Document ID: SEC-2009-1212-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of Amendment to Rule A-14, on Annual Fee
Posted Date: 2009-08-26T04:00Z

[Federal Register: August 26, 2009 (Volume 74, Number 164)]
[Notices]               
[Page 43205-43206]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26au09-134]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60528; File No. SR-MSRB-2009-13]

 
Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing and Immediate Effectiveness of Amendment to 
Rule A-14, on Annual Fee

August 18, 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 August 13, 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 designated the proposed rule change as changing a 
fee applicable to brokers, dealers and municipal securities dealers 
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.
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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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The MSRB is filing an amendment to Rule A-14, which provides for an 
annual fee paid by dealers to the MSRB. The MSRB is amending the rule 
to increase the annual fee paid by dealers from $300 to $500. The text 
of the proposed rule change is available on the MSRB's Web site at 
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

[[Page 43206]]

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 assess reasonable 
fees necessary to defray the costs and expenses of operating and 
administering the MSRB. The proposed rule change would partially 
accomplish this purpose by amending Rule A-14 to increase the annual 
fee assessed to dealers from $300 to $500 per dealer.
    The MSRB currently levies three types of fees that are generally 
applicable to dealers. Rule A-12 provides for a $100 initial fee paid 
once by a dealer when it enters the municipal securities business. Rule 
A-13 provides for an underwriting fee of $.03 per $1000 par value of 
bonds and $.01 per $1000 par value of notes (with specified 
exceptions), and a transaction fee of $.005 per $1000 par value of sale 
transactions of specified securities. Rule A-14 provides for an annual 
fee of $300 from each dealer who conducts municipal securities 
activities. The annual fee imposed by Rule A-14 was last increased from 
$200 to $300 in 2003.
    The underwriting and transaction fees in Rule A-13 assess fees that 
are generally proportionate to a dealer's activity within the industry. 
However, MSRB's regulatory activities affect all participants in the 
dealer community and a number of dealers do not participate in 
traditional municipal securities underwriting activities or are not 
actively involved in the trading of traditional municipal securities 
subject to a transaction fee.
    The MSRB accordingly is raising the annual fee from $300 to $500, 
which will result in an increase of approximately $280,000 to the 
MSRB's revenues in fiscal year 2010. The proposed rule change will 
enhance the equitable distribution of fees among dealers in the 
municipal securities market and increase the MSRB's revenues, in order 
to partially offset a decrease in revenue and increased costs 
associated with operating market information services and regulating 
the municipal securities market.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with 
the requirements of Section 15B(b)(2)(J) of the Act,\5\ which requires, 
in pertinent part, that the MSRB's rules shall:
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    \5\ 15 U.S.C. 78o-4(b)(2)(J).

    Provide that each municipal securities broker and each municipal 
securities dealer 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. Such rules shall 
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specify the amount of such fees and charges.

The MSRB believes that the proposed rule change is consistent with this 
provision because the proposed rule change provides for reasonable 
fees, based on dealer involvement in the municipal securities market 
that are necessary to defray MSRB expenses.

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, 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 proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) thereunder,\7\ in 
that the amendment to Rule A-14 changes a fee applicable to brokers, 
dealers and municipal securities dealers. 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.\8\
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
    \8\ 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

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-MSRB-2009-13 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-2009-13. 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-2009-13 and should be 
submitted on or before September 16, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-20534 Filed 8-25-09; 8:45 am]

BILLING CODE 8010-01-P