Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to a CBOE Stock Exchange Fee for Qualification Examination Waiver Requests, 8761-8763 [2014-03182]
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Federal Register / Vol. 79, No. 30 / Thursday, February 13, 2014 / Notices
accounts and ICC proposes to make
such changes effective beginning on
February 3, 2014.
ICC believes the proposed rule
changes are consistent with the
requirements of the Act including
Section 17A of the Act.5 More
specifically, the proposed rule changes
establish or change a member due, fee
or other charge imposed by ICC under
Section 19(b)(3)(A)(ii) 6 of the Act and
Rule 19b–4(f)(2) 7 thereunder. ICC
believes the proposed rule changes are
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to ICC, in
particular, to Section 17(A)(b)(3)(D),8
because the proposed collateral and
cash management fee changes apply
equally to all market participants and
therefore the proposed changes provide
for the equitable allocation of reasonable
dues, fees and other charges among
participants. As such, the proposed
changes are appropriately filed pursuant
to Section 19(b)(3)(A) 9 of the Act and
paragraph (f)(2) of Rule 19b–4
thereunder.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
ICC does not believe the proposed
rule change would have any impact, or
impose any burden, on competition.
The proposed collateral and cash
management fee changes apply
consistently across all market
participants and the implementation of
the proposed collateral and cash
management fee changes does not
preclude the implementation of similar
fee changes by other market
participants. Therefore, ICC does not
believe the collateral and cash
management fee changes impose any
burden on competition that is
inappropriate in furtherance of the
purposes of the Act.
emcdonald on DSK67QTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments relating to the
proposed rule change have not been
solicited or received. ICC will notify the
Commission of any written comments
received by ICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
5 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A)(ii).
7 17 CFR 240.19b–4(f)(2).
8 15 U.S.C. 78q–1(b)(3)(D).
9 15 U.S.C. 78s(b)(3)(A).
19(b)(3)(A) 10 of the Act and Rule 19b–
4(f)(2) 11 thereunder because, by
implementing changes to the method by
which ICC charges Clearing Participants
for collateral and cash management
services, ICC is establishing or changing
a due, fee, or other charge applicable
only to a member. 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.12
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–
ICC–2014–01 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–ICC–2014–01. 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
filings also will be available for
inspection and copying at the principal
office of ICE Clear Credit and on ICE
Clear Credit’s Web site at https://
www.theice.com/notices/
Notices.shtml?regulatoryFilings.
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–ICC–2014–01 and should
be submitted on or before March 6,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–03130 Filed 2–12–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71510; File No. SR–CBOE–
2014–011]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to a CBOE Stock
Exchange Fee for Qualification
Examination Waiver Requests
February 7, 2014.
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 February
3, 2014 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, 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
Chicago Board Options Exchange,
Incorporated (the ‘‘Exchange’’ or
‘‘CBOE’’) proposes to amend the CBOE
Stock Exchange (‘‘CBSX’’) Fees
Schedule to establish a fee for
6 15
VerDate Mar<15>2010
18:44 Feb 12, 2014
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
12 15 U.S.C. 78s(b)(3)(C).
10 15
13 17
11 17
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1 15
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
8761
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
E:\FR\FM\13FEN1.SGM
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8762
Federal Register / Vol. 79, No. 30 / Thursday, February 13, 2014 / Notices
qualification examination waiver
requests. CBSX is CBOE’s stock trading
facility. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.cboe.com/About
CBOE/CBOELegalRegulatory
Home.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
emcdonald on DSK67QTVN1PROD with NOTICES
1. Purpose
CBOE Rule 3.6A, Interpretation and
Policy .05, authorizes the Exchange, in
exceptional cases and where good cause
is shown, to waive qualification
examinations and accept other
standards as evidence of an applicant’s
qualification for registration. This
authority is to be exercised in
exceptional cases and where good cause
is shown by the applicant. The rule
further states that advanced age or
physical infirmity, will not individually
of themselves constitute sufficient
grounds to waive a qualification
examination. Experience in fields
ancillary to the securities business may
constitute sufficient grounds to waive a
qualification examination.
The Exchange has entered into a
regulatory services agreement (‘‘RSA’’)
with the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) pursuant to
which FINRA will process qualification
examination waiver requests on behalf
of the Exchange and CBSX (‘‘Waiver
Requests’’).3 Under the RSA, CBSX
Trading Permit Holders (‘‘TPHs’’) and
persons associated with CBSX TPHs
seeking a waiver of a qualification
examination will submit a Waiver
3 CBOE Rule 15.9(b) authorizes the Exchange to
enter into agreements with another self-regulatory
organization to provide regulatory services to the
Exchange to assist the Exchange in discharging its
obligations under Section 6 and Section 19(g) of the
Securities Exchange Act of 1934.
VerDate Mar<15>2010
18:44 Feb 12, 2014
Jkt 232001
Request to FINRA.4 FINRA will process
all Waiver Requests submitted by CBSX
TPHs and their associated persons,
whether the Waiver Request is for a
FINRA examination or a non-FINRA
examination (e.g., the Series 56
examination).
FINRA will review each Waiver
Request based on guidelines approved
by the Exchange and provide the
Exchange with a recommendation
regarding the disposition of the Waiver
Request. The Exchange will make the
final decision regarding whether or not
to grant or deny a Waiver Request.5
FINRA will maintain files and records
made, collected or otherwise created by
FINRA in the course of performing
services under the RSA. Such files and
records shall include, but not be limited
to, FINRA Waiver Request disposition
recommendations and the basis for its
recommendations,6 CBOE decisions and
the basis for its decisions,7 and letters
sent to requesting CBSX TPHs
communicating CBOE’s decisions.
The Exchange will pay a fee to FINRA
under the RSA for each Waiver Request
of a non-FINRA examination (e.g., the
Series 56 examination) processed by
FINRA. The Exchange proposes to
charge CBSX TPHs a fee of $200 for
each Waiver Request of a non-FINRA
examination processed by FINRA. The
proposed fee would help the Exchange
recoup its costs under the RSA.
The proposed fee would be effective
on February 3, 2014.
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.8 Specifically,
the Exchange believes the proposed rule
change is consistent with Section 6(b)(4)
of the Act,9 which requires that
4 Currently, Waiver Requests must be submitted
to FINRA through the FINRA Firm Gateway.
5 Notwithstanding the RSA, the Exchange shall
retain ultimate legal responsibility for, and control
of, its self-regulatory responsibilities.
6 The recommendation provided to CBOE will
include a detailed explanation and justification as
to whether to grant or deny the Waiver Request, and
in those cases where the recommendation is to
grant a waiver, the reasoning shall support why
FINRA believes it is an exceptional case and that
good cause has been shown to warrant the granting
of the Waiver Request.
7 CBOE will notify FINRA in writing of its final
decision regarding whether to grant or deny a
Waiver Request, including any additional
information regarding such decision.
The Commission expects CBOE to document in
writing its rationale for any decision when CBOE
determines not to follow FINRA’s recommendation.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
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Frm 00085
Fmt 4703
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Exchange rules provide for the equitable
allocation of reasonable dues, fees, and
other charges among its Trading Permit
Holders and other persons using its
facilities. Additionally, the Exchange
believes the proposed rule change is
consistent with the Section 6(b)(5) 10
requirement that the rules of an
exchange not be designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes the proposed fee
is reasonable because it would help the
Exchange recoup its costs in engaging
FINRA to process Waiver Requests of
non-FINRA examinations by CBSX
TPHs and their associated persons. The
Exchange believes the proposed fee is
equitable and not unfairly
discriminatory because it would apply
equally to all CBSX TPHs who submit
Waiver Requests of non-FINRA
examinations.
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 that the
proposed fee will impose an
unnecessary burden on intramarket
competition because it would apply
equally to all CBSX TPHs who submit
Waiver Requests of non-FINRA
examinations. The Exchange does not
believe that the proposed fee will
impose an unnecessary burden on
intermarket competition because the fee
would only apply to CBSX TPHs.
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
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 12 thereunder. 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
10 Id.
[sic]
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f).
11 15
E:\FR\FM\13FEN1.SGM
13FEN1
Federal Register / Vol. 79, No. 30 / Thursday, February 13, 2014 / Notices
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
2014–011 and should be submitted on
or before March 6, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–03182 Filed 2–12–14; 8:45 am]
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:
BILLING CODE 8011–01–P
Electronic Comments
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify Fees
for NASDAQ Basic
• 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–2014–011 on the subject line.
Paper Comments
emcdonald on DSK67QTVN1PROD with NOTICES
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2014–011. 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–CBOE–
VerDate Mar<15>2010
18:44 Feb 12, 2014
Jkt 232001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71507; File No. SR–
NASDAQ–2014–011]
February 7, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b-4 thereunder,2
notice is hereby given that on January
27, 2014, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) a
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
NASDAQ is proposing modify fees for
the NASDAQ Basic data product. The
proposal, which modifies monthly fees,
is effective for the month of January
2014 and subsequent months. The text
of the proposed rule change is available
on the Exchange’s Web site at https://
nasdaq.cchwallstreet.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
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
8763
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
NASDAQ Basic is a proprietary data
product that provides best bid and offer
information from the NASDAQ Market
Center and last sale transaction reports
from the NASDAQ Market Center and
from the FINRA/NASDAQ Trade
Reporting Facility (‘‘FINRA/NASDAQ
TRF’’). As such, NASDAQ Basic
provides a subset of the ‘‘core’’
quotation and last sale data provided by
securities information processors
(‘‘SIPs’’) under the CQ/CT Plan and the
NASDAQ UTP Plan. In this filing,
NASDAQ is proposing to (i) increase the
Subscriber fees charged with respect to
‘‘Professional’’ Subscribers to the
product, for the first time since the
introduction of the product in 2009, (ii)
introduce a new enterprise license for
Professional Subscribers; and (iii) add
rules to allow ‘‘netting,’’ in certain
instances, by Subscribers with multiple
means of access to NASDAQ Basic, in
order to reduce the total number of
Subscribers for which a fee will be
charged.
NASDAQ Basic contains three
separate components, which may be
purchased individually or in
combination: (i) NASDAQ Basic for
NASDAQ, which contains the best bid
and offer on the NASDAQ Market
Center and last sale transaction reports
for NASDAQ and the FINRA/NASDAQ
TRF for NASDAQ-listed stocks, (ii)
NASDAQ Basic for NYSE, which covers
NYSE-listed stocks, and (iii) NASDAQ
Basic for NYSE MKT, which covers
stocks listed on NYSE MKT and other
listing venues whose quotes and trade
reports are disseminated on Tape B.3
The fee structure for NASDAQ Basic
features a fee for Professional
Subscribers and a reduced fee for NonProfessional Subscribers.4 The current
3 NASDAQ is modifying the text of Rule 7047 to
make it clear that NASDAQ Basic for NYSE MKT
includes information for all Tape B listing venues
and to use consistent terminology to describe the
three data elements of NASDAQ Basic throughout
the rule.
4 A ‘‘Non-Professional Subscriber’’ is ‘‘a natural
person who is not (i) registered or qualified in any
capacity with the Commission, the Commodity
Futures Trading Commission, any state securities
agency, any securities exchange or association, or
any commodities or futures contract market or
association; (ii) engaged as an ‘‘investment adviser’’
Continued
E:\FR\FM\13FEN1.SGM
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Agencies
[Federal Register Volume 79, Number 30 (Thursday, February 13, 2014)]
[Notices]
[Pages 8761-8763]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03182]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71510; File No. SR-CBOE-2014-011]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to a CBOE Stock Exchange Fee for
Qualification Examination Waiver Requests
February 7, 2014.
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 February 3, 2014 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, 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.
---------------------------------------------------------------------------
\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
Chicago Board Options Exchange, Incorporated (the ``Exchange'' or
``CBOE'') proposes to amend the CBOE Stock Exchange (``CBSX'') Fees
Schedule to establish a fee for
[[Page 8762]]
qualification examination waiver requests. CBSX is CBOE's stock trading
facility. 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
CBOE Rule 3.6A, Interpretation and Policy .05, authorizes the
Exchange, in exceptional cases and where good cause is shown, to waive
qualification examinations and accept other standards as evidence of an
applicant's qualification for registration. This authority is to be
exercised in exceptional cases and where good cause is shown by the
applicant. The rule further states that advanced age or physical
infirmity, will not individually of themselves constitute sufficient
grounds to waive a qualification examination. Experience in fields
ancillary to the securities business may constitute sufficient grounds
to waive a qualification examination.
The Exchange has entered into a regulatory services agreement
(``RSA'') with the Financial Industry Regulatory Authority, Inc.
(``FINRA'') pursuant to which FINRA will process qualification
examination waiver requests on behalf of the Exchange and CBSX
(``Waiver Requests'').\3\ Under the RSA, CBSX Trading Permit Holders
(``TPHs'') and persons associated with CBSX TPHs seeking a waiver of a
qualification examination will submit a Waiver Request to FINRA.\4\
FINRA will process all Waiver Requests submitted by CBSX TPHs and their
associated persons, whether the Waiver Request is for a FINRA
examination or a non-FINRA examination (e.g., the Series 56
examination).
---------------------------------------------------------------------------
\3\ CBOE Rule 15.9(b) authorizes the Exchange to enter into
agreements with another self-regulatory organization to provide
regulatory services to the Exchange to assist the Exchange in
discharging its obligations under Section 6 and Section 19(g) of the
Securities Exchange Act of 1934.
\4\ Currently, Waiver Requests must be submitted to FINRA
through the FINRA Firm Gateway.
---------------------------------------------------------------------------
FINRA will review each Waiver Request based on guidelines approved
by the Exchange and provide the Exchange with a recommendation
regarding the disposition of the Waiver Request. The Exchange will make
the final decision regarding whether or not to grant or deny a Waiver
Request.\5\ FINRA will maintain files and records made, collected or
otherwise created by FINRA in the course of performing services under
the RSA. Such files and records shall include, but not be limited to,
FINRA Waiver Request disposition recommendations and the basis for its
recommendations,\6\ CBOE decisions and the basis for its decisions,\7\
and letters sent to requesting CBSX TPHs communicating CBOE's
decisions.
---------------------------------------------------------------------------
\5\ Notwithstanding the RSA, the Exchange shall retain ultimate
legal responsibility for, and control of, its self-regulatory
responsibilities.
\6\ The recommendation provided to CBOE will include a detailed
explanation and justification as to whether to grant or deny the
Waiver Request, and in those cases where the recommendation is to
grant a waiver, the reasoning shall support why FINRA believes it is
an exceptional case and that good cause has been shown to warrant
the granting of the Waiver Request.
\7\ CBOE will notify FINRA in writing of its final decision
regarding whether to grant or deny a Waiver Request, including any
additional information regarding such decision.
The Commission expects CBOE to document in writing its
rationale for any decision when CBOE determines not to follow
FINRA's recommendation.
---------------------------------------------------------------------------
The Exchange will pay a fee to FINRA under the RSA for each Waiver
Request of a non-FINRA examination (e.g., the Series 56 examination)
processed by FINRA. The Exchange proposes to charge CBSX TPHs a fee of
$200 for each Waiver Request of a non-FINRA examination processed by
FINRA. The proposed fee would help the Exchange recoup its costs under
the RSA.
The proposed fee would be effective on February 3, 2014.
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.\8\ Specifically, the
Exchange believes the proposed rule change is consistent with Section
6(b)(4) of the Act,\9\ which requires that Exchange rules provide for
the equitable allocation of reasonable dues, fees, and other charges
among its Trading Permit Holders and other persons using its
facilities. Additionally, the Exchange believes the proposed rule
change is consistent with the Section 6(b)(5) \10\ requirement that the
rules of an exchange not be designed to permit unfair discrimination
between customers, issuers, brokers, or dealers. The Exchange believes
the proposed fee is reasonable because it would help the Exchange
recoup its costs in engaging FINRA to process Waiver Requests of non-
FINRA examinations by CBSX TPHs and their associated persons. The
Exchange believes the proposed fee is equitable and not unfairly
discriminatory because it would apply equally to all CBSX TPHs who
submit Waiver Requests of non-FINRA examinations.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
\10\ Id. [sic]
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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
that the proposed fee will impose an unnecessary burden on intramarket
competition because it would apply equally to all CBSX TPHs who submit
Waiver Requests of non-FINRA examinations. The Exchange does not
believe that the proposed fee will impose an unnecessary burden on
intermarket competition because the fee would only apply to CBSX TPHs.
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
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 \12\
thereunder. 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
[[Page 8763]]
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.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f).
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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-2014-011 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2014-011. 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-CBOE-2014-011 and should be
submitted on or before March 6, 2014.
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\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03182 Filed 2-12-14; 8:45 am]
BILLING CODE 8011-01-P