[Federal Register: January 18, 2008 (Volume 73, Number 13)]
[Notices]
[Page 3502-3503]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ja08-95]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57142; File No. SR-NFA-2007-07]
Self-Regulatory Organizations; National Futures Association;
Notice of Filing and Immediate Effectiveness of Proposed Amendments to
Compliance Rules 2-7 and 2-30 and the Interpretive Notices Entitled
``NFA Compliance Rule 2-4: Confidentiality Language in Release
Agreements,'' ``Compliance Rule 2-9: Enhanced Supervisory
Requirements,'' ``Compliance Rule 2-9: Special Supervisory Requirements
for Members Registered as Broker-Dealers Under Section 15(b)(11) of the
Securities Exchange Act of 1934,'' ``NFA Compliance Rule 2-37: Fair
Commissions,'' ``NFA Compliance Rules 2-7 and 2-24 and Registration
Rule 401: Proficiency Requirements for Security Futures Products,'' and
``NFA Compliance Rule 2-30(b): Risk Disclosure Statement for Security
Futures Contracts''
January 14, 2008.
Pursuant to Section 19(b)(7) of the Securities Act of 1934
(``Act''),\1\ and Rule 19b-7 under the Act,\2\ notice is hereby given
that on December 7, 2007, National Futures Association (``NFA'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change described in Items I, II, and III below, which
Items have been substantially prepared by NFA. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons. NFA also has filed the proposed rule change
with the Commodity Futures Trading Commission (``CFTC'').
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\1\ 15 U.S.C. 78s(b)(7).
\2\ 17 CFR 240.19b-7.
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NFA, on December 5, 2007, requested that the CFTC make a
determination that review of the proposed rule change of NFA is not
necessary. By letter dated December 17, 2007, the CFTC notified NFA of
its determination not to review the proposed rule change.\3\
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\3\ See letter from Lawrence B. Patent, Deputy Director, CFTC,
to Thomas W. Sexton, III, General Counsel, NFA (``Letter'').
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I. Self-Regulatory Organization's Description of the Proposed Rule
Change
In July 2007, the New York Stock Exchange merged its member
regulation, enforcement, and arbitration functions into National
Association of Securities Dealers, Inc. (``NASD''), which then became
the Financial Industry Regulatory Authority, Inc. (``FINRA''). Since
several of NFA's rules and interpretive notices reference NASD, the
amendments replace those references with references to FINRA.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NFA has prepared statements
concerning the purpose of, and basis for, the proposed rule change,
burdens on competition, and comments received from members,
participants, and others. The text of these statements may be examined
at the places specified in Item IV below. NFA has prepared summaries,
set forth in Sections A, B, and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Section 15A(k) of the Act \4\ makes NFA a national securities
association for the limited purpose of regulating the activities of NFA
members (``Members'') who are registered as brokers or dealers in
security futures products under Section 15(b)(11) of the Act.\5\ The
amendments replace the references to the NASD with references to FINRA
in rules and interpretive notices that apply to Members that are
registered as security futures brokers or dealers under Section
15(b)(11).
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\4\ 15 U.S.C. 78o-3(k).
\5\ 15 U.S.C. 78o(b)(11).
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2. Statutory Basis
The rule change is authorized by, and consistent with, Section
15A(k) of the Act.\6\ The proposed changes are nothing more than
technical amendments to replace references to NASD with references to
FINRA.
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\6\ 15 U.S.C. 78o-3(k).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The rule change will not impose any burden on competition that is
not necessary or appropriate in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement of Comments on the Proposed
Rule Change Received From Members, Participants, or Others
NFA did not publish the rule change to the membership for comment.
NFA did not receive comment letters concerning the rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The CFTC notified NFA of its determination not to review the
proposed rule change.\7\ The proposed rule change has become effective
on December 17, 2007.
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\7\ See Letter, supra note 3.
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Within 60 days of the date of effectiveness of the proposed rule
change, the Commission, after consultation with the CFTC, may summarily
abrogate the proposed rule change and require that the proposed rule
change be refiled in accordance with the provisions of Section 19(b)(1)
of the Act.\8\
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\8\ 15 U.S.C. 78s(b)(1).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NFA-2007-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NFA-2007-07. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's
[[Page 3503]]
Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the
submission, all subsequent amendments, all written statements with
respect to the proposed rule change that are filed with the Commission,
and all written communications relating to the proposed rule change
between the Commission and any person, other than those that may be
withheld from the public in accordance with the provisions of 5 U.S.C.
552, will be available for inspection and copying in the Commission's
Public Reference Room, 100 F Street, NE., Washington, DC 20549, on
official business days between the hours of 10 a.m. and 3 p.m. Copies
of such filing also will be available for inspection and copying at the
principal office of NFA. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-NFA-2007-07 and should be submitted on or before February 8, 2008.
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\9\ 17 CFR 200.30-3(a)(73).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-833 Filed 1-17-08; 8:45 am]
BILLING CODE 8011-01-P