[Federal Register Volume 76, Number 94 (Monday, May 16, 2011)]
[Notices]
[Pages 28249-28251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-11841]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64455; File No. SR-MSRB-2011-06]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing and Immediate Effectiveness of Rule Change 
Consisting of Fee Changes to Its Historical Transaction Data Reports

May 10, 2011.
    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 April 27, 2011, the Municipal Securities Rulemaking Board 
(``Board'' or ``MSRB'') filed with the Securities and Exchange 
Commission (``SEC'' or ``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the MSRB. 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 Municipal Securities Rulemaking Board (``MSRB'' or ``Board'') 
has filed with the SEC a proposed rule change relating to the MSRB's 
Historical Transaction Data Reports (the MSRB ``Historical Data 
Product''). The proposed rule change would increase the fee for a one 
calendar year data set of the Historical Data Product from $600 to 
$2,500, which the MSRB believes is a fair and reasonable fee for such 
municipal securities transaction data. Additionally, the MSRB proposes 
a one-time set-up fee of $2,000 to be charged to each Historical Data 
Product purchaser to partially offset administrative costs (the ``set-
up fee''); provided, however, that the MSRB would not impose the set-up 
fee on any prior purchaser of the Historical Data Product or current 
subscriber to an MSRB Subscription Service, including the MSRB Real-
Time Transaction Data Subscription Service, Comprehensive Transaction 
Data Subscription Service,

[[Page 28250]]

Short-Term Obligation Rate Transparency Subscription Service, Primary 
Market Disclosure Subscription Service, or Continuing Disclosure 
Subscription Service.\3\ The MSRB has filed the proposal as a fee 
change, pursuant to Section 19(b)(3)(A)(ii) \4\ of the Act and Rule 
19b-4(f)(2) thereunder,\5\ which renders the proposal effective upon 
filing with the Commission.
---------------------------------------------------------------------------

    \3\ The MSRB could, in its discretion and consistent with the 
stated policy for certain other subscription services offered by the 
MSRB, waive the Historical Data Product set-up fee for not-for-
profit organizations, academic institutions, or other entities or 
persons who desire the service for non-profit or research purposes.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the MSRB's Web 
site at http://www.msrb.org/Rules-and-Interpretations/SEC-Filings/2011-Filings.aspx, at the MSRB's principal office, 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 Board 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 purpose of the proposed rule change is to align the MSRB's 
Historical Data Product charges with other fees established by the 
MSRB, and to partially offset the cost of operating and maintaining the 
MSRB's Market Information Transparency Programs and the MSRB Real-Time 
Transaction Reporting System (``RTRS''). Since the Historical Data 
Product was first approved by the SEC in 2004,\6\ the MSRB has not 
increased the fee for the product. It has remained at a nominal level 
for over six years. The MSRB currently charges an annual fee of $10,000 
for a subscription to the MSRB Real-Time Transaction Data Subscription 
Service, and an annual fee of $5,000 for a subscription to the delayed 
transaction service, the MSRB Comprehensive Transaction Data 
Subscription Service, which includes three delayed transaction 
reports--the T+1 Report, T+5 Report, and T+20 Report.
---------------------------------------------------------------------------

    \6\ See Exchange Act Release No. 50689 (November 18, 2004) (File 
No. SR-MSRB-2004-05).
---------------------------------------------------------------------------

    The proposed rule change would increase the fee for a one calendar 
year data set of the Historical Data Product from $600 to $2,500, which 
the MSRB believes is a fair and reasonable fee for such municipal 
securities transaction data. Additionally, the MSRB proposes a one-time 
set-up fee of $2,000 to be charged to each Historical Data Product 
purchaser to partially offset administrative costs (the ``set-up 
fee''); provided, however, that the MSRB would not impose the set-up 
fee on any prior purchaser of the Historical Data Product or current 
subscriber to an MSRB Subscription Service, including the MSRB Real-
Time Transaction Data Subscription Service, Comprehensive Transaction 
Data Subscription Service, Short-Term Obligation Rate Transparency 
Subscription Service, Primary Market Disclosure Subscription Service, 
or Continuing Disclosure Subscription Service.
    The transaction information provided in the Historical Data Product 
is the same as that currently provided in the MSRB's Comprehensive 
Transaction Data Subscription Service, including the trade date, the 
CUSIP number of the issue traded, a short description of the issue, the 
size of the transaction (including the exact par amount reported to the 
MSRB on transaction amounts greater than one million dollars), the time 
of trade as reported by the dealer, the price of the transaction, the 
dealer-reported yield (if any), and a designation as to whether the 
transaction is a sale by a dealer to a customer, a purchase from a 
customer, or an inter-dealer trade. The same information provided 
through the Historical Data Product will remain available to the public 
for free on the MSRB's Electronic Municipal Market Access (``EMMA'') 
web portal. The Historical Data Product will continue to be provided on 
CD-ROM \7\ pursuant to the terms of the purchase agreement.\8\
---------------------------------------------------------------------------

    \7\ As technology evolves or if the volume of information 
included in the Historical Data Product increases, the MSRB may in 
the future decide to use a different medium for delivering the 
Historical Data Product.
    \8\ Purchasers are subject to all of the terms of the purchase 
agreement to be entered into between the MSRB and each purchaser, 
including proprietary and intellectual property rights of third 
parties in information provided by such third parties that is made 
available through the product.
---------------------------------------------------------------------------

2. Statutory Basis
    The MSRB has adopted the proposed rule change pursuant to Section 
15B(b)(2)(J) of the Securities Exchange Act of 1934 (the ``Act''), 
which requires, in pertinent part, that the MSRB's rules shall:

    Provide that each municipal securities broker, municipal 
securities dealer, and municipal advisor shall pay to the Board such 
reasonable fees and charges as may be necessary or appropriate to 
defray the costs and expenses of operating and administering the 
Board. Such rules shall specify the amount of such fees and charges.

    The MSRB believes that the proposed rule change provides for 
commercially reasonable fees to partially offset costs associated with 
operating RTRS and the market information transparency programs 
operated by the MSRB and producing and disseminating transaction 
products to purchasers.

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 since it will apply equally to 
all persons who chose to purchase the Historical Data Product, and 
those who chose not to pay the charge may view the same information for 
free on the Board's EMMA Web site.

C. Self-Regulatory Organization's Statement on Comments Received on the 
Proposed Rule Change by 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

    The proposed rule change took effect upon filing pursuant to 
Section 19(b)(3)(A)(ii) of the Act and Rule 19b-4(f)(2) thereunder. The 
MSRB designated the proposed rule change as establishing or changing a 
fee or charge of the MSRB.
    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend 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\
---------------------------------------------------------------------------

    \9\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).

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

[[Page 28251]]

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-2011-06 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-2011-06. 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 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 Web site viewing and printing 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 MSRB's offices.
    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-2011-06 
and should be submitted on or before June 6, 2011.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-11841 Filed 5-13-11; 8:45 am]
BILLING CODE 8011-01-P