81_FR_22406 81 FR 22333 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Partial Amendment No. 1 to Proposed Rule Change Relating to Proposed Rule Change To Adopt FINRA Capital Acquisition Broker Rules

81 FR 22333 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Partial Amendment No. 1 to Proposed Rule Change Relating to Proposed Rule Change To Adopt FINRA Capital Acquisition Broker Rules

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 73 (April 15, 2016)

Page Range22333-22334
FR Document2016-08646

Federal Register, Volume 81 Issue 73 (Friday, April 15, 2016) 
[Federal Register Volume 81, Number 73 (Friday, April 15, 2016)]
[Notices]
[Pages 22333-22334]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-08646]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77581; File No. SR-FINRA-2015-054]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing of Partial Amendment No. 1 to 
Proposed Rule Change Relating to Proposed Rule Change To Adopt FINRA 
Capital Acquisition Broker Rules

April 11, 2016.

I. Introduction

    On December 4, 2015, Financial Industry Regulatory Authority, Inc. 
(``FINRA'') filed with the Securities and Exchange Commission (the 
``Commission'' or ``SEC'') proposed rule change SR-FINRA-2015-054, 
pursuant to which FINRA proposed to adopt a rule set that would apply 
exclusively to firms that meet the definition of ``capital acquisition 
broker'' and that elect to be governed under this rule set 
(collectively, the ``CAB Rules'').
    The Commission published the proposed rule change for public 
comment in the Federal Register on December 23, 2015.\1\ The Commission 
received 17 comment letters in response to the proposed rule change.\2\ 
On January 28, 2016, FINRA extended the time period in which the 
Commission must approve the proposed rule change, disapprove the 
proposed rule change or institute proceedings to determine whether to 
approve or disapprove the proposed rule change to March 22, 2016.
---------------------------------------------------------------------------

    \1\ Securities Exchange Act Release No. 76675 (December 17, 
2015), 80 FR 79969 (December 23, 2015) (Notice of Filing of File No. 
SR-FINRA-2015-054) (``Notice of Filing'').
    \2\ Letters from Peter W. LaVigne, Esq., Chair, Securities 
Regulation Committee, Business Law Section, New York State Bar 
Association, dated January 22, 2016; Judith M. Shaw, President, 
North American Securities Administrators Association, Inc., dated 
January 15, 2016; Timothy Cahill, President, Compass Securities 
Corporation, dated January 13, 2016; Mark Fairbanks, President, 
Foreside Distributors, dated January 13, 2016; Dan Glusker, Perkins 
Fund Marketing, LLC, dated January 13, 2016; Steven Jafarzadeh, 
CAIA, Managing Director, CCO Partner, Stonehaven, dated January 13, 
2016; Richard A. Murphy, Manager, North Bridge Capital LLC, dated 
January 13, 2016; Ron Oldenkamp, President, Genesis Marketing Group, 
dated January 13, 2016; Michael S. Quinn, Member and CCO, Q Advisors 
LLC, dated January 13, 2016; Lisa Roth, President, Monahan & Roth, 
LLC, dated January 13, 2016; Howard Spindel, Senior Managing 
Director, and Cassondra E. Joseph, Managing Director, Integrated 
Management Solutions USA LLC, dated January 13, 2016; Sajan K. 
Thomas, President, and Stephen J. Myott, Chief Compliance Officer, 
Thomas Capital Group, Inc., dated January 13, 2016; Donna DiMaria, 
Chairman of the Board of Directors, and Lisa Roth, Board of 
Directors, Third Party Marketers Association, dated January 12, 
2016; Frank P. L. Minard, Managing Partner, XT Capital Partners, 
LLC, dated January 12, 2016; Arne Rovell, Coronado Investments, LLC, 
dated January 6, 2016; Daniel H. Kolber, President/CEO, Intellivest 
Securities, Inc., dated December 30, 2016; and Roger W. Mehle, 
Chairman and CEO, Archates Capital Advisors LLC, dated December 29, 
2015.
---------------------------------------------------------------------------

    On March 23, 2016, the Commission published in the Federal Register 
an order to solicit comments on the proposed rule change and to 
institute proceedings pursuant to Section 19(b)(2)(B) of the Securities 
Exchange Act of 1934 (``Exchange Act'') \3\ to determine whether to 
approve or disapprove the proposed rule change.\4\
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(b)(2)(B).
    \4\ Securities Exchange Act Release No. 77391 (March 17, 2016), 
81 FR 15588 (March 23, 2016) (Order Instituting Proceedings To 
Determine Whether to Approve or Disapprove Proposed Rule Change to 
Adopt FINRA Capital Acquisition Broker Rules on File No. SR-FINRA-
2015-054).
---------------------------------------------------------------------------

    As described further below, on March 29, 2016 FINRA filed a partial 
amendment to its proposed rule change in response to comments on the 
Notice of Filing.

II. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Amendment

    In response to comments on the Notice of Filing, FINRA filed a 
Partial Amendment No. 1 to amend proposed CAB Rule 016(c)(2) to clarify 
that the definition of ``capital acquisition broker'' does not include 
any broker or dealer that effects securities transactions that would 
require the broker or dealer to report the transaction under the FINRA 
Rules 6300 Series, 6400 Series, 6500 Series, 6600 Series, 6700 Series, 
7300 Series or 7400 Series. With this Partial Amendment No. 1, FINRA 
filed: (1) Exhibit 4, which reflects changes to the text of the 
proposed rule change pursuant to this Partial Amendment No. 1, marked 
to show additions to the text as proposed in the original filing; and 
(2) Exhibit 5, which reflects the changes to the current rule text that 
are proposed in the proposed rule change, as amended by this Partial 
Amendment No. 1.

III. Date of Effectiveness of the Proposed Rule Change as Modified by 
Partial Amendment No.1 and Timing for Commission Action

    Within 180 days after the date of publication of the initial Notice 
of Filing in the Federal Register or within such longer period up to an 
additional 60 days (i) as the Commission may designate if it finds such 
longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will issue an

[[Page 22334]]

order approving or disapproving such proposed rule change, as amended.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended by Partial Amendment No. 1, is consistent with the 
Exchange 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 rule-comments@sec.gov. Please include 
File Number SR-FINRA-2015-054 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-FINRA-2015-054. 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 FINRA.
    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-FINRA-2015-054 
and should be submitted on or before May 6, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-08646 Filed 4-14-16; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices 22333 including whether the proposed rule SECURITIES AND EXCHANGE must approve the proposed rule change, change is consistent with the Act. COMMISSION disapprove the proposed rule change or Comments may be submitted by any of institute proceedings to determine [Release No. 34–77581; File No. SR–FINRA– the following methods: whether to approve or disapprove the 2015–054] proposed rule change to March 22, Electronic Comments 2016. Self-Regulatory Organizations; • Use the Commission’s Internet Financial Industry Regulatory On March 23, 2016, the Commission comment form (http://www.sec.gov/ Authority, Inc.; Notice of Filing of published in the Federal Register an rules/sro.shtml); or Partial Amendment No. 1 to Proposed order to solicit comments on the Rule Change Relating to Proposed proposed rule change and to institute • Send an email to rule comments@ proceedings pursuant to Section sec.gov. Please include File No. SR– Rule Change To Adopt FINRA Capital Acquisition Broker Rules 19(b)(2)(B) of the Securities Exchange BOX–2016–13 on the subject line. Act of 1934 (‘‘Exchange Act’’) 3 to Paper Comments April 11, 2016. determine whether to approve or disapprove the proposed rule change.4 I. Introduction • Send paper comments in triplicate As described further below, on March to Secretary, Securities and Exchange On December 4, 2015, Financial 29, 2016 FINRA filed a partial Commission, 100 F Street NE., Industry Regulatory Authority, Inc. amendment to its proposed rule change Washington, DC 20549–1090. (‘‘FINRA’’) filed with the Securities and in response to comments on the Notice Exchange Commission (the of Filing. All submissions should refer to File No. ‘‘Commission’’ or ‘‘SEC’’) proposed rule SR–BOX–2016–13. This file number II. Self-Regulatory Organization’s change SR–FINRA–2015–054, pursuant should be included on the subject line Statement of the Terms of Substance of to which FINRA proposed to adopt a if email is used. To help the the Proposed Amendment rule set that would apply exclusively to Commission process and review your firms that meet the definition of ‘‘capital In response to comments on the comments more efficiently, please use acquisition broker’’ and that elect to be Notice of Filing, FINRA filed a Partial only one method. The Commission will governed under this rule set Amendment No. 1 to amend proposed post all comments on the Commission’s (collectively, the ‘‘CAB Rules’’). CAB Rule 016(c)(2) to clarify that the Internet Web site (http://www.sec.gov/ The Commission published the definition of ‘‘capital acquisition rules/sro.shtml). Copies of the proposed rule change for public broker’’ does not include any broker or submission, all subsequent comment in the Federal Register on dealer that effects securities transactions amendments, all written statements December 23, 2015.1 The Commission that would require the broker or dealer with respect to the proposed rule received 17 comment letters in response to report the transaction under the change that are filed with the to the proposed rule change.2 On FINRA Rules 6300 Series, 6400 Series, Commission, and all written January 28, 2016, FINRA extended the 6500 Series, 6600 Series, 6700 Series, communications relating to the time period in which the Commission 7300 Series or 7400 Series. With this proposed rule change between the Partial Amendment No. 1, FINRA filed: Commission and any person, other than 1 Securities Exchange Act Release No. 76675 (1) Exhibit 4, which reflects changes to those that may be withheld from the (December 17, 2015), 80 FR 79969 (December 23, the text of the proposed rule change public in accordance with the 2015) (Notice of Filing of File No. SR–FINRA– pursuant to this Partial Amendment No. provisions of 5 U.S.C. 552, will be 2015–054) (‘‘Notice of Filing’’). 2 Letters from Peter W. LaVigne, Esq., Chair, 1, marked to show additions to the text available for Web site viewing and Securities Regulation Committee, Business Law as proposed in the original filing; and printing in the Commission’s Public Section, New York State Bar Association, dated (2) Exhibit 5, which reflects the changes Reference Room, 100 F Street NE., January 22, 2016; Judith M. Shaw, President, North to the current rule text that are proposed Washington, DC 20549 on official American Securities Administrators Association, Inc., dated January 15, 2016; Timothy Cahill, in the proposed rule change, as business days between the hours of President, Compass Securities Corporation, dated amended by this Partial Amendment 10:00 a.m. and 3:00 p.m. Copies of such January 13, 2016; Mark Fairbanks, President, No. 1. filing also will be available for Foreside Distributors, dated January 13, 2016; Dan inspection and copying at the principal Glusker, Perkins Fund Marketing, LLC, dated III. Date of Effectiveness of the office of the Exchange. All comments January 13, 2016; Steven Jafarzadeh, CAIA, Proposed Rule Change as Modified by Managing Director, CCO Partner, Stonehaven, dated Partial Amendment No.1 and Timing received will be posted without change; January 13, 2016; Richard A. Murphy, Manager, the Commission does not edit personal North Bridge Capital LLC, dated January 13, 2016; for Commission Action identifying information from Ron Oldenkamp, President, Genesis Marketing Within 180 days after the date of Group, dated January 13, 2016; Michael S. Quinn, submissions. You should submit only Member and CCO, Q Advisors LLC, dated January publication of the initial Notice of Filing information that you wish to make 13, 2016; Lisa Roth, President, Monahan & Roth, in the Federal Register or within such available publicly. All submissions LLC, dated January 13, 2016; Howard Spindel, longer period up to an additional 60 should refer to File No. SR–BOX–2016– Senior Managing Director, and Cassondra E. Joseph, days (i) as the Commission may Managing Director, Integrated Management 13, and should be submitted on or Solutions USA LLC, dated January 13, 2016; Sajan designate if it finds such longer period before May 6, 2016. K. Thomas, President, and Stephen J. Myott, Chief to be appropriate and publishes its For the Commission, by the Division of Compliance Officer, Thomas Capital Group, Inc., reasons for so finding or (ii) as to which asabaliauskas on DSK3SPTVN1PROD with NOTICES dated January 13, 2016; Donna DiMaria, Chairman the self-regulatory organization Trading and Markets, pursuant to delegated of the Board of Directors, and Lisa Roth, Board of authority.29 Directors, Third Party Marketers Association, dated consents, the Commission will issue an Robert W. Errett, January 12, 2016; Frank P. L. Minard, Managing 3 15U.S.C. 78s(b)(2)(B). Partner, XT Capital Partners, LLC, dated January 12, Deputy Secretary. 2016; Arne Rovell, Coronado Investments, LLC, 4 SecuritiesExchange Act Release No. 77391 [FR Doc. 2016–08645 Filed 4–14–16; 8:45 am] dated January 6, 2016; Daniel H. Kolber, President/ (March 17, 2016), 81 FR 15588 (March 23, 2016) BILLING CODE 8011–01–P CEO, Intellivest Securities, Inc., dated December 30, (Order Instituting Proceedings To Determine 2016; and Roger W. Mehle, Chairman and CEO, Whether to Approve or Disapprove Proposed Rule Archates Capital Advisors LLC, dated December 29, Change to Adopt FINRA Capital Acquisition Broker 29 17 CFR 200.30–3(a)(12). 2015. Rules on File No. SR–FINRA–2015–054). VerDate Sep<11>2014 17:27 Apr 14, 2016 Jkt 238001 PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 E:\FR\FM\15APN1.SGM 15APN1

22334 Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices order approving or disapproving such For the Commission, by the Division of A. Self-Regulatory Organization’s proposed rule change, as amended. Trading and Markets, pursuant to delegated Statement of the Purpose of, and authority.5 Statutory Basis for, the Proposed Rule IV. Solicitation of Comments Robert W. Errett, Change Interested persons are invited to Deputy Secretary. submit written data, views and 1. Purpose [FR Doc. 2016–08646 Filed 4–14–16; 8:45 am] arguments concerning the foregoing, BILLING CODE 8011–01–P The Exchange proposes to amend its including whether the proposed rule Fees Schedule, effective April 1, 2016. change, as amended by Partial Specifically, the Exchange proposes to Amendment No. 1, is consistent with SECURITIES AND EXCHANGE extend the current waiver of the VIX the Exchange Act. Comments may be COMMISSION Index License Surcharge of $0.10 per submitted by any of the following contract for Clearing Trading Permit [Release No. 34–77575; File No. SR–CBOE– Holder Proprietary (‘‘Firm’’) (origin methods: 2016–030] codes ‘‘F’’ or ‘‘L’’) VIX orders that have Electronic Comments a premium of $0.10 or lower and have Self-Regulatory Organizations; • Use the Commission’s Internet Chicago Board Options Exchange, series with an expiration of seven (7) comment form (http://www.sec.gov/ Incorporated; Notice of Filing and calendar days or less. The Exchange rules/sro.shtml); or Immediate Effectiveness of a Proposed adopted the current waiver to reduce • Send an email to rule-comments@ transaction costs on expiring, low- Rule To Amend the Fees Schedule sec.gov. Please include File Number SR– priced VIX options, which the Exchange FINRA–2015–054 on the subject line. April 11, 2016. believed would encourage Firms to seek Paper Comments Pursuant to Section 19(b)(1) of the to close and/or roll over such positions Securities Exchange Act of 1934 (the close to expiration at low premium • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2 levels, including facilitating customers to Secretary, Securities and Exchange notice is hereby given that on April 1, to do so, in order to free up capital and Commission, 100 F Street NE., 2016, Chicago Board Options Exchange, encourage additional trading. The Washington, DC 20549–1090. Incorporated (the ‘‘Exchange’’ or Exchange initially proposed to waive All submissions should refer to File ‘‘CBOE’’) filed with the Securities and the surcharge through March 31, 2016, Number SR–FINRA–2015–054. This file Exchange Commission (the at which time the Exchange stated that number should be included on the ‘‘Commission’’) the proposed rule it would evaluate whether the wavier subject line if email is used. To help the change as described in Items I, II, and [sic] has in fact prompted Firms to close Commission process and review your III below, which Items have been and roll over these positions close to comments more efficiently, please use prepared by the Exchange. The expiration as intended. The Exchange only one method. The Commission will Commission is publishing this notice to believes the proposed change has in fact post all comments on the Commission’s solicit comments on the proposed rule encouraged Firms to do so and as such, Internet Web site (http://www.sec.gov/ change from interested persons. proposes to extend the waiver of the rules/sro.shtml). Copies of the surcharge through December 2016, at submission, all subsequent I. Self-Regulatory Organization’s which time the Exchange will amendments, all written statements Statement of the Terms of Substance of reevaluate whether the wavier [sic] has with respect to the proposed rule the Proposed Rule Change continued to prompt Firms to close and change that are filed with the The Exchange proposes to amend its roll over positions close to expiration at Commission, and all written Fees Schedule. The text of the proposed low premium levels. Accordingly, the communications relating to the rule change is available on the Exchange proposes to delete the proposed rule change between the Exchange’s Web site (http:// reference to the current waiver period of Commission and any person, other than www.cboe.com/AboutCBOE/ March 31, 2016 from the Fees Schedule those that may be withheld from the CBOELegalRegulatoryHome.aspx), at and replace it with December 31, 2016. public in accordance with the the Exchange’s Office of the Secretary, provisions of 5 U.S.C. 552, will be 2. Statutory Basis and at the Commission’s Public available for Web site viewing and Reference Room. The Exchange believes the proposed printing in the Commission’s Public rule change is consistent with the Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s Securities Exchange Act of 1934 (the Washington, DC 20549, on official Statement of the Purpose of, and ‘‘Act’’) and the rules and regulations business days between the hours of Statutory Basis for, the Proposed Rule thereunder applicable to the Exchange 10:00 a.m. and 3:00 p.m. Copies of such Change and, in particular, the requirements of filing also will be available for In its filing with the Commission, the Section 6(b) of the Act.3 Specifically, inspection and copying at the principal Exchange included statements the Exchange believes the proposed rule office of FINRA. concerning the purpose of and basis for change is consistent with the Section All comments received will be posted the proposed rule change and discussed 6(b)(5) 4 requirements that the rules of without change. The Commission does any comments it received on the an exchange be designed to prevent not edit personal identifying proposed rule change. The text of these fraudulent and manipulative acts and information from submissions. You asabaliauskas on DSK3SPTVN1PROD with NOTICES statements may be examined at the practices, to promote just and equitable should submit only information that places specified in Item IV below. The principles of trade, to foster cooperation you wish to make available publicly. All Exchange has prepared summaries, set and coordination with persons engaged submissions should refer to File forth in sections A, B, and C below, of in regulating, clearing, settling, Number SR–FINRA–2015–054 and the most significant aspects of such processing information with respect to, should be submitted on or before May statements. and facilitation transactions in 6, 2016. 1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78f(b). 5 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. 4 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 17:27 Apr 14, 2016 Jkt 238001 PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 E:\FR\FM\15APN1.SGM 15APN1


Document Created: 2016-04-15 00:55:17
Document Modified: 2016-04-15 00:55:17
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 Citation81 FR 22333 
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR