[Federal Register Volume 77, Number 48 (Monday, March 12, 2012)]
[Notices]
[Pages 14572-14574]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-5906]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66521; File No. SR-MSRB-2012-03]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing of Proposed Rule Change Consisting of
Establishment of a Subscription to Historical Information and Documents
Submitted to the MSRB's Short-Term Obligation Rate Transparency System
March 6, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Exchange Act'') \1\ and Rule 19b-4
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thereunder,\2\ notice is hereby given that on February 27, 2012, the
Municipal Securities Rulemaking Board (``MSRB'') 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 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The MSRB is hereby filing with the Commission a proposed rule
change to establish a subscription to historical information and
documents submitted to the MSRB's Short-Term Obligation Rate
Transparency System (``SHORT System''). The SHORT System collects and
disseminates information and documents for municipal Auction Rate
Securities and municipal Variable Rate Demand Obligations.
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/2012-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 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
In January 2009, the MSRB implemented an electronic system to
collect and disseminate information about securities bearing interest
at short-term rates and making such information and documents publicly
available through a dissemination service (``SHORT System''). In May
2011, MSRB enhanced the SHORT System to add documents to the
information collected and disseminated. Information and documents
collected by the SHORT System are made available for free on the MSRB's
Electronic Municipal Market Access (EMMA[supreg]) Web site pursuant to
the EMMA short-term obligation rate transparency service.\3\ MSRB also
makes the information and documents collected by the SHORT System
available through a subscription service, which is available for an
annual fee of $10,000. The proposed rule change would clarify that
subscribers to the SHORT subscription service would be able to access
historical data for the most recent six months on a daily rolling basis
and establish purchase agreements for historical products consisting of
twelve consecutive complete month data sets of the documents and
related indexing information collected by the SHORT System (the ``SHORT
Historical Data Product'') dating to January 30, 2009.\4\ The purpose
of the proposed rule change is to provide another avenue for obtaining
the information and documents provided through the SHORT subscription
service, which is currently only available on a current basis through
the real-time data stream.
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\3\ See Exchange Act Release No. 59212 (January 7, 2009).
\4\ The SHORT Subscriber Manual provides a complete, up-to-date
listing of all data elements made available through the SHORT
Subscription Service. The information provided in the SHORT
Historical Data Product are the same as those currently provided in
the SHORT Subscription Service.
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The SHORT Historical Data Product would be made available to
purchasers in electronic format using a physical medium (such as an
optical disc, flash memory card or external hard drive),\5\ pursuant to
the terms of the MSRB Historical Transaction Data Purchase Agreement,
which would be executed by purchasers prior to delivery of the
historical data product.\6\ The MSRB proposes to charge $5,000 for any
twelve consecutive complete month data set of information and documents
collected by the SHORT System.\7\ In general, no smaller data sets will
be made available.\8\ A one-time set-up fee of $2,000 (the ``set-up
fee'') would be charged to new purchasers of the SHORT Historical Data
Products, unless the purchaser is a current subscriber to an MSRB
Subscription Service, including, but not limited to, the MSRB Real-Time
Transaction Data Subscription Service, Comprehensive Transaction Data
Subscription Service, SHORT Subscription Service, Primary Market
Disclosure Subscription Service, or the Continuing Disclosure
Subscription Service or has previously purchased a historical
product.\9\
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\5\ The MSRB will choose an appropriate physical medium for
delivering the EMMA SHORT historical data product based upon the
quantity of data included in a data set and technological advances
in physical media.
\6\ Purchasers would be subject to all of the terms of the MSRB
Historical Transaction Data Purchase Agreement to be entered into
between the MSRB and each purchaser, including terms relating to the
proprietary and intellectual property rights of third parties in
information provided by such third parties that is made available
through the products.
\7\ The purchase price does not include sales tax as required by
Virginia state law. The purchase price is a one-time charge for the
SHORT Historical Data Products, as applicable, and will not include
any future additions or enhancements that may be added to the data.
The MSRB could, in its discretion, waive or reduce the purchase
price for not-for-profit organizations that desire the product for
non-profit or research purposes consistent with their stated
charitable or other public purpose.
\8\ The SHORT system became effective January 30, 2009.
Accordingly, a purchaser of all historical information and documents
will be charged $5,000 for each twelve consecutive month data set
and a prorated amount for any remaining months.
\9\ The MSRB could, in its discretion, waive or reduce the
product set-up fee(s) for not-for-profit organizations that desire
the product for non-profit or research purposes consistent with
their stated charitable or other public purpose.
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2. Statutory Basis
The MSRB has adopted the proposed rule change pursuant to Section
15B(b)(2)(C) of the Exchange Act, which provides that MSRB's rules
shall:
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 and
municipal financial products, to remove impediments to and perfect
the mechanism of a free and open market in municipal securities and
municipal financial products, and, in general, to protect investors,
municipal entities, obligated persons, and the public interest; and
The MSRB has also adopted the proposed rule change pursuant to
Section 15B(b)(3)(B)(ii) of the Exchange Act, which provides that the
MSRB shall:
Not be prohibited from charging commercially reasonable fees for
automated subscription-based feeds or similar services, or for
charging for other data or document-based services customized upon
request of any person, made available to commercial enterprises,
municipal securities market professionals, or the general public,
whether delivered through the Internet or any other means, that
contain all or part of the documents or information, subject to
approval of the fees by the Commission under section 19(b).
The MSRB believes that the proposed rule change is consistent with
the Exchange Act. The proposed rule change would establish a
subscription service that would make information collected by the SHORT
System available to market participants as an
[[Page 14574]]
additional avenue for obtaining information that is submitted to the
EMMA short-term obligation rate transparency service. Broad access to
the information collected by the SHORT System, in addition to the
public access through the EMMA short-term obligation rate transparency
service web portal, should further assist in preventing fraudulent and
manipulative acts and practices by improving the opportunity for public
investors to access material information about SHORT System disclosure
information. The proposed rule change also provides for commercially
reasonable fees to partially offset costs associated with operating the
SHORT System and producing and disseminating information products to
purchasers.
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 Exchange Act since it will apply equally to all
persons who choose to purchase \10\ the SHORT Historical Data Product,
and those who choose not to pay the charge may view the same
information for free on the EMMA Web site.
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\10\ The MSRB notes that purchasers may be subject to
proprietary rights of third parties in information provided by such
third parties that is made available through the purchase agreement.
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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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) by order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
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 Exchange 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 email to [email protected]. Please include
File Number SR-MSRB-2012-03 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-2012-03. This file
number should be included on the subject line if email 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 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-2012-03 and should be submitted on
or before April 2, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-5906 Filed 3-9-12; 8:45 am]
BILLING CODE 8011-01-P