Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices 11603 

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). 

5Securities Exchange Act Release No. 61381, File 

No. SR–MSRB–2009–18 (January 20, 2010). 6 15 U.S.C. 78o-4(b)(2)(C). 

7 15 U.S.C. 78s(b)(3)(A)(i). 

8 17 CFR 240.19b–4(f)(1). 

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

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

By the Commission. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–5222 Filed 3–10–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61647; File No. SR–MSRB– 

2010–01] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Consisting of Revised 

Interpretive Questions & Answers on 

the Application of Rule G–37 

March 4, 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 February 

25, 2010, the Municipal Securities 

Rulemaking Board (‘‘MSRB’’), filed with 

the Securities and Exchange 

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

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) of the Act,3 and 

Rule 19b–4(f)(1) 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 has filed with the 

Commission a proposed rule change 

consisting of revisions to certain of the 

existing Rule G–37 interpretive 

Questions & Answers (‘‘Qs&As’’) to 

reflect the new rule language as 

contained in recently adopted 

amendments to Rule G–37 5, concerning 

disclosure of certain contributions to 

bond ballot campaigns. The MSRB 

requested that the proposed rule change 

become effective immediately upon its 

filing with the SEC. 

The text of the proposed rule change 

is available on the MSRB’s Web site 

(http://www.msrb.org/msrb1/sec.asp), 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 

Since the adoption of Rule G–37, on 

political contributions and prohibitions 

on municipal securities business, the 

MSRB has received numerous inquiries 

concerning the application of the rule. 

In order to assist the municipal 

securities industry in understanding 

and complying with the provisions of 

the rule, the MSRB has published a 

series of interpretive notices that set 

forth, in Q & A format, general guidance 

on Rule G–37. 

On February 1, 2010, amendments to 

Rule G–37 became effective concerning 

disclosure of certain contributions to 

bond ballot campaigns. The proposed 

rule change revises certain of the Rule 

G–37 Qs&As to reflect the new rule 

language as contained in the 

amendments. 

2. Statutory Basis 

The MSRB believes that the proposed 

rule change is consistent with Section 

15B(b)(2)(C) of the Act,6 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. 

The MSRB believes that the proposed 

rule change is consistent with the Act in 

that it provides guidance to brokers, 

dealers, and municipal securities 

dealers in complying with existing 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, since it 

would apply equally to all dealers. 

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. 

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)(i) of the Act 7 and Rule 19b– 

4(f)(1) thereunder,8 in that the proposed 

rule change constitutes a stated policy, 

practice, or interpretation with respect 

to the meaning, administration, or 

enforcement of an existing rule of the 

MSRB. At any time within 60 days of 

the filing of the proposed rule change, 

the Commission may summarily 

abrogate 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

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–2010–01 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 


jlentini on DSKJ8SOYB1PROD with NOTICES
11604 Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 61424 

(January 26, 2010), 75 FR 5367. 

5The Exchange also proposes to amend Rule 309 

to explicitly provide that failure to pay trading 

license fee installments will be governed by 

proposed Rule 300(h). 

6The Exchange represents that, if it denies a 

member organization’s appeal under Rule 300(h), 

the Exchange will notify the Commission in the 

manner required by Exchange Act Rule 19d–1. 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–MSRB–2010–01. 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–2010–01 and should 

be submitted on or before April 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–5215 Filed 3–10–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61646; File No. SR–NYSE– 

2010–03] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Approving Proposed Rule Change 

Amending the Rule Governing the 

Issuance of Trading Licenses 

March 4, 2010. 

I. Introduction 

On January 13, 2010, New York Stock 

Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’), pursuant to Section 

19(b)(1) 1 of the Securities Exchange Act 

of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 

thereunder,3 a proposal to amend its 

Rule 300 (Trading Licenses) and Rule 

309 (Failure to Pay Exchange Fees). The 

proposed rule change was published for 

comment in the Federal Register on 

February 2, 2010.4 The Commission 

received no comments regarding the 

proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

NYSE Rule 300 provides that member 

organizations may buy trading licenses 

in the annual offering and may buy 

licenses at any other time in the year, 

provided that the maximum number of 

1,366 licenses has not been issued and 

subject to limitations on the number of 

licenses a single member organization 

may hold. Member organizations must 

pay for their trading licenses in 12 

monthly installments, with the first 

installment due prior to the 

commencement of the applicable year. 

The Exchange represents that it relies in 

part on the revenues from trading 

license fees to pay for the maintenance 

of the trading floor and to fund its 

trading floor regulatory activities. 

According to the Exchange, if some 

member organizations consistently fail 

to pay their trading license fee bills, the 

Exchange would be forced to impose 

higher fees on those member 

organizations which do pay their bills. 

The Exchange therefore proposes to 

amend Rule 300 to provide that a 

member organization shall be ineligible 

to purchase a trading license, either in 

the annual offering or subsequently, if, 

at the time of such proposed purchase, 

such member organization remains 

three months in arrears in paying 

monthly installments of the trading 

license fee payable in respect of any 

previously purchased trading license.5

Any trading license purchased by a 

member organization in the annual 

auction for the calendar year 

commencing January 1, 2010, will be 

subject to automatic revocation at the 

close of business on March 31, 2010, if 

the member organization that holds 

such license remains three months in 

arrears in making such payments at that 

time. 

The Exchange also proposes to adopt 

appeal procedures for the denial or 

revocation of a member organization’s 

trading license. One calendar month 

prior to the effective date of any 

potential denial of renewal or 

revocation of a trading license (the 

‘‘Expiration Date’’) pursuant to Rule 

300(h), the Exchange would notify each 

applicable member organization that is 

currently two months or more in arrears 

in paying monthly installments of the 

trading license fee payable in respect of 

any previously purchased trading 

license of the amount of then overdue 

trading license installment payments 

and the possibility of denial of renewal 

or revocation of the trading license on 

the Expiration Date. The notice must 

include a description of the appeal 

process. If the member organization 

believes the Exchange’s records are 

incorrect, the member organization must 

submit a written appeal within five 

business days of receipt of the 

Exchange’s notice to the officer of the 

Exchange identified for that purpose in 

such notice, providing an explanation as 

to why it believes the Exchange’s 

records are incorrect, and providing 

copies of any relevant documentation. 

The Exchange would be required to 

provide a final determination in writing 

in response to any such appeal no later 

than 15 calendar days prior to the 

effective date of the potential denial of 

renewal or revocation of the applicable 

trading license.6 If the Exchange denies 

the appeal, its written final 

determination must specifically address 

the arguments made by the member 

organization in its submission. The 

Exchange’s written determination 

would be final and conclusive action by 

the Exchange. 

A written record would be required to 

be kept of any proceedings under Rule 

300(h). As the appeal procedures under 

proposed Rule 300(h) would not include 

any provision for an oral hearing, the 

Exchange expects that the written 

record would generally consist of (i) the 

written appeal and supporting 

documents (if any) submitted by the 

member organization and (ii) the 

Exchange’s written determination. 

Finally, the Exchange states that any 

member organization which forfeits its 

trading licenses as of March 31, 2010 

would only owe the pro rata license fee 

for 2010 through that date. Any member 

organization which forfeits its trading 


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