[Federal Register Volume 69, Number 36 (Tuesday, February 24, 2004)]
[Rules and Regulations]
[Pages 8329-8330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3881]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Release No. 34-49259]


Delegation of Authority to the Director of the Division of Market 
Regulation

AGENCY: Securities and Exchange Commission.

ACTION: Final rule.

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SUMMARY: The Securities and Exchange Commission (``Commission'') is 
amending its Rules of Practice to delegate its authority to the 
Director of the Division of Market Regulation to grant or deny 
exemptions from the rule filing requirements of section 19(b) of the 
Securities Exchange Act of 1934 (``Exchange Act'') pursuant to section 
36 of the Exchange Act, in cases of a self-regulatory organization 
(``SRO'') incorporating by reference the rules of another SRO. The 
delegation of authority is intended to conserve Commission resources by 
permitting the staff to review and act on exemptive applications under 
section 36 when appropriate.

EFFECTIVE DATE: February 24, 2004.

FOR FURTHER INFORMATION CONTACT: Florence Harmon, Senior Special 
Counsel, at (202) 942-0773; Geoffrey Pemble, Special Counsel, at (202) 
942-0757, Office of Market Supervision, Division of Market Regulation, 
Securities and Exchange Commission, 450 Fifth Street, NW., Washington, 
DC 20549-1001.

SUPPLEMENTARY INFORMATION: The Commission today announces an amendment 
to its Rules of Practice governing Delegations of Authority to the 
Director of the Division of Market Regulation (``Director'').\1\ The 
amendment adds to Rule 30-3 a new paragraph (a)(78) authorizing the 
Director to grant or deny exemptions from the rule filing requirements 
of section 19(b) of the Exchange Act under section 36 of the Exchange 
Act in a case where an SRO chooses to incorporate by reference one or 
more rules of another SRO.\2\
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    \1\ 17 CFR 200.30-3.
    \2\ 15 U.S.C. 78s(b) and 78mm.

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[[Page 8330]]

    Section 36(a) provides that ``the Commission, by rule, regulation, 
or order, may conditionally or unconditionally exempt any person, 
security, or transaction, or any class or classes of persons, 
securities, or transactions, from any provision or provisions of this 
title or of any rule or regulation thereunder, to the extent that such 
exemption is necessary or appropriate in the public interest, and is 
consistent with the protection of investors.'' \3\
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    \3\ 15 U.S.C. 78mm(a).
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    The delegation of authority to the Director is intended to conserve 
Commission resources by permitting the staff, pursuant to section 
36(a), to review and act on exemptive applications from section 19(b) 
of SROs incorporating the rules of another SRO. Nevertheless, the staff 
may submit matters to the Commission for consideration as it deems 
appropriate. In addition, under section 4A(b) of the Exchange Act, the 
Commission retains discretionary authority to review, upon its own 
initiative or upon application by a party adversely affected, any 
exemption granted or denied by the Director pursuant to delegated 
authority.\4\
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    \4\ For information concerning the filing of exemptive relief 
applications, see Exchange Act Release No. 39624 (February 5, 1998), 
63 FR 8101 (February 18, 1998); 17 CFR 240.0-12.
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    The Commission finds, in accordance with section 553(b)(A) of the 
Administrative Procedure Act,\5\ that this amendment relates solely to 
agency organization, procedure, or practice, and does not relate to a 
substantive rule. Accordingly, notice, opportunity for public comment, 
and publication of the amendment prior to its effective date are 
unnecessary.
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    \5\ 5 U.S.C. 553(b)(A).
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List of Subjects in 17 CFR Part 200

    Administrative practice and procedure, Authority delegations 
(Government agencies), Organization and functions (Government 
agencies).

Text of Amendment

0
In accordance with the preamble, the Commission hereby amends title 17, 
chapter II of the Code of Federal Regulations as follows:

PART 200--ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION AND 
REQUESTS

Subpart A--Organization and Program Management

0
1. The authority citation for part 200, subpart A, continues to read, 
in part, as follows:

    Authority: 15 U.S.C. 77s, 78d-1, 78d-2, 78w, 78ll(d), 78mm, 79t, 
77sss, 80a-37, 80b-11, unless otherwise noted.
* * * * *

0
2. Section 200.30-3 is amended by adding paragraph (a)(78) to read as 
follows:


Sec.  200.30-3  Delegation of authority to the Director of Division of 
Market Regulation.

* * * * *
    (a) * * *
    (78) Pursuant to section 36 of the Act (15 U.S.C. 78mm) to review 
and grant or deny exemptions from the rule filing requirements of 
section 19(b) (15 U.S.C. 78s(b)) of the Act, in a case where a self-
regulatory organization elects to incorporate by reference one or more 
rules of another self-regulatory organization, provided that the 
following specified terms and conditions are met:
    (i) A self-regulatory organization electing to incorporate rules of 
another self-regulatory organization has requested to incorporate rules 
other than trading rules (e.g., the self-regulatory organization has 
requested to incorporate rules such as margin, suitability, 
arbitration);
    (ii) A self-regulatory organization electing to incorporate rules 
of another self-regulatory organization has requested to incorporate by 
reference categories of rules (rather than to incorporate individual 
rules within a category); and
    (iii) The incorporating self-regulatory organization has reasonable 
procedures in place to provide written notice to its members each time 
a change is proposed to the incorporated rules of another self-
regulatory organization.
* * * * *

    Dated: February 17, 2004.
By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-3881 Filed 2-23-04; 8:45 am]
BILLING CODE 8010-01-P