[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