[Federal Register Volume 60, Number 118 (Tuesday, June 20, 1995)]
[Notices]
[Pages 32187-32188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15041]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35848; File No. SR-MSRB-95-7]


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 
its Official Statement/Advance Refunding Document Subsystem of the 
Municipal Securities Information Library

June 14, 1995.
    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 May 24, 
1995, 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-95-7). 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 MSRB is filing herewith a proposed rule change to establish a 
price of $7,000 (plus delivery or postage charges) for its 1994 
document collection relating to its Official Statement/Advance 
Refunding Document (``OS/ARD'') subsystem of the Municipal Securities 
Information Library (``MSIL'') system (the ``1994 backlog fee'').\1\ 
The collection consists of imaged documents on magnetic tapes. The 
proposed 1994 backlog 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 
[[Page 32188]] system fees annually to ensure that dissemination costs 
are paid for from user fees.

    \1\ Municipal Securities Information Library and MSIL are 
trademarks of the Board. The MSIL system, which was approved in 
Securities Exchange Act Release No. 29298 (June 13, 1991) 56 FR 
28194, 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 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 
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

    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, is made available electronically 
and in paper form to market participants and information vendors.\2\ 
The annual subscription fee for daily tapes of images of current year 
documents from the OS/ARD system is $12,000.\3\ The fees for backlog 
document collections are substantially less than fees for an annual 
subscription 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.\4\

    \2\ Rule G-36 requires underwriters to provide copies of final 
official statements and advance refunding documents within certain 
specified time frames 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) 57 FR 4657. The Board 
does not intend at this time to change the OS/ARD annual 
subscription fee.
    \4\ Currently, two to three business day's worth of documents 
are on each tape in an annual collection. The backlog fee plus 
delivery costs for 1993 is $9,000; 1992 is $7,000; 1991 is $8,000; 
1990 is $6,000. These fees were filed with the Commission. See 
Securities Exchange Act Release No. 32482 (June 16, 1993) 58 FR 
34115 (1992 and 1990 fees); Securities Exchange Act Release No. 
34602 (Aug. 25, 1994) 59 FR 45319 (1993 and 1991 fees). The fees for 
the backlog collections vary based on the number of documents 
received and processed in any given year.
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    In its prior filings with the Commission, the Board stated that it 
intends to use its general revenues for collection, 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.\5\ 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.

    \5\ See Securities Exchange Act Release No. 29298 (June 13, 
1991) 56 FR 28194.
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    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 1994 backlog fee is 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 nondiscriminatory 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.

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 Rule 19b-4(e) thereunder because the 
proposal is ``establishing or changing a due, fee or other charge.'' 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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 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-95-7 and should be 
submitted by [insert date 21 days from the date of publication].

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\

    \6\ 17 CFR 200.30-3(a)(12)
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-15041 Filed 6-19-95; 8:45 am]
BILLING CODE 8010-01-M