Self-Regulatory Organizations; Topaz Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees, 65734-65736 [2013-26033]
Download as PDF
<![CDATA[
65734
Federal Register / Vol. 78, No. 212 / Friday, November 1, 2013 / Notices
exchange may become a Sponsor if it
satisfies the requirement of Section 7 of
the OLPP. Specifically an Eligible
Exchange 4 may become a Sponsor of
the OLPP by: (i) Executing a copy of the
OLPP, as then in effect; (ii) providing
each current Plan Sponsor with a copy
of such executed Plan; and (iii) effecting
an amendment to the OLPP, as specified
in Section 7(ii) of the OLPP.
Section 7(ii) of the OLPP sets forth the
process by which an Eligible Exchange
may effect an amendment to the OLPP.
Specifically, an Eligible Exchange must:
(a) Execute a copy of the OLPP with the
only change being the addition of the
new sponsor’s name in Section 8 of the
OLPP; 5 and (b) submit the executed
OLPP to the Commission. The OLPP
then provides that such an amendment
will be effective at the later of either the
amendment being approved by the
Commission or otherwise becoming
effective pursuant to Section 11A of the
Act. MIAX has submitted a signed copy
of the OLPP to the Commission and to
each Plan Sponsor in accordance with
the procedures set forth in the OLPP
regarding new Plan Sponsors.
II. Effectiveness of the Proposed
Linkage Plan Amendment
The foregoing proposed OLPP
amendment has become effective
pursuant to Rule 608(b)(3)(iii) 6 because
it involves solely technical or
ministerial matters. At any time within
sixty days of the filing of this
amendment, the Commission may
summarily abrogate the amendment and
require that it be refiled pursuant to
paragraphs (a)(1) of Rule 608,7 if it
appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors or the maintenance of fair and
orderly markets, to remove impediments
to, and perfect the mechanisms of, a
national market system or otherwise in
furtherance of the purposes of the Act.
emcdonald on DSK67QTVN1PROD with NOTICES
III. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
4 The OLPP defines an ‘‘Eligible Exchange’’ as a
national securities exchange registered with the
Commission pursuant to Section 6(a) of the
Exchange Act, 15 U.S.C. 78f(a), that (1) has effective
rules for the trading of options contracts issued and
cleared by the OCC approved in accordance with
the provisions of the Exchange Act and the rules
and regulations thereunder and (2) is a party to the
Plan for Reporting Consolidated Options Last Sale
Reports and Quotation Information (the ‘‘OPRA
Plan’’). MIAX has represented that it has met both
the requirements for being considered an Eligible
Exchange.
5 The Commission notes that the list of plan
sponsors is set forth in Section 9 of the OLPP.
6 17 CFR 242.608(b)(3)(iii).
7 17 CFR 242.608(a)(1).
VerDate Mar<15>2010
17:40 Oct 31, 2013
Jkt 232001
arguments concerning the foregoing,
including whether the proposed
amendment 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 4–
443 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 4–443. 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 such
filing also will be available for
inspection and copying at MIAX’s
principal office. 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 No. 4–443 and
should be submitted on or before
November 22, 2013.
By the Commission.
Kevin M. O’Neill,
Deputy Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70761; File No. SR–Topaz–
2013–09]
Self-Regulatory Organizations; Topaz
Exchange LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Schedule
of Fees
October 28, 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
22, 2013, the Topaz Exchange, LLC (d/
b/a ISE Gemini) (the ‘‘Exchange’’ or
‘‘Topaz’’) filed with the Securities and
Exchange Commission the proposed
rule change, as described in Items I, II,
and III below, which items have been
prepared by the self-regulatory
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
Topaz is proposing to amend its
Schedule of Fees to adopt a continuing
education fee for Series 56 registered
persons. 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
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
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
The purpose of the proposed rule
change is to amend the Schedule of Fees
to adopt a fee for a new continuing
[FR Doc. 2013–26074 Filed 10–31–13; 8:45 am]
1 15
BILLING CODE 8011–01–P
PO 00000
2 17
Frm 00130
Fmt 4703
Sfmt 4703
E:\FR\FM\01NON1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
01NON1
Federal Register / Vol. 78, No. 212 / Friday, November 1, 2013 / Notices
emcdonald on DSK67QTVN1PROD with NOTICES
education program, the S501,3 which is
required for persons who are registered
as Proprietary Traders (i.e. Series 56)
and do not maintain any other
registration.4
The S501 addresses the continuing
education of Proprietary Traders, based
on the content outline for the Series 56
exam, which covers the main categories
of rules and regulations generally
applicable to such persons. These
generally include recordkeeping and
recording requirements, types and
characteristics of securities and
investments, trading practices and
display execution and trading systems.
Each Proprietary Trader required to take
the S501 must complete the continuing
education program within 120 days after
their [sic] second registration
anniversary date, and every three years
thereafter or as otherwise prescribed by
the Exchange.
The Exchange proposes to adopt a $60
fee for the S501 continuing education
program, which will be used for the
administration of the S501. The
Financial Industry Regulatory Authority
(‘‘FINRA’’) administers this program on
behalf of the exchanges and therefore
the fees are payable directly to FINRA.
The Exchange expects that the other
exchanges that recognize the Proprietary
Trader registration either have or will
adopt the same fee for continuing
education.5
The Exchange’s Schedule of Fees does
not currently set forth the session fees
for other continuing education programs
required by the Exchange because these
programs are within the jurisdiction of
FINRA, which collects these session
fees from its members. The Series 56,
however, applies to Topaz Members that
are not required by Section 15(b)(8) of
the Act 6 to become members of FINRA.
Therefore, the Exchange believes it is
3 See Securities Exchange Act Release No. 70417
(September 16, 2013), 78 FR 57907 (September 20,
2013) (SR–ISE–2013–48). ISE Rule 604, which
specifies the continuing education requirements for
registered persons, including Series 56 registered
Proprietary Traders, is incorporated by reference
into Chapter 6 of Topaz Rules.
4 Individuals that are registered under any other
registration are required to maintain the continuing
education obligations associated with such
registrations. For example, an individual that
engages solely in proprietary trading activities but
has passed the Series 7 and is registered as a
General Securities Representative will be required
to continue taking the Series 7 continuing
education program (S101). Id.
5 See e.g. Securities Exchange Act Release Nos.
70257 (August 26, 2013), 78 FR 53814 (August 30,
2013) (SR–BATS–2013–047); 70064 (July 30, 2013),
78 FR 47469 (August 5, 2013) (SR–CBOE–2013–
078); 70194 (August 14, 2013) 78 FR 51259 (August
20, 2013) (SR–C2–2013–030); 70327 (September 5,
2013), 78 FR 55766 (September 11, 2013) (SR–Phlx–
2013–85).
6 15 U.S.C. 78o(b)(8).
VerDate Mar<15>2010
17:40 Oct 31, 2013
Jkt 232001
appropriate to include the Series 56
continuing education fee within the
Exchange’s Schedule of Fees to make
the cost of this program clear to Topaz
Members.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Section 6(b)(4) of the Act,8
in particular, in that it provides for an
equitable allocation of reasonable fees
and other charges among Exchange
Members and other persons using its
facilities. The proposed fee is equitable
and not unfairly discriminatory, because
it applies equally to all persons
registered solely as Proprietary Traders.
The Exchange notes that it will not
invoice or collect funds from Members
that are subject to these fees because
these fees will be paid directly to FINRA
as administrator of the continuing
education program. The proposed fees
are reasonably designed to allow FINRA
to cover its cost of administering the
Series 56 continuing education program
on behalf of the Exchange, and the
Exchange believes it is reasonable and
equitable to include these fees in its
Schedule of Fees to make the costs of
the Series 56 continuing education
program clear to Members. Moreover,
the Exchange believes other exchanges
will be assessing the same fees for this
continuing education program.9
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. The
Exchange does not believe that the
proposed rule change will affect
intermarket competition because all of
the exchanges that recognize the
Proprietary Trader registration category
are expected to adopt the same
continuing education fee.10
Furthermore, the Exchange does not
believe the proposed rule change will
affect intramarket competition because
all Proprietary Traders required to
complete the new S501 continuing
education program will pay the same
continuing education fee.
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
9 See supra notes 3 and 5.
10 Id.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
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)(ii) of the Act,11 and
subparagraph (f)(2) of Rule 19b–4
thereunder,12 because it establishes a
due, fee, or other charge imposed by
Topaz.
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
Topaz–2013–09 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–Topaz–2013–09. 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
8 15
PO 00000
Frm 00131
Fmt 4703
Sfmt 4703
65735
11 15
12 17
E:\FR\FM\01NON1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
01NON1
65736
Federal Register / Vol. 78, No. 212 / Friday, November 1, 2013 / Notices
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 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–Topaz–
2013–09 and should be submitted on or
before November 22, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–26033 Filed 10–31–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70760; File No. SR–
NYSEMKT–2013–85]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 980NY to
Specify That the Specialist Pool and
Directed Order Market Makers Receive
Execution Allocations of Incoming
Electronic Complex Orders and
Complex Order Auction Eligible Orders
in Accordance With the Guaranteed
Participation Provision of Rule
964NY(c)(2)(B), Without Any
Exceptions
emcdonald on DSK67QTVN1PROD with NOTICES
October 28, 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 October
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
17:40 Oct 31, 2013
Jkt 232001
24, 2013, NYSE MKT LLC (the
‘‘Exchange’’) 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
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 980NY to specify that the
Specialist Pool and Directed Order
Market Makers receive execution
allocations of incoming Electronic
Complex Orders and Complex Order
Auction (‘‘COA’’) eligible orders in
accordance with the guaranteed
participation provision of Rule
964NY(c)(2)(B), without any exceptions.
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to amend
Rules 980NY(c)(i), (c)(iii), (e)(6)(A), and
(e)(6)(D) to specify that the Specialist
Pool and Directed Order Market Makers
receive execution allocations of the
individual components of a legged out
incoming Electronic Complex Order or
COA-eligible order in accordance with
the guaranteed participation provision
of Rule 964NY(c)(2)(B), without any
exceptions. Exchange systems currently
provide the Specialist Pool with such
guaranteed participations when
Electronic Complex Orders are legged
out to trade with individual quotes and
orders in the leg markets that include
PO 00000
Frm 00132
Fmt 4703
Sfmt 4703
bids or offers from the Specialist Pool.
Directed Order Market Makers,
however, do not currently receive
guaranteed participation with respect to
Electronic Complex Orders. As
proposed, an Electronic Complex Order
that is marked as a Directed Order may
execute against Directed Order Market
Makers if it legs out to trade with
individual quotes and orders in the leg
markets and there is a Directed Order
Market Maker quoting in one or more of
the leg markets.
Rule 980NY governs trading of
‘‘Electronic Complex Orders,’’ as that
term is defined in Rule 900.3NY(e).4
Rule 980NY(c)(i) currently provides that
Electronic Complex Orders accepted in
the Exchange’s Complex Matching
Engine (‘‘CME’’) 5 are executed
automatically against other Electronic
Complex Orders in the Consolidated
Book,6 unless individual orders or
quotes in the Consolidated Book can
execute against incoming Electronic
Complex Orders, subject to specified
conditions, in which case such
individual orders and quotes have
priority. Rule 980NY(c)(iii) currently
provides that ATP Holders can view
Electronic Complex Orders in the
Consolidated Book via an electronic
interface and may submit Electronic
Complex Orders to the CME to trade
against orders in the Consolidated Book.
Rule 980NY(e) governs the COA
process, and specifically, Rule 980(e)(6)
governs the execution of COA-eligible
orders.7 Upon receiving a COA-eligible
order and a request by the ATP Holder
representing the order that an auction be
initiated, the Exchange sends an
automated request for responses
4 Rule 900.3NY(e) defines an Electronic Complex
Order as ‘‘any order involving the simultaneous
purchase and/or sale of two or more different
option series in the same underlying security, for
the same account, in a ratio that is equal to or
greater than one-to-three (.333) and less than or
equal to three-to-one (3.00) and for the purpose of
executing a particular investment strategy.’’
5 Rule 980NY(a) defines the CME as ‘‘the
mechanism in which Electronic Complex Orders
are executed against each other or against
individual quotes and orders in the Consolidated
Book.’’
6 Rule 900.2NY(14) defines the Consolidated
Book as ‘‘the Exchange’s electronic book of limit
orders for the accounts of Customers and brokerdealers, and Quotes with Size. All orders and
Quotes with Size that are entered into the Book will
be ranked and maintained in accordance with the
rules of priority as provided in Rule 964NY.’’
7 Rule 980NY(e)(1) defines a COA-eligible order
as ‘‘an Electronic Complex Order that, as
determined by the Exchange on a class-by-class
basis, is eligible for a COA considering the order’s
marketability (defined as a number of ticks away
from the current market), size, number of series,
and complex order origin types (i.e., Customers,
broker-dealers that are not Market-Makers or
specialists on an options exchange, and/or MarketMakers or specialists on an options exchange).’’
E:\FR\FM\01NON1.SGM
01NON1
]]>Agencies
[Federal Register Volume 78, Number 212 (Friday, November 1, 2013)]
[Notices]
[Pages 65734-65736]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-26033]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70761; File No. SR-Topaz-2013-09]
Self-Regulatory Organizations; Topaz Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Schedule of Fees
October 28, 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 22, 2013, the Topaz Exchange, LLC (d/b/a ISE Gemini)
(the ``Exchange'' or ``Topaz'') filed with the Securities and Exchange
Commission the proposed rule change, as described in Items I, II, and
III below, which items have been prepared by the self-regulatory
organization. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Topaz is proposing to amend its Schedule of Fees to adopt a
continuing education fee for Series 56 registered persons. 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 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 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
The purpose of the proposed rule change is to amend the Schedule of
Fees to adopt a fee for a new continuing
[[Page 65735]]
education program, the S501,\3\ which is required for persons who are
registered as Proprietary Traders (i.e. Series 56) and do not maintain
any other registration.\4\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 70417 (September 16,
2013), 78 FR 57907 (September 20, 2013) (SR-ISE-2013-48). ISE Rule
604, which specifies the continuing education requirements for
registered persons, including Series 56 registered Proprietary
Traders, is incorporated by reference into Chapter 6 of Topaz Rules.
\4\ Individuals that are registered under any other registration
are required to maintain the continuing education obligations
associated with such registrations. For example, an individual that
engages solely in proprietary trading activities but has passed the
Series 7 and is registered as a General Securities Representative
will be required to continue taking the Series 7 continuing
education program (S101). Id.
---------------------------------------------------------------------------
The S501 addresses the continuing education of Proprietary Traders,
based on the content outline for the Series 56 exam, which covers the
main categories of rules and regulations generally applicable to such
persons. These generally include recordkeeping and recording
requirements, types and characteristics of securities and investments,
trading practices and display execution and trading systems. Each
Proprietary Trader required to take the S501 must complete the
continuing education program within 120 days after their [sic] second
registration anniversary date, and every three years thereafter or as
otherwise prescribed by the Exchange.
The Exchange proposes to adopt a $60 fee for the S501 continuing
education program, which will be used for the administration of the
S501. The Financial Industry Regulatory Authority (``FINRA'')
administers this program on behalf of the exchanges and therefore the
fees are payable directly to FINRA. The Exchange expects that the other
exchanges that recognize the Proprietary Trader registration either
have or will adopt the same fee for continuing education.\5\
---------------------------------------------------------------------------
\5\ See e.g. Securities Exchange Act Release Nos. 70257 (August
26, 2013), 78 FR 53814 (August 30, 2013) (SR-BATS-2013-047); 70064
(July 30, 2013), 78 FR 47469 (August 5, 2013) (SR-CBOE-2013-078);
70194 (August 14, 2013) 78 FR 51259 (August 20, 2013) (SR-C2-2013-
030); 70327 (September 5, 2013), 78 FR 55766 (September 11, 2013)
(SR-Phlx-2013-85).
---------------------------------------------------------------------------
The Exchange's Schedule of Fees does not currently set forth the
session fees for other continuing education programs required by the
Exchange because these programs are within the jurisdiction of FINRA,
which collects these session fees from its members. The Series 56,
however, applies to Topaz Members that are not required by Section
15(b)(8) of the Act \6\ to become members of FINRA. Therefore, the
Exchange believes it is appropriate to include the Series 56 continuing
education fee within the Exchange's Schedule of Fees to make the cost
of this program clear to Topaz Members.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78o(b)(8).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(4) of the Act,\8\ in particular, in that it provides for an
equitable allocation of reasonable fees and other charges among
Exchange Members and other persons using its facilities. The proposed
fee is equitable and not unfairly discriminatory, because it applies
equally to all persons registered solely as Proprietary Traders. The
Exchange notes that it will not invoice or collect funds from Members
that are subject to these fees because these fees will be paid directly
to FINRA as administrator of the continuing education program. The
proposed fees are reasonably designed to allow FINRA to cover its cost
of administering the Series 56 continuing education program on behalf
of the Exchange, and the Exchange believes it is reasonable and
equitable to include these fees in its Schedule of Fees to make the
costs of the Series 56 continuing education program clear to Members.
Moreover, the Exchange believes other exchanges will be assessing the
same fees for this continuing education program.\9\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
\9\ See supra notes 3 and 5.
---------------------------------------------------------------------------
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. The Exchange does not
believe that the proposed rule change will affect intermarket
competition because all of the exchanges that recognize the Proprietary
Trader registration category are expected to adopt the same continuing
education fee.\10\ Furthermore, the Exchange does not believe the
proposed rule change will affect intramarket competition because all
Proprietary Traders required to complete the new S501 continuing
education program will pay the same continuing education fee.
---------------------------------------------------------------------------
\10\ Id.
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
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)(ii) of the Act,\11\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\12\ because it establishes a due, fee, or other charge
imposed by Topaz.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-Topaz-2013-09 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-Topaz-2013-09. 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
[[Page 65736]]
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 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-Topaz-2013-09 and should be
submitted on or before November 22, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-26033 Filed 10-31-13; 8:45 am]
BILLING CODE 8011-01-P
