Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 14413 

21See, National Archives and Records 

Administration, Office of the Federal Register, 

‘‘Federal Register Document Drafting Handbook,’’

ch. 6 (1998). This handbook contains the rules 

federal agencies must follow to incorporate 

materials by reference into regulatory text. This 

handbook is issued under the Federal Register Act 

(44 U.S.C. 1501–1511) and the regulations of the 

Administrative Committee of the Federal Register (1 

CFR 15.10). 

22Comments made in connection with the 

Recycled Oil rulemaking in 1995 similarly 

suggested that the final rule require use of test 

procedures found in the ‘‘latest’’ or ‘‘current’’

version of API Publication 1509. In addressing 

comments made in connection with the 1995 

rulemaking, the Commission’s Federal Register 

notice detailed why such proposals were not 

feasible. (60 FRN 55417–55418). 

will prevent confusion as new editions 

are issued. 

Although this suggestion has 

considerable merit, each statement of 

incorporation by reference in regulatory 

text must specifically identify the 

material to be incorporated, including 

the title, date, edition, author, publisher, 

and identification number of the 

publication.21 Therefore, the 

Commission does not have discretion to 

refer generally to the ‘‘latest’’ or 

‘‘current’’ edition of API Publication 

1509 in the Rule.22 Because Publication 

1509 is in its Fifteenth Edition, the 

Commission is incorporating it by 

reference by publishing an amendment 

to the Code of Federal Regulations in 

the current rulemaking. 

IV. Conclusion 

The comments provide evidence that 

the Rule serves a useful purpose, while 

imposing minimal costs on the industry; 

and the Commission has no evidence to 

the contrary. Accordingly, with the 

exception of incorporating by reference 

API Publication 1509, Fifteenth Edition, 

and adding an updated explanation of 

incorporation by reference in Section 

311.4, the Commission has determined 

to retain the Recycled Oil Rule in its 

current form. 

V. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(‘‘RFA’’), 5 U.S.C. 601–612, requires an 

agency to provide a Final Regulatory 

Flexibility Analysis with the final rule, 

unless the agency certifies that the rule 

will not have a significant economic 

impact on a substantial number of small 

entities. See 5 U.S.C. 603–605. The Rule 

permits rather than requires any 

container of recycled oil to bear a label 

indicating that it is substantially 

equivalent to new engine oil, if such 

determination has been made in 

accordance with the prescribed test 

procedures. The Rule imposes no 

reporting or recordkeeping 

requirements, and it permits recycled 

oil to be labeled with information that 

is basic and easily ascertainable. In 

addition, the Rule does not require 

recycled oil manufacturers to conduct 

substantial equivalency tests themselves 

and maintain their own testing 

equipment. Rather, they may use third 

parties to minimize testing costs. In any 

event, the Commission believes the 

Rule, as amended, does not affect a 

substantial number of small entities 

because relatively few companies 

currently manufacture and sell recycled 

oil as engine oil, and that most would 

not be ‘‘small entities’’ under applicable 

regulations, 13 CFR part 121. Although 

there may be some ‘‘small entities’’

among private-label retail sellers or 

distributors of recycled engine oil, the 

Rule’s labeling standards should 

continue to have only a minimal impact 

on such entities, because the Rule is 

limited to voluntary labeling disclosures 

beyond the labeling costs that such 

entities already incur. Accordingly, for 

the reasons above, the Commission 

certifies that the Rule, as amended, will 

not have a significant economic impact 

on a substantial number of small 

entities. This document serves as notice 

of that determination to the Small 

Business Administration. 

VI. Paperwork Reduction Act 

Under the Paperwork Reduction Act 

(‘‘PRA’’), 44 U.S.C. 3501–3520, federal 

agencies must obtain approval from the 

Office of Management and Budget 

(‘‘OMB’’) for each collection of 

information they conduct or sponsor. 

‘‘Collection of information’’ means 

agency requests or requirements that 

members of the public submit reports, 

keep records, or provide information to 

a third party. 44 U.S.C. 3502(3); 5 CFR 

1320.3(c). The amended Rule does not 

involve the ‘‘collection of information’’

under the PRA and, therefore, OMB 

approval is not required. 

List of Subjects in 16 CFR Part 311 

Energy conservation, Incorporation by 

reference, Labeling, Recycled oil, Trade 

practices. 

Text of Amendments 

■ For the reason set forth in the 

preamble, 16 CFR part 311 is amended 

as follows: 

PART 311—TEST PROCEDURES AND 

LABELING STANDARDS FOR 

RECYCLED OIL 

■ 1. The authority citation for part 311 

continues to read as follows: 

Authority: 42 U.S.C. 6363(d). 

■ 2. Revise § 311.4 to read as follows: 

§ 311.4 Testing. 

To determine the substantial 

equivalency of processed used oil with 

new oil for use as engine oil, 

manufacturers or their designees must 

use the test procedures that were 

reported to the Commission by the 

National Institutes of Standards and 

Technology (‘‘NIST’’) on July 27, 1995, 

entitled ‘‘Engine Oil Licensing and 

Certification System,’’ American 

Petroleum Institute (‘‘API’’), Publication 

1509, Thirteenth Edition, January 1995. 

API Publication 1509, Thirteenth 

Edition has been updated to API 

Publication 1509, Fifteenth Edition, 

April 2002. API Publication 1509, 

Fifteenth Edition, April 2002, is 

incorporated by reference. This 

incorporation by reference is approved 

by the Director of the Federal Register 

in accordance with 5 U.S.C. 552(a) and 

1 CFR part 51. Copies of the materials 

incorporated by reference may be 

obtained from: API, 1220 L Street, NW., 

Washington, DC 20005. Copies may be 

inspected at the Federal Trade 

Commission, Consumer Response 

Center, Room 130, 600 Pennsylvania 

Avenue, NW., Washington, DC 20580, 

or at the National Archives and Records 

Administration (‘‘NARA’’). For 

information on the availability of this 

material at NARA, call (202) 741–6030, 

or go to: http://www.archives.gov/ 

federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html. 

By direction of the Commission. 

Donald S. Clark, 

Secretary. 

[FR Doc. E7–5678 Filed 3–27–07; 8:45 am] 

BILLING CODE 6750–01–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 30 

Foreign Futures and Options 

Transactions 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Order. 

SUMMARY: The Commodity Futures 

Trading Commission (Commission or 

(CFTC) is granting an exemption to 

firms designated by the Taiwan Futures 

Exchange (TAIFEX) from the 

application of certain of the 

Commission’s foreign futures and 

option regulations based upon 

substituted compliance with certain 

comparable regulatory and selfregulatory requirements of a foreign 

regulatory authority consistent with 


pwalker on PROD1PC71 with RULES
14414 Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 

1Commission regulations referred to herein are 

found at 17 CFR Ch. I (2006). 

2 52 FR 28990, 29001 (August 5, 1987). 

3 52 FR 28980, 28981 and 29002. 

conditions specified by the 

Commission, as set forth herein. This 

Order is issued pursuant to Commission 

Regulation 30.10, which permits 

persons to file a petition with the 

Commission for exemption from the 

application of certain of the Regulations 

set forth in Part 30 and authorizes the 

Commission to grant such an exemption 

if such action would not be otherwise 

contrary to the public interest or to the 

purposes of the provision from which 

exemption is sought. 

DATES: Effective Date: March 28, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Lawrence B. Patent, Esq., Deputy 

Director, Division of Clearing and 

Intermediary Oversight, Commodity 

Futures Trading Commission, 1155 21st 

Street, NW., Washington, DC 20581. 

Telephone: (202) 418–5439. 

SUPPLEMENTARY INFORMATION: The 

Commission has issued the following 

Order: 

Order Under CFTC Regulation 30.10 

Exempting Firms Designated by the 

Taiwan Futures Exchange (TAIFEX) 

From the Application of Certain of the 

Foreign Futures and Option Regulations 

the Later of the Date of Publication of 

the Order Herein in the Federal Register 

or After Filing of Consents by Such 

Firms and TAIFEX, as Appropriate, to 

the Terms and Conditions of the Order 

Herein. 

Commission Regulations governing 

the offer and sale of commodity futures 

and option contracts traded on or 

subject to the regulations of a foreign 

board of trade to customers located in 

the U.S. are contained in Part 30 of the 

Commission’s regulations.1 These 

regulations include requirements for 

intermediaries with respect to 

registration, disclosure, capital 

adequacy, protection of customer funds, 

recordkeeping and reporting, and sales 

practice and compliance procedures 

that are generally comparable to those 

applicable to transactions on U.S. 

markets. 

In formulating a regulatory program to 

govern the offer and sale of foreign 

futures and option products to 

customers located in the U.S., the 

Commission, among other things, 

considered the desirability of 

ameliorating the potential 

extraterritorial impact of such a program 

and avoiding duplicative regulation of 

firms engaged in international business. 

Based upon these considerations, the 

Commission determined to permit 

persons located outside the U.S. the 

subject to a comparable regulatory 

structure in the jurisdiction in which 

they were located to seek an exemption 

from certain of the requirements under 

Part 30 of the Commission’s regulations 

based upon substituted compliance with 

the regulatory requirements of the 

foreign jurisdiction. 

Appendix A to Part 30 ‘‘Interpretative 

Statement With Respect to the 

Commission’s Exemptive Authority 

Under § 30.10 of Its Rules’’ (Appendix 

A), generally sets forth the elements the 

Commission will evaluate in 

determining whether a particular 

regulatory program may be found to be 

comparable for purposes of exemptive 

relief pursuant to Regulation 30.10. 2

These elements include: (1) 

Registration, authorization or other form 

of licensing, fitness review or 

qualification of persons that solicit and 

accept customer orders; (2) minimum 

financial requirements for those persons 

that solicit and accept customer orders; 

(3) protection of customer funds from 

misapplication; (4) recordkeeping and 

reporting requirements; (5) sales 

practice standards; (6) procedures to 

audit for compliance with, and to take 

action against those persons who 

violate, the requirements of the 

program; and (7) information sharing 

arrangements between the Commission 

and the appropriate governmental and/ 

or self-regulatory organization to ensure 

Commission access on an ‘‘as needed’’

basis to information essential to 

maintaining standards of customer and 

market protection within the U.S. 

Moreover, the Commission 

specifically stated in adopting 

Regulation 30.10 that no exemption of a 

general nature would be granted unless 

the persons to whom the exemption is 

to be applied: (1) Submit to jurisdiction 

in the U.S. by designating an agent for 

service of process in the U.S. with 

respect to transactions subject to Part 30 

and filing a copy of the agency 

agreement with the National Futures 

Association (NFA); (2) agree to provide 

access to their books and records in the 

U.S. to Commission and Department of 

Justice representatives; and (3) notify 

NFA of the commencement of business 

in the U.S.3

On September 20, 2005, TAIFEX 

petitioned the Commission on behalf of 

its member firms, located and doing 

business in Taiwan, for an exemption 

from the application of the 

Commission’s Part 30 Regulations to 

those firms. In support of its petition, 

TAIFEX states that granting such an 

exemption with respect to such firms 

that it has authorized to conduct foreign 

futures and option transactions on 

behalf of customers located in the U.S. 

would not be contrary to the public 

interest or to the purposes of the 

provisions from which the exemption is 

sought because such firms are subject to 

a regulatory framework comparable to 

that imposed by the Commodity 

Exchange Act (Act) and the regulations 

thereunder. 

Based upon a review of the petition, 

supplementary materials filed by 

TAIFEX and the recommendation of the 

Commission’s staff, the Commission has 

concluded that the standards for relief 

set forth in Regulation 30.10 and, in 

particular, Appendix A thereof, have 

been met and that compliance with 

applicable Taiwanese law and TAIFEX 

regulations may be substituted for 

compliance with those sections of the 

Act and regulations thereunder more 

particularly set forth herein. 

By this Order, the Commission hereby 

exempts, subject to specified conditions, 

those firms identified to the 

Commission by TAIFEX as eligible for 

the relief granted herein from: 

—Registration with the Commission for firms 

and for firm representatives; 

—The requirement in Commission 

Regulation 30.6(a) and (d), 17 CFR § 30.6(a) 

and (d), that firms provide customers 

located in the U.S. with the risk disclosure 

statements in Commission Regulation 

1.55(b), 17 CFR § 1.55(b), and Commission 

Regulation 33.7, 17 CFR § 33.7, or as 

otherwise approved under Commission 

Regulation 1.55(c), 17 CFR § 1.55(c); 

—The separate account requirement 

contained in Commission Regulation 30.7, 

17 CFR § 30.7; 

—Those sections of Part 1 of the 

Commission’s financial regulations that 

apply to foreign futures and options sold 

in the U.S. as set forth in Part 30; and 

—Those sections of Part 1 of the 

Commission’s regulations relating to books 

and records which apply to transactions 

subject to Part 30, 

based upon substituted compliance by 

such persons with the application 

statutes and regulations in effect in 

Taiwan. 

This determination to permit 

substituted compliance is based on, 

among other things, the Commission’s 

finding that the regulatory framework 

governing persons in Taiwan who 

would be exempted hereunder provides: 

(1) A system of qualification or 

authorization of firms who deal in 

transactions subject to regulation under Part 

30 that includes, for example, criteria and 

procedures for granting, monitoring, 

suspending and revoking licenses, and 

provisions for requiring and obtaining access 

to information about authorized firms and 

persons who act on behalf of such firms; 

(2) Financial requirements for firms 

including, without limitation, a requirement 


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Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 14415 

4See, e.g., Sections 2(a)(1)(C) and (D) of the Act. 

5See, e.g., 17 CFR part 18 (2006). 

6See, e.g., 17 CFR parts 17 and 21 (2006). 

7As described below, these representations are to 

be filed with NFA. 

8 62 FR 47792, 47793 (September 11, 1997). 

Among other duties, the Commission authorized 

NFA to receive requests for confirmation of 

Regulation 30.10 relief on behalf of particular firms, 

to verify such firms’ fitness and compliance with 

the conditions of the appropriate Regulation 30.10 

Order and to grant exemptive relief from 

registration to qualifying firms. 

for a minimum level of working capital and 

daily mark-to-market settlement and/or 

accounting procedures; 

(3) A system for the protection of customer 

assets that is designed to preclude the use of 

customer assets to satisfy house obligations 

and requires separate accounting for such 

assets; 

(4) Recordkeeping and reporting 

requirements pertaining to financial and 

trade information; 

(5) Sales practice standards for authorized 

firms and persons acting on their behalf that 

include, for example, required disclosures to 

prospective customers and prohibitions on 

improper trading advice; 

(6) Procedures to audit for compliance 

with, and to redress violations of, the 

customer protection and sales practice 

requirements referred to above, including, 

without limitation, an affirmative 

surveillance program designed to detect 

trading activities that take advantage of 

customers, and the existence of broad powers 

of investigation relating to sales practice 

abuses; and 

(7) Mechanisms for sharing of information 

between the Commission, TAIFEX, and the 

Taiwanese regulatory authorities on an ‘‘as 

needed’’ basis including, without limitation, 

confirmation data, data necessary to trace 

funds related to trading futures products 

subject to regulation in Taiwan, position 

data, and data on firms’ standing to do 

business and financial condition. 

Commission staff have concluded, 

upon review of the petition of TAIFEX 

and accompanying exhibits, that 

Taiwan’s regulation of futures and 

options exchanges is comparable to that 

of the U.S. in the areas specified in 

Appendix A of Part 30, as described 

above. 

This Order does not provide an 

exemption from any provision of the 

Act or regulations thereunder not 

specified herein, such as the antifraud 

provision in Regulation 30.9. Moreover, 

the relief granted is limited to brokerage 

activities undertaken on behalf of 

customers located in the U.S. with 

respect to transactions on or subject to 

the regulations of TAIFEX for products 

that customers located in the U.S. may 

trade.4 The relief does not extend to 

regulations relating to trading, directly 

or indirectly, on U.S. exchanges. For 

example, a firm trading in U.S. markets 

for its own account would be subject to 

the Commission’s large trader reporting 

requirements.5 Similarly, if such a firm 

were carrying positions on a U.S. 

exchange on behalf of foreign clients 

and submitted such transactions for 

clearing on an omnibus basis through a 

firm registered as a futures commission 

merchant under the Act, it would be 

subject to the reporting requirements 

applicable to foreign brokers.6 The relief 

herein is inapplicable where the firm 

solicits or accepts orders from 

customers located in the U.S. for 

transactions on U.S. markets. In that 

case, the firm must comply with all 

applicable U.S. laws and regulations, 

including the requirement to register in 

the appropriate capacity. 

The eligibility of any firm to seek 

relief under this exemptive Order is 

subject to the following conditions: 

(1) The regulatory or self-regulatory 

organization responsible for monitoring the 

compliance of such firms with the regulatory 

requirements described in the Regulation 

30.10 petition must represent in writing to 

the CFTC7 that: 

(a) Each firm for which relief is sought is 

registered, licensed or authorized, as 

appropriate, and is otherwise in good 

standing under the standards in place in 

Taiwan; such firm is engaged in business 

with customers in Taiwan as well as in the 

U.S.; and such firm and its principals and 

employees who engage in activities subject to 

Part 30 would not be statutorily disqualified 

from registration under Section 8a(2) of the 

Act, 7 U.S.C. § 12a(2); 

(b) It will monitor firms to which relief is 

granted for compliance with the regulatory 

requirements for which substituted 

compliance is accepted and will promptly 

notify the Commission or NFA of any change 

in status of a firm that would affect its 

continued eligibility for the exemption 

granted hereunder, including the termination 

of its activities in the U.S.; 

(c) All transactions with respect to 

customers resident in the U.S. will be made 

on or subject to the regulations of TAIFEX 

and the Commission will receive prompt 

notice of all material changes to the relevant 

laws in Taiwan, any regulations promulgated 

thereunder and TAIFEX regulations; 

(d) Customers located in the U.S. will be 

provided no less stringent regulatory 

protection than Taiwanese customers under 

all relevant provisions of Taiwanese law; and 

(e) It will cooperate with the Commission 

with respect to any inquiries concerning any 

activity subject to regulation under the Part 

30 Regulations, including sharing the 

information specified in Appendix A on an 

‘‘as needed’’ basis and will use its best efforts 

to notify the Commission if it becomes aware 

of any information that in its judgment 

affects the financial or operational viability of 

a member firm doing business in the U.S. 

under the exemption granted by this Order. 

(2) Each firm seeking relief hereunder 

must represent in writing that it: 

(a) Is located outside the U.S., its territories 

and possessions and, where applicable, has 

subsidiaries or affiliates domiciled in the 

U.S. with a related business (e.g., banks and 

broker/dealer affiliates) along with a brief 

description of each subsidiary’s or affiliate’s 

identity and principal business in the U.S.; 

(b) Consents to jurisdiction in the U.S. 

under the Act by filing a valid and binding 

appointment of an agent in the U.S. for 

service of process in accordance with the 

requirements set forth in Regulation 30.5; 

(c) Agrees to provide access to its books 

and records related to transactions under Part 

30 required to be maintained under the 

applicable statutes and regulations in effect 

in Taiwan upon the request of any 

representative of the Commission or U.S. 

Department of Justice at the place in the U.S. 

designated by such representative, within 72 

hours, or such lesser period of time as 

specified by that representative as may be 

reasonable under the circumstances after 

notice of the request; 

(d) Has no principal or employee who 

solicits or accepts orders from customers 

located in the U.S. who would be 

disqualified under Section 8a(2) of the Act, 

7 U.S.C. § 12a(2), from doing business in the 

U.S.; 

(e) Consents to participate in any NFA 

arbitration program that offers a procedure 

for resolving customer disputes on the papers 

where such disputes involve representations 

or activities with respect to transactions 

under Part 30, and consents to notify 

customers located in the U.S. of the 

availability of such a program; 

(f) Undertakes to comply with the 

applicable provisions of Taiwanese laws and 

TAIFEX regulations that form the basis upon 

which this exemption from certain 

provisions of the Act and Regulations 

thereunder is granted. 

As set forth in the Commission’s 

September 11, 1997 Order delegating to 

NFA certain responsibilities, the written 

representations set forth in paragraph 

(2) shall be filed with NFA.8 Each firm 

seeking relief hereunder has an ongoing 

obligation to notify NFA should there be 

a material change to any of the 

representations required in the firm’s 

application for relief. 

This Order will become effective as to 

any designated TAIFEX firm the later of 

the date of publication of the Order in 

the Federal Register or the filing of the 

consents set forth in paragraphs (2)(a)–

(f). Upon filing of the notice required 

under paragraph (1)(b) as to any such 

firm, the relief granted by this Order 

may be suspended immediately as to 

that firm. That suspension will remain 

in effect pending further notice by the 

Commission, or the Commission’s 

designee, to the firm and TAIFEX. 

This Order is issued pursuant to 

Regulation 30.10 based on the 

representations made and supporting 

material provided to the Commission 


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14416 Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 

1 17 CFR 240.19b–4. 

2 17 CFR 249.819. 

3Securities Exchange Act Release No. 50486, 69 

FR 60287 (October 8, 2004) [File No. S7–18–04]. 

4 17 CFR 232 et seq. 

5 17 CFR 200.30–3, Delegation of authority to the 

Director of Division of Market Regulation. 

6 17 CFR 200.30–1(j) and (k) and 200.30–6(j) and 

(k). 

and the recommendation of the staff, 

and is made effective as to any firm 

granted relief hereunder based upon the 

filings and representations of such firms 

required hereunder. Any material 

changes or omissions in the facts and 

circumstances pursuant to which this 

Order is granted might require the 

Commission to reconsider its finding 

that the standards for relief set forth in 

Regulation 30.10 and, in particular, 

Appendix A, have been met. Further, if 

experience demonstrates that the 

continued effectiveness of this Order in 

general, or with respect to a particular 

firm, would be contrary to public policy 

or the public interest, or that the 

systems in place for the exchange of 

information or other circumstances do 

not warrant continuation of the 

exemptive relief granted herein, the 

Commission may condition, modify, 

suspend, terminate, withhold as to a 

specific firm, or otherwise restrict the 

exemptive relief granted in this Order, 

as appropriate, on its own motion. 

The Commission will continue to 

monitor the implementation of its 

program to exempt firms located in 

jurisdictions generally deemed to have a 

comparable regulatory program from the 

application of certain of the foreign 

futures and option regulations and will 

make necessary adjustments if 

appropriate. 

Issued in Washington, DC on March 23, 

2007. 

Eileen A. Donovan, 

Acting Secretary of the Commission. 

[FR Doc. 07–1521 Filed 3–27–07: 8:45 am) 

BILLING CODE 6351–01–M 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Parts 200 and 232 

[Release No. 34–55502] 

Technical Amendment to Regulation 

S–T 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule; technical 

amendments. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’) is 

amending Regulation S–T to make a 

correction with respect to mandated 

electronic submissions and to include 

persons or entities that submit filings for 

review by the Division of Market 

Regulation as persons or entities that are 

subject to the electronic filing 

requirements of Regulation S–T. The 

amendment will clarify that a filing 

submitted on an electronic filing system 

other than the Electronic Data 

Gathering, Analysis, and Retrieval 

(‘‘EDGAR’’) system is not a mandated 

submission under Regulation S–T and 

will clarify that filers who submit forms 

on EDGAR for review by the Division of 

Market Regulation are subject to the 

requirements of Regulation S–T. The 

Commission is also amending the Rules 

of Organization and Program 

Management to delegate authority to the 

Director of the Division of Market 

Regulation to adjust the filing date of an 

electronic submission and to grant or 

deny a continuing hardship exemption 

from electronic filing under Regulation 

S–T. The amendment will conserve 

Commission resources and will allow 

the Commission to make such 

adjustments and to grant or deny such 

exemptions in a timely manner. 

DATES: Effective Date: April 27, 2007. 

FOR FURTHER INFORMATION CONTACT: Jerry 

Carpenter, Assistant Director, or 

Catherine Moore, Special Counsel, (202) 

551–5710, Division of Market 

Regulation, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–6628. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On October 4, 2004, the Securities 

and Exchange Commission 

(‘‘Commission’’) adopted an amendment 

to Rule 19b–4 1 to require that Form 

19b–4 2 be filed electronically on the 

Commission’s Electronic Form 19b–4 

Filing System (‘‘EFFS’’).3 At the same 

time, the Commission amended Rule 

101(a) of Regulation S–T4 to mandate 

that Form 19b–4 be submitted to the 

Commission in electronic format and 

amended Rule 101(c)(9) of Regulation 

S–T to except Form 19b–4 from the 

requirement that filings submitted to the 

Division of Market Regulation be 

submitted in paper format. However, 

Regulation S–T only applies to 

electronic filings that are submitted on 

EDGAR, and Form 19b–4 is not 

submitted through EDGAR. As a result, 

Rules 101(a) and 101(c)(9) of Regulation 

S–T should not have been amended 

with respect to Form 19b–4. The 

Commission is making a technical 

amendment to remove the reference to 

Form 19b–4 in Rule 101(a) and to revise 

Rule 101(c)(9) to clarify that forms 

submitted for review by the Division of 

Market Regulation electronically, 

whether on EDGAR or on another 

electronic filing system such as EFFS, 

do not have to be submitted in paper 

format. 

Additionally, the Commission is 

making a technical amendment to Rule 

100 of Regulation S–T to include 

persons or entities that submit filings for 

review by the Division of Market 

Regulation as persons and entities that 

are subject to the electronic filing 

requirements of Regulation S–T. 

Because the EDGAR system was initially 

designed for the electronic submission 

of documents that are subject to review 

by the Divisions of Corporation Finance 

and Investment Management, Rule 100 

currently only applies to registrants 

whose filings are submitted for review 

by those divisions and to such 

registrant’s joint or third party filers. To 

reflect the fact that the Commission has 

recently added Forms 25, TA–1, TA–2, 

and TA–W, which are submitted for 

review by the Division of Market 

Regulation, to the list of mandated 

electronic filings in Section 101(a) of 

Regulation S–T, the Commission is 

amending Rule 100 to include the filers 

of any other forms that are submitted 

through EDGAR for review by the 

Division of Market Regulation as 

persons or entities that are subject to the 

electronic filing requirements of 

Regulation S–T. 

The Commission is amending Rule 

30–3 of the Rules of Organization and 

Program Management 5 to add new 

paragraphs (j) and (k) to delegate to the 

Director of the Division of Market 

Regulation authority to grant or deny a 

request submitted under Regulation S–

T to adjust the filing date of an 

electronic filing and to grant or deny, as 

appropriate, a continuing hardship 

exemption to an electronic filer under 

Rule 202 of Regulation S–T. The 

delegation of authority to the Director of 

the Division of Market Regulation is 

designed to conserve Commission 

resources by permitting staff to adjust 

the filing date of an electronic filing and 

to grant or to deny exemptions where 

appropriate and in a timely manner. 

Nevertheless, the staff may submit 

matters to the Commission for 

consideration, as it deems appropriate. 

The Directors of the Divisions of 

Corporation Finance and of Investment 

Management have previously been 

delegated such authority.6

II. Certain Findings 

Under the Administrative Procedure 

Act (‘‘APA’’), notice of proposed 


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