Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend BATS Rule 2.5, Entitled “Restrictions,” and BATS Rule 11.4, Entitled “Authorized Traders.”, 5690-5692 [E9-2020]
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mstockstill on PROD1PC66 with NOTICES
5690
Federal Register / Vol. 74, No. 19 / Friday, January 30, 2009 / Notices
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Form SH (17 CFR 249.326T) is
required to be submitted to the
Commission by institutional investment
managers subject to the existing Form
13F (17 CFR 249.325) filing
requirements on the first business day of
each week in which the institutional
investment manager has entered into
any new short positions or closed part
or all of any short positions with respect
to any Section 13(f) (15 U.S.C. 78m(f))
securities except for options. We
estimate that 1,000 institutional
investment managers subject to the
Form 13F filing requirements will file
Form SH to report the entry into short
positions with respect to Section 13(f)
securities. We estimate that each will
file 36 Form SH reports during the ninemonth period that Rule 10a–3T will be
in effect. We further estimate that each
of the 1,000 institutional investment
managers will spend an average of 20
hours preparing each Form SH.
Therefore the estimated total reporting
burden associated with Form SH is
720,000 hours (1,000 respondents × 20
hours per form × 36 forms).
Written comments are invited on: (a)
Whether this collection of information
is necessary for the proper performance
of the functions of the agency, including
whether the information will have
practical utility; (b) the accuracy of the
agency’s estimate of the burden imposed
by the collection of information; (c)
ways to enhance the quality, utility, and
clarity of the information collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Please direct your written comments
to Charles Boucher, Director/CIO,
Securities and Exchange Commission,
c/o Shirley Martinson, 6432 General
Green Way, Alexandria, Virginia 22312;
or send an e-mail to:
PRA_Mailbox@sec.gov.
January 26, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2019 Filed 1–29–09; 8:45 am]
16:54 Jan 29, 2009
[File No. 500–1]
In the Matter of Future Canada China
Environment Inc.; Order of Suspension
of Trading
January 28, 2009.
It appears to the Securities and
Exchange Commission that the public
interest and the protection of investors
require a suspension of trading in the
securities of Future Canada China
Environment Inc. Questions have arisen
concerning recent trading activity in the
company’s stock during which its share
price increased from $0.92 to $28.50.
Questions have also arisen concerning
the accuracy and adequacy of publicly
available information regarding its
potential acquisition of another
company. Future Canada China
Environment Inc., a company that has
made public filings with the
Commission, is quoted on the OTC
Bulletin Board and Pink Sheets operated
by Pink OTC Markets Inc. under the
ticker symbol ‘‘FCCE.’’
The Commission is of the opinion that
the public interest and the protection of
the investors require a suspension of
trading in securities of the above-listed
company.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the abovelisted company is suspended for the
period from 9:30 a.m. EST, January 28,
2009, through 11:59 p.m. EST, on
February 10, 2009.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–2159 Filed 1–28–09; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59292; File No. SR–BATS–
2009–003]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend BATS Rule 2.5,
Entitled ‘‘Restrictions,’’ and BATS Rule
11.4, Entitled ‘‘Authorized Traders.’’
January 23, 2009.
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 January
1 15
2 17
BILLING CODE 8011–01–P
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SECURITIES AND EXCHANGE
COMMISSION
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00057
Fmt 4703
16, 2009, BATS Exchange, Inc. (‘‘BATS’’
or the ‘‘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 Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
BATS Rule 2.5, entitled ‘‘Restrictions,’’
and BATS Rule 11.4, entitled
‘‘Authorized Traders,’’ to permit
qualification and registration of
Authorized Traders of Members
pursuant to certain foreign examination
modules equivalent to the Series 7
examination.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Exchange Rules 2.5 and 11.4 both
state that the Series 7 is required for
registration with the Exchange as an
Authorized Trader. The purpose of the
proposed rule change is to expand the
types of exams that may satisfy the
Exchange’s Series 7 requirement by
recognizing foreign examination
3 15
4 17
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E:\FR\FM\30JAN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii)
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mstockstill on PROD1PC66 with NOTICES
modules equivalent to the Series 7
examination.
The proposal would reduce
duplicative qualification standards that
foreign registered representatives
encounter to qualify as a U.S. general
securities registered representative. For
example, the examination modules for
the U.K. (Series 17) and Canada (Series
37⁄38) currently are accepted as
equivalent to the U.S. Series 7 by the
NYSE, the Financial Industry
Regulatory Authority (‘‘FINRA’’), the
NASDAQ Stock Market, NYSE
AlterNext US, NYSE Arca, and the
Chicago Board Options Exchange
(‘‘CBOE’’).5
The Series 17 version, the United
Kingdom—Limited General Securities
Registered Representative Examination,
is for U.K. registrants who have
successfully completed the basic exam
of the U.K. and who are in good
standing with the Financial Services
Authority (‘‘FSA’’). Essentially, this
modified Series 7 examination deletes
those substantive sections of the
standard Series 7 that overlap with the
FSA examination. The Series 17 is a 100
question examination, is 120 minutes in
duration, and deals with U.S. securities
laws, regulations, sales practices and
special products drawn from the
standard Series 7 examination.
The Series 37 version is for Canadian
registrants who have successfully
completed the basic core module of the
CSI Global Education (‘‘CSI’’, formerly
the Canadian Securities Institute)
program. The Series 38 version is for
Canadian registrants who, in addition to
having successfully completed the basic
core module of the CSI program, have
also successfully completed the
Canadian option and futures program.
Both the Series 37 and 38 share topics
and test questions with the parent Series
7 program but cover only subject matter
that is not covered, or not covered in
sufficient detail, on the Canadian
qualification examination. The Series 37
has 90 questions and is 150 minutes in
5 See, e.g., Securities Exchange Act Release No.
27967 (May 1, 1990), 55 FR 19124 (May 8, 1990)
(approving File No. SR–NYSE–89–22, Series 17);
Securities Exchange Act Release No. 36629,
International Series Release No. 909 (Dec. 21, 1995),
60 FR 67385, corrected, Securities Exchange Act
Release No. 36629A, International Series Release
No. 909A (Jan. 4, 1996), 61 FR 744 (Jan. 10, 1996)
(approving File No. SR–NYSE–95–29, Series 37 and
Series 38); Securities Exchange Act Release No.
36825 (Feb. 9, 1996), 61 FR 6052 (approving File
No. SR–NASD–96–04, Series 37 and 38); Securities
Exchange Act Release No. 38274 (February 12,
1997), 62 FR 7485 (approving File No. SR–CBOE–
97–04, Series 17, 37 and 38); Securities Exchange
Act Release No. 38921 (August 11, 1997), 62 FR
44023 (approving File No. SR–AMEX–97–26, Series
17, 37 and 38); see also NASD Rule 1032(a)(2)(B)
and (C); NASDAQ Rule 1032(a)(2)(B) and (C).
VerDate Nov<24>2008
16:54 Jan 29, 2009
Jkt 217001
duration, while the Series 38, an
abbreviated version of the series 37, has
only 45 questions and is 75 minutes in
duration. Forty-five questions pertaining
to options from the series 37 were
omitted from the Series 38.
The Exchange wishes to give U.K. and
Canadian registered representatives the
same advantage they have at other
exchanges by eliminating duplicative
examinations. The Exchange believes
that acceptance of these examinations
will benefit both the Exchange and the
foreign representatives affected by the
proposal. Accordingly, pursuant to the
amended rules, as proposed, the
Exchange would approve the
examination modules for the U.K.
(Series 17) and Canada (Series 37⁄38) as
equivalent foreign examination
modules.6 In addition, the rule changes
as proposed will permit the Exchange to
accept other foreign examination
modules if, in the future, such modules
are developed and approved by the
Exchange as an equivalent foreign
examination module.
2. Statutory Basis
The statutory basis for the Exchange’s
acceptance of these foreign examination
modules lies in Section 6(c)(3)(B) of the
Act.7 Under that section, it is the
Exchange’s responsibility to prescribe
standards of training, experience, and
competence for persons associated with
Exchange Members. Pursuant to this
statutory obligation, the Exchange has
adopted examinations that are
administered by other self-regulatory
organizations to establish that
Authorized Traders of Exchange
Members have attained specified levels
of competence and knowledge.
The Exchange believes the proposal is
consistent with the requirements of the
Act and the rules and regulations
thereunder that are applicable to a
national securities exchange, and, in
particular, with the requirements of
Section 6(b).8 In particular, for the
reasons described above, the proposed
change is consistent with Section 6(b)(5)
of the Act,9 because it would promote
just and equitable principles of trade,
6 The Exchange notes that the U.K. (Series 17) and
Canada (Series 37/38) represent foreign
examination modules that allow persons in good
standing with the securities regulators of their
respective countries to qualify as general securities
registered representatives (equivalent to Series 7
registrants) by successfully completing certain
modified general securities representative
examinations which were developed, along with
others for other foreign jurisdictions, by the New
York Stock Exchange (‘‘NYSE’’) more than 10 years
ago.
7 15 U.S.C. 78f(c)(3)(B).
8 15 U.S.C. 78(f)(b).
9 15 U.S.C. 78f(b)(5).
PO 00000
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5691
remove impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, protect investors and the public
interest, by helping foreign
representatives to qualify for registration
with the Exchange by reducing
duplicative qualification requirements.
Accordingly, the modifications to BATS
Rules 2.5 and 11.4 promote just and
equitable principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system.
(B) Self-Regulatory Organization’s
Statement of Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
(C) Self-Regulatory Organization’s
Statement on Comments Regarding the
Proposed Rule Changes Received From
Members, Participants or Others
The Exchange has 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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 10 and Rule
19b–4(f)(6) thereunder.11 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and Rule 19b–4(f)(6)(iii)
thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),15 the
10 U.S.C.
78s(b)(3)(A)(iii).
240.19b–4(f)(6).
12 U.S.C. 78s(b)(3)(A).
13 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
14 CFR 240.19b–4(f)(6).
15 CFR 240.19b–4(f)(6)(iii).
11 CFR
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Federal Register / Vol. 74, No. 19 / Friday, January 30, 2009 / Notices
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission has determined
that waiving the 30-day operative delay
of the Exchange’s proposal is consistent
with the protection of investors and the
public interest because such waiver will
reduce duplicative qualification
standards that foreign registered
representatives encounter to qualify as a
U.S. general securities registered
representative. Additionally, the
Commission notes that other selfregulatory organizations currently
accept certain foreign examination
modules as equivalent to the Series 7
examination as satisfactory proficiency
examinations. Therefore, the
Commission designates the proposal as
operative upon filing.16 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:
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–BATS–2009–003 on the
subject line.
mstockstill on PROD1PC66 with NOTICES
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–BATS–2009–003. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
16 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Nov<24>2008
16:54 Jan 29, 2009
Jkt 217001
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 BATS. 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–BATS–
2009–003 and should be submitted on
or before February 20, 2009.
For the Commission, by the Division of
Trading & Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2020 Filed 1–29–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59298; File No. SR–DTC–
2008–15]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Order Granting Accelerated
Approval of a Proposed Rule Change
To Provide The Options Clearing
Corporation With Settlement Services
for Stock Loan Transactions Entered
Into Under the Market Loan Program
January 26, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
December 23, 2008, The Depository
Trust Company (‘‘DTC’’) 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
primarily by DTC. The Commission is
17 17
1 15
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00059
Fmt 4703
Sfmt 4703
publishing this notice and order to
solicit comments on the proposed rule
change and to grant accelerated
approval of the proposal.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
DTC is seeking to provide settlement
services for stock loan transactions
entered into under The Options Clearing
Corporation’s (‘‘OCC’’) proposed Market
Loan Program.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,
DTC 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. DTC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
OCC has approached DTC seeking
DTC’s settlement services for its
proposed Market Loan Program in
which OCC will act as a central
counterparty for stock loan transactions.
Under the proposal, OCC will submit
stock loan deliver orders to DTC on a
locked-in basis on behalf of the parties
to the transactions. OCC will open a
new account at DTC for this service.
Under OCC’s proposed Market Loan
Program, a stock loan is initiated when
a lender is matched with a borrower
through an electronic platform that
supports securities lending and
borrowing transactions by matching
lenders and borrowers based on loan
terms that each party is willing to
accept. Once matched, the electronic
platform will send details of the
matched stock loan transaction to OCC.
If the matched transaction passes OCC’s
validation process, OCC will create and
send to DTC a pair of delivery orders,
one message instructing DTC to transfer
a specified number of shares of a
specified eligible stock from the lending
Participant to OCC’s account and the
2 OCC filed a proposed rule change (File No. SR–
OCC–2008–20) with the Commission that is being
approved simultaneously with this proposed rule
change to describe proposed changes in its rules for
purposes of establishing the Market Loan Program.
3 The Commission has modified the text of the
summaries prepared by DTC.
E:\FR\FM\30JAN1.SGM
30JAN1
]]>Agencies
[Federal Register Volume 74, Number 19 (Friday, January 30, 2009)]
[Notices]
[Pages 5690-5692]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2020]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59292; File No. SR-BATS-2009-003]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
BATS Rule 2.5, Entitled ``Restrictions,'' and BATS Rule 11.4, Entitled
``Authorized Traders.''
January 23, 2009.
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 January 16, 2009, BATS Exchange, Inc. (``BATS'' or the
``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 Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend BATS Rule 2.5, entitled
``Restrictions,'' and BATS Rule 11.4, entitled ``Authorized Traders,''
to permit qualification and registration of Authorized Traders of
Members pursuant to certain foreign examination modules equivalent to
the Series 7 examination.
The text of the proposed rule change is available at the Exchange's
Web site at https://www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Exchange Rules 2.5 and 11.4 both state that the Series 7 is
required for registration with the Exchange as an Authorized Trader.
The purpose of the proposed rule change is to expand the types of exams
that may satisfy the Exchange's Series 7 requirement by recognizing
foreign examination
[[Page 5691]]
modules equivalent to the Series 7 examination.
The proposal would reduce duplicative qualification standards that
foreign registered representatives encounter to qualify as a U.S.
general securities registered representative. For example, the
examination modules for the U.K. (Series 17) and Canada (Series \37/
38\) currently are accepted as equivalent to the U.S. Series 7 by the
NYSE, the Financial Industry Regulatory Authority (``FINRA''), the
NASDAQ Stock Market, NYSE AlterNext US, NYSE Arca, and the Chicago
Board Options Exchange (``CBOE'').\5\
---------------------------------------------------------------------------
\5\ See, e.g., Securities Exchange Act Release No. 27967 (May 1,
1990), 55 FR 19124 (May 8, 1990) (approving File No. SR-NYSE-89-22,
Series 17); Securities Exchange Act Release No. 36629, International
Series Release No. 909 (Dec. 21, 1995), 60 FR 67385, corrected,
Securities Exchange Act Release No. 36629A, International Series
Release No. 909A (Jan. 4, 1996), 61 FR 744 (Jan. 10, 1996)
(approving File No. SR-NYSE-95-29, Series 37 and Series 38);
Securities Exchange Act Release No. 36825 (Feb. 9, 1996), 61 FR 6052
(approving File No. SR-NASD-96-04, Series 37 and 38); Securities
Exchange Act Release No. 38274 (February 12, 1997), 62 FR 7485
(approving File No. SR-CBOE-97-04, Series 17, 37 and 38); Securities
Exchange Act Release No. 38921 (August 11, 1997), 62 FR 44023
(approving File No. SR-AMEX-97-26, Series 17, 37 and 38); see also
NASD Rule 1032(a)(2)(B) and (C); NASDAQ Rule 1032(a)(2)(B) and (C).
---------------------------------------------------------------------------
The Series 17 version, the United Kingdom--Limited General
Securities Registered Representative Examination, is for U.K.
registrants who have successfully completed the basic exam of the U.K.
and who are in good standing with the Financial Services Authority
(``FSA''). Essentially, this modified Series 7 examination deletes
those substantive sections of the standard Series 7 that overlap with
the FSA examination. The Series 17 is a 100 question examination, is
120 minutes in duration, and deals with U.S. securities laws,
regulations, sales practices and special products drawn from the
standard Series 7 examination.
The Series 37 version is for Canadian registrants who have
successfully completed the basic core module of the CSI Global
Education (``CSI'', formerly the Canadian Securities Institute)
program. The Series 38 version is for Canadian registrants who, in
addition to having successfully completed the basic core module of the
CSI program, have also successfully completed the Canadian option and
futures program. Both the Series 37 and 38 share topics and test
questions with the parent Series 7 program but cover only subject
matter that is not covered, or not covered in sufficient detail, on the
Canadian qualification examination. The Series 37 has 90 questions and
is 150 minutes in duration, while the Series 38, an abbreviated version
of the series 37, has only 45 questions and is 75 minutes in duration.
Forty-five questions pertaining to options from the series 37 were
omitted from the Series 38.
The Exchange wishes to give U.K. and Canadian registered
representatives the same advantage they have at other exchanges by
eliminating duplicative examinations. The Exchange believes that
acceptance of these examinations will benefit both the Exchange and the
foreign representatives affected by the proposal. Accordingly, pursuant
to the amended rules, as proposed, the Exchange would approve the
examination modules for the U.K. (Series 17) and Canada (Series \37/
38\) as equivalent foreign examination modules.\6\ In addition, the
rule changes as proposed will permit the Exchange to accept other
foreign examination modules if, in the future, such modules are
developed and approved by the Exchange as an equivalent foreign
examination module.
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\6\ The Exchange notes that the U.K. (Series 17) and Canada
(Series 37/38) represent foreign examination modules that allow
persons in good standing with the securities regulators of their
respective countries to qualify as general securities registered
representatives (equivalent to Series 7 registrants) by successfully
completing certain modified general securities representative
examinations which were developed, along with others for other
foreign jurisdictions, by the New York Stock Exchange (``NYSE'')
more than 10 years ago.
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2. Statutory Basis
The statutory basis for the Exchange's acceptance of these foreign
examination modules lies in Section 6(c)(3)(B) of the Act.\7\ Under
that section, it is the Exchange's responsibility to prescribe
standards of training, experience, and competence for persons
associated with Exchange Members. Pursuant to this statutory
obligation, the Exchange has adopted examinations that are administered
by other self-regulatory organizations to establish that Authorized
Traders of Exchange Members have attained specified levels of
competence and knowledge.
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\7\ 15 U.S.C. 78f(c)(3)(B).
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The Exchange believes the proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b).\8\ In particular, for the
reasons described above, the proposed change is consistent with Section
6(b)(5) of the Act,\9\ because it would promote just and equitable
principles of trade, remove impediments to, and perfect the mechanism
of, a free and open market and a national market system, and, in
general, protect investors and the public interest, by helping foreign
representatives to qualify for registration with the Exchange by
reducing duplicative qualification requirements. Accordingly, the
modifications to BATS Rules 2.5 and 11.4 promote just and equitable
principles of trade, remove impediments to, and perfect the mechanism
of, a free and open market and a national market system.
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\8\ 15 U.S.C. 78(f)(b).
\9\ 15 U.S.C. 78f(b)(5).
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(B) Self-Regulatory Organization's Statement of Burden on Competition
The Exchange does not believe that the proposed rule change imposes
any burden on competition.
(C) Self-Regulatory Organization's Statement on Comments Regarding the
Proposed Rule Changes Received From Members, Participants or Others
The Exchange has 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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6)(iii) thereunder.\13\
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\10\ U.S.C. 78s(b)(3)(A)(iii).
\11\ CFR 240.19b-4(f)(6).
\12\ U.S.C. 78s(b)(3)(A).
\13\ CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the
[[Page 5692]]
Commission may designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The
Commission has determined that waiving the 30-day operative delay of
the Exchange's proposal is consistent with the protection of investors
and the public interest because such waiver will reduce duplicative
qualification standards that foreign registered representatives
encounter to qualify as a U.S. general securities registered
representative. Additionally, the Commission notes that other self-
regulatory organizations currently accept certain foreign examination
modules as equivalent to the Series 7 examination as satisfactory
proficiency examinations. Therefore, the Commission designates the
proposal as operative upon filing.\16\ 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.
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\14\ CFR 240.19b-4(f)(6).
\15\ CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 e-mail to rule-comments@sec.gov. Please include
File Number SR-BATS-2009-003 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-BATS-2009-003. 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
BATS. 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-
BATS-2009-003 and should be submitted on or before February 20, 2009.
For the Commission, by the Division of Trading & Markets,
pursuant to delegated authority.\17\
Florence E. Harmon,
Deputy Secretary.
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\17\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-2020 Filed 1-29-09; 8:45 am]
BILLING CODE 8011-01-P
