80_FR_79634 80 FR 79390 - Self-Regulatory Organizations; National Futures Association; Notice of Filing and Immediate Effectiveness of Proposed Change to the Interpretive Notice to NFA Compliance Rules 2-7 and 2-24 and Registration Rule 401: Proficiency Requirements for SFPs

80 FR 79390 - Self-Regulatory Organizations; National Futures Association; Notice of Filing and Immediate Effectiveness of Proposed Change to the Interpretive Notice to NFA Compliance Rules 2-7 and 2-24 and Registration Rule 401: Proficiency Requirements for SFPs

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 244 (December 21, 2015)

Page Range79390-79392
FR Document2015-31931

Federal Register, Volume 80 Issue 244 (Monday, December 21, 2015)
[Federal Register Volume 80, Number 244 (Monday, December 21, 2015)]
[Notices]
[Pages 79390-79392]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31931]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76644; File No. SR-NFA-2015-01]


Self-Regulatory Organizations; National Futures Association; 
Notice of Filing and Immediate Effectiveness of Proposed Change to the 
Interpretive Notice to NFA Compliance Rules 2-7 and 2-24 and 
Registration Rule 401: Proficiency Requirements for SFPs

December 15, 2015.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Exchange Act''),\1\ and Rule 19b-7 under the Exchange Act,\2\ notice 
is hereby given that on December 3, 2015, National Futures Association 
(``NFA'') filed with the Securities and Exchange Commission (``SEC'' or 
``Commission'') the proposed rule change described in Items I, II, and 
III below, which Items have been prepared by NFA. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons. NFA also filed this proposed rule change on 
December 3, 2015 with the Commodity Futures Trading Commission 
(``CFTC'').
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
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    NFA, on December 3, 2015, requested that the CFTC make a 
determination that review of the proposed rule change of NFA is not 
necessary.
    The CFTC has not yet made such a determination.

[[Page 79391]]

I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The amendments to the Interpretive Notice entitled ``NFA Compliance 
Rules 2-7 and 2-24 and Registration Rule 401: Proficiency Requirements 
for Security Futures Products'' (``Notice'') make permanent the 
provision permitting registrants to qualify to engage in securities 
futures activities by completing a training program.
    The text of the Interpretive Notice is available on NFA's Web site 
at www.nfa.futures.org, the Commission's Web site at www.sec.gov, the 
self-regulatory organization's office, 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, NFA 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. NFA 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
    Section 15A(k) of the Exchange Act \3\ makes NFA a national 
securities association for the limited purpose of regulating the 
activities of NFA Members (``Members'') who are registered as brokers 
or dealers under Section 15(b)(11) of the Exchange Act.\4\ NFA's Notice 
entitled: ``NFA Compliance Rules 2-7 and 2-24 and Registration Rule 
401: Proficiency Requirements for Security Futures Products'' applies 
to all Members who meet the criteria in the Interpretive Notice and 
could apply to Members registered under Section 15(b)(11) of the 
Exchange Act.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78o-3(k).
    \4\ 15 U.S.C. 78o(b)(11).
---------------------------------------------------------------------------

    The Commodity Futures Modernization Act of 2000 amended the 
Securities Exchange Act of 1934 to require NFA to ``have rules that 
ensure that members and natural persons associated with members meet 
such standards of training, experience and competence necessary to 
effect transactions in security futures products and are tested for 
their knowledge of securities and securities futures products.'' In 
2001, NFA and FINRA (then NASD) adopted temporary relief allowing 
registrants to qualify to engage in security futures activities by 
completing a training program rather than taking a proficiency exam, 
which NFA codified in the Notice. That relief has been extended four 
times and is currently set to expire on December 31, 2015.
    NFA and FINRA proposed the four prior extensions, and the CFTC and 
SEC agreed to them, because of the relatively low trading volume in 
security futures products (``SFP'') and the relatively few registrants 
engaging in security futures activities. These characteristics made the 
imposition of a qualifications exam an inefficient option, and the same 
reasons are equally compelling today.
    In 2002 NFA, FINRA and the Institute for Financial Markets 
partnered together to develop a free web-based training program 
consisting of a series of modules intended to satisfy the training 
requirement (``SRO Training Modules''). From 2002 through May 2015, 
15,216 individuals have completed the SRO Training Modules. Of this 
number, 10,108 individuals are registered with FINRA (including joint 
registrants) and 5,108 individuals are registered only with the CFTC. 
Most of these individuals took the SRO Training Modules in the first 
couple of years after SFPs began trading, and traffic has decreased 
since then. In 2014, only 180 registered individuals completed the SRO 
Training Modules (162 CFTC-only registrants). This compares with the 
approximately 4,000 people who took the Series 3 exam last year.
    Additionally, SFP volume is low. In 2014, U.S. futures exchanges 
traded approximately 3.9 billion contracts, while SFP volume was just 
over 8 million--approximately 0.21% of the total. Given the limited 
interest in these products, NFA believes that implementing a testing 
requirement does not appear to be the most practical solution at this 
time.
    Given the continued low number of registrants engaging in 
securities futures activities and the low SFP volume, NFA's Board of 
Directors at its August 20, 2015 meeting authorized NFA's Executive 
Committee to approve amendments to NFA's Interpretive Notice regarding 
proficiency requirements for SFPs to make permanent the provision 
permitting registrants to satisfy their proficiency requirement through 
training and eliminating the sunset provision. NFA's Executive 
Committee, as authorized by the Board of Directors, approved the 
amendments on October 15, 2015. NFA's Board of Directors ratified the 
Executive Committee's action at it November 19, 2015 meeting. The 
amendments also emphasize that the training must be completed before 
any individual registrant engages in activities involving SFPs. NFA, in 
coordination with FINRA, will continue to monitor the security futures 
volume and the number of persons taking the SRO Training modules, as 
well as any disciplinary matters involving SFPs, in considering whether 
a proficiency test should be developed at a later date.
    Amendments to the Interpretive Notice regarding NFA Compliance 
Rules 2-7 and 2-24 and Registration Rule 401: Proficiency Requirements 
for Security Futures Products were previously filed with the SEC in SR-
NFA-2002-04, Exchange Act Release No. 34-46502 (Sep. 16, 2002), 67 FR 
59587 (Sep. 23, 2002); SR-NFA-2003-03, Exchange Act Release No. 34-
47825 (May 9, 2003), 68 FR 27128 (Mar. 19, 2002); SR-NFA-2003-04, 
Exchange Act Release No. 34-49054 (Jan. 12, 2004), 69 FR 2806, (Jan. 
20, 2004); SR-NFA-2007-07, Exchange Act Release 34-57142 (Jan. 14, 
2008), 73 FR 3502 (Jan. 18, 2008); SR-NFA-2009-02, Exchange Act Release 
34-61284 (Jan. 4, 2010), 75 FR 1431 (Jan. 11, 2010) and SR-NFA-2014-01, 
Exchange Act Release No. 34-71976 (April 21, 2014), 79 FR 23028 (April 
25, 2014).
2. Statutory Basis
    The rule change is authorized by, and consistent with, Section 
15A(k)(2)(D) of the Exchange Act.\5\ That Section requires NFA to 
``have rules that ensure that members and natural persons associated 
with members meet such standards of training, experience, and 
competence necessary to effect transactions in SFPs and are tested for 
their knowledge of securities and securities futures products.'' 
Although the proposal makes permanent the relief from having to take an 
exam to engage in securities futures activities, the proposal still 
requires individual registrants to complete training before entering 
into any activities.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78o-3(k)(2)(D).
---------------------------------------------------------------------------

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

    The proposed rule change will have little or no impact on 
competition. The proposed Interpretive Notice does not impose new 
requirements on Members, but rather makes permanent the provision 
permitting registrants to qualify to engage in security futures

[[Page 79392]]

activities by completing a training program.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    NFA did not publish the rule change to the membership for comment. 
NFA did not receive comment letters concerning the rule change.

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

    The proposed rule change is not effective because the CFTC has not 
yet determined that review of the proposed rule change is not 
necessary.
    At any time within 60 days of the date of effectiveness of the 
proposed rule change, the Commission, after consultation with the CFTC, 
may summarily temporarily suspend the proposed rule change and require 
that the proposed rule change be refiled in accordance with the 
provisions of Section 19(b)(1) of the Exchange Act.

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-NFA-2015-01 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-NFA-2015-01. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
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 NFA. 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-NFA-2015-01, and should be 
submitted on or before January 11, 2016.
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-31931 Filed 12-18-15; 8:45 am]
BILLING CODE 8011-01-P



                                                  79390                      Federal Register / Vol. 80, No. 244 / Monday, December 21, 2015 / Notices

                                                  Qualifying Participants will be                         III. Date of Effectiveness of the                        Washington, DC 20549 on official
                                                  uniformly paid a $0.48 per contract                     Proposed Rule Change and Timing for                      business days between the hours of
                                                  rebate, provided the requirements are                   Commission Action                                        10:00 a.m. and 3:00 p.m. Copies of the
                                                  met for the time period from December                      The foregoing rule change has become                  filing also will be available for
                                                  2, 2015 through December 31, 2015.                      effective pursuant to Section                            inspection and copying at the principal
                                                                                                          19(b)(3)(A)(ii) of the Act.21                            offices of the Exchange. All comments
                                                  B. Self-Regulatory Organization’s                                                                                received will be posted without change;
                                                  Statement on Burden on Competition                         At any time within 60 days of the
                                                                                                          filing of the proposed rule change, the                  the Commission does not edit personal
                                                    NASDAQ does not believe that the                      Commission summarily may                                 identifying information from
                                                  proposed rule change will impose any                    temporarily suspend such rule change if                  submissions. You should submit only
                                                  burden on competition not necessary or                  it appears to the Commission that such                   information that you wish to make
                                                  appropriate in furtherance of the                       action is: (i) Necessary or appropriate in               available publicly. All submissions
                                                  purposes of the Act.                                    the public interest; (ii) for the protection             should refer to File Number SR–
                                                                                                          of investors; or (iii) otherwise in                      NASDAQ–2015–149, and should be
                                                  Customer and Professional Penny Pilot                   furtherance of the purposes of the Act.                  submitted on or before January 11, 2016.
                                                  Options Rebates To Add Liquidity                        If the Commission takes such action, the                   For the Commission, by the Division of
                                                  Tier 8 of the Customer and Professional                 Commission shall institute proceedings                   Trading and Markets, pursuant to delegated
                                                  Penny Pilot Options Rebates To Add                      to determine whether the proposed rule                   authority.22
                                                  Liquidity                                               should be approved or disapproved.                       Robert W. Errett,
                                                                                                          IV. Solicitation of Comments                             Deputy Secretary.
                                                     The Exchange’s proposal to amend
                                                                                                            Interested persons are invited to                      [FR Doc. 2015–31922 Filed 12–18–15; 8:45 am]
                                                  Tier 8 of the Customer and Professional
                                                  Penny Pilot Options Rebate to Add                       submit written data, views, and                          BILLING CODE 8011–01–P

                                                  Liquidity to remove the requirement to                  arguments concerning the foregoing,
                                                  qualify for the QMM Program to earn                     including whether the proposed rule
                                                                                                          change is consistent with the Act.                       SECURITIES AND EXCHANGE
                                                  the Tier 8 rebate does not impose an                                                                             COMMISSION
                                                                                                          Comments may be submitted by any of
                                                  undue burden on intra-market
                                                                                                          the following methods:
                                                  competition because all Participants are
                                                                                                          Electronic Comments                                      [Release No. 34–76644; File No. SR–NFA–
                                                  eligible to qualify for the Tier 8
                                                                                                                                                                   2015–01]
                                                  Customer or Professional Rebate to Add                    • Use the Commission’s Internet
                                                  Liquidity, provided they meet the                       comment form (http://www.sec.gov/                        Self-Regulatory Organizations;
                                                  qualifications. Further, the Tier 8 rebate              rules/sro.shtml); or                                     National Futures Association; Notice
                                                  will be uniformly paid to those                           • Send an email to rule-comments@                      of Filing and Immediate Effectiveness
                                                  Participants that are eligible for the                  sec.gov. Please include File Number SR–                  of Proposed Change to the Interpretive
                                                  rebate. Moreover, the changes have the                  NASDAQ–2015–149 on the subject line.                     Notice to NFA Compliance Rules 2–7
                                                  potential to make the applicable                                                                                 and 2–24 and Registration Rule 401:
                                                                                                          Paper Comments
                                                  incentives available to a wider range of                                                                         Proficiency Requirements for SFPs
                                                  market participants with the removal of                    • Send paper comments in triplicate
                                                  the QMM Program.                                        to Secretary, Securities and Exchange                    December 15, 2015.
                                                                                                          Commission, 100 F Street NE.,                               Pursuant to Section 19(b)(7) of the
                                                     Furthermore, continuing to
                                                                                                          Washington, DC 20549–1090.                               Securities Exchange Act of 1934
                                                  incentivize Participants to add not only
                                                  options, but equities volume does not                   All submissions should refer to File                     (‘‘Exchange Act’’),1 and Rule 19b–7
                                                  impose an undue burden on intra-                        Number SR–NASDAQ–2015–149. This                          under the Exchange Act,2 notice is
                                                                                                          file number should be included on the                    hereby given that on December 3, 2015,
                                                  market competition because cash
                                                                                                          subject line if email is used. To help the               National Futures Association (‘‘NFA’’)
                                                  equities and options markets are linked,
                                                                                                          Commission process and review your                       filed with the Securities and Exchange
                                                  with liquidity and trading patterns on                  comments more efficiently, please use
                                                  one market affecting those on the other,                                                                         Commission (‘‘SEC’’ or ‘‘Commission’’)
                                                                                                          only one method. The Commission will                     the proposed rule change described in
                                                  the Exchange believes that pricing                      post all comments on the Commission’s
                                                  incentives that encourage market                                                                                 Items I, II, and III below, which Items
                                                                                                          Internet Web site (http://www.sec.gov/                   have been prepared by NFA. The
                                                  participant activity in NOM also                        rules/sro.shtml). Copies of the                          Commission is publishing this notice to
                                                  support price discovery and liquidity                   submission, all subsequent                               solicit comments on the proposed rule
                                                  provision in the Nasdaq Market Center.                  amendments, all written statements                       change from interested persons. NFA
                                                  Further, the pricing incentives require                 with respect to the proposed rule                        also filed this proposed rule change on
                                                  significant levels of liquidity provision,              change that are filed with the                           December 3, 2015 with the Commodity
                                                  which benefits all market participants                  Commission, and all written                              Futures Trading Commission (‘‘CFTC’’).
                                                  on NOM and the Nasdaq Market Center.                    communications relating to the
                                                                                                          proposed rule change between the                            NFA, on December 3, 2015, requested
                                                  C. Self-Regulatory Organization’s                                                                                that the CFTC make a determination
                                                                                                          Commission and any person, other than
                                                  Statement on Comments on the                                                                                     that review of the proposed rule change
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                                                                          those that may be withheld from the
                                                  Proposed Rule Change Received From                      public in accordance with the                            of NFA is not necessary.
                                                  Members, Participants, or Others                        provisions of 5 U.S.C. 552, will be                         The CFTC has not yet made such a
                                                    No written comments were either                       available for Web site viewing and                       determination.
                                                  solicited or received.                                  printing in the Commission’s Public
                                                                                                          Reference Room, 100 F Street NE.,                          22 17 CFR 200.30–3(a)(12).
                                                                                                                                                                     1 15 U.S.C. 78s(b)(7).
                                                                                                            21 15   U.S.C. 78s(b)(3)(A)(ii).                         2 17 CFR 240.19b–7.




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                                                                                Federal Register / Vol. 80, No. 244 / Monday, December 21, 2015 / Notices                                           79391

                                                  I. Self-Regulatory Organization’s                         transactions in security futures products             the Board of Directors, approved the
                                                  Statement of the Terms of the Substance                   and are tested for their knowledge of                 amendments on October 15, 2015.
                                                  of the Proposed Rule Change                               securities and securities futures                     NFA’s Board of Directors ratified the
                                                     The amendments to the Interpretive                     products.’’ In 2001, NFA and FINRA                    Executive Committee’s action at it
                                                  Notice entitled ‘‘NFA Compliance Rules                    (then NASD) adopted temporary relief                  November 19, 2015 meeting. The
                                                  2–7 and 2–24 and Registration Rule 401:                   allowing registrants to qualify to engage             amendments also emphasize that the
                                                  Proficiency Requirements for Security                     in security futures activities by                     training must be completed before any
                                                  Futures Products’’ (‘‘Notice’’) make                      completing a training program rather                  individual registrant engages in
                                                  permanent the provision permitting                        than taking a proficiency exam, which                 activities involving SFPs. NFA, in
                                                  registrants to qualify to engage in                       NFA codified in the Notice. That relief               coordination with FINRA, will continue
                                                  securities futures activities by                          has been extended four times and is                   to monitor the security futures volume
                                                  completing a training program.                            currently set to expire on December 31,               and the number of persons taking the
                                                     The text of the Interpretive Notice is                 2015.                                                 SRO Training modules, as well as any
                                                                                                               NFA and FINRA proposed the four                    disciplinary matters involving SFPs, in
                                                  available on NFA’s Web site at
                                                                                                            prior extensions, and the CFTC and SEC                considering whether a proficiency test
                                                  www.nfa.futures.org, the Commission’s
                                                                                                            agreed to them, because of the relatively             should be developed at a later date.
                                                  Web site at www.sec.gov, the self-
                                                                                                            low trading volume in security futures                   Amendments to the Interpretive
                                                  regulatory organization’s office, and at
                                                                                                            products (‘‘SFP’’) and the relatively few             Notice regarding NFA Compliance Rules
                                                  the Commission’s Public Reference
                                                                                                            registrants engaging in security futures              2–7 and 2–24 and Registration Rule 401:
                                                  Room.
                                                                                                            activities. These characteristics made                Proficiency Requirements for Security
                                                  II. Self-Regulatory Organization’s                        the imposition of a qualifications exam               Futures Products were previously filed
                                                  Statement of the Purpose of, and                          an inefficient option, and the same                   with the SEC in SR–NFA–2002–04,
                                                  Statutory Basis for, the Proposed Rule                    reasons are equally compelling today.                 Exchange Act Release No. 34–46502
                                                  Change                                                       In 2002 NFA, FINRA and the Institute
                                                                                                                                                                  (Sep. 16, 2002), 67 FR 59587 (Sep. 23,
                                                                                                            for Financial Markets partnered together
                                                     In its filing with the Commission,                                                                           2002); SR–NFA–2003–03, Exchange Act
                                                                                                            to develop a free web-based training
                                                  NFA included statements concerning                                                                              Release No. 34–47825 (May 9, 2003), 68
                                                                                                            program consisting of a series of
                                                  the purpose of and basis for the                                                                                FR 27128 (Mar. 19, 2002); SR–NFA–
                                                                                                            modules intended to satisfy the training
                                                  proposed rule change and discussed any                                                                          2003–04, Exchange Act Release No. 34–
                                                                                                            requirement (‘‘SRO Training Modules’’).
                                                  comments it received on the proposed                                                                            49054 (Jan. 12, 2004), 69 FR 2806, (Jan.
                                                                                                            From 2002 through May 2015, 15,216
                                                  rule change. The text of these statements                                                                       20, 2004); SR–NFA–2007–07, Exchange
                                                                                                            individuals have completed the SRO
                                                  may be examined at the places specified                                                                         Act Release 34–57142 (Jan. 14, 2008), 73
                                                                                                            Training Modules. Of this number,
                                                  in Item IV below. NFA has prepared                        10,108 individuals are registered with                FR 3502 (Jan. 18, 2008); SR–NFA–2009–
                                                  summaries, set forth in sections A, B,                    FINRA (including joint registrants) and               02, Exchange Act Release 34–61284
                                                  and C below, of the most significant                      5,108 individuals are registered only                 (Jan. 4, 2010), 75 FR 1431 (Jan. 11, 2010)
                                                  aspects of such statements.                               with the CFTC. Most of these                          and SR–NFA–2014–01, Exchange Act
                                                                                                            individuals took the SRO Training                     Release No. 34–71976 (April 21, 2014),
                                                  A. Self-Regulatory Organization’s
                                                                                                            Modules in the first couple of years after            79 FR 23028 (April 25, 2014).
                                                  Statement of the Purpose of, and
                                                  Statutory Basis for, the Proposed Rule                    SFPs began trading, and traffic has                   2. Statutory Basis
                                                  Change                                                    decreased since then. In 2014, only 180
                                                                                                            registered individuals completed the                     The rule change is authorized by, and
                                                  1. Purpose                                                SRO Training Modules (162 CFTC-only                   consistent with, Section 15A(k)(2)(D) of
                                                     Section 15A(k) of the Exchange Act 3                   registrants). This compares with the                  the Exchange Act.5 That Section
                                                  makes NFA a national securities                           approximately 4,000 people who took                   requires NFA to ‘‘have rules that ensure
                                                  association for the limited purpose of                    the Series 3 exam last year.                          that members and natural persons
                                                  regulating the activities of NFA                             Additionally, SFP volume is low. In                associated with members meet such
                                                  Members (‘‘Members’’) who are                             2014, U.S. futures exchanges traded                   standards of training, experience, and
                                                  registered as brokers or dealers under                    approximately 3.9 billion contracts,                  competence necessary to effect
                                                  Section 15(b)(11) of the Exchange Act.4                   while SFP volume was just over 8                      transactions in SFPs and are tested for
                                                  NFA’s Notice entitled: ‘‘NFA                              million—approximately 0.21% of the                    their knowledge of securities and
                                                  Compliance Rules 2–7 and 2–24 and                         total. Given the limited interest in these            securities futures products.’’ Although
                                                  Registration Rule 401: Proficiency                        products, NFA believes that                           the proposal makes permanent the relief
                                                  Requirements for Security Futures                         implementing a testing requirement                    from having to take an exam to engage
                                                  Products’’ applies to all Members who                     does not appear to be the most practical              in securities futures activities, the
                                                  meet the criteria in the Interpretive                     solution at this time.                                proposal still requires individual
                                                  Notice and could apply to Members                            Given the continued low number of                  registrants to complete training before
                                                  registered under Section 15(b)(11) of the                 registrants engaging in securities futures            entering into any activities.
                                                  Exchange Act.                                             activities and the low SFP volume,                    B. Self-Regulatory Organization’s
                                                     The Commodity Futures                                  NFA’s Board of Directors at its August                Statement on Burden on Competition
                                                  Modernization Act of 2000 amended the                     20, 2015 meeting authorized NFA’s
                                                  Securities Exchange Act of 1934 to                        Executive Committee to approve                           The proposed rule change will have
                                                                                                                                                                  little or no impact on competition. The
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  require NFA to ‘‘have rules that ensure                   amendments to NFA’s Interpretive
                                                  that members and natural persons                          Notice regarding proficiency                          proposed Interpretive Notice does not
                                                  associated with members meet such                         requirements for SFPs to make                         impose new requirements on Members,
                                                  standards of training, experience and                     permanent the provision permitting                    but rather makes permanent the
                                                  competence necessary to effect                            registrants to satisfy their proficiency              provision permitting registrants to
                                                                                                            requirement through training and                      qualify to engage in security futures
                                                    3 15   U.S.C. 78o–3(k).                                 eliminating the sunset provision. NFA’s
                                                    4 15   U.S.C. 78o(b)(11).                               Executive Committee, as authorized by                   5 15   U.S.C. 78o–3(k)(2)(D).



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                                                  79392                      Federal Register / Vol. 80, No. 244 / Monday, December 21, 2015 / Notices

                                                  activities by completing a training                     those that may be withheld from the                   proceedings to determine whether to
                                                  program.                                                public in accordance with the                         disapprove the proposed rule change.4
                                                                                                          provisions of 5 U.S.C. 552, will be                   The Commission received no comments
                                                  C. Self-Regulatory Organization’s
                                                                                                          available for Web site viewing and                    on the proposal. This order approves the
                                                  Statement on Comments on the
                                                                                                          printing in the Commission’s Public                   proposed rule change.
                                                  Proposed Rule Change Received From
                                                                                                          Reference Room, 100 F Street NE.,                     II. The Exchange’s Description of the
                                                  Members, Participants, or Others
                                                                                                          Washington, DC 20549 on official                      Proposal
                                                    NFA did not publish the rule change                   business days between the hours of
                                                  to the membership for comment. NFA                      10:00 a.m. and 3:00 p.m. Copies of such                  The Commission approved listing and
                                                  did not receive comment letters                         filing also will be available for                     trading on the Exchange of shares
                                                  concerning the rule change.                             inspection and copying at the principal               (‘‘Shares’’) of the Fund under NYSE
                                                                                                          office of NFA. All comments received                  Arca Equities Rule 5.2(j)(3), which
                                                  III. Date of Effectiveness of the                                                                             governs the listing and trading of
                                                  Proposed Rule Change and Timing for                     will be posted without change; the
                                                                                                          Commission does not edit personal                     Investment Company Units (‘‘Units’’).5
                                                  Commission Action                                                                                             Currently, the Shares are listed and
                                                                                                          identifying information from
                                                     The proposed rule change is not                      submissions. You should submit only                   traded on the Exchange. The Exchange
                                                  effective because the CFTC has not yet                  information that you wish to make                     submitted this proposed rule change
                                                  determined that review of the proposed                  available publicly. All submissions                   because the underlying index will be
                                                  rule change is not necessary.                           should refer to File Number SR–NFA–                   changed and the index as modified
                                                     At any time within 60 days of the date               2015–01, and should be submitted on or                would continue not to meet the
                                                  of effectiveness of the proposed rule                   before January 11, 2016.                              ‘‘generic’’ listing requirement of
                                                  change, the Commission, after                                                                                 Commentary .02(a)(2) to NYSE Arca
                                                  consultation with the CFTC, may                           For the Commission, by the Division of              Equities Rule 5.2(j)(3) in that, as of June
                                                                                                          Trading and Markets, pursuant to delegated
                                                  summarily temporarily suspend the                       authority.6
                                                                                                                                                                30, 2015, only 30.10% of the weight of
                                                  proposed rule change and require that                                                                         the Revised Index components had a
                                                                                                          Robert W. Errett,
                                                  the proposed rule change be refiled in                                                                        minimum original principal amount
                                                  accordance with the provisions of                       Deputy Secretary.                                     outstanding of $100 million or more.6
                                                  Section 19(b)(1) of the Exchange Act.                   [FR Doc. 2015–31931 Filed 12–18–15; 8:45 am]             The investment objective of the Fund
                                                                                                          BILLING CODE 8011–01–P                                is to seek to replicate as closely as
                                                  IV. Solicitation of Comments                                                                                  possible, before fees and expenses, the
                                                    Interested persons are invited to                                                                           price and yield performance of the
                                                  submit written data, views, and                         SECURITIES AND EXCHANGE                               Barclays Municipal High Yield Short
                                                  arguments concerning the foregoing,                     COMMISSION                                            Duration Index (‘‘Short High Yield
                                                  including whether the proposed rule                     [Release No. 34–76645; File No. SR–                   Index’’ or ‘‘Index’’). The Fund is a series
                                                  change is consistent with the Act.                      NYSEArca–2015–74]                                     of the Market Vectors ETF Trust. Van
                                                  Comments may be submitted by any of                                                                           Eck Associates Corporation is the
                                                  the following methods:                                  Self-Regulatory Organizations; NYSE                   investment adviser and the
                                                                                                          Arca, Inc.; Order Approving a
                                                  Electronic Comments                                     Proposed Rule Change Regarding a                         4 See Securities Exchange Act Release No. 76174,

                                                    • Use the Commission’s Internet                       Change to the Underlying Index of the                 80 FR 64027 (October 22, 2015). The Commission
                                                  comment form (http://www.sec.gov/                                                                             determined that it was appropriate to designate a
                                                                                                          Market Vectors Short High Yield                       longer period within which to take action on the
                                                  rules/sro.shtml); or                                    Municipal Index ETF                                   proposed rule change so that it has sufficient time
                                                    • Send an email to rule-comments@                                                                           to consider the proposed rule change. Accordingly,
                                                  sec.gov. Please include File Number SR–                 December 15, 2015.                                    the Commission designated December 15, 2015 as
                                                  NFA–2015–01 on the subject line.                                                                              the date by which it should approve, disapprove,
                                                                                                          I. Introduction                                       or institute proceedings to determine whether to
                                                  Paper Comments                                             On August 26, 2015, NYSE Arca, Inc.                disapprove the proposed rule change.
                                                                                                                                                                   5 See Securities Exchange Act Release No. 71232
                                                    • Send paper comments in triplicate                   (‘‘Exchange’’) filed with the Securities
                                                                                                                                                                (January 3, 2014), 79 FR 1662 (January 9, 2014 (SR–
                                                  to Secretary, Securities and Exchange                   and Exchange Commission                               NYSEArca–2013–118) (order approving listing and
                                                  Commission, 100 F Street NE.,                           (‘‘Commission’’), pursuant to section                 trading of shares of the Market Vectors Short High
                                                  Washington, DC 20549–1090.                              19(b)(1) of the Securities Exchange Act               Yield Municipal Index ETF) (‘‘Order’’). See also
                                                                                                          of 1934 (‘‘Exchange Act’’) 1 and Rule                 Securities Exchange Act Release No. 70871
                                                  All submissions should refer to File                                                                          (November 14, 2013), 78 FR 69503 (November 19,
                                                  Number SR–NFA–2015–01. This file                        19b–4 thereunder,2 a proposed rule                    2013) (SR–NYSEArca–2013–118) (notice of
                                                  number should be included on the                        change to reflect a change to the                     proposed rule change relating to listing and trading
                                                  subject line if email is used. To help the              reference index relating to the Market                of shares of the Market Vectors Short High Yield
                                                                                                          Vectors Short High Yield Municipal                    Municipal Index ETF and, together with the Order,
                                                  Commission process and review your                                                                            the ‘‘Release’’). The Exchange submitted that
                                                  comments more efficiently, please use                   Index ETF (‘‘Fund’’). The Commission                  proposed rule change to permit listing and trading
                                                  only one method. The Commission will                    published notice of the proposed rule                 of the Shares because the index underlying the
                                                  post all comments on the Commission’s                   change in the Federal Register on                     Fund did not meet all of the ‘‘generic’’ listing
                                                                                                          September 16, 2015.3 On October 16,                   requirements of Commentary .02(a) to NYSE Arca
                                                  Internet Web site (http://www.sec.gov/                                                                        Equities Rule 5.2(j)(3) that are applicable to the
                                                  rules/sro.shtml). Copies of the                         2015, the Commission designated a                     listing of Units based on fixed income securities
                                                                                                          longer period within which to approve                 indexes. More specifically, the Index met all of the
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  submission, all subsequent
                                                  amendments, all written statements                      the proposed rule change, disapprove                  criteria except for those set forth in Commentary
                                                                                                          the proposed rule change, or institute                .02(a)(2), which requires that components that in
                                                  with respect to the proposed rule                                                                             the aggregate account for at least 75% of the weight
                                                  change that are filed with the                            6 17
                                                                                                                                                                of the index or portfolio each shall have a minimum
                                                                                                                 CFR 200.30–3(a)(12).                           original principal amount outstanding of $100
                                                  Commission, and all written                               1 15 U.S.C. 78s(b)(1).                              million or more.
                                                  communications relating to the                            2 17 CFR 240.19b–4.                                    6 The Exchange states that the other generic
                                                  proposed rule change between the                          3 See Securities Exchange Act Release No. 75888     listing criteria are satisfied. See Notice, supra note
                                                  Commission and any person, other than                   (September 10, 2015), 80 FR 55701 (‘‘Notice’’).       3, 80 FR at 55703.



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Document Created: 2015-12-19 02:57:30
Document Modified: 2015-12-19 02:57:30
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 79390 

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