

[Federal Register: October 23, 2006 (Volume 71, Number 204)]
[Notices]               
[Page 62141-62142]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23oc06-91]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54612, File No. SR-MSRB-2006-07]

 
Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Order Approving Proposed Rule Change to MSRB Rule G-14 RTRS 
Procedures Relating to ``List Offering Price'' and ``Takedown'' 
Transactions

October 17, 2006.
    On August 15, 2006, the Municipal Securities Rulemaking Board 
(``MSRB'' or ``Board''), filed with the Securities and Exchange 
Commission (``SEC'' or ``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 to Rule G-14 RTRS Procedures 
under Rule G-14, Reports of Sales or Purchases, to expand the usage of 
``list offering price'' transactions to include certain inter-dealer 
``takedown'' transactions and to require the reporting of these 
transactions as ``list offering price'' transactions on the first day 
of trading of a new issue. The MSRB proposed an effective date for the 
proposed rule change of January 8, 2007. The proposed rule change was 
published for comment in the Federal Register on September 14, 2006.\3\ 
The Commission received no comment letters regarding the proposal.
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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. 54416 (September 8, 
2006), 71 FR 54323 (September 14, 2006).
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    The proposed rule change retains the end of the day exception from 
the normal fifteen minute reporting deadline for the expanded category 
of ``List Offering Price/Takedown'' transactions. The MSRB believes 
that the proposed rule change recognizes the similarities between List 
Offering Price and Takedown transactions and the dissimilarities 
between these transactions and secondary market transactions in a new 
issue, and further believes that transparency reports on the first day 
of trading for a new issue would be more useful if List Offering Price 
and Takedown transactions were identified with a special condition 
indicator.
    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 \4\ and, in particular, the 
requirements of Section 15B(b)(2)(C) of the Act \5\ 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.\6\ In particular, the 
Commission finds that the proposed rule change will allow the municipal

[[Page 62142]]

securities industry to produce more accurate trade reporting and 
transparency and will enhance surveillance data used by enforcement 
agencies. The proposal will be effective on January 8, 2007, as 
requested by the MSRB.
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    \4\ 4 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).
    \5\ 15 U.S.C. 78o-4(b)(2)(C).
    \6\ Id.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-MSRB-2006-07) be, and hereby 
is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-17668 Filed 10-20-06; 8:45 am]

BILLING CODE 8011-01-P
