30 Day Notice

50202

Federal Register / Vol. 88, No. 146 / Tuesday, August 1, 2023 / Notices

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 website viewing and
printing 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 the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NYSECHX–2023–14 and should be
submitted on or before August 22, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–16244 Filed 7–31–23; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–619, OMB Control No.
3235–0681]

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Submission for OMB Review;
Comment Request; Extension: Rules
15Ba1–1 through 15Ba1–8
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rules 15Ba1–1 to 15Ba1–8 (17 CFR
240.15Ba1–1 to 17 CFR 240.15Ba1–8)—
Registration of Municipal Advisors,
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) (the
‘‘Exchange Act’’).
On September 20, 2013 (see 78 FR
67468, November 12, 2013), the
Commission adopted Rules 15Ba1–1
31 17

CFR 200.30–3(a)(12).

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through 15Ba1–8 and Rule 15Bc4–1
under the Exchange Act to establish the
rules by which a municipal advisor
must obtain, maintain, and terminate its
registration with the Commission. In
addition, the rules interpret the
definition of the term ‘‘municipal
advisor,’’ interpret the statutory
exclusions from that definition, and
provide certain additional regulatory
exemptions. The rules became effective
on January 13, 2014; however, on
January 13, 2014, the Commission
temporarily stayed such rules until July
1, 2014 (see 79 FR 2777, January 16,
2014). Amendments to Form MA and
Form MA–I designed to eliminate
aspects of the forms that request filers
to provide certain forms of personally
identifiable information of natural
persons, including Social Security
numbers, dates of birth, and foreign
identity numbers became effective on
May 14, 2018 (see 83 FR 22190, May 14,
2018). Section 15B(a)(1) of the Exchange
Act makes it unlawful for a municipal
advisor to provide advice to or on behalf
of a municipal entity or obligated
person with respect to municipal
financial products or the issuance of
municipal securities, or to undertake
certain solicitations of a municipal
entity or obligated person, unless the
municipal advisor is registered with the
Commission. The rules, among other
things: (i) require municipal advisors to
file certain forms (i.e., Form MA, Form
MA–A, Form MA/A, Form MA–I, Form
MA–I/A, Form MA–NR, and Form MA–
W) with the Commission to obtain,
maintain, or terminate their registration
with the Commission and maintain
certain books and records in accordance
with the Exchange Act, and (ii) set forth
how certain entities may meet the
requirements of the statutory exclusions
or regulatory exemptions from the
definition of ‘‘municipal advisor.’’
Form MA
The initial application for municipal
advisor registration under Form MA is
a one-time reporting burden. The
Commission estimates that
approximately 15 respondents will
submit new Form MA applications
annually in each of the next three
years.1 The Commission further
estimates that the average amount of
time for a municipal advisor to
complete a new Form MA submission
will be approximately 3.5 hours. Thus,
the total annual burden borne by
respondents for submitting an initial
1 The estimate is derived by averaging the number
of Form MA filings over the last three years. There
were 21 Form MA submissions in 2020, 16 Form
MA submissions in 2021, and 8 Form MA
submissions in 2022.

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Form MA application will be
approximately 53 hours.2 The
Commission estimates that respondents
submitting new Form MA applications
would, on average, consult with outside
counsel for one hour, at a rate of $518/
hour. Thus, the Commission estimates
that the average total annual cost that
may be incurred by all respondents
filing new Form MA applications will
be $7,770.3
In addition to filing initial Form MA
applications, the rules require
municipal advisors to amend Form MA
once annually (Form MA–A) and after
the occurrence of any enumerated
material event (Form MA/A). The
requirement to amend Form MA applies
to all registered municipal advisors. As
of December 31, 2022, there were
approximately 446 municipal advisors
registered with the Commission and, as
noted above, the Commission
anticipates receiving 15 new Form MA
submissions annually in each of the
next three years; however, the
Commission also estimates that it will
receive an average of 35 withdrawals on
Form MA–W annually in each of the
next three years,4 and the Commission
further estimates that it will enter orders
cancelling or revoking the registration of
9 municipal advisors on average in each
of the next three years,5 for a net
decrease of 29 municipal advisors
annually in each of the next three
years.6 Therefore, the Commission
expects that the rules’ requirement to
amend Form MA will apply to
approximately 417 municipal advisors
in year one, approximately 388
municipal advisors in year two, and
approximately 359 municipal advisors
in year three. The Commission estimates
that the average amount of time for a
municipal advisor to prepare an annual
amendment to Form MA would be 1.5
hours, and the average amount of time
necessary to prepare any interim
updating amendment to Form MA other
than the required annual amendment
would be 0.5 hours. The Commission
further estimates that each municipal
advisor will likely submit two
amendments annually in each of the
next three years (one Form MA–A and
respondents × 3.5 hours = 52.5 hours.
respondents × ($518/hour × 1 hour) = $7,770.
4 See infra Form MA–W section.
5 The estimate is derived by averaging the number
of CANCELLATION–MA and REVOCATION–MA
filings over the last three years. There were 0
CANCELLATION–MA filings in 2020, 18
CANCELLATION–MA filings in 2021, and 9
CANCELLATION–MA filings in 2022. There were
0 REVOCATION–MA filings in 2020, 0
REVOCATION–MA filings in 2021, and 0
REVOCATION–MA filings in 2022. ((0 + 0) + (18
+ 0) + (9 + 0))/3 = 9.
6 15¥(35 + 9) = ¥29.
2 15
3 15

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Federal Register / Vol. 88, No. 146 / Tuesday, August 1, 2023 / Notices
one Form MA/A). Thus, the
Commission estimates that the average
annual burden borne by respondents for
amending Form MA during the threeyear period will be approximately 776
hours.7

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Form MA–I
The initial completion of Form MA–
I for each natural person who is a
person associated with a municipal
advisor is a one-time reporting burden.
The Commission estimates that it will
receive approximately 330 new Form
MA–I submissions annually in each of
the next three years.8 The Commission
further estimates that the average
amount of time for a municipal advisor
to complete a new Form MA–I
submission will be approximately three
hours. Thus, the total annual burden
borne by respondents submitting an
initial Form MA–I will be
approximately 990 hours.9
In addition, municipal advisors will
need to complete updating amendments
to Form MA–I whenever the
information previously provided therein
becomes inaccurate, or to indicate that
the individual is no longer an associated
person of the municipal advisor or no
longer engages in municipal advisory
activities on its behalf. The Commission
estimates that a Form MA–I respondent
will submit an average of 2.39 updating
amendments annually in each of the
next three years (Form MA–I/A), and
that each such amendment will take
approximately 0.5 hours to complete.10
As of December 31, 2022, there were
approximately 3,254 Form MA-Is on file
with the Commission for natural
persons actively associated with a
municipal advisor 11 and, as noted
7 ((417 respondents × 2 hours) + (388 respondents
× 2 hours) + (359 respondents × 2 hours))/3 = 776
hours.
8 The estimate is derived by averaging the number
of Form MA–I submissions over the last three years
and rounding up. There were 293 Form MA–I
submissions in 2020, 363 Form MA–I submissions
in 2021, and 332 Form MA–I submissions in 2022.
9 330 submissions × 3 hours = 990 hours.
10 The estimate is derived by averaging the
number of updating amendments submitted by
respondents over the last three years. In 2020, the
average number was 1,080 Form MA–I/As/525
municipal advisors = 2.06. In 2021, the average
number was 1,163 Form MA–I/As/477 municipal
advisors = 2.44. In 2022, the average number was
1,188 Form MA–I/As/446 municipal advisors =
2.66. Averaging the average number of updating
amendments for the last three years: (2.06 (2020) +
2.44 (2021) + 2.66 (2022))/3 = 2.39 updating
amendments per year.
11 The estimated number of active Form MA–I
filings is derived by taking the total number of Form
MA–I submissions filed with the Commission from
the inception of the rules to December 31, 2022, and
subtracting the total number of Form MA–I/A
withdrawals filed with the Commission from the
inception of the rules to December 31, 2022. 8,488
(Form MA–I submissions)¥5,234 (Form MA–I/A
withdrawals) = 3,254 active Form MA–Is on file.

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above, the Commission anticipates
receiving 330 new Form MA–I
submissions annually in each of the
next three years. Therefore, the
Commission expects the rules’
requirement to amend Form MA–I to
apply to approximately 3,584 Form
MA–Is in year one, approximately 3,914
Form MA–Is in year two, and
approximately 4,244 Form MA–Is in
year three. Thus, the Commission
estimates that the average annual
burden borne by respondents submitting
Form MA–I amendments during the
three-year period will be approximately
4,677 hours.12
Form MA–W
Withdrawal from municipal advisor
registration is a one-time reporting
burden. The Commission estimates that
it will receive an average of 35 Form
MA–W submissions annually in each of
the next three years.13 The Commission
further estimates that the average
amount of time for a municipal advisor
to complete each Form MA–W
submission will be approximately 0.5
hours. Thus, the total annual burden
borne by respondents submitting Form
MA–W will be approximately 17.5
hours.14
Form MA–NR
The designation of a U.S. agent for
service of process is a one-time
reporting burden. The Commission
estimates that approximately three
municipal advisors will have a nonresident general partner, non-resident
managing agent, or non-resident
associated person 15 and such advisors
will submit a total of approximately five
Form MA–NRs annually in each of the
next three years.16 The Commission
further estimates that each Form MA–
NR submission will take, on average,
approximately one hour to complete.
12 (((3,584 Form MA–I/As × (2.39 amendments ×
0.5 hours)) + ((3,914 Form MA–I/As × (2.39
amendments × 0.5 hours)) + ((4,244 Form MA–I/As
× (2.39 amendments × 0.5 hours)))/3 = 4,677.23
hours.
13 The estimate of 35 Form MA–W submissions is
derived by averaging the number of Form MA–W
submissions over the last three years and rounding
up. There were 28 Form MA–W submissions in
2020, 46 Form MA–W submissions in 2021, and 30
Form MA–W submissions in 2022.
14 35 respondents × 0.5 hours = 17.5 hours.
15 The estimate is derived by averaging the
number of Form MA–NR respondents over the last
three years and rounding up. There were two Form
MA–NR respondents in 2020, one Form MA–NR
respondent in 2021, and four Form MA–NR
respondents in 2022.
16 The estimate is derived by averaging the
number of Form MA–NR submissions over the last
three years. There were seven Form MA–NR
submissions in 2020, two Form MA–NR
submissions in 2021, and six Form MA–NR
submissions in 2022.

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Thus, the total annual burden borne by
respondents submitting Form MA–NR
will be approximately 5 hours.17
In addition, each respondent that
submits a Form MA–NR must also
provide an opinion of counsel on Form
MA stating that the municipal advisor
can, as a matter of law, provide the
Commission with access to its books
and records as required by law and
submit to inspection and examination
by the Commission. The Commission
estimates that such an opinion of
counsel would take three hours to
complete, at a rate of $518/hour. Thus,
the Commission estimates that the total
annual burden borne by respondents
providing an opinion of counsel will be
approximately nine hours.18 The
estimated average total cost that may be
incurred by all respondents providing
an opinion of counsel will be $4,662.19
Consent to Service of Process From
Certain Associated Persons
The consent to service of process from
certain associated persons is a one-time
recordkeeping burden. The Commission
estimates that all 15 new municipal
advisors expected to register with the
Commission annually in each of the
next three years will have to develop a
template document to use in obtaining
written consents to service of process
from their associated persons. The
Commission further estimates that each
template document will take
approximately one hour to draft. Thus,
the Commission estimates that the total
annual burden borne by respondents
developing a template document will be
approximately 15 hours.20
In addition to the one-time burden
borne by new municipal advisors that
register with the Commission each year,
the Commission estimates that
municipal advisors will need to obtain
330 new consents to service of process
from associated persons annually in
each of the next three years. The
Commission further estimates that, after
the written consents are drafted, it will
take municipal advisors approximately
0.10 hours to obtain each consent. Thus,
the Commission estimates that the total
annual burden borne by respondents
obtaining consents to service of process
will be 48 hours.21
17 3 respondents × (5 Form MA–NR submissions/
3 respondents) × 1 hour = 5 hours.
18 3 respondents × 3 hours = 9 hours.
19 3 respondents × (3 hours × $518/hour) =
$4,662.
20 15 respondents × 1 hour = 15 hours.
21 15 hours + (330 respondents × 0.1 hours) = 48
hours.

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50204

Federal Register / Vol. 88, No. 146 / Tuesday, August 1, 2023 / Notices

Books and Records To Be Made and
Maintained by Municipal Advisors
The maintenance of books and
records is an ongoing annual
recordkeeping burden. The Commission
estimates that approximately 417,388,
and 359 municipal advisors will be
subject to the books and records rules
annually in each of the next three years,
respectively. The Commission further
estimates that the average annual
burden for a municipal advisor to
comply with the books and records
requirement is approximately 182
hours. Thus, the Commission estimates
that the average annual burden borne by
respondents to comply with the books
and records requirements during the
three-year period will be approximately
70,616 hours.22
Independent Registered Municipal
Advisor Exemption
The written representations required
pursuant to the exemption when a
municipal entity or obligated person is
represented by an independent
registered municipal advisor is a onetime third-party disclosure burden. The
Commission estimates that
approximately 188 persons will seek to
rely on the independent registered
municipal advisor exemption annually
in each of the next three years.23 The
Commission further estimates that the
one-time burden of developing a
template disclosure document to use in
obtaining the written representations
will be approximately one hour. Thus,
the Commission estimates that the total
one-time burden borne by respondents
developing a template disclosure
document will be approximately 188
hours.24
The Commission also recognizes that
respondents will be subject to a
recurring burden each time they seek to
rely on the exemption. The Commission
estimates that respondents may seek the
exemption on approximately 12,170
transactions annually in each of the next
three years.25 The Commission further
respondents × 182 hours) + (388
respondents × 182 hours) + (359 respondents × 182
hours))/3 = 70,616 hours.
23 Estimate based on information obtained from
Mergent Municipal Bond Securities Database. The
estimate is derived by averaging the number of
underwriters that participated in negotiated
transactions from 2020 to 2022 and rounding up.
There were 193 underwriters that participated in
negotiated transactions in 2020, 191 underwriters
that participated in negotiated transactions in 2021,
and 178 underwriters that participated in
negotiated transactions in 2022.
24 188 respondents × 1 hour = 188 hours.
25 Estimate based on information obtained from
Mergent Municipal Bond Securities Database. The
estimate is derived by averaging the number of
negotiated deals using an underwriter each year
from 2020 to 2022 and rounding up. There were

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22 ((417

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estimates that the burden of obtaining
the written representations needed from
the municipal entity or obligated person
will be approximately 0.25 hours. Thus,
the Commission estimates that the total
annual burden borne by respondents
seeking to rely on the independent
registered municipal advisor exemption
will be approximately 3,043 hours.26
Exception to Definition of Municipal
Escrow Investments
The written representations required
to qualify for the exception for
reasonable reliance on representations
related to municipal escrow investments
is a one-time third-party disclosure
burden. The Commission believes that
state-registered investment advisers
with municipal entity clients are the
persons most likely to rely on this
exception. The Commission estimates
that approximately 432 respondents will
seek to rely on the exception.27 The
Commission further estimates that the
one-time burden of creating a template
document to use in obtaining the
written representations necessary to rely
on the exception will be approximately
one hour. Thus, the Commission
estimates that the total one-time burden
borne by respondents developing a
template document will be
approximately 432 hours.28
The Commission also recognizes that
respondents will be subject to a
recurring burden each time they seek to
rely on the exception. The Commission
estimates that the respondents will seek
to rely on the exception with
approximately 1,356 municipal entity
clients.29 The Commission further
estimates that the burden of obtaining
the required written representations
from the respondent’s client will be
approximately 0.25 hours. Thus, the
Commission estimates that the total
annual burden borne by respondents
seeking to rely on the municipal escrow
investments exemption will be
approximately 339 hours.30
14,278 negotiated deals using an underwriter in
2020, 11,855 negotiated deals using an underwriter
in 2021, and 10,376 negotiated deals using an
underwriter in 2022.
26 12,170 transactions × 0.25 hours = 3,042.5
hours.
27 The Commission estimates in this section are
based on information reported directly by stateregistered-only investment advisers (i.e., not dual
registrants) in Item 5.D.(i)(1) within Form ADV, as
of December 31, 2022. The number of stateregistered investment advisers that reported state or
municipal government entity clients in Item
5.D.(i)(1) within Form ADV = 432.
28 432 respondents × 1 hour = 432 hours.
29 The number of state or municipal government
entity clients reported by state-registered
investment advisers in Item 5.D.(i)(1) within Form
ADV = 1,356.
30 1,356 clients × 0.25 hours = 339 hours.

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Exception to Definition of Proceeds of
Municipal Securities
The written representations required
to qualify for the exception for
reasonable reliance on representations
related to proceeds of municipal
securities is a one-time third-party
disclosure burden. The Commission
believes the persons most likely to rely
on this exception are state-registered
investment advisers with clients that
are: (i) state or municipal government
entities, or (ii) certain pooled
investment vehicles in which municipal
entities invest. The Commission
estimates that approximately 479
respondents will seek to rely on the
exception.31 The Commission further
estimates that the one-time burden of
creating a template document to use in
obtaining the written representations
necessary to rely on the exception will
be approximately one hour. Thus, the
Commission estimates that the total onetime burden borne by respondents
developing a template document will be
approximately 479 hours.32
The Commission also recognizes that
respondents will be subject to a
recurring burden each time they seek to
rely on the exception. The Commission
estimates that respondents will seek to
rely on the exception in connection
with services provided to approximately
2,989 clients.33 The Commission further
estimates that the burden of obtaining
the required written representations
from the respondent’s client will be
approximately 0.25 hours. Thus, the
Commission estimates that the total
annual burden borne by respondents
31 The Commission estimates in this section are
based on information reported directly by stateregistered-only investment advisers (i.e., not dual
registrants) in Items 5.D.(i)(1) and 5.D.(f)(1) within
Form ADV, as of December 31, 2022. The number
of state-registered investment advisers that reported
pooled investment vehicle clients (other than
investment company and business development
company clients) in Item 5.D.(f)(1) within Form
ADV = 592. The percentage of state-registered
investment advisers that reported state or municipal
government entity clients in Item 5.D.(f)(1) within
Form ADV, out of the total number of stateregistered investment advisers = 8%. (592 × .08) =
approximately 47 state-registered investment
advisers with clients that are pooled investment
vehicles (other than registered investment
companies and business development companies)
in which municipal entities invest. The number of
state-registered investment advisers that reported
state or municipal government entity clients in Item
5.D.(i)(1) within Form ADV = 432. (47 + 432) = 479
respondents.
32 479 respondents × 1 hour = 479 hours.
33 The number of state or municipal government
entity clients reported by state-registered
investment advisers in Item 5.D.(i)(1) within Form
ADV = 1,356 clients. The number of pooled
investment vehicle clients (other than investment
company and business development company
clients) reported by state-registered investment
advisers in Item 5.D.(f)(1) within Form ADV = 1,633
clients. (1,356 + 1,633) = 2,989 clients.

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Federal Register / Vol. 88, No. 146 / Tuesday, August 1, 2023 / Notices
seeking to rely on the proceeds of
municipal securities exception will be
approximately 747 hours.34
Written comments are invited on: (a)
whether this proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information will have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden imposed by the
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 30 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice by August 31, 2023 to (i)
www.reginfo.gov/public/do/PRAMain
and (ii) David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or by sending an email to:
[email protected].
Dated: July 27, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–16311 Filed 7–31–23; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98003; File No. SR–FINRA–
2021–010]

Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Setting Aside
Action by Delegated Authority and
Granting Approval of a Proposed Rule
Change, as Modified by Amendment
No. 1, To Amend the Requirements for
Covered Agency Transactions Under
FINRA Rule 4210 (Margin
Requirements) as Approved Pursuant
to SR–FINRA–2015–036
July 27, 2023.

I. Introduction
A. Overview
1. Rulemaking by Self-Regulatory
Organizations
The Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) is registered
with the Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’)
as a national securities association
under the Securities Exchange Act of
1934 (‘‘Exchange Act’’ or ‘‘Act’’).1 Under
the Exchange Act, the rules of a national
securities association for its brokerdealer members 2 must, among other
things, be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling, or
processing information with respect to
(and facilitating transactions in)
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.3
Further, under the Exchange Act, the
rules of a national securities association
must not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act.4
FINRA, as a national securities
association, also is a self-regulatory
organization (‘‘SRO’’) under the
Exchange Act and its proposed rules are
subject to Commission review and
1 See

15 U.S.C. 78o–3(a).
15 U.S.C. 78c(a)(3)(B) (defining the term
‘‘member’’ when used with respect to a registered
securities association to mean any broker or dealer
who agrees to be regulated by such association and
with respect to whom the association undertakes to
enforce compliance with the Exchange Act, the
rules and regulations thereunder, and its own
rules).
3 See 15 U.S.C. 78o–3(b)(6).
4 See 15 U.S.C. 78o–3(b)(9).

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2 See

34 2,989

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published for notice and comment.5
While certain types of proposed rules
are effective upon filing, others are
subject to Commission approval before
they can go into effect.6 Under the
Exchange Act, the Commission must
approve an SRO’s proposed rule if the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the
applicable rules and regulations
thereunder; if it does not make such a
finding, the Commission must
disapprove the proposed rule.7 The SRO
has the burden to demonstrate that a
proposed rule change is consistent with
the Exchange Act and the rules and
regulations issued thereunder.8
The Exchange Act sets forth
timeframes in which the Commission
must either approve, disapprove, or
institute proceedings to determine
whether to approve or disapprove an
SRO’s proposed rule.9 If the
Commission institutes proceedings, the
Exchange Act sets forth timeframes in
which the Commission must complete
the proceedings and either approve or
disapprove the SRO’s proposed rule.10
The Commission has delegated
authority to the staff of its Division of
Trading and Markets (‘‘Division’’) to
publish notice of an SRO’s proposed
rule for comment and to approve,
disapprove, or institute proceedings to
determine whether to approve or
disapprove the proposed rule.11 Under
the Commission’s Rules of Practice, any
person aggrieved by the Division’s
exercise of delegated authority may seek
Commission review of the action by
filing with the Commission: (1) a notice
of intention to petition for review; and
(2) a subsequent petition for review
containing a clear and concise statement
of the issues to be reviewed and the
reasons why review is appropriate.12
The notice must be filed within fifteen
days of the publication in the Federal
Register of the action taken by the
Division pursuant to delegated authority
(e.g., publication of an order approving
an SRO proposed rule) and the petition
must be filed within five days after the
filing of the notice.13 The Commission
5 See

15 U.S.C. 78s(a) and (b).
15 U.S.C. 78s(b).
7 See 15 U.S.C. 78s(b)(2)(C).
8 17 CFR 201.700(b)(3).
9 See 15 U.S.C. 78s(b)(2).
10 See 15 U.S.C. 78s(b)(2)(B).
11 See 17 CFR 200.30–3(a)(12) and (57).
12 See 17 CFR 201.430(b)(1) and (2). The petition
must include exceptions to any findings of fact or
conclusions of law made, together with supporting
reasons for such exceptions based on appropriate
citations to such record as may exist. 17 CFR
201.430(b)(2).
13 See 17 CFR 201.430(b)(1) and (2).
6 See

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