81 FR 46133 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Fee for the Regulatory Element of Continuing Education
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 136 (July 15, 2016)
Federal Register Volume 81, Issue 136 (July 15, 2016)
| Page Range | 46133-46135 | |
| FR Document | 2016-16722 |
[Federal Register Volume 81, Number 136 (Friday, July 15, 2016)] [Notices] [Pages 46133-46135] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-16722] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78281; File No. SR-FINRA-2016-025] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Fee for the Regulatory Element of Continuing Education July 11, 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 July 1, 2016, Financial Industry Regulatory Authority, Inc. (``FINRA'') 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 FINRA. FINRA has designated the proposed rule change as ``establishing or changing a due, fee or other charge'' under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon receipt of this filing by 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)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change FINRA is proposing to amend Section 4 of Schedule A to the FINRA By-Laws to address the transition of the Regulatory Element of Continuing Education (``CE'') to the FINRA CE Online System[supreg]. The text of the proposed rule change is available on FINRA's Web site at http://www.finra.org, at the principal office of FINRA and at the Commission's Public Reference Room. [[Page 46134]] II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA 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. FINRA 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 As part of the transition to CE Online, FINRA is phasing out test center delivery of the CE Regulatory Element.\5\ Specifically, effective July 1, 2016, the option to complete the Regulatory Element at a test center will no longer be available, and participants must complete their session using the CE Online System with the exception of participants who, pursuant to the Americans with Disabilities Act,\6\ may need accommodations in completing their CE session due to a disability. Participants who need such accommodations may apply for an accommodation and complete their CE Regulatory Element session at a test center.\7\ --------------------------------------------------------------------------- \5\ See Regulatory Notice 15-28 (August 2015); see also Information Notice, May 16, 2016 (Elimination of Continuing Education Delivery at Testing Centers). \6\ Americans with Disabilities Act of 1990, Public Law 101-336, 104 Stat. 328 (1990). \7\ See FINRA's CE Online Delivery Accommodation Web page, available at http://www.finra.org/industry/accommodations-continuing-education-ce-online-participants. --------------------------------------------------------------------------- Currently, pursuant to Section 4(f) of Schedule A to the FINRA By- Laws, FINRA assesses a session fee of $100 to each participant for each scheduled session to complete the Regulatory Element at a test center, and it assesses a session fee of $55 to each participant who completes the Regulatory Element through the CE Online System. In conjunction with phasing out test center delivery of the Regulatory Element, FINRA is proposing to amend Section 4(f) of Schedule A to the FINRA By-Laws to assess a session fee of $55 for the Regulatory Element regardless of whether the session is completed at a test center or through the CE Online System. However, as noted above, only participants who apply for an accommodation would be eligible to complete their CE Regulatory Element session at a test center. In addition, Section 4(c) of Schedule A to the FINRA By-Laws includes additional fees for taking the Regulatory Element session outside the United States, failing to appear on time for an appointment or cancelling or rescheduling an appointment. FINRA is proposing to make technical changes to Sections 4(c)(3) and (4) of Schedule A to the FINRA By-Laws to clarify that such additional fees are only applicable to test center-based sessions. Further, because these additional fees are based on the initial session fee, which FINRA is proposing to reduce, the proposed rule change would result in a reduction of the total fees charged under these sections for completing the Regulatory Element at a test center. FINRA has filed the proposed rule change for immediate effectiveness. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(5) of the Act,\8\ which requires, among other things, that FINRA rules provide for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system that FINRA operates or controls. The proposed rule change reduces the session fee for participants who are eligible to complete their CE Regulatory Element session at a test center, and it aligns the session fee for such participants with the session fee for participants who complete their session through the CE Online System. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78o-3(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. As described above, participants who need an accommodation pursuant to the Americans with Disabilities Act may apply for an accommodation and complete their CE Regulatory Element session at a test center. FINRA is proposing to reduce the session fee for a test center-based session of the CE Regulatory Element for such participants. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor 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) of the Act \9\ and paragraph (f)(2) of Rule 19b-4 thereunder.\10\ 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-FINRA-2016-025 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-2016-025. 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., [[Page 46135]] 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-2016-025, and should be submitted on or before August 5, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-16722 Filed 7-14-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 136 / Friday, July 15, 2016 / Notices 46133
as the proposal provides, when it Commission and any person, other than For the Commission, by the Division of
believes it is necessary in the interests those that may be withheld from the Trading and Markets, pursuant to delegated
of a fair and orderly market. The public in accordance with the authority.35
Commission believes that the ability to provisions of 5 U.S.C. 552, will be Robert W. Errett,
exercise such discretion can be available for Web site viewing and Deputy Secretary.
important in situations when, for printing in the Commission’s Public [FR Doc. 2016–16715 Filed 7–14–16; 8:45 am]
example, the primary market for an Reference Room, 100 F Street NE., BILLING CODE 8011–01–P
options class is unable to open due to Washington, DC 20549 on official
a systems or technical issue or if some business days between the hours of
other unanticipated circumstance arises. 10:00 a.m. and 3:00 p.m. Copies of the SECURITIES AND EXCHANGE
The Commission notes that it has filing also will be available for COMMISSION
previously approved provisions of this inspection and copying at the principal
kind as consistent with the Act.32
office of the Exchange. All comments [Release No. 34–78281; File No. SR–FINRA–
The Commission further believes that
the proposed rule change will provide received will be posted without change; 2016–025]
transparency and enhance investors’ the Commission does not edit personal
understanding of the operation of the identifying information from Self-Regulatory Organizations;
Exchange’s opening process. For these submissions. You should submit only Financial Industry Regulatory
reasons, the Commission believes that information that you wish to make Authority, Inc.; Notice of Filing and
the proposed rule change, as modified available publicly. All submissions Immediate Effectiveness of a Proposed
by Amendment No. 1, is consistent with should refer to File Number SR– Rule Change Relating to the Fee for
the Act. NYSEARCA–2016–49 and should be the Regulatory Element of Continuing
submitted by August 5, 2016. Education
IV. Solicitation of Comments on
Amendment No. 1 V. Accelerated Approval of Proposed July 11, 2016.
Interested persons are invited to Rule Change, as Modified by Pursuant to Section 19(b)(1) of the
submit written data, views, and Amendment No. 1 Securities Exchange Act of 1934
arguments concerning the foregoing, The Commission finds good cause to (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
including whether Amendment No. 1 to notice is hereby given that on July 1,
approve the proposed rule change, as
the proposed rule change is consistent 2016, Financial Industry Regulatory
modified by Amendment No. 1, prior to
with the Exchange Act. Comments may Authority, Inc. (‘‘FINRA’’) filed with the
the 30th day after the date of
be submitted by any of the following Securities and Exchange Commission
methods: publication of notice of Amendment
No. 1 in the Federal Register. As (‘‘SEC’’ or ‘‘Commission’’) the proposed
Electronic Comments discussed above, Amendment No. 1 rule change as described in Items I, II,
• Use the Commission’s Internet clarifies how the Exchange would and III below, which Items have been
comment form (http://www.sec.gov/ determine the opening price upon prepared by FINRA. FINRA has
rules/sro.shtml); or dissemination of an NBBO from OPRA, designated the proposed rule change as
• Send an email to rule- an in particular specifies the ‘‘establishing or changing a due, fee or
comments@sec.gov. Please include File circumstances in which ‘‘at or nearest to other charge’’ under Section
Number SR–NYSEARCA–2016–49 on the midpoint’’ pricing is utilized during 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
the subject line. the Auction Process. Furthermore, the 4(f)(2) thereunder,4 which renders the
Commission believes it is appropriate to proposal effective upon receipt of this
Paper Comments filing by the Commission. The
have these changes incorporated into
• Send paper comments in triplicate the rules of the Exchange concurrently Commission is publishing this notice to
to Secretary, Securities and Exchange with the changes discussed in the solicit comments on the proposed rule
Commission, 100 F Street NE., change from interested persons.
original filing.
Washington, DC 20549–1090.
Accordingly, the Commission finds I. Self-Regulatory Organization’s
All submissions should refer to File
good cause, pursuant to Section 19(b)(2) Statement of the Terms of the Substance
Number SR–NYSEARCA–2016–49. This
of the Exchange Act,33 to approve the of the Proposed Rule Change
file number should be included on the
subject line if email is used. To help the proposed rule change, as modified by
FINRA is proposing to amend Section
Commission process and review your Amendment No. 1 on an accelerated
4 of Schedule A to the FINRA By-Laws
comments more efficiently, please use basis.
to address the transition of the
only one method. The Commission will VI. Conclusion Regulatory Element of Continuing
post all comments on the Commission’s Education (‘‘CE’’) to the FINRA CE
Internet Web site (http://www.sec.gov/ IT IS THEREFORE ORDERED, Online System®.
rules/sro.shtml). Copies of the pursuant to Section 19(b)(2) of the
submission, all subsequent The text of the proposed rule change
Exchange Act,34 that the proposed rule
amendments, all written statements is available on FINRA’s Web site at
change (SR–NYSEArca–2016–49), as
with respect to the proposed rule http://www.finra.org, at the principal
modified by Amendment No. 1 thereto,
sradovich on DSK3GMQ082PROD with NOTICES
change that are filed with the office of FINRA and at the
be, and it hereby is, approved on an
Commission, and all written Commission’s Public Reference Room.
accelerated basis.
communications relating to the
proposed rule change between the 35 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
32 See, e.g., Securities Exchange Act Release No. 2 17 CFR 240.19b–4.
33 15 U.S.C. 78s(b)(2). 3 15 U.S.C. 78s(b)(3)(A)(ii).
71651 (March 5, 2014), 79 FR 13693 (March 11,
2014) (SR–BATS–2014–003). 34 15 U.S.C. 78s(b)(2). 4 17 CFR 240.19b–4(f)(2).
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![Federal Register / Vol. 81, No. 136 / Friday, July 15, 2016 / Notices 46135
Washington, DC 20549 on official II. Self-Regulatory Organization’s submitted through designated BX
business days between the hours of Statement of the Purpose of, and protocols, as specified by the Exchange,
10:00 a.m. and 3:00 p.m. Copies of such Statutory Basis for, the Proposed Rule during a specified time period not to
filing also will be available for Change exceed 15 seconds (‘‘Percentage-Based
inspection and copying at the principal In its filing with the Commission, the Specified Time Period’’).5
office of FINRA. All comments received Exchange included statements For each series in an option, the
will be posted without change; the concerning the purpose of and basis for System determines: (i) The percentage
Commission does not edit personal the proposed rule change and discussed that the number of contracts executed in
identifying information from any comments it received on the that series represents relative to the BX
submissions. You should submit only proposed rule change. The text of these Options Market Maker’s disseminated
information that you wish to make statements may be examined at the size of each side in that series (‘‘Series
available publicly. All submissions places specified in Item IV below. The Percentage’’); and (ii) the sum of the
should refer to File Number SR–FINRA– Exchange has prepared summaries, set Series Percentage in the option issue
2016–025, and should be submitted on forth in sections A, B, and C below, of (‘‘Issue Percentage’’). The Exchange
or before August 5, 2016. the most significant aspects of such proposes herein to replace the term
For the Commission, by the Division of statements. ‘‘disseminated size’’ with the more
Trading and Markets, pursuant to delegated precise phrase ‘‘number of contracts
authority.11
A. Self-Regulatory Organization’s available at the time of execution plus
Statement of the Purpose of, and the number of contracts executed in
Robert W. Errett,
Statutory Basis for, the Proposed Rule unexpired prior executions.’’
Deputy Secretary. Change The System tracks and calculates the
[FR Doc. 2016–16722 Filed 7–14–16; 8:45 am]
1. Purpose net impact of positions in the same
BILLING CODE 8011–01–P
option issue during the Percentage-
The Exchange proposes to amend BX Based Specified Time Period.
Rules at Chapter VII, Section 6(f), Specifically, the System tracks
SECURITIES AND EXCHANGE entitled ‘‘Automated Removal of
transactions, i.e., the sum of buy-side
COMMISSION Quotes’’ to modify the minimum
put percentages, the sum of sell-side put
Specified Percentage (as described
percentages, the sum of buy-side call
[Release No. 34–78286; File No. SR–BX– below). A BX Options Market Maker 3
percentages, and the sum of sell-side
2016–032] sets the Specified Percentage to enhance
call percentages. The System then
its risk management for an underlying
Self-Regulatory Organizations; calculates the absolute value of the
security as market conditions warrant,
NASDAQ BX, Inc.; Notice of Filing and difference between the buy-side puts
based on its own risk tolerance level
Immediate Effectiveness of Proposed and the sell-side puts plus the absolute
and quoting behavior. The Exchange
Rule Change Relating to the value of the difference between the buy-
proposes to permit the BX Options
Automated Removal of Quotes Market Maker to set the Specified side calls and the sell-side calls. If the
Percentage more broadly, no less than Issue Percentage, rounded to the nearest
July 11, 2016.
1%, with this rule change. The integer, equals or exceeds a percentage
Pursuant to Section 19(b)(1) of the Exchange also proposes to replace the established by the BX Options Market
Securities Exchange Act of 1934 definition of ‘‘disseminated size’’ 4 with Maker, not less than 100% (‘‘Specified
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 a quantitative description to add Percentage’’), the System automatically
notice is hereby given that on July 1, transparency with respect to the removes a BX Options Market Maker’s
2016, NASDAQ BX, Inc. (‘‘BX’’ or calculation of Series Percentage. quotes in all series of an underlying
‘‘Exchange’’) filed with the Securities security submitted through designated
and Exchange Commission (‘‘SEC’’ or Background BX protocols, as specified by the
‘‘Commission’’) the proposed rule Today, Chapter VII, Section 6(f) Exchange, during the Percentage-Based
change as described in Items I and II permits BX Options Market Makers to Specified Time.
below, which Items have been prepared monitor risk arising from multiple The Percentage-Based Specified Time
by the Exchange. The Commission is executions across multiple options Period commences for an option every
publishing this notice to solicit series of a single underlying security. A time an execution occurs in any series
comments on the proposed rule change BX Options Market Maker may provide in such option and continues until the
from interested persons. a specified time period and a specified System removes quotes as described in
percentage by which the Exchange’s Chapter VII, Section 6(f)(iv) or (v) or the
I. Self-Regulatory Organization’s System will automatically remove a BX Percentage-Based Specified Time Period
Statement of the Terms of Substance of Options Market Maker’s quotes in all expires. The Percentage-Based Specified
the Proposed Rule Change series of an underlying security Time Period operates on a rolling basis
The Exchange proposes to amend among all series in an option in that
Chapter VII, Section 6(f), entitled
3 The term ‘‘BX Options Market Maker’’ or there may be multiple Percentage-Based
‘‘Automated Removal of Quotes.’’
‘‘Options Market Maker’’ (herein ‘‘BX Options Specified Time Periods occurring
Market Maker’’) means an Options Participant simultaneously and such Percentage-
The text of the proposed rule change registered with the Exchange for the purpose of
making markets in options contracts traded on the Based Specified Time periods may
is available on the Exchange’s Web site
Exchange and that is vested with the rights and overlap.
sradovich on DSK3GMQ082PROD with NOTICES
at http://nasdaqomxbx.cchwall responsibilities specified in Chapter VII of these
street.com/, at the principal office of the Rules.’’ [sic] See BX Rules at Chapter I, Section Proposal
Exchange, and at the Commission’s 1(a)(9).
The Exchange proposes to lower the
Public Reference Room. 4 See Securities Exchange Act Release No. 76317
minimum Specified Percentage, which
(October 30, 2015), 80 FR 68586 at 68587
(November 5, 2015) (SR–BX–2015–060). The
11 17 CFR 200.30–3(a)(12). Exchange defined disseminated size in this rule 5 A specified time period commences for an
1 15 U.S.C. 78s(b)(1). change in footnote 12, as the original size quoted option when a transaction occurs in any series in
2 17 CFR 240.19b–4. by the Participant. such option.
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Document Created: 2016-07-15 02:53:02
Document Modified: 2016-07-15 02:53:02
| 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 | 81 FR 46133 |
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