Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Increasing the Session Fee for the Regulatory Element of Continuing Education Requirements, 69168-69169 [E9-30928]
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69168
Federal Register / Vol. 74, No. 249 / Wednesday, December 30, 2009 / Notices
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,32 that the
proposed rule change (SR–NYSE–2009–
124) be, and it hereby is, approved on
an accelerated basis.
January 4, 2010. The text of the
proposed rule change is available on the
Exchange’s Web site at https://
www.cboe.org/Legal, at the Exchange’s
Office of the Secretary, and at the
Commission.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.33
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–30948 Filed 12–29–09; 8:45 am]
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CBOE 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 CBOE has
prepared summaries, set forth in
sections A, B, and C below, of the most
significant aspects of such statements.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61232; File No. SR–CBOE–
2009–094]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating To Increasing
the Session Fee for the Regulatory
Element of Continuing Education
Requirements
December 23, 2009.
mstockstill on DSKH9S0YB1PROD with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
17, 2009, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the CBOE. CBOE has
designated this proposal as one
establishing or changing a due, fee, or
other charge applicable only to a
member under Section 19(b)(3)(A)(ii) of
the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to amend its Fees
Schedule to increase the session fee for
the Regulatory Element of the
Continuing Education requirements of
Rule 9.3A with an implementation date
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
33 17
19:01 Dec 29, 2009
1. Purpose
The Regulatory Element, a computerbased education program administered
by the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) to help ensure
that registered persons are kept up-todate on regulatory, compliance, and
sales practice matters in the industry, is
a component of the Securities Industry
Continuing Education Program
(‘‘Program’’) under Rule 9.3A. The
Securities Industry/Regulatory Council
on Continuing Education (‘‘Council’’)
was organized in 1995 to facilitate
cooperative industry/regulatory
coordination of the administration and
future development of the Program in
keeping with applicable industry
regulations and changing industry
needs. Its roles include recommending
and helping develop specific content
and questions for the Regulatory
Element, defining minimum core
curricula for the Firm Element
component of the Program, and
developing and updating information
about the Program for industry-wide
dissemination.5
It is the Council’s responsibility to
maintain the Program on a revenue
neutral basis while maintaining
adequate reserves for unanticipated
future expenditures.6 CBOE members
5 The Council currently consists of 20
individuals, 14 of whom are securities industry
professionals and six of whom represent selfregulatory organizations, including CBOE.
6 The Regulatory Element session fee was initially
set at $75 when NASD established the continuing
education requirements in 1995.
32 15
VerDate Nov<24>2008
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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Frm 00108
Fmt 4703
Sfmt 4703
currently pay $75 each time one of their
registered persons participates in the
Regulatory Element. Following the
consolidation of NASD’s and NYSE
Regulation’s member regulation
operations and the creation of FINRA,
FINRA assumed responsibility for all
aspects of the Program and thereafter
conducted a financial review and
evaluation of the program’s budget.
Based on this assessment, FINRA
determined that an increase in the
Regulatory Element session fee is
necessary to cover the full costs
associated with the Program, including
costs associated with the redesign of the
Regulatory Element.7
CBOE’s proposed implementation
date is January 4, 2010.8
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934
(‘‘Act’’) 9, in general, and furthers the
objectives of Sections 6(b)(4) 10 and
6(b)(5) 11 of the Act in particular, in that
it is designed to provide for the
equitable allocation of reasonable dues,
fees, and other charges among CBOE
members and other persons using its
facilities, and that CBOE rules must be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, and, in general, to protect
investors and the public interest. CBOE
believes that the proposed rule change
is designed to accomplish these ends by
enabling the Program to be maintained
on a revenue neutral basis while
maintaining adequate reserves for
unanticipated future expenditures.
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 [sic] purposes of the Act.
7 The redesign updates the presentation and
content of the Regulatory Element to take advantage
of the latest innovations in adult learning theories
and technological advances. This is the first such
large-scale redesign since the inception of the
Program and should result in a significantly
improved product and experience for members.
FINRA will first implement the redesign of the
General Program (S101) and the Series 6 Program
(S106). The redesign of the Supervisors Program
(S201) will be implemented at a later stage.
8 The Commission notes that this proposed rule
change would increase the Regulatory Element
session fee from $75 to $100.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
11 15 U.S.C. 78f(b)(5).
E:\FR\FM\30DEN1.SGM
30DEN1
Federal Register / Vol. 74, No. 249 / Wednesday, December 30, 2009 / Notices
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
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A) of the Act 12 and
subparagraph (f)(2) of Rule 19b–4 13
thereunder. At any time within 60 days
of the filing of the proposed rule change,
the Commission may summarily
abrogate 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.
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:
mstockstill on DSKH9S0YB1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2009–094 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–CBOE–2009–094. 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 Web site (https://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 inspection and copying in
the Commission’s Public Reference
Room on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of such filing also will be available for
inspection and copying at the principal
office of CBOE. 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–
2009–094 and should be submitted on
or before January 20, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–30928 Filed 12–29–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61233; File No. SR–NYSE–
2009–111]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Approving the Proposed Rule Change,
as Modified by Amendment No. 1,
Amending NYSE Rule 123C To Modify
the Procedures for Its Closing Process
and Making Conforming Changes to
NYSE Rules 13 and 15
December 23, 2009.
I. Introduction
On November 9, 2009, the New York
Stock Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
modify the procedures for its closing
process in Rule 123C and make
conforming changes to NYSE Rules 13
(‘‘Definitions of Orders’’) and Rule 15
(‘‘Pre-Opening Indications’’). The
proposed rule change was published for
comment in the Federal Register on
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
12 15
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(2).
VerDate Nov<24>2008
19:01 Dec 29, 2009
1 15
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69169
November 17, 2009.3 On November 25,
2009, the Exchange filed Amendment
No. 1 to the proposed rule change.4 The
Commission received one comment
letter on the proposal.5 This order
approves the proposed rule change as
amended.
II. Description of the Proposal
The Exchange seeks to amend NYSE
Rule 123C to modify its closing
process.6 Specifically, the Exchange
proposes to amend NYSE Rule 123C to:
(i) Extend the time for the entry of
Market ‘‘At-The-Close’’ (‘‘MOC’’) and
Limit ‘‘At-The-Close’’ (‘‘LOC’’) orders
from 3:40 p.m. to 3:45 p.m.; (ii) amend
the procedures for the entry of MOC/
LOC orders in response to imbalance
publications and regulatory trading
halts; (iii) change to the cancellation
time for MOC/LOC orders to 3:58 p.m.;
(iv) require only one mandatory
imbalance publication; (v) rescind the
provisions governing Expiration Friday
Auxiliary Procedures for the Opening
and Due Diligence Requirements; (vi)
modify the dissemination of Order
Imbalance Information pursuant to
NYSE Rule 123C(6) to commence at 3:45
3 See Securities Exchange Act Release No. 60974
(November 9, 2009), 74 FR 59299 (‘‘Notice’’).
4 In Amendment No. 1, the Exchange proposes to
correct an erroneous cross-reference in Exhibit 5.
Because Amendment No. 1 is technical in nature,
the Commission is not publishing it for comment.
5 See Letter from John F. Neary, Managing
Director, Morgan Stanley, to Elizabeth M. Murphy,
Secretary, Commission, dated December 8, 2009
(‘‘Morgan Stanley Letter’’).
While the Morgan Stanley Letter welcomed the
incremental progress under the proposal with
regard to transperancy, the commenter urged NYSE
to adopt additional changes to the closing process,
including mandating a final and absolute cutoff
time for participation in the closing process and
instituting a more transparent and accurate
calculation of the real time closing imbalance feed.
On December 18, 2009, NYSE responded to the
Morgan Stanley letter. See Letter from Janet M.
Kissane, Senior Vice President—Legal & Corporate
Secretary, NYSE Euronext, to Elizabeth M. Murphy,
Secretary, Commission (‘‘Response Letter’’). In the
Response Letter, NYSE noted that it took into
consideration input provided by its diverse
constituent base, including Morgan Stanley, in
crafting the changes to the closing process, as well
as accommodating the interests of diverse
constituencies whose business models vary widely,
and ensuring that changes are implemented in a
way that minimizes the possibility of unintended
consequences. NYSE stated that, given available
development resources and the complexity of
modern markets, it was hesitant to introduce a level
of incremental change that could have broadranging and unforeseen consequences. NYSE noted
further that, as it implements the changes to the
closing process, it will continue to work with its
varied constituency, including Morgan Stanley, to
assess the operation of the closing process, with an
eye toward any potential changes in the behavior
of market participants and to identify further ways
to enhance the efficiency and transparency of the
Close.
6 Conforming changes related to the information
disseminated prior to the opening transaction are
also proposed.
E:\FR\FM\30DEN1.SGM
30DEN1
]]>Agencies
[Federal Register Volume 74, Number 249 (Wednesday, December 30, 2009)]
[Notices]
[Pages 69168-69169]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-30928]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61232; File No. SR-CBOE-2009-094]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating To Increasing the Session Fee for the Regulatory
Element of Continuing Education Requirements
December 23, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 17, 2009, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or the ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the CBOE.
CBOE has designated this proposal as one establishing or changing a
due, fee, or other charge applicable only to a member under Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend its Fees Schedule to increase the session
fee for the Regulatory Element of the Continuing Education requirements
of Rule 9.3A with an implementation date January 4, 2010. The text of
the proposed rule change is available on the Exchange's Web site at
https://www.cboe.org/Legal, at the Exchange's Office of the Secretary,
and at the Commission.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CBOE 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 CBOE 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 Regulatory Element, a computer-based education program
administered by the Financial Industry Regulatory Authority, Inc.
(``FINRA'') (f/k/a National Association of Securities Dealers, Inc.
(``NASD'')) to help ensure that registered persons are kept up-to-date
on regulatory, compliance, and sales practice matters in the industry,
is a component of the Securities Industry Continuing Education Program
(``Program'') under Rule 9.3A. The Securities Industry/Regulatory
Council on Continuing Education (``Council'') was organized in 1995 to
facilitate cooperative industry/regulatory coordination of the
administration and future development of the Program in keeping with
applicable industry regulations and changing industry needs. Its roles
include recommending and helping develop specific content and questions
for the Regulatory Element, defining minimum core curricula for the
Firm Element component of the Program, and developing and updating
information about the Program for industry-wide dissemination.\5\
---------------------------------------------------------------------------
\5\ The Council currently consists of 20 individuals, 14 of whom
are securities industry professionals and six of whom represent
self-regulatory organizations, including CBOE.
---------------------------------------------------------------------------
It is the Council's responsibility to maintain the Program on a
revenue neutral basis while maintaining adequate reserves for
unanticipated future expenditures.\6\ CBOE members currently pay $75
each time one of their registered persons participates in the
Regulatory Element. Following the consolidation of NASD's and NYSE
Regulation's member regulation operations and the creation of FINRA,
FINRA assumed responsibility for all aspects of the Program and
thereafter conducted a financial review and evaluation of the program's
budget. Based on this assessment, FINRA determined that an increase in
the Regulatory Element session fee is necessary to cover the full costs
associated with the Program, including costs associated with the
redesign of the Regulatory Element.\7\
---------------------------------------------------------------------------
\6\ The Regulatory Element session fee was initially set at $75
when NASD established the continuing education requirements in 1995.
\7\ The redesign updates the presentation and content of the
Regulatory Element to take advantage of the latest innovations in
adult learning theories and technological advances. This is the
first such large-scale redesign since the inception of the Program
and should result in a significantly improved product and experience
for members. FINRA will first implement the redesign of the General
Program (S101) and the Series 6 Program (S106). The redesign of the
Supervisors Program (S201) will be implemented at a later stage.
---------------------------------------------------------------------------
CBOE's proposed implementation date is January 4, 2010.\8\
---------------------------------------------------------------------------
\8\ The Commission notes that this proposed rule change would
increase the Regulatory Element session fee from $75 to $100.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act'') \9\, in general, and furthers
the objectives of Sections 6(b)(4) \10\ and 6(b)(5) \11\ of the Act in
particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among CBOE
members and other persons using its facilities, and that CBOE rules
must be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, and, in
general, to protect investors and the public interest. CBOE believes
that the proposed rule change is designed to accomplish these ends by
enabling the Program to be maintained on a revenue neutral basis while
maintaining adequate reserves for unanticipated future expenditures.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 [sic] purposes of the Act.
[[Page 69169]]
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
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \12\ and subparagraph (f)(2)
of Rule 19b-4 \13\ thereunder. At any time within 60 days of the filing
of the proposed rule change, the Commission may summarily abrogate 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.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2009-094 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2009-094. 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 Web site (https://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 inspection and
copying in the Commission's Public Reference Room on official business
days between the hours of 10 a.m. and 3 p.m. Copies of such filing also
will be available for inspection and copying at the principal office of
CBOE. 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-2009-094 and should be submitted on or before January 20, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E9-30928 Filed 12-29-09; 8:45 am]
BILLING CODE 8011-01-P
