Document ID: SEC-2010-1544-0001
Agency: sec
Document Type: Rule
Title: Delegation of Authority to the Director of the Division of Trading and Markets
Posted Date: 2010-10-12T04:00Z

[Federal Register: October 12, 2010 (Volume 75, Number 196)]
[Rules and Regulations]               
[Page 62466-62467]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12oc10-8]                         

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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.

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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 Dodd-Frank 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

[[Page 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.
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    \1\ Dodd-Frank Wall Street Reform and Consumer Protection Act, 
Pub. L. 111-203, 124 Stat. 1376 (2010).
    \2\ Section 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 self-
regulatory 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.
    \3\ Section 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.
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    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

0
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

0
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.
* * * * *

0
2. Section 200.30-3 is amended by:
0
a. Revising paragraphs (a)(12) and (a)(31);
0
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.'';
0
c. Revising paragraph (a)(57); and
0
d. Adding paragraph (a)(58).
    The revisions and addition read as follows:

Sec.  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 (Sec.  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 (Sec.  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 self-regulatory 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 
self-regulatory 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]
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