Federal Register / Vol. 62, No. 47 / Tuesday, March 11, 1997 / Notices 11235

1 15 U.S.C. 78s(b)(1) (1988).

2 17 CFR 240.19b–4 (1991).

3Securities Exchange Act Release No. 33868

(April 7, 1994), 59 FR 17621 (April 13, 1994). The

rule applies to contributions made on and after

April 25, 1994.

4See MSRB Reports, Vol. 14, No. 3 (June 1994)

at 11–16; Vol. 14; No. 4 (August 1994) at 27–31;

Vol. 14, No. 5 (December 1994) at 8; Vol. 15, No.

1 (April 1995) at 21; Vol. 15, No. 2 (July 1995) at

3–4; Vol. 16, No. 1 (January 1996) at 31; and Vol.

16, No. 3 (September 1996) at 35–36. See also CCH

Manual paragraph 3681.

5Securities Exchange Act Release No. 34161

(June 6, 1994), 59 FR 30379 (June 13, 1994) [File

No. SR–MSRB–94–6]; Securities Exchange Act

Release No. 34603 (August 25, 1994), 59 FR 45049

(Aug. 31, 1994) corrected Securities Exchange Act

Release No. 34603 (Aug. 25, 1994), 59 FR 46479

(Sept. 8,. 1994) [File No. SR–MSRB–94–15]. 6 15 U.S.C. 78s(b)(3)(A).

[Release No. 34–38365; File No. SR–MSRB–

97–2]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Municipal Securities Rulemaking

Board Relating to Interpretation of

Rule G–37 on Political Contributions

and Prohibitions on Municipal

Securities Business

March 5, 1997.

On February 21, 1997, the Municipal

Securities Rulemaking Board (‘‘Board’’

or ‘‘MSRB’’) filed with the Securities

and Exchange Commission

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

rule change (File No. SR–MSRB–97–2),

pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 2 thereunder.

The proposed rule change is described

in Items I, II, and III below, which Items

have been prepared by the Board. The

Board has designated this proposal as

constituting a stated policy, practice, or

interpretation with respect to the

meaning, administration, or

enforcement of an existing rule of the

Board under Section 19(b)(3)(A) of the

Act, which renders the proposed rule

change 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.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Board is filing herewith a notice

of interpretation concerning rule G–37

on political contributions and

prohibitions on municipal securities

business (hereafter referred to as ‘‘the

proposed rule change’’).

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

Board 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 texts of these

statements may be examined at the

places specified in Item IV below. The

Board 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

(a) On April 7, 1994, the Commission

approved rule G–37, concerning

political contributions and prohibitions

on municipal securities business.3 Since

that time, the Board has received

numerous inquiries concerning the

application of the rule. In order to assist

the municipal securities industry and,

in particular, brokers, dealers and

municipal securities dealers in

understanding and complying with the

provisions of the rule, the Board has

published prior notices of interpretation

which set forth general guidance on rule

G–37.4 In prior filings with the

Commission, the Board stated that it

will continue to monitor the application

of rule G–37 and, from time to time, will

publish additional notices of

interpretations, as necessary.5 In light of

questions recently received from market

participants concerning the activities a

dealer may engage in with an issuer

while subject to a prohibition on

municipal securities business with that

issuer, the Board has determined that it

is necessary to provide further guidance

to the municipal securities industry.

Accordingly, the Board is publishing

this notice of interpretation.

(b) The Board believes the proposed

rule change is consistent with Section

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

that the Board’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.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Board 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 brokers, dealers and

municipal securities 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 Board has designated this

proposal as constituting a stated policy,

practice, or interpretation with respect

to the meaning, administration, or

enforcement of an existing rule of the

Board under Section 19(b)(3)(A) of the

Act,6 which renders the proposed rule

change effective on February 21, 1997,

the date of receipt of this filing by the

Commission.

At any time within sixty 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.

IV. Solicitation of Comments

Interested people are invited to

submit written data, views, and

arguments concerning the foregoing.

People making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549. 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 inspection and copying in

the Commission’s Public Reference

Room. Copies of the filing will also be

available for inspection and copying at

the Board’s principal offices. All

submissions should refer to File No.
11236 Federal Register / Vol. 62, No. 47 / Tuesday, March 11, 1997 / Notices

7 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1) (1988).

2 17 CFR 240.19b–4 (1991).

3The MUNICIPAL SECURITIES INFORMATION

LIBRARY and MSIL are registered trademarks of the

Board.

4 15 U.S.C. § 78s(b)(3)(A).

5 17 CFR 240.19b–4(e)(6).

6 17 CFR 200.30–3(a)(12).

SR–MSRB–97–2 and should be

submitted by April 1, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–5981 Filed 3–10–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38366; File No. SR–MSRB–

97–1]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Municipal Securities Rulemaking

Board Relating to Delivery of Official

Statements to the Board

March 5, 1997.

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

20, 1997, the Municipal Securities

Rulemaking Board (‘‘Board’’ or

‘‘MSRB’’) filed with the Securities and

Exchange Commission (‘‘Commission’’

or ‘‘SEC’’) the proposed rule change

(File No. SR–MSRB–97–1). The

proposed rule change is described in

Items, I, II, and III below, which Items

have been prepared by the Board. 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 Board is filing a proposed rule

change to rule G–36 and Form G–

36(OS), relating to delivery of official

statements to the Board (hereafter

referred to as the ‘‘proposed rule

change’’), which updates the citation to

SEC Rule 15c2–12 in rule G–36 to

correspond to the recently revised

subsection of that Rule and which

makes clear that limited placements

only are exempt from rule G–36.

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

Board 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 texts of these

statements may be examined at the

places specified in Item IV below. The

Board 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

Board rule G–36 requires that

managing underwriters deliver to the

Board copies of final official statements

for most primary offerings of municipal

securities, if an official statement was

prepared. Rule G–36 also requires Form

G–36(OS) to be sent with the official

statement. The Board enters the official

statement into the Municipal Securities

Information Library (‘‘MSIL’’)

System.3 Rule G–36 applies to all

primary offerings with official

statements, except for limited

placements that are exempt under SEC

Rule 15c2–12(d)(1)(i).

Rule G–36 and Form G–36(OS)

contain cross-references to SEC Rule

15c2–12. The proposed rule change to

rule G–36(c)(iii) and Form G–36(OS)

updates the citation to Rule 15c2–12 to

correspond to the recently revised

subsection of Rule 15c2–12 and makes

clear that limited placements only are

exempt from rule G–36.

The Board believes the proposed rule

change is consistent with Section

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

that the Board’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.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Board 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.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants, or Others

The Board has neither solicited nor

received comments 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: (1) does not significantly affect

the protection of investors or the public

interest; (2) does not impose any

significant burden on competition; (3)

does not become operative for thirty

days from February 20, 1997, the date

on which it was filed, and the MSRB

provided the Commission with written

notice of its intent to file the proposed

rule change at least five business days

prior to the filing date, it has become

effective pursuant to Section 19(b)(3)(A)

of the Act 4 and Rule 19b–4(e)(6) 5

thereunder. In particular, the

Commission believes the proposal

would qualify as a ‘‘non-controversial

filing’’ in that the proposed standards

do not significantly affect the protection

of investors or the public interest and do

not impose any significant burden on

competition. At any time within sixty

days of the filing of the proposed rule

change, the Commission may summarily

abrogate such rule change it if 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.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, D.C. 20549. 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 inspection and copying in

the Commission’s Public Reference

Room. Copies of the filing will also be

available for inspection and copying at

the Board’s principal offices. All

submissions should refer to File No.

SR–MSRB–97–1 and should be

submitted by April 1, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.6