Document ID: SEC-2008-0091-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Futures Association
Posted Date: 2008-01-18T05:00Z

[Federal Register: January 18, 2008 (Volume 73, Number 13)]
[Notices]               
[Page 3502-3503]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ja08-95]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57142; File No. SR-NFA-2007-07]

 
Self-Regulatory Organizations; National Futures Association; 
Notice of Filing and Immediate Effectiveness of Proposed Amendments to 
Compliance Rules 2-7 and 2-30 and the Interpretive Notices Entitled 
``NFA Compliance Rule 2-4: Confidentiality Language in Release 
Agreements,'' ``Compliance Rule 2-9: Enhanced Supervisory 
Requirements,'' ``Compliance Rule 2-9: Special Supervisory Requirements 
for Members Registered as Broker-Dealers Under Section 15(b)(11) of the 
Securities Exchange Act of 1934,'' ``NFA Compliance Rule 2-37: Fair 
Commissions,'' ``NFA Compliance Rules 2-7 and 2-24 and Registration 
Rule 401: Proficiency Requirements for Security Futures Products,'' and 
``NFA Compliance Rule 2-30(b): Risk Disclosure Statement for Security 
Futures Contracts''

January 14, 2008.
    Pursuant to Section 19(b)(7) of the Securities Act of 1934 
(``Act''),\1\ and Rule 19b-7 under the Act,\2\ notice is hereby given 
that on December 7, 2007, National Futures Association (``NFA'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change described in Items I, II, and III below, which 
Items have been substantially prepared by NFA. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons. NFA also has filed the proposed rule change 
with the Commodity Futures Trading Commission (``CFTC'').
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    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
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    NFA, on December 5, 2007, requested that the CFTC make a 
determination that review of the proposed rule change of NFA is not 
necessary. By letter dated December 17, 2007, the CFTC notified NFA of 
its determination not to review the proposed rule change.\3\
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    \3\ See letter from Lawrence B. Patent, Deputy Director, CFTC, 
to Thomas W. Sexton, III, General Counsel, NFA (``Letter'').
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I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    In July 2007, the New York Stock Exchange merged its member 
regulation, enforcement, and arbitration functions into National 
Association of Securities Dealers, Inc. (``NASD''), which then became 
the Financial Industry Regulatory Authority, Inc. (``FINRA''). Since 
several of NFA's rules and interpretive notices reference NASD, the 
amendments replace those references with references to FINRA.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NFA has prepared statements 
concerning the purpose of, and basis for, the proposed rule change, 
burdens on competition, and comments received from members, 
participants, and others. The text of these 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 
aspects 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 in 
security futures products under Section 15(b)(11) of the Act.\5\ The 
amendments replace the references to the NASD with references to FINRA 
in rules and interpretive notices that apply to Members that are 
registered as security futures brokers or dealers under Section 
15(b)(11).
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    \4\ 15 U.S.C. 78o-3(k).
    \5\ 15 U.S.C. 78o(b)(11).
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2. Statutory Basis
    The rule change is authorized by, and consistent with, Section 
15A(k) of the Act.\6\ The proposed changes are nothing more than 
technical amendments to replace references to NASD with references to 
FINRA.
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    \6\ 15 U.S.C. 78o-3(k).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The rule change will not impose any burden on competition that is 
not necessary or appropriate in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement of Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    NFA did not publish the rule change to the membership for comment. 
NFA did not receive comment letters concerning the rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The CFTC notified NFA of its determination not to review the 
proposed rule change.\7\ The proposed rule change has become effective 
on December 17, 2007.
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    \7\ See Letter, supra note 3.
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    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 refiled in accordance with the provisions of Section 19(b)(1) 
of the Act.\8\
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    \8\ 15 U.S.C. 78s(b)(1).
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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 rule-comments@sec.gov. Please include 

File Number SR-NFA-2007-07 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NFA-2007-07. 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

[[Page 3503]]

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 NFA. 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-2007-07 and should be submitted on or before February 8, 2008.
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    \9\ 17 CFR 200.30-3(a)(73).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-833 Filed 1-17-08; 8:45 am]

BILLING CODE 8011-01-P