81 FR 78869 - Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BYX Rule, 2.5, Restrictions, Regarding Members and Associated Persons of Members Who Are or Become Subject to a Statutory Disqualification
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 217 (November 9, 2016)
Federal Register Volume 81, Issue 217 (November 9, 2016)
| Page Range | 78869-78872 | |
| FR Document | 2016-27026 |
[Federal Register Volume 81, Number 217 (Wednesday, November 9, 2016)] [Notices] [Pages 78869-78872] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27026] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79233; File No. SR-BatsBYX-2016-28] Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BYX Rule, 2.5, Restrictions, Regarding Members and Associated Persons of Members Who Are or Become Subject to a Statutory Disqualification November 3, 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 October 24, 2016, Bats BYX Exchange, Inc. (the ``Exchange'' or ``BYX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend BYX Rules regarding Members and associated persons of Members who are or become subject to a statutory disqualification. The text of the proposed rule change is available at the Exchange's Web site [[Page 78870]] at www.batstrading.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 parts of such statements. (A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend Rule 2.5 (Restrictions) to add language which provides the Exchange with the discretion to determine whether to permit a person to become a Member or an associated person of a Member or continue as a Member or in association with a Member on the Exchange. Currently, Rule 2.5 restricts any persons from becoming a Member or continuing as a Member where (1) such person is other than a natural person and is not a registered broker or dealer, (2) such person is a natural person who is not either a registered broker or dealer or associated with a registered broker or dealer, (3) such person is subject to a statutory disqualification,\5\ except that a person may become a Member or continue as a Member where, pursuant to Rules 19d-1, 19d-2, 19d-3 and 19h-1 of the Act,\6\ the Commission has issued an order providing relief from such a disqualification and permitting such a person to become a Member, or (4) such person is not a member of another registered national securities exchange or association. --------------------------------------------------------------------------- \5\ The Exchange uses the definition of statutory disqualification set forth in the Act. See Exchange Rule 1.5(z); 15 U.S.C. 78c(a)(39). \6\ See 17 CFR 240.19d-1, 17 CFR 240.19d-2, 17 CFR 240.19d-3, and 17 CFR 240.19h-1. --------------------------------------------------------------------------- The Exchange notes that the proposed rule changes below are substantially similar to the rules of the International Securities Exchange (``ISE''),\7\ the rules of the Chicago Board Options Exchange (``CBOE''),\8\ and a recent amendment made by the BOX Options Exchange LLC (``BOX'').\9\ --------------------------------------------------------------------------- \7\ See ISE Rule 302; Securities Exchange Act Release No. 42455, 65 FR 11401 (March 2, 2000) (Order Granting Registration as a National Securities Exchange). \8\ See CBOE Rule 3.18; Securities Exchange Act Release No. 43056 (July 19, 2000), 65 FR 46524 (July 28, 2000) (SR-CBOE-1999-15) (Order Approving Proposed Rule Change and Notice of Filing and Order Granting Accelerated Approval to Amendment No. 3 to the Proposed Rule Change by the Chicago Board Options Exchange, Inc. Relating to Membership Rules). \9\ See BOX Rule 2040; Securities Exchange Act Release No. 78449 (August 1, 2016), 81 FR 51947 (August 5, 2016) (SR-BOX-2016-26). --------------------------------------------------------------------------- The Exchange first proposes to amend the language of Rule 2.5 to give itself the discretion to determine if a restriction on a Member becoming or continuing on as a Member is appropriate. The Exchange also proposes to make clear that the limitations of Rule 2.5 are equally applicable to persons associated with Members as they are to Members. The Exchange then proposes to amend Rule 2.5(a)(3) to delete the language that allows a person to become a Member or continue as a Member where, pursuant to Rules 19d-1, 19d-2, 19d-3 and 19h-1 of the Act,\10\ the Commission has issued an order providing relief from such a disqualification and permitting such a person to become a Member. The Exchange does not believe that this language reflects the Commission's current review process, as an order is not necessarily required in every instance. --------------------------------------------------------------------------- \10\ See supra, note 6. --------------------------------------------------------------------------- The Exchange then proposes to add three more situations with regard to whether a person may become a Member or continue as a Member in any capacity on the Exchange. The additional restrictions are when: (1) Such person fails to meet any of the qualification requirements for becoming a Member or associated with a Member after approval thereof; (2) such person fails to meet any condition placed by the Exchange on such Member or association with a Member; and (3) such person violates any agreement with the Exchange. The Exchange proposes these additions in order to allow the Exchange more discretion in its determination as to whether a person may become or continue as a Member or in association with a Member. The Exchange notes that the Exchange must act consistent with the protection of investors and in the public interest and is prohibited from unfairly discriminating against Members or prospective Members.\11\ Further, any prospective Member that has been denied membership in the Exchange or barred from becoming associated with a Member is entitled to certain due process pursuant to Chapter X of the Exchange's rules, which includes, but is not limited to, potential review by the Commission.\12\ --------------------------------------------------------------------------- \11\ See 15 U.S.C. 78f(b)(5). \12\ See Chapter X of the Exchange's Rules. --------------------------------------------------------------------------- The Exchange also proposes to add language with regard to a Member or associated person that becomes subject to a statutory disqualification under the Act. The proposed rule would allow a Member or associated person who becomes subject to a statutory disqualification and who wants to continue as a Member of the Exchange or in association with a Member, to submit a request to the Exchange seeking to continue as a Member or in association with a Member notwithstanding the statutory disqualification.\13\ --------------------------------------------------------------------------- \13\ The Member or person associated with a Member must submit the request within thirty (30) days of becoming subject to a statutory disqualification. --------------------------------------------------------------------------- The Exchange also proposes to add language which allows Members and associated persons whose request to become a Member or associated with a Member is denied or conditioned, or any person whose association with a Member is denied or conditioned pursuant to the restrictions codified in Rule 2.5(a), and any Member or person associated with a Member who is not permitted to continue as a Member or be an associate with a Member or to which association is conditioned to seek review under the provisions of the Exchange Rules relating to adverse actions.\14\ --------------------------------------------------------------------------- \14\ See Chapter X of the Exchange's Rules. --------------------------------------------------------------------------- Lastly, the Exchange proposes to add Interpretation and Policy .05, which will allow the Exchange to waive the provisions of Rule 2.5 when a proceeding is pending before another self-regulatory organization (``SRO'') to determine whether to permit a Member or associated person to continue membership or association notwithstanding a statutory disqualification. The Exchange notes that this proposed rule change is substantially similar to the comparable rules of the CBOE,\15\ and the rules of BOX, as amended.\16\ Further, in the event the Exchange determines to waive the provisions of this Rule with respect to a Member or associated person, the Exchange shall determine whether the Exchange will concur in any Exchange Act Rule 19h-1 filing made by another SRO with respect to the Member or associated person. --------------------------------------------------------------------------- \15\ See Interpretation and Policy .01 to CBOE Rule 3.18. \16\ See IM-2040-8 to BOX Rule 2040. --------------------------------------------------------------------------- [[Page 78871]] 2. Statutory Basis The Exchange believes that its proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\17\ In particular, the Exchange believes the proposed change furthers the objectives of Section 6(b)(5) of the Act,\18\ in that it 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 facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78f(b). \18\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule changes are consistent with the requirements above. Specifically, the Exchange believes the proposed changes will better enable the Exchange to use its discretion in determining whether a person may become or continue as a Member or associated person. Because of the discretionary language and additional restrictions, the Exchange may consider additional circumstances when determining whether a person may become or continue as a Member or associated person on the Exchange. The Exchange believes that Proposed Rule 2.5(c) regarding any person or Member's ability to appeal a denied or conditioned request to become or continue as a Member or to associate with a Member is reasonable because it provides a fair procedure for the Members and persons associated with Members pursuant to Rule 7.6 (Summary Suspension of Exchange Services). The Exchange also believes the proposed rule change regarding the waiver of the provisions of Rule 2.5 will better enable the Exchange to focus Exchange resources on other matters while another SRO is determining whether to permit a Member or associated person to become or continue being a Member or associated person on the exchange. Lastly, the Exchange believes is it reasonable to remove language in Rule 2.5(a)(3) because the Exchange is eliminating any potential for confusion by simplifying the Exchange Rules, ensuring that Members, regulators, and the public can more easily navigate the Exchange's Rulebook. (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 noted above, although the proposal will provide the Exchange with additional discretionary authority with respect to potential Members of the Exchange, the Exchange is bound by the Act to act consistent with the protection of investors and in the public interest and is prohibited from unfairly discriminating against Members or prospective Members.\19\ Further, the proposal is not a competitive proposal designed to either attract or prevent prospective Members from joining the Exchange, but rather, is primarily focused on modifying the Exchange's rules to ensure clarity and consistency with other SROs. --------------------------------------------------------------------------- \19\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- (C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from Members or other interested parties. 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) by its terms, 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 \20\ and paragraph (f)(6) of Rule 19b-4 thereunder,\21\ the Exchange has designated this rule filing as non-controversial. The Exchange has given the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- \20\ 15 U.S.C. 78s(b)(3)(A). \21\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- 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: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) 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 proposal 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 No. SR-BatsBYX-2016-28 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 No. SR-BatsBYX-2016-28. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing will also 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 No. SR-BatsBYX- [[Page 78872]] 2016-28 and should be submitted on or before November 30, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-27026 Filed 11-8-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices 78869
by simplifying the Exchange Rules, shorter time as designated by the the Commission does not edit personal
ensuring that Members, regulators, and Commission. identifying information from
the public can more easily navigate the At any time within 60 days of the submissions. You should submit only
Exchange’s Rulebook. filing of the proposed rule change, the information that you wish to make
Commission summarily may available publicly. All submissions
(B) Self-Regulatory Organization’s temporarily suspend such rule change if should refer to File No. SR–BatsEDGA–
Statement on Burden on Competition it appears to the Commission that such 2016–23 and should be submitted on or
The Exchange does not believe that action is: (1) Necessary or appropriate in before November 30, 2016.
the proposed rule change will impose the public interest; (2) for the protection For the Commission, by the Division of
any burden on competition not of investors; or (3) otherwise in Trading and Markets, pursuant to delegated
necessary or appropriate in furtherance furtherance of the purposes of the Act. authority.22
of the purposes of the Act. As noted If the Commission takes such action, the Brent J. Fields,
above, although the proposal will Commission shall institute proceedings Secretary.
provide the Exchange with additional to determine whether the proposed rule
[FR Doc. 2016–27027 Filed 11–8–16; 8:45 am]
discretionary authority with respect to should be approved or disapproved.
BILLING CODE 8011–01–P
potential Members of the Exchange, the IV. Solicitation of Comments
Exchange is bound by the Act to act
Interested persons are invited to
consistent with the protection of SECURITIES AND EXCHANGE
submit written data, views and
investors and in the public interest and COMMISSION
arguments concerning the foregoing,
is prohibited from unfairly
including whether the proposal is [Release No. 34–79233; File No. SR–
discriminating against Members or
consistent with the Act. Comments may BatsBYX–2016–28]
prospective Members.19 Further, the
be submitted by any of the following
proposal is not a competitive proposal Self-Regulatory Organizations; Bats
methods:
designed to either attract or prevent BYX Exchange, Inc.; Notice of Filing
prospective Members from joining the Electronic Comments and Immediate Effectiveness of a
Exchange, but rather, is primarily • Use the Commission’s Internet Proposed Rule Change To Amend BYX
focused on modifying the Exchange’s comment form (http://www.sec.gov/ Rule, 2.5, Restrictions, Regarding
rules to ensure clarity and consistency rules/sro.shtml); or Members and Associated Persons of
with other SROs. • Send an email to rule-comments@ Members Who Are or Become Subject
(C) Self-Regulatory Organization’s sec.gov. Please include File No. SR– to a Statutory Disqualification
Statement on Comments on the BatsEDGA–2016–23 on the subject line.
November 3, 2016.
Proposed Rule Change Received From Paper Comments Pursuant to Section 19(b)(1) of the
Members, Participants or Others
• Send paper comments in triplicate Securities Exchange Act of 1934 (the
The Exchange has not solicited, and to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2
does not intend to solicit, comments on Commission, 100 F Street NE., notice is hereby given that on October
this proposed rule change. The Washington, DC 20549–1090. 24, 2016, Bats BYX Exchange, Inc. (the
Exchange has not received any written All submissions should refer to File No. ‘‘Exchange’’ or ‘‘BYX’’) filed with the
comments from Members or other SR–BatsEDGA–2016–23. This file Securities and Exchange Commission
interested parties. number should be included on the (‘‘Commission’’) the proposed rule
subject line if email is used. To help the change as described in Items I and II
III. Date of Effectiveness of the below, which Items have been prepared
Commission process and review your
Proposed Rule Change and Timing for by the Exchange. The Exchange has
comments more efficiently, please use
Commission Action designated this proposal as a ‘‘non-
only one method. The Commission will
Because the foregoing proposed rule post all comments on the Commission’s controversial’’ proposed rule change
change does not: (A) Significantly affect Internet Web site (http://www.sec.gov/ pursuant to Section 19(b)(3)(A) of the
the protection of investors or the public rules/sro.shtml). Copies of the Act 3 and Rule 19b–4(f)(6)(iii)
interest; (B) impose any significant submission, all subsequent thereunder,4 which renders it effective
burden on competition; and (C) by its amendments, all written statements upon filing with the Commission. The
terms, become operative for 30 days with respect to the proposed rule Commission is publishing this notice to
from the date on which it was filed or change that are filed with the solicit comments on the proposed rule
such shorter time as the Commission Commission, and all written change from interested persons.
may designate it has become effective communications relating to the I. Self-Regulatory Organization’s
pursuant to Section 19(b)(3)(A) of the proposed rule change between the Statement of the Terms of Substance of
Act 20 and paragraph (f)(6) of Rule 19b– Commission and any person, other than the Proposed Rule Change
4 thereunder,21 the Exchange has those that may be withheld from the
The Exchange filed a proposal to
designated this rule filing as non- public in accordance with the
amend BYX Rules regarding Members
controversial. The Exchange has given provisions of 5 U.S.C. 552, will be
and associated persons of Members who
the Commission written notice of its available for Web site viewing and
are or become subject to a statutory
intent to file the proposed rule change, printing in the Commission’s Public
disqualification.
Reference Room, 100 F Street NE.,
sradovich on DSK3GMQ082PROD with NOTICES
along with a brief description and text The text of the proposed rule change
of the proposed rule change at least five Washington, DC 20549, on official
is available at the Exchange’s Web site
business days prior to the date of filing business days between the hours of
of the proposed rule change, or such 10:00 a.m. and 3:00 p.m. Copies of such 22 17 CFR 200.30–3(a)(12).
filing will also be available for 1 15 U.S.C. 78s(b)(1).
19 15 U.S.C. 78f(b)(5). inspection and copying at the principal 2 17 CFR 240.19b–4.
20 15 U.S.C. 78s(b)(3)(A). office of the Exchange. All comments 3 15 U.S.C. 78s(b)(3)(A).
21 17 CFR 240.19b–4. received will be posted without change; 4 17 CFR 240.19b–4(f)(6)(iii).
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![78872 Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices
2016–28 and should be submitted on or proposed rule change from interested provides that a quorum of the Board
before November 30, 2016. persons. shall consist of two-thirds of the
For the Commission, by the Division of The text of the proposed rule change members of the whole Board, which
Trading and Markets, pursuant to delegated is available on the MSRB’s Web site at must include at least one member of the
authority.22 www.msrb.org/Rules-and- Board who is a public representative, at
Brent J. Fields, Interpretations/SEC-Filings/2016- least one member who is a broker-dealer
Secretary. Filings.aspx, at the MSRB’s principal representative and at least one member
[FR Doc. 2016–27026 Filed 11–8–16; 8:45 am]
office, and at the Commission’s Public who is a bank representative. Existing
Reference Room. Rule A–4(c) also provides that any
BILLING CODE 8011–01–P
action taken by the affirmative vote of
II. Self-Regulatory Organization’s
a majority of the whole Board at any
Statement of the Purpose of, and
SECURITIES AND EXCHANGE meeting at which a quorum is present,
Statutory Basis for, the Proposed Rule
COMMISSION shall, except as otherwise provided by
Change
rule of the Board, constitute the action
[Release No. 34–79225; File No. SR–MSRB– In its filing with the Commission, the of the Board. Rule A–4(c) also provides
2016–13] MSRB included statements concerning for Board action by resolution, except
the purpose of and basis for the where otherwise specified by the
Self-Regulatory Organizations;
proposed rule change and discussed any Exchange Act or a rule of the Board.
Municipal Securities Rulemaking
comments it received on the proposed The MSRB proposes to amend Rule
Board; Notice of Filing and Immediate
rule change. The text of these statements A–4(c) to incorporate a requirement that
Effectiveness of a Proposed Rule
may be examined at the places specified at least one member of any Board group
Change To Amend the Requirements
in Item IV below. The MSRB has constituting a quorum be an advisor
in MSRB Rule A–4, on Meetings of the
prepared summaries, set forth in representative. The proposed rule
Board, Regarding the Formation of a
Sections A, B, and C below, of the most change ensures representation of all
Quorum
significant aspects of such statements. categories of persons required to be
November 3, 2016. members of the Board in any quorum
A. Self-Regulatory Organization’s
Pursuant to Section 19(b)(1) of the established under Rule A–4. The MSRB
Statement of the Purpose of, and also proposes minor technical
Securities Exchange Act of 1934 (the Statutory Basis for, the Proposed Rule
‘‘Act’’ or ‘‘Exchange Act’’) 1 and Rule amendments to Rule A–4(c) to clarify
Change the provision.
19b–4 thereunder,2 notice is hereby
given that on October 24, 2016, the 1. Purpose 2. Statutory Basis
Municipal Securities Rulemaking Board The Dodd-Frank Wall Street Reform
(the ‘‘MSRB’’ or ‘‘Board’’) filed with the The MSRB has adopted the proposed
and Consumer Protection Act of 2010 rule change pursuant to Sections
Securities and Exchange Commission (the ‘‘Dodd-Frank Act’’) 4 amended
(‘‘Commission’’) the proposed rule 15B(b)(1) and (2) of the Exchange Act,10
Section 15B of the Exchange Act 5 to which require, among other things, that
change as described in Items I, II, and provide for the regulation by the
III below, which Items have been the Board include at least one
Commission and the MSRB of individual who is associated with a
prepared by the MSRB. The municipal advisors. The Dodd Frank
Commission is publishing this notice to municipal advisor, and the rules of the
Act grants the MSRB broad rulemaking Board establish fair procedures for the
solicit comments on the proposed rule authority over municipal advisors and
change from interested persons. nomination and election of members of
municipal advisory activities.6 The the Board and assure fair representation
I. Self-Regulatory Organization’s Dodd-Frank Act also requires that the in such nominations and elections of
Statement of the Terms of Substance of MSRB Board include persons associated public representatives, broker-dealer
the Proposed Rule Change with a municipal advisor. Specifically, representatives, bank representatives,
Section 15B(b)(1) of the Exchange Act 7 and advisor representatives and the
The MSRB filed with the Commission
requires that the MSRB Board include at terms that shall be served by such
a proposed amendment to MSRB Rule
least one individual who is associated members. The MSRB believes the
A–4, on meetings of the Board, to
with a municipal advisor (an ‘‘advisor proposed rule change is appropriate and
amend the requirements regarding the
representative’’) among the members of consistent with Sections 15B(b)(1) and
formation of a quorum (the ‘‘proposed
the Board that are ‘‘regulated (2) of the Exchange Act 11 in that the
rule change’’). The MSRB has
representatives,’’ as that term is used in proposed rule change would amend the
designated the proposed rule change as
Section 15B(b)(1).8 The composition of quorum requirements in a manner
concerned solely with the
the MSRB Board reflects and complies consistent with requirements regarding
administration of the self-regulatory
with this requirement. the composition of the Board that were
organization under paragraph (f)(3) of The MSRB has adopted
Rule 19b–4 under the Act,3 which previously put in place.12 The MSRB
administrative rules that pertain to the
renders the proposal effective upon also believes the proposed rule change
operation and administration of the
receipt of this filing by the Commission. appropriately complements the Board’s
Board, which are identified by the
The proposed rule change is concerned governance procedures that are
prefix A,9 and include MSRB Rule
solely with the administration of the structured to obtain the diverse views of
A–4, regarding quorum and voting
MSRB in that it simply amends the the public and various entities that are
requirements. Existing Rule A–4(c)
sradovich on DSK3GMQ082PROD with NOTICES
quorum requirements applicable to the
10 15 U.S.C. 78o–4(b)(1)–(2).
Board. The Commission is publishing 4 Pub. Law No. 111–203, 124 Stat. 1376 (2010). 11 Id.
this notice to solicit comments on the 5 15 U.S.C. 78o–4.
12 See Securities Exchange Act Release No. 63025
6 See Section 15B(b)(2) of the Exchange Act (15
22 17
(Sept. 30, 2010), 75 FR 61806 (Oct. 6, 2010) (File
CFR 200.30–3(a)(12). U.S.C. 78o–4(b)(2)). No. SR–MSRB–2010–08) (SEC order approving
1 15 U.S.C. 78s(b)(1). 7 15 U.S.C. 78o–4(b)(1).
amendments to Rule A–3 to provide for, among
2 17 CFR 240.19b–4. 8 Id.
other requirements, municipal advisor
3 17 CFR 240.19b–4(f)(3). 9 See MSRB Rule A–1. representation on the MSRB Board).
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Document Created: 2016-11-09 01:39:43
Document Modified: 2016-11-09 01:39:43
| 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 78869 |
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