62466 Federal Register / Vol. 75, No. 196 / Tuesday, October 12, 2010 / Rules and Regulations 

1 Dodd-Frank Wall Street Reform and Consumer 

Protection Act, Pub. L. 111–203, 124 Stat. 1376 

(2010). 

2Section 19(b)(2)(C), 15 U.S.C. 78s(b)(2)(C), 

provides the standards for Commission approval 

and disapproval of a proposed rule change. Under 

this paragraph, the Commission shall approve a 

proposed rule change if it finds that such proposed 

rule change is consistent with the requirements of 

the Exchange Act and the rules and regulations 

issued thereunder that are applicable to the selfregulatory organization, and the Commission shall 

disapprove a proposal if it does not make such 

finding. Additionally, this paragraph provides that 

the Commission may not approve a proposed rule 

change earlier than 30 days after the date of 

publication unless the Commission finds good 

cause for so doing and publishes the reason for the 

finding. 

3Section 19(b)(3)(C) provides that if the 

Commission temporarily suspends the change in 

the rules of a SRO, it shall ‘‘institute proceedings 

under paragraph (2)(B) to determine whether the 

proposed rule should be approved or disapproved.’’ 

The Commission is amending Rule 30–3(a)(57), 

which presently delegates authority to the Director 

of the Division to institute such proceedings, to 

clarify its applicability to all references to such 

proceedings contained in amended Sections 

19(b)(2) and 19(b)(3) of the Exchange Act. 

Dated: October 4, 2010. 

Matthew S. Borman, 

Deputy Assistant Secretary for Export 

Administration. 

[FR Doc. 2010–25438 Filed 10–8–10; 8:45 am] 

BILLING CODE 3510–33–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 200 

[Release No. 34–63049] 

Delegation of Authority to the Director 

of the Division of Trading and Markets 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’) is 

amending its rules to delegate authority 

to the Director of the Division of 

Trading and Markets (‘‘Division’’) to 

disapprove a proposed rule change 

pursuant to Section 19(b) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’); to temporarily 

suspend a proposed rule change of a 

self-regulatory organization (‘‘SRO’’); to 

notify an SRO 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 SRO 

of such determination. In addition, the 

Commission is amending its rules to 

delegate authority to the Director of the 

Division (‘‘Director’’) to determine the 

appropriateness of extending the time 

periods specified in Section 19(b) and 

publish the reasons for such 

determination as well as to effect any 

such extension; to update the references 

to proceedings to determine whether to 

disapprove a proposal and to provide to 

the SRO notice of the grounds for 

disapproval under consideration; to find 

good cause to approve a proposal on an 

accelerated basis and to publish the 

reasons for such determination; and to 

extend the period for consideration of a 

national market system plan or an 

amendment to such plan. This 

delegation is intended to conserve 

Commission resources and to increase 

the effectiveness and efficiency of the 

Commission’s SRO rule filing process. 

DATES: Effective Date: October 12, 2010 

FOR FURTHER INFORMATION CONTACT: 

Richard Holley III, Assistant Director, at 

(202) 551–5614, Kristie Diemer, Special 

Counsel, at (202) 551–5613, and Arisa 

Tinaves, Special Counsel, at (202) 551– 

5676, Division of Trading and Markets, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–7010. 

SUPPLEMENTARY INFORMATION: The DoddFrank Wall Street Reform and Consumer 

Protection Act 1 amended Section 19 of 

the Exchange Act, 15 U.S.C. 78s(b)(2), so 

that there are new deadlines by which 

the Commission must publish and act 

upon proposed rule changes submitted 

by SROs. In recognition of the 

amendments to Section 19, the 

Commission is amending its rules 

governing delegations of authority to the 

Director of the Division. The 

amendments to Rule 30–3 (17 CFR 

200.30–3) authorize the Director of the 

Division: (1) To disapprove an SRO 

proposed rule change pursuant to 

Section 19(b)(2) of the Exchange Act, 15 

U.S.C. 78s(b)(2), 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 

Division 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; 2 (2) 

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 a 

SRO should be disapproved and to 

provide to the SRO notice of the 

grounds for disapproval under 

consideration, and, in addition, if the 

Commission has not taken action on a 

proposal for which delegated authority 

has been withdrawn under 

subparagraph (12) prior to the 

expiration of the applicable time period 

specified in Section 19(b)(2), 15 U.S.C. 

78s(b)(2), to require the Director to 

institute proceedings to determine 

whether the proposed rule change 

should be disapproved; (3) pursuant to 

new Section 19(b)(10) of the Exchange 

Act, 15 U.S.C. 78s(b)(10), to (a) notify an 

SRO 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 (b) 

determine that a proposed rule change 

is unusually lengthy and complex or 

raises novel regulatory issues and to 

inform the SRO of such determination; 

(4) pursuant to Section 19(b)(2)(A) of the 

Exchange 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 the period during which the 

Commission must by order disapprove 

the proposed rule change; (5) pursuant 

to Section 19(b)(2)(A) of the Exchange 

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

the appropriateness of extending the 

period during which the Commission 

must by order approve or disapprove a 

proposed rule change or institute 

proceedings to determine whether to 

disapprove the proposal and publish the 

reasons for such determination; (6) 

pursuant to Section 19(b)(2)(B) of the 

Exchange 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 the period during which the 

Commission must conclude proceedings 

to determine whether to disapprove the 

proposal and to determine whether such 

longer period is appropriate and publish 

the reasons for such determination; (7) 

to temporarily suspend an SRO’s 

proposed rule change pursuant to 

Section 19(b)(3)(C) of the Exchange Act, 

15 U.S.C. 78s(b)(3)(C); (8) to update the 

references to proceedings to determine 

whether to disapprove a proposal and to 

provide to the SRO notice of the 

grounds for disapproval under 

consideration; 3 and (9) to find good 

cause to approve a proposal on an 

accelerated basis and to publish the 

reasons for such determination. In 

addition, the Commission is amending 

Rule 30–3(a)(42) to authorize the 

Director, pursuant to rule 608(b), 17 

CFR 242.608(b), to extend for a period 


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Federal Register / Vol. 75, No. 196 / Tuesday, October 12, 2010 / Rules and Regulations 62467 

not exceeding 180 days from the date of 

publication of notice of the filing of a 

proposed national market system plan 

or an amendment to an effective 

national market system plan the time for 

Commission consideration of such plan 

or amendment. 

Finally, the Commission is amending 

Rule 30–3(a)(12) to remove obsolete 

references to a former compliance 

deadline that is now inconsistent with 

the amendments to Section 19 of the 

Exchange Act since the former provision 

included a 15 business day deadline 

that is incompatible with the new 15 

calendar day deadline to send the notice 

to the Federal Register for publication 

from the date on which the SRO 

publishes the notice of the filing 

contained in revised Section 19(b)(2)(E). 

This delegation is intended to 

conserve Commission resources and 

increase the effectiveness and efficiency 

of the Commission’s process for 

handling proposed rule changes 

submitted by SROs. The Commission 

anticipates that the delegation of 

authority will help facilitate timely 

compliance with the amendments to 

Section 19 of the Exchange Act and the 

new statutory deadlines prescribed 

therein. Nevertheless, the Division may 

submit matters to the Commission for its 

consideration, as it deems appropriate. 

The Commission finds, in accordance 

with the Administrative Procedure Act 

(5 U.S.C. 553(b)(3)(A)), that these 

amendments relate solely to agency 

organization, procedures, or practices, 

and do not relate to a substantive rule. 

Accordingly, notice, opportunity for 

public comment, and publication of the 

amendments prior to their effective date 

are unnecessary and these changes are 

effective on October 12, 2010. 

List of Subjects in 17 CFR Part 200 

Administrative practice and 

procedure, Authority delegations 

(Government agencies). 

Text of Amendment 

■ For the reasons set out in the 

preamble, title 17, chapter II of the Code 

of Federal Regulations is amended as 

follows: 

PART 200—ORGANIZATION; 

CONDUCT AND ETHICS; AND 

INFORMATION AND REQUESTS 

■ 1. The authority citation for part 200, 

subpart A, continues to read in part as 

follows: 

Authority: 15 U.S.C. 77o, 77s, 77sss, 77d, 

78d–1, 78d–2, 78w, 78ll(d), 78mm, 80a–37, 

80b–11, and 7202, unless otherwise noted. 

* * * * * 

■ 2. Section 200.30–3 is amended by: 

■ a. Revising paragraphs (a)(12) and 

(a)(31); 

■ b. In paragraph (a)(42), at the end 

remove the period and in its place add 

‘‘, and pursuant to 17 CFR 242.608(b) to 

extend for a period not exceeding 180 

days from the date of publication of 

notice of filing of a national market 

system plan or an amendment to an 

effective national market system plan 

the time for Commission consideration 

of the national market system plan or 

the amendment to an effective national 

market system plan and to determine 

whether such longer period is 

appropriate and publish the reasons for 

such determination.’’; 

■ c. Revising paragraph (a)(57); and 

■ d. Adding paragraph (a)(58). 

The revisions and addition read as 

follows: 

§ 200.30–3 Delegation of authority to 

Director of Division of Trading and Markets. 

* * * * * 

(a) * * * 

(12) 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 publish 

notices of proposed rule changes filed 

by self-regulatory organizations 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 Division 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 a self-regulatory 

organization 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 selfregulatory organization of such 

determination. 

* * * * * 

(31) 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 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. 

* * * * * 

(57) 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 a 

self-regulatory organization should be 

disapproved and to provide to the selfregulatory organization 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. 

(58) 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 a self-regulatory organization. 

* * * * * 

Dated: October 6, 2010. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–25642 Filed 10–8–10; 8:45 am] 

BILLING CODE 8011–01–P 


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