Securities Act of 1933, as amended, 48 Stat. 84,

[Title 17 CFR 19,]
[Code of Federal Regulations (annual edition) - April 1, 2007 Edition]
[Title 17 - COMMODITY AND SECURITIES EXCHANGES]
[Chapter II - SECURITIES AND EXCHANGE COMMISSION]
[Part 200 - ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION]
[Sec. 19, - Securities Act of 1933, as amended, 48 Stat. 84,]
[From the U.S. Government Printing Office]

17COMMODITY AND SECURITIES EXCHANGES22007-04-012007-04-01falseSecurities Act of 1933, as amended, 48 Stat. 84,19,Sec. 19,COMMODITY AND SECURITIES EXCHANGESSECURITIES AND EXCHANGE COMMISSIONORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION
Subpart J_Classification and Declassification of National Security
Information and Material

Authority: Sec. 19, Securities Act of 1933, as amended, 48 Stat. 84,
15 U.S.C. 77s. E.O. 12356, 47 FR 14874, Apr. 6, 1982. Information
Security Oversight Office Directive No. 1 (47 FR 27836, June 25, 1982).

Source: 44 FR 65737, Nov. 15, 1979, unless otherwise noted.

Sec. 200.500 Purpose.

This part establishes general policies and procedures for the
classification, declassification and safeguarding of national security
information which is generated, processed and/or stored by the
Commission, and supplements Executive Order 12356, April 6, 1982 (47 FR
14874), and Information Security Oversight Office Directive No. 1, June
25, 1982 (47 FR 27836).

[47 FR 47236, Oct. 25, 1982]

Sec. 200.501 Applicability.

This part applies to the handling of, and public access to, national
security information and classified documents in the Commission's
possession. Such documents no longer in the Commission's possession will
be handled by the agency having possession, or in accordance with
guidelines developed in consultation with the Archivist.

[[Page 105]]

Sec. 200.502 Definition.

As used in this part: Foreign government information means either
(a) information provided to the United States by a foreign government or
governments, an international organization of governments, or any
element thereof with the expectation, express or implied, that the
information, the source of the information, or both, are to be held in
confidence, or (b) information produced by the United States pursuant to
or as a result of a joint arrangement with a foreign government or
governments or an international organization of governments or any
element thereof, requiring that the information, the arrangement, or
both, are to be held in confidence.

[47 FR 47236, Oct. 25, 1982]

Sec. 200.503 Senior agency official.

The Executive Director of the Commission is designated the senior
agency official responsible for conducting an oversight program to
ensure effective implementation of Executive Order 12356. Any complaints
or suggestions regarding the Commission's information security program
should be directed to the Office of the Executive Director, Securities
and Exchange Commission, Attn: Information Security Program, 450 5th
Street, NW., Washington, DC 20549.
(a) The Deputy Executive Director is the Senior Agency Official for
purposes of the Paperwork Reduction Act of 1980. In this capacity, the
Deputy Executive Director will carry out all responsibilities required
by the Act (Pub. L. 96-511, 3506(b)), as well as serving as Agency
Clearance Officer for purposes of the publication of notices in the
Federal Register.
(b) [Reserved]

(11 U.S.C. 901, 1109(a))

[47 FR 47236, Oct. 25, 1982, as amended at 49 FR 12686, Mar. 30, 1984;
51 FR 5315, Feb. 13, 1986]

Sec. 200.504 Oversight Committee.

An Oversight Committee is established, under the chairmanship of the
Executive Director, with the following responsibilities:
(a) Establish a security education program to familiarize Commission
and other personnel who have access to classified information with the
provisions of Executive Order 12065, and encourage Commission personnel
to challenge those classification decisions they believe to be improper.
(b) Establish controls to insure that classified information is
used, processed, stored, reproduced, and transitted only under
conditions that will provide adequate protection and prevent access by
unauthorized persons.
(c) Establish procedures which require that a demonstrable need,
under section 4-1 of Executive Order 12065, for access to classified
information be established before administrative clearance procedures
are initiated, as well as other appropriate procedures to prevent
unnecessary access to classified information.
(d) Act on all suggestions and complaints concerning Commission
administration of its information security program.
(e) Establish procedures within the Commission to insure the orderly
and effective referral of requests for declassification of documents in
the Commission's possession.
(f) Review on an annual basis all practices for safeguarding
information and to eliminate those practices which are duplicative or
unnecessary.
(g) Recommend to the Chairman of the Commission appropriate
administrative action to correct abuse or violation of any provision of
Executive Order 12356.
(h) Consider and decide other questions concerning classification
and declassification that may be brought before it.
(i) Develop special contingency plans for the protection of
classified information used in or near hostile or potentially hostile
areas.
(j) Promptly notify the Director of the Information Security
Oversight Office whenever an officer or employee of the United States
Government or its contractors, licensees or grantees knowingly,
willfully or negligently (1) discloses to unauthorized persons
information properly classified under Executive Order 12356 or
predecessor orders or (2) classifies or continues the classification of
information in violation of

[[Page 106]]

Executive Order 12356 or predecessor orders.

[44 FR 65737, Nov. 15, 1979, as amended at 47 FR 47236, Oct. 25, 1982;
51 FR 5315, Feb. 13, 1986]

Sec. 200.505 Original classification.

(a) No Commission Member or employee has the authority to classify
any information on an original basis.
(b) If a Commission employee originates information that appears to
require classification, the employee shall immediately notify the
Secretary and protect the information accordingly.
(c) If the Executive Director believes the information warrants
classification, it shall be sent to an agency with original
classification authority over the subject matter, or to the information
Security Oversight Office, for determination.

[44 FR 65737, Nov. 15, 1979, as amended at 51 FR 5315, Feb. 13, 1986]

Sec. 200.506 Derivative classification.

Any document that includes paraphrases, restatements, or summaries
of, or incorporates in new form, information that is already classified
shall be assigned the same level of classification as the source; if,
however, the basic information appears to have been so changed that no
classification, or a lower classification than originally assigned,
should be used, the appropriate official of the originating agency or
office of origin who has the authority to upgrade, downgrade or
declassify the information must be consulted prior to assigning a
different classification to the information.

[47 FR 47236, Oct. 25, 1982]

Sec. 200.507 Declassification dates on derivative documents.

(a) A document that derives its classification from information
classified under Executive Order 12356 of predecessor orders shall be
marked with the date or event assigned to that source information for
its automatic declassification or for review of its continued need for
classification.
(b) A derivative document that derives its classification from the
approved use of the classification guide of another agency shall bear
the declassification date required by the provisions of that
classification guide.

[47 FR 47236, Oct. 25, 1982]

Sec. 200.508 Requests for mandatory review for declassification.

(a) Requests for mandatory review of a Commission document for
declassification may be made by any United States citizen or permanent
resident alien, including Commission employees, or a Federal agency, or
a State or local government. The request shall be in writing and shall
be sent to the Office of the Executive Director, Attn: Mandatory Review
Request, Securities and Exchange Commission, 450 5th Street NW.,
Washington, DC 20549.
(b) The request shall describe the material sufficiently to enable
the Commission to locate it. Requests with insufficient description of
the material will be returned to the requester for further information.
(c) Within 5 days of receiving a request for declassification, the
Commission shall acknowledge its receipt. If the document was
derivatively classified by the Commission or originally classified by
another agency, the request and the document shall be forwarded promptly
to the agency with original classification authority together with the
Commission's recommendation to withhold any of the information where
appropriate. The requester shall be notified of the referral.
(d) If the request requires the provision of services by the
Commission, fair and equitable fees may be charged under title 5 of the
Independent Offices Appropriation Act, 65 Stat. 290, 31 U.S.C. 483a.

[44 FR 65737, Nov. 15, 1979, as amended at 47 FR 47237, Oct. 25, 1982;
51 FR 5315, Feb. 13, 1986]

Sec. 200.509 Challenge to classification by Commission employees.

Commission employees who have reasonable cause to believe that
information is classified unnecessarily, improperly, or for an
inappropriate period of time, may challenge those classification
decisions through mandatory review or other appropriate procedures as
established by the Oversight Committee. Commission employees who
challenge classification decisions may

[[Page 107]]

request that their identity not be disclosed.

Sec. 200.510 Access by historical researchers.

(a) Persons outside the executive branch performing historical
research may have access to information over which the Commission has
classification jurisdiction for the period requested (but not longer
than 2 years unless renewed for an additional period of less than 2
years) if the Executive Director determines in writing that access to
the information will be consistent with the interests of national
security.
(b) The person seeking access to classified information must agree
in writing:
(1) To be subject to a national agency check;
(2) To protect the classified information in accordance with the
provisions of Executive Order 12356; and
(3) Not to publish or otherwise reveal to unauthorized persons any
classified information.

[44 FR 65737, Nov. 15, 1979, as amended at 47 FR 47237, Oct. 25, 1982;
51 FR 5315, Feb. 13, 1986]

Sec. 200.511 Access by former Presidential appointees.

(a) Former Commission Members appointed by the President may have
access to classified information or documents over which the Commission
has jurisdiction that they originated, reviewed, signed, or received
while in public office, if the Executive Director determines in writing
that access to the information will be consistent with the interest of
nation security.
(b) The person seeking access to classified information must agree
in writing:
(1) To be subject to a national agency check;
(2) To protect the classified information in accordance with the
provisions of Executive Order 12356; and
(3) Not to publish or otherwise reveal to unauthorized persons any
classified information.

[44 FR 65737, Nov. 15, 1979, as amended at 47 FR 47237, Oct. 25, 1982;
51 FR 5315, Feb. 13, 1986]