83 FR 17200 - Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to the MSRB's Facility for the Real-Time Transaction Reporting System
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 75 (April 18, 2018)
Federal Register Volume 83, Issue 75 (April 18, 2018)
| Page Range | 17200-17203 | |
| FR Document | 2018-08052 |
[Federal Register Volume 83, Number 75 (Wednesday, April 18, 2018)] [Notices] [Pages 17200-17203] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-08052] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83038; File No. SR-MSRB-2018-02] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to the MSRB's Facility for the Real-Time Transaction Reporting System April 12, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on April 2, 2018 the Municipal Securities Rulemaking Board (the ``MSRB'' or ``Board'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the MSRB. 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 MSRB filed with the Commission a proposed rule change to the MSRB's facility for the Real-Time Transaction Reporting System (``RTRS'') to reflect the re-engineered RTRS and modernize and consolidate the RTRS information facility (``RTRS IF'') (``proposed rule change''). The MSRB has filed the proposed rule change under Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) \4\ thereunder, as a noncontroversial rule change that renders the proposal effective upon filing. The proposed rule change would be made operative on May 29, 2018. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78s(b)(3)(A)(iii). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- The text of the proposed rule change is available on the MSRB's website at www.msrb.org/Rules-and-Interpretations/SEC-Filings/2018-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 MSRB 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 MSRB Rule G-14, on transaction reporting, requires brokers, dealers and municipal securities dealers (``dealers'') to report executed transactions in municipal securities to RTRS within 15 minutes of the time of trade, with limited exceptions. RTRS disseminates information about transactions occurring in the municipal securities market to RTRS subscription services, including to the MSRB's Electonic Municipal Market Access System (EMMA[supreg]). The RTRS IF sets forth the material aspects of the operation of RTRS by describing the basic functionality of, and the high-level parameters by which the MSRB operates, RTRS. The proposed rule change consists of amendments to the RTRS IF.\5\ --------------------------------------------------------------------------- \5\ The RTRS facility is currently available on the MSRB's website at http://www.msrb.org/Rules-and-Interpretations/MSRB-Rules/Facilities/RTRS-Facility.aspx. --------------------------------------------------------------------------- Background The MSRB is enhancing certain RTRS components, including improving business continuity and connectivity services to RTRS and migrating subscription products to encrypted solutions.\6\ The purpose of the proposed rule change is to revise the RTRS IF to reflect this re- engineering of RTRS and to modernize and consolidate the RTRS IF. --------------------------------------------------------------------------- \6\ The MSRB has reported the enhancements to RTRS components to the SEC consistent with Regulation Systems Compliance and Integrity. See Exchange Act Release No. 73639 (November 19, 2014), 79 FR 72251 (December 5, 2014). --------------------------------------------------------------------------- Since the re-engineering would result in revisions to the RTRS IF, the MSRB took the opportunity to perform a comprehensive review of the RTRS IF to evaluate whether it sufficiently and clearly describes the basic functionality and operation of RTRS. The MSRB believes that dealers, submitters \7\ and subscribers \8\ benefit from this information being provided in a concise and organized manner. --------------------------------------------------------------------------- \7\ As defined in Rule G-14, a submitter means a dealer, or service bureau acting on behalf of a dealer, that has been authorized to interface with RTRS for the purposes of entering transaction data into the system. \8\ Subscriber refers to an individual or entity that receives RTRS data through an MSRB subscription service. --------------------------------------------------------------------------- Proposed Amendments to the RTRS Information Facility (i) Subscriber Connectivity Changes The RTRS IF sets forth RTRS subscribers' options for connecting to the RTRS Real-Time Transaction Data Subscription Service (``Real-Time Service''). Currently, subscribers have the option to connect to the Real-Time Service either over the internet or by leased line. As part of the re-engineering, the MSRB will require that subscribers to the Real-Time Service utilize the internet to connect to RTRS. As a result, subscribers will no longer be able to use leased lines for the Real- Time Service. With respect to messaging with RTRS, subscribers currently must use either the MQ Series messaging software or a Transmission Control Protocol (``TCP'') Socket connection. As part of the re-engineering, the MSRB will offer subscribers a new web service as an option for messaging with RTRS and retire the MQ Series messaging software. Moreover, the MSRB will require that any TCP socket connections utilized for messaging with RTRS are secure. The MSRB is implementing these subscriber connectivity changes to improve business continuity by allowing for more efficient failovers to [[Page 17201]] backup sites, migrate the Real-Time Service to encrypted messaging and improve the security of subscriber connections. The MSRB has previously notified subscribers of these connectivity changes, which will be operative on May 29, 2018, and provided a test environment for subscribers to test applicable systems changes. Specifically, the MSRB first notified all subscribers to the Real-Time Service of the subscriber connectivity changes on January 5, 2017 and made a test environment available to subscribers on February 1, 2017. The MSRB has been engaging in outreach efforts to subscribers to support the transition to the re-engineered RTRS and will continue to do so. The proposed rule change would remove references to leased lines and the MQ Series and add references to the new web service and secure TCP socket connections to reflect the subscriber connectivity changes associated with the re-engineering. (ii) Removal of Outdated References The RTRS IF was approved by the Commission on August 31, 2004 \9\ and RTRS became operational on January 10, 2005. RTRS replaced the MSRB's former Transaction Reporting System (the ``TRS system'') and brought real-time collection and dissemination of transactions to the municipal securities market. --------------------------------------------------------------------------- \9\ Exchange Act Release No. 50294 (August 31, 2004), 69 FR 54170 (September 7, 2004) (SR-MSRB-2004-02). --------------------------------------------------------------------------- Given the significance of the progression to real-time collection and dissemination at the time of RTRS' inception, the facility referenced improvements associated with the creation of real-time collection and dissemination and included transitional language which referenced the TRS system in describing RTRS functionality, including describing enhanced functionality of RTRS as compared with the TRS system, and common features between the systems. As it has been over thirteen years since TRS ceased operation and the progression to real-time collection and dissemination took place, the proposed rule change would remove dated references to the original improvements associated with real-time collection and dissemination and the TRS system, including the section titled ``Improved Functionality'' and much of a section titled ``Enhancement of Information Available to Regulators.'' To modernize the RTRS IF, the information that remains current with respect to information that RTRS provides to regulators would be consolidated under the proposed rule change in a renamed section titled ``Information Available to Regulators.'' The inclusion of references to TRS and the enhancements implemented in 2005 no longer serve a purpose in describing the basic functionality of, or the high-level parameters by which the MSRB operates, RTRS. In addition, information concerning outdated ``enhancements'' could mislead users to believe certain RTRS functionality is recent, when in fact such functionality may have been in place since 2005. In place of these references, the proposed rule change would add a new introductory paragraph which explains the purpose of the RTRS IF, summarizes key RTRS functionality and refers dealers to Rule G-14 for transaction reporting requirements. (iii) Consolidating Format The RTRS IF is currently structured such that there are separate segmented topics within the information facility: the ``RTRS Facility,'' the ``MSRB Real-Time Transaction Data Subscription Service,'' the ``Comprehensive Transaction Data Subscription Service,'' the ``MSRB Historical Transaction Data Product,'' and the ``MSRB Academic Historical Transaction Data Product.'' Each segmented topic was initially designed to stand alone, with each having a separate footnote section. The proposed rule change would reorganize the RTRS IF into two sections, ``RTRS Functionality'' and ``Transaction Dissemination by RTRS.'' The first section, ``RTRS Functionality'' would set forth basic information regarding the operation and functionality of RTRS, including the submission of transaction reports, messaging input options, the information that RTRS provides to regulators, and key steps in RTRS processing. The ``Transaction Dissemination by RTRS'' section would describe the RTRS subscription products, including the Real-Time Service, the Comprehensive Transaction Data Subscription Service, the Historical Transaction Data Product and the Academic Historical Transaction Data Product. Reorganizing and consolidating the RTRS IF in the manner set forth in the proposed rule change would reduce redundancies and improve readability. The proposed rule change would also consolidate repetitive references in the RTRS IF to ensure consistency within the document. For example, the proposed rule change would consolidate a list of information designed to identify and describe the types of data disseminated by RTRS currently provided in both the ``RTRS Facility'' segment and the ``Real-Time Transaction Data Subscription Service'' segment. A consolidated list of data fields would reduce the risk of inconsistencies and potential confusion. The proposed rule change would also consolidate two sections in the RTRS IF that describe the process by which RTRS determines whether a trade is reported within the applicable reporting deadline set forth in Rule G-14. The RTRS IF contains a section titled ``Measurement of Timely Reporting'' and a section titled ``Lateness checking,'' both of which contain similar information. The proposed rule change consolidates the information in these two sections to improve clarity regarding the description of RTRS processing with respect to measuring trades against the applicable reporting deadline. In addition, the ``Message-Based and Web-Based Input Methods'' section of the RTRS IF includes repetitive references regarding the ability of dealers and submitters to use the message-based and web- based portals. The proposed rule change removes these repetitive references as the ``RTRS Portals'' section of the RTRS IF is the appropriate section to uniformly describe the policies governing each RTRS portal. The proposed rule change also consolidates several other repetitive references in the RTRS IF. (iv) Uniformity of Rule References As RTRS is the facility for the collection of information about transactions occurring in the municipal securities market, the RTRS IF includes references to dealers' obligations under Rule G-14. The proposed rule change would ensure that, if Rule G-14 is referenced, the language of Rule G-14 would be used in the RTRS IF. To that end, the proposed rule change would replace the section titled ``Submission of Transaction Reports by Intermediaries'' with a new section titled ``Submission of Transaction Reports'' which references relevant provisions of Rule G-14. By including direct references to Rule G-14, the proposed rule change would provide increased certainty regarding transaction reporting obligations. To ensure consistency within the RTRS IF, the proposed rule change would also replace certain uses of the term ``dealer'' with the term ``submitter.'' The term ``dealer'' would be used when referencing obligations under Rule G-14 and the term ``submitter'' would be used when [[Page 17202]] referring to an RTRS user who accesses the system to make a submission, whether the user is a dealer or a service bureau acting on behalf of a dealer. (v) Improved Descriptions of RTRS Functionality As part of its comprehensive review, the MSRB analyzed whether aspects of the RTRS IF could be enhanced to more accurately or concisely describe RTRS functionality and operation to better serve the RTRS IF's intention of describing the basic functionality of, and the high-level parameters by which the MSRB operates, RTRS. One area where the MSRB determined that an enhanced description of RTRS functionality would be beneficial is in reference to real-time dissemination. The RTRS IF frequently references that RTRS disseminates transaction data in ``real-time'' but does not uniformly describe ``real-time'' processing. Instead, the RTRS IF suggests that real-time is ``as soon as it is received'' or ``as soon as possible.'' In addition, in one section, the RTRS IF provides that ``[t]he MSRB anticipates that, during peak traffic periods, these automated functions will be accomplished within two minutes, and during lighter periods will be accomplished within a few seconds.'' The proposed rule change would clarify that real-time dissemination for RTRS functionality occurs ``promptly following processing in RTRS.'' This description of real-time dissemination reflects the fact that, prior to dissemination, RTRS, among other things, conducts format checks, validates the submitter, timestamps and assesses the trade against the reporting deadline and conducts content checks. The proposed rule change would also clarify the impact of failing certain checks in RTRS processing. The proposed rule change would revise the RTRS IF to highlight that messages that fail certain format or content checks are not processed further and an error message describing the deficiency is returned to the submitter. The RTRS Users Manual sets forth additional information regarding format and content checks.\10\ --------------------------------------------------------------------------- \10\ The RTRS Users Manual is currently available on the MSRB's website at http://www.msrb.org/Market-Transparency/Trade-Data/RTRS-Users-Manual.aspx. --------------------------------------------------------------------------- (vi) Removal of Certain Technical and Ancillary Information Given that the purpose of the RTRS IF is to set forth the material aspects of RTRS' operation, highly technical and ancillary information regarding RTRS is more appropriately left to the RTRS Users Manual and similar documents that the MSRB maintains that describe RTRS functionality. Specifically, the MSRB maintains two specifications documents for RTRS, the ``Specifications for Real-Time Reporting of Municipal Securities Transactions'' (``RTRS Reporting Specifications'') and the ``Specifications Document for the RTRS Subscription Service'' (``RTRS Subscription Specifications''). Both of these specifications documents are available on the MSRB's publicly available website, msrb.org.\11\ The RTRS Reporting Specifications provide detailed information regarding, among other things, input and output specifications, message formatting, structure and flow and error messages and feedback. The RTRS Subscription Specifications provide specifications and requirements to access, retrieve and understand RTRS subscription services. The MSRB also maintains an ``MSRB Subscription Services Price List'' on msrb.org to inform interested individuals about the pricing for RTRS subscription services. --------------------------------------------------------------------------- \11\ The RTRS Reporting Specifications are currently available on the MSRB's website at http://www.msrb.org/msrb1/RTRS/RTRS-Specifications.pdf. The RTRS Subscription Specifications are currently available on the MSRB's website at http://www.msrb.org/msrb1/RTRS/Specifications-Document-for-RTRS-Subscription-Service.pdf. --------------------------------------------------------------------------- The proposed rule change would remove certain technical and ancillary information from the RTRS IF that is presented in the RTRS Reporting Specifications, RTRS Subscription Specifications and MSRB Subscription Services Price List. The removal of such information will streamline the RTRS IF by presenting the information that is necessary to describe the material aspects of the operation of RTRS. 2. Statutory Basis The MSRB believes that the proposed rule change is consistent with the provisions of Section 15B(b)(2)(C) of the Act.\12\ which provides that the MSRB's rules shall: --------------------------------------------------------------------------- \12\ 15 U.S.C. 78o-4(b)(2)(C). 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. Specifically, the proposed rule change would contribute to the MSRB's continuing efforts to improve market transparency by improving business continuity and the security of RTRS subscriber connections. As RTRS disseminates information about transactions occurring in the municipal securities market, any improvement with respect to the resiliency and security of RTRS will further perfect the mechanism of a free and open market in municipal securities by making it more likely that the market is continuously provided with transaction information. The RTRS enhancements will improve the speed of dissemination of trade information and enhance the resiliency of RTRS by allowing RTRS to failover to backup sites more efficiently. This re-engineering of RTRS will also migrate the Real-Time Service to encrypted messaging and further enhance the security of subscriber connections. The MSRB is continuously seeking to enhance system security and the RTRS re- engineering is consistent with this objective. The proposed rule change would also increase clarity and accuracy with respect to the description of basic RTRS functionality and the high-level parameters by which the MSRB operates RTRS. The MSRB believes that dealers, submitters and subscribers will benefit from a clearer understanding of this information. While additional technical information regarding RTRS is set forth in the RTRS Users Manual and similar documents that the MSRB maintains, the MSRB believes that it is important that fundamental information regarding RTRS be clearly described in the RTRS IF and the proposed rule change serves this purpose. B. Self-Regulatory Organization's Statement on Burden on Competition Section 15B(b)(2)(C) of the Act \13\ requires that MSRB rules not be designed to impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change consists of revisions to the RTRS IF to better align the language of the information facility to the MSRB's administration of RTRS. The proposed rule change seeks to clarify existing services and make minor changes of a technical nature to the information facility resulting from the re-engineering. The proposed rule change will not modify the manner in which the MSRB administers RTRS in collecting and disseminating information on transactions in the municipal securities market. Accordingly, the MSRB does not believe [[Page 17203]] that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the Act. --------------------------------------------------------------------------- \13\ Id. --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Board did not solicit comment on the proposed change. Therefore, there are no comments on the proposed rule change received from members, participants or others. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b- 4(f)(6) thereunder.\15\ --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A). \15\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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 Act. 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-MSRB-2018-02 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549. All submissions should refer to File Number SR-MSRB-2018-02. 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 website (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 website 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 MSRB. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-MSRB-2018-02 and should be submitted on or before May 9, 2018. For the Commission, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-08052 Filed 4-17-18; 8:45 am] BILLING CODE 8011-01-P
![17200 Federal Register / Vol. 83, No. 75 / Wednesday, April 18, 2018 / Notices
conditioned upon the Exchange Reporting System (‘‘RTRS’’) to reflect Background
promptly providing written notice to its the re-engineered RTRS and modernize The MSRB is enhancing certain RTRS
members whenever MIAX Options and consolidate the RTRS information components, including improving
changes a rule that the Exchange has facility (‘‘RTRS IF’’) (‘‘proposed rule business continuity and connectivity
incorporated by reference. change’’). The MSRB has filed the services to RTRS and migrating
Accordingly, It is ordered, pursuant to proposed rule change under Section subscription products to encrypted
Section 36 of the Exchange Act,16 that 19(b)(3)(A)(iii) of the Act 3 and Rule solutions.6 The purpose of the proposed
the Exchange is exempt from the rule 19b-4(f)(6) 4 thereunder, as a rule change is to revise the RTRS IF to
filing requirements of Section 19(b) of noncontroversial rule change that reflect this re-engineering of RTRS and
the Exchange Act solely with respect to renders the proposal effective upon to modernize and consolidate the RTRS
changes to the rules identified in its filing. The proposed rule change would IF.
request that incorporate by reference be made operative on May 29, 2018. Since the re-engineering would result
certain MIAX Options rules that are the The text of the proposed rule change in revisions to the RTRS IF, the MSRB
result of changes to such MIAX Options’ is available on the MSRB’s website at took the opportunity to perform a
rules, provided that the Exchange www.msrb.org/Rules-and- comprehensive review of the RTRS IF to
promptly provides written notice to its Interpretations/SEC-Filings/2018- evaluate whether it sufficiently and
members whenever MIAX Options Filings.aspx, at the MSRB’s principal clearly describes the basic functionality
proposes to change a rule that the office, and at the Commission’s Public and operation of RTRS. The MSRB
Exchange has incorporated by reference. Reference Room. believes that dealers, submitters 7 and
For the Commission, by the Division of subscribers 8 benefit from this
Trading and Markets, pursuant to delegated II. Self-Regulatory Organization’s
Statement of the Purpose of, and information being provided in a concise
authority.17 and organized manner.
Eduardo A. Aleman, Statutory Basis for, the Proposed Rule
Assistant Secretary. Change Proposed Amendments to the RTRS
Information Facility
[FR Doc. 2018–08054 Filed 4–17–18; 8:45 am] In its filing with the Commission, the
BILLING CODE 8011–01–P MSRB included statements concerning (i) Subscriber Connectivity Changes
the purpose of and basis for the The RTRS IF sets forth RTRS
proposed rule change and discussed any subscribers’ options for connecting to
SECURITIES AND EXCHANGE comments it received on the proposed the RTRS Real-Time Transaction Data
COMMISSION rule change. The text of these statements Subscription Service (‘‘Real-Time
[Release No. 34–83038; File No. SR–MSRB– may be examined at the places specified Service’’). Currently, subscribers have
2018–02] in Item IV below. The MSRB has the option to connect to the Real-Time
prepared summaries, set forth in Service either over the internet or by
Self-Regulatory Organizations; Sections A, B, and C below, of the most leased line. As part of the re-
Municipal Securities Rulemaking significant aspects of such statements. engineering, the MSRB will require that
Board; Notice of Filing and Immediate subscribers to the Real-Time Service
Effectiveness of a Proposed Rule A. Self-Regulatory Organization’s
Statement of the Purpose of, and utilize the internet to connect to RTRS.
Change to the MSRB’s Facility for the As a result, subscribers will no longer be
Real-Time Transaction Reporting Statutory Basis for, the Proposed Rule
Change able to use leased lines for the Real-
System Time Service.
April 12, 2018.
1. Purpose With respect to messaging with RTRS,
Pursuant to Section 19(b)(1) of the MSRB Rule G–14, on transaction subscribers currently must use either
Securities Exchange Act of 1934 (the reporting, requires brokers, dealers and the MQ Series messaging software or a
‘‘Act’’ or ‘‘Exchange Act’’) 1 and Rule municipal securities dealers (‘‘dealers’’) Transmission Control Protocol (‘‘TCP’’)
19b–4 thereunder,2 notice is hereby to report executed transactions in Socket connection. As part of the re-
given that on April 2, 2018 the municipal securities to RTRS within 15 engineering, the MSRB will offer
Municipal Securities Rulemaking Board minutes of the time of trade, with subscribers a new web service as an
(the ‘‘MSRB’’ or ‘‘Board’’) filed with the limited exceptions. RTRS disseminates option for messaging with RTRS and
Securities and Exchange Commission information about transactions retire the MQ Series messaging software.
(‘‘Commission’’) the proposed rule occurring in the municipal securities Moreover, the MSRB will require that
change as described in Items I, II, and market to RTRS subscription services, any TCP socket connections utilized for
III below, which Items have been including to the MSRB’s Electonic messaging with RTRS are secure.
prepared by the MSRB. The Municipal Market Access System The MSRB is implementing these
Commission is publishing this notice to (EMMA®). The RTRS IF sets forth the subscriber connectivity changes to
solicit comments on the proposed rule improve business continuity by
material aspects of the operation of
change from interested persons. allowing for more efficient failovers to
RTRS by describing the basic
I. Self-Regulatory Organization’s functionality of, and the high-level 6 The MSRB has reported the enhancements to
Statement of the Terms of Substance of parameters by which the MSRB RTRS components to the SEC consistent with
the Proposed Rule Change operates, RTRS. The proposed rule Regulation Systems Compliance and Integrity. See
change consists of amendments to the Exchange Act Release No. 73639 (November 19,
The MSRB filed with the Commission RTRS IF.5 2014), 79 FR 72251 (December 5, 2014).
amozie on DSK30RV082PROD with NOTICES
a proposed rule change to the MSRB’s 7 As defined in Rule G–14, a submitter means a
facility for the Real-Time Transaction dealer, or service bureau acting on behalf of a
3 15 U.S.C. 78s(b)(3)(A)(iii). dealer, that has been authorized to interface with
4 17 CFR 240.19b–4(f)(6). RTRS for the purposes of entering transaction data
16 15 U.S.C. 78mm. 5 The RTRS facility is currently available on the into the system.
17 17 CFR 200.30–3(a)(76).
MSRB’s website at http://www.msrb.org/Rules-and- 8 Subscriber refers to an individual or entity that
1 15 U.S.C. 78s(b)(1).
Interpretations/MSRB-Rules/Facilities/RTRS- receives RTRS data through an MSRB subscription
2 17 CFR 240.19b–4. Facility.aspx. service.
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referring to an RTRS user who accesses that the MSRB maintains that describe continuing efforts to improve market
the system to make a submission, RTRS functionality. transparency by improving business
whether the user is a dealer or a service Specifically, the MSRB maintains two continuity and the security of RTRS
bureau acting on behalf of a dealer. specifications documents for RTRS, the subscriber connections. As RTRS
‘‘Specifications for Real-Time Reporting disseminates information about
(v) Improved Descriptions of RTRS
of Municipal Securities Transactions’’ transactions occurring in the municipal
Functionality
(‘‘RTRS Reporting Specifications’’) and securities market, any improvement
As part of its comprehensive review, the ‘‘Specifications Document for the with respect to the resiliency and
the MSRB analyzed whether aspects of RTRS Subscription Service’’ (‘‘RTRS security of RTRS will further perfect the
the RTRS IF could be enhanced to more Subscription Specifications’’). Both of mechanism of a free and open market in
accurately or concisely describe RTRS these specifications documents are municipal securities by making it more
functionality and operation to better available on the MSRB’s publicly likely that the market is continuously
serve the RTRS IF’s intention of available website, msrb.org.11 The RTRS provided with transaction information.
describing the basic functionality of, Reporting Specifications provide The RTRS enhancements will
and the high-level parameters by which detailed information regarding, among improve the speed of dissemination of
the MSRB operates, RTRS. other things, input and output trade information and enhance the
One area where the MSRB determined specifications, message formatting, resiliency of RTRS by allowing RTRS to
that an enhanced description of RTRS structure and flow and error messages failover to backup sites more efficiently.
functionality would be beneficial is in and feedback. The RTRS Subscription This re-engineering of RTRS will also
reference to real-time dissemination. Specifications provide specifications migrate the Real-Time Service to
The RTRS IF frequently references that and requirements to access, retrieve and encrypted messaging and further
RTRS disseminates transaction data in understand RTRS subscription services. enhance the security of subscriber
‘‘real-time’’ but does not uniformly The MSRB also maintains an ‘‘MSRB connections. The MSRB is continuously
describe ‘‘real-time’’ processing. Instead, Subscription Services Price List’’ on seeking to enhance system security and
the RTRS IF suggests that real-time is msrb.org to inform interested the RTRS re-engineering is consistent
‘‘as soon as it is received’’ or ‘‘as soon individuals about the pricing for RTRS with this objective.
as possible.’’ In addition, in one section, subscription services. The proposed rule change would also
the RTRS IF provides that ‘‘[t]he MSRB The proposed rule change would increase clarity and accuracy with
anticipates that, during peak traffic remove certain technical and ancillary respect to the description of basic RTRS
periods, these automated functions will information from the RTRS IF that is functionality and the high-level
be accomplished within two minutes, presented in the RTRS Reporting parameters by which the MSRB operates
and during lighter periods will be Specifications, RTRS Subscription RTRS. The MSRB believes that dealers,
accomplished within a few seconds.’’ Specifications and MSRB Subscription submitters and subscribers will benefit
The proposed rule change would from a clearer understanding of this
Services Price List. The removal of such
clarify that real-time dissemination for information. While additional technical
information will streamline the RTRS IF
RTRS functionality occurs ‘‘promptly information regarding RTRS is set forth
by presenting the information that is
following processing in RTRS.’’ This in the RTRS Users Manual and similar
necessary to describe the material
description of real-time dissemination documents that the MSRB maintains,
aspects of the operation of RTRS.
reflects the fact that, prior to the MSRB believes that it is important
dissemination, RTRS, among other 2. Statutory Basis that fundamental information regarding
things, conducts format checks, The MSRB believes that the proposed RTRS be clearly described in the RTRS
validates the submitter, timestamps and rule change is consistent with the IF and the proposed rule change serves
assesses the trade against the reporting provisions of Section 15B(b)(2)(C) of the this purpose.
deadline and conducts content checks. Act.12 which provides that the MSRB’s
The proposed rule change would also B. Self-Regulatory Organization’s
rules shall: Statement on Burden on Competition
clarify the impact of failing certain
checks in RTRS processing. The be designed to prevent fraudulent and Section 15B(b)(2)(C) of the Act 13
proposed rule change would revise the manipulative acts and practices, to promote
just and equitable principles of trade, to
requires that MSRB rules not be
RTRS IF to highlight that messages that foster cooperation and coordination with designed to impose any burden on
fail certain format or content checks are persons engaged in regulating, clearing, competition not necessary or
not processed further and an error settling, processing information with respect appropriate in furtherance of the
message describing the deficiency is to, and facilitating transactions in municipal purposes of the Act. The proposed rule
returned to the submitter. The RTRS securities and municipal financial products, change consists of revisions to the RTRS
Users Manual sets forth additional to remove impediments to and perfect the IF to better align the language of the
information regarding format and mechanism of a free and open market in information facility to the MSRB’s
content checks.10 municipal securities and municipal financial
products, and, in general, to protect administration of RTRS. The proposed
(vi) Removal of Certain Technical and investors, municipal entities, obligated rule change seeks to clarify existing
Ancillary Information persons, and the public interest. services and make minor changes of a
technical nature to the information
Given that the purpose of the RTRS IF Specifically, the proposed rule change
facility resulting from the re-
is to set forth the material aspects of would contribute to the MSRB’s
engineering. The proposed rule change
RTRS’ operation, highly technical and will not modify the manner in which
11 The RTRS Reporting Specifications are
ancillary information regarding RTRS is
amozie on DSK30RV082PROD with NOTICES
currently available on the MSRB’s website at http:// the MSRB administers RTRS in
more appropriately left to the RTRS www.msrb.org/msrb1/RTRS/RTRS- collecting and disseminating
Users Manual and similar documents Specifications.pdf. The RTRS Subscription information on transactions in the
Specifications are currently available on the
10 The RTRS Users Manual is currently available MSRB’s website at http://www.msrb.org/msrb1/
municipal securities market.
on the MSRB’s website at http://www.msrb.org/ RTRS/Specifications-Document-for-RTRS- Accordingly, the MSRB does not believe
Market-Transparency/Trade-Data/RTRS-Users- Subscription-Service.pdf.
Manual.aspx. 12 15 U.S.C. 78o–4(b)(2)(C). 13 Id.
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![Federal Register / Vol. 83, No. 75 / Wednesday, April 18, 2018 / Notices 17203
that the proposed rule change will result comments more efficiently, please use on the Commission’s website at
in any burden on competition that is not only one method. The Commission will www.sec.gov.
necessary or appropriate in furtherance post all comments on the Commission’s MATTERS TO BE CONSIDERED: The
of the Act. internet website (http://www.sec.gov/ Commission staff will host a roundtable
rules/sro.shtml). Copies of the on the market structure for thinly-traded
C. Self-Regulatory Organization’s
submission, all subsequent exchange-listed securities. The
Statement on Comments on the
amendments, all written statements roundtable is open to the public and the
Proposed Rule Change Received From
with respect to the proposed rule public is invited to submit written
Members, Participants, or Others
change that are filed with the comments. This Sunshine Act notice is
The Board did not solicit comment on Commission, and all written being issued because a majority of the
the proposed change. Therefore, there communications relating to the Commission may attend the roundtable.
are no comments on the proposed rule proposed rule change between the The agenda for the roundtable will
change received from members, Commission and any person, other than focus on the challenges faced by
participants or others. those that may be withheld from the participants in the market for thinly-
III. Date of Effectiveness of the public in accordance with the traded exchange-listed securities, and
Proposed Rule Change and Timing for provisions of 5 U.S.C. 552, will be potential improvements that might be
Commission Action available for website viewing and considered to the market structure for
printing in the Commission’s Public these securities.
Because the foregoing proposed rule Reference Room, 100 F Street NE, CONTACT PERSON FOR MORE INFORMATION:
change does not: (i) Significantly affect Washington, DC 20549 on official For further information, please contact
the protection of investors or the public business days between the hours of Brent J. Fields from the Office of the
interest; (ii) impose any significant 10:00 a.m. and 3:00 p.m. Copies of the Secretary at (202) 551–5400.
burden on competition; and (iii) become filing also will be available for
operative for 30 days from the date on Dated: April 16, 2018.
inspection and copying at the principal
which it was filed, or such shorter time office of the MSRB. All comments Brent J. Fields,
as the Commission may designate, it has received will be posted without change. Secretary.
become effective pursuant to Section Persons submitting comments are [FR Doc. 2018–08254 Filed 4–16–18; 4:15 pm]
19(b)(3)(A) of the Act 14 and Rule 19b– cautioned that we do not redact or edit BILLING CODE 8011–01–P
4(f)(6) thereunder.15 personal identifying information from
At any time within 60 days of the comment submissions. You should
filing of the proposed rule change, the submit only information that you wish SECURITIES AND EXCHANGE
Commission summarily may to make available publicly. All COMMISSION
temporarily suspend such rule change if submissions should refer to File [Release No. 34–83041; File No. SR–CBOE–
it appears to the Commission that such Number SR–MSRB–2018–02 and should 2018–027]
action is necessary or appropriate in the be submitted on or before May 9, 2018.
public interest, for the protection of Self-Regulatory Organizations; Cboe
investors, or otherwise in furtherance of For the Commission, pursuant to delegated
authority.16 Exchange, Inc.; Notice of Filing and
the purposes of the Act. Immediate Effectiveness of a Proposed
Eduardo A. Aleman,
IV. Solicitation of Comments Rule Change Relating to the Select
Assistant Secretary.
Customer Options Reduction Program
Interested persons are invited to [FR Doc. 2018–08052 Filed 4–17–18; 8:45 am]
submit written data, views, and BILLING CODE 8011–01–P April 12, 2018.
arguments concerning the foregoing, Pursuant to Section 19(b)(1) of the
including whether the proposed rule Securities Exchange Act of 1934 (the
change is consistent with the Act. SECURITIES AND EXCHANGE ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Comments may be submitted by any of COMMISSION notice is hereby given that on April 2,
the following methods: 2018, Cboe Exchange, Inc. (the
Sunshine Act Meetings ‘‘Exchange’’ or ‘‘Cboe Options’’) filed
Electronic Comments
with the Securities and Exchange
• Use the Commission’s internet TIME AND DATE: Notice is hereby given, Commission (the ‘‘Commission’’) the
comment form (http://www.sec.gov/ pursuant to the provisions of the proposed rule change a described in
rules/sro.shtml); or Government in the Sunshine Act, Public Items I, II, and III below, which Items
• Send an email to rule-comments@ Law 94–409, that the Securities and have been prepared by the Exchange.
sec.gov. Please include File Number SR– Exchange Commission staff will hold a The Commission is publishing this
MSRB–2018–02 on the subject line. public roundtable on Monday, April 23, notice to solicit comments on the
2018 at 9:30 a.m. proposed rule change from interested
Paper Comments
PLACE: The roundtable will be held in persons.
• Send paper comments in triplicate
Multi-Purpose Room LL–006 at the I. Self-Regulatory Organization’s
to Secretary, Securities and Exchange
Commission’s headquarters, 100 F Statement of the Terms of Substance of
Commission, 100 F Street NE,
Street NE, Washington, DC. the Proposed Rule Change
Washington, DC 20549.
All submissions should refer to File STATUS: The roundtable will begin at The Exchange proposes to amend the
amozie on DSK30RV082PROD with NOTICES
Number SR–MSRB–2018–02. This file 9:30 a.m. and will be open to the public. Select Customer Options Reduction
number should be included on the Seating will be on a first-come, first- program.
subject line if email is used. To help the served basis. Doors will open at 9:00 The text of the proposed rule change
Commission process and review your a.m. Visitors will be subject to security is also available on the Exchange’s
checks. The roundtable will be webcast
14 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
15 17 CFR 240.19b–4(f)(6). 16 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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Document Created: 2018-04-18 03:00:05
Document Modified: 2018-04-18 03:00:05
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 17200 |
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