Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices 1431 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its intent to file the proposed rule change, 

along with a brief description and text of the 

proposed rule change, at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange satisfied this 

requirement. 

14 Id. 

15For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(7). 

2 17 CFR 240.19b–7. 

3On December 31, 2009, NFA filed an update to 

the proposed rule change to indicate that the CFTC, 

by letter dated December 28, 2009, advised NFA 

that the CFTC had determined not to review the 

proposal and that NFA was permitted to make the 

proposal effective as of December 28, 2009. 

days after the date of the filing, or such 

shorter time as the Commission may 

designate if consistent with the 

protection of investors and the public 

interest, the proposed rule change has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.13 However, Rule 19b– 

4(f)(6)(iii) 14 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. ISE 

has requested that the Commission 

waive the 30-day operative delay. The 

Commission notes that waiver of the 

operative delay will permit the pilot to 

continue until January 31, 2010 without 

further delay, and will provide all 

market participants with the 

opportunity to receive ISE’s broadcast 

message with information about the 

terms of new AON orders. The 

Commission also notes that no 

comments were received to date on the 

existing pilot. For these reasons, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest, and designates the 

proposed rule change to be operative 

upon filing with the Commission.15

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

No. SR–ISE–2009–112 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File No. 

SR–ISE–2009–112. This file number 

should be included on the subject line 

if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of such filing also will be 

available for inspection and copying at 

the principal office of ISE. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File No. 

SR–ISE–2009–112 and should be 

submitted on or before February 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–239 Filed 1–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61284; File No. SR–NFA– 

2009–02] 

Self-Regulatory Organizations; 

National Futures Association; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Change to the 

Interpretive Notice Regarding Security 

Futures Products Proficiency Training 

January 4, 2010. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–7 under the Act 2

notice is hereby given that on December 

11, 2009, National Futures Association 

(‘‘NFA’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. NFA 

concurrently filed the proposed rule 

change with the Commodity Futures 

Trading Commission (‘‘CFTC’’).3

I. Self-Regulatory Organization’s 

Description of the Proposed Rule 

Change 

The amendments to the Interpretive 

Notice titled ‘‘NFA Compliance Rules 2– 

7 and 2–24 and Registration Rule 401: 

Proficiency Requirements for Security 

Futures Products’’ extend the relief from 

having to take a proficiency exam to 

engage in security futures activities from 

December 31, 2009 to December 31, 

2012. 

A copy of this filing is available on 

the Exchange’s Web site at http:// 

www.nfa.futures.org, on the 

Commission’s Web site at http:// 

www.sec.gov, the Exchange’s principal 

office and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 


srobinson on DSKHWCL6B1PROD with NOTICES
1432 Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices 

4 15 U.S.C. 78o–3(k). 

5 15 U.S.C. 78o(b)(11). 

6Section 15A(k)(2)(D) of the Exchange Act. 

7FINRA recently amended its rules to incorporate 

the same three-year extension. See Securities 

Exchange Act Release. No. 61231 (December 23, 

2009), 74 FR 691731 (December 30, 2009) (SR– 

FINRA–2009–092). 

8 15 U.S.C. 78o–3(k)(2)(D). 

9 15 U.S.C. 78s(b)(1). 10 17 CFR 200.30–3(a)(12). 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

NFA has prepared summaries, set forth 

in sections A, B, and C below, of the 

most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Section 15A(k) of the Act 4 makes 

NFA a national securities association for 

the limited purpose of regulating the 

activities of NFA Members (‘‘Members’’) 

who are registered as brokers or dealers 

under Section 15(b)(11) of the Act.5

The Commodity Futures 

Modernization Act of 2000 amended the 

Securities Exchange Act of 1934 to 

require NFA to ‘‘have rules that ensure 

that members and natural persons 

associated with members meet such 

standards of training, experience, and 

competence necessary to effect 

transactions in security futures products 

(‘‘SFPs’’) and are tested for their 

knowledge of securities and securities 

futures products.’’ 6 In 2001 NFA and 

FINRA (then NASD) adopted temporary 

relief allowing registrants to qualify to 

engage in security futures activities by 

completing a training program rather 

than by taking an exam. The relief was 

extended twice and is currently set to 

expire on December 31, 2009. 

At its November 19, 2009 meeting, the 

Board approved amendments to the 

Interpretive Notice regarding 

proficiency requirements for security 

futures products. At that meeting, the 

Board also gave the Executive 

Committee authority to make any 

changes requested by the CFTC or the 

SEC. The CFTC and SEC have asked that 

the proposal adopted by the Board be 

modified and the Executive Committee 

has approved the modified proposal. 

NFA and FINRA proposed the two 

prior extensions, and the CFTC and SEC 

agreed to them, because of the low 

trading volume in SFPs and the 

relatively few registrants engaging in 

security futures activities. These 

characteristics continue to make the 

imposition of a qualifications exam an 

inefficient option today. Accordingly, 

the proposal revises the Interpretive 

Notice to extend the relief from having 

to take an exam from December 31, 2009 

to December 31, 2012.7

Amendments to the Interpretive 

Notice regarding Security Futures 

Products Proficiency Training were 

previously filed in SR–NFA–2002–04, 

SR–NFA–2003–03, SR–NFA–2006–04 

and SR–NFA–2007–07. 

2. Statutory Basis 

The rule change is authorized by, and 

consistent with, Section 15A(k)(2)(D) of 

the Act.8 That Section requires NFA to 

‘‘have rules that ensure that members 

and natural persons associated with 

members meet such standards of 

training, experience, and competence 

necessary to effect transactions in SFPs 

and are tested for their knowledge of 

securities and securities futures 

products.’’ Although the proposal 

extends relief from having to take an 

exam to engage in security futures 

activities, it still requires that training 

be completed before entering into such 

activities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NFA does not believe that the 

proposed rule change will have an 

impact on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Comments on the NFA proposed rule 

change have not been solicited and none 

have been received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change will 

become effective on December 28, 2009. 

At any time within 60 days of the date 

of effectiveness of the proposed rule 

change, the Commission, after 

consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refilled in accordance 

with the provisions of Section 19(b)(1) 

of the Act.9

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NFA–2009–02 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NFA–2009–02. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of the filing also will be available 

for inspection and copying at the 

principal office of the Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NFA–2009–02 and should 

be submitted on or before February 1, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–238 Filed 1–8–10; 8:45 am] 

BILLING CODE 8011–01–P 


srobinson on DSKHWCL6B1PROD with NOTICES