Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of Rule D-13, on a Definition of “Municipal Advisory Activities”, Rule D-14, on a Definition of “Appropriate Regulatory Agency”, and Amendments to Rule D-11 (“Associated Persons”), Rule G-40 on Electronic Mail Contacts, and Form G-40, on Electronic Mail Contacts, 70335-70337 [2010-28986]
Download as PDF
Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices
511(b); and reference to Rule 515 is
deleted.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 32 in general, and furthers the
objectives of Section 6(b)(5) of the Act 33
in particular, in that it is designed to
promote just and equitable principles of
trade, 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, by
updating and making more uniform the
evaluation process for specialist units,
ensuring timely electronic quotations by
SQTs and RSQTs, and consolidating
and deleting unnecessary and obsolete
rules and processes. The Exchange
believes that its rule change proposal
does not engender unfair discrimination
among specialists, specialist units, SQTs
and RSQTs in that it proposes to amend
rules and procedures that are equally
applicable to all members and member
organizations at the Exchange.
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 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 either
solicited or received.
mstockstill on DSKH9S0YB1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
the proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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
No. SR–Phlx-2010–153 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–Phlx–2010–153. 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 Web site viewing and
printing 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
Exchange. All 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–Phlx–
2010–153 and should be submitted on
or before December 8, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.34
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–28900 Filed 11–16–10; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63308; File No. SR–MSRB–
2010–15]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing and Immediate
Effectiveness of Rule D–13, on a
Definition of ‘‘Municipal Advisory
Activities’’, Rule D–14, on a Definition
of ‘‘Appropriate Regulatory Agency’’,
and Amendments to Rule D–11
(‘‘Associated Persons’’), Rule G–40 on
Electronic Mail Contacts, and Form G–
40, on Electronic Mail Contacts
November 12, 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 November
10, 2010, the Municipal Securities
Rulemaking Board (‘‘Board’’ or ‘‘MSRB’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by the MSRB. The
Board has designated the proposed rule
change as concerned solely with the
administration of the Board or other
matters which the Commission, by rule,
consistent with the public interest and
the purposes of this subsection, may
specify as without the provisions of
Section 19(b)(2) of the Act. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The MSRB is filing a proposed rule
change relating to municipal advisors,
consisting of: (i) Amendments to Rule
D–11 (definition of ‘‘associated
persons’’); (ii) new Rule D–13 (definition
of ‘‘municipal advisory activities’’); (iii)
new Rule D–14 (definition of
‘‘appropriate regulatory agency’’); (iv)
amendments to Rule G–40, on electronic
mail contacts, by municipal advisors;
and (v) amendments to Form G–40, on
electronic mail contacts. The proposed
rule change is effective immediately
upon filing.
The text of the proposed rule change
is available on the MSRB’s Web site at
https://www.msrb.org/Rules-andInterpretations/SEC-Filings/2010Filings.aspx, at the MSRB’s principal
office, and at the Commission’s Public
Reference Room.
BILLING CODE 8011–01–P
32 15
U.S.C. 78f(b).
33 15 U.S.C. 78f(b)(5).
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16:21 Nov 16, 2010
1 15
34 17
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2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices
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 Board 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
mstockstill on DSKH9S0YB1PROD with NOTICES
1. Purpose
The purposes of the proposed rule
change are: (i) To complete the
rulemaking that is necessary for the
registration of municipal advisors with
the MSRB (amended Rule G–40 and
amended Form G–40) and (ii) to define
certain terms that are necessary to the
MSRB rules governing rulemaking
concerning municipal advisors and the
process of registering municipal
advisors with the MSRB. Specifically,
the proposed rule change consists of: (i)
An amendment to Rule D–11 to provide
that the term ‘‘municipal advisor’’ in
MSRB rules shall include the associated
persons of such municipal advisor
unless otherwise specified, (ii) a new
Rule D–13 that defines ‘‘municipal
advisory activities’’ with respect to the
activities of municipal advisors
described in Section 15B(e)(4)(A)(i) and
(ii) of the Act, (iii) a new Rule D–14 that
defines ‘‘appropriate regulatory agency’’
to have the meaning set forth in Section
3(a)(34) of the Act with respect to a
broker, dealer, or municipal securities
dealer and to mean the Commission
with respect to a municipal advisor; (iv)
amendments to Rule G–40 concerning
the provision of electronic mail contacts
by municipal advisors, and (v) amended
Form G–40 concerning the provision of
electronic mail contacts by municipal
advisors.
2. Statutory Basis
The MSRB believes that the proposed
rule change is consistent with Section
15B(b)(2) of the Act, which provides
that:
The Board shall propose and adopt rules to
effect the purposes of this title with respect
to transactions in municipal securities
effected by brokers, dealers, and municipal
securities dealers and advice provided to or
on behalf of municipal entities or obligated
persons by brokers, dealers, municipal
VerDate Mar<15>2010
16:21 Nov 16, 2010
Jkt 223001
securities dealers, and municipal advisors
with respect to municipal financial products,
the issuance of municipal securities, and
solicitations of municipal entities or
obligated persons undertaken by brokers,
dealers, municipal securities dealers, and
municipal advisors.
would apply equally to all municipal
advisors.
The proposed rule change is
consistent with Section 15B(b)(2) of the
Act, because it: (i) Is essential to the
registration with the MSRB of the
municipal advisors described in Section
15B(b)(2) of the Act and (ii) defines
certain terms that are necessary to the
MSRB rules governing such municipal
advisors and the process of registering
such advisors with the MSRB.
Section 15B(2)(L) of the Act requires
that rules adopted by the Board
Written comments were neither
solicited nor received on the proposed
rule change.
not impose a regulatory burden on small
municipal advisors that is not necessary or
appropriate in the public interest and for the
protection of investors, municipal entities,
and obligated persons, provided that there is
robust protection of investors against fraud.
The proposed rule change does not
impose a regulatory burden on small
advisors that is not necessary or
appropriate in the public interest and
for the protection of investors,
municipal entities, and obligated
persons and for the robust protection of
investors against fraud. Rule G–40, as
amended by the proposed rule change,
only requires municipal advisors to
submit basic contact information and to
select the categories of municipal
advisors that best describe them. The
MSRB expects that municipal advisors
will need no more than 15 minutes to
complete electronic Form G–40, but the
MSRB will have staff ready to assist
them should they have any questions.
Any burden on municipal advisors is de
minimis. The portion of the proposed
rule change that consists of definitions
will impose no burden on any
municipal advisor. While the proposed
rule change, at best, imposes only a de
minimis burden on municipal advisors,
the proposed rule change is necessary
for the MSRB to have a record of the
municipal advisors it regulates, so that
it may keep them abreast of regulatory
developments, better target its
rulemaking and professional
qualifications examinations to different
types of municipal advisors, and
identify to the Commission those
municipal advisors who have reportedly
violated MSRB rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The MSRB does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, since it
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Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments Received on
the Proposed Rule Change by Members,
Participants, or Others
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The MSRB represented that the
proposed rule change qualifies for
immediate effectiveness pursuant to
Section 19(b)(3)(A)(iii) of the Act 3
thereunder, because it: (i) Does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) does not become
operative for 30 days after filing or such
shorter time as the Commission may
designate consistent with the protection
of investors and the public interest.4
The MSRB provided the required
written notice of its intention to file the
proposed rule change to the
Commission on October 22, 2010.
The MSRB has requested that the
Commission designate a shorter time
period for the proposed rule change to
become operative, that is, on November
15, 2010, and has represented that the
proposed rule change is not
controversial, that it is integrally related
to SR–MSRB–2010–14, which became
effective November 9, 2010, and that it
is necessary for the completion of
rulemaking related to the registration of
municipal advisors with the MSRB. The
MSRB has stated that an earlier
operative date of November 15, 2010
will permit the MSRB to begin to
register municipal advisors and will
provide municipal advisors with
additional time to complete their
registration process with the MSRB by
no later than January 1, 2011. The
Commission hereby grants the MSRB’s
request and believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest.5 The earlier operative
date will allow municipal advisors
3 15
U.S.C. 78s(b)(3)(A).
addition, Rule 19b–4(f)(6)(iii) requires a selfregulatory organization to give the Commission
written notice of its intent to file the proposed rule
change at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
5 For the purposes only of accelerating the
operative date of this proposal, the Commission has
considered the proposed rule change’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
4 In
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17NON1
Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices
additional time to register with the
MSRB.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend 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.6
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:
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–2010–15 and should
be submitted on or before December 8,
2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–28986 Filed 11–16–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSKH9S0YB1PROD with NOTICES
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–2010–15 on the
subject line.
[Release No. 34–63304; File No. SR–ISE–
2010–108]
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–2010–15. 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
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 Web site viewing and
printing 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 MSRB’s offices. All
comments received will be posted
without change; the Commission does
November 10, 2010.
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Expand the $0.50 Strike
Program
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
November 10, 2010, the International
Securities Exchange, LLC (‘‘ISE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rules to: (i) Expand the $0.50 Strike
Program for strike prices below $1.00;
(ii) extend the $0.50 Strike Program to
strike prices that are $5.50 or less; (iii)
extend the prices of the underlying
security to at or below $5.00; and (iv)
extend the number of options classes
overlying 20 individual stocks. The text
of the proposed rule change is available
on the Exchange’s Web site https://
www.ise.com, at the principal office of
the Exchange, on the Commission’s Web
site at https://www.sec.gov, and at the
Commission’s Public Reference Room.
7 17
6 See
Section 19(b)(3)(C) of the Act, 15 U.S.C.
78s(b)(3)(C).
VerDate Mar<15>2010
16:21 Nov 16, 2010
Jkt 223001
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Fmt 4703
Sfmt 4703
70337
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
self-regulatory organization 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 this proposed rule
change is to modify the Exchange’s rules
to expand the $0.50 Strike Program in
order to provide investors with
opportunities and strategies to minimize
losses associated with owning a stock
declining in price.
The Exchange is proposing to
establish strike price intervals of $0.50,
beginning at $0.50 for certain options
classes where the strike price is $5.50 or
less and whose underlying security
closed at or below $5.00 in its primary
market on the previous trading day and
which have national average daily
volume that equals or exceeds 1000
contracts per day as determined by The
Options Clearing Corporation (‘‘OCC’’)
during the preceding three calendar
months. The Exchange also proposes to
limit the listing of $0.50 strike prices to
options classes overlying no more than
20 individual stocks as specifically
designated by the Exchange.
Currently, Supplementary Material
.05 to ISE Rule 504 permits strike price
intervals of $0.50 or greater beginning at
$1.00 where the strike price is $3.50 or
less, but only for option classes whose
underlying security closed at or below
$3.00 in its primary market on the
previous trading day and which have
national average daily volume that
equals or exceeds 1000 contracts per
day as determined by OCC during the
preceding three calendar months.
Further, the listing of $0.50 strike prices
is limited to options classes overlying
no more than 5 individual stocks as
specifically designated by the Exchange.
The Exchange is currently restricted
from listing series with $1 intervals
within $0.50 of an existing strike price
in the same series, except that strike
prices of $2, $3, and $4 shall be
permitted within $0.50 of an existing
E:\FR\FM\17NON1.SGM
17NON1
Agencies
[Federal Register Volume 75, Number 221 (Wednesday, November 17, 2010)]
[Notices]
[Pages 70335-70337]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28986]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63308; File No. SR-MSRB-2010-15]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing and Immediate Effectiveness of Rule D-13, on a
Definition of ``Municipal Advisory Activities'', Rule D-14, on a
Definition of ``Appropriate Regulatory Agency'', and Amendments to Rule
D-11 (``Associated Persons''), Rule G-40 on Electronic Mail Contacts,
and Form G-40, on Electronic Mail Contacts
November 12, 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 November 10, 2010, the Municipal Securities Rulemaking Board
(``Board'' or ``MSRB'') filed with the Securities and Exchange
Commission (``SEC'' or ``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the MSRB. The Board has designated the proposed rule change as
concerned solely with the administration of the Board or other matters
which the Commission, by rule, consistent with the public interest and
the purposes of this subsection, may specify as without the provisions
of Section 19(b)(2) of the Act. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The MSRB is filing a proposed rule change relating to municipal
advisors, consisting of: (i) Amendments to Rule D-11 (definition of
``associated persons''); (ii) new Rule D-13 (definition of ``municipal
advisory activities''); (iii) new Rule D-14 (definition of
``appropriate regulatory agency''); (iv) amendments to Rule G-40, on
electronic mail contacts, by municipal advisors; and (v) amendments to
Form G-40, on electronic mail contacts. The proposed rule change is
effective immediately upon filing.
The text of the proposed rule change is available on the MSRB's Web
site at https://www.msrb.org/Rules-and-Interpretations/SEC-Filings/2010-Filings.aspx, at the MSRB's principal office, and at the Commission's
Public Reference Room.
[[Page 70336]]
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 Board 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 purposes of the proposed rule change are: (i) To complete the
rulemaking that is necessary for the registration of municipal advisors
with the MSRB (amended Rule G-40 and amended Form G-40) and (ii) to
define certain terms that are necessary to the MSRB rules governing
rulemaking concerning municipal advisors and the process of registering
municipal advisors with the MSRB. Specifically, the proposed rule
change consists of: (i) An amendment to Rule D-11 to provide that the
term ``municipal advisor'' in MSRB rules shall include the associated
persons of such municipal advisor unless otherwise specified, (ii) a
new Rule D-13 that defines ``municipal advisory activities'' with
respect to the activities of municipal advisors described in Section
15B(e)(4)(A)(i) and (ii) of the Act, (iii) a new Rule D-14 that defines
``appropriate regulatory agency'' to have the meaning set forth in
Section 3(a)(34) of the Act with respect to a broker, dealer, or
municipal securities dealer and to mean the Commission with respect to
a municipal advisor; (iv) amendments to Rule G-40 concerning the
provision of electronic mail contacts by municipal advisors, and (v)
amended Form G-40 concerning the provision of electronic mail contacts
by municipal advisors.
2. Statutory Basis
The MSRB believes that the proposed rule change is consistent with
Section 15B(b)(2) of the Act, which provides that:
The Board shall propose and adopt rules to effect the purposes
of this title with respect to transactions in municipal securities
effected by brokers, dealers, and municipal securities dealers and
advice provided to or on behalf of municipal entities or obligated
persons by brokers, dealers, municipal securities dealers, and
municipal advisors with respect to municipal financial products, the
issuance of municipal securities, and solicitations of municipal
entities or obligated persons undertaken by brokers, dealers,
municipal securities dealers, and municipal advisors.
The proposed rule change is consistent with Section 15B(b)(2) of
the Act, because it: (i) Is essential to the registration with the MSRB
of the municipal advisors described in Section 15B(b)(2) of the Act and
(ii) defines certain terms that are necessary to the MSRB rules
governing such municipal advisors and the process of registering such
advisors with the MSRB.
Section 15B(2)(L) of the Act requires that rules adopted by the
Board
not impose a regulatory burden on small municipal advisors that
is not necessary or appropriate in the public interest and for the
protection of investors, municipal entities, and obligated persons,
provided that there is robust protection of investors against fraud.
The proposed rule change does not impose a regulatory burden on
small advisors that is not necessary or appropriate in the public
interest and for the protection of investors, municipal entities, and
obligated persons and for the robust protection of investors against
fraud. Rule G-40, as amended by the proposed rule change, only requires
municipal advisors to submit basic contact information and to select
the categories of municipal advisors that best describe them. The MSRB
expects that municipal advisors will need no more than 15 minutes to
complete electronic Form G-40, but the MSRB will have staff ready to
assist them should they have any questions. Any burden on municipal
advisors is de minimis. The portion of the proposed rule change that
consists of definitions will impose no burden on any municipal advisor.
While the proposed rule change, at best, imposes only a de minimis
burden on municipal advisors, the proposed rule change is necessary for
the MSRB to have a record of the municipal advisors it regulates, so
that it may keep them abreast of regulatory developments, better target
its rulemaking and professional qualifications examinations to
different types of municipal advisors, and identify to the Commission
those municipal advisors who have reportedly violated MSRB rules.
B. Self-Regulatory Organization's Statement on Burden on Competition
The MSRB does not believe that the proposed rule change will impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, since it would apply equally to
all municipal advisors.
C. Self-Regulatory Organization's Statement on Comments Received on the
Proposed Rule Change by Members, Participants, or Others
Written comments were neither solicited nor received on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The MSRB represented that the proposed rule change qualifies for
immediate effectiveness pursuant to Section 19(b)(3)(A)(iii) of the Act
\3\ thereunder, because it: (i) Does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) does not become
operative for 30 days after filing or such shorter time as the
Commission may designate consistent with the protection of investors
and the public interest.\4\
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\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ In addition, Rule 19b-4(f)(6)(iii) requires a self-
regulatory organization to give the Commission written notice of its
intent to file the proposed rule change at least five business days
prior to the date of filing of the proposed rule change, or such
shorter time as designated by the Commission.
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The MSRB provided the required written notice of its intention to
file the proposed rule change to the Commission on October 22, 2010.
The MSRB has requested that the Commission designate a shorter time
period for the proposed rule change to become operative, that is, on
November 15, 2010, and has represented that the proposed rule change is
not controversial, that it is integrally related to SR-MSRB-2010-14,
which became effective November 9, 2010, and that it is necessary for
the completion of rulemaking related to the registration of municipal
advisors with the MSRB. The MSRB has stated that an earlier operative
date of November 15, 2010 will permit the MSRB to begin to register
municipal advisors and will provide municipal advisors with additional
time to complete their registration process with the MSRB by no later
than January 1, 2011. The Commission hereby grants the MSRB's request
and believes that waiving the 30-day operative delay is consistent with
the protection of investors and the public interest.\5\ The earlier
operative date will allow municipal advisors
[[Page 70337]]
additional time to register with the MSRB.
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\5\ For the purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule
change's impact on efficiency, competition, and capital formation.
See 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend 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.\6\
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\6\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
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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-2010-15 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-2010-15. 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 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 Web site viewing and printing 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 MSRB's offices. All 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-2010-15 and should be submitted on or before
December 8, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-28986 Filed 11-16-10; 8:45 am]
BILLING CODE 8011-01-P