80_FR_77273 80 FR 77035 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Exchange Rules To Prescribe the Securities Traders Examination as the Qualifying Examination for Persons Associated With a Member Organization Engaged Solely in Proprietary Trading, and Amend Continuing Education Requirement Applicable to Such Members

80 FR 77035 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Exchange Rules To Prescribe the Securities Traders Examination as the Qualifying Examination for Persons Associated With a Member Organization Engaged Solely in Proprietary Trading, and Amend Continuing Education Requirement Applicable to Such Members

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 238 (December 11, 2015)

Page Range77035-77037
FR Document2015-31279

Federal Register, Volume 80 Issue 238 (Friday, December 11, 2015)
[Federal Register Volume 80, Number 238 (Friday, December 11, 2015)]
[Notices]
[Pages 77035-77037]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31279]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76580; File No. SR-NYSEMKT-2015-99]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Amending Exchange Rules 
To Prescribe the Securities Traders Examination as the Qualifying 
Examination for Persons Associated With a Member Organization Engaged 
Solely in Proprietary Trading, and Amend Continuing Education 
Requirement Applicable to Such Members

December 8, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on November 23, 2015, NYSE MKT LLC (the ``Exchange'' or 
``NYSE MKT'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Exchange rules to prescribe the 
Securities Traders examination (Series 57) (the ``Series 57 
Examination'') as the qualifying examination for persons associated 
with a member organization (``Member'') engaged solely in proprietary 
trading, and amend Exchange rules regarding continuing education 
requirement applicable to such Member. The proposed rule change is 
available on the Exchange's Web site at www.nyse.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 self-regulatory organization 
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 those 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 parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Rule 345--Equities currently states that no Member shall permit any 
natural person to perform the duties customarily performed by a 
securities lending representative or a direct supervisor of such, 
unless such person is registered with, qualified by and is acceptable 
to the Exchange. The rule further states that Members shall comply with 
NASD Rule 1031 concerning the registration and approval of registered 
representatives and their supervisors. Under the current rule, each 
associated person of a Member who is included within the definition of 
``representative'' in NASD Rule 1031 is required to appropriately 
register with the Exchange if such person is engaged in proprietary 
trading or directly supervises such activity. In order to engage in 
proprietary trading on the Exchange, an associated person must be 
registered as a General Securities Representative (Series 7) as NYSE 
MKT does not recognize the Series 56 Examination as an acceptable 
qualification standard for associated persons engaged in equities 
proprietary trading.\4\
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    \4\ While the Series 7 Examination is required for associated 
persons engaged in proprietary trading, Exchange rules do not 
require such individuals to work at a proprietary trading firm only. 
These individuals can work at any type of firm. However, they only 
may engage in proprietary trading at the firm where they are 
employed. For example, an individual engaged in proprietary trading 
at a full service firm, who is registered solely to engage in 
proprietary trading, may not act as a registered representative for 
that firm.

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[[Page 77036]]

    The Exchange proposes to amend Rule 345--Equities to recognize a 
new category of limited representative registration for a Securities 
Trader and allow such individual to register in Web CRD \5\ as a 
Securities Trader in order to engage in proprietary trading. As 
proposed, a Securities Trader would be any person engaged in the 
purchase or sale of securities or other similar instruments for the 
account of a member organization with which such person is associated, 
as an employee or otherwise, and who does not transact any business 
with the public.\6\ Under the proposed rule, a Securities Trader must 
be registered as such on Web CRD and pass an appropriate qualification 
examination as prescribed by the Exchange. With this proposed rule 
change, Members engaged solely in proprietary trading, or who supervise 
such activity, would qualify for registration by passing the Series 57 
Examination.
---------------------------------------------------------------------------

    \5\ Web CRD is the central licensing and registration system for 
the U.S. securities industry and its regulators.
    \6\ The proposed definition is similar to NYSE MKT LLC Rule 341, 
Commentary .01(c) [sic] and NYSE Arca, Inc. Rule 2.23(b)(2)(C).
---------------------------------------------------------------------------

    The Series 57 Examination is being developed by the Financial 
Industry Regulatory Authority, Inc. (``FINRA'') in consultation with 
industry and exchange representatives. The Series 57 Examination will 
be based on industry rules applicable to trading of equity securities 
and listed options contracts. The Series 57 examination will cover, 
among other things, recordkeeping and recording requirements; types and 
characteristics of securities and investments; trading practices; and 
display, execution, and trading systems.\7\ The Exchange believes that 
acceptance of the Series 57 Examination will benefit both the Exchange 
and the applicable proprietary traders affected by the proposal because 
the examination would allow an individual who wishes to transact 
business on NYSE MKT in a limited capacity to qualify by passing an 
examination tailored to that limited capacity.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 75783 (August 28, 
2015), 80 FR 53369 (September 3, 2015) (SR-FINRA-2015-017) (Order 
Approving a Proposed Rule Change to Establish the Securities Trader 
and Securities Trader Principal Registration Categories).
---------------------------------------------------------------------------

    Individuals currently engaged solely in proprietary trading, who 
currently qualify for registration by passing the Series 7 Examination 
and have registered in Web CRD as Proprietary Traders will have their 
registration converted in Web CRD on January 4, 2016 to a Securities 
Trader without having to take any additional examinations and without 
having to take any other actions. However, the registration of 
individuals who have taken the Series 7 Examination will not be 
converted to a Securities Trader if they have not registered as a 
Proprietary Trader in Web CRD by December 28, 2015. After that date, 
these individuals would be required to take the Series 57 Examination 
in order to register as Securities Traders as the Series 7 Examination 
would no longer serve as a qualifying exam to engage solely in 
proprietary trading on the Exchange. In addition, individuals 
registered as Proprietary Traders in Web CRD 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 the 
individual last registered as a Proprietary Trader and the date the 
individual registers as a Securities Trader.\8\
---------------------------------------------------------------------------

    \8\ See Rule 345A--Equities, Commentary .30.
---------------------------------------------------------------------------

    In addition, the Exchange proposes to amend Rule 345--Equities to 
create a new category of limited representative Principal--the 
Securities Trader Principal. Registration as a Securities Trader 
Principal would be restricted to individuals whose supervisory 
responsibilities are limited to Securities Traders, as defined in 
amended Supplementary Material .10 to Rule 345--Equities. As proposed, 
a supervisor of a Securities Trader must satisfy its registration 
requirements under Supplementary Material .10 to Rule 345--Equities by 
registering and qualifying as a Securities Trader Principal in Web CRD 
if (a) such supervisor's supervisory responsibilities are limited 
solely to supervising Securities Traders; (b) such supervisor is 
qualified to be so registered by passing the General Securities 
Principal Qualification Examination--Series 24; and (c) such supervisor 
is registered pursuant to Exchange Rules as a Securities Trader. Under 
the proposed rule change, a Securities Trader Principal would not be 
qualified to function in a Principal or supervisory capacity with 
responsibility over any area of business other than that involving 
proprietary trading.\9\
---------------------------------------------------------------------------

    \9\ The proposed rule is similar to NYSE MKT LLC Rule 341, 
Commentary .01(e) and NYSE Arca, Inc. Rule 2.23(b)(3)(B).
---------------------------------------------------------------------------

    The Exchange notes that in order to currently qualify as a 
Proprietary Trader Principal, an associated person must pass the Series 
7 Examination and the Series 24 Examination. Once the Series 57 
Examination becomes the qualifying exam for a Securities Trader, 
associated persons would need to pass the Series 57 Examination and the 
Series 24 Examination in order to register as a Securities Trader 
Principal. Only those individuals who are registered as such would be 
qualified to supervise a Securities Trader. Individuals registered as a 
General Securities Principal would not be qualified to supervise a 
Securities Trader, nor would a Securities Trader Principal be able to 
act as a General Securities Principal, unless the individual is 
appropriately registered as a Securities Trader Principal and a General 
Securities Principal.
    Further, registered persons are required under Rule 345A--Equities 
to comply with the Exchange's continuing education requirements. 
Specifically, under Rule 345A--Equities(a)(1), no Member may permit any 
registered person to continue to, and no registered person may continue 
to, perform duties as a registered person, unless such person has 
complied with the Exchange's continuing education requirements. The 
Exchange proposes to amend the rule to specifically require each 
registered person who is qualified solely as a Securities Trader to 
comply with the continuing education requirements appropriate for the 
Series 57.\10\
---------------------------------------------------------------------------

    \10\ Registered persons will be required to complete the S101 
Program to fulfill the Regulatory Element of their continuing 
education requirement.
---------------------------------------------------------------------------

    Within 30 days of filing the proposed rule change, the Exchange 
will issue a Regulatory Bulletin announcing the operative date of the 
rule change, which will not be sooner than January 4, 2016.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Securities Exchange Act of 1934 (``Act''),\11\ in general, 
and furthers the objectives of Section 6(c)(3)(B) \12\ of the Act, 
pursuant to which a national securities exchange prescribes standards 
of training, experience and competence for members and their associated 
persons, and Section 6(b)(5) \13\ of the Act, in particular, in that it 
is designed,

[[Page 77037]]

among other things, 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 
proposed rule change to make the Series 57 Examination the qualifying 
exam for individuals engaged solely in proprietary trading is 
appropriate because the Series 57 Examination addresses industry topics 
that establish the foundation for the regulatory and procedural 
knowledge necessary for such individuals to appropriately register 
under Exchange rules. In addition, the Series 57 Examination is 
expected to be shared by other exchanges and become the industry 
standard.\14\ Accordingly, adopting the Series 57 Examination will help 
to promote consistency in examination requirements and uniformity 
across markets.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(c)(3)(B).
    \13\ 15 U.S.C. 78f(b)(5).
    \14\ See supra, note 7.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule change does 
not impose any additional examination burdens on persons who are 
already registered. There is no obligation to take the 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 solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(6) thereunder.\16\ 
Because the 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 prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\18\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \19\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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 Comments

     Use 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-NYSEMKT-2015-99 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-NYSEMKT-2015-99. 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 Section, 100 F Street 
NE., Washington, DC 20549-1090. Copies of the filing will also be 
available for inspection and copying at the NYSE's principal office and 
on its Internet Web site at www.nyse.com. 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-NYSEMKT-2015-99 and should be submitted 
on or before January 4, 2016.
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    \20\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-31279 Filed 12-10-15; 8:45 am]
BILLING CODE 8011-01-P



                                                                              Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices                                                   77035

                                                  a registered clearing agency that does                  office of ICE Clear Europe and on ICE                 57) (the ‘‘Series 57 Examination’’) as the
                                                  not adversely affect the safeguarding of                Clear Europe’s Web site at https://                   qualifying examination for persons
                                                  securities or funds in the custody or                   www.theice.com/clear-europe/                          associated with a member organization
                                                  control of the clearing agency or for                   regulation#rule-filings.                              (‘‘Member’’) engaged solely in
                                                  which it is responsible, and does not                     All comments received will be posted                proprietary trading, and amend
                                                  significantly affect the respective rights              without change; the Commission does                   Exchange rules regarding continuing
                                                  or obligations of the clearing agency or                not edit personal identifying                         education requirement applicable to
                                                  persons using the service. At any time                  information from submissions. You                     such Member. The proposed rule
                                                  within 60 days of the filing of the                     should submit only information that                   change is available on the Exchange’s
                                                  proposed rule change, the Commission                    you wish to make available publicly. All              Web site at www.nyse.com, at the
                                                  summarily may temporarily suspend                       submissions should refer to File                      principal office of the Exchange, and at
                                                  such rule change if it appears to the                   Number SR–ICEEU–2015–019 and                          the Commission’s Public Reference
                                                  Commission that such action is                          should be submitted on or before                      Room.
                                                  necessary or appropriate in the public                  January 4, 2016.
                                                                                                                                                                II. Self-Regulatory Organization’s
                                                  interest, for the protection of investors,                For the Commission, by the Division of              Statement of the Purpose of, and
                                                  or otherwise in furtherance of the                      Trading and Markets, pursuant to delegated            Statutory Basis for, the Proposed Rule
                                                  purposes of the Act.                                    authority.13
                                                                                                                                                                Change
                                                  IV. Solicitation of Comments                            Brent J. Fields,
                                                                                                          Secretary.
                                                                                                                                                                   In its filing with the Commission, the
                                                    Interested persons are invited to                                                                           self-regulatory organization included
                                                                                                          [FR Doc. 2015–31176 Filed 12–10–15; 8:45 am]
                                                  submit written data, views, and                                                                               statements concerning the purpose of,
                                                                                                          BILLING CODE 8011–01–P
                                                  arguments concerning the foregoing,                                                                           and basis for, the proposed rule change
                                                  including whether the proposed rule                                                                           and discussed any comments it received
                                                  change is consistent with the Act.                                                                            on the proposed rule change. The text
                                                                                                          SECURITIES AND EXCHANGE
                                                  Comments may be submitted by any of                                                                           of those statements may be examined at
                                                                                                          COMMISSION
                                                  the following methods:                                                                                        the places specified in Item IV below.
                                                                                                          [Release No. 34–76580; File No. SR–                   The Exchange has prepared summaries,
                                                  Electronic Comments                                     NYSEMKT–2015–99]                                      set forth in sections A, B, and C below,
                                                    • Use the Commission’s Internet                                                                             of the most significant parts of such
                                                  comment form (http://www.sec.gov/                       Self-Regulatory Organizations; NYSE                   statements.
                                                  rules/sro.shtml) or                                     MKT LLC; Notice of Filing and
                                                    • Send an email to rule-comments@                     Immediate Effectiveness of Proposed                   A. Self-Regulatory Organization’s
                                                  sec.gov. Please include File Number SR–                 Rule Change Amending Exchange                         Statement of the Purpose of, and the
                                                  ICEEU–2015–019 on the subject line.                     Rules To Prescribe the Securities                     Statutory Basis for, the Proposed Rule
                                                                                                          Traders Examination as the Qualifying                 Change
                                                  Paper Comments                                          Examination for Persons Associated                    1. Purpose
                                                     • Send paper comments in triplicate                  With a Member Organization Engaged
                                                  to Secretary, Securities and Exchange                   Solely in Proprietary Trading, and                       Rule 345—Equities currently states
                                                  Commission, 100 F Street NE.,                           Amend Continuing Education                            that no Member shall permit any natural
                                                  Washington, DC 20549–1090.                              Requirement Applicable to Such                        person to perform the duties
                                                  All submissions should refer to File                    Members                                               customarily performed by a securities
                                                                                                                                                                lending representative or a direct
                                                  Number SR–ICEEU–2015–019. This file
                                                                                                          December 8, 2015.                                     supervisor of such, unless such person
                                                  number should be included on the
                                                                                                             Pursuant to Section 19(b)(1) 1 of the              is registered with, qualified by and is
                                                  subject line if email is used. To help the
                                                                                                          Securities Exchange Act of 1934 (the                  acceptable to the Exchange. The rule
                                                  Commission process and review your
                                                                                                          ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                further states that Members shall
                                                  comments more efficiently, please use
                                                                                                          notice is hereby given that on November               comply with NASD Rule 1031
                                                  only one method. The Commission will
                                                                                                          23, 2015, NYSE MKT LLC (the                           concerning the registration and approval
                                                  post all comments on the Commission’s
                                                                                                          ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with              of registered representatives and their
                                                  Internet Web site (http://www.sec.gov/
                                                                                                          the Securities and Exchange                           supervisors. Under the current rule,
                                                  rules/sro.shtml). Copies of the
                                                                                                          Commission (the ‘‘Commission’’) the                   each associated person of a Member
                                                  submission, all subsequent
                                                                                                          proposed rule change as described in                  who is included within the definition of
                                                  amendments, all written statements
                                                                                                          Items I, II, and III below, which Items               ‘‘representative’’ in NASD Rule 1031 is
                                                  with respect to the proposed rule
                                                                                                          have been prepared by the self-                       required to appropriately register with
                                                  change that are filed with the
                                                                                                          regulatory organization. The                          the Exchange if such person is engaged
                                                  Commission, and all written
                                                                                                          Commission is publishing this notice to               in proprietary trading or directly
                                                  communications relating to the
                                                                                                          solicit comments on the proposed rule                 supervises such activity. In order to
                                                  proposed rule change between the
                                                                                                          change from interested persons.                       engage in proprietary trading on the
                                                  Commission and any person, other than
                                                                                                                                                                Exchange, an associated person must be
                                                  those that may be withheld from the                     I. Self-Regulatory Organization’s
                                                                                                                                                                registered as a General Securities
                                                  public in accordance with the                           Statement of the Terms of Substance of
                                                                                                                                                                Representative (Series 7) as NYSE MKT
                                                  provisions of 5 U.S.C. 552, will be                     the Proposed Rule Change
                                                                                                                                                                does not recognize the Series 56
                                                  available for Web site viewing and
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                                                                             The Exchange proposes to amend                     Examination as an acceptable
                                                  printing in the Commission’s Public                     Exchange rules to prescribe the                       qualification standard for associated
                                                  Reference Room, 100 F Street NE.,                       Securities Traders examination (Series                persons engaged in equities proprietary
                                                  Washington, DC 20549, on official
                                                                                                                                                                trading.4
                                                  business days between the hours of                        13 17 CFR 200.30–3(a)(12).
                                                  10:00 a.m. and 3:00 p.m. Copies of such                   1 15 U.S.C. 78s(b)(1).                                4 While the Series 7 Examination is required for
                                                  filings will also be available for                        2 15 U.S.C. 78a.
                                                                                                                                                                associated persons engaged in proprietary trading,
                                                  inspection and copying at the principal                   3 17 CFR 240.19b–4.                                                                            Continued




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                                                  77036                       Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices

                                                     The Exchange proposes to amend                       qualify for registration by passing the               area of business other than that
                                                  Rule 345—Equities to recognize a new                    Series 7 Examination and have                         involving proprietary trading.9
                                                  category of limited representative                      registered in Web CRD as Proprietary                    The Exchange notes that in order to
                                                  registration for a Securities Trader and                Traders will have their registration                  currently qualify as a Proprietary Trader
                                                  allow such individual to register in Web                converted in Web CRD on January 4,                    Principal, an associated person must
                                                  CRD 5 as a Securities Trader in order to                2016 to a Securities Trader without                   pass the Series 7 Examination and the
                                                  engage in proprietary trading. As                       having to take any additional                         Series 24 Examination. Once the Series
                                                  proposed, a Securities Trader would be                  examinations and without having to                    57 Examination becomes the qualifying
                                                  any person engaged in the purchase or                                                                         exam for a Securities Trader, associated
                                                                                                          take any other actions. However, the
                                                  sale of securities or other similar                                                                           persons would need to pass the Series
                                                                                                          registration of individuals who have
                                                  instruments for the account of a member                                                                       57 Examination and the Series 24
                                                                                                          taken the Series 7 Examination will not               Examination in order to register as a
                                                  organization with which such person is
                                                  associated, as an employee or otherwise,                be converted to a Securities Trader if                Securities Trader Principal. Only those
                                                  and who does not transact any business                  they have not registered as a Proprietary             individuals who are registered as such
                                                  with the public.6 Under the proposed                    Trader in Web CRD by December 28,                     would be qualified to supervise a
                                                  rule, a Securities Trader must be                       2015. After that date, these individuals              Securities Trader. Individuals registered
                                                  registered as such on Web CRD and pass                  would be required to take the Series 57               as a General Securities Principal would
                                                  an appropriate qualification                            Examination in order to register as                   not be qualified to supervise a Securities
                                                  examination as prescribed by the                        Securities Traders as the Series 7                    Trader, nor would a Securities Trader
                                                  Exchange. With this proposed rule                       Examination would no longer serve as a                Principal be able to act as a General
                                                  change, Members engaged solely in                       qualifying exam to engage solely in                   Securities Principal, unless the
                                                  proprietary trading, or who supervise                   proprietary trading on the Exchange. In               individual is appropriately registered as
                                                  such activity, would qualify for                        addition, individuals registered as                   a Securities Trader Principal and a
                                                  registration by passing the Series 57                   Proprietary Traders in Web CRD prior to               General Securities Principal.
                                                  Examination.                                            the effective date of the proposed rule                 Further, registered persons are
                                                     The Series 57 Examination is being                   change will be eligible to register as                required under Rule 345A—Equities to
                                                  developed by the Financial Industry                     Securities Traders without having to                  comply with the Exchange’s continuing
                                                  Regulatory Authority, Inc. (‘‘FINRA’’) in               take any additional examinations,                     education requirements. Specifically,
                                                  consultation with industry and                          provided that no more than two years                  under Rule 345A—Equities(a)(1), no
                                                  exchange representatives. The Series 57                                                                       Member may permit any registered
                                                                                                          have passed between the date the
                                                  Examination will be based on industry                                                                         person to continue to, and no registered
                                                  rules applicable to trading of equity                   individual last registered as a
                                                                                                                                                                person may continue to, perform duties
                                                  securities and listed options contracts.                Proprietary Trader and the date the
                                                                                                                                                                as a registered person, unless such
                                                  The Series 57 examination will cover,                   individual registers as a Securities
                                                                                                                                                                person has complied with the
                                                  among other things, recordkeeping and                   Trader.8                                              Exchange’s continuing education
                                                  recording requirements; types and                          In addition, the Exchange proposes to              requirements. The Exchange proposes to
                                                  characteristics of securities and                       amend Rule 345—Equities to create a                   amend the rule to specifically require
                                                  investments; trading practices; and                     new category of limited representative                each registered person who is qualified
                                                  display, execution, and trading                         Principal—the Securities Trader                       solely as a Securities Trader to comply
                                                  systems.7 The Exchange believes that                    Principal. Registration as a Securities               with the continuing education
                                                  acceptance of the Series 57 Examination                 Trader Principal would be restricted to               requirements appropriate for the Series
                                                  will benefit both the Exchange and the                  individuals whose supervisory                         57.10
                                                  applicable proprietary traders affected                 responsibilities are limited to Securities              Within 30 days of filing the proposed
                                                  by the proposal because the                             Traders, as defined in amended                        rule change, the Exchange will issue a
                                                  examination would allow an individual                                                                         Regulatory Bulletin announcing the
                                                                                                          Supplementary Material .10 to Rule
                                                  who wishes to transact business on                                                                            operative date of the rule change, which
                                                                                                          345—Equities. As proposed, a
                                                  NYSE MKT in a limited capacity to                                                                             will not be sooner than January 4, 2016.
                                                  qualify by passing an examination                       supervisor of a Securities Trader must
                                                  tailored to that limited capacity.                      satisfy its registration requirements                 2. Statutory Basis
                                                     Individuals currently engaged solely                 under Supplementary Material .10 to                      The Exchange believes that its
                                                  in proprietary trading, who currently                   Rule 345—Equities by registering and                  proposal is consistent with Section 6(b)
                                                                                                          qualifying as a Securities Trader                     of the Securities Exchange Act of 1934
                                                  Exchange rules do not require such individuals to       Principal in Web CRD if (a) such                      (‘‘Act’’),11 in general, and furthers the
                                                  work at a proprietary trading firm only. These          supervisor’s supervisory responsibilities
                                                  individuals can work at any type of firm. However,
                                                                                                                                                                objectives of Section 6(c)(3)(B) 12 of the
                                                  they only may engage in proprietary trading at the      are limited solely to supervising                     Act, pursuant to which a national
                                                  firm where they are employed. For example, an           Securities Traders; (b) such supervisor               securities exchange prescribes standards
                                                  individual engaged in proprietary trading at a full     is qualified to be so registered by                   of training, experience and competence
                                                  service firm, who is registered solely to engage in
                                                  proprietary trading, may not act as a registered        passing the General Securities Principal              for members and their associated
                                                  representative for that firm.                           Qualification Examination—Series 24;                  persons, and Section 6(b)(5) 13 of the
                                                     5 Web CRD is the central licensing and
                                                                                                          and (c) such supervisor is registered                 Act, in particular, in that it is designed,
                                                  registration system for the U.S. securities industry
                                                  and its regulators.
                                                                                                          pursuant to Exchange Rules as a
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                                                                                                                                  9 The proposed rule is similar to NYSE MKT LLC
                                                     6 The proposed definition is similar to NYSE         Securities Trader. Under the proposed
                                                                                                                                                                Rule 341, Commentary .01(e) and NYSE Arca, Inc.
                                                  MKT LLC Rule 341, Commentary .01(c) [sic] and           rule change, a Securities Trader                      Rule 2.23(b)(3)(B).
                                                  NYSE Arca, Inc. Rule 2.23(b)(2)(C).                     Principal would not be qualified to                     10 Registered persons will be required to complete
                                                     7 See Securities Exchange Act Release No. 75783

                                                  (August 28, 2015), 80 FR 53369 (September 3, 2015)      function in a Principal or supervisory                the S101 Program to fulfill the Regulatory Element
                                                                                                          capacity with responsibility over any                 of their continuing education requirement.
                                                  (SR–FINRA–2015–017) (Order Approving a
                                                                                                                                                                  11 15 U.S.C. 78f(b).
                                                  Proposed Rule Change to Establish the Securities
                                                                                                                                                                  12 15 U.S.C. 78f(c)(3)(B).
                                                  Trader and Securities Trader Principal Registration
                                                  Categories).                                              8 See   Rule 345A—Equities, Commentary .30.           13 15 U.S.C. 78f(b)(5).




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                                                                                 Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices                                                77037

                                                  among other things, to promote just and                  Commission may designate, if                          with respect to the proposed rule
                                                  equitable principles of trade, to remove                 consistent with the protection of                     change that are filed with the
                                                  impediments to, and perfect the                          investors and the public interest, the                Commission, and all written
                                                  mechanism of a free and open market                      proposed rule change has become                       communications relating to the
                                                  and a national market system, and, in                    effective pursuant to Section 19(b)(3)(A)             proposed rule change between the
                                                  general, to protect investors and the                    of the Act and Rule 19b–4(f)(6)(iii)                  Commission and any person, other than
                                                  public interest. The Exchange believes                   thereunder.                                           those that may be withheld from the
                                                  that the proposed rule change to make                       A proposed rule change filed under                 public in accordance with the
                                                  the Series 57 Examination the qualifying                 Rule 19b–4(f)(6) 17 normally does not                 provisions of 5 U.S.C. 552, will be
                                                  exam for individuals engaged solely in                   become operative prior to 30 days after               available for Web site viewing and
                                                  proprietary trading is appropriate                       the date of the filing. However, pursuant             printing in the Commission’s Public
                                                  because the Series 57 Examination                        to Rule 19b4(f)(6)(iii),18 the Commission             Reference Section, 100 F Street NE.,
                                                  addresses industry topics that establish                 may designate a shorter time if such                  Washington, DC 20549–1090. Copies of
                                                  the foundation for the regulatory and                    action is consistent with the protection              the filing will also be available for
                                                  procedural knowledge necessary for                       of investors and the public interest.                 inspection and copying at the NYSE’s
                                                  such individuals to appropriately                           At any time within 60 days of the                  principal office and on its Internet Web
                                                  register under Exchange rules. In                        filing of such proposed rule change, the              site at www.nyse.com. All comments
                                                  addition, the Series 57 Examination is                   Commission summarily may                              received will be posted without change;
                                                  expected to be shared by other                           temporarily suspend such rule change if               the Commission does not edit personal
                                                  exchanges and become the industry                        it appears to the Commission that such                identifying information from
                                                  standard.14 Accordingly, adopting the                    action is necessary or appropriate in the             submissions. You should submit only
                                                  Series 57 Examination will help to                       public interest, for the protection of                information that you wish to make
                                                  promote consistency in examination                       investors, or otherwise in furtherance of             available publicly. All submissions
                                                  requirements and uniformity across                       the purposes of the Act. If the                       should refer to File Number SR–
                                                  markets.                                                 Commission takes such action, the                     NYSEMKT–2015–99 and should be
                                                                                                           Commission shall institute proceedings                submitted on or before January 4, 2016.
                                                  B. Self-Regulatory Organization’s                        under Section 19(b)(2)(B) 19 of the Act to
                                                  Statement on Burden on Competition                                                                               For the Commission, by the Division of
                                                                                                           determine whether the proposed rule                   Trading and Markets, pursuant to delegated
                                                    The Exchange does not believe that                     change should be approved or                          authority.20
                                                  the proposed rule change will impose                     disapproved.
                                                                                                                                                                 Robert W. Errett,
                                                  any burden on competition not
                                                  necessary or appropriate in furtherance                  IV. Solicitation of Comments                          Deputy Secretary.
                                                  of the purposes of the Act. The                            Interested persons are invited to                   [FR Doc. 2015–31279 Filed 12–10–15; 8:45 am]
                                                  proposed rule change does not impose                     submit written data, views, and                       BILLING CODE 8011–01–P
                                                  any additional examination burdens on                    arguments concerning the foregoing,
                                                  persons who are already registered.                      including whether the proposed rule
                                                  There is no obligation to take the Series                change is consistent with the Act.                    SECURITIES AND EXCHANGE
                                                  57 examination in order to continue in                   Comments may be submitted by any of                   COMMISSION
                                                  their present duties, so the proposed                    the following methods:
                                                  rule change is not expected to                           Electronic Comments                                   [Release No. 34–76575; File No. SR–CBOE–
                                                  disadvantage current registered persons                                                                        2015–101]
                                                  relative to new entrants in this regard.                   • Use the Commission’s Internet
                                                                                                           comment form (http://www.sec.gov/                     Self-Regulatory Organizations;
                                                  C. Self-Regulatory Organization’s                        rules/sro.shtml); or                                  Chicago Board Options Exchange,
                                                  Statement on Comments on the                               • Send an email to rule-comments@                   Incorporated; Notice of Withdrawal of
                                                  Proposed Rule Change Received From                       sec.gov. Please include File Number SR–               Proposed Rule Change To Amend the
                                                  Members, Participants, or Others                         NYSEMKT–2015–99 on the subject line.                  Fees Schedule
                                                    No written comments were solicited                     Paper Comments                                        December 7, 2015.
                                                  or received with respect to the proposed
                                                  rule change.                                                • Send paper comments in triplicate                   On November 2, 2015, the Chicago
                                                                                                           to Brent J. Fields, Secretary, Securities             Board Options Exchange, Incorporated
                                                  III. Date of Effectiveness of the                        and Exchange Commission, 100 F Street                 (‘‘Exchange’’) filed with the Securities
                                                  Proposed Rule Change and Timing for                      NE., Washington, DC 20549–1090.                       and Exchange Commission
                                                  Commission Action                                        All submissions should refer to File                  (‘‘Commission’’), pursuant to Section
                                                     The Exchange has filed the proposed                   Number SR–NYSEMKT–2015–99. This                       19(b)(1) of the Securities Exchange Act
                                                  rule change pursuant to Section                          file number should be included on the                 of 1934 1 and Rule 19b–4 thereunder,2 a
                                                  19(b)(3)(A)(iii) of the Act 15 and Rule                  subject line if email is used. To help the            proposed rule change to amend the
                                                  19b–4(f)(6) thereunder.16 Because the                    Commission process and review your                    Exchange’s fees schedule. The proposed
                                                  proposed rule change does not: (i)                       comments more efficiently, please use                 rule change was published for comment
                                                  Significantly affect the protection of                   only one method. The Commission will                  in the Federal Register on November 25,
                                                  investors or the public interest; (ii)                   post all comments on the Commission’s                 2015.3 The Commission received no
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                  impose any significant burden on                         Internet Web site (http://www.sec.gov/                comment letters on the proposal. On
                                                  competition; and (iii) become operative                  rules/sro.shtml). Copies of the                       December 1, 2015, the Exchange
                                                  prior to 30 days from the date on which                  submission, all subsequent
                                                  it was filed, or such shorter time as the                amendments, all written statements                      20 17 CFR 200.30–3(a)(12).
                                                                                                                                                                   1 15 U.S.C. 78s(b)(1).
                                                    14 See supra, note 7.                                    17 17 CFR 240.19b–4(f)(6).                            2 17 CFR 240.19b–4
                                                    15 15 U.S.C. 78s(b)(3)(A)(iii).                          18 17 CFR 240.19b–4(f)(6)(iii).                       3 See Securities Exchange Act Release No. 34–
                                                    16 17 CFR 240.19b–4(f)(6).                               19 15 U.S.C. 78s(b)(2)(B).                          76442 (November 16, 2015), 80 FR 72761.



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Document Created: 2018-03-02 09:13:10
Document Modified: 2018-03-02 09:13:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 77035 

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