Registration of Broker-Dealers Pursuant to Section 15(b)(11) of the Securities Exchange Act of 1934

The Securities and Exchange Commission ("Commission") is adopting rules to implement certain provisions of the Commodity Futures Modernization Act of 2000 ("CFMA"). First, the Commission is amending its broker-dealer registration requirements and adopting a new form to implement Section 203 of the CFMA. Under this section, futures commission merchants and introducing brokers that are registered with the Commodity Futures Trading Commission ("CFTC") may register as broker-dealers by filing a notice with the Commission for the limited purpose of effecting transactions in security futures products. Second, the Commission is adopting an exemption from registration under Section 15(a) of the Securities Exchange Act of 1934 ("Exchange Act"). Subject to certain conditions, this exemption permits a broker- dealer registered by notice to trade security futures products regardless of the market on which the product is listed or traded. Third, the Commission is adopting amendments to Regulation S-P, which was implemented under the Gramm-Leach-Bliley Act ("GLBA"). These amendments will revise certain provisions of Regulation S-P in light of Section 124 of the CFMA, which makes the privacy provisions of the GLBA applicable to activity regulated by the CFTC. These amendments will also permit futures commission merchants and introducing brokers that are registered by notice as broker-dealers to comply with Regulation S-P by complying with the CFTC's financial privacy rules.