[Federal Register Volume 74, Number 57 (Thursday, March 26, 2009)]
[Notices]
[Pages 13289-13290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-6616]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59602; File No. SR-MSRB-2009-01]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Extend the Electronic Municipal Market Access System Pilot

 March 19, 2009.
    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 March 18, 2009, the Municipal Securities Rulemaking Board (``MSRB'' 
or ``Board''), 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 substantially prepared by the 
MSRB. The MSRB has filed the proposal as a ``non-controversial'' rule 
change pursuant to Section 19(b)(3)(A)(iii) of the Act,\3\ and Rule 
19b-4(f)(6) 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 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 the MSRB's pilot of its Electronic 
Municipal Market Access system, currently operating as a facility of 
the MSRB's Municipal Securities Information Library system (the ``EMMA 
pilot''), to the earlier of July 1, 2009 or the date on which the MSRB 
places into operation EMMA's permanent primary market disclosure 
service for electronic submission and public availability on EMMA's 
Internet portal (the ``EMMA portal'') of official statements, advance 
refunding documents and related primary market documents and 
information (the ``primary market disclosure service'') and permanent 
transparency service making municipal securities transaction price data 
publicly available on the EMMA portal (the ``trade price transparency 
service'' and, together with the primary market disclosure service, the 
``permanent EMMA services''). The proposed rule change does not effect 
a change in existing rule language.

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 Commission has previously approved the operation by the MSRB of 
the EMMA pilot for a period of one year from the date the EMMA pilot 
became operational.\5\ The EMMA pilot became operational on March 31, 
2008. The MSRB expects to file with the Commission in the near future a 
proposed rule change to establish the permanent EMMA services, with a 
proposed date for commencement of operation of the permanent EMMA 
services on the later of (i) May 11, 2009 or (ii) the date announced by 
the MSRB in a notice published on the MSRB Web site, which date shall 
be no earlier than ten business days after Commission approval of the 
permanent EMMA services and shall be announced no fewer than five 
business days prior to such date. Upon the permanent EMMA services 
being approved and placed into operation, the permanent EMMA services 
would replace the EMMA pilot, at which time the EMMA pilot would be 
terminated.
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    \5\ See Securities Exchange Act Release No. 57577 (March 28, 
2008), 73 FR 18022 (April 2, 2008) (File No. SR-MSRB-2007-06).
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    In order to maintain the EMMA pilot in operation until the 
permanent EMMA services become operational, the MSRB is requesting that 
the Commission extend the EMMA pilot to the earlier of July 1, 2009 or 
the date on which the MSRB places into operation the permanent EMMA 
services.
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:
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    \6\ 15 U.S.C. 78o-4(b)(2)(C).

    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 
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the public interest.

    The MSRB believes that the proposed rule change is consistent with 
the Act. The extension of the EMMA pilot will continue to remove 
impediments to and help perfect the mechanisms of a free and open 
market in municipal securities, assist in preventing fraudulent and 
manipulative acts and practices, and will in general promote investor 
protection and the public interest by ensuring equal access for all 
market participants to the critical disclosure information needed by 
investors in the municipal securities market.

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

[[Page 13290]]

appropriate in furtherance of the purposes of the Act. Documents and 
information provided through the EMMA pilot will continue to be 
available to all persons on an equal basis. The MSRB will continue to 
make its official statement and advance refunding document collection 
available by subscription on an equal basis without imposing 
restrictions on subscribers from re-disseminating such documents or 
otherwise offering value-added services and products based on such 
documents on terms determined by each subscriber. The MSRB believes 
that any incidental impact of the extension of the EMMA pilot on 
commercial enterprises would not create an unequal burden among such 
enterprises and would be substantially outweighed by the benefits 
provided by the continuation of the EMMA pilot in removing impediments 
to and helping to perfect the mechanisms of a free and open market in 
municipal securities, assisting in the prevention of fraudulent and 
manipulative acts and practices, and generally promoting investor 
protection and the public interest.

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 with respect 
to the extension of the EMMA pilot.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The MSRB represented that the proposed rule change qualifies for 
immediate effectiveness pursuant to Section 19(b)(3)(A) of the Act \7\ 
and Rule 19b-4(f)(6) thereunder \8\ because it: (i) does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) by its terms, does not become operative for 30 days after the 
date of the filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ In addition, Rule 19b-4(f)(6)(iii) requires a self-
regulatory organization to give the Commission written notice of its 
intent to file 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.
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    The MSRB has requested that the Commission waive the 30-day 
operative delay, so that the proposed rule change may become operative 
upon filing and ensure that the EMMA pilot is extended before its 
scheduled expiration. The Commission hereby grants the MSRB's request 
and believes that waiving the 30-day operative delay is consistent with 
the protection of investors and the public interest.\10\ The extension 
of the EMMA pilot will ensure that there is no lapse in the 
availability to the public of the documents and information currently 
made available on the EMMA portal prior to the commencement of 
operations of the permanent EMMA services.
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    \10\ The MSRB provided the written notice required under Rule 
19b-4(f)(6)(iii) on March 13, 2009 and requested that the Commission 
waive the five business day notification period. The Commission 
hereby grants the MSRB's request and believes that waiving the five 
business day notification period is consistent with the protection 
of investors and the public interest. For the purposes only of 
accelerating the operative date of this proposal, the Commission has 
considered the proposed rule change'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 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.\11\
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    \11\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
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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

    <bullet> Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an e-mail to <a href="/cdn-cgi/l/email-protection#a8daddc4cd85cbc7c5c5cdc6dcdbe8dbcdcb86cfc7de"><span class="__cf_email__" data-cfemail="4e3c3b222b632d2123232b203a3d0e3d2b2d60292138">[email protected]</span></a>. Please include 
File Number SR-MSRB-2009-01 on the subject line.

Paper Comments

    <bullet> 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-2009-01. 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 inspection and 
copying 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-2009-01 and should be 
submitted on or before April 16, 2009.

For the Commission, by the Division of Trading and Markets, pursuant 
to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-6616 Filed 3-25-09; 8:45 am]
BILLING CODE 8010-01-P


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