[Federal Register Volume 59, Number 132 (Tuesday, July 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16751]
[[Page Unknown]]
[Federal Register: July 12, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34296; File No. SR-MSRB-94-3]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Municipal Securities
Rulemaking Board Relating to Procedures in Connection With the
Administration of Board Rules
July 1, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on April
14, 1994, the Municipal Securities Rulemaking Board (``MSRB'' or
``Board'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the self-regulatory
organization. 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 Board is filing herewith a proposed rule change to establish a
method by which the Board may, from time to time, prescribe and amend
procedures relating to the administration of Board rules.
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 self-regulatory organization
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.
The text of the proposed rule change is as follows (additions are
italicized):\1\
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\1\The Commission notes that the reference to ``publication'' in
proposed rule A-8(c) refers to publication in the MSRB Reports.
Telephone conversation between Diane Klinke, MSRB, and Elizabeth
MacGregor, Branch Chief, Commission, on June 30, 1994.
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Rule A-8. Rulemaking Procedures
(a) (no change.)
(b) (no change.)
(c) Procedures.
The Board may from time to time prescribe and amend procedures
relating to the administration of Board rules. Such procedures and
amendments may be approved by the Board pursuant to rule A-4(d).
Each broker, dealer and municipal securities dealer shall be
subject to such procedures and amendments thereto in the same manner as
the broker, dealer and municipal securities dealer is subject to the
rules of the Board.
Procedures and amendments thereto shall become effective no earlier
than 10 business days after publication of such procedures and
amendments.
(d) Access to Board Rules and Other Action. (No change.)
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Board believes that the proposed rule change would increase the
efficiency of both the implementation and operation of Board rules
involving the submission of information to the Board. The
``procedures'' contemplated by the proposed rule change would concern
only matters of a technical nature. The proposed rule change further
provides that any procedures, or amendment thereto, may be approved by
the Board without the necessity of a formal Board meeting, pursuant to
existing rule A-4(d). Rule A-4(d) provides a mechanism by which action,
``other than action on proposed rules or proposed amendment to rules of
the Board,'' may be taken by written consent of the Board or by
telephone poll of all Board members.\2\ Of course, the Board will
continue to file any matters with the Commission, as required, pursuant
to Section 19(b)(1) of the Act, and Rule 19b-4 thereunder.\3\
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\2\Rule A-4(d) provides that: Action by the Board, other than
action on proposed rules or proposed amendments to rules of the
Board, may be taken without a meeting by written consent of the
Board setting forth the action so taken or by telephone poll of all
members of the Board, provided that, in the case of action taken by
telephone, the Board, at a meeting, or the Chairman of the Board
authorizes the action to be taken by such means. The Executive
Director shall transmit to each Board member, as soon as practicable
after a telephone poll is taken, a written statement setting forth
the questions or questions with respect to which the telephone poll
was taken and the results of the telephone poll. Such statements
shall also be entered in the minutes of the next Board meeting. In
the case of action taken without a meeting by written consent or
telephone poll, an affirmative vote of a majority of the whole Board
is required.
\3\The Commission notes that the present proposal is intended to
expedite Board consideration of matters that are technical in
nature, and is not intended to affect the types of proposals that
the Board files with the Commission pursuant to Section 19(b)(1) of
the Act and Rule 19(b)(4) thereunder. Telephone conversation, supra
note 1.
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On April 7, 1994, the Commission approved Board rule G-37,
concerning political contributions and prohibitions on municipal
securities business.\4\ This rule, among other things, requires dealers
to submit certain information ``to the Board on Form G-37, in
accordance with Board rule G-37 filing procedures, quarterly with due
dates determined by the Board. * * *''\5\ In its filing with the
Commission, the Board noted that it ``is in the process of developing
appropriate rule G-37 filing procedures to allow for public access to
the information to be submitted on Form G-37, as well as indexing,
record storage, etc. * * *''\6\ In the present filing, the Board
discussed these rule G-37 filing procedures as an example of the types
of procedures to which the instant proposed rule change would apply.
The Board will submit to the Commission another proposed rule change
relating to rule G-37 filing procedures.\7\
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\4\Securities Exchange Act Release No. 33868 (April 7, 1994), 59
FR 17621 (April 13, 1994).
\5\Rule G-37(e)(ii).
\6\File No. SR-MSRB-94-2, at page 16.
\7\See Securities Exchange Act Release No. 34027 (May 9, 1994),
59 FR 25136 (notice of filing and order granting accelerated
approval of File No. SR-MSRB-94-04). In addition, in order to assist
dealer compliance with the filing requirements of rule G-37, the
Board intends to develop an informal ``Procedures Manual'' for the
relevant forms and procedures, and periodically to update or to
amend the manual. The manual also would include forms and other
filing information regarding rule G-36 on delivery of official
statements and advance refunding documents to the Board. In the
future, the Board also may adopt procedures regarding technical
matters relating to the Board's Continuing Disclosure Information
system, as well as any transaction reporting system the Board may
develop.
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2. Statutory Basis
The Board has adopted the proposed rule change pursuant to section
15B(b)(2)(C) of the Act which provides that the Board'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, 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. * * *
In addition, Section 15B(b)(2)(I) authorizes the Board to adopt rules
which provide for the operation and administration of the Board.
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, since 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
The foregoing rule change constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule of the Board and therefore has become
effective pursuant to Section 19(b)(3)(A) of the Act and subparagraph
(e) of Rule 19b-4 thereunder. At any time within 60 days of the filing
of such 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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
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 inspection and copying at the
Commission's Public Reference Room. Copies of the filing will also be
available for inspection and copying at the principal office of the
MSRB. All submissions should refer to File No. SR-MSRB-94-3 and should
be submitted by August 2, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 94-16751 Filed 7-11-94; 8:45 am]
BILLING CODE 8010-01-M
