81 FR 67031 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Correct Rule 3.6A

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 189 (September 29, 2016)

[Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)]
[Notices]
[Pages 67031-67033]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-23493]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78915; File No. SR-CBOE-2016-067]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Correct Rule 3.6A

September 23, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 9, 2016, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') 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 
Exchange. The Exchange filed the proposal as a ``non-controversial'' 
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
\3\ and Rule 19b-4(f)(6) thereunder.\4\ 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    The Exchange seeks to correct a typographical error in Rule 3.6A.08 
related to the Qualification and Registration of Trading Permit Holders 
and Associated Persons. The text of the proposed rule change is 
provided below.
    (additions are underlined; deletions are [bracketed])
* * * * *

Chicago Board Options Exchange, Incorporated Rules

* * * * *
    Rule 3.6A. Qualification and Registration of Trading Permit 
Holders and Associated Persons
    (a)-(e) No change.
    . . . Interpretations and Policies:
    .01-.07 No change.
    .08 (a) An individual Trading Permit Holder or individual 
associated person who:
    (1) is engaged in proprietary trading, market-making and/or 
effecting transactions on behalf of a broker-dealer is required to 
register and qualify as a Securities Trader (TD) in WebCRD;
    (2) (i) supervises or monitors proprietary trading, market-
making and/or brokerage activities for broker-dealers; (ii) 
supervises or trains those engaged in proprietary trading, market-
making and/or effecting transactions on behalf of a broker-dealer, 
with respect to those activities; and/or (iii) is an officer, 
partner or director of a Trading Permit Holder or TPH organization 
is required to register and qualify as a Securities Trader Principal 
(TP) in WebCRD and satisfy the prerequisite registration and 
qualification requirements; and
    (3) is a Chief Compliance Officer (or performs similar 
functions) for a Trading Permit Holder or TPH organization that 
engages in proprietary trading, market-making or effecting 
transactions on behalf of a broker-dealer is required to register 
and qualify as a Securities Trader Compliance Officer (CT) in WebCRD 
and satisfy the prerequisite registration and qualification 
requirements.
    (b) The following sets forth the qualification requirements for 
each of the required registration categories described in paragraph 
(a) to Interpretation and Policy .08:

[[Page 67032]]



------------------------------------------------------------------------
                                                        Alternative
   Category of registration       Qualification          acceptable
                                  examination(s)       qualifications
------------------------------------------------------------------------
Securities Trader (TD)........  Series 57........
Securities Trader Principal     Series 24........  General Securities
 (TP) **.                                           Sales Supervisor
                                                    Registration and
                                                    General Securities
                                                    Principal--Sales
                                                    Supervisor Module
                                                    Registration (Series
                                                    9/10 and Series 23)
                                                    *
Securities Trader Compliance    Series 14........  General Securities
 Officer (CT).                                      Principal
                                                    Registration (GP) or
                                                    Securities Trader
                                                    Principal (TP)
                                                    (Series 24)
------------------------------------------------------------------------
* Because the Series 23 is not available in WebCRD, each applicant must
  provide documentation of a valid Series 23 license to the Registration
  Services Department upon request for the Series 24 registration in
  WebCRD.
** Securities Trader Principals' (TP) supervisory authority is limited
  to supervision of the securities trading functions of TPHs, as
  described in paragraph (a)(2)[(i)] of Interpretation and Policy .08 to
  Rule 3.6A, and supervision of officers, partners, and directors of a
  TPH or TPH organization.

    .09 No change.
* * * * *

    The text of the proposed rule change is also available on the 
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, 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 correct an inadvertent typographical error 
in Rule 3.6A.08. The Exchange proposes to make the change so the text 
properly reflects the intention and practice of Rule 3.6A.08. The 
typographical error is explained below.
    On October 9, 2015, the Exchange filed a rule change to replace the 
Proprietary Trader (PT) registration category and qualification 
examination (Series 56) with the Securities Trader (TD) registration 
category and qualification examination (Series 57). As part of that 
filing, an inadvertent typographical error was made in the sentence 
that begins with the two asterisks (**) in Interpretation and Policy 
.08(b). That sentence incorrectly refers to paragraph (a)(2)(i) in 
Interpretation and Policy .08. The intention was to reference paragraph 
(a)(2) in its entirety, not just paragraph (a)(2)(i), as the purpose of 
the reference is to describe the various types of supervisory authority 
an individual may have that requires the individual to register and 
qualify as a Securities Trader Principal (TP). The Exchange is now 
proposing to amend this error to accurately describe the intention and 
practice of the rule.
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.\5\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \6\ 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) \7 \requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ Id.
---------------------------------------------------------------------------

    In particular, the proposed rule change is consistent with these 
provisions because it will more accurately describe the intention and 
practice of the Exchange with respect to registration requirements of 
Trading Permit Holders. The Exchange believes that having accurate and 
clear rules is in the best interests of investors and the general 
public. The proposed rule change is correcting an inadvertent 
typographical error.

B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE 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 
attempting to correct a typographical error and does not impact the 
Exchange's existing operations or rules related to registration 
requirements. The proposed rule change has no impact on competition.

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

    The Exchange neither solicited nor received written comments on the 
proposed rule change.

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

    Because the foregoing proposed rule change does not:
    A. Significantly affect the protection of investors or the public 
interest;
    B. impose any significant burden on competition; and
    C. become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and 
Rule 19b-4(f)(6) \9\ thereunder. 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

[[Page 67033]]

Commission will institute proceedings to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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-CBOE-2016-067 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-CBOE-2016-067. This file 
number should be included on the subject line if e-mail 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 website (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 website 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-CBOE-2016-067 and should be 
submitted on or before October 20, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-23493 Filed 9-28-16; 8:45 am]
 BILLING CODE 8011-01-P