HR 20 IH
thereafter in accordance with the provisions of para-
graph (1) of this subsection.
(C) Any proposed rule change of a national de-
rivatives association which has taken effect pursuant
to subparagraph (A) or (B) of this paragraph may
be enforced by such organization to the extent it is
not inconsistent with the provisions of this Act, the
rules and regulations thereunder, and applicable
Federal and State law. At any time within sixty days
of the date of filing of such a proposed rule change
in accordance with the provisions of paragraph (1)
of this subsection, the Board summarily may abro-
gate the change in the rules of the national deriva-
tives association made thereby and require that the
proposed rule change be refiled in accordance with
the provisions of paragraph (1) of this subsection
and reviewed in accordance with the provisions of
paragraph (2) of this subsection, if it appears to the
Board that such action is necessary or appropriate
in the public interest, for the protection of investors,
or otherwise in furtherance of the purposes of this
Act. Board action pursuant to the preceding sen-
tence shall not affect the validity or force of the rule
change during the period it was in effect and shall
not be reviewable nor deemed to be ‘‘final agency ac-
HR 20 IH
tion’’ for purposes of section 704 of title 5, United
States Code.
(e) AUTHORITY OF BOARD TO MODIFY ASSOCIATION
RULES.—The Board, by rule, may abrogate, add to, and
delete from (hereinafter in this subsection collectively re-
ferred to as ‘‘amend’’) the rules of a national derivatives
association as the Board deems necessary or appropriate
to insure the fair administration of the national derivatives
association, to conform its rules to requirements of this
Act and the rules and regulations thereunder applicable
to such organization, or otherwise in furtherance of the
purposes of this Act, in the following manner:
(1) The Board shall notify the national deriva-
tives association and publish notice of the proposed
rulemaking in the Federal Register. The notice shall
include the text of the proposed amendment to the
rules of the national derivatives association and a
statement of the Board’s reasons, including any per-
tinent facts, for commencing such proposed rule-
making.
(2) The Board shall give interested persons an
opportunity for the oral presentation of data, views,
and arguments, in addition to an opportunity to
make written submissions. A transcript shall be kept
of any oral presentation.
HR 20 IH
(3) A rule adopted pursuant to this subsection
shall incorporate the text of the amendment to the
rules of the national derivatives association and a
statement of the Board’s basis for and purpose in so
amending such rules. This statement shall include
an identification of any facts on which the Board
considers its determination so to amend the rules of
the self-regulatory agency to be based, including the
reasons for the Board’s conclusions as to any of
such facts which were disputed in the rulemaking.
(4)(A) Except as provided in paragraphs (1)
through (3) of this subsection, rulemaking under
this subsection shall be in accordance with the pro-
cedures specified in section 553 of title 5, United
States Code, for rulemaking not on the record.
(B) Nothing in this subsection shall be con-
strued to impair or limit the Board’s power to make,
or to modify or alter the procedures the Board may
follow in making, rules and regulations pursuant to
any other authority under this Act.
(C) Any amendment to the rules of a national
derivatives association made by the Board pursuant
to this subsection shall be considered for all pur-
poses of this Act to be part of the rules of such na-
HR 20 IH
tional derivatives association and shall not be consid-
ered to be a rule of the Board.
(f) REVIEW BY BOARD OF ASSOCIATION DISCIPLI-
NARY ACTIONS.—
(1) NOTICE.—If any national derivatives asso-
ciation imposes any final disciplinary sanction on
any member thereof or participant therein, denies
membership or participation to any applicant, or
prohibits or limits any person in respect to access to
services offered by such organization or member
thereof, or if any national derivatives association im-
poses any final disciplinary sanction on any person
associated with a member or bars any person from
becoming associated with a member, the national de-
rivatives association shall promptly file notice there-
of with the Board. The notice shall be in such form
and contain such information as the Board, by rule,
may prescribe as necessary or appropriate in fur-
therance of the purposes of this Act.
(2) AUTHORITY TO REVIEW.—Any action with
respect to which a national derivatives association is
required by paragraph (1) of this subsection to file
notice shall be subject to review by the Board on its
own motion, or upon application by any person ag-
grieved thereby filed within thirty days after the
HR 20 IH
date such notice was filed with such Board and re-
ceived by such aggrieved person, or within such
longer period as such Board may determine. Appli-
cation to the Board for review, or the institution of
review by such Board on its own motion, shall not
operate as a stay of such action unless the Board
otherwise orders, summarily or after notice and op-
portunity for hearing on the question of a stay
(which hearing may consist solely of the submission
of affidavits or presentation of oral arguments). The
Board shall establish for appropriate cases an expe-
dited procedure for consideration and determination
of the question of a stay.
(3) DECISION AFTER REVIEW.—In any proceed-
ing to review a final disciplinary sanction imposed by
a national derivatives association on a member
thereof or participant therein or a person associated
with such a member, after notice and opportunity
for hearing (which hearing may consist solely of con-
sideration of the record before the national deriva-
tives association and opportunity for the presen-
tation of supporting reasons to affirm, modify, or set
aside the sanction)—
(A) if the Board finds that such member,
participant, or person associated with a member
HR 20 IH
has engaged in such acts or practices, or has
omitted such acts, as the national derivatives
association has found him to have engaged in or
omitted, that such acts or practices, or omis-
sions to act, are in violation of such provisions
of this Act, the rules or regulations thereunder,
or the rules of the national derivatives associa-
tion, as have been specified in the determina-
tion of the national derivatives association, and
that such provisions are, and were applied in a
manner, consistent with the purposes of this
Act, the Board, by order, shall so declare and,
as appropriate, affirm the sanction imposed by
the national derivatives association, modify the
sanction in accordance with paragraph (2) of
this subsection, or remand to the national de-
rivatives association for further proceedings; or
(B) if the Board does not make any such
finding it shall, by order, set aside the sanction
imposed by the national derivatives association
and, if appropriate, remand to the national de-
rivatives association for further proceedings.
(4) AUTHORITY TO CANCEL OR REDUCE SANC-
TIONS.—If the Board for a member, participant, or
person associated with a member, having due regard