Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Approving Proposed Rule Change Consisting of Amendments to Rule G-37 (Political Contributions and Prohibitions on Municipal Securities Business) and Rule G-8 (Books and Records To Be Made by Brokers, Dealers and Municipal Securities Dealers), 4126-4127 [2010-1431]

Download as PDF 4126 Federal Register / Vol. 75, No. 16 / Tuesday, January 26, 2010 / Notices WReier-Aviles on DSKGBLS3C1PROD with NOTICES information regarding the actual components of each of the portfolios.16 The Exchange has represented that the Shares are equity securities subject to the Exchange’s rules governing the trading of equity securities. In support of this proposal, the Exchange has made representations, including: (1) The Shares will conform to the initial and continued listing criteria under NYSE Arca Equities Rule 8.600(d). (2) The Exchange’s surveillance procedures are adequate to properly monitor Exchange trading of the Shares in all trading sessions and to deter and detect violations of Exchange rules and applicable Federal securities laws. (3) Prior to the commencement of trading, the Exchange will inform its ETP Holders in an Information Bulletin of the special characteristics and risks associated with trading the Shares. Specifically, the Information Bulletin will discuss the following: (a) The procedures for purchases and redemptions of Shares in Creation Unit aggregations and that Shares are not individually redeemable; (b) NYSE Arca Equities Rule 9.2(a), which imposes a duty of due diligence on its ETP Holders to learn the essential facts relating to every customer prior to trading the Shares; (c) the risks involved in trading the Shares during the Opening and Late Trading Sessions when an updated PIV will not be calculated or publicly disseminated; (d) how information regarding the PIV is disseminated; (e) the requirement that ETP Holders deliver a prospectus to investors purchasing newly issued Shares prior to or concurrently with the confirmation of a transaction; and (f) trading information. (4) The Funds will be in compliance with Rule 10A–3 under the Act. (5) The Funds will not invest in nonU.S. equity securities. This approval order is based on the Exchange’s representations. For the foregoing reasons, the Commission finds that the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to a national securities exchange. III. Accelerated Approval The Commission finds good cause, pursuant to Section 19(b)(2) of the Act,17 for approving the proposal prior to the thirtieth day after the date of publication of the Notice in the Federal Register. The Commission notes that it has approved the listing and trading on 16 See 17 15 NYSE Arca Equities Rule 8.600(d)(2)(B)(ii). U.S.C. 78s(b)(2). VerDate Nov<24>2008 14:10 Jan 25, 2010 Jkt 220001 the Exchange of shares of other actively managed exchange-traded funds based on a portfolio of securities, the characteristics of which are similar to those to be invested by the Funds.18 The Commission believes that accelerating approval of this proposal should benefit investors by creating, without undue delay, additional competition in the market for Managed Fund Shares. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,19 that the proposed rule change (SR–NYSEArca– 2009–114), be, and it hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.20 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–1430 Filed 1–25–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61381, File No. SR–MSRB– 2009–18] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Approving Proposed Rule Change Consisting of Amendments to Rule G–37 (Political Contributions and Prohibitions on Municipal Securities Business) and Rule G–8 (Books and Records To Be Made by Brokers, Dealers and Municipal Securities Dealers) January 20, 2010. On December 4, 2009, 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 proposed amendments to Rule G–37 (political contributions and prohibitions on municipal securities business) and Rule G–8 (books and records to be made by brokers, dealers and municipal securities dealers). The proposed rule change was published for comment in the Federal Register on December 18, 18 See, e.g., Securities Exchange Act Release No. 60981 (November 10, 2009), 74 FR 59594 (November 18, 2009) (SR–NYSEArca–2009–79) (approving the listing and trading of shares of five actively-managed fixed income funds of the PIMCO ETF Trust). 19 15 U.S.C. 78s(b)(2). 20 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 2009.3 The Commission received no comment letters. This order approves the proposed rule change. The proposed amendments to Rule G– 37 would require the public disclosure of contributions to bond ballot campaigns made by dealers, municipal finance professionals (‘‘MFPs’’), their political action committees (‘‘PACs’’) and non-MFP executive officers on MSRB Form G–37. Dealers would be required to report on revised Form G– 37 the official name of each bond ballot campaign receiving contributions during such calendar quarter, the jurisdiction (including city/county/state or political subdivision) by or for which municipal securities, if approved, would be issued, the contribution amount made and the category of contributor. The proposal would provide a de minimis exception from the reporting of contributions on Form G–37 made by an MFP or non-MFP executive officer to a bond ballot campaign for a ballot initiative with respect to which such person is entitled to vote if all contributions by such person to such bond ballot campaign, in total, do not exceed $250 per ballot initiative. The amendments would parallel the existing disclosure requirements for contributions to issuer officials and state and local political parties. Such amendments would not, however, provide for a ban on municipal securities business as a result of contributions to bond ballot campaigns. The proposed amendments to Rule G– 8 would require dealers to create and maintain records of the non-de minimis contributions to bond ballot campaigns that would be required to be disclosed on Form G–37 under the proposed amendments to Rule G–37. The MSRB requested that the proposed rule change become effective on, and would apply solely to contributions made on or after, the first business Monday at least five business days after Commission approval. A full description of the proposal is contained in the Commission’s Notice. The Commission has carefully considered the proposed rule change and finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to the MSRB 4 and, in particular, the requirements of 3 See Securities Exchange Act Release No. 61155 (Dec. 11, 2009), 74 FR 67285 (December 18, 2009) (‘‘Commission’s Notice’’). 4 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). E:\FR\FM\26JAN1.SGM 26JAN1 Federal Register / Vol. 75, No. 16 / Tuesday, January 26, 2010 / Notices Section 15B(b)(2)(C) of the Act 5 and the rules and regulations thereunder. Section 15B(b)(2)(C) of the Act requires, among other things, that the MSRB’s rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in municipal securities, to remove impediments to and perfect the mechanism of a free and open market in municipal securities, and, in general, to protect investors and the public interest.6 In particular, the Commission finds that the proposed rule change is consistent with the Act because it will protect investors and the public interest and will assist with preventing fraudulent and manipulative acts and practices by allowing the public and regulators to monitor dealer contributions to bond ballot campaigns, thereby further reducing the opportunity for pay-to-play practices in the municipal securities market. The proposed amendments will become effective on the date requested by the MSRB. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–MSRB–2009– 18), be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–1431 Filed 1–25–10; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–61378; File No. SR– NYSEArca–2010–01] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by NYSE Arca, Inc. Amending Its Fee Schedule WReier-Aviles on DSKGBLS3C1PROD with NOTICES January 19, 2010. 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 January 7, 2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission U.S.C. 78o–4(b)(2)(C). 6 Id. 7 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 8 17 VerDate Nov<24>2008 14:10 Jan 25, 2010 Jkt 220001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fee Schedule to remove obsolete language pertaining to its expired Linkage Pilot Program and introduce a new Royalty Fee for Nasdaq 100 Index Options (‘‘NDX’’) and Mini-NDX Options (‘‘MNX’’). A copy of this filing is available on the Exchange’s Web site at https://www.nyse.com, at the Exchange’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 self-regulatory organization 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 those 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 parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose SECURITIES AND EXCHANGE COMMISSION 5 15 (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. The Exchange proposes to amend its Fee Schedule to delete obsolete references pertaining to the Linkage Pilot Program. The Linkage Pilot Program expired on December 31, 2009. Accordingly, the Exchange proposes to remove the ‘‘Linkage Fees’’ portion of its fee schedule as well as endnote 7, 11 and obsolete portions of endnote 12. Furthermore, the Exchange proposes to renumber subsequent endnotes accordingly. Additionally, the Exchange plans to commence trading of options on the Nasdaq 100 Index (‘‘NDX’’) and MiniNDX (‘‘MNX’’). In order to trade options on NDX and MNX, the Exchange has entered into a licensing agreement with the Nasdaq Stock Market (‘‘Nasdaq’’), the exchange that created and maintains both indexes. As a part of this agreement, NYSE Arca will pay a fee to Nasdaq on every contract traded on the PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 4127 Exchange. Effective with this filing, the Exchange will assess a $0.22 Royalty Fee for transactions in NDX and MNX options. Accordingly, the $0.22 rate will be applied to the ‘‘Take’’ side of electronic Penny Pilot executions. All non-electronic Penny Pilot executions and all non-Penny Pilot executions will pay the $0.22 rate when there is a firm, broker dealer or market maker executing the transaction. 2. Statutory Basis The Exchange believes that the proposal is consistent with Section 6(b) of the Act,3 in general, and Section 6(b)(4),4 in particular, in that it provides for the equitable allocation of dues, fees and other charges among its members. Under this proposal, all similarly situated Exchange participants will be charged the same reasonable dues, fees and other charges. 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 No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) 5 of the Act and subparagraph (f)(2) of Rule 19b–4 6 thereunder, because it establishes a due, fee, or other charge imposed by NYSE Arca on its members. 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. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule 3 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 5 15 U.S.C. 78s(b)(3)(A). 6 17 CFR 240.19b–4(f)(2). 4 15 E:\FR\FM\26JAN1.SGM 26JAN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 75, Number 16 (Tuesday, January 26, 2010)]
[Notices]
[Pages 4126-4127]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-1431]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61381, File No. SR-MSRB-2009-18]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Order Approving Proposed Rule Change Consisting of Amendments to 
Rule G-37 (Political Contributions and Prohibitions on Municipal 
Securities Business) and Rule G-8 (Books and Records To Be Made by 
Brokers, Dealers and Municipal Securities Dealers)

January 20, 2010.
    On December 4, 2009, 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 proposed amendments to Rule G-37 
(political contributions and prohibitions on municipal securities 
business) and Rule G-8 (books and records to be made by brokers, 
dealers and municipal securities dealers). The proposed rule change was 
published for comment in the Federal Register on December 18, 2009.\3\ 
The Commission received no comment letters. 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. 61155 (Dec. 11, 
2009), 74 FR 67285 (December 18, 2009) (``Commission's Notice'').
---------------------------------------------------------------------------

    The proposed amendments to Rule G-37 would require the public 
disclosure of contributions to bond ballot campaigns made by dealers, 
municipal finance professionals (``MFPs''), their political action 
committees (``PACs'') and non-MFP executive officers on MSRB Form G-37. 
Dealers would be required to report on revised Form G-37 the official 
name of each bond ballot campaign receiving contributions during such 
calendar quarter, the jurisdiction (including city/county/state or 
political subdivision) by or for which municipal securities, if 
approved, would be issued, the contribution amount made and the 
category of contributor. The proposal would provide a de minimis 
exception from the reporting of contributions on Form G-37 made by an 
MFP or non-MFP executive officer to a bond ballot campaign for a ballot 
initiative with respect to which such person is entitled to vote if all 
contributions by such person to such bond ballot campaign, in total, do 
not exceed $250 per ballot initiative. The amendments would parallel 
the existing disclosure requirements for contributions to issuer 
officials and state and local political parties. Such amendments would 
not, however, provide for a ban on municipal securities business as a 
result of contributions to bond ballot campaigns.
    The proposed amendments to Rule G-8 would require dealers to create 
and maintain records of the non-de minimis contributions to bond ballot 
campaigns that would be required to be disclosed on Form G-37 under the 
proposed amendments to Rule G-37. The MSRB requested that the proposed 
rule change become effective on, and would apply solely to 
contributions made on or after, the first business Monday at least five 
business days after Commission approval. A full description of the 
proposal is contained in the Commission's Notice.
    The Commission has carefully considered the proposed rule change 
and finds that the proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to the MSRB \4\ and, in particular, the requirements of

[[Page 4127]]

Section 15B(b)(2)(C) of the Act \5\ and the rules and regulations 
thereunder. Section 15B(b)(2)(C) of the Act requires, among other 
things, that the MSRB's rules be designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in municipal 
securities, to remove impediments to and perfect the mechanism of a 
free and open market in municipal securities, and, in general, to 
protect investors and the public interest.\6\ In particular, the 
Commission finds that the proposed rule change is consistent with the 
Act because it will protect investors and the public interest and will 
assist with preventing fraudulent and manipulative acts and practices 
by allowing the public and regulators to monitor dealer contributions 
to bond ballot campaigns, thereby further reducing the opportunity for 
pay-to-play practices in the municipal securities market.
---------------------------------------------------------------------------

    \4\ 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).
    \5\ 15 U.S.C. 78o-4(b)(2)(C).
    \6\ Id.
---------------------------------------------------------------------------

    The proposed amendments will become effective on the date requested 
by the MSRB.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-MSRB-2009-18), be, and it 
hereby is, approved.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1431 Filed 1-25-10; 8:45 am]
BILLING CODE 8011-01-P

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