SIA Submits Comments to the SEC on Self-Regulatory Organizations

The Federal Regulation Committee, Self-Regulation and Supervisory Practices Committee, Trading Committee and Compliance & Legal Division of the Securities Industry Association (SIA)* provide comments to the Securities and Exchange Commission (SEC) on proposed rule changes of self-regulatory organizations, Release No. 34-43860; File No. S7-03-01. The proposed new Rule 19b-6 would:

• require the SEC to issue a release announcing a proposed self-regulatory organization (SRO) rule change within 10 business days of filing with the SEC, or such longer time as the SRO consents to in writing;
• eliminate the five-day pre-filing and 30-day operational delay requirement for non-controversial rule changes; and
• permit almost all trading rules to become effective immediately upon filing with the SEC.

SIA notes that its primary objection to the proposed rule is its sweeping inclusion of almost all SRO “trading rules” within the scope of the rulemaking that may qualify for expedited treatment.  In addition, SIA shares deep concerns about the elimination of a 30-day operational delay for these type of rules.

*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.