[Federal Register Volume 72, Number 187 (Thursday, September 27, 2007)]
[Notices]
[Pages 54959-54960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-19023]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56479; File No. SR-MSRB-2007-02]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing and Immediate Effectiveness of Amendment to 
Rule A-3, on Membership on the Board

September 20, 2007.
    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 August 9, 2007, the Municipal Securities Rulemaking Board (``MSRB'' 
or ``Board''), filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the MSRB. The MSRB 
filed an amendment to the proposed rule change on September 17, 2007. 
The MSRB has filed the proposal pursuant to section 19(b)(3)(A) of the 
Act,\3\ and Rule 19b-4(f)(3) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change, as 
amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The MSRB is filing with the Commission a proposed rule change 
consisting of an amendment to Rule A-3, on membership on the Board, to 
permit a Board member to succeed him or herself in office for a second 
consecutive term. The text of the proposed rule change is available on 
the MSRB's Web site (http://www.msrb.org), at the MSRB, and at the 
Commission's Public Reference Room.

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 
text 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
    The Board has been reviewing its Administrative Rules and by-laws 
to ensure that they are consistent with current good corporate 
governance practices. Rule A-3, on membership on the Board, currently 
provides, among other things, that no member of the Board may succeed 
himself or herself in office and no broker-dealer representative or 
bank representative may be succeeded by any person associated with the 
broker, dealer or municipal securities dealer with which the member was 
associated at the expiration of his or her term. The Board has 
determined to modify this provision in the rule (as well as in By-Law 
Article 3) to permit a sitting Board member to serve a second 
consecutive term, through the standard nomination and election process. 
The rule amendment does not establish a lifetime limit on the number of 
terms a person could serve but does limit a person to serving two terms 
in succession. Sitting and former Board members would be required to 
undertake the same nomination and election process applicable to new 
applicants for Board membership. The rule amendment also maintains the 
existing prohibition on having a representative of a dealer or bank 
immediately succeed the expiring term of another representative of the 
same dealer or bank, other than in the case of a sitting Board member 
succeeding him or herself.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with 
section 15B(b)(2)(I) of the Act,\5\ which authorizes the MSRB to adopt 
rules that provide for the operation and administration of the MSRB. 
The MSRB believes that the proposed rule change is consistent with this 
provision because it is concerned solely with the operation and 
administration of the MSRB.
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    \5\ 15 U.S.C. 78o-4(b)(2)(I).
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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 that is not necessary or appropriate in 
furtherance of the purposes of the Act since it only applies to the 
operation and administration of the MSRB.

[[Page 54960]]

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

    The proposed rule change has become effective pursuant to section 
19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(3) thereunder \7\ because 
it is concerned solely with the operation and administration of the 
MSRB. At any time within 60 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.\8\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(3).
    \8\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C). 
For purposes of calculating the 60-day abrogation period, the 
Commission considers the period to commence on September 17, 2007, 
the date that the MSRB filed Amendment No. 1.
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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. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-MSRB-2007-02 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-MSRB-2007-02. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 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, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of the MSRB. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-MSRB-2007-02 and should be 
submitted on or before October 18, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
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    \9\17 CFR 200.30-3(a)(12).
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[FR Doc. E7-19023 Filed 9-26-07; 8:45 am]
BILLING CODE 8010-01-P