[Federal Register Volume 66, Number 38 (Monday, February 26, 2001)]
[Rules and Regulations]
[Page 11536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-4648]



[[Page 11536]]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Rel. No. 34-43985]


Delegation of Authority to the Director of the Division of Market 
Regulation

AGENCY: Securities and Exchange Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Securities and Exchange Commission is amending its rules 
to delegate authority to the Director of the Division of Market 
Regulation to grant or deny exemptions from the provisions of the 
Execution Quality Disclosure Rules (Rule 11Ac1-5 and Rule 11Ac1-6 under 
the Securities Exchange Act of 1934). This delegation will facilitate 
the timely implementation of the Execution Quality Disclosure Rules.

EFFECTIVE DATE: February 26, 2001.

FOR FURTHER INFORMATION CONTACT: Susie Cho, Attorney at (202) 942-9748, 
Office of Market Supervision, Division of Market Regulation, Securities 
and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-
1001.

SUPPLEMENTARY INFORMATION: The Securities and Exchange Commission 
(``Commission'') has adopted an amendment to Rule 30-3 of its Rules of 
Organization and Program Management governing Delegations of Authority 
to the Director of the Division of Market Regulation (``Director'').\1\ 
The amendment adds new paragraph (a)(69) and new paragraph (a)(70) to 
Rule 30-3 authorizing the Director to grant or deny exemptions from the 
provisions of, respectively, Rule 11Ac1-5 \2\ and Rule 11Ac1-6.\3\
---------------------------------------------------------------------------

    \1\ 17 CFR 200.30-3.
    \2\ 17 CFR 240.11Ac1-5.
    \3\ 17 CFR 240.11Ac1-6.
---------------------------------------------------------------------------

    Under Rule 11Ac1-5, market centers that trade national market 
system securities are required to make available to the public monthly 
electronic reports that include uniform statistical measure of 
execution quality. Under Rule 11Ac1-6, broker-dealers that route 
customer orders in equity and option securities are required, among 
other things, to make publicly available quarterly reports that 
identify the venues to which customer orders are routed for execution. 
Paragraph (c) of Rule 11Ac1-5 and paragraph (d) of Rule 11Ac1-6 provide 
that the Commission may, by order upon application, conditionally or 
unconditionally exempt any person, security, or transaction, or any 
class of persons, securities, or transactions, from any provision or 
provisions of the respective rules, if the Commission determines that 
such exemption is necessary or appropriate in the public interest, and 
is consistent with the protection of investors.
    The delegation of authority to the Director is intended to conserve 
Commission resources by permitting Division staff to grant or deny 
exemptions, where appropriate and in a timely manner, from the 
provisions of Rule 11Ac1-5 and Rule 11Ac1-6. The Commission anticipates 
that the delegation of authority will facilitate the timely 
implementation of the rules, particularly Rule 11Ac1-5, whose initial 
compliance date is April 2, 2001. Nevertheless, the staff may submit 
matters to the Commission for consideration as it deems appropriate. 
The Commission does not expect that exemptions from Rule 11Ac1-5 and 
Rule 11Ac1-6 will be routinely issued.
    The Commission finds, in accordance with Section 553(b)(3)(A) of 
the Administrative Procedure Act,\4\ that these amendments relate 
solely to agency organization, procedure, or practice, and do not 
relate to a substantive rule. Accordingly, notice, opportunity for 
public comment, and publication of the amendment prior to its effective 
date are unnecessary.
---------------------------------------------------------------------------

    \4\ 5 U.S.C. 553(b)(3)(A).
---------------------------------------------------------------------------

List of Subjects in 17 CFR Part 200

    Administrative practice and procedure, Authority delegations 
(Government agencies), Organization and functions (Government 
agencies).

Text of Amendment

    In accordance with the preamble, the Commission hereby amends 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. 77s, 78d-1, 78d-2, 78w, 78ll(d), 78mm, 79t, 
77sss, 80a-37, 80b-11, unless otherwise noted.
* * * * *

    2. Section 200.30-3 is amended by adding paragraphs (a)(69) and 
(a)(70) to read as follows:


Sec. 200.30-3  Delegation of authority to Director of Division of 
Market Regulation.

* * * * *
    (a) * * *
    (69) Pursuant to paragraph (c) of Rule 11Ac1-5 (17 CFR 240.11Ac1-
5), to grant or deny exemptions, conditionally or unconditionally, from 
any provision or provisions of Rule 11Ac1-5.
    (70) Pursuant to paragraph (d) of Rule 11Ac1-6 (17 CFR 240.11Ac1-
6), to grant or deny exemptions, conditionally or unconditionally, from 
any provision or provisions of Rule 11Ac1-6.
* * * * *

    Dated: February 20, 2001.

    By the Commission.
Margaret H. McFarland,
Secretary.
[FR Doc. 01-4648 Filed 2-23-01; 8:45 am]
BILLING CODE 8010-01-U