[Federal Register Volume 59, Number 169 (Thursday, September 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21572]
[[Page Unknown]]
[Federal Register: September 1, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34602; File No. SR-MSRB-94-11]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Municipal Securities
Rulemaking Board Relating to Fees for Backlog Document Collections of
the MSIL System
August 25, 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 August
9, 1994, the Municipal Securities Rulemaking Board (``Board'' or
``MSRB'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') a proposed rule change (File No. SR-MSRB-
94-11). The proposed rule change is described in Items I, II, and III
below, which Items have been prepared by the Board . 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
prices for backlog document collections relating to its Official
Statement/Advance Refunding Document (``OS/ARD'') subsystem of the
Municipal Securities Information LibraryTM (MSILTM) system\1\
(hereinafter referred to as the ``proposed rule change''). The
collections consist of imaged documents on magnetic tapes. The Board
will charge $9,000 (plus postage or delivery charges) for a collection
of 1993 documents, and $8,000 (plus postage or delivery charges) for a
collection of 1991 documents. The proposed fees are structured to
defray the Board's dissemination costs. This fee structure is
consistent with the Board's MSIL fee policy, which is that the Board
does not expect or intend to make a profit from the MSIL system, and
reviews the MSIL system fees annually to ensure that dissemination
costs are paid for from user fees. The Board will file any new or
modified fees with the Commission pursuant to Section 19(b)(1) of the
Act.
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\1\The MSIL system, which was approved in Securities Exchange
Act Release No. 29298 (June 13, 1991), is a central facility through
which information about municipal securities is collected, stored
and disseminated.
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II. Self-Regulatory Organization's Statement of the Terms of
Substance of 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
text 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
(a) The OS/ARD subsystem, which was activated on April 20, 1992, is
a central electronic facility through which information collected and
stored pursuant to MSRB rule G-36\2\ is made available electronically
and in paper form to market participants and information vendors. The
annual subscription fee for daily tapes of images of current year
documents from the OS/ARD system is $12,000.\3\ Document collections
covering 1990 and 1992 are already available for fees of $6,000 and
$7,000 respectively (plus postage or delivery charges).\4\ The fees for
backlog document collections are substantially less than fees for
annual subscriptions because an annual subscription requires the Board
to send a computer tape to the subscriber each business day, but a
backlog collection requires fewer tapes.\5\ The fee for the 1991
collection is less than that for the 1993 collection, because fewer
documents were received and processed in 1991.
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\2\Rule G-36 requires underwriters to provide copies of final
official statements and advance refunding documents within certain
specified timeframes for most new issues issued since January 1,
1990.
\3\This fee was filed with the Commission. See Securities
Exchange Act Release No. 30306 (Jan. 30, 1992). The Board does not
intend at this time to change the OS/ARD annual subscription fee.
\4\These fees were filed with the Commission. See Securities
Exchange Act Release No. 32482 (June 16, 1993).
\5\Currently, two to three business days' worth of documents are
on each tape in an annual collection.
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In its prior filings with the Commission, the Board stated that it
intends to use its general revenues for collecting, indexing and
storing the OS/ARD subsystem's documents, and that the costs of
producing and disseminating magnetic tapes (and paper copies) would be
paid for by user fees.\6\ Thus, the Board is establishing fees to
defray its cost of disseminating backlog tapes. This is consistent with
the Commission's policy that self-regulatory organizations' fees be
based on expenses incurred in providing information to the public. The
Board believes that employing cost-based prices is in the public
interest since it will ensure that a complete collection of vital
information will be available, at fair and reasonable prices, for the
life of the municipal securities.
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\6\Securities Exchange Act Release No. 28197 (July 12, 1990).
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(b) The Board believes the proposed rule change is consistent with
Section 15B(b)(2)(C) of the Act, which requires, in pertinent part,
that the Board'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, 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.
The MSIL system is designed to increase the integrity and efficiency of
the municipal securities market by, among other things, helping to
ensure that the price charged for an issue in the secondary market
reflects all available official information about that issue. The Board
believes that the fees are fair and reasonable in light of the costs
associated with disseminating the information, and that the services
provided by the MSIL system are available on reasonable and non-
discriminatory terms to any interested person.
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 the fees will apply
equally to all persons.
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 rule change is effective upon filing, pursuant to Section
19(b)(3)(A) of the Act and subparagraph (e) of Rule 19b-4 thereunder,
because the proposal is ``establishing or changing a due, fee or other
charge.'' At any time within 60 days of filing of the proposed rule
change, the Commission may summarily abrogate the 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 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-94-11 and should be
submitted by September 22, 1994.
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. 94-21572 Filed 8-31-94; 8:45 am]
BILLING CODE 8010-01-M
