81 FR 18671 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Continuing Education Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 62 (March 31, 2016)

[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)]
[Notices]
[Pages 18671-18673]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-07197]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77444; File No. SR-Phlx-2016-34]


Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Exchange's Continuing Education Fee Schedule

March 25, 2016.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on March 15, 2016, NASDAQ PHLX LLC (``Exchange'') filed with the 
Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule change as described in Items I, II, and III, below, which 
Items have been prepared by the Exchange. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend the Continuing Education fee 
schedule as described further below. The proposed rule change is being 
filed for immediate effectiveness.
    The text of the proposed rule change is available on the Exchange's 
Web site

[[Page 18672]]

at http://nasdaqomxphlx.cchwallstreet.com/, at the principal office of 
the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

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

1. Purpose
    The Exchange proposes to make changes to the Continuing Education 
fees set forth in subsection C, FINRA Fees, of section VII, Other 
Member Fees, to provide that the Continuing Education fee will be $55 
if the Continuing Education session is conducted via Web delivery. The 
Continuing Education fee will remain $100 if the Continuing Education 
session is conducted at a testing center. The Exchange is also 
eliminating the $60 Continuing Education fee for the S501 Regulatory 
Element, which was discontinued by FINRA as of January 4, 2016.\3\
---------------------------------------------------------------------------

    \3\ Currently, Section VII, subsection C, of the Exchange's fee 
schedule provides that the Continuing Education fee will be assessed 
as to each individual who is required to complete the Regulatory 
Element of the Continuing Education requirements pursuant to 
Exchange Rule 640. This fee, which is paid directly to FINRA, is 
$60.00 for each individual who is required to complete the 
Proprietary Trader Regulatory Element (S501) and $100.00 for each 
individual who is required to complete the S101 or S201 Regulatory 
Elements.
---------------------------------------------------------------------------

    On August 8, 2015, the Commission approved SR-FINRA-2015-015 
relating to proposed changes to FINRA Rule 1250 to provide for Web-
based delivery for completing the Regulatory Element of the Continuing 
Education requirements.\4\ Pursuant to the rule change, effective 
October 1, 2015, the Regulatory Element of the Continuing Education 
programs for the S101 and S201 is now administered through Web-based 
delivery.\5\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 75581 (July 31, 
2015), 80 FR 47018 (August 6, 2015) (Order Approving a Proposed Rule 
Change to Provide a Web-based Delivery Method for Completing the 
Regulatory Element of the Continuing Education Requirements) (SR-
FINRA-2015-015). FINRA elected to provide a Web-based delivery 
method for completing the Regulatory Element based on its evaluation 
of different delivery methods and in consultation with the 
Securities Industry Regulatory Council on Continuing Education (``CE 
Council''). The CE Council is composed of up to 20 industry members 
from broker-dealers, representing a broad cross section of industry 
firms, and representatives from FINRA and other SROs as well as 
liaisons from the SEC and the North American Securities 
Administrators Association. See http://www.cecouncil.com. The 
Exchange, with other SROs, is adopting the fee for Web based CE that 
was recommended by FINRA and approved by the CE Council.
    \5\ The Regulatory Element of the S101 and S201 Continuing 
Education programs will continue to be offered at testing centers 
until no later than six months after January 4, 2016. Test-center 
delivery of the Regulatory Element will be phased out by no later 
than six months after January 4, 2016. See Securities Exchange Act 
Release No. 75581 (July 31, 2015), 80 FR 47018 (August 6, 2015) 
(Order Approving a Proposed Rule Change To Provide a Web-Based 
Delivery Method for Completing the Regulatory Element of the 
Continuing Education) (SR-FINRA-2015-015).
---------------------------------------------------------------------------

    Pursuant to the approval order for SR-FINRA-2015-015, the fee for 
test-center delivery of the Regulatory Element of the S101 and S201 
Continuing Education programs will continue to be $100 per session 
through no later than six months after January 4, 2016 when the program 
will no longer be offered at testing centers. However, the fee for Web-
based delivery of the Regulatory Element of the S101 and S201 
Continuing Education programs is now $55.
    The Exchange currently utilizes the S101 and S201 programs that are 
part of the Securities Industry Continuing Education Program.\6\ 
Consistent with SR-FINRA-2015-015, the Exchange recently filed a 
separate proposed rule change to follow the changes set forth in SR-
FINRA-2015-015 with respect to Web-based delivery of the Regulatory 
Element of the Continuing Education programs.\7\ The CE Council 
determined to adopt a lower Web-delivery CE fee based on the difference 
between the cost of CE administered at a testing center and the cost of 
CE administered by Web delivery. FINRA made this change to its fees in 
SR-FINRA-2015-015 in response to the Council's decision. Consistent 
with SR-FINRA-2015-015, this proposed rule change will now amend the 
Exchange's fee schedule to provide that the continuing education fee is 
$100.00 ($55.00 if the Continuing Education is Web-based) for each 
individual who is required to complete the S101 or S201.\8\ The 
Exchange is also deleting an extraneous parenthesis.
---------------------------------------------------------------------------

    \6\ The Securities Industry/Regulatory Council on Continuing 
Education has advisory and consultative responsibilities with regard 
to the development, implementation and ongoing operation of the 
Securities Industry Continuing Education Program.
    \7\ See Securities Exchange Act Release No. 76880 (January 12, 
2016), 81 FR 2928 (January 19, 2016).
    \8\ As noted above, the S501 Proprietary Trader Regulatory 
Element was discontinued as of January 4, 2016. The Exchange is 
therefore deleting the $60 S501 Proprietary Trader Regulatory 
Element fee. The Exchange will file another proposed rule change to 
eliminate the reference to the $100 Continuing Education fee when 
the test center option is eliminated for the S101 and S201 
Regulatory Elements.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal to amend its fee schedule 
is consistent with section 6(b) of the Act \9\ in general, and furthers 
the objectives of section 6(b)(4) of the Act \10\ in particular, in 
that it is an equitable allocation of reasonable dues, fees and other 
charges among Exchange members and issuers and other persons using its 
facilities. The Exchange believes that the proposal to set the 
Continuing Education fee at $55 if the Continuing Education session is 
conducted via Web delivery is an equitable allocation of dues, fees and 
other charges because the fee change applies equally to all persons 
associated with members. In addition, the Exchange believes that the 
amended fee is an equitable allocation of dues, fees and other charges 
as it will apply uniformly to all persons associated with the members 
who choose to participate in the continuing education program through 
FINRA via Web delivery. As FINRA has stated in SR-FINRA-2015-015, the 
test center delivery method is expensive to operate and support, and 
web-based delivery is efficient and offers significant cost savings 
over test-center and in-firm deliveries. The proposed deletion of the 
$60 Continuing Education fee for the S501 Regulatory Element is 
reasonable because the S501 CE program has been discontinued by FINRA.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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. Because the proposed rule 
change applies to all persons associated with members who are required 
to fulfill Continuing Education requirements, the proposal has no 
effect on competition.

[[Page 18673]]

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act.\11\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic 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-Phlx-2016-34 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2016-34. 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 the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-Phlx-2016-34 and should be 
submitted on or before April 21, 2016.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Brent J. Fields,
Secretary.
[FR Doc. 2016-07197 Filed 3-30-16; 8:45 am]
 BILLING CODE 8011-01-P