505
in writing to the Commission on a
proposed rule that has been published
for comment, the Commission shall re-
spond in writing to such written com-
ment before approving the proposed
rule. If the Commodity Futures Trad-
ing Commission determines, and noti-
fies the Commission, that such rule, if
implemented or as applied, would—
‘‘(i) adversely affect the liquid-
ity or efficiency of the market for
security future products; or
‘‘(ii) impose any burden on
competition not necessary or ap-
propriate in furtherance of the
purposes of this section,
the Commission shall, prior to approv-
ing the proposed rule, find that such
rule is necessary and appropriate in
furtherance of the purposes of this
section 
notwithstanding 
the 
Com-
modity Futures Trading Commission’s
determination.
‘‘(C) CONSIDERATIONS
OF
EXISTING
REGULATION.—In approving rules de-
506
scribed in subparagraph (A), the Com-
mission shall consider the sufficiency
and appropriateness of then existing
laws and rules applicable to security
futures products.’’.
(c) 
REVIEW
OF
DISCIPLINARY
PRO-
CEEDINGS.—Section 19(d) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78s(d)) is amend-
ed by adding at the end the following:
‘‘(3) The provisions of this subsection shall
apply to an exchange registered pursuant to
section 6(g) of this title or a national securities
association registered pursuant to section
15A(k) of this title only to the extent that such
exchange or association imposes any final dis-
ciplinary sanction for—
‘‘(A) a violation of the federal securi-
ties laws or the rules and regulations
thereunder; or
‘‘(B) a violation of a rule of such ex-
change or association, as to which a pro-
posed change would be required to be
filed under section 19 of this title, except
that, to the extent that the exchange or as-
sociation rule violation relates to any ac-
507
count, agreement, or transaction, this sub-
section shall apply only to the extent such
violation involves a security future prod-
uct.’’.
SEC. 203. REGULATORY RELIEF FOR INTERMEDIARIES
TRADING SECURITY FUTURE PRODUCTS.
(a) EXPEDITED REGISTRATION
AND EXEMP-
TIONS.—
(1) AMENDMENT.—Section 15(b) of the
Securities Exchange Act of 1934 (15 U.S.C.
78o(b)) is amended by adding at the end
the following:
‘‘(11) 
BROKER/DEALER
REGISTRATION
WITH
RESPECT
TO
TRANSACTIONS
IN
SECU-
RITY FUTURE PRODUCTS.—
‘‘(A) NOTICE REGISTRATION.—
‘‘(i) CONTENTS OF NOTICE.—Not-
withstanding paragraphs (1) and
(2), a broker or dealer required to
register only because it effects
transactions in security future
products on an exchange reg-
istered pursuant to section 6(g)
may register for purposes of this
section by filing with the Commis-
508
sion a written notice in such form
and containing such information
concerning such broker or dealer
and any persons associated with
such broker or dealer as the Com-
mission, by rule, may prescribe as
necessary or appropriate in the
public interest or for the protec-
tion of investors. A broker or deal-
er may not register under this
paragraph unless that broker or
dealer is a member of a national
securities association registered
under section 15A(k).
‘‘(ii) 
IMMEDIATE
EFFECTIVE-
NESS.—Such registration shall be
effective immediately upon filing
of the written notice with the Com-
mission, except that such registra-
tion shall not be effective if the
registration would be subject to
suspension or revocation under
paragraph (4).
‘‘(iii) SUSPENSION.—Such reg-
istration shall be suspended im-
509
mediately if a national securities
association registered pursuant to
section 15A(k) of this title sus-
pends the membership of that
broker or dealer.
‘‘(iv) TERMINATION.—Such reg-
istration shall be terminated im-
mediately if any of the above stat-
ed conditions for registration set
forth in this paragraph are no
longer satisfied.
‘‘(B) EXEMPTIONS
FOR
REGISTERED
BROKERS
AND
DEALERS.—A broker or
dealer registered pursuant to the re-
quirements of subparagraph (A) shall
be exempt from the following provi-
sions of this title and the rules there-
under with respect to transactions in
security future products:
‘‘(i) Section 8.
‘‘(ii) Subsection (a) of section
10.
‘‘(iii) Section 11.
‘‘(iv) Subsections (c)(3) and
(c)(5) of this section.
510
‘‘(v) Section 15B.
‘‘(vi) Section 15C.
‘‘(vii) Subsections (d), (e), (f),
(g), (h), and (i) of section 17.’’.
(2) CONFORMING AMENDMENT.—Section
28(e) of the Securities Exchange Act of
1934 (15 U.S.C. 78bb(e)) is amended by
adding at the end the following:
‘‘(4) The provisions of this subsection shall
not apply with regard to securities that are se-
curity future products.’’.
(b) FLOOR BROKERS AND FLOOR TRADERS.—
Section 15(b) of the Securities Exchange Act of
1934 (15 U.S.C. 78o(b)) is amended by inserting
after paragraph (11), as added by subsection
(a), the following:
‘‘(12) EXEMPTION FOR SECURITY FUTURE
PRODUCT EXCHANGE MEMBERS.—
‘‘(A) REGISTRATION
EXEMPTION.—A
natural person shall be exempt from
the registration requirements of this
section if such person—
‘‘(i) is a member of a des-
ignated 
contract 
market 
reg-