Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Granting Approval of Proposed Rule Change To Amend the MSRB Short-Term Obligation Rate Transparency (SHORT) Subscription Service, 20783-20784 [2011-8798]
Download as PDF
<![CDATA[
Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
20783
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade and, in
general, to protect investors and the
public interest. FINRA believes that the
proposed rule change is consistent with
the clearly erroneous rules of other
SROs and will promote the goal of
transparency and uniformity across
markets concerning reviews of
potentially clearly erroneous executions
in various contexts. Further, FINRA
believes that the proposed changes
enhance the objectivity of decisions
made by FINRA with respect to clearly
erroneous executions.
clearly erroneous transactions.8
Accordingly, the Commission waives
the 30-day operative delay requirement
and designates the proposed rule change
as operative upon filing with the
Commission.
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.
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
FINRA. 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 publicly available. All
submissions should refer to File
Number SR–FINRA–2011–014 and
should be submitted on or before May
4, 2011.
IV. Solicitation of Comments
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Cathy H. Ahn,
Deputy Secretary.
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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 6 and Rule 19b–
4(f)(6)(iii) thereunder.7 FINRA has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because such waiver will allow the pilot
program to continue uninterrupted and
help ensure uniformity among the
national securities exchanges and
FINRA with respect to the treatment of
mstockstill on DSKH9S0YB1PROD with NOTICES
6 15
U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission written
notice of its intent to file the proposed rule change,
along with a brief description and text of the
proposed rule change, at least five business days
prior to the filing of the proposed rule change, or
such shorter time as designated by the Commission.
The Commission notes that FINRA has satisfied this
requirement.
VerDate Mar<15>2010
18:37 Apr 12, 2011
Jkt 223001
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–FINRA–2011–014 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–FINRA–2011–014. 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.,
[FR Doc. 2011–8799 Filed 4–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64201, File No. SR–MSRB–
2011–04]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Order Granting Approval of
Proposed Rule Change To Amend the
MSRB Short-Term Obligation Rate
Transparency (SHORT) Subscription
Service
April 6, 2011.
I. Introduction
On February 10, 2011, 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 to amend the MSRB’s Shortterm Obligation Rate Transparency
subscription service to provide
subscribers with additional information
as well as documents. The proposed
rule change was published for comment
in the Federal Register on March 2,
2011.3 The Commission received no
comment letters about the proposed rule
change. This order approves the
proposed rule change.
II. Description of the Proposed Rule
Change
The Short-term Obligation Rate
Transparency (‘‘SHORT’’) System is a
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 63950
(February 23, 2011), 76 FR 11547 (the
‘‘Commission’s Notice’’).
1 15
8 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
PO 00000
Frm 00161
Fmt 4703
Sfmt 4703
E:\FR\FM\13APN1.SGM
13APN1
20784
Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
facility of the MSRB for the collection
and dissemination of information about
securities bearing interest at short-term
rates. Rule G–34(c), on variable rate
security market information, currently
requires certain dealers to report to the
SHORT System interest rates and
descriptive information about Auction
Rate Securities (‘‘ARS’’) and Variable
Rate Demand Obligations (‘‘VRDOs’’).
All reported information is
disseminated from the SHORT System
to subscribers pursuant to the MSRB
SHORT subscription service 4 and is
posted to the MSRB’s Electronic
Municipal Market Access (‘‘EMMA’’)
Web portal pursuant to the EMMA
short-term obligation rate transparency
service.
On August 20, 2010, the Commission
approved changes to Rule G–34(c) that
will increase the information dealers are
required to report to the SHORT System.
This rule change will add to the SHORT
System documents that define auction
procedures and interest rate setting
mechanisms for ARS and liquidity
facilities for VDROs, information about
orders submitted for an ARS auction,
and additional information about
VRDOs.5 To provide subscribers with
access to these additional items of
information and documents, the
proposed rule change would amend the
SHORT subscription service to include
the additional information and
documents as well as an ARS ‘‘bid to
cover’’ ratio that would be computed by
the SHORT System. A more complete
description of the proposal is contained
in the Commission’s Notice.
The MSRB has requested an effective
date for the proposed rule change of
May 16, 2011.
III. Discussion and Commission
Findings
mstockstill on DSKH9S0YB1PROD with NOTICES
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)(C) of
the Exchange Act 7 and the rules and
regulations thereunder. Section
15B(b)(2)(C) of the Exchange Act
4 The SHORT subscription service became
effective September 30, 2010. See Securities
Exchange Act Release No. 34–62993, September 24,
2010 (File No. SR–MSRB–2010–06).
5 See Securities Exchange Act Release No. 62755,
August 20, 2010 (File No. SR–MSRB–2010–02).
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)(C).
VerDate Mar<15>2010
18:37 Apr 12, 2011
Jkt 223001
requires, among other things, that the
MSRB’s rules shall
MSRB–2011–04), be, and it hereby is,
approved.
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Cathy H. Ahn,
Deputy Secretary.
The Commission believes that the
proposed rule change is consistent with
the Exchange Act in that the
amendments to the SHORT subscription
service would serve as an additional
mechanism by which the MSRB works
toward removing impediments to and
helping to perfect the mechanisms of a
free and open market in municipal
securities. The subscription service
would make the additional information
and documents collected by the SHORT
System available to market participants
for re-dissemination and for use in
creating value-added products and
services. Such re-dissemination and
third-party use would provide market
participants, including investors and the
general public, additional avenues for
obtaining the information collected by
the SHORT System and would make
additional tools available for making
well-informed investment decisions.
Broad access to the information and
documents collected by the SHORT
System, in addition to the public access
through the EMMA Web portal, should
further assist in preventing fraudulent
and manipulative acts and practices by
improving the opportunity for public
investors to access material information
about Auction Rate Securities and
Variable Rate Demand Obligations.
The Commission further believes that
broader re-dissemination and thirdparty use of the information and
documents collected by the SHORT
System should promote a more fair and
efficient municipal securities market in
which transactions are effected on the
basis of material information available
to all parties to such transactions, which
should allow for fairer pricing of
transactions based on a more complete
understanding of the terms of the
securities (including any changes
thereto).
The proposed rule change will
become effective on May 16, 2011, as
requested by the MSRB.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Exchange Act,
that the proposed rule change (SR–
PO 00000
Frm 00162
Fmt 4703
Sfmt 4703
[FR Doc. 2011–8798 Filed 4–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64245; File No. SR–CBOE–
2011–026]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change To Trade
Options on Individual Stock Based
Volatility Indexes and Certain
Exchange-Traded Fund Based
Volatility Indexes
April 7, 2011.
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 March 29,
2011, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘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
CBOE proposes to amend its rules to
list and trade options on individual
stock based volatility indexes and
certain exchange-traded fund based
volatility indexes. CBOE will list a total
of 40 combined individual stock and
exchange-traded fund based volatility
indexes. These are in addition to
options on the CBOE Gold ETF
Volatility Index (‘‘GVZ’’), which has
already been approved for trading by the
Commission. Such volatility index
options must be based on an individual
stock option or exchange-traded fund
option that already trades on CBOE. The
proposed options will be cash-settled
and will have European-style exercise.
The text of the rule proposal is available
on the Exchange’s Web site (https://
www.cboe.org/legal), at the Exchange’s
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\13APN1.SGM
13APN1
]]>Agencies
[Federal Register Volume 76, Number 71 (Wednesday, April 13, 2011)]
[Notices]
[Pages 20783-20784]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8798]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64201, File No. SR-MSRB-2011-04]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Order Granting Approval of Proposed Rule Change To Amend the
MSRB Short-Term Obligation Rate Transparency (SHORT) Subscription
Service
April 6, 2011.
I. Introduction
On February 10, 2011, 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 to amend the MSRB's Short-term
Obligation Rate Transparency subscription service to provide
subscribers with additional information as well as documents. The
proposed rule change was published for comment in the Federal Register
on March 2, 2011.\3\ The Commission received no comment letters about
the proposed rule change. This order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 63950 (February 23,
2011), 76 FR 11547 (the ``Commission's Notice'').
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change
The Short-term Obligation Rate Transparency (``SHORT'') System is a
[[Page 20784]]
facility of the MSRB for the collection and dissemination of
information about securities bearing interest at short-term rates. Rule
G-34(c), on variable rate security market information, currently
requires certain dealers to report to the SHORT System interest rates
and descriptive information about Auction Rate Securities (``ARS'') and
Variable Rate Demand Obligations (``VRDOs''). All reported information
is disseminated from the SHORT System to subscribers pursuant to the
MSRB SHORT subscription service \4\ and is posted to the MSRB's
Electronic Municipal Market Access (``EMMA'') Web portal pursuant to
the EMMA short-term obligation rate transparency service.
---------------------------------------------------------------------------
\4\ The SHORT subscription service became effective September
30, 2010. See Securities Exchange Act Release No. 34-62993,
September 24, 2010 (File No. SR-MSRB-2010-06).
---------------------------------------------------------------------------
On August 20, 2010, the Commission approved changes to Rule G-34(c)
that will increase the information dealers are required to report to
the SHORT System. This rule change will add to the SHORT System
documents that define auction procedures and interest rate setting
mechanisms for ARS and liquidity facilities for VDROs, information
about orders submitted for an ARS auction, and additional information
about VRDOs.\5\ To provide subscribers with access to these additional
items of information and documents, the proposed rule change would
amend the SHORT subscription service to include the additional
information and documents as well as an ARS ``bid to cover'' ratio that
would be computed by the SHORT System. A more complete description of
the proposal is contained in the Commission's Notice.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 62755, August 20,
2010 (File No. SR-MSRB-2010-02).
---------------------------------------------------------------------------
The MSRB has requested an effective date for the proposed rule
change of May 16, 2011.
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)(C) 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 shall
---------------------------------------------------------------------------
\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)(C).
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.
The Commission believes that the proposed rule change is consistent
with the Exchange Act in that the amendments to the SHORT subscription
service would serve as an additional mechanism by which the MSRB works
toward removing impediments to and helping to perfect the mechanisms of
a free and open market in municipal securities. The subscription
service would make the additional information and documents collected
by the SHORT System available to market participants for re-
dissemination and for use in creating value-added products and
services. Such re-dissemination and third-party use would provide
market participants, including investors and the general public,
additional avenues for obtaining the information collected by the SHORT
System and would make additional tools available for making well-
informed investment decisions. Broad access to the information and
documents collected by the SHORT System, in addition to the public
access through the EMMA Web portal, should further assist in preventing
fraudulent and manipulative acts and practices by improving the
opportunity for public investors to access material information about
Auction Rate Securities and Variable Rate Demand Obligations.
The Commission further believes that broader re-dissemination and
third-party use of the information and documents collected by the SHORT
System should promote a more fair and efficient municipal securities
market in which transactions are effected on the basis of material
information available to all parties to such transactions, which should
allow for fairer pricing of transactions based on a more complete
understanding of the terms of the securities (including any changes
thereto).
The proposed rule change will become effective on May 16, 2011, as
requested by the MSRB.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act, that the proposed rule change (SR-MSRB-2011-04), be, and
it hereby is, approved.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8798 Filed 4-12-11; 8:45 am]
BILLING CODE 8011-01-P
