9436 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations 

1Articles 30–1 through 30–19 [17 CFR 200.30–1 

through 200.30–19]. 

2Articles 10 through 27 [17 CFR 200.10 through 

200.27]. 

3Article 30–2. 

4Taxonomies; www.sec.gov/structureddata/data_

taxonomies. 

5By referencing the same underlying taxonomy, 

structured data from different filers and over 

different reporting periods can be instantly 

aggregated and compared for analysis. Currently, 

DERA’s website hosts the U.S. Generally Accepted 

Accounting Principles (‘‘GAAP’’) eXtensible 

Business Reporting Language (‘‘XBRL’’) Taxonomy, 

the International Financial Reporting Standards 

(‘‘IFRS’’) Taxonomy, the U.S. Mutual Fund Risk/ 

Return XBRL Taxonomy, the SEC Reporting 

Taxonomies (‘‘SRT’’), the Record of Credit Ratings 

XBRL Taxonomy, the Draft Closed-End Fund 

Taxonomy, and the Draft Variable Insurance 

Product Taxonomy. 

6Currently, DERA’s website hosts the Order 

Handling Data Schema for Broker-Dealers, the 

Exchange Transaction Fee Summary Schema for 

National Market System Stocks, the Draft Volcker 

Rule Metrics Instructions and Technical 

Specifications, and the Draft Financial Products 

Markup Language (‘‘FpML’’) and FIXML Schemas 

for Security-Based Swap Data Repositories. 

(i) Airbus Helicopters Alert Service 

Bulletin No. AS350–52.00.54, Revision 1, 

dated July 30, 2020. 

(ii) Airbus Helicopters Alert Service 

Bulletin No. AS355–52.00.32, Revision 1, 

dated July 30, 2020. 

(3) For Airbus Helicopters service 

information identified in this AD, contact 

Airbus Helicopters, 2701 N Forum Drive, 

Grand Prairie, TX 75052; telephone 972–641– 

0000 or 800–232–0323; fax 972–641–3775; or 

at https://www.airbus.com/helicopters/ 

services/technical-support.html. 

(4) You may view this service information 

at the FAA, Office of the Regional Counsel, 

Southwest Region, 10101 Hillwood Pkwy., 

Room 6N–321, Fort Worth, TX 76177. For 

information on the availability of this 

material at the FAA, call 817–222–5110. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

email fedreg.legal@nara.gov, or go to: https:// 

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued on January 29, 2021. 

Gaetano A. Sciortino, 

Deputy Director for Strategic Initiatives, 

Compliance & Airworthiness Division, 

Aircraft Certification Service. 

[FR Doc. 2021–03063 Filed 2–10–21; 4:15 pm] 

BILLING CODE 4910–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 200 

[Release Nos. 33–10913; 34–90787; IA– 

5656; IC–34151] 

Modernization of Delegations of 

Authority to Commission Staff and 

Division and Office Descriptions 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: The Securities and Exchange 

Commission (the ‘‘Commission’’) is 

amending its rules delegating authority 

to the Commission’s staff to modernize 

these rules and more efficiently use the 

Commission’s resources, as well as 

descriptions of the responsibilities of its 

divisions and offices. 

DATES: This rule is effective February 

16, 2021. 

FOR FURTHER INFORMATION CONTACT: J. 

Matthew DeLesDernier, Assistant 

Secretary, Office of the Secretary, (202) 

551–5400, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–9040. 

SUPPLEMENTARY INFORMATION: The 

Commission is adopting new rules 17 

CFR 200.19e (‘‘Article 19e’’), 17 CFR 

200.30–2 (‘‘Article 30–2’’), and 17 CFR 

200.30–3b (‘‘Article 30–3b’’); we are 

adding and reserving 17 CFR 200.20a; 

and we are adopting amendments to: 

Commission 

reference 

CFR citation 

(17 CFR) 

Article 10 ............................... 200.10 

Article 11 ............................... 200.11 

Article 13 ............................... 200.13 

Article 13a ............................. 200.13a 

Article 13b ............................. 200.13b 

Article 14 ............................... 200.14 

Article 16 ............................... 200.16 

Article 17 ............................... 200.17 

Article 19a ............................. 200.19a 

Article 19c ............................. 200.19c 

Article 19d ............................. 200.19d 

Article 21 ............................... 200.21 

Article 21a ............................. 200.21a 

Article 23a ............................. 200.23a 

Article 24 ............................... 200.24 

Article 24a ............................. 200.24a 

Article 26a ............................. 200.26a 

Article 27 ............................... 200.27 

Article 30–1 ........................... 200.30–1 

Article 30–3 ........................... 200.30–3 

Article 30–3a ......................... 200.30–3a 

Article 30–5 ........................... 200.30–5 

Article 30–6 ........................... 200.30–6 

Article 30–7 ........................... 200.30–7 

Article 30–10 ......................... 200.30–10 

Article 30–11 ......................... 200.30–11 

Article 30–13 ......................... 200.30–13 

Article 30–14 ......................... 200.30–14 

Article 30–15 ......................... 200.30–15 

Article 30–16 ......................... 200.30–16 

Article 30–18 ......................... 200.30–18 

I. Discussion 

The Commission is amending its rules 

delegating authority to the 

Commission’s staff. Currently, the 

Commission delegates to its staff certain 

authorities that would otherwise be 

exercised only by the Commission itself. 

These delegations are codified in our 

Rules of General Organization,1

alongside descriptions of the 

responsibilities of the divisions and 

offices.2 We are amending these rules to 

better reflect the way the Commission 

conducts its business and to use our 

resources more efficiently. In some 

cases, authority previously granted to a 

particular member of the staff is no 

longer appropriate, because, for 

example, the authority references a rule 

or process that has since been amended 

or rescinded or because the 

responsibility for the delegated activity 

should now rest with another member 

of the staff. In other instances, authority 

that is currently exercised only by the 

Commission could be exercised by the 

staff with appropriate Commission 

oversight, thereby preserving the 

Commission’s resources for other 

activities. In addition, certain of the 

descriptions are no longer an accurate 

reflection of the responsibilities of the 

respective divisions and offices. We 

have determined, therefore, to make a 

number of amendments to our rules 

delegating authority to the staff and to 

the division and office descriptions, as 

discussed in detail below. 

A. Delegation to the Director and Chief 

Economist of the Division of Economic 

and Risk Analysis 

We are delegating authority to the 

Director of the Division of Economic 

and Risk Analysis (‘‘DERA’’) and Chief 

Economist to update taxonomies and 

schemas required for use in Commission 

filings and made available on the 

Commission’s website.3 DERA 

maintains on the Commission’s website 

a collection of taxonomies and schemas 

related to certain Commission 

structured data reporting requirements.4

A taxonomy is a list of standardized 

disclosure elements that covers a variety 

of concepts, and can contain descriptive 

labels, definitions, and authoritative 

references to standards and Commission 

regulations.5 Meanwhile, a schema 

defines the elements and attributes of a 

structured data report so that the report 

is appropriately constrained for 

machine-readability.6 Updates to these 

taxonomies and schemas are ministerial 

in nature. The updates generally reflect 

changes to the underlying standard— 

such as to U.S. generally accepted 

accounting principles—to the 

underlying technology, to industry 

practice, or to Commission 

requirements. We believe that 

delegating authority for updates to 

taxonomies and schemas to the Director 

of DERA and Chief Economist will 


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Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations 9437 

7Article 23a. 

8Article 30–3(a)(91). 

9Article 30–3(a)(93). 

10Article 30–3(a)(94). 

11Article 30–3(a)(92). 

12Examinations was previously known as the 

Office of Compliance Inspections and 

Examinations, or ‘‘OCIE.’’ See Public Statement on 

the Renaming of the Office of Compliance 

Inspections and Examinations to the Division of 

Examinations (Dec. 17, 2020), available at https:// 

www.sec.gov/news/public-statement/jointstatement-division-examinations. 

13See infra footnotes 14–20 and accompanying 

text. 

14Rule 15Fb2–1(d). 

15 15 U.S.C. 78a et seq.; Article 30–3(a)(86); 

Article 30–18(m)(1)(i). 

16 17 CFR 240.15Fb2–1(e). 

17Article 30–3(a)(3). 

18Article 30–3(a)(87); Article 30–18(m)(1)(ii). 

19Article 30–3(a)(3)(ii). 

20Article 30–3(a)(88); Articles 30–18(m)(1)(iii). 

21Rule 194 (17 CFR 201.194). 

22Article 30–3(a)(90). 

23Article 30–3(a)(4)(i) (delegating authority to the 

Director of TM to grant applications with respect to 

membership in, association with a member of, or 

Continued 

conserve our resources and increase 

efficiency, as these updates are 

ministerial in nature and in the normal 

course of business. In addition, we are 

updating the description of the 

responsibilities of the Director of DERA 

and Chief Economist in our rules to 

include that person’s current title and 

responsibilities.7

B. Delegation to the Director of the 

Division of Trading and Markets 

We are amending our rules delegating 

authority to the Director of the Division 

of Trading and Markets (‘‘TM’’), in some 

instances delegating new authority and, 

in others, eliminating current authority. 

1. Delegation of Advance Notice 

Authority 

We are delegating authority to the 

Director of TM for the publication of an 

advance notice (‘‘Advance Notice’’) filed 

by a registered clearing agency 

designated as systemically important (a 

‘‘DCA’’) by the Financial Stability 

Oversight Council; 8 for the issuance of 

a request that the DCA provide any 

information necessary to assess the 

effect a proposed change would have on 

the nature or level of risks associated 

with such DCA’s payment, clearing, or 

settlement activities and the sufficiency 

of any proposed risk management 

techniques; 9 for the extension of the 

period of review when the proposed 

changes in an Advance Notice raise 

novel or complex issues and publication 

of notice thereof; 10 and for the 

publication of a withdrawal of an 

Advance Notice.11 The current process 

associated with Advance Notice 

processing requires Commission action 

to, among other things, publish notice of 

an Advance Notice and any 

amendments thereto; make an 

additional information request; extend 

the period of review of the Advance 

Notice when the proposed changes in an 

Advance Notice raise novel or complex 

issues; or publish notice of a withdrawal 

of an Advance Notice. These actions do 

not raise significant issues for 

Commission consideration and are more 

administrative in nature in that they 

provide notice to the public on the 

status of an Advance Notice proposal 

and seek public comment for 

information to assist the Commission as 

it considers each such action 

individually. 

We believe that delegating authority 

for Advance Notices will conserve our 

resources and increase efficiency, as the 

processing functions for Advance 

Notices are, in each instance, procedural 

matters that are ministerial in nature 

and in the normal course of business. In 

addition, this delegation will harmonize 

the staff’s authority over issuance of 

Advance Notices and related selfregulatory organization (‘‘SRO’’) rule 

change filings. Finally, the expedited 

process that would result from a 

delegation of authority to affect these 

matters would provide TM and the 

Commission additional time to analyze 

and consider a final determination on 

an Advance Notice proposal after the 

comment period has closed. 

2. Delegation of Security-Based Swap 

Authority to the Director of TM and the 

Director of the Division of Examinations 

We are delegating authority to the 

Director of TM and the Director of the 

Division of Examinations 

(‘‘Examinations’’) 12 in connection with 

applications for registration as a 

security-based swap dealer or major 

security-based swap participant (‘‘SBS 

Entities’’).13 We believe that permitting 

the Director of TM and the Director of 

Examinations to share this authority 

will more efficiently allocate agency 

resources. First, we are delegating 

authority to authorize issuance of orders 

granting ongoing registration to SBS 

Entities pursuant to 17 CFR 240.15Fb2– 

1(d) 14 under the Securities Exchange 

Act of 1934 (the ‘‘Exchange Act’’).15

Once an applicant is conditionally 

registered as an SBS entity, the 

Commission may grant or deny ongoing 

registration. The Commission will grant 

ongoing registration if it finds that the 

requirements of section 15F(b) of the 

Exchange Act are satisfied.16 We believe 

that delegating the authority to the 

Director of TM and the Director of 

Examinations to make the necessary 

findings and grant ongoing registration 

will make efficient use of our resources, 

while still reserving for Commission 

consideration any recommendation to 

deny ongoing registration. Similar 

delegated authority exists for the 

Director of TM to grant registration as a 

broker or dealer.17

Second, we are delegating authority to 

the Director of TM and the Director of 

Examinations to authorize the issuance 

of orders cancelling registrations of SBS 

Entities, or pending applications for 

registration, if such SBS Entities or 

applicants for registration are no longer 

in existence or have ceased to do 

business as an SBS Entity.18 We believe 

that delegated authority to cancel the 

registrations of, or applications for 

registration by, non-operational SBS 

Entities will make efficient use of our 

resources, while still reserving for 

Commission consideration any 

recommendation to revoke the 

registration of an operating SBS Entity. 

Similar delegated authority exists for 

staff to cancel registrations of nonoperational brokers and dealers.19

Third, we are delegating to the 

Director of TM and the Director of 

Examinations authority to determine 

whether notices of withdrawal from 

registration by SBS Entities shall 

become effective sooner or later than the 

default 60-day waiting period.20 We 

believe that delegated authority to 

change the waiting period for 

withdrawal of registration as an SBS 

Entity will make efficient use of our 

resources by allowing staff to determine, 

and communicate to registrants, the date 

on which a withdrawal of registration 

will become effective. 

3. Delegation of SBS Entity Application 

Authority 

We are also delegating authority to the 

Director of TM to grant certain 

applications made by SBS Entities. 

Section 201.194 of our Rules of Practice 

provides for applications by SBS 

Entities for statutorily disqualified 

associated persons to effect or be 

involved in effecting security-based 

swaps.21 We are delegating authority to 

the Director of TM to grant such 

applications.22 We believe that 

delegated authority to grant these 

applications will make efficient use of 

the Commission’s resources, while still 

preserving the Commission’s ability to 

deny applications. We have already 

delegated authority to the Director of 

TM to grant certain similar applications 

with respect to an SRO.23


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9438 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations 

participation in, a self-regulatory organization and 

for other relief as to persons who are subject to an 

applicable disqualification where such 

relationships or other relief have been approved or 

recommended by a self-regulatory organization); see 

also 17 CFR 200.30–4(a)(5) [Article 30–4(a)(5)] 

(delegating authority to the Director of the Division 

of Enforcement to grant or deny applications made 

pursuant to 17 CFR 201.193 [Rule 193 of the 

Commission’s Rules of Practice] by barred 

individuals for consent to associate with other types 

of registrants); Article 30–1(10) (delegating 

authority to the Director of CF to grant or deny 

applications for relief from being considered an 

‘‘ineligible issuer’’ under 17 CFR 230.403 

[Securities Act Rule 405]). 

24Rule 0–13 under the Exchange Act; Article 30– 

3(a)(89). 

25 17 CFR 240.0–13. 

26Current Article 30–3(a)(15). 

27Current Article 30–3(a)(37). 

28Current Article 30–3(a)(40). 

29Current Article 30–3(a)(45). 

30See Exchange Act Release No. 56502 (Sept. 24, 

2007) [72 FR 56562 (Oct. 3, 2007)]; see also 

American Bankers Association v. SEC, 804 F.2d 739 

(D.C. Cir. 1986). 

31Current Article 30–3(a)(60). 

32Current Article 30–3(a)(84). 

33Current Article 30–3(a)(48). 

34See infra Part II.C. 

35Current Article 30–3(a)(67). 

36Article 30–1(f)(16)(ii) [17 CFR 200.30– 

1(f)(16)(ii)]. 

37Current Article 30–3(b). 

38Article 30–4(a)(1) [17 CFR 200.30–4(a)(2)]. 

39Current Article 30–3(c). 

40Article 30–4(a)(2) [17 CFR 200.30–4(a)(2)]. 

41Current Article 30–3(a)(2). 

42Article 30–3(a)(2) (removed and reserved). We 

are also making a technical correction to update the 

name of TM in a delegation. Article 30–3(l). In 

addition, we are correcting a scrivener’s error in a 

delegation to the Director of TM. Article 30– 

3(a)(47). We are also making a technical correction 

to a delegation to the Director of TM. Article 30– 

3(a)(49). 

43Article 30–3a(a)(2). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(12). 

4. Delegation of Substituted Compliance 

Authority 

We are delegating authority to the 

Director of TM to authorize the 

publication in the Federal Register of 

notices that a complete application for 

substituted compliance has been 

submitted to the Commission, under 17 

CFR 240.0–13.24 Rule 0–13 provides the 

procedures for filing applications to 

request a substituted compliance or 

listed jurisdiction order under the 

Exchange Act.25 We believe that 

delegating the authority to make the 

necessary findings will make efficient 

use of our resources. The action is 

administrative in nature and provides 

notice to the public of the completion of 

an application, beginning the process of 

seeking public comment for information 

to assist the Commission as it considers 

substituted compliance with respect to 

an application. 

5. Eliminated Delegations of Authority 

We are eliminating certain current 

delegations of authority. First, we are 

eliminating the following delegations of 

authority because they refer to rules or 

processes that have themselves been 

eliminated: 

• Authority to grant requests for 

exemptions from former 17 CFR 

240.10a–1(f) (rule 10a–1(f) under the 

Exchange Act), which we have 

previously rescinded.26

• Authority to publish notice of the 

filing of a designation plan with respect 

to national market system securities, or 

any proposed amendment thereto, and 

to approve such plan or amendment 

under former 17 CFR 242.600 (rule 

600),27 which rule has already been 

amended to eliminate the relevant 

process. 

• Authority to review and, where 

appropriate, approve the selection by 

the Municipal Securities Rulemaking 

Board (‘‘MSRB’’) of public 

representatives to serve on the MSRB 

under former section 15B(b)(2)(B) of the 

Exchange Act,28 which has previously 

been amended to eliminate the relevant 

process. 

• Authority to grant exemptions from 

former 17 CFR 240.3b–9 (rule 3b–9 

under the Exchange Act),29 because the 

rule was rescinded by the Commission 

after being invalidated by the U.S. Court 

of Appeals for the District of Columbia 

Circuit.30

• Authority to grant exemptions from 

17 CFR 240.17a–23 (Rule 17a–23 under 

the Exchange Act),31 which has been 

rescinded. 

• Authority to issue notices related to 

a transaction fee pilot program that has 

been vacated.32

Second, we are eliminating the 

following delegations of authority to the 

Director of TM because the 

contemplated activities are 

appropriately within the purview of 

other divisions and offices: 

• Authority to grant or deny 

exemptions, either unconditionally or 

on specified terms and conditions, from 

17 CFR 240.15c2–12 (Rule 15c2–12 

under the Exchange Act),33 which is 

similar to authority we are delegating to 

the Director of the Office of Municipal 

Securities (‘‘OMS’’).34

• Authority to grant requests for 

exemptions from the tender offer 

provisions of 17 CFR 240.14e–1 (Rule 

14e–1 of Regulation 14E under the 

Exchange Act),35 which rule is 

administered by the Division of 

Corporation Finance (‘‘CF’’).36

• Authority to designate officers 

empowered to administer oaths and 

affirmations, subpoena witnesses, 

compel their attendance, take evidence, 

and require the production of any 

books, papers, correspondence, 

memoranda, contracts, agreements, or 

other records in the course of 

investigations instituted by the 

Commission under section 21(d) of the 

Exchange Act,37 which is similar to 

authority currently exercised by the 

Division of Enforcement.38

• Authority, in certain nonpublic 

investigatory proceedings, to grant 

requests of persons to procure copies of 

the transcript of their testimony,39

which is similar to authority currently 

exercised by the Division of 

Enforcement.40

Finally, we are eliminating current 

authority to extend trading privileges 

and to deny applications for unlisted 

trading privileges (‘‘UTP’’) by national 

securities exchanges under 17 CFR 

240.12f–1 (Rule 12f–1 under the 

Exchange Act), provided that any 

applicant exchange denied unlisted 

traded privileges is advised of its right 

to have such denial reviewed by the 

Commission.41 The UTP Act of 1994 

changed the way UTP was extended by 

no longer requiring applications for UTP 

to be filed with and approved by the 

Commission. Prior to the enactment of 

the UTP Act, the Commission received 

hundreds of applications to extend UTP 

each year. Although section 12(f)(2) of 

the Act and Rule 12f–1 are not part of 

that UTP extension process and instead 

allow for the suspension and 

reinstatement of trading for securities 

that are already trading UTP, the 

Division has rarely used its delegated 

authority under these provisions so the 

delegation is being eliminated.42

C. Delegation to the Director of the 

Office of Municipal Securities 

We are delegating additional authority 

to the Director of OMS to carry out 

functions—with respect to the 

Municipal Securities Rulemaking Board 

(‘‘MSRB’’), municipal securities, and 

municipal securities dealers—that are 

currently delegated to the Director of 

TM. These authorities include: 

• Authority to publish notices of 

proposed rule changes filed by the 

MSRB, to approve such proposed rule 

changes, to find good cause to approve 

a proposed rule change earlier than 30 

days after publication of such proposed 

rule change, to disapprove a proposed 

rule change subject to certain 

requirements, and related authorities; 43

• Authority to extend for a period not 

exceeding 90 days from the date of 

publication of notice of the filing of a 

proposed rule change by the MSRB the 

period during which the Commission 

must by order approve or disapprove 


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Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations 9439 

44Article 30–3a(a)(7). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(31). 

45Article 30–3a(a)(11). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(57). 

46Article 30–3a(a)(12). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(58). 

47Article 30–3a(a)(13). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(59). 

48 15 U.S.C. 78s(b). 

49Article 30–3a(a)(14). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(76). 

50Article 30–3a(a)(3). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(13). 

51Article 30–3a(a)(4). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(19). 

52Article 30–3a(a)(5). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(23). 

53Article 30–3a(a)(6)(i). This authority is similar 

to authority already delegated to the Director of TM. 

See Article 30–3(a)(24)(i). 

54Article 30–3a(a)(6)(ii). This authority is similar 

to authority already delegated to the Director of TM. 

See Article 30–3(a)(24)(ii). 

55Article 30–3a(a)(6)(iii). This authority is similar 

to authority already delegated to the Director of TM. 

See Article 30–3(a)(24)(iii). 

56Article 30–3a(a)(8). This authority is current 

delegated to the Director of TM, but we are 

transferring it to the Director of OMS. See current 

Article 30–3(a)(48). See supra Part II.B. 

57Article 30–3a(a)(9). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(53). 

58Article 30–3a(a)(10). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(a)(54). 

59 12 U.S.C. 1828(t)(1). 

60Article 30–3a(c). This authority is similar to 

authority already delegated to the Director of TM. 

See Article 30–3(g). 

61Article 19d. 

62 15 U.S.C. 77a et seq. 

63Current article 30–5(h)(1). 

64 Id. (providing that Director of the Division of 

Investment Management shall have the same 

authority with respect to the Securities Act of 1933 

and 17 CFR 230.251 through 230.262 (rules 251 

through 263 thereunder) as that delegated to each 

Regional Director in Article 30–6(b) and (c)). 

65See article 30–5(h)(1) (removed and reserved). 

66Article 30–11(c). 

67 17 CFR 240.24c–1(b). 

68Article 30–1(f)(14) (delegating similar authority 

to the Director of the Division of Corporate 

Finance); article 30–3(a)(53) (delegating similar 

authority to the Director of the Division of Trading 

and Markets); article 30–4(a)(7) (delegating similar 

authority to the Director of the Division of 

Enforcement); article 30–5(c–1)(3) (delegating 

similar authority to the Director of the Division of 

Investment Management); article 30–15(m)(1) 

(delegating similar authority to the General Counsel 

of the Commission); article 30–18(a) (delegating 

similar authority to the Director of the Office of 

Compliance Inspections and Examinations). 

the proposed rule change or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved, and related authorities; 44

• Authority to institute proceedings 

to determine whether a proposed rule 

change of the MSRB should be 

disapproved, to provide to the MSRB 

notice of the grounds for disapproval 

under consideration, and to extend for 

a period not exceeding 240 days from 

the date of publication of notice of the 

filing of the proposed rule during which 

the Commission must issue an order 

approving or disapproving the proposed 

rule, and related authorities; 45

• Authority to temporarily suspend a 

change in the rules of the MSRB; 46

• Authority to reduce the period 

before which a proposed rule change 

can become operative, and to reduce the 

period between an MSRB submission of 

a filing and a pre-filing notification; 47

• Authority to review and grant or 

deny exemptions from the rule filing 

requirements of section 19(b) of the 

Exchange Act,48 in a case where the 

MSRB elects to incorporate by reference 

one or more rules of another selfregulatory organization, subject to 

certain terms and conditions; 49

• Authority to issue orders granting 

registration of municipal securities 

dealers within 45 days of the filing of an 

application for registration; 50

• Authority to grant, deny, and 

revoke applications for confidential 

treatment filed pursuant to section 24(b) 

of the Exchange Act and 17 CFR 

240.24b–2 (rule 24b–2 thereunder); 51

• Authority to notify and consult 

with the appropriate regulatory agency 

about a registered municipal securities 

dealer whose appropriate regulatory 

agency is not the Commission prior to 

any examination of that registered 

municipal securities dealer; 52

• Authority to notify such an 

appropriate regulatory agency about any 

examination of such a registered 

municipal securities dealer by the 

Commission; 53

• Authority to request from such an 

appropriate regulatory agency a copy of 

the report of any examination it 

conducted of any such registered 

municipal securities dealer and any data 

supplied to it in connection with such 

examination; 54

• Authority to furnish to such an 

appropriate regulatory agency on 

request a copy of the report of any 

examination of any such municipal 

securities dealer conducted by the 

Commission and any data supplied to it 

in connection with such examination; 55

• Authority to grant or deny 

exemptions, either unconditionally or 

on specified terms and conditions, from 

Rule 15c2–12 under the Exchange 

Act; 56

• Authority to administer the 

provisions of 17 CFR 240.24c–1 (Rule 

24c–1 under the Exchange Act); 57

• Authority to administer the 

provisions of section 24(d) of the 

Exchange Act; 58 and 

• Authority to consult on behalf of 

the Commission pursuant to section 

18(t)(1) of the Federal Deposit Insurance 

Act 59 with respect to matters described 

in Article 19a.60

We believe it is appropriate for the 

Director of OMS—like the Director of 

TM—to exercise such functions and that 

delegating this authority will conserve 

our resources and improve efficiency. In 

addition, we are updating the 

description of the responsibilities of the 

Director of OMS in our rules to include 

that person’s current responsibilities.61

D. Delegation to the Director of the 

Division of Investment Management 

The Commission is eliminating a 

current delegation to the Director of the 

Division of Investment Management 

(‘‘IM’’). The Commission previously 

delegated to the Director of IM the same 

authority with respect to certain rules 

under the Securities Act of 1933 

(‘‘Securities Act’’) 62 that it also 

delegated to each Regional Director.63

This delegation to the Director of IM 

refers to the delegation to each Regional 

Director that has since been eliminated 

by the Commission.64 We are therefore 

eliminating the delegation to the 

Director of IM that refers to the 

previously eliminated delegation to 

each Regional Director.65

E. Delegation to the Chief Accountant 

The Commission is delegating 

authority to its Chief Accountant to 

share with certain specified persons 

nonpublic information and files with 

the concurrence of the head of the 

division or office responsible for such 

information and files.66 Rule 24c–1 

under the Exchange Act provides that 

the Commission may, in its discretion 

and upon a showing that such 

information is needed, provide 

nonpublic information in its possession 

to certain persons if they provide such 

assurances of confidentiality as the 

Commission deems appropriate.67 The 

Commission has previously delegated 

similar authority to several other 

divisions and offices.68 The Chief 

Accountant’s responsibilities related to 

the Public Company Accounting 

Oversight Board (the ‘‘PCAOB’’) 

occasionally requires the sharing of 

nonpublic information. We believe that 

providing the Chief Accountant with the 

same authority delegated to other 

divisions and offices will make 


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69Article 30–14(g). 

70Article 30–14(i). 

71Current Article 30–14(i). 

72Article 16 (removed and reserved); Article 30– 

16 (removed and reserved). 

73Article 30–14(i). 

74Article 30–14(k). In addition, we are correcting 

a typographical error in the rules delegating 

authority to the General Counsel. Article 30–14(b). 

75Current Article 30–18(b). 76Current Article 30–18(e) (providing for 

administration of provisions related to certain 

records obtained from foreign securities 

authorities). 77 15 U.S.C. 78aa et seq.; current Article 30–18(f). 

Currently, rather than exercising this authority 

directly, it is Examinations’s practice to notify the 

Division of Trading and Markets, which will then 

determine whether to exercise its Director’s 

authority to notify SIPC. See Article 30–3(d) 

(delegating similar authority to the Director of 

Trading and Markets). 

78Current Article 30–18(g). 

79Current Article 30–18(h). 

80Current Article 30–18(k)(2). We believe that 

this authority is duplicative of authority separately 

delegated to the Director of Examinations to 

authorize the issuance of orders cancelling 

registration or applications for registration of 

certain investment advisers. Article 30–18(i)(1). As 

discussed above, we are also delegating authority to 

the Director of Examinations that is similar to the 

authority delegated to the Director of TM 

concerning security-based swaps. Article 30–18(m); 

see also supra footnotes 14–20 and accompanying 

text. 

81Article 19c. 

82 15 U.S.C. 78x(b). 

83Article 30–3b(a). 

84See Article 30–1(f)(3) (delegating similar 

authority to the Director of CF); Article 30–3(a)(19) 

(delegating similar authority to the Director of TM); 

Article 30–5(c–1)(4) (delegating similar authority to 

the Director of IM). 

85Article 30–3b(b)(1). 

86See Article 30–1(f)(14) (delegating similar 

authority to the Director of CF); Article 30–3(a)(53) 

(delegating similar authority to the Director of TM); 

Article 30–4(a)(7) (delegating similar authority to 

the Director of the Division of Enforcement); Article 

30–5(c–1)(3) (delegating similar authority to the 

Director of IM); Article 30–11(d) (delegating similar 

authority to the Chief Accountant); Article 30– 

14(m)(1) (delegating similar authority to the General 

Counsel); Article 30–18(a) (delegating similar 

authority to the Director of Examinations). 

87 15 U.S.C. 78x(d). 

88See Article 30–1(f)(15) (delegating similar 

authority to the Director of CF); Article 30–3(a)(54) 

(delegating similar authority to the Director of TM); 

Article 30–4(a)(9) (delegating similar authority to 

the Director of the Division of Enforcement); Article 

30–5(c–1)(4) (delegating similar authority to the 

Director of IM); Article 30–14(m)(2) (delegating 

similar authority to the General Counsel); Article 

30–17(b) (delegating similar authority to the 

Director of the Office of International Affairs). 

89Article 19e. 

90Article 11; Article 13; Article 13b; Article 24a; 

Article 26a; Article 27. We have also determined to 

eliminate the description of the Chief Management 

Analyst position, as this position is no longer in 

use. Article 17 (removed and reserved). 

91Article 10; Article 11; Article 13a; Article 13b; 

Article 14; Article 21; Article 21a; Article 24; 

coordination with the PCAOB more 

efficient. 

F. Delegation to the General Counsel 

The Commission is clarifying a 

delegation of authority to the General 

Counsel. We have previously delegated 

to the General Counsel authority to 

approve non-expert, non-privileged, 

factual testimony by present or former 

staff members, and the production of 

non-privileged documents, when 

validly subpoenaed, and to assert 

governmental privileges on behalf of the 

Commission in litigation where the 

Commission appears as a party or in 

response to third party subpoenas.69

Our rules specify, however, that those 

functions are not delegated to the 

General Counsel with respect to 

proceedings in which the Chairman or 

the General Counsel determines that 

separation of functions requirements or 

other circumstances would make 

inappropriate the General Counsel’s 

exercise of such delegated functions.70

Rather, with respect to such 

proceedings, such functions had been 

delegated to the Executive Assistant to 

the Chairman.71 The Executive 

Assistant to the Chairman is a position 

that is no longer in use. We are therefore 

removing and reserving the provisions 

relating to description of and delegation 

to the Executive Assistant to the 

Chairman.72 We have determined, 

instead, to delegate such functions in 

those circumstances to the Secretary of 

the Commission.73 This delegation is 

similar to a prior delegation that we 

made to the Secretary for functions 

otherwise carried out by the General 

Counsel when the Chairman or General 

Counsel determines that separation of 

functions requirements or other 

circumstances would make exercise of 

the delegated functions by the General 

Counsel inappropriate.74

G. Delegation to the Director of the 

Division of Examinations 

The Commission is eliminating 

certain current delegations of authority 

to the Director of Examinations that 

Examinations does not use. The 

Commission has previously delegated to 

the Director of Examinations authority 

to grant, deny, and revoke applications 

for confidential treatment filed pursuant 

to section 24(b) of the Exchange Act and 

rule 24b–2 thereunder; 75 to administer 

the provisions of section 24(d) of the 

Exchange Act; 76 to notify the Securities 

Investor Protection Corporation 

(‘‘SIPC’’) of facts concerning the 

activities and the operational and 

financial condition of any registered 

broker or dealer which is or appears to 

be a member of SIPC and which is in or 

approaching financial difficulty within 

the meaning of section 5 of the 

Securities Investor Protection Act of 

1970, as amended; 77 to delay certain 

inspections of certain newly registered 

broker-dealers under section 15(b)(2)(C) 

of the Exchange Act; 78 and, in certain 

circumstances, to grant or deny 

exemptions from 17 CFR 240.17a–25 

(rule 17a–25 under the Exchange Act), 

among other authorities.79 The 

Commission is also eliminating a 

duplicative delegation that authorizes 

the issuance of orders canceling 

registrations or pending applications of 

registration of certain investment 

advisers.80 We understand that the 

Director of Examinations does not 

exercise the above authorities, and we 

have determined that it is appropriate to 

eliminate them. In addition, we are 

updating the name and description of 

the responsibilities of the Director of 

Examinations in our rules to include the 

current name and the responsibilities 

related to security-based swaps.81

H. Delegation to the Director of the 

Office of Credit Ratings 

The Commission is delegating 

authority to the Director of the Office of 

Credit Ratings (‘‘OCR’’) for functions 

that are currently delegated to the 

Director of TM and others. First, we are 

delegating authority to grant and deny 

applications for confidential treatment 

filed under section 24(b) of the 

Exchange Act,82 and to revoke a grant of 

confidential treatment for any such 

application.83 The authority to grant and 

deny applications for confidential 

treatment and revoke a grant of 

confidential treatment is delegated to 

several members of our staff.84 Second, 

we are delegating authority to 

administer the provisions of rule 24c–1 

under the Exchange Act,85 which the 

Commission has previously delegated to 

other members of the staff.86 Finally, we 

are delegating authority to administer 

the provisions of section 24(d) of the 

Exchange Act,87 which the Commission 

has similarly delegated to other 

members of the staff.88 We believe it is 

appropriate for the Director of OCR to 

exercise such functions and that 

delegating this authority will conserve 

our resources and improve efficiency. In 

addition, we are adding a description of 

the responsibilities of the Director of 

OCR in our rules.89

I. Additional Amendments to Division 

and Office Descriptions and Delegations 

We are also amending the description 

for certain other divisions and offices to 

better reflect the current name or duties 

of those divisions and offices.90 In 

addition, we are amending a number of 

our division and office descriptions and 

delegations to remove gender-specific 

language from them.91


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Article 27; Article 30–1; Article 30–3; Article 30– 

3a; Article 30–5; Article 30–6; Article 30–7; Article 

30–10; Article 30–11; Article 30–13; Article 30–14; 

Article 30–15; Article 30–18. In addition, we are 

correcting certain outdated statutory references. 

Article 30–1; Article 30–2; Article 30–3; Article 30– 

5; Article 30–6; Article 30–7; Article 30–10. 

92 5 U.S.C. 553(b)(3)(A). 

93 5. U.S.C. 553(d). 

94See 5 U.S.C. 804(3)(C) (the term ‘‘rule’’ does not 

include ‘‘any rule of agency organization, 

procedure, or practice that does not substantially 

affect the rights or obligations of non-agency 

parties’’). 

95 5 U.S.C. 60 et seq. 

96See 5 U.S.C. 601(2). 

97See 5 CFR 1320.3. 

98 15 U.S.C. 78w(a)(2). 

II. Administrative Law Matters 

The Commission finds, in accordance 

with the Administrative Procedure Act 

(‘‘APA’’), that these amendments relate 

solely to agency organization, 

procedure, or practice.92 Accordingly, 

the APA’s provisions regarding notice of 

rulemaking and opportunity for public 

comment are not applicable. These 

changes are therefore effective on 

February 16, 2021. In accord with the 

APA, we find that there is good cause 

to establish an effective date less than 

30 days after publication of these 

rules.93 These rules do not substantially 

affect the rights or obligations of nonagency parties and pertain to increasing 

efficiency of internal Commission 

operations. For the same reasons, the 

provisions of the Small Business 

Regulatory Enforcement Fairness Act 

are not applicable.94 Additionally, the 

provisions of the Regulatory Flexibility 

Act,95 which apply only when notice 

and comment are required by the APA 

or other law, are not applicable.96 These 

amendments do not contain any 

collection of information requirements 

as defined by the Paperwork Reduction 

Act of 1995.97 Further, because these 

amendments impose no new burdens on 

private parties, the Commission does 

not believe that the amendments will 

have any impact on competition for 

purposes of section 23(a)(2) of the 

Exchange Act.98

III. Statutory Authority 

This rule is adopted pursuant to 

statutory authority granted to the 

Commission, including section 19 of the 

Securities Act of 1933, 15 U.S.C. 77s; 

sections 4A, 4B, and 23 of the Exchange 

Act, 15 U.S.C. 78d–1, 78d–2, and 78w; 

section 38 of the Investment Company 

Act of 1940, 15 U.S.C. 80a–37; section 

211 of the Investment Advisers Act of 

1940, 15 U.S.C. 80b–11; and section 3 of 

the Sarbanes-Oxley Act of 2002, 15 

U.S.C. 7202. 

List of Subjects in 17 CFR Part 200 

Administrative practice and 

procedure, Authority delegations 

(Government agencies). 

Text of Rule Amendments 

For the reasons set out in the 

preamble, the Commission is amending 

title 17, chapter II of the Code of Federal 

Regulations as follows: 

PART 200—ORGANIZATION; 

CONDUCT AND ETHICS; AND 

INFORMATION AND REQUESTS 

Subpart A—Organization and Program 

Management 

■ 1. The authority citation for part 200, 

subpart A, continues to read in part as 

follows: 

Authority: 15 U.S.C. 77c, 77o, 77s, 77z– 

3, 77sss, 78d, 78d–1, 78d–2, 78o–4, 78w, 

78ll(d), 78mm, 80a–37, 80b–11, 7202, and 

7211 et seq., unless otherwise noted. 

* * * * * 

Sections 200.27 and 200.30–6 are also 

issued under 15 U.S.C. 77e, 77f, 77g, 77h, 

77j, 77q, 77u, 78e, 78g, 78h, 78i, 78k, 78m, 

78o, 78o–4, 78q, 78q–1, 78t–1, 78u, 77hhh, 

77uuu, 80a–41, 80b–5, and 80b–9. 

Section 200.30–1 is also issued under 15 

U.S.C. 77f, 77g, 77h, 77j, 78c(b) 78l, 78m, 

78n, 78o(d). 

Section 200.30–3 is also issued under 15 

U.S.C. 78b, 78d, 78f, 78k–1, 78q, 78s, and 

78eee. 

Section 200.30–5 is also issued under 15 

U.S.C. 77f, 77g, 77h, 77j, 78c(b), 78l, 78m, 

78n, 78o(d), 80a–8, 80a–20, 80a–24, 80a–29, 

80b–3, 80b–4. 

* * * * * 

■ 2. Section 200.10 is revised to read as 

follows: 

§ 200.10 The Commission. 

The Commission is composed of five 

members, not more than three of whom 

may be members of the same political 

party. The members are appointed by 

the President, with the advice and 

consent of the Senate, for 5-year terms, 

one term ending each year. The 

Chairman is designated by the President 

pursuant to the provisions of section 3 

of Reorganization Plan No. 10 of 1950 (3 

CFR, 1949–1953 Comp., p. 1006). The 

terms Chair, Chairperson, Chairman, 

Chairwoman, and the like may be used 

interchangeably. The Commission is 

assisted by a staff, which includes 

lawyers, accountants, engineers, 

financial security analysts, investigators, 

and examiners, as well as administrative 

and clerical employees. 

■ 3. Section 200.11 is amended by 

revising paragraph (a)(2) to read as 

follows: 

§ 200.11 Headquarters Office—Regional 

Office relationships. 

(a) * * * 

(2) Each Regional Director is 

responsible for the direction and 

supervision of the Regional Director’s 

work force and for the execution of all 

programs in the Regional Director’s 

office’s region as shown in paragraph (b) 

of this section, in accordance with 

established policy, and reports, on 

enforcement matters, to the Director or 

Deputy Director of the Division of 

Enforcement who is responsible for 

Regional Office enforcement matters 

and, on examination matters, to the 

Director of the Division of 

Examinations. 

* * * * * 

■ 4. Section 200.13 is amended by 

revising paragraphs (a), (d)(1), (e), and 

(f) to read as follows: 

§ 200.13 Chief Operating Officer. 

(a) The Chief Operating Officer is 

responsible for developing and 

executing the overall management 

policies of the Commission for all its 

operating divisions and staff offices. The 

Chief Operating Officer also provides 

executive direction to, and exercises 

administrative control over, the Office 

of Human Resources, the Office of 

Acquisitions, the Office of Financial 

Management, the Office of Support 

Operations, the EDGAR Business Office, 

and the Office of Information 

Technology. 

* * * * * 

(d) * * * 

(1) Implementing the goals of the 

Chairman and the mission of the 

Commission; 

* * * * * 

(e) Overseeing Commission-specific 

application of performance measures, 

procurement reforms, personnel 

reductions, financial management 

improvements, telecommunications and 

information technology policies, and 

other Government-wide systems 

reforms; and 

(f) Reforming the Commission’s 

management practices. 

■ 5. Section 200.13a is amended by 

revising paragraphs (a) and (c) to read as 

follows: 

§ 200.13a The Secretary of the 

Commission. 

(a) The Secretary of the Commission 

is responsible for the preparation of the 

daily and weekly agendas of 

Commission business; the orderly and 

expeditious flow of business at formal 

Commission meetings; the maintenance 

of the Official Minute record of all 

actions of the Commission; and the 


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service of all instruments of formal 

Commission action. The Secretary is 

custodian of the official seal of the 

Commission, and also has the 

responsibility for authenticating 

documents. 

* * * * * 

(c) In addition, the Secretary 

administers the Commission’s Library. 

■ 6. Section 200.13b is revised to read 

as follows: 

§ 200.13b Director of the Office of Public 

Affairs. 

The Director of the Office of Public 

Affairs is the chief public information 

officer for the Commission, and oversees 

activities that communicate the 

Commission’s actions to those 

interested in or affected by them. The 

Director’s responsibilities include 

serving as liaison with the news media, 

dissemination of information to the 

news media and to the general public, 

supervision of internal and some 

external publications and of audiovisual presentations. Responsibilities of 

the Director, and of the Director’s staff, 

include special projects that may be 

deemed appropriate to communicate 

information on Commission actions. 

■ 7. Section 200.14 is amended by 

revising paragraph (b) to read as follows: 

§ 200.14 Office of the Administrative Law 

Judges. 

* * * * * 

(b) The Chief Administrative Law 

Judge performs the duties of an 

Administrative Law Judge under the 

Administrative Procedure Act and the 

duties delegated to the Chief 

Administrative Law Judge by the 

Commission that are compatible with 

those duties. The Chief Administrative 

Law Judge is responsible for the orderly 

functioning of the Office of 

Administrative Law Judges apart from 

the conduct of administrative 

proceedings and acts as liaison between 

that Office and the Commission. 

§ 200.16 [Removed and Reserved] 

■ 8. Section 200.16 is removed and 

reserved. 

§ 200.17 [Removed and Reserved] 

■ 9. Section 200.17 is removed and 

reserved. 

■ 10. Section 200.19c is revised to read 

as follows: 

§ 200.19c Director of the Division of 

Examinations. 

The Director of the Division of 

Examinations (‘‘Examinations’’) is 

responsible for the compliance 

inspections and examinations relating to 

the regulation of exchanges, national 

securities associations, clearing 

agencies, securities information 

processors, the Municipal Securities 

Rulemaking Board, brokers and dealers, 

municipal securities dealers, municipal 

advisors, security-based swap data 

repositories, security-based swap 

dealers, major security-based swap 

participants, transfer agents, investment 

companies, and investment advisers, 

under sections 13(n)(2), 15B, 15C(d)(1), 

15F, and 17(b) of the Securities 

Exchange Act of 1934 (15 U.S.C. 

78m(n)(2), 78o–4, 78o–5(d)(1), 78o–10, 

and 78q(b)), section 31(b) of the 

Investment Company Act of 1940 (15 

U.S.C. 80a–30(b)), and section 204 of the 

Investment Advisers Act of 1940 (15 

U.S.C. 80b–4). 

■ 11. Section 200.19d is revised to read 

as follows: 

§ 200.19d Director of the Office of 

Municipal Securities. 

The Director of the Office of 

Municipal Securities is responsible to 

the Commission for the administration 

and execution of the Commission’s 

programs under the Securities Exchange 

Act of 1934 relating to the registration 

and regulation of municipal advisors, 

the practices of municipal securities 

brokers and dealers, and oversight of the 

Municipal Securities Rulemaking Board. 

The functions involved include 

recommending the adoption and 

amendment of Commission rules, 

reviewing proposed rule changes of the 

Municipal Securities Rulemaking Board, 

and responding to interpretive and noaction requests. 

■ 12. Section 200.19e is added to read 

as follows: 

§ 200.19e Director of the Office of Credit 

Ratings. 

The Director of the Office of Credit 

Ratings is responsible to the 

Commission for the administration and 

execution of the Commission’s programs 

under the Securities Exchange Act of 

1934 relating to the registration and 

regulation of nationally recognized 

statistical rating organizations. The 

functions involved in the regulation of 

such entities include compliance 

inspections and examinations, 

recommending the adoption and 

amendment of Commission rules, and 

responding to interpretive and no-action 

requests. 

§ 200.20a [Added and Reserved] 

■ 13. Add reserved § 200.20a. 

■ 14. Section 200.21 is revised to read 

as follows: 

§ 200.21 The General Counsel. 

(a) The General Counsel is the chief 

legal officer of the Commission. The 

General Counsel is responsible for the 

representation of the Commission in 

judicial proceedings in which it is 

involved as a party or as amicus curiae, 

for directing and supervising all civil 

litigation involving the Commission in 

the United States District Courts, except 

for law enforcement actions filed on 

behalf of the Commission, for directing 

and supervising the Commission’s 

responsibilities under the Bankruptcy 

Code and all related litigation, and for 

representing the Commission in all 

cases in appellate courts. The General 

Counsel is responsible for the review of 

cases which the Division of 

Enforcement recommends be referred to 

the Department of Justice with a 

recommendation for criminal 

prosecution. In addition, the General 

Counsel is responsible for advising the 

Commission at its request or at the 

request of any division director or office 

head, or on the General Counsel’s own 

motion, with respect to interpretations 

involving questions of law; for the 

conduct of administrative proceedings 

relating to the disqualification of 

lawyers from practice before the 

Commission; for conducting 

preliminary investigations, as described 

in 17 CFR 202.5(a), into potential 

violations of 17 CFR 201.102(e) by 

attorneys; for the preparation of the 

Commission comments to the Congress 

on pending legislation; and for the 

drafting, in conjunction with 

appropriate divisions and offices, of 

legislative proposals to be sponsored by 

the Commission. The General Counsel is 

responsible for providing advice to 

Commission attorneys on professional 

responsibility issues relating to their 

official duties. The General Counsel is 

further responsible for investigating 

allegations of professional misconduct 

by Commission staff and, where 

appropriate, making referrals to state 

professional boards or societies. The 

General Counsel is also responsible for 

the review and clearance of the form 

and content of articles, treatises, and 

prepared speeches and addresses by 

members of the staff relating to the 

Commission or to the statutes and rules 

administered by the Commission. The 

General Counsel also is responsible for 

coordinating and reviewing the 

interpretive positions of the various 

divisions and offices. In addition, the 

General Counsel is responsible for 

appropriate disposition of all Freedom 

of Information Act and Privacy Act 

appeals pursuant to the authority 

delegated in § 200.30–14, and is the 


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Commission’s advisor with respect to 

legal problems arising under the 

Freedom of Information Act, the Privacy 

Act, the Federal Reports Act, the 

Federal Advisory Committee Act, the 

Civil Service laws and regulations, the 

statutes and rules applicable to the 

Commission’s procurement, contracting, 

fiscal and related administrative 

activities, and other statutes and 

regulations of a similar nature 

applicable to a number of Government 

agencies. 

(b)(1) The General Counsel is also 

responsible for assisting members of the 

Commission in the preparation of the 

opinions of the Commission, and for the 

preparation of opinions and decisions 

on motions and certifications of 

questions and rulings by administrative 

law judges in the course of 

administrative law proceedings, except: 

(i) In cases where, pursuant to a 

waiver by the parties of separation of 

function requirements, another Division 

or Office of the Commission’s staff 

undertakes to prepare an opinion or 

decision, in which cases the General 

Counsel may assist in such preparation; 

and 

(ii) With respect to administrative 

proceedings against lawyers under 

§ 201.102(e) of this chapter (Rule 102(e) 

of the Commission’s Rules of Practice) 

or other cases in which the Chairman or 

the General Counsel has determined 

that separation of function requirements 

or other circumstances would make 

inappropriate the exercise of such 

functions by the General Counsel. 

(2) The General Counsel deals with 

general problems arising under the 

Administrative Procedure Act, 

including the revision or adoption of 

rules of practice. The General Counsel is 

also responsible for the exercise of such 

review functions with respect to 

adjudicatory matters as are delegated to 

the General Counsel by the Commission 

pursuant to 101 Stat. 1254 (15 U.S.C. 

78d–1, 78d–2) or as may be otherwise 

delegated or assigned to the General 

Counsel. 

(c) The General Counsel also is 

responsible to the Commission for the 

administration of the Government in the 

Sunshine Act for publicly certifying, 

pursuant to § 200.406, that, in the 

General Counsel’s opinion, particular 

Commission meetings may properly be 

closed to the public. In the absence of 

the General Counsel, the Solicitor to the 

Commission shall be deemed the 

General Counsel for purposes of 

§ 200.406. In the absence of the General 

Counsel and the Solicitor, the most 

senior Associate General Counsel 

available shall be deemed the General 

Counsel for purposes of § 200.406. In 

the absence of the General Counsel, the 

Solicitor, and every Associate General 

Counsel, the most senior Assistant 

General Counsel available shall be 

deemed the General Counsel for 

purposes of § 200.406. In the absence of 

the General Counsel, the Solicitor, every 

Associate General Counsel and every 

Assistant General Counsel, such 

attorneys as the General Counsel may 

designate (in such order of succession as 

the General Counsel directs) shall 

exercise the responsibilities imposed by 

§ 200.406. 

■ 15. Section 200.21a is amended by 

revising paragraph (a) to read as follows: 

§ 200.21a The Ethics Counsel. 

(a) The Ethics Counsel is responsible 

for administering the Commission’s 

Ethics Program and for interpreting 

subpart M of this part and 5 CFR part 

2635. The Ethics Counsel serves as 

Counselor to the Commission and its 

staff with regard to ethical and conflicts 

of interest questions and acts as the 

Commission’s liaison on such matters 

with the Office of Human Resources, the 

Office of Government Ethics, the Office 

of the Inspector General, and the 

Department of Justice. When 

appropriate and subject to the authority 

of, and in consultation with, the 

Inspector General, the Ethics Counsel 

shall inquire into alleged violations of 

subparts C, F, and M of this part, and 

5 CFR part 2635. 

* * * * * 

■ 16. Section 200.23a is revised to read 

as follows: 

§ 200.23a Director of the Division of 

Economic and Risk Analysis and Chief 

Economist. 

The Director of the Division of 

Economic and Risk Analysis and Chief 

Economist serves as economic advisor 

to the Commission and its staff and is 

responsible to the Commission for 

sound economic analysis of market 

events and conditions; economic 

analysis in support of Commission 

rulemaking; economic and risk analysis 

to inform and support the Commission’s 

enforcement actions and its examination 

program; development of financial and 

market data analysis tools; preparation 

of economic statistics; promotion of data 

standards; review and guidance of staff 

research and publications; and assisting 

the Commission and its staff in 

responding to policy, legislative, or 

international issues relating to securities 

markets. 

■ 17. Section 200.24 is revised to read 

as follows: 

§ 200.24 Office of Financial Management. 

This Office, under the direction of the 

Chief Financial Officer, is responsible to 

the Chief Operating Officer, Chairman 

and Commission for the internal 

financial management and programming 

functions of the Securities and 

Exchange Commission. These functions 

include: Budgeting, accounting, payroll 

and administrative audit. The Chief 

Financial Officer, and the Chief 

Financial Officer’s designees, serve as 

liaison to the Commission before the 

Office of Management and Budget and 

Congressional Appropriations 

Committees on appropriation matters, 

and the Treasury Department and the 

General Accounting Office on financial 

and programming matters. 

■ 18. Section 200.24a is revised to read 

as follows: 

§ 200.24a Director of the Office of Investor 

Education and Advocacy. 

The Director of the Office of Investor 

Education and Advocacy is responsible 

to the Chairman for the Commission’s 

investor education and investor 

assistance programs. These programs 

include, but are not limited to: 

(a) Educating investors through inperson outreach, digital and social 

media, and other communication 

channels, including the Commission’s 

website for individual investors, 

Investor.gov, by preparing and 

distributing to the public educational 

content describing the operations of the 

securities markets, developing strategies 

for prudent investor behavior, and 

increasing public knowledge of the 

functions of the Commission. 

(b) Implementing and administering a 

nationwide system for resolving 

investor complaints against individuals 

and entities regulated by the 

Commission by processing complaints 

received from individual investors and 

seeking to ensure that regulated 

individuals and entities process and 

respond to such complaints. 

(c) Providing information to investors 

and others who inquire about 

individuals and entities regulated by the 

Commission, the operation of the 

securities markets, or the functions of 

the Commission. 

(d) Advising the Commission and its 

staff, and exchanging information with 

domestic and international regulators 

and self-regulatory organizations, about 

problems frequently encountered by 

investors and possible solutions to 

them. 

(e) Transmitting to other offices and 

divisions of the Commission 

information provided by investors 

which concerns the responsibilities of 

these offices and divisions. 


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(f) Providing for greater investor input 

in Commission rulemaking proceedings. 

■ 19. Section 200.26a is revised to read 

as follows: 

§ 200.26a Office of Information 

Technology. 

The Office of Information Technology 

is responsible for the analysis, design 

programming, operation, and 

maintenance of all agency information 

systems; developing and implementing 

long-range technology plans and 

programs; coordinating all information 

systems analysis activities being 

considered or carried out by other 

divisions and offices, and furnishing 

such organizations with appropriate 

assistance and support; providing 

technical advice to the staff in 

connection with development of 

Commission rules and regulations 

having technology implications; 

providing expert advice on the 

Commission’s surveillance of 

technology in the securities industry; 

evaluating and recommending new 

technology concepts and capabilities for 

application within the Commission; and 

developing technology and automation 

capabilities and support within the 

Commission. 

§ 200.27 [Amended] 

■ 20. Section 200.27 is revised by: 

■ a. Removing the words ‘‘his or her’’ 

and adding in their place the words ‘‘the 

Regional Director’s’’; 

■ b. Removing the words ‘‘by the 

Deputy Director of the Division of 

Enforcement who is responsible for 

Regional Office enforcement matters’’ 

and adding in their place the words ‘‘by 

the Director or Deputy Director of the 

Division of Enforcement’’; and 

■ c. Removing the words ‘‘Office of 

Compliance Inspections and 

Examinations’’ and adding in their place 

the words ‘‘Division of Examinations’’. 

■ 21. Section 200.30–1 is amended by: 

■ a. Revising the introductory text and 

paragraph (a)(3); 

■ b. In paragraph (f)(2)(i), removing the 

word ‘‘ommission’’ and adding in its 

place the word ‘‘omission’’; and 

■ c. Revising paragraphs (f)(5) and 

(g)(2). 

The revisions read as follows: 

§ 200.30–1 Delegation of authority to the 

Director of the Division of Corporation 

Finance. 

Pursuant to sections 4A and 4B of the 

Securities Exchange Act of 1934, as 

amended (15 U.S.C. 78d–1, 78d–2), the 

Securities and Exchange Commission 

hereby delegates, until the Commission 

orders otherwise, the following 

functions to the Director of the Division 

of Corporation Finance, to be performed 

by the Director or under the Director’s 

direction by such person or persons as 

may be designated from time to time by 

the Chairman of the Commission: 

(a) * * * 

(3) To grant applications for 

confidential treatment of contract 

provisions pursuant to § 230.406 of this 

chapter (Rule 406 under the Act); to 

issue orders scheduling hearings on 

such applications and to deny any such 

application as to which the applicant 

waives the applicant’s right to a hearing, 

provided such applicant is advised of 

the applicant’s right to have such denial 

reviewed by the Commission. 

* * * * * 

(f) * * * 

(5) To grant or deny applications filed 

pursuant to section 12(g)(1) of the Act 

(15 U.S.C. 78l(g)(1)) for extensions of 

time within which to file registration 

statements pursuant to that section, 

provided the applicant is advised of the 

applicant’s right to have any such denial 

reviewed by the Commission. 

* * * * * 

(g) * * * 

(2) In any case in which the Director 

of the Division of Corporation Finance 

believes it appropriate, the Director may 

submit the matter to the Commission. 

* * * * * 

■ 22. Section 200.30–2 is added to read 

as follows: 

§ 200.30–2 Delegation of authority to the 

Director of the Division of Economic and 

Risk Analysis and Chief Economist. 

Pursuant to sections 4A and 4B of the 

Securities Exchange Act of 1934, as 

amended (15 U.S.C. 78d–21, 78d–22), 

the Securities and Exchange 

Commission hereby delegates, until the 

Commission orders otherwise, the 

following functions to the Director of 

the Division of Economic and Risk 

Analysis and Chief Economist, to be 

performed by that person or under that 

person’s direction by such person or 

persons as may be designated from time 

to time by the Chairman of the 

Commission: 

(a) To update taxonomies and 

schemas required for use in Commission 

filings and made available on the 

Commission’s website. 

(b) [Reserved] 

■ 23. Section 200.30–3 is amended by: 

■ a. Revising the introductory text; 

■ b. Removing and reserving paragraph 

(a)(2); 

■ c. In paragraphs (a)(5), (8), and (9), 

removing the word ‘‘his’’ and adding in 

its place the words ‘‘the applicant’s’’; 

■ d. Removing and reserving paragraphs 

(a)(15), (37), and (40); 

■ e. In paragraph (a)(43), removing the 

citation ‘‘Pub. L. 87–592, 76 Stat. 394’’ 

and adding in its place the citation 

‘‘sections 4A and 4B of the Securities 

Exchange Act of 1934, as amended’’; 

■ f. Removing and reserving paragraph 

(a)(45); 

■ g. Revising paragraph (a)(47); 

■ h. Removing and reserving paragraph 

(a)(48); 

■ i. In paragraph (a)(49): 

■ i. Removing ‘‘Rule 609 thereunder (17 

CFR 242.609)’’ and adding in its place 

‘‘17 CFR 242.609 (Rule 609 

thereunder)’’; and 

■ ii. Removing the words ‘‘that section 

and any rules or regulations 

promulgated thereunder’’ and adding in 

their place ‘‘Rule 609’’; 

■ j. Removing and reserving paragraphs 

(a)(60), (67), and (84); 

■ k. Adding paragraphs (a)(86) through 

(94); 

■ l. Removing and reserving paragraphs 

(b) and (c); and 

■ m. Revising paragraph (l). 

The revisions and additions read as 

follows: 

§ 200.30–3 Delegation of authority to 

Director of the Division of Trading and 

Markets. 

Pursuant to sections 4A and 4B of the 

Securities Exchange Act of 1934, as 

amended (15 U.S.C. 78d–1, 78d–2), the 

Securities and Exchange Commission 

hereby delegates, until the Commission 

orders otherwise, the following 

functions to the Director of the Division 

of Trading and Markets to be performed 

by the Director or under the Director’s 

direction by such person or persons as 

may be designated from time to time by 

the Chairman of the Commission: 

(a) * * * 

(47) Pursuant to section 15(a)(2) of the 

Act, 15 U.S.C. 78o(a)(2), to review and, 

either unconditionally or on specified 

terms and conditions, grant exemptions 

from the broker-dealer registration 

requirements of section 15(a)(1) of the 

Act, 15 U.S.C. 78o(a)(1), to Government 

securities brokers or Government 

securities dealers that have registered 

with the Commission under section 

15C(a)(2) of the Act, 15 U.S.C. 78o– 

5(a)(2), solely with respect to effecting 

any transactions in, or inducing or 

attempting to induce the purchase or 

sale of, any security principally backed 

by a guaranty of the United States. 

* * * * * 

(86) To authorize the issuance of 

orders granting on-going registration to 

security-based swap dealers and major 

security-based swap participants based 

on the security-based swap dealer’s or 

major security-based swap participant’s 

application, pursuant to § 240.15Fb2– 

1(e) of this chapter (Rule 15Fb2–1(e)). 


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(87) To authorize the issuance of 

orders canceling the registration of 

security-based swap dealers and major 

security-based swap participants 

registered pursuant to § 240.15Fb2–1 of 

this chapter (Rule 15Fb2–1) if such 

persons are no longer in existence or 

have ceased to do business as securitybased swap dealers or major securitybased swap participants, pursuant to 

§ 240.15Fb3–3(a) of this chapter (Rule 

15Fb3–3(a)). 

(88) To determine by order, pursuant 

to § 240.15Fb3–2(b) of this chapter (Rule 

15Fb3–2(b)), whether notices of 

withdrawal of registration filed by 

security-based swap dealers or major 

security-based swap participants 

pursuant to section 15F(b) of the 

Securities Exchange Act of 1934 (15 

U.S.C. 78o–10(b)) shall become effective 

sooner than the normal 60 day period 

provided in Rule 15Fb3–2(b) 

(§ 240.15Fb3–2(b) of this chapter). 

(89) To authorize the publication in 

the Federal Register of notices that a 

complete application for substituted 

compliance has been submitted to the 

Commission, pursuant to § 240.0–13 of 

this chapter (Rule 0–13). 

(90) To grant applications made 

pursuant to § 201.194 of this chapter 

(Rule 194 of the Commission’s Rules of 

Practice). 

(91) Pursuant to section 19(b) of the 

Act, 15 U.S.C. 78s(b), and § 240.19b– 

4(n) of this chapter (Rule 19b–4), to 

publish notices of advance notices filed 

by designated clearing agencies. 

(92) Pursuant to section 19(b) of the 

Act, 15 U.S.C. 78s(b), and § 240.19b– 

4(n) of this chapter (Rule 19b–4), to 

publish notices of withdrawals of 

advance notices filed by designated 

clearing agencies. 

(93) Pursuant to section 806(e)(1) of 

the Payment, Clearing, and Settlement 

Supervision Act of 2010, 12 U.S.C. 

5465(e)(1)(D), to require a designated 

clearing agency to provide any 

information necessary to assess the 

effect the proposed change would have 

on the nature or level of risks associated 

with the designated clearing agency’s 

payment, clearing, or settlement 

activities and the sufficiency of any 

proposed risk management techniques. 

(94) Pursuant to section 806(e)(1) of 

the Payment, Clearing, and Settlement 

Supervision Act of 2010, 12 U.S.C. 

5465(e)(1)(H), to extend the review 

period for an additional 60 days for 

proposed changes that raise novel or 

complex issues and provide the 

designated clearing agency with prompt 

written notice of such extension. 

* * * * * 

(l) Notwithstanding anything in 

paragraphs (a) through (k) of this 

section, in any case in which the 

Director of the Division of Trading and 

Markets believes it appropriate, the 

Director may submit the matter to the 

Commission. 

■ 24. Section 200.30–3a is amended by: 

■ a. In the introductory text, removing 

the words ‘‘him or under his’’ and 

adding in their place ‘‘the Director or 

under the Director’s’’; 

■ b. Adding paragraphs (a)(2) through 

(14); 

■ c. Redesignating paragraph (b) as 

paragraph (c); and 

■ d. Adding new paragraph (b). 

The additions read as follows. 

§ 200.30–3a Delegation of authority to the 

Director of the Office of Municipal 

Securities. 

* * * * * 

(a) * * * 

(2) Pursuant to section 19(b) of the 

Act, 15 U.S.C. 78s(b), and § 240.19b–4 of 

this chapter (Rule 19b–4), to publish 

notices of proposed rule changes filed 

by the Municipal Securities Rulemaking 

Board and to approve such proposed 

rule changes, and to find good cause to 

approve a proposed rule change earlier 

than 30 days after the date of 

publication of such proposed rule 

change and to publish the reasons for 

such finding. Pursuant to section 19(b) 

of the Act, 15 U.S.C. 78s(b), and Rule 

19b–4 (§ 240.19b–4 of this chapter), to 

disapprove a proposed rule change, 

provided that, with respect to a 

particular proposed rule change, if two 

(2) or more Commissioners object in 

writing to the Director within five (5) 

business days of being notified by the 

Director that the Office intends to 

exercise its authority to disapprove that 

particular proposed rule change, then 

the delegation of authority to approve or 

disapprove that proposal is withdrawn, 

and the Director shall either present a 

recommendation to the Commission or 

institute pursuant to delegated authority 

proceedings to determine whether the 

proposed rule change should be 

disapproved. In addition, pursuant to 

section 19(b)(10) of the Act, 15 U.S.C. 

78s(b)(10), to notify the Municipal 

Securities Rulemaking Board that a 

proposed rule change does not comply 

with the rules of the Commission 

relating to the required form of a 

proposed rule change, and to determine 

that a proposed rule change is unusually 

lengthy and complex or raises novel 

regulatory issues and to inform the 

Municipal Securities Rulemaking Board 

of such determination. 

(3) Pursuant to section 15B(a) of the 

Act [15 U.S.C. 78o–4(a)], to authorize 

the issuance of orders granting 

registration of municipal securities 

dealers within forty-five days of the 

filing of an application for registration 

as a municipal securities dealer (or 

within such longer period as to which 

the applicant consents). 

(4)(i) To grant and deny applications 

for confidential treatment filed pursuant 

to section 24(b) of the Act (15 U.S.C. 

78x(b)) and § 240.24b–2 of this chapter 

(Rule 24b–2 thereunder); 

(ii) To revoke a grant of confidential 

treatment for any such application. 

(5) Pursuant to section 17(b) of the 

Act (15 U.S.C. 78q(b)), prior to any 

examination of a registered municipal 

securities dealer whose appropriate 

regulatory agency is not the 

Commission, to notify and consult with 

the appropriate regulatory agency for 

such municipal securities dealer. 

(6) Pursuant to section 17(c)(3) of the 

Act, 15 U.S.C. 78q(c)(3), in regard to 

municipal securities dealers for which 

the Commission is not the appropriate 

regulatory agency: 

(i) To notify the appropriate 

regulatory agency of any examination 

conducted by the Commission of any 

such municipal securities dealer; 

(ii) To request from the appropriate 

regulatory agency a copy of the report of 

any examination of any such municipal 

securities dealer conducted by such 

appropriate regulatory agency and any 

data supplied to it in connection with 

such examination; and 

(iii) To furnish to the appropriate 

regulatory agency on request a copy of 

the report of any examination of any 

such municipal securities dealer 

conducted by the Commission and any 

data supplied to it in connection with 

such examination. 

(7) Pursuant to section 19(b)(2)(A) of 

the Act, 15 U.S.C. 78s(b)(2)(A), to 

extend for a period not exceeding 90 

days from the date of publication of 

notice of the filing of a proposed rule 

change by the Municipal Securities 

Rulemaking Board pursuant to section 

19(b)(1) of the Act, 15 U.S.C. 78s(b)(1), 

the period during which the 

Commission must by order approve or 

disapprove the proposed rule change or 

institute proceedings to determine 

whether the proposed rule change 

should be disapproved and to determine 

whether such longer period is 

appropriate and publish the reasons for 

such determination. 

(8) Pursuant to 17 CFR 15c2–12(e) 

(Rule 15c2–12(e)), to grant or deny 

exemptions, either unconditionally or 

on specified terms and conditions, from 

Rule 15c2–12. 

(9) To administer the provisions of 

§ 240.24c–1 of this chapter; provided 

that access to nonpublic information as 

defined in § 240.24c–1 shall be provided 


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only with the concurrence of the head 

of the Commission division or office 

responsible for such information or the 

files containing such information. 

(10) To administer the provisions of 

section 24(d) of the Act (15 U.S.C. 

78x(d)). 

(11) Pursuant to section 19(b)(2) of the 

Act, 15 U.S.C. 78s(b)(2), and section 

19(b)(3) of the Act, 15 U.S.C. 78s(b)(3), 

to institute proceedings to determine 

whether a proposed rule change of the 

Municipal Securities Rulemaking Board 

should be disapproved and to provide to 

the Municipal Securities Rulemaking 

Board notice of the grounds for 

disapproval under consideration. If the 

Commission has not taken action on a 

proposed rule change for which 

delegated authority has been withdrawn 

under paragraph (a)(12) of this section 

prior to the expiration of the applicable 

time period specified in section 19(b)(2) 

of the Act, 15 U.S.C. 78s(b)(2), then the 

Director shall institute pursuant to 

delegated authority proceedings to 

determine whether the proposed rule 

change should be disapproved. In 

addition, pursuant to section 19(b)(2)(B) 

of the Act, 15 U.S.C. 78s(b)(2)(B), to 

extend for a period not exceeding 240 

days from the date of publication of 

notice of the filing of a proposed rule 

change pursuant to section 19(b)(1) of 

the Act, 15 U.S.C. 78s(b)(1), the period 

during which the Commission must 

issue an order approving or 

disapproving the proposed rule change 

and to determine whether such longer 

period is appropriate and publish the 

reasons for such determination. 

(12) Pursuant to section 19(b)(3)(C) of 

the Act, 15 U.S.C. 78s(b)(3)(C), to 

temporarily suspend a change in the 

rules of the Municipal Securities 

Rulemaking Board. 

(13) Pursuant to § 240.19b–4(f)(6)(iii) 

of this chapter (Rule 19b–4(f)(6)(iii)), to 

reduce the period before which a 

proposed rule change can become 

operative, and to reduce the period 

between an Municipal Securities 

Rulemaking Board submission of a filing 

and a pre-filing notification. 

(14) Pursuant to section 36 of the Act 

(15 U.S.C. 78mm), to review and grant 

or deny exemptions from the rule filing 

requirements of section 19(b) (15 U.S.C. 

78s(b)) of the Act, in a case where the 

Municipal Securities Rulemaking Board 

elects to incorporate by reference one or 

more rules of another self-regulatory 

organization, provided that the 

following specified terms and 

conditions are met: 

(i) The Municipal Securities 

Rulemaking Board, when electing to 

incorporate rules of another selfregulatory organization, has requested to 

incorporate rules other than trading 

rules (e.g., the Municipal Securities 

Rulemaking Board has requested to 

incorporate rules such as margin, 

suitability, arbitration); 

(ii) The Municipal Securities 

Rulemaking Board, when electing to 

incorporate rules of another selfregulatory organization has requested to 

incorporate by reference categories of 

rules (rather than to incorporate 

individual rules within a category); and 

(iii) The Municipal Securities 

Rulemaking Board has reasonable 

procedures in place to provide written 

notice to its members each time a 

change is proposed to the incorporated 

rules of another self-regulatory 

organization. 

(b) To consult on behalf of the 

Commission pursuant to section 18(t)(1) 

of the Federal Deposit Insurance Act (12 

U.S.C. 1828(t)(1)) with respect to 

matters described in § 200.19a. 

* * * * * 

■ 25. Section 200.30–3b is added to read 

as follows: 

§ 200.30–3b Delegation of authority to 

Director of the Office of Credit Ratings. 

Pursuant to the provisions of Public 

Law 100–181, 101 Stat. 1254, 1255 (15 

U.S.C. 78d–1, 78d–2), the Securities and 

Exchange Commission hereby delegates, 

until the Commission orders otherwise, 

the following functions to the Director 

of the Office of Credit Ratings to be 

performed by the Director or under the 

direction of the Director by such person 

or persons as may be designated from 

time to time by the Chairman of the 

Commission: 

(a) With respect to the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et 

seq.): 

(1) To grant and deny applications for 

confidential treatment filed pursuant to 

section 24(b) of the Act (15 U.S.C. 

78x(b)) and § 240.24b–2 of this chapter 

(Rule 24b–2 thereunder); 

(2) To revoke a grant of confidential 

treatment for any such application. 

(b) With respect to the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et 

seq.): 

(1) To administer the provisions of 

§ 240.24c–1 of this chapter; provided 

that access to nonpublic information as 

defined in § 240.24c–1 shall be provided 

only with the concurrence of the head 

of the Commission division or office 

responsible for such information or the 

files containing such information. 

(2) To administer the provisions of 

section 24(d) of the Act (15 U.S.C. 

78x(d)). 

§ 200.30–5 [Amended] 

■ 26. Section 200.30–5 is amended by: 

■ a. In the introductory text: 

■ i. Removing the citation ‘‘Pub. L. 87– 

592, 76 Stat. 394’’ and adding in its 

place the citation ‘‘sections 4A and 4B 

of the Securities Exchange Act of 1934, 

as amended,’’; and 

■ ii. Removing the words ‘‘him or under 

his’’ and adding in their place the words 

‘‘the Director or under the Director’s’’; 

■ b. In paragraph (a)(4)(ii), removing the 

word ‘‘he’’ and adding in its place the 

words ‘‘the applicant’’; 

■ c. In paragraph (b–1)(1), removing the 

word ‘‘him’’ and adding in its place the 

words ‘‘the Director’’; 

■ d. In paragraph (b–1)(2): 

■ i. Removing the word ‘‘he’’ and 

adding in its place the words ‘‘the 

Director’’; and 

■ ii. Removing the word ‘‘him’’ and 

adding in its place the words ‘‘the 

Director’’; 

■ e. Removing and reserving paragraph 

(h)(1); and 

■ f. In paragraph (h)(2), removing the 

word ‘‘he’’ and adding in its place the 

words ‘‘the Director’’. 

■ 27. Section 200.30–6 is amended by: 

■ a. In the introductory text: 

■ i. Removing ‘‘the provisions of Pub. L. 

87–592, 76 Stat. 394’’ and adding in its 

place ‘‘sections 4A and 4B of the 

Securities Exchange Act of 1934, as 

amended (15 U.S.C. 78d–1, 78d–2)’’; 

and 

■ ii. Removing the words ‘‘him or under 

his’’ and adding in their place the words 

‘‘the Regional Director or under the 

Regional Director’s’’; and 

■ b. Revising paragraph (e). 

The revision reads as follows: 

§ 200.30–6 Delegation of authority to 

Regional Directors. 

* * * * * 

(e) Notwithstanding anything in 

paragraphs (a) through (d) of this 

section, in any case in which the 

Regional Director believes it 

appropriate, the Regional Director may 

submit the matter to the Commission. 

§ 200.30–7 [Amended] 

■ 28. Section 200.30–7 is amended by: 

■ a. In the introductory text: 

■ i. Removing ‘‘the provisions of Pub. L. 

87–592, 76 Stat. 394 (15 U.S.C. 78d–1)’’ 

and adding in its place ‘‘sections 4A and 

4B of the Securities Exchange Act of 

1934, as amended (15 U.S.C. 78d–1, 

78d–2)’’; and 

■ ii. Removing the words ‘‘him or under 

his’’ and adding in their place the words 

‘‘the Secretary or under the Secretary’s’’; 

■ b. In paragraph (d): 

■ i. Removing the citation ‘‘§ 200.30– 

14(i)’’ and adding in its place the 

citation ‘‘§ 200.30–14(h) and (j)’’; and 


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■ ii. Removing the citation ‘‘§ 200.30– 

14(j)’’ and adding in its place the 

citation ‘‘§ 200.30–14(i) and (k)’’; and 

■ c. In paragraph (e): 

■ i. Removing the words ‘‘the foregoing’’ 

and adding in their place ‘‘paragraphs 

(a) through (d) of this section’’; and 

■ ii. Removing the words ‘‘he or she’’ 

and adding in their place the words ‘‘the 

Secretary’’. 

§ 200.30–10 [Amended] 

■ 29. Section 200.30–10 is amended by: 

■ a. In the introductory text: 

■ i. Removing ‘‘the provisions of Pub. L. 

87–592, 76 Stat. 394’’ and adding in its 

place ‘‘sections 4A and 4B of the 

Securities Exchange Act of 1934, as 

amended’’; and 

■ ii. Removing the word ‘‘his’’ and 

adding in its place ‘‘the Chief 

Administrative Law Judge’s’’; 

■ b. In paragraph (a)(6): 

■ i. Removing the word ‘‘subpenas’’ and 

adding ‘‘subpoenas’’; and 

■ ii. Removing ‘‘Rule 232 of the 

Commission’s Rules of Practice, 201.232 

of this chapter’’ and adding in its place 

‘‘§ 201.232 of this chapter (Rule 232 of 

the Commission’s Rules of Practice)’’; 

and 

■ c. In paragraph (c): 

■ i. Removing the words ‘‘the foregoing’’ 

and adding in their place ‘‘paragraphs 

(a) and (b) of this section’’; and 

■ ii. Removing the words ‘‘he or she’’ 

and adding in their place ‘‘the Chief 

Administrative Law Judge’’. 

■ 30. Section 200.30–11 is amended by: 

■ a. In the introductory text, removing 

the words ‘‘him or her or under his or 

her’’ and adding in their place the 

words ‘‘the Chief Accountant or under 

the Chief Accountant’s’’; 

■ b. In paragraph (a)(4): 

■ i. Removing the words ‘‘he or she’’ 

and adding in their place the words ‘‘the 

Chief Accountant’’; and 

■ ii. Removing the citation ‘‘§ 202.140’’ 

and adding in its place ‘‘§ 202.140 of 

this chapter’’; 

■ c. In paragraph (b)(2), removing the 

words ‘‘his or her’’ and adding in their 

place the words ‘‘the Chief 

Accountant’s’’; 

■ d. Redesignating paragraph (c) as 

paragraph (d); 

■ e. Adding new paragraph (c); and 

■ f. In newly redesignated paragraph (d): 

■ i. Removing the words ‘‘the foregoing’’ 

and adding in their place ‘‘paragraphs 

(a) through (c) of this section’’; and 

■ ii. Removing the words ‘‘he or she’’ 

and adding in their place the words ‘‘the 

Chief Accountant’’. 

The addition reads as follows: 

§ 200.30–11 Delegation of authority to the 

Chief Accountant. 

* * * * * 

(c) To administer the provisions of 

§ 240.24c–1 of this chapter; provided 

that access to nonpublic information as 

defined in § 240.24c–1 shall be provided 

only with the concurrence of the head 

of the Commission division or office 

responsible for such information or the 

files containing such information. 

* * * * * 

§ 200.30–13 [Amended] 

■ 31. Section 200.30–13 is amended by: 

■ a. In the introductory text, removing 

the words ‘‘him or her, or under his or 

her’’ and adding in their place the 

words ‘‘the Chief Financial Officer or 

under the Chief Financial Officer’s’’; 

and 

■ b. In paragraph (c), removing the 

words ‘‘his or her’’ and adding in their 

place the words ‘‘the Secretary of the 

Treasury’s’’. 

§ 200.30–14 [Amended] 

■ 32. Section 200.30–14 is amended by: 

■ a. In the introductory text, removing 

the words ‘‘him or her or under his or 

her’’ and adding in their place the 

words ‘‘the General Counsel or under 

the General Counsel’s’’; 

■ b. In paragraph (b), removing the 

words ‘‘and amicus curiae’’ and adding 

in their place the words ‘‘an amicus 

curiae’’; 

■ c. In paragraph (h)(1)(iii), removing 

the word ‘‘his’’ and adding in its place 

the word ‘‘an’’; 

■ d. In paragraph (i): 

■ i. Removing the words ‘‘paragraph (g) 

of this section, the functions described 

in paragraph (g)’’ and adding in their 

place the words ‘‘paragraph (h) of this 

section, the functions described in 

paragraph (h)’’; 

■ ii. Removing the words ‘‘Executive 

Assistant to the Chairman’’ and adding 

in its place the words ‘‘Secretary of the 

Commission’’; and 

■ iii. Removing the citation ‘‘§ 200.30– 

16’’ and adding in its place the citation 

‘‘§ 200.30–7’’; and 

■ e. In paragraph (l): 

■ i. Removing the citation ‘‘paragraphs 

(g) or (i)’’ and adding in its place 

‘‘paragraph (h) or (j)’’; and 

■ ii Removing the words ‘‘he or she’’ 

and adding in their place the words ‘‘the 

General Counsel’’. 

§ 200.30–15 [Amended] 

■ 33. Section 200.30–15 is amended by 

removing the words ‘‘him or her or 

under his or her’’ and adding in their 

place the words ‘‘the Chief Operating 

Officer or under the Chief Operating 

Officer’s’’. 

§ 200.30–16 [Removed and Reserved] 

■ 34. Section 200.30–16 is removed and 

reserved. 

■ 35. Section 200.30–18 is amended by: 

■ a. Revising the section heading and 

introductory text; 

■ b. Removing and reserving paragraphs 

(b), (e) through (h), and (k)(2); 

■ c. In paragraph (l)(1), removing the 

words ‘‘him or her’’ and adding in their 

place the words ‘‘the member’’; 

■ d. Redesignating paragraph (m) as 

paragraph (n); 

■ e. Adding new paragraph (m); and 

■ f. In newly redesignated paragraph (n): 

■ i. Removing the words ‘‘the foregoing’’ 

and adding in their place ‘‘paragraphs 

(a) through (m) of this section’’; and 

■ ii. Removing the words ‘‘the OCIE’’ 

and adding in their place the word 

‘‘Examinations’’. 

The addition and revisions read as 

follows: 

§ 200.30–18 Delegation of authority to 

Director of the Division of Examinations. 

Pursuant to the provisions of Public 

Law 100–181, 101 Stat. 1254, 1255 (15 

U.S.C. 78d–1, 78d–2), the Securities and 

Exchange Commission hereby delegates, 

until the Commission orders otherwise, 

the following authority to the Director of 

the Division of Examinations 

(‘‘Examinations’’) to be performed by 

the Director or by such other person or 

persons as may be designated from time 

to time by the Chairman of the 

Commission: 

* * * * * 

(m) With respect to the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et 

seq.): 

(1) Under section 15F(b) of the Act (15 

U.S.C. 78o–10(b)): 

(i) To authorize the issuance of orders 

granting on-going registration to 

security-based swap dealers and major 

security-based swap participants based 

on the security-based swap dealer’s or 

major security-based swap participant’s 

application, pursuant to § 240.15Fb2– 

1(e) of this chapter (Rule 15Fb2–1(e)); 

(ii) To authorize the issuance of 

orders canceling the registration of 

security-based swap dealers and major 

security-based swap participants 

registered pursuant to § 240.15Fb2–1 of 

this chapter (Rule 15Fb2–1) if such 

persons are no longer in existence or 

have ceased to do business as securitybased swap dealers or major securitybased swap participants, pursuant to 

§ 240.15Fb3–3(a) of this chapter (Rule 

15Fb3–3(a)); and 

(iii) To determine by order, pursuant 

to § 240.15Fb3–2(b) of this chapter (Rule 

15Fb3–2(b)), whether notices of 

withdrawal of registration filed by 


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9448 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations 

1 Five-Year Review of the Oil Pipeline Index, 171 

FERC ¶ 61,239, at P 1 (2020) (NOI). 

2 Designated Carriers include Buckeye Partners, 

L.P., Colonial Pipeline Company, Energy Transfer 

LP, Enterprise Products Partners L.P., and Plains 

All American Pipeline, L.P. 

3Public Law 102–486 1801(a), 106 Stat. 3010 

(Oct. 24, 1992). This mandate to establish a 

simplified and generally applicable ratemaking 

methodology specifically excluded the TransAlaska Pipeline System (TAPS), or any pipeline 

delivering oil, directly or indirectly, into TAPS. Id. 

1804(2)(B). 

4 49 U.S.C. app. 1 et seq. 

5Revisions to Oil Pipeline Regulations Pursuant 

to Energy Policy Act of 1992, Order No. 561, 58 FR 

58753 (Nov. 4, 1993) FERC Stats. & Regs. ¶ 30,985 

(1993) (cross-referenced at 65 FERC ¶ 61,109), order 

on reh’g, Order No. 561–A, FERC Stats. & Regs. 

¶ 31,000 (1994) (cross-referenced at 68 FERC 

¶ 61,138), aff’d sub nom. Ass’n of Oil Pipe Lines v. 

FERC, 83 F.3d 1424 (D.C. Cir. 1996) (AOPL I). 

6Pursuant to the Commission’s indexing 

methodology, oil pipelines change their rate ceiling 

levels effective every July 1 by ‘‘multiplying the 

previous index year’s ceiling level by the most 

recent index published by the Commission.’’ 18 

CFR 342.3(d)(1). Oil pipelines may adjust their rates 

to the ceiling levels pursuant to Commission’s 

regulations so long as no protest or complaint 

demonstrates that the index rate change 

substantially diverges from the pipeline’s cost 

changes. Id. 343.2(c)(1). 

7Order No. 561, FERC Stats. & Regs. ¶ 30,985 at 

30,941. 

8 Five-Year Review of Oil Pipeline Pricing Index, 

93 FERC ¶ 61,266 (2000), aff’d in part and 

remanded in part sub nom. Ass’n of Oil Pipe Lines 

v. FERC, 281 F.3d 239 (D.C. Cir. 2002) (AOPL II), 

order on remand, 102 FERC ¶ 61,195 (2003), aff’d 

sub nom. Flying J Inc. v. FERC, 363 F.3d 495 (D.C. 

Cir. 2004). 

9 Five-Year Review of Oil Pipeline Pricing Index, 

114 FERC ¶ 61,293 (2006) (2005 Index Review). 

10 Five-Year Review of Oil Pipeline Pricing Index, 

133 FERC ¶ 61,228 (2010) (2010 Index Review), 

reh’g denied, 135 FERC ¶ 61,172 (2011). 

11 Five-Year Review of the Oil Pipeline Index, 153 

FERC ¶ 61,312 (2015) (2015 Index Review), aff’d 

sub nom. Ass’n of Oil Pipe Lines v. FERC, 876 F.3d 

336 (D.C. Cir. 2017) (AOPL III). 

12 2015 Index Review, 153 FERC ¶ 61,312 at P 9. 

13The United States Court of Appeals for the 

District of Columbia Circuit has affirmed the 

Commission’s use of the Kahn Methodology. AOPL 

I, 83 F.3d at 1433–37; Flying J Inc. v. FERC, 363 

F.3d at 497–500. 

14The weighted mean assigns a different weight 

to each pipeline’s cost change based upon the 

pipeline’s total barrel-miles. 

security-based swap dealers or major 

security-based swap participants 

pursuant to section 15F(b) of the 

Securities Exchange Act of 1934 (15 

U.S.C. 78o–10(b)) shall become effective 

sooner than the normal 60 day waiting 

period provided in Rule 15Fb3–2(b) 

(§ 240.15Fb3–2(b) of this chapter). 

* * * * * 

By the Commission. 

Dated: December 22, 2020. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2020–28819 Filed 2–12–21; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Part 342 

[Docket No. RM20–14–000] 

Five-Year Review of the Oil Pipeline 

Index 

AGENCY: Federal Energy Regulatory 

Commission, Department of Energy. 

ACTION: Order establishing index level. 

SUMMARY: The Federal Energy 

Regulatory Commission (Commission) 

issues this Final Order concluding its 

five-year review of the index level used 

to determine annual changes to oil 

pipeline rate ceilings. The Commission 

establishes an index level of Producer 

Price Index for Finished Goods plus 

0.78% (PPI–FG+0.78%) for the five-year 

period commencing July 1, 2021. 

DATES: This order is effective February 

16, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Evan Steiner (Legal Information), Office 

of the General Counsel, 888 First 

Street NE, Washington, DC 20426, 

(202) 502–8792 

Monil Patel (Technical Information), 

Office of Energy Market Regulation, 

888 First Street NE, Washington, DC 

20426, (202) 502–8296 

SUPPLEMENTARY INFORMATION: 

1. On June 18, 2020, the Commission 

issued a Notice of Inquiry initiating its 

five-year review to establish the oil 

pipeline index level for the July 1, 2021 

to June 30, 2026 time period.1 The NOI 

requested comment regarding: (a) The 

proposed index level of Producer Price 

Index for Finished Goods plus 0.09% 

(PPI–FG+0.09%); and (b) any alternative 

methodologies for calculating the index 

level. 

2. For the reasons discussed below, 

we adopt an index level of PPI– 

FG+0.78%. The departure from the NOI 

results from: (a) Trimming the data set 

to the middle 80% of cost changes; (b) 

adopting Designated Carriers’ 2 proposal 

to adjust the data set to remove the 

effects of the Commission’s 2018 

income tax policy change for Master 

Limited Partnership (MLP)-owned 

pipelines; and (c) updated Form No. 6 

filings and other corrections to the data 

set. The Commission’s indexing 

calculations and other data analysis are 

contained in Attachment A to this order. 

As discussed below, we decline to adopt 

other changes to the index calculation 

proposed by commenters. 

I. Background 

A. Establishment of the Indexing 

Methodology 

3. The Energy Policy Act of 1992 

(EPAct 1992) required the Commission 

to establish a ‘‘simplified and generally 

applicable’’ ratemaking methodology 3

that was consistent with the just and 

reasonable standard of the Interstate 

Commerce Act (ICA).4 To implement 

this mandate, the Commission issued 

Order No. 561 5 establishing an indexing 

methodology that allows oil pipelines to 

change their rates subject to certain 

ceiling levels as opposed to making 

cost-of-service filings.6

4. In Order No. 561, the Commission 

committed to review the index level 

every five years to ensure that it 

adequately reflects changes to industry 

costs.7 The Commission conducted fiveyear index reviews in 2000,8 2005,9

2010,10 and 2015.11 In the 2015 review, 

the Commission established the index 

level of PPI–FG+1.23%, to be effective 

for the five-year period beginning July 1, 

2016.12 The index level established 

herein results from the Commission’s 

fifth five-year review of the index level. 

B. The Kahn Methodology 

5. In Order No. 561 and each 

successive five-year review, the 

Commission has calculated the index 

level based upon a methodology 

developed by Dr. Alfred E. Kahn.13 The 

Kahn Methodology uses pipeline data 

from Form No. 6, page 700 from the 

prior five-year period to determine an 

appropriate adjustment to be applied to 

PPI–FG. The calculation is as follows. 

Each pipeline’s cost change on a perbarrel mile basis over the prior five-year 

period (e.g., the years 2014–2019 in this 

proceeding) is calculated. In order to 

remove statistical outliers and spurious 

data, under the Kahn Methodology, the 

resulting data set is trimmed to those oil 

pipelines in the middle 50% of cost 

changes (middle 50%). The Kahn 

Methodology then calculates three 

measures of the middle 50%’s central 

tendency: The median, the mean, and a 

weighted mean.14 The Kahn 

Methodology calculates a composite by 

averaging these measures of central 

tendency and measures the difference 

between the composite and the PPI–FG 

over the prior five-year period. The 

Commission then sets the index level at 

PPI–FG plus (or minus) this differential. 

C. The 2020 Five-Year Review 

6. On June 18, 2020, the Commission 

issued the NOI initiating its five-year 


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