Document ID: SEC-2007-1737-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Municipal Rulemaking Securities Board
Posted Date: 2007-12-20T05:00Z

[Federal Register: December 20, 2007 (Volume 72, Number 244)]
[Notices]               
[Page 72430-72431]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20de07-107]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56946, File No. SR-MSRB-2007-04]

 
Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Order Approving Proposed Rule Change Relating to Amendments to 
Rule G-40 on E-Mail Contacts

December 12, 2007.
    On October 16, 2007, the Municipal Securities Rulemaking Board 
(``MSRB''), filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change consisting of amendments to Rule G-40, on 
electronic mail contacts, that would more fully conform MSRB 
requirements to Financial Industry Regulatory Authority (``FINRA'') 
requirements relating to contact information. The MSRB proposed an 
effective date for this proposed rule change of December 31, 2007 to 
coincide with the effective date of recently-approved FINRA 
requirements.\3\ The proposed rule change was published for comment in 
the Federal Register on November 9,

[[Page 72431]]

2007.\4\ The Commission received no comment letters regarding the 
proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 56179 (August 1, 2007), 
72 FR 44203 (August 7, 2007) (SR-NASD-2007-034).
    \4\ See Securities Exchange Act Release No. 56736 (November 2, 
2007), 72 FR 63633 (November 9, 2007) (``Commission's Notice'').
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    The proposed amendments to Rule G-40 would require dealers to: (i) 
Promptly update any change in the required information for their 
primary contact but not later than 30 days following such change; (ii) 
review and, if necessary, update required information on their primary 
contact within 17 business days after the end of each calendar year; 
and (iii) promptly comply with any request by the appropriate 
regulatory agency (as defined in Section 3(a)(34) of the Act) for such 
information but not later than 15 days following such request, or such 
longer period that may be agreed to by the appropriate regulatory 
agency. A full description of the proposal is contained in the 
Commission's Notice.
    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to the MSRB \5\ and, in particular, the 
requirements of Section 15B(b)(2)(C) of the Act \6\ and the rules and 
regulations thereunder. Section 15B(b)(2)(C) of the Act requires, among 
other things, that the MSRB's rules 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.\7\ In particular, the 
Commission finds that the proposed rule change is consistent with the 
Act because substantially conforming Rule G-40 to comparable FINRA 
requirements relating to e-mail contact information will promote 
regulatory consistency by facilitating dealer compliance with such 
requirements, as well as the inspection and enforcement thereof. The 
proposal will be effective December 31, 2007, as requested by the MSRB.
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    \5\ In approving this rule the Commission notes that it has 
considered the proposed rule's impact on efficiency, competition and 
capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78o-4(b)(2)(C).
    \7\ Id.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-MSRB-2007-04) be, and it 
hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).
    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-24652 Filed 12-19-07; 8:45 am]

BILLING CODE 8011-01-P