Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Correct Rule 3.6A
Federal Register, Volume 81 Issue 189 (Thursday, September 29, 2016)
Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)
Notices
Pages 67031-67033
From the Federal Register Online via the Government Publishing Office www.gpo.gov
FR Doc No: 2016-23493
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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.
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\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).
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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
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Alternative
Category of registration Qualification acceptable
examination(s) qualifications
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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)
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* 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.
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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.
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Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
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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.
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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.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ Id.
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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.
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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.
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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.
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Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
Because the foregoing proposed rule change does not:
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Significantly affect the protection of investors or the public interest;
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impose any significant burden on competition; and
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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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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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 rule-comments@sec.gov. 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\
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\10\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
FR Doc. 2016-23493 Filed 9-28-16; 8:45 am
BILLING CODE 8011-01-P
