Page:United States Statutes at Large Volume 114 Part 5.djvu/460

 114 STAT. 2763A-420 PUBLIC LAW 106-554—APPENDIX E "(ii) GROUNDS FOR APPROVAL. —The Commission shall approve a proposed rule change of a self-regulatory organization under this subparagraph if the Commission finds that such proposed rule change does not unduly burden competition or efficiency, does not conflict with the securities laws, and is not inconsistent with the public interest or the protection of investors. The Commission shall disapprove such a proposed rule change of a self-regulatory organization if it does not make such finding. The Commission shall not approve any proposed rule change prior to the 30th day after the date of publication of notice of the filing thereof, unless the Commission finds good cause for so doing and publishes its reasons for so finding.". (2) DECIMAL PRICING PROVISIONS.— Section 19(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by inserting after paragraph (7), as added by paragraph (1), the following: "(8) DECIMAL PRICING.— Not later than 9 months after the date on which trading in any security futures product commences under this title, all self-regulatory organizations listing or trading security futures products shall file proposed rule changes necessary to implement decimal pricing of security futures products. The Commission may not require such rules to contain equal minimum increments in such decimal pricing.". (3) CONSULTATION PROVISIONS.— Section 19(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by inserting after paragraph (8), as added by paragraph (2), the following: " (9) CONSULTATION WITH CFTC.— "(A) CONSULTATION REQUIRED. —The Commission shall consult with and consider the views of the Commodity Futures Trading Commission prior to approving or disapproving a proposed rule change filed by a national securities association registered pursuant to section 15A(a) or a national securities exchange subject to the provisions of subsection (a) that primarily concerns conduct related to transactions in security futures products, except where the Commission determines that an emergency exists requiring expeditious or summary action and publishes its reasons therefor. " (B) RESPONSES TO CFTC COMMENTS AND FINDINGS.— If the Commodity Futures Trading Commission comments in writing to the Commission on a proposed rule that has been published for comment, the Commission shall respond in writing to such written comment before approving or disapproving the proposed rule. If the Commodity Futures Trading Commission determines, and notifies the Commission, that such rule, if implemented or as applied, would— "(i) adversely affect the liquidity or efficiency of the market for security futures products; or "(ii) impose any burden on competition not necessary or appropriate in furtherance of the purposes of this section, the Commission shall, prior to approving or disapproving the proposed rule, find that such rule is necessary and

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