

[Federal Register: August 10, 2007 (Volume 72, Number 154)]
[Notices]               
[Page 45077]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10au07-130]                         


[[Page 45077]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56202, File No. SR-MSRB-2007-01]

 
Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Order Approving Proposed Rule Change to MSRB Rule G-14, Reports 
of Sales or Purchases Relating to Reporting of Transactions in Certain 
Special Trading Situations

August 3, 2007.
    On June 13, 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 an amendment to and interpretation 
of its Rule G-14, Reports of Sales or Purchases. The MSRB proposed an 
effective date for this proposed rule change of January 2, 2008. The 
proposed rule change was published for comment in the Federal Register 
on July 3, 2007.\3\ 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\ See Securities Exchange Act Release No. 55957 (June 26, 
2007), 72 FR 36532 (July 3, 2007) (``Commission's Notice'').
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    The proposed rule change would: (i) Clarify transaction reporting 
requirements and require use of the existing M9c0 special condition 
indicator on trade reports of three types of transactions arising in 
certain special trading situations that do not represent typical arm's-
length transactions negotiated in the secondary market; (ii) provide an 
end-of-day exception from real-time transaction reporting for trade 
reports containing the M2c0 or M9c0 special condition indicator; and 
(iii) create two new special condition indicators for purposes of 
reporting certain inter-dealer transactions ``late.'' 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 \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 is consistent with the 
Act because it will allow the municipal securities industry to produce 
more accurate trade reporting and transparency and will enhance 
surveillance data used by enforcement agencies. The proposal will be 
effective January 2, 2008, as requested by the MSRB.
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    \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-2007-01) be, and it 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).
    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-15598 Filed 8-9-07; 8:45 am]

BILLING CODE 8010-01-P
