
[Federal Register Volume 76, Number 184 (Thursday, September 22, 2011)]
[Notices]
[Pages 58852-58853]
From the Federal Register Online via the Government Printing 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 rule-comments@sec.gov. 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


