Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of Amendments to Rule A-13, on Underwriting Assessments and Rule G-32, on Disclosures in Connection With Primary Offerings, 52292-52294 [E9-24354]

Download as PDF 52292 Federal Register / Vol. 74, No. 195 / Friday, October 9, 2009 / Notices 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 Exchange Act. Comments may be submitted by any of the following methods: BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION 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–NYSEArca–2009–83 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. mstockstill on DSKH9S0YB1PROD with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–24353 Filed 10–8–09; 8:45 am] [Release No. 34–60783; File No. SR–MSRB– 2009–15] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of Amendments to Rule A–13, on Underwriting Assessments and Rule G–32, on Disclosures in Connection With Primary Offerings October 2, 2009. 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 All submissions should refer to File September 30, 2009, the Municipal Number SR–NYSEArca–2009–83. This Securities Rulemaking Board (‘‘MSRB’’ file number should be included on the subject line if e-mail is used. To help the or ‘‘Board’’), filed with the Securities and Exchange Commission Commission process and review your (‘‘Commission’’) the proposed rule comments more efficiently, please use only one method. The Commission will change as described in Items I, II and III below, which Items have been prepared post all comments on the Commission’s by the MSRB. The MSRB has designated Internet Web site (https://www.sec.gov/ the proposed rule change as changing a rules/sro.shtml). Copies of the fee applicable to brokers, dealers and submission, all subsequent municipal securities dealers pursuant to amendments, all written statements Section 19(b)(3)(A)(ii) of the Act,3 and with respect to the proposed rule Rule 19b–4(f)(2) thereunder,4 which change that are filed with the renders the proposal effective upon Commission, and all written filing with the Commission. The communications relating to the Commission is publishing this notice to proposed rule change between the solicit comments on the proposed rule Commission and any person, other than change from interested persons. those that may be withheld from the I. Self-Regulatory Organization’s public in accordance with the Statement of the Terms of Substance of provisions of 5 U.S.C. 552, will be the Proposed Rule Change available for inspection and copying in The MSRB is filing amendments to the Commission’s Public Reference Rule A–13, which provides for fee Room, 100 F Street, NE., Washington, assessments based on underwriting DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. activity and Rule G–32, by adding a Copies of the filing will also be available definition of commercial paper. The proposed rule change would apply to for inspection and copying at NYSE primary offerings of municipal Arca’s principal office. All comments received will be posted without change; securities for which submission of Form G–32 under Rule G–32(b)(i)(A) is the Commission does not edit personal initiated on or after December 1, 2009. identifying information from The text of the proposed rule change is submissions. You should submit only available on the MSRB’s Web site at information that you wish to make https://www.msrb.org/msrb1/sec.asp, at available publicly. All submissions should refer to File Number SR– 17 17 CFR 200.30–3(a)(12). NYSEArca–2009–83 and should be 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. submitted on or before October 30, 3 15 U.S.C. 78s(b)(3)(A)(ii). 2009. 4 17 VerDate Nov<24>2008 16:05 Oct 08, 2009 Jkt 220001 PO 00000 CFR 240.19b–4(f)(2). Frm 00119 Fmt 4703 Sfmt 4703 the MSRB’s principal office, 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 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 The purpose of the proposed rule change is to assess reasonable fees necessary to defray the costs and expenses of operating and administering the MSRB. The proposed rule change would partially accomplish this purpose by amending Rule A–13 to eliminate exemptions in Rule A–13 pertaining to underwriting assessments for primary offerings of municipal securities that: (i) Have an aggregate par value less than $1,000,000; (ii) have a final stated maturity of nine months or less, except commercial paper; (iii) at the option of the holder thereof, may be tendered to an issuer of such securities or its designated agent for redemption or purchase at par value or more at least as frequently as every nine months until maturity, earlier redemption, or purchase by an issuer or its designated agent; and (iv) have authorized denominations of $100,000 or more and are sold to no more than thirty-five persons each of whom the broker, dealer or municipal securities dealer (‘‘dealer’’) reasonably believes: (A) Has the knowledge and experience necessary to evaluate the merits and risks of the investment; and (B) is not purchasing for more than one account, with a view toward distributing the securities (‘‘limited offering’’). The underwriting fee for primary offerings of these securities will be $.03 per $1000 par value, which is the current underwriting fee for primary offerings of municipal bonds. Additionally, the proposed rule change will further harmonize the underwriting fees of notes and bonds by changing the underwriting fee on primary offerings in which all securities offered have a final stated maturity less than two years to the rate of $.03 per E:\FR\FM\09OCN1.SGM 09OCN1 mstockstill on DSKH9S0YB1PROD with NOTICES Federal Register / Vol. 74, No. 195 / Friday, October 9, 2009 / Notices $1000 par value. For purposes of the underwriting assessment under Rule A–13, a primary offering will be defined to mean a primary offering under Exchange Act Rule 15c2–12, but excludes subsequent remarketings after the initial issuance of the bonds or notes. Rule G–32 has also been amended to include a new definition of commercial paper. The MSRB currently levies three types of fees that are generally applicable to dealers. Rule A–12 provides for a $100 initial fee paid once by a dealer when it enters the municipal securities business. Rule A–13 provides for an underwriting fee of $.03 per $1000 par value of bonds and $.01 per $1000 par value of notes (with specified exceptions), and a transaction fee of $.005 per $1000 par value of sale transactions of specified securities. Rule A–14 provides for an annual fee of $500 from each dealer who conducts municipal securities activities. The underwriting and transaction fees in Rule A–13 assess fees that are generally proportionate to a dealer’s activity within the industry. Historically, municipal notes were either exempt from underwriting fees or were subject to reduced underwriting fees ($.01 per $1000), and variable rate demand obligations, small issues, and limited offerings also were exempt from underwriting fees. The MSRB believes that such a fee structure has become increasingly inequitable as the volume of primary offerings in these categories (including in particular note issues) has grown, and the MSRB’s resources have been devoted to supporting both notes and bonds. The elimination of exemptions for these categories of primary offerings will result in fees that are more fairly, reasonably and equitably allocated to reflect dealer participation in the overall municipal debt market. During the past five years, the Board’s ongoing expenses have increased significantly due to increased regulatory activities and expanded market information products and services, including the new Electronic Municipal Market Access system (‘‘EMMA’’) to implement the new ‘‘access equals delivery’’ primary market disclosure service under MSRB Rule G–32 and the new continuing disclosure service to implement the Commission’s amendments to Exchange Act Rule 15c2–12 as well as the Short-term Obligation Rate Transparency system (‘‘SHORT’’) for interest rate transparency for variable rate demand obligations and auction rate securities. These new systems and their associated rules greatly enhance the efficiency of VerDate Nov<24>2008 16:05 Oct 08, 2009 Jkt 220001 the municipal securities market and provide critical information to dealers and investors. The proposed rule change is designed to better match the MSRB’s revenues with the operating costs associated with these important new systems and the costs of regulating the municipal securities market. 2. Statutory Basis The MSRB believes that the proposed rule change is consistent with the requirements of Section 15B(b)(2)(J) of the Act,5 which requires, in pertinent part, that the MSRB’s rules shall: Provide that each municipal securities broker and each municipal securities dealer shall pay to the Board such reasonable fees and charges as may be necessary or appropriate to defray the costs and expenses of operating and administering the Board. Such rules shall specify the amount of such fees and charges. The proposed rule change provides for reasonable fees, based on dealer involvement in the municipal securities market that are necessary to defray MSRB expenses. The proposed rule change will result in a more equitable distribution of fees among dealers in the municipal securities market based on their level of activity in the primary market for municipal bonds and notes. 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 not necessary or appropriate in furtherance of the purposes of the Act, since it would apply equally to all dealers and would be apportioned based on such dealers’ level of participation in the municipal securities primary market. 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 The proposed rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 6 and Rule 19b– 4(f)(2) thereunder,7 in that the proposed amendments to Rule A–13 and Rule G–32 change fees applicable to brokers, dealers and municipal securities dealers. The proposed rule change would apply to primary offerings of U.S.C. 78o–4(b)(2)(J). U.S.C. 78s(b)(3)(A)(ii). 7 17 CFR 240.19b–4(f)(2). 52293 municipal securities for which submission of Form G–32 under MSRB Rule G–32(b)(i)(A) is initiated on or after December 1, 2009. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.8 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–2009–15 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–MSRB–2009–15. 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 5 15 6 15 PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 8 See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C). E:\FR\FM\09OCN1.SGM 09OCN1 52294 Federal Register / Vol. 74, No. 195 / Friday, October 9, 2009 / Notices comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–MSRB–2009–15 and should be submitted on or before October 30, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–24354 Filed 10–8–09; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB–55 (Sub–No. 699X)] CSX Transportation, Inc.— Abandonment Exemption—in McMinn County, TN CSX Transportation, Inc. (CSXT) has filed a notice of exemption under 49 CFR 1152 Subpart F—Exempt Abandonments to abandon a 0.22-mile line of railroad on CSXT’s Southern Region, Huntington-West Division, KD Subdivision, extending from milepost OKW 333.40 to milepost OKW 333.62, in Athens, McMinn County, TN.1 The line traverses United States Postal Service Zip Code 37303. CSXT has certified that: (1) No local traffic has moved over the line for at least 2 years; (2) any overhead traffic on the line can be rerouted over other lines; (3) no formal complaint filed by a user of rail service on the line (or by a state or local government entity acting on behalf of such user) regarding cessation of service over the line either is pending with the Board or with any U.S. District Court or has been decided in favor of complainant within the 2-year period; and (4) the requirements of 49 CFR 1105.7 (environmental report), 49 CFR 1105.8 (historic report), 49 CFR 1105.11 (transmittal letter), 49 CFR 1105.12 (newspaper publication), and 49 CFR CFR 200.30–3(a)(12). decision and notice served on July 27, 2001, in STB Docket No. AB–55 (Sub–No. 586X), CSXT was granted an exemption from the prior approval requirements of 49 U.S.C. 10903 to abandon a larger rail line between milepost OKW 333.40, and milepost OKW 334.24. That exemption included the smaller line segment at issue here, between milepost OKW 333.40 and milepost OKW 333.62. CSXT allowed the abandonment authority for this smaller segment to expire when it did not, by July 27, 2002, file with the Board a notice of consummation of abandonment of this smaller segment. 1152.50(d)(1) (notice to governmental agencies) have been met. As a condition to this exemption, any employee adversely affected by the abandonment shall be protected under Oregon Short Line R. Co.— Abandonment—Goshen, 360 I.C.C. 91 (1979). To address whether this condition adequately protects affected employees, a petition for partial revocation under 49 U.S.C. 10502(d) must be filed. Provided no formal expression of intent to file an offer of financial assistance (OFA) has been received, this exemption will be effective on November 10, 2009, unless stayed pending reconsideration. Petitions to stay that do not involve environmental issues,2 formal expressions of intent to file an OFA under 49 CFR 1152.27(c)(2),3 and trail use/rail banking requests under 49 CFR 1152.29 must be filed by October 19, 2009. Petitions to reopen or requests for public use conditions under 49 CFR 1152.28 must be filed by October 29, 2009, with the Surface Transportation Board, 395 E Street, SW., Washington, DC 20423– 0001. A copy of any petition filed with the Board should be sent to CSXT’s representative: Kathryn R. Barney, 500 Water Street, J–150, Jacksonville, FL 32202. If the verified notice contains false or misleading information, the exemption is void ab initio. CSXT has filed environmental and historic reports which address the effects, if any, of the abandonment on the environment and historic resources. SEA will issue an environmental assessment (EA) by October 16, 2009. Interested persons may obtain a copy of the EA by writing to SEA (Room 1100, Surface Transportation Board, Washington, DC 20423–0001) or by calling SEA, at (202) 245–0305. [Assistance for the hearing impaired is available through the Federal Information Relay Service (FIRS) at 1– 800–877–8339.] Comments on environmental and historic preservation matters must be filed within 15 days after the EA becomes available to the public. 9 17 mstockstill on DSKH9S0YB1PROD with NOTICES 1 By VerDate Nov<24>2008 16:05 Oct 08, 2009 Jkt 220001 2 The Board will grant a stay if an informed decision on environmental issues (whether raised by a party or by the Board’s Section of Environmental Analysis (SEA) in its independent investigation) cannot be made before the exemption’s effective date. See Exemption of Outof-Service Rail Lines, 5 I.C.C.2d 377 (1989). Any request for a stay should be filed as soon as possible so that the Board may take appropriate action before the exemption’s effective date. 3 Each OFA must be accompanied by the filing fee, which is currently set at $1,500. See 49 CFR 1002.2(f)(25). PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 Environmental, historic preservation, public use, or trail use/rail banking conditions will be imposed, where appropriate, in a subsequent decision. Pursuant to the provisions of 49 CFR 1152.29(e)(2), CSXT shall file a notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the line. If consummation has not been effected by CSXT’s filing of a notice of consummation by October 9, 2010, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Board decisions and notices are available on our Web site at https:// www.stb.dot.gov. Decided: October 2, 2009. By the Board, Rachel D. Campbell, Director, Office of Proceedings. Kulunie L. Cannon, Clearance Clerk. [FR Doc. E9–24258 Filed 10–8–09; 8:45 am] BILLING CODE 4915–01–P DEPARTMENT OF THE TREASURY Senior Executive Service; Departmental Offices Performance Review Board Treasury Department. Notice of members of the Departmental Offices Performances Review Board. AGENCY: ACTION: SUMMARY: Pursuant to 5 U.S.C. 4314(c)(4), this notice announces the appointment of members of the Departmental Offices Performance Review Board (PRB). The purpose of this Board is to review and make recommendations concerning proposed performance appraisals, ratings, bonuses and other appropriate personnel actions for incumbents of SES positions in the Departmental Offices, excluding the Legal Division. The Board will perform PRB functions for other bureau positions if requested. Composition of Departmental Offices PRB: The Board shall consist of at least three members. In the case of an appraisal of a career appointee, more than half the members shall consist of career appointees. The names and titles of the Board members are as follows: Coloretti, Nani Ann, Deputy Assistant Secretary for Management and Budget. Dohner, Robert S., Deputy Assistant Secretary for South and East Asia. Duffy, Michael D., Deputy Assistant Secretary for Information Systems and Chief Information Officer. Fitzpayne, Alistair M., Deputy Chief of Staff. E:\FR\FM\09OCN1.SGM 09OCN1

Agencies

[Federal Register Volume 74, Number 195 (Friday, October 9, 2009)]
[Notices]
[Pages 52292-52294]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-24354]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60783; File No. SR-MSRB-2009-15]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing and Immediate Effectiveness of Amendments to 
Rule A-13, on Underwriting Assessments and Rule G-32, on Disclosures in 
Connection With Primary Offerings

October 2, 2009.
    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 September 30, 2009, the Municipal Securities Rulemaking Board 
(``MSRB'' or ``Board''), 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 by the MSRB. 
The MSRB has designated the proposed rule change as changing a fee 
applicable to brokers, dealers and municipal securities dealers 
pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) 
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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The MSRB is filing amendments to Rule A-13, which provides for fee 
assessments based on underwriting activity and Rule G-32, by adding a 
definition of commercial paper. The proposed rule change would apply to 
primary offerings of municipal securities for which submission of Form 
G-32 under Rule G-32(b)(i)(A) is initiated on or after December 1, 
2009. The text of the proposed rule change is available on the MSRB's 
Web site at https://www.msrb.org/msrb1/sec.asp, at the MSRB's principal 
office, 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 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
    The purpose of the proposed rule change is to assess reasonable 
fees necessary to defray the costs and expenses of operating and 
administering the MSRB. The proposed rule change would partially 
accomplish this purpose by amending Rule A-13 to eliminate exemptions 
in Rule A-13 pertaining to underwriting assessments for primary 
offerings of municipal securities that: (i) Have an aggregate par value 
less than $1,000,000; (ii) have a final stated maturity of nine months 
or less, except commercial paper; (iii) at the option of the holder 
thereof, may be tendered to an issuer of such securities or its 
designated agent for redemption or purchase at par value or more at 
least as frequently as every nine months until maturity, earlier 
redemption, or purchase by an issuer or its designated agent; and (iv) 
have authorized denominations of $100,000 or more and are sold to no 
more than thirty-five persons each of whom the broker, dealer or 
municipal securities dealer (``dealer'') reasonably believes: (A) Has 
the knowledge and experience necessary to evaluate the merits and risks 
of the investment; and (B) is not purchasing for more than one account, 
with a view toward distributing the securities (``limited offering''). 
The underwriting fee for primary offerings of these securities will be 
$.03 per $1000 par value, which is the current underwriting fee for 
primary offerings of municipal bonds. Additionally, the proposed rule 
change will further harmonize the underwriting fees of notes and bonds 
by changing the underwriting fee on primary offerings in which all 
securities offered have a final stated maturity less than two years to 
the rate of $.03 per

[[Page 52293]]

$1000 par value. For purposes of the underwriting assessment under Rule 
A-13, a primary offering will be defined to mean a primary offering 
under Exchange Act Rule 15c2-12, but excludes subsequent remarketings 
after the initial issuance of the bonds or notes. Rule G-32 has also 
been amended to include a new definition of commercial paper.
    The MSRB currently levies three types of fees that are generally 
applicable to dealers. Rule A-12 provides for a $100 initial fee paid 
once by a dealer when it enters the municipal securities business. Rule 
A-13 provides for an underwriting fee of $.03 per $1000 par value of 
bonds and $.01 per $1000 par value of notes (with specified 
exceptions), and a transaction fee of $.005 per $1000 par value of sale 
transactions of specified securities. Rule A-14 provides for an annual 
fee of $500 from each dealer who conducts municipal securities 
activities.
    The underwriting and transaction fees in Rule A-13 assess fees that 
are generally proportionate to a dealer's activity within the industry. 
Historically, municipal notes were either exempt from underwriting fees 
or were subject to reduced underwriting fees ($.01 per $1000), and 
variable rate demand obligations, small issues, and limited offerings 
also were exempt from underwriting fees. The MSRB believes that such a 
fee structure has become increasingly inequitable as the volume of 
primary offerings in these categories (including in particular note 
issues) has grown, and the MSRB's resources have been devoted to 
supporting both notes and bonds. The elimination of exemptions for 
these categories of primary offerings will result in fees that are more 
fairly, reasonably and equitably allocated to reflect dealer 
participation in the overall municipal debt market.
    During the past five years, the Board's ongoing expenses have 
increased significantly due to increased regulatory activities and 
expanded market information products and services, including the new 
Electronic Municipal Market Access system (``EMMA'') to implement the 
new ``access equals delivery'' primary market disclosure service under 
MSRB Rule G-32 and the new continuing disclosure service to implement 
the Commission's amendments to Exchange Act Rule 15c2-12 as well as the 
Short-term Obligation Rate Transparency system (``SHORT'') for interest 
rate transparency for variable rate demand obligations and auction rate 
securities. These new systems and their associated rules greatly 
enhance the efficiency of the municipal securities market and provide 
critical information to dealers and investors. The proposed rule change 
is designed to better match the MSRB's revenues with the operating 
costs associated with these important new systems and the costs of 
regulating the municipal securities market.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with 
the requirements of Section 15B(b)(2)(J) of the Act,\5\ which requires, 
in pertinent part, that the MSRB's rules shall:
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78o-4(b)(2)(J).

    Provide that each municipal securities broker and each municipal 
securities dealer shall pay to the Board such reasonable fees and 
charges as may be necessary or appropriate to defray the costs and 
expenses of operating and administering the Board. Such rules shall 
---------------------------------------------------------------------------
specify the amount of such fees and charges.

    The proposed rule change provides for reasonable fees, based on 
dealer involvement in the municipal securities market that are 
necessary to defray MSRB expenses. The proposed rule change will result 
in a more equitable distribution of fees among dealers in the municipal 
securities market based on their level of activity in the primary 
market for municipal bonds and notes.

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 not necessary or appropriate in furtherance 
of the purposes of the Act, since it would apply equally to all dealers 
and would be apportioned based on such dealers' level of participation 
in the municipal securities primary market.

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

    The proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) thereunder,\7\ in 
that the proposed amendments to Rule A-13 and Rule G-32 change fees 
applicable to brokers, dealers and municipal securities dealers. The 
proposed rule change would apply to primary offerings of municipal 
securities for which submission of Form G-32 under MSRB Rule G-
32(b)(i)(A) is initiated on or after December 1, 2009. At any time 
within 60 days of the filing of the proposed rule change, the 
Commission may summarily abrogate such rule change if it appears to the 
Commission that such action is necessary or appropriate in the public 
interest, for the protection of investors, or otherwise in furtherance 
of the purposes of the Act.\8\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
    \8\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

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-2009-15 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-MSRB-2009-15. 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

[[Page 52294]]

comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-MSRB-2009-15 and should be 
submitted on or before October 30, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-24354 Filed 10-8-09; 8:45 am]
BILLING CODE 8011-01-P
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