United States Government Publishing Office
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United States
National Archives and Records Administration
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government publication
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FR
Regulatory Information
2004_register
executive
2010-09-23
article
Fair Administration and Governance of Self-Regulatory Organizations; Disclosure and Regulatory Reporting by Self-Regulatory Organizations; Recordkeeping Requirements for Self-Regulatory Organizations; Ownership and Voting Limitations for Members of Self-Regulatory Organizations; Ownership Reporting Requirements for Members of Self-Regulatory Organizations; Listing and Trading of Affiliated Securities by a Self-Regulatory Organization
Part II
Proposed Rules
D09002ee1bde4b7e9
D09002ee1bde4bd11
United States
Securities and Exchange Commission
originator
org
United States Government Agency or Subagency
The Securities and Exchange Commission (``Commission'') is proposing to adopt new rules and amend existing rules and forms under the Securities Exchange Act of 1934 (``Exchange Act''). The proposals pertain to the governance, administration, transparency and ownership of self-regulatory organizations (``SROs'') that are national securities exchanges or registered securities associations and the periodic reporting of information by these SROs regarding their regulatory programs. The proposals also relate to the listing and trading by SROs of their own or affiliated securities. First, the proposals would impose new governance standards on national securities exchanges and registered securities associations by requiring a majority of the members of the exchange's or association's board of directors to be independent. In addition, key committees of the board would be required to be composed solely of independent directors. The proposals would define the term ``independent director.'' The proposals also would require exchanges and associations to establish policies and procedures to maintain a separation between their regulatory functions and their market operations and other commercial interests, and require that funds received from regulatory fines, fees, and penalties be used for regulatory purposes. Further, the proposals would require national securities exchanges and registered securities associations to prohibit any member that is a broker or dealer from owning and voting more than 20% of the ownership interest in the exchange or the association, or a facility of the exchange or association. To supplement these ownership and voting provisions, the proposals also would require each member of an exchange or association that is a broker or dealer to file a report with the Commission when the member acquires ownership of more than 5% of any interest in the exchange or association, or any facility thereof. Also, the Commission proposes to require national securities exchanges and national securities associations to maintain their books and records in the United States. Together, these proposals are designed to strengthen the governance and administration of SROs and address the possible concentration of ownership by member firms. In addition, the Commission proposes to amend its forms for registration as a national securities exchange or registered securities association to require that these SROs file with the Commission and publicly disclose enhanced information relating to their governance, regulatory programs, finances, ownership structure, and other matters. Further, the Commission's rules governing the procedures for filing amendments to these registration forms would be revised to require more frequent updating of the required information and the posting of the required information on the SROs' Internet Web sites. These proposals are designed to provide greater transparency to key aspects of the governance, ownership structure, and regulatory operations of national securities exchanges and registered securities associations. The Commission also proposes to require national securities exchanges and registered securities associations to file with the Commission, in an electronic format, quarterly and annual reports on particular aspects of their regulatory programs. This proposal is intended to enhance the Commission's oversight and surveillance of exchanges and associations by requiring them to provide the Commission with detailed regulatory information on a regular basis, thereby assisting the Commission to oversee more effectively the SROs' regulatory programs and better identify any trends or issues that may arise. Finally, the Commission proposes to impose requirements on a national securities exchange or registered securities association that chooses to list or trade its own security, the security of any trading facility, or the security of an affiliate of itself or a facility. The proposed requirements are designed to assure that these SROs are able to enforce effectively their listing standards with respect to, and supervise trading in, their own or a facility's securities, or the securities of affiliates of the SRO or a facility.
69 FR 71126
https://www.govinfo.gov/app/details/FR-2004-12-08/04-26153
04-26153
fr08de04-31
RIN 3235-AJ33
8010-01-P
Release No. 34-50699
File No. S7-39-04
https://www.govinfo.gov/app/details/FR-2004-12-08/04-26153
https://www.govinfo.gov/content/pkg/FR-2004-12-08/html/04-26153.htm
https://www.govinfo.gov/content/pkg/FR-2004-12-08/pdf/04-26153.pdf
Brokers
Reporting and Recordkeeping Requirements
Securities
129 p.
71126
71254
69 FR 71126
Code of Federal Regulations
Title 17 Part 240
17 CFR Part 240
Code of Federal Regulations
Title 17 Part 242
17 CFR Part 242
Code of Federal Regulations
Title 17 Part 249
17 CFR Part 249
Regulation Identification Number 3235-AJ33
RIN 3235-AJ33
Fair Administration and Governance of Self-Regulatory Organizations; Disclosure and Regulatory Reporting by Self-Regulatory Organizations; Recordkeeping Requirements for Self-Regulatory Organizations; Ownership and Voting Limitations for Members of Self-Regulatory Organizations; Ownership Reporting Requirements for Members of Self-Regulatory Organizations; Listing and Trading of Affiliated Securities by a Self-Regulatory Organization; Federal Register Vol. 69, Issue
PRORULE
04-26153
II
SECURITIES AND EXCHANGE COMMISSION
2005-01-24
Release No. 34-50699
File No. S7-39-04
8010-01-P
04-26153
Proposed rule.
The Securities and Exchange Commission (``Commission'') is proposing to adopt new rules and amend existing rules and forms under the Securities Exchange Act of 1934 (``Exchange Act''). The proposals pertain to the governance, administration, transparency and ownership of self-regulatory organizations (``SROs'') that are national securities exchanges or registered securities associations and the periodic reporting of information by these SROs regarding their regulatory programs. The proposals also relate to the listing and trading by SROs of their own or affiliated securities. First, the proposals would impose new governance standards on national securities exchanges and registered securities associations by requiring a majority of the members of the exchange's or association's board of directors to be independent. In addition, key committees of the board would be required to be composed solely of independent directors. The proposals would define the term ``independent director.'' The proposals also would require exchanges and associations to establish policies and procedures to maintain a separation between their regulatory functions and their market operations and other commercial interests, and require that funds received from regulatory fines, fees, and penalties be used for regulatory purposes. Further, the proposals would require national securities exchanges and registered securities associations to prohibit any member that is a broker or dealer from owning and voting more than 20% of the ownership interest in the exchange or the association, or a facility of the exchange or association. To supplement these ownership and voting provisions, the proposals also would require each member of an exchange or association that is a broker or dealer to file a report with the Commission when the member acquires ownership of more than 5% of any interest in the exchange or association, or any facility thereof. Also, the Commission proposes to require national securities exchanges and national securities associations to maintain their books and records in the United States. Together, these proposals are designed to strengthen the governance and administration of SROs and address the possible concentration of ownership by member firms. In addition, the Commission proposes to amend its forms for registration as a national securities exchange or registered securities association to require that these SROs file with the Commission and publicly disclose enhanced information relating to their governance, regulatory programs, finances, ownership structure, and other matters. Further, the Commission's rules governing the procedures for filing amendments to these registration forms would be revised to require more frequent updating of the required information and the posting of the required information on the SROs' Internet Web sites. These proposals are designed to provide greater transparency to key aspects of the governance, ownership structure, and regulatory operations of national securities exchanges and registered securities associations. The Commission also proposes to require national securities exchanges and registered securities associations to file with the Commission, in an electronic format, quarterly and annual reports on particular aspects of their regulatory programs. This proposal is intended to enhance the Commission's oversight and surveillance of exchanges and associations by requiring them to provide the Commission with detailed regulatory information on a regular basis, thereby assisting the Commission to oversee more effectively the SROs' regulatory programs and better identify any trends or issues that may arise. Finally, the Commission proposes to impose requirements on a national securities exchange or registered securities association that chooses to list or trade its own security, the security of any trading facility, or the security of an affiliate of itself or a facility. The proposed requirements are designed to assure that these SROs are able to enforce effectively their listing standards with respect to, and supervise trading in, their own or a facility's securities, or the securities of affiliates of the SRO or a facility.
Comments should be submitted on or before January 24, 2005.
SRO Governance and Disclosure: Nancy J. Sanow, Assistant Director, at (202) 942-0796, Susie Cho, Special Counsel, at (202) 942-0748, Leah Mesfin, Special Counsel, at (202) 942- 0196, Geraldine Idrizi, Attorney, at (202) 942-7317, and A. Michael Pierson, Attorney, at (202) 942-0192; Reporting Requirements for SROs: Nancy J. Sanow, Assistant Director, at (202) 942-0796, and Richard Holley III, Attorney, at (202) 942-8086; and SRO Ownership and Voting Restrictions, SRO Self-Listing, and Reporting Requirements for Members: Heather Seidel, Attorney Fellow, at (202) 942-0788, Sonia Trocchio, Special Counsel, at (202) 942-0753, David Hsu, Special Counsel, at (202) 942-0731, and Jennifer Dodd, Attorney, at (202) 824-5471; all of whom are in the Division of Market Regulation, Securities and Exchange Commission, 450 Fifth Street NW, Washington DC 20549-1001.
Brokers
Reporting and Recordkeeping Requirements
Securities
Securities:
Self-regulatory organizations; governance, administration, transparency and ownership, and reporting requirements,
rule-comments@sec.gov
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Federal Register
Vol. 69, no. 235
Office of the Federal Register, National Archives and Records Administration
2004-12-08
continuing
daily
deposited
born digital
478 p.
Table of Contents:
AE 2.7:
GS 4.107:
AE 2.106:
KF70.A2
https://www.govinfo.gov/app/details/FR-2004-12-08
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https://www.govinfo.gov/app/details/FR-2004-12-08
https://www.govinfo.gov/content/pkg/FR-2004-12-08/pdf/FR-2004-12-08.pdf
https://www.govinfo.gov/content/pkg/FR-2004-12-08/xml/FR-2004-12-08.xml
fdlp
70871
71338
DGPO
2010-09-23
2023-05-03
FR-2004-12-08
machine generated
eng
FR
FR-2004-12-08
69
235