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SEC Changes SRO Procedures for Filing Rule Changes
Washington, DC, October 6, 2004 - The SEC has adopted new requirements that make the rule filing process for self-regulatory organizations (SROs) more efficient and transparent while also reducing the costs to SROs and the public.
The SEC proposed changes under the Securities Act of 1933 and the Securities Exchange Act of 1934 in March 2004. The final requirements, which are substantially similar to those proposed, require each SRO to:
- file proposed rule changes electronically with the Commission through a web-based system;
- post all proposed rule changes, and any amendments thereto, on its public website within two business days, instead of within one business day as proposed;
- post and maintain a current and complete version of its rules on its website; and
- update its public website to reflect rule changes within two business days, instead of within one business day as proposed, after notification of the Commission’s approval of the rule change.
Under the final requirements, National Market System Plans are also required to post a current and complete version of their plan on their website.
The Institute supports many of the new requirements and, in a June comment letter, stated that the new requirements would enhance public access to SRO rules and rule changes, thereby promoting more meaningful discussions on the merits of SRO proposals. The Institute's letter also states that, by improving access to rules and amendments eventually adopted, the new requirements will help investment companies and others implement more quickly and effectively any new rules and amendments adopted by SROs.