80 FR 21790 - Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX BX, Inc. Relating to Member Application
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 75 (April 20, 2015)
Federal Register Volume 80, Issue 75 (April 20, 2015)
| Page Range | 21790-21792 | |
| FR Document | 2015-08940 |
[Federal Register Volume 80, Number 75 (Monday, April 20, 2015)] [Notices] [Pages 21790-21792] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-08940] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74724; File No. SR-BX-2015-017] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX BX, Inc. Relating to Member Application April 14, 2015. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on April 8, 2015, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change BX proposes to amend Rule 1013 titled ``New Member Application'' to include an expedited application process for firms that are already approved members of NASDAQ OMX PHLX LLC (``PHLX''). The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqomxbx.cchwallstreet.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of [[Page 21791]] the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend BX Rule 1013(a)(5), entitled Applicants That Are Members of an Association or Another Exchange, to permit an expedited review for new member applications seeking BX membership provided those applicants are approved members of PHLX. Specifically, Exchange Rule 1013(a)(5)(C) currently permits the Exchange to accept applicants that gained membership at Financial Industry Regulatory Authority (``FINRA'') or The NASDAQ Stock Market LLC (``NASDAQ'') when considering a BX new member application. Applicants who are approved members of FINRA or NASDAQ are eligible for an abbreviated waive-in application eliminating the submission and review of duplicative supplemental material that has already been submitted and reviewed in connection with a FINRA or NASDAQ new member application. At this time, the Exchange proposes to extend the abbreviated application process already in place for approved FINRA and/or NASDAQ members to PHLX members. The Exchange notes that the PHLX qualifications are the same as those applicable to BX membership requirements. PHLX approved members seeking BX membership will be required to submit a fully executed Waive-In Membership Application and Membership Agreement but will not be required to submit any duplicative documentation that was previously provided as part of the PHLX application. These PHLX members would still be required to provide additional information if there has been a material change in status from its original application with PHLX. Applicants will be required to attest that the information provided as part of previously conducted new membership review remains complete and accurate. The Exchange also proposes to amend language in section (C) of this rule to further harmonize the application with the current NASDAQ application by updating the title of the BX membership application from ``Short Form'' to ``Waive-in'' and deleting unnecessary language that does not appear in the corresponding NASDAQ rule. The application is attached as Exhibit 3. 2. Statutory Basis The Exchange believes that its proposal is consistent with section 6(b) of the Act \3\ in general, and furthers the objectives of section 6(b)(5) of the Act \4\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f(b). \4\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Today, the BX Membership Department performs similar functions when reviewing new member applications for BX, NASDAQ and PHLX.\5\ The Membership Department reviews: Applicant business plans, clearing arrangements, FOCUS reports, organizational charts, and written supervisory procedures for applicants desiring membership in any of the aforementioned markets. These membership requirements include, but are not limited to, review of registration as a Broker Dealer with the Commission, a net capital review, qualification of associated persons and examining written supervisory procedures. The same material is considered for each new member review conducted by FINRA on behalf of BX. --------------------------------------------------------------------------- \5\ Today, FINRA conducts the new member application reviews for NASDAQ and BX pursuant to a 17d-2 and Regulatory Services Agreement. These application reviews are administered by FINRA and subject to BX's final review and decision. PHLX maintains a separate new member application review that is conducted by NASDAQ and not FINRA. --------------------------------------------------------------------------- This proposed amendment is consistent with its current practices today when reviewing applications for members of NASDAQ and FINRA. BX proposes this rule change to harmonize its affiliated exchanges' rules to provide applicants similar application procedures for each of its markets. The PHLX new member review process is consistent with the BX new member review process. Applicants that are members of PHLX should be eligible for the waive-in process when seeking membership on BX similar to current waive-in opportunities available today for NASDAQ and FINRA members. The proposed rule change would eliminate the duplicate review for prospective BX applicants that were approved for membership by PHLX. The waive-in process will promote efficiency with respect to the Exchange's membership review process and reduce the burden on applicants that have already been approved for membership on PHLX by reducing the duplicative information and documentation required to be provided to the Exchange for these members. As a result, Exchange staff will be able to focus its regulatory efforts on reviewing any material changes or new information that may affect the applicant's eligibility for Exchange membership. This proposed rule change does not affect the protection of investors as BX will maintain the vigorous membership review that is conducted today when reviewing PHLX member applications. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed waive-in process for approved PHLX members will not impose any burden on competition, but rather it will remove unnecessary burdens that currently exist for PHLX member applicants seeking BX membership. The proposal will eliminate the redundant review process for PHLX members that currently does not exist for FINRA and NASDAQ members applying to become BX members. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not significantly affect the protection of investors or the public interest; does not impose any significant burden on competition; and by its terms does not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to section 19(b)(3)(A) \6\ of the Act and Rule 19b- 4(f)(6) thereunder.\7\ --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A). \7\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: Necessary or appropriate in the public interest; for the protection of [[Page 21792]] investors; or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-BX-2015-017 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BX-2015-017. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BX-2015-017 and should be submitted on or before May 11, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-08940 Filed 4-17-15; 8:45 am] BILLING CODE 8011-01-P
![21790 Federal Register / Vol. 80, No. 75 / Monday, April 20, 2015 / Notices
not influenced by considerations about plan, rule 12b–1 requires that the fund Dated: April 15, 2015.
the sale of fund shares. obtain shareholder approval. As a Brent J. Fields,
Based on information filed with the consequence, the fund will incur the Secretary.
Commission by funds, Commission staff cost of a proxy.4 Based on previous [FR Doc. 2015–08992 Filed 4–17–15; 8:45 am]
estimates that there are approximately conversations with fund representatives, BILLING CODE 8011–01–P
7837 mutual fund portfolios that have at Commission staff estimates that
least one share class subject to a rule approximately three funds per year
12b–1 plan.1 However, many of these prepare a proxy in connection with the SECURITIES AND EXCHANGE
portfolios are part of an affiliated group COMMISSION
adoption or material amendment of a
of funds, or mutual fund family, that is
rule 12b–1 plan. Funds typically hire
overseen by a common board of [Release No. 34–74724; File No. SR–BX–
directors. Although the board must outside legal counsel and proxy
2015–017]
review and approve the rule 12b–1 plan solicitation firms to prepare, print, and
for each fund separately, we have mail such proxies. The staff further Self-Regulatory Organizations; Notice
allocated the costs and hourly burden estimates that the cost of each fund’s of Filing and Immediate Effectiveness
related to rule 12b–1 based on the proxy is $34,372. Thus the total annual of Proposed Rule Change by NASDAQ
number of fund families that have at cost burden of rule 12b–1 to the fund OMX BX, Inc. Relating to Member
least one fund that charges rule 12b–1 industry is $103,116 (3 funds requiring Application
fees, rather than on the total number of a proxy × $34,372 per proxy).
April 14, 2015.
mutual fund portfolios that individually The estimate of average burden hours
have a rule 12b–1 plan.2 Based on Pursuant to section 19(b)(1) of the
is made solely for the purposes of the Securities Exchange Act of 1934
information filed with the Commission, Paperwork Reduction Act, and is not
the staff estimates that there are (‘‘Act’’),1 and Rule 19b–4 thereunder,2
derived from a comprehensive or even notice is hereby given that on April 8,
approximately 330 fund families with
a representative survey or study of the 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ or
common boards of directors that have at
costs of Commission rules and forms. ‘‘Exchange’’) filed with the Securities
least one fund with a rule 12b–1 plan.
Based on previous conversations with The collections of information and Exchange Commission (‘‘SEC’’ or
fund representatives, Commission staff required by Rule 12b–1 are necessary to ‘‘Commission’’) the proposed rule
estimates that for each of the 330 mutual obtain the benefits of the rule. Notices change as described in Items I, II, and
fund families with a portfolio that has to the Commission will not be kept III, below, which Items have been
a rule 12b–1 plan, the average annual confidential. An agency may not prepared by the Exchange. The
burden of complying with the rule is conduct or sponsor, and a person is not Commission is publishing this notice to
425 hours. This estimate takes into required to respond to a collection of solicit comments on the proposed rule
account the time needed to prepare information unless it displays a change from interested persons.
quarterly reports to the board of currently valid control number. I. Self-Regulatory Organization’s
directors, the board’s consideration of Statement of the Terms of Substance of
those reports, and the board’s initial or Written comments are invited on: (a)
Whether the proposed collection of the Proposed Rule Change
annual consideration of whether to
continue the plan.3 We therefore information is necessary for the proper BX proposes to amend Rule 1013
estimate that the total hourly burden per performance of the functions of the titled ‘‘New Member Application’’ to
year for all funds to comply with Commission, including whether the include an expedited application
current information collection information will have practical utility; process for firms that are already
requirements under rule 12b–1, is (b) the accuracy of the Commission’s approved members of NASDAQ OMX
140,250 hours (330 fund families × 425 estimate of the burden of the collection PHLX LLC (‘‘PHLX’’).
hours per fund family = 140,250 hours). of information; (c) ways to enhance the The text of the proposed rule change
If a currently operating fund seeks to quality, utility, and clarity of the is available on the Exchange’s Web site
(i) adopt a new rule 12b–1 plan or (ii) information collected; and (d) ways to at http://
materially increase the amount it spends minimize the burden of the collection of nasdaqomxbx.cchwallstreet.com, at the
for distribution under its rule 12b–1 information on respondents, including principal office of the Exchange, and at
through the use of automated collection the Commission’s Public Reference
1 This estimate is based on information from the
techniques or other forms of information Room.
Commission’s NSAR database.
2 This allocation is based on previous technology. Consideration will be given II. Self-Regulatory Organization’s
conversations with fund representatives on how to comments and suggestions submitted Statement of the Purpose of, and
fund boards comply with the requirements of rule in writing within 60 days of this Statutory Basis for, the Proposed Rule
12b–1. Despite this allocation of hourly burdens Change
and costs, the number of annual responses each
publication.
year will continue to depend on the number of fund Please direct your written comments In its filing with the Commission, the
portfolios with rule 12b–1 plans rather than the Exchange included statements
number of fund families with rule 12b–1 plans. The
to Pamela Dyson, Director/Chief
staff estimates that the number of annual responses Information Officer, Securities and concerning the purpose of and basis for
per fund portfolio will be four per year (quarterly, Exchange Commission, C/O Remi the proposed rule change and discussed
with the annual reviews taking place at one of the Pavlik-Simon, 100 F Street NE., any comments it received on the
quarterly intervals). Thus, we estimate that funds
mstockstill on DSK4VPTVN1PROD with NOTICES
Washington, DC 20549; or send an email proposed rule change. The text of these
will make 31,348 responses (7837 fund portfolios ×
4 responses per fund portfolio = 31,348 responses) to: PRA_Mailbox@sec.gov. statements may be examined at the
each year. places specified in Item IV below. The
3 We do not estimate any costs or time burden
4 In general, a fund adopts a rule 12b–1 plan
Exchange has prepared summaries, set
related to the recordkeeping requirements in rule forth in sections A, B, and C below, of
12b–1, as funds are either required to maintain before it begins operations. Therefore, the fund is
these records pursuant to other rules or would keep not required to obtain the approval of its public
shareholders because the fund’s shares have not yet 1 15 U.S.C. 78s(b)(1).
these records in any case as a matter of business
practice. been offered to the public. 2 17 CFR 240.19b–4.
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![21792 Federal Register / Vol. 80, No. 75 / Monday, April 20, 2015 / Notices
investors; or otherwise in furtherance of For the Commission, by the Division of Percent
the purposes of the Act. If the Trading and Markets, pursuant to delegated
Commission takes such action, the authority.8 Businesses Without Credit Avail-
Commission shall institute proceedings Brent J. Fields, able Elsewhere ........................ 4.000
to determine whether the proposed rule Secretary. Non-Profit Organizations With
should be approved or disapproved. Credit Available Elsewhere ..... 2.625
[FR Doc. 2015–08940 Filed 4–17–15; 8:45 am]
Non-Profit Organizations Without
BILLING CODE 8011–01–P Credit Available Elsewhere ..... 2.625
IV. Solicitation of Comments
For Economic Injury:
Interested persons are invited to Businesses & Small Agricultural
submit written data, views and SMALL BUSINESS ADMINISTRATION Cooperatives Without Credit
arguments concerning the foregoing, Available Elsewhere ................ 4.000
including whether the proposed rule [Disaster Declaration #14259 and #14260]; Non-Profit Organizations Without
change is consistent with the Act. [RHODE ISLAND Disaster #RI–00013] Credit Available Elsewhere ..... 2.625
Comments may be submitted by any of
Administrative Declaration of a The number assigned to this disaster
the following methods:
Disaster for the State of Rhode Island for physical damage is 14259 5 and for
Electronic Comments economic injury is 14260 0.
AGENCY: U.S. Small Business
• Use the Commission’s Internet The States which received an EIDL
Administration.
comment form (http://www.sec.gov/ Declaration # are Rhode Island,
ACTION: Notice. Connecticut.
rules/sro.shtml); or
• Send an email to rule-comments@ SUMMARY: This is a notice of an (Catalog of Federal Domestic Assistance
sec.gov. Please include File Number SR– Numbers 59002 and 59008)
Administrative declaration of a disaster
BX–2015–017 on the subject line. for the State of Rhode Island dated 04/ Dated: April 6, 2015.
06/2015. Maria Contreras-Sweet,
Paper Comments
Incident: Condo Fire. Administrator.
• Send paper comments in triplicate Incident Period: 03/11/2015. [FR Doc. 2015–08968 Filed 4–17–15; 8:45 am]
to Brent J. Fields, Secretary, Securities DATES: Effective: 04/06/2015. BILLING CODE 8025–01–P
and Exchange Commission, 100 F Street Physical Loan Application Deadline
NE., Washington, DC 20549–1090. Date: 06/05/2015.
All submissions should refer to File Economic Injury (EIDL) Loan SMALL BUSINESS ADMINISTRATION
Number SR–BX–2015–017. This file Application Deadline Date: 01/06/2016. April 17, 2015 [Disaster Declaration #14266
number should be included on the ADDRESSES: Submit completed loan and #14267]
subject line if email is used. To help the applications to: U.S. Small Business
Commission process and review your Administration, Processing and New York Disaster #NY–00158
comments more efficiently, please use Disbursement Center, 14925 Kingsport AGENCY: U.S. Small Business
only one method. The Commission will Road, Fort Worth, TX 76155. Administration.
post all comments on the Commission’s
FOR FURTHER INFORMATION CONTACT: A. ACTION: Notice.
Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the Escobar, Office of Disaster Assistance,
U.S. Small Business Administration, SUMMARY: This is a notice of an
submission, all subsequent Administrative declaration of a disaster
amendments, all written statements 409 3rd Street SW., Suite 6050,
Washington, DC 20416. for the State of New York dated 04/09/
with respect to the proposed rule 2015.
change that are filed with the SUPPLEMENTARY INFORMATION: Notice is
Incident: Apartment Building Fire.
Commission, and all written hereby given that as a result of the Incident Period: 03/06/2015.
communications relating to the Administrator’s disaster declaration, Effective Date: 04/09/2015.
proposed rule change between the applications for disaster loans may be Physical Loan Application Deadline
Commission and any person, other than filed at the address listed above or other Date: 06/08/2015.
those that may be withheld from the locally announced locations. Economic Injury (EIDL) Loan
public in accordance with the The following areas have been Application Deadline Date: 01/11/2016.
provisions of 5 U.S.C. 552, will be determined to be adversely affected by ADDRESSES: Submit completed loan
available for Web site viewing and the disaster: applications to: U.S. Small Business
printing in the Commission’s Public Primary Counties: Kent. Administration, Processing and
Reference Room, 100 F Street NE., Contiguous Counties: Disbursement Center, 14925 Kingsport
Washington, DC 20549, on official Rhode Island: Bristol, Providence, Road, Fort Worth, TX 76155.
business days between the hours of Washington. FOR FURTHER INFORMATION CONTACT: A.
10:00 a.m. and 3:00 p.m. Copies of such Connecticut: New London, Windham. Escobar, Office of Disaster Assistance,
filing also will be available for The Interest Rates are: U.S. Small Business Administration,
inspection and copying at the principal 409 3rd Street SW., Suite 6050,
office of the Exchange. All comments Percent Washington, DC 20416.
received will be posted without change; SUPPLEMENTARY INFORMATION: Notice is
the Commission does not edit personal For Physical Damage:
mstockstill on DSK4VPTVN1PROD with NOTICES
hereby given that as a result of the
identifying information from Homeowners With Credit Avail-
submissions. You should submit only able Elsewhere ........................ 3.625 Administrator’s disaster declaration,
Homeowners Without Credit applications for disaster loans may be
information that you wish to make Available Elsewhere ................ 1.813 filed at the address listed above or other
available publicly. All submissions Businesses With Credit Available locally announced locations.
should refer to File Number SR–BX– Elsewhere ................................ 6.000 The following areas have been
2015–017 and should be submitted on determined to be adversely affected by
or before May 11, 2015. 8 17 CFR 200.30–3(a)(12). the disaster:
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Document Created: 2018-02-21 10:12:36
Document Modified: 2018-02-21 10:12:36
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 21790 |
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