SEC Adopts New Rules of Practice for Disapproving SRO Proposed Rule Changes

The SEC adopted rules setting forth the procedural requirements of proceedings to determine whether a proposed rule change filed by a SRO should be disapproved.  These rules are required by Section 916 of the Dodd-Frank Act. The new Rules of Practice will formalize the process it will use when conducting proceedings to determine whether an SRO’s proposed rule change should be disapproved under Section 19(b)(2) of the Exchange Act. The new rules are intended to add transparency to the Commission’s conduct of those proceedings.