[Federal Register Volume 77, Number 235 (Thursday, December 6, 2012)]
[Notices]
[Pages 72897-72899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-29454]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68328; File No. SR-MSRB-2012-10]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Extend the Implementation Date of the Requirement To Report 
the Contractual Dollar Prices at Which Transactions Were Executed for 
Inter-Dealer Transactions

November 30, 2012.
    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 November 29, 2012, the Municipal Securities Rulemaking Board 
(the ``MSRB'') filed with the Securities and Exchange Commission (the 
``SEC'' or ``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been prepared by the MSRB. The 
MSRB has designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under 
the Act,\3\ which renders the proposal effective upon receipt of this 
filing by 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\ 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 extend to March 29, 2013, the 
implementation date of a provision in Rule G-14, on reports of sales or 
purchases, including the Rule G-14 RTRS Procedures, and amendments to 
the Real-Time Transaction Reporting System (``RTRS'') information 
system and subscription service pertaining to a requirement for 
brokers, dealers and municipal securities dealers (collectively 
``dealers'') to report for inter-dealer transactions the contractual 
dollar price at which the transaction was executed.
    The text of the proposed rule change is available on the MSRB's Web 
site at 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.

[[Page 72898]]

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 MSRB proposes to extend the implementation date of a 
requirement for brokers, dealers and municipal securities dealers 
(collectively ``dealers'') to report for inter-dealer transactions the 
contractual dollar price at which the transaction was executed to March 
29, 2013. The Commission previously approved the change to the 
transaction reporting procedures on March 20, 2012 (the ``March 20, 
2012 Approval Order'').\4\
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    \4\ See SEC Release No. 34-66622 (March 20, 2012), 77 FR 17557 
(March 26, 2012) (File No. SR-MSRB-2012-01).
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    Inter-dealer transaction reporting is accomplished by both the 
purchasing and selling dealers submitting information about the 
transaction to the Depository Trust and Clearing Corporation's 
(``DTCC'') Real-Time Trade Matching System (``RTTM''). Information 
submitted to RTTM is forwarded to RTRS for trade reporting. Requiring 
dealers to report for inter-dealer transactions the contractual dollar 
price at which the transaction was executed, in addition to the 
information currently reported, would provide RTRS with an additional 
data point to use in its evaluation of which dollar price should be 
disseminated from RTRS for price transparency purposes.
    The original proposal had an implementation date of November 5, 
2012, but was postponed due to the effects of Hurricane Sandy on DTCC's 
systems. Due to ongoing effects of Hurricane Sandy on DTCC's systems, 
DTCC will be unable to make necessary system changes to allow dealers 
to report the contractual dollar price on inter-dealer trades to RTRS 
by November 30, 2012, as required by the March 20, 2012 Approval Order. 
To provide sufficient time for DTCC to make system changes, the 
proposed rule change would extend the implementation date of the 
provision to a date no later than March 29, 2013. MSRB is working with 
DTCC to implement this change as soon as practicable and will provide 
dealers and affected parties with at least ten business days of advance 
notice of the implementation date. Given that many dealers already have 
made system and procedural preparations for this change and the desire 
to implement this change as soon as practicable, the MSRB believes that 
ten business days of advance notice of the implementation date for this 
provision would be sufficient.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with 
Section 15B(b)(2)(C) of the Act, which provides that the 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.

    The MSRB believes that the proposed rule change is consistent with 
Section 15B(b)(2)(C) of the Act because it extends the implementation 
date of a provision in a previously approved rule filing as a result of 
the effects of Hurricane Sandy on certain computer systems.

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 Act. The proposed rule change extends the 
implementation date of a provision in a previously approved rule filing 
as a result of the effects of Hurricane Sandy on certain computer 
systems.

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 foregoing 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 from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-
4(f)(6) thereunder.\6\
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing.\7\ However, 
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. The MSRB requested that the Commission waive the 
30-day operative delay, as specified in Rule 19b-4(f)(6)(iii),\8\ which 
would make the rule change effective and operative upon filing.
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    \7\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the Exchange to give the Commission written 
notice of the Exchange's intent to file the proposed rule change, 
along with a brief description and text of the proposed rule change, 
at least five business days prior to the date of filing of the 
proposed rule change, or such shorter time as designated by the 
Commission. The Exchange has satisfied this requirement.
    \8\ 17 CFR 240.19b-4(f)(6)(iii).
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    The MSRB believes that extending the implementation date of the 
requirement that, for inter-dealer transactions, dealers must report 
the contractual dollar price at which the transaction was executed to 
March 29, 2013, will prevent dealers from falling into non-compliance 
with the requirement. The requirement was originally to be implemented 
by November 30, 2012, under the terms of the March 20, 2012 Approval 
Order. The MSRB represents that its inability to implement the 
reporting requirement by November 30, 2012 is due to the ongoing 
effects of Hurricane Sandy on DTCC's systems, which are outside the 
control of the dealers and the MSRB.\9\
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    \9\ Email from Ronald W. Smith, Corporate Secretary and Senior 
Legal Associate, MSRB, to Derek James, SEC Division of Trading and 
Markets, Office of Market Supervision, dated November 29, 2012.
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    The Commission believes that waiver of the 30-day operative delay 
is consistent with investor protection and the public interest. 
Extending the implementation date of the requirement without delay 
could reduce potential confusion among dealers regarding compliance 
with the requirement and

[[Page 72899]]

should clarify to investors the date by which this requirement will be 
implemented. Therefore, the Commission designates the proposed rule 
change as operative upon filing with the Commission.\10\
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    \10\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
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 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-2012-10 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-2012-10. 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 
10:00 a.m. and 3:00 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-2012-10, and should be 
submitted on or before December 27, 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. 2012-29454 Filed 12-5-12; 8:45 am]
BILLING CODE 8011-01-P