Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Arca Rule 2.23 To Prescribe The Registered Proprietary Traders Examination (Series 56) As the Qualifying Examination for Registered Market Makers, Market Maker Authorized Traders, and Floor Brokers, 37942-37944 [2012-15378]
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37942
Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Notices
In adopting Rule 10b–17, the
Commission stated its concern that the
failure of an issuer to provide timely
announcements of record dates may
have misleading and deceptive effects.3
For example, the Commission stated
that if buyers and sellers (and their
brokers) do not have knowledge that
these rights may be forthcoming, they
could suffer losses.4 Also, the
Commission found that ‘‘some issuers
made belated declarations of stock splits
or dividends with the apparent
knowledge that this action would have
a manipulative effect on the market for
their securities.’’ 5 The letter represents,
as had the prior requests, that the
concerns that the Commission raised in
adopting Rule 10b–17 will not be
implicated if exemptive relief, subject to
the conditions below, is granted to the
Trust.
We find that it is appropriate in the
public interest and is consistent with
the protection of investors to grant a
conditional exemption from Rule 10b–
17 to any issuer of an actively managed
ETF including the Trust. Specifically,
other than receiving a delayed notice of
the cash distributed and the shares
outstanding, market participants will
receive timely notification of the
existence and timing of a pending
distribution as the Fund will comply
with all other requirements of Rule 10b–
17.6 Further, the provision of the
information required under Rule 10b–
17(b)(1)(v)(a) and (b) the day before the
ex-dividend date should allow market
participants time to update their
systems to reflect the accurate price
once trading begins on the ex-dividend
date.
Conclusion
It Is Hereby Ordered, pursuant to Rule
10b–17(b)(2), that any issuer of an
actively managed ETF is exempt from
the requirements of Rule 10b–
17(b)(1)(v)(a) and (b) with respect to
transactions in shares of the actively
managed ETF, subject to the following
conditions:
• The issuer must comply with Rule
10b–17 except for Rule 10b–
17(b)(1)(v)(a) and (b); and
• The issuer must provide the
information required by Rule 10b–
17(b)(1)(v)(a) and (b) to the national
erowe on DSK2VPTVN1PROD with NOTICES
3 Exchange
Act Release No. 9192 (Jun. 7, 1971);
36 FR 11513 (Jun. 15, 1971).
4 See id.
5 Id.
6 Rule 10b–17(b)(1)(v)(a) and (b). We also note
that timely compliance with Rule 10b–17(b)(1)(v)(a)
and (b) would be impractical in light of the nature
of such ETFs. This is because it is not possible for
these ETFs to accurately project ten days in advance
the composition of the dividend that would be paid
on a particular record date.
VerDate Mar<15>2010
14:55 Jun 22, 2012
Jkt 226001
securities exchange upon which shares
of the ETF are registered pursuant to
section 12 of the Exchange Act
(‘‘Exchange’’) as soon as practicable
before trading begins on the ex-dividend
date, but in no event later than the time
when the Exchange last accepts
information relating to distributions on
the day before the ex-dividend date.
This exemptive relief is subject to
modification or revocation at any time
the Commission determines that such
action is necessary or appropriate in
furtherance of the purposes of the
Exchange Act. In addition, persons
relying on this exemption are directed
to the anti-fraud and anti-manipulation
provisions of the federal securities laws,
particularly Section 10(b) of the
Exchange Act, and Rule 10b–5
thereunder. Responsibility for
compliance with these and any other
applicable provisions of the federal
securities laws must rest with the
persons relying on this exemption. This
order should not be considered a view
with respect to any other question that
the transactions may raise, including,
but not limited to the adequacy of the
disclosure concerning, and the
applicability of other federal or state
laws to, such transactions.
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) 4 of
the Act and Rule 19b–4(f)(6)
thereunder,5 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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy 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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those 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.
[FR Doc. 2012–15410 Filed 6–22–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67213; File No. SR–
NYSEARCA–2012–61]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend NYSE Arca
Rule 2.23 To Prescribe The Registered
Proprietary Traders Examination
(Series 56) As the Qualifying
Examination for Registered Market
Makers, Market Maker Authorized
Traders, and Floor Brokers
June 19, 2012.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on June 13,
2012, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
7 17
CFR 200.30–3(a)(9).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Rule 2.23 to prescribe the
Registered Proprietary Traders
Examination (Series 56) (the ‘‘Series 56
Examination’’) as the qualifying
examination for registered Market
Makers, Market Maker Authorized
Traders (‘‘MMAT’s’’), and Floor Brokers.
The text of the proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NYSE Arca Rule 2.23 to prescribe the
Series 56 Examination as the qualifying
examination for registered Market
Makers, MMATs, and Floor Brokers.
NYSE Arca Rule 2.23 currently
specifies that the successful completion
of the Series 44 examination and an
orientation program for such
examination is required in order to
register as a Market Maker or a MMAT.
1 15
PO 00000
Frm 00074
Fmt 4703
4 15
5 17
Sfmt 4703
E:\FR\FM\25JNN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
25JNN1
Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Notices
erowe on DSK2VPTVN1PROD with NOTICES
The Exchange proposes to change the
prescribed examination for Market
Makers and MMATs to the Series 56
Examination. In addition, NYSE Arca
Rule 2.23 currently specifies that Floor
Brokers must successfully complete the
Series 45 within five years of the
application date for an OTP and have
been an OTP Holder within six months
of the application date for an OTP. The
Exchange proposes to change the
prescribed examination for Floor
Brokers to the Series 56 Examination
and replace the other requirements of
the rule with the successful completion
of an orientation program. The
requirement to participate in an
orientation program is consistent with
registration requirements for Market
Makers on NYSE Arca.
The Series 56 Examination was
developed by a committee comprised of
industry representatives, Exchange staff
and staff from other SROs. The Series 56
examination tests a candidate’s
knowledge of proprietary trading
generally and the industry rules
applicable to trading of equity securities
and listed options contracts. The Series
56 examination covers, among other
things, recordkeeping and recording
requirements; types and characteristics
of securities and investments; trading
practices; and display, execution, and
trading systems.6 As such the Exchange
believes that an applicant who has
passed the Series 56 is proven to be
qualified to act in the capacity of a
Market Maker, Floor Broker and/or
MMAT on NYSE Arca.
While NYSE Arca will no longer be
offering the Series 44 or Series 45 as
qualifying exams to new applicants, the
Exchange will continue to recognize any
individual who has passed one of those
exams as having successfully completed
a qualifying exam. An individual
presently registered as a Market Maker,
MMAT or Floor Broker on NYSE Arca,
who has previously passed a qualifying
exam as prescribed by the Exchange,
will not be required to take the Series
56 as a condition of their continued
registration.
Following effectiveness of the
proposed rule change, the Exchange will
issue a Regulatory Bulletin announcing
the implementation date within 30 days
from the operative date of the rule
change.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section
14:55 Jun 22, 2012
Jkt 226001
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
7 15
U.S.C. 78f(b).
U.S.C. 78f(c)(3)(B).
9 15 U.S.C. 78f(b)(5).
10 See Securities Exchange Act Release No. 64699
(June 17, 2011), 76 FR 36945 (June 23, 2011) (SR–
CBOE–2011–056). See Securities Exchange Act
Release No. 65054 (August 8, 2011), 76 FR 50277
(August 12, 2011) (SR–ISE–2011–36).
8 15
6 The Exchange previously submitted detailed
content outline for the Series 56 to the Commission.
See Securities Exchange Act Release No. 66483
(February 28, 2012), 77 FR 13168 (March 5, 2012)
(SR–NYSEArca–2012–16).
VerDate Mar<15>2010
6(b) 7 of the Securities Exchange Act of
1934 (‘‘Act’’) in general, and furthers the
objectives of (1) Section 6(c)(3)(B) 8 of
the Act, pursuant to which a national
securities exchange prescribes standards
of training, experience and competence
for members and their associated
persons; and (2) Section 6(b)(5) of the
Act,9 in that it is designed, among other
things, to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest. The
Exchange believes that prescribing the
Series 56 Examination for Market
Makers, MMATs, and Floor Brokers is
appropriate because the Series 56
Examination addresses industry topics
that establish the foundation for the
regulatory and procedural knowledge
necessary for individuals required to
register as Market Makers, MMATs, and
Floor Brokers. In addition, the Series 56
Examination is shared by other
exchanges and has become the industry
standard.10 Accordingly, adopting the
Series 56 Examination will help to
promote consistency in examination
requirements and uniformity across
markets.
The Exchange also believes it is
appropriate to adopt an orientation
program for Floor Brokers so that Floor
Broker requirements will be more
closely aligned with those of Market
Makers and MMATs. The Exchange will
continue to educate its OTP Holders
regarding the requirements that are
unique to the Exchange through its
orientation programs to ensure that all
OTP Holders will continue to be
properly registered, trained, and
qualified to perform their functions,
which will protect investors and the
public interest.
PO 00000
Frm 00075
Fmt 4703
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37943
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 11 and Rule
19b–4(f)(6) thereunder.12 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 and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),14 the 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
upon filing.
The Commission believes it is
consistent with the protection of
investors and the public interest to
waive the 30-day operative delay.15
Waiver of the 30-day operative delay
will enable an associated person of an
OTP Firm to qualify as a Market Maker,
MMAT or Floor Broker on NYSE Arca
by passing the Series 56 exam, which is
shared by the other options exchanges.
In addition, requiring Floor Brokers to
participate in an orientation program
will make the requirements for Floor
Brokers more similar to the
requirements for Market Makers and
MMATs. The Commission hereby
waives the operative delay making the
filing effective and operative upon
filing.
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 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).
12 17
E:\FR\FM\25JNN1.SGM
25JNN1
37944
Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Notices
At any time within 60 days of the
filing of such 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:
erowe on DSK2VPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEARCA–2012–61 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–NYSEARCA–2012–61. This
file number should be included on the
subject line if email 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. Copies of the filing
will also be available for inspection and
copying at the NYSE’s principal office
and on its Internet Web site at
www.nyse.com. 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–
VerDate Mar<15>2010
14:55 Jun 22, 2012
Jkt 226001
NYSEARCA–2012–61 and should be
submitted on or before July 16, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–15378 Filed 6–22–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67216; File No. SR–ISE–
2012–52]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing of Proposed Rule
Change To Allow Competitive Market
Makers To Use Their Membership
Points To Enter Multiple Quotes in an
Options Class
June 19, 2012.
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 June 6,
2012, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) 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 the selfregulatory organization. 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 proposes to adopt .03
of the Supplementary Material to Rule
802 (Appointment of Market Makers) to
allow Competitive Market Makers
(‘‘CMMs’’) to use their membership
points to enter multiple quotes in an
options class. The text of the proposed
rule change is available on the
Exchange’s Internet Web site at https://
www.ise.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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On August 11, 2011, the Exchange
changed the structure of CMM
appointments to give market makers
flexibility to choose the options classes
to which they are appointed.3 On
October 3, 2011, the Exchange made
three refinements to the point values
assigned to certain options classes.4
Currently, under this structure, the
Exchange assigns points to each options
class equal to its percentage of overall
industry volume (not including
exclusively-traded index options),
rounded down to the nearest hundredth
of a percentage, with a maximum of 15
points. New listings are assigned a point
value of zero for the remainder of the
quarter in which it was listed. A CMM
is then permitted to seek appointments
to options classes that total twenty
points for the first CMM trading right
owned or leased by a member, and ten
points for each subsequent CMM trading
right owned or leased by the same
member.5
The Exchange is now proposing to
adopt .03 of the Supplementary Material
to Rule 802 (Appointment of Market
Makers) to allow CMMs to use their
membership points to enter multiple
quotes in an options class. The quoting
requirements in ISE Rules will be
applicable to each set of quotes that a
CMM enters in an options class. In other
words, CMMs will not be permitted to
aggregate multiple quotes in an options
class in order to meet the quoting
requirements under ISE Rules.
Additionally, there will be no restriction
on a CMM seeking appointment to
options classes in which it or an
affiliated market-maker holds a CMM or
3 See Securities Exchange Act Release No. 65100
(Aug. 11, 2011), 76 FR 51075 (Aug. 17,
2011) (order approving SR–ISE–2011–33).
4 See Securities Exchange Act Release No. 65534
(October 12, 2011), 76 FR 64417 (October
18, 2011) (Notice of Filing and Immediate
Effectiveness SR–ISE–2011–58).
5 CMMs can select the options classes to which
they seek appointment, but the Exchange
retains the authority to make such appointments
and to remove appointments from CMMs
based on their performance. See ISE Rule 802.
E:\FR\FM\25JNN1.SGM
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]]>Agencies
[Federal Register Volume 77, Number 122 (Monday, June 25, 2012)]
[Notices]
[Pages 37942-37944]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15378]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67213; File No. SR-NYSEARCA-2012-61]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Arca
Rule 2.23 To Prescribe The Registered Proprietary Traders Examination
(Series 56) As the Qualifying Examination for Registered Market Makers,
Market Maker Authorized Traders, and Floor Brokers
June 19, 2012.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on June 13, 2012, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Exchange filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) \4\ of the Act and Rule 19b-4(f)(6) thereunder,\5\
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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ 15 U.S.C. 78s(b)(3)(A)(iii).
\5\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Arca Rule 2.23 to prescribe the
Registered Proprietary Traders Examination (Series 56) (the ``Series 56
Examination'') as the qualifying examination for registered Market
Makers, Market Maker Authorized Traders (``MMAT's''), and Floor
Brokers. The text of the proposed rule change is available on the
Exchange's Web site at www.nyse.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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend NYSE Arca Rule 2.23 to prescribe the
Series 56 Examination as the qualifying examination for registered
Market Makers, MMATs, and Floor Brokers.
NYSE Arca Rule 2.23 currently specifies that the successful
completion of the Series 44 examination and an orientation program for
such examination is required in order to register as a Market Maker or
a MMAT.
[[Page 37943]]
The Exchange proposes to change the prescribed examination for Market
Makers and MMATs to the Series 56 Examination. In addition, NYSE Arca
Rule 2.23 currently specifies that Floor Brokers must successfully
complete the Series 45 within five years of the application date for an
OTP and have been an OTP Holder within six months of the application
date for an OTP. The Exchange proposes to change the prescribed
examination for Floor Brokers to the Series 56 Examination and replace
the other requirements of the rule with the successful completion of an
orientation program. The requirement to participate in an orientation
program is consistent with registration requirements for Market Makers
on NYSE Arca.
The Series 56 Examination was developed by a committee comprised of
industry representatives, Exchange staff and staff from other SROs. The
Series 56 examination tests a candidate's knowledge of proprietary
trading generally and the industry rules applicable to trading of
equity securities and listed options contracts. The Series 56
examination covers, among other things, recordkeeping and recording
requirements; types and characteristics of securities and investments;
trading practices; and display, execution, and trading systems.\6\ As
such the Exchange believes that an applicant who has passed the Series
56 is proven to be qualified to act in the capacity of a Market Maker,
Floor Broker and/or MMAT on NYSE Arca.
---------------------------------------------------------------------------
\6\ The Exchange previously submitted detailed content outline
for the Series 56 to the Commission. See Securities Exchange Act
Release No. 66483 (February 28, 2012), 77 FR 13168 (March 5, 2012)
(SR-NYSEArca-2012-16).
---------------------------------------------------------------------------
While NYSE Arca will no longer be offering the Series 44 or Series
45 as qualifying exams to new applicants, the Exchange will continue to
recognize any individual who has passed one of those exams as having
successfully completed a qualifying exam. An individual presently
registered as a Market Maker, MMAT or Floor Broker on NYSE Arca, who
has previously passed a qualifying exam as prescribed by the Exchange,
will not be required to take the Series 56 as a condition of their
continued registration.
Following effectiveness of the proposed rule change, the Exchange
will issue a Regulatory Bulletin announcing the implementation date
within 30 days from the operative date of the rule change.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) \7\ of the Securities Exchange Act of 1934 (``Act'') in general,
and furthers the objectives of (1) Section 6(c)(3)(B) \8\ of the Act,
pursuant to which a national securities exchange prescribes standards
of training, experience and competence for members and their associated
persons; and (2) Section 6(b)(5) of the Act,\9\ in that it is designed,
among other things, to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest. The Exchange believes that prescribing the Series 56
Examination for Market Makers, MMATs, and Floor Brokers is appropriate
because the Series 56 Examination addresses industry topics that
establish the foundation for the regulatory and procedural knowledge
necessary for individuals required to register as Market Makers, MMATs,
and Floor Brokers. In addition, the Series 56 Examination is shared by
other exchanges and has become the industry standard.\10\ Accordingly,
adopting the Series 56 Examination will help to promote consistency in
examination requirements and uniformity across markets.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(c)(3)(B).
\9\ 15 U.S.C. 78f(b)(5).
\10\ See Securities Exchange Act Release No. 64699 (June 17,
2011), 76 FR 36945 (June 23, 2011) (SR-CBOE-2011-056). See
Securities Exchange Act Release No. 65054 (August 8, 2011), 76 FR
50277 (August 12, 2011) (SR-ISE-2011-36).
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The Exchange also believes it is appropriate to adopt an
orientation program for Floor Brokers so that Floor Broker requirements
will be more closely aligned with those of Market Makers and MMATs. The
Exchange will continue to educate its OTP Holders regarding the
requirements that are unique to the Exchange through its orientation
programs to ensure that all OTP Holders will continue to be properly
registered, trained, and qualified to perform their functions, which
will protect investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
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 and Rule 19b-
4(f)(6)(iii) thereunder.
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\14\ the 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 upon filing.
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes it is consistent with the protection of
investors and the public interest to waive the 30-day operative
delay.\15\ Waiver of the 30-day operative delay will enable an
associated person of an OTP Firm to qualify as a Market Maker, MMAT or
Floor Broker on NYSE Arca by passing the Series 56 exam, which is
shared by the other options exchanges. In addition, requiring Floor
Brokers to participate in an orientation program will make the
requirements for Floor Brokers more similar to the requirements for
Market Makers and MMATs. The Commission hereby waives the operative
delay making the filing effective and operative upon filing.
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\15\ 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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[[Page 37944]]
At any time within 60 days of the filing of such 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 email to rule-comments@sec.gov. Please include
File Number SR-NYSEARCA-2012-61 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-NYSEARCA-2012-61. This
file number should be included on the subject line if email 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. Copies of the
filing will also be available for inspection and copying at the NYSE's
principal office and on its Internet Web site at www.nyse.com. 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-NYSEARCA-2012-61 and should
be submitted on or before July 16, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-15378 Filed 6-22-12; 8:45 am]
BILLING CODE 8011-01-P
