80 FR 71847 - Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the Securities Trader and Securities Trader Principal Registration Categories
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 221 (November 17, 2015)
Federal Register Volume 80, Issue 221 (November 17, 2015)
| Page Range | 71847-71850 | |
| FR Document | 2015-29225 |
[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)] [Notices] [Pages 71847-71850] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-29225] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76409; File No. SR-BX-2015-066] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the Securities Trader and Securities Trader Principal Registration Categories November 10, 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 November 4, 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 The Exchange proposes to establish the Securities Trader and Securities Trader Principal registration categories and to retire the Limited Representative--Proprietary Trader and Limited Principal-- Proprietary Trader registration categories. The Exchange is also amending its rules to establish the Series 57 examination as the appropriate qualification examination for Securities Traders and deleting the rule referring to the S501 continuing education program currently applicable to Proprietary Traders. 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 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 Exchange is proposing to replace the Proprietary Trader registration category (the ``Proprietary Trader'' registration category) and Proprietary Trader qualification examination (Series 56) with the Securities Trader registration category and Securities Trader qualification examination (Series 57) in its registration rules relating to securities trading activity. Similarly, the Exchange proposes to replace the Limited Principal--Proprietary Trader registration category (the ``Proprietary Trader Principal'' registration category) with the Securities Trader Principal registration category. This filing is, in all material respects, based upon SR-FINRA-2015- 017, which was recently approved by the Commission.\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 75783 (August 28, 2015), 80 FR 53369 (September 3, 2015) (approving SR-FINRA-2015-017) (the ``FINRA Amendments''). --------------------------------------------------------------------------- I. Securities Trader Registration Category Today, BX Rule 1032(a) requires each person associated with a member who is included within the definition of a [[Page 71848]] Representative \4\ to register with the Exchange as a General Securities Representative and to pass an appropriate Qualification Examination before such registration may become effective unless his or her activities are so limited as to qualify him for one or more limited categories of representative registration specified in Rule 1032. Subparagraph (b) to Rule 1032 sets forth the Proprietary Trader category of registration limited to persons who are associated with a proprietary trading firm \5\ and whose activities in the investment banking or securities business are limited solely to proprietary trading. Persons who deal with the public do not fit in this registration category and must continue to register as General Securities Representatives.\6\ --------------------------------------------------------------------------- \4\ ``Representative'' is defined in Rule 1011 as an Associated Person of a registered broker or dealer who is engaged in the investment banking or securities business for the member including the functions of supervision, solicitation or conduct of business in securities or who is engaged in the training of persons associated with a broker or dealer for any of these functions are designated as representatives. As provided in Rule 1031, all Representatives of BX members are required to be registered with the Exchange, and Representatives that are so registered are referred to as ``Registered Representatives''. \5\ ``Proprietary trading firm'' is defined in Rule 1011 as an Applicant with the following characteristics: (1) The Applicant is not required by Section 15(b)(8) of the Act to become a FINRA member but is a member of another registered securities exchange not registered solely under Section 6(g) of the Act; (2) all funds used or proposed to be used by the Applicant for trading are the Applicant's own capital, traded through the Applicant's own accounts; (3) the Applicant does not, and will not have ``customers,'' as that term is defined in Equity Rule 0120(g); and(4) all Principals and Representatives of the Applicant acting or to be acting in the capacity of a trader must be owners of, employees of, or contractors to the Applicant. \6\ Persons who are registered as General Securities Representatives and have passed the Series 7 may perform the functions of a Proprietary Trader. Associated persons may register as General Securities Representatives upon passing the Series 7 examination and then function as a Proprietary Trader. --------------------------------------------------------------------------- The Exchange is proposing to retire the Proprietary Trader registration category by deleting current Rule 1032(b) and adopting proposed Rule 1032(b) establishing the new Securities Trader registration category. Proposed Rule 1032(b) requires that each person associated with a member who is included within the definition of a representative as defined in Rule 1011 must register with the Exchange as a Securities Trader if, with respect to transactions in equity, preferred or convertible debt securities, or foreign currency options on the Exchange, such person is engaged in proprietary trading, the execution of transactions on an agency basis, or the direct supervision of such activities, other than any person associated with a member whose trading activities are conducted principally on behalf of an investment company that is registered with the Commission pursuant to the Investment Company Act of 1940 and that controls, is controlled by or is under common control, with the member (an ``investment company firm''). The proposed language requires applicants to pass an appropriate Qualification Examination for Securities Trader (the Series 57 examination) before registering in the new Securities Trader category. It also provides that a person registered as a Securities Trader shall not be qualified to function in any other registration category, unless he or she is also qualified and registered in such other registration category. A person registered as a Proprietary Trader in the Central Registration Depository (CRD[supreg]) system on the effective date of the proposed rule change will be grandfathered as a Securities Trader without having to take any additional examinations and without having to take any other actions. In addition, individuals who were registered as a Proprietary Trader in the CRD system prior to the effective date of the proposed rule change will be eligible to register as Securities Traders without having to take any additional examinations, provided that no more than two years have passed between the date they were last registered as a representative and the date they register as a Securities Trader. Persons registered in the new category would be subject to the continuing education requirements of Rule 1120. The Exchange proposes to amend Rule 1120(a) by removing the option for Series 56 registered persons to participate in the S501 Series 56 Proprietary Trader continuing education program in order to satisfy the Regulatory Element. The S501 Series 56 Proprietary Trader continuing education program is being phased out along with the Series 56 Proprietary Trader qualification examination. As a result, effective January 4, 2016, the S501 Series 56 Proprietary Trader continuing education program for Series 56 registered persons will cease to exist. In place of the S501 Series 56 Proprietary Trader continuing education program for Series 56 registered persons, the Exchange proposes that Series 57 registered persons be permitted to enroll in the S101 General Program for Series 7 and all other registered persons.\7\ --------------------------------------------------------------------------- \7\ The Commission notes that amended Rule 1120(a)(1) would require Series 57 registered persons to take the S101 General Program. See Rule 1120(a)(1). --------------------------------------------------------------------------- II. Securities Trader Principal Registration Category Currently, Exchange Rule 1021 requires all persons engaged or to be engaged in the investment banking or securities business of a member who are to function as principals to be registered as such with the Exchange in the category of registration appropriate to the function to be performed as specified in Rule 1022.\8\ Before their registration can become effective, they are required to pass a Qualification Examination for Principals appropriate to the category of registration as specified by the Exchange Board. Pursuant to Rule 1021(b), persons associated with a member as sole proprietor, officer, partner, manager of office of supervisory jurisdiction or corporate director, who are actively engaged in the management of the member's investment banking or securities business, including supervision, solicitation, conduct of business or the training of persons associated with a member for any of these functions, are designated as Principals. --------------------------------------------------------------------------- \8\ Additionally, Rule 1021(e), Requirement of Two Registered Principals for Members, establishes that an Exchange member, except a sole proprietorship, shall have at least two officers or partners who are registered as principals with respect to each aspect of the member's investment banking and securities business pursuant to the applicable provisions of Rule 1022; provided, however, that a proprietary trading firm with 25 or fewer registered representatives shall only be required to have one officer or partner who is registered as a principal. --------------------------------------------------------------------------- Rule 1022 lists the categories of principal registration. In addition to ``General Securities Principal,'' which is the broadest category, there are three limited categories of principal registration: Financial and Operations, General Securities Sales Supervisor, and Proprietary Trader. Pursuant to Rule 1022(h), the Proprietary Trader Principal category is available for persons whose supervisory responsibilities in the investment banking and securities business are limited to the activities of a member that involve proprietary trading. Currently, Rule 1022 requires that such persons be registered pursuant to Exchange rules as a Proprietary Trader, be qualified to be so registered by passing the Series 24 examination (the same qualification required for registration as a General Securities Principal), and not function in a principal capacity with responsibility over any area of business activity other than proprietary trading. Under Exchange Rule 1032(b)(1)(B), the prerequisite examination for the [[Page 71849]] Proprietary Trader Principal category is the Series 56 examination. In consultation with FINRA and other exchanges, the Exchange is now proposing to retire the Proprietary Trader Principal category. Accordingly, it is deleting Rule 1022(h) in its entirety. In its place the Exchange is adopting new Rule 1022(h), which adds a new Securities Trader Principal registration category. Under the proposed rule each person associated with a member who is included within the definition of principal in Rule 1021 and who will have supervisory responsibility over the securities trading activities described in Rule 1032(b) must become qualified and registered as a Securities Trader Principal. The proposed rule change should allow BX to more easily track principals with supervisory responsibility over securities trading activities. To qualify for registration as a Securities Trader Principal, a candidate would first be required to qualify and register as a Securities Trader under Rule 1032(b) and pass the General Securities Principal qualification examination. A person who is qualified and registered as a Securities Trader Principal under the new rule would only have supervisory responsibility over the securities trading activities specified in Rule 1032(b), unless such person were separately qualified and registered in another appropriate principal registration category, such as the General Securities Principal registration category. Finally, a registered General Securities Principal would not be qualified to supervise the securities trading activities described in Rule 1032(b), unless such person also qualified and registered as a Securities Trader under Rule 1032(b) by passing the Securities Trader qualification examination and registered as a Securities Trader Principal. A person registered as a Proprietary Trader Principal in the CRD system on the effective date of the proposed rule change will be eligible to register as a Securities Trader Principal without having to take any additional examinations. An individual who was registered as a Proprietary Trader Principal in the CRD system prior to the effective date of the proposed rule change will also be eligible to register as a Securities Trader Principal without having to take any additional examinations, provided that no more than two years have passed between the date they [sic] were last registered as a principal and the date they [sic] register as a Securities Trader Principal. Members, however, will be required to affirmatively register persons transitioning to the proposed registration category as Securities Trader Principals on or after the effective date of the proposed rule change. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \9\ in general, and furthers the objectives of Section 6(b)(5) of the Act \10\ in particular, in that it is designed to promote just and equitable principles of trade, 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. The Exchange believes that the requirements of the Securities Trader and Securities Trader Principal registration categories, as well as the new Securities Trader qualification examination, should help ensure that proprietary traders and the principals who supervise proprietary traders and proprietary trading are, and will continue to be, properly trained and qualified to perform their functions which should protect investors and the public interest. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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. Implementation of the proposed changes to BX's registration rules in coordination with the FINRA Amendments does not present any competitive issues, but rather is designed to provide less burdensome and more efficient regulatory compliance for members and enhance the ability of the Exchange to fairly and efficiently regulate members, which will further enhance competition. Additionally, the proposed rule change should not affect intramarket competition because all similarly situated representatives and principals will be required to complete the same qualification examinations and maintain the same registrations. Finally, the proposed rule change does not impose any additional examination burdens on persons who are already registered. There is no obligation to take the proposed Series 57 examination in order to continue in their present duties, so the proposed rule change is not expected to disadvantage current registered persons relative to new entrants in this regard. 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: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) 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)(iii) of the Act \11\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\12\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(a)(iii). \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- 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-BX-2015-066 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-2015-066. This file [[Page 71850]] 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 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-BX-2015-066 and should be submitted on or before December 8, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-29225 Filed 11-16-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices 71847
Units 3 and 4: Section 189a. of the public meetings in another format (e.g. also amending its rules to establish the
Atomic Energy Act Proceeding braille, large print), please notify Series 57 examination as the
(Public Meeting) Kimberly Meyer, NRC Disability appropriate qualification examination
(Contact: Tom Tai: 301–415–8484) Program Manager, at 301–287–0739, by for Securities Traders and deleting the
This meeting will be webcast live at videophone at 240–428–3217, or by rule referring to the S501 continuing
the Web address—http://www.nrc.gov/. email at Kimberly.Meyer- education program currently applicable
Week of November 23, 2015—Tentative Chambers@nrc.gov. Determinations on to Proprietary Traders.
requests for reasonable accommodation The text of the proposed rule change
There are no meetings scheduled for will be made on a case-by-case basis. is available on the Exchange’s Web site
the week of November 23, 2015. * * * * * at http://nasdaqomxbx.cchwall
Week of November 30, 2015—Tentative Members of the public may request to street.com/, at the principal office of the
receive this information electronically. Exchange, and at the Commission’s
Thursday, December 3, 2015 If you would like to be added to the Public Reference Room.
9:30 a.m. Briefing on Equal Employment distribution, please contact the Nuclear
Opportunity and Civil Rights Regulatory Commission, Office of the II. Self-Regulatory Organization’s
Outreach (Public Meeting) Secretary, Washington, DC 20555 (301– Statement of the Purpose of, and
(Contact: Larniece McKoy Moore: 415–1969), or email Statutory Basis for, the Proposed Rule
301–415–1942) Brenda.Akstulewicz@nrc.gov or Change
This meeting will be webcast live at Patricia.Jimenez@nrc.gov. In its filing with the Commission, the
the Web address—http://www.nrc.gov/. Dated: November 10, 2015. Exchange included statements
Week of December 7, 2015—Tentative Denise L. McGovern, concerning the purpose of and basis for
There are no meetings scheduled for Policy Coordinator, Office of the Secretary. the proposed rule change and discussed
the week of December 7, 2015. [FR Doc. 2015–29404 Filed 11–13–15; 11:15 am] any comments it received on the
BILLING CODE 7590–01–P proposed rule change. The text of these
Week of December 14, 2015—Tentative statements may be examined at the
Tuesday, December 15, 2015 places specified in Item IV below. The
SECURITIES AND EXCHANGE Exchange has prepared summaries, set
9:00 a.m. Hearing on Construction forth in sections A, B, and C below, of
Permit for SHINE Medical Isotope COMMISSION
the most significant aspects of such
Production Facility: Section 189a. [Release No. 34–76409; File No. SR–BX– statements.
of the Atomic Energy Act 2015–066]
Proceeding (Public Meeting) A. Self-Regulatory Organization’s
(Contact: Steven Lynch: 301–415– Self-Regulatory Organizations; Statement of the Purpose of, and
1524) NASDAQ OMX BX, Inc.; Notice of Filing Statutory Basis for, the Proposed Rule
This meeting will be webcast live at and Immediate Effectiveness of Change
the Web address—http://www.nrc.gov/. Proposed Rule Change To Establish
the Securities Trader and Securities 1. Purpose
Thursday, December 17, 2015 Trader Principal Registration The Exchange is proposing to replace
9:30 a.m. Briefing on Project AIM 2020 Categories the Proprietary Trader registration
(Public Meeting) category (the ‘‘Proprietary Trader’’
(Contact: John Jolicoeur 301–415– November 10, 2015.
Pursuant to Section 19(b)(1) of the registration category) and Proprietary
1642) Trader qualification examination (Series
This meeting will be webcast live at Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 56) with the Securities Trader
the Web address—http://www.nrc.gov/. registration category and Securities
notice is hereby given that on November
Week of December 21, 2015—Tentative 4, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ Trader qualification examination (Series
or ‘‘Exchange’’) filed with the Securities 57) in its registration rules relating to
There are no meetings scheduled for
and Exchange Commission (‘‘SEC’’ or securities trading activity. Similarly, the
the week of December 21, 2015.
‘‘Commission’’) the proposed rule Exchange proposes to replace the
* * * * * Limited Principal—Proprietary Trader
The schedule for Commission change as described in Items I, II, and
III, below, which Items have been registration category (the ‘‘Proprietary
meetings is subject to change on short Trader Principal’’ registration category)
notice. For more information or to verify prepared by the Exchange. The
Commission is publishing this notice to with the Securities Trader Principal
the status of meetings, contact Denise registration category.
McGovern at 301–415–0681 or via email solicit comments on the proposed rule
at Denise.McGovern@nrc.gov. change from interested persons. This filing is, in all material respects,
based upon SR–FINRA–2015–017,
* * * * * I. Self-Regulatory Organization’s
which was recently approved by the
The NRC Commission Meeting Statement of the Terms of Substance of
Commission.3
Schedule can be found on the Internet the Proposed Rule Change
at: http://www.nrc.gov/public-involve/ The Exchange proposes to establish I. Securities Trader Registration
public-meetings/schedule.html. the Securities Trader and Securities Category
mstockstill on DSK4VPTVN1PROD with NOTICES
* * * * * Trader Principal registration categories Today, BX Rule 1032(a) requires each
The NRC provides reasonable and to retire the Limited person associated with a member who is
accommodation to individuals with Representative—Proprietary Trader and included within the definition of a
disabilities where appropriate. If you Limited Principal—Proprietary Trader
need a reasonable accommodation to registration categories. The Exchange is 3 See Securities Exchange Act Release No. 75783
participate in these public meetings, or (August 28, 2015), 80 FR 53369 (September 3, 2015)
need this meeting notice or the 1 15 U.S.C. 78s(b)(1). (approving SR–FINRA–2015–017) (the ‘‘FINRA
transcript or other information from the 2 17 CFR 240.19b–4. Amendments’’).
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Proprietary Trader Principal category is transitioning to the proposed C. Self-Regulatory Organization’s
the Series 56 examination. registration category as Securities Statement on Comments on the
In consultation with FINRA and other Trader Principals on or after the Proposed Rule Change Received From
exchanges, the Exchange is now effective date of the proposed rule Members, Participants, or Others
proposing to retire the Proprietary change. No written comments were either
Trader Principal category. Accordingly,
2. Statutory Basis solicited or received.
it is deleting Rule 1022(h) in its entirety.
In its place the Exchange is adopting The Exchange believes that its III. Date of Effectiveness of the
new Rule 1022(h), which adds a new proposal is consistent with Section 6(b) Proposed Rule Change and Timing for
Securities Trader Principal registration of the Act 9 in general, and furthers the Commission Action
category. Under the proposed rule each objectives of Section 6(b)(5) of the Act 10 Because the foregoing proposed rule
person associated with a member who is in particular, in that it is designed to
change does not: (i) Significantly affect
included within the definition of promote just and equitable principles of
the protection of investors or the public
principal in Rule 1021 and who will trade, to remove impediments to and
interest; (ii) impose any significant
have supervisory responsibility over the perfect the mechanism of a free and
burden on competition; and (iii) become
securities trading activities described in open market and a national market
operative for 30 days from the date on
Rule 1032(b) must become qualified and system, and, in general to protect
which it was filed, or such shorter time
registered as a Securities Trader investors and the public interest. The
as the Commission may designate, it has
Principal. The proposed rule change Exchange believes that the requirements
become effective pursuant to Section
should allow BX to more easily track of the Securities Trader and Securities
19(b)(3)(A)(iii) of the Act 11 and
principals with supervisory Trader Principal registration categories,
as well as the new Securities Trader subparagraph (f)(6) of Rule 19b–4
responsibility over securities trading
qualification examination, should help thereunder.12
activities. At any time within 60 days of the
To qualify for registration as a ensure that proprietary traders and the
filing of the proposed rule change, the
Securities Trader Principal, a candidate principals who supervise proprietary
Commission summarily may
would first be required to qualify and traders and proprietary trading are, and
temporarily suspend such rule change if
register as a Securities Trader under will continue to be, properly trained
and qualified to perform their functions it appears to the Commission that such
Rule 1032(b) and pass the General
which should protect investors and the action is: (i) Necessary or appropriate in
Securities Principal qualification
public interest. the public interest; (ii) for the protection
examination. A person who is qualified
and registered as a Securities Trader of investors; or (iii) otherwise in
B. Self-Regulatory Organization’s furtherance of the purposes of the Act.
Principal under the new rule would
Statement on Burden on Competition If the Commission takes such action, the
only have supervisory responsibility
over the securities trading activities The Exchange does not believe that Commission shall institute proceedings
specified in Rule 1032(b), unless such the proposed rule change will impose to determine whether the proposed rule
person were separately qualified and any burden on competition not should be approved or disapproved.
registered in another appropriate necessary or appropriate in furtherance IV. Solicitation of Comments
principal registration category, such as of the purposes of the Act.
Implementation of the proposed Interested persons are invited to
the General Securities Principal
changes to BX’s registration rules in submit written data, views, and
registration category. Finally, a
coordination with the FINRA arguments concerning the foregoing,
registered General Securities Principal
Amendments does not present any including whether the proposed rule
would not be qualified to supervise the
competitive issues, but rather is change is consistent with the Act.
securities trading activities described in
designed to provide less burdensome Comments may be submitted by any of
Rule 1032(b), unless such person also
and more efficient regulatory the following methods:
qualified and registered as a Securities
Trader under Rule 1032(b) by passing compliance for members and enhance Electronic Comments
the Securities Trader qualification the ability of the Exchange to fairly and
• Use the Commission’s Internet
examination and registered as a efficiently regulate members, which will
comment form (http://www.sec.gov/
Securities Trader Principal. further enhance competition.
rules/sro.shtml); or
A person registered as a Proprietary Additionally, the proposed rule change • Send an email to rule-comments@
Trader Principal in the CRD system on should not affect intramarket sec.gov. Please include File Number SR–
the effective date of the proposed rule competition because all similarly BX–2015–066 on the subject line.
change will be eligible to register as a situated representatives and principals
Securities Trader Principal without will be required to complete the same Paper Comments
having to take any additional qualification examinations and maintain • Send paper comments in triplicate
examinations. An individual who was the same registrations. Finally, the to Brent J. Fields, Secretary, Securities
registered as a Proprietary Trader proposed rule change does not impose and Exchange Commission, 100 F Street
Principal in the CRD system prior to the any additional examination burdens on NE., Washington, DC 20549–1090.
effective date of the proposed rule persons who are already registered. All submissions should refer to File
change will also be eligible to register as There is no obligation to take the Number SR–BX–2015–066. This file
a Securities Trader Principal without proposed Series 57 examination in order
mstockstill on DSK4VPTVN1PROD with NOTICES
having to take any additional to continue in their present duties, so 11 15 U.S.C. 78s(b)(3)(a)(iii).
examinations, provided that no more the proposed rule change is not 12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
than two years have passed between the expected to disadvantage current 4(f)(6) requires a self-regulatory organization to give
date they [sic] were last registered as a registered persons relative to new the Commission written notice of its intent to file
principal and the date they [sic] register the proposed rule change at least five business days
entrants in this regard. prior to the date of filing of the proposed rule
as a Securities Trader Principal. change, or such shorter time as designated by the
Members, however, will be required to 9 15 U.S.C. 78f(b). Commission. The Exchange has satisfied this
affirmatively register persons 10 15 U.S.C. 78f(b)(5). requirement.
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number should be included on the (‘‘Commission’’) the proposed rule fee of $0.0027 per share for Members’
subject line if email is used. To help the change as described in Items I, II and III orders that yield fee code D. The
Commission process and review your below, which Items have been prepared Exchange proposes to amend its Fee
comments more efficiently, please use by the Exchange. The Exchange has Schedule to increase this fee to
only one method. The Commission will designated the proposed rule change as $0.00275 per share. The proposed
post all comments on the Commission’s one establishing or changing a member change would enable the Exchange to
Internet Web site (http://www.sec.gov/ due, fee, or other charge imposed by the pass through the rate that BATS
rules/sro.shtml). Exchange under Section 19(b)(3)(A)(ii) Trading, Inc. (‘‘BATS Trading’’), the
Copies of the submission, all of the Act 3 and Rule 19b–4(f)(2) Exchange’s affiliated routing broker-
subsequent amendments, all written thereunder,4 which renders the dealer, is charged for routing orders to
statements with respect to the proposed proposed rule change effective upon NYSE when it does not qualify for a
rule change that are filed with the filing with the Commission. The volume tiered reduced fee. The
Commission, and all written Commission is publishing this notice to proposed change is in response to
communications relating to the solicit comments on the proposed rule NYSE’s November 2015 fee change
proposed rule change between the change from interested persons. where NYSE increased the fee to remove
Commission and any person, other than liquidity via routable order types it
those that may be withheld from the I. Self-Regulatory Organization’s
charges its customers, from a fee of
public in accordance with the Statement of the Terms of Substance of
$0.0027 per share to a fee of $0.00275
provisions of 5 U.S.C. 552, will be the Proposed Rule Change
per share.6 When BATS Trading routes
available for Web site viewing and The Exchange filed a proposal to to NYSE, it will now be charged a
printing in the Commission’s Public amend its fees and rebates applicable to standard rate of $0.00275 per share.
Reference Room, 100 F Street NE., Members 5 and non-members of the BATS Trading will pass through this
Washington, DC 20549, on official Exchange pursuant to EDGA Rule rate to the Exchange and the Exchange,
business days between the hours of 15.1(a) and (c) (‘‘Fee Schedule’’). in turn, will pass through of a rate of
10:00 a.m. and 3:00 p.m. Copies of the The text of the proposed rule change $0.00275 per share to its Members. The
filing also will be available for is available at the Exchange’s Web site proposed increase to the fee under fee
inspection and copying at the principal at www.batstrading.com, at the code D would enable the Exchange to
office of the Exchange. All comments principal office of the Exchange, and at equitably allocate its costs among all
received will be posted without change; the Commission’s Public Reference Members utilizing fee code D. The
the Commission does not edit personal Room. Exchange proposes to implement this
identifying information from II. Self-Regulatory Organization’s amendment to its Fee Schedule
submissions. You should submit only Statement of the Purpose of, and immediately.
information that you wish to make Statutory Basis for, the Proposed Rule In addition to the change proposed
available publicly. Change above, the Exchange proposes to change
All submissions should refer to File certain references on the Fee Schedule
Number SR–BX–2015–066 and should In its filing with the Commission, the in connection with the launch of the
be submitted on or before December 8, Exchange included statements options exchange operated by the
2015. concerning the purpose of and basis for Exchange’s affiliate, EDGX Exchange,
the proposed rule change and discussed Inc. (‘‘EDGX Options’’). First, the
For the Commission, by the Division of
Trading and Markets, pursuant to delegated any comments it received on the Exchange propose [sic] to modify
authority.13 proposed rule change. The text of these references in the Unicast Access section
Robert W. Errett, statements may be examined at the under BATS Connect fees to refer to
Deputy Secretary. places specified in Item IV below. The ‘‘BZX Options’’ instead of ‘‘BATS
Exchange has prepared summaries, set Options’’. Second, the Exchange
[FR Doc. 2015–29225 Filed 11–16–15; 8:45 am]
forth in Sections A, B, and C below, of proposes to add reference to EDGX
BILLING CODE 8011–01–P
the most significant parts of such Options in the list of Exchange affiliates
statements. to which such fees do not apply.
SECURITIES AND EXCHANGE (A) Self-Regulatory Organization’s 2. Statutory Basis
COMMISSION Statement of the Purpose of, and The Exchange believes that the
[Release No. 34–76417; File No. SR–EDGA– Statutory Basis for, the Proposed Rule proposed rule change is consistent with
2015–43] Change the objectives of Section 6 of the Act,7
1. Purpose in general, and furthers the objectives of
Self-Regulatory Organizations; EDGA Section 6(b)(4),8 in particular, as it is
Exchange, Inc.; Notice of Filing and The Exchange proposes to increase
the fee for orders yielding fee code D, designed to provide for the equitable
Immediate Effectiveness of a Proposed allocation of reasonable dues, fees and
Rule Change Related to Fees which results from an order routed to
the New York Stock Exchange (‘‘NYSE’’) other charges among its Members and
November 10, 2015. or routed using the RDOT routing other persons using its facilities. The
Pursuant to Section 19(b)(1) of the strategy. In securities priced at or above Exchange believes that its proposal to
Securities Exchange Act of 1934 (the $1.00, the Exchange currently assesses a increase the fee for Members’ orders that
‘‘Act’’),1 and Rule 19b–4 thereunder,2 yield fee code D from $0.0027 per share
mstockstill on DSK4VPTVN1PROD with NOTICES
notice is hereby given that on November 3 15 U.S.C. 78s(b)(3)(A)(ii). to $0.00275 per share represents an
2, 2015, EDGA Exchange, Inc. (the 4 17 CFR 240.19b–4(f)(2).
6 See NYSE Trader Update, Fee Changes Effective
‘‘Exchange’’ or ‘‘EDGA’’) filed with the 5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer, or any person associated November 2, dated October 30, 2015, available at
Securities and Exchange Commission https://www.nyse.com/publicdocs/nyse/markets/
with a registered broker or dealer, that has been
admitted to membership in the Exchange [sic]. A nyse/NYSE_Client_Notice_Fee_Change_11_
13 17 CFR 200.30–3(a)(12). 2015.pdf.
Member will have the status of a ‘‘member’’ of the
1 15 U.S.C. 78s(b)(1). 7 15 U.S.C. 78f.
Exchange as that term is defined in Section 3(a)(3)
2 17 CFR 240.19b–4. of the Act.’’ See Exchange Rule 1.5(n). 8 15 U.S.C. 78f(b)(4).
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Document Created: 2015-12-14 14:01:26
Document Modified: 2015-12-14 14:01:26
| 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 71847 |
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