82 FR 43584 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change To Amend Rule 4703(a) To Allow Members To Designate When an Order With a RTFY or SCAN Routing Order Attribute Will Be Activated
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 179 (September 18, 2017)
Federal Register Volume 82, Issue 179 (September 18, 2017)
| Page Range | 43584-43587 | |
| FR Document | 2017-19709 |
[Federal Register Volume 82, Number 179 (Monday, September 18, 2017)] [Notices] [Pages 43584-43587] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-19709] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81579; File No. SR-NASDAQ-2017-088] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change To Amend Rule 4703(a) To Allow Members To Designate When an Order With a RTFY or SCAN Routing Order Attribute Will Be Activated September 12, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on August 30, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 4703(a) to allow members to designate when an Order with a RTFY or SCAN routing Order Attribute will be activated. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. [[Page 43585]] 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 Exchange 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 Exchange 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 Exchange is proposing to amend Rule 4703(a) to allow members to designate when an Order with a RTFY or SCAN routing Order Attribute \3\ will be activated. RTFY is a routing option available for an order that qualifies as a Designated Retail Order under which orders check the System for available shares only if so instructed by the entering firm and are thereafter routed to destinations on the System routing table.\4\ If shares remain unexecuted after routing, they are posted to the book.\5\ Once on the book, should the order subsequently be locked or crossed by another market center, the System will not route the order to the locking or crossing market center.\6\ RTFY is designed to allow orders to participate in the opening, reopening and closing process of the primary listing market for a security. SCAN is a routing option under which orders check the System for available shares and simultaneously route the remaining shares to destinations on the System routing table. If shares remain un-executed after routing, they are posted on the book.\7\ Once on the book, should the order subsequently be locked or crossed by another market center, the System will not route the order to the locking or crossing market center.\8\ --------------------------------------------------------------------------- \3\ The term ``Order'' means an instruction to trade a specified number of shares in a specified System Security submitted to the Nasdaq Market Center by a Participant. An ``Order Type'' is a standardized set of instructions associated with an Order that define how it will behave with respect to pricing, execution, and/or posting to the Nasdaq Book when submitted to Nasdaq. An ``Order Attribute'' is a further set of variable instructions that may be associated with an Order to further define how it will behave with respect to pricing, execution, and/or posting to the Nasdaq Book when submitted to Nasdaq. The available Order Types and Order Attributes, and the Order Attributes that may be associated with particular Order Types, are described in Rules 4702 and 4703. One or more Order Attributes may be assigned to a single Order; provided, however, that if the use of multiple Order Attributes would provide contradictory instructions to an Order, the System will reject the Order or remove non-conforming Order Attributes. See Rule 4701(e). \4\ See Rule 4758(a)(1)(A)(v)b. \5\ Id. \6\ Id. \7\ See Rule 4758(a)(1)(A)(iv). \8\ Id. --------------------------------------------------------------------------- Rule 4703 provides the various Order Attributes that may be assigned to Orders entered into the System. All Orders have a Time-in- Force,\9\ during which the Order is active. During Pre-Market Hours,\10\ the Exchange has historically provided a member two options concerning when an Order with a RTFY or SCAN Order Attribute may become active--upon entry or at single designated time, which is currently 8:00 a.m. ET. Orders with a RTFY or SCAN Order Attribute entered prior to 8:00 a.m. ET that are not designated to activate immediately are held by the System until 8:00 a.m. ET, at which time they become active. During Market Hours \11\ and Post-Market Hours,\12\ Orders with a RTFY or SCAN Order Attribute may only become active upon entry. The Exchange is proposing to provide members with greater control over their Orders with RTFY and SCAN Order Attributes by allowing members to designate when such Orders become active at any point during the trading day. Accordingly, the Exchange is amending Rule 4703(a) and paragraph (7) thereunder to make it clear that Orders with a RTFY or SCAN Order Attribute may either be active upon entry or at a time designated by the member. The Exchange is also clarifying under Rule 4703(a)(7) that Orders with a RTFY or SCAN Order Attribute may be designated to activate at any time during System Hours, which encompasses the full trading day on Nasdaq, on the same day.\13\ Thus, an Order with a RTFY or SCAN Order Attribute not designated to become active immediately may only be designated to activate during System Hours of the day on which the Order was entered. --------------------------------------------------------------------------- \9\ See Rule 4703(a). \10\ The term ``Pre-Market Hours'' means the period of time beginning at 4:00 a.m. ET and ending immediately prior to the commencement of Market Hours. The term ``Market Hours'' means the period of time beginning at 9:30 a.m. ET and ending at 4:00 p.m. ET (or such earlier time as may be designated by Nasdaq on a day when Nasdaq closes early). The term ``Post-Market Hours'' means the period of time beginning immediately after the end of Market Hours and ending at 8:00 p.m. ET. The term ``System Hours'' means the period of time beginning at 4:00 a.m. ET and ending at 8:00 p.m. ET (or such earlier time as may be designated by Nasdaq on a day when Nasdaq closes early). See Rule 4701(g). \11\ Id. \12\ Id. \13\ Id. --------------------------------------------------------------------------- The Exchange will implement the proposed changes upon approval by the Commission. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\14\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\15\ in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest, by providing members with greater control over their Orders with a RTFY or SCAN Order Attribute and more flexibility to carry out their investment strategies. Currently, market participants are limited by the time at which their RTFY and SCAN Orders may activate--either upon entry or at 8:00 a.m. ET. The proposed rule change removes this limitation by allowing a member to designate the precise time at which it wishes the Order to become active. The Exchange notes that a member may currently replicate what is being proposed by entering an Order with a RTFY or SCAN Order Attribute precisely at the time that they wish it to become active during the trading day. The proposed change merely frees members from having to time their Order entry to achieve their investment goals. Currently, members may cancel an Order with a RTFY or SCAN Order Attribute at any time before it activates at 8 a.m. ET. Under the proposed change, members may cancel their inactive Orders with a RTFY or SCAN Order Attribute at any time, thus allowing them to react to market conditions that may cause them to violate their obligation of best execution to their customers should the Order activate and execute. Similarly, members may cancel their active Orders with RTFY or SCAN and enter new RTFY or SCAN Orders to activate at a time that the members believe will better satisfy their obligation of best execution. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b). \15\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- With this change, and as is currently the case, all Nasdaq members may use the SCAN Order Attribute, and all Nasdaq members may use the RTFY Order Attribute if they meet its [[Page 43586]] requirements.\16\ Thus, the proposed change will benefit all members that may use, or are eligible to use, SCAN or RTFY Order Attributes by removing a limitation, and by providing more choice over their market participation. --------------------------------------------------------------------------- \16\ As set forth in Rule 4758(a)(1)(A), RTFY is a routing option available for an order that qualifies as a Designated Retail Order. Rule 7018 defines a Designated Retail Order as an agency or riskless principal order that meets the criteria of FINRA Rule 5320.03 and that originates from a natural person and is submitted to Nasdaq by a member that designates it pursuant to this rule, provided that no change is made to the terms of the order with respect to price or side of market and the order does not originate from a trading algorithm or any other computerized methodology. --------------------------------------------------------------------------- The Exchange believes that it is equitable to limit the proposed change to RTFY or SCAN Orders because of the nature of the members that use these Order types with the current order activation delay. Currently, members that enter Orders with a RTFY or SCAN Order Attribute with delayed activation tend to represent customers on an agency basis--for example, individual retail investors.\17\ The Exchange has become aware that the proposed functionality would ease burdens associated with entering members' agency Orders with these Routing Order Attributes. Consequently, the Exchange is proposing to apply the proposed change to Orders with a RTFY or SCAN Order Attribute. Should the Exchange become aware of other Routing Order Attributes that would also benefit from the flexibility proposed herein, it will consider filing a rule change to expand the time during which such Orders may be designated to become active. --------------------------------------------------------------------------- \17\ RTFY, by definition, is entered on behalf of retail customers, whereas the Orders with a SCAN Order Attribute are entered on behalf of a wide array of customer, including retail customers. Consequently, although the proposed change will relieve burdens placed on members using both RTFY and SCAN, it will beneficially impact SCAN Orders more so than RTFY Orders. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange 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 Act. All Nasdaq members may use the SCAN Order Attribute, and Nasdaq members may use the RTFY Order Attribute if they meet its requirements. Any member that may use, or is eligible to use, Orders with RTFY or SCAN Order Attributes may avail itself of the proposed change. The Exchange believes that the proposed rule change promotes competition by removing a restriction on the use of two Order Attributes, thereby making the process of entering Orders with RTFY and SCAN Order Attributes more efficient and less burdensome on members. Members may not have functionality that allows them to send large numbers of RTFY and SCAN Orders to the Exchange for execution at a designated time. As discussed above, such members must either enter RTFY and SCAN Orders for immediate execution or send them to the Exchange for execution at 8 a.m. ET, relying on the Exchange to queue and activate these Orders at this single time. The Exchange is proposing to allow such queuing and activation done by the Exchange to occur at any time, since the Exchange can better handle the large number of queued Orders received by certain members. Consequently, the proposed change eliminates the burden that affects these members, but will also allow any other member that currently queues RTFY and SCAN Orders for activation at a precise time to use the Exchange for this functionality instead. Should the Exchange find a similar burden placed on members using other Orders, it may extend the proposed activation functionality to other such Orders through rulemaking. The Exchange notes that providing members greater efficiency and control over their trading may make Nasdaq a more attractive venue, which may, in turn, cause other markets to consider similar changes that would remove unnecessary restrictions to the benefit of their members. For these reasons, the Exchange believes that the proposed change will not impose any burden on competition, but rather will reduce burdens, as described above. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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 Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NASDAQ-2017-088 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASDAQ-2017-088. This file number should be included on the subject line if email 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 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. 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-NASDAQ-2017-088 and should be submitted on or before October 10, 2017. [[Page 43587]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-19709 Filed 9-15-17; 8:45 am] BILLING CODE 8011-01-P
![43584 Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices
Exchange does not believe that the rules At any time within 60 days of the inspection and copying at the principal
applicable to such process is an area filing of the proposed rule change, the office of the Exchange. All comments
where options exchanges should Commission summarily may received will be posted without change;
compete, but rather, that all options temporarily suspend such rule change if the Commission does not edit personal
exchanges should have consistent rules it appears to the Commission that such identifying information from
to the extent possible. Particularly action is: (i) Necessary or appropriate in submissions. You should submit only
where a market participant trades on the public interest; (ii) for the protection information that you wish to make
several different exchanges and an of investors; or (iii) otherwise in available publicly. All submissions
erroneous trade may occur on multiple furtherance of the purposes of the Act. should refer to File Number SR–
markets nearly simultaneously, the If the Commission takes such action, the NYSEArca–2017–101, and should be
Exchange believes that a participant Commission shall institute proceedings submitted on or before October 10,
should have a consistent experience to determine whether the proposed rule 2017.
with respect to the nullification or should be approved or disapproved. For the Commission, by the Division of
adjustment of transactions. To that end, Trading and Markets, pursuant to delegated
the selection and implementation of a IV. Solicitation of Comments authority.33
TP Provider utilized by all options Interested persons are invited to Eduardo A. Aleman,
exchanges will further reduce the submit written data, views, and Assistant Secretary.
possibility that participants with arguments concerning the foregoing, [FR Doc. 2017–19710 Filed 9–15–17; 8:45 am]
potentially erroneous transactions that including whether the proposed rule BILLING CODE 8011–01–P
span multiple options exchanges are change is consistent with the Act.
handled differently on such exchanges. Comments may be submitted by any of
Similarly, the proposed ability to the following methods: SECURITIES AND EXCHANGE
consider quotations invalid on another COMMISSION
Electronic Comments
options exchange if ultimately
originating from a party to a potentially • Use the Commission’s Internet [Release No. 34–81579; File No. SR–
comment form (http://www.sec.gov/ NASDAQ–2017–088]
erroneous transaction on the Exchange
represents a proposal intended to rules/sro.shtml); or
Self-Regulatory Organizations; The
further foster cooperation by the options • Send an email to rule-comments@
NASDAQ Stock Market LLC; Notice of
exchanges with respect to market sec.gov. Please include File Number SR–
Filing of Proposed Rule Change To
events. The Exchange understands that NYSEArca–2017–101 on the subject
Amend Rule 4703(a) To Allow Members
all other options exchanges either have line.
To Designate When an Order With a
or intend to file proposals that are Paper Comments RTFY or SCAN Routing Order Attribute
substantially similar to this proposal. Will Be Activated
The Exchange does not believe that • Send paper comments in triplicate
the proposed rule change imposes a to Brent J. Fields, Secretary, Securities September 12, 2017.
burden on intramarket competition and Exchange Commission, 100 F Street Pursuant to Section 19(b)(1) of the
because the proposed provisions apply NE., Washington, DC 20549–1090. Securities Exchange Act of 1934
to all market participants equally. All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Number SR–NYSEArca–2017–101. This notice is hereby given that on August
C. Self-Regulatory Organization’s file number should be included on the 30, 2017, The NASDAQ Stock Market
Statement on Comments on the subject line if email is used. To help the LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
Proposed Rule Change Received From Commission process and review your with the Securities and Exchange
Members, Participants, or Others comments more efficiently, please use Commission (‘‘SEC’’ or ‘‘Commission’’)
No written comments were solicited only one method. The Commission will the proposed rule change as described
or received with respect to the proposed post all comments on the Commission’s in Items I and II below, which Items
rule change. Internet Web site (http://www.sec.gov/ have been prepared by the Exchange.
III. Date of Effectiveness of the rules/sro.shtml). Copies of the The Commission is publishing this
Proposed Rule Change and Timing for submission, all subsequent notice to solicit comments on the
Commission Action amendments, all written statements proposed rule change from interested
with respect to the proposed rule persons.
Because the foregoing proposed rule change that are filed with the
change does not: (i) Significantly affect Commission, and all written I. Self-Regulatory Organization’s
the protection of investors or the public communications relating to the Statement of the Terms of Substance of
interest; (ii) impose any significant proposed rule change between the the Proposed Rule Change
burden on competition; and (iii) become Commission and any person, other than The Exchange proposes to amend
operative for 30 days from the date on those that may be withheld from the Rule 4703(a) to allow members to
which it was filed, or such shorter time public in accordance with the designate when an Order with a RTFY
as the Commission may designate, it has provisions of 5 U.S.C. 552, will be or SCAN routing Order Attribute will be
become effective pursuant to Section available for Web site viewing and activated.
19(b)(3)(A)(iii) of the Act 31 and printing in the Commission’s Public The text of the proposed rule change
subparagraph (f)(6) of Rule 19b–4 Reference Room, 100 F Street NE., is available on the Exchange’s Web site
sradovich on DSKBBY8HB2PROD with NOTICES
thereunder.32 Washington, DC 20549 on official at http://nasdaq.cchwallstreet.com, at
business days between the hours of the principal office of the Exchange, and
31 15 U.S.C. 78s(b)(3)(A)(iii). at the Commission’s Public Reference
10:00 a.m. and 3:00 p.m. Copies of such
32 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Room.
4(f)(6) requires a self-regulatory organization to give filing also will be available for
the Commission written notice of its intent to file
the proposed rule change, along with a brief of the proposed rule change, or such shorter time
33 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
description and text of the proposed rule change, as designated by the Commission. The Exchange
at least five business days prior to the date of filing has satisfied this requirement. 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices 43587
For the Commission, by the Division of The text of the proposed rule change Rule G–34(a)(i)(A)(5) addresses the
Trading and Markets, pursuant to delegated is available on the MSRB’s Web site at obligations to update application
authority.18 www.msrb.org/Rules-and- information that has changed, for
Eduardo A. Aleman, Interpretations/SEC-Filings/2017- example, when the structure of an
Assistant Secretary. Filings.aspx, at the MSRB’s principal issuance changes after the CUSIP
[FR Doc. 2017–19709 Filed 9–15–17; 8:45 am] office, and at the Commission’s Public number has been assigned.
BILLING CODE 8011–01–P Reference Room. The MSRB has become aware of
II. Self-Regulatory Organization’s confusion over the application of Rule
Statement of the Purpose of, and G–34(a)(i) among dealers in municipal
SECURITIES AND EXCHANGE
COMMISSION Statutory Basis for, the Proposed Rule securities. Some industry participants
Change have questioned whether the obligation
[Release No. 34–81595; File No. SR–MSRB– to apply for a CUSIP number pursuant
2017–06] In its filing with the Commission, the
MSRB included statements concerning to Rule G–34(a)(i) is conditioned on the
Self-Regulatory Organizations; the purpose of and basis for the underwriter’s intent to conduct a
Municipal Securities Rulemaking proposed rule change and discussed any distribution of the new issue, and
Board; Notice of Filing of a Proposed comments it received on the proposed therefore, applies only to public
Rule Change To Amend MSRB Rule rule change. The text of these statements offerings and not private placements.
G–34, on CUSIP Numbers, New Issue, may be examined at the places specified The MSRB has publicly stated the view,
and Market Information Requirements in Item IV below. The MSRB has however, that private placements of
prepared summaries, set forth in municipal securities ‘‘generally are
September 13, 2017. eligible for CUSIP numbering and thus
Sections A, B, and C below, of the most
Pursuant to Section 19(b)(1) of the are subject to the requirements of [R]ule
significant aspects of such statements.
Securities Exchange Act of 1934 (the G–34.’’ 6 Similarly, the MSRB has
‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule A. Self-Regulatory Organization’s indicated that, unless otherwise noted,
19b–4 thereunder,2 notice is hereby Statement of the Purpose of, and ‘‘references to ‘underwriter’ in the
given that on August 30, 2017 the Statutory Basis for, the Proposed Rule context of Rule G–34 are meant to
Municipal Securities Rulemaking Board Change include placement agents as well as
(the ‘‘MSRB’’ or ‘‘Board’’) filed with the dealers that purchase securities from the
1. Purpose
Securities and Exchange Commission issuer as principal,’’ 7 and that
(the ‘‘SEC’’ or ‘‘Commission’’) the Background
‘‘references to ‘syndicate and selling
proposed rule change as described in CUSIP Number Requirements group members’ in this context are
Items I, II, and III below, which Items Applicable to Dealers in Private meant to include managers of syndicates
have been prepared by the MSRB. The Placements as well as sole underwriters or
Commission is publishing this notice to
In 1983, the SEC approved MSRB placement agents in non-syndicated
solicit comments on the proposed rule
Rule G–34, on CUSIP numbers, new offerings.’’ 8
change from interested persons.
issue and market information
I. Self-Regulatory Organization’s requirements.3 The MSRB adopted Rule CUSIP Service Bureau’s original standards for
Statement of the Terms of Substance of issuing CUSIP numbers. These items are:
G–34 to improve efficiencies in the (a) Complete name of issue and series
the Proposed Rule Change processing and clearance activities of designation, if any;
The MSRB filed with the Commission the municipal securities industry, (b) interest rate(s) and maturity date(s) (provided,
a proposed rule change to amend MSRB noting that ‘‘if all eligible municipal however, that, if the interest rate is not established
securities have CUSIP numbers assigned at the time of application, it may be provided at
Rule G–34, on CUSIP numbers, new such time as it becomes available);
issue, and market information to and printed on them, dealers will be (c) dated date;
requirements, (the ‘‘proposed rule able to place greater reliance on the (d) type of issue (e.g., general obligation, limited
change’’) to more clearly express in the CUSIP identification of these securities tax or revenue);
rule language the MSRB’s longstanding in receiving, delivering, and (e) type of revenue, if the issue is a revenue issue;
interpretation that brokers, dealers and safekeeping’’ them.4 Rule G–34(a)(i) (f) details of all redemption provisions;
requires a dealer, whether acting as (g) the name of any company or other person in
municipal securities dealers addition to the issuer obligated, directly or
(collectively, ‘‘dealers’’) when acting as agent or principal, that acquires an indirectly, with respect to the debt service on all or
a placement agent in a private issuer’s securities ‘‘for the purpose of part of the issue (and, if part of the issue, an
placement of municipal securities are distributing such new issue,’’ and a indication of which part); and
subject to the CUSIP number dealer acting as a financial advisor in a (h) any distinction(s) in the security or source of
payment of the debt service on the issue, and an
requirements under Rule G–34(a); to competitive sale of a new issue, to apply indication of the part(s) of the issue to which such
expand the application of the rule to for a CUSIP number for the new issue distinction(s) relate.
cover not only dealer municipal by a particular point in time in the 6 CUSIP Number Eligibility Standards and
advisors but also non-dealer municipal transaction process. The rule requires, Requirements to Obtain CUSIP Numbers, MSRB
Reports, Vol. 12, No. 2 (Jul. 1992) (emphasis in
advisors in competitive sales of among other things, that underwriters, original). In this notice, the MSRB defined ‘‘private
municipal securities; and to provide a and financial advisors in competitive placement’’ to mean ‘‘any new issue of municipal
limited exception from the requirements sales, make application for a CUSIP securities that is ‘placed’ by a dealer, on an agency
number based on eight specified items basis, with one or more investors.’’
to apply for CUSIP numbers and to 7 See Exchange Act Release No. 50773 (Dec. 1,
sradovich on DSKBBY8HB2PROD with NOTICES
apply for depository eligibility. The of information about the new issue.5 2004), 69 FR 70731–02 (Dec. 7, 2004) (SR–MSRB–
MSRB requests that the proposed rule 2004–08).
3 Exchange Act Release No. 19743 (May 9, 1983),
change be effective six months from the 8 Id. See also MSRB Notice 2008–28 (Jun. 27,
48 FR 21690–01 (May 13, 1983) (SR–MSRB–82–11). 2008) (‘‘Rule G–34 defines ‘underwriter’ very
date of Commission approval. 4 Exchange Act Release No. 18959 (Aug. 13,
broadly to include a dealer acting as a placement
1982), 47 FR 36737–03 (Aug. 23, 1982) (SR–MSRB– agent . . .’’). Note further that in MSRB Notice
18 17 CFR 200.30–3(a)(12). 82–11). 2008–23 (May 9, 2008), the MSRB filed a proposed
1 15 U.S.C. 78s(b)(1). 5 These eight items are contained in current Rule rule change to amend Rule G–34 to require
2 17 CFR 240.19b–4. G–34(a)(i)(A)(4)(a) through (h) and were part of Continued
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Document Created: 2017-09-16 00:52:16
Document Modified: 2017-09-16 00:52:16
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