Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Continuing Education, 62909-62911 [2013-24682]
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Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
sroberts on DSK5SPTVN1PROD with FRONT MATTER
the proposed changes to fees are
equitably allocated among Exchange
constituents as the methodology for
calculating ADV and TCV will apply
equally to all Members. While, although
unlikely, certain Members may have a
higher ADV as a percentage of average
daily TCV with their activity included
from days where the Exchange has an
Exchange Outage, the proposal will
make all Members’ cost of trading on the
Exchange more predictable, regardless
of how the proposal affects their ADV as
a percentage of average daily TCV.
Volume-based tiers such as the
liquidity removing and adding tiers
maintained by the Exchange have been
widely adopted in the equities markets,
and are equitable and not unfairly
discriminatory because they are open to
all members on an equal basis and
provide higher rebates or lower fees that
are reasonably related to the value to an
exchange’s market quality associated
with higher levels of market activity,
such as higher levels of liquidity
provision and introduction of higher
volumes of orders into the price and
volume discovery process. Accordingly,
the Exchange believes that the proposal
is equitably allocated and not unfairly
discriminatory because it is consistent
with the overall goals of enhancing
market quality. Further, the Exchange
believes that a tiered pricing model not
significantly altered by a day of atypical
trading behavior which allows Members
to predictably calculate what their costs
associated with trading activity on the
Exchange will be is reasonable, fair and
equitable and not unreasonably
discriminatory as it is uniform in
application amongst Members and
should enable such participants to
operate their business without concern
of unpredictable and potentially
significant changes in expenses.
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 not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed changes will benefit
intermarket competition in that they
will help the Exchange to continue to
incentivize higher levels of liquidity at
a tighter spread while providing more
stable and predictable costs to its
Members. Further, the proposed
changes will help to promote
intramarket competition by avoiding a
penalty to Members for days when
trading on the Exchange is unavailable
for a significant portion of the day. As
stated above, the Exchange notes that it
operates in a highly competitive market
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in which market participants can
readily direct order flow to competing
venues if the deem fee structures to be
unreasonable or excessive.
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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and paragraph (f) of Rule
19b–4 thereunder.12 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 email to rule-comments@
sec.gov. Please include File Number SR–
BYX–2013–034 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–BYX–2013–034. 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
11 15
12 17
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f).
Frm 00327
Fmt 4703
Sfmt 4703
62909
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 such
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–BYX–
2013–034 and should be submitted on
or before November 12, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24659 Filed 10–21–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70692; File No. SR–CBOE–
2013–098]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to Continuing
Education
October 16, 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 October
4, 2013, the Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) 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 Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder,4 which
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
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62910
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to correct an
administrative error in Rule 9.3A(c)(1)
and add a reference to CBOE Rule 9.3A
to the CBOE Stock Exchange, LLC
(‘‘CBSX’’) Appendix A. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), 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, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
sroberts on DSK5SPTVN1PROD with FRONT MATTER
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to make an
administrative change to correct an
inadvertent error in Exchange Rule
9.3A(c)(1). The Exchange proposes to
make the proposed change so the text
properly reflects the intention and
practice of Rule 9.3A(c)(1). The
Exchange also proposes to add a
reference to CBOE Rule 9.3A to CBSX
Appendix A. The Exchange believes
that adding the reference to CBOE Rule
9.3A to CBSX Appendix A will more
clearly put CBSX Trading Permit
Holders (‘‘TPHs’’) on notice of their
continuing education requirements.
In 2003, the Exchange filed a rule
change, SR–CBOE–2003–01 to, among
other things, amend CBOE’s continuing
education rule.5 As part of that filing, a
5 See Securities Exchange Act Release No. 47188
(January 17, 2003), 68 FR 3071 (January 22, 2003)
(notice of [sic] immediate effectiveness of SR–
CBOE–2003–01 which permitted the in-house
delivery of the Regulatory Element of Continuing
Education by member organizations).
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21:08 Oct 21, 2013
Jkt 232001
new paragraph (b) was added to
Exchange Rule 9.3A, and the then
current paragraph (b) was renumbered
to paragraph (c).6 In doing so, an
inadvertent error was made in a
reference to paragraph (b) in the new
Rule 9.3A(c)(1). The error can be found
in the first sentence of current CBOE
Rule 9.3A(c)(1). A reference is made to
‘‘paragraph (b)’’; however, the intended
reference is to ‘‘paragraph (c).’’
The intention of CBOE Rule 9.3A is to
discuss the register [sic] persons subject
to the Firm Element of the continuing
education program. This intention is
spelled out in the title of the paragraph
which is, ‘‘Persons Subject to the Firm
Element.’’ This intention is more
explicitly spelled out in SR–CBOE–
2003–01. More specifically, the filing
states that the Firm Element requires,
‘‘member and member organizations to
provide to their registered employees
having direct contact with customers
ongoing training that is specifically
tailored to their business.’’ 7 The Firm
Element is described in paragraph (c) of
current CBOE Rule 9.3A and not
paragraph (b). Thus, the Exchange is
now proposing to amend this error to
more accurately describe the intention
and practice of the rule.
Finally, the Exchange is proposing to
add a reference to Rule 9.3A to CBSX
Appendix A. CBSX Appendix A to
Chapters 50 through 54 lists the rules in
Chapters 1 through 29 that are
applicable to trading on CBSX.8 CBOE
Rule 9.3A is applicable to CBSX
members as well as outlined in current
CBOE Rule 6.3A [sic] as incorporated
into Appendix A. As such, CBOE Rule
3.6A.04 states that each individual
registered under CBOE Rule 3.6A ‘‘is
required to satisfy the continuing
education requirements set forth in Rule
9.3A and any other applicable
continuing education requirements as
prescribed by the Exchange.’’ 9 Thus,
CBSX members are already on notice of
their continuing education requirements
under CBOE Rule 9.3A. To make these
requirements more explicit, however,
the Exchange is proposing to add a
reference to CBOE Rule 9.3A in CBSX
Appendix A. The Exchange believes this
change will more clearly spell out
continuing education requirements for
CBSX registered persons.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
6 Id.
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.10 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 11 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5)12 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
Specifically, the proposed rule change
is consistent with these provisions as it
will more accurately describe the
practice of the Exchange in the
Exchange Rulebook. The same
registered persons will be subject to the
Firm Element of the continuing
education requirements, and, thus, the
current practices of the Exchange will
remain the same. The Exchange believes
the proposed rule change is necessary to
accurately describe to the continuing
education requirements for Exchange
Trading Permit Holders. In addition, the
Exchange believes that adding a
reference to Rule 9.3A to CBSX
Appendix A will more sufficiently put
participants on CBSX of their
continuing education requirements.
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 purposes of the Act. The
Exchange does not believe the proposed
rule change imposes any burden on
intramarket competition because it
applies to all Trading Permit Holders.
Additionally, the Exchange does not
believe the proposed rule change will
impose any burden on intermarket
competition as it merely attempting to
correct a typographical error and add an
additional cross reference. There will be
7 Id.
8 See Introduction to CBSX Rules, Chapters 50
through 54.
9 See CBOE Rule 3.6A.04.
PO 00000
Frm 00328
Fmt 4703
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10 15
11 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12 Id.
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22OCN1
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
Electronic Comments
no substantive changes to the
Exchange’s operations nor its rules.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
sroberts on DSK5SPTVN1PROD with FRONT MATTER
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, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 13 and Rule 19b–4(f)(6)
thereunder.
The Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission notes that the
rule change raises no novel issues. It
corrects an inaccurate cross reference in
Rule 9.3A and would more clearly set
forth the continuing education
requirements for associated persons of
CBSX Trading Permit Holders. Waiver
of the operative delay would be
beneficial to associated persons of
member firms by making the existing
requirements clearer. Therefore, the
Commission designates the proposal
operative upon filing.14
At any time within 60 days of the
filing of this proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
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:
13 15
U.S.C. 78s(b)(3)(A).
14 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Mar<15>2010
21:08 Oct 21, 2013
Jkt 232001
• 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–CBOE–2013–098 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–2013–098. 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, on official business
days between the hours of 10:00 a.m.
and 3:00 p.m. Copies of such filing also
will be available for inspection and
copying at the principal office of the
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 available publicly. All
submissions should refer to File
Number SR–CBOE–2013–098 and
should be submitted on or before
November 12, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70598; File No. SR–
NYSEARCA–2013–96]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 2.23 to
Specify Applicable Continuing
Education Requirements, Amending
the NYSE Arca Options Fee Schedule
to Specify Corresponding CE Fees and
to Specify Fees for the Series 56
Examination
October 2, 2013.
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
September 19, 2013, 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. NYSE ARCA has
designated the proposed rule change as
constituting a non-controversial rule
change under Section 19(b)(3)(A)(iii) 4 of
the Act and Rule 19b–4(f)(6) 5
thereunder, which renders the filing
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 2.23 to specify applicable
continuing education (‘‘CE’’)
requirements, (ii) [sic] amend the NYSE
Arca Options Fee Schedule (‘‘Fee
Schedule’’) to specify corresponding CE
fees, and (iii) amend the Fee Schedule
to specify fees for the Series 56
examination. 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.
[FR Doc. 2013–24682 Filed 10–21–13; 8:45 am]
1 15
BILLING CODE 8011–01–P
15 17
PO 00000
Frm 00329
Fmt 4703
U.S.C.78s(b)(1).
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).
2 15
CFR 200.30–3(a)(12).
Sfmt 4703
62911
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Agencies
[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62909-62911]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24682]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70692; File No. SR-CBOE-2013-098]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to Continuing Education
October 16, 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 October 4, 2013, the Chicago Board Options Exchange,
Incorporated (the ``Exchange'' or ``CBOE'') 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 Exchange. The Exchange filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which
[[Page 62910]]
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\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 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 correct an administrative error in Rule
9.3A(c)(1) and add a reference to CBOE Rule 9.3A to the CBOE Stock
Exchange, LLC (``CBSX'') Appendix A. The text of the proposed rule
change is available on the Exchange's Web site (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to make an administrative change to correct
an inadvertent error in Exchange Rule 9.3A(c)(1). The Exchange proposes
to make the proposed change so the text properly reflects the intention
and practice of Rule 9.3A(c)(1). The Exchange also proposes to add a
reference to CBOE Rule 9.3A to CBSX Appendix A. The Exchange believes
that adding the reference to CBOE Rule 9.3A to CBSX Appendix A will
more clearly put CBSX Trading Permit Holders (``TPHs'') on notice of
their continuing education requirements.
In 2003, the Exchange filed a rule change, SR-CBOE-2003-01 to,
among other things, amend CBOE's continuing education rule.\5\ As part
of that filing, a new paragraph (b) was added to Exchange Rule 9.3A,
and the then current paragraph (b) was renumbered to paragraph (c).\6\
In doing so, an inadvertent error was made in a reference to paragraph
(b) in the new Rule 9.3A(c)(1). The error can be found in the first
sentence of current CBOE Rule 9.3A(c)(1). A reference is made to
``paragraph (b)''; however, the intended reference is to ``paragraph
(c).''
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 47188 (January 17,
2003), 68 FR 3071 (January 22, 2003) (notice of [sic] immediate
effectiveness of SR-CBOE-2003-01 which permitted the in-house
delivery of the Regulatory Element of Continuing Education by member
organizations).
\6\ Id.
---------------------------------------------------------------------------
The intention of CBOE Rule 9.3A is to discuss the register [sic]
persons subject to the Firm Element of the continuing education
program. This intention is spelled out in the title of the paragraph
which is, ``Persons Subject to the Firm Element.'' This intention is
more explicitly spelled out in SR-CBOE-2003-01. More specifically, the
filing states that the Firm Element requires, ``member and member
organizations to provide to their registered employees having direct
contact with customers ongoing training that is specifically tailored
to their business.'' \7\ The Firm Element is described in paragraph (c)
of current CBOE Rule 9.3A and not paragraph (b). Thus, the Exchange is
now proposing to amend this error to more accurately describe the
intention and practice of the rule.
---------------------------------------------------------------------------
\7\ Id.
---------------------------------------------------------------------------
Finally, the Exchange is proposing to add a reference to Rule 9.3A
to CBSX Appendix A. CBSX Appendix A to Chapters 50 through 54 lists the
rules in Chapters 1 through 29 that are applicable to trading on
CBSX.\8\ CBOE Rule 9.3A is applicable to CBSX members as well as
outlined in current CBOE Rule 6.3A [sic] as incorporated into Appendix
A. As such, CBOE Rule 3.6A.04 states that each individual registered
under CBOE Rule 3.6A ``is required to satisfy the continuing education
requirements set forth in Rule 9.3A and any other applicable continuing
education requirements as prescribed by the Exchange.'' \9\ Thus, CBSX
members are already on notice of their continuing education
requirements under CBOE Rule 9.3A. To make these requirements more
explicit, however, the Exchange is proposing to add a reference to CBOE
Rule 9.3A in CBSX Appendix A. The Exchange believes this change will
more clearly spell out continuing education requirements for CBSX
registered persons.
---------------------------------------------------------------------------
\8\ See Introduction to CBSX Rules, Chapters 50 through 54.
\9\ See CBOE Rule 3.6A.04.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\10\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \11\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, 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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5)\12\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ Id.
---------------------------------------------------------------------------
Specifically, the proposed rule change is consistent with these
provisions as it will more accurately describe the practice of the
Exchange in the Exchange Rulebook. The same registered persons will be
subject to the Firm Element of the continuing education requirements,
and, thus, the current practices of the Exchange will remain the same.
The Exchange believes the proposed rule change is necessary to
accurately describe to the continuing education requirements for
Exchange Trading Permit Holders. In addition, the Exchange believes
that adding a reference to Rule 9.3A to CBSX Appendix A will more
sufficiently put participants on CBSX of their continuing education
requirements.
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 purposes of the Act. The Exchange does not believe
the proposed rule change imposes any burden on intramarket competition
because it applies to all Trading Permit Holders. Additionally, the
Exchange does not believe the proposed rule change will impose any
burden on intermarket competition as it merely attempting to correct a
typographical error and add an additional cross reference. There will
be
[[Page 62911]]
no substantive changes to the Exchange's operations nor its rules.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on 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, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\13\ and Rule 19b-4(f)(6) thereunder.
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\13\ 15 U.S.C. 78s(b)(3)(A).
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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission notes that the rule change raises no
novel issues. It corrects an inaccurate cross reference in Rule 9.3A
and would more clearly set forth the continuing education requirements
for associated persons of CBSX Trading Permit Holders. Waiver of the
operative delay would be beneficial to associated persons of member
firms by making the existing requirements clearer. Therefore, the
Commission designates the proposal operative upon filing.\14\
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\14\ 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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At any time within 60 days of the filing of this proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings 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-CBOE-2013-098 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-2013-098. 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, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
such filing also will be available for inspection and copying at the
principal office of the 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 available publicly. All submissions should refer to
File Number SR-CBOE-2013-098 and should be submitted on or before
November 12, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24682 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P