80 FR 77061 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 6.54
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 238 (December 11, 2015)
Federal Register Volume 80, Issue 238 (December 11, 2015)
| Page Range | 77061-77063 | |
| FR Document | 2015-31177 |
[Federal Register Volume 80, Number 238 (Friday, December 11, 2015)] [Notices] [Pages 77061-77063] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-31177] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76566; File No. SR-CBOE-2015-108] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 6.54 December 7, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on November 23, 2015, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II 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 the Substance of the Proposed Rule Change The Exchange proposes to extend its program that allows transactions to take place at a price that is below $1 per option contract through January 5, 2017. The text of the proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, 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 An ``accommodation'' or ``cabinet'' trade refers to trades in listed options on the Exchange that are worthless or not actively traded. Cabinet trading is generally conducted in accordance with the Exchange Rules, except as provided in Exchange Rule 6.54, Accommodation Liquidations (Cabinet Trades), which sets forth specific procedures for engaging in cabinet trades. Rule 6.54 currently provides for cabinet transactions to occur via open outcry at a cabinet price of $1 per option contract in any options series open for trading in the Exchange, except that the Rule is not applicable to trading in option classes participating in the Penny Pilot Program. Under the procedures, bids and offers (whether opening or closing a position) at a price of $1 per option contract may be represented in the trading crowd by a Floor Broker or by a Market-Maker or provided in response to a request by a PAR Official/OBO, a Floor Broker or a Market-Maker, but must yield priority to all resting orders in the PAR Official/OBO cabinet book (which resting cabinet book orders may be closing only). So long as both the buyer and the seller yield to orders resting in the cabinet book, opening cabinet bids can trade with opening cabinet offers at $1 per option contract. The Exchange has temporarily amended the procedures through January 5, 2015 [sic] to allow transactions to take place in open outcry at a price of at least $0 but less than $1 per option contract.\3\ These lower priced transactions are traded pursuant to the same procedures applicable to $1 cabinet trades, except that (i) bids and offers for opening transactions are only permitted to accommodate closing transactions in order to limit use of the procedure to liquidations of existing positions, and (ii) the procedures are also available for trading in option classes participating in the Penny Pilot Program.\4\ The Exchange believes that allowing a price of at least $0 but less than $1 better accommodates the closing of options positions in series that are worthless or not actively traded, particularly due to market conditions which may result in a significant number of series being out-of-the-money. For example, a market participant might have a long position in a call series with a strike price of $100 and the underlying stock might now be trading at $30. In such an instance, there might not otherwise be a market for that person to close-out the position even at the $1 cabinet price [[Page 77062]] (e.g., the series might be quoted no bid).\5\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release Nos. 59188 (December 30, 2008), 74 FR 480 (January 6, 2009) (SR-CBOE-2008-133) (adopting the amended procedures on a temporary basis through January 30, 2009), 59331 (January 30, 2009), 74 FR 6333 (February 6, 2009) (extending the amended procedures on a temporary basis through May 29, 2009), 60020 (June 1, 2009), 74 FR 27220 (June 8, 2009) (SR-CBOE-2009-034) (extending the amended procedures on a temporary basis through June 1, 2010), 62192 (May 28, 2010), 75 FR 31828 (June 4, 2010) (SR-CBOE- 2010-052) (extending the amended procedures on a temporary basis through June 1, 2011); 64403 (May 4, 2011), 76 FR 27110 (May 10, 2011) (SR-CBOE-2011-048) (extending the amended procedures on a temporary basis through December 30, 2011); 65872 (December 2, 2011), 76 FR 76788 (December 8, 2011) (SR-CBOE-2011-113) (extending the amended procedures on a temporary basis through June 29, 2012) 67144 (June 6, 2012), 77 FR 35095 (June 12, 2012) (SR-CBOE-2012-053) (extending the amended procedures on a temporary basis through June 28, 2013), and 69854 (June 25, 2013), 78 FR 39424 (July 1, 2013) (SR-CBOE-2013-063); 69893 (June 28, 2013), 78 FR 40539 (July 5, 2013) (both extending the amended procedures on a temporary basis through January 5, 2014) and 71090 (December 17, 2013), 78 FR 77532 (December 23, 2013) (SR-CBOE-2013-118) (extending the amended procedures on a temporary basis through January 5, 2015), and 73974 (December 31, 2014), 80 FR 911 (January 7, 2015) (SR-CBOE-2014-093) (extending the amended procedures on a temporary basis through January 5, 2016). \4\ Currently the $1 cabinet trading procedures are limited to options classes traded in $0.05 or $0.10 standard increment. The $1 cabinet trading procedures are not available in Penny Pilot Program classes because in those classes an option series can trade in a standard increment as low as $0.01 per share (or $1.00 per option contract with a 100 share multiplier). Because the temporary procedures allow trading below $0.01 per share (or $1.00 per option contract with a 100 share multiplier), the procedures are available for all classes, including those classes participating in the Penny Pilot Program. \5\ As with other accommodation liquidations under Rule 6.54, transactions that occur for less than $1 are not be disseminated to the public on the consolidated tape. In addition, as with other accommodation liquidations under Rule 6.54, the transactions are exempt from the Consolidated Options Audit Trail (``COATS'') requirements of Exchange Rule 6.24, Required Order Information. However, the Exchange maintains quotation, order and transaction information for the transactions in the same format as the COATS data is maintained. In this regard, all transactions for less than $1 must be reported to the Exchange following the close of each business day. The rule also provides that transactions for less than $1 will be reported for clearing utilizing forms, formats and procedures established by the Exchange from time to time. In this regard, the Exchange initially intends to have clearing firms directly report the transactions to The Options Clearing Corporation (``OCC'') using OCC's position adjustment/transfer procedures. This manner of reporting transactions for clearing is similar to the procedure that CBOE currently employs for on-floor position transfer packages executed pursuant to Exchange Rule 6.49A, Transfer of Positions. --------------------------------------------------------------------------- The purpose of the instant rule change is to extend the operation of these temporary procedures through January 5, 2017, so that the procedures can continue without interruption while CBOE considers whether to seek permanent approval of the temporary procedures. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\6\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \7\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \8\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). \8\ Id. --------------------------------------------------------------------------- In particular, the Exchange believes that allowing for liquidations at a price less than $1 per option contract better facilitates the closing of options positions that are worthless or not actively trading. Further, the Exchange believes the proposal is consistent with the Act because the proposed extension is of appropriate length to allow the Exchange and the Commission to continue to assess the impact of the Exchange's authority to allow transactions to take place in open outcry at a price of at least $0 but less than $1 per option in accordance with its attendant obligations and conditions, including the process for submitting such transactions to OCC for clearing. B. Self-Regulatory Organization's Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that allowing for liquidations at a price less than $1 per option contract better facilitates the closing of options positions that are worthless or not actively trading. The Exchange believes this promotes fair and orderly markets, as well as assists the Exchange in its ability to effectively attract order flow and liquidity to its market, and ultimately benefit all CBOE Trading Permit Holders (``TPHs'') and all investors. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed rule change does not make any changes to Exchange rules, but simply extends an existing temporary program. Further, the program is available to all market participants through CBOE TPHs. The Exchange does not believe that the proposed rule change will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because, again, the proposed rule change does not make any changes to Exchange rules, but simply extends an existing temporary program. Moreover, to the extent that the program makes CBOE a more attractive marketplace, as noted above, the program is available to all market participants through CBOE TPHs. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule 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 if consistent with the protection of investors and the public interest, provided that the self-regulatory organization has given 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,\9\ the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b- 4(f)(6) thereunder.\11\ --------------------------------------------------------------------------- \9\ The Exchange has fulfilled this requirement. \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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) \12\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \12\ 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 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-CBOE-2015-108 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-CBOE-2015-108. This file [[Page 77063]] number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2015-108, and should be submitted on or before January 4, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-31177 Filed 12-10-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices 77061
communications relating to the place at a price that is below $1 per transactions to take place in open outcry
proposed rule change between the option contract through January 5, 2017. at a price of at least $0 but less than $1
Commission and any person, other than The text of the proposed rule change is per option contract.3 These lower priced
those that may be withheld from the available on the Exchange’s Web site transactions are traded pursuant to the
public in accordance with the (http://www.cboe.com/AboutCBOE/ same procedures applicable to $1
provisions of 5 U.S.C. 552, will be CBOELegalRegulatoryHome.aspx), at cabinet trades, except that (i) bids and
available for Web site viewing and the Exchange’s Office of the Secretary, offers for opening transactions are only
printing in the Commission’s Public and at the Commission’s Public permitted to accommodate closing
Reference Section, 100 F Street NE., Reference Room. transactions in order to limit use of the
Washington, DC 20549–1090. Copies of procedure to liquidations of existing
the filing will also be available for II. Self-Regulatory Organization’s positions, and (ii) the procedures are
inspection and copying at the NYSE’s Statement of the Purpose of, and also available for trading in option
principal office and on its Internet Web Statutory Basis for, the Proposed Rule classes participating in the Penny Pilot
site at www.nyse.com. All comments Change Program.4 The Exchange believes that
received will be posted without change; In its filing with the Commission, the allowing a price of at least $0 but less
the Commission does not edit personal Exchange included statements than $1 better accommodates the closing
identifying information from concerning the purpose of and basis for of options positions in series that are
submissions. You should submit only the proposed rule change and discussed worthless or not actively traded,
information that you wish to make any comments it received on the particularly due to market conditions
available publicly. All submissions proposed rule change. The text of these which may result in a significant
should refer to File Number SR– statements may be examined at the number of series being out-of-the-
NYSEMKT–2015–100 and should be places specified in Item IV below. The money. For example, a market
submitted on or before January 4, 2016. Exchange has prepared summaries, set participant might have a long position
For the Commission, by the Division of forth in sections A, B, and C below, of in a call series with a strike price of
Trading and Markets, pursuant to delegated the most significant aspects of such $100 and the underlying stock might
authority.18 statements. now be trading at $30. In such an
Robert W. Errett, instance, there might not otherwise be a
A. Self-Regulatory Organization’s market for that person to close-out the
Deputy Secretary. Statement of the Purpose of, and
[FR Doc. 2015–31278 Filed 12–10–15; 8:45 am]
position even at the $1 cabinet price
Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P Change 3 See Securities Exchange Act Release Nos. 59188
(December 30, 2008), 74 FR 480 (January 6, 2009)
1. Purpose (SR–CBOE–2008–133) (adopting the amended
SECURITIES AND EXCHANGE An ‘‘accommodation’’ or ‘‘cabinet’’ procedures on a temporary basis through January
COMMISSION 30, 2009), 59331 (January 30, 2009), 74 FR 6333
trade refers to trades in listed options on (February 6, 2009) (extending the amended
[Release No. 34–76566; File No. SR–CBOE– the Exchange that are worthless or not procedures on a temporary basis through May 29,
2015–108] actively traded. Cabinet trading is 2009), 60020 (June 1, 2009), 74 FR 27220 (June 8,
generally conducted in accordance with 2009) (SR–CBOE–2009–034) (extending the
Self-Regulatory Organizations; amended procedures on a temporary basis through
the Exchange Rules, except as provided June 1, 2010), 62192 (May 28, 2010), 75 FR 31828
Chicago Board Options Exchange, in Exchange Rule 6.54, Accommodation (June 4, 2010) (SR–CBOE–2010–052) (extending the
Incorporated; Notice of Filing and Liquidations (Cabinet Trades), which amended procedures on a temporary basis through
Immediate Effectiveness of a Proposed sets forth specific procedures for June 1, 2011); 64403 (May 4, 2011), 76 FR 27110
Rule Change To Amend Rule 6.54 (May 10, 2011) (SR–CBOE–2011–048) (extending
engaging in cabinet trades. Rule 6.54 the amended procedures on a temporary basis
December 7, 2015.
currently provides for cabinet through December 30, 2011); 65872 (December 2,
Pursuant to Section 19(b)(1) of the transactions to occur via open outcry at 2011), 76 FR 76788 (December 8, 2011) (SR–CBOE–
a cabinet price of $1 per option contract 2011–113) (extending the amended procedures on
Securities Exchange Act of 1934 (the a temporary basis through June 29, 2012) 67144
‘‘Act’’),1 and Rule 19b–4 thereunder,2 in any options series open for trading in (June 6, 2012), 77 FR 35095 (June 12, 2012) (SR–
notice is hereby given that on November the Exchange, except that the Rule is not CBOE–2012–053) (extending the amended
23, 2015, Chicago Board Options applicable to trading in option classes procedures on a temporary basis through June 28,
participating in the Penny Pilot 2013), and 69854 (June 25, 2013), 78 FR 39424 (July
Exchange, Incorporated (the ‘‘Exchange’’ 1, 2013) (SR–CBOE–2013–063); 69893 (June 28,
or ‘‘CBOE’’) filed with the Securities Program. Under the procedures, bids 2013), 78 FR 40539 (July 5, 2013) (both extending
and Exchange Commission (the and offers (whether opening or closing the amended procedures on a temporary basis
‘‘Commission’’) the proposed rule a position) at a price of $1 per option through January 5, 2014) and 71090 (December 17,
contract may be represented in the 2013), 78 FR 77532 (December 23, 2013) (SR–
change as described in Items I and II CBOE–2013–118) (extending the amended
below, which Items have been prepared trading crowd by a Floor Broker or by procedures on a temporary basis through January 5,
by the Exchange. The Commission is a Market-Maker or provided in response 2015), and 73974 (December 31, 2014), 80 FR 911
publishing this notice to solicit to a request by a PAR Official/OBO, a (January 7, 2015) (SR–CBOE–2014–093) (extending
Floor Broker or a Market-Maker, but the amended procedures on a temporary basis
comments on the proposed rule change through January 5, 2016).
from interested persons. must yield priority to all resting orders 4 Currently the $1 cabinet trading procedures are
in the PAR Official/OBO cabinet book limited to options classes traded in $0.05 or $0.10
I. Self-Regulatory Organization’s (which resting cabinet book orders may standard increment. The $1 cabinet trading
Statement of the Terms of the Substance be closing only). So long as both the procedures are not available in Penny Pilot Program
jstallworth on DSK7TPTVN1PROD with NOTICES
of the Proposed Rule Change classes because in those classes an option series can
buyer and the seller yield to orders trade in a standard increment as low as $0.01 per
The Exchange proposes to extend its resting in the cabinet book, opening share (or $1.00 per option contract with a 100 share
program that allows transactions to take cabinet bids can trade with opening multiplier). Because the temporary procedures
cabinet offers at $1 per option contract. allow trading below $0.01 per share (or $1.00 per
option contract with a 100 share multiplier), the
18 17 CFR 200.30–3(a)(12). The Exchange has temporarily procedures are available for all classes, including
1 15 U.S.C. 78s(b)(1). amended the procedures through those classes participating in the Penny Pilot
2 17 CFR 240.19b–4. January 5, 2015 [sic] to allow Program.
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![Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices 77063
number should be included on the November 24, 2015, NYSE Arca, Inc. of the Proprietary Trader Qualification
subject line if email is used. To help the (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed Examination (‘‘Series 56 Examination’’)
Commission process and review your with the Securities and Exchange is required in order to register as a
comments more efficiently, please use Commission (the ‘‘Commission’’) the Market Maker, a MMAT, or a Floor
only one method. The Commission will proposed rule change as described in Broker.4 In addition, individuals
post all comments on the Commission’s Items I, II, and III below, which Items currently engaged solely in proprietary
Internet Web site (http://www.sec.gov/ have been prepared by the self- trading, who are not required to register
rules/sro.shtml). Copies of the regulatory organization. The as Market Makers, MMATs or Floor
submission, all subsequent Commission is publishing this notice to Brokers, may qualify for registration by
amendments, all written statements solicit comments on the proposed rule successful completion of the Series 56
with respect to the proposed rule change from interested persons. Examination or the General Securities
change that are filed with the Representative Qualification
Commission, and all written I. Self-Regulatory Organization’s Examination (‘‘Series 7 Examination’’).5
communications relating to the Statement of the Terms of Substance of The Exchange proposes to change the
proposed rule change between the the Proposed Rule Change prescribed examination for Market
Commission and any person, other than The Exchange proposes to amend Makers, MMATs, and Floor Brokers
those that may be withheld from the NYSE Arca Rule 2.23 to (1) prescribe the from the Series 56 Examination to the
public in accordance with the Securities Traders examination (Series Series 57 Examination and also
provisions of 5 U.S.C. 552, will be 57) (the ‘‘Series 57 Examination’’) as the proposes to replace the Series 56
available for Web site viewing and qualifying examination for registered Examination with the Series 57
printing in the Commission’s Public Market Makers, Market Maker Examination for individuals engaged
Reference Room, 100 F Street NE., Authorized Traders (‘‘MMATs’’), Floor solely in proprietary trading. With this
Washington, DC 20549 on official Brokers and Securities Traders, (2) proposed rule change, Market Makers,
business days between the hours of eliminate reference to the S501Program MMATs, Floor Brokers and individuals
10:00 a.m. and 3:00 p.m. Copies of such as a continuing education requirement, engaged solely in proprietary trading
filing also will be available for and (3) rename the category will qualify for registration by passing
inspection and copying at the principal ‘‘Proprietary Trader’’ as ‘‘Securities the Series 57 Examination.
office of the Exchange. All comments Trader’’ in Exchange rules without The Series 57 Examination is being
received will be posted without change; making any substantive change to the developed by the Financial Industry
the Commission does not edit personal definition of such term. The proposed Regulatory Authority, Inc. (‘‘FINRA’’) in
identifying information from rule change is available on the consultation with industry and
submissions. You should submit only Exchange’s Web site at www.nyse.com, exchange representatives. The Series 57
information that you wish to make at the principal office of the Exchange, Examination will be based on the
available publicly. All submissions and at the Commission’s Public current job functions of securities
should refer to File Number SR–CBOE– Reference Room. traders and will include elements of the
2015–108, and should be submitted on Series 55 Equity Trader Qualification
or before January 4, 2016. II. Self-Regulatory Organization’s Examination (which is required to
Statement of the Purpose of, and engage in over-the-counter securities
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Statutory Basis for, the Proposed Rule trading) and the current Series 56
authority.13 Change Registered Proprietary Traders
Brent J. Fields, In its filing with the Commission, the Examination (which is required for
Secretary. self-regulatory organization included associated persons engaged in
[FR Doc. 2015–31177 Filed 12–10–15; 8:45 am] statements concerning the purpose of, proprietary trading).6 The Series 57
BILLING CODE 8011–01–P and basis for, the proposed rule change Examination will be based on industry
and discussed any comments it received rules applicable to trading of equity
on the proposed rule change. The text securities and listed options contracts.
SECURITIES AND EXCHANGE of those statements may be examined at The Series 57 Examination will cover,
COMMISSION the places specified in Item IV below. among other things, recordkeeping and
The Exchange has prepared summaries,
[Release No. 34–76577; File No. SR– 4 Under the current rule, Market Makers, MMATs
NYSEARCA–2015–116] set forth in sections A, B, and C below,
and Floor Brokers are also required to successfully
of the most significant parts of such complete an orientation program for the prescribed
Self-Regulatory Organizations; NYSE statements. examination.
Arca, Inc.; Notice of Filing and A. Self-Regulatory Organization’s
5 Currently, individuals engaged solely in
Immediate Effectiveness of Proposed proprietary trading can alternatively take the Series
Statement of the Purpose of, and the 7 Examination as a qualifying exam. After
Rule Change Amending NYSE Arca Statutory Basis for, the Proposed Rule implementation of the Series 57 Examination, an
Rule 2.23 To Establish the Securities Change individual engaged solely in proprietary trading
Trader and Securities Trader Principal will be required to take the Series 57 Examination
Registration Categories 1. Purpose as the Series 7 Examination would no longer serve
as a qualifying exam to engage solely in proprietary
December 8, 2015. The Exchange proposes to amend trading.
Pursuant to Section 19(b)(1) 1 of the NYSE Arca Rule 2.23 to prescribe the 6 While the Series 56 Examination is required for
Series 57 Examination as the qualifying associated persons engaged in proprietary trading,
jstallworth on DSK7TPTVN1PROD with NOTICES
Securities Exchange Act of 1934 (the Exchange rules do not require such individuals to
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 examination for registered Market work at a proprietary trading firm only. These
notice is hereby given that, on Makers, MMATs, Floor Brokers and individuals can work at any type of firm. However,
Securities Traders and eliminate they may only engage in proprietary trading at the
13 17 reference to the S501 Program as a firm where they are employed. For example, an
CFR 200.30–3(a)(12). individual engaged in proprietary trading at a full
1 15 U.S.C.78s(b)(1). continuing education requirement. service firm, who is registered solely to engage in
2 15 U.S.C. 78a. NYSE Arca Rule 2.23 currently proprietary trading, may not act as a registered
3 17 CFR 240.19b–4. specifies that the successful completion representative for that firm.
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Document Created: 2018-03-02 09:13:03
Document Modified: 2018-03-02 09:13:03
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 77061 |
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