80 FR 81606 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Proprietary Trader and Proprietary Trader Principal Registration Categories, Securities Trader and Securities Trader Principal Registration Categories, and Establishing the Series 57 Examination
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 250 (December 30, 2015)
Federal Register Volume 80, Issue 250 (December 30, 2015)
| Page Range | 81606-81609 | |
| FR Document | 2015-32814 |
[Federal Register Volume 80, Number 250 (Wednesday, December 30, 2015)] [Notices] [Pages 81606-81609] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-32814] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76755; File No. SR-BYX-2015-52] Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Proprietary Trader and Proprietary Trader Principal Registration Categories, Securities Trader and Securities Trader Principal Registration Categories, and Establishing the Series 57 Examination December 23, 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 December 22, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or ``BYX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the [[Page 81607]] Act \3\ and Rule 19b-4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with the Commission. 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. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to retire the Proprietary Trader and Proprietary Trader Principal registration categories and to establish the Securities Trader and Securities Trader Principal registration categories. The Exchange is also amending its rules to establish the Series 57 examination as the appropriate qualification examination for Securities Traders and deleting the rule referring to the S501 continuing education program currently applicable to Proprietary Traders. The Exchange will announce the effective date of the proposed rule change in a circular distributed to Members. The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. (A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is proposing herein to replace the Series 56 with the Series 57 examination and to make various related changes to its registration rules. Specifically, in response to the FINRA Amendments (defined below), the Exchange is proposing to retire the Proprietary Trader \5\ registration categories from its own registration rules relating to securities trading activity. It is also therefore retiring its Proprietary Trader Principal \6\ registration category. To take the place of the retired registration categories, the Exchange is establishing new Securities Trader and Securities Trader Principal registration categories. This filing is based upon and in response to SR-FINRA-2015-017, which was recently approved by the Commission.\7\ --------------------------------------------------------------------------- \5\ Rule 2.5, Interpretation and Policy .01(f). \6\ Rule 2.5, Interpretation and Policy .01(d). \7\ See Securities Exchange Act Release No. 75783 (August 28, 2015), 80 FR 53369 (September 3, 2015) (approving SR-FINRA-2015-017) referred to herein as the ``FINRA Amendments.'' According to the release, FINRA's expected effective date for the FINRA Amendments is January 4, 2016. --------------------------------------------------------------------------- New Securities Trader Registration Category Currently, under Exchange Rule 11.4(e), each person associated with a member who is included within the definition of an ``Authorized Trader'' in Rule 1.5(d) is required to register with the Exchange and to pass an appropriate qualification examination before such registration may become effective. The Exchange recognizes the following qualification examinations as acceptable for purposes of registration as an Authorized Trader: Series 7, Series 56, or one of several foreign securities examination modules. Interpretation and Policy .01(f) of Exchange Rule 2.5 currently provides that a person may register with the Exchange as a Proprietary Trader if such person engages solely in proprietary trading, passes the Series 56 examination and is an associated person of a proprietary trading firm as defined in Interpretation and Policy .01(g) of Exchange Rule 2.5. Therefore, pursuant to Interpretation and Policy .01 to Exchange Rule 2.5, an individual meeting these criteria may register in the Proprietary Trader category after passing the Series 56 examination rather than as a General Securities Representative after passing the Series 7 examination or equivalent foreign securities examination module. In consultation with FINRA and other exchanges, and in order to harmonize the requirements for individuals engaged in trading activities, the Exchange is now proposing to retire the Proprietary Trader registration category. Similarly, the Exchange is proposing to adopt a new Securities Trader registration category. Under Exchange Rules, as revised, each person associated with a member who is included within the definition of Authorized Trader will be required to register as a Securities Trader unless they instead qualify based on the Series 7 examination or an equivalent foreign securities examination module. Therefore, representatives who previously qualified for Proprietary Trader registration will be required to register as Securities Traders. Accordingly, the Exchange is proposing to modify paragraph (f) of Interpretation and Policy .01 to reflect the new Securities Trader qualification as a permissible registration for Authorized Traders of Members that engage solely in trading on the Exchange on either an agency or principal basis. In order to register as a Securities Trader, an applicant would be required to have passed the new Securities Trader qualification examination (Series 57) or a predecessor examination (i.e., the Series 56, as described below). A person registered as a Proprietary Trader in the Central Registration Depository (CRD[supreg]) system on the effective date of the proposed rule change will be grandfathered as a Securities Trader without having to take any additional examinations and without having to take any other actions. In addition, individuals who were registered as Proprietary Traders in the CRD system prior to the effective date of the proposed rule change will be eligible to register as Securities Traders without having to take any additional examinations, provided that no more than two years have passed between the date they were last registered as a representative and the date they register as a Securities Trader. Persons registered in the new category would be subject to the continuing education requirements of Interpretation and Policy .02(e) to Rule 2.5. The Exchange proposes to amend Interpretation and Policy .02(e) by removing the option for Series 56 registered persons to participate in the S501 Series 56 Proprietary Trader continuing education program in order to satisfy the Regulatory Element. The S501 Series 56 Proprietary Trader continuing education program is being phased out along with the Series 56 Proprietary Trader qualification examination. As a result, effective January 4, 2016, the S501 Series 56 Proprietary Trader continuing education program for Series 56 registered persons will cease to exist. In place of the S501 Series 56 Proprietary Trader continuing education program for Series 56 registered persons, the Exchange proposes that Series 57 registered persons be required to take the S101 General Program for Series 7 and all other registered persons. [[Page 81608]] New Securities Trader Principal Registration Category Currently, under Interpretation and Policy .01(d), the Exchange requires each Member to register ``Principals'' \8\ with the Exchange. The Exchange requires the Series 24 examination to register as Principal. The Exchange will also accept the New York Stock Exchange Series 14 Compliance Official Examination in lieu of the Series 24 to satisfy the Principal examination requirement for any person designated as a Chief Compliance Officer. Further, in addition to the Series 24 or Series 14, in order to supervise the activities of General Securities Representatives a Principal generally must complete the Series 7 or an equivalent foreign examination module as a prerequisite to the Series 24 or Series 14. However, the Exchange currently permits the Series 56 as a prerequisite to the Series 24 or Series 14 for those Principals whose supervisory responsibilities are limited to overseeing the activities of proprietary traders, as described above. Like the Proprietary Trader category discussed above, the Proprietary Trader Principal registration category is being retired. Accordingly, the Exchange proposes to modify the references in the Rule regarding the prerequisite to the Series 24 or 14 for an individual that will supervise Series 57 qualified traders to correspond with the new Securities Trader exam. The Exchange proposes to establish the Securities Trader Principal category in Interpretation and Policy .01(d). --------------------------------------------------------------------------- \8\ Pursuant to Interpretation and Policy .01(d) to Rule 2.5, a Principal is ``any individual responsible for supervising the activities of a Member's Authorized Traders and each person designated as a Chief Compliance Officer on Schedule A of Form BD.'' --------------------------------------------------------------------------- The Exchange has been working with other exchanges and FINRA to develop this new principal registration category and believes that it is an appropriate corollary to the new Securities Trader representative registration category. To qualify for registration as a Securities Trader Principal, an applicant must become qualified and registered as a Securities Trader under proposed Interpretation and Policy .01(c) and pass either the Series 24 or Series 14 examination. A person who is qualified and registered as a Securities Trader Principal would only be permitted to have supervisory responsibility over the activities of Securities Traders, unless such person were separately qualified and registered in another appropriate principal registration category, such as the General Securities Principal registration category. Conversely, the proposed rule change clarifies that each principal who will have supervisory responsibility over registered Securities Traders is required to become qualified and registered as a Securities Trader Principal. A person registered as a General Securities Principal and as a Proprietary Trader Principal in the CRD system on the effective date of the proposed rule change will be eligible to register as a Securities Trader Principal without having to take any additional examinations. An individual who was registered as a General Securities Principal and as a Proprietary Trader Principal in the CRD system prior to the effective date of the proposed rule change will also be eligible to register as a Securities Trader Principal without having to take any additional examinations, provided that no more than two years have passed between the date they were last registered as a principal and the date they register as a Securities Trader Principal. Members, however, will be required to affirmatively register persons transitioning to the proposed registration category as Securities Trader Principals on or after the effective date of the proposed rule change. Other Changes In order to accomplish the changes proposed above, the Exchange has proposed modifications throughout Interpretation and Policy .01 and .02 to Rule 2.5 as well as Rule 11.4(e) to eliminate references to Proprietary Trader, Proprietary Trader Principal, and Series 56 examination and to replace such references with Securities Trader, Securities Trader Principal and Series 57 examination. The Exchange also proposes to modify Rule 11.6, which sets forth the registration requirements applicable to Market Maker Authorized Traders, or MMATs, to cross-reference Interpretation and Policy .01 and .02. Although Rule 11.6 currently requires an MMAT to qualify by taking the Series 7 examination, the Exchange does not intend to impose different registration or continuing education requirements on MMATs than are required of Authorized Traders generally. In addition to these changes, the Exchange proposes to delete paragraph (h) to Interpretation .01, which currently states that: ``Principals responsible for supervising the activities of General Securities Representatives must successfully complete the Series 7 or an equivalent foreign examination module in addition to the Series 24.'' The Exchange proposes to eliminate this provision as duplicative with existing language in Interpretation and Policy .01, including paragraph (d), which states that ``[i]ndividuals that supervise the activities of General Securities Representatives must successfully complete the Series 7 or an equivalent foreign examination module as a prerequisite to the Series 24 or Series 14 and shall be referred to as General Securities Principals.'' The Exchange also proposes to modify a reference in Interpretation and Policy .01(e) from ``General Securities Representative Principal'' to ``General Securities Principal.'' In addition, the Exchange proposes to eliminate the fees applicable to the Series 56 examination as well as the fees associated with the continuing education necessary to maintain registration after passing the Series 56 examination. Consistent with all other examinations recognized by the Exchange, FINRA will administer the Series 57 examination and the continuing education requirements related thereto, and the Exchange will not be separately charging and collecting any fees in order to take such examination or participate in applicable continuing education. Finally, in order to continue to align the Exchange's rules with the rules of its affiliated exchanges, the Exchange proposes to adopt descriptive headings in Interpretation and Policy .02 to Rule 2.5 based on Interpretation and Policy .02 to Rule 2.5 of the rules of EDGA Exchange, Inc. and EDGX Exchange, Inc. and to modify the language, but not the substance, of Rule 11.4(e). 2. Statutory Basis The Exchange believes that proposed rule change is consistent with Section 6(b)(5) of the Act,\9\ which requires, among other things, that the Exchange's rules 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 facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. The Exchange believes that the requirements of the Securities Trader and Securities Trader Principal registration categories, as well as the new Securities Trader qualification examination, should help ensure that proprietary traders and the principals who supervise proprietary traders and proprietary trading are, and will continue to be, properly trained and qualified to perform their functions [[Page 81609]] which should protect investors and the public interest. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- (B) Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. Implementation of the proposed changes to the Exchange's registration rules in coordination with the FINRA Amendments does not present any competitive issues, but rather is designed to provide less burdensome and more efficient regulatory compliance for members and enhance the ability of the Exchange to fairly and efficiently regulate members, which will further enhance competition. Additionally, the proposed rule change should not affect intramarket competition because all similarly situated representatives and principals will be required to complete the same qualification examinations and maintain the same registrations. (C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written 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 change does not: (A) Significantly affect the protection of investors or the public interest; (B) impose any significant burden on competition; and (C) by its terms, become operative for 30 days from the date on which it was filed or such shorter time as the Commission may designate it has become effective pursuant to Section 19(b)(3)(A) of the Act \10\ and paragraph (f)(6) of Rule 19b-4 thereunder,\11\ the Exchange has designated this rule filing as non-controversial. The Exchange has given the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- The Exchange has requested that the Commission waive the thirty-day operative delay so that the proposal may become operative as of January 4, 2016. The Exchange states that waiving the thirty-day delay would allow the Exchange to eliminate the Proprietary Trader and Proprietary Trader Principal registration categories and adopt the Securities Trader and Securities Trader Principal registration categories at the same time as FINRA and the other national securities exchanges. The Commission believes that waiving the thirty day delay is consistent with the protection of investors and the public interest, as it will enable BYX to have the new requirements in effect at the same time as the other SROs . Therefore, the Commission hereby waives the thirty-day operative delay and designates the proposal operative as of January 4, 2016.\12\ --------------------------------------------------------------------------- \12\ For purposes of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal 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 rule-comments@sec.gov. Please include File No. SR-BYX-2015-52 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 No. SR-BYX-2015-52. 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 will also 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 No. SR-BYX-2015-52 and should be submitted on or before January 20, 2016. --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ Brent J. Fields, Secretary. [FR Doc. 2015-32814 Filed 12-29-15; 8:45 am] BILLING CODE 8011-01-P
![81606 Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Notices
costs by directing orders toward the data across all U.S. markets that are change that are filed with the
lowest-cost trading venues. A BD that reported to Tapes A, B, and C, in a Commission, and all written
shifted its order flow from one platform manner similar to other markets.26 The communications relating to the
to another in response to order Commission believes that waiving the proposed rule change between the
execution price differentials would both 30-day operative delay is consistent Commission and any person, other than
reduce the value of that platform’s with the protection of investors and the those that may be withheld from the
market data and reduce its own need to public interest. Therefore, the public in accordance with the
consume data from the disfavored Commission hereby waives the provisions of 5 U.S.C. 552, will be
platform. If a platform increases its operative delay and designates the available for Web site viewing and
market data fees, the change will affect proposed rule change operative upon printing in the Commission’s Public
the overall cost of doing business with filing.27 Reference Room, 100 F Street NE.,
the platform, and affected BDs will At any time within 60 days of the Washington, DC 20549, on official
assess whether they can lower their filing of the proposed rule change, the business days between the hours of
trading costs by directing orders Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
elsewhere and thereby lessening the temporarily suspend such rule change if filing also will be available for
need for the more expensive data. it appears to the Commission that such inspection and copying at the principal
Similarly, increases in the cost of NLS action is necessary or appropriate in the office of the Exchange. All comments
Plus would impair the willingness of public interest, for the protection of received will be posted without change;
distributors to take a product for which investors, or otherwise in furtherance of the Commission does not edit personal
there are numerous alternatives, the purposes of the Act. If the identifying information from
impacting NLS Plus data revenues, the Commission takes such action, the submissions. You should submit only
value of NLS Plus as a tool for attracting Commission shall institute proceedings information that you wish to make
order flow, and ultimately, the volume to determine whether the proposed rule available publicly. All submissions
of orders routed to NASDAQ and the should be approved or disapproved. should refer to File Number SR–BX–
value of its other data products. IV. Solicitation of Comments 2015–082 and should be submitted on
or before January 20, 2016.
C. Self-Regulatory Organization’s Interested persons are invited to
Statement on Comments on the For the Commission, by the Division of
submit written data, views, and Trading and Markets, pursuant to delegated
Proposed Rule Change Received From arguments concerning the foregoing, authority.28
Members, Participants, or Others including whether the proposed rule Brent J. Fields,
No written comments were either change is consistent with the Act.
Secretary.
solicited or received. Comments may be submitted by any of
[FR Doc. 2015–32902 Filed 12–29–15; 8:45 am]
the following methods:
III. Date of Effectiveness of the BILLING CODE 8011–01–P
Proposed Rule Change and Timing for Electronic Comments
Commission Action • Use the Commission’s Internet
Because the foregoing proposed rule comment form (http://www.sec.gov/ SECURITIES AND EXCHANGE
change does not: (i) Significantly affect rules/sro.shtml); or COMMISSION
the protection of investors or the public • Send an email to rule-comments@ [Release No. 34–76755; File No. SR–BYX–
interest; (ii) impose any significant sec.gov. Please include File Number SR– 2015–52]
burden on competition; and (iii) become BX–2015–082 on the subject line.
operative for 30 days from the date on Self-Regulatory Organizations; BATS
Paper Comments Y-Exchange, Inc.; Notice of Filing and
which it was filed, or such shorter time
as the Commission may designate, it has • Send paper comments in triplicate Immediate Effectiveness of Proposed
become effective pursuant to Section to Secretary, Securities and Exchange Rule Change Relating to Proprietary
19(b)(3)(A) of the Act 22 and Rule 19b– Commission, 100 F Street NE., Trader and Proprietary Trader Principal
4(f)(6) thereunder.23 Washington, DC 20549–1090. Registration Categories, Securities
A proposed rule change filed All submissions should refer to File Trader and Securities Trader Principal
pursuant to Rule 19b–4(f)(6) under the Number SR–BX–2015–082. This file Registration Categories, and
Act 24 normally does not become number should be included on the Establishing the Series 57 Examination
operative for 30 days after the date of its subject line if email is used. To help the
December 23, 2015.
filing. However, Rule 19b–4(f)(6)(iii) 25 Commission process and review your
comments more efficiently, please use Pursuant to Section 19(b)(1) of the
permits the Commission to designate a
only one method. The Commission will Securities Exchange Act of 1934 (the
shorter time if such action is consistent
post all comments on the Commission’s ‘‘Act’’),1 and Rule 19b–4 thereunder,2
with the protection of investors and the
Internet Web site (http://www.sec.gov/ notice is hereby given that on December
public interest. The Exchange has asked
rules/sro.shtml). Copies of the 22, 2015, BATS Y-Exchange, Inc. (the
the Commission to waive the 30-day
submission, all subsequent ‘‘Exchange’’ or ‘‘BYX’’) filed with the
operative delay so that the NLS Plus
Securities and Exchange Commission
may as soon as possible offer real-time amendments, all written statements
(‘‘Commission’’) the proposed rule
with respect to the proposed rule
22 15
change as described in Items I and II
U.S.C. 78s(b)(3)(A).
23 17 CFR 240.19b–4(f)(6). As required under Rule 26 See Securities Exchange Act Release Nos.
below, which Items have been prepared
mstockstill on DSK4VPTVN1PROD with NOTICES
19b–4(f)(6)(iii), the Exchange provided the 73918 (December 23, 2014), 79 FR 78920 (December by the Exchange. The Exchange has
Commission with written notice of its intent to file 31, 2014) (SR–BATS–2014–055; SR–BYX–2014– designated this proposal as a ‘‘non-
the proposed rule change, along with a brief 030; SR–EDGA–2014–25; SR–EDGX–2014–25); and controversial’’ proposed rule change
description and the text of the proposed rule 74726 (April 14, 2015), 80 FR 21776 (April 20,
change, at least five business days prior to the date 2015) (SR–BATS–2015–29).
pursuant to Section 19(b)(3)(A) of the
of filing of the proposed rule change, or such 27 For purposes only of waiving the 30-day
shorter time as designated by the Commission. 28 17 CFR 200.30–3(a)(12).
operative delay, the Commission has considered the
24 17 CFR 240.19b–4(f)(6). 1 15 U.S.C. 78s(b)(1).
proposed rule’s impact on efficiency, competition,
25 17 CFR 240.19b–4(f)(6)(iii). and capital formation. See 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 17:59 Dec 29, 2015 Jkt 238001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\30DEN1.SGM 30DEN1](https://thefederalregister.org/doc/80_FR_81856/page/1.svg)
![81608 Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Notices
New Securities Trader Principal proposed rule change clarifies that each language in Interpretation and Policy
Registration Category principal who will have supervisory .01, including paragraph (d), which
Currently, under Interpretation and responsibility over registered Securities states that ‘‘[i]ndividuals that supervise
Policy .01(d), the Exchange requires Traders is required to become qualified the activities of General Securities
each Member to register ‘‘Principals’’ 8 and registered as a Securities Trader Representatives must successfully
with the Exchange. The Exchange Principal. complete the Series 7 or an equivalent
A person registered as a General foreign examination module as a
requires the Series 24 examination to
Securities Principal and as a Proprietary prerequisite to the Series 24 or Series 14
register as Principal. The Exchange will
Trader Principal in the CRD system on and shall be referred to as General
also accept the New York Stock
the effective date of the proposed rule Securities Principals.’’ The Exchange
Exchange Series 14 Compliance Official
change will be eligible to register as a also proposes to modify a reference in
Examination in lieu of the Series 24 to
Securities Trader Principal without Interpretation and Policy .01(e) from
satisfy the Principal examination
having to take any additional ‘‘General Securities Representative
requirement for any person designated
examinations. An individual who was Principal’’ to ‘‘General Securities
as a Chief Compliance Officer. Further,
registered as a General Securities Principal.’’ In addition, the Exchange
in addition to the Series 24 or Series 14,
Principal and as a Proprietary Trader proposes to eliminate the fees
in order to supervise the activities of Principal in the CRD system prior to the
General Securities Representatives a applicable to the Series 56 examination
effective date of the proposed rule as well as the fees associated with the
Principal generally must complete the change will also be eligible to register as
Series 7 or an equivalent foreign continuing education necessary to
a Securities Trader Principal without maintain registration after passing the
examination module as a prerequisite to having to take any additional
the Series 24 or Series 14. However, the Series 56 examination. Consistent with
examinations, provided that no more all other examinations recognized by the
Exchange currently permits the Series than two years have passed between the
56 as a prerequisite to the Series 24 or Exchange, FINRA will administer the
date they were last registered as a Series 57 examination and the
Series 14 for those Principals whose principal and the date they register as a
supervisory responsibilities are limited continuing education requirements
Securities Trader Principal. Members, related thereto, and the Exchange will
to overseeing the activities of however, will be required to
proprietary traders, as described above. not be separately charging and
affirmatively register persons collecting any fees in order to take such
Like the Proprietary Trader category transitioning to the proposed
discussed above, the Proprietary Trader examination or participate in applicable
registration category as Securities continuing education. Finally, in order
Principal registration category is being Trader Principals on or after the
retired. Accordingly, the Exchange to continue to align the Exchange’s rules
effective date of the proposed rule with the rules of its affiliated exchanges,
proposes to modify the references in the change.
Rule regarding the prerequisite to the the Exchange proposes to adopt
Series 24 or 14 for an individual that Other Changes descriptive headings in Interpretation
will supervise Series 57 qualified In order to accomplish the changes and Policy .02 to Rule 2.5 based on
traders to correspond with the new proposed above, the Exchange has Interpretation and Policy .02 to Rule 2.5
Securities Trader exam. The Exchange proposed modifications throughout of the rules of EDGA Exchange, Inc. and
proposes to establish the Securities Interpretation and Policy .01 and .02 to EDGX Exchange, Inc. and to modify the
Trader Principal category in Rule 2.5 as well as Rule 11.4(e) to language, but not the substance, of Rule
Interpretation and Policy .01(d). eliminate references to Proprietary 11.4(e).
The Exchange has been working with Trader, Proprietary Trader Principal, 2. Statutory Basis
other exchanges and FINRA to develop and Series 56 examination and to
this new principal registration category replace such references with Securities The Exchange believes that proposed
and believes that it is an appropriate Trader, Securities Trader Principal and rule change is consistent with Section
corollary to the new Securities Trader Series 57 examination. The Exchange 6(b)(5) of the Act,9 which requires,
representative registration category. To also proposes to modify Rule 11.6, among other things, that the Exchange’s
qualify for registration as a Securities which sets forth the registration rules be designed to prevent fraudulent
Trader Principal, an applicant must requirements applicable to Market and manipulative acts and practices, to
become qualified and registered as a Maker Authorized Traders, or MMATs, promote just and equitable principles of
Securities Trader under proposed to cross-reference Interpretation and trade, to foster cooperation and
Interpretation and Policy .01(c) and pass Policy .01 and .02. Although Rule 11.6 coordination with persons engaged in
either the Series 24 or Series 14 currently requires an MMAT to qualify facilitating transactions in securities,
examination. A person who is qualified by taking the Series 7 examination, the and to remove impediments to and
and registered as a Securities Trader Exchange does not intend to impose perfect the mechanism of a free and
Principal would only be permitted to different registration or continuing open market and a national market
have supervisory responsibility over the education requirements on MMATs system. The Exchange believes that the
activities of Securities Traders, unless than are required of Authorized Traders requirements of the Securities Trader
such person were separately qualified generally. In addition to these changes, and Securities Trader Principal
and registered in another appropriate the Exchange proposes to delete registration categories, as well as the
principal registration category, such as paragraph (h) to Interpretation .01, new Securities Trader qualification
examination, should help ensure that
mstockstill on DSK4VPTVN1PROD with NOTICES
the General Securities Principal which currently states that: ‘‘Principals
registration category. Conversely, the responsible for supervising the activities proprietary traders and the principals
of General Securities Representatives who supervise proprietary traders and
8 Pursuant to Interpretation and Policy .01(d) to must successfully complete the Series 7 proprietary trading are, and will
Rule 2.5, a Principal is ‘‘any individual responsible or an equivalent foreign examination continue to be, properly trained and
for supervising the activities of a Member’s qualified to perform their functions
Authorized Traders and each person designated as
module in addition to the Series 24.’’
a Chief Compliance Officer on Schedule A of Form The Exchange proposes to eliminate this
BD.’’ provision as duplicative with existing 9 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Notices 81609
which should protect investors and the The Exchange states that waiving the rules/sro.shtml). Copies of the
public interest. thirty-day delay would allow the submission, all subsequent
Exchange to eliminate the Proprietary amendments, all written statements
(B) Self-Regulatory Organization’s
Trader and Proprietary Trader Principal with respect to the proposed rule
Statement on Burden on Competition
registration categories and adopt the change that are filed with the
The Exchange does not believe that Securities Trader and Securities Trader Commission, and all written
the proposed rule change will impose Principal registration categories at the communications relating to the
any burden on competition not same time as FINRA and the other proposed rule change between the
necessary or appropriate in furtherance national securities exchanges. The Commission and any person, other than
of the purposes of the Act. Commission believes that waiving the those that may be withheld from the
Implementation of the proposed thirty day delay is consistent with the public in accordance with the
changes to the Exchange’s registration protection of investors and the public provisions of 5 U.S.C. 552, will be
rules in coordination with the FINRA interest, as it will enable BYX to have available for Web site viewing and
Amendments does not present any the new requirements in effect at the printing in the Commission’s Public
competitive issues, but rather is same time as the other SROs . Therefore, Reference Room, 100 F Street NE.,
designed to provide less burdensome the Commission hereby waives the Washington, DC 20549, on official
and more efficient regulatory thirty-day operative delay and business days between the hours of
compliance for members and enhance designates the proposal operative as of 10:00 a.m. and 3:00 p.m. Copies of such
the ability of the Exchange to fairly and January 4, 2016.12 filing will also be available for
efficiently regulate members, which will At any time within 60 days of the inspection and copying at the principal
further enhance competition. filing of the proposed rule change, the office of the Exchange. All comments
Additionally, the proposed rule change Commission summarily may received will be posted without change;
should not affect intramarket temporarily suspend such rule change if the Commission does not edit personal
competition because all similarly it appears to the Commission that such identifying information from
situated representatives and principals action is: (1) Necessary or appropriate in submissions. You should submit only
will be required to complete the same the public interest; (2) for the protection information that you wish to make
qualification examinations and maintain of investors; or (3) otherwise in available publicly. All submissions
the same registrations. furtherance of the purposes of the Act. should refer to File No. SR–BYX–2015–
(C) Self-Regulatory Organization’s If the Commission takes such action, the 52 and should be submitted on or before
Statement on Comments on the Commission shall institute proceedings January 20, 2016.
Proposed Rule Change Received From to determine whether the proposed rule For the Commission, by the Division of
Members, Participants or Others should be approved or disapproved. Trading and Markets, pursuant to delegated
IV. Solicitation of Comments authority.13
The Exchange has neither solicited
nor received written comments on the Brent J. Fields,
Interested persons are invited to Secretary.
proposed rule change. submit written data, views and
[FR Doc. 2015–32814 Filed 12–29–15; 8:45 am]
III. Date of Effectiveness of the arguments concerning the foregoing,
BILLING CODE 8011–01–P
Proposed Rule Change and Timing for including whether the proposal is
Commission Action consistent with the Act. Comments may
be submitted by any of the following
Because the foregoing proposed rule SECURITIES AND EXCHANGE
methods:
change does not: (A) Significantly affect COMMISSION
the protection of investors or the public Electronic Comments
interest; (B) impose any significant • Use the Commission’s Internet [Release No. 34–76748; File No. SR–NYSE–
burden on competition; and (C) by its comment form (http://www.sec.gov/ 2015–52]
terms, become operative for 30 days rules/sro.shtml); or
from the date on which it was filed or • Send an email to rule-comments@ Self-Regulatory Organizations; New
such shorter time as the Commission sec.gov. Please include File No. SR– York Stock Exchange LLC; Order
may designate it has become effective BYX–2015–52 on the subject line. Approving Proposed Rule Change to
pursuant to Section 19(b)(3)(A) of the the Co-Location Services Offered by
Act 10 and paragraph (f)(6) of Rule 19b– Paper Comments the Exchange (the Offering of a
4 thereunder,11 the Exchange has • Send paper comments in triplicate Wireless Connection To Allow Users
designated this rule filing as non- to Secretary, Securities and Exchange To Receive Market Data Feeds From
controversial. The Exchange has given Commission, 100 F Street NE., Third Party Markets) and To Reflect
the Commission written notice of its Washington, DC 20549–1090. Changes to the Exchange’s Price List
intent to file the proposed rule change, Related to These Services
All submissions should refer to File No.
along with a brief description and text
SR–BYX–2015–52. This file number December 23, 2015.
of the proposed rule change at least five
should be included on the subject line
business days prior to the date of filing I. Introduction
if email is used. To help the
of the proposed rule change, or such
Commission process and review your On October 23, 2015, New York Stock
shorter time as designated by the
comments more efficiently, please use
mstockstill on DSK4VPTVN1PROD with NOTICES
Commission. Exchange LLC (‘‘NYSE’’ or the
only one method. The Commission will ‘‘Exchange’’) filed with the Securities
The Exchange has requested that the
post all comments on the Commission’s and Exchange Commission (the
Commission waive the thirty-day
Internet Web site (http://www.sec.gov/ ‘‘Commission’’) pursuant to Section
operative delay so that the proposal may
become operative as of January 4, 2016. 12 For purposes of waiving the 30-day operative
19(b)(1) 1 of the Securities Exchange Act
delay, the Commission has considered the proposed
10 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 200.30–3(a)(12).
rule’s impact on efficiency, competition, and capital
11 17 CFR 240.19b–4. formation. See 15 U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1).
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Document Created: 2015-12-30 03:16:16
Document Modified: 2015-12-30 03:16:16
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 81606 |
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