Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt the Selection Specifications and Study Outline for the Operations Professional (“Series 99”) Examination Program, 55443-55445 [2011-22765]
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Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / 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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65222; File No. SR–FINRA–
2011–041]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
All submissions should refer to File
Number SR–FINRA–2011–042. This file Immediate Effectiveness of Proposed
Rule Change To Adopt the Selection
number should be included on the
subject line if e-mail is used. To help the Specifications and Study Outline for
the Operations Professional (‘‘Series
Commission process and review your
99’’) Examination Program
comments more efficiently, please use
only one method. The Commission will August 30, 2011.
post all comments on the Commission’s
Pursuant to Section 19(b)(1) of the
Internet Web site (https://www.sec.gov/
Securities Exchange Act of 1934
rules/sro.shtml). Copies of the
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
submission, all subsequent
notice is hereby given that on August
amendments, all written statements
22, 2011, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
with respect to the proposed rule
Securities and Exchange Commission
change that are filed with the
(‘‘SEC’’ or ‘‘Commission’’) the proposed
Commission, and all written
rule change as described in Items I and
communications relating to the
II below, which Items have been
proposed rule change between the
Commission and any person, other than prepared by FINRA. FINRA has
designated the proposed rule change as
those that may be withheld from the
constituting a ‘‘non-controversial’’ rule
public in accordance with the
change under paragraph (f)(6) of Rule
provisions of 5 U.S.C. 552, will be
19b–4 under the Act,3 which renders
available for Web site viewing and
the proposal effective upon receipt of
printing in the Commission’s Public
this filing by the Commission. The
Reference Room, 100 F Street, NE.,
Commission is publishing this notice to
Washington, DC 20549, on official
solicit comments on the proposed rule
business days between the hours of 10
change from interested persons.
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
copying at the principal office of
the Proposed Rule Change
FINRA. All comments received will be
posted without change; the Commission
FINRA is proposing to adopt the
does not edit personal identifying
selection specifications and content
information from submissions. You
outline for the Operations Professional
(‘‘Series 99’’) examination program.4
should submit only information that
The Series 99 examination program is
you wish to make available publicly. All
proposed in connection with FINRA
submissions should refer to File
Rule 1230(b)(6), a new representative
Number SR–FINRA–2011–042 and
registration category and qualification
should be submitted on or before
examination requirement for certain
September 28, 2011.
operations personnel. FINRA is not
For the Commission, by the Division of
proposing any textual changes to its ByTrading and Markets, pursuant to delegated
Laws, Schedules to the By-Laws or
15
authority.
rules.
Elizabeth M. Murphy,
A description of the Series 99
examination is included in the attached
Secretary.
content outline. Additional information
[FR Doc. 2011–22764 Filed 9–6–11; 8:45 am]
on the examination is included in the
BILLING CODE 8011–01–P
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
4 Based upon instruction from the Commission
staff, FINRA is submitting SR–FINRA–2011–041 for
immediate effectiveness pursuant to Section
19(b)(3)(A) of the Act and Rule 19b–4(f)(6)
thereunder, and is not filing the question bank for
Commission review. See Letter from Belinda Blaine,
Associate Director, Division of Market Regulation,
SEC, to Alden S. Adkins, Senior Vice President and
General Counsel, NASD Regulation, dated July 24,
2000. The question bank is available for
Commission review.
emcdonald on DSK5VPTVN1PROD with NOTICES
2 17
15 17
CFR 200.30–3(a)(12).
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55443
Series 99 selection specifications, which
FINRA has submitted under separate
cover with a request for confidential
treatment to the Commission’s Secretary
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,
FINRA 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. FINRA 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
On June 16, 2011, the Commission
approved FINRA Rule 1230(b)(6), which
establishes a registration category and
qualification examination requirement
for certain operations personnel—
Operations Professionals.6 FINRA is
expanding its registration provisions to
require registration of certain
individuals (‘‘covered persons’’) who
are engaged in, responsible for or
supervising certain member operations
functions (‘‘covered functions’’) to
enhance the regulatory structure
surrounding these areas.7 FINRA Rule
1230(b)(6) is intended, among other
things, to increase covered persons’
awareness and knowledge that they are
operating in a regulated environment
designed to protect investors’ interests
and the integrity of the operations of a
broker-dealer.
Pursuant to Section 15A(g)(3)(B) of
the Act,8 FINRA is authorized to
prescribe standards of training,
experience, and competence for persons
associated with FINRA members. The
5 17
CFR 240.24b–2.
Securities Exchange Act Release No. 64687
(June 16, 2011), 76 FR 36586 (June 22, 2011) (Order
Approving File No. SR–FINRA–2011–013). In
addition to adopting FINRA Rule 1230(b)(6), the
rule change adopted NASD Rule 1120 (Continuing
Education Requirements) as new FINRA Rule 1250
(Continuing Education Requirements) with certain
changes, including expanding the scope of ‘‘covered
registered persons’’ subject to the Firm Element to
include persons registered as Operations
Professionals. See Regulatory Notice 11–33 (July
2011).
7 See Regulatory Notice 11–33 (July 2011) for
information regarding the implementation period
for Operations Professionals subject to FINRA Rule
1230(b)(6).
8 15 U.S.C. 78o–3(g)(3)(B).
6 See
E:\FR\FM\07SEN1.SGM
07SEN1
55444
Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / Notices
emcdonald on DSK5VPTVN1PROD with NOTICES
Series 99 examination program has been
developed to provide reasonable
assurance that covered persons
understand their professional
responsibilities, including key
regulatory and control themes, as well
as the importance of identifying and
escalating red flags that may harm a
firm, its customers, the integrity of the
marketplace or the public. The
examination will test applicants on
general securities industry knowledge
and its associated regulations and
rules.9
The Series 99 examination consists of
100 multiple-choice questions.10
Candidates will be allowed 150 minutes
to complete the examination.
Candidates will receive an
informational breakdown of their
performance on each section of the
examination, along with their overall
score and pass/fail status at the
completion of the testing session.11
A content outline has been prepared
to assist member firms in preparing
candidates for the Series 99 examination
and is available at https://www.finra.org/
brokerqualifications/registeredrep. The
content outline describes the following
three topical sections comprising the
examination: (1) Basic Knowledge
Associated with the Securities Industry
9 FINRA Rule 1230(b)(6)(D) sets forth an
exception to the Operations Professional
qualification examination requirement for persons
who currently hold certain registrations (each an
‘‘eligible registration’’) or have held one during the
two years immediately prior to registering as an
Operations Professional. The exception also applies
to persons who do not hold an eligible registration,
but prefer an alternative to taking the Operations
Professional examination. Such persons may
register in an eligible registration category (subject
to passing the corresponding qualification
examination or obtaining a waiver) and use such
registration to qualify for Operations Professional
registration.
10 To ensure that new exam questions meet
acceptable testing standards prior to use, each
examination includes 10 additional, unidentified
‘‘pre-test’’ questions that do not contribute towards
the candidate’s score. The 10 pre-test questions are
randomly distributed throughout the examination.
11 Candidates for the Series 99 examination will
be able to schedule and take the examination
starting on October 17, 2011. Because this is a new
examination for a new registration category, FINRA
will be assessing the effectiveness of the
examination by in part, evaluating the candidates’
performance during the first 60 days of the
administration of the examination. Therefore,
candidates who take the examination within the
first 60 days (between October 17, 2011 and
December 16, 2011) will not receive their test
results on the day that they take the examination.
Instead, such candidates’ firms will be notified of
test results (i.e., the candidate’s score and whether
the candidate has passed or failed the examination)
on or shortly after December 16, 2011. The test
results will be posted to the Central Registration
Depository system (‘‘CRD® system’’) at that time.
Candidates who fail the examination during the
initial 60-day rollout will be provided an
opportunity to retake the examination at no
additional cost.
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Jkt 223001
(32 questions); (2) Basic Knowledge
Associated with Broker-Dealer
Operations (48 questions); and (3)
Professional Conduct and Ethical
Considerations (20 questions).
The selection specifications for the
Series 99 examination, which FINRA
has submitted under separate cover with
a request for confidential treatment to
the Commission’s Secretary pursuant to
Rule 24b–2 under the Act,12 describe
additional confidential information
regarding the examination.
FINRA has filed the proposed rule
change for immediate effectiveness. The
implementation date of the proposed
rule change and corresponding FINRA
Rule 1230(b)(6) will be October 17,
2011.
2. Statutory Basis
FINRA believes that the proposed
Series 99 examination program is
consistent with Section 15A(b)(6) of the
Act,13 which requires, among other
things, that FINRA rules be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest and Section 15A(g)(3) of
the Act,14 which authorizes FINRA to
prescribe standards of training,
experience, and competence for persons
associated with FINRA members.
FINRA believes the proposed rule
change to expand FINRA’s registration
and qualification requirements to
Operations Professionals will help
ensure that investor protection
mechanisms are in place in all areas of
a member’s business that could harm
the member, a customer, the integrity of
the marketplace or the public.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change 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
Because the foregoing proposed rule
change does not: (i) Significantly affect
CFR 240.24b–2.
U.S.C. 78o–3(b)(6).
14 15 U.S.C. 78o–3(g)(3).
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) 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 15 and Rule
19b4(f)(6) thereunder.16
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
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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–FINRA–2011–041 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–FINRA–2011–041. 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
12 17
13 15
PO 00000
Frm 00100
Fmt 4703
15 15
16 17
Sfmt 4703
E:\FR\FM\07SEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
07SEN1
Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / Notices
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site 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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA. 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–FINRA–2011–041 and
should be submitted on or before
September 28, 2011.
thereunder,4 proposes to change the
name of the BX Ouch BBO Feed to the
BX MatchView Feed (the ‘‘Feed’’) and to
modify the contents of the Feed in two
ways. The Feed provides a view of how
the Exchange views the Best Bid and
Offer (‘‘BBO’’) available from all market
centers for each individual security the
Exchange trades.
The Exchange has filed this proposal
under Rule 19b–4(f)(6) 5 under the Act
and BX has provided the Commission
with the notice required by Rule 19b–
4(f)(6)(iii) under the Act.6
The text of the proposed rule change
is available from BX’s Web site at
https://nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/, at BX’s
principal office, and at the
Commission’s Public Reference Room.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Elizabeth M. Murphy,
Secretary.
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 Exchange
has prepared summaries, set forth in
sections A, B, and C below, of the most
significant aspects of such statements.
[FR Doc. 2011–22765 Filed 9–6–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65226; File No. SR–BX–
2011–059]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Change the
Name of the BX Ouch BBO Feed to the
BX MatchView Feed and To Modify Its
Contents
August 30, 2011.
emcdonald on DSK5VPTVN1PROD with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on August
25, 2011, NASDAQ OMX BX, Inc. (‘‘BX’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II,
below, which Items have been prepared
by the Exchange. 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, pursuant to Section
19(b)(1) of the Act 3 and Rule 19b–4
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
This proposal regards the BX
MatchView Feed (formerly known as
the BX Ouch BBO Feed), a data feed that
represents the Exchange’s view of best
bid and offer data received from all
market centers. The Feed is available to
all Exchange members and market
participants equally at no charge,
offering all participants transparent,
real-time data concerning the
Exchange’s view of the BBO data. The
Exchange makes the Feed available on
a subscription basis to market
participants that are connected to the
Exchange whether through extranets,
direct connection, or Internet-based
virtual private networks.
Currently, the Feed reflects the
Exchange’s view of the BBO data, at any
given time, based on orders executed on
the Exchange and updated quote
information from the network
processors.7 The Feed contains the
4 17
CFR 240.19b–4.
CFR 240.19b–4(f)(6).
6 17 CFR 240.19b–4(f)(6)(iii).
7 The Feed will not reflect all information
available to the Exchange. Specifically, the Feed
17 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(1).
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55445
following data elements: symbol, bid
price, and ask price.8 Unlike the BX
TotalView feed, the MatchView feed
does not contain information about
individual orders, either those residing
within the Exchange system or those
executed or routed by the Exchange.
Unlike the network processor feeds
containing the National Best Bid and
Offer (‘‘NBBO’’), the MatchView Feed
does not identify either the market
center quoting the BBO or the size of the
BBO quotes. It merely contains the
symbol and bid and offer prices.
The Exchange is modifying the inputs
used for calculating the prices reflected
on the Feed. Currently, the Feed reflects
bids and offers contained on data feeds
from the network processors, as well as
certain BX orders referenced below. In
the future, the Feed will continue to
reflect these orders entered on the
Exchange but rather than reflect only
individual exchange bids and offers
received from the network processors,
the Feed will reflect individual
exchange bids and offers received either
from the network processor or directly
from an exchange that disseminates bids
and offers to vendors via a proprietary
data feed. The Exchange will reflect bids
and offers from another exchange’s
proprietary data feed only when the
Exchange deems the proprietary data
feed to be sufficiently reliable and also
faster than the network processor.9
This determination—whether to
utilize bids and offers from the network
processor feed or from a direct
proprietary data feed—will be made by
the Exchange on a market-by-market
basis based upon objective criteria about
reliability and speed. The
determination, once made, will apply to
all bids and offers from an exchange; it
will not be made on a stock-by-stock
basis. Additionally, the determination,
will exclude information about the routing of orders
to away exchanges. Thus, although the Exchange
execution system and routing engine will know
when a bid or offer from an away market is no
longer available because the Exchange has routed
an order to the bid or offer, the Feed will not reflect
such routing activity.
8 The Feed also contains a time stamp and
message type field for reference.
9 The Exchange is also changing its policies and
procedures under Regulation NMS governing the
data feeds used by its execution system and routing
engine. Current policies state that those systems use
data provided by the network processors. In the
future, those systems will use data provided either
by the network processors or by proprietary feeds
offered by certain exchanges directly to vendors.
The determination of which data feed to utilize will
be the same as the determination made with respect
to the Feed. In other words, the Exchange execution
system, routing engine and Feed will each utilize
the same data for a given exchange although, as set
forth in footnote 5, the Feed does not contain all
information available to the execution system and
routing engine.
E:\FR\FM\07SEN1.SGM
07SEN1
]]>Agencies
[Federal Register Volume 76, Number 173 (Wednesday, September 7, 2011)]
[Notices]
[Pages 55443-55445]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-22765]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65222; File No. SR-FINRA-2011-041]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Adopt the Selection Specifications and Study
Outline for the Operations Professional (``Series 99'') Examination
Program
August 30, 2011.
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 August 22, 2011, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by FINRA. FINRA has designated
the proposed rule change as constituting a ``non-controversial'' rule
change under paragraph (f)(6) of Rule 19b-4 under the Act,\3\ which
renders the proposal effective upon receipt of this filing by 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\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to adopt the selection specifications and
content outline for the Operations Professional (``Series 99'')
examination program.\4\
---------------------------------------------------------------------------
\4\ Based upon instruction from the Commission staff, FINRA is
submitting SR-FINRA-2011-041 for immediate effectiveness pursuant to
Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder, and
is not filing the question bank for Commission review. See Letter
from Belinda Blaine, Associate Director, Division of Market
Regulation, SEC, to Alden S. Adkins, Senior Vice President and
General Counsel, NASD Regulation, dated July 24, 2000. The question
bank is available for Commission review.
---------------------------------------------------------------------------
The Series 99 examination program is proposed in connection with
FINRA Rule 1230(b)(6), a new representative registration category and
qualification examination requirement for certain operations personnel.
FINRA is not proposing any textual changes to its By-Laws, Schedules to
the By-Laws or rules.
A description of the Series 99 examination is included in the
attached content outline. Additional information on the examination is
included in the Series 99 selection specifications, which FINRA has
submitted under separate cover with a request for confidential
treatment to the Commission's Secretary 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, FINRA 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. FINRA 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
On June 16, 2011, the Commission approved FINRA Rule 1230(b)(6),
which establishes a registration category and qualification examination
requirement for certain operations personnel--Operations
Professionals.\6\ FINRA is expanding its registration provisions to
require registration of certain individuals (``covered persons'') who
are engaged in, responsible for or supervising certain member
operations functions (``covered functions'') to enhance the regulatory
structure surrounding these areas.\7\ FINRA Rule 1230(b)(6) is
intended, among other things, to increase covered persons' awareness
and knowledge that they are operating in a regulated environment
designed to protect investors' interests and the integrity of the
operations of a broker-dealer.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 64687 (June 16,
2011), 76 FR 36586 (June 22, 2011) (Order Approving File No. SR-
FINRA-2011-013). In addition to adopting FINRA Rule 1230(b)(6), the
rule change adopted NASD Rule 1120 (Continuing Education
Requirements) as new FINRA Rule 1250 (Continuing Education
Requirements) with certain changes, including expanding the scope of
``covered registered persons'' subject to the Firm Element to
include persons registered as Operations Professionals. See
Regulatory Notice 11-33 (July 2011).
\7\ See Regulatory Notice 11-33 (July 2011) for information
regarding the implementation period for Operations Professionals
subject to FINRA Rule 1230(b)(6).
---------------------------------------------------------------------------
Pursuant to Section 15A(g)(3)(B) of the Act,\8\ FINRA is authorized
to prescribe standards of training, experience, and competence for
persons associated with FINRA members. The
[[Page 55444]]
Series 99 examination program has been developed to provide reasonable
assurance that covered persons understand their professional
responsibilities, including key regulatory and control themes, as well
as the importance of identifying and escalating red flags that may harm
a firm, its customers, the integrity of the marketplace or the public.
The examination will test applicants on general securities industry
knowledge and its associated regulations and rules.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78o-3(g)(3)(B).
\9\ FINRA Rule 1230(b)(6)(D) sets forth an exception to the
Operations Professional qualification examination requirement for
persons who currently hold certain registrations (each an ``eligible
registration'') or have held one during the two years immediately
prior to registering as an Operations Professional. The exception
also applies to persons who do not hold an eligible registration,
but prefer an alternative to taking the Operations Professional
examination. Such persons may register in an eligible registration
category (subject to passing the corresponding qualification
examination or obtaining a waiver) and use such registration to
qualify for Operations Professional registration.
---------------------------------------------------------------------------
The Series 99 examination consists of 100 multiple-choice
questions.\10\ Candidates will be allowed 150 minutes to complete the
examination. Candidates will receive an informational breakdown of
their performance on each section of the examination, along with their
overall score and pass/fail status at the completion of the testing
session.\11\
---------------------------------------------------------------------------
\10\ To ensure that new exam questions meet acceptable testing
standards prior to use, each examination includes 10 additional,
unidentified ``pre-test'' questions that do not contribute towards
the candidate's score. The 10 pre-test questions are randomly
distributed throughout the examination.
\11\ Candidates for the Series 99 examination will be able to
schedule and take the examination starting on October 17, 2011.
Because this is a new examination for a new registration category,
FINRA will be assessing the effectiveness of the examination by in
part, evaluating the candidates' performance during the first 60
days of the administration of the examination. Therefore, candidates
who take the examination within the first 60 days (between October
17, 2011 and December 16, 2011) will not receive their test results
on the day that they take the examination. Instead, such candidates'
firms will be notified of test results (i.e., the candidate's score
and whether the candidate has passed or failed the examination) on
or shortly after December 16, 2011. The test results will be posted
to the Central Registration Depository system (``CRD[supreg]
system'') at that time. Candidates who fail the examination during
the initial 60-day rollout will be provided an opportunity to retake
the examination at no additional cost.
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A content outline has been prepared to assist member firms in
preparing candidates for the Series 99 examination and is available at
https://www.finra.org/brokerqualifications/registeredrep. The content
outline describes the following three topical sections comprising the
examination: (1) Basic Knowledge Associated with the Securities
Industry (32 questions); (2) Basic Knowledge Associated with Broker-
Dealer Operations (48 questions); and (3) Professional Conduct and
Ethical Considerations (20 questions).
The selection specifications for the Series 99 examination, which
FINRA has submitted under separate cover with a request for
confidential treatment to the Commission's Secretary pursuant to Rule
24b-2 under the Act,\12\ describe additional confidential information
regarding the examination.
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\12\ 17 CFR 240.24b-2.
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FINRA has filed the proposed rule change for immediate
effectiveness. The implementation date of the proposed rule change and
corresponding FINRA Rule 1230(b)(6) will be October 17, 2011.
2. Statutory Basis
FINRA believes that the proposed Series 99 examination program is
consistent with Section 15A(b)(6) of the Act,\13\ which requires, among
other things, that FINRA rules be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest and Section 15A(g)(3) of the Act,\14\ which authorizes
FINRA to prescribe standards of training, experience, and competence
for persons associated with FINRA members. FINRA believes the proposed
rule change to expand FINRA's registration and qualification
requirements to Operations Professionals will help ensure that investor
protection mechanisms are in place in all areas of a member's business
that could harm the member, a customer, the integrity of the
marketplace or the public.
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\13\ 15 U.S.C. 78o-3(b)(6).
\14\ 15 U.S.C. 78o-3(g)(3).
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B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change 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
Because the foregoing 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 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 \15\ and Rule
19b4(f)(6) thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6).
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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 Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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-FINRA-2011-041 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-FINRA-2011-041. 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
[[Page 55445]]
public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site 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 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of FINRA. 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-FINRA-2011-041 and should be submitted on or before September 28,
2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Elizabeth M. Murphy,
Secretary.
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\17\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2011-22765 Filed 9-6-11; 8:45 am]
BILLING CODE 8011-01-P
