Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order Approving a Proposed Rule Change To Assume Operational Responsibility for Certain Surveillance Activity Currently Performed by FINRA Under the Exchange's Authority and Supervision, 62884-62885 [2013-24542]
Download as PDF
<![CDATA[
62884
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
the Exchange does not believe that the
proposed rule change will affect
intramarket competition because all
similarly situated registered persons of
ATP Holders, e.g., registered persons
maintaining the same categories of
registration, are required to complete
the same CE Programs, the same
qualification examinations, and are
subject to the same fees.
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
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)(ii) of the Act 26 and
subparagraph (f)(6) of Rule 19b–4
thereunder.27
The Exchange has requested that the
Commission waive the 30-day operative
delay. Waiver of the operative delay
would allow the Exchange to modify its
rules and implement the proposed rule
change at once, enabling its Members to
comply with their continuing education
requirements in a timely manner, and
thus is consistent with the protection of
investors and the public interest.
Therefore, the Commission designates
the proposal operative upon filing.28
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission will institute proceedings
sroberts on DSK5SPTVN1PROD with FRONT MATTER
26 15
U.S.C. 78s(b)(3)(a)(ii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
28 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).
27 17
VerDate Mar<15>2010
21:08 Oct 21, 2013
Jkt 232001
to determine whether the proposed rule
change 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 email to rule-comments@
sec.gov. Please include File Number SR–
NYSEMkt–2013–77 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–NYSEMkt–2013–77. 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, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 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–NYSEMkt–2013–77 and
should be submitted on or before
November 12, 2013.
PO 00000
Frm 00302
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24553 Filed 10–21–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70568; File No. SR–BX–
2013–047]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Order
Approving a Proposed Rule Change To
Assume Operational Responsibility for
Certain Surveillance Activity Currently
Performed by FINRA Under the
Exchange’s Authority and Supervision
September 30, 2013.
On July 31, 2013, NASDAQ OMX BX,
Inc. (‘‘BX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
assume operational responsibility for
certain surveillance activity currently
performed by the Financial Industry
Regulatory Authority (‘‘FINRA’’) under
the Exchange’s authority and
supervision. The proposed rule change
was published for comment in the
Federal Register on August 16, 2013.3
The Commission received no comments
on the proposal.
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange 4 and, in particular,
the requirements of Section 6(b)(5) of
the Act.5 Since its acquisition by The
NASDAQ OMX Group, Inc., BX has
contracted with FINRA through various
regulatory services agreements to
perform certain surveillance and other
regulatory functions on its behalf. BX
Rule 0150 requires that, unless the
Exchange obtains prior Commission
approval, the regulatory functions
subject to the regulatory services
agreement in effect at the time of its
29 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 70158
(August 12, 2013), 78 FR 50126 (August 16, 2013)
(‘‘Notice’’).
4 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
5 15 U.S.C. 78f(b)(5).
1 15
E:\FR\FM\22OCN1.SGM
22OCN1
sroberts on DSK5SPTVN1PROD with FRONT MATTER
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
acquisition must continue to be
performed by FINRA or an affiliate
thereof or by another independent selfregulatory organization. BX now
proposes to reallocate operational
responsibility from FINRA to BX
Regulation for a limited number of
equities surveillance patterns and
related review functions focused on: (1)
Manipulation patterns that monitor
solely BX activity, including patterns
that monitor the opening and closing
crosses on The NASDAQ Stock Market
LLC (‘‘NASDAQ’’) and compliance with
minimum bid listing requirements; and
(2) monitoring of compliance by
NASDAQ member firms with elements
of the Commission’s Regulation M 6 and
NASDAQ Rule 4619 compliance, which
will include data from BX.
In the Notice, the Exchange represents
that it has the ability to conduct the
surveillances and regulatory functions
that it will assume. The Commission
also notes that the Exchange represents
that its expertise in its own market
structure, along with its existing realtime monitoring of these activities, may
enable the Exchange to better detect
improper activities on its market.
Moreover, these patterns, underlying
rules, and analytical requirements are
similar to patterns that BX regulatory
personnel already monitor for affiliated
options markets. The Exchange
represents that NASDAQ’s MarketWatch
group, which already handles other realtime surveillance of the BX market,
should be able to adequately and
effectively handle the surveillances
related to the instant proposed rule
change.
In the Notice, the Exchange further
represents that it will continue to refer
potentially violative conduct to FINRA
for further review and that FINRA will
continue to perform most of the
surveillance activity for BX’s equity
market. The Exchange also represents
that FINRA will continue to perform
examination and enforcement work,
subject to BX’s supervision and ultimate
responsibility.
For the foregoing reasons, the
Commission believes that the proposed
rule change is consistent with the Act.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–BX–2013–
047) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24542 Filed 10–21–13; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70574; File No. SR–C2–
2013–036]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend the Fees Schedule
September 30, 2013.
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
September 25, 2013, C2 Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘C2’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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 proposes to amend its
Fees Schedule. The text of the proposed
rule change is available on the
Exchange’s Web site (https://
www.c2exchange.com/Legal/), at the
Exchange’s Office of the Secretary, at
the Commission’s Public Reference
Room, and on the Commission’s Web
site at https://www.sec.gov.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
CFR 242.100 et seq.
7 15 U.S.C. 78s(b)(2).
VerDate Mar<15>2010
21:08 Oct 21, 2013
1 15
Jkt 232001
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
BILLING CODE 8011–01–P
8 17
6 17
62885
PO 00000
Frm 00303
Fmt 4703
Sfmt 4703
1. Purpose
The Exchange proposes to amend its
Fees Schedule. First, the Exchange
proposes to remove the following
language from Section 3 of its Fees
Schedule:
Because C2 intends to cease listing of
SPXPM following the closing of trading
on Friday, February 15, 2013, for any
Market-Maker Permit used in February
2013 solely to act as a Market-Maker in
SPXPM, C2 will credit back to the
Market-Maker a pro-rated amount
(corresponding to the portion of the
month during which SPXPM is not
listed on C2) of the Market-Maker
Permit cost. This language is obsolete
and no longer relevant, as the month of
February 2013 has ended and SPXPM is
no longer traded on the Exchange.
The Exchange also proposes to make
another amendment to Section 3 of its
Fees Schedule. Currently, Section 3
states that ‘‘Trading Permits will be
renewed automatically for the next
month unless the Trading Permit Holder
submits written notification to the
Registration Services Department by the
25th day of the prior month (or the
preceding business day if the 25th is not
a business day) to cancel the Trading
Permit effective at or prior to the end of
the applicable month.’’ The Exchange
proposes to amend this statement to
give Trading Permit Holders (‘‘TPHs’’)
until 4 p.m. on the second-to-last
business day of the prior month to
cancel a Trading Permit. This will give
TPHs more time to cancel Trading
Permits before such permits renew.3
Third, the Exchange proposes to
adopt a one-time ‘‘Responsible Person’’
fee of $500 to the list of ApplicationRelated Fees. A ‘‘Responsible Person’’ is
an individual designated by an
organization that is the holder of a
Trading Permit to represent the
organization with respect to that
Trading Permit in all matters relating to
the Exchange. The Responsible Person
must be a United States-based officer,
director or management-level employee
of the Permit Holder, who is responsible
for the direct supervision and control of
3 The proposed new language would read
‘‘Trading Permits will be renewed automatically for
the next month unless the Trading Permit Holder
submits written notification to the Registration
Services Department by 4 p.m. on the second-to-last
business day of the prior month to cancel the
Trading Permit effective at or prior to the end of the
applicable month.’’
E:\FR\FM\22OCN1.SGM
22OCN1
]]>Agencies
[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62884-62885]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24542]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70568; File No. SR-BX-2013-047]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order
Approving a Proposed Rule Change To Assume Operational Responsibility
for Certain Surveillance Activity Currently Performed by FINRA Under
the Exchange's Authority and Supervision
September 30, 2013.
On July 31, 2013, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
assume operational responsibility for certain surveillance activity
currently performed by the Financial Industry Regulatory Authority
(``FINRA'') under the Exchange's authority and supervision. The
proposed rule change was published for comment in the Federal Register
on August 16, 2013.\3\ The Commission received no comments on the
proposal.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 70158 (August 12,
2013), 78 FR 50126 (August 16, 2013) (``Notice'').
---------------------------------------------------------------------------
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange \4\
and, in particular, the requirements of Section 6(b)(5) of the Act.\5\
Since its acquisition by The NASDAQ OMX Group, Inc., BX has contracted
with FINRA through various regulatory services agreements to perform
certain surveillance and other regulatory functions on its behalf. BX
Rule 0150 requires that, unless the Exchange obtains prior Commission
approval, the regulatory functions subject to the regulatory services
agreement in effect at the time of its
[[Page 62885]]
acquisition must continue to be performed by FINRA or an affiliate
thereof or by another independent self-regulatory organization. BX now
proposes to reallocate operational responsibility from FINRA to BX
Regulation for a limited number of equities surveillance patterns and
related review functions focused on: (1) Manipulation patterns that
monitor solely BX activity, including patterns that monitor the opening
and closing crosses on The NASDAQ Stock Market LLC (``NASDAQ'') and
compliance with minimum bid listing requirements; and (2) monitoring of
compliance by NASDAQ member firms with elements of the Commission's
Regulation M \6\ and NASDAQ Rule 4619 compliance, which will include
data from BX.
---------------------------------------------------------------------------
\4\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\5\ 15 U.S.C. 78f(b)(5).
\6\ 17 CFR 242.100 et seq.
---------------------------------------------------------------------------
In the Notice, the Exchange represents that it has the ability to
conduct the surveillances and regulatory functions that it will assume.
The Commission also notes that the Exchange represents that its
expertise in its own market structure, along with its existing real-
time monitoring of these activities, may enable the Exchange to better
detect improper activities on its market. Moreover, these patterns,
underlying rules, and analytical requirements are similar to patterns
that BX regulatory personnel already monitor for affiliated options
markets. The Exchange represents that NASDAQ's MarketWatch group, which
already handles other real-time surveillance of the BX market, should
be able to adequately and effectively handle the surveillances related
to the instant proposed rule change.
In the Notice, the Exchange further represents that it will
continue to refer potentially violative conduct to FINRA for further
review and that FINRA will continue to perform most of the surveillance
activity for BX's equity market. The Exchange also represents that
FINRA will continue to perform examination and enforcement work,
subject to BX's supervision and ultimate responsibility.
For the foregoing reasons, the Commission believes that the
proposed rule change is consistent with the Act.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-BX-2013-047) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24542 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P
