participant or the jurisdiction of establishment of any entity that

owns or controls the equity or indebtedness of a market

participant.

2.

The relationship between a regulator and a licensed market

participant should be governed by the standards set forth in

relevant rules and regulations, and should not be subject to

political or other extraneous or improper considerations.

3.

The introduction of new securities products and services by firms

should be governed by the standards set forth in relevant rules and

regulations

C. 

Regulations should be clear and understandable.  Clear and

understandable regulations and rulings provide market participants with

the predictability and necessary knowledge to comply with regulations.

Opaque or ambiguous regulations and rulings create uncertainty among

investors and licensed market participants.

D.

All regulations should be publicly available at all times.  All regulations

should be made, and at all times remain, publicly available, including

requirements to obtain, renew or retain authorization to supply a service.

Disciplinary actions should not be taken based on violations of regulatory

standards that were not in effect at the time the relevant activity took

place.

E.

Regulators should issue and make available to the public final regulatory

actions and the basis for those actions, in order to enhance public

understanding thereof.

III.

Rulemaking and Implementation

A.

The rulemaking process

1.

Regulators should utilize open and public processes for

consultation with the public on new regulations and changes to

existing regulations.  New regulations should be adopted or

imposed on market participants only after they have been made

available for public comment (by way of hearing or opportunity for

written comment) for a reasonable period, normally not less than

one month.

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