Modernization of Delegations of Authority to Commission Staff and Division and Office Descriptions, 9436-9448 [2020-28819]

Download as PDF 9436 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations (i) Airbus Helicopters Alert Service Bulletin No. AS350–52.00.54, Revision 1, dated July 30, 2020. (ii) Airbus Helicopters Alert Service Bulletin No. AS355–52.00.32, Revision 1, dated July 30, 2020. (3) For Airbus Helicopters service information identified in this AD, contact Airbus Helicopters, 2701 N Forum Drive, Grand Prairie, TX 75052; telephone 972–641– 0000 or 800–232–0323; fax 972–641–3775; or at https://www.airbus.com/helicopters/ services/technical-support.html. (4) You may view this service information at the FAA, Office of the Regional Counsel, Southwest Region, 10101 Hillwood Pkwy., Room 6N–321, Fort Worth, TX 76177. For information on the availability of this material at the FAA, call 817–222–5110. (5) You may view this service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, email fedreg.legal@nara.gov, or go to: https:// www.archives.gov/federal-register/cfr/ibrlocations.html. Issued on January 29, 2021. Gaetano A. Sciortino, Deputy Director for Strategic Initiatives, Compliance & Airworthiness Division, Aircraft Certification Service. [FR Doc. 2021–03063 Filed 2–10–21; 4:15 pm] BILLING CODE 4910–13–P SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 200 [Release Nos. 33–10913; 34–90787; IA– 5656; IC–34151] Modernization of Delegations of Authority to Commission Staff and Division and Office Descriptions Securities and Exchange Commission. ACTION: Final rule. AGENCY: The Securities and Exchange Commission (the ‘‘Commission’’) is amending its rules delegating authority to the Commission’s staff to modernize these rules and more efficiently use the Commission’s resources, as well as descriptions of the responsibilities of its divisions and offices. DATES: This rule is effective February 16, 2021. FOR FURTHER INFORMATION CONTACT: J. Matthew DeLesDernier, Assistant Secretary, Office of the Secretary, (202) 551–5400, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–9040. SUPPLEMENTARY INFORMATION: The Commission is adopting new rules 17 CFR 200.19e (‘‘Article 19e’’), 17 CFR khammond on DSKJM1Z7X2PROD with RULES SUMMARY: VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 oversight, thereby preserving the Commission’s resources for other activities. In addition, certain of the descriptions are no longer an accurate reflection of the responsibilities of the CFR citation respective divisions and offices. We (17 CFR) have determined, therefore, to make a number of amendments to our rules 200.10 200.11 delegating authority to the staff and to 200.13 the division and office descriptions, as 200.13a discussed in detail below. 200.30–2 (‘‘Article 30–2’’), and 17 CFR 200.30–3b (‘‘Article 30–3b’’); we are adding and reserving 17 CFR 200.20a; and we are adopting amendments to: Commission reference Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article 10 ............................... 11 ............................... 13 ............................... 13a ............................. 13b ............................. 14 ............................... 16 ............................... 17 ............................... 19a ............................. 19c ............................. 19d ............................. 21 ............................... 21a ............................. 23a ............................. 24 ............................... 24a ............................. 26a ............................. 27 ............................... 30–1 ........................... 30–3 ........................... 30–3a ......................... 30–5 ........................... 30–6 ........................... 30–7 ........................... 30–10 ......................... 30–11 ......................... 30–13 ......................... 30–14 ......................... 30–15 ......................... 30–16 ......................... 30–18 ......................... 200.13b 200.14 200.16 200.17 200.19a 200.19c 200.19d 200.21 200.21a 200.23a 200.24 200.24a 200.26a 200.27 200.30–1 200.30–3 200.30–3a 200.30–5 200.30–6 200.30–7 200.30–10 200.30–11 200.30–13 200.30–14 200.30–15 200.30–16 200.30–18 I. Discussion The Commission is amending its rules delegating authority to the Commission’s staff. Currently, the Commission delegates to its staff certain authorities that would otherwise be exercised only by the Commission itself. These delegations are codified in our Rules of General Organization,1 alongside descriptions of the responsibilities of the divisions and offices.2 We are amending these rules to better reflect the way the Commission conducts its business and to use our resources more efficiently. In some cases, authority previously granted to a particular member of the staff is no longer appropriate, because, for example, the authority references a rule or process that has since been amended or rescinded or because the responsibility for the delegated activity should now rest with another member of the staff. In other instances, authority that is currently exercised only by the Commission could be exercised by the staff with appropriate Commission 1 Articles 30–1 through 30–19 [17 CFR 200.30–1 through 200.30–19]. 2 Articles 10 through 27 [17 CFR 200.10 through 200.27]. PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 A. Delegation to the Director and Chief Economist of the Division of Economic and Risk Analysis We are delegating authority to the Director of the Division of Economic and Risk Analysis (‘‘DERA’’) and Chief Economist to update taxonomies and schemas required for use in Commission filings and made available on the Commission’s website.3 DERA maintains on the Commission’s website a collection of taxonomies and schemas related to certain Commission structured data reporting requirements.4 A taxonomy is a list of standardized disclosure elements that covers a variety of concepts, and can contain descriptive labels, definitions, and authoritative references to standards and Commission regulations.5 Meanwhile, a schema defines the elements and attributes of a structured data report so that the report is appropriately constrained for machine-readability.6 Updates to these taxonomies and schemas are ministerial in nature. The updates generally reflect changes to the underlying standard— such as to U.S. generally accepted accounting principles—to the underlying technology, to industry practice, or to Commission requirements. We believe that delegating authority for updates to taxonomies and schemas to the Director of DERA and Chief Economist will 3 Article 30–2. 4 Taxonomies; www.sec.gov/structureddata/data_ taxonomies. 5 By referencing the same underlying taxonomy, structured data from different filers and over different reporting periods can be instantly aggregated and compared for analysis. Currently, DERA’s website hosts the U.S. Generally Accepted Accounting Principles (‘‘GAAP’’) eXtensible Business Reporting Language (‘‘XBRL’’) Taxonomy, the International Financial Reporting Standards (‘‘IFRS’’) Taxonomy, the U.S. Mutual Fund Risk/ Return XBRL Taxonomy, the SEC Reporting Taxonomies (‘‘SRT’’), the Record of Credit Ratings XBRL Taxonomy, the Draft Closed-End Fund Taxonomy, and the Draft Variable Insurance Product Taxonomy. 6 Currently, DERA’s website hosts the Order Handling Data Schema for Broker-Dealers, the Exchange Transaction Fee Summary Schema for National Market System Stocks, the Draft Volcker Rule Metrics Instructions and Technical Specifications, and the Draft Financial Products Markup Language (‘‘FpML’’) and FIXML Schemas for Security-Based Swap Data Repositories. E:\FR\FM\16FER1.SGM 16FER1 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations conserve our resources and increase efficiency, as these updates are ministerial in nature and in the normal course of business. In addition, we are updating the description of the responsibilities of the Director of DERA and Chief Economist in our rules to include that person’s current title and responsibilities.7 khammond on DSKJM1Z7X2PROD with RULES B. Delegation to the Director of the Division of Trading and Markets We are amending our rules delegating authority to the Director of the Division of Trading and Markets (‘‘TM’’), in some instances delegating new authority and, in others, eliminating current authority. 1. Delegation of Advance Notice Authority We are delegating authority to the Director of TM for the publication of an advance notice (‘‘Advance Notice’’) filed by a registered clearing agency designated as systemically important (a ‘‘DCA’’) by the Financial Stability Oversight Council; 8 for the issuance of a request that the DCA provide any information necessary to assess the effect a proposed change would have on the nature or level of risks associated with such DCA’s payment, clearing, or settlement activities and the sufficiency of any proposed risk management techniques; 9 for the extension of the period of review when the proposed changes in an Advance Notice raise novel or complex issues and publication of notice thereof; 10 and for the publication of a withdrawal of an Advance Notice.11 The current process associated with Advance Notice processing requires Commission action to, among other things, publish notice of an Advance Notice and any amendments thereto; make an additional information request; extend the period of review of the Advance Notice when the proposed changes in an Advance Notice raise novel or complex issues; or publish notice of a withdrawal of an Advance Notice. These actions do not raise significant issues for Commission consideration and are more administrative in nature in that they provide notice to the public on the status of an Advance Notice proposal and seek public comment for information to assist the Commission as it considers each such action individually. We believe that delegating authority for Advance Notices will conserve our 7 Article 23a. 30–3(a)(91). 9 Article 30–3(a)(93). 10 Article 30–3(a)(94). 11 Article 30–3(a)(92). 8 Article VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 resources and increase efficiency, as the processing functions for Advance Notices are, in each instance, procedural matters that are ministerial in nature and in the normal course of business. In addition, this delegation will harmonize the staff’s authority over issuance of Advance Notices and related selfregulatory organization (‘‘SRO’’) rule change filings. Finally, the expedited process that would result from a delegation of authority to affect these matters would provide TM and the Commission additional time to analyze and consider a final determination on an Advance Notice proposal after the comment period has closed. 2. Delegation of Security-Based Swap Authority to the Director of TM and the Director of the Division of Examinations We are delegating authority to the Director of TM and the Director of the Division of Examinations (‘‘Examinations’’) 12 in connection with applications for registration as a security-based swap dealer or major security-based swap participant (‘‘SBS Entities’’).13 We believe that permitting the Director of TM and the Director of Examinations to share this authority will more efficiently allocate agency resources. First, we are delegating authority to authorize issuance of orders granting ongoing registration to SBS Entities pursuant to 17 CFR 240.15Fb2– 1(d) 14 under the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’).15 Once an applicant is conditionally registered as an SBS entity, the Commission may grant or deny ongoing registration. The Commission will grant ongoing registration if it finds that the requirements of section 15F(b) of the Exchange Act are satisfied.16 We believe that delegating the authority to the Director of TM and the Director of Examinations to make the necessary findings and grant ongoing registration will make efficient use of our resources, while still reserving for Commission consideration any recommendation to deny ongoing registration. Similar delegated authority exists for the 12 Examinations was previously known as the Office of Compliance Inspections and Examinations, or ‘‘OCIE.’’ See Public Statement on the Renaming of the Office of Compliance Inspections and Examinations to the Division of Examinations (Dec. 17, 2020), available at https:// www.sec.gov/news/public-statement/jointstatement-division-examinations. 13 See infra footnotes 14–20 and accompanying text. 14 Rule 15Fb2–1(d). 15 15 U.S.C. 78a et seq.; Article 30–3(a)(86); Article 30–18(m)(1)(i). 16 17 CFR 240.15Fb2–1(e). PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 9437 Director of TM to grant registration as a broker or dealer.17 Second, we are delegating authority to the Director of TM and the Director of Examinations to authorize the issuance of orders cancelling registrations of SBS Entities, or pending applications for registration, if such SBS Entities or applicants for registration are no longer in existence or have ceased to do business as an SBS Entity.18 We believe that delegated authority to cancel the registrations of, or applications for registration by, non-operational SBS Entities will make efficient use of our resources, while still reserving for Commission consideration any recommendation to revoke the registration of an operating SBS Entity. Similar delegated authority exists for staff to cancel registrations of nonoperational brokers and dealers.19 Third, we are delegating to the Director of TM and the Director of Examinations authority to determine whether notices of withdrawal from registration by SBS Entities shall become effective sooner or later than the default 60-day waiting period.20 We believe that delegated authority to change the waiting period for withdrawal of registration as an SBS Entity will make efficient use of our resources by allowing staff to determine, and communicate to registrants, the date on which a withdrawal of registration will become effective. 3. Delegation of SBS Entity Application Authority We are also delegating authority to the Director of TM to grant certain applications made by SBS Entities. Section 201.194 of our Rules of Practice provides for applications by SBS Entities for statutorily disqualified associated persons to effect or be involved in effecting security-based swaps.21 We are delegating authority to the Director of TM to grant such applications.22 We believe that delegated authority to grant these applications will make efficient use of the Commission’s resources, while still preserving the Commission’s ability to deny applications. We have already delegated authority to the Director of TM to grant certain similar applications with respect to an SRO.23 17 Article 30–3(a)(3). 30–3(a)(87); Article 30–18(m)(1)(ii). 19 Article 30–3(a)(3)(ii). 20 Article 30–3(a)(88); Articles 30–18(m)(1)(iii). 21 Rule 194 (17 CFR 201.194). 22 Article 30–3(a)(90). 23 Article 30–3(a)(4)(i) (delegating authority to the Director of TM to grant applications with respect to membership in, association with a member of, or 18 Article E:\FR\FM\16FER1.SGM Continued 16FER1 9438 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations 4. Delegation of Substituted Compliance Authority We are delegating authority to the Director of TM to authorize the publication in the Federal Register of notices that a complete application for substituted compliance has been submitted to the Commission, under 17 CFR 240.0–13.24 Rule 0–13 provides the procedures for filing applications to request a substituted compliance or listed jurisdiction order under the Exchange Act.25 We believe that delegating the authority to make the necessary findings will make efficient use of our resources. The action is administrative in nature and provides notice to the public of the completion of an application, beginning the process of seeking public comment for information to assist the Commission as it considers substituted compliance with respect to an application. khammond on DSKJM1Z7X2PROD with RULES 5. Eliminated Delegations of Authority We are eliminating certain current delegations of authority. First, we are eliminating the following delegations of authority because they refer to rules or processes that have themselves been eliminated: • Authority to grant requests for exemptions from former 17 CFR 240.10a–1(f) (rule 10a–1(f) under the Exchange Act), which we have previously rescinded.26 • Authority to publish notice of the filing of a designation plan with respect to national market system securities, or any proposed amendment thereto, and to approve such plan or amendment under former 17 CFR 242.600 (rule 600),27 which rule has already been amended to eliminate the relevant process. • Authority to review and, where appropriate, approve the selection by the Municipal Securities Rulemaking Board (‘‘MSRB’’) of public representatives to serve on the MSRB participation in, a self-regulatory organization and for other relief as to persons who are subject to an applicable disqualification where such relationships or other relief have been approved or recommended by a self-regulatory organization); see also 17 CFR 200.30–4(a)(5) [Article 30–4(a)(5)] (delegating authority to the Director of the Division of Enforcement to grant or deny applications made pursuant to 17 CFR 201.193 [Rule 193 of the Commission’s Rules of Practice] by barred individuals for consent to associate with other types of registrants); Article 30–1(10) (delegating authority to the Director of CF to grant or deny applications for relief from being considered an ‘‘ineligible issuer’’ under 17 CFR 230.403 [Securities Act Rule 405]). 24 Rule 0–13 under the Exchange Act; Article 30– 3(a)(89). 25 17 CFR 240.0–13. 26 Current Article 30–3(a)(15). 27 Current Article 30–3(a)(37). VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 under former section 15B(b)(2)(B) of the Exchange Act,28 which has previously been amended to eliminate the relevant process. • Authority to grant exemptions from former 17 CFR 240.3b–9 (rule 3b–9 under the Exchange Act),29 because the rule was rescinded by the Commission after being invalidated by the U.S. Court of Appeals for the District of Columbia Circuit.30 • Authority to grant exemptions from 17 CFR 240.17a–23 (Rule 17a–23 under the Exchange Act),31 which has been rescinded. • Authority to issue notices related to a transaction fee pilot program that has been vacated.32 Second, we are eliminating the following delegations of authority to the Director of TM because the contemplated activities are appropriately within the purview of other divisions and offices: • Authority to grant or deny exemptions, either unconditionally or on specified terms and conditions, from 17 CFR 240.15c2–12 (Rule 15c2–12 under the Exchange Act),33 which is similar to authority we are delegating to the Director of the Office of Municipal Securities (‘‘OMS’’).34 • Authority to grant requests for exemptions from the tender offer provisions of 17 CFR 240.14e–1 (Rule 14e–1 of Regulation 14E under the Exchange Act),35 which rule is administered by the Division of Corporation Finance (‘‘CF’’).36 • Authority to designate officers empowered to administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, contracts, agreements, or other records in the course of investigations instituted by the Commission under section 21(d) of the Exchange Act,37 which is similar to authority currently exercised by the Division of Enforcement.38 • Authority, in certain nonpublic investigatory proceedings, to grant requests of persons to procure copies of 28 Current Article 30–3(a)(40). Article 30–3(a)(45). 30 See Exchange Act Release No. 56502 (Sept. 24, 2007) [72 FR 56562 (Oct. 3, 2007)]; see also American Bankers Association v. SEC, 804 F.2d 739 (D.C. Cir. 1986). 31 Current Article 30–3(a)(60). 32 Current Article 30–3(a)(84). 33 Current Article 30–3(a)(48). 34 See infra Part II.C. 35 Current Article 30–3(a)(67). 36 Article 30–1(f)(16)(ii) [17 CFR 200.30– 1(f)(16)(ii)]. 37 Current Article 30–3(b). 38 Article 30–4(a)(1) [17 CFR 200.30–4(a)(2)]. 29 Current PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 the transcript of their testimony,39 which is similar to authority currently exercised by the Division of Enforcement.40 Finally, we are eliminating current authority to extend trading privileges and to deny applications for unlisted trading privileges (‘‘UTP’’) by national securities exchanges under 17 CFR 240.12f–1 (Rule 12f–1 under the Exchange Act), provided that any applicant exchange denied unlisted traded privileges is advised of its right to have such denial reviewed by the Commission.41 The UTP Act of 1994 changed the way UTP was extended by no longer requiring applications for UTP to be filed with and approved by the Commission. Prior to the enactment of the UTP Act, the Commission received hundreds of applications to extend UTP each year. Although section 12(f)(2) of the Act and Rule 12f–1 are not part of that UTP extension process and instead allow for the suspension and reinstatement of trading for securities that are already trading UTP, the Division has rarely used its delegated authority under these provisions so the delegation is being eliminated.42 C. Delegation to the Director of the Office of Municipal Securities We are delegating additional authority to the Director of OMS to carry out functions—with respect to the Municipal Securities Rulemaking Board (‘‘MSRB’’), municipal securities, and municipal securities dealers—that are currently delegated to the Director of TM. These authorities include: • Authority to publish notices of proposed rule changes filed by the MSRB, to approve such proposed rule changes, to find good cause to approve a proposed rule change earlier than 30 days after publication of such proposed rule change, to disapprove a proposed rule change subject to certain requirements, and related authorities; 43 • Authority to extend for a period not exceeding 90 days from the date of publication of notice of the filing of a proposed rule change by the MSRB the period during which the Commission must by order approve or disapprove 39 Current Article 30–3(c). 30–4(a)(2) [17 CFR 200.30–4(a)(2)]. 41 Current Article 30–3(a)(2). 42 Article 30–3(a)(2) (removed and reserved). We are also making a technical correction to update the name of TM in a delegation. Article 30–3(l). In addition, we are correcting a scrivener’s error in a delegation to the Director of TM. Article 30– 3(a)(47). We are also making a technical correction to a delegation to the Director of TM. Article 30– 3(a)(49). 43 Article 30–3a(a)(2). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(12). 40 Article E:\FR\FM\16FER1.SGM 16FER1 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations khammond on DSKJM1Z7X2PROD with RULES the proposed rule change or institute proceedings to determine whether the proposed rule change should be disapproved, and related authorities; 44 • Authority to institute proceedings to determine whether a proposed rule change of the MSRB should be disapproved, to provide to the MSRB notice of the grounds for disapproval under consideration, and to extend for a period not exceeding 240 days from the date of publication of notice of the filing of the proposed rule during which the Commission must issue an order approving or disapproving the proposed rule, and related authorities; 45 • Authority to temporarily suspend a change in the rules of the MSRB; 46 • Authority to reduce the period before which a proposed rule change can become operative, and to reduce the period between an MSRB submission of a filing and a pre-filing notification; 47 • Authority to review and grant or deny exemptions from the rule filing requirements of section 19(b) of the Exchange Act,48 in a case where the MSRB elects to incorporate by reference one or more rules of another selfregulatory organization, subject to certain terms and conditions; 49 • Authority to issue orders granting registration of municipal securities dealers within 45 days of the filing of an application for registration; 50 • Authority to grant, deny, and revoke applications for confidential treatment filed pursuant to section 24(b) of the Exchange Act and 17 CFR 240.24b–2 (rule 24b–2 thereunder); 51 • Authority to notify and consult with the appropriate regulatory agency about a registered municipal securities dealer whose appropriate regulatory agency is not the Commission prior to any examination of that registered municipal securities dealer; 52 44 Article 30–3a(a)(7). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(31). 45 Article 30–3a(a)(11). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(57). 46 Article 30–3a(a)(12). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(58). 47 Article 30–3a(a)(13). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(59). 48 15 U.S.C. 78s(b). 49 Article 30–3a(a)(14). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(76). 50 Article 30–3a(a)(3). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(13). 51 Article 30–3a(a)(4). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(19). 52 Article 30–3a(a)(5). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(23). VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 • Authority to notify such an appropriate regulatory agency about any examination of such a registered municipal securities dealer by the Commission; 53 • Authority to request from such an appropriate regulatory agency a copy of the report of any examination it conducted of any such registered municipal securities dealer and any data supplied to it in connection with such examination; 54 • Authority to furnish to such an appropriate regulatory agency on request a copy of the report of any examination of any such municipal securities dealer conducted by the Commission and any data supplied to it in connection with such examination; 55 • Authority to grant or deny exemptions, either unconditionally or on specified terms and conditions, from Rule 15c2–12 under the Exchange Act; 56 • Authority to administer the provisions of 17 CFR 240.24c–1 (Rule 24c–1 under the Exchange Act); 57 • Authority to administer the provisions of section 24(d) of the Exchange Act; 58 and • Authority to consult on behalf of the Commission pursuant to section 18(t)(1) of the Federal Deposit Insurance Act 59 with respect to matters described in Article 19a.60 We believe it is appropriate for the Director of OMS—like the Director of TM—to exercise such functions and that delegating this authority will conserve our resources and improve efficiency. In addition, we are updating the description of the responsibilities of the Director of OMS in our rules to include that person’s current responsibilities.61 53 Article 30–3a(a)(6)(i). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(24)(i). 54 Article 30–3a(a)(6)(ii). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(24)(ii). 55 Article 30–3a(a)(6)(iii). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(24)(iii). 56 Article 30–3a(a)(8). This authority is current delegated to the Director of TM, but we are transferring it to the Director of OMS. See current Article 30–3(a)(48). See supra Part II.B. 57 Article 30–3a(a)(9). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(53). 58 Article 30–3a(a)(10). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(a)(54). 59 12 U.S.C. 1828(t)(1). 60 Article 30–3a(c). This authority is similar to authority already delegated to the Director of TM. See Article 30–3(g). 61 Article 19d. PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 9439 D. Delegation to the Director of the Division of Investment Management The Commission is eliminating a current delegation to the Director of the Division of Investment Management (‘‘IM’’). The Commission previously delegated to the Director of IM the same authority with respect to certain rules under the Securities Act of 1933 (‘‘Securities Act’’) 62 that it also delegated to each Regional Director.63 This delegation to the Director of IM refers to the delegation to each Regional Director that has since been eliminated by the Commission.64 We are therefore eliminating the delegation to the Director of IM that refers to the previously eliminated delegation to each Regional Director.65 E. Delegation to the Chief Accountant The Commission is delegating authority to its Chief Accountant to share with certain specified persons nonpublic information and files with the concurrence of the head of the division or office responsible for such information and files.66 Rule 24c–1 under the Exchange Act provides that the Commission may, in its discretion and upon a showing that such information is needed, provide nonpublic information in its possession to certain persons if they provide such assurances of confidentiality as the Commission deems appropriate.67 The Commission has previously delegated similar authority to several other divisions and offices.68 The Chief Accountant’s responsibilities related to the Public Company Accounting Oversight Board (the ‘‘PCAOB’’) occasionally requires the sharing of nonpublic information. We believe that providing the Chief Accountant with the same authority delegated to other divisions and offices will make 62 15 U.S.C. 77a et seq. article 30–5(h)(1). 64 Id. (providing that Director of the Division of Investment Management shall have the same authority with respect to the Securities Act of 1933 and 17 CFR 230.251 through 230.262 (rules 251 through 263 thereunder) as that delegated to each Regional Director in Article 30–6(b) and (c)). 65 See article 30–5(h)(1) (removed and reserved). 66 Article 30–11(c). 67 17 CFR 240.24c–1(b). 68 Article 30–1(f)(14) (delegating similar authority to the Director of the Division of Corporate Finance); article 30–3(a)(53) (delegating similar authority to the Director of the Division of Trading and Markets); article 30–4(a)(7) (delegating similar authority to the Director of the Division of Enforcement); article 30–5(c–1)(3) (delegating similar authority to the Director of the Division of Investment Management); article 30–15(m)(1) (delegating similar authority to the General Counsel of the Commission); article 30–18(a) (delegating similar authority to the Director of the Office of Compliance Inspections and Examinations). 63 Current E:\FR\FM\16FER1.SGM 16FER1 9440 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations coordination with the PCAOB more efficient. F. Delegation to the General Counsel The Commission is clarifying a delegation of authority to the General Counsel. We have previously delegated to the General Counsel authority to approve non-expert, non-privileged, factual testimony by present or former staff members, and the production of non-privileged documents, when validly subpoenaed, and to assert governmental privileges on behalf of the Commission in litigation where the Commission appears as a party or in response to third party subpoenas.69 Our rules specify, however, that those functions are not delegated to the General Counsel with respect to proceedings in which the Chairman or the General Counsel determines that separation of functions requirements or other circumstances would make inappropriate the General Counsel’s exercise of such delegated functions.70 Rather, with respect to such proceedings, such functions had been delegated to the Executive Assistant to the Chairman.71 The Executive Assistant to the Chairman is a position that is no longer in use. We are therefore removing and reserving the provisions relating to description of and delegation to the Executive Assistant to the Chairman.72 We have determined, instead, to delegate such functions in those circumstances to the Secretary of the Commission.73 This delegation is similar to a prior delegation that we made to the Secretary for functions otherwise carried out by the General Counsel when the Chairman or General Counsel determines that separation of functions requirements or other circumstances would make exercise of the delegated functions by the General Counsel inappropriate.74 khammond on DSKJM1Z7X2PROD with RULES G. Delegation to the Director of the Division of Examinations The Commission is eliminating certain current delegations of authority to the Director of Examinations that Examinations does not use. The Commission has previously delegated to the Director of Examinations authority to grant, deny, and revoke applications for confidential treatment filed pursuant to section 24(b) of the Exchange Act and 69 Article 30–14(g). 30–14(i). 71 Current Article 30–14(i). 72 Article 16 (removed and reserved); Article 30– 16 (removed and reserved). 73 Article 30–14(i). 74 Article 30–14(k). In addition, we are correcting a typographical error in the rules delegating authority to the General Counsel. Article 30–14(b). 70 Article VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 rule 24b–2 thereunder; 75 to administer the provisions of section 24(d) of the Exchange Act; 76 to notify the Securities Investor Protection Corporation (‘‘SIPC’’) of facts concerning the activities and the operational and financial condition of any registered broker or dealer which is or appears to be a member of SIPC and which is in or approaching financial difficulty within the meaning of section 5 of the Securities Investor Protection Act of 1970, as amended; 77 to delay certain inspections of certain newly registered broker-dealers under section 15(b)(2)(C) of the Exchange Act; 78 and, in certain circumstances, to grant or deny exemptions from 17 CFR 240.17a–25 (rule 17a–25 under the Exchange Act), among other authorities.79 The Commission is also eliminating a duplicative delegation that authorizes the issuance of orders canceling registrations or pending applications of registration of certain investment advisers.80 We understand that the Director of Examinations does not exercise the above authorities, and we have determined that it is appropriate to eliminate them. In addition, we are updating the name and description of the responsibilities of the Director of Examinations in our rules to include the current name and the responsibilities related to security-based swaps.81 H. Delegation to the Director of the Office of Credit Ratings The Commission is delegating authority to the Director of the Office of Credit Ratings (‘‘OCR’’) for functions that are currently delegated to the Director of TM and others. First, we are delegating authority to grant and deny applications for confidential treatment 75 Current Article 30–18(b). Article 30–18(e) (providing for administration of provisions related to certain records obtained from foreign securities authorities). 77 15 U.S.C. 78aa et seq.; current Article 30–18(f). Currently, rather than exercising this authority directly, it is Examinations’s practice to notify the Division of Trading and Markets, which will then determine whether to exercise its Director’s authority to notify SIPC. See Article 30–3(d) (delegating similar authority to the Director of Trading and Markets). 78 Current Article 30–18(g). 79 Current Article 30–18(h). 80 Current Article 30–18(k)(2). We believe that this authority is duplicative of authority separately delegated to the Director of Examinations to authorize the issuance of orders cancelling registration or applications for registration of certain investment advisers. Article 30–18(i)(1). As discussed above, we are also delegating authority to the Director of Examinations that is similar to the authority delegated to the Director of TM concerning security-based swaps. Article 30–18(m); see also supra footnotes 14–20 and accompanying text. 81 Article 19c. 76 Current PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 filed under section 24(b) of the Exchange Act,82 and to revoke a grant of confidential treatment for any such application.83 The authority to grant and deny applications for confidential treatment and revoke a grant of confidential treatment is delegated to several members of our staff.84 Second, we are delegating authority to administer the provisions of rule 24c–1 under the Exchange Act,85 which the Commission has previously delegated to other members of the staff.86 Finally, we are delegating authority to administer the provisions of section 24(d) of the Exchange Act,87 which the Commission has similarly delegated to other members of the staff.88 We believe it is appropriate for the Director of OCR to exercise such functions and that delegating this authority will conserve our resources and improve efficiency. In addition, we are adding a description of the responsibilities of the Director of OCR in our rules.89 I. Additional Amendments to Division and Office Descriptions and Delegations We are also amending the description for certain other divisions and offices to better reflect the current name or duties of those divisions and offices.90 In addition, we are amending a number of our division and office descriptions and delegations to remove gender-specific language from them.91 82 15 U.S.C. 78x(b). 30–3b(a). 84 See Article 30–1(f)(3) (delegating similar authority to the Director of CF); Article 30–3(a)(19) (delegating similar authority to the Director of TM); Article 30–5(c–1)(4) (delegating similar authority to the Director of IM). 85 Article 30–3b(b)(1). 86 See Article 30–1(f)(14) (delegating similar authority to the Director of CF); Article 30–3(a)(53) (delegating similar authority to the Director of TM); Article 30–4(a)(7) (delegating similar authority to the Director of the Division of Enforcement); Article 30–5(c–1)(3) (delegating similar authority to the Director of IM); Article 30–11(d) (delegating similar authority to the Chief Accountant); Article 30– 14(m)(1) (delegating similar authority to the General Counsel); Article 30–18(a) (delegating similar authority to the Director of Examinations). 87 15 U.S.C. 78x(d). 88 See Article 30–1(f)(15) (delegating similar authority to the Director of CF); Article 30–3(a)(54) (delegating similar authority to the Director of TM); Article 30–4(a)(9) (delegating similar authority to the Director of the Division of Enforcement); Article 30–5(c–1)(4) (delegating similar authority to the Director of IM); Article 30–14(m)(2) (delegating similar authority to the General Counsel); Article 30–17(b) (delegating similar authority to the Director of the Office of International Affairs). 89 Article 19e. 90 Article 11; Article 13; Article 13b; Article 24a; Article 26a; Article 27. We have also determined to eliminate the description of the Chief Management Analyst position, as this position is no longer in use. Article 17 (removed and reserved). 91 Article 10; Article 11; Article 13a; Article 13b; Article 14; Article 21; Article 21a; Article 24; 83 Article E:\FR\FM\16FER1.SGM 16FER1 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations II. Administrative Law Matters List of Subjects in 17 CFR Part 200 § 200.11 Headquarters Office—Regional Office relationships. The Commission finds, in accordance with the Administrative Procedure Act (‘‘APA’’), that these amendments relate solely to agency organization, procedure, or practice.92 Accordingly, the APA’s provisions regarding notice of rulemaking and opportunity for public comment are not applicable. These changes are therefore effective on February 16, 2021. In accord with the APA, we find that there is good cause to establish an effective date less than 30 days after publication of these rules.93 These rules do not substantially affect the rights or obligations of nonagency parties and pertain to increasing efficiency of internal Commission operations. For the same reasons, the provisions of the Small Business Regulatory Enforcement Fairness Act are not applicable.94 Additionally, the provisions of the Regulatory Flexibility Act,95 which apply only when notice and comment are required by the APA or other law, are not applicable.96 These amendments do not contain any collection of information requirements as defined by the Paperwork Reduction Act of 1995.97 Further, because these amendments impose no new burdens on private parties, the Commission does not believe that the amendments will have any impact on competition for purposes of section 23(a)(2) of the Exchange Act.98 Administrative practice and procedure, Authority delegations (Government agencies). (a) * * * (2) Each Regional Director is responsible for the direction and supervision of the Regional Director’s work force and for the execution of all programs in the Regional Director’s office’s region as shown in paragraph (b) of this section, in accordance with established policy, and reports, on enforcement matters, to the Director or Deputy Director of the Division of Enforcement who is responsible for Regional Office enforcement matters and, on examination matters, to the Director of the Division of Examinations. * * * * * ■ 4. Section 200.13 is amended by revising paragraphs (a), (d)(1), (e), and (f) to read as follows: III. Statutory Authority This rule is adopted pursuant to statutory authority granted to the Commission, including section 19 of the Securities Act of 1933, 15 U.S.C. 77s; sections 4A, 4B, and 23 of the Exchange Act, 15 U.S.C. 78d–1, 78d–2, and 78w; section 38 of the Investment Company Act of 1940, 15 U.S.C. 80a–37; section 211 of the Investment Advisers Act of 1940, 15 U.S.C. 80b–11; and section 3 of the Sarbanes-Oxley Act of 2002, 15 U.S.C. 7202. khammond on DSKJM1Z7X2PROD with RULES 9441 Article 27; Article 30–1; Article 30–3; Article 30– 3a; Article 30–5; Article 30–6; Article 30–7; Article 30–10; Article 30–11; Article 30–13; Article 30–14; Article 30–15; Article 30–18. In addition, we are correcting certain outdated statutory references. Article 30–1; Article 30–2; Article 30–3; Article 30– 5; Article 30–6; Article 30–7; Article 30–10. 92 5 U.S.C. 553(b)(3)(A). 93 5. U.S.C. 553(d). 94 See 5 U.S.C. 804(3)(C) (the term ‘‘rule’’ does not include ‘‘any rule of agency organization, procedure, or practice that does not substantially affect the rights or obligations of non-agency parties’’). 95 5 U.S.C. 60 et seq. 96 See 5 U.S.C. 601(2). 97 See 5 CFR 1320.3. 98 15 U.S.C. 78w(a)(2). VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 Text of Rule Amendments For the reasons set out in the preamble, the Commission is amending title 17, chapter II of the Code of Federal Regulations as follows: PART 200—ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION AND REQUESTS Subpart A—Organization and Program Management 1. The authority citation for part 200, subpart A, continues to read in part as follows: ■ Authority: 15 U.S.C. 77c, 77o, 77s, 77z– 3, 77sss, 78d, 78d–1, 78d–2, 78o–4, 78w, 78ll(d), 78mm, 80a–37, 80b–11, 7202, and 7211 et seq., unless otherwise noted. * * * * * Sections 200.27 and 200.30–6 are also issued under 15 U.S.C. 77e, 77f, 77g, 77h, 77j, 77q, 77u, 78e, 78g, 78h, 78i, 78k, 78m, 78o, 78o–4, 78q, 78q–1, 78t–1, 78u, 77hhh, 77uuu, 80a–41, 80b–5, and 80b–9. Section 200.30–1 is also issued under 15 U.S.C. 77f, 77g, 77h, 77j, 78c(b) 78l, 78m, 78n, 78o(d). Section 200.30–3 is also issued under 15 U.S.C. 78b, 78d, 78f, 78k–1, 78q, 78s, and 78eee. Section 200.30–5 is also issued under 15 U.S.C. 77f, 77g, 77h, 77j, 78c(b), 78l, 78m, 78n, 78o(d), 80a–8, 80a–20, 80a–24, 80a–29, 80b–3, 80b–4. * * * * * 2. Section 200.10 is revised to read as follows: ■ § 200.10 The Commission. The Commission is composed of five members, not more than three of whom may be members of the same political party. The members are appointed by the President, with the advice and consent of the Senate, for 5-year terms, one term ending each year. The Chairman is designated by the President pursuant to the provisions of section 3 of Reorganization Plan No. 10 of 1950 (3 CFR, 1949–1953 Comp., p. 1006). The terms Chair, Chairperson, Chairman, Chairwoman, and the like may be used interchangeably. The Commission is assisted by a staff, which includes lawyers, accountants, engineers, financial security analysts, investigators, and examiners, as well as administrative and clerical employees. 3. Section 200.11 is amended by revising paragraph (a)(2) to read as follows: ■ PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 § 200.13 Chief Operating Officer. (a) The Chief Operating Officer is responsible for developing and executing the overall management policies of the Commission for all its operating divisions and staff offices. The Chief Operating Officer also provides executive direction to, and exercises administrative control over, the Office of Human Resources, the Office of Acquisitions, the Office of Financial Management, the Office of Support Operations, the EDGAR Business Office, and the Office of Information Technology. * * * * * (d) * * * (1) Implementing the goals of the Chairman and the mission of the Commission; * * * * * (e) Overseeing Commission-specific application of performance measures, procurement reforms, personnel reductions, financial management improvements, telecommunications and information technology policies, and other Government-wide systems reforms; and (f) Reforming the Commission’s management practices. ■ 5. Section 200.13a is amended by revising paragraphs (a) and (c) to read as follows: § 200.13a The Secretary of the Commission. (a) The Secretary of the Commission is responsible for the preparation of the daily and weekly agendas of Commission business; the orderly and expeditious flow of business at formal Commission meetings; the maintenance of the Official Minute record of all actions of the Commission; and the E:\FR\FM\16FER1.SGM 16FER1 9442 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations service of all instruments of formal Commission action. The Secretary is custodian of the official seal of the Commission, and also has the responsibility for authenticating documents. * * * * * (c) In addition, the Secretary administers the Commission’s Library. ■ 6. Section 200.13b is revised to read as follows: § 200.13b Affairs. Director of the Office of Public The Director of the Office of Public Affairs is the chief public information officer for the Commission, and oversees activities that communicate the Commission’s actions to those interested in or affected by them. The Director’s responsibilities include serving as liaison with the news media, dissemination of information to the news media and to the general public, supervision of internal and some external publications and of audiovisual presentations. Responsibilities of the Director, and of the Director’s staff, include special projects that may be deemed appropriate to communicate information on Commission actions. ■ 7. Section 200.14 is amended by revising paragraph (b) to read as follows: § 200.14 Office of the Administrative Law Judges. * * * * * (b) The Chief Administrative Law Judge performs the duties of an Administrative Law Judge under the Administrative Procedure Act and the duties delegated to the Chief Administrative Law Judge by the Commission that are compatible with those duties. The Chief Administrative Law Judge is responsible for the orderly functioning of the Office of Administrative Law Judges apart from the conduct of administrative proceedings and acts as liaison between that Office and the Commission. § 200.16 [Removed and Reserved] 8. Section 200.16 is removed and reserved. ■ § 200.17 [Removed and Reserved] 9. Section 200.17 is removed and reserved. ■ 10. Section 200.19c is revised to read as follows: khammond on DSKJM1Z7X2PROD with RULES ■ § 200.19c Director of the Division of Examinations. The Director of the Division of Examinations (‘‘Examinations’’) is responsible for the compliance inspections and examinations relating to the regulation of exchanges, national VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 securities associations, clearing agencies, securities information processors, the Municipal Securities Rulemaking Board, brokers and dealers, municipal securities dealers, municipal advisors, security-based swap data repositories, security-based swap dealers, major security-based swap participants, transfer agents, investment companies, and investment advisers, under sections 13(n)(2), 15B, 15C(d)(1), 15F, and 17(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(n)(2), 78o–4, 78o–5(d)(1), 78o–10, and 78q(b)), section 31(b) of the Investment Company Act of 1940 (15 U.S.C. 80a–30(b)), and section 204 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–4). 11. Section 200.19d is revised to read as follows: ■ § 200.19d Director of the Office of Municipal Securities. The Director of the Office of Municipal Securities is responsible to the Commission for the administration and execution of the Commission’s programs under the Securities Exchange Act of 1934 relating to the registration and regulation of municipal advisors, the practices of municipal securities brokers and dealers, and oversight of the Municipal Securities Rulemaking Board. The functions involved include recommending the adoption and amendment of Commission rules, reviewing proposed rule changes of the Municipal Securities Rulemaking Board, and responding to interpretive and noaction requests. 12. Section 200.19e is added to read as follows: ■ § 200.19e Ratings. Director of the Office of Credit The Director of the Office of Credit Ratings is responsible to the Commission for the administration and execution of the Commission’s programs under the Securities Exchange Act of 1934 relating to the registration and regulation of nationally recognized statistical rating organizations. The functions involved in the regulation of such entities include compliance inspections and examinations, recommending the adoption and amendment of Commission rules, and responding to interpretive and no-action requests. § 200.20a ■ [Added and Reserved] 13. Add reserved § 200.20a. 14. Section 200.21 is revised to read as follows: ■ PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 § 200.21 The General Counsel. (a) The General Counsel is the chief legal officer of the Commission. The General Counsel is responsible for the representation of the Commission in judicial proceedings in which it is involved as a party or as amicus curiae, for directing and supervising all civil litigation involving the Commission in the United States District Courts, except for law enforcement actions filed on behalf of the Commission, for directing and supervising the Commission’s responsibilities under the Bankruptcy Code and all related litigation, and for representing the Commission in all cases in appellate courts. The General Counsel is responsible for the review of cases which the Division of Enforcement recommends be referred to the Department of Justice with a recommendation for criminal prosecution. In addition, the General Counsel is responsible for advising the Commission at its request or at the request of any division director or office head, or on the General Counsel’s own motion, with respect to interpretations involving questions of law; for the conduct of administrative proceedings relating to the disqualification of lawyers from practice before the Commission; for conducting preliminary investigations, as described in 17 CFR 202.5(a), into potential violations of 17 CFR 201.102(e) by attorneys; for the preparation of the Commission comments to the Congress on pending legislation; and for the drafting, in conjunction with appropriate divisions and offices, of legislative proposals to be sponsored by the Commission. The General Counsel is responsible for providing advice to Commission attorneys on professional responsibility issues relating to their official duties. The General Counsel is further responsible for investigating allegations of professional misconduct by Commission staff and, where appropriate, making referrals to state professional boards or societies. The General Counsel is also responsible for the review and clearance of the form and content of articles, treatises, and prepared speeches and addresses by members of the staff relating to the Commission or to the statutes and rules administered by the Commission. The General Counsel also is responsible for coordinating and reviewing the interpretive positions of the various divisions and offices. In addition, the General Counsel is responsible for appropriate disposition of all Freedom of Information Act and Privacy Act appeals pursuant to the authority delegated in § 200.30–14, and is the E:\FR\FM\16FER1.SGM 16FER1 khammond on DSKJM1Z7X2PROD with RULES Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations Commission’s advisor with respect to legal problems arising under the Freedom of Information Act, the Privacy Act, the Federal Reports Act, the Federal Advisory Committee Act, the Civil Service laws and regulations, the statutes and rules applicable to the Commission’s procurement, contracting, fiscal and related administrative activities, and other statutes and regulations of a similar nature applicable to a number of Government agencies. (b)(1) The General Counsel is also responsible for assisting members of the Commission in the preparation of the opinions of the Commission, and for the preparation of opinions and decisions on motions and certifications of questions and rulings by administrative law judges in the course of administrative law proceedings, except: (i) In cases where, pursuant to a waiver by the parties of separation of function requirements, another Division or Office of the Commission’s staff undertakes to prepare an opinion or decision, in which cases the General Counsel may assist in such preparation; and (ii) With respect to administrative proceedings against lawyers under § 201.102(e) of this chapter (Rule 102(e) of the Commission’s Rules of Practice) or other cases in which the Chairman or the General Counsel has determined that separation of function requirements or other circumstances would make inappropriate the exercise of such functions by the General Counsel. (2) The General Counsel deals with general problems arising under the Administrative Procedure Act, including the revision or adoption of rules of practice. The General Counsel is also responsible for the exercise of such review functions with respect to adjudicatory matters as are delegated to the General Counsel by the Commission pursuant to 101 Stat. 1254 (15 U.S.C. 78d–1, 78d–2) or as may be otherwise delegated or assigned to the General Counsel. (c) The General Counsel also is responsible to the Commission for the administration of the Government in the Sunshine Act for publicly certifying, pursuant to § 200.406, that, in the General Counsel’s opinion, particular Commission meetings may properly be closed to the public. In the absence of the General Counsel, the Solicitor to the Commission shall be deemed the General Counsel for purposes of § 200.406. In the absence of the General Counsel and the Solicitor, the most senior Associate General Counsel available shall be deemed the General Counsel for purposes of § 200.406. In VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 the absence of the General Counsel, the Solicitor, and every Associate General Counsel, the most senior Assistant General Counsel available shall be deemed the General Counsel for purposes of § 200.406. In the absence of the General Counsel, the Solicitor, every Associate General Counsel and every Assistant General Counsel, such attorneys as the General Counsel may designate (in such order of succession as the General Counsel directs) shall exercise the responsibilities imposed by § 200.406. 15. Section 200.21a is amended by revising paragraph (a) to read as follows: ■ § 200.21a The Ethics Counsel. (a) The Ethics Counsel is responsible for administering the Commission’s Ethics Program and for interpreting subpart M of this part and 5 CFR part 2635. The Ethics Counsel serves as Counselor to the Commission and its staff with regard to ethical and conflicts of interest questions and acts as the Commission’s liaison on such matters with the Office of Human Resources, the Office of Government Ethics, the Office of the Inspector General, and the Department of Justice. When appropriate and subject to the authority of, and in consultation with, the Inspector General, the Ethics Counsel shall inquire into alleged violations of subparts C, F, and M of this part, and 5 CFR part 2635. * * * * * 16. Section 200.23a is revised to read as follows: ■ § 200.23a Director of the Division of Economic and Risk Analysis and Chief Economist. The Director of the Division of Economic and Risk Analysis and Chief Economist serves as economic advisor to the Commission and its staff and is responsible to the Commission for sound economic analysis of market events and conditions; economic analysis in support of Commission rulemaking; economic and risk analysis to inform and support the Commission’s enforcement actions and its examination program; development of financial and market data analysis tools; preparation of economic statistics; promotion of data standards; review and guidance of staff research and publications; and assisting the Commission and its staff in responding to policy, legislative, or international issues relating to securities markets. 17. Section 200.24 is revised to read as follows: ■ PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 § 200.24 9443 Office of Financial Management. This Office, under the direction of the Chief Financial Officer, is responsible to the Chief Operating Officer, Chairman and Commission for the internal financial management and programming functions of the Securities and Exchange Commission. These functions include: Budgeting, accounting, payroll and administrative audit. The Chief Financial Officer, and the Chief Financial Officer’s designees, serve as liaison to the Commission before the Office of Management and Budget and Congressional Appropriations Committees on appropriation matters, and the Treasury Department and the General Accounting Office on financial and programming matters. ■ 18. Section 200.24a is revised to read as follows: § 200.24a Director of the Office of Investor Education and Advocacy. The Director of the Office of Investor Education and Advocacy is responsible to the Chairman for the Commission’s investor education and investor assistance programs. These programs include, but are not limited to: (a) Educating investors through inperson outreach, digital and social media, and other communication channels, including the Commission’s website for individual investors, Investor.gov, by preparing and distributing to the public educational content describing the operations of the securities markets, developing strategies for prudent investor behavior, and increasing public knowledge of the functions of the Commission. (b) Implementing and administering a nationwide system for resolving investor complaints against individuals and entities regulated by the Commission by processing complaints received from individual investors and seeking to ensure that regulated individuals and entities process and respond to such complaints. (c) Providing information to investors and others who inquire about individuals and entities regulated by the Commission, the operation of the securities markets, or the functions of the Commission. (d) Advising the Commission and its staff, and exchanging information with domestic and international regulators and self-regulatory organizations, about problems frequently encountered by investors and possible solutions to them. (e) Transmitting to other offices and divisions of the Commission information provided by investors which concerns the responsibilities of these offices and divisions. E:\FR\FM\16FER1.SGM 16FER1 9444 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations (f) Providing for greater investor input in Commission rulemaking proceedings. ■ 19. Section 200.26a is revised to read as follows: § 200.26a Office of Information Technology. The Office of Information Technology is responsible for the analysis, design programming, operation, and maintenance of all agency information systems; developing and implementing long-range technology plans and programs; coordinating all information systems analysis activities being considered or carried out by other divisions and offices, and furnishing such organizations with appropriate assistance and support; providing technical advice to the staff in connection with development of Commission rules and regulations having technology implications; providing expert advice on the Commission’s surveillance of technology in the securities industry; evaluating and recommending new technology concepts and capabilities for application within the Commission; and developing technology and automation capabilities and support within the Commission. § 200.27 [Amended] 20. Section 200.27 is revised by: a. Removing the words ‘‘his or her’’ and adding in their place the words ‘‘the Regional Director’s’’; ■ b. Removing the words ‘‘by the Deputy Director of the Division of Enforcement who is responsible for Regional Office enforcement matters’’ and adding in their place the words ‘‘by the Director or Deputy Director of the Division of Enforcement’’; and ■ c. Removing the words ‘‘Office of Compliance Inspections and Examinations’’ and adding in their place the words ‘‘Division of Examinations’’. ■ 21. Section 200.30–1 is amended by: ■ a. Revising the introductory text and paragraph (a)(3); ■ b. In paragraph (f)(2)(i), removing the word ‘‘ommission’’ and adding in its place the word ‘‘omission’’; and ■ c. Revising paragraphs (f)(5) and (g)(2). The revisions read as follows: khammond on DSKJM1Z7X2PROD with RULES ■ ■ § 200.30–1 Delegation of authority to the Director of the Division of Corporation Finance. Pursuant to sections 4A and 4B of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78d–1, 78d–2), the Securities and Exchange Commission hereby delegates, until the Commission orders otherwise, the following functions to the Director of the Division VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 of Corporation Finance, to be performed by the Director or under the Director’s direction by such person or persons as may be designated from time to time by the Chairman of the Commission: (a) * * * (3) To grant applications for confidential treatment of contract provisions pursuant to § 230.406 of this chapter (Rule 406 under the Act); to issue orders scheduling hearings on such applications and to deny any such application as to which the applicant waives the applicant’s right to a hearing, provided such applicant is advised of the applicant’s right to have such denial reviewed by the Commission. * * * * * (f) * * * (5) To grant or deny applications filed pursuant to section 12(g)(1) of the Act (15 U.S.C. 78l(g)(1)) for extensions of time within which to file registration statements pursuant to that section, provided the applicant is advised of the applicant’s right to have any such denial reviewed by the Commission. * * * * * (g) * * * (2) In any case in which the Director of the Division of Corporation Finance believes it appropriate, the Director may submit the matter to the Commission. * * * * * ■ 22. Section 200.30–2 is added to read as follows: § 200.30–2 Delegation of authority to the Director of the Division of Economic and Risk Analysis and Chief Economist. Pursuant to sections 4A and 4B of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78d–21, 78d–22), the Securities and Exchange Commission hereby delegates, until the Commission orders otherwise, the following functions to the Director of the Division of Economic and Risk Analysis and Chief Economist, to be performed by that person or under that person’s direction by such person or persons as may be designated from time to time by the Chairman of the Commission: (a) To update taxonomies and schemas required for use in Commission filings and made available on the Commission’s website. (b) [Reserved] ■ 23. Section 200.30–3 is amended by: ■ a. Revising the introductory text; ■ b. Removing and reserving paragraph (a)(2); ■ c. In paragraphs (a)(5), (8), and (9), removing the word ‘‘his’’ and adding in its place the words ‘‘the applicant’s’’; ■ d. Removing and reserving paragraphs (a)(15), (37), and (40); PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 e. In paragraph (a)(43), removing the citation ‘‘Pub. L. 87–592, 76 Stat. 394’’ and adding in its place the citation ‘‘sections 4A and 4B of the Securities Exchange Act of 1934, as amended’’; ■ f. Removing and reserving paragraph (a)(45); ■ g. Revising paragraph (a)(47); ■ h. Removing and reserving paragraph (a)(48); ■ i. In paragraph (a)(49): ■ i. Removing ‘‘Rule 609 thereunder (17 CFR 242.609)’’ and adding in its place ‘‘17 CFR 242.609 (Rule 609 thereunder)’’; and ■ ii. Removing the words ‘‘that section and any rules or regulations promulgated thereunder’’ and adding in their place ‘‘Rule 609’’; ■ j. Removing and reserving paragraphs (a)(60), (67), and (84); ■ k. Adding paragraphs (a)(86) through (94); ■ l. Removing and reserving paragraphs (b) and (c); and ■ m. Revising paragraph (l). The revisions and additions read as follows: ■ § 200.30–3 Delegation of authority to Director of the Division of Trading and Markets. Pursuant to sections 4A and 4B of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78d–1, 78d–2), the Securities and Exchange Commission hereby delegates, until the Commission orders otherwise, the following functions to the Director of the Division of Trading and Markets to be performed by the Director or under the Director’s direction by such person or persons as may be designated from time to time by the Chairman of the Commission: (a) * * * (47) Pursuant to section 15(a)(2) of the Act, 15 U.S.C. 78o(a)(2), to review and, either unconditionally or on specified terms and conditions, grant exemptions from the broker-dealer registration requirements of section 15(a)(1) of the Act, 15 U.S.C. 78o(a)(1), to Government securities brokers or Government securities dealers that have registered with the Commission under section 15C(a)(2) of the Act, 15 U.S.C. 78o– 5(a)(2), solely with respect to effecting any transactions in, or inducing or attempting to induce the purchase or sale of, any security principally backed by a guaranty of the United States. * * * * * (86) To authorize the issuance of orders granting on-going registration to security-based swap dealers and major security-based swap participants based on the security-based swap dealer’s or major security-based swap participant’s application, pursuant to § 240.15Fb2– 1(e) of this chapter (Rule 15Fb2–1(e)). E:\FR\FM\16FER1.SGM 16FER1 khammond on DSKJM1Z7X2PROD with RULES Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations (87) To authorize the issuance of orders canceling the registration of security-based swap dealers and major security-based swap participants registered pursuant to § 240.15Fb2–1 of this chapter (Rule 15Fb2–1) if such persons are no longer in existence or have ceased to do business as securitybased swap dealers or major securitybased swap participants, pursuant to § 240.15Fb3–3(a) of this chapter (Rule 15Fb3–3(a)). (88) To determine by order, pursuant to § 240.15Fb3–2(b) of this chapter (Rule 15Fb3–2(b)), whether notices of withdrawal of registration filed by security-based swap dealers or major security-based swap participants pursuant to section 15F(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–10(b)) shall become effective sooner than the normal 60 day period provided in Rule 15Fb3–2(b) (§ 240.15Fb3–2(b) of this chapter). (89) To authorize the publication in the Federal Register of notices that a complete application for substituted compliance has been submitted to the Commission, pursuant to § 240.0–13 of this chapter (Rule 0–13). (90) To grant applications made pursuant to § 201.194 of this chapter (Rule 194 of the Commission’s Rules of Practice). (91) Pursuant to section 19(b) of the Act, 15 U.S.C. 78s(b), and § 240.19b– 4(n) of this chapter (Rule 19b–4), to publish notices of advance notices filed by designated clearing agencies. (92) Pursuant to section 19(b) of the Act, 15 U.S.C. 78s(b), and § 240.19b– 4(n) of this chapter (Rule 19b–4), to publish notices of withdrawals of advance notices filed by designated clearing agencies. (93) Pursuant to section 806(e)(1) of the Payment, Clearing, and Settlement Supervision Act of 2010, 12 U.S.C. 5465(e)(1)(D), to require a designated clearing agency to provide any information necessary to assess the effect the proposed change would have on the nature or level of risks associated with the designated clearing agency’s payment, clearing, or settlement activities and the sufficiency of any proposed risk management techniques. (94) Pursuant to section 806(e)(1) of the Payment, Clearing, and Settlement Supervision Act of 2010, 12 U.S.C. 5465(e)(1)(H), to extend the review period for an additional 60 days for proposed changes that raise novel or complex issues and provide the designated clearing agency with prompt written notice of such extension. * * * * * (l) Notwithstanding anything in paragraphs (a) through (k) of this VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 section, in any case in which the Director of the Division of Trading and Markets believes it appropriate, the Director may submit the matter to the Commission. ■ 24. Section 200.30–3a is amended by: ■ a. In the introductory text, removing the words ‘‘him or under his’’ and adding in their place ‘‘the Director or under the Director’s’’; ■ b. Adding paragraphs (a)(2) through (14); ■ c. Redesignating paragraph (b) as paragraph (c); and ■ d. Adding new paragraph (b). The additions read as follows. § 200.30–3a Delegation of authority to the Director of the Office of Municipal Securities. * * * * * (a) * * * (2) Pursuant to section 19(b) of the Act, 15 U.S.C. 78s(b), and § 240.19b–4 of this chapter (Rule 19b–4), to publish notices of proposed rule changes filed by the Municipal Securities Rulemaking Board and to approve such proposed rule changes, and to find good cause to approve a proposed rule change earlier than 30 days after the date of publication of such proposed rule change and to publish the reasons for such finding. Pursuant to section 19(b) of the Act, 15 U.S.C. 78s(b), and Rule 19b–4 (§ 240.19b–4 of this chapter), to disapprove a proposed rule change, provided that, with respect to a particular proposed rule change, if two (2) or more Commissioners object in writing to the Director within five (5) business days of being notified by the Director that the Office intends to exercise its authority to disapprove that particular proposed rule change, then the delegation of authority to approve or disapprove that proposal is withdrawn, and the Director shall either present a recommendation to the Commission or institute pursuant to delegated authority proceedings to determine whether the proposed rule change should be disapproved. In addition, pursuant to section 19(b)(10) of the Act, 15 U.S.C. 78s(b)(10), to notify the Municipal Securities Rulemaking Board that a proposed rule change does not comply with the rules of the Commission relating to the required form of a proposed rule change, and to determine that a proposed rule change is unusually lengthy and complex or raises novel regulatory issues and to inform the Municipal Securities Rulemaking Board of such determination. (3) Pursuant to section 15B(a) of the Act [15 U.S.C. 78o–4(a)], to authorize the issuance of orders granting registration of municipal securities PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 9445 dealers within forty-five days of the filing of an application for registration as a municipal securities dealer (or within such longer period as to which the applicant consents). (4)(i) To grant and deny applications for confidential treatment filed pursuant to section 24(b) of the Act (15 U.S.C. 78x(b)) and § 240.24b–2 of this chapter (Rule 24b–2 thereunder); (ii) To revoke a grant of confidential treatment for any such application. (5) Pursuant to section 17(b) of the Act (15 U.S.C. 78q(b)), prior to any examination of a registered municipal securities dealer whose appropriate regulatory agency is not the Commission, to notify and consult with the appropriate regulatory agency for such municipal securities dealer. (6) Pursuant to section 17(c)(3) of the Act, 15 U.S.C. 78q(c)(3), in regard to municipal securities dealers for which the Commission is not the appropriate regulatory agency: (i) To notify the appropriate regulatory agency of any examination conducted by the Commission of any such municipal securities dealer; (ii) To request from the appropriate regulatory agency a copy of the report of any examination of any such municipal securities dealer conducted by such appropriate regulatory agency and any data supplied to it in connection with such examination; and (iii) To furnish to the appropriate regulatory agency on request a copy of the report of any examination of any such municipal securities dealer conducted by the Commission and any data supplied to it in connection with such examination. (7) Pursuant to section 19(b)(2)(A) of the Act, 15 U.S.C. 78s(b)(2)(A), to extend for a period not exceeding 90 days from the date of publication of notice of the filing of a proposed rule change by the Municipal Securities Rulemaking Board pursuant to section 19(b)(1) of the Act, 15 U.S.C. 78s(b)(1), the period during which the Commission must by order approve or disapprove the proposed rule change or institute proceedings to determine whether the proposed rule change should be disapproved and to determine whether such longer period is appropriate and publish the reasons for such determination. (8) Pursuant to 17 CFR 15c2–12(e) (Rule 15c2–12(e)), to grant or deny exemptions, either unconditionally or on specified terms and conditions, from Rule 15c2–12. (9) To administer the provisions of § 240.24c–1 of this chapter; provided that access to nonpublic information as defined in § 240.24c–1 shall be provided E:\FR\FM\16FER1.SGM 16FER1 khammond on DSKJM1Z7X2PROD with RULES 9446 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations only with the concurrence of the head of the Commission division or office responsible for such information or the files containing such information. (10) To administer the provisions of section 24(d) of the Act (15 U.S.C. 78x(d)). (11) Pursuant to section 19(b)(2) of the Act, 15 U.S.C. 78s(b)(2), and section 19(b)(3) of the Act, 15 U.S.C. 78s(b)(3), to institute proceedings to determine whether a proposed rule change of the Municipal Securities Rulemaking Board should be disapproved and to provide to the Municipal Securities Rulemaking Board notice of the grounds for disapproval under consideration. If the Commission has not taken action on a proposed rule change for which delegated authority has been withdrawn under paragraph (a)(12) of this section prior to the expiration of the applicable time period specified in section 19(b)(2) of the Act, 15 U.S.C. 78s(b)(2), then the Director shall institute pursuant to delegated authority proceedings to determine whether the proposed rule change should be disapproved. In addition, pursuant to section 19(b)(2)(B) of the Act, 15 U.S.C. 78s(b)(2)(B), to extend for a period not exceeding 240 days from the date of publication of notice of the filing of a proposed rule change pursuant to section 19(b)(1) of the Act, 15 U.S.C. 78s(b)(1), the period during which the Commission must issue an order approving or disapproving the proposed rule change and to determine whether such longer period is appropriate and publish the reasons for such determination. (12) Pursuant to section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C), to temporarily suspend a change in the rules of the Municipal Securities Rulemaking Board. (13) Pursuant to § 240.19b–4(f)(6)(iii) of this chapter (Rule 19b–4(f)(6)(iii)), to reduce the period before which a proposed rule change can become operative, and to reduce the period between an Municipal Securities Rulemaking Board submission of a filing and a pre-filing notification. (14) Pursuant to section 36 of the Act (15 U.S.C. 78mm), to review and grant or deny exemptions from the rule filing requirements of section 19(b) (15 U.S.C. 78s(b)) of the Act, in a case where the Municipal Securities Rulemaking Board elects to incorporate by reference one or more rules of another self-regulatory organization, provided that the following specified terms and conditions are met: (i) The Municipal Securities Rulemaking Board, when electing to incorporate rules of another selfregulatory organization, has requested to VerDate Sep<11>2014 15:57 Feb 12, 2021 Jkt 253001 incorporate rules other than trading rules (e.g., the Municipal Securities Rulemaking Board has requested to incorporate rules such as margin, suitability, arbitration); (ii) The Municipal Securities Rulemaking Board, when electing to incorporate rules of another selfregulatory organization has requested to incorporate by reference categories of rules (rather than to incorporate individual rules within a category); and (iii) The Municipal Securities Rulemaking Board has reasonable procedures in place to provide written notice to its members each time a change is proposed to the incorporated rules of another self-regulatory organization. (b) To consult on behalf of the Commission pursuant to section 18(t)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1828(t)(1)) with respect to matters described in § 200.19a. * * * * * ■ 25. Section 200.30–3b is added to read as follows: § 200.30–3b Delegation of authority to Director of the Office of Credit Ratings. Pursuant to the provisions of Public Law 100–181, 101 Stat. 1254, 1255 (15 U.S.C. 78d–1, 78d–2), the Securities and Exchange Commission hereby delegates, until the Commission orders otherwise, the following functions to the Director of the Office of Credit Ratings to be performed by the Director or under the direction of the Director by such person or persons as may be designated from time to time by the Chairman of the Commission: (a) With respect to the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.): (1) To grant and deny applications for confidential treatment filed pursuant to section 24(b) of the Act (15 U.S.C. 78x(b)) and § 240.24b–2 of this chapter (Rule 24b–2 thereunder); (2) To revoke a grant of confidential treatment for any such application. (b) With respect to the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.): (1) To administer the provisions of § 240.24c–1 of this chapter; provided that access to nonpublic information as defined in § 240.24c–1 shall be provided only with the concurrence of the head of the Commission division or office responsible for such information or the files containing such information. (2) To administer the provisions of section 24(d) of the Act (15 U.S.C. 78x(d)). § 200.30–5 ■ [Amended] 26. Section 200.30–5 is amended by: PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 a. In the introductory text: i. Removing the citation ‘‘Pub. L. 87– 592, 76 Stat. 394’’ and adding in its place the citation ‘‘sections 4A and 4B of the Securities Exchange Act of 1934, as amended,’’; and ■ ii. Removing the words ‘‘him or under his’’ and adding in their place the words ‘‘the Director or under the Director’s’’; ■ b. In paragraph (a)(4)(ii), removing the word ‘‘he’’ and adding in its place the words ‘‘the applicant’’; ■ c. In paragraph (b–1)(1), removing the word ‘‘him’’ and adding in its place the words ‘‘the Director’’; ■ d. In paragraph (b–1)(2): ■ i. Removing the word ‘‘he’’ and adding in its place the words ‘‘the Director’’; and ■ ii. Removing the word ‘‘him’’ and adding in its place the words ‘‘the Director’’; ■ e. Removing and reserving paragraph (h)(1); and ■ f. In paragraph (h)(2), removing the word ‘‘he’’ and adding in its place the words ‘‘the Director’’. ■ 27. Section 200.30–6 is amended by: ■ a. In the introductory text: ■ i. Removing ‘‘the provisions of Pub. L. 87–592, 76 Stat. 394’’ and adding in its place ‘‘sections 4A and 4B of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78d–1, 78d–2)’’; and ■ ii. Removing the words ‘‘him or under his’’ and adding in their place the words ‘‘the Regional Director or under the Regional Director’s’’; and ■ b. Revising paragraph (e). The revision reads as follows: ■ ■ § 200.30–6 Delegation of authority to Regional Directors. * * * * * (e) Notwithstanding anything in paragraphs (a) through (d) of this section, in any case in which the Regional Director believes it appropriate, the Regional Director may submit the matter to the Commission. § 200.30–7 [Amended] 28. Section 200.30–7 is amended by: a. In the introductory text: i. Removing ‘‘the provisions of Pub. L. 87–592, 76 Stat. 394 (15 U.S.C. 78d–1)’’ and adding in its place ‘‘sections 4A and 4B of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78d–1, 78d–2)’’; and ■ ii. Removing the words ‘‘him or under his’’ and adding in their place the words ‘‘the Secretary or under the Secretary’s’’; ■ b. In paragraph (d): ■ i. Removing the citation ‘‘§ 200.30– 14(i)’’ and adding in its place the citation ‘‘§ 200.30–14(h) and (j)’’; and ■ ■ ■ E:\FR\FM\16FER1.SGM 16FER1 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations ii. Removing the citation ‘‘§ 200.30– 14(j)’’ and adding in its place the citation ‘‘§ 200.30–14(i) and (k)’’; and ■ c. In paragraph (e): ■ i. Removing the words ‘‘the foregoing’’ and adding in their place ‘‘paragraphs (a) through (d) of this section’’; and ■ ii. Removing the words ‘‘he or she’’ and adding in their place the words ‘‘the Secretary’’. ■ § 200.30–10 § 200.30–13 [Amended] 29. Section 200.30–10 is amended by: a. In the introductory text: i. Removing ‘‘the provisions of Pub. L. 87–592, 76 Stat. 394’’ and adding in its place ‘‘sections 4A and 4B of the Securities Exchange Act of 1934, as amended’’; and ■ ii. Removing the word ‘‘his’’ and adding in its place ‘‘the Chief Administrative Law Judge’s’’; ■ b. In paragraph (a)(6): ■ i. Removing the word ‘‘subpenas’’ and adding ‘‘subpoenas’’; and ■ ii. Removing ‘‘Rule 232 of the Commission’s Rules of Practice, 201.232 of this chapter’’ and adding in its place ‘‘§ 201.232 of this chapter (Rule 232 of the Commission’s Rules of Practice)’’; and ■ c. In paragraph (c): ■ i. Removing the words ‘‘the foregoing’’ and adding in their place ‘‘paragraphs (a) and (b) of this section’’; and ■ ii. Removing the words ‘‘he or she’’ and adding in their place ‘‘the Chief Administrative Law Judge’’. ■ 30. Section 200.30–11 is amended by: ■ a. In the introductory text, removing the words ‘‘him or her or under his or her’’ and adding in their place the words ‘‘the Chief Accountant or under the Chief Accountant’s’’; ■ b. In paragraph (a)(4): ■ i. Removing the words ‘‘he or she’’ and adding in their place the words ‘‘the Chief Accountant’’; and ■ ii. Removing the citation ‘‘§ 202.140’’ and adding in its place ‘‘§ 202.140 of this chapter’’; ■ c. In paragraph (b)(2), removing the words ‘‘his or her’’ and adding in their place the words ‘‘the Chief Accountant’s’’; ■ d. Redesignating paragraph (c) as paragraph (d); ■ e. Adding new paragraph (c); and ■ f. In newly redesignated paragraph (d): ■ i. Removing the words ‘‘the foregoing’’ and adding in their place ‘‘paragraphs (a) through (c) of this section’’; and ■ ii. Removing the words ‘‘he or she’’ and adding in their place the words ‘‘the Chief Accountant’’. The addition reads as follows: khammond on DSKJM1Z7X2PROD with RULES ■ ■ ■ § 200.30–11 Delegation of authority to the Chief Accountant. * * * VerDate Sep<11>2014 * * 15:57 Feb 12, 2021 (c) To administer the provisions of § 240.24c–1 of this chapter; provided that access to nonpublic information as defined in § 240.24c–1 shall be provided only with the concurrence of the head of the Commission division or office responsible for such information or the files containing such information. * * * * * Jkt 253001 [Amended] 31. Section 200.30–13 is amended by: a. In the introductory text, removing the words ‘‘him or her, or under his or her’’ and adding in their place the words ‘‘the Chief Financial Officer or under the Chief Financial Officer’s’’; and ■ b. In paragraph (c), removing the words ‘‘his or her’’ and adding in their place the words ‘‘the Secretary of the Treasury’s’’. ■ ■ § 200.30–14 32. Section 200.30–14 is amended by: ■ a. In the introductory text, removing the words ‘‘him or her or under his or her’’ and adding in their place the words ‘‘the General Counsel or under the General Counsel’s’’; ■ b. In paragraph (b), removing the words ‘‘and amicus curiae’’ and adding in their place the words ‘‘an amicus curiae’’; ■ c. In paragraph (h)(1)(iii), removing the word ‘‘his’’ and adding in its place the word ‘‘an’’; ■ d. In paragraph (i): ■ i. Removing the words ‘‘paragraph (g) of this section, the functions described in paragraph (g)’’ and adding in their place the words ‘‘paragraph (h) of this section, the functions described in paragraph (h)’’; ■ ii. Removing the words ‘‘Executive Assistant to the Chairman’’ and adding in its place the words ‘‘Secretary of the Commission’’; and ■ iii. Removing the citation ‘‘§ 200.30– 16’’ and adding in its place the citation ‘‘§ 200.30–7’’; and ■ e. In paragraph (l): ■ i. Removing the citation ‘‘paragraphs (g) or (i)’’ and adding in its place ‘‘paragraph (h) or (j)’’; and ■ ii Removing the words ‘‘he or she’’ and adding in their place the words ‘‘the General Counsel’’. [Amended] 33. Section 200.30–15 is amended by removing the words ‘‘him or her or under his or her’’ and adding in their place the words ‘‘the Chief Operating Officer or under the Chief Operating Officer’s’’. ■ PO 00000 Frm 00015 [Removed and Reserved] 34. Section 200.30–16 is removed and reserved. ■ 35. Section 200.30–18 is amended by: ■ a. Revising the section heading and introductory text; ■ b. Removing and reserving paragraphs (b), (e) through (h), and (k)(2); ■ c. In paragraph (l)(1), removing the words ‘‘him or her’’ and adding in their place the words ‘‘the member’’; ■ d. Redesignating paragraph (m) as paragraph (n); ■ e. Adding new paragraph (m); and ■ f. In newly redesignated paragraph (n): ■ i. Removing the words ‘‘the foregoing’’ and adding in their place ‘‘paragraphs (a) through (m) of this section’’; and ■ ii. Removing the words ‘‘the OCIE’’ and adding in their place the word ‘‘Examinations’’. The addition and revisions read as follows: ■ [Amended] ■ § 200.30–15 § 200.30–16 9447 Fmt 4700 Sfmt 4700 § 200.30–18 Delegation of authority to Director of the Division of Examinations. Pursuant to the provisions of Public Law 100–181, 101 Stat. 1254, 1255 (15 U.S.C. 78d–1, 78d–2), the Securities and Exchange Commission hereby delegates, until the Commission orders otherwise, the following authority to the Director of the Division of Examinations (‘‘Examinations’’) to be performed by the Director or by such other person or persons as may be designated from time to time by the Chairman of the Commission: * * * * * (m) With respect to the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.): (1) Under section 15F(b) of the Act (15 U.S.C. 78o–10(b)): (i) To authorize the issuance of orders granting on-going registration to security-based swap dealers and major security-based swap participants based on the security-based swap dealer’s or major security-based swap participant’s application, pursuant to § 240.15Fb2– 1(e) of this chapter (Rule 15Fb2–1(e)); (ii) To authorize the issuance of orders canceling the registration of security-based swap dealers and major security-based swap participants registered pursuant to § 240.15Fb2–1 of this chapter (Rule 15Fb2–1) if such persons are no longer in existence or have ceased to do business as securitybased swap dealers or major securitybased swap participants, pursuant to § 240.15Fb3–3(a) of this chapter (Rule 15Fb3–3(a)); and (iii) To determine by order, pursuant to § 240.15Fb3–2(b) of this chapter (Rule 15Fb3–2(b)), whether notices of withdrawal of registration filed by E:\FR\FM\16FER1.SGM 16FER1 9448 Federal Register / Vol. 86, No. 29 / Tuesday, February 16, 2021 / Rules and Regulations security-based swap dealers or major security-based swap participants pursuant to section 15F(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–10(b)) shall become effective sooner than the normal 60 day waiting period provided in Rule 15Fb3–2(b) (§ 240.15Fb3–2(b) of this chapter). * * * * * By the Commission. Dated: December 22, 2020. Vanessa A. Countryman, Secretary. [FR Doc. 2020–28819 Filed 2–12–21; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission I. Background A. Establishment of the Indexing Methodology 18 CFR Part 342 [Docket No. RM20–14–000] Five-Year Review of the Oil Pipeline Index Federal Energy Regulatory Commission, Department of Energy. ACTION: Order establishing index level. AGENCY: The Federal Energy Regulatory Commission (Commission) issues this Final Order concluding its five-year review of the index level used to determine annual changes to oil pipeline rate ceilings. The Commission establishes an index level of Producer Price Index for Finished Goods plus 0.78% (PPI–FG+0.78%) for the five-year period commencing July 1, 2021. DATES: This order is effective February 16, 2021. FOR FURTHER INFORMATION CONTACT: Evan Steiner (Legal Information), Office of the General Counsel, 888 First Street NE, Washington, DC 20426, (202) 502–8792 Monil Patel (Technical Information), Office of Energy Market Regulation, 888 First Street NE, Washington, DC 20426, (202) 502–8296 SUPPLEMENTARY INFORMATION: 1. On June 18, 2020, the Commission issued a Notice of Inquiry initiating its five-year review to establish the oil pipeline index level for the July 1, 2021 to June 30, 2026 time period.1 The NOI requested comment regarding: (a) The proposed index level of Producer Price Index for Finished Goods plus 0.09% (PPI–FG+0.09%); and (b) any alternative khammond on DSKJM1Z7X2PROD with RULES SUMMARY: 1 Five-Year Review of the Oil Pipeline Index, 171 FERC ¶ 61,239, at P 1 (2020) (NOI). VerDate Sep<11>2014 15:57 Feb 12, 2021 methodologies for calculating the index level. 2. For the reasons discussed below, we adopt an index level of PPI– FG+0.78%. The departure from the NOI results from: (a) Trimming the data set to the middle 80% of cost changes; (b) adopting Designated Carriers’ 2 proposal to adjust the data set to remove the effects of the Commission’s 2018 income tax policy change for Master Limited Partnership (MLP)-owned pipelines; and (c) updated Form No. 6 filings and other corrections to the data set. The Commission’s indexing calculations and other data analysis are contained in Attachment A to this order. As discussed below, we decline to adopt other changes to the index calculation proposed by commenters. Jkt 253001 3. The Energy Policy Act of 1992 (EPAct 1992) required the Commission to establish a ‘‘simplified and generally applicable’’ ratemaking methodology 3 that was consistent with the just and reasonable standard of the Interstate Commerce Act (ICA).4 To implement this mandate, the Commission issued Order No. 561 5 establishing an indexing methodology that allows oil pipelines to change their rates subject to certain ceiling levels as opposed to making cost-of-service filings.6 4. In Order No. 561, the Commission committed to review the index level every five years to ensure that it adequately reflects changes to industry 2 Designated Carriers include Buckeye Partners, L.P., Colonial Pipeline Company, Energy Transfer LP, Enterprise Products Partners L.P., and Plains All American Pipeline, L.P. 3 Public Law 102–486 1801(a), 106 Stat. 3010 (Oct. 24, 1992). This mandate to establish a simplified and generally applicable ratemaking methodology specifically excluded the TransAlaska Pipeline System (TAPS), or any pipeline delivering oil, directly or indirectly, into TAPS. Id. 1804(2)(B). 4 49 U.S.C. app. 1 et seq. 5 Revisions to Oil Pipeline Regulations Pursuant to Energy Policy Act of 1992, Order No. 561, 58 FR 58753 (Nov. 4, 1993) FERC Stats. & Regs. ¶ 30,985 (1993) (cross-referenced at 65 FERC ¶ 61,109), order on reh’g, Order No. 561–A, FERC Stats. & Regs. ¶ 31,000 (1994) (cross-referenced at 68 FERC ¶ 61,138), aff’d sub nom. Ass’n of Oil Pipe Lines v. FERC, 83 F.3d 1424 (D.C. Cir. 1996) (AOPL I). 6 Pursuant to the Commission’s indexing methodology, oil pipelines change their rate ceiling levels effective every July 1 by ‘‘multiplying the previous index year’s ceiling level by the most recent index published by the Commission.’’ 18 CFR 342.3(d)(1). Oil pipelines may adjust their rates to the ceiling levels pursuant to Commission’s regulations so long as no protest or complaint demonstrates that the index rate change substantially diverges from the pipeline’s cost changes. Id. 343.2(c)(1). PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 costs.7 The Commission conducted fiveyear index reviews in 2000,8 2005,9 2010,10 and 2015.11 In the 2015 review, the Commission established the index level of PPI–FG+1.23%, to be effective for the five-year period beginning July 1, 2016.12 The index level established herein results from the Commission’s fifth five-year review of the index level. B. The Kahn Methodology 5. In Order No. 561 and each successive five-year review, the Commission has calculated the index level based upon a methodology developed by Dr. Alfred E. Kahn.13 The Kahn Methodology uses pipeline data from Form No. 6, page 700 from the prior five-year period to determine an appropriate adjustment to be applied to PPI–FG. The calculation is as follows. Each pipeline’s cost change on a perbarrel mile basis over the prior five-year period (e.g., the years 2014–2019 in this proceeding) is calculated. In order to remove statistical outliers and spurious data, under the Kahn Methodology, the resulting data set is trimmed to those oil pipelines in the middle 50% of cost changes (middle 50%). The Kahn Methodology then calculates three measures of the middle 50%’s central tendency: The median, the mean, and a weighted mean.14 The Kahn Methodology calculates a composite by averaging these measures of central tendency and measures the difference between the composite and the PPI–FG over the prior five-year period. The Commission then sets the index level at PPI–FG plus (or minus) this differential. C. The 2020 Five-Year Review 6. On June 18, 2020, the Commission issued the NOI initiating its five-year 7 Order No. 561, FERC Stats. & Regs. ¶ 30,985 at 30,941. 8 Five-Year Review of Oil Pipeline Pricing Index, 93 FERC ¶ 61,266 (2000), aff’d in part and remanded in part sub nom. Ass’n of Oil Pipe Lines v. FERC, 281 F.3d 239 (D.C. Cir. 2002) (AOPL II), order on remand, 102 FERC ¶ 61,195 (2003), aff’d sub nom. Flying J Inc. v. FERC, 363 F.3d 495 (D.C. Cir. 2004). 9 Five-Year Review of Oil Pipeline Pricing Index, 114 FERC ¶ 61,293 (2006) (2005 Index Review). 10 Five-Year Review of Oil Pipeline Pricing Index, 133 FERC ¶ 61,228 (2010) (2010 Index Review), reh’g denied, 135 FERC ¶ 61,172 (2011). 11 Five-Year Review of the Oil Pipeline Index, 153 FERC ¶ 61,312 (2015) (2015 Index Review), aff’d sub nom. Ass’n of Oil Pipe Lines v. FERC, 876 F.3d 336 (D.C. Cir. 2017) (AOPL III). 12 2015 Index Review, 153 FERC ¶ 61,312 at P 9. 13 The United States Court of Appeals for the District of Columbia Circuit has affirmed the Commission’s use of the Kahn Methodology. AOPL I, 83 F.3d at 1433–37; Flying J Inc. v. FERC, 363 F.3d at 497–500. 14 The weighted mean assigns a different weight to each pipeline’s cost change based upon the pipeline’s total barrel-miles. E:\FR\FM\16FER1.SGM 16FER1

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SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 86, Number 29 (Tuesday, February 16, 2021)]
[Rules and Regulations]
[Pages 9436-9448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28819]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Release Nos. 33-10913; 34-90787; IA-5656; IC-34151]


Modernization of Delegations of Authority to Commission Staff and 
Division and Office Descriptions

AGENCY: Securities and Exchange Commission.

ACTION: Final rule.

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SUMMARY: The Securities and Exchange Commission (the ``Commission'') is 
amending its rules delegating authority to the Commission's staff to 
modernize these rules and more efficiently use the Commission's 
resources, as well as descriptions of the responsibilities of its 
divisions and offices.

DATES: This rule is effective February 16, 2021.

FOR FURTHER INFORMATION CONTACT: J. Matthew DeLesDernier, Assistant 
Secretary, Office of the Secretary, (202) 551-5400, Securities and 
Exchange Commission, 100 F Street NE, Washington, DC 20549-9040.

SUPPLEMENTARY INFORMATION: The Commission is adopting new rules 17 CFR 
200.19e (``Article 19e''), 17 CFR 200.30-2 (``Article 30-2''), and 17 
CFR 200.30-3b (``Article 30-3b''); we are adding and reserving 17 CFR 
200.20a; and we are adopting amendments to:

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                                                           CFR citation
                  Commission reference                       (17 CFR)
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Article 10..............................................          200.10
Article 11..............................................          200.11
Article 13..............................................          200.13
Article 13a.............................................         200.13a
Article 13b.............................................         200.13b
Article 14..............................................          200.14
Article 16..............................................          200.16
Article 17..............................................          200.17
Article 19a.............................................         200.19a
Article 19c.............................................         200.19c
Article 19d.............................................         200.19d
Article 21..............................................          200.21
Article 21a.............................................         200.21a
Article 23a.............................................         200.23a
Article 24..............................................          200.24
Article 24a.............................................         200.24a
Article 26a.............................................         200.26a
Article 27..............................................          200.27
Article 30-1............................................        200.30-1
Article 30-3............................................        200.30-3
Article 30-3a...........................................       200.30-3a
Article 30-5............................................        200.30-5
Article 30-6............................................        200.30-6
Article 30-7............................................        200.30-7
Article 30-10...........................................       200.30-10
Article 30-11...........................................       200.30-11
Article 30-13...........................................       200.30-13
Article 30-14...........................................       200.30-14
Article 30-15...........................................       200.30-15
Article 30-16...........................................       200.30-16
Article 30-18...........................................       200.30-18
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I. Discussion

    The Commission is amending its rules delegating authority to the 
Commission's staff. Currently, the Commission delegates to its staff 
certain authorities that would otherwise be exercised only by the 
Commission itself. These delegations are codified in our Rules of 
General Organization,\1\ alongside descriptions of the responsibilities 
of the divisions and offices.\2\ We are amending these rules to better 
reflect the way the Commission conducts its business and to use our 
resources more efficiently. In some cases, authority previously granted 
to a particular member of the staff is no longer appropriate, because, 
for example, the authority references a rule or process that has since 
been amended or rescinded or because the responsibility for the 
delegated activity should now rest with another member of the staff. In 
other instances, authority that is currently exercised only by the 
Commission could be exercised by the staff with appropriate Commission 
oversight, thereby preserving the Commission's resources for other 
activities. In addition, certain of the descriptions are no longer an 
accurate reflection of the responsibilities of the respective divisions 
and offices. We have determined, therefore, to make a number of 
amendments to our rules delegating authority to the staff and to the 
division and office descriptions, as discussed in detail below.
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    \1\ Articles 30-1 through 30-19 [17 CFR 200.30-1 through 200.30-
19].
    \2\ Articles 10 through 27 [17 CFR 200.10 through 200.27].
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A. Delegation to the Director and Chief Economist of the Division of 
Economic and Risk Analysis

    We are delegating authority to the Director of the Division of 
Economic and Risk Analysis (``DERA'') and Chief Economist to update 
taxonomies and schemas required for use in Commission filings and made 
available on the Commission's website.\3\ DERA maintains on the 
Commission's website a collection of taxonomies and schemas related to 
certain Commission structured data reporting requirements.\4\ A 
taxonomy is a list of standardized disclosure elements that covers a 
variety of concepts, and can contain descriptive labels, definitions, 
and authoritative references to standards and Commission 
regulations.\5\ Meanwhile, a schema defines the elements and attributes 
of a structured data report so that the report is appropriately 
constrained for machine-readability.\6\ Updates to these taxonomies and 
schemas are ministerial in nature. The updates generally reflect 
changes to the underlying standard--such as to U.S. generally accepted 
accounting principles--to the underlying technology, to industry 
practice, or to Commission requirements. We believe that delegating 
authority for updates to taxonomies and schemas to the Director of DERA 
and Chief Economist will

[[Page 9437]]

conserve our resources and increase efficiency, as these updates are 
ministerial in nature and in the normal course of business. In 
addition, we are updating the description of the responsibilities of 
the Director of DERA and Chief Economist in our rules to include that 
person's current title and responsibilities.\7\
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    \3\ Article 30-2.
    \4\ Taxonomies; www.sec.gov/structureddata/data_taxonomies.
    \5\ By referencing the same underlying taxonomy, structured data 
from different filers and over different reporting periods can be 
instantly aggregated and compared for analysis. Currently, DERA's 
website hosts the U.S. Generally Accepted Accounting Principles 
(``GAAP'') eXtensible Business Reporting Language (``XBRL'') 
Taxonomy, the International Financial Reporting Standards (``IFRS'') 
Taxonomy, the U.S. Mutual Fund Risk/Return XBRL Taxonomy, the SEC 
Reporting Taxonomies (``SRT''), the Record of Credit Ratings XBRL 
Taxonomy, the Draft Closed-End Fund Taxonomy, and the Draft Variable 
Insurance Product Taxonomy.
    \6\ Currently, DERA's website hosts the Order Handling Data 
Schema for Broker-Dealers, the Exchange Transaction Fee Summary 
Schema for National Market System Stocks, the Draft Volcker Rule 
Metrics Instructions and Technical Specifications, and the Draft 
Financial Products Markup Language (``FpML'') and FIXML Schemas for 
Security-Based Swap Data Repositories.
    \7\ Article 23a.
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B. Delegation to the Director of the Division of Trading and Markets

    We are amending our rules delegating authority to the Director of 
the Division of Trading and Markets (``TM''), in some instances 
delegating new authority and, in others, eliminating current authority.
1. Delegation of Advance Notice Authority
    We are delegating authority to the Director of TM for the 
publication of an advance notice (``Advance Notice'') filed by a 
registered clearing agency designated as systemically important (a 
``DCA'') by the Financial Stability Oversight Council; \8\ for the 
issuance of a request that the DCA provide any information necessary to 
assess the effect a proposed change would have on the nature or level 
of risks associated with such DCA's payment, clearing, or settlement 
activities and the sufficiency of any proposed risk management 
techniques; \9\ for the extension of the period of review when the 
proposed changes in an Advance Notice raise novel or complex issues and 
publication of notice thereof; \10\ and for the publication of a 
withdrawal of an Advance Notice.\11\ The current process associated 
with Advance Notice processing requires Commission action to, among 
other things, publish notice of an Advance Notice and any amendments 
thereto; make an additional information request; extend the period of 
review of the Advance Notice when the proposed changes in an Advance 
Notice raise novel or complex issues; or publish notice of a withdrawal 
of an Advance Notice. These actions do not raise significant issues for 
Commission consideration and are more administrative in nature in that 
they provide notice to the public on the status of an Advance Notice 
proposal and seek public comment for information to assist the 
Commission as it considers each such action individually.
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    \8\ Article 30-3(a)(91).
    \9\ Article 30-3(a)(93).
    \10\ Article 30-3(a)(94).
    \11\ Article 30-3(a)(92).
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    We believe that delegating authority for Advance Notices will 
conserve our resources and increase efficiency, as the processing 
functions for Advance Notices are, in each instance, procedural matters 
that are ministerial in nature and in the normal course of business. In 
addition, this delegation will harmonize the staff's authority over 
issuance of Advance Notices and related self-regulatory organization 
(``SRO'') rule change filings. Finally, the expedited process that 
would result from a delegation of authority to affect these matters 
would provide TM and the Commission additional time to analyze and 
consider a final determination on an Advance Notice proposal after the 
comment period has closed.
2. Delegation of Security-Based Swap Authority to the Director of TM 
and the Director of the Division of Examinations
    We are delegating authority to the Director of TM and the Director 
of the Division of Examinations (``Examinations'') \12\ in connection 
with applications for registration as a security-based swap dealer or 
major security-based swap participant (``SBS Entities'').\13\ We 
believe that permitting the Director of TM and the Director of 
Examinations to share this authority will more efficiently allocate 
agency resources. First, we are delegating authority to authorize 
issuance of orders granting ongoing registration to SBS Entities 
pursuant to 17 CFR 240.15Fb2-1(d) \14\ under the Securities Exchange 
Act of 1934 (the ``Exchange Act'').\15\ Once an applicant is 
conditionally registered as an SBS entity, the Commission may grant or 
deny ongoing registration. The Commission will grant ongoing 
registration if it finds that the requirements of section 15F(b) of the 
Exchange Act are satisfied.\16\ We believe that delegating the 
authority to the Director of TM and the Director of Examinations to 
make the necessary findings and grant ongoing registration will make 
efficient use of our resources, while still reserving for Commission 
consideration any recommendation to deny ongoing registration. Similar 
delegated authority exists for the Director of TM to grant registration 
as a broker or dealer.\17\
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    \12\ Examinations was previously known as the Office of 
Compliance Inspections and Examinations, or ``OCIE.'' See Public 
Statement on the Renaming of the Office of Compliance Inspections 
and Examinations to the Division of Examinations (Dec. 17, 2020), 
available at https://www.sec.gov/news/public-statement/joint-statement-division-examinations.
    \13\ See infra footnotes 14-20 and accompanying text.
    \14\ Rule 15Fb2-1(d).
    \15\ 15 U.S.C. 78a et seq.; Article 30-3(a)(86); Article 30-
18(m)(1)(i).
    \16\ 17 CFR 240.15Fb2-1(e).
    \17\ Article 30-3(a)(3).
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    Second, we are delegating authority to the Director of TM and the 
Director of Examinations to authorize the issuance of orders cancelling 
registrations of SBS Entities, or pending applications for 
registration, if such SBS Entities or applicants for registration are 
no longer in existence or have ceased to do business as an SBS 
Entity.\18\ We believe that delegated authority to cancel the 
registrations of, or applications for registration by, non-operational 
SBS Entities will make efficient use of our resources, while still 
reserving for Commission consideration any recommendation to revoke the 
registration of an operating SBS Entity. Similar delegated authority 
exists for staff to cancel registrations of non-operational brokers and 
dealers.\19\
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    \18\ Article 30-3(a)(87); Article 30-18(m)(1)(ii).
    \19\ Article 30-3(a)(3)(ii).
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    Third, we are delegating to the Director of TM and the Director of 
Examinations authority to determine whether notices of withdrawal from 
registration by SBS Entities shall become effective sooner or later 
than the default 60-day waiting period.\20\ We believe that delegated 
authority to change the waiting period for withdrawal of registration 
as an SBS Entity will make efficient use of our resources by allowing 
staff to determine, and communicate to registrants, the date on which a 
withdrawal of registration will become effective.
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    \20\ Article 30-3(a)(88); Articles 30-18(m)(1)(iii).
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3. Delegation of SBS Entity Application Authority
    We are also delegating authority to the Director of TM to grant 
certain applications made by SBS Entities. Section 201.194 of our Rules 
of Practice provides for applications by SBS Entities for statutorily 
disqualified associated persons to effect or be involved in effecting 
security-based swaps.\21\ We are delegating authority to the Director 
of TM to grant such applications.\22\ We believe that delegated 
authority to grant these applications will make efficient use of the 
Commission's resources, while still preserving the Commission's ability 
to deny applications. We have already delegated authority to the 
Director of TM to grant certain similar applications with respect to an 
SRO.\23\
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    \21\ Rule 194 (17 CFR 201.194).
    \22\ Article 30-3(a)(90).
    \23\ Article 30-3(a)(4)(i) (delegating authority to the Director 
of TM to grant applications with respect to membership in, 
association with a member of, or participation in, a self-regulatory 
organization and for other relief as to persons who are subject to 
an applicable disqualification where such relationships or other 
relief have been approved or recommended by a self-regulatory 
organization); see also 17 CFR 200.30-4(a)(5) [Article 30-4(a)(5)] 
(delegating authority to the Director of the Division of Enforcement 
to grant or deny applications made pursuant to 17 CFR 201.193 [Rule 
193 of the Commission's Rules of Practice] by barred individuals for 
consent to associate with other types of registrants); Article 30-
1(10) (delegating authority to the Director of CF to grant or deny 
applications for relief from being considered an ``ineligible 
issuer'' under 17 CFR 230.403 [Securities Act Rule 405]).

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[[Page 9438]]

4. Delegation of Substituted Compliance Authority
    We are delegating authority to the Director of TM to authorize the 
publication in the Federal Register of notices that a complete 
application for substituted compliance has been submitted to the 
Commission, under 17 CFR 240.0-13.\24\ Rule 0-13 provides the 
procedures for filing applications to request a substituted compliance 
or listed jurisdiction order under the Exchange Act.\25\ We believe 
that delegating the authority to make the necessary findings will make 
efficient use of our resources. The action is administrative in nature 
and provides notice to the public of the completion of an application, 
beginning the process of seeking public comment for information to 
assist the Commission as it considers substituted compliance with 
respect to an application.
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    \24\ Rule 0-13 under the Exchange Act; Article 30-3(a)(89).
    \25\ 17 CFR 240.0-13.
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5. Eliminated Delegations of Authority
    We are eliminating certain current delegations of authority. First, 
we are eliminating the following delegations of authority because they 
refer to rules or processes that have themselves been eliminated:
     Authority to grant requests for exemptions from former 17 
CFR 240.10a-1(f) (rule 10a-1(f) under the Exchange Act), which we have 
previously rescinded.\26\
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    \26\ Current Article 30-3(a)(15).
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     Authority to publish notice of the filing of a designation 
plan with respect to national market system securities, or any proposed 
amendment thereto, and to approve such plan or amendment under former 
17 CFR 242.600 (rule 600),\27\ which rule has already been amended to 
eliminate the relevant process.
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    \27\ Current Article 30-3(a)(37).
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     Authority to review and, where appropriate, approve the 
selection by the Municipal Securities Rulemaking Board (``MSRB'') of 
public representatives to serve on the MSRB under former section 
15B(b)(2)(B) of the Exchange Act,\28\ which has previously been amended 
to eliminate the relevant process.
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    \28\ Current Article 30-3(a)(40).
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     Authority to grant exemptions from former 17 CFR 240.3b-9 
(rule 3b-9 under the Exchange Act),\29\ because the rule was rescinded 
by the Commission after being invalidated by the U.S. Court of Appeals 
for the District of Columbia Circuit.\30\
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    \29\ Current Article 30-3(a)(45).
    \30\ See Exchange Act Release No. 56502 (Sept. 24, 2007) [72 FR 
56562 (Oct. 3, 2007)]; see also American Bankers Association v. SEC, 
804 F.2d 739 (D.C. Cir. 1986).
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     Authority to grant exemptions from 17 CFR 240.17a-23 (Rule 
17a-23 under the Exchange Act),\31\ which has been rescinded.
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    \31\ Current Article 30-3(a)(60).
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     Authority to issue notices related to a transaction fee 
pilot program that has been vacated.\32\
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    \32\ Current Article 30-3(a)(84).
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    Second, we are eliminating the following delegations of authority 
to the Director of TM because the contemplated activities are 
appropriately within the purview of other divisions and offices:
     Authority to grant or deny exemptions, either 
unconditionally or on specified terms and conditions, from 17 CFR 
240.15c2-12 (Rule 15c2-12 under the Exchange Act),\33\ which is similar 
to authority we are delegating to the Director of the Office of 
Municipal Securities (``OMS'').\34\
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    \33\ Current Article 30-3(a)(48).
    \34\ See infra Part II.C.
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     Authority to grant requests for exemptions from the tender 
offer provisions of 17 CFR 240.14e-1 (Rule 14e-1 of Regulation 14E 
under the Exchange Act),\35\ which rule is administered by the Division 
of Corporation Finance (``CF'').\36\
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    \35\ Current Article 30-3(a)(67).
    \36\ Article 30-1(f)(16)(ii) [17 CFR 200.30-1(f)(16)(ii)].
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     Authority to designate officers empowered to administer 
oaths and affirmations, subpoena witnesses, compel their attendance, 
take evidence, and require the production of any books, papers, 
correspondence, memoranda, contracts, agreements, or other records in 
the course of investigations instituted by the Commission under section 
21(d) of the Exchange Act,\37\ which is similar to authority currently 
exercised by the Division of Enforcement.\38\
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    \37\ Current Article 30-3(b).
    \38\ Article 30-4(a)(1) [17 CFR 200.30-4(a)(2)].
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     Authority, in certain nonpublic investigatory proceedings, 
to grant requests of persons to procure copies of the transcript of 
their testimony,\39\ which is similar to authority currently exercised 
by the Division of Enforcement.\40\
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    \39\ Current Article 30-3(c).
    \40\ Article 30-4(a)(2) [17 CFR 200.30-4(a)(2)].
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    Finally, we are eliminating current authority to extend trading 
privileges and to deny applications for unlisted trading privileges 
(``UTP'') by national securities exchanges under 17 CFR 240.12f-1 (Rule 
12f-1 under the Exchange Act), provided that any applicant exchange 
denied unlisted traded privileges is advised of its right to have such 
denial reviewed by the Commission.\41\ The UTP Act of 1994 changed the 
way UTP was extended by no longer requiring applications for UTP to be 
filed with and approved by the Commission. Prior to the enactment of 
the UTP Act, the Commission received hundreds of applications to extend 
UTP each year. Although section 12(f)(2) of the Act and Rule 12f-1 are 
not part of that UTP extension process and instead allow for the 
suspension and reinstatement of trading for securities that are already 
trading UTP, the Division has rarely used its delegated authority under 
these provisions so the delegation is being eliminated.\42\
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    \41\ Current Article 30-3(a)(2).
    \42\ Article 30-3(a)(2) (removed and reserved). We are also 
making a technical correction to update the name of TM in a 
delegation. Article 30-3(l). In addition, we are correcting a 
scrivener's error in a delegation to the Director of TM. Article 30-
3(a)(47). We are also making a technical correction to a delegation 
to the Director of TM. Article 30-3(a)(49).
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C. Delegation to the Director of the Office of Municipal Securities

    We are delegating additional authority to the Director of OMS to 
carry out functions--with respect to the Municipal Securities 
Rulemaking Board (``MSRB''), municipal securities, and municipal 
securities dealers--that are currently delegated to the Director of TM. 
These authorities include:
     Authority to publish notices of proposed rule changes 
filed by the MSRB, to approve such proposed rule changes, to find good 
cause to approve a proposed rule change earlier than 30 days after 
publication of such proposed rule change, to disapprove a proposed rule 
change subject to certain requirements, and related authorities; \43\
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    \43\ Article 30-3a(a)(2). This authority is similar to authority 
already delegated to the Director of TM. See Article 30-3(a)(12).
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     Authority to extend for a period not exceeding 90 days 
from the date of publication of notice of the filing of a proposed rule 
change by the MSRB the period during which the Commission must by order 
approve or disapprove

[[Page 9439]]

the proposed rule change or institute proceedings to determine whether 
the proposed rule change should be disapproved, and related 
authorities; \44\
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    \44\ Article 30-3a(a)(7). This authority is similar to authority 
already delegated to the Director of TM. See Article 30-3(a)(31).
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     Authority to institute proceedings to determine whether a 
proposed rule change of the MSRB should be disapproved, to provide to 
the MSRB notice of the grounds for disapproval under consideration, and 
to extend for a period not exceeding 240 days from the date of 
publication of notice of the filing of the proposed rule during which 
the Commission must issue an order approving or disapproving the 
proposed rule, and related authorities; \45\
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    \45\ Article 30-3a(a)(11). This authority is similar to 
authority already delegated to the Director of TM. See Article 30-
3(a)(57).
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     Authority to temporarily suspend a change in the rules of 
the MSRB; \46\
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    \46\ Article 30-3a(a)(12). This authority is similar to 
authority already delegated to the Director of TM. See Article 30-
3(a)(58).
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     Authority to reduce the period before which a proposed 
rule change can become operative, and to reduce the period between an 
MSRB submission of a filing and a pre-filing notification; \47\
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    \47\ Article 30-3a(a)(13). This authority is similar to 
authority already delegated to the Director of TM. See Article 30-
3(a)(59).
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     Authority to review and grant or deny exemptions from the 
rule filing requirements of section 19(b) of the Exchange Act,\48\ in a 
case where the MSRB elects to incorporate by reference one or more 
rules of another self-regulatory organization, subject to certain terms 
and conditions; \49\
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    \48\ 15 U.S.C. 78s(b).
    \49\ Article 30-3a(a)(14). This authority is similar to 
authority already delegated to the Director of TM. See Article 30-
3(a)(76).
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     Authority to issue orders granting registration of 
municipal securities dealers within 45 days of the filing of an 
application for registration; \50\
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    \50\ Article 30-3a(a)(3). This authority is similar to authority 
already delegated to the Director of TM. See Article 30-3(a)(13).
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     Authority to grant, deny, and revoke applications for 
confidential treatment filed pursuant to section 24(b) of the Exchange 
Act and 17 CFR 240.24b-2 (rule 24b-2 thereunder); \51\
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    \51\ Article 30-3a(a)(4). This authority is similar to authority 
already delegated to the Director of TM. See Article 30-3(a)(19).
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     Authority to notify and consult with the appropriate 
regulatory agency about a registered municipal securities dealer whose 
appropriate regulatory agency is not the Commission prior to any 
examination of that registered municipal securities dealer; \52\
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    \52\ Article 30-3a(a)(5). This authority is similar to authority 
already delegated to the Director of TM. See Article 30-3(a)(23).
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     Authority to notify such an appropriate regulatory agency 
about any examination of such a registered municipal securities dealer 
by the Commission; \53\
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    \53\ Article 30-3a(a)(6)(i). This authority is similar to 
authority already delegated to the Director of TM. See Article 30-
3(a)(24)(i).
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     Authority to request from such an appropriate regulatory 
agency a copy of the report of any examination it conducted of any such 
registered municipal securities dealer and any data supplied to it in 
connection with such examination; \54\
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    \54\ Article 30-3a(a)(6)(ii). This authority is similar to 
authority already delegated to the Director of TM. See Article 30-
3(a)(24)(ii).
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     Authority to furnish to such an appropriate regulatory 
agency on request a copy of the report of any examination of any such 
municipal securities dealer conducted by the Commission and any data 
supplied to it in connection with such examination; \55\
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    \55\ Article 30-3a(a)(6)(iii). This authority is similar to 
authority already delegated to the Director of TM. See Article 30-
3(a)(24)(iii).
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     Authority to grant or deny exemptions, either 
unconditionally or on specified terms and conditions, from Rule 15c2-12 
under the Exchange Act; \56\
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    \56\ Article 30-3a(a)(8). This authority is current delegated to 
the Director of TM, but we are transferring it to the Director of 
OMS. See current Article 30-3(a)(48). See supra Part II.B.
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     Authority to administer the provisions of 17 CFR 240.24c-1 
(Rule 24c-1 under the Exchange Act); \57\
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    \57\ Article 30-3a(a)(9). This authority is similar to authority 
already delegated to the Director of TM. See Article 30-3(a)(53).
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     Authority to administer the provisions of section 24(d) of 
the Exchange Act; \58\ and
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    \58\ Article 30-3a(a)(10). This authority is similar to 
authority already delegated to the Director of TM. See Article 30-
3(a)(54).
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     Authority to consult on behalf of the Commission pursuant 
to section 18(t)(1) of the Federal Deposit Insurance Act \59\ with 
respect to matters described in Article 19a.\60\
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    \59\ 12 U.S.C. 1828(t)(1).
    \60\ Article 30-3a(c). This authority is similar to authority 
already delegated to the Director of TM. See Article 30-3(g).
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    We believe it is appropriate for the Director of OMS--like the 
Director of TM--to exercise such functions and that delegating this 
authority will conserve our resources and improve efficiency. In 
addition, we are updating the description of the responsibilities of 
the Director of OMS in our rules to include that person's current 
responsibilities.\61\
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    \61\ Article 19d.
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D. Delegation to the Director of the Division of Investment Management

    The Commission is eliminating a current delegation to the Director 
of the Division of Investment Management (``IM''). The Commission 
previously delegated to the Director of IM the same authority with 
respect to certain rules under the Securities Act of 1933 (``Securities 
Act'') \62\ that it also delegated to each Regional Director.\63\ This 
delegation to the Director of IM refers to the delegation to each 
Regional Director that has since been eliminated by the Commission.\64\ 
We are therefore eliminating the delegation to the Director of IM that 
refers to the previously eliminated delegation to each Regional 
Director.\65\
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    \62\ 15 U.S.C. 77a et seq.
    \63\ Current article 30-5(h)(1).
    \64\ Id. (providing that Director of the Division of Investment 
Management shall have the same authority with respect to the 
Securities Act of 1933 and 17 CFR 230.251 through 230.262 (rules 251 
through 263 thereunder) as that delegated to each Regional Director 
in Article 30-6(b) and (c)).
    \65\ See article 30-5(h)(1) (removed and reserved).
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E. Delegation to the Chief Accountant

    The Commission is delegating authority to its Chief Accountant to 
share with certain specified persons nonpublic information and files 
with the concurrence of the head of the division or office responsible 
for such information and files.\66\ Rule 24c-1 under the Exchange Act 
provides that the Commission may, in its discretion and upon a showing 
that such information is needed, provide nonpublic information in its 
possession to certain persons if they provide such assurances of 
confidentiality as the Commission deems appropriate.\67\ The Commission 
has previously delegated similar authority to several other divisions 
and offices.\68\ The Chief Accountant's responsibilities related to the 
Public Company Accounting Oversight Board (the ``PCAOB'') occasionally 
requires the sharing of nonpublic information. We believe that 
providing the Chief Accountant with the same authority delegated to 
other divisions and offices will make

[[Page 9440]]

coordination with the PCAOB more efficient.
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    \66\ Article 30-11(c).
    \67\ 17 CFR 240.24c-1(b).
    \68\ Article 30-1(f)(14) (delegating similar authority to the 
Director of the Division of Corporate Finance); article 30-3(a)(53) 
(delegating similar authority to the Director of the Division of 
Trading and Markets); article 30-4(a)(7) (delegating similar 
authority to the Director of the Division of Enforcement); article 
30-5(c-1)(3) (delegating similar authority to the Director of the 
Division of Investment Management); article 30-15(m)(1) (delegating 
similar authority to the General Counsel of the Commission); article 
30-18(a) (delegating similar authority to the Director of the Office 
of Compliance Inspections and Examinations).
---------------------------------------------------------------------------

F. Delegation to the General Counsel

    The Commission is clarifying a delegation of authority to the 
General Counsel. We have previously delegated to the General Counsel 
authority to approve non-expert, non-privileged, factual testimony by 
present or former staff members, and the production of non-privileged 
documents, when validly subpoenaed, and to assert governmental 
privileges on behalf of the Commission in litigation where the 
Commission appears as a party or in response to third party 
subpoenas.\69\ Our rules specify, however, that those functions are not 
delegated to the General Counsel with respect to proceedings in which 
the Chairman or the General Counsel determines that separation of 
functions requirements or other circumstances would make inappropriate 
the General Counsel's exercise of such delegated functions.\70\ Rather, 
with respect to such proceedings, such functions had been delegated to 
the Executive Assistant to the Chairman.\71\ The Executive Assistant to 
the Chairman is a position that is no longer in use. We are therefore 
removing and reserving the provisions relating to description of and 
delegation to the Executive Assistant to the Chairman.\72\ We have 
determined, instead, to delegate such functions in those circumstances 
to the Secretary of the Commission.\73\ This delegation is similar to a 
prior delegation that we made to the Secretary for functions otherwise 
carried out by the General Counsel when the Chairman or General Counsel 
determines that separation of functions requirements or other 
circumstances would make exercise of the delegated functions by the 
General Counsel inappropriate.\74\
---------------------------------------------------------------------------

    \69\ Article 30-14(g).
    \70\ Article 30-14(i).
    \71\ Current Article 30-14(i).
    \72\ Article 16 (removed and reserved); Article 30-16 (removed 
and reserved).
    \73\ Article 30-14(i).
    \74\ Article 30-14(k). In addition, we are correcting a 
typographical error in the rules delegating authority to the General 
Counsel. Article 30-14(b).
---------------------------------------------------------------------------

G. Delegation to the Director of the Division of Examinations

    The Commission is eliminating certain current delegations of 
authority to the Director of Examinations that Examinations does not 
use. The Commission has previously delegated to the Director of 
Examinations authority to grant, deny, and revoke applications for 
confidential treatment filed pursuant to section 24(b) of the Exchange 
Act and rule 24b-2 thereunder; \75\ to administer the provisions of 
section 24(d) of the Exchange Act; \76\ to notify the Securities 
Investor Protection Corporation (``SIPC'') of facts concerning the 
activities and the operational and financial condition of any 
registered broker or dealer which is or appears to be a member of SIPC 
and which is in or approaching financial difficulty within the meaning 
of section 5 of the Securities Investor Protection Act of 1970, as 
amended; \77\ to delay certain inspections of certain newly registered 
broker-dealers under section 15(b)(2)(C) of the Exchange Act; \78\ and, 
in certain circumstances, to grant or deny exemptions from 17 CFR 
240.17a-25 (rule 17a-25 under the Exchange Act), among other 
authorities.\79\ The Commission is also eliminating a duplicative 
delegation that authorizes the issuance of orders canceling 
registrations or pending applications of registration of certain 
investment advisers.\80\ We understand that the Director of 
Examinations does not exercise the above authorities, and we have 
determined that it is appropriate to eliminate them. In addition, we 
are updating the name and description of the responsibilities of the 
Director of Examinations in our rules to include the current name and 
the responsibilities related to security-based swaps.\81\
---------------------------------------------------------------------------

    \75\ Current Article 30-18(b).
    \76\ Current Article 30-18(e) (providing for administration of 
provisions related to certain records obtained from foreign 
securities authorities).
    \77\ 15 U.S.C. 78aa et seq.; current Article 30-18(f). 
Currently, rather than exercising this authority directly, it is 
Examinations's practice to notify the Division of Trading and 
Markets, which will then determine whether to exercise its 
Director's authority to notify SIPC. See Article 30-3(d) (delegating 
similar authority to the Director of Trading and Markets).
    \78\ Current Article 30-18(g).
    \79\ Current Article 30-18(h).
    \80\ Current Article 30-18(k)(2). We believe that this authority 
is duplicative of authority separately delegated to the Director of 
Examinations to authorize the issuance of orders cancelling 
registration or applications for registration of certain investment 
advisers. Article 30-18(i)(1). As discussed above, we are also 
delegating authority to the Director of Examinations that is similar 
to the authority delegated to the Director of TM concerning 
security-based swaps. Article 30-18(m); see also supra footnotes 14-
20 and accompanying text.
    \81\ Article 19c.
---------------------------------------------------------------------------

H. Delegation to the Director of the Office of Credit Ratings

    The Commission is delegating authority to the Director of the 
Office of Credit Ratings (``OCR'') for functions that are currently 
delegated to the Director of TM and others. First, we are delegating 
authority to grant and deny applications for confidential treatment 
filed under section 24(b) of the Exchange Act,\82\ and to revoke a 
grant of confidential treatment for any such application.\83\ The 
authority to grant and deny applications for confidential treatment and 
revoke a grant of confidential treatment is delegated to several 
members of our staff.\84\ Second, we are delegating authority to 
administer the provisions of rule 24c-1 under the Exchange Act,\85\ 
which the Commission has previously delegated to other members of the 
staff.\86\ Finally, we are delegating authority to administer the 
provisions of section 24(d) of the Exchange Act,\87\ which the 
Commission has similarly delegated to other members of the staff.\88\ 
We believe it is appropriate for the Director of OCR to exercise such 
functions and that delegating this authority will conserve our 
resources and improve efficiency. In addition, we are adding a 
description of the responsibilities of the Director of OCR in our 
rules.\89\
---------------------------------------------------------------------------

    \82\ 15 U.S.C. 78x(b).
    \83\ Article 30-3b(a).
    \84\ See Article 30-1(f)(3) (delegating similar authority to the 
Director of CF); Article 30-3(a)(19) (delegating similar authority 
to the Director of TM); Article 30-5(c-1)(4) (delegating similar 
authority to the Director of IM).
    \85\ Article 30-3b(b)(1).
    \86\ See Article 30-1(f)(14) (delegating similar authority to 
the Director of CF); Article 30-3(a)(53) (delegating similar 
authority to the Director of TM); Article 30-4(a)(7) (delegating 
similar authority to the Director of the Division of Enforcement); 
Article 30-5(c-1)(3) (delegating similar authority to the Director 
of IM); Article 30-11(d) (delegating similar authority to the Chief 
Accountant); Article 30-14(m)(1) (delegating similar authority to 
the General Counsel); Article 30-18(a) (delegating similar authority 
to the Director of Examinations).
    \87\ 15 U.S.C. 78x(d).
    \88\ See Article 30-1(f)(15) (delegating similar authority to 
the Director of CF); Article 30-3(a)(54) (delegating similar 
authority to the Director of TM); Article 30-4(a)(9) (delegating 
similar authority to the Director of the Division of Enforcement); 
Article 30-5(c-1)(4) (delegating similar authority to the Director 
of IM); Article 30-14(m)(2) (delegating similar authority to the 
General Counsel); Article 30-17(b) (delegating similar authority to 
the Director of the Office of International Affairs).
    \89\ Article 19e.
---------------------------------------------------------------------------

I. Additional Amendments to Division and Office Descriptions and 
Delegations

    We are also amending the description for certain other divisions 
and offices to better reflect the current name or duties of those 
divisions and offices.\90\ In addition, we are amending a number of our 
division and office descriptions and delegations to remove gender-
specific language from them.\91\
---------------------------------------------------------------------------

    \90\ Article 11; Article 13; Article 13b; Article 24a; Article 
26a; Article 27. We have also determined to eliminate the 
description of the Chief Management Analyst position, as this 
position is no longer in use. Article 17 (removed and reserved).
    \91\ Article 10; Article 11; Article 13a; Article 13b; Article 
14; Article 21; Article 21a; Article 24; Article 27; Article 30-1; 
Article 30-3; Article 30-3a; Article 30-5; Article 30-6; Article 30-
7; Article 30-10; Article 30-11; Article 30-13; Article 30-14; 
Article 30-15; Article 30-18. In addition, we are correcting certain 
outdated statutory references. Article 30-1; Article 30-2; Article 
30-3; Article 30-5; Article 30-6; Article 30-7; Article 30-10.

---------------------------------------------------------------------------

[[Page 9441]]

II. Administrative Law Matters

    The Commission finds, in accordance with the Administrative 
Procedure Act (``APA''), that these amendments relate solely to agency 
organization, procedure, or practice.\92\ Accordingly, the APA's 
provisions regarding notice of rulemaking and opportunity for public 
comment are not applicable. These changes are therefore effective on 
February 16, 2021. In accord with the APA, we find that there is good 
cause to establish an effective date less than 30 days after 
publication of these rules.\93\ These rules do not substantially affect 
the rights or obligations of non-agency parties and pertain to 
increasing efficiency of internal Commission operations. For the same 
reasons, the provisions of the Small Business Regulatory Enforcement 
Fairness Act are not applicable.\94\ Additionally, the provisions of 
the Regulatory Flexibility Act,\95\ which apply only when notice and 
comment are required by the APA or other law, are not applicable.\96\ 
These amendments do not contain any collection of information 
requirements as defined by the Paperwork Reduction Act of 1995.\97\ 
Further, because these amendments impose no new burdens on private 
parties, the Commission does not believe that the amendments will have 
any impact on competition for purposes of section 23(a)(2) of the 
Exchange Act.\98\
---------------------------------------------------------------------------

    \92\ 5 U.S.C. 553(b)(3)(A).
    \93\ 5. U.S.C. 553(d).
    \94\ See 5 U.S.C. 804(3)(C) (the term ``rule'' does not include 
``any rule of agency organization, procedure, or practice that does 
not substantially affect the rights or obligations of non-agency 
parties'').
    \95\ 5 U.S.C. 60 et seq.
    \96\ See 5 U.S.C. 601(2).
    \97\ See 5 CFR 1320.3.
    \98\ 15 U.S.C. 78w(a)(2).
---------------------------------------------------------------------------

III. Statutory Authority

    This rule is adopted pursuant to statutory authority granted to the 
Commission, including section 19 of the Securities Act of 1933, 15 
U.S.C. 77s; sections 4A, 4B, and 23 of the Exchange Act, 15 U.S.C. 78d-
1, 78d-2, and 78w; section 38 of the Investment Company Act of 1940, 15 
U.S.C. 80a-37; section 211 of the Investment Advisers Act of 1940, 15 
U.S.C. 80b-11; and section 3 of the Sarbanes-Oxley Act of 2002, 15 
U.S.C. 7202.

List of Subjects in 17 CFR Part 200

    Administrative practice and procedure, Authority delegations 
(Government agencies).

Text of Rule Amendments

    For the reasons set out in the preamble, the Commission is amending 
title 17, chapter II of the Code of Federal Regulations as follows:

PART 200--ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION AND 
REQUESTS

Subpart A--Organization and Program Management

0
1. The authority citation for part 200, subpart A, continues to read in 
part as follows:

    Authority:  15 U.S.C. 77c, 77o, 77s, 77z-3, 77sss, 78d, 78d-1, 
78d-2, 78o-4, 78w, 78ll(d), 78mm, 80a-37, 80b-11, 7202, and 7211 et 
seq., unless otherwise noted.
* * * * *
    Sections 200.27 and 200.30-6 are also issued under 15 U.S.C. 
77e, 77f, 77g, 77h, 77j, 77q, 77u, 78e, 78g, 78h, 78i, 78k, 78m, 
78o, 78o-4, 78q, 78q-1, 78t-1, 78u, 77hhh, 77uuu, 80a-41, 80b-5, and 
80b-9.
    Section 200.30-1 is also issued under 15 U.S.C. 77f, 77g, 77h, 
77j, 78c(b) 78l, 78m, 78n, 78o(d).
    Section 200.30-3 is also issued under 15 U.S.C. 78b, 78d, 78f, 
78k-1, 78q, 78s, and 78eee.
    Section 200.30-5 is also issued under 15 U.S.C. 77f, 77g, 77h, 
77j, 78c(b), 78l, 78m, 78n, 78o(d), 80a-8, 80a-20, 80a-24, 80a-29, 
80b-3, 80b-4.
* * * * *

0
2. Section 200.10 is revised to read as follows:


Sec.  200.10  The Commission.

    The Commission is composed of five members, not more than three of 
whom may be members of the same political party. The members are 
appointed by the President, with the advice and consent of the Senate, 
for 5-year terms, one term ending each year. The Chairman is designated 
by the President pursuant to the provisions of section 3 of 
Reorganization Plan No. 10 of 1950 (3 CFR, 1949-1953 Comp., p. 1006). 
The terms Chair, Chairperson, Chairman, Chairwoman, and the like may be 
used interchangeably. The Commission is assisted by a staff, which 
includes lawyers, accountants, engineers, financial security analysts, 
investigators, and examiners, as well as administrative and clerical 
employees.

0
3. Section 200.11 is amended by revising paragraph (a)(2) to read as 
follows:


Sec.  200.11  Headquarters Office--Regional Office relationships.

    (a) * * *
    (2) Each Regional Director is responsible for the direction and 
supervision of the Regional Director's work force and for the execution 
of all programs in the Regional Director's office's region as shown in 
paragraph (b) of this section, in accordance with established policy, 
and reports, on enforcement matters, to the Director or Deputy Director 
of the Division of Enforcement who is responsible for Regional Office 
enforcement matters and, on examination matters, to the Director of the 
Division of Examinations.
* * * * *

0
4. Section 200.13 is amended by revising paragraphs (a), (d)(1), (e), 
and (f) to read as follows:


Sec.  200.13  Chief Operating Officer.

    (a) The Chief Operating Officer is responsible for developing and 
executing the overall management policies of the Commission for all its 
operating divisions and staff offices. The Chief Operating Officer also 
provides executive direction to, and exercises administrative control 
over, the Office of Human Resources, the Office of Acquisitions, the 
Office of Financial Management, the Office of Support Operations, the 
EDGAR Business Office, and the Office of Information Technology.
* * * * *
    (d) * * *
    (1) Implementing the goals of the Chairman and the mission of the 
Commission;
* * * * *
    (e) Overseeing Commission-specific application of performance 
measures, procurement reforms, personnel reductions, financial 
management improvements, telecommunications and information technology 
policies, and other Government-wide systems reforms; and
    (f) Reforming the Commission's management practices.

0
5. Section 200.13a is amended by revising paragraphs (a) and (c) to 
read as follows:


Sec.  200.13a  The Secretary of the Commission.

    (a) The Secretary of the Commission is responsible for the 
preparation of the daily and weekly agendas of Commission business; the 
orderly and expeditious flow of business at formal Commission meetings; 
the maintenance of the Official Minute record of all actions of the 
Commission; and the

[[Page 9442]]

service of all instruments of formal Commission action. The Secretary 
is custodian of the official seal of the Commission, and also has the 
responsibility for authenticating documents.
* * * * *
    (c) In addition, the Secretary administers the Commission's 
Library.

0
6. Section 200.13b is revised to read as follows:


Sec.  200.13b  Director of the Office of Public Affairs.

    The Director of the Office of Public Affairs is the chief public 
information officer for the Commission, and oversees activities that 
communicate the Commission's actions to those interested in or affected 
by them. The Director's responsibilities include serving as liaison 
with the news media, dissemination of information to the news media and 
to the general public, supervision of internal and some external 
publications and of audio-visual presentations. Responsibilities of the 
Director, and of the Director's staff, include special projects that 
may be deemed appropriate to communicate information on Commission 
actions.

0
7. Section 200.14 is amended by revising paragraph (b) to read as 
follows:


Sec.  200.14  Office of the Administrative Law Judges.

* * * * *
    (b) The Chief Administrative Law Judge performs the duties of an 
Administrative Law Judge under the Administrative Procedure Act and the 
duties delegated to the Chief Administrative Law Judge by the 
Commission that are compatible with those duties. The Chief 
Administrative Law Judge is responsible for the orderly functioning of 
the Office of Administrative Law Judges apart from the conduct of 
administrative proceedings and acts as liaison between that Office and 
the Commission.


Sec.  200.16  [Removed and Reserved]

0
8. Section 200.16 is removed and reserved.


Sec.  200.17  [Removed and Reserved]

0
9. Section 200.17 is removed and reserved.

0
10. Section 200.19c is revised to read as follows:


Sec.  200.19c  Director of the Division of Examinations.

    The Director of the Division of Examinations (``Examinations'') is 
responsible for the compliance inspections and examinations relating to 
the regulation of exchanges, national securities associations, clearing 
agencies, securities information processors, the Municipal Securities 
Rulemaking Board, brokers and dealers, municipal securities dealers, 
municipal advisors, security-based swap data repositories, security-
based swap dealers, major security-based swap participants, transfer 
agents, investment companies, and investment advisers, under sections 
13(n)(2), 15B, 15C(d)(1), 15F, and 17(b) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78m(n)(2), 78o-4, 78o-5(d)(1), 78o-10, and 78q(b)), 
section 31(b) of the Investment Company Act of 1940 (15 U.S.C. 80a-
30(b)), and section 204 of the Investment Advisers Act of 1940 (15 
U.S.C. 80b-4).

0
11. Section 200.19d is revised to read as follows:


Sec.  200.19d  Director of the Office of Municipal Securities.

    The Director of the Office of Municipal Securities is responsible 
to the Commission for the administration and execution of the 
Commission's programs under the Securities Exchange Act of 1934 
relating to the registration and regulation of municipal advisors, the 
practices of municipal securities brokers and dealers, and oversight of 
the Municipal Securities Rulemaking Board. The functions involved 
include recommending the adoption and amendment of Commission rules, 
reviewing proposed rule changes of the Municipal Securities Rulemaking 
Board, and responding to interpretive and no-action requests.

0
12. Section 200.19e is added to read as follows:


Sec.  200.19e  Director of the Office of Credit Ratings.

    The Director of the Office of Credit Ratings is responsible to the 
Commission for the administration and execution of the Commission's 
programs under the Securities Exchange Act of 1934 relating to the 
registration and regulation of nationally recognized statistical rating 
organizations. The functions involved in the regulation of such 
entities include compliance inspections and examinations, recommending 
the adoption and amendment of Commission rules, and responding to 
interpretive and no-action requests.


Sec.  200.20a  [Added and Reserved]

0
13. Add reserved Sec.  200.20a.

0
14. Section 200.21 is revised to read as follows:


Sec.  200.21  The General Counsel.

    (a) The General Counsel is the chief legal officer of the 
Commission. The General Counsel is responsible for the representation 
of the Commission in judicial proceedings in which it is involved as a 
party or as amicus curiae, for directing and supervising all civil 
litigation involving the Commission in the United States District 
Courts, except for law enforcement actions filed on behalf of the 
Commission, for directing and supervising the Commission's 
responsibilities under the Bankruptcy Code and all related litigation, 
and for representing the Commission in all cases in appellate courts. 
The General Counsel is responsible for the review of cases which the 
Division of Enforcement recommends be referred to the Department of 
Justice with a recommendation for criminal prosecution. In addition, 
the General Counsel is responsible for advising the Commission at its 
request or at the request of any division director or office head, or 
on the General Counsel's own motion, with respect to interpretations 
involving questions of law; for the conduct of administrative 
proceedings relating to the disqualification of lawyers from practice 
before the Commission; for conducting preliminary investigations, as 
described in 17 CFR 202.5(a), into potential violations of 17 CFR 
201.102(e) by attorneys; for the preparation of the Commission comments 
to the Congress on pending legislation; and for the drafting, in 
conjunction with appropriate divisions and offices, of legislative 
proposals to be sponsored by the Commission. The General Counsel is 
responsible for providing advice to Commission attorneys on 
professional responsibility issues relating to their official duties. 
The General Counsel is further responsible for investigating 
allegations of professional misconduct by Commission staff and, where 
appropriate, making referrals to state professional boards or 
societies. The General Counsel is also responsible for the review and 
clearance of the form and content of articles, treatises, and prepared 
speeches and addresses by members of the staff relating to the 
Commission or to the statutes and rules administered by the Commission. 
The General Counsel also is responsible for coordinating and reviewing 
the interpretive positions of the various divisions and offices. In 
addition, the General Counsel is responsible for appropriate 
disposition of all Freedom of Information Act and Privacy Act appeals 
pursuant to the authority delegated in Sec.  200.30-14, and is the

[[Page 9443]]

Commission's advisor with respect to legal problems arising under the 
Freedom of Information Act, the Privacy Act, the Federal Reports Act, 
the Federal Advisory Committee Act, the Civil Service laws and 
regulations, the statutes and rules applicable to the Commission's 
procurement, contracting, fiscal and related administrative activities, 
and other statutes and regulations of a similar nature applicable to a 
number of Government agencies.
    (b)(1) The General Counsel is also responsible for assisting 
members of the Commission in the preparation of the opinions of the 
Commission, and for the preparation of opinions and decisions on 
motions and certifications of questions and rulings by administrative 
law judges in the course of administrative law proceedings, except:
    (i) In cases where, pursuant to a waiver by the parties of 
separation of function requirements, another Division or Office of the 
Commission's staff undertakes to prepare an opinion or decision, in 
which cases the General Counsel may assist in such preparation; and
    (ii) With respect to administrative proceedings against lawyers 
under Sec.  201.102(e) of this chapter (Rule 102(e) of the Commission's 
Rules of Practice) or other cases in which the Chairman or the General 
Counsel has determined that separation of function requirements or 
other circumstances would make inappropriate the exercise of such 
functions by the General Counsel.
    (2) The General Counsel deals with general problems arising under 
the Administrative Procedure Act, including the revision or adoption of 
rules of practice. The General Counsel is also responsible for the 
exercise of such review functions with respect to adjudicatory matters 
as are delegated to the General Counsel by the Commission pursuant to 
101 Stat. 1254 (15 U.S.C. 78d-1, 78d-2) or as may be otherwise 
delegated or assigned to the General Counsel.
    (c) The General Counsel also is responsible to the Commission for 
the administration of the Government in the Sunshine Act for publicly 
certifying, pursuant to Sec.  200.406, that, in the General Counsel's 
opinion, particular Commission meetings may properly be closed to the 
public. In the absence of the General Counsel, the Solicitor to the 
Commission shall be deemed the General Counsel for purposes of Sec.  
200.406. In the absence of the General Counsel and the Solicitor, the 
most senior Associate General Counsel available shall be deemed the 
General Counsel for purposes of Sec.  200.406. In the absence of the 
General Counsel, the Solicitor, and every Associate General Counsel, 
the most senior Assistant General Counsel available shall be deemed the 
General Counsel for purposes of Sec.  200.406. In the absence of the 
General Counsel, the Solicitor, every Associate General Counsel and 
every Assistant General Counsel, such attorneys as the General Counsel 
may designate (in such order of succession as the General Counsel 
directs) shall exercise the responsibilities imposed by Sec.  200.406.

0
15. Section 200.21a is amended by revising paragraph (a) to read as 
follows:


Sec.  200.21a  The Ethics Counsel.

    (a) The Ethics Counsel is responsible for administering the 
Commission's Ethics Program and for interpreting subpart M of this part 
and 5 CFR part 2635. The Ethics Counsel serves as Counselor to the 
Commission and its staff with regard to ethical and conflicts of 
interest questions and acts as the Commission's liaison on such matters 
with the Office of Human Resources, the Office of Government Ethics, 
the Office of the Inspector General, and the Department of Justice. 
When appropriate and subject to the authority of, and in consultation 
with, the Inspector General, the Ethics Counsel shall inquire into 
alleged violations of subparts C, F, and M of this part, and 5 CFR part 
2635.
* * * * *

0
16. Section 200.23a is revised to read as follows:


Sec.  200.23a  Director of the Division of Economic and Risk Analysis 
and Chief Economist.

    The Director of the Division of Economic and Risk Analysis and 
Chief Economist serves as economic advisor to the Commission and its 
staff and is responsible to the Commission for sound economic analysis 
of market events and conditions; economic analysis in support of 
Commission rulemaking; economic and risk analysis to inform and support 
the Commission's enforcement actions and its examination program; 
development of financial and market data analysis tools; preparation of 
economic statistics; promotion of data standards; review and guidance 
of staff research and publications; and assisting the Commission and 
its staff in responding to policy, legislative, or international issues 
relating to securities markets.

0
17. Section 200.24 is revised to read as follows:


Sec.  200.24  Office of Financial Management.

    This Office, under the direction of the Chief Financial Officer, is 
responsible to the Chief Operating Officer, Chairman and Commission for 
the internal financial management and programming functions of the 
Securities and Exchange Commission. These functions include: Budgeting, 
accounting, payroll and administrative audit. The Chief Financial 
Officer, and the Chief Financial Officer's designees, serve as liaison 
to the Commission before the Office of Management and Budget and 
Congressional Appropriations Committees on appropriation matters, and 
the Treasury Department and the General Accounting Office on financial 
and programming matters.

0
18. Section 200.24a is revised to read as follows:


Sec.  200.24a  Director of the Office of Investor Education and 
Advocacy.

    The Director of the Office of Investor Education and Advocacy is 
responsible to the Chairman for the Commission's investor education and 
investor assistance programs. These programs include, but are not 
limited to:
    (a) Educating investors through in-person outreach, digital and 
social media, and other communication channels, including the 
Commission's website for individual investors, Investor.gov, by 
preparing and distributing to the public educational content describing 
the operations of the securities markets, developing strategies for 
prudent investor behavior, and increasing public knowledge of the 
functions of the Commission.
    (b) Implementing and administering a nationwide system for 
resolving investor complaints against individuals and entities 
regulated by the Commission by processing complaints received from 
individual investors and seeking to ensure that regulated individuals 
and entities process and respond to such complaints.
    (c) Providing information to investors and others who inquire about 
individuals and entities regulated by the Commission, the operation of 
the securities markets, or the functions of the Commission.
    (d) Advising the Commission and its staff, and exchanging 
information with domestic and international regulators and self-
regulatory organizations, about problems frequently encountered by 
investors and possible solutions to them.
    (e) Transmitting to other offices and divisions of the Commission 
information provided by investors which concerns the responsibilities 
of these offices and divisions.

[[Page 9444]]

    (f) Providing for greater investor input in Commission rulemaking 
proceedings.

0
19. Section 200.26a is revised to read as follows:


Sec.  200.26a  Office of Information Technology.

    The Office of Information Technology is responsible for the 
analysis, design programming, operation, and maintenance of all agency 
information systems; developing and implementing long-range technology 
plans and programs; coordinating all information systems analysis 
activities being considered or carried out by other divisions and 
offices, and furnishing such organizations with appropriate assistance 
and support; providing technical advice to the staff in connection with 
development of Commission rules and regulations having technology 
implications; providing expert advice on the Commission's surveillance 
of technology in the securities industry; evaluating and recommending 
new technology concepts and capabilities for application within the 
Commission; and developing technology and automation capabilities and 
support within the Commission.


Sec.  200.27  [Amended]

0
20. Section 200.27 is revised by:
0
a. Removing the words ``his or her'' and adding in their place the 
words ``the Regional Director's'';
0
b. Removing the words ``by the Deputy Director of the Division of 
Enforcement who is responsible for Regional Office enforcement 
matters'' and adding in their place the words ``by the Director or 
Deputy Director of the Division of Enforcement''; and
0
c. Removing the words ``Office of Compliance Inspections and 
Examinations'' and adding in their place the words ``Division of 
Examinations''.

0
21. Section 200.30-1 is amended by:
0
a. Revising the introductory text and paragraph (a)(3);
0
b. In paragraph (f)(2)(i), removing the word ``ommission'' and adding 
in its place the word ``omission''; and
0
c. Revising paragraphs (f)(5) and (g)(2).
    The revisions read as follows:


Sec.  200.30-1  Delegation of authority to the Director of the Division 
of Corporation Finance.

    Pursuant to sections 4A and 4B of the Securities Exchange Act of 
1934, as amended (15 U.S.C. 78d-1, 78d-2), the Securities and Exchange 
Commission hereby delegates, until the Commission orders otherwise, the 
following functions to the Director of the Division of Corporation 
Finance, to be performed by the Director or under the Director's 
direction by such person or persons as may be designated from time to 
time by the Chairman of the Commission:
    (a) * * *
    (3) To grant applications for confidential treatment of contract 
provisions pursuant to Sec.  230.406 of this chapter (Rule 406 under 
the Act); to issue orders scheduling hearings on such applications and 
to deny any such application as to which the applicant waives the 
applicant's right to a hearing, provided such applicant is advised of 
the applicant's right to have such denial reviewed by the Commission.
* * * * *
    (f) * * *
    (5) To grant or deny applications filed pursuant to section 
12(g)(1) of the Act (15 U.S.C. 78l(g)(1)) for extensions of time within 
which to file registration statements pursuant to that section, 
provided the applicant is advised of the applicant's right to have any 
such denial reviewed by the Commission.
* * * * *
    (g) * * *
    (2) In any case in which the Director of the Division of 
Corporation Finance believes it appropriate, the Director may submit 
the matter to the Commission.
* * * * *

0
22. Section 200.30-2 is added to read as follows:


Sec.  200.30-2  Delegation of authority to the Director of the Division 
of Economic and Risk Analysis and Chief Economist.

    Pursuant to sections 4A and 4B of the Securities Exchange Act of 
1934, as amended (15 U.S.C. 78d-21, 78d-22), the Securities and 
Exchange Commission hereby delegates, until the Commission orders 
otherwise, the following functions to the Director of the Division of 
Economic and Risk Analysis and Chief Economist, to be performed by that 
person or under that person's direction by such person or persons as 
may be designated from time to time by the Chairman of the Commission:
    (a) To update taxonomies and schemas required for use in Commission 
filings and made available on the Commission's website.
    (b) [Reserved]

0
23. Section 200.30-3 is amended by:
0
a. Revising the introductory text;
0
b. Removing and reserving paragraph (a)(2);
0
c. In paragraphs (a)(5), (8), and (9), removing the word ``his'' and 
adding in its place the words ``the applicant's'';
0
d. Removing and reserving paragraphs (a)(15), (37), and (40);
0
e. In paragraph (a)(43), removing the citation ``Pub. L. 87-592, 76 
Stat. 394'' and adding in its place the citation ``sections 4A and 4B 
of the Securities Exchange Act of 1934, as amended'';
0
f. Removing and reserving paragraph (a)(45);
0
g. Revising paragraph (a)(47);
0
h. Removing and reserving paragraph (a)(48);
0
i. In paragraph (a)(49):
0
i. Removing ``Rule 609 thereunder (17 CFR 242.609)'' and adding in its 
place ``17 CFR 242.609 (Rule 609 thereunder)''; and
0
ii. Removing the words ``that section and any rules or regulations 
promulgated thereunder'' and adding in their place ``Rule 609'';
0
j. Removing and reserving paragraphs (a)(60), (67), and (84);
0
k. Adding paragraphs (a)(86) through (94);
0
l. Removing and reserving paragraphs (b) and (c); and
0
m. Revising paragraph (l).
    The revisions and additions read as follows:


Sec.  200.30-3  Delegation of authority to Director of the Division of 
Trading and Markets.

    Pursuant to sections 4A and 4B of the Securities Exchange Act of 
1934, as amended (15 U.S.C. 78d-1, 78d-2), the Securities and Exchange 
Commission hereby delegates, until the Commission orders otherwise, the 
following functions to the Director of the Division of Trading and 
Markets to be performed by the Director or under the Director's 
direction by such person or persons as may be designated from time to 
time by the Chairman of the Commission:
    (a) * * *
    (47) Pursuant to section 15(a)(2) of the Act, 15 U.S.C. 78o(a)(2), 
to review and, either unconditionally or on specified terms and 
conditions, grant exemptions from the broker-dealer registration 
requirements of section 15(a)(1) of the Act, 15 U.S.C. 78o(a)(1), to 
Government securities brokers or Government securities dealers that 
have registered with the Commission under section 15C(a)(2) of the Act, 
15 U.S.C. 78o-5(a)(2), solely with respect to effecting any 
transactions in, or inducing or attempting to induce the purchase or 
sale of, any security principally backed by a guaranty of the United 
States.
* * * * *
    (86) To authorize the issuance of orders granting on-going 
registration to security-based swap dealers and major security-based 
swap participants based on the security-based swap dealer's or major 
security-based swap participant's application, pursuant to Sec.  
240.15Fb2-1(e) of this chapter (Rule 15Fb2-1(e)).

[[Page 9445]]

    (87) To authorize the issuance of orders canceling the registration 
of security-based swap dealers and major security-based swap 
participants registered pursuant to Sec.  240.15Fb2-1 of this chapter 
(Rule 15Fb2-1) if such persons are no longer in existence or have 
ceased to do business as security-based swap dealers or major security-
based swap participants, pursuant to Sec.  240.15Fb3-3(a) of this 
chapter (Rule 15Fb3-3(a)).
    (88) To determine by order, pursuant to Sec.  240.15Fb3-2(b) of 
this chapter (Rule 15Fb3-2(b)), whether notices of withdrawal of 
registration filed by security-based swap dealers or major security-
based swap participants pursuant to section 15F(b) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78o-10(b)) shall become effective 
sooner than the normal 60 day period provided in Rule 15Fb3-2(b) (Sec.  
240.15Fb3-2(b) of this chapter).
    (89) To authorize the publication in the Federal Register of 
notices that a complete application for substituted compliance has been 
submitted to the Commission, pursuant to Sec.  240.0-13 of this chapter 
(Rule 0-13).
    (90) To grant applications made pursuant to Sec.  201.194 of this 
chapter (Rule 194 of the Commission's Rules of Practice).
    (91) Pursuant to section 19(b) of the Act, 15 U.S.C. 78s(b), and 
Sec.  240.19b-4(n) of this chapter (Rule 19b-4), to publish notices of 
advance notices filed by designated clearing agencies.
    (92) Pursuant to section 19(b) of the Act, 15 U.S.C. 78s(b), and 
Sec.  240.19b-4(n) of this chapter (Rule 19b-4), to publish notices of 
withdrawals of advance notices filed by designated clearing agencies.
    (93) Pursuant to section 806(e)(1) of the Payment, Clearing, and 
Settlement Supervision Act of 2010, 12 U.S.C. 5465(e)(1)(D), to require 
a designated clearing agency to provide any information necessary to 
assess the effect the proposed change would have on the nature or level 
of risks associated with the designated clearing agency's payment, 
clearing, or settlement activities and the sufficiency of any proposed 
risk management techniques.
    (94) Pursuant to section 806(e)(1) of the Payment, Clearing, and 
Settlement Supervision Act of 2010, 12 U.S.C. 5465(e)(1)(H), to extend 
the review period for an additional 60 days for proposed changes that 
raise novel or complex issues and provide the designated clearing 
agency with prompt written notice of such extension.
* * * * *
    (l) Notwithstanding anything in paragraphs (a) through (k) of this 
section, in any case in which the Director of the Division of Trading 
and Markets believes it appropriate, the Director may submit the matter 
to the Commission.

0
24. Section 200.30-3a is amended by:
0
a. In the introductory text, removing the words ``him or under his'' 
and adding in their place ``the Director or under the Director's'';
0
b. Adding paragraphs (a)(2) through (14);
0
c. Redesignating paragraph (b) as paragraph (c); and
0
d. Adding new paragraph (b).
    The additions read as follows.


Sec.  200.30-3a  Delegation of authority to the Director of the Office 
of Municipal Securities.

* * * * *
    (a) * * *
    (2) Pursuant to section 19(b) of the Act, 15 U.S.C. 78s(b), and 
Sec.  240.19b-4 of this chapter (Rule 19b-4), to publish notices of 
proposed rule changes filed by the Municipal Securities Rulemaking 
Board and to approve such proposed rule changes, and to find good cause 
to approve a proposed rule change earlier than 30 days after the date 
of publication of such proposed rule change and to publish the reasons 
for such finding. Pursuant to section 19(b) of the Act, 15 U.S.C. 
78s(b), and Rule 19b-4 (Sec.  240.19b-4 of this chapter), to disapprove 
a proposed rule change, provided that, with respect to a particular 
proposed rule change, if two (2) or more Commissioners object in 
writing to the Director within five (5) business days of being notified 
by the Director that the Office intends to exercise its authority to 
disapprove that particular proposed rule change, then the delegation of 
authority to approve or disapprove that proposal is withdrawn, and the 
Director shall either present a recommendation to the Commission or 
institute pursuant to delegated authority proceedings to determine 
whether the proposed rule change should be disapproved. In addition, 
pursuant to section 19(b)(10) of the Act, 15 U.S.C. 78s(b)(10), to 
notify the Municipal Securities Rulemaking Board that a proposed rule 
change does not comply with the rules of the Commission relating to the 
required form of a proposed rule change, and to determine that a 
proposed rule change is unusually lengthy and complex or raises novel 
regulatory issues and to inform the Municipal Securities Rulemaking 
Board of such determination.
    (3) Pursuant to section 15B(a) of the Act [15 U.S.C. 78o-4(a)], to 
authorize the issuance of orders granting registration of municipal 
securities dealers within forty-five days of the filing of an 
application for registration as a municipal securities dealer (or 
within such longer period as to which the applicant consents).
    (4)(i) To grant and deny applications for confidential treatment 
filed pursuant to section 24(b) of the Act (15 U.S.C. 78x(b)) and Sec.  
240.24b-2 of this chapter (Rule 24b-2 thereunder);
    (ii) To revoke a grant of confidential treatment for any such 
application.
    (5) Pursuant to section 17(b) of the Act (15 U.S.C. 78q(b)), prior 
to any examination of a registered municipal securities dealer whose 
appropriate regulatory agency is not the Commission, to notify and 
consult with the appropriate regulatory agency for such municipal 
securities dealer.
    (6) Pursuant to section 17(c)(3) of the Act, 15 U.S.C. 78q(c)(3), 
in regard to municipal securities dealers for which the Commission is 
not the appropriate regulatory agency:
    (i) To notify the appropriate regulatory agency of any examination 
conducted by the Commission of any such municipal securities dealer;
    (ii) To request from the appropriate regulatory agency a copy of 
the report of any examination of any such municipal securities dealer 
conducted by such appropriate regulatory agency and any data supplied 
to it in connection with such examination; and
    (iii) To furnish to the appropriate regulatory agency on request a 
copy of the report of any examination of any such municipal securities 
dealer conducted by the Commission and any data supplied to it in 
connection with such examination.
    (7) Pursuant to section 19(b)(2)(A) of the Act, 15 U.S.C. 
78s(b)(2)(A), to extend for a period not exceeding 90 days from the 
date of publication of notice of the filing of a proposed rule change 
by the Municipal Securities Rulemaking Board pursuant to section 
19(b)(1) of the Act, 15 U.S.C. 78s(b)(1), the period during which the 
Commission must by order approve or disapprove the proposed rule change 
or institute proceedings to determine whether the proposed rule change 
should be disapproved and to determine whether such longer period is 
appropriate and publish the reasons for such determination.
    (8) Pursuant to 17 CFR 15c2-12(e) (Rule 15c2-12(e)), to grant or 
deny exemptions, either unconditionally or on specified terms and 
conditions, from Rule 15c2-12.
    (9) To administer the provisions of Sec.  240.24c-1 of this 
chapter; provided that access to nonpublic information as defined in 
Sec.  240.24c-1 shall be provided

[[Page 9446]]

only with the concurrence of the head of the Commission division or 
office responsible for such information or the files containing such 
information.
    (10) To administer the provisions of section 24(d) of the Act (15 
U.S.C. 78x(d)).
    (11) Pursuant to section 19(b)(2) of the Act, 15 U.S.C. 78s(b)(2), 
and section 19(b)(3) of the Act, 15 U.S.C. 78s(b)(3), to institute 
proceedings to determine whether a proposed rule change of the 
Municipal Securities Rulemaking Board should be disapproved and to 
provide to the Municipal Securities Rulemaking Board notice of the 
grounds for disapproval under consideration. If the Commission has not 
taken action on a proposed rule change for which delegated authority 
has been withdrawn under paragraph (a)(12) of this section prior to the 
expiration of the applicable time period specified in section 19(b)(2) 
of the Act, 15 U.S.C. 78s(b)(2), then the Director shall institute 
pursuant to delegated authority proceedings to determine whether the 
proposed rule change should be disapproved. In addition, pursuant to 
section 19(b)(2)(B) of the Act, 15 U.S.C. 78s(b)(2)(B), to extend for a 
period not exceeding 240 days from the date of publication of notice of 
the filing of a proposed rule change pursuant to section 19(b)(1) of 
the Act, 15 U.S.C. 78s(b)(1), the period during which the Commission 
must issue an order approving or disapproving the proposed rule change 
and to determine whether such longer period is appropriate and publish 
the reasons for such determination.
    (12) Pursuant to section 19(b)(3)(C) of the Act, 15 U.S.C. 
78s(b)(3)(C), to temporarily suspend a change in the rules of the 
Municipal Securities Rulemaking Board.
    (13) Pursuant to Sec.  240.19b-4(f)(6)(iii) of this chapter (Rule 
19b-4(f)(6)(iii)), to reduce the period before which a proposed rule 
change can become operative, and to reduce the period between an 
Municipal Securities Rulemaking Board submission of a filing and a pre-
filing notification.
    (14) Pursuant to section 36 of the Act (15 U.S.C. 78mm), to review 
and grant or deny exemptions from the rule filing requirements of 
section 19(b) (15 U.S.C. 78s(b)) of the Act, in a case where the 
Municipal Securities Rulemaking Board elects to incorporate by 
reference one or more rules of another self-regulatory organization, 
provided that the following specified terms and conditions are met:
    (i) The Municipal Securities Rulemaking Board, when electing to 
incorporate rules of another self-regulatory organization, has 
requested to incorporate rules other than trading rules (e.g., the 
Municipal Securities Rulemaking Board has requested to incorporate 
rules such as margin, suitability, arbitration);
    (ii) The Municipal Securities Rulemaking Board, when electing to 
incorporate rules of another self-regulatory organization has requested 
to incorporate by reference categories of rules (rather than to 
incorporate individual rules within a category); and
    (iii) The Municipal Securities Rulemaking Board has reasonable 
procedures in place to provide written notice to its members each time 
a change is proposed to the incorporated rules of another self-
regulatory organization.
    (b) To consult on behalf of the Commission pursuant to section 
18(t)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1828(t)(1)) 
with respect to matters described in Sec.  200.19a.
* * * * *

0
25. Section 200.30-3b is added to read as follows:


Sec.  200.30-3b   Delegation of authority to Director of the Office of 
Credit Ratings.

    Pursuant to the provisions of Public Law 100-181, 101 Stat. 1254, 
1255 (15 U.S.C. 78d-1, 78d-2), the Securities and Exchange Commission 
hereby delegates, until the Commission orders otherwise, the following 
functions to the Director of the Office of Credit Ratings to be 
performed by the Director or under the direction of the Director by 
such person or persons as may be designated from time to time by the 
Chairman of the Commission:
    (a) With respect to the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.):
    (1) To grant and deny applications for confidential treatment filed 
pursuant to section 24(b) of the Act (15 U.S.C. 78x(b)) and Sec.  
240.24b-2 of this chapter (Rule 24b-2 thereunder);
    (2) To revoke a grant of confidential treatment for any such 
application.
    (b) With respect to the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.):
    (1) To administer the provisions of Sec.  240.24c-1 of this 
chapter; provided that access to nonpublic information as defined in 
Sec.  240.24c-1 shall be provided only with the concurrence of the head 
of the Commission division or office responsible for such information 
or the files containing such information.
    (2) To administer the provisions of section 24(d) of the Act (15 
U.S.C. 78x(d)).


Sec.  200.30-5  [Amended]

0
26. Section 200.30-5 is amended by:
0
a. In the introductory text:
0
i. Removing the citation ``Pub. L. 87-592, 76 Stat. 394'' and adding in 
its place the citation ``sections 4A and 4B of the Securities Exchange 
Act of 1934, as amended,''; and
0
ii. Removing the words ``him or under his'' and adding in their place 
the words ``the Director or under the Director's'';
0
b. In paragraph (a)(4)(ii), removing the word ``he'' and adding in its 
place the words ``the applicant'';
0
c. In paragraph (b-1)(1), removing the word ``him'' and adding in its 
place the words ``the Director'';
0
d. In paragraph (b-1)(2):
0
i. Removing the word ``he'' and adding in its place the words ``the 
Director''; and
0
ii. Removing the word ``him'' and adding in its place the words ``the 
Director'';
0
e. Removing and reserving paragraph (h)(1); and
0
f. In paragraph (h)(2), removing the word ``he'' and adding in its 
place the words ``the Director''.

0
27. Section 200.30-6 is amended by:
0
a. In the introductory text:
0
i. Removing ``the provisions of Pub. L. 87-592, 76 Stat. 394'' and 
adding in its place ``sections 4A and 4B of the Securities Exchange Act 
of 1934, as amended (15 U.S.C. 78d-1, 78d-2)''; and
0
ii. Removing the words ``him or under his'' and adding in their place 
the words ``the Regional Director or under the Regional Director's''; 
and
0
b. Revising paragraph (e).
    The revision reads as follows:


Sec.  200.30-6  Delegation of authority to Regional Directors.

* * * * *
    (e) Notwithstanding anything in paragraphs (a) through (d) of this 
section, in any case in which the Regional Director believes it 
appropriate, the Regional Director may submit the matter to the 
Commission.


Sec.  200.30-7  [Amended]

0
28. Section 200.30-7 is amended by:
0
a. In the introductory text:
0
i. Removing ``the provisions of Pub. L. 87-592, 76 Stat. 394 (15 U.S.C. 
78d-1)'' and adding in its place ``sections 4A and 4B of the Securities 
Exchange Act of 1934, as amended (15 U.S.C. 78d-1, 78d-2)''; and
0
ii. Removing the words ``him or under his'' and adding in their place 
the words ``the Secretary or under the Secretary's'';
0
b. In paragraph (d):
0
i. Removing the citation ``Sec.  200.30-14(i)'' and adding in its place 
the citation ``Sec.  200.30-14(h) and (j)''; and

[[Page 9447]]

0
ii. Removing the citation ``Sec.  200.30-14(j)'' and adding in its 
place the citation ``Sec.  200.30-14(i) and (k)''; and
0
c. In paragraph (e):
0
i. Removing the words ``the foregoing'' and adding in their place 
``paragraphs (a) through (d) of this section''; and
0
ii. Removing the words ``he or she'' and adding in their place the 
words ``the Secretary''.


Sec.  200.30-10  [Amended]

0
29. Section 200.30-10 is amended by:
0
a. In the introductory text:
0
i. Removing ``the provisions of Pub. L. 87-592, 76 Stat. 394'' and 
adding in its place ``sections 4A and 4B of the Securities Exchange Act 
of 1934, as amended''; and
0
ii. Removing the word ``his'' and adding in its place ``the Chief 
Administrative Law Judge's'';
0
b. In paragraph (a)(6):
0
i. Removing the word ``subpenas'' and adding ``subpoenas''; and
0
ii. Removing ``Rule 232 of the Commission's Rules of Practice, 201.232 
of this chapter'' and adding in its place ``Sec.  201.232 of this 
chapter (Rule 232 of the Commission's Rules of Practice)''; and
0
c. In paragraph (c):
0
i. Removing the words ``the foregoing'' and adding in their place 
``paragraphs (a) and (b) of this section''; and
0
ii. Removing the words ``he or she'' and adding in their place ``the 
Chief Administrative Law Judge''.

0
30. Section 200.30-11 is amended by:
0
a. In the introductory text, removing the words ``him or her or under 
his or her'' and adding in their place the words ``the Chief Accountant 
or under the Chief Accountant's'';
0
b. In paragraph (a)(4):
0
i. Removing the words ``he or she'' and adding in their place the words 
``the Chief Accountant''; and
0
ii. Removing the citation ``Sec.  202.140'' and adding in its place 
``Sec.  202.140 of this chapter'';
0
c. In paragraph (b)(2), removing the words ``his or her'' and adding in 
their place the words ``the Chief Accountant's'';
0
d. Redesignating paragraph (c) as paragraph (d);
0
e. Adding new paragraph (c); and
0
f. In newly redesignated paragraph (d):
0
i. Removing the words ``the foregoing'' and adding in their place 
``paragraphs (a) through (c) of this section''; and
0
ii. Removing the words ``he or she'' and adding in their place the 
words ``the Chief Accountant''.
    The addition reads as follows:


Sec.  200.30-11  Delegation of authority to the Chief Accountant.

* * * * *
    (c) To administer the provisions of Sec.  240.24c-1 of this 
chapter; provided that access to nonpublic information as defined in 
Sec.  240.24c-1 shall be provided only with the concurrence of the head 
of the Commission division or office responsible for such information 
or the files containing such information.
* * * * *


Sec.  200.30-13  [Amended]

0
31. Section 200.30-13 is amended by:
0
a. In the introductory text, removing the words ``him or her, or under 
his or her'' and adding in their place the words ``the Chief Financial 
Officer or under the Chief Financial Officer's''; and
0
b. In paragraph (c), removing the words ``his or her'' and adding in 
their place the words ``the Secretary of the Treasury's''.


Sec.  200.30-14  [Amended]

0
32. Section 200.30-14 is amended by:
0
a. In the introductory text, removing the words ``him or her or under 
his or her'' and adding in their place the words ``the General Counsel 
or under the General Counsel's'';
0
b. In paragraph (b), removing the words ``and amicus curiae'' and 
adding in their place the words ``an amicus curiae'';
0
c. In paragraph (h)(1)(iii), removing the word ``his'' and adding in 
its place the word ``an'';
0
d. In paragraph (i):
0
i. Removing the words ``paragraph (g) of this section, the functions 
described in paragraph (g)'' and adding in their place the words 
``paragraph (h) of this section, the functions described in paragraph 
(h)'';
0
ii. Removing the words ``Executive Assistant to the Chairman'' and 
adding in its place the words ``Secretary of the Commission''; and
0
iii. Removing the citation ``Sec.  200.30-16'' and adding in its place 
the citation ``Sec.  200.30-7''; and
0
e. In paragraph (l):
0
i. Removing the citation ``paragraphs (g) or (i)'' and adding in its 
place ``paragraph (h) or (j)''; and
0
ii Removing the words ``he or she'' and adding in their place the words 
``the General Counsel''.


Sec.  200.30-15  [Amended]

0
33. Section 200.30-15 is amended by removing the words ``him or her or 
under his or her'' and adding in their place the words ``the Chief 
Operating Officer or under the Chief Operating Officer's''.


Sec.  200.30-16  [Removed and Reserved]

0
34. Section 200.30-16 is removed and reserved.

0
35. Section 200.30-18 is amended by:
0
a. Revising the section heading and introductory text;
0
b. Removing and reserving paragraphs (b), (e) through (h), and (k)(2);
0
c. In paragraph (l)(1), removing the words ``him or her'' and adding in 
their place the words ``the member'';
0
d. Redesignating paragraph (m) as paragraph (n);
0
e. Adding new paragraph (m); and
0
f. In newly redesignated paragraph (n):
0
i. Removing the words ``the foregoing'' and adding in their place 
``paragraphs (a) through (m) of this section''; and
0
ii. Removing the words ``the OCIE'' and adding in their place the word 
``Examinations''.
    The addition and revisions read as follows:


Sec.  200.30-18  Delegation of authority to Director of the Division of 
Examinations.

    Pursuant to the provisions of Public Law 100-181, 101 Stat. 1254, 
1255 (15 U.S.C. 78d-1, 78d-2), the Securities and Exchange Commission 
hereby delegates, until the Commission orders otherwise, the following 
authority to the Director of the Division of Examinations 
(``Examinations'') to be performed by the Director or by such other 
person or persons as may be designated from time to time by the 
Chairman of the Commission:
* * * * *
    (m) With respect to the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.):
    (1) Under section 15F(b) of the Act (15 U.S.C. 78o-10(b)):
    (i) To authorize the issuance of orders granting on-going 
registration to security-based swap dealers and major security-based 
swap participants based on the security-based swap dealer's or major 
security-based swap participant's application, pursuant to Sec.  
240.15Fb2-1(e) of this chapter (Rule 15Fb2-1(e));
    (ii) To authorize the issuance of orders canceling the registration 
of security-based swap dealers and major security-based swap 
participants registered pursuant to Sec.  240.15Fb2-1 of this chapter 
(Rule 15Fb2-1) if such persons are no longer in existence or have 
ceased to do business as security-based swap dealers or major security-
based swap participants, pursuant to Sec.  240.15Fb3-3(a) of this 
chapter (Rule 15Fb3-3(a)); and
    (iii) To determine by order, pursuant to Sec.  240.15Fb3-2(b) of 
this chapter (Rule 15Fb3-2(b)), whether notices of withdrawal of 
registration filed by

[[Page 9448]]

security-based swap dealers or major security-based swap participants 
pursuant to section 15F(b) of the Securities Exchange Act of 1934 (15 
U.S.C. 78o-10(b)) shall become effective sooner than the normal 60 day 
waiting period provided in Rule 15Fb3-2(b) (Sec.  240.15Fb3-2(b) of 
this chapter).
* * * * *

    By the Commission.

    Dated: December 22, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020-28819 Filed 2-12-21; 8:45 am]
BILLING CODE 8011-01-P

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