81 FR 48879 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change for a New Rule 346 Prohibiting Association by Member Organizations, Principal Executives, Approved Persons, and Persons Associated With a Member Organization or Control Persons of Member Organizations With Persons Subject to a Statutory Disqualification
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 143 (July 26, 2016)
Federal Register Volume 81, Issue 143 (July 26, 2016)
| Page Range | 48879-48882 | |
| FR Document | 2016-17583 |
[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)] [Notices] [Pages 48879-48882] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-17583] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78371; File No. SR-NYSE-2016-43] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change for a New Rule 346 Prohibiting Association by Member Organizations, Principal Executives, Approved Persons, and Persons Associated With a Member Organization or Control Persons of Member Organizations With Persons Subject to a Statutory Disqualification July 20, 2016. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that on July 14, 2016, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self- regulatory organization. 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\ 15 U.S.C. 78a. \3\ 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 add a new Rule 346 prohibiting association by member organizations, approved persons, and persons associated with a member organization or control persons of member organizations with persons subject to a statutory disqualification. The proposed rule change is available on the Exchange's Web site at www.nyse.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 self-regulatory organization 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 those 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, [[Page 48880]] of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes a new Rule 346 prohibiting association by member organizations, principal executives, approved persons, and persons associated with a member organization or control persons of member organizations with persons subject to a statutory disqualification. Background In 2007, the Exchange and FINRA \4\ entered into an agreement (the ``Agreement'') pursuant to Rule 17d-2 under the Act to reduce regulatory duplication by allocating to FINRA certain regulatory responsibilities for NYSE rules and rule interpretations (``FINRA Incorporated NYSE Rules'').\5\ In order to reduce regulatory duplication and relieve firms that are members of the Exchange and FINRA of conflicting or unnecessary regulatory burdens, FINRA has been reviewing and amending the NASD and FINRA Incorporated NYSE Rules in order to create a consolidated FINRA rulebook.\6\ --------------------------------------------------------------------------- \4\ NYSE Regulation, Inc., a former not-for-profit subsidiary of the Exchange, was also a party to the Agreement by virtue of the fact that it performed regulatory functions for the Exchange pursuant to a delegation agreement. See Securities Exchange Act Release No. 53382 (February 27, 2006), 71 FR 11251, 11264-65 (March 6, 2006) (SR-NYSE-2005-77) (approving delegation agreement). The delegation agreement terminated on February 16, 2016, and NYSE Regulation has ceased providing regulatory services to the Exchange, which has re-integrated its regulatory functions. \5\ See Securities Exchange Act Release Nos. 56148 (July 26, 2007), 72 FR 42146 (August 1, 2007) (order approving the Agreement); 56147 (July 26, 2007), 72 FR 42166 (August 1, 2007) (SR-NASD-2007- 054) (order approving the incorporation of certain NYSE Rules as ``Common Rules''). Paragraph 2(b) of the Agreement sets forth procedures regarding proposed changes by FINRA or the Exchange to the substance of any of the Common Rules. \6\ FINRA's rulebook currently has three sets of rules: (1) NASD Rules, (2) FINRA Incorporated NYSE Rules, and (3) consolidated FINRA Rules. The FINRA Incorporated NYSE Rules apply only to those members of FINRA that are also members of the NYSE (``Dual Members''), while the consolidated FINRA Rules apply to all FINRA members. For more information about the FINRA rulebook consolidation process, see FINRA Information Notice, March 12, 2008. --------------------------------------------------------------------------- As part of the rule consolidation process, in 2010, FINRA adopted NASD Rule 3030 (Outside Business Activities of an Associated Person) as FINRA Rule 3270 (Outside Business Activities of Registered Persons) in the consolidated FINRA rulebook. FINRA also deleted FINRA Incorporated NYSE Rule 346 (Limitations--Employment and Association with Members and Member Organizations) and related interpretations.\7\ In 2011, to correspond with the changes by FINRA, the Exchange adopted FINRA Rule 3270 as NYSE Rule 3270 and deleted Rule 346 in its entirety.\8\ --------------------------------------------------------------------------- \7\ See Securities Exchange Act Release No. 62762 (August 23, 2010), 75 FR 53362 (August 31, 2010) (SR-FINRA-2009-042) (``Release No. 62762''). \8\ See Securities Exchange Act Release No. 64131 (March 28, 2011), 76 FR 18285 (April 1, 2011) (SR-NYSE-2011-12) (``Release No. 64131''). --------------------------------------------------------------------------- Prior to its deletion in 2011, subdivision (f) of Rule 346 provided that, unless permitted by the Exchange, no member, member organization, approved person, person associated with a member organization or any person directly or indirectly controlling, controlled by or under common control with a member or member organization shall have associated with him or it any person who is known, or in the exercise of reasonable care should be known, to be subject to any ``statutory disqualification'' defined in Section 3(a)(39) of the Act.\9\ Because FINRA had previously amended its definition of disqualification in its By-Laws to align with the definition in the Act, FINRA deleted Rule 346(f) as redundant.\10\ When the Exchange adopted FINRA Rule 3270 as NYSE Rule 3270, it deleted Rule 346 in its entirety, including subdivision (f).\11\ The Exchange did not delete the associated rule interpretations, which the Exchange now proposes to delete. --------------------------------------------------------------------------- \9\ See Release No. 62762, 75 FR at 53363. \10\ Id. FINRA also deleted related NYSE Interpretations 346(e)/ 01-03. \11\ See Release No. 64131, 76 FR 18286. --------------------------------------------------------------------------- Proposed Rule Change The Exchange's deletion of Rule 346(f) was inadvertent.\12\ The Exchange accordingly proposes to reintroduce the standards contained in deleted Rule 346(f) as new Rule 346. In particular, proposed Rule 346 would provide that, except as otherwise permitted by the Exchange, no member organization, principal executive, approved person, person associated with a member organization or any person directly or indirectly controlling, controlled by or under common control with a member organization shall have associated with it any person who is known, or in the exercise of reasonable care should be known, to be subject to any ``statutory disqualification'' defined in Section 3(a)(39) of the Act. --------------------------------------------------------------------------- \12\ The processing of new membership applications at the Exchange includes statutory disqualification disclosures and background investigations of prospective member organizations and persons associated with a member organization. Since 2010, review, assessment, and processing of NYSE membership applications has been conducted on behalf of the Exchange by FINRA pursuant to a regulatory services agreement. Although Rule 346(f) was inadvertently deleted in 2011, the Exchange continued to work with FINRA to seek disclosure of and identify persons subject to any statutory disqualification as defined in Section 3(a)(39) of the Act and take appropriate action in individual cases. For example, whenever Exchange staff has reason to believe that a disqualification exists or that a member organization or covered person otherwise fails to meet the eligibility requirements of the Exchange, the Exchange can issue a notice of disqualification or ineligibility under NYSE Rule 9522(a)(1). For purposes of Rule 9522, a ``covered person'' means a member, principal executive, approved person, registered or non-registered employee of a member organization, or other person (excluding a member organization) subject to the Exchange's jurisdiction. See Rule 9521(g). --------------------------------------------------------------------------- The proposed rule text is the same as former Rule 346(f) except that the proposed rule would not use the terms ``member'' or ``employee.'' Under Exchange rules, the term ``member organization'' means a registered broker or dealer (unless exempt pursuant to the Act) that is a member of FINRA or another registered securities exchange.\13\ The term ``member'' means a natural person associated with a member organization that has been approved by the Exchange and designated by such member organization to effect transactions on the floor of the Exchange or any facility thereof.\14\ A ``member'' is not a registered broker-dealer and does not have employees; only member organizations have employees. For purposes of the proposed change, the Exchange proposes to continue using the phrase ``person associated with a member organization'' to indicate employees of a member organization.\15\ The proposed rule would also use the term ``principal executives,'' which replaced ``allied members'' in 2008.\16\ The proposed rule is also substantially similar to Rule 342(e) of the Exchange's affiliate, NYSE MKT LLC.\17\ --------------------------------------------------------------------------- \13\ See Rule 2(b)(i). \14\ See Rule 2(a). \15\ See, e.g., Rule 9000 Series. \16\ See Securities Exchange Act Release No. 58549 (September 15, 2008), 73 FR 54444 (September 19, 2008) (SR-NYSE-2008-80). \17\ MKT LLC Rule 342(e) provides that ``[e]xcept as otherwise permitted by the Exchange, no member, member organization, allied member, approved person, employee, or any person directly or indirectly controlling, controlled by or under common control with a member or member organization shall have associated with him or it any person who is known, or in the exercise of reasonable care should be known, to be subject to any ``statutory disqualification'' defined in Section 3(a)(39) of the Securities Exchange Act of 1934.'' As noted previously, the NYSE eliminated allied members in 2008. See note 16, supra. --------------------------------------------------------------------------- Finally, the Exchange proposes to delete NYSE Rule Interpretations 346(e)/01-03 as unnecessary in light of [[Page 48881]] the adoption of Rule 3270 or duplicative of new proposed Rule 346. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\18\ in general, and Section 6(b)(1) of the Act,\19\ in particular, in that it enables the Exchange to be so organized as to have the capacity to be able to carry out the purposes of the Exchange Act and to comply, and to enforce compliance by its exchange members and persons associated with its exchange members, with the provisions of the Exchange Act, the rules and regulations thereunder, and the rules of the Exchange. Specifically, the Exchange believes that reinstating deleted rule text prohibiting the association of member organizations and related persons with individuals meeting the definition of a ``statutory disqualification'' under the Act supports the objectives of the Act by enabling the Exchange to enforce the prohibitions contained therein regarding association with persons subject to a statutory disqualification, and is thus consistent with Section 6(b)(1). --------------------------------------------------------------------------- \18\ 15 U.S.C. 78f(b). \19\ 15 U.S.C. 78f(b)(1). --------------------------------------------------------------------------- For similar reasons, the Exchange believes that the filing furthers the objectives of Section 6(b)(5) of the Act,\20\ because the proposed rule change would be consistent with and facilitate a governance and regulatory structure that is 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. As discussed above, the Exchange believes that the reintroducing the prohibition on member organizations and related persons from associating with statutory disqualified persons that was inadvertently deleted would remove impediments to and perfect the mechanism of a free and open market by eliminating a regulatory disparity between the rules of the Exchange and FINRA, thereby also further harmonizing those rules. Finally, the Exchange believes that the proposed rule change would not be inconsistent with the public interest and the protection of investors because investors would not be harmed by the reintroduction of a rule previously approved by the Commission that reflects the Act's requirements regarding association with statutorily disqualified persons. --------------------------------------------------------------------------- \20\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\21\ the Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not intended to address competitive issues but rather to achieve greater transparency and consistency between the Exchange's rules and FINRA's requirements concerning statutory disqualification. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \22\ and Rule 19b-4(f)(6) thereunder.\23\ Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(3)(A)(iii). \23\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \24\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\25\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \24\ 17 CFR 240.19b-4(f)(6). \25\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) \26\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \26\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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-NYSE-2016-43 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-NYSE-2016-43. 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 [[Page 48882]] identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSE-2016-43 and should be submitted on or before August 16, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\27\ --------------------------------------------------------------------------- \27\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-17583 Filed 7-25-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices 48879
it easier for retail investors and others unless it displays a currently valid SECURITIES AND EXCHANGE
to contact the Ombudsman control number. No person shall be COMMISSION
electronically, the Commission is subject to any penalty for failing to
developing the Ombudsman Matter comply with a collection of information [Release No. 34–78371; File No. SR–NYSE–
Management System (‘‘OMMS’’), a new, subject to the PRA that does not display 2016–43]
electronic data-collection system for the a valid Office of Management and
receipt, collection, and analysis of Budget control number. Self-Regulatory Organizations; New
inquiries, complaints, and York Stock Exchange LLC; Notice of
recommendations from retail investors Written comments are invited on all Filing and Immediate Effectiveness of
directed to the SEC Ombudsman and aspects of this proposed information Proposed Rule Change for a New Rule
the Office of the Investor Advocate, and collection request, in particular: (a) 346 Prohibiting Association by
invites comment on OMMS. Through Whether this collection of information Member Organizations, Principal
OMMS, members of the public may is necessary for the proper performance Executives, Approved Persons, and
request assistance from the Ombudsman of the functions of the agency, including Persons Associated With a Member
and staff using a web-based form (the whether the information will have Organization or Control Persons of
‘‘OMMS Form’’) tailored to gather practical utility; (b) the accuracy of the Member Organizations With Persons
information about matters within the agency’s estimate of the burden imposed Subject to a Statutory Disqualification
scope of the Ombudsman’s function and by the collection of information; (c)
July 20, 2016.
streamline the inquiry and response ways to enhance the quality, utility, and
process. Pursuant to Section 19(b)(1) 1 of the
clarity of the information collected; and
The OMMS Form will facilitate Securities Exchange Act of 1934 (the
(d) ways to minimize the burden of the
communication with the Ombudsman ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
collection of information on notice is hereby given that on July 14,
via an electronic series of basic respondents, including through the use
questions with user-friendly response 2016, New York Stock Exchange LLC
of automated collection techniques or (‘‘NYSE’’ or the ‘‘Exchange’’) filed with
features such as radio buttons, drop-
other forms of information technology. the Securities and Exchange
down menu responses, pop-up
explanation bubbles, Web page links, Background documentation for this Commission (the ‘‘Commission’’) the
fillable narrative text fields, and information collection may be viewed at proposed rule change as described in
document upload options. In addition, the following Web site, Items I, II, and III below, which Items
the OMMS Form incorporates www.reginfo.gov. Comments should be have been prepared by the self-
functionality that, depending upon directed to: (i) Desk Officer for the regulatory organization. The
certain responses, pre-populates specific Securities and Exchange Commission, Commission is publishing this notice to
fields, and prompts the user to provide Office of Information and Regulatory solicit comments on the proposed rule
additional information. By eliciting Affairs, Office of Management and change from interested persons.
specific information from the user, the Budget, Room 10102, New Executive I. Self-Regulatory Organization’s
OMMS Form will facilitate Office Building, Washington, DC 20503, Statement of the Terms of Substance of
communication between the user and or by sending an email to Shagufta_ the Proposed Rule Change
the Ombudsman, reduce response and Ahmed@omb.eop.gov; and (ii) Pamela
resolution times, and maximize The Exchange proposes to add a new
Dyson, Director/Chief Information Rule 346 prohibiting association by
Ombudsman staff resources available for
Officer, Securities and Exchange member organizations, approved
recording, processing, and responding
to matters. The requested information Commission, c/o Remi Pavlik-Simon, persons, and persons associated with a
collection is voluntary and will not 100 F Street NE., Washington, DC member organization or control persons
change the contact methods currently 20549; or send an email to: PRA_ of member organizations with persons
available. Mailbox@sec.gov. Comments must be subject to a statutory disqualification.
The Commission expects that OMMS submitted within 30 days of this notice. The proposed rule change is available
will be operative and the OMMS Form Dated: July 21, 2016. on the Exchange’s Web site at
publicly available through the Robert W. Errett,
www.nyse.com, at the principal office of
Commission’s Web site, https:// the Exchange, and at the Commission’s
www.sec.gov. The Commission Deputy Secretary.
Public Reference Room.
estimates that the total reporting burden [FR Doc. 2016–17636 Filed 7–25–16; 8:45 am]
II. Self-Regulatory Organization’s
for using the OMMS Form will be 250 BILLING CODE 8011–01–P
hours. The calculation of this estimate Statement of the Purpose of, and
depends on how many members of the Statutory Basis for, the Proposed Rule
public use the form each year and the Change
estimated time it takes to complete the In its filing with the Commission, the
forms: 500 respondents × 30 minutes = self-regulatory organization included
250 burden hours. The estimates of statements concerning the purpose of,
average burden hours are made solely and basis for, the proposed rule change
for the purposes of the Paperwork and discussed any comments it received
Reduction Act and are not derived from on the proposed rule change. The text
a comprehensive or even representative
srobinson on DSK5SPTVN1PROD with NOTICES
of those statements may be examined at
survey or study of the cost of the places specified in Item IV below.
Commission rules and forms. The total The Exchange has prepared summaries,
estimated one-time cost to the federal set forth in sections A, B, and C below,
government of creating OMMS and the
OMMS Form is $400,000. 1 15 U.S.C. 78s(b)(1).
An agency may not conduct or 2 15 U.S.C. 78a.
sponsor a collection of information 3 17 CFR 240.19b–4.
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![48880 Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices
of the most significant parts of such (Limitations—Employment and accordingly proposes to reintroduce the
statements. Association with Members and Member standards contained in deleted Rule
Organizations) and related 346(f) as new Rule 346. In particular,
A. Self-Regulatory Organization’s
interpretations.7 In 2011, to correspond proposed Rule 346 would provide that,
Statement of the Purpose of, and the
with the changes by FINRA, the except as otherwise permitted by the
Statutory Basis for, the Proposed Rule
Exchange adopted FINRA Rule 3270 as Exchange, no member organization,
Change
NYSE Rule 3270 and deleted Rule 346 principal executive, approved person,
1. Purpose in its entirety.8 person associated with a member
Prior to its deletion in 2011, organization or any person directly or
The Exchange proposes a new Rule
subdivision (f) of Rule 346 provided indirectly controlling, controlled by or
346 prohibiting association by member
that, unless permitted by the Exchange, under common control with a member
organizations, principal executives,
no member, member organization, organization shall have associated with
approved persons, and persons
approved person, person associated it any person who is known, or in the
associated with a member organization
with a member organization or any exercise of reasonable care should be
or control persons of member
person directly or indirectly controlling, known, to be subject to any ‘‘statutory
organizations with persons subject to a
controlled by or under common control disqualification’’ defined in Section
statutory disqualification.
with a member or member organization 3(a)(39) of the Act.
Background shall have associated with him or it any The proposed rule text is the same as
In 2007, the Exchange and FINRA 4 person who is known, or in the exercise former Rule 346(f) except that the
entered into an agreement (the of reasonable care should be known, to proposed rule would not use the terms
‘‘Agreement’’) pursuant to Rule 17d–2 be subject to any ‘‘statutory ‘‘member’’ or ‘‘employee.’’ Under
under the Act to reduce regulatory disqualification’’ defined in Section Exchange rules, the term ‘‘member
duplication by allocating to FINRA 3(a)(39) of the Act.9 Because FINRA had organization’’ means a registered broker
certain regulatory responsibilities for previously amended its definition of or dealer (unless exempt pursuant to the
NYSE rules and rule interpretations disqualification in its By-Laws to align
Act) that is a member of FINRA or
(‘‘FINRA Incorporated NYSE Rules’’).5 with the definition in the Act, FINRA
another registered securities exchange.13
deleted Rule 346(f) as redundant.10
In order to reduce regulatory The term ‘‘member’’ means a natural
When the Exchange adopted FINRA
duplication and relieve firms that are person associated with a member
Rule 3270 as NYSE Rule 3270, it deleted
members of the Exchange and FINRA of organization that has been approved by
Rule 346 in its entirety, including
conflicting or unnecessary regulatory the Exchange and designated by such
subdivision (f).11 The Exchange did not
burdens, FINRA has been reviewing and member organization to effect
delete the associated rule
amending the NASD and FINRA transactions on the floor of the
interpretations, which the Exchange
Incorporated NYSE Rules in order to Exchange or any facility thereof.14 A
now proposes to delete.
create a consolidated FINRA rulebook.6 ‘‘member’’ is not a registered broker-
As part of the rule consolidation Proposed Rule Change dealer and does not have employees;
process, in 2010, FINRA adopted NASD The Exchange’s deletion of Rule only member organizations have
Rule 3030 (Outside Business Activities 346(f) was inadvertent.12 The Exchange employees. For purposes of the
of an Associated Person) as FINRA Rule proposed change, the Exchange
3270 (Outside Business Activities of 7 See Securities Exchange Act Release No. 62762 proposes to continue using the phrase
Registered Persons) in the consolidated (August 23, 2010), 75 FR 53362 (August 31, 2010) ‘‘person associated with a member
FINRA rulebook. FINRA also deleted (SR–FINRA–2009–042) (‘‘Release No. 62762’’). organization’’ to indicate employees of a
8 See Securities Exchange Act Release No. 64131
FINRA Incorporated NYSE Rule 346 member organization.15 The proposed
(March 28, 2011), 76 FR 18285 (April 1, 2011) (SR–
NYSE–2011–12) (‘‘Release No. 64131’’). rule would also use the term ‘‘principal
4 NYSE Regulation, Inc., a former not-for-profit 9 See Release No. 62762, 75 FR at 53363. executives,’’ which replaced ‘‘allied
subsidiary of the Exchange, was also a party to the
Agreement by virtue of the fact that it performed
10 Id. FINRA also deleted related NYSE
members’’ in 2008.16 The proposed rule
Interpretations 346(e)/01–03. is also substantially similar to Rule
regulatory functions for the Exchange pursuant to 11 See Release No. 64131, 76 FR 18286.
a delegation agreement. See Securities Exchange 12 The processing of new membership
342(e) of the Exchange’s affiliate, NYSE
Act Release No. 53382 (February 27, 2006), 71 FR MKT LLC.17
applications at the Exchange includes statutory
11251, 11264–65 (March 6, 2006) (SR–NYSE–2005–
77) (approving delegation agreement). The
disqualification disclosures and background Finally, the Exchange proposes to
investigations of prospective member organizations delete NYSE Rule Interpretations
delegation agreement terminated on February 16,
and persons associated with a member organization.
2016, and NYSE Regulation has ceased providing
Since 2010, review, assessment, and processing of 346(e)/01–03 as unnecessary in light of
regulatory services to the Exchange, which has re-
NYSE membership applications has been
integrated its regulatory functions.
5 See Securities Exchange Act Release Nos. 56148
conducted on behalf of the Exchange by FINRA 13 See Rule 2(b)(i).
pursuant to a regulatory services agreement. 14 See Rule 2(a).
(July 26, 2007), 72 FR 42146 (August 1, 2007) (order Although Rule 346(f) was inadvertently deleted in 15 See, e.g., Rule 9000 Series.
approving the Agreement); 56147 (July 26, 2007), 72 2011, the Exchange continued to work with FINRA
FR 42166 (August 1, 2007) (SR–NASD–2007–054) to seek disclosure of and identify persons subject
16 See Securities Exchange Act Release No. 58549
(order approving the incorporation of certain NYSE to any statutory disqualification as defined in (September 15, 2008), 73 FR 54444 (September 19,
Rules as ‘‘Common Rules’’). Paragraph 2(b) of the Section 3(a)(39) of the Act and take appropriate 2008) (SR–NYSE–2008–80).
Agreement sets forth procedures regarding action in individual cases. For example, whenever 17 MKT LLC Rule 342(e) provides that ‘‘[e]xcept
proposed changes by FINRA or the Exchange to the Exchange staff has reason to believe that a as otherwise permitted by the Exchange, no
substance of any of the Common Rules. disqualification exists or that a member member, member organization, allied member,
6 FINRA’s rulebook currently has three sets of approved person, employee, or any person directly
organization or covered person otherwise fails to
srobinson on DSK5SPTVN1PROD with NOTICES
rules: (1) NASD Rules, (2) FINRA Incorporated meet the eligibility requirements of the Exchange, or indirectly controlling, controlled by or under
NYSE Rules, and (3) consolidated FINRA Rules. the Exchange can issue a notice of disqualification common control with a member or member
The FINRA Incorporated NYSE Rules apply only to or ineligibility under NYSE Rule 9522(a)(1). For organization shall have associated with him or it
those members of FINRA that are also members of purposes of Rule 9522, a ‘‘covered person’’ means any person who is known, or in the exercise of
the NYSE (‘‘Dual Members’’), while the a member, principal executive, approved person, reasonable care should be known, to be subject to
consolidated FINRA Rules apply to all FINRA registered or non-registered employee of a member any ‘‘statutory disqualification’’ defined in Section
members. For more information about the FINRA organization, or other person (excluding a member 3(a)(39) of the Securities Exchange Act of 1934.’’ As
rulebook consolidation process, see FINRA organization) subject to the Exchange’s jurisdiction. noted previously, the NYSE eliminated allied
Information Notice, March 12, 2008. See Rule 9521(g). members in 2008. See note 16, supra.
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![48882 Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices
identifying information from Dated: July 15, 2016. DEPARTMENT OF STATE
submissions. You should submit only Mark Taplin,
information that you wish to make Principal Deputy Assistant Secretary, Bureau [Public Notice: 9651]
available publicly. All submissions of Educational and Cultural Affairs,
should refer to File Number SR–NYSE– Department of State. Culturally Significant Objects Imported
2016–43 and should be submitted on or [FR Doc. 2016–17689 Filed 7–25–16; 8:45 am] for Exhibition Determinations:
before August 16, 2016. BILLING CODE 4710–05–P ‘‘Richard Learoyd: Studio Work’’
For the Commission, by the Division of Exhibition
Trading and Markets, pursuant to delegated
authority.27 DEPARTMENT OF STATE SUMMARY: Notice is hereby given of the
Robert W. Errett, following determinations: Pursuant to
Deputy Secretary. [Public Notice: 9650] the authority vested in me by the Act of
[FR Doc. 2016–17583 Filed 7–25–16; 8:45 am] October 19, 1965 (79 Stat. 985; 22 U.S.C.
BILLING CODE 8011–01–P Culturally Significant Objects Imported 2459), E.O. 12047 of March 27, 1978, the
for Exhibition Determinations: Foreign Affairs Reform and
‘‘Insecurities: Tracing Displacement Restructuring Act of 1998 (112 Stat.
DEPARTMENT OF STATE and Shelter’’ Exhibition 2681, et seq.; 22 U.S.C. 6501 note, et
[Public Notice: 9652] seq.), Delegation of Authority No. 234 of
SUMMARY: Notice is hereby given of the October 1, 1999, Delegation of Authority
Culturally Significant Objects Imported following determinations: Pursuant to No. 236–3 of August 28, 2000 (and, as
for Exhibition Determinations: ‘‘Gustav the authority vested in me by the Act of appropriate, Delegation of Authority No.
Klimt and the Women of Vienna’s October 19, 1965 (79 Stat. 985; 22 U.S.C. 257 of April 15, 2003), I hereby
Golden Age, 1900–1918’’ Exhibition 2459), E.O. 12047 of March 27, 1978, the determine that the objects to be
Foreign Affairs Reform and included in the exhibition ‘‘Richard
SUMMARY: Notice is hereby given of the Restructuring Act of 1998 (112 Stat.
following determinations: Pursuant to Learoyd: Studio Work,’’ imported from
2681, et seq.; 22 U.S.C. 6501 note, et abroad for temporary exhibition within
the authority vested in me by the Act of seq.), Delegation of Authority No. 234 of
October 19, 1965 (79 Stat. 985; 22 U.S.C. the United States, are of cultural
October 1, 1999, Delegation of Authority significance. The objects are imported
2459), E.O. 12047 of March 27, 1978, the No. 236–3 of August 28, 2000 (and, as
Foreign Affairs Reform and pursuant to loan agreements with the
appropriate, Delegation of Authority No.
Restructuring Act of 1998 (112 Stat. foreign owners or custodians. I also
257 of April 15, 2003), I hereby
2681, et seq.; 22 U.S.C. 6501 note, et determine that the exhibition or display
determine that the object to be included
seq.), Delegation of Authority No. 234 of of the exhibit objects at the J. Paul Getty
in the exhibition ‘‘Insecurities: Tracing
October 1, 1999, Delegation of Authority Museum, Los Angeles, California, from
Displacement and Shelter,’’ imported
No. 236–3 of August 28, 2000 (and, as on or about August 30, 2016, until on
from abroad for temporary exhibition
appropriate, Delegation of Authority No. or about November 27, 2016, the
within the United States, is of cultural
257 of April 15, 2003), I hereby Nelson-Atkins Museum of Art, Kansas
significance. The object is imported
determine that the object to be included City, Missouri, from on or about
pursuant to a loan agreement with the
in the exhibition ‘‘Gustav Klimt and the February 10, 2017, until on or about
foreign owner or custodian. I also
Women of Vienna’s Golden Age, 1900– May 28, 2017, and at possible additional
determine that the exhibition or display
1918,’’ imported from abroad for exhibitions or venues yet to be
of the exhibit object at the Museum of
temporary exhibition within the United determined, is in the national interest.
Modern Art, New York, New York, from
States, is of cultural significance. The I have ordered that Public Notice of
object is imported pursuant to a loan on or about October 1, 2016, until on or
about January 22, 2017, and at possible these Determinations be published in
agreement with the foreign owner or
additional exhibitions or venues yet to the Federal Register.
custodian. I also determine that the
exhibition or display of the exhibit be determined, is in the national FOR FURTHER INFORMATION CONTACT: For
object at the Neue Galerie, New York, interest. I have ordered that Public
further information, including a list of
New York, from on or about September Notice of these Determinations be
the imported objects, contact the Office
22, 2016, until on or about January 16, published in the Federal Register.
of Public Diplomacy and Public Affairs
2017, and at possible additional FOR FURTHER INFORMATION CONTACT: For in the Office of the Legal Adviser, U.S.
exhibitions or venues yet to be further information, including an Department of State (telephone: 202–
determined, is in the national interest. imported object list, contact the Office 632–6471; email: section2459@
I have ordered that Public Notice of of Public Diplomacy and Public Affairs state.gov). The mailing address is U.S.
these Determinations be published in in the Office of the Legal Adviser, U.S. Department of State, L/PD, SA–5, Suite
the Federal Register. Department of State (telephone: 202– 5H03, Washington, DC 20522–0505.
FOR FURTHER INFORMATION CONTACT: For 632–6471; email: section2459@
further information, including an Dated: July 15, 2016.
state.gov). The mailing address is U.S.
imported object list, contact the Office Department of State, L/PD, SA–5, Suite Mark Taplin,
of Public Diplomacy and Public Affairs 5H03, Washington, DC 20522–0505. Principal Deputy Assistant Secretary, Bureau
in the Office of the Legal Adviser, U.S. of Educational and Cultural Affairs,
srobinson on DSK5SPTVN1PROD with NOTICES
Dated: July 15, 2016. Department of State.
Department of State (telephone: 202–
632–6471; email: section2459@ Mark Taplin, [FR Doc. 2016–17691 Filed 7–25–16; 8:45 am]
state.gov). The mailing address is U.S. Principal Deputy Assistant Secretary, Bureau BILLING CODE 4710–05–P
Department of State, L/PD, SA–5, Suite of Educational and Cultural Affairs,
5H03, Washington, DC 20522–0505. Department of State.
[FR Doc. 2016–17690 Filed 7–25–16; 8:45 am]
27 17 CFR 200.30–3(a)(12). BILLING CODE 4710–05–P
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Document Created: 2018-02-08 08:00:28
Document Modified: 2018-02-08 08:00:28
| 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 48879 |
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