[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