Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Granting Approval of Amendments to Rule G-5, on Disciplinary Actions by Appropriate Regulatory Agencies, Remedial Notices by Registered Securities Associations; and Rule G-17, on Conduct of Municipal Securities Activities, 82119-82120 [2010-32732]
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Federal Register / Vol. 75, No. 249 / Wednesday, December 29, 2010 / Notices
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–NYSEAmex–2010–124 on
the subject line.
Paper Comments
srobinson on DSKHWCL6B1PROD with NOTICES
• 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–NYSEAmex–2010–124.
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 the 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–
NYSEAmex–2010–124 and should be
submitted on or before January 19, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–32734 Filed 12–28–10; 8:45 am]
BILLING CODE 8011–01–P
21 17
CFR 200.30–3(a)(12).
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02:10 Dec 29, 2010
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63599; File No. SR–MSRB–
2010–16]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Order Granting Approval of
Amendments to Rule G–5, on
Disciplinary Actions by Appropriate
Regulatory Agencies, Remedial
Notices by Registered Securities
Associations; and Rule G–17, on
Conduct of Municipal Securities
Activities
December 22, 2010.
I. Introduction
On November 1, 2010, 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 (‘‘Exchange Act’’),1
and Rule 19b–4 thereunder,2 a proposed
rule change which consists of
amendments to Rule G–5, on
disciplinary actions by appropriate
regulatory agencies, and Rule G–17, the
Board’s basic fair practice rule, to apply
the rules to municipal advisors. The
proposed rule change was published for
comment in the Federal Register on
November 18, 2010.3 The Commission
received one comment letter about the
proposed rule change which supported
the proposed rule change.4
This order approves the proposed rule
change.
II. Description of the Proposed Rule
Change
Rule G–5 currently provides that
brokers, dealers, and municipal
securities dealers (‘‘dealers’’) may not
engage in municipal securities activities
in contravention of restrictions imposed
on them by the Commission, a
registered securities association, or
another appropriate regulatory agency.
The purpose of the portion of the
proposed rule change consisting of
amendments to Rule G–5 are a) to
remove a reference to an outdated
National Association of Securities
Dealers (‘‘NASD’’) 5 rule and b) to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 63309
(November 12, 2010), 75 FR 70756 (the
‘‘Commission’s Notice’’).
4 See letter from the National Association of
Independent Public Finance Advisors, dated
December 9, 2010.
5 In 2007, the NASD merged with the New York
Stock Exchange’s regulation committee to form the
Financial Industry Regulatory Authority, or FINRA.
See Securities Exchange Act Release No. 56145
(July 26, 2007), 72 FR 42169 (August 1, 2007).
2 17
PO 00000
Frm 00155
Fmt 4703
Sfmt 4703
82119
provide that municipal advisors and
their associated persons may not engage
in the municipal advisory activities
described in Section 15B(e)(4)(A)(i) and
(ii) of the Act in contravention of
restrictions imposed upon them by the
Commission.
Rule G–17 currently provides that, in
the conduct of its municipal securities
activities, each dealer shall deal fairly
with all persons and shall not engage in
any deceptive, dishonest, or unfair
practice. The purpose of the portion of
the proposed rule change consisting of
amendments to Rule G–17 is to apply
the MSRB’s core fair dealing rule to
municipal advisors in the same manner
that it currently applies to dealers.
A more complete description of the
proposal is contained in the
Commission’s Notice.
The proposed rule change shall be
effective upon Commission approval.
III. Discussion and Commission
Findings
The Commission has carefully
considered the proposed rule change
and finds that the proposed rule change
is consistent with the requirements of
the Exchange Act and the rules and
regulations thereunder applicable to the
MSRB 6 and, in particular, the
requirements of Section 15B(b)(2) of the
Exchange Act 7 and the rules and
regulations thereunder. Section
15B(b)(2)(C) of the Exchange 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 and municipal
financial products, to remove
impediments to and perfect the
mechanism of a free and open market in
municipal securities and municipal
financial products, and, in general, to
protect investors, municipal entities,
obligated persons and the public
interest.8 Section 15B(b)(2)(L) of the
Exchange Act requires, among other
things, that the rules of the MSRB 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
6 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).
7 15 U.S.C. 78o–4(b)(2).
8 15 U.S.C. 78o–4(b)(2)(C).
E:\FR\FM\29DEN1.SGM
29DEN1
srobinson on DSKHWCL6B1PROD with NOTICES
82120
Federal Register / Vol. 75, No. 249 / Wednesday, December 29, 2010 / Notices
persons, provided that there is robust
protection of investors against fraud.9
The Commission believes that the
proposed rule change is consistent with
Section 15B(b)(2) of the Exchange Act,
because it provides that: (i) municipal
advisors shall deal fairly with all
persons and not engage in any
deceptive, dishonest, or unfair practice
and (ii) municipal advisors and their
associated persons shall not conduct
municipal advisory activities in
contravention of restrictions imposed
upon them by the Commission. Such
restrictions are, amongst other things,
consistent with Section 15B(b)(2)(C) of
the Exchange Act because they are
designed to prevent fraudulent and
manipulative acts and practices and to
promote just and equitable principles of
trade. The Commission further believes
that the proposed rule change is
consistent with Section 15B(b)(2)(L) of
the Exchange Act because the proposed
rule change does not impose a
regulatory burden on small municipal
advisors that is not necessary or
appropriate in the public interest and
the proposed rule change is necessary
for the robust protection of investors
against fraud as well as the protection
of municipal entities and obligated
persons. Many municipal advisors play
a key role in the structuring of offerings
of municipal securities and the
preparation of offering documents used
to market those securities to investors.
In some cases, they advise on the
appropriateness of municipal financial
products, including municipal
derivatives, entered into by municipal
entities, the effectiveness of which may
have a substantial impact on the
finances of those municipal entities. In
other cases, they solicit municipal
entities and obligated persons for
investment advisory business with
respect to funds held by or on behalf of
such municipal entity or obligated
person which, if not conducted
according to the highest standards, may
have a substantial effect on the finances
of the municipal entities and obligated
persons that control those funds.
Investors, therefore, have a substantial
interest in municipal advisors
conducting their municipal advisory
activities fairly, not engaging in
fraudulent conduct, and not engaging in
municipal advisory activities contrary to
disciplinary actions imposed by the
Commission.
The proposal will become effective
upon Commission approval.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Exchange Act,10
that the proposed rule change (SR–
MSRB–2010–16), be, and it hereby is,
approved.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–32732 Filed 12–28–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63595; File No. SR–Phlx–
2010–179]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to the
Cancellation Fee
December 22, 2010.
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 December
16, 2010, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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.
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 eliminate the
Cancellation Fee for electronically
delivered customer orders from Section
II, Equity Options Fees, of the Fee
Schedule.
While changes to the Exchange’s Fee
Schedule pursuant to this proposal are
effective upon filing, the Exchange has
designated this proposal to be operative
for trades occurring on and after January
3, 2011.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqtrader.com/
micro.aspx?id=PHLXfilings, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
9 15
U.S.C. 78o–4(b)(2)(L).
10 15 U.S.C. 78s(b)(2).
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02:10 Dec 29, 2010
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend the Exchange’s Fee
Schedule, specifically Section II, Equity
Options Fees, to eliminate the
Cancellation Fee for electronically
delivered customer orders.
Currently, the Exchange assesses a
Cancellation Fee on electronically
delivered Customer order for symbols
other than the select symbols in Section
I of the Fee Schedule 3 and Professional
All-or-None (‘‘AON’’) orders that are
submitted by a member. The Exchange
assesses $2.10 per order for each
cancelled electronically delivered
customer order and $1.10 per order for
each cancelled electronically delivered
AON order submitted by a Professional
in excess of the number of AON orders
submitted by a Professional executed on
the Exchange by a member organization
in a given month.4 A Cancellation Fee
is not assessed in a month in which
fewer than 500 electronically delivered
customer or AON orders submitted by a
Professional, respectively, are
cancelled.5
The Exchange is proposing to amend
the Cancellation Fee in Section II so that
the Cancellation Fee would not apply to
3 Section I of the Fee Schedule titled Rebates and
Fees for Adding and Removing Liquidity in Select
Symbols contains a list of symbols which apply to
Section I of the Fee Schedule (‘‘Select Symbols’’).
4 All customer or AON orders submitted by a
Professional from the same member organization
that are executed in the same series on the same
side of the market at the same price within a 300
second period are aggregated and counted as one
executed customer or AON option order submitted
by a Professional.
5 A Cancellation Fee does not apply to pre-market
cancellations, Complex Orders that are submitted
electronically, unexecuted Immediate-or-Cancel
(‘‘IOC’’) customer orders or cancelled customer
orders that improved the Exchange’s prevailing bid
or offer (‘‘PBBO’’) market at the time the customer
orders were received by the Exchange.
E:\FR\FM\29DEN1.SGM
29DEN1
]]>Agencies
[Federal Register Volume 75, Number 249 (Wednesday, December 29, 2010)]
[Notices]
[Pages 82119-82120]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32732]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63599; File No. SR-MSRB-2010-16]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Order Granting Approval of Amendments to Rule G-5, on
Disciplinary Actions by Appropriate Regulatory Agencies, Remedial
Notices by Registered Securities Associations; and Rule G-17, on
Conduct of Municipal Securities Activities
December 22, 2010.
I. Introduction
On November 1, 2010, 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 (``Exchange Act''),\1\ and Rule 19b-4
thereunder,\2\ a proposed rule change which consists of amendments to
Rule G-5, on disciplinary actions by appropriate regulatory agencies,
and Rule G-17, the Board's basic fair practice rule, to apply the rules
to municipal advisors. The proposed rule change was published for
comment in the Federal Register on November 18, 2010.\3\ The Commission
received one comment letter about the proposed rule change which
supported the proposed rule change.\4\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 63309 (November 12,
2010), 75 FR 70756 (the ``Commission's Notice'').
\4\ See letter from the National Association of Independent
Public Finance Advisors, dated December 9, 2010.
---------------------------------------------------------------------------
This order approves the proposed rule change.
II. Description of the Proposed Rule Change
Rule G-5 currently provides that brokers, dealers, and municipal
securities dealers (``dealers'') may not engage in municipal securities
activities in contravention of restrictions imposed on them by the
Commission, a registered securities association, or another appropriate
regulatory agency. The purpose of the portion of the proposed rule
change consisting of amendments to Rule G-5 are a) to remove a
reference to an outdated National Association of Securities Dealers
(``NASD'') \5\ rule and b) to provide that municipal advisors and their
associated persons may not engage in the municipal advisory activities
described in Section 15B(e)(4)(A)(i) and (ii) of the Act in
contravention of restrictions imposed upon them by the Commission.
---------------------------------------------------------------------------
\5\ In 2007, the NASD merged with the New York Stock Exchange's
regulation committee to form the Financial Industry Regulatory
Authority, or FINRA. See Securities Exchange Act Release No. 56145
(July 26, 2007), 72 FR 42169 (August 1, 2007).
---------------------------------------------------------------------------
Rule G-17 currently provides that, in the conduct of its municipal
securities activities, each dealer shall deal fairly with all persons
and shall not engage in any deceptive, dishonest, or unfair practice.
The purpose of the portion of the proposed rule change consisting of
amendments to Rule G-17 is to apply the MSRB's core fair dealing rule
to municipal advisors in the same manner that it currently applies to
dealers.
A more complete description of the proposal is contained in the
Commission's Notice.
The proposed rule change shall be effective upon Commission
approval.
III. Discussion and Commission Findings
The Commission has carefully considered the proposed rule change
and finds that the proposed rule change is consistent with the
requirements of the Exchange Act and the rules and regulations
thereunder applicable to the MSRB \6\ and, in particular, the
requirements of Section 15B(b)(2) of the Exchange Act \7\ and the rules
and regulations thereunder. Section 15B(b)(2)(C) of the Exchange 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 and municipal financial products, to remove
impediments to and perfect the mechanism of a free and open market in
municipal securities and municipal financial products, and, in general,
to protect investors, municipal entities, obligated persons and the
public interest.\8\ Section 15B(b)(2)(L) of the Exchange Act requires,
among other things, that the rules of the MSRB 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
[[Page 82120]]
persons, provided that there is robust protection of investors against
fraud.\9\
---------------------------------------------------------------------------
\6\ 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).
\7\ 15 U.S.C. 78o-4(b)(2).
\8\ 15 U.S.C. 78o-4(b)(2)(C).
\9\ 15 U.S.C. 78o-4(b)(2)(L).
---------------------------------------------------------------------------
The Commission believes that the proposed rule change is consistent
with Section 15B(b)(2) of the Exchange Act, because it provides that:
(i) municipal advisors shall deal fairly with all persons and not
engage in any deceptive, dishonest, or unfair practice and (ii)
municipal advisors and their associated persons shall not conduct
municipal advisory activities in contravention of restrictions imposed
upon them by the Commission. Such restrictions are, amongst other
things, consistent with Section 15B(b)(2)(C) of the Exchange Act
because they are designed to prevent fraudulent and manipulative acts
and practices and to promote just and equitable principles of trade.
The Commission further believes that the proposed rule change is
consistent with Section 15B(b)(2)(L) of the Exchange Act because the
proposed rule change does not impose a regulatory burden on small
municipal advisors that is not necessary or appropriate in the public
interest and the proposed rule change is necessary for the robust
protection of investors against fraud as well as the protection of
municipal entities and obligated persons. Many municipal advisors play
a key role in the structuring of offerings of municipal securities and
the preparation of offering documents used to market those securities
to investors. In some cases, they advise on the appropriateness of
municipal financial products, including municipal derivatives, entered
into by municipal entities, the effectiveness of which may have a
substantial impact on the finances of those municipal entities. In
other cases, they solicit municipal entities and obligated persons for
investment advisory business with respect to funds held by or on behalf
of such municipal entity or obligated person which, if not conducted
according to the highest standards, may have a substantial effect on
the finances of the municipal entities and obligated persons that
control those funds. Investors, therefore, have a substantial interest
in municipal advisors conducting their municipal advisory activities
fairly, not engaging in fraudulent conduct, and not engaging in
municipal advisory activities contrary to disciplinary actions imposed
by the Commission.
The proposal will become effective upon Commission approval.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\10\ that the proposed rule change (SR-MSRB-2010-16), 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\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32732 Filed 12-28-10; 8:45 am]
BILLING CODE 8011-01-P
