80 FR 69755 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Chapter XV, Entitled “Options Pricing,” at Section 2 Governing Pricing for NASDAQ Members
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 217 (November 10, 2015)
Federal Register Volume 80, Issue 217 (November 10, 2015)
| Page Range | 69755-69760 | |
| FR Document | 2015-28508 |
[Federal Register Volume 80, Number 217 (Tuesday, November 10, 2015)] [Notices] [Pages 69755-69760] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28508] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76344; File No. SR-NASDAQ-2015-115] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Chapter XV, Entitled ``Options Pricing,'' at Section 2 Governing Pricing for NASDAQ Members November 4, 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 October 22, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange [[Page 69756]] 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 The Exchange proposes to amend Chapter XV, entitled ``Options Pricing,'' at Section 2, which governs pricing for NASDAQ members using the NASDAQ Options Market (``NOM''), NASDAQ's facility for executing and routing standardized equity and index options, to amend the Customer \3\ and Professional \4\ Penny Pilot \5\ Options Rebates to Add Liquidity. The proposed amendments apply to volume from October 22, 2015 through October 30, 2015. --------------------------------------------------------------------------- \3\ The term ``Customer'' applies to any transaction that is identified by a Participant for clearing in the Customer range at The Options Clearing Corporation (``OCC'') which is not for the account of broker or dealer or for the account of a ``Professional'' (as that term is defined in Chapter I, Section 1(a)(48)). \4\ The term ``Professional'' means any person or entity that (i) is not a broker or dealer in securities, and (ii) places more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s) pursuant to Chapter I, Section 1(a)(48). All Professional orders shall be appropriately marked by Participants. \5\ See Securities Exchange Act Release Nos. 57579 (March 28, 2008), 73 FR 18587 (April 4, 2008) (SR-NASDAQ-2008-026) (notice of filing and immediate effectiveness establishing Penny Pilot); 60874 (October 23, 2009), 74 FR 56682 (November 2, 2009)(SR-NASDAQ-2009- 091) (notice of filing and immediate effectiveness expanding and extending Penny Pilot); 60965 (November 9, 2009), 74 FR 59292 (November 17, 2009)(SR-NASDAQ-2009-097) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot); 61455 (February 1, 2010), 75 FR 6239 (February 8, 2010) (SR-NASDAQ- 2010-013) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot); 62029 (May 4, 2010), 75 FR 25895 (May 10, 2010) (SR-NASDAQ-2010-053) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot); 65969 (December 15, 2011), 76 FR 79268 (December 21, 2011) (SR- NASDAQ-2011-169) (notice of filing and immediate effectiveness extension and replacement of Penny Pilot); 67325 (June 29, 2012), 77 FR 40127 (July 6, 2012) (SR-NASDAQ-2012-075) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through December 31, 2012); 68519 (December 21, 2012), 78 FR 136 (January 2, 2013) (SR-NASDAQ-2012-143) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through June 30, 2013); 69787 (June 18, 2013), 78 FR 37858 (June 24, 2013) (SR-NASDAQ-2013-082) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through December 31, 2013); 71105 (December 17, 2013), 78 FR 77530 (December 23, 2013) (SR-NASDAQ-2013-154) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through June 30, 2014); 79 FR 31151 (May 23, 2014), 79 FR 31151 (May 30, 2014) (SR-NASDAQ-2014-056) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through December 31, 2014); 73686 (December 2, 2014), 79 FR 71477 (November 25, 2014) (SR-NASDAQ-2014-115) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through June 30, 2015) and 75283 (June 24, 2015), 80 FR 37347 (June 30, 2015) (SR-NASDAQ-2015-063) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Extension of the Exchange's Penny Pilot Program and Replacement of Penny Pilot Issues That Have Been Delisted.) See also NOM Rules, Chapter VI, Section 5. --------------------------------------------------------------------------- The text of the proposed rule change is available on the Exchange's Web site at http://nasdaq.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 the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Chapter XV, Section 2, entitled ``NASDAQ Options Market--Fees and Rebates'' to amend the Customer and Professional Penny Pilot Options Rebates to Add Liquidity. Each of the proposed rule changes will be detailed below. Customer and Professional Penny Pilot Options Rebates To Add Liquidity Today, the Exchange offers tiered Penny Pilot Options Rebates to Add Liquidity to Customers and Professionals based on various criteria with rebates ranging from $0.20 to $0.48 per contract. Participants may qualify for Customer and Professional Penny Pilot Options Rebates to Add Liquidity by adding a certain amount of liquidity as specified by each tier.\6\ --------------------------------------------------------------------------- \6\ Tiers 6 and 7 are calculated based on Total Volume. Total Volume is defined as Customer, Professional, Firm, Broker-Dealer, Non-NOM Market Maker and NOM Market Maker volume in Penny Pilot Options and/or Non-Penny Pilot Options which either adds or removes liquidity on NOM. See note ``b'' in Section 2(1) of Chapter XV. The Exchange utilizes data from OCC to determine the total industry customer equity and ETF options ADV figure. OCC classifies equity and ETF options volume under the equity options category. Also, both customer and professional orders that are transacted on options exchanges clear in the customer range at OCC and therefore both customer and professional volume would be included in the total industry figure to calculate rebate tiers. --------------------------------------------------------------------------- Note ``e'' of Chapter XV, Section 2(1) The Exchange proposes to amend current note ``e'' to permit Participants that qualify for the Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity \7\ to achieve a higher rebate. Currently, note ``e'' states: ``[P]articipants that add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options of 1.15% or more of total industry customer equity and ETF option ADV contracts per day in a month will receive an additional $0.02 per contract Penny Pilot Options Customer Rebate to Add Liquidity for each transaction which adds liquidity in Penny Pilot Options in that month. Participants that add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options of 1.40% or more of total industry customer equity and ETF option ADV contracts per day in a month will receive an additional $0.05 per contract Penny Pilot Options Customer Rebate to Add Liquidity for each transaction which adds liquidity in Penny Pilot Options in that month.'' The Exchange is amending note ``e'' to clearly denote that there will now be three ways to earn an additional rebate for Participants that qualify for the Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity. The first two additional rebates currently apply today, and will be demarcated as ``1'' and ``2.'' The Exchange proposes to pay a new additional $0.05 per contract rebate to Participants that qualify for the Tier 8 rebate of $0.48 per contract, from October 22, 2015 through October 30, 2015, for a total of $0.53 per contract, [[Page 69757]] provide the Participant meets the requisite criteria. The new incentive would require the Participant to: (a) Add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.85% of total industry customer equity and ETF option ADV contracts per day from October 22, 2015 through October 30, 2015 in a month and (b) add liquidity in all securities through one or more of its Nasdaq Market Center MPIDs \8\ that represent 1.00% or more of Consolidated Volume from October 22, 2015 through October 30, 2015. Consolidated Volume shall mean the total consolidated volume reported to all consolidated transaction reporting plans by all exchanges and trade reporting facilities during a month \9\ in equity securities, excluding executed orders with a size of less than one round lot. For purposes of calculating Consolidated Volume and the extent of an equity member's trading activity, expressed as a percentage of or ratio to Consolidated Volume, the date of the annual reconstitution of the Russell Investments Indexes shall be excluded from both total Consolidated Volume and the member's trading activity. --------------------------------------------------------------------------- \7\ Tier 8 of the Customer and Professional Rebate to Add Liquidity Tiers pays a $0.48 per contract rebate to Participants that add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.75% or more of total industry customer equity and ETF option ADV contracts per day in a month or Participant adds (1) Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 30,000 or more contracts per day in a month, (2) the Participant has certified for the Investor Support Program set forth in Rule 7014, and/or (3) the Participant qualifies for rebates under the Qualified Market Maker Program set forth in Rule 7014. \8\ MPIDS are four character alpha code market participant identifiers used to report trades. \9\ For purposes of this filing, the Consolidated Volume shall only apply to volume from October 22, 2015 through October 30, 2015. --------------------------------------------------------------------------- The Exchange believes that this new added incentive will encourage Participants to add even more liquidity on NOM to earn a higher rebate. Also, the Exchange is not only providing Participants another manner in which to earn a higher options rebate by participating in the options market, but is also permitting equities volume to qualify for the options rebate, thereby benefitting the Nasdaq Market Center as well as the NOM market, by incentivizing order flow to these markets. Note ``d'' of Chapter XV, Section 2(1) Currently, note ``d'' of Chapter XV, Section 2(1) states that Participants that qualify for Customer or Professional Rebate to Add Liquidity Tiers 7 \10\ or 8 in a given month will be assessed a Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker- Dealer Fee for Removing Liquidity in Penny Pilot Options of $0.50 per contract. Currently, the Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options is $0.54 per contract for these Participants.\11\ --------------------------------------------------------------------------- \10\ Customer and Professional Rebate to Add Liquidity Tier 7 pays a $0.47 per contract rebate to Participants that have Total Volume of 150,000 or more contracts per day in a month, of which 50,000 or more contracts per day in a month must be Customer and/or Professional liquidity in Penny Pilot Options. ``Total Volume'' is defined as Customer, Professional, Firm, Broker-Dealer, Non-NOM Market Maker and NOM Market Maker volume in Penny Pilot Options and/ or Non-Penny Pilot Options which either adds or removes liquidity on NOM. \11\ SPY transactions are assessed a $0.50 per contract Fee for Removing Liquidity in Penny Pilot Options for all Participants except Customer. --------------------------------------------------------------------------- The Exchange proposes to remove the incentive to obtain a lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker- Dealer Fee for Removing Liquidity in Penny Pilot Options for Participants that qualify for Tier 7 of the Customer and Professional Penny Pilot Options Rebate to Add Liquidity as of October 22, 2015. This incentive will remain for Participants that qualify for Tier 8, as is the case today. The Exchange desires to incentivize market participants to add liquidity in the highest tier in order to obtain the lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options. Note ``d'' will be amended to remove Tier 7. Additionally, from October 1, 2015 through the date of this filing, no member has qualified for the lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options of $0.50 per contract with Tier 7. Typographical Correction The Exchange proposes to remove the period at the end of Customer and Professional Penny Pilot Options Rebate to Add Liquidity Tier 8 to conform the rule text. 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\12\ in general, and with Section 6(b)(4) and 6(b)(5) of the Act,\13\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which NASDAQ operates or controls, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. Customer volume is important because it continues to attract liquidity to the Exchange, which benefits all market participants. Further, with respect to Professional liquidity, the Exchange initially established Professional pricing in order to ``. . . bring additional revenue to the Exchange.'' \14\ The Exchange noted in the Professional Filing that it believes ``. . . that the increased revenue from the proposal would assist the Exchange to recoup fixed costs.'' \15\ Further, the Exchange noted in that filing that it believes that establishing separate pricing for a Professional, which ranges between that of a Customer and market maker, accomplishes this objective.\16\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f. \13\ 15 U.S.C. 78f(b)(4) and (5). \14\ See Securities Exchange Act Release No. 64494 (May 13, 2011), 76 FR 29014 (May 19, 2011) (SR-NASDAQ-2011-066) (``Professional Filing''). In this filing, the Exchange addressed the perceived favorable pricing of Professionals who were assessed fees and paid rebates like a Customer prior to the filing. The Exchange noted in that filing that a Professional, unlike a retail Customer, has access to sophisticated trading systems that contain functionality not available to retail Customers. \15\ See Professional Filing. \16\ See Professional Filing. The Exchange also in the Professional Filing that it believes the role of the retail Customer in the marketplace is distinct from that of the Professional and the Exchange's fee proposal at that time accounted for this distinction by pricing each market participant according to their roles and obligations. --------------------------------------------------------------------------- Customer and Professional Penny Pilot Options Rebates to Add Liquidity Note ``e'' of Chapter XV, Section 2(1) The Exchange's proposal to amend note ``e'' to provide for an additional means to earn a higher rebate for Participants that qualify for the Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity is reasonable because the opportunity to earn a higher rebate of $0.53 \17\ per contract, provided the qualifications are met, will incentivize Participants to transact an even greater number of qualifying Customer and/or Professional volume, which liquidity will benefit other market participants by providing them the opportunity to interact with that liquidity. The Exchange's proposal to permit Participants to obtain a higher rebate of $0.53 per contract, provided they qualify for the Tier 8 rebate and the new criteria \18\ by adding volume from October 22, 2015 through October 30, [[Page 69758]] 2015,\19\ which criteria includes the addition of options and equity volume, is reasonable because the Exchange is encouraging market participants to send order flow to both the options and equity markets to receive the rebate. Incentivizing Participants to add options liquidity through the payment of an additional rebate is not novel and exists today.\20\ Today, the Customer and Professional Penny Pilot Options Rebate to Add Liquidity Tier 8 includes, as part of the qualifying criteria, a certification for the Investor Support Program \21\ as set forth in Rule 7014 and qualification in the QMM Program.\22\ These two programs are equity programs which require participation in the form of adding liquidity. The concept of participating in the equities market as a means to qualify for an options rebate exists today. The Exchange's proposal would require Participants to add liquidity in all securities through one or more of its Nasdaq Market Center MPIDS that represent 1.00% or more of Consolidated Volume during the month.\23\ Consolidated Volume shall mean the total consolidated volume reported to all consolidated transaction reporting plans by all exchanges and trade reporting facilities during a month \24\ in equity securities, excluding executed orders with a size of less than one round lot. For purposes of calculating Consolidated Volume and the extent of an equity member's trading activity, expressed as a percentage of or ratio to Consolidated Volume, the date of the annual reconstitution of the Russell Investments Indexes shall be excluded from both total Consolidated Volume and the member's trading activity. --------------------------------------------------------------------------- \17\ Tier 8 pays a rebate of $0.48 per contract and the additional rebate proposed for note ``e'' would be a $0.05 per contract rebate for a total of $0.53 per contract. \18\ New note ``e'' requires Participants to (a) add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.85% of total industry customer equity and ETF option ADV contracts per day from October 22, 2015 through October 30, 2015 and (b) add liquidity in all securities through one or more of its Nasdaq Market Center MPIDs that represent 1.00% or more of Consolidated Volume from October 22, 2015 through October 30, 2015 in order to receive an additional $0.05 per contract Penny Pilot Options Customer Rebate to Add Liquidity. \19\ Monthly volume prior to October 22, 2015 will not count toward the calculation of this rebate incentive. \20\ Today, note ``e'' provides two opportunities to earn a higher rebate. Participants that add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options of 1.15% or more of total industry customer equity and ETF option ADV contracts per day in a month receive an additional $0.02 per contract Penny Pilot Options Customer Rebate to Add Liquidity for each transaction which adds liquidity in Penny Pilot Options in that month; or Participants may add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 1.40% or more of total industry customer equity and ETF option ADV contracts per day in a month to receive an additional $0.05 per contract Penny Pilot Options Customer Rebate to Add Liquidity for each transaction which adds liquidity in Penny Pilot Options in that month. \21\ For a detailed description of the Investor Support Program or ISP, see Securities Exchange Act Release No. 63270 (November 8, 2010), 75 FR 69489 (November 12, 2010) (NASDAQ-2010-141) (notice of filing and immediate effectiveness) (the ``ISP Filing''). See also Securities Exchange Act Release Nos. 63414 (December 2, 2010), 75 FR 76505 (December 8, 2010) (NASDAQ-2010-153) (notice of filing and immediate effectiveness); and 63628 (January 3, 2011), 76 FR 1201 (January 7, 2011) (NASDAQ-2010-154) (notice of filing and immediate effectiveness). \22\ A QMM is a NASDAQ member that makes a significant contribution to market quality by providing liquidity at the national best bid and offer (``NBBO'') in a large number of stocks for a significant portion of the day. In addition, the NASDAQ equity member must avoid imposing the burdens on NASDAQ and its market participants that may be associated with excessive rates of entry of orders away from the inside and/or order cancellation. The designation ``QMM'' reflects the QMM's commitment to provide meaningful and consistent support to market quality and price discovery by extensive quoting at the NBBO in a large number of securities. In return for its contributions, certain financial benefits are provided to a QMM with respect to a particular MPID (a ``QMM MPID''), as described under Rule 7014(e). \23\ For purposes of this filing, the Consolidated Volume shall only apply to volume from October 22, 2015 through October 30, 2015. \24\ Id. --------------------------------------------------------------------------- The Exchange is not only providing Participants with a manner in which to earn an additional options rebate, but also expanding the qualifications to permit participation in the equities market to qualify for the additional rebate. This participation benefits the Nasdaq Market Center as well as the NOM market by incentivizing order flow to these markets. As with existing tiers that require participation in both the Nasdaq Market Center and NOM, this additional rebate recognizes the prevalence of trading in which members simultaneously trade different asset classes within the same strategy. Because cash equities and options markets are linked, with liquidity and trading patterns on one market affecting those on the other, the Exchange believes that pricing incentives that encourage market participant activity in NOM also support price discovery and liquidity provision in the Nasdaq Market Center. Further, because the proposed incentive which is being added in note ``e'' require significant levels of liquidity provision, which benefits all market participants, and because activity in NOM also supports price discovery and liquidity provision in the Nasdaq Market Center due to the increasing propensity of market participants to be active in both markets and the influence of each market on the pricing of securities in the other, this proposal is reasonable. Moreover, the incentive has the potential to make the applicable higher rebate available to a wider range of market participants by introducing an additional means of qualification. Finally, other options exchanges today pay rebates to participants that add order both options and equity order flow.\25\ --------------------------------------------------------------------------- \25\ BATS Exchange Inc. (``BATS'') and NYSE Arca, Inc. (NYSE Arca'') offer Cross-Asset Step-Up Tiers on its equity market. See BATS BZX Exchange Fee Schedule. See also NYSE Arca Equities Schedule of Fees and Charges for Exchange Services and NYSE Arca Options Fees and Charges. --------------------------------------------------------------------------- The Exchange's proposal to amend note ``e'' to provide for an additional means to earn a higher rebate for Participants that qualify for the Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity is equitable and not unfairly discriminatory because all Participants may qualify for Tier 8 and the additional incentive. Qualifying Participants will be uniformly paid the rebate provided the requirements are met for the time period from October 22, 2015 through October 30, 2015. The Exchange's proposal to permit Participants to receive an additional $0.05 per contract rebate in addition to the Tier 8 rebate of $0.48 per contract, provided they qualify for Tier 8 and add options and equity volume as specified in the new note ``e'' criteria,\26\ is equitable and not unfairly discriminatory because market participants today may qualify for a comparable or a higher rebate through alternative means that does not require participation in NOM. --------------------------------------------------------------------------- \26\ See note 20. --------------------------------------------------------------------------- Note ``d'' of Chapter XV, Section 2(1) The Exchange's proposal to remove the incentive in note ``d'' for Participants that qualify for Tier 7 and continue to apply the incentive for Participants that qualify for Tier 8 is reasonable because the Exchange desires to incentivize market participants to add liquidity in the highest tier in order to obtain the lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker- Dealer Fee for Removing Liquidity in Penny Pilot Options.\27\ This proposal will shift the applicability of note ``d'' to the highest rebate tier only. --------------------------------------------------------------------------- \27\ Currently, the Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options is $0.54 per contract for these Participants, except in SPY where it is $0.50 per contract for these Participants. --------------------------------------------------------------------------- The Exchange's proposal to remove the incentive in note ``d'' for Participants that qualify for Tier 7 and continue to apply the incentive for Participants that qualify for Tier 8 is equitable and not unfairly discriminatory because the Exchange will uniformly apply the incentive to all Participants that qualify for Tier 8.\28\ No [[Page 69759]] Participant will receive the incentive in note ``d'' for qualification in Tier 7 as of October 22, 2015 and all Participants that have met the Customer and Professional Penny Pilot Options Rebate to Add Liquidity in Tier 8 would continue to receive the note ``d'' incentive. --------------------------------------------------------------------------- \28\ To date for the month of October 2015, no member has qualified for the lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options of $0.50 per contract with Tier 7. --------------------------------------------------------------------------- Typographical Correction The Exchange's proposal to remove the period at the end of Customer and Professional Penny Pilot Options Rebate to Add Liquidity Tier 8 for consistency is reasonable, equitable and not unfairly discriminatory. B. Self-Regulatory Organization's Statement on Burden on Competition NASDAQ 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. Customer and Professional Penny Pilot Options Rebates to Add Liquidity New Note ``e'' of Chapter XV, Section 2(1) The Exchange's proposal to adopt a new note ``e'' incentive does not impose an undue burden on intra-market competition because all Participants are eligible to qualify for the Tier 8 Customer or Professional Rebate to Add Liquidity Tier, provided they meet the qualifications for that tier, and additionally all Participants may qualify for the additional requirements in new note ``e''.\29\ Further, this new additional note ``e'' rebate will be uniformly paid to those Participants that are eligible for the rebate. --------------------------------------------------------------------------- \29\ See note 20. --------------------------------------------------------------------------- Furthermore, incentivizing Participants to add not only options, but equities volume does not impose an undue burden on intra-market competition because cash equities and options markets are linked, with liquidity and trading patterns on one market affecting those on the other, the Exchange believes that pricing incentives that encourage market participant activity in NOM also support price discovery and liquidity provision in the Nasdaq Market Center. Further, the pricing incentives require significant levels of liquidity provision, which benefits all market participants on NOM and the Nasdaq Market Center. Moreover, the changes have the potential to make the applicable incentives available to a wider range of market participants by introducing an additional means of qualification. Note ``d'' of Chapter XV, Section 2(1) The Exchange's proposal to remove the incentive in note ``d'' from Participants that qualify for Customer and Professional Penny Pilot Options Rebate to Add Liquidity Tier 7 and continue to apply the incentive to Participants that qualify for Customer and Professional Penny Pilot Options Rebate to Add Liquidity Tier 8 does not impose an undue burden on intra-market competition because the Exchange will uniformly apply the incentive to all Participants. No Participant will receive the incentive in note ``d'' for Tier 7 qualification as of October 22, 2015 and all Participants that have met the criteria for Customer and Professional rebate Tier 8 would continue to receive the note ``d'' incentive. Further, there are no Participants that qualified for the Tier 7 incentive from October 1, 2015 through the date of this filing. The Exchange's proposal addressed herein does not impose an inter- market burden on competition because the Exchange operates in a highly competitive market in which many sophisticated and knowledgeable market participants can readily and do send order flow to competing exchanges if they deem fee levels or rebate incentives at a particular exchange to be excessive or inadequate. These market forces support the Exchange belief that the proposed rebate structure and tiers proposed herein are competitive with rebates and tiers in place on other exchanges. The Exchange believes that this competitive marketplace continues to impact the rebates present on the Exchange today and substantially influences the proposals set forth above. Other options markets offer similar rebates to incentive market participants to direct order flow to their markets. The Exchange believes that continuing to offer rebates and increasing those rebates and providing opportunities to earn higher rebates will benefit the marketplace by continuing to reward liquidity providers and thereby offering other market participants an opportunity to interact with this order flow. 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\30\ --------------------------------------------------------------------------- \30\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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 [email protected]. Please include File Number SR-NASDAQ-2015-115 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASDAQ-2015-115. 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., [[Page 69760]] Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the 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-NASDAQ-2015-115, and should be submitted on or before December 1, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\31\ --------------------------------------------------------------------------- \31\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-28508 Filed 11-9-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices 69755
that FTSE 100 options are designed to B. Self-Regulatory Organization's Commission process and review your
provide different and additional Statement on Burden on Competition comments more efficiently, please use
opportunities for investors to hedge or CBOE does not believe that the only one method. The Commission will
speculate on the market risk on the proposed rule change will impose any post all comments on the Commission’s
FTSE 100 Index by listing an option burden on competition not necessary or Internet Web site (http://www.sec.gov/
directly on the FTSE 100 Index. appropriate in furtherance of the rules/sro.shtml). Copies of the
The Exchanges believes that the FTSE purposes of the Act. Specifically, CBOE submission, all subsequent
believes that the introduction of new amendments, all written statements
100 Index is not easily susceptible to
cash index options will enhance with respect to the proposed rule
manipulation. The index is a broad-
competition among market participants change that are filed with the
based index and has high market
and will provide a new type of options Commission, and all written
capitalizations. The FTSE 100 Index is
to compete with FTSE 100 futures and communications relating to the
comprised of 100 of the largest proposed rule change between the
companies traded on the London Stock European-traded derivatives on the
Commission and any person, other than
Exchange and no single component FTSE 100 Index to the benefit of
those that may be withheld from the
comprises more than 10% of the index, investors and the marketplace.
public in accordance with the
making it not easily subject to market C. Self-Regulatory Organization's provisions of 5 U.S.C. 552, will be
manipulation. Statement on Comments on the available for Web site viewing and
Additionally, because the index has Proposed Rule Change Received From printing in the Commission’s Public
100 of the largest and most liquid stocks Members, Participants, or Others Reference Room, 100 F Street NE.,
listed on the London Stock Exchange, No written comments were solicited Washington, DC 20549 on official
the Exchange believes that the initial or received with respect to the proposed business days between the hours of
listing requirements are appropriate to rule change. 10:00 a.m. and 3:00 p.m. Copies of the
trade options on the index. In addition, filing also will be available for
similar to other broad-based indexes, III. Date of Effectiveness of the inspection and copying at the principal
the Exchange proposes to adopt various Proposed Rule Change and Timing for office of the Exchange. All comments
maintenance criteria, which would Commission Action received will be posted without change;
require continual compliance and Within 45 days of the date of the Commission does not edit personal
periodic compliance. publication of this notice in the Federal identifying information from
Register or within such longer period submissions. You should submit only
FTSE 100 options would be subject to
up to 90 days (i) as the Commission may information that you wish to make
the same rules that currently govern
designate if it finds such longer period available publicly. All submissions
other CBOE index options, including should refer to File Number SR–CBOE–
sales practice rules,30 margin to be appropriate and publishes its
reasons for so finding or (ii) as to which 2015–100 and should be submitted on
requirements 31 and trading rules.32 The or before December 1, 2015.
Exchange would apply the same default the Exchange consents, the Commission
position limits for broad-based index will: For the Commission, by the Division of
A. By order approve or disapprove Trading and Markets, pursuant to delegated
options to FTSE 100 options. authority.33
such proposed rule change, or
Specifically, the applicable position
B. Institute proceedings to determine Brent J. Fields,
limits would be 25,000 contracts whether the proposed rule change Secretary.
(standard limit/on the same side of the should be disapproved. [FR Doc. 2015–28516 Filed 11–9–15; 8:45 am]
market) and 15,000 contracts (near-term
limit). The exercise limit for FTSE 100 IV. Solicitation of Comments BILLING CODE 8011–01–P
options would be equivalent to the Interested persons are invited to
position limit for FTSE 100 options. submit written data, views, and SECURITIES AND EXCHANGE
These same position and exercise limits arguments concerning the foregoing, COMMISSION
would apply to FLEX trading. All including whether the proposed rule
position limit hedge exemptions would change is consistent with the Act. [Release No. 34–76344; File No. SR–
apply. The Exchange would apply Comments may be submitted by any of NASDAQ–2015–115]
existing index option margin the following methods: Self-Regulatory Organizations; The
requirements for the purchase and sale
Electronic Comments NASDAQ Stock Market LLC; Notice of
of FTSE 100 options.
• Use the Commission’s Internet Filing and Immediate Effectiveness of
The Exchange represents that it has an Proposed Rule Change To Modify
adequate surveillance program in place comment form (http://www.sec.gov/
Chapter XV, Entitled ‘‘Options
for FTSE 100 options. The Exchange rules/sro.shtml); or
• Send an email to rule- Pricing,’’ at Section 2 Governing
also represents that it has the necessary Pricing for NASDAQ Members
comments@sec.gov. Please include File
systems capacity to support the new
Number SR–CBOE–2015–100 on the November 4, 2015.
option series.
subject line. Pursuant to Section 19(b)(1) of the
www.lseg.com/sites/default/files/content/ Paper Comments Securities Exchange Act of 1934
asabaliauskas on DSK5VPTVN1PROD with NOTICES
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
documents/%E2%80%A2LSEG_ITA_Products_
Factsheet_v10.pdf.
• Send paper comments in triplicate notice is hereby given that on October
30 See Chapter IX (Doing Business with the to Secretary, Securities and Exchange 22, 2015, The NASDAQ Stock Market
Public). Commission, 100 F Street NE., LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
31 See Chapter XII (Margins). Washington, DC 20549–1090. with the Securities and Exchange
32 See e.g., Chapters IV (Business Conduct), VI
All submissions should refer to File
(Doing Business on the Exchange Floor), Chapter
VIII (Market-Makers, Trading Crowds and Modified
Number SR–CBOE–2015±100. This file 33 17 CFR 200.30–3(a)(12).
Trading Systems) and Chapter XXIV (Index number should be included on the 1 15 U.S.C. 78s(b)(1).
Options). subject line if email is used. To help the 2 17 CFR 240.19b–4.
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![69756 Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
Commission (‘‘SEC’’ or ‘‘Commission’’) Rebates to Add Liquidity. The proposed Note ‘‘e’’ of Chapter XV, Section 2(1)
the proposed rule change as described amendments apply to volume from The Exchange proposes to amend
in Items I, II, and III, below, which Items October 22, 2015 through October 30, current note ‘‘e’’ to permit Participants
have been prepared by the Exchange. 2015. that qualify for the Tier 8 Customer and
The Commission is publishing this The text of the proposed rule change Professional Penny Pilot Options Rebate
notice to solicit comments on the is available on the Exchange’s Web site to Add Liquidity 7 to achieve a higher
proposed rule change from interested at http://nasdaq.cchwallstreet.com, at rebate. Currently, note ‘‘e’’ states:
persons. the principal office of the Exchange, and ‘‘[P]articipants that add Customer,
I. Self-Regulatory Organization’s at the Commission’s Public Reference Professional, Firm, Non-NOM Market
Statement of the Terms of Substance of Room. Maker and/or Broker-Dealer liquidity in
the Proposed Rule Change II. Self-Regulatory Organization’s Penny Pilot Options and/or Non- Penny
Statement of the Purpose of, and Pilot Options of 1.15% or more of total
The Exchange proposes to amend
Statutory Basis for, the Proposed Rule industry customer equity and ETF
Chapter XV, entitled ‘‘Options Pricing,’’
Change option ADV contracts per day in a
at Section 2, which governs pricing for
month will receive an additional $0.02
NASDAQ members using the NASDAQ In its filing with the Commission, the per contract Penny Pilot Options
Options Market (‘‘NOM’’), NASDAQ’s Exchange included statements Customer Rebate to Add Liquidity for
facility for executing and routing concerning the purpose of and basis for each transaction which adds liquidity in
standardized equity and index options, the proposed rule change and discussed Penny Pilot Options in that month.
to amend the Customer 3 and any comments it received on the Participants that add Customer,
Professional 4 Penny Pilot 5 Options proposed rule change. The text of these Professional, Firm, Non-NOM Market
statements may be examined at the Maker and/or Broker-Dealer liquidity in
3 The term ‘‘Customer’’ applies to any transaction
places specified in Item IV below. The Penny Pilot Options and/or Non-Penny
that is identified by a Participant for clearing in the
Customer range at The Options Clearing Exchange has prepared summaries, set Pilot Options of 1.40% or more of total
Corporation (‘‘OCC’’) which is not for the account forth in sections A, B, and C below, of industry customer equity and ETF
of broker or dealer or for the account of a the most significant aspects of such
‘‘Professional’’ (as that term is defined in Chapter
option ADV contracts per day in a
I, Section 1(a)(48)).
statements. month will receive an additional $0.05
4 The term ‘‘Professional’’ means any person or
A. Self-Regulatory Organization's per contract Penny Pilot Options
entity that (i) is not a broker or dealer in securities, Customer Rebate to Add Liquidity for
and (ii) places more than 390 orders in listed
Statement of the Purpose of, and the
options per day on average during a calendar month Statutory Basis for, the Proposed Rule each transaction which adds liquidity in
for its own beneficial account(s) pursuant to Change Penny Pilot Options in that month.’’
Chapter I, Section 1(a)(48). All Professional orders The Exchange is amending note ‘‘e’’ to
shall be appropriately marked by Participants. 1. Purpose clearly denote that there will now be
5 See Securities Exchange Act Release Nos. 57579
The Exchange proposes to amend three ways to earn an additional rebate
(March 28, 2008), 73 FR 18587 (April 4, 2008) (SR–
NASDAQ–2008–026) (notice of filing and Chapter XV, Section 2, entitled for Participants that qualify for the Tier
immediate effectiveness establishing Penny Pilot); ‘‘NASDAQ Options Market—Fees and 8 Customer and Professional Penny
60874 (October 23, 2009), 74 FR 56682 (November Rebates’’ to amend the Customer and Pilot Options Rebate to Add Liquidity.
2, 2009)(SR–NASDAQ–2009–091) (notice of filing
and immediate effectiveness expanding and Professional Penny Pilot Options The first two additional rebates
extending Penny Pilot); 60965 (November 9, 2009), Rebates to Add Liquidity. Each of the currently apply today, and will be
74 FR 59292 (November 17, 2009)(SR–NASDAQ– proposed rule changes will be detailed demarcated as ‘‘1’’ and ‘‘2.’’ The
2009–097) (notice of filing and immediate below. Exchange proposes to pay a new
effectiveness adding seventy-five classes to Penny
Pilot); 61455 (February 1, 2010), 75 FR 6239
additional $0.05 per contract rebate to
Customer and Professional Penny Pilot Participants that qualify for the Tier 8
(February 8, 2010) (SR–NASDAQ–2010–013)
(notice of filing and immediate effectiveness adding
Options Rebates To Add Liquidity rebate of $0.48 per contract, from
seventy-five classes to Penny Pilot); 62029 (May 4, Today, the Exchange offers tiered October 22, 2015 through October 30,
2010), 75 FR 25895 (May 10, 2010) (SR–NASDAQ–
2010–053) (notice of filing and immediate
Penny Pilot Options Rebates to Add 2015, for a total of $0.53 per contract,
effectiveness adding seventy-five classes to Penny Liquidity to Customers and
Pilot); 65969 (December 15, 2011), 76 FR 79268 Professionals based on various criteria NOM. See note ‘‘b’’ in Section 2(1) of Chapter XV.
(December 21, 2011) (SR–NASDAQ–2011–169) with rebates ranging from $0.20 to $0.48 The Exchange utilizes data from OCC to determine
(notice of filing and immediate effectiveness the total industry customer equity and ETF options
extension and replacement of Penny Pilot); 67325
per contract. Participants may qualify ADV figure. OCC classifies equity and ETF options
(June 29, 2012), 77 FR 40127 (July 6, 2012) (SR– for Customer and Professional Penny volume under the equity options category. Also,
NASDAQ–2012–075) (notice of filing and Pilot Options Rebates to Add Liquidity both customer and professional orders that are
immediate effectiveness and extension and by adding a certain amount of liquidity transacted on options exchanges clear in the
replacement of Penny Pilot through December 31, customer range at OCC and therefore both customer
2012); 68519 (December 21, 2012), 78 FR 136
as specified by each tier.6 and professional volume would be included in the
(January 2, 2013) (SR–NASDAQ–2012–143) (notice total industry figure to calculate rebate tiers.
of filing and immediate effectiveness and extension 2014–115) (notice of filing and immediate 7 Tier 8 of the Customer and Professional Rebate
and replacement of Penny Pilot through June 30, effectiveness and extension and replacement of to Add Liquidity Tiers pays a $0.48 per contract
2013); 69787 (June 18, 2013), 78 FR 37858 (June 24, Penny Pilot through June 30, 2015) and 75283 (June rebate to Participants that add Customer,
2013) (SR–NASDAQ–2013–082) (notice of filing 24, 2015), 80 FR 37347 (June 30, 2015) (SR– Professional, Firm, Non-NOM Market Maker and/or
and immediate effectiveness and extension and NASDAQ–2015–063) (Notice of Filing and Broker-Dealer liquidity in Penny Pilot Options and/
Immediate Effectiveness of a Proposed Rule Change
asabaliauskas on DSK5VPTVN1PROD with NOTICES
replacement of Penny Pilot through December 31, or Non-Penny Pilot Options above 0.75% or more
2013); 71105 (December 17, 2013), 78 FR 77530 Relating to Extension of the Exchange’s Penny Pilot of total industry customer equity and ETF option
(December 23, 2013) (SR–NASDAQ–2013–154) Program and Replacement of Penny Pilot Issues ADV contracts per day in a month or Participant
(notice of filing and immediate effectiveness and That Have Been Delisted.) See also NOM Rules, adds (1) Customer and/or Professional liquidity in
extension and replacement of Penny Pilot through Chapter VI, Section 5. Penny Pilot Options and/or Non-Penny Pilot
June 30, 2014); 79 FR 31151 (May 23, 2014), 79 FR 6 Tiers 6 and 7 are calculated based on Total Options of 30,000 or more contracts per day in a
31151 (May 30, 2014) (SR–NASDAQ–2014–056) Volume. Total Volume is defined as Customer, month, (2) the Participant has certified for the
(notice of filing and immediate effectiveness and Professional, Firm, Broker-Dealer, Non-NOM Investor Support Program set forth in Rule 7014,
extension and replacement of Penny Pilot through Market Maker and NOM Market Maker volume in and/or (3) the Participant qualifies for rebates under
December 31, 2014); 73686 (December 2, 2014), 79 Penny Pilot Options and/or Non-Penny Pilot the Qualified Market Maker Program set forth in
FR 71477 (November 25, 2014) (SR–NASDAQ– Options which either adds or removes liquidity on Rule 7014.
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![69760 Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
Washington, DC 20549, on official and at the Commission’s Public January 4, 2016.5 Pursuant to the
business days between the hours of Reference Room. Approval Order to SR–FINRA–2015–
10:00 a.m. and 3:00 p.m. Copies of the 015, the fee for test-center delivery of
II. Self-Regulatory Organization’s
filing also will be available for the Regulatory Element of the S106,
Statement of the Purpose of, and
inspection and copying at the principal S201, and S901 Continuing Education
Statutory Basis for, the Proposed Rule
office of the Exchange. All comments Programs will continue to be $100 per
received will be posted without change; Change session through no later than six months
the Commission does not edit personal In its filing with the Commission, the after January 4, 2016 when the programs
identifying information from Exchange included statements will no longer be offered at testing
submissions. You should submit only concerning the purpose of and basis for centers. The fee for Web-based delivery
information that you wish to make the proposed rule change and discussed of the Regulatory Elements of the S106,
available publicly. All submissions any comments it received on the S201, and S901 Continuing Education
should refer to File Number SR– proposed rule change. The text of these Programs, however, will be $55.
NASDAQ–2015–115, and should be statements may be examined at the The Exchange currently utilizes
submitted on or before December 1, places specified in Item IV below. The FINRA’s Continuing Education
2015. Exchange has prepared summaries, set Programs for its own continuing
For the Commission, by the Division of forth in sections A, B, and C below, of education requirements. Consistent with
Trading and Markets, pursuant to delegated the most significant aspects of such SR–FINRA–2015–015, the Exchange
authority.31 statements. recently filed SR–CBOE–2015–084 6
Brent J. Fields, relating to continuing education. In that
A. Self-Regulatory Organization's filing, the Exchange proposed to follow
Secretary. Statement of the Purpose of, and
[FR Doc. 2015–28508 Filed 11–9–15; 8:45 am]
the changes set forth in SR–FINRA–
Statutory Basis for, the Proposed Rule 2015–015 with respect to Web-based
BILLING CODE 8011–01–P Change delivery of the Regulatory Element of
1. Purpose the Continuing Education Programs for
SECURITIES AND EXCHANGE the S106 for Investment Company and
The Exchange proposes to amend the
COMMISSION Variable Contracts Representatives, the
Fees Schedule.3 Specifically, the
S201 for Registered Principals and
[Release No. 34–76352; File No. SR–CBOE– Exchange proposes to make changes to
Supervisors, and the S901 for
2015–093] the Continuing Education Fees section Operations Professionals. Consistent
of the Fees Schedule to provide that with SR–CBOE–2015–084, this
Self-Regulatory Organizations; continuing education for all registration proposed rule change, proposes to
Chicago Board Options Exchange, except the Series 56 will be $55 if amend the Fees Schedule to provide
Incorporated; Notice of Filing and conducted via Web-delivery. Continuing that effective immediately, the fee for
Immediate Effectiveness of a Proposed education for all registration except the Web-based delivery of the Regulatory
Rule Change To Amend the Fees Series 56 will remain $100 if conducted Elements of the S106, S201, and S901
Schedule at a testing center. Continuing Education Programs will be
On August 8, 2015, the Securities and $55. The fee for test-center delivery of
November 4, 2015.
Exchange Commission approved SR– the Regulatory Element of the S106,
Pursuant to Section 19(b)(1) of the
FINRA–2015–015 relating proposed S201, and S901 Continuing Education
Securities Exchange Act of 1934 (the
changes to FINRA Rule 1250 to provide Programs will continue to be $100 per
‘‘Act’’),1 and Rule 19b–4 thereunder,2
a Web-based delivery method for session until test-center delivery of the
notice is hereby given that on October
completing the Regulatory Element of Regulatory Element is phased out and
30, 2015, Chicago Board Options
the continuing education requirements.4 the programs are no longer offered at
Exchange, Incorporated (the ‘‘Exchange’’
Pursuant to the rule change, effective testing centers. At that time, the
or ‘‘CBOE’’) filed with the Securities
October 1, 2015, the Regulatory Element Exchange will file another fee filing to
and Exchange Commission (the
of the Continuing Education Programs remove the test center option for
‘‘Commission’’) the proposed rule
for the S106 for Investment Company delivery of the Regulatory Element from
change as described in Items I, II, and
and Variable Contracts Representatives, the Fees Schedule.
III below, which Items have been
the S201 for Registered Principals and
prepared by the Exchange. The 2. Statutory Basis
Supervisors, and the S901 for
Commission is publishing this notice to
Operations Professionals will be The Exchange believes the proposed
solicit comments on the proposed rule
administered through Web-based rule change is consistent with the Act
change from interested persons.
delivery or such other technological and the rules and regulations
I. Self-Regulatory Organization’s manner and format as specified by thereunder applicable to the Exchange
Statement of the Terms of the Substance FINRA. The Regulatory Element of these and, in particular, the requirements of
of the Proposed Rule Change Continuing Education Programs will Section 6(b) of the Act.7 Specifically,
The Exchange proposes to amend the continue to be offered at testing centers the Exchange believes the proposed rule
Fees Schedule relating to Continuing until no later than six months after change is consistent with the Section
Education Fees. The text of the
3 The Exchange initially filed the proposed fee 5 Test-center delivery of the Regulatory Element
asabaliauskas on DSK5VPTVN1PROD with NOTICES
proposed rule change is available on the change on October 2, 2015 (SR–CBOE–2015–086). will be phased out by no later than six months after
Exchange’s Web site (http:// On October 9, 2015, the Exchange withdrew SR– January 4, 2016. See Securities Exchange Act
www.cboe.com/AboutCBOE/ CBOE–2015–086. Release No. 75581 (July 31, 2015), 80 FR 47018
CBOELegalRegulatoryHome.aspx), at 4 See Securities Exchange Act Release No. 75581 (August 6, 2015) (Order Approving a Proposed Rule
(July 31, 2015), 80 FR 47018 (August 6, 2015) Change To Provide a Web-Based Delivery Method
the Exchange’s Office of the Secretary, for Completing the Regulatory Element of the
(Order Approving a Proposed Rule Change to
Provide a Web-based Delivery Method for Continuing Education) (SR–FINRA–2015–015).
31 17 CFR 200.30–3(a)(12). 6 Available at http://www.cboe.com/publish/
Completing the Regulatory Element of the
1 15 U.S.C. 78s(b)(1). RuleFilingsSEC/SR-CBOE-2015-084.pdf
Continuing Education Requirements) (SR–FINRA–
2 17 CFR 240.19b–4. 2015–015). 7 15 U.S.C. 78f(b).
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Document Created: 2018-03-01 11:26:17
Document Modified: 2018-03-01 11:26:17
| 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 69755 |
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