[Federal Register Volume 67, Number 158 (Thursday, August 15, 2002)]
[Notices]
[Pages 53370-53373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20766]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46324; File No. SR-MSRB-2002-08]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Municipal Securities 
Rulemaking Board Relating to Electronic Mail Contacts, Operative on 
September 8, 2002

August 8, 2002.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on August 7, 2002, 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-2002-08). 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 relating to a 
technical amendment to its Rule G-40 and Form G-40, on electronic mail 
contacts. The proposed rule change will become operative on September 
8, 2002. Below is the text of the proposed rule

[[Page 53371]]

change. Proposed new language is italicized; proposed deletions are in 
brackets.
Rule G-40. Electronic Mail Contacts.
    (a)(i) Each broker, dealer or municipal securities dealer shall 
appoint a[n] Primary Electronic Mail Contact to serve as the official 
contact person for purposes of electronic mail communication between 
the broker, dealer or municipal securities dealer and the MSRB. Each 
Primary Electronic Mail Contact shall be a registered municipal 
securities principal of the broker, dealer or municipal securities 
dealer.
    (ii) Each broker, dealer or municipal securities dealer may appoint 
an Optional Electronic Mail Contact for purposes of electronic mail 
communication between the broker, dealer or municipal securities dealer 
and the MSRB.
    (b)(i) Upon completion of its Rule A-12 submissions and assignment 
of an MSRB Registration Number, each broker, dealer or municipal 
securities dealer shall submit to the MSRB by mail a completed Form G-
40 setting forth, in the prescribed format, the following information:
    (A) The name of the broker, dealer or municipal securities dealer, 
and the date.
    (B) The MSRB Registration Number of the broker, dealer or municipal 
securities dealer.
    (C) The name of the Primary Electronic Mail Contact, and his/her 
electronic mail address, telephone number and Individual Central 
Registration Depository (CRD) Number.
    (D) The name of the Optional Electronic Mail Contact, if any, and 
his/her electronic mail address and telephone number.
    (E) The name, title, signature and telephone number of the person 
who prepared the form.
    (ii) A broker, dealer or municipal securities dealer may change the 
name of its Electronic Mail Contacts or other information previously 
provided by electronically submitting to the MSRB an amended Form G-40.
    (c) Each broker, dealer or municipal securities dealer shall update 
information on its Electronic Mail Contacts periodically as requested 
and prescribed by the MSRB and shall submit such information 
electronically to the MSRB.
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[[Page 53372]]

[GRAPHIC] [TIFF OMITTED] TN15AU02.001

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[[Page 53373]]

II. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    In its filing with the Commission, the MSRB 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 MSRB 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) On June 6, 2002, the Commission approved new MSRB Rule G-40, on 
electronic mail (``e-mail'') contacts, and new Form G-40, as well as 
related amendments to Rule G-8, on books and records, and Rule G-9, on 
preservation of records.\3\ The new Rule requires each broker, dealer 
and municipal securities dealer (collectively referred to as 
``dealers'') to use new Form G-40 to appoint an e-mail contact to serve 
as the official contact person for purposes of electronic communication 
between the dealer and the MSRB. This E-mail contact must be a 
registered municipal securities principal with the dealer. Dealers have 
the option of appointing a second contact who, under the rule as 
originally adopted, also must be a municipal securities principal with 
the dealer.
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    \3\ Release No. 34-46043 (June 6, 2002) 67 FR 40762. The 
effective date of the Rule is September 4, 2002. The MSRB requested 
a 90-day delayed effective date in order to give current dealers the 
time necessary to comply with the new requirements.
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    The MSRB recently sent letters to its current list of dealers 
requesting that they complete new Form G-40. In response to this 
mailing, the MSRB received numerous phone calls from dealers that have 
only one municipal securities principal and wish to appoint a second 
(optional) e-mail contact who is not a principal. Accordingly, the MSRB 
has determined to amend Rule G-40 and Form G-40 to accommodate these 
dealers by eliminating the requirement that the second contact must be 
a municipal securities principal. The amendment also distinguishes 
between the two e-mail contacts by referring to the official contact 
person as the ``Primary Contact'' and the secondary person as the 
``Optional Contact.'' \4\
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    \4\ Paragraph (a) of Rule G-40 requires that each dealer appoint 
an ``Electronic Mail Contact'' to serve as its official contact 
person for purposes of communicating with the MSRB, and that such 
person be a registered municipal securities principal of the dealer. 
Paragraph (b) requires that each dealer, upon completion of its Rule 
A-12 submissions and assignment of an MSRB Registration Number, 
submit by mail to the MSRB a completed Form G-40 setting forth the 
dealer's name, date, MSRB Registration Number, name of its E-mail 
contact and his/her e-mail address, telephone number and Individual 
Central Registration Depository (CRD) Number, and the name, title, 
signature and telephone number of the person who prepared the Form. 
Paragraph (b) also provides that the dealer may change its E-mail 
contact or other information previously submitted by amending its 
Form G-40 electronically. Paragraph (c) requires each dealer to 
update information on its E-mail contacts as periodically requested 
and prescribed by the MSRB and to submit such information 
electronically to the MSRB.
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    (b) The MSRB has adopted the proposed rule change pursuant to 
Section 15B(b)(2)(I) of the Act, which authorizes the MSRB to adopt 
rules that provide for the operation and administration of the MSRB. 
The MSRB also believes that the proposed rule change will facilitate 
effective electronic communications between dealers and the MSRB.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The MSRB 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 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 SEC for its review at least five business 
days prior to the filing date; and (iv) does not become operative until 
September 8, 2002, which is more than thirty (30) days after the date 
of its filing, the MSRB has submitted this proposed rule change to 
become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 
19b-4(f)(6) thereunder.\5\ In particular, the MSRB 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 60 days of the 
filing of this proposed rule change, the Commission may summarily 
abrogate this 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A); 17 CFR 240.19b-4(f)(6).
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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 the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
Copies of the submissions, 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 offices. All 
submissions should refer to File No. SR-MSRB-2002-08 and should be 
submitted by September 5, 2002.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated Authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-20766 Filed 8-14-02; 8:45 am]
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