[Federal Register Volume 66, Number 155 (Friday, August 10, 2001)]
[Notices]
[Pages 42243-42244]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20083]


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SECURITIES AND EXCHANGE COMMISISON

[Release No. 34-44643; File No. MSRB-2001-03]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board (MSRB); Order Granting Approval to Proposed Rule Change Relating 
to the Establishment of an Optional Procedure for Electronic 
Submissions of Required Materials Under Rule G-36, on Delivery of 
Official Statement, Advance Refunding Documents and Forms 36(OS) and G-
36(ARD) to the MSRB

August 1, 2001.
    On June 7, 2001, the Municipal Securities Rulemaking Board 
(``MSRB'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to establish an optional procedure for electronic 
submissions of required materials under G-36, on delivery of official 
statements, advance refunding documents and Forms G-36 (OS) and G-36 
(ARD) to the MSRB.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on June 28, 2001.\3\ The Commission received no comments on 
the proposal. This order approves the proposal.
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    \3\ See Release No. 34-44458 (June 20, 2001), 66 FR 34495.
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    The proposed rule change consists of (i) an amendment to the MSRB 
facility currently known as the Official Statement and Advance 
Refunding Document--Paper Submission system (the ``OS/ARD Facility'') 
of the MUNICIPAL SECURITIES INFORMATION LIBRARY system

[[Page 42244]]

(``MSIL'') \4\ and (ii) an amendment to Rule G-36. In its 
current form, Rule G-36 requires that a broker, dealer or municipal 
securities dealer that acts as managing or sole underwriter for most 
primary offerings send the official statement and Form G-36(OS) to the 
MSIL system within certain time frames set forth in the 
rule.\5\ In the case of an advance refunding, the managing or sole 
underwriter must send both the prepared advance refunding documentation 
and Form G-36(ARD) to the MSIL system.\6\
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    \4\ Municipal Securities Information Library and MSIL are 
registered trademarks of the MSRB.
    \5\ For primary offerings subject to Exchange Act Rule 15c2-12, 
the final official statement and Form G-36(OS) must be sent to the 
MSIL system within one business day after receipt of the 
official statement from the issuer, but no later than ten business 
days after the sale date of the offering. For most primary offerings 
exempt from Rule 15c2-12 for which an official statement in final 
form is being prepared, such official statement and Form G-36(OS) 
must be sent tot he MSIL system by the later of one 
business day after the closing of the underwriting or one business 
day after receipt of the official statement from the issuer. Rule G-
36(c)(iii) provides exemptions from the rule requirements for 
certain limited types of offerings.
    \6\ The advance refunding document and Form G-36(ARD) must be 
sent to the MSIL system within five business days after 
the closing of the underwriting.
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    In November 1998, the MSRB published an interpretive release 
describing requisite standards for dealers to satisfy document delivery 
obligations by means of electronic communications.\7\ Since publication 
of the notice, the MSRB has encouraged modernization of disclosure 
practices in the primary and secondary municipal securities market. 
This proposed rule change implements an optional system of electronic 
submission by underwriters of official statements, advance refunding 
documents and Form G-36 (ARD) to the MSIL system. 
Additionally, the proposed change amends rule G-36 in order to 
effectuate this electronic system. The new system will allow 
underwriters to chose between documents submissions in either 
electronic or paper form.
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    \7\ See Rule G-32 Interpretation--Notice Regarding Electronic 
Delivery and Receipt of Information by Brokers, Dealers and 
Municipal Securities Dealers, November 20, 1998, MSRB Rule Book, 
(January 1, 2001) at 161.
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    The Commission must approve a proposed MSRB rule change if the 
Commission finds the proposal is consistent with the requirements of 
the Act and the rules and regulations thereunder that govern the 
MSRB.\8\ The Commission finds that the proposed rule change meets this 
standard. In particular, the Commission finds that the proposed rule is 
consistent with the requirements of Section 15B(b)(2)(C) of the Act,\9\ 
which requires, in pertinent part, that the MSRB'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, settling, processing 
information with respect to, and facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national system, and, in general, to protect 
investors and the public interest.
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    \8\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78o-4(b)(2)(C).
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    It Is Therefore Ordered, pursuant to Section 19(b)(2) of the Act 
\10\, that the proposed rule change (File No. MSRB-2001-03) be, and it 
hereby is approved.
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    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-20083 Filed 8-9-01; 8:45 am]
BILLING CODE 8010-01-M