[Federal Register Volume 74, Number 112 (Friday, June 12, 2009)]
[Notices]
[Pages 28081-28083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-13810]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60053; File No. SR-MSRB-2009-07]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to the Termination of the CDINet System

June 5, 2009.
    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 May 29, 2009, 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 substantially prepared by the 
MSRB. The MSRB has filed the proposal as a ``non-controversial'' rule 
change pursuant to Section 19(b)(3)(A)(iii) of the Act,\3\ and Rule 
19b-4(f)(6) 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 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The MSRB is proposing to terminate the MSRB's CDINet system for 
material event notices received pursuant to Exchange Act Rule 15c2-12 
on July 1, 2009. The text of the proposed rule change is available on 
the MSRB's Web site at (http://www.msrb.org/msrb1/sec.asp), at the 
MSRB's principal office, and at the Commission's Public Reference Room. 
The full text of MSRB facilities is available at http://www.msrb.org/msrb1/rulesandforms.

[[Page 28082]]

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 proposed rule change would terminate the MSRB's CDINet system 
for material event notices received pursuant to Exchange Act Rule 15c2-
12 on July 1, 2009. CDINet is operated as a system of the MSRB's 
Municipal Securities Information Library system. The Commission has 
previously approved the establishment of a continuing disclosure 
service of the MSRB's Electronic Municipal Market Access system 
(``EMMA''), which will be placed into operation on July 1, 2009 and 
will replace CDINet.\5\
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    \5\ \\ See Exchange Act Release No. 59061 (December 5, 2008), 73 
FR 75778 (December 12, 2008) (File No. SR-MSRB-2008-05).
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    In addition, the MSRB expects to commence operation of a pilot 
phase of the continuing disclosure service (the ``continuing disclosure 
pilot'') on June 1, 2009. The continuing disclosure pilot would permit 
voluntary submission and public dissemination of continuing disclosure 
documents prior to the commencement of operation of the permanent EMMA 
continuing disclosure service. The MSRB would view electronic 
submissions of material event notices to the continuing disclosure 
pilot as having been submitted to the MSRB for purposes of any existing 
continuing disclosure undertakings entered into consistent with 
Exchange Act Rule 15c2-12 pursuant to which an issuer or obligated 
person has undertaken to provide such documents to the MSRB. The MSRB 
urges, but does not require, submitters currently using CDINet in 
connection with their material event notice filings to instead make 
submissions on or after June 1, 2009 to the continuing disclosure 
pilot, solely in electronic format, upon the launch of the continuing 
disclosure pilot until such time as all submissions must be made to the 
permanent EMMA continuing disclosure service.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with 
Section 15B(b)(2)(C) of the Act,\6\ which provides that the MSRB's 
rules shall:
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    \6\ 15 U.S.C. 78o-4(b)(2)(C).

    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 
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the public interest.

    The MSRB believes that the proposed rule change is consistent with 
the Act. The replacement of CDINet with the continuing disclosure 
service of EMMA will remove impediments to and help perfect the 
mechanisms of a free and open market in municipal securities, assist in 
preventing fraudulent and manipulative acts and practices, and will in 
general promote investor protection and the public interest by ensuring 
significantly more efficient submissions of a broader, more 
comprehensive array of continuing disclosure documents to the MSRB and 
the broader, more efficient dissemination of such continuing disclosure 
documents to the public through the EMMA Web portal and to subscribers.

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

    The Board 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. CDINet and the subscription 
service provided thereunder will be replaced on July 1, 2009 by the 
continuing disclosure service of EMMA as a source of continuing 
disclosure documents to the general public through the EMMA Web portal 
and to subscribers through a continuing disclosure subscription 
service. The continuing disclosure subscription service will make 
continuing disclosure documents available on an equal basis without 
imposing restrictions on subscribers from re-disseminating such 
documents or otherwise offering value-added services and products based 
on such documents on terms determined by each subscriber.

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 on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not: (i) Significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days after the date of filing (or such shorter time as the Commission 
may designate if consistent with the protection of investors and the 
public interest), the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \7\ and subparagraph (f)(6) 
of Rule 19b-4 thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). The MSRB has satisfied the five-day 
pre-filing requirement of Rule 19b-4(f)(6)(iii).
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    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.\9\
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    \9\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
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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-2009-07 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-MSRB-2009-07. This file 
number should be included on the

[[Page 28083]]

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-2009-07 and should be submitted on or before July 
6, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-13810 Filed 6-11-09; 8:45 am]
BILLING CODE 8010-01-P