Securities Lawyer's Deskbook                          published by The University of Cincinnati College of Law

Rule 19b-7 -- Filings with Respect to Proposed Rule Changes Submitted Pursuant to Section 19(b)(7) of the Act

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Preliminary Note: A self-regulatory organization also must refer to Form 19b-7 for further requirements with respect to the filing of proposed rule changes.

1. Filings with respect to proposed rule changes by a self-regulatory organization submitted pursuant to section 19(b)(7) of the Act shall be made electronically on Form 19b-7.
   
   
2. A proposed rule change will not be deemed filed on the date it is received by the Commission unless:
   
   
   1. A completed Form 19b-7 is submitted electronically; and
      
      
   2. In order to elicit meaningful comment, it is accompanied by:
      
      
      1. A clear and accurate statement of the basis and purpose of such rule change, including the impact on competition or efficiency, if any; and
         
         
      2. A summary of any written comments (including e-mail) received by the self-regulatory organization on the proposed rule change.
         
         
3. Self-regulatory organizations shall retain at their principle place of business a file, available to interested persons for public inspection and copying, of all filings made pursuant to this section and all correspondence and other communications reduced to writing (including comment letters) to and from such self-regulatory organization concerning such filing, whether such correspondence and communications are received or prepared before or after the filing of the proposed rule change.
   
   
4. Filings with respect to proposed rule changes by a self-regulatory organization submitted on Form 19b-7 electronically shall contain an electronic signature. For the purposes of this section, the term electronic signature means an electronic entry in the form of a magnetic impulse or other form of computer data compilation of any letter or series of letters or characters comprising a name, executed, adopted or authorized as a signature. The signatory to an electronically submitted rule filing shall manually sign a signature page or other document, in the manner prescribed by Form 19b-7, authenticating, acknowledging or otherwise adopting his or her signature that appears in typed form within the electronic filing. Such document shall be executed before or at the time the rule filing is electronically submitted and shall be retained by the filer in accordance with 17 CFR 240.17a-1.
   
   
5. If the conditions of this section and Form 19b-7 are otherwise satisfied, all filings submitted electronically on or before 5:30 p.m. Eastern Standard Time or Eastern Daylight Saving Time, whichever is currently in effect, on a business day, shall be deemed filed on that business day, and all filings submitted after 5:30 p.m. Eastern Standard Time or Eastern Daylight Saving Time, whichever is currently in effect, shall be deemed filed on the next business day.
   
   
6. The self-regulatory organization shall post the proposed rule change, and any amendments thereto, submitted on Form 19b-7, on its Web site within two business days after the filing of the proposed rule change, and any amendments thereto, with the Commission. Unless the self-regulatory organization withdraws the proposed rule change or is notified that the proposed rule change is not properly filed, such proposed rule change and amendments shall be maintained on the self-regulatory organization's Web site until 60 days after:
   
   
   1. The filing of a written certification with the Commodity Futures Trading Commission under section 5c(c) of the Commodity Exchange Act.
      
      
   2. The Commodity Futures Trading Commission determines that review of the proposed rule change is not necessary; or
      
      
   3. The Commodity Futures Trading Commission approves the proposed rule change; and
      
      
   4. In the case of a proposed rule change, or any amendment thereto, that has been withdrawn or not properly filed, the self-regulatory organization shall remove the proposed rule change, or any amendment, from its Web site within two business days of notification of improper filing or withdrawal by the self-regulatory organization of the proposed rule change.
      
      
7. 
   
   
   1. Each self-regulatory organization shall post and maintain a current and complete version of its rules on its Web site.
      
      
   2. The self-regulatory organization shall update its Web site to reflect rule changes filed pursuant to section 19(b)(7) of the Act, by two business days after the later of:
      
      
      1. The Commission's notice of such proposed rule change; and
         
         
      2. 
         
         
         1. The filing of a written certification with the Commodity Futures Trading Commission under section 5c(c) of the Commodity Exchange Act (7 U.S.C. 7a-2(c));
            
            
         2. Receipt of notice from the Commodity Futures Trading Commission that it has determined that review of the proposed rule change is not necessary; or
            
            
         3. Receipt of notice from the Commodity Futures Trading Commission that it has approved the proposed rule change.
            
            
   3. If a rule change is not effective for a certain period, the self-regulatory organization shall clearly indicate the effective date in the relevant rule text.
      
      

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