[Federal Register Volume 68, Number 83 (Wednesday, April 30, 2003)]
[Notices]
[Pages 23170-23171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10602]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47721; File No. SR-MSRB-2003-01]


Self-Regulatory Organizations; Order Granting Approval of a 
Proposed Rule Change by the Municipal Securities Rulemaking Board 
Relating to the Establishment of an Optional Procedure for Electronic 
Submission of Forms G-37/G-38 and G-37x Under Rule G-37, on Political 
Contributions and Prohibitions on Municipal Securities Business, and 
Rule G-38, on Consultants

April 23, 2003.
    On March 21, 2003, the Municipal Securities Rulemaking Board 
(``MSRB'') filed with the Securities & Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (the ``Exchange Act'') \1\, and Rule 19b-4 
thereunder,\2\ a proposed rule change (File No. SR-MSRB-2003-01). The 
MSRB's rule change amends Rule G-37, on political contributions and 
prohibitions on municipal securities business, and Rule G-38, on 
consultants, by establishing an optional procedure for electronic 
submission of Forms G-37/G-38 and G-37x.
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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 notice and comment in 
the Federal Register on April 1, 2003.\3\ The Commission did not 
receive comment letters on the proposed rule change. This order 
approves the proposed rule change.
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    \3\ See Release No. 34-47565 (Mar. 25, 2003), 68 FR 15782.
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I. Description of the Proposed Rule Change

    Currently, Rules G-37 and G-38 require brokers, dealers and 
municipal securities dealers (``dealers'') to submit to the MSRB on 
Form G-37/G-38 certain information regarding political contributions to 
issuer officials, payments to state and local political parties, 
issuers with which the dealer has engaged in municipal securities 
business and consultants engaged by the dealer to obtain municipal 
securities business. Certain dealers that wish to be exempted from the 
Form G-37/G-38 submission requirement must submit Form G-37x to the 
MSRB.
    Under the rule change, the MSRB is implementing an optional system 
of electronic submission by dealers of Forms G-37/G-38 and G-37x to the 
MSRB. In order to effectuate this electronic system, the MSRB is 
amending rules G-37 and G-38.\4\ The rule change will become effective 
on the later of June 30, 2003 or 30 days after Commission approval. The 
MSRB expects that the new electronic submission system will become 
operational concurrently therewith.
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    \4\ Technical amendments to the final sentence of Rule G-38(e) 
and to Rule G-38(e)(iii) are also made to conform language to usage 
throughout MSRB rules.
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II. Summary of Comments

    The Commission did not receive comment letters relating to the 
proposed rule change.

[[Page 23171]]

III. Discussion and Commission Findings

    Section 19(b) of the Exchange Act \5\ requires the Commission to 
approve the proposed rule change filed by the MSRB if the Commission 
finds that the proposed rule change is consistent with the requirements 
of the Exchange Act and the rules and regulations thereunder.
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    \5\ 15 U.S.C. 78s(b).
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    The Commission has reviewed carefully the proposed rule change and 
finds that the proposed rule change is consistent with the requirements 
of the Exchange Act and the rules and regulations thereunder, which 
govern the MSRB.\6\ The language of Section 15B(b)(2)(C) of the Act 
requires that the MSRB's rules must be designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principals 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 in 
municipal securities, and, in general, to protect investors and the 
public interest.\7\ The rule change is consistent with the Exchange Act 
in that it amends an existing MSRB rule to allow for an alternative 
efficient process of submitting required information by dealers to the 
MSRB.
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    \6\ Additionally, in approving this rule, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition and capital formation. 15 U.S.C. 78c(f).
    \7\ 715 U.S.C. 78o-4(b)(2)(C).
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IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Exchange Act,\8\ that the proposed rule change (File No. SR-MSRB-2003-
01) be and hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 03-10602 Filed 4-29-03; 8:45 am]
BILLING CODE 8010-01-M