[Federal Register Volume 76, Number 184 (Thursday, September 22, 2011)]
[Notices]
[Pages 58852-58853]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-24329]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65346; File No. SR-MSRB-2011-16]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing and Immediate Effectiveness of Rule Change To
Extend the Effective Date of the Amendment to the Continuing Disclosure
Service of EMMA To Provide for the Posting of Credit Rating and Related
Information on the EMMA Public Web Site
September 16, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is
hereby given that on September 12, 2011, the Municipal Securities
Rulemaking Board (``Board'' or ``MSRB'') filed with the Securities and
Exchange Commission (``SEC'' or ``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by the MSRB. The MSRB has filed the proposal as a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A)(iii),\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 filing with the SEC a proposed rule change to extend
the effective date of the amendment (the ``Amendment'') to the
continuing disclosure service of the MSRB's Electronic Municipal Market
Access system (``EMMA'') to provide for the posting of credit rating
and related information on the EMMA public Web site (the ``original
proposal''), which was approved by the Commission on October 13,
2010.\5\ The Approval Order provided that the original proposal would
be effective no later than one year after the date of the approval
order (i.e., by October 13, 2011). The proposed rule change would
change the effective date of the original proposal to ``no later than
December 31, 2011.''
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\5\ See SEC Release No. 34-63086, File No. SR-MSRB-2010-03
(October 13, 2010) (``Approval Order'').
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The text of the proposed rule change is available on the MSRB's Web
site at http://www.msrb.org/Rules-and-Interpretations/SEC-Filings/2011-Filings.aspx, 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 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
1. Purpose
The proposed rule change will provide the MSRB with sufficient time
to complete its existing development project related to the continuing
disclosure service of EMMA that would allow for the posting of credit
rating information and related information provided by Nationally
Recognized Statistical Rating Organizations (``NRSROs'') that agree to
participate in the project (the ``credit ratings project''), as
described in the original proposal. The credit ratings project was
designed to provide additional material information to retail investors
and other market participants regarding municipal securities. The MSRB
had previously received the commitment of one NRSRO to participate in
the credit ratings project and is in on-going discussions with a second
NRSRO, which requires additional time to finalize an agreement with the
second NRSRO. The extension of the effective date as proposed in this
proposed rule change would permit the credit ratings project to be
launched with the participation of both NRSROs. Any additional NRSROs
that hereafter agree to participate in the credit ratings project under
the terms of the original proposal would be incorporated into the
credit ratings project in a subsequent phase of development.
2. Statutory Basis
The MSRB has adopted the proposed rule change pursuant to Section
15B(b)(2)(C) of the Exchange Act, which provides that MSRB'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 and
municipal financial products, to remove impediments to and perfect
the mechanism of a free and open market in municipal securities and
municipal financial products, and, in general, to protect investors,
municipal entities, obligated persons, and the public interest.
The MSRB believes that the proposed rule change is consistent with
the Exchange Act. The extension of the effective date of the original
proposal will allow the MSRB sufficient time to complete development of
the credit ratings project as described above, which will remove
impediments to and help perfect the mechanisms of a free and open
market in municipal securities and for municipal financial products,
assist in preventing fraudulent and manipulative acts and practices,
and in general promote investor protection and the public interest by
ensuring equal access for all market participants to critical
information needed by investors in the municipal securities market.
B. Self-Regulatory Organization's Statement on Burden on Competition
The MSRB 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 Exchange Act. Credit ratings and related
information provided on the EMMA public Web site would be available to
all persons
[[Page 58853]]
simultaneously. Any credit rating and related information of an NRSRO
would be displayed on the EMMA public Web site only with the agreement
of such NRSRO to such use of its information. The MSRB believes that
the benefits realized by the investing public from the broader and
easier availability of credit rating and related information provided
by NRSROs, including in particular retail investors in municipal
securities, who do not normally have access to information services
customarily used by professional market participants, would justify any
potentially negative impact on such existing information services from
the display of credit rating and related information on the EMMA public
Web site.
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 on the
proposed rule change.
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)(iii) of the
Exchange Act \6\ 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) does not become
operative for 30 days after filing or such shorter time as the
Commission may designate consistent with the protection of investors
and the public interest. The MSRB provided the required written notice
of its intention to file the proposed rule change to the Commission on
August 31, 2011,\7\ and the proposed rule change will become operative
on October 12, 2011, which is more than 30 days after the filing of the
proposed rule change, or on such earlier date as designated by the
Commission.
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ Rule 19b-4(f)(6)(iii) requires a self-regulatory
organization to submit to the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of 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. The
MSRB has complied with the requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend 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 Exchange Act.\8\ If the
Commission takes such action, the Commission shall institute
proceedings to determine whether the proposed rule change should be
approved or disapproved.
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\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 Exchange 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 [email protected]. Please include
File Number SR-MSRB-2011-16 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-2011-16. 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 Web site viewing and
printing 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 MSRB's offices. 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-2011-16 and should be submitted on
or before October 13, 2011.
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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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-24329 Filed 9-21-11; 8:45 am]
BILLING CODE 8011-01-P