Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Revisions to the Series 9/10 Examination Program, 74076-74078 [E5-7325]
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74076
Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices
Electronic Comments
series, 9 and 10, to receive a passing
grade.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(c)(3)(B) 9 of the Act, in that it
provides for the prescription by NYSE
of standards of training, experience, and
competence for persons associated with
NYSE members and member
organizations.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
• 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–NYSE–2005–85 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52918; File No. SR–PCX–
2005–113]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto Relating to Revisions to the
Series 9/10 Examination Program
December 7, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
NYSE does not believe that the
notice is hereby given that on November
proposed rule change will result in any
17, 2005, the Pacific Exchange, Inc.
burden on competition that is not
All submissions should refer to File
(‘‘PCX’’ or ‘‘Exchange’’) filed with the
necessary or appropriate in furtherance
Number SR–NYSE–2005–85. This file
Securities and Exchange Commission
of the purposes of the Act.
number should be included on the
(‘‘SEC’’ or ‘‘Commission’’) the proposed
subject line if e-mail is used. To help the
C. Self-Regulatory Organization’s
rule change as described in Items I, II,
Commission process and review your
Statement on Comments on the
and III below, which Items have been
comments more efficiently, please use
Proposed Rule Change Received From
prepared by PCX. On November 22,
only one method. The Commission will 2005, PCX filed Amendment No. 1 to
Members, Participants or Others
post all comments on the Commission’s the proposed rule change. PCX has
Comments were neither solicited nor
Internet Web site (https://www.sec.gov/
designated the proposed rule change as
received.
rules/sro.shtml). Copies of the
constituting a stated policy, practice, or
III. Date of Effectiveness of the
submission, all subsequent
interpretation with respect to the
Proposed Rule Change and Timing for
amendments, all written statements
meaning, administration, or
Commission Action
with respect to the proposed rule
enforcement of an existing rule of the
self-regulatory organization pursuant to
The proposed rule change has become change that are filed with the
Commission, and all written
Section 19(b)(3)(A)(i) of the Act 3 and
effective pursuant to Section
Rule 19b–4(f)(1) thereunder,4 which
communications relating to the
19(b)(3)(A)(i) 10 of the Act and Rule 19b–
renders the proposal effective upon
proposed rule change between the
11 in that the
4(f)(1) thereunder,
Commission and any person, other than filing with the Commission. The
proposed rule change constitutes a
Commission is publishing this notice to
stated policy, practice, or interpretation those that may be withheld from the
solicit comments on the proposed rule
public in accordance with the
with respect to the meaning,
change, as amended, from interested
provisions of 5 U.S.C. 552, will be
administration, or enforcement of an
persons.
available for inspection and copying in
existing rule of the self-regulatory
the Commission’s Public Reference
organization. The Exchange will
I. Self-Regulatory Organization’s
announce the implementation date to its Room. Copies of such filing also will be Statement of the Terms of Substance of
members and member organizations in
available for inspection and copying at
the Proposed Rule Change
an Information Memo to be published
the principal office of the NYSE. All
PCX is filing revisions to the study
no later than 30 days after SEC Notice
comments received will be posted
outline and selection specifications for
of this filing.
without change; the Commission does
the Limited Principal—General
At any time within 60 days of the
not edit personal identifying
Securities Sales Supervisor (Series 9/10)
filing of the proposed rule change, the
information from submissions. You
examination program. The proposed
Commission may summarily abrogate
should submit only information that
revisions update the material to reflect
such rule change if it appears to the
you wish to make available publicly. All changes to the laws, rules, and
Commission that such action is
submissions should refer to File
regulations covered by the examination,
necessary or appropriate in the public
Number SR–NYSE–2005–85 and should as well as modify the content of the
interest, for the protection of investors,
be submitted on or before January 4,
examination program to track more
or otherwise in furtherance of the
2006.
closely the functional workflow of a
purposes of the Act.
Series 9/10 limited principal. PCX is not
For the Commission, by the Division of
proposing any textual changes to the
IV. Solicitation of Comments
Market Regulation, pursuant to delegated
existing PCX rules.
12
authority.
Interested persons are invited to
The revised study outline is available
Jonathan G. Katz,
submit written data, views, and
on PCX’s Web site (https://
arguments concerning the foregoing,
Secretary.
www.pacificex.com), at PCX, and at the
including whether the proposed rule
[FR Doc. E5–7327 Filed 12–13–05; 8:45 am]
Commission. However, PCX has omitted
change is consistent with the Act.
the Series 9/10 selection specifications
BILLING CODE 8010–01–P
Comments may be submitted by any of
from this filing and has submitted the
the following methods:
1 15
9 15
U.S.C. 78f(c)(3)(B).
10 15 U.S.C. 78s(b)(3)(A)(i).
11 17 CFR 240.19b–4(f)(1).
VerDate Aug<31>2005
15:29 Dec 13, 2005
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
2 17
12 17
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Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices
specifications under separate cover to
the Commission with a request for
confidential treatment pursuant to Rule
24b–2 under the Act.5
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
PCX 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. PCX 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
Pursuant to Section 6(c)(3) of the
Act,6 which allows PCX to examine and
verify the standards of training,
experience, and competence for persons
associated with Equities Trading Permit
(‘‘ETP’’) Holders, PCX has developed
examinations, and requires satisfaction
of examinations developed by other
SROs, that are designed to establish that
persons associated with ETP Holders
have attained specified levels of
competence and knowledge. PCX
periodically reviews the content of
examinations to determine whether
revisions are necessary or appropriate in
view of changes pertaining to the
subject matter covered by the
examinations.
PCXE Rule 6.18(d) states that if an
ETP Holder does business with the
public, the person (or persons)
designated to direct day-to-day
compliance activity and each other
person directly supervising ten or more
persons engaged in compliance activity
must pass the General Securities Sales
Supervisor Qualification Examination
(Series 9/10). A General Securities Sales
Supervisor is precluded from
performing any of the following
activities: supervision of the origination
and structuring of underwritings;
supervision of market making
commitments; final approval of
advertisements as these are defined in
NASD Rule 2210; supervision of the
custody of firm or customer funds and/
or securities for purposes of Rule 15c3–
3 7 under the Act; or supervision of
CFR 240.24b–2.
6 15 U.S.C. 78f(c)(3).
7 17 CFR 240.15c3–3.
overall compliance with financial
responsibility rules for broker-dealers
promulgated pursuant to the provisions
of the Act. The Series 9/10 examination,
an industry-wide examination, qualifies
an individual to function as a General
Securities Sales Supervisor. The Series
9/10 examination tests a candidate’s
knowledge of securities industry rules
and regulations and certain statutory
provisions pertinent to the supervision
of sales activities.
The Series 9/10 examination program
is shared by PCX and the following
SROs: the American Stock Exchange
LLC, the Chicago Board Options
Exchange, Inc., the Municipal Securities
Rule Making Board (‘‘MSRB’’), the New
York Stock Exchange, Inc. (‘‘NYSE’’),
the National Association of Securities
Dealers, Inc. (‘‘NASD’’), and the
Philadelphia Stock Exchange, Inc.
A committee of industry
representatives, together with the staff
of PCX and the other SROs, recently
undertook a periodic review of the
Series 9/10 examination program. As a
result of this review, PCX is proposing
to update the content of the examination
to cover Regulation S–P,8 MSRB Rules
G–37/G–38, SRO research analyst and
anti-money laundering rules, municipal
fund securities (e.g., 529 college savings
plans), and exchange traded funds. PCX
is further proposing revisions to the
study outline to reflect the SEC short
sale requirements. In addition, as part of
an ongoing effort to align the
examination more closely to the
supervisory duties of a Series 9/10
limited principal, PCX is proposing to
modify the content of the examination
to track the functional workflow of a
Series 9/10 limited principal. Also, PCX
is proposing to include questions
related to parallel rules of NASD, the
options exchanges, the MSRB, and the
NYSE in the same section of the exam.
As a result of the revisions, PCX is
proposing to modify the main section
headings and the number of questions
on each section of the Series 9/10 study
outline as follows: Section 1—Hiring,
Qualifications, and Continuing
Education, 9 questions; Section 2—
Supervision of Accounts and Sales
Activities, 94 questions; Section 3—
Conduct of Associated Persons, 14
questions; Section 4—Recordkeeping
Requirements, 8 questions; Section 5—
Municipal Securities Regulation, 20
questions; Section 6—Options
Regulation, 55 questions. Sections 1
through 5 constitute the Series 10
portion of the examination. Section 6
constitutes the Series 9 portion of the
5 17
VerDate Aug<31>2005
15:29 Dec 13, 2005
examination. Series 10 covers general
securities and municipal securities, and
Series 9 covers options. The revised
examination continues to cover the
areas of knowledge required for the
supervision of sales activities.
PCX is proposing these changes to the
entire content of the Series 9/10
examination, including the selection
specifications and question bank. The
number of questions on the Series 9/10
examination will remain at 200, and
candidates will continue to have four
hours to complete the Series 10 portion
and one and one-half hours to complete
the Series 9 portion. Also, each question
will continue to count one point, and
each candidate must correctly answer
70 percent of the questions on each
series, 9 and 10, to receive a passing
grade.
As noted below, PCX understands
that the other SROs also will file with
the Commission similar proposed rule
changes reflecting the revisions to the
Series 9/10 examination program.
2. Statutory Basis
PCX believes that the proposed
revisions to the Series 9/10 examination
program are consistent with Section 6(b)
of the Act,9 in general, and further the
objectives of Section 6(b)(1) 10 in
particular, in that it is designed to
enforce compliance by ETP Holders and
persons associated with the rules of the
Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
PCX does not believe that the
proposed rule change, as amended, will
result in any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change, as
amended, has become effective pursuant
to Section 19(b)(3)(A)(i) of the Act 11 and
Rule 19b-4(f)(1) thereunder,12 in that the
proposed rule change constitutes a
stated policy, practice, or interpretation
with respect to the meaning,
administration, or enforcement of an
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(1).
11 15 U.S.C. 78s(b)(3)(A)(i).
12 17 CFR 240.19b–4(f)(1).
10 15
8 17 CFR 248.1–18; 17 CFR 248.30; and 17 CFR
248, Appendix A.
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Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices
existing rule of the self-regulatory
organization. PCX will announce the
implementation date in a Rule Adoption
Notice to be published no later than 7
days after Notice of this filing.
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.13
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, 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 rulecomments@sec.gov. Please include File
Number SR–PCX–2005–113 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR-PCX–2005–113. 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
13 The effective date of the original proposed rule
is November 17, 2005. The effective date of
Amendment No. 1 is November 22, 2005. For
purposes of calculating the 60-day period within
which the Commission may summarily abrogate the
proposed rule change under Section 19(b)(3)(C) of
the Act, the Commission considers the period to
commence on November 22, 2005, the date on
which PCX submitted Amendment No. 1. See 15
U.S.C. 78s(b)(3)(C).
VerDate Aug<31>2005
15:29 Dec 13, 2005
Jkt 208001
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the PCX. 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–PCX–2005–113 and should
be submitted on or before January 4,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7325 Filed 12–13–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52911; File No. SR–PCX–
2005–129]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Pacific Exchange, Inc. and Amendment
No. 1 Thereto Relating to the Approval
of Securities That Underlie Options
Traded on the Exchange
December 7, 2005.
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 November
23, 2005, the Pacific Exchange, Inc.
(‘‘PCX’’ or ‘‘Exchange’’) 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 self-regulatory organization. On
December 7, 2005, PCX filed
Amendment No. 1 to the proposed rule
change.3 PCX filed the proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act,4 and Rule 19b–4(f)(6)
thereunder,5 which renders the
proposal, as amended, effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Form 19b–4 dated December 7, 2005 which
replaced the original filing in its entirety
(‘‘Amendment No. 1’’). Amendment No. 1 made
clarifying changes and corrected typographical
errors in the original filing.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(6).
1 15
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Frm 00091
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change, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes changes to
PCX rules pertaining to the approval of
securities that underlie options traded
on the Exchange. Specifically, the
Exchange proposes to eliminate Rule
5.6(b)(5) and amend Rule 5.6(b)(6) and
Rule 5.3(b). A copy of the proposed rule
change is available on the PCX Web site,
(www.pacificex.com), at the PCX’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
self-regulatory organization 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 self-regulatory organization 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 purpose of this Amendment No.
1 is to make clarifying changes and
correct typographical errors in the
original filing. This Amendment No. 1
replaces the original rule filing in its
entirety. The Exchange proposes
changes to PCX rules pertaining to the
approval of securities that underlie
options traded on the Exchange.
Specifically, the Exchange proposes to
eliminate Rule 5.6(b)(5) and amend Rule
5.6(b)(6) and Rule 5.3(b).
PCX Rule 5.6(b) sets forth various
situations under which an underlying
security previously approved for
options trading will in usual
circumstances be deemed to no longer
meet Exchange requirements for the
continuance of such approval. In such
circumstances, Rule 5.6(b)(5) provides
that the Exchange will not open for
trading any additional series of options
in that class and may also limit any new
opening transactions in those options
series that have already been opened.
The Exchange proposes to eliminate this
provision because (1) it limits investors’
ability to use options to hedge existing
E:\FR\FM\14DEN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 239 (Wednesday, December 14, 2005)]
[Notices]
[Pages 74076-74078]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7325]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52918; File No. SR-PCX-2005-113]
Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change and
Amendment No. 1 Thereto Relating to Revisions to the Series 9/10
Examination Program
December 7, 2005.
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 November 17, 2005, the Pacific Exchange, Inc. (``PCX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by PCX. On
November 22, 2005, PCX filed Amendment No. 1 to the proposed rule
change. PCX has designated the proposed rule change as constituting a
stated policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule of the self-
regulatory organization pursuant to Section 19(b)(3)(A)(i) of the Act
\3\ and Rule 19b-4(f)(1) 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, as
amended, 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)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
PCX is filing revisions to the study outline and selection
specifications for the Limited Principal--General Securities Sales
Supervisor (Series 9/10) examination program. The proposed revisions
update the material to reflect changes to the laws, rules, and
regulations covered by the examination, as well as modify the content
of the examination program to track more closely the functional
workflow of a Series 9/10 limited principal. PCX is not proposing any
textual changes to the existing PCX rules.
The revised study outline is available on PCX's Web site (https://
www.pacificex.com), at PCX, and at the Commission. However, PCX has
omitted the Series 9/10 selection specifications from this filing and
has submitted the
[[Page 74077]]
specifications under separate cover to the Commission with a request
for confidential treatment pursuant to Rule 24b-2 under the Act.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 240.24b-2.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, PCX 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. PCX 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
Pursuant to Section 6(c)(3) of the Act,\6\ which allows PCX to
examine and verify the standards of training, experience, and
competence for persons associated with Equities Trading Permit
(``ETP'') Holders, PCX has developed examinations, and requires
satisfaction of examinations developed by other SROs, that are designed
to establish that persons associated with ETP Holders have attained
specified levels of competence and knowledge. PCX periodically reviews
the content of examinations to determine whether revisions are
necessary or appropriate in view of changes pertaining to the subject
matter covered by the examinations.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(c)(3).
---------------------------------------------------------------------------
PCXE Rule 6.18(d) states that if an ETP Holder does business with
the public, the person (or persons) designated to direct day-to-day
compliance activity and each other person directly supervising ten or
more persons engaged in compliance activity must pass the General
Securities Sales Supervisor Qualification Examination (Series 9/10). A
General Securities Sales Supervisor is precluded from performing any of
the following activities: supervision of the origination and
structuring of underwritings; supervision of market making commitments;
final approval of advertisements as these are defined in NASD Rule
2210; supervision of the custody of firm or customer funds and/or
securities for purposes of Rule 15c3-3 \7\ under the Act; or
supervision of overall compliance with financial responsibility rules
for broker-dealers promulgated pursuant to the provisions of the Act.
The Series 9/10 examination, an industry-wide examination, qualifies an
individual to function as a General Securities Sales Supervisor. The
Series 9/10 examination tests a candidate's knowledge of securities
industry rules and regulations and certain statutory provisions
pertinent to the supervision of sales activities.
---------------------------------------------------------------------------
\7\ 17 CFR 240.15c3-3.
---------------------------------------------------------------------------
The Series 9/10 examination program is shared by PCX and the
following SROs: the American Stock Exchange LLC, the Chicago Board
Options Exchange, Inc., the Municipal Securities Rule Making Board
(``MSRB''), the New York Stock Exchange, Inc. (``NYSE''), the National
Association of Securities Dealers, Inc. (``NASD''), and the
Philadelphia Stock Exchange, Inc.
A committee of industry representatives, together with the staff of
PCX and the other SROs, recently undertook a periodic review of the
Series 9/10 examination program. As a result of this review, PCX is
proposing to update the content of the examination to cover Regulation
S-P,\8\ MSRB Rules G-37/G-38, SRO research analyst and anti-money
laundering rules, municipal fund securities (e.g., 529 college savings
plans), and exchange traded funds. PCX is further proposing revisions
to the study outline to reflect the SEC short sale requirements. In
addition, as part of an ongoing effort to align the examination more
closely to the supervisory duties of a Series 9/10 limited principal,
PCX is proposing to modify the content of the examination to track the
functional workflow of a Series 9/10 limited principal. Also, PCX is
proposing to include questions related to parallel rules of NASD, the
options exchanges, the MSRB, and the NYSE in the same section of the
exam.
---------------------------------------------------------------------------
\8\ 17 CFR 248.1-18; 17 CFR 248.30; and 17 CFR 248, Appendix A.
---------------------------------------------------------------------------
As a result of the revisions, PCX is proposing to modify the main
section headings and the number of questions on each section of the
Series 9/10 study outline as follows: Section 1--Hiring,
Qualifications, and Continuing Education, 9 questions; Section 2--
Supervision of Accounts and Sales Activities, 94 questions; Section 3--
Conduct of Associated Persons, 14 questions; Section 4--Recordkeeping
Requirements, 8 questions; Section 5--Municipal Securities Regulation,
20 questions; Section 6--Options Regulation, 55 questions. Sections 1
through 5 constitute the Series 10 portion of the examination. Section
6 constitutes the Series 9 portion of the examination. Series 10 covers
general securities and municipal securities, and Series 9 covers
options. The revised examination continues to cover the areas of
knowledge required for the supervision of sales activities.
PCX is proposing these changes to the entire content of the Series
9/10 examination, including the selection specifications and question
bank. The number of questions on the Series 9/10 examination will
remain at 200, and candidates will continue to have four hours to
complete the Series 10 portion and one and one-half hours to complete
the Series 9 portion. Also, each question will continue to count one
point, and each candidate must correctly answer 70 percent of the
questions on each series, 9 and 10, to receive a passing grade.
As noted below, PCX understands that the other SROs also will file
with the Commission similar proposed rule changes reflecting the
revisions to the Series 9/10 examination program.
2. Statutory Basis
PCX believes that the proposed revisions to the Series 9/10
examination program are consistent with Section 6(b) of the Act,\9\ in
general, and further the objectives of Section 6(b)(1) \10\ in
particular, in that it is designed to enforce compliance by ETP Holders
and persons associated with the rules of the Exchange.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(1).
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B. Self-Regulatory Organization's Statement on Burden on Competition
PCX does not believe that the proposed rule change, as amended,
will result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change, as amended, has become effective pursuant
to Section 19(b)(3)(A)(i) of the Act \11\ and Rule 19b-4(f)(1)
thereunder,\12\ in that the proposed rule change constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an
[[Page 74078]]
existing rule of the self-regulatory organization. PCX will announce
the implementation date in a Rule Adoption Notice to be published no
later than 7 days after Notice of this filing.
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\11\ 15 U.S.C. 78s(b)(3)(A)(i).
\12\ 17 CFR 240.19b-4(f)(1).
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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.\13\
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\13\ The effective date of the original proposed rule is
November 17, 2005. The effective date of Amendment No. 1 is November
22, 2005. For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on November 22, 2005, the date on which PCX submitted
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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, as amended, 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-PCX-2005-113 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-PCX-2005-113. 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. Copies of such
filing also will be available for inspection and copying at the
principal office of the PCX. 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-PCX-2005-113 and should be submitted on or before
January 4, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-7325 Filed 12-13-05; 8:45 am]
BILLING CODE 8010-01-P
