Document ID: SEC-2006-1167-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; fingerprinting plan: Philadelphia Stock Exchange, Inc.
Posted Date: 2006-09-08T04:00Z

[Federal Register: September 8, 2006 (Volume 71, Number 174)]
[Notices]               
[Page 53141-53142]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08se06-82]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54396]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Declaration of Effectiveness of the Philadelphia Stock Exchange 
Fingerprinting Plan

August 31, 2006.
    On July 17, 2006, the Philadelphia Stock Exchange, Inc. (``Phlx'') 
filed with the Securities and Exchange Commission (``Commission'') a 
fingerprint plan (``Plan'') pursuant to Rule 17f-2(c) \1\ under the 
Securities Exchange Act of 1934 (``Act'').\2\ A copy of the Plan is 
attached as Exhibit A.
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    \1\ 17 CFR 240.17f-2(c).
    \2\ 15 U.S.C. 78a et seq.
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    The Phlx believes that the Plan will facilitate compliance by 
Exchange members with Section 17(f)(2) of the Act and Rule 17f-2 
thereunder by providing a facility for the fingerprints of directors, 
partners, officers and employees of Exchange members to be submitted to 
the Attorney General of the United States and processed electronically.
    Under the Plan, all persons who are seeking registration with the 
Phlx or are currently registered with the Phlx submit fingerprint cards 
or fingerprint results to the NASD, which then forwards the 
fingerprints to the Federal Bureau of Investigation (``FBI'') (the 
fingerprint processing arm of the Attorney General). The FBI identifies 
submitted fingerprints, retrieves relevant criminal history 
information, and returns fingerprint reports to the NASD. Phlx members 
will be able to

[[Page 53142]]

view the status and results of fingerprints, including any relevant 
criminal history information, through the NASD's Web Central 
Registration Depository (Web CRD[supreg]) system after submission to 
the Attorney General.
    The Commission has reviewed the procedures detailed in the Plan and 
believes that the Plan is consistent with the public interest and the 
protection of investors. Thus, the Commission declares the Plan 
effective.
    The Commission notes that securities industry fingerprinting 
procedures are in a state of flux due to rapidly advancing technology. 
In the event that an industry-wide standard is adopted or becomes 
prevalent and in the event that this Plan substantially differs 
therefrom, the Commission would expect the Phlx to revise its 
fingerprint plan to incorporate the industry-wide standard.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\3\
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    \3\ 17 CFR 200.30-3(a)(17)(iii).
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Nancy M. Morris,
Secretary.

Exhibit A--Philadelphia Stock Exchange Fingerprinting Plan

    The Philadelphia Stock Exchange, Inc. (``Phlx'' or ``Exchange'') 
submits this amendment to its Fingerprinting Plan (``Amended 
Fingerprinting Plan'') pursuant to Section 17(f)(2) of the Securities 
Exchange Act of 1934 (``Act'') and Rule 17f-2(c) thereunder. This 
Amended Fingerprinting Plan supersedes and replaces the Exchange's 
current fingerprinting plan.\4\ The purpose of this Amended 
Fingerprinting Plan is to facilitate compliance by Exchange Members 
with Section 17(f)(2) of the Act and Rule 17f-2 thereunder by providing 
a facility for the fingerprints of directors, partners, officers and 
employees of Exchange members to be submitted to the Attorney General 
of the United States and processed electronically.
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    \4\ The Exchange's current fingerprinting plan was approved on a 
permanent basis by the Securities and Exchange Commission 
(``Commission'') on December 23, 1976. See Securities Exchange Act 
Release No. 13105, 42 FR 753 (January 4, 1977).
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    The Exchange has established an arrangement with the National 
Association of Securities Dealers, Inc. (``NASD'') to permit all 
individuals that must be registered or approved by the Exchange 
(``registered persons'') to be electronically registered with the 
Exchange through the NASD's Web Central Registration Depository (``Web 
CRD''). Web CRD is a Web-based system that provides broker-dealers and 
their associated persons with ``one-stop filing'' with the Commission, 
the NASD and other self-regulatory organizations and regulators. Web 
CRD is operated by the NASD and is used by participating regulators in 
connection with registering and licensing broker-dealers and their 
associated persons. Pursuant to its Memorandum of Understanding with 
the NASD \5\, all members submit hard copy fingerprint cards or results 
of processed cards to the NASD.
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    \5\ The Exchange and NASD executed a Memorandum of Understanding 
on September 22, 2005.
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    In connection with the arrangement with the NASD, all persons who 
are seeking registration with the Exchange or are currently registered 
with the Exchange, submit fingerprint cards or fingerprint results to 
the NASD for processing and/or submission to the Attorney General. The 
Attorney General provides the NASD with fingerprint processing results 
for persons seeking registration, and the results are provided to the 
members. The NASD notifies the Exchange if the fingerprint results 
received by the NASD contain information indicating that the person is 
subject to a statutory disqualification. In such an instance, the 
Exchange reviews the fingerprint results to determine the possible 
existence of a statutory disqualification as defined in Section 
3(a)(39) of the Act, and takes appropriate action, if necessary, 
concerning eligibility or continued eligibility of the individual for 
employment or association with an Exchange member. Any maintenance of 
fingerprint records by the Exchange shall be for the Exchange's own 
administrative purposes, and the Exchange is not undertaking to 
maintain fingerprint records on behalf of Exchange members pursuant to 
Rule 17f-2(d)(2). The Exchange advises its members and member 
applicants of any fees charged in connection with processing of 
fingerprints pursuant to the Amended Fingerprinting Plan. The Exchange 
will file any such Exchange member fees with the Commission pursuant to 
Section 19(b) of the Act.
    The Exchange shall not be liable for losses or damages of any kind 
in connection with the fingerprint services, as a result of a failure 
to properly follow the procedures described above, or as a result of 
lost or delayed fingerprint cards, fingerprint records, or fingerprint 
processing results, or as a result of any action by the Exchange or the 
Exchange's failure to take action in connection with this Amended 
Fingerprinting Plan.

[FR Doc. E6-14876 Filed 9-7-06; 8:45 am]

BILLING CODE 8010-01-P