[Federal Register Volume 73, Number 140 (Monday, July 21, 2008)]
[Notices]
[Pages 42388-42389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16589]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58154; File No. SR-MSRB-2008-03]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Order Granting Approval of Proposed Rule Change, as Modified by 
Amendment No. 1, Relating to Rule G-11, on New Issue Syndicate 
Practices, and Rule G-12, on Uniform Practice

July 15, 2008.
    On March 18, 2008, 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 consisting of amendments to Rule-11, on new issue 
syndicate practices, and Rule G-12, on uniform practice. The proposed 
rule change was published for comment in the Federal Register on April 
18, 2008.\3\ The Commission received no comment letters about the 
proposed rule change. On June 26, 2008, the MSRB filed Amendment No. 1 
to the proposed rule change.\4\ This order approves the proposed rule 
change as modified by Amendment No. 1.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 57659 (April 14, 
2008), 73 FR 21166 (April 18, 2008) (``Commission's Notice'').
    \4\ Amendment No. 1 clarifies a broker, dealer or municipal 
securities dealer's existing obligations and does not add any new 
requirements. This is a technical amendment and is not subject to 
notice and comment.
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    The proposed rule change consists of amendments to Rule G-11 and 
Rule G-12 that (a) delete Rule G-12(i); (b) consolidate the remaining 
syndicate practice provisions of Rule G-12 into Rule G-11; (c) delete 
the syndicate-related sections of Rule G-12; and (d) make minor 
technical corrections to Rule G-11. A full description of the proposal 
is contained in the Commission's Notice.
    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to the MSRB \5\ and, in particular, the 
requirements of Section 15B(b)(2)(C) of the Act \6\ and the rules and 
regulations thereunder. Section 15B(b)(2)(C) of the Act requires, among 
other things, 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, clearing, settling, processing 
information with respect to, and facilitating transactions in municipal 
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\ In particular, the 
Commission finds that the proposed rule change is consistent with the 
Act because it will facilitate transactions in municipal securities and 
protect investors and the public interest by creating a consolidated 
rule that seeks to avoid inadvertent rule violations and clarifies and 
modernizes its rules to bring them into line with the realities of 
current market practice without compromising investor protection.
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    \5\ 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).
    \6\ 15 U.S.C. 78o-4(b)(2)(C).
    \7\ Id.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the

[[Page 42389]]

proposed rule change (SR-MSRB-2008-03), as modified by Amendment No. 1, 
be, and it hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-16589 Filed 7-18-08; 8:45 am]
BILLING CODE 8010-01-P