[Federal Register Volume 75, Number 162 (Monday, August 23, 2010)]
[Notices]
[Pages 51864-51866]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-20817]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62734; File No. SR-MSRB-2010-06]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing of Proposed Rule Change To Establish a
Subscription To the Information Collected by the MSRB's Short-term
Obligation Rate Transparency (``SHORT'') System
August 17, 2010.
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 August 10, 2010, the Municipal Securities Rulemaking Board
(``MSRB'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II 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 filing with the Commission a proposed rule change to
establish a subscription to the information collected by the MSRB's
Short-term Obligation Rate Transparency (``SHORT'') System. The MSRB
has requested that the proposed rule change be made effective on
September 30, 2010.
The text of the proposed rule change is available on the MSRB's Web
site at http://www.msrb.org, at the MSRB's principal office, and at the
Commission's Public Reference Room. If approved, the rule text for the
Short-term Obligation Rate Transparency Subscription Service would be
available on the MSRB Web site at http://www.msrb.org/Rules-and-Interpretations.aspx under the heading Information Facilities.
[[Page 51865]]
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. 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 SHORT System is a facility of the MSRB for the collection and
dissemination of information about securities bearing interest at
short-term rates. Currently, these securities consist of Auction Rate
Securities (``ARS'') and Variable Rate Demand Obligations (``VRDOs'').
The proposed rule change consists of a proposal to establish a
subscription to the information collected by the SHORT System. The data
stream subscription would be provided through a Web service and would
be made available for an annual fee of $10,000.\3\
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\3\ The proposed subscription price would cover a portion of the
administrative, technical and operating costs of the SHORT
subscription service but would not cover all costs of such
subscription service or of the SHORT System. The MSRB has proposed
establishing the subscription price at a commercially reasonable
level.
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Information disseminated from the SHORT System also is posted to
the MSRB's Electronic Municipal Market Access (EMMA) Web portal
pursuant to the EMMA short-term obligation rate transparency service.
Such information would be made available to subscribers simultaneously
with the availability of such information to the EMMA Web portal. The
subscription service would make the information collected by the SHORT
System available to market participants for re-dissemination and for
use in creating value-added products and services. Such re-
dissemination and third-party use would provide market participants,
including investors and the general public, additional avenues for
obtaining the information collected by the SHORT System and would make
additional tools available for making well-informed investment
decisions.
Data elements with respect to the SHORT subscription service that
would be provided through the data stream would be set forth in the
SHORT System Subscriber Manual posted on the MSRB Web site. The SHORT
System Subscriber Manual would provide a complete, up-to-date listing
of all data elements made available through the SHORT subscription
service, including any additions, deletions or modifications to
disseminated data elements, detailed definitions of each data element,
specific data format information, and information about technical data
elements to support transmission and data-integrity processes between
the SHORT System and subscribers.
Subscriptions would be provided through computer-to-computer data
streams utilizing XML files for data. Appropriate schemas and other
technical specifications for accessing the Web services through which
the data stream will be provided would be set forth in the SHORT System
Subscriber Manual posted on the MSRB Web site.
The MSRB would make the SHORT subscription service available on an
equal and non-discriminatory basis. Subscribers would be subject to all
of the terms of the subscription agreement to be entered into between
the MSRB and each subscriber, including proprietary rights of third
parties in information provided by such third parties that is made
available through the subscription. The MSRB would not be responsible
for the content of the information submitted by submitters that is
distributed to subscribers of the SHORT subscription service.
2. Statutory Basis
The MSRB has adopted the proposed rule change pursuant to Section
15B(b)(2)(C) of the Act,\4\ 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, 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.
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\4\ 15 U.S.C. 78o-4(b)(2)(C).
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The MSRB believes that the proposed rule change is consistent with
the Act. The SHORT subscription service would serve as an additional
mechanism by which the MSRB works toward removing impediments to and
helping to perfect the mechanisms of a free and open market in
municipal securities. The subscription service would make the
information collected by the SHORT System available to market
participants for re-dissemination and for use in creating value-added
products and services. Such re-dissemination and third-party use would
provide market participants, including investors and the general
public, additional avenues for obtaining the information collected by
the SHORT System and would make additional tools available for making
well-informed investment decisions. Broad access to the information
collected by the SHORT System, in addition to the public access through
the EMMA 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 Auction Rate Securities
and Variable Rate Demand Obligations.
Furthermore, broader re-dissemination and third-party use of the
information collected by the SHORT System should promote a more fair
and efficient municipal securities market in which transactions are
effected on the basis of material information available to all parties
to such transactions, which should allow for fairer pricing of
transactions based on a more complete understanding of the terms of the
securities (including any changes thereto).
B. Self-Regulatory Organization's Statement on Burden on Competition
The MSRB does not believe 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 would make the
information collected by the SHORT System available to all persons on
an equal and non-discriminatory basis. The information provided through
the subscription service would be available to all subscribers
simultaneously with the availability of the information through the
EMMA Web portal. In addition to making the information available for
free on the EMMA Web portal to all members of the public, the MSRB
would make the information collected by the SHORT System available by
subscription on an equal and non-discriminatory basis without imposing
restrictions on subscribers from, or imposing additional charges on
subscribers for, re-disseminating such information or otherwise adding
value-added services and products based on
[[Page 51866]]
such information on terms determined by each subscriber.\5\
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\5\ The MSRB notes that subscribers may be subject to
proprietary rights of third parties in information provided by such
third parties that is made available through the subscription.
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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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate 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 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-2010-06 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-2010-06. 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 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 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-2010-06 and should be
submitted on or before September 13, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-20817 Filed 8-20-10; 8:45 am]
BILLING CODE 8010-01-P