[Federal Register Volume 64, Number 119 (Tuesday, June 22, 1999)]
[Notices]
[Pages 33334-33335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15844]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41528; File No. SR-MSRB-99-4]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Municipal Securities 
Rulemaking Board Consisting of Technical Amendments to Rules A-3, A-5, 
A-7, A-11 Through A-15, A-17, D-5, G-1 Through G-3, G-5 Through G-9, G-
11 Through G-16, G-18, G-20, G-23, G-27, G-28, G-32, G-34, G-36, G-37 
and G-39

June 15, 1999.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 28, 1999, the Municipal Securities Rulemaking Board (``Board'' 
or ``MSRB'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') a proposed rule change (SR-MSRB-99-4). The 
proposed rule change is described in Items I, II, and III below, which 
Items have been prepared by the Board. The Board has designated the 
proposed rule change as constituting a ``non-controversial'' rule 
change under paragraph (f)(6) of Rule 19b-4 under the Act which renders 
the proposal effective upon receipt of this filing by the 
Commission.\3\ The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On May 21, 1999, pursuant to Rule 19b-4(f)(6), the Board 
provided the required five day advance notice to the Commission of 
its intent to file this proposed rule change. In this notice, the 
Board has represented that this proposed rule change: (1) Will not 
significantly affect the protection of investors; (2) will not 
impose any significant burden on competition; and (3) will not 
become operative for thirty days after the date of this filing. See 
letter from Ernesto A. Lanza, Associate General Counsel, MSRB, to 
Katherine A. England, Assistant Director, Division of Market 
Regulation, Commission, dated March 21, 1999.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Board has filed with the Commission a proposed rule change 
consisting of technical amendments to rules A-3, A-5, A-7, A-11 through 
A-15, A-17, D-5, G-1 through G-3, G-5 through G-9, G-11 through G-16, 
G-18, G-20, G-23, G-27, G-28, G-32, G-34, G-36, G-37 and G-39. The 
proposed rule change will become operative on July 1, 1999.\4\
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    \4\ Id.
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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 
texts 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 Board has adopted a series of technical amendments to Rules A-
3, A-5, A-7, A-11, through A-15, A-17, D-5, G-1 through G-3, G-5 
through G-9, G-11 through G-16, G-18, G-20, G-23, G-27, G-28, G-32, G-
34, G-36, G-37 and G-39 for the purpose of making certain non-
substantive changes. These changes are designed to:

     Ensure uniform usage of the term ``brokers, dealers and 
municpal securities dealers'' throughout all Board rules;
     Elminate the usage of the term ``municipal securities 
business'' in rules other than rules G-37 and G-38;
     Make certain grammatical corrections;
     Make all rule language gender neutral;
     Correct certain cross-references to other Board rules, 
SEC rules or federal statutes, including updating the cross-
reference in rule G-8(a)(xi) to Section 203 of the Investment 
Advisers Act of 1940 to take into account the reallocation of 
regulatory oversight of investment advisers between the Commission 
and the states effected by the National Securities Markets 
Improvement Act of 1996 and the rules promulgated thereunder;
     Ensure uniform references to sections and paragraphs 
within Board rules; and
     Eliminate duplicative, superfluous or obsolete rule 
language, including elimination of the cross-reference and related 
language in rule G-12(e)(xvi) regarding subparagraph

[[Page 33335]]

(b)(i)(D) of rule G-33, which subparagraph was previously deleted by 
the Board.
    The Board believes the proposed rule change is consistent with 
Section 15B(b)(2)(C)\5\ of the Act. The Board believes that the 
proposed rule change ensures that existing rule provisions are 
accurate and understandable.
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    \5\ Section 15B(b)(2)(C) states in pertinent part that the rules 
of the Board ``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.''
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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, because 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

    Because the foregoing proposed rule change; (i) Does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
(iii) was provided to the Commission for its review at least five 
business days prior to the filing date; and (iv) does not become 
operative for 30 days from the date of its filing, the proposed rule 
change has become effective pursuant to Section 19(b)(3)(A) of the Act 
and Rule 19b-4(f)(6) thereunder and will become operative on July 1, 
1999.\6\
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    \6\ See supra note 3.
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    In particular, the Commission believes the proposed rule change 
qualifies as a ``non-controversial filing'' in that the proposed rule 
change does not significantly affect the protection of investors or the 
public interest and does not impose any significant burden on 
competition. 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, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with Secretary, Securities and Exchange 
Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 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 peson, 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-99-4 and should be 
submitted by July 12, 1999.

    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. 99-15844 Filed 6-21-99; 8:45 am]
BILLING CODE 8010-01-M