[Federal Register Volume 75, Number 170 (Thursday, September 2, 2010)]
[Notices]
[Pages 53988-53989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21887]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62784]


Notice Regarding the Requirement To Use eXtensible Business 
Reporting Language Format To Make Publicly Available the Information 
Required Pursuant to Rule 17g-2(d) of the Exchange Act

AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice.

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SUMMARY: The Commission is providing notice that the List of XBRL Tags 
for NRSROs (``List of XBRL Tags'') to be used for the ratings history 
disclosure requirements in paragraph (d) of Rule 17g-2 has been 
published on the Commission's Internet Web site. An NRSRO subject to 
the disclosure provisions of paragraph (d) of Rule 17g-2 shall make 
this information available in an interactive data file on its corporate 
Internet Web site in XBRL format using the List of XBRL Tags beginning 
no later than 60 days after the publication of this Notice in the 
Federal Register.

DATES: The date an NRSRO is required to begin using an XBRL format and 
the List of XBRL Tags for the purpose of Rule 17g-2(d) is November 1, 
2010.

FOR FURTHER INFORMATION CONTACT: Michael A. Macchiaroli, Associate 
Director, at (202) 551-5525; Thomas K. McGowan, Deputy Associate 
Director, at (202) 551-5521; Randall W. Roy, Assistant Director, at 
(202) 551-5522; Raymond A. Lombardo, Branch Chief, at (202) 551-5755; 
or Rebekah E. Goshorn, Attorney, at (202) 551-5514; Division of Trading 
and Markets, Securities and Exchange Commission; 100 F Street, NE., 
Washington, DC 20549-7010.

SUPPLEMENTARY INFORMATION: The Credit Rating Agency Reform Act of 2006 
(``Rating Agency Act'') \1\ defined the term ``nationally recognized 
statistical rating organization'' (``NRSRO'') and provided authority 
for the Securities and Exchange Commission (``Commission'') to 
implement registration, recordkeeping, financial reporting, and 
oversight rules with respect to registered credit rating agencies. The 
regulations implemented by the Commission pursuant to this mandate 
include Securities Exchange Act of 1934 (``Exchange Act'') Rule 17g-
2,\2\ which requires an NRSRO to make and retain certain records 
relating to its business and to retain certain other business records 
made in the normal course of business operations. The Commission 
adopted Rule 17g-2 and the amendments thereto, in part, under authority 
to require NRSROs to make and keep for specified periods such records 
as the Commission prescribes as necessary or appropriate in the public 
interest, for the protection of investors, or otherwise in furtherance 
of the purposes of the Exchange Act.\3\
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    \1\ Public Law 109-291 (2006).
    \2\ 17 CFR 240.17g-2.
    \3\ See Section 17(a)(1) of the Exchange Act (15 U.S.C. 
78q(a)(1)).
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    On February 2, 2009, the Commission adopted amendments to its NRSRO 
rules imposing additional requirements on NRSROs in order to address 
concerns about the integrity of their credit rating procedures and 
methodologies.\4\ Among other things, the rule amendments added new 
paragraph (a)(8) and paragraph (d) (now paragraph (d)(2)) to Rule 17g-
2. Paragraph (a)(8) of Rule 17g-2 requires an NRSRO to make and retain 
a record for each outstanding credit rating it maintains showing all 
rating actions (initial rating, upgrades, downgrades, placements on 
watch for upgrade or downgrade, and withdrawals) and the date of such 
actions identified by the name of the security or obligor rated and, if 
applicable, the CUSIP for the rated security or the Central Index Key 
(CIK) number for the rated obligor.\5\ Paragraph (d)(2) of Rule 17g-2 
requires an NRSRO to make publicly available, on a six-month delayed 
basis, the ratings histories for a random sample of 10% of the credit 
ratings paid for by the obligor being rated or by the issuer, 
underwriter, or sponsor of the security being rated (``issuer-paid 
credit ratings'') pursuant to paragraph (a)(8) of Rule 17g-2 for each 
class of credit rating for which the NRSRO is registered and has issued 
500 or more issuer-paid credit ratings.\6\
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    \4\ See Amendments to Rules for Nationally Recognized 
Statistical Rating Organizations, Exchange Act Release No. 59342 
(February 2, 2009), 74 FR 6456 (``February 2009 Adopting Release'').
    \5\ 17 CFR 240.17g-2(a)(8).
    \6\ 17 CFR 240.17g-2(d).
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    Paragraph (d)(2) of Rule 17g-2 further requires that this 
information be made

[[Page 53989]]

public on the NRSRO's corporate Internet Web site in eXtensible 
Business Reporting Language (``XBRL'') format.\7\ The rule provides 
that in preparing the XBRL disclosure, an NRSRO must use the List of 
XBRL Tags as specified on the Commission's Internet Web site.\8\ The 
Commission established a compliance date of August 10, 2009 for this 
provision. On August 5, 2009, the Commission provided notice that an 
NRSRO subject to the disclosure provisions of paragraph (d) (now 
paragraph (d)(2)) of Rule 17g-2 could satisfy the requirement to make 
publicly available ratings history information in an XBRL format by 
using an XBRL format or any other machine-readable format, until such 
time as the Commission provides further notice.\9\ The Commission today 
is providing notice that a List of XBRL Tags has been published on the 
Commission's Internet Web site and that NRSROs shall commence 
publishing the information required by Rule 17g-2(d)(2) in XBRL format 
using the List of the XBRL Tags beginning no later than November 1, 
2010.
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    \7\ Id.
    \8\ Id. The February 2009 Adopting Release specified a 
compliance date of 180 days after publication in the Federal 
Register.
    \9\ See Securities Exchange Release No. 60451 (August 5, 2009) 
74 FR 40246 (August 11, 2009) (``August 5, 2009 Notice'').
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    On November 23, 2009, the Commission further amended Rule 17g-2 to 
add paragraph (d)(3), which requires that an NRSRO must make publicly 
available on its corporate Internet Web site ratings action histories 
for all credit ratings initially determined on or after June 26, 2007 
in an interactive data file that uses a machine-readable format.\10\ In 
the case of issuer-paid credit ratings, each new ratings action is 
required to be reflected in such publicly disclosed histories no later 
than twelve months after it is taken; in the case of ratings actions 
that are not issuer-paid, each new ratings action is required to be 
reflected no later than twenty-four months after it is taken.\11\ Rule 
17g-2(d)(3) provides that an NRSRO may use any machine-readable format 
to make this data publicly available until 60 days after the date on 
which the Commission publishes a List of XBRL Tags for NRSROs on its 
Internet Web site, at which point the NRSRO is required to make the 
information available in XBRL format using the List of XBRL Tags for 
NRSROs as published by the Commission on its Internet Web site.\12\ 
Today, the Commission is providing notice that the List of XBRL Tags 
has been published on the Commission's Internet Web site.\13\
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    \10\ See Securities Exchange Release No. 61050 (November 23, 
2009) 74 FR 63831 (December 4, 2009) (``November 2009 Adopting 
Release'').
    \11\ See November 2009 Adopting Release at 63834.
    \12\ See November 2009 Adopting Release at 63834.
    \13\ See List of XBRL Tags available at [Web site url].
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    The publication of the List of XBRL Tags on the Commission's 
Internet Web site automatically triggers the 60-day time frame for 
compliance with Rule 17(g)(2)(d)(3) using an XBRL format. However, for 
purposes of establishing a uniform compliance date for Rule 17g-2(d)(2) 
and Rule 17g-2(d)(3), the Commission will require that NRSROs make the 
information required under Rule 17g-2(d)(3) available on its corporate 
website in XBRL format using the List of XBRL Tags beginning no later 
than November 1, 2010.
    The relief provided by the August 5, 2009 Notice is superseded by 
this Notice.

    Dated: August 27, 2010.

    By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-21887 Filed 9-1-10; 8:45 am]
BILLING CODE 8010-01-P