[Federal Register Volume 63, Number 2 (Monday, January 5, 1998)]
[Notices]
[Pages 280-282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-46]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39488; File No. SR-MSRB-97-11]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Municipal Securities
Rulemaking Board Relating To Fee for Copies of Form G-37/G-38 in
Computer CD-ROM Format
December 23, 1997.
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 December
16, 1997, 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-
97-11), to establish fees for copies of Form G-37/G-38 in computer CD-
ROM format. 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 form 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
fee relating to the public dissemination, in computer CD-ROM format, of
copies of Form G-37/G-38 submitted to the Board in each calendar
quarter pursuant to
[[Page 281]]
rule G-37, on political contributions and prohibitions on municipal
securities business, and rule G-38, on consultants. The Board is
establishing a price of $10.00 (plus delivery or postage charges and
any applicable sales tax) for each CD-ROM containing copies of Form G-
37/G-38 and a price of $11.50) plus delivery or postage charges and any
applicable sales tax) for each such CD-ROM that is bundled with a CD-
ROM containing the software necessary to access and read the forms.
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
texts of these statements may be examined at the places specified in
Item IV below. The Board has prepared summaries, set forth in Section
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
1. Purpose
Rule G-37, on political contributions and prohibitions on municipal
securities business, and rule G-38, on consultants, require brokers,
dealers and municipal securities dealers (``dealers'') to send two
copies of Form G-37/G-38 to the Board for each calendar quarter. The
Board currently maintains one copy of each Form G-37/G-38 at its Public
Access Facility in Alexandria, Virginia \1\, where it is available to
the public for review and photocopying.\2\ The Board has previously
stated its intention to seek to expand the access and services
available to the public with respect to these forms.\3\ The Board has
begun posting copies of Form G-37/G-38 sent to the Board in recent
quarters on the Boards Internet Web site (http://www.msrb.org), where
members of the public may download such forms to their computers for
review and printing. The Board does not currently charge a fee for such
access.
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\1\ The Board's Public Access Facility is located at 1640 King
Street, Suite 300, Alexandria, Virginia 22314. Documents may be
viewed from 9:00 a.m. to 4:30 p.m.
\2\ The second copy of Form G-37/G-38 is maintained off-site for
back-up purposes.
\3\ File No. SR-MSRB-94-4 at page 2.
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In furtherance of the Board's stated intention of expanding access
to Forms G-37/G-38, the Board will make Forms G-37/G-38 available to
the public in computer CD-ROM format. The Board has successfully
conducted testing with the writing of all second quarter 1997 and third
quarter 1997 Forms G-37/G-38 received by the Board to computer CD-ROM
in a format that will permit reading and printing using a commercially
available document reader software program.\4\ The Board expects to
produce one or more CD-ROMs each quarter containing all Forms G-37/G-38
received from dealers for the preceding quarter.
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\4\ The Board will be using Adobe Acrobat Reader, which
currently is available free of charge on the Internet and available
at a nominal cost on CD-ROM. The Board reserves the right to format
its CD-ROM Form G-37/G-38 files for use with other software programs
in the future.
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The Board is establishing a price of $10.00 (plus delivery or
postage charges and any applicable sales tax) for each CD-ROM
containing copies of Form G-37/G-38 and a price of $11.50 (plus
delivery or postage charges and any applicable sales tax) for each CD-
ROM that is bundled with a CD-ROM containing the software necessary to
access and read the forms on a computer.\5\ The Board proposes to
establish these CD-ROM fees to defray its cost of producing and
disseminating the materials. 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, in furtherance of the
objectives of rules G-37 and G-38.
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\5\ Once a user acquires a copy of the document reader software
program, either in a one-time purchase from the Board bundled with a
Form G-37/G-38 CD-ROM or from other commercially available sources,
such user would not need to make future purchases from the Board of
the higher-priced bundled package.
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2. Basis
The Board believes that 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 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.
The Board believes that making Forms G-37/G-38 more widely
available to the public on computer CD-ROM format will further the
purpose and intent of rules G-37 and G-38 to ensure that the high
standards and integrity of the municipal securities industry are
maintained, to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to perfect a free
and open market and to protect investors and the public interest. The
Board believes that the fees established for the CD-ROM materials are
fair and reasonable in light of the costs associated with disseminating
the information, and such materials will be 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 since the fees will apply
equally to all persons.
C. Self-Regulatory Organization's Statement of 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
91(b)(3)(A) of the Act 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
[[Page 282]]
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-97-
11 and should be submitted by January 26, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Jonathan G. Katz,
Secretary.
[FR Doc. 98-46 Filed 1-2-98; 8:45 am]
BILLING CODE 8010-01-M