[Federal Register Volume 64, Number 119 (Tuesday, June 22, 1999)]
[Notices]
[Pages 33334-33335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15844]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41528; File No. SR-MSRB-99-4]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Municipal Securities
Rulemaking Board Consisting of Technical Amendments to Rules A-3, A-5,
A-7, A-11 Through A-15, A-17, D-5, G-1 Through G-3, G-5 Through G-9, G-
11 Through G-16, G-18, G-20, G-23, G-27, G-28, G-32, G-34, G-36, G-37
and G-39
June 15, 1999.
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 May 28, 1999, the Municipal Securities Rulemaking Board (``Board''
or ``MSRB'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') a proposed rule change (SR-MSRB-99-4). The
proposed rule change is described in Items I, II, and III below, which
Items have been prepared by the Board. The Board has designated the
proposed rule change as constituting a ``non-controversial'' rule
change under paragraph (f)(6) of Rule 19b-4 under the Act which renders
the proposal effective upon receipt of this filing by the
Commission.\3\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ On May 21, 1999, pursuant to Rule 19b-4(f)(6), the Board
provided the required five day advance notice to the Commission of
its intent to file this proposed rule change. In this notice, the
Board has represented that this proposed rule change: (1) Will not
significantly affect the protection of investors; (2) will not
impose any significant burden on competition; and (3) will not
become operative for thirty days after the date of this filing. See
letter from Ernesto A. Lanza, Associate General Counsel, MSRB, to
Katherine A. England, Assistant Director, Division of Market
Regulation, Commission, dated March 21, 1999.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Board has filed with the Commission a proposed rule change
consisting of technical amendments to rules A-3, A-5, A-7, A-11 through
A-15, A-17, D-5, G-1 through G-3, G-5 through G-9, G-11 through G-16,
G-18, G-20, G-23, G-27, G-28, G-32, G-34, G-36, G-37 and G-39. The
proposed rule change will become operative on July 1, 1999.\4\
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\4\ Id.
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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 Board 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
texts 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
The Board has adopted a series of technical amendments to Rules A-
3, A-5, A-7, A-11, through A-15, A-17, D-5, G-1 through G-3, G-5
through G-9, G-11 through G-16, G-18, G-20, G-23, G-27, G-28, G-32, G-
34, G-36, G-37 and G-39 for the purpose of making certain non-
substantive changes. These changes are designed to:
Ensure uniform usage of the term ``brokers, dealers and
municpal securities dealers'' throughout all Board rules;
Elminate the usage of the term ``municipal securities
business'' in rules other than rules G-37 and G-38;
Make certain grammatical corrections;
Make all rule language gender neutral;
Correct certain cross-references to other Board rules,
SEC rules or federal statutes, including updating the cross-
reference in rule G-8(a)(xi) to Section 203 of the Investment
Advisers Act of 1940 to take into account the reallocation of
regulatory oversight of investment advisers between the Commission
and the states effected by the National Securities Markets
Improvement Act of 1996 and the rules promulgated thereunder;
Ensure uniform references to sections and paragraphs
within Board rules; and
Eliminate duplicative, superfluous or obsolete rule
language, including elimination of the cross-reference and related
language in rule G-12(e)(xvi) regarding subparagraph
[[Page 33335]]
(b)(i)(D) of rule G-33, which subparagraph was previously deleted by
the Board.
The Board believes the proposed rule change is consistent with
Section 15B(b)(2)(C)\5\ of the Act. The Board believes that the
proposed rule change ensures that existing rule provisions are
accurate and understandable.
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\5\ Section 15B(b)(2)(C) states in pertinent part that the rules
of the Board ``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, to remove impediments to and perfect the
mechanism of a free and open market in municipal securities, and, in
general, to protect investors and the public interest.''
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Board 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, because it would apply equally
to all brokers, dealers and municipal securities dealers.
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; (i) Does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
(iii) was provided to the Commission for its review at least five
business days prior to the filing date; and (iv) does not become
operative for 30 days from the date of its filing, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
and Rule 19b-4(f)(6) thereunder and will become operative on July 1,
1999.\6\
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\6\ See supra note 3.
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In particular, the Commission believes the proposed rule change
qualifies as a ``non-controversial filing'' in that the proposed rule
change does not significantly affect the protection of investors or the
public interest and does not impose any significant burden on
competition. At any time within sixty days of the filing of the
proposed rule change, the Commission may summarily abrogate such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Persons making written submissions
should file six copies thereof with Secretary, Securities and Exchange
Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 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 peson, 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 inspection and copying in the Commission's
Public Reference Room. Copies of the filing will also be available for
inspection and copying at the Board's principal offices. All
submissions should refer to File No. SR-MSRB-99-4 and should be
submitted by July 12, 1999.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-15844 Filed 6-21-99; 8:45 am]
BILLING CODE 8010-01-M
