[Federal Register Volume 68, Number 134 (Monday, July 14, 2003)]
[Notices]
[Pages 41667-41668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17708]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48136; File No. SR-MSRB-2003-05]


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

July 8, 2003.
    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 July 1, 2003, 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-2003-05). 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 
technical amendments to Form G-40, on electronic mail contacts. The 
proposed rule change will become operative on August 4, 2003. Below is 
the text of the proposed rule change. Proposed new language is 
italicized; proposed deletions are in brackets.
* * * * *

Form G-40

Electronic Mail Contacts

MSRB Registration Number

-----------------------------------------------------------------------

Check one:

--Original Form

--Amended Form

 Name of Dealer:-------------------------------------------------------

 Date:-----------------------------------------------------------------

The dealer named above designates (name)------as its Primary 
Electronic Mail Contact for purposes of electronic communications 
with the MSRB. This Primary Contact person is either a Series 53-
registered municipal securities principal or a Series 51-regsitered 
municipal fund securities limited principal with the dealer.

E-Mail Address of Primary Contact:------

Phone Number of Primary Contact:------

Individual CRD Number of Primary Contact (NASD member firms only):--
----

(Optional): The dealer named above designates (name)------as its 
Optional Electronic Mail Contact.

E-mail Address of Optional Contact:------

Phone Number of Optional Contact:------

Name and title of person preparing this Form:------

 Signature:------------------------------------------------------------

 Telephone number:-----------------------------------------------------

New Forms Must be Mailed to

MSRB, 1900 Duke Street, Suite 600, Alexandria, VA 22314.
[Updates to the Form Shall be Submitted] Forms May Be Amended 
Electronically [Via the G-40 Log-In On] By Logging on to the MSRB'S Web 
Site (www.msrb.org) and Using the Primary Contact's User ID and 
Password to Change Information Relating to That Person, or Using the 
Optional Contact's User ID and Password To Change Information Relating 
to That Person.
* * * * *

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 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

1. Purpose
    On June 6, 2002, the SEC approved MSRB Rule G-40, on electronic 
mail (``E-mail'') contacts, and 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\ Rule G-40 requires each broker, dealer and 
municipal securities dealer (collectively referred to as ``dealers'') 
to use 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 (the ``Primary Contact''). This E-mail contact must 
be a registered municipal securities principal with the dealer.\4\
---------------------------------------------------------------------------

    \3\ Release No. 34-46043 (June 6, 2002) 67 FR 40762. The Rule 
became effective on September 4, 2002.
    \4\ Dealers also have the option of appointing a second contact 
person (the ``Optional Contact'').
---------------------------------------------------------------------------

    Previously, the MSRB provided that dealers whose only municipal 
securities activities consisted of transactions in municipal fund 
securities (Section 529 college savings plans and local government 
investment pools) could appoint either a general securities principal 
(Series 24) or an investment company/variable contracts limited 
principal (Series 26) as their Primary Contact until March 31, 2003.\5\ 
In addition to serving as a Primary Contact pursuant to Rule G-40, a 
Series 24 or 26 principal was permitted, pursuant to Rule G-3, to 
supervise the dealer's activities with respect to municipal fund 
securities until March 31, 2003. This transition period was meant to 
accommodate such dealers until the new Series 51 examination for 
municipal fund securities limited principals became available.\6\ As of 
April 1, 2003, every dealer is required, pursuant to Rule G-3 on 
professional qualifications, to have either a municipal fund securities 
limited principal (Series 51) or a municipal securities principal 
(Series 53), as appropriate, even if the dealer's only municipal 
securities activities consist of transactions in municipal fund 
securities. In addition, every dealer is required to have either a 
Series 51 or Series 53 principal as their Primary Contact. The proposed 
rule change

[[Page 41668]]

clarifies that, for purposes of Rule G-40, the dealer's Primary Contact 
may be either a Series 53-registered municipal securities principal or 
a Series 51-registered municipal fund securities limited principal. 
Thus, dealers who previously listed a Series 24 or 26 principal as 
their Primary Contact on Form G-40 should amend their form 
electronically by visiting the MSRB's Web site (http://www.msrb.org) 
and listing either a Series 53 or 51 principal as their new Primary 
Contact. Of course, no amendment is necessary if this is the same 
person, i.e., the Series 24 or 26 previously listed has taken and 
passed the Series 53 or 51 examination.
---------------------------------------------------------------------------

    \5\ See MSRB Notices 2003-1 (January 9, 2003) and 2003-6 
(February 28, 2003).
    \6\ The Series 51 examination has been available since January 
2, 2003, and is administered through NASD's PROCTOR system.
---------------------------------------------------------------------------

    The proposed rule change also clarifies that a dealer may amend its 
Form G-40 electronically by logging on to the MSRB's web site. Finally, 
the amendments require that dealers note whether the form they are 
submitting is an original or amended Form G-40; this will facilitate 
the MSRB's processing of such forms.
2. Basis
    The MSRB has adopted the proposed rule change pursuant to Section 
15B(b)(2)(I) of the Exchange 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 
August 4, 2003, 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 \7\ and Rule 19b-
4(f)(6) thereunder.\8\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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, 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-2003-05 and should be 
submitted by August 4, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-17708 Filed 7-11-03; 8:45 am]
BILLING CODE 8010-01-P