Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Correct Rule 3.6A, 67031-67033 [2016-23493]
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Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices
III. Discussion and Commission
Findings
After careful review of the proposal,
as modified by Amendment Nos. 1 and
No. 2, the Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.24 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,25 which requires,
among other things, that the rules of a
national securities 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
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.
Under amended Exchange Rule 49,
the Exchange would maintain its own
Disaster Recovery Facility to continue
Exchange operations when necessary
without substantial disruption to
member organizations. This Disaster
Recovery Facility would allow the
Exchange to no longer designate NYSE
Arca as its backup facility but instead
operate as a fully electronic exchange on
its own facilities, under its own trading
rules, with its own order book and with
quotes and trades publicly reported
under the Exchange’s own reporting
symbol. The proposed rule change
would also require member
organizations to participate in
scheduled functional and performance
testing of the Exchange’s business
continuity and disaster recovery plans
in the manner and frequency specified
by the Exchange, which shall not be less
than once every 12 months.26
Under the proposal, the Exchange
CEO would be authorized to make a
determination for the Exchange to trade
securities on the Disaster Recovery
Facility only when the CEO deems such
action to be necessary or appropriate for
the maintenance of a fair and orderly
market, or for the protection of investors
or otherwise in the public interest, due
to extraordinary circumstances. The
Exchange CEO must notify the Exchange
board of directors as soon as feasible if
deemed necessary or appropriate for the
maintenance of a fair and orderly market, or the
protection of investors of otherwise in the public
interest, due to extraordinary circumstances.
24 In approving these proposed rule changes, the
Commission has considered the proposed rules’
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the CEO makes a determination to use
the Disaster Recovery Facility.
The Commission believes that the
proposal is reasonably designed to
permit the Exchange to continue to
operate in the event of an emergency by
using a secondary data center located in
a geographically diverse location to
open, trade, and close Exchange-listed
securities. Accordingly, the Commission
believes that the proposal is designed to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and to
protect investors and the public interest,
and the Commission therefore finds that
the proposed rule change is consistent
with the requirements of the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,27 that the
proposed rule change (SR–NYSE–2016–
48), as modified by Amendments No. 1
and Partial Amendment No. 2, be, and
hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
Brent J. Fields,
Secretary.
[FR Doc. 2016–23494 Filed 9–28–16; 8:45 am]
BILLING CODE 8011–01–P
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 ‘‘noncontroversial’’ proposed rule change
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
25 15 U.S.C. 78f(b)(5).
26 See Proposed Exchange Rule 49(b)(N).
27 15 U.S.C. 78s(b)(2).
28 17 CFR 200.30–3(a)(12).
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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.
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, marketmaking 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:
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices
Category of registration
Qualification
examination(s)
Securities Trader (TD) ...................................
Securities Trader Principal (TP) ** ................
Series 57.
Series 24 ...................
Securities Trader Compliance Officer (CT) ...
Series 14 ...................
Alternative acceptable qualifications
General Securities Sales Supervisor Registration and General Securities
Principal—Sales Supervisor Module Registration (Series 9/10 and Series 23) *
General Securities 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 (https://www.cboe.com/About
CBOE/CBOELegalRegulatory
Home.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.
mstockstill on DSK3G9T082PROD with NOTICES
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
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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.
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
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00114
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
8 15
7 Id.
PO 00000
general public. The proposed rule
change is correcting an inadvertent
typographical error.
9 17
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E:\FR\FM\29SEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
29SEN1
Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Brent J. Fields,
Secretary.
[FR Doc. 2016–23493 Filed 9–28–16; 8:45 am]
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:
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78918; File No. SR–
NASDAQ–2016–104]
Electronic Comments
• Use the Commission’s Internet
comment form (https://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
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Order
Granting Approval of a Proposed Rule
Change To Amend Nasdaq Rule 5735
To Adopt Generic Listing Standards
for Managed Fund Shares
September 23, 2016.
I. Introduction
mstockstill on DSK3G9T082PROD with NOTICES
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
On August 16, 2016, The NASDAQ
Stock Market LLC (‘‘Nasdaq’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
All submissions should refer to File
19(b)(1) of the Securities Exchange Act
Number SR–CBOE–2016–067. This file
of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and
number should be included on the
2
subject line if e-mail is used. To help the Rule 19b–4 thereunder, a proposed rule
change to amend Nasdaq Rule 5735 to,
Commission process and review your
among other things, adopt generic
comments more efficiently, please use
only one method. The Commission will listing standards for Managed Fund
post all comments on the Commission’s Shares. The proposed rule change was
published for comment in the Federal
Internet website (https://www.sec.gov/
Register on August 24, 2016.3 The
rules/sro.shtml). Copies of the
Commission has received no comments
submission, all subsequent
on the proposed rule change. This order
amendments, all written statements
grants approval of the proposed rule
with respect to the proposed rule
change.
change that are filed with the
Commission, and all written
II. Description of the Proposal
communications relating to the
Nasdaq Rule 5735 governs the listing
proposed rule change between the
Commission and any person, other than and trading of Managed Fund Shares on
the Exchange. Managed Fund Shares are
those that may be withheld from the
issued by actively managed exchangepublic in accordance with the
traded funds (‘‘ETFs’’) that do not seek
provisions of 5 U.S.C. 552, will be
to replicate the performance of a
available for website viewing and
specified index of securities.
printing in the Commission’s Public
Under its current rules, the Exchange
Reference Room, 100 F Street NE.,
must file separate proposals under
Washington, DC 20549 on official
Section 19(b) of the Act before listing a
business days between the hours of
new series of Managed Fund Shares.4
10:00 a.m. and 3:00 p.m. Copies of the
The Exchange proposes to adopt
filing also will be available for
‘‘generic’’ listing standards so that the
inspection and copying at the principal
Exchange may list Managed Fund
office of the Exchange. All comments
received will be posted without change; Shares that satisfy the applicable criteria
by submitting notice pursuant to Rule
the Commission does not edit personal
19b–4(e) under the Act, rather than by
identifying information from
submissions. You should submit only
10 17 CFR 200.30–3(a)(12).
information that you wish to make
1 15 U.S.C. 78s(b)(1).
available publicly. All submissions
2 17 CFR 240.19b–4.
should refer to File Number SR–CBOE–
3 See Securities Exchange Act Release No. 78616
2016–067 and should be submitted on
(Aug. 18, 2016), 81 FR 57968 (‘‘Notice’’).
or before October 20, 2016.
4 See Nasdaq Rule 5735(b)(1).
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67033
filing a proposed rule change under
Section 19(b) of the Act.5
A. Description of the Generic Listing
Standards
The Exchange’s listing standards
establish requirements for the various
types of assets that may be held in the
portfolio of a generically listed, actively
managed ETF (‘‘Portfolio’’).
1. Equity Portfolio Components
Nasdaq Rule 5735(b)(1)(A) establishes
the criteria applicable to the equity
securities included in a Portfolio. Equity
securities include the following
securities: U.S. Component Stocks,
which are defined in Nasdaq Rule 5705;
Non-U.S. Component Stocks, which are
defined in Nasdaq Rule 5705; Exchange
Traded Derivative Securities, which are
defined in Nasdaq Rule 5735(c)(6); 6
Linked Securities, which are defined in
Nasdaq Rule 5710, and each of the
equivalent security types listed on
another national securities exchange.
Additionally, Nasdaq Rule 5735(b)(1)(A)
provides that no more than 25% of the
equity weight of the Portfolio can
include leveraged or inverse-leveraged
Exchange Traded Derivative Securities
or Linked Securities and that, to the
extent a Portfolio includes convertible
securities, the equity securities into
which such securities are converted
must meet the criteria of Nasdaq Rule
5735(b)(1)(A) after converting.
Nasdaq Rule 5735(b)(1)(A)(i) would
require that U.S. Component Stocks
(except as mentioned below) meet the
following criteria initially and on a
continuing basis:
(1) Component stocks (excluding
Exchange Traded Derivative Securities
and Linked Securities) that in the
aggregate account for at least 90% of the
equity weight of the Portfolio (excluding
Exchange Traded Derivative Securities
and Linked Securities) each shall have
a minimum market value of at least $75
million;
5 See 17 CFR 240.19b–4(e). Rule 19b–4(e) permits
self-regulatory organizations (‘‘SROs’’) to list and
trade new derivative securities products that
comply with existing SRO trading rules,
procedures, surveillance programs, and listing
standards, without submitting a proposed rule
change under Section 19(b). See Securities
Exchange Act Release No. 40761 (Dec. 8, 1998), 63
FR 70952 (Dec. 22, 1998).
6 Nasdaq Rule 5735(c)(6) defines ‘‘Exchange
Traded Derivative Securities’’ as: ‘‘the securities
described in Nasdaq Rules 5705(a) (Portfolio
Depository Receipts); 5705(b) (Index Fund Shares);
5720 (Trust Issued Receipts); 5711(d) (CommodityBased Trust Shares); 5711(e) (Currency Trust
Shares); 5711(f) (Commodity Index Trust Shares);
5711(g) (Commodity Futures Trust Shares); 5711(h)
(Partnership Units); 5711(i) (Trust Units); 5735
(Managed Fund Shares); and 5711(j) (Managed
Trust Securities).’’
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]]>Agencies
[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.
---------------------------------------------------------------------------
\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 (https://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.
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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.
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.
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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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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 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 (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 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
