(1) A clearing agency shall submit to the Commission—
(a) all proposed rules and amendments to rules of the clearing agency; and
(b) explanations of the purpose and likely effect, including the effect on the investing public of all proposed rules or amendments to rules, in sufficient detail to enable the Commission to decide whether to approve such rules or refuse to approve them.
(2) The proposed rules of a clearing agency or an amendment to its rules shall not have effect unless the Commission has approved them in writing.
(3) The Commission shall, within 30 days after receiving the proposed rules or amendments for approval, give notice in writing to the clearing agency that—
(a) it approves them; or
(b) it refuses to approve them.
(4) The Commission shall not refuse a proposed rule or an amendment to a rule without first giving the clearing agency an opportunity of being heard.