80 FR 71887 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the Securities Trader and Securities Trader Principal Registration Categories and To Retire Other 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 | 71887-71890 | |
| FR Document | 2015-29230 |
[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)] [Notices] [Pages 71887-71890] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-29230] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76410; File No. SR-NASDAQ-2015-138] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish the Securities Trader and Securities Trader Principal Registration Categories and To Retire Other 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, The NASDAQ Stock Market LLC (``Nasdaq'' 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 a proposal [sic] to retire the Limited Representative --Equity Trader, Limited Representative--Proprietary Trader and Limited Principal--Proprietary Trader registration categories and to establish the Securities Trader and Securities Trader Principal 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://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 Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is proposing herein to replace the Series 56 with the Series 57 examination, and to make additional changes to its registration rules. Specifically, in response to the FINRA Amendments (defined below), the Exchange is proposing to retire the Limited Representative--Equity Trader (``Equity Trader'') \3\ and the Limited Representative--Proprietary Trader (``Proprietary Trader'') \4\ registration categories from its own registration rules relating to securities trading activity. It is also therefore retiring its Limited Principal--Proprietary Trader (``Proprietary Trader Principal'') \5\ registration category. To take the place of the retired registration categories, Nasdaq is establishing new Securities Trader and Securities Trader Principal registration categories. This filing is, in all material respects, based upon SR-FINRA-2015-017, which was recently approved by the Commission.\6\ --------------------------------------------------------------------------- \3\ Rule 1032(f). \4\ Rule 1032(c). \5\ Rule 1022(h). \6\ See Securities Exchange Act Release No. 75783 (August 28, 2015), 80 FR 53369 (September 3, 2015) (approving SR-FINRA-2015-017) referred to herein as the ``FINRA Amendments''. According to the release, FINRA's expected effective date for the FINRA Amendments is January 4, 2016. --------------------------------------------------------------------------- New Nasdaq Securities Trader Registration Category Currently, under Nasdaq Rule 1032(a)(1), each person associated with a member who is included within the definition of a ``representative'' \7\ in Rule 1011 is required to register with Nasdaq 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 also set forth in Rule 1032. The appropriate qualification examination for General Securities Representative is the Series 7 examination. --------------------------------------------------------------------------- \7\ The term ``representative'' is defined in Exchange Rule 1011. --------------------------------------------------------------------------- Nasdaq Rule 1032(f) currently also requires each person associated with a member who is included within the definition of a representative to register with Nasdaq as an Equity Trader if, with respect to transactions in equity, preferred or convertible debt securities on Nasdaq, such person is engaged in proprietary trading, the execution of transactions on an agency basis, or the direct supervision of such activities (collectively, ``Nasdaq equities trading''), other than any person associated with (A) 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''), or (B) a proprietary trading firm. Therefore, [[Page 71888]] under current Nasdaq rules, a representative engaged in Nasdaq equities trading who is not associated with a proprietary trading firm or an investment company firm must register as an Equity Trader, after passing the appropriate qualification examination (the Series 55 examination). Additionally, before such registration may become effective, the individual must be registered either as a General Securities Representative (after passing the Series 7 examination) or as a Limited Representative--Corporate Securities Representative (after passing the Series 62 examination). Additionally, Nasdaq Rule 1032(c) currently provides that each person associated with a member who is included within the definition of a representative may register with Nasdaq as a Proprietary Trader if (A) his activities in the investment banking or securities business are limited solely to proprietary trading, (B) he passes an appropriate qualification examination (the Series 56) and (C) he is an associated person of a proprietary trading firm.\8\ Therefore, pursuant to Nasdaq Rules 1032(a) and (c), a representative associated with a proprietary trading firm who limits his trading activity to proprietary trading as specified in Rule 1032(c) has the opportunity to register in the Proprietary Trader category after passing the Series 56 examination rather than as a General Securities Representative after passing the Series 7 examination. --------------------------------------------------------------------------- \8\ The term ``proprietary trading firm'' is defined in Rule 1011(o). --------------------------------------------------------------------------- In consultation with FINRA and other exchanges, and in order to harmonize for individuals engaged in trading activities, the Exchange is now proposing to retire the Proprietary Trader registration category. Accordingly, it is deleting all rule text in section (c) of Rule 1032 and replacing it with the word ``Reserved''. Similarly, the Exchange is retiring the Equity Trader registration category in Rule 1032(f) and revising that rule to adopt a new Securities Trader registration category. Under Rule 1032(f), as revised, each person associated with a member who is included within the definition of a representative will be required to register as a Securities Trader if engaged in Nasdaq equities trading or foreign currency options trading on Nasdaq other than any person associated with an investment company firm. There is no exclusion from the new Securities Trader registration requirement for representatives of proprietary trading firms. Therefore, representatives who previously would have been required to register as Equity Traders, as well as those who previously qualified for Proprietary Trader registration, will be required to register as Securities Traders. In order to register as a Securities Trader, an applicant would be required to pass the new Securities Trader qualification examination (Series 57). However, unlike today's Equity Trader registrants, an applicant would be able to register as a Securities Trader without first registering as a General Securities Representative or a Limited Representative--Corporate Securities.\9\ New Nasdaq Rule 1032(f)(3) will prohibit a person registered as a Securities Trader from functioning in any other registration category, unless he or she is also qualified and registered in such other registration category.\10\ --------------------------------------------------------------------------- \9\ FINRA has stated in its filing proposing the FINRA amendments that the Series 57 examination will include the core knowledge portion of the General Securities Representative examination (Series 7). \10\ For instance, a person registered as a Securities Trader will not be able to engage in any retail or institutional sales activities, unless he or she is qualified and registered in the appropriate registration category, such as a General Securities Representative. See NASDAQ Rule 1032(a) which requires each representative associated with a member to register with Nasdaq as a General Securities Representative unless his or her activities are so limited as to qualify him for one or more of the limited categories of representative registration specified in Rule 1032. Like the Proprietary Trader category that is being retired (but unlike the Equity Trader category which is also being retired) the Securities Trader registration category is a limited category of representative registration. --------------------------------------------------------------------------- A person registered as an Equity Trader or 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 an Equity Trader or 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 required to take the S101 General Program for Series 7 and all other registered persons. II. New NASDAQ Securities Trader Principal Registration Category Currently, under NASDAQ Rule 1022(a), each person associated with a member who is included within the definition of ``principal'' \11\ and each person designated as a Chief Compliance Officer on Schedule A of Form BD must register with Nasdaq as a General Securities Principal and pass an appropriate qualification examination before such registration may become effective, unless such person's activities are so limited as to qualify such person for one or more of the limited categories of principal registration specified in Rule 1022.\12\ Currently, under Nasdaq Rule 1032(f)(1), an associated person with direct supervisory responsibility over the securities trading activities set forth in Nasdaq Rule 1032(f) is required to qualify and register as an Equity Trader. However, Nasdaq rules do not expressly require such persons to register in a specific principal registration category.\13\ Under Rule 1022(h) a principal may register under the Proprietary Trader Principal category if, among other things, he or she is registered as a Proprietary Trader and passes the Series 24 examination. --------------------------------------------------------------------------- \11\ ``Principal'' is defined in Rule 1021. \12\ Rule 1022 lists the categories of principal registration. In addition to ``General Securities Principal,'' which is the broadest category, there are a number of limited categories of principal registration including Financial and Operations, General Securities Sales Supervisor, and Limited Principal--Proprietary Trader. \13\ In general, a General Securities Principal with supervisory responsibility over securities trading activities is currently required to qualify and register as an Equity Trader. --------------------------------------------------------------------------- Like the Proprietary Trader category discussed above, the Proprietary Trader Principal registration category is being retired. The Exchange is therefore deleting Rule 1022(h). The Exchange is establishing a Securities Trader Principal category in new Rule 1022(a)(5). Nasdaq has been working with other exchanges and FINRA to develop this new principal registration [[Page 71889]] category and believes that it is an appropriate corollary to the new Securities Trader representative registration category. The new rule requires each principal who will have supervisory responsibility over the securities trading activities described in Rule 1032(f)(1) to become qualified and registered as a Securities Trader Principal. To qualify for registration as a Securities Trader Principal, an applicant must become qualified and registered as a Securities Trader under Rule 1032(f) and pass the General Securities Principal qualification examination (Series 24). A person who is qualified and registered as a Securities Trader Principal would only be permitted to have supervisory responsibility over the activities specified in Rule 1032(f)(1), unless such person were separately qualified and registered in another appropriate principal registration category, such as the General Securities Principal registration category. A person who registers as a General Securities Principal would not be qualified to supervise the trading activities described in Rule 1032(f)(1), unless such person also qualified and registered as a Securities Trader under Rule 1032(f) by passing the Securities Trader qualification examination, and became registered as a Securities Trader Principal. This aspect of the proposed rule change will also allow Nasdaq to more easily track principals with supervisory responsibility over securities trading activities. A person registered as a General Securities Principal and an Equity Trader or 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 General Securities Principal and an Equity Trader, or 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 \14\ in general, and furthers the objectives of Section 6(b)(5) of the Act \15\ 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. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b). \15\ 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 Nasdaq'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. 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 \16\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\17\ --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(3)(a)(iii). \17\ 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-NASDAQ-2015-138 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-NASDAQ-2015-138. 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 [[Page 71890]] 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-NASDAQ-2015-138 and should be submitted on or before December 8, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-29230 Filed 11-16-15; 8:45 am] BILLING CODE 8011-01-P
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number should be included on the notice is hereby given that on November (‘‘Equity Trader’’) 3 and the Limited
subject line if email is used. To help the 4, 2015, The NASDAQ Stock Market Representative—Proprietary Trader
Commission process and review your LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed (‘‘Proprietary Trader’’) 4 registration
comments more efficiently, please use with the Securities and Exchange categories from its own registration
only one method. The Commission will Commission (‘‘SEC’’ or ‘‘Commission’’) rules relating to securities trading
post all comments on the Commission’s the proposed rule change as described activity. It is also therefore retiring its
Internet Web site (http://www.sec.gov/ in Items I, II, and III, below, which Items Limited Principal—Proprietary Trader
rules/sro.shtml). have been prepared by the Exchange. (‘‘Proprietary Trader Principal’’) 5
Copies of the submission, all The Commission is publishing this registration category. To take the place
subsequent amendments, all written notice to solicit comments on the of the retired registration categories,
statements with respect to the proposed proposed rule change from interested Nasdaq is establishing new Securities
rule change that are filed with the persons. Trader and Securities Trader Principal
Commission, and all written registration categories. This filing is, in
communications relating to the I. Self-Regulatory Organization’s
all material respects, based upon SR–
proposed rule change between the Statement of the Terms of Substance of
FINRA–2015–017, which was recently
Commission and any person, other than the Proposed Rule Change
approved by the Commission.6
those that may be withheld from the The Exchange proposes to a proposal
public in accordance with the [sic] to retire the Limited Representative New Nasdaq Securities Trader
provisions of 5 U.S.C. 552, will be —Equity Trader, Limited Registration Category
available for Web site viewing and Representative—Proprietary Trader and Currently, under Nasdaq Rule
printing in the Commission’s Public Limited Principal—Proprietary Trader 1032(a)(1), each person associated with
Reference Room, 100 F Street NE., registration categories and to establish a member who is included within the
Washington, DC 20549–1090, on official the Securities Trader and Securities definition of a ‘‘representative’’ 7 in Rule
business days between the hours of Trader Principal registration categories. 1011 is required to register with Nasdaq
10:00 a.m. and 3:00 p.m. Copies of the The Exchange is also amending its rules as a General Securities Representative
filing also will be available for to establish the Series 57 examination as and to pass an appropriate qualification
inspection and copying at the principal the appropriate qualification examination before such registration
office of the Exchange. All comments examination for Securities Traders and may become effective, unless his or her
received will be posted without change; deleting the rule referring to the S501 activities are so limited as to qualify
the Commission does not edit personal continuing education program currently him for one or more limited categories
identifying information from applicable to Proprietary Traders. of representative registration also set
submissions. You should submit only The text of the proposed rule change forth in Rule 1032. The appropriate
information that you wish to make is available on the Exchange’s Web site qualification examination for General
available publicly. at http://nasdaq.cchwallstreet.com, at Securities Representative is the Series 7
All submissions should refer to File the principal office of the Exchange, and examination.
Number SR–MIAX–2015–63 and should at the Commission’s Public Reference Nasdaq Rule 1032(f) currently also
be submitted on or before December 8, Room. requires each person associated with a
2015. member who is included within the
II. Self-Regulatory Organization’s
For the Commission, by the Division of definition of a representative to register
Trading and Markets, pursuant to delegated Statement of the Purpose of, and
with Nasdaq as an Equity Trader if, with
authority.19 Statutory Basis for, the Proposed Rule
respect to transactions in equity,
Robert W. Errett, Change
preferred or convertible debt securities
Deputy Secretary. In its filing with the Commission, the on Nasdaq, such person is engaged in
[FR Doc. 2015–29218 Filed 11–16–15; 8:45 am] Exchange included statements proprietary trading, the execution of
BILLING CODE 8011–01–P concerning the purpose of and basis for transactions on an agency basis, or the
the proposed rule change and discussed direct supervision of such activities
any comments it received on the (collectively, ‘‘Nasdaq equities
SECURITIES AND EXCHANGE proposed rule change. The text of these trading’’), other than any person
COMMISSION statements may be examined at the associated with (A) a member whose
[Release No. 34–76410; File No. SR– places specified in Item IV below. The trading activities are conducted
NASDAQ–2015–138] Exchange has prepared summaries, set principally on behalf of an investment
forth in sections A, B, and C below, of company that is registered with the
Self-Regulatory Organizations; The the most significant aspects of such Commission pursuant to the Investment
NASDAQ Stock Market LLC; Notice of statements. Company Act of 1940 and that controls,
Filing and Immediate Effectiveness of A. Self-Regulatory Organization’s is controlled by or is under common
Proposed Rule Change To Establish Statement of the Purpose of, and control, with the member (an
the Securities Trader and Securities Statutory Basis for, the Proposed Rule ‘‘investment company firm’’), or (B) a
Trader Principal Registration Change proprietary trading firm. Therefore,
Categories and To Retire Other
Registration Categories 1. Purpose 3 Rule 1032(f).
4 Rule 1032(c).
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November 10, 2015. The Exchange is proposing herein to 5 Rule 1022(h).
Pursuant to Section 19(b)(1) of the replace the Series 56 with the Series 57 6 See Securities Exchange Act Release No. 75783
Securities Exchange Act of 1934 examination, and to make additional (August 28, 2015), 80 FR 53369 (September 3, 2015)
(‘‘Act’’) 1, and Rule 19b–4 thereunder,2 changes to its registration rules. (approving SR–FINRA–2015–017) referred to herein
Specifically, in response to the FINRA as the ‘‘FINRA Amendments’’. According to the
release, FINRA’s expected effective date for the
19 17 CFR 200.30–3(a)(12). Amendments (defined below), the FINRA Amendments is January 4, 2016.
1 15 U.S.C. 78s(b)(1). Exchange is proposing to retire the 7 The term ‘‘representative’’ is defined in
2 17 CFR 240.19b–4. Limited Representative—Equity Trader Exchange Rule 1011.
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category and believes that it is an 2. Statutory Basis operative for 30 days from the date on
appropriate corollary to the new The Exchange believes that its which it was filed, or such shorter time
Securities Trader representative proposal is consistent with Section 6(b) as the Commission may designate, it has
registration category. The new rule of the Act 14 in general, and furthers the become effective pursuant to Section
requires each principal who will have objectives of Section 6(b)(5) of the Act 15 19(b)(3)(A)(iii) of the Act 16 and
supervisory responsibility over the in particular, in that it is designed to subparagraph (f)(6) of Rule 19b–4
securities trading activities described in promote just and equitable principles of thereunder.17
Rule 1032(f)(1) to become qualified and trade, to remove impediments to and At any time within 60 days of the
registered as a Securities Trader perfect the mechanism of a free and filing of the proposed rule change, the
Principal. To qualify for registration as open market and a national market Commission summarily may
a Securities Trader Principal, an system, and, in general to protect temporarily suspend such rule change if
applicant must become qualified and investors and the public interest. The it appears to the Commission that such
registered as a Securities Trader under Exchange believes that the requirements action is: (i) Necessary or appropriate in
Rule 1032(f) and pass the General of the Securities Trader and Securities the public interest; (ii) for the protection
Securities Principal qualification Trader Principal registration categories, of investors; or (iii) otherwise in
examination (Series 24). A person who as well as the new Securities Trader furtherance of the purposes of the Act.
is qualified and registered as a qualification examination, should help If the Commission takes such action, the
Securities Trader Principal would only ensure that proprietary traders and the Commission shall institute proceedings
be permitted to have supervisory principals who supervise proprietary to determine whether the proposed rule
responsibility over the activities traders and proprietary trading are, and should be approved or disapproved.
specified in Rule 1032(f)(1), unless such will continue to be, properly trained IV. Solicitation of Comments
person were separately qualified and and qualified to perform their functions
registered in another appropriate which should protect investors and the Interested persons are invited to
principal registration category, such as public interest. submit written data, views, and
the General Securities Principal arguments concerning the foregoing,
registration category. A person who B. Self-Regulatory Organization’s including whether the proposed rule
registers as a General Securities Statement on Burden on Competition change is consistent with the Act.
Principal would not be qualified to The Exchange does not believe that Comments may be submitted by any of
supervise the trading activities the proposed rule change will impose the following methods:
described in Rule 1032(f)(1), unless any burden on competition not
Electronic Comments
such person also qualified and necessary or appropriate in furtherance
registered as a Securities Trader under of the purposes of the Act. • Use the Commission’s Internet
Rule 1032(f) by passing the Securities Implementation of the proposed comment form (http://www.sec.gov/
Trader qualification examination, and changes to Nasdaq’s registration rules in rules/sro.shtml); or
became registered as a Securities Trader coordination with the FINRA • Send an email to rule-comments@
Principal. This aspect of the proposed Amendments does not present any sec.gov. Please include File Number SR–
rule change will also allow Nasdaq to competitive issues, but rather is NASDAQ–2015–138 on the subject line.
more easily track principals with designed to provide less burdensome Paper Comments
supervisory responsibility over and more efficient regulatory
securities trading activities. compliance for members and enhance • Send paper comments in triplicate
the ability of the Exchange to fairly and to Brent J. Fields, Secretary, Securities
A person registered as a General and Exchange Commission, 100 F Street
Securities Principal and an Equity efficiently regulate members, which will
further enhance competition. NE., Washington, DC 20549–1090.
Trader or as a Proprietary Trader
Principal in the CRD system on the Additionally, the proposed rule change All submissions should refer to File
effective date of the proposed rule should not affect intramarket Number SR–NASDAQ–2015–138. This
change will be eligible to register as a competition because all similarly file number should be included on the
Securities Trader Principal without situated representatives and principals subject line if email is used. To help the
having to take any additional will be required to complete the same Commission process and review your
examinations. An individual who was qualification examinations and maintain comments more efficiently, please use
registered as a General Securities the same registrations. only one method. The Commission will
Principal and an Equity Trader, or as a post all comments on the Commission’s
C. Self-Regulatory Organization’s
Proprietary Trader Principal in the CRD Internet Web site (http://www.sec.gov/
Statement on Comments on the
system prior to the effective date of the rules/sro.shtml).
Proposed Rule Change Received From
proposed rule change will also be Copies of the submission, all
Members, Participants, or Others
eligible to register as a Securities Trader subsequent amendments, all written
No written comments were either statements with respect to the proposed
Principal without having to take any solicited or received.
additional examinations, provided that rule change that are filed with the
no more than two years have passed III. Date of Effectiveness of the Commission, and all written
between the date they [sic] were last Proposed Rule Change and Timing for communications relating to the
registered as a principal and the date Commission Action proposed rule change between the
mstockstill on DSK4VPTVN1PROD with NOTICES
they [sic] register as a Securities Trader Because the foregoing proposed rule 16 15 U.S.C. 78s(b)(3)(a)(iii).
Principal. Members, however, will be change does not: (i) Significantly affect 17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
required to affirmatively register the protection of investors or the public 4(f)(6) requires a self-regulatory organization to give
persons transitioning to the proposed interest; (ii) impose any significant the Commission written notice of its intent to file
registration category as Securities the proposed rule change at least five business days
burden on competition; and (iii) become prior to the date of filing of the proposed rule
Trader Principals on or after the change, or such shorter time as designated by the
effective date of the proposed rule 14 15 U.S.C. 78f(b). Commission. The Exchange has satisfied this
change. 15 15 U.S.C. 78f(b)(5). requirement.
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![71890 Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices
Commission and any person, other than I. Self-Regulatory Organization’s While NYSE Arca, NYSE and NYSE
those that may be withheld from the Statement of the Terms of Substance of MKT are the exclusive distributors of
public in accordance with the the Proposed Rule Change their BBO and Trades feeds from which
provisions of 5 U.S.C. 552, will be The Exchange proposes to make the data elements are taken to create the
available for Web site viewing and certain representations relating to the NYSE BQT data feed, the NYSE
printing in the Commission’s Public NYSE Best Quote & Trades (NYSE BQT) represented that it would not have any
Reference Room, 100 F Street NE., data feed. The text of the proposed rule unfair advantage over competing
Washington, DC 20549, on official change is available on the Exchange’s vendors with respect to obtaining data
business days between the hours of Web site at www.nyse.com, at the from NYSE, NYSE Arca and NYSE
10:00 a.m. and 3:00 p.m. Copies of the principal office of the Exchange, and at MKT.6 The NYSE represented that it
filing also will be available for would not be the exclusive distributor
the Commission’s Public Reference
inspection and copying at the principal of the aggregated and consolidated
Room.
information that comprises the NYSE
office of the Exchange. All comments
II. Self-Regulatory Organization’s BQT data feed and that it designed the
received will be posted without change;
Statement of the Purpose of, and NYSE BQT data feed so that it would
the Commission does not edit personal Statutory Basis for, the Proposed Rule not have a competitive advantage over
identifying information from Change a competing vendor with respect to the
submissions. You should submit only speed of access to those six underlying
information that you wish to make In its filing with the Commission, the
self-regulatory organization included data feeds. In recognition that NYSE
available publicly. Arca is the source of its own market
statements concerning the purpose of,
All submissions should refer to File and basis for, the proposed rule change data, NYSE Arca represents that it will
Number SR–NASDAQ–2015–138 and and discussed any comments it received continue to make available the
should be submitted on or before on the proposed rule change. The text individual underlying feeds, NYSE Arca
December 8, 2015. Trades and NYSE Arca BBO, and that
of those statements may be examined at
the source for these feeds for use by
For the Commission, by the Division of the places specified in Item IV below.
NYSE to create the NYSE BQT data feed
Trading and Markets, pursuant to delegated The Exchange has prepared summaries,
is the same as the source available to
authority.18 set forth in sections A, B, and C below,
other vendors.7
Robert W. Errett, of the most significant parts of such The Exchange notes that the proposed
Deputy Secretary. statements. change is not otherwise intended to
[FR Doc. 2015–29230 Filed 11–16–15; 8:45 am] A. Self-Regulatory Organization’s address any other issues, and the
BILLING CODE 8011–01–P Statement of the Purpose of, and Exchange is not aware of any problems
Statutory Basis for, the Proposed Rule that member organizations or others
Change would have in complying with the
SECURITIES AND EXCHANGE proposed rule change.
1. Purpose
COMMISSION 2. Statutory Basis
The NYSE Best Quotes and Trades
(‘‘NYSE BQT’’) data feed, a market data The Exchange believes that the
[Release No. 34–76402; File No. SR– proposed rule change is consistent with
NYSEARCA–2015–103]
product offered by the New York Stock
Exchange LLC (‘‘NYSE’’), provides best Section 6(b) 8 of the Act, in general, and
bid and offer (‘‘BBO’’) and last sale furthers the objectives of Section
Self-Regulatory Organizations; NYSE 6(b)(5) 9 of the Act, in particular, in that
Arca, Inc.; Notice of Filing and information for the Exchange and its
affiliates, NYSE and NYSE MKT LLC it is designed to prevent fraudulent and
Immediate Effectiveness of Proposed manipulative acts and practices, to
Rule Change Making Certain (‘‘NYSE MKT’’).4 Specifically, the NYSE
BQT data feed consists of certain data promote just and equitable principles of
Representations Relating to the NYSE trade, to foster cooperation and
Best Quote & Trades Data Feed elements from six market data feeds—
NYSE Trades, NYSE BBO, NYSE Arca coordination with persons engaged in
November 10, 2015. Trades, NYSE Arca BBO, NYSE MKT facilitating transactions in securities, to
Trades, and NYSE MKT BBO.5 remove impediments to and perfect the
Pursuant to Section 19(b)(1) 1 of the mechanism of a free and open market
Securities Exchange Act of 1934 (the 4 See Securities Exchange Act Release No. 34– and a national market system and, in
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 73553 (Nov. 6, 2014), 79 FR 67491 (Nov. 13, 2014) general, to protect investors and the
notice is hereby given that, on October (SR–NYSE–2014–40) (‘‘NYSE BQT Approval public interest, and it is not designed to
29, 2015, NYSE Arca, Inc. (the Order’’). permit unfair discrimination among
5 These data feeds are offered pursuant to
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with preexisting and effective rules and fees filed with
customers, brokers, or dealers. This
the Securities and Exchange the Securities and Exchange Commission proposal is in keeping with those
Commission (the ‘‘Commission’’) the (‘‘Commission’’). This filing does not affect those principles in that it promotes increased
proposed rule change as described in rules or the fees associated with these underlying transparency through the dissemination
data feeds or the ability for the NYSE Arca, the
Items I and II below, which Items have NYSE or NYSE MKT to amend the data feeds or fees
been prepared by the self-regulatory associated with those data feeds pursuant to FR 13293 (Mar. 26, 2009) (SR–NYSE–2009–04). For
NYSE BBO, see Securities Exchange Act Release
organization. The Commission is separate rule filings. For NYSE Arca Trades, see
No. 62181 (May 26, 2010), 75 FR 31488 (June 3,
Securities Exchange Act Release Nos. 59289 (Jan.
mstockstill on DSK4VPTVN1PROD with NOTICES
publishing this notice to solicit 23, 2009), 74 FR 5711 (Jan. 30, 2009) (SR– 2010) (SR–NYSE–2010–30). For NYSE MKT Trades
comments on the proposed rule change NYSEArca–2009–06) and 59598 (Mar. 18, 2009), 74 and NYSE MKT BBO, see Securities Exchange Act
from interested persons. FR 12919 (Mar. 25, 2009) (SR–NYSEArca–2009–05). Release No. 62187 (May 27, 2010), 75 FR 31500
(June 3, 2010) (SR–NYSEAmex–2010–35).
For NYSE Arca BBO, see Securities Exchange Act
6 See supra note 4 at 67492.
18 17
Release No. 62188 (May 27, 2010), 75 FR 31484
CFR 200.30–3(a)(12). (June 3, 2010) (SR–NYSEArca–2010–23). For NYSE
7 NYSE MKT is filing a similar proposal regarding
1 15 U.S.C. 78s(b)(1). the NYSE BQT data feed (SR–NYSEMKT–2015–92).
Trades, see Securities Exchange Act Release Nos.
2 15 U.S.C. 78a. 8 15 U.S.C. 78f(b).
59290 (Jan. 23, 2009), 74 FR 5707 (Jan. 30, 2009)
3 17 CFR 240.19b–4. (SR–NYSE–2009–05) and 59606 (Mar. 19, 2009), 74 9 15 U.S.C. 78f(b)(5).
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Document Created: 2015-12-14 14:01:28
Document Modified: 2015-12-14 14:01:28
| 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 71887 |
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