Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Partial Amendment No. 1 to Proposed Rule Change Relating to Proposed Rule Change To Adopt FINRA Capital Acquisition Broker Rules, 22333-22334 [2016-08646]

Download as PDF Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments SECURITIES AND EXCHANGE COMMISSION [Release No. 34–77581; File No. SR–FINRA– 2015–054] • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule comments@ sec.gov. Please include File No. SR– BOX–2016–13 on the subject line. Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Partial Amendment No. 1 to Proposed Rule Change Relating to Proposed Rule Change To Adopt FINRA Capital Acquisition Broker Rules Paper Comments April 11, 2016. • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. I. Introduction asabaliauskas on DSK3SPTVN1PROD with NOTICES All submissions should refer to File No. SR–BOX–2016–13. 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 (http://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 No. SR–BOX–2016– 13, and should be submitted on or before May 6, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.29 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–08645 Filed 4–14–16; 8:45 am] BILLING CODE 8011–01–P 29 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:27 Apr 14, 2016 Jkt 238001 On December 4, 2015, Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’ or ‘‘SEC’’) proposed rule change SR–FINRA–2015–054, pursuant to which FINRA proposed to adopt a rule set that would apply exclusively to firms that meet the definition of ‘‘capital acquisition broker’’ and that elect to be governed under this rule set (collectively, the ‘‘CAB Rules’’). The Commission published the proposed rule change for public comment in the Federal Register on December 23, 2015.1 The Commission received 17 comment letters in response to the proposed rule change.2 On January 28, 2016, FINRA extended the time period in which the Commission 1 Securities Exchange Act Release No. 76675 (December 17, 2015), 80 FR 79969 (December 23, 2015) (Notice of Filing of File No. SR–FINRA– 2015–054) (‘‘Notice of Filing’’). 2 Letters from Peter W. LaVigne, Esq., Chair, Securities Regulation Committee, Business Law Section, New York State Bar Association, dated January 22, 2016; Judith M. Shaw, President, North American Securities Administrators Association, Inc., dated January 15, 2016; Timothy Cahill, President, Compass Securities Corporation, dated January 13, 2016; Mark Fairbanks, President, Foreside Distributors, dated January 13, 2016; Dan Glusker, Perkins Fund Marketing, LLC, dated January 13, 2016; Steven Jafarzadeh, CAIA, Managing Director, CCO Partner, Stonehaven, dated January 13, 2016; Richard A. Murphy, Manager, North Bridge Capital LLC, dated January 13, 2016; Ron Oldenkamp, President, Genesis Marketing Group, dated January 13, 2016; Michael S. Quinn, Member and CCO, Q Advisors LLC, dated January 13, 2016; Lisa Roth, President, Monahan & Roth, LLC, dated January 13, 2016; Howard Spindel, Senior Managing Director, and Cassondra E. Joseph, Managing Director, Integrated Management Solutions USA LLC, dated January 13, 2016; Sajan K. Thomas, President, and Stephen J. Myott, Chief Compliance Officer, Thomas Capital Group, Inc., dated January 13, 2016; Donna DiMaria, Chairman of the Board of Directors, and Lisa Roth, Board of Directors, Third Party Marketers Association, dated January 12, 2016; Frank P. L. Minard, Managing Partner, XT Capital Partners, LLC, dated January 12, 2016; Arne Rovell, Coronado Investments, LLC, dated January 6, 2016; Daniel H. Kolber, President/ CEO, Intellivest Securities, Inc., dated December 30, 2016; and Roger W. Mehle, Chairman and CEO, Archates Capital Advisors LLC, dated December 29, 2015. PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 22333 must approve the proposed rule change, disapprove the proposed rule change or institute proceedings to determine whether to approve or disapprove the proposed rule change to March 22, 2016. On March 23, 2016, the Commission published in the Federal Register an order to solicit comments on the proposed rule change and to institute proceedings pursuant to Section 19(b)(2)(B) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 3 to determine whether to approve or disapprove the proposed rule change.4 As described further below, on March 29, 2016 FINRA filed a partial amendment to its proposed rule change in response to comments on the Notice of Filing. II. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Amendment In response to comments on the Notice of Filing, FINRA filed a Partial Amendment No. 1 to amend proposed CAB Rule 016(c)(2) to clarify that the definition of ‘‘capital acquisition broker’’ does not include any broker or dealer that effects securities transactions that would require the broker or dealer to report the transaction under the FINRA Rules 6300 Series, 6400 Series, 6500 Series, 6600 Series, 6700 Series, 7300 Series or 7400 Series. With this Partial Amendment No. 1, FINRA filed: (1) Exhibit 4, which reflects changes to the text of the proposed rule change pursuant to this Partial Amendment No. 1, marked to show additions to the text as proposed in the original filing; and (2) Exhibit 5, which reflects the changes to the current rule text that are proposed in the proposed rule change, as amended by this Partial Amendment No. 1. III. Date of Effectiveness of the Proposed Rule Change as Modified by Partial Amendment No.1 and Timing for Commission Action Within 180 days after the date of publication of the initial Notice of Filing in the Federal Register or within such longer period up to an additional 60 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will issue an 3 15 U.S.C. 78s(b)(2)(B). Exchange Act Release No. 77391 (March 17, 2016), 81 FR 15588 (March 23, 2016) (Order Instituting Proceedings To Determine Whether to Approve or Disapprove Proposed Rule Change to Adopt FINRA Capital Acquisition Broker Rules on File No. SR–FINRA–2015–054). 4 Securities E:\FR\FM\15APN1.SGM 15APN1 22334 Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.5 Robert W. Errett, Deputy Secretary. order approving or disapproving such proposed rule change, as amended. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change, as amended by Partial Amendment No. 1, is consistent with the Exchange Act. Comments may be submitted by any of the following methods: [FR Doc. 2016–08646 Filed 4–14–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–77575; File No. SR–CBOE– 2016–030] asabaliauskas on DSK3SPTVN1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– FINRA–2015–054 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–FINRA–2015–054. 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 (http://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 FINRA. 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–FINRA–2015–054 and should be submitted on or before May 6, 2016. Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule April 11, 2016. 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 April 1, 2016, 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 The Exchange proposes to amend its Fees Schedule. The text of the proposed rule change is available on the Exchange’s Web site (http:// 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. 1 15 5 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:27 Apr 14, 2016 2 17 Jkt 238001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00127 Fmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fees Schedule, effective April 1, 2016. Specifically, the Exchange proposes to extend the current waiver of the VIX Index License Surcharge of $0.10 per contract for Clearing Trading Permit Holder Proprietary (‘‘Firm’’) (origin codes ‘‘F’’ or ‘‘L’’) VIX orders that have a premium of $0.10 or lower and have series with an expiration of seven (7) calendar days or less. The Exchange adopted the current waiver to reduce transaction costs on expiring, lowpriced VIX options, which the Exchange believed would encourage Firms to seek to close and/or roll over such positions close to expiration at low premium levels, including facilitating customers to do so, in order to free up capital and encourage additional trading. The Exchange initially proposed to waive the surcharge through March 31, 2016, at which time the Exchange stated that it would evaluate whether the wavier [sic] has in fact prompted Firms to close and roll over these positions close to expiration as intended. The Exchange believes the proposed change has in fact encouraged Firms to do so and as such, proposes to extend the waiver of the surcharge through December 2016, at which time the Exchange will reevaluate whether the wavier [sic] has continued to prompt Firms to close and roll over positions close to expiration at low premium levels. Accordingly, the Exchange proposes to delete the reference to the current waiver period of March 31, 2016 from the Fees Schedule and replace it with December 31, 2016. 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.3 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 4 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 facilitation transactions in 3 15 4 15 Sfmt 4703 E:\FR\FM\15APN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(5). 15APN1

Agencies

[Federal Register Volume 81, Number 73 (Friday, April 15, 2016)]
[Notices]
[Pages 22333-22334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08646]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77581; File No. SR-FINRA-2015-054]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing of Partial Amendment No. 1 to 
Proposed Rule Change Relating to Proposed Rule Change To Adopt FINRA 
Capital Acquisition Broker Rules

April 11, 2016.

I. Introduction

    On December 4, 2015, Financial Industry Regulatory Authority, Inc. 
(``FINRA'') filed with the Securities and Exchange Commission (the 
``Commission'' or ``SEC'') proposed rule change SR-FINRA-2015-054, 
pursuant to which FINRA proposed to adopt a rule set that would apply 
exclusively to firms that meet the definition of ``capital acquisition 
broker'' and that elect to be governed under this rule set 
(collectively, the ``CAB Rules'').
    The Commission published the proposed rule change for public 
comment in the Federal Register on December 23, 2015.\1\ The Commission 
received 17 comment letters in response to the proposed rule change.\2\ 
On January 28, 2016, FINRA extended the time period in which the 
Commission must approve the proposed rule change, disapprove the 
proposed rule change or institute proceedings to determine whether to 
approve or disapprove the proposed rule change to March 22, 2016.
---------------------------------------------------------------------------

    \1\ Securities Exchange Act Release No. 76675 (December 17, 
2015), 80 FR 79969 (December 23, 2015) (Notice of Filing of File No. 
SR-FINRA-2015-054) (``Notice of Filing'').
    \2\ Letters from Peter W. LaVigne, Esq., Chair, Securities 
Regulation Committee, Business Law Section, New York State Bar 
Association, dated January 22, 2016; Judith M. Shaw, President, 
North American Securities Administrators Association, Inc., dated 
January 15, 2016; Timothy Cahill, President, Compass Securities 
Corporation, dated January 13, 2016; Mark Fairbanks, President, 
Foreside Distributors, dated January 13, 2016; Dan Glusker, Perkins 
Fund Marketing, LLC, dated January 13, 2016; Steven Jafarzadeh, 
CAIA, Managing Director, CCO Partner, Stonehaven, dated January 13, 
2016; Richard A. Murphy, Manager, North Bridge Capital LLC, dated 
January 13, 2016; Ron Oldenkamp, President, Genesis Marketing Group, 
dated January 13, 2016; Michael S. Quinn, Member and CCO, Q Advisors 
LLC, dated January 13, 2016; Lisa Roth, President, Monahan & Roth, 
LLC, dated January 13, 2016; Howard Spindel, Senior Managing 
Director, and Cassondra E. Joseph, Managing Director, Integrated 
Management Solutions USA LLC, dated January 13, 2016; Sajan K. 
Thomas, President, and Stephen J. Myott, Chief Compliance Officer, 
Thomas Capital Group, Inc., dated January 13, 2016; Donna DiMaria, 
Chairman of the Board of Directors, and Lisa Roth, Board of 
Directors, Third Party Marketers Association, dated January 12, 
2016; Frank P. L. Minard, Managing Partner, XT Capital Partners, 
LLC, dated January 12, 2016; Arne Rovell, Coronado Investments, LLC, 
dated January 6, 2016; Daniel H. Kolber, President/CEO, Intellivest 
Securities, Inc., dated December 30, 2016; and Roger W. Mehle, 
Chairman and CEO, Archates Capital Advisors LLC, dated December 29, 
2015.
---------------------------------------------------------------------------

    On March 23, 2016, the Commission published in the Federal Register 
an order to solicit comments on the proposed rule change and to 
institute proceedings pursuant to Section 19(b)(2)(B) of the Securities 
Exchange Act of 1934 (``Exchange Act'') \3\ to determine whether to 
approve or disapprove the proposed rule change.\4\
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(b)(2)(B).
    \4\ Securities Exchange Act Release No. 77391 (March 17, 2016), 
81 FR 15588 (March 23, 2016) (Order Instituting Proceedings To 
Determine Whether to Approve or Disapprove Proposed Rule Change to 
Adopt FINRA Capital Acquisition Broker Rules on File No. SR-FINRA-
2015-054).
---------------------------------------------------------------------------

    As described further below, on March 29, 2016 FINRA filed a partial 
amendment to its proposed rule change in response to comments on the 
Notice of Filing.

II. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Amendment

    In response to comments on the Notice of Filing, FINRA filed a 
Partial Amendment No. 1 to amend proposed CAB Rule 016(c)(2) to clarify 
that the definition of ``capital acquisition broker'' does not include 
any broker or dealer that effects securities transactions that would 
require the broker or dealer to report the transaction under the FINRA 
Rules 6300 Series, 6400 Series, 6500 Series, 6600 Series, 6700 Series, 
7300 Series or 7400 Series. With this Partial Amendment No. 1, FINRA 
filed: (1) Exhibit 4, which reflects changes to the text of the 
proposed rule change pursuant to this Partial Amendment No. 1, marked 
to show additions to the text as proposed in the original filing; and 
(2) Exhibit 5, which reflects the changes to the current rule text that 
are proposed in the proposed rule change, as amended by this Partial 
Amendment No. 1.

III. Date of Effectiveness of the Proposed Rule Change as Modified by 
Partial Amendment No.1 and Timing for Commission Action

    Within 180 days after the date of publication of the initial Notice 
of Filing in the Federal Register or within such longer period up to an 
additional 60 days (i) as the Commission may designate if it finds such 
longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will issue an

[[Page 22334]]

order approving or disapproving such proposed rule change, as amended.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended by Partial Amendment No. 1, is consistent with the 
Exchange Act. Comments may be submitted by any of the following 
methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-FINRA-2015-054 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-FINRA-2015-054. 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 (http://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 FINRA.
    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-FINRA-2015-054 
and should be submitted on or before May 6, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-08646 Filed 4-14-16; 8:45 am]
 BILLING CODE 8011-01-P