Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Implementation Date of the Requirement To Report the Contractual Dollar Prices at Which Transactions Were Executed for Inter-Dealer Transactions, 72897-72899 [2012-29454]
Download as PDF
Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Notices
72897
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
The Exchange has neither solicited
nor received comments on the proposed
rule change.
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–BOX–2012–018 on the
subject line.
[Release No. 34–68328; File No. SR–MSRB–
2012–10]
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(6) thereunder.7 Because the
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
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 8 and Rule
19b–4(f)(6)(iii) thereunder.9
The Exchange notes that the proposal
is substantially similar to a rule change
proposed by the Chicago Board Options
Exchange Incorporated (‘‘CBOE’’),
which was recently approved by the
Commission.10 The Exchange believes
that this proposed rule change does not
raise any new or unique substantive
issues from those raised in the CBOE
proposal.
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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
6 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and the text of 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. The
Exchange has satisfied this pre-filing requirement.
10 See Securities Exchange Act Release No. 68164
(November 6, 2012), 77 FR 67723 (November 13,
2012) (Order Approving CBOE Proposed Rule
Change to Increase the Maximum Term for LEAPS
to Fifteen Years) (SR–CBOE–2012–071).
mstockstill on DSK4VPTVN1PROD with
7 17
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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–BOX–2012–018. This file
number should be included on the
subject line if email 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
10:00 a.m. and 3:00 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–BOX–
2012–018 and should be submitted on
or before December 27, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–29453 Filed 12–5–12; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Extend the Implementation
Date of the Requirement To Report the
Contractual Dollar Prices at Which
Transactions Were Executed for InterDealer Transactions
November 30, 2012.
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
29, 2012, the Municipal Securities
Rulemaking Board (the ‘‘MSRB’’) filed
with the Securities and Exchange
Commission (the ‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the MSRB. The MSRB has designated
the proposed rule change as constituting
a ‘‘non-controversial’’ rule change under
paragraph (f)(6) of Rule 19b–4 under the
Act,3 which renders the proposal
effective upon receipt of this filing by
the Commission. 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 proposing to extend to
March 29, 2013, the implementation
date of a provision in Rule G–14, on
reports of sales or purchases, including
the Rule G–14 RTRS Procedures, and
amendments to the Real-Time
Transaction Reporting System (‘‘RTRS’’)
information system and subscription
service pertaining to a requirement for
brokers, dealers and municipal
securities dealers (collectively
‘‘dealers’’) to report for inter-dealer
transactions the contractual dollar price
at which the transaction was executed.
The text of the proposed rule change
is available on the MSRB’s Web site at
www.msrb.org/Rules-andInterpretations/SEC-Filings/2012Filings.aspx, at the MSRB’s principal
office, and at the Commission’s Public
Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
11 17
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / 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 MSRB has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
2. Statutory Basis
mstockstill on DSK4VPTVN1PROD with
1. Purpose
The MSRB proposes to extend the
implementation date of a requirement
for brokers, dealers and municipal
securities dealers (collectively
‘‘dealers’’) to report for inter-dealer
transactions the contractual dollar price
at which the transaction was executed
to March 29, 2013. The Commission
previously approved the change to the
transaction reporting procedures on
March 20, 2012 (the ‘‘March 20, 2012
Approval Order’’).4
Inter-dealer transaction reporting is
accomplished by both the purchasing
and selling dealers submitting
information about the transaction to the
Depository Trust and Clearing
Corporation’s (‘‘DTCC’’) Real-Time
Trade Matching System (‘‘RTTM’’).
Information submitted to RTTM is
forwarded to RTRS for trade reporting.
Requiring dealers to report for interdealer transactions the contractual
dollar price at which the transaction
was executed, in addition to the
information currently reported, would
provide RTRS with an additional data
point to use in its evaluation of which
dollar price should be disseminated
from RTRS for price transparency
purposes.
The original proposal had an
implementation date of November 5,
2012, but was postponed due to the
effects of Hurricane Sandy on DTCC’s
systems. Due to ongoing effects of
Hurricane Sandy on DTCC’s systems,
DTCC will be unable to make necessary
system changes to allow dealers to
report the contractual dollar price on
inter-dealer trades to RTRS by
November 30, 2012, as required by the
March 20, 2012 Approval Order. To
4 See SEC Release No. 34–66622 (March 20,
2012), 77 FR 17557 (March 26, 2012) (File No. SR–
MSRB–2012–01).
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16:42 Dec 05, 2012
Jkt 229001
provide sufficient time for DTCC to
make system changes, the proposed rule
change would extend the
implementation date of the provision to
a date no later than March 29, 2013.
MSRB is working with DTCC to
implement this change as soon as
practicable and will provide dealers and
affected parties with at least ten
business days of advance notice of the
implementation date. Given that many
dealers already have made system and
procedural preparations for this change
and the desire to implement this change
as soon as practicable, the MSRB
believes that ten business days of
advance notice of the implementation
date for this provision would be
sufficient.
The MSRB believes that the proposed
rule change is consistent with Section
15B(b)(2)(C) of the Act, which provides
that the MSRB’s rules shall:
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 MSRB believes that the proposed
rule change is consistent with Section
15B(b)(2)(C) of the Act because it
extends the implementation date of a
provision in a previously approved rule
filing as a result of the effects of
Hurricane Sandy on certain computer
systems.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The MSRB does not believe that the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act. The proposed rule
change extends the implementation date
of a provision in a previously approved
rule filing as a result of the effects of
Hurricane Sandy on certain computer
systems.
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 on the proposed
rule change.
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
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 5 and Rule 19b–
4(f)(6) thereunder.6
A proposed rule change filed under
Rule 19b-4(f)(6) normally does not
become operative for 30 days after the
date of filing.7 However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
MSRB requested that the Commission
waive the 30-day operative delay, as
specified in Rule 19b–4(f)(6)(iii),8 which
would make the rule change effective
and operative upon filing.
The MSRB believes that extending the
implementation date of the requirement
that, for inter-dealer transactions,
dealers must report the contractual
dollar price at which the transaction
was executed to March 29, 2013, will
prevent dealers from falling into noncompliance with the requirement. The
requirement was originally to be
implemented by November 30, 2012,
under the terms of the March 20, 2012
Approval Order. The MSRB represents
that its inability to implement the
reporting requirement by November 30,
2012 is due to the ongoing effects of
Hurricane Sandy on DTCC’s systems,
which are outside the control of the
dealers and the MSRB.9
The Commission believes that waiver
of the 30-day operative delay is
consistent with investor protection and
the public interest. Extending the
implementation date of the requirement
without delay could reduce potential
confusion among dealers regarding
compliance with the requirement and
5 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
7 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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 date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
8 17 CFR 240.19b–4(f)(6)(iii).
9 Email from Ronald W. Smith, Corporate
Secretary and Senior Legal Associate, MSRB, to
Derek James, SEC Division of Trading and Markets,
Office of Market Supervision, dated November 29,
2012.
6 17
E:\FR\FM\06DEN1.SGM
06DEN1
Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Notices
should clarify to investors the date by
which this requirement will be
implemented. Therefore, the
Commission designates the proposed
rule change as operative upon filing
with the Commission.10
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
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
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the MSRB. 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–
2012–10, and should be submitted on or
before December 27, 2012.
IV. Solicitation of Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
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 email to rulecomments@sec.gov. Please include File
Number SR–MSRB–2012–10 on the
subject line.
mstockstill on DSK4VPTVN1PROD with
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–2012–10. This file
number should be included on the
subject line if email 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
10 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).
VerDate Mar<15>2010
16:42 Dec 05, 2012
Jkt 229001
[FR Doc. 2012–29454 Filed 12–5–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68325; File No. SR–FINRA–
2012–051]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Waiver of
Certain TRACE Late Trade Reporting
Fees Due to Hurricane Sandy
November 30, 2012.
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 26, 2012, the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) 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 FINRA. FINRA has
designated the proposed rule change as
‘‘establishing or changing a due, fee or
other charge’’ under Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon receipt of this
filing by the Commission. The
Commission is publishing this notice to
11 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
72899
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
FINRA is proposing to waive certain
Trade Reporting and Compliance Engine
(‘‘TRACE’’) late trade reporting fees
specified in FINRA Rule 7730(b)(3) due
to disruptions in normal business
operations as a result of Hurricane
Sandy.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA 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,
FINRA 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. FINRA 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
Transactions in TRACE-Eligible
Securities, as defined in FINRA Rule
6710(a), are required to be reported to
FINRA within the time frames specified
in FINRA Rule 6730(a). FINRA Rule
7730(b) sets forth the charges to be
assessed against each member
responsible for reporting such
transactions. FINRA Rule 7730(b)(3)
provides that members shall be charged
a $3.00 per transaction late fee for those
transactions that are not timely reported
‘‘as/of’’ as required by the FINRA Rule
6700 Series. Due to significant
disruptions in normal business
operations as a result of Hurricane
Sandy or Superstorm Sandy (‘‘Sandy’’)
that made landfall along the midAtlantic Coast on October 29, 2012,
FINRA proposes to waive such TRACE
late trade reporting fees if a firm in an
area affected by Sandy 5 reported certain
5 An affected area means any area, such as a state
or a county, that the President declared a major
disaster or for which the President signed a federal
emergency declaration as a result of Sandy (e.g., the
state, or certain counties, of Connecticut, New York,
New Jersey, Delaware, District of Columbia,
Continued
E:\FR\FM\06DEN1.SGM
06DEN1
Agencies
[Federal Register Volume 77, Number 235 (Thursday, December 6, 2012)]
[Notices]
[Pages 72897-72899]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29454]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68328; File No. SR-MSRB-2012-10]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Extend the Implementation Date of the Requirement To Report
the Contractual Dollar Prices at Which Transactions Were Executed for
Inter-Dealer Transactions
November 30, 2012.
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 29, 2012, the Municipal Securities Rulemaking Board
(the ``MSRB'') filed with the Securities and Exchange Commission (the
``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the MSRB. The
MSRB has designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under
the Act,\3\ which renders the proposal effective upon receipt of this
filing by the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The MSRB is proposing to extend to March 29, 2013, the
implementation date of a provision in Rule G-14, on reports of sales or
purchases, including the Rule G-14 RTRS Procedures, and amendments to
the Real-Time Transaction Reporting System (``RTRS'') information
system and subscription service pertaining to a requirement for
brokers, dealers and municipal securities dealers (collectively
``dealers'') to report for inter-dealer transactions the contractual
dollar price at which the transaction was executed.
The text of the proposed rule change is available on the MSRB's Web
site at www.msrb.org/Rules-and-Interpretations/SEC-Filings/2012-Filings.aspx, at the MSRB's principal office, and at the Commission's
Public Reference Room.
[[Page 72898]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the MSRB included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The MSRB has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The MSRB proposes to extend the implementation date of a
requirement for brokers, dealers and municipal securities dealers
(collectively ``dealers'') to report for inter-dealer transactions the
contractual dollar price at which the transaction was executed to March
29, 2013. The Commission previously approved the change to the
transaction reporting procedures on March 20, 2012 (the ``March 20,
2012 Approval Order'').\4\
---------------------------------------------------------------------------
\4\ See SEC Release No. 34-66622 (March 20, 2012), 77 FR 17557
(March 26, 2012) (File No. SR-MSRB-2012-01).
---------------------------------------------------------------------------
Inter-dealer transaction reporting is accomplished by both the
purchasing and selling dealers submitting information about the
transaction to the Depository Trust and Clearing Corporation's
(``DTCC'') Real-Time Trade Matching System (``RTTM''). Information
submitted to RTTM is forwarded to RTRS for trade reporting. Requiring
dealers to report for inter-dealer transactions the contractual dollar
price at which the transaction was executed, in addition to the
information currently reported, would provide RTRS with an additional
data point to use in its evaluation of which dollar price should be
disseminated from RTRS for price transparency purposes.
The original proposal had an implementation date of November 5,
2012, but was postponed due to the effects of Hurricane Sandy on DTCC's
systems. Due to ongoing effects of Hurricane Sandy on DTCC's systems,
DTCC will be unable to make necessary system changes to allow dealers
to report the contractual dollar price on inter-dealer trades to RTRS
by November 30, 2012, as required by the March 20, 2012 Approval Order.
To provide sufficient time for DTCC to make system changes, the
proposed rule change would extend the implementation date of the
provision to a date no later than March 29, 2013. MSRB is working with
DTCC to implement this change as soon as practicable and will provide
dealers and affected parties with at least ten business days of advance
notice of the implementation date. Given that many dealers already have
made system and procedural preparations for this change and the desire
to implement this change as soon as practicable, the MSRB believes that
ten business days of advance notice of the implementation date for this
provision would be sufficient.
2. Statutory Basis
The MSRB believes that the proposed rule change is consistent with
Section 15B(b)(2)(C) of the Act, which provides that the MSRB's rules
shall:
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 MSRB believes that the proposed rule change is consistent with
Section 15B(b)(2)(C) of the Act because it extends the implementation
date of a provision in a previously approved rule filing as a result of
the effects of Hurricane Sandy on certain computer systems.
B. Self-Regulatory Organization's Statement on Burden on Competition
The MSRB does not believe that the proposed rule change will impose
any burden on competition not necessary or appropriate in furtherance
of the purposes of the Act. The proposed rule change extends the
implementation date of a provision in a previously approved rule filing
as a result of the effects of Hurricane Sandy on certain computer
systems.
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 on the
proposed rule change.
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 \5\ and Rule 19b-
4(f)(6) thereunder.\6\
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing.\7\ However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The MSRB requested that the Commission waive the
30-day operative delay, as specified in Rule 19b-4(f)(6)(iii),\8\ which
would make the rule change effective and operative upon filing.
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\7\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the Exchange to give the Commission written
notice of the Exchange's 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 date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
\8\ 17 CFR 240.19b-4(f)(6)(iii).
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The MSRB believes that extending the implementation date of the
requirement that, for inter-dealer transactions, dealers must report
the contractual dollar price at which the transaction was executed to
March 29, 2013, will prevent dealers from falling into non-compliance
with the requirement. The requirement was originally to be implemented
by November 30, 2012, under the terms of the March 20, 2012 Approval
Order. The MSRB represents that its inability to implement the
reporting requirement by November 30, 2012 is due to the ongoing
effects of Hurricane Sandy on DTCC's systems, which are outside the
control of the dealers and the MSRB.\9\
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\9\ Email from Ronald W. Smith, Corporate Secretary and Senior
Legal Associate, MSRB, to Derek James, SEC Division of Trading and
Markets, Office of Market Supervision, dated November 29, 2012.
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The Commission believes that waiver of the 30-day operative delay
is consistent with investor protection and the public interest.
Extending the implementation date of the requirement without delay
could reduce potential confusion among dealers regarding compliance
with the requirement and
[[Page 72899]]
should clarify to investors the date by which this requirement will be
implemented. Therefore, the Commission designates the proposed rule
change as operative upon filing with the Commission.\10\
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\10\ 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).
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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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
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 email to rule-comments@sec.gov. Please include
File Number SR-MSRB-2012-10 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-2012-10. This file
number should be included on the subject line if email 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
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the MSRB. 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-2012-10, and should be
submitted on or before December 27, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-29454 Filed 12-5-12; 8:45 am]
BILLING CODE 8011-01-P