Document ID: SEC-2008-1014-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Municipal Securities Rulemaking Board
Posted Date: 2008-07-21T04:00Z

[Federal Register: July 21, 2008 (Volume 73, Number 140)]
[Notices]
[Page 42388-42389]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21jy08-99]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58154; File No. SR-MSRB-2008-03]

Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Order Granting Approval of Proposed Rule Change, as Modified by
Amendment No. 1, Relating to Rule G-11, on New Issue Syndicate
Practices, and Rule G-12, on Uniform Practice

July 15, 2008.
    On March 18, 2008, 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-11, on new issue
syndicate practices, and Rule G-12, on uniform practice. The proposed
rule change was published for comment in the Federal Register on April
18, 2008.\3\ The Commission received no comment letters about the
proposed rule change. On June 26, 2008, the MSRB filed Amendment No. 1
to the proposed rule change.\4\ This order approves the proposed rule
change as modified by Amendment No. 1.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 57659 (April 14,
2008), 73 FR 21166 (April 18, 2008) (``Commission's Notice'').
    \4\ Amendment No. 1 clarifies a broker, dealer or municipal
securities dealer's existing obligations and does not add any new
requirements. This is a technical amendment and is not subject to
notice and comment.
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    The proposed rule change consists of amendments to Rule G-11 and
Rule G-12 that (a) delete Rule G-12(i); (b) consolidate the remaining
syndicate practice provisions of Rule G-12 into Rule G-11; (c) delete
the syndicate-related sections of Rule G-12; and (d) make minor
technical corrections to Rule G-11. 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 it will facilitate transactions in municipal securities and
protect investors and the public interest by creating a consolidated
rule that seeks to avoid inadvertent rule violations and clarifies and
modernizes its rules to bring them into line with the realities of
current market practice without compromising investor protection.
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    \5\ In approving this proposed rule change, 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

[[Page 42389]]

proposed rule change (SR-MSRB-2008-03), as modified by Amendment No. 1,
be, and it hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    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,
Acting Secretary.
[FR Doc. E8-16589 Filed 7-18-08; 8:45 am]

BILLING CODE 8010-01-P