Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Extend the Compliance Deadline for Qualification Pursuant to Rule 3.6A, 55447-55449 [2011-22774]

Download as PDF Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / Notices 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 Web site viewing and printing in the Commission’s Public Reference Room on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–BX–2011–059 and should be submitted on or before September 28, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–22775 Filed 9–6–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Extend the Compliance Deadline for Qualification Pursuant to Rule 3.6A emcdonald on DSK5VPTVN1PROD with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘the ‘‘Act’’),1 notice is hereby given that on August 23, 2011, Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by CBOE. The Exchange has designated this proposal as one 18 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 17:37 Sep 06, 2011 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),4 the Exchange proposes to extend the September 19, 2011 deadline to October 29, 2011 to comply with its rules regarding registration and qualification of individual Trading Permit Holders and individual associated persons.5 CBOE is not proposing any textual changes to the Rules of CBOE. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.cboe.org/legal), at the Exchange’s Office of the Secretary and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. CBOE has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, Proposed Rule Change 1. Purpose August 30, 2011. VerDate Mar<15>2010 constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule under Section 19((b)(3)(A)(i) of the Act,2 and Rule 19b–4(f((1) 3 thereunder, which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. Jkt 223001 Pursuant to Rule 15b7–1,6 promulgated under the Exchange Act,7 ‘‘No registered broker or dealer shall 2 15 U.S.C. 78s(b)(3)(A)(i). CFR 19b–4(f)(1). 4 15 U.S.C. 78s(b)(1). 5 The Commission notes that the extension until October 29, 2011 is an extension of the time to pass the appropriate qualification exam. All individual Trading Permit Holders and individual associated persons not already registered in WebCRD were to be registered as of January 11, 2011. See Securities Exchange Act Release No. 63314 (November 12, 2010), 75 FR 70957 (November 19, 2010), at 70958. 6 17 CFR 240.15b7–1. 7 15 U.S.C. 78a et seq. 3 17 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 55447 effect any transaction in * * * any security unless any natural person associated with such broker or dealer who effects or is involved in effecting such transaction is registered or approved in accordance with the standards of training, experience, competence, and other qualification standards…established by the rules of any national securities exchange…’’ CBOE Rule 3.6A sets forth the requirements for registration and qualification of individual Trading Permit Holders and individual associated persons. In response to a request by the Division of Trading and Markets at the Securities and Exchange Commission (the ‘‘Commission’’ or ‘‘SEC’’), CBOE recently amended its rules to expand its registration and qualification requirements set forth in CBOE Rule 3.6A to include individual Trading Permit Holders and individual associated persons that are engaged or to be engaged in the securities business of a Trading Permit Holder or TPH organization.8 CBOE Rule 3.6A provides that these individuals must be registered with the Exchange in the category of registration appropriate to the function to be performed as prescribed by the Exchange. Further, Rule 3.6A requires, among other things, that an individual Trading Permit Holder or individual associated person submit an application for registration and pass the appropriate qualification examination before the registration can become effective. The revised requirements apply to both CBOE and CBOE Stock Exchange (‘‘CBSX’’) Trading Permit Holders and their associated persons. In conjunction with the registration requirements established by SR–CBOE– 2010–084, three new qualification examinations became available on June 20, 2011 in the Central Registration Depository system (‘‘WebCRD’’), which is operated by the Financial Industry Regulatory Authority, Incorporated (‘‘FINRA’’). These registration categories include the following (the required qualification examinations and prerequisites, as applicable, associated with each registration category are in parentheses): PT—Proprietary Trader (Series 56), CT—Proprietary Trader Compliance Officer (Series 14, Series 56 prerequisite) and TP—Proprietary Trader Principal (Series 24, Series 56 prerequisite). In the Approval Order for SR–CBOE–2010–084, the SEC established a deadline of August 12, 2011 for CBOE and CBSX individual Trading Permit Holders and individual 8 See Securities Exchange Act Release No. 63314 (November 12, 2010), 75 FR 70957 (November 19, 2010) (SR–CBOE–2010–084). E:\FR\FM\07SEN1.SGM 07SEN1 55448 Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / Notices emcdonald on DSK5VPTVN1PROD with NOTICES associated persons of CBOE and CBSX Trading Permit Holders to register for and pass the applicable qualification examination(s), approximately seven weeks from the date the qualification exams became available. CBOE recently submitted a rule filing extending the deadline until September 19, 2011.9 The International Securities Exchange, LLC (‘‘ISE’’) recently submitted a rule filing setting forth the content outline for the Series 56.10 In conjunction with this filing, ISE issued a Regulatory Information Circular 11 establishing a deadline of October 29, 2011 for complying with its new registration and qualification requirements. CBOE respectfully requests to extend the September 19, 2011 deadline to October 29, 2011 (or such other later compliance date as the Commission deems appropriate for the participating self-regulatory organizations) to be consistent with the deadline provided to ISE members to comply with the registration and qualification requirements.12 CBOE believes its proposal to extend this deadline is reasonable and necessary in an effort to implement consistent standards for registration and qualification across selfregulatory organizations. CBOE continues to evaluate the reasonability of the proposed deadline in light of various factors including, but not limited to, the following: (i) Potential disruption to the marketplace if a Market-Maker or Designated Primary Market-Maker does not satisfy the qualification requirements; (ii) system enforced delays in registering for an examination in WebCRD upon an individual’s failure of a qualification examination; (iii) examination scheduling limitations due to the volume of individuals required to take the examination(s); and (iv) the ability for those individuals subject to heightened qualification examinations to prepare for, schedule and pass more than one examination in an extremely limited window of time. CBOE will 9 See Securities Exchange Act Release No. 64946 (July 21, 2011), 76 FR 44972 (July 27, 2011) (SR– CBOE–2011–064). 10 See Securities Exchange Act Release No. 65086 (August 10, 2011), 76 FR 50796 (August 16, 2011) [sic] (SR–ISE–2011–036). 11 See ISE Regulatory Information Circular 2011– 15 (issued August 15, 2011). 12 The International Securities Exchange (‘‘ISE’’) received approval for a rule filing establishing substantially similar registration and qualification requirements on February 4, 2011. The Approval Order for SR–ISE–2010–115 provides that ‘‘Associated persons of ISE members will have 90 days from the date the examination becomes available to take and pass the examination.’’ See Securities Exchange Act Release No. 63843 (February 4, 2011), 76 FR 7884 (February 11, 2011) (SR–ISE–2010–115). VerDate Mar<15>2010 17:37 Sep 06, 2011 Jkt 223001 continue to update Commission staff and evaluate whether additional rule filings are necessary to address reasonability concerns in conjunction with requiring compliance within the proposed time frame. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,13 in general, and furthers the objectives of Section 6(b)(1) 14 of the Act in particular, in that it is designed to enforce compliance by Exchange members and persons associated with its members with the rules of the Exchange. The Exchange also believes the proposed rule change furthers the objectives of Section 6(c)(3) 15 of the Act, which authorizes CBOE to prescribe standards of training, experience and competence for persons associated with CBOE members, in that this filing is proposing to extend the deadline for compliance with the standards of training, experience and competence established by the Exchange. CBOE believes that its proposal is reasonable in that it establishes a deadline for compliance with the registration and qualification requirements that is consistent with the deadline in place for ISE members and their associated persons. 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. 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–CBOE–2011–081 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CBOE–2011–081. This file B. Self-Regulatory Organization’s number should be included on the Statement on Burden on Competition subject line if e-mail is used. To help the CBOE does not believe that the Commission process and review your proposed rule change will impose any comments more efficiently, please use burden on competition that is not only one method. The Commission will necessary or appropriate in furtherance post all comments on the Commission’s of the Act. Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the C. Self-Regulatory Organization’s submission, all subsequent Statement on Comments on the amendments, all written statements Proposed Rule Change Received From with respect to the proposed rule Members, Participants or Others change that are filed with the No written comments were solicited Commission, and all written or received with respect to the proposed communications relating to the rule change. proposed rule change between the Commission and any person, other than III. Date of Effectiveness of the those that may be withheld from the Proposed Rule Change and Timing for public in accordance with the Commission Action provisions of 5 U.S.C. 552, will be The foregoing proposed rule change available for Web site viewing and will take effect upon filing with the printing in the Commission’s Public Commission pursuant to Section Reference Room, 100 F Street, NE., 16 and Rule 19b– 19(b)(3)(A)(i) of the Act Washington, DC 20549, on official 4(f)(1) thereunder,17 because it business days between the hours of 10 constitutes a stated policy, practice, or a.m. and 3 p.m. Copies of such filing interpretation with respect to the also will be available for inspection and meaning, administration, or copying at the principal office of CBOE. enforcement of an existing rule. All comments received will be posted without change; the Commission does 13 15 U.S.C. 78f(b). not edit personal identifying 14 15 U.S.C. 78f(b)(1). information from submissions. You 15 15 U.S.C. 78f(c)(3). 16 15 U.S.C. 78s(b)(3)(A)(i). should submit only information that 17 17 CFR 240.19b–4(f)(1). you wish to make publicly available. All PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\07SEN1.SGM 07SEN1 Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / Notices submissions should refer to File Number SR–CBOE–2011–081 and should be submitted on or before September 28, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–22774 Filed 9–6–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65234; File No. SR–MSRB– 2011–10] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing of Proposed Rule Change by the Municipal Securities Rulemaking Board Consisting of Amendments to MSRB Rule G–20 (Gifts and Gratuities) and Related Amendments to MSRB Rule G–8 (Books and Records) and MSRB Rule G–9 (Preservation of Records), and To Clarify That Certain Interpretations by the Financial Industry Regulatory Authority and the National Association of Securities Dealers Would Be Applicable to Municipal Advisors August 31, 2011. emcdonald on DSK5VPTVN1PROD with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’) 1 and Rule 19b-4 thereunder,2 notice is hereby given that on August 16, 2011, the Municipal Securities Rulemaking Board (the ‘‘MSRB’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’ or ‘‘SEC’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the MSRB. 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 MSRB has filed with the Commission a proposed rule change consisting of proposed amendments to MSRB Rule G–20 (on gifts and gratuities), which would apply the rule to municipal advisors, along with related proposed amendments to Rule G–8 (on books and records) and Rule G– 9 (on preservation of records), and to clarify that certain interpretations by the 18 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Mar<15>2010 17:37 Sep 06, 2011 Jkt 223001 Financial Industry Regulatory Authority (‘‘FINRA’’) of its gifts rule (FINRA Rule 3220) and its predecessor, the National Association of Securities Dealers (‘‘NASD’’) of its gift rule (NASD Rule 3060), would be applicable to municipal advisors. The MSRB requested that the proposed rule change be made effective on the date that rules defining the term ‘‘municipal advisor’’ under the Exchange Act are first made effective by the Commission. The text of the proposed rule change is available on the MSRB’s Web site at https://www.msrb.org/Rules-andInterpretations/SEC-Filings/2011Filings.aspx, at the MSRB’s principal office, 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 Changes In its filing with the Commission, the MSRB included statements concerning the purpose of and basis for the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The MSRB 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 Changes 1. Purpose Existing MSRB Rule G–20. Rule G–20 was adopted by the MSRB to prevent brokers, dealers, and municipal securities dealers (‘‘dealers’’) from attempting to induce other organizations active in the municipal securities market to engage in business with such dealers by means of personal gifts or gratuities given to employees of the organizations, including, but not limited to, acts of commercial bribery,3 and to help to ensure that dealers’ municipal securities activities are undertaken in arm’s-length, merit-based transactions in which conflicts of interest are minimized. The MSRB has interpreted Rule G–20 to preclude the payment by dealers of ‘‘excessive or lavish’’ entertainment or travel expenses of issuer personnel, as follows: 4 3 See MSRB Notice 2004–17 (June 15, 2004). Rule G–20 Interpretation—Dealer Payments in Connection with the Municipal Securities Issuance Process (January 29, 2007); see also In the Matter of RBC Capital Markets Corporation, SEC Rel. No. 34–59439 (Feb. 24, 2009) (settlement in connection with broker-dealer alleged to have violated MSRB Rules G–20 and G–17 for payment of lavish travel and entertainment expenses of city 4 See PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 55449 Payment of excessive or lavish entertainment or travel expenses may violate Rule G–20 if they result in benefits to issuer personnel that exceed the limits set forth in the rule, and can be especially problematic where such payments cover expenses incurred by family or other guests of issuer personnel. Depending on the specific facts and circumstances, excessive payments could be considered to be gifts or gratuities made to such issuer personnel in relation to the issuer’s municipal securities activities. Dodd-Frank Act. The Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘Dodd-Frank Act’’) 5 authorized the MSRB to establish a comprehensive body of regulation for all municipal advisors.6 The Dodd-Frank Act requires the MSRB to adopt rules for municipal advisors that are designed to prevent fraudulent and manipulative acts and practices and to promote just and equitable principles of trade.7 It also expands the mission of the MSRB to include the protection of municipal entities 8 and obligated persons, in addition to the protection of investors and the public interest. Proposed amendments to MSRB Rule G–20. Pursuant to the authority granted to it by the Dodd-Frank Act, the MSRB is proposing the amendments to Rule G– 20. Just as the existing rule helps to ensure that dealers’ municipal securities activities are undertaken in arm’slength, merit-based transactions in which conflicts of interest are minimized, the MSRB seeks to reduce the potential for conflicts of interest in municipal advisory activities.9 The officials and their families associated with rating agency trips, which expenditures were subsequently reimbursed from bond proceeds as costs of issuance); In the Matter of Merchant Capital, L.L.C., SEC Rel. No. 34–60043 (June 4, 2009) (settlement in connection with broker-dealer alleged to have violated MSRB rules for payment of travel and entertainment expenses of family and friends of senior officials of issuer and reimbursement of the expenses from issuers and from proceeds of bond offerings). 5 Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111–203, 124 Stat. 1376 (2010). 6 ‘‘Municipal advisor’’ is defined in Section 15B(e)(4) of the Exchange Act. 7 See Section 15B(b)(2)(C) of the Exchange Act. 8 ‘‘Municipal entity’’ is defined in Section 15B(e)(8) of the Exchange Act as ‘‘any State, political subdivision of a State, or municipal corporate instrumentality of a State, including—(A) any agency, authority, or instrumentality of the State, political subdivision, or municipal corporate instrumentality; (B) any plan, program, or pool of assets sponsored or established by the State, political subdivision, or municipal corporate instrumentality or any agency, authority, or instrumentality thereof; and (C) any other issuer of municipal securities.’’ 9 MSRB Rule D–13 defines the term ‘‘municipal advisory activities’’ by reference to Section 15B(e)(4)(A) of the Exchange Act (i.e., (i) providing advice to municipal entities or obligated persons on municipal financial products or the issuance of E:\FR\FM\07SEN1.SGM Continued 07SEN1

Agencies

[Federal Register Volume 76, Number 173 (Wednesday, September 7, 2011)]
[Notices]
[Pages 55447-55449]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-22774]


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SECURITIES AND EXCHANGE COMMISSION


 Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change to Extend the Compliance Deadline for Qualification 
Pursuant to Rule 3.6A

 August 30, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``the ``Act''),\1\ notice is hereby given that on August 23, 2011, 
Chicago Board Options Exchange, Incorporated (``CBOE'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by CBOE. The Exchange has 
designated this proposal as one constituting a stated policy, practice, 
or interpretation with respect to the meaning, administration, or 
enforcement of an existing rule under Section 19((b)(3)(A)(i) of the 
Act,\2\ and Rule 19b-4(f((1) \3\ thereunder, which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(i).
    \3\ 17 CFR 19b-4(f)(1).
---------------------------------------------------------------------------

 I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Pursuant to the provisions of Section 19(b)(1) of the Securities 
Exchange Act of 1934 (the ``Act''),\4\ the Exchange proposes to extend 
the September 19, 2011 deadline to October 29, 2011 to comply with its 
rules regarding registration and qualification of individual Trading 
Permit Holders and individual associated persons.\5\ CBOE is not 
proposing any textual changes to the Rules of CBOE. The text of the 
proposed rule change is available on the Exchange's Web site (https://www.cboe.org/legal), at the Exchange's Office of the Secretary and at 
the Commission's Public Reference Room.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(1).
    \5\ The Commission notes that the extension until October 29, 
2011 is an extension of the time to pass the appropriate 
qualification exam. All individual Trading Permit Holders and 
individual associated persons not already registered in WebCRD were 
to be registered as of January 11, 2011. See Securities Exchange Act 
Release No. 63314 (November 12, 2010), 75 FR 70957 (November 19, 
2010), at 70958.
---------------------------------------------------------------------------

 II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CBOE included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. CBOE has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of such statements.

 A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, Proposed Rule Change

1. Purpose
    Pursuant to Rule 15b7-1,\6\ promulgated under the Exchange Act,\7\ 
``No registered broker or dealer shall effect any transaction in * * * 
any security unless any natural person associated with such broker or 
dealer who effects or is involved in effecting such transaction is 
registered or approved in accordance with the standards of training, 
experience, competence, and other qualification 
standards[hellip]established by the rules of any national securities 
exchange[hellip]'' CBOE Rule 3.6A sets forth the requirements for 
registration and qualification of individual Trading Permit Holders and 
individual associated persons. In response to a request by the Division 
of Trading and Markets at the Securities and Exchange Commission (the 
``Commission'' or ``SEC''), CBOE recently amended its rules to expand 
its registration and qualification requirements set forth in CBOE Rule 
3.6A to include individual Trading Permit Holders and individual 
associated persons that are engaged or to be engaged in the securities 
business of a Trading Permit Holder or TPH organization.\8\ CBOE Rule 
3.6A provides that these individuals must be registered with the 
Exchange in the category of registration appropriate to the function to 
be performed as prescribed by the Exchange. Further, Rule 3.6A 
requires, among other things, that an individual Trading Permit Holder 
or individual associated person submit an application for registration 
and pass the appropriate qualification examination before the 
registration can become effective. The revised requirements apply to 
both CBOE and CBOE Stock Exchange (``CBSX'') Trading Permit Holders and 
their associated persons.
---------------------------------------------------------------------------

    \6\ 17 CFR 240.15b7-1.
    \7\ 15 U.S.C. 78a et seq.
    \8\ See Securities Exchange Act Release No. 63314 (November 12, 
2010), 75 FR 70957 (November 19, 2010) (SR-CBOE-2010-084).
---------------------------------------------------------------------------

    In conjunction with the registration requirements established by 
SR-CBOE-2010-084, three new qualification examinations became available 
on June 20, 2011 in the Central Registration Depository system 
(``WebCRD''), which is operated by the Financial Industry Regulatory 
Authority, Incorporated (``FINRA''). These registration categories 
include the following (the required qualification examinations and 
prerequisites, as applicable, associated with each registration 
category are in parentheses): PT--Proprietary Trader (Series 56), CT--
Proprietary Trader Compliance Officer (Series 14, Series 56 
prerequisite) and TP--Proprietary Trader Principal (Series 24, Series 
56 prerequisite). In the Approval Order for SR-CBOE-2010-084, the SEC 
established a deadline of August 12, 2011 for CBOE and CBSX individual 
Trading Permit Holders and individual

[[Page 55448]]

associated persons of CBOE and CBSX Trading Permit Holders to register 
for and pass the applicable qualification examination(s), approximately 
seven weeks from the date the qualification exams became available. 
CBOE recently submitted a rule filing extending the deadline until 
September 19, 2011.\9\ The International Securities Exchange, LLC 
(``ISE'') recently submitted a rule filing setting forth the content 
outline for the Series 56.\10\ In conjunction with this filing, ISE 
issued a Regulatory Information Circular \11\ establishing a deadline 
of October 29, 2011 for complying with its new registration and 
qualification requirements.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 64946 (July 21, 
2011), 76 FR 44972 (July 27, 2011) (SR-CBOE-2011-064).
    \10\ See Securities Exchange Act Release No. 65086 (August 10, 
2011), 76 FR 50796 (August 16, 2011) [sic] (SR-ISE-2011-036).
    \11\ See ISE Regulatory Information Circular 2011-15 (issued 
August 15, 2011).
---------------------------------------------------------------------------

    CBOE respectfully requests to extend the September 19, 2011 
deadline to October 29, 2011 (or such other later compliance date as 
the Commission deems appropriate for the participating self-regulatory 
organizations) to be consistent with the deadline provided to ISE 
members to comply with the registration and qualification 
requirements.\12\ CBOE believes its proposal to extend this deadline is 
reasonable and necessary in an effort to implement consistent standards 
for registration and qualification across self-regulatory 
organizations.
---------------------------------------------------------------------------

    \12\ The International Securities Exchange (``ISE'') received 
approval for a rule filing establishing substantially similar 
registration and qualification requirements on February 4, 2011. The 
Approval Order for SR-ISE-2010-115 provides that ``Associated 
persons of ISE members will have 90 days from the date the 
examination becomes available to take and pass the examination.'' 
See Securities Exchange Act Release No. 63843 (February 4, 2011), 76 
FR 7884 (February 11, 2011) (SR-ISE-2010-115).
---------------------------------------------------------------------------

    CBOE continues to evaluate the reasonability of the proposed 
deadline in light of various factors including, but not limited to, the 
following: (i) Potential disruption to the marketplace if a Market-
Maker or Designated Primary Market-Maker does not satisfy the 
qualification requirements; (ii) system enforced delays in registering 
for an examination in WebCRD upon an individual's failure of a 
qualification examination; (iii) examination scheduling limitations due 
to the volume of individuals required to take the examination(s); and 
(iv) the ability for those individuals subject to heightened 
qualification examinations to prepare for, schedule and pass more than 
one examination in an extremely limited window of time. CBOE will 
continue to update Commission staff and evaluate whether additional 
rule filings are necessary to address reasonability concerns in 
conjunction with requiring compliance within the proposed time frame.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\13\ in general, and furthers the objectives of Section 6(b)(1) 
\14\ of the Act in particular, in that it is designed to enforce 
compliance by Exchange members and persons associated with its members 
with the rules of the Exchange. The Exchange also believes the proposed 
rule change furthers the objectives of Section 6(c)(3) \15\ of the Act, 
which authorizes CBOE to prescribe standards of training, experience 
and competence for persons associated with CBOE members, in that this 
filing is proposing to extend the deadline for compliance with the 
standards of training, experience and competence established by the 
Exchange. CBOE believes that its proposal is reasonable in that it 
establishes a deadline for compliance with the registration and 
qualification requirements that is consistent with the deadline in 
place for ISE members and their associated persons.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(1).
    \15\ 15 U.S.C. 78f(c)(3).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change will take effect upon filing 
with the Commission pursuant to Section 19(b)(3)(A)(i) of the Act \16\ 
and Rule 19b-4(f)(1) thereunder,\17\ because it constitutes a stated 
policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A)(i).
    \17\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

    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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2011-081 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2011-081. 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 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 CBOE. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make publicly available. All

[[Page 55449]]

submissions should refer to File Number SR-CBOE-2011-081 and should be 
submitted on or before September 28, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-22774 Filed 9-6-11; 8:45 am]
BILLING CODE 8011-01-P
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