Federal Register / Vol. 75, No. 222 / Thursday, November 18, 2010 / Notices 70759 

17NYSE Rule 123 and NYSE Amex Equities Rule 

123 pertain to orders or commitments or obligations 

to trade originated on or transmitted to the floor of 

each exchange. 

18These members would be subject to FINRA’s 

oversight, as FINRA assumed the market 

surveillance and enforcement functions of NYSE 

Regulation, Inc. in June 2010, pursuant to a multiparty regulatory services agreement with NYSE 

Regulation, Inc., NYSE, NYSE Amex, and NYSE 

Arca. See ‘‘FINRA and NYSE Euronext Complete 

Agreement for FINRA to Perform NYSE 

Regulation’s Market Oversight Functions,’’ FINRA 

News Release (June 14, 2010), available at http:// 

www.finra.org/Newsroom/NewsReleases/2010/ 

P121622. 

19 15 U.S.C. 78s(b)(2). 

20 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(ii). 

4 17 CFR 240.19b–4(f)(2). 

appropriate, as it excludes from the 

OATS recording and reporting 

requirements those members who 

conduct a floor business through NYSE 

and NYSE Amex and who are currently 

not subject to OTS, but to the 

requirements of NYSE Rule 123 and 

NYSE Amex Equities Rule 123 (Record 

of Orders).17 By exempting these 

members from the OATS requirements, 

FINRA is not altering their current audit 

trail obligations.18 The Commission 

believes that FINRA’s proposed 

amendment to Rule 7410 is appropriate 

as these members would continue to be 

required to record and report 

information under NYSE Rule 123 and 

NYSE Amex Equities Rule 123, and 

would continue to be subject to FINRA 

regulation. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,19 that the 

proposed rule change (SR–FINRA– 

2010–044), be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–29079 Filed 11–17–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63313; File No. SR–MSRB– 

2010–14] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing and Immediate 

Effectiveness of Amendments to Rule 

A–12, on Initial Fee, and Rule A–14, on 

Annual Fee 

November 12, 2010. 

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 

9, 2010, the Municipal Securities 

Rulemaking Board (‘‘Board’’ or ‘‘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 

MSRB has designated the proposed rule 

change as changing a fee applicable to 

municipal advisors pursuant to Section 

19(b)(3)(A)(ii) of the Act,3 and Rule 

19b–4(f)(2) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The MSRB is filing a proposed rule 

change consisting of amendments to 

Rule A–12, on initial fee, and Rule A– 

14, on annual fee, to provide for the 

payment to the Board by municipal 

advisors of initial and annual fees. The 

proposed rule change is effective 

immediately upon filing. 

The proposed rule change would 

apply to municipal advisors 

immediately; however, it will have a 

deferred compliance date of December 

31, 2010. The text of the proposed rule 

change is available on the MSRB’s Web 

site at http://www.msrb.org/Rules-andInterpretations/SEC-Filings/2010- 

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 

The purpose of the proposed rule 

change is to provide for the assessment 

of reasonable fees to defray a portion of 

the increased costs and expenses 

associated with the operation and 

administration of the Board attributable 

to the Board’s regulation of municipal 

advisors, including an initial fee of $100 

and an annual fee of $500. Except as 

described below, the proposed rule 

change applies the provisions of Rules 

A–12 and A–14 to municipal advisor 

firms in the same manner that they 

currently apply to brokers, dealers, and 

municipal securities dealers (‘‘dealers’’). 

Individuals will not be required to pay 

these fees unless they are sole 

proprietorships. Although the initial fee 

under Rule A–12 normally would be 

payable to the Board prior to a 

municipal advisor engaging in any 

municipal advisory activities, the 

proposed rule change would permit a 

municipal advisor firm to engage in 

such activities prior to January 1, 2011 

so long as the initial fee is paid by 

January 1, 2011. Similarly, although the 

annual fee under Rule A–14 normally 

would be payable by October 31 of each 

fiscal year (or, for municipal advisor 

firms becoming subject to MSRB rules 

in the current fiscal year, 

simultaneously with the initial fee 

under Rule A–12), the proposed rule 

change would permit a municipal 

advisor firm to engage in such activities 

prior to January 1, 2011 so long as the 

annual fee for the current fiscal year of 

the Board is paid by January 1, 2011. 

Each firm subject to the rules of the 

Board shall be required to pay the initial 

fee only once, and the annual fee only 

once each fiscal year, even if a firm is 

both a dealer and a municipal advisor. 

2. Statutory Basis 

The MSRB believes that the proposed 

rule change is consistent with Section 

15B(b)(2)(J) of the Act, which provides 

that the Board’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. 

The $100 initial fee imposed on 

municipal advisors by amended Rule 

A–12 and the $500 annual fee imposed 

on municipal advisors by amended Rule 

A–14 are reasonable. In its filing, the 

MSRB noted that the annual fee is 

comparable to the fees that municipal 

advisors must pay to State regulators if 

they must register as investment 

advisers. The initial fee is less than most 

States impose for the initial registration 

of investment advisers. The revenue 

resulting from these fees will defray 

only a small portion of the cost of MSRB 

regulation of municipal advisors. 

mstockstill on DSKH9S0YB1PROD with NOTICES

70760 Federal Register / Vol. 75, No. 222 / Thursday, November 18, 2010 / Notices 

5 15 U.S.C. 78s(b)(3)(A)(ii). 

6 17 CFR 240.19b–4(f)(2). 

7See Section 19(b)(3)(C) of the Act, 15 U.S.C. 

78s(b)(3)(C). 

8 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(i). 

4 17 CFR 240.19b–4(f)(1). 

Section 15B(2)(L) of the Act requires 

that rules adopted by the Board 

not impose a regulatory burden on small 

municipal advisors that is not necessary or 

appropriate in the public interest and for the 

protection of investors, municipal entities, 

and obligated persons, provided that there is 

robust protection of investors against fraud. 

The proposed rule change does not 

impose a regulatory burden on small 

advisors that is not necessary or 

appropriate in the public interest and 

for the protection of investors, 

municipal entities, and obligated 

persons and for the robust protection of 

investors against fraud. The MSRB 

stated that it considers the $100 initial 

fee and $500 annual fee to be de 

minimis. The annual fee is comparable 

to the fees that municipal advisors must 

pay to State regulators if they must 

register as investment advisers. The 

initial fee is less than most States 

impose for the initial registration of 

investment advisers. The MSRB stated 

that, while the proposed rule change, at 

best, imposes only a de minimis burden 

on municipal advisors, the proposed 

rule change is necessary to help defray 

the costs of the MSRB’s registration of 

municipal advisors, which in turn 

permits the MSRB to have a record of 

the municipal advisors it regulates, so 

that it may keep them abreast of 

regulatory developments, better target 

its rulemaking and professional 

qualifications examinations to different 

types of municipal advisors, and 

identify to the Commission those 

municipal advisors who have reportedly 

violated MSRB rules. 

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, since it would 

apply equally to all municipal advisors. 

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 

The proposed rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 5 and Rule 19b– 

4(f)(2) 6 thereunder, in that it establishes 

fees applicable to municipal advisors. 

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.7

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 rulecomments@sec.gov. Please include File 

Number SR–MSRB–2010–14 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–2010–14. 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–2010–14 and should 

be submitted on or before December 9, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–29080 Filed 11–17–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63310; File No. SR–MSRB– 

2010–12] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing and Immediate 

Effectiveness of Revisions to the 

Study Outline and Selection 

Specifications for the Municipal 

Securities Representative Qualification 

Examination (Series 52) Program 

November 12, 2010. 

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 

10, 2010, the Municipal Securities 

Rulemaking Board (‘‘Board’’ or ‘‘MSRB’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) a 

proposed rule change (File No. SR– 

MSRB–2010–12) (‘‘the proposed rule 

change’’) as described in Items I, II, and 

III below, which Items have been 

prepared by the MSRB. The MSRB has 

designated the proposed rule change as 

constituting a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule of the 

self-regulatory organization pursuant to 

Section 19(b)(3)(A)(i) 3 of the Act and 

Rule 19b–4(f)(1) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission. The MSRB 

proposes to implement the revised 

Series 52 examination program on 

January 3, 2011. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

mstockstill on DSKH9S0YB1PROD with NOTICES