Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices 55833 

1 15 U.S.C. 78q(d). 

2 17 CFR 240.17d–2. 

3See Securities Exchange Act Release No. 62657 

(August 5, 2010), 75 FR 49005 (August 12, 2010). 

4 15 U.S.C. 78s(g)(1). 

5 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2), 

respectively. 

6 15 U.S.C. 78q(d)(1). 

7See Securities Act Amendments of 1975, Report 

of the Senate Committee on Banking, Housing, and 

Urban Affairs to Accompany S. 249, S. Rep. No. 

94–75, 94th Cong., 1st Session 32 (1975). 

Physical Loan Application Deadline 

Date: 10/12/2010. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 05/11/2011. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of 

WISCONSIN, dated 08/11/2010, is 

hereby amended to include the 

following areas as adversely affected by 

the disaster. 

Primary Counties: Calumet. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

James E. Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2010–22912 Filed 9–13–10; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #12303 and #12304] 

Tennessee Disaster #TN–00042 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of Tennessee dated 09/07/ 

2010. 

Incident: Severe Storms and Flooding. 

Incident Period: 08/16/2010. 

DATES: Effective Date: 09/07/2010. 

Physical Loan Application Deadline 

Date: 11/08/2010. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 06/07/2011. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Putnam. 

Contiguous Counties: 

Tennessee: Cumberland, Dekalb, 

Fentress, Jackson, Overton, Smith, 

White. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Homeowners With Credit Available Elsewhere ...................... 5.000 

Homeowners Without Credit 

Available Elsewhere .............. 2.500 

Businesses With Credit Available Elsewhere ...................... 6.000 

Businesses Without Credit 

Available Elsewhere .............. 4.000 

Non-Profit Organizations With 

Credit Available Elsewhere ... 3.625 

Non-Profit Organizations Without Credit Available Elsewhere ..................................... 3.000 

For Economic Injury: 

Businesses & Small Agricultural 

Cooperatives Without Credit 

Available Elsewhere .............. 4.000 

Non-Profit Organizations Without 

Credit Available Elsewhere 3.000. 

The number assigned to this disaster 

for physical damage is 12303 B and for 

economic injury is 123040. 

The States which received an EIDL 

Declaration # are Tennessee. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

Dated: September 7, 2010. 

Karen G. Mills, 

Administrator. 

[FR Doc. 2010–22914 Filed 9–13–10; 8:45 am] 

BILLING CODE 8025–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62866; File No. 4–274] 

Program for Allocation of Regulatory 

Responsibilities Pursuant to Rule 17d– 

2; Order Approving and Declaring 

Effective a Plan for the Allocation of 

Regulatory Responsibilities Between 

the Financial Industry Regulatory 

Authority, Inc. and the Chicago Stock 

Exchange, Inc. 

September 8, 2010. 

On July 21, 2010, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) and the Chicago Stock 

Exchange, Inc. (‘‘CHX’’) (together with 

FINRA, the ‘‘Parties’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’ or ‘‘SEC’’), pursuant to 

Section 17(d) of the Securities Exchange 

Act of 1934 (‘‘Act’’),1 and Rule 17d–2 

thereunder,2 an amendment to their 

September 16, 1977 Agreement Between 

the National Association of Securities 

Dealers, Inc. (n/k/a FINRA) and the 

Midwest Stock Exchange Incorporated 

(n/k/a CHX) (‘‘17d–2 Plan’’ or the ‘‘Plan’’) 

for the allocation of regulatory 

responsibilities. The proposed amended 

Plan was published for comment on 

August 12, 2010.3 The Commission 

received no comments on the amended 

Plan. This order approves and declares 

effective the amended Plan. 

I. Introduction 

Section 19(g)(1) of the Act,4 among 

other things, requires every selfregulatory organization (‘‘SRO’’) 

registered as either a national securities 

exchange or national securities 

association to examine for, and enforce 

compliance by, its members and persons 

associated with its members with the 

Act, the rules and regulations 

thereunder, and the SRO’s own rules, 

unless the SRO is relieved of this 

responsibility pursuant to Section 17(d) 

or Section 19(g)(2) of the Act.5 Without 

this relief, the statutory obligation of 

each individual SRO could result in a 

pattern of multiple examinations of 

broker-dealers that maintain 

memberships in more than one SRO 

(‘‘common members’’). Such regulatory 

duplication would add unnecessary 

expenses for common members and 

their SROs. 

Section 17(d)(1) of the Act 6 was 

intended, in part, to eliminate 

unnecessary multiple examinations and 

regulatory duplication.7 With respect to 

a common member, Section 17(d)(1) 

authorizes the Commission, by rule or 

order, to relieve an SRO of the 

responsibility to receive regulatory 

reports, to examine for and enforce 

compliance with applicable statutes, 

rules, and regulations, or to perform 

other specified regulatory functions. 

To implement Section 17(d)(1), the 

Commission adopted two rules: Rule 


jlentini on DSKJ8SOYB1PROD with NOTICES
55834 Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices 

8 17 CFR 240.17d–1 and 17 CFR 240.17d–2, 

respectively. 

9See Securities Exchange Act Release No. 12352 

(April 20, 1976), 41 FR 18808 (May 7, 1976). 

10See Securities Exchange Act Release No. 12935 

(October 28, 1976), 41 FR 49091 (November 8, 

1976). 

11See Securities Exchange Act Release No. 15191 

(September 26, 1978), 43 FR 46093 (October 5, 

1978). 

12See Securities Exchange Act Release No. 16591 

(February 20, 1980), 45 FR 12573 (February 26, 

1980). 

13See Securities Exchange Act Release No. 16858 

(May 30, 1980), 45 FR 37927 (June 5, 1980). 

14The proposed 17d–2 Plan refers to these 

members as ‘‘Dual Members.’’ See Paragraph 1(c) of 

the proposed 17d–2 Plan. 

15See paragraph 1(b) of the proposed 17d–2 Plan 

(defining Common Rules). See also paragraph 1(f) 

of the proposed 17d–2 Plan (defining Regulatory 

Responsibilities). 

16See Securities Exchange Act Release No. 61919 

(April 15, 2010), 75 FR 21051 (April 22, 2010) (File 

No. 4–566) (notice of filing and order approving and 

declaring effective the plan). 

17See paragraph 6 of the proposed 17d–2 Plan. 

18See paragraph 2 of the proposed 17d–2 Plan. 

19 15 U.S.C. 78q(d). 

20 17 CFR 240.17d–2(c). 

17d–1 and Rule 17d–2 under the Act.8

Rule 17d–1 authorizes the Commission 

to name a single SRO as the designated 

examining authority (‘‘DEA’’) to examine 

common members for compliance with 

the financial responsibility 

requirements imposed by the Act, or by 

Commission or SRO rules.9 When an 

SRO has been named as a common 

member’s DEA, all other SROs to which 

the common member belongs are 

relieved of the responsibility to examine 

the firm for compliance with the 

applicable financial responsibility rules. 

On its face, Rule 17d–1 deals only with 

an SRO’s obligations to enforce member 

compliance with financial responsibility 

requirements. Rule 17d–1 does not 

relieve an SRO from its obligation to 

examine a common member for 

compliance with its own rules and 

provisions of the federal securities laws 

governing matters other than financial 

responsibility, including sales practices 

and trading activities and practices. 

To address regulatory duplication in 

these and other areas, the Commission 

adopted Rule 17d–2 under the Act.10

Rule 17d–2 permits SROs to propose 

joint plans for the allocation of 

regulatory responsibilities with respect 

to their common members. Under 

paragraph (c) of Rule 17d–2, the 

Commission may declare such a plan 

effective if, after providing for 

appropriate notice and comment, it 

determines that the plan is necessary or 

appropriate in the public interest and 

for the protection of investors; to foster 

cooperation and coordination among the 

SROs; to remove impediments to, and 

foster the development of, a national 

market system and a national clearance 

and settlement system; and is in 

conformity with the factors set forth in 

Section 17(d) of the Act. Commission 

approval of a plan filed pursuant to Rule 

17d–2 relieves an SRO of those 

regulatory responsibilities allocated by 

the plan to another SRO. 

II. The Plan 

On September 26, 1978, the 

Commission approved the Plan 

allocating regulatory responsibilities 

pursuant to Rule 17d–2 on a provisional 

basis.11 Under the Plan, FINRA was 

responsible, in part, for conducting onsite examinations of each dual member 

for which it was the DEA. On February 

20, 1980, the Commission noticed for 

comment an amendment to the Plan, 

which provided, in part, for the 

handling of customer complaints, the 

review of dual members’ advertising, 

and the arbitration of disputes under the 

Plan.12 On May 30, 1980, the 

Commission approved the Plan, as 

amended.13

III. Proposed Amendment to the Plan 

The proposed 17d–2 Plan is intended 

to reduce regulatory duplication for 

firms that are common members 14 of 

both CHX and FINRA. Pursuant to the 

proposed 17d–2 Plan, FINRA would 

assume certain examination and 

enforcement responsibilities for 

common members with respect to 

certain applicable laws, rules, and 

regulations. The amended agreement 

would replace the previous Plan in its 

entirety. 

The text of the proposed Plan 

delineates the proposed regulatory 

responsibilities with respect to the 

Parties. Included in the proposed Plan 

is an exhibit (the ‘‘CHX Certification of 

Common Rules’’ referred to herein as the 

‘‘Certification’’) that lists every CHX 

rule, and select federal securities laws, 

rules, and regulations, for which FINRA 

would bear responsibility under the 

proposed Plan for examining and 

enforcing with respect to CHX members 

that are also members of FINRA and the 

associated persons therewith (‘‘Dual 

Members’’). 

Specifically, under the proposed 17d– 

2 Plan, FINRA would assume 

examination and enforcement 

responsibility relating to compliance by 

Dual Members with the rules of CHX 

that are substantially similar to the 

applicable rules of FINRA, as well as 

certain provisions of the federal 

securities laws and the rules and 

regulations thereunder delineated in the 

Certification (‘‘Common Rules’’).15

Common Rules would not include the 

application of any CHX rule or FINRA 

rule, or any rule or regulation under the 

Act, to the extent that it pertains to 

violations of insider trading activities, 

because such matters are covered by a 

separate multiparty agreement pursuant 

to Rule 17d–2.16 In the event that a Dual 

Member is the subject of an 

investigation relating to a transaction on 

CHX, the plan acknowledges that CHX 

may, in its discretion, exercise 

concurrent jurisdiction and 

responsibility for such matter.17

Under the proposed Plan, CHX would 

retain full responsibility for 

surveillance, examination, investigation, 

and enforcement with respect to trading 

activities or practices involving CHX’s 

own marketplace; registration pursuant 

to its applicable rules of associated 

persons (i.e., registration rules that are 

not Common Rules); its duties and 

obligations as a DEA pursuant to Rule 

17d–1 under the Act; and any CHX rules 

that are not Common Rules.18

IV. Discussion 

The Commission finds that the 

proposed Plan is consistent with the 

factors set forth in Section 17(d) of the 

Act 19 and Rule 17d–2(c) thereunder 20

in that the proposed Plan is necessary 

or appropriate in the public interest and 

for the protection of investors, fosters 

cooperation and coordination among 

SROs, and removes impediments to and 

fosters the development of the national 

market system. In particular, the 

Commission believes that the proposed 

Plan should reduce unnecessary 

regulatory duplication by allocating to 

FINRA certain examination and 

enforcement responsibilities for Dual 

Members that would otherwise be 

performed by both CHX and FINRA. 

Accordingly, the proposed Plan 

promotes efficiency by reducing costs to 

Dual Members. Furthermore, because 

CHX and FINRA will coordinate their 

regulatory functions in accordance with 

the proposed Plan, the Plan should 

promote investor protection. 

The Commission notes that, under the 

proposed Plan, CHX and FINRA have 

allocated regulatory responsibility for 

those CHX rules, set forth on the 

Certification, that are substantially 

similar to the applicable FINRA rules in 

that examination for compliance with 

such provisions and rules would not 

require FINRA to develop one or more 

new examination standards, modules, 

procedures, or criteria in order to 

analyze the application of the rule, or a 

Dual Member’s activity, conduct, or 

output in relation to such rule. In 

addition, under the proposed Plan, 


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Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices 55835 

21See paragraph 2 of the proposed 17d–2 Plan. 

22See paragraph 3 of the proposed 17d–2 Plan. 

23The Commission also notes that the addition to 

or deletion from the Certification of any federal 

securities laws, rules, and regulations for which 

FINRA would bear responsibility under the Plan for 

examining, and enforcing compliance by, Dual 

Members, also would constitute an amendment to 

the Plan. 

24See paragraph 12 of the proposed 17d–2 Plan. 

25The Commission notes that paragraph 12 of the 

Plan reflects the fact that FINRA’s responsibilities 

under the Plan will continue in effect until the 

Commission approves any termination of the Plan. 

26 17 CFR 200.30–3(a)(34). 

FINRA would assume regulatory 

responsibility for certain provisions of 

the federal securities laws and the rules 

and regulations thereunder that are set 

forth in the Certification. The Common 

Rules covered by the proposed Plan are 

specifically listed in the Certification, as 

may be amended by the Parties from 

time to time pursuant to the terms and 

conditions specified in the Plan. 

According to the proposed Plan, CHX 

will review the Certification, at least 

annually, or more frequently if required 

by changes in either the rules of CHX or 

FINRA, and, if necessary, submit to 

FINRA an updated list of Common 

Rules to add CHX rules not included on 

the then-current list of Common Rules 

that are substantially similar to FINRA 

rules; delete CHX rules included in the 

then-current list of Common Rules that 

are no longer substantially similar to 

FINRA rules; and confirm that the 

remaining rules on the list of Common 

Rules continue to be CHX rules that are 

substantially similar to FINRA rules.21

FINRA will then confirm in writing 

whether the rules listed in any updated 

list are Common Rules as defined in the 

proposed Plan. Under the proposed 

Plan, CHX will also provide FINRA with 

a current list of Dual Members and shall 

update the list no less frequently than 

once each quarter.22

Under the proposed Plan, CHX would 

retain full responsibility for 

surveillance, examination, investigation, 

and enforcement with respect to trading 

activities or practices involving CHX’s 

own marketplace; registration pursuant 

to its applicable rules of associated 

persons (i.e., registration rules that are 

not Common Rules); its duties as a DEA 

pursuant to Rule 17d–1 under the Act; 

and any CHX rules that are not Common 

Rules. 

The Commission is hereby declaring 

effective a plan that, among other 

things, allocates regulatory 

responsibility to FINRA for the 

oversight and enforcement of CHX rules 

that are substantially similar to the rules 

of FINRA for Dual Members of CHX and 

FINRA. Therefore, modifications to the 

Certification need not be filed with the 

Commission as an amendment to the 

Plan, provided that the Parties are only 

adding to, deleting from, or confirming 

changes to CHX rules in the 

Certification in conformance with the 

definition of Common Rules provided in 

the Plan. However, should the Parties 

decide to add a CHX rule to the 

Certification that is not substantially 

similar to a FINRA rule; delete a CHX 

rule from the Certification that is 

substantially similar to a FINRA rule; or 

leave on the Certification a CHX rule 

that is no longer substantially similar to 

a FINRA rule, then such a change would 

constitute an amendment to the Plan, 

which must be filed with the 

Commission pursuant to Rule 17d–2 

under the Act.23

The Plan also permits CHX and 

FINRA to terminate the Plan, subject to 

notice.24 The Commission notes, 

however, that while the Plan permits 

the Parties to terminate the Plan, the 

Parties cannot by themselves reallocate 

the regulatory responsibilities set forth 

in the Plan, since Rule 17d–2 under the 

Act requires that any allocation or reallocation of regulatory responsibilities 

be filed with the Commission.25

IV. Conclusion 

This Order gives effect to the Plan 

filed with the Commission in File No. 

4–274. The Parties shall notify all 

members affected by the Plan of their 

rights and obligations under the Plan. 

It is therefore ordered, pursuant to 

Section 17(d) of the Act, that the Plan 

in File No. 4–274, between FINRA and 

CHX, filed pursuant to Rule 17d–2 

under the Act, is approved and declared 

effective. 

It is therefore ordered that CHX is 

relieved of those responsibilities 

allocated to FINRA under the Plan in 

File No. 4–274. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–22837 Filed 9–13–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold an Open Meeting 

on September 17, 2010 at 10 a.m., in the 

Auditorium, Room L–002. 

The subject matter of the Open 

Meeting will be: 

The Commission will consider whether to 

propose rules that would require a public 

company to provide certain disclosures about 

its short-term borrowings in its filings with 

the Commission. The Commission will also 

consider whether to publish an interpretive 

release to provide guidance regarding the 

Commission’s current disclosure 

requirements in ‘‘Management’s Discussion 

and Analysis of Financial Condition and 

Results of Operations’’ relating to liquidity 

and capital resources. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: September 10, 2010. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–22949 Filed 9–10–10; 11:15 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act; Notice of Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, September 16, 2010 at 3 

p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matters at the Closed 

Meeting. 

Commissioner Paredes, as duty 

officer, voted to consider the items 

listed for the Closed Meeting in a closed 

session. 

The subject matter of the Closed 

Meeting scheduled for Thursday, 

September 16, 2010 will be: 

Institution and settlement of injunctive 

actions; 

Institution and settlement of 

administrative proceedings; an 

opinion; and 


jlentini on DSKJ8SOYB1PROD with NOTICES