
[Federal Register Volume 77, Number 85 (Wednesday, May 2, 2012)]
[Notices]
[Pages 26063-26064]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-10543]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66866; File No. SR-MSRB-2012-02]


 Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Order Granting Approval of Proposed Rule Change Consisting of 
Establishment of Historical Data Subscription From Submissions to the 
MSRB Electronic Municipal Market Access System (``EMMA'')

April 26, 2012.

I. Introduction

    On February 27, 2012, 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 (``Exchange Act''),\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to establish a subscription 
containing historical documents and data obtained from submissions to 
the MSRB Electronic Municipal Market Access System (``EMMA''). The 
proposed rule change was published for comment in the Federal Register 
on March 12, 2012.\3\ The Commission received no comments on the 
proposed rule change. 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. 66522 (March 6, 
2012), 77 FR 14574 (the ``Commission's Notice'').
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II. Background and Description of Proposal

    In June 2009, the MSRB implemented an electronic system for free 
public access to primary market disclosure documents and related 
information for the municipal securities market through EMMA (the 
``Primary Market Disclosure Service'').\4\ In July 2009, the MSRB 
implemented a permanent continuing disclosure service to receive 
electronic submissions of, and make publicly available access to, 
continuing disclosure documents and related information through EMMA 
(the ``Continuing Disclosure Service'').\5\ EMMA provides subscription 
services, including the Primary Market Disclosure Subscription Service 
\6\ and the Continuing Disclosure Subscription Service, that make 
documents and related indexing information available on a current basis 
to subscribers through a real-time data stream.\7\ The proposed rule 
change would clarify that subscribers to the Primary Market Disclosure 
Service and Continuing Disclosure Service would be able to access 
historical data for the most recent six months on a daily rolling basis 
and establish purchase agreements for historical products consisting of 
twelve consecutive complete month data sets of the documents and 
related indexing information obtained through submissions to the 
Primary Market Disclosure Service (the ``Primary Market Disclosure 
Historical Product'') received since June 1, 2009 \8\ and submissions 
to the Continuing Disclosure Service (the ``Continuing Disclosure 
Historical Product'') received since July 1, 2009.\9\

[[Page 26064]]

The purpose of the proposed rule change is to provide historical 
products for the Primary Market Disclosure and Continuing Disclosure 
Subscription Services, which are currently only available on a current 
basis through the real-time data stream. A more complete description of 
the proposal is contained in the Commission's Notice.
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    \4\ See Securities Exchange Act Release No. 59966 (May 21, 
2009).
    \5\ See Securities Exchange Release No. 59061 (December 5, 
2008).
    \6\ The Primary Market Disclosure Subscription Service provides 
subscribers all primary market disclosure documents, including 
official statements, preliminary official statements, advance 
refunding documents (``primary market disclosure documents''), and 
any amendments thereto, together with related indexing information, 
provided by submitters through EMMA, for an annual fee of $20,000.
    \7\ The Continuing Disclosure Subscription Service provides 
subscribers all continuing disclosure documents, together with 
related indexing information, provided by submitters through EMMA, 
for an annual fee of $45,000.
    \8\ The EMMA Primary Market Subscriber Manual provides a 
complete, up-to-date listing of all data elements made available 
through the EMMA Primary Market Disclosure Subscription Service. The 
primary market disclosure documents and data elements provided in 
the Primary Market Disclosure Historical Product are the same as 
those currently provided in the EMMA Primary Market Disclosure 
Subscription Service.
    \9\ The EMMA Continuing Disclosure Subscriber Manual provides a 
complete, up-to-date listing of all data elements made available 
through the EMMA Continuing Disclosure Subscriber Manual. The 
continuing disclosure documents and data elements provided in the 
Continuing Disclosure Historical Product are the same as those 
currently provided in the EMMA Continuing Disclosure Subscription 
Service.
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III. Discussion and Commission Findings

    The Commission has carefully considered the proposed rule change 
and finds that the proposed rule change is consistent with the 
requirements of the Exchange Act and the rules and regulations 
thereunder applicable to the MSRB.\10\ In particular, the proposed rule 
change is consistent with Section 15B(b)(2)(C) of the Exchange Act, 
which provides that the 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.\11\
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    \10\ 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).
    \11\ 15 U.S.C. 78o-4(b)(2)(C).
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    The proposed rule change is also consistent with Section 
15B(b)(3)(B)(ii) of the Exchange Act, which provides that the MSRB 
shall not be prohibited from charging commercially reasonable fees for 
automated subscription-based feeds or similar services, or for charging 
for other data or document-based services customized upon request of 
any person, made available to commercial enterprises, municipal 
securities market professionals, or the general public, whether 
delivered through the Internet or any other means, that contain all or 
part of the documents or information, subject to approval of the fees 
by the Commission under Section 19(b).\12\
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    \12\ 15 U.S.C. 78o-4(b)(3)(B)(ii).
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    The Commission believes that the proposed rule change is consistent 
with the Exchange Act. The proposed rule change would establish a 
subscription service that would make information collected by EMMA's 
Primary Market Disclosure Service and the Continuing Disclosure Service 
available to market participants through an additional avenue. Broad 
access to the information collected by EMMA, in addition to the public 
access through the EMMA web portal, should further assist in preventing 
fraudulent and manipulative acts and practices by improving the 
opportunity for public investors to access material information about 
primary market disclosure information and continuing disclosure 
information. The proposed rule change also provides for commercially 
reasonable fees to partially offset costs associated with operating the 
Primary Market and Continuing Disclosure Services of EMMA and producing 
and disseminating information products to purchasers.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Exchange Act,\13\ that the proposed rule change (SR-MSRB-2012-02) be, 
and it hereby is, approved.
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    \13\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-10543 Filed 5-1-12; 8:45 am]
BILLING CODE 8011-01-P


