rule 7039 to Rule 7041 because Nasdaq has filed other proposed rule changes that necessitate a renumbering of Rule 7039. See e-mail from Jonathan Cayne, Nasdaq, to Joseph Morra, Special Counsel, Division of Trading and Markets, Commission, dated June 20, 2008. Nasdaq is making no changes to Rule 7039, other than to change its number to 7041. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 240.19b–4(f)(2). E:\FR\FM\01JYN1.SGM 01JYN1

Agencies

[Federal Register Volume 73, Number 127 (Tuesday, July 1, 2008)]
[Notices]
[Pages 37518-37519]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-14857]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58016, File No. SR-MSRB-2008-04]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Order Granting Approval of Proposed Rule Change Relating to MSRB 
Rule G-34, CUSIP Numbers and New Issue Requirements, to Require 
Underwriter Registration and Testing with Depository Trust and Clearing 
Corporation's New Issue Information Dissemination System

June 25, 2008.
    On May 9, 2008, 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 changes to Rule G-34, CUSIP Numbers 
and New Issue Requirements. The proposed rule change was published for 
comment in the Federal Register on May 22, 2008.\3\ The Commission 
received no comment letters about the proposed rule change. This order 
approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 57830 (May 16, 
2008), 73 FR 29799 (May 22, 2008) (``Commission's Notice'').
---------------------------------------------------------------------------

    The proposed rule change would require underwriters to register and 
conduct tests with the Depository Trust and Clearing Corporation's 
(``DTCC'') New Issue Information Dissemination System (``NIIDS''). The 
proposed rule change would help ensure that dealers are prepared for 
the September 30, 2008 effective date of changes to other MSRB rules to 
require underwriters to participate in NIIDS.\4\ Accordingly, the 
proposed rule change would require all brokers, dealers and municipal 
securities dealers (collectively ``dealers'') that have acted as 
underwriter \5\ in the last year on a new issue of municipal securities 
with nine months or greater effective maturity to register to use NIIDS 
with DTCC and successfully test NIIDS prior to September 15, 2008.\6\ 
On an ongoing

[[Page 37519]]

basis the proposed rule change would require dealers to register to use 
NIIDS with DTCC and successfully test NIIDS prior to acting as 
underwriter on a new issue of municipal securities with nine months or 
greater effective maturity. A full description of the proposal is 
contained in the Commission's Notice.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 57750 (May 1, 2008), 
73 FR 25815 (May 7, 2008).
    \5\ Rule G-34 defines ``underwriter'' very broadly to include a 
dealer acting as a placement agent as well as any dealer purchasing 
new issue securities from the issuer as principal. If there is an 
underwriting syndicate, the lead manager is considered to be the 
``underwriter'' for purposes of Rule G-34.
    \6\ Many underwriters have already registered with DTCC and 
initiated NIIDS testing. The proposed rule change would place a 
deadline on underwriters to register with DTCC and complete NIIDS 
testing. Underwriters that have already satisfied the requirements 
of the proposed rule change prior to SEC approval are not required 
to re-register or re-test.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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-2008-04), 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,
Acting Secretary.
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    \11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-14857 Filed 6-30-08; 8:45 am]
BILLING CODE 8010-01-P