81 FR 4693 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Subsection (a)(7) of Rule 7003, Registration and Processing Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 17 (January 27, 2016)

Page Range		4693-4695
FR Document		2016-01531
Federal Register, Volume 81 Issue 17 (Wednesday, January 27, 2016)
[Federal Register Volume 81, Number 17 (Wednesday, January 27, 2016)]
[Notices]
[Pages 4693-4695]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01531]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76947; File No. SR-BX-2016-004]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Subsection (a)(7) of Rule 7003, Registration and Processing Fees

January 21, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that, on January 13, 2016, NASDAQ OMX BX, Inc. (``BX'' or ``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 subsection (a)(7) of Rule 7003, 
Registration and Processing Fees, as described further below.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqomxbx.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 section of Rule 7003 to provide that the continuing education 
session fee will be $55 if the session is conducted via Web delivery. 
The continuing education session fee will remain $100 if the session is 
conducted at a testing center. The Exchange is deleting the $60 session 
fee for the S501 Regulatory Element, which FINRA discontinued as of 
January 4, 2016.\3\
---------------------------------------------------------------------------

    \3\ Currently, Rule 7003(a) provides that certain fees will be 
collected and retained by FINRA via the Web CRD registration system 
for the registration of associated persons of Exchange members that 
are not also FINRA members. Under Rule 7003(a)(7), FINRA collects 
and retains a $100 session fee for each individual who is required 
to complete the Regulatory Element of the Continuing Education 
Requirements pursuant to Exchange Rule 1120 (S101 and S201) and a 
$60 session fee for each individual who is required to complete the 
Proprietary Trader Regulatory Element (S501).
---------------------------------------------------------------------------

    On August 8, 2015, the Commission approved SR-FINRA-2015-015 
relating proposed changes to FINRA Rule 1250 to provide a Web-based 
delivery method for completing the Regulatory Element

[[Page 4694]]

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 S201 for Registered Principals 
and Supervisors is now administered through Web-based delivery or such 
other technological manner and format as specified by FINRA. FINRA 
launched Web-based delivery of the S101 Regulatory Element program on 
January 4, 2016.\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).
    \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 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, under the SR-FINRA-2015-
015 approval order the fee for Web-based delivery of the Regulatory 
Elements of the S101 and the S201 Continuing Education programs is now 
$55.
    The Exchange currently utilizes FINRA's Continuing Education 
programs for its own continuing education requirements which include 
the S101 and S201 programs. Consistent with SR-FINRA-2015-015, the 
Exchange recently filed a separate proposed rule change relating to 
continuing education.\6\ In that filing, the Exchange proposed 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 for the S101 and the S201. Consistent with SR-FINRA-2015-015 
this proposed rule change would amend Rule 7003 to provide that the 
following fees will be collected and retained by FINRA for the 
registration of associated persons of Exchange members that are not 
also FINRA members: A $100 session fee ($55 if the Continuing Education 
is Web-based) for each individual who is required to complete the 
Regulatory Element of the Continuing Education Requirements pursuant to 
Exchange Rule 1120 (S101 and S201). The proposal will eliminate the $60 
session fee for each individual who is required to complete the 
Proprietary Trader Regulatory Element (S501).\7\
---------------------------------------------------------------------------

    \6\ See SR-BX-2016-02 [sic].
    \7\ As noted above, the S501 Proprietary Trader Regulatory 
Element was discontinued January 4, 2016. The Exchange anticipates 
filing a subsequent rule change to eliminate the reference to the 
$100 session fee when the test center option is eliminated for the 
S101 and S201 Regulatory Elements.
---------------------------------------------------------------------------

 2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\8\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \9\ requirements that the rules of 
an exchange 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 regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest. 
Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \10\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ Id.
---------------------------------------------------------------------------

    Web-based delivery will remove time parameters that exist with 
respect to taking continuing education at testing centers. Having 
additional time to take continuing education may result in better 
learning outcomes, which should enhance investor protection. In 
addition, the option to have Web-based delivery of the Regulatory 
Element of the Continuing Education program at a reduced cost makes it 
easier and less costly for registrants to participate in the market. 
Accordingly, the Exchange believes that Web-based delivery of the 
Regulatory Element of the Continuing Education Program and reducing the 
costs of continuing education in general are goals that are consistent 
with the Act.

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. As FINRA has stated, the 
proposed rule change is specifically intended to reduce the burdens of 
continuing education on market participants while preserving the 
integrity of the Continuing Education program.

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-BX-2016-004 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-BX-2016-004. This file 
number should be included on the subject line if email is used. To help 
the

[[Page 4695]]

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-BX-2016-004 and should be 
submitted on or before February 17, 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. 2016-01531 Filed 1-26-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 17 / Wednesday, January 27, 2016 / Notices 4693

any burden on competition not Internet Web site (http://www.sec.gov/ Commission is publishing this notice to
necessary or appropriate in furtherance rules/sro.shtml). Copies of the solicit comments on the proposed rule
of the purposes of the Act. As FINRA submission, all subsequent change from interested persons.
has stated, the proposed rule change is amendments, all written statements
I. Self-Regulatory Organization’s
specifically intended to reduce the with respect to the proposed rule
Statement of the Terms of Substance of
burdens of continuing education on change that are filed with the
the Proposed Rule Change
market participants while preserving the Commission, and all written
integrity of the Continuing Education communications relating to the The Exchange proposes to amend
program. proposed rule change between the subsection (a)(7) of Rule 7003,
Commission and any person, other than Registration and Processing Fees, as
C. Self-Regulatory Organization’s those that may be withheld from the described further below.
Statement on Comments on the public in accordance with the The text of the proposed rule change
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be is available on the Exchange’s Web site
Members, Participants, or Others available for Web site viewing and at http://
No written comments were either printing in the Commission’s Public nasdaqomxbx.cchwallstreet.com/, at the
solicited or received. Reference Room, 100 F Street NE., principal office of the Exchange, and at
Washington, DC 20549, on official the Commission’s Public Reference
III. Date of Effectiveness of the Room.
business days between the hours of
Proposed Rule Change and Timing for
10:00 a.m. and 3:00 p.m. Copies of the II. Self-Regulatory Organization’s
Commission Action
filing also will be available for Statement of the Purpose of, and
The foregoing rule change has become inspection and copying at the principal Statutory Basis for, the Proposed Rule
effective pursuant to Section office of the Exchange. All comments Change
19(b)(3)(A)(ii) of the Act.11 received will be posted without change;
At any time within 60 days of the the Commission does not edit personal In its filing with the Commission, the
filing of the proposed rule change, the identifying information from Exchange included statements
Commission summarily may submissions. You should submit only concerning the purpose of and basis for
temporarily suspend such rule change if information that you wish to make the proposed rule change and discussed
it appears to the Commission that such available publicly. All submissions any comments it received on the
action is: (i) Necessary or appropriate in should refer to File Number SR– proposed rule change. The text of these
the public interest; (ii) for the protection NASDAQ–2016–006 and should be statements may be examined at the
of investors; or (iii) otherwise in submitted on or before February 17, places specified in Item IV below. The
furtherance of the purposes of the Act. 2016. Exchange has prepared summaries, set
If the Commission takes such action, the forth in sections A, B, and C below, of
For the Commission, by the Division of the most significant aspects of such
Commission shall institute proceedings Trading and Markets, pursuant to delegated
to determine whether the proposed rule statements.
authority.12
should be approved or disapproved. Brent J. Fields, A. Self-Regulatory Organization’s
IV. Solicitation of Comments Secretary. Statement of the Purpose of, and
[FR Doc. 2016–01530 Filed 1–26–16; 8:45 am] Statutory Basis for, the Proposed Rule
Interested persons are invited to Change
BILLING CODE 8011–01–P
submit written data, views and
arguments concerning the foregoing, 1. Purpose
including whether the proposed rule SECURITIES AND EXCHANGE The Exchange proposes to make
change is consistent with the Act. COMMISSION changes to the continuing education
Comments may be submitted by any of fees section of Rule 7003 to provide that
the following methods: [Release No. 34–76947; File No. SR–BX– the continuing education session fee
2016–004] will be $55 if the session is conducted
Electronic Comments
Self-Regulatory Organizations; The via Web delivery. The continuing
• Use the Commission’s Internet education session fee will remain $100
comment form (http://www.sec.gov/ NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of if the session is conducted at a testing
rules/sro.shtml); or center. The Exchange is deleting the $60
• Send an email to rule-comments@ Proposed Rule Change To Amend
Subsection (a)(7) of Rule 7003, session fee for the S501 Regulatory
sec.gov. Please include File Number SR– Element, which FINRA discontinued as
NASDAQ–2016–006 on the subject line. Registration and Processing Fees
of January 4, 2016.3
Paper Comments January 21, 2016. On August 8, 2015, the Commission
Pursuant to Section 19(b)(1) of the approved SR–FINRA–2015–015 relating
• Send paper comments in triplicate Securities Exchange Act of 1934 proposed changes to FINRA Rule 1250
to Secretary, Securities and Exchange (‘‘Act’’),1 and Rule 19b–4 2 thereunder, to provide a Web-based delivery method
Commission, 100 F Street NE., notice is hereby given that, on January for completing the Regulatory Element
Washington, DC 20549–1090. 13, 2016, NASDAQ OMX BX, Inc. (‘‘BX’’
All submissions should refer to File or ‘‘Exchange’’) filed with the Securities 3 Currently, Rule 7003(a) provides that certain

Number SR–NASDAQ–2016–006. This
asabaliauskas on DSK5VPTVN1PROD with NOTICES

and Exchange Commission (‘‘SEC’’ or fees will be collected and retained by FINRA via the
file number should be included on the Web CRD registration system for the registration of
‘‘Commission’’) the proposed rule associated persons of Exchange members that are
subject line if email is used. To help the change as described in Items I, II, and not also FINRA members. Under Rule 7003(a)(7),
Commission process and review your III below, which Items have been FINRA collects and retains a $100 session fee for
comments more efficiently, please use prepared by the Exchange. The each individual who is required to complete the
only one method. The Commission will Regulatory Element of the Continuing Education
Requirements pursuant to Exchange Rule 1120
post all comments on the Commission’s 12 17 CFR 200.30–3(a)(12). (S101 and S201) and a $60 session fee for each
1 15 U.S.C. 78s(b)(1). individual who is required to complete the
11 15 U.S.C. 78s(b)(3)(A)(ii). 2 17 CFR 240.19b–4. Proprietary Trader Regulatory Element (S501).

VerDate Sep<11>2014 19:41 Jan 26, 2016 Jkt 238001 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 E:\FR\FM\27JAN1.SGM 27JAN1
4694 Federal Register / Vol. 81, No. 17 / Wednesday, January 27, 2016 / Notices

of the continuing education Element of the Continuing Education B. Self-Regulatory Organization’s
requirements.4 Pursuant to the rule Requirements pursuant to Exchange Statement on Burden on Competition
change, effective October 1, 2015, the Rule 1120 (S101 and S201). The The Exchange does not believe that
Regulatory Element of the Continuing proposal will eliminate the $60 session the proposed rule change will impose
Education Programs for the S201 for fee for each individual who is required any burden on competition not
Registered Principals and Supervisors is to complete the Proprietary Trader necessary or appropriate in furtherance
now administered through Web-based Regulatory Element (S501).7 of the purposes of the Act. As FINRA
delivery or such other technological has stated, the proposed rule change is
manner and format as specified by 2. Statutory Basis
specifically intended to reduce the
FINRA. FINRA launched Web-based burdens of continuing education on
The Exchange believes the proposed
delivery of the S101 Regulatory Element market participants while preserving the
program on January 4, 2016.5 rule change is consistent with the Act
and the rules and regulations integrity of the Continuing Education
Pursuant to the approval order for program.
SR–FINRA–2015–015, the fee for test- thereunder applicable to the Exchange
center delivery of the Regulatory and, in particular, the requirements of C. Self-Regulatory Organization’s
Element of the S201 Continuing Section 6(b) of the Act.8 Specifically, Statement on Comments on the
Education programs will continue to be the Exchange believes the proposed rule Proposed Rule Change Received From
$100 per session through no later than change is consistent with the Section Members, Participants, or Others
six months after January 4, 2016 when 6(b)(5) 9 requirements that the rules of No written comments were either
the program will no longer be offered at an exchange be designed to prevent solicited or received.
testing centers. However, under the SR– fraudulent and manipulative acts and
FINRA–2015–015 approval order the fee practices, to promote just and equitable III. Date of Effectiveness of the
for Web-based delivery of the principles of trade, to foster cooperation Proposed Rule Change and Timing for
Regulatory Elements of the S101 and the Commission Action
and coordination with persons engaged
S201 Continuing Education programs is in regulating, clearing, settling, The foregoing rule change has become
now $55. processing information with respect to, effective pursuant to Section
The Exchange currently utilizes and facilitating transactions in 19(b)(3)(A)(ii) of the Act.11
FINRA’s Continuing Education securities, to remove impediments to At any time within 60 days of the
programs for its own continuing filing of the proposed rule change, the
and perfect the mechanism of a free and
education requirements which include Commission summarily may
open market and a national market
the S101 and S201 programs. Consistent temporarily suspend such rule change if
system, and, in general, to protect
with SR–FINRA–2015–015, the it appears to the Commission that such
investors and the public interest. action is: (i) Necessary or appropriate in
Exchange recently filed a separate
proposed rule change relating to Additionally, the Exchange believes the the public interest; (ii) for the protection
continuing education.6 In that filing, the proposed rule change is consistent with of investors; or (iii) otherwise in
Exchange proposed to follow the the Section 6(b)(5) 10 requirement that furtherance of the purposes of the Act.
changes set forth in SR–FINRA–2015– the rules of an exchange not be designed If the Commission takes such action, the
015 with respect to Web-based delivery to permit unfair discrimination between Commission shall institute proceedings
of the Regulatory Element of the customers, issuers, brokers, or dealers. to determine whether the proposed rule
Continuing Education programs for the Web-based delivery will remove time should be approved or disapproved.
S101 and the S201. Consistent with SR– parameters that exist with respect to IV. Solicitation of Comments
FINRA–2015–015 this proposed rule taking continuing education at testing
change would amend Rule 7003 to Interested persons are invited to
centers. Having additional time to take
provide that the following fees will be submit written data, views and
continuing education may result in
collected and retained by FINRA for the arguments concerning the foregoing,
better learning outcomes, which should
registration of associated persons of including whether the proposed rule
enhance investor protection. In change is consistent with the Act.
Exchange members that are not also addition, the option to have Web-based
FINRA members: A $100 session fee Comments may be submitted by any of
delivery of the Regulatory Element of the following methods:
($55 if the Continuing Education is
the Continuing Education program at a
Web-based) for each individual who is Electronic Comments
reduced cost makes it easier and less
required to complete the Regulatory
costly for registrants to participate in the • Use the Commission’s Internet
4 See Securities Exchange Act Release No. 75581 market. Accordingly, the Exchange comment form (http://www.sec.gov/
(July 31, 2015), 80 FR 47018 (August 6, 2015) believes that Web-based delivery of the rules/sro.shtml); or
(Order Approving a Proposed Rule Change to Regulatory Element of the Continuing • Send an email to rule-comments@
Provide a Web-based Delivery Method for Education Program and reducing the sec.gov. Please include File Number SR–
Completing the Regulatory Element of the BX–2016–004 on the subject line.
Continuing Education Requirements) (SR–FINRA– costs of continuing education in general
2015–015). are goals that are consistent with the Paper Comments
5 The Regulatory Element of the S101 and S201
Act.
Continuing Education Programs will continue to be • Send paper comments in triplicate
offered at testing centers until no later than six to Secretary, Securities and Exchange
asabaliauskas on DSK5VPTVN1PROD with NOTICES

7 As noted above, the S501 Proprietary Trader
months after January 4, 2016. Test-center delivery Commission, 100 F Street NE.,
of the Regulatory Element will be phased out by no Regulatory Element was discontinued January 4,
later than six months after January 4, 2016. See 2016. The Exchange anticipates filing a subsequent Washington, DC 20549–1090.
Securities Exchange Act Release No. 75581 (July 31, rule change to eliminate the reference to the $100 All submissions should refer to File
2015), 80 FR 47018 (August 6, 2015) (Order session fee when the test center option is
eliminated for the S101 and S201 Regulatory
Number SR–BX–2016–004. This file
Approving a Proposed Rule Change To Provide a
Web-Based Delivery Method for Completing the Elements. number should be included on the
Regulatory Element of the Continuing Education) 8 15 U.S.C. 78f(b). subject line if email is used. To help the
(SR–FINRA–2015–015). 9 15 U.S.C. 78f(b)(5).
6 See SR–BX–2016–02 [sic]. 10 Id. 11 15 U.S.C. 78s(b)(3)(A)(ii).

VerDate Sep<11>2014 19:41 Jan 26, 2016 Jkt 238001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 E:\FR\FM\27JAN1.SGM 27JAN1
Federal Register / Vol. 81, No. 17 / Wednesday, January 27, 2016 / Notices 4695

Commission process and review your (‘‘Act’’),1 and Rule 19b–4 thereunder,2 managed funds. The Shares will be
comments more efficiently, please use notice is hereby given that on January offered by the Trust, which was
only one method. The Commission will 12, 2016, BATS Exchange, Inc. established as a Delaware statutory trust
post all comments on the Commission’s (‘‘Exchange’’ or ‘‘BATS’’) filed with the on June 21, 2011. The Trust is registered
Internet Web site (http://www.sec.gov/ Securities and Exchange Commission with the Commission as an open-end
rules/sro.shtml). Copies of the (‘‘Commission’’) the proposed rule investment company and has filed a
submission, all subsequent change as described in Items I and II registration statement on behalf of the
amendments, all written statements below, which Items have been prepared Funds on Form N–1A (‘‘Registration
with respect to the proposed rule by the Exchange. The Commission is Statement’’) with the Commission.4
change that are filed with the publishing this notice to solicit
Description of the Shares and the Funds
Commission, and all written comments on the proposed rule change
communications relating to the from interested persons. BlackRock Fund Advisors is the
proposed rule change between the investment adviser (‘‘BFA’’ or
I. Self-Regulatory Organization’s ‘‘Adviser’’) to the Funds.5 State Street
Commission and any person, other than Statement of the Terms of Substance of
those that may be withheld from the Bank and Trust Company is the
the Proposed Rule Change administrator, custodian, and transfer
public in accordance with the
provisions of 5 U.S.C. 552, will be The Exchange is proposing to a rule agent (‘‘Administrator,’’ ‘‘Custodian,’’
available for Web site viewing and change to list and trade shares of the and ‘‘Transfer Agent,’’ respectively) for
printing in the Commission’s Public iShares iBonds Dec 2023 AMT-Free the Trust. BlackRock Investments, LLC
Reference Room, 100 F Street NE., Muni Bond ETF, iShares iBonds Dec serves as the distributor (‘‘Distributor’’)
Washington, DC 20549, on official 2024 AMT-Free Muni Bond ETF, for the Trust.
business days between the hours of iShares iBonds Dec 2025 AMT-Free BATS Rule 14.11(i)(7) provides that, if
10:00 a.m. and 3:00 p.m. Copies of the Muni Bond ETF, and iShares iBonds the investment adviser to the
filing also will be available for Dec 2026 AMT-Free Muni Bond ETF investment company issuing Managed
inspection and copying at the principal (each a ‘‘Fund’’ or, collectively, the Fund Shares is affiliated with a broker-
office of the Exchange. All comments ‘‘Funds’’) of the iShares U.S. ETF Trust dealer, such investment adviser shall
received will be posted without change; (the ‘‘Trust’’) under BATS Rule 14.11(i) erect a ‘‘fire wall’’ between the
the Commission does not edit personal (‘‘Managed Fund Shares’’). The shares of investment adviser and the broker-
identifying information from the Funds are referred to herein as the dealer with respect to access to
submissions. You should submit only ‘‘Shares.’’ information concerning the composition
information that you wish to make The text of the proposed rule change and/or changes to such investment
available publicly. All submissions is available at the Exchange’s Web site company portfolio.6 In addition, Rule
should refer to File Number SR–BX– at www.batstrading.com, at the
2016–004 and should be submitted on principal office of the Exchange, and at (August 30, 2011), 76 FR 55148 (September 6, 2011)
the Commission’s Public Reference (SR–BATS–2011–018).
or before February 17, 2016. 4 See Registration Statement on Form N–1A for
Room. the Trust, dated November 2, 2015 (File Nos. 333–
For the Commission, by the Division of
II. Self-Regulatory Organization’s 179904 and 811–22649). The descriptions of the
Trading and Markets, pursuant to delegated Funds and the Shares contained herein are based,
authority.12 Statement of the Purpose of, and in part, on information in the Registration
Brent J. Fields, Statutory Basis for, the Proposed Rule Statement. The Commission has issued an order
Secretary. Change granting certain exemptive relief to the Trust under
the Investment Company Act of 1940 (15 U.S.C.
[FR Doc. 2016–01531 Filed 1–26–16; 8:45 am] In its filing with the Commission, the 80a–1) (‘‘1940 Act’’) (the ‘‘Exemptive Order’’). See
BILLING CODE 8011–01–P Exchange included statements Investment Company Act Release No. 29571
concerning the purpose of and basis for (January 24, 2011) (File No. 812–13601).
5 BFA is an indirect wholly owned subsidiary of
the proposed rule change and discussed
BlackRock, Inc.
SECURITIES AND EXCHANGE any comments it received on the 6 An investment adviser to an open-end fund is
COMMISSION proposed rule change. The text of these required to be registered under the Investment
statements may be examined at the Advisers Act of 1940 (the ‘‘Advisers Act’’). As a
places specified in Item IV below. The result, the Adviser and its related personnel are
[Release No. 34–76954; File No. SR–BATS–
subject to the provisions of Rule 204A–1 under the
2016–02] Exchange has prepared summaries, set Advisers Act relating to codes of ethics. This Rule
forth in Sections A, B, and C below, of requires investment advisers to adopt a code of
Self-Regulatory Organizations; BATS the most significant parts of such ethics that reflects the fiduciary nature of the
Exchange, Inc.; Notice of Filing of a statements. relationship to clients as well as compliance with
Proposed Rule Change to Rule 14.11(i), other applicable securities laws. Accordingly,
Managed Fund Shares, to List and A. Self-Regulatory Organization’s procedures designed to prevent the communication
Statement of the Purpose of, and and misuse of non-public information by an
Trade Shares of the iShares iBonds investment adviser must be consistent with Rule
Dec 2023 AMT-Free Muni Bond ETF, Statutory Basis for, the Proposed Rule 204A–1 under the Advisers Act. In addition, Rule
iShares iBonds Dec 2024 AMT-Free Change 206(4)–7 under the Advisers Act makes it unlawful
for an investment adviser to provide investment
Muni Bond ETF, iShares iBonds Dec 1. Purpose advice to clients unless such investment adviser has
2025 AMT-Free Muni Bond ETF, and The Exchange proposes to list and (i) adopted and implemented written policies and
asabaliauskas on DSK5VPTVN1PROD with NOTICES

iShares iBonds Dec 2026 AMT-Free trade the Shares under BATS Rule
procedures reasonably designed to prevent
Muni Bond ETF of the iShares U.S. ETF violation, by the investment adviser and its
14.11(i), which governs the listing and supervised persons, of the Advisers Act and the
Trust trading of Managed Fund Shares on the Commission rules adopted thereunder; (ii)
Exchange.3 The Funds will be actively implemented, at a minimum, an annual review
January 21, 2016. regarding the adequacy of the policies and
Pursuant to Section 19(b)(1) of the 1 15
procedures established pursuant to subparagraph (i)
U.S.C. 78s(b)(1). above and the effectiveness of their
Securities Exchange Act of 1934 2 17CFR 240.19b–4. implementation; and (iii) designated an individual
3 The Commission approved BATS Rule 14.11(i) (who is a supervised person) responsible for
12 17 CFR 200.30–3(a)(12). in Securities Exchange Act Release No. 65225 Continued

VerDate Sep<11>2014 19:41 Jan 26, 2016 Jkt 238001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\27JAN1.SGM 27JAN1
Document Created: 2018-02-02 12:39:53
Document Modified: 2018-02-02 12:39:53
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 4693