Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Its Rules Relating to Categories of Registration and Respective Qualification Examinations Required for Trading Permit Holders (“TPHs”) and Associated Persons That Engage in Trading Activities on the Exchange, 47651-47654 [2018-20431]
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Federal Register / Vol. 83, No. 183 / Thursday, September 20, 2018 / Notices
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
II. Docketed Proceeding(s)
1. Docket No(s).: CP2018–216; Filing
Title: Notice of the United States Postal
Service of Filing Modification Two to a
Global Plus 4 Negotiated Service
Agreement; Filing Acceptance Date:
September 14, 2018; Filing Authority: 39
CFR 3015.5; Public Representative:
Kenneth R. Moeller; Comments Due:
September 24, 2018.
2. Docket No(s).: MC2018–221 and
CP2018–307; Filing Title: USPS Request
to Add Parcel Select Contract 33 to
Competitive Product List and Notice of
Filing Materials Under Seal; Filing
Acceptance Date: September 14, 2018;
Filing Authority: 39 U.S.C. 3642, 39 CFR
3020.30 et seq., and 39 CFR 3015.5;
Public Representative: Kenneth R.
Moeller; Comments Due: September 24,
2018.
This Notice will be published in the
Federal Register.
Stacy L. Ruble,
Secretary.
[FR Doc. 2018–20496 Filed 9–19–18; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL SERVICE
Sunshine Act Meetings; Temporary
Emergency Committee of the Board of
Governors
Tuesday, September 11,
2018, at 8:30 a.m. and Wednesday,
September 12, 2018, at 8:30 a.m.
PLACE: Washington, DC.
STATUS: Closed.
MATTERS TO BE CONSIDERED:
amozie on DSK3GDR082PROD with NOTICES1
TIME AND DATE:
Tuesday, September 11, 2018, at 8:30
a.m.
1. Strategic Items.
2. Executive Session.
18:01 Sep 19, 2018
Jkt 244001
CONTACT PERSON FOR MORE INFORMATION:
Michael J. Elston, Acting Secretary of
the Board, U.S. Postal Service, 475
L’Enfant Plaza SW, Washington, DC
20260–1000. Telephone: (202) 268–
4800.
Michael J. Elston,
Acting Secretary.
[FR Doc. 2018–20602 Filed 9–18–18; 4:15 pm]
BILLING CODE 7710–12–P
POSTAL SERVICE
Product Change—Parcel Select
Negotiated Service Agreement
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of notice required under 39
U.S.C. 3642(d)(1): September 20, 2018.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on September 14,
2018, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Parcel
Select Contract 33 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2018–221,
CP2018–307.
SUMMARY:
Elizabeth Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2018–20440 Filed 9–19–18; 8:45 am]
BILLING CODE 7710–12–P
Notice of Public Meeting
The Presidio Trust.
Notice of public meeting.
AGENCY:
In accordance with the
Presidio Trust Act, and in accordance
with the Presidio Trust’s bylaws, notice
is hereby given that a public meeting of
the Presidio Trust Board of Directors
will be held commencing 5:00 p.m. on
October 18, 2018, at the Officers’ Club,
SUMMARY:
PO 00000
Frm 00052
Fmt 4703
50 Moraga Avenue, Presidio of San
Francisco, California.
The purposes of this meeting are to:
Provide the Board Chair’s report;
provide the Chief Executive Officer’s
report; hold a National Environmental
Policy Act scoping workshop for the
Fort Winfield Scott project; and receive
public comment on these and other
matters pertaining to Trust business.
Individuals requiring special
accommodation at this meeting, such as
needing a sign language interpreter,
should contact Mollie Matull at
415.561.5300 prior to October 9, 2018.
DATES: The meeting will begin at 5:00
p.m. on October 18, 2018.
ADDRESSES: The meeting will be held at
the Officers’ Club, 50 Moraga Avenue,
Presidio of San Francisco.
FOR FURTHER INFORMATION CONTACT:
Nancy J. Koch, General Counsel, the
Presidio Trust, 103 Montgomery Street,
P.O. Box 29052, San Francisco,
California 94129–0052, Telephone:
415.561.5300.
Dated: September 13, 2018.
Nancy J. Koch,
General Counsel.
[FR Doc. 2018–20492 Filed 9–19–18; 8:45 am]
BILLING CODE 4310–4R–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84141; File No. SR–C2–
2018–020]
Self-Regulatory Organizations; Cboe
C2 Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Amend Its
Rules Relating to Categories of
Registration and Respective
Qualification Examinations Required
for Trading Permit Holders (‘‘TPHs’’)
and Associated Persons That Engage
in Trading Activities on the Exchange
September 14, 2018.
PRESIDIO TRUST
ACTION:
Wednesday, September 12, at 8:30 a.m.
1. Strategic Items.
2. Financial Matters.
3. Executive Session.
VerDate Sep<11>2014
General Counsel Certification: The
General Counsel of the United States
Postal Service has certified that these
meetings may be closed under the
Government in the Sunshine Act.
47651
Sfmt 4703
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 7, 2018, Cboe C2 Exchange,
Inc. (the ‘‘Exchange’’ or ‘‘C2’’) 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
Commission is publishing this notice to
1 15
2 17
E:\FR\FM\20SEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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47652
Federal Register / Vol. 83, No. 183 / Thursday, September 20, 2018 / Notices
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
Cboe C2 Exchange, Inc. (the
‘‘Exchange’’ or ‘‘C2’’) proposes to amend
its rules relating to categories of
registration and respective qualification
examinations required for Trading
Permit Holders (‘‘TPHs’’) and associated
persons that engage in trading activities
on the Exchange.
The text of the proposed rule change
is also available on the Exchange’s
website (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.
amozie on DSK3GDR082PROD with NOTICES1
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The SEC recently approved a
proposed rule change to restructure the
FINRA representative-level qualification
examination program.3 The rule change,
which will become effective on October
1, 2018, restructures the examination
program into a more efficient format
whereby all new representative-level
applicants will be required to take a
general knowledge examination (the
Securities Industry Essentials
Examination (‘‘SIE’’)) and a tailored,
specialized knowledge examination (a
revised representative-level
qualification examination) for their
particular registered role. Individuals
are not required to be associated with an
Exchange or any other self-regulatory
organization (‘‘SRO’’) member to be
eligible to take the SIE. However,
3 See Securities Exchange Act Release No. 81098
(July 7, 2017), 82 FR 32419 (July 13, 2017) (Order
Approving File No. SR–FINRA–2017–007).
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18:01 Sep 19, 2018
Jkt 244001
passing the SIE alone will not qualify an
individual for registration with the
Exchange. To be eligible for registration,
an individual must also be associated
with a firm, pass an appropriate
qualification examination for a
representative or principal and satisfy
the other requirements relating to the
registration process.
The SIE would assess basic product
knowledge; the structure and function
of the securities industry markets,
regulatory agencies and their functions;
and regulated and prohibited practices.
In particular, the SIE will cover four
major areas. The first, ‘‘Knowledge of
Capital Markets,’’ focuses on topics such
as types of markets and offerings,
broker-dealers and depositories, and
economic cycles. The second,
‘‘Understanding Products and Their
Risks,’’ covers securities products at a
high level as well as associated
investment risks. The third,
‘‘Understanding Trading, Customer
Accounts and Prohibited Activities,’’
focuses on accounts, orders, settlement
and prohibited activities. The final area,
‘‘Overview of the Regulatory
Framework,’’ encompasses topics such
as SROs, registration requirements and
specified conduct rules. It’s anticipated
that the SIE would include 75 scored
questions plus an additional 10
unscored pretest questions. The passing
score would be determined through
methodologies compliant with testing
industry standards used to develop
examinations and set passing standards.
The restructured program eliminates
duplicative testing of general securities
knowledge on the current
representative-level qualification
examinations by moving such content
into the SIE. The SIE will test
fundamental securities related
knowledge, including knowledge of
basic products, the structure and
function of the securities industry, the
regulatory agencies and their functions
and regulated and prohibited practices,
whereas the revised representative-level
qualification examinations will test
knowledge relevant to day-to-day
activities, responsibilities and job
functions of representatives. The SIE
was developed in consultation with a
committee of industry representatives
and representatives of several other
SROs. Each of the current
representative-level examinations
covers general securities knowledge,
with the exception of the Research
Analyst (Series 86 and 87)
examinations.
The Exchange proposes to require that
effective October 1, 2018, new
applicants seeking to register in a
representative capacity with the
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Exchange must pass the SIE before their
registrations can become effective. The
Exchange proposes to make the
requirement operative on October 1,
2018 to coincide with the effective date
of FINRA’s requirement.4
The Exchange notes that individuals
who are registered as of October 1, 2018
are eligible to maintain their
registrations without being subject to
any additional requirements.
Individuals who had been registered
within the past two years prior to
October 1, 2018, would also be eligible
to maintain those registrations without
being subject to any additional
requirements, provided they register
within two years from the date of their
last registration. However, with respect
to an individual who is not registered
on the effective date of the proposed
rule change but was registered within
the past two years prior to the effective
date of the proposed rule change, the
individual’s SIE status in the CRD
system would be administratively
terminated if such individual does not
register with the Exchange within four
years from the date of the individual’s
last registration. The Exchange also
notes that consistent with Interpretation
and Policy .04 of Rule 3.4, the Exchange
will consider waivers of the SIE alone
or the SIE and the representative or
principal-level examination(s) for TPHs
who are seeking registration in a
representative- or principal-level
registration category.5
Lastly, the Exchange proposes to
adopt Interpretation and Policy .08 of
Rule 3.4 to provide individuals who are
associated persons of firms and who
hold foreign registrations an alternative,
more flexible, process to obtain an
Exchange representative-level
registration.6 The Exchange believes
4 The Exchange notes that the Exchange’s affiliate,
Cboe Exchange, Inc. (‘‘Cboe Options’’) is also
submitting a similar rule change to require the SIE
for representative-level registrations. In that rule
filing, Cboe Options proposes to make clear in Rule
9.3 that persons required to register as a General
Securities Representative must also pass the SIE.
The Exchange notes that Chapter IX of Cboe
Options Rules is incorporated by reference and as
such, the proposed requirement will similarly apply
to the Exchange.
5 Pursuant to a Regulatory Services Agreement
between FINRA and the Exchange, FINRA provides
the Exchange certain exam waiver services in
responding to exam waiver requests from Exchange
TPHs.
6 As previously noted, Cboe Options is submitting
a similar rule change which includes the proposed
language in Rule 3.4.08. Cboe Options also proposes
to include such language in a new Interpretation
and Policy .02 of Cboe Options Rule 9.3 to make
clear that such requirement also applies to
representative-level registrations required for
persons who do business with the public. Chapter
IX of Cboe Options Rules is incorporated by
reference and as such, the proposed requirement
will similarly apply to the Exchange.
E:\FR\FM\20SEN1.SGM
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Federal Register / Vol. 83, No. 183 / Thursday, September 20, 2018 / Notices
amozie on DSK3GDR082PROD with NOTICES1
that there is sufficient overlap between
the SIE and these foreign qualification
requirements to permit them to act as
exemptions to the SIE. As such the
Exchange proposes to provide that
individuals who are in good standing as
representatives with the Financial
Conduct Authority in the United
Kingdom or with a Canadian stock
exchange or securities regulator would
be exempt from the requirement to pass
the SIE, and thus would be required
only to pass a specialized knowledge
examination to register with the
Exchange as a representative. The
proposed approach would provide
individuals with a United Kingdom or
Canadian qualification more flexibility
to obtain an Exchange representativelevel registration. The Exchange notes
that FINRA has adopted a similar rule.7
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 the Section
6(b)(5) 9 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) 10 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that the
proposed rule change will improve the
efficiency of the Exchange’s
examination requirements, without
compromising the qualification
standards, by eliminating duplicative
testing of general securities knowledge
on examinations. FINRA has indicated
that the SIE was developed in an effort
to adopt an examination that would
assess basic product knowledge; the
7 See Securities Exchange Act Release No. 81098
(July 7, 2017), 82 FR 32419 (July 13, 2017) (Order
Approving File No. SR–FINRA–2017–007).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 Id.
VerDate Sep<11>2014
18:01 Sep 19, 2018
Jkt 244001
structure and function of the securities
industry markets, regulatory agencies
and their functions; and regulated and
prohibited practices. The Exchange also
notes that the introduction of the SIE
and expansion of the pool of individuals
who are eligible to take the SIE, has the
potential of enhancing the pool of
prospective securities industry
professionals by introducing them to
securities laws, rules and regulations
and appropriate conduct before they
join the industry in a registered
capacity. Lastly, the Exchange notes
adopting the SIE requirement is
consistent with the requirement recently
adopted by FINRA.11
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 believes that the proposed
rule change, which harmonizes its rules
with recent rule changes adopted by
FINRA and which is being filed in
conjunction with similar filings by the
other national securities exchanges, will
reduce the regulatory burden placed on
market participants engaged in trading
activities across different markets. The
Exchange believes that the
harmonization of these registration
requirements across the various markets
will reduce burdens on competition by
removing impediments to participation
in the national market system and
promoting competition among
participants across the multiple national
securities exchanges.
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 written 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, it has
become effective pursuant to Section
11 See Securities Exchange Act Release No. 81098
(July 7, 2017), 82 FR 32419 (July 13, 2017) (Order
Approving File No. SR–FINRA–2017–007).
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Sfmt 4703
47653
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days from the
date of filing. However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative on
October 1, 2018 to coincide with the
effective date of FINRA’s proposed rule
change on which the proposal is
based.14 The waiver of the operative
delay would make the Exchange’s
qualification requirements consistent
with those of FINRA. Therefore, the
Commission believes that the waiver of
the 30-day operative delay is consistent
with the protection of investors and the
public interest and hereby waives the
30-day operative delay and designates
the proposal operative on October 1,
2018.15
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–
C2–2018–020 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–C2–2018–020. This file
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii).
14 See supra note 3.
15 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
13 17
E:\FR\FM\20SEN1.SGM
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47654
Federal Register / Vol. 83, No. 183 / Thursday, September 20, 2018 / Notices
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 website (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 website 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–C2–2018–020 and should
be submitted on or before October 11,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–20431 Filed 9–19–18; 8:45 am]
BILLING CODE 8011–01–P
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Eduardo A. Aleman,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84123; File No. SR–
NYSEArca–2018–43]
[FR Doc. 2018–20437 Filed 9–19–18; 8:45 am]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on a Proposed Rule Change Regarding
Investments of the First Trust TCW
Unconstrained Plus Bond ETF
amozie on DSK3GDR082PROD with NOTICES1
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
modify investments of the First Trust
TCW Unconstrained Plus Bond ETF, the
shares of which are currently listed and
traded on the Exchange pursuant to
NYSE Arca Rule 8.600–E. The proposed
rule change was published for comment
in the Federal Register on August 1,
2018.3 The Commission has received no
comment letters on the proposed rule
change.
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding, or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is September 15,
2018. The Commission is extending this
45-day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,5
designates October 30, 2018 as the date
by which the Commission shall either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–NYSEArca–2018–43).
BILLING CODE 8011–01–P
September 14, 2018.
On July 11, 2018, NYSE Arca, Inc.
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
16 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
18:01 Sep 19, 2018
Jkt 244001
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 83720
(July 26, 2018), 83 FR 37560.
4 15 U.S.C. 78s(b)(2).
5 Id.
6 17 CFR 200.30–3(a)(31).
2 17
PO 00000
Frm 00055
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84140; File No. SR–
CboeEDGA–2018–015]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Rules Relating to Categories of
Registration and Respective
Qualification Examinations Required
for Members That Engage in Trading
Activities on the Exchange
September 14, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 7, 2018, Cboe EDGA
Exchange, Inc. (the ‘‘Exchange’’ or
‘‘EDGA’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I and II 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 is proposing to amend
its rules relating to categories of
registration and respective qualification
examinations required for Members that
engage in trading activities on the
Exchange.
The text of the proposed rule change
is available at the Exchange’s website at
www.markets.cboe.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
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
1 15
2 17
E:\FR\FM\20SEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
20SEN1
]]>Agencies
[Federal Register Volume 83, Number 183 (Thursday, September 20, 2018)]
[Notices]
[Pages 47651-47654]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20431]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84141; File No. SR-C2-2018-020]
Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Amend Its Rules Relating to Categories of Registration and
Respective Qualification Examinations Required for Trading Permit
Holders (``TPHs'') and Associated Persons That Engage in Trading
Activities on the Exchange
September 14, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 7, 2018, Cboe C2 Exchange, Inc. (the ``Exchange'' or
``C2'') 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 Commission
is publishing this notice to
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solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe C2 Exchange, Inc. (the ``Exchange'' or ``C2'') proposes to
amend its rules relating to categories of registration and respective
qualification examinations required for Trading Permit Holders
(``TPHs'') and associated persons that engage in trading activities on
the Exchange.
The text of the proposed rule change is also available on the
Exchange's website (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 SEC recently approved a proposed rule change to restructure the
FINRA representative-level qualification examination program.\3\ The
rule change, which will become effective on October 1, 2018,
restructures the examination program into a more efficient format
whereby all new representative-level applicants will be required to
take a general knowledge examination (the Securities Industry
Essentials Examination (``SIE'')) and a tailored, specialized knowledge
examination (a revised representative-level qualification examination)
for their particular registered role. Individuals are not required to
be associated with an Exchange or any other self-regulatory
organization (``SRO'') member to be eligible to take the SIE. However,
passing the SIE alone will not qualify an individual for registration
with the Exchange. To be eligible for registration, an individual must
also be associated with a firm, pass an appropriate qualification
examination for a representative or principal and satisfy the other
requirements relating to the registration process.
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\3\ See Securities Exchange Act Release No. 81098 (July 7,
2017), 82 FR 32419 (July 13, 2017) (Order Approving File No. SR-
FINRA-2017-007).
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The SIE would assess basic product knowledge; the structure and
function of the securities industry markets, regulatory agencies and
their functions; and regulated and prohibited practices. In particular,
the SIE will cover four major areas. The first, ``Knowledge of Capital
Markets,'' focuses on topics such as types of markets and offerings,
broker-dealers and depositories, and economic cycles. The second,
``Understanding Products and Their Risks,'' covers securities products
at a high level as well as associated investment risks. The third,
``Understanding Trading, Customer Accounts and Prohibited Activities,''
focuses on accounts, orders, settlement and prohibited activities. The
final area, ``Overview of the Regulatory Framework,'' encompasses
topics such as SROs, registration requirements and specified conduct
rules. It's anticipated that the SIE would include 75 scored questions
plus an additional 10 unscored pretest questions. The passing score
would be determined through methodologies compliant with testing
industry standards used to develop examinations and set passing
standards.
The restructured program eliminates duplicative testing of general
securities knowledge on the current representative-level qualification
examinations by moving such content into the SIE. The SIE will test
fundamental securities related knowledge, including knowledge of basic
products, the structure and function of the securities industry, the
regulatory agencies and their functions and regulated and prohibited
practices, whereas the revised representative-level qualification
examinations will test knowledge relevant to day-to-day activities,
responsibilities and job functions of representatives. The SIE was
developed in consultation with a committee of industry representatives
and representatives of several other SROs. Each of the current
representative-level examinations covers general securities knowledge,
with the exception of the Research Analyst (Series 86 and 87)
examinations.
The Exchange proposes to require that effective October 1, 2018,
new applicants seeking to register in a representative capacity with
the Exchange must pass the SIE before their registrations can become
effective. The Exchange proposes to make the requirement operative on
October 1, 2018 to coincide with the effective date of FINRA's
requirement.\4\
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\4\ The Exchange notes that the Exchange's affiliate, Cboe
Exchange, Inc. (``Cboe Options'') is also submitting a similar rule
change to require the SIE for representative-level registrations. In
that rule filing, Cboe Options proposes to make clear in Rule 9.3
that persons required to register as a General Securities
Representative must also pass the SIE. The Exchange notes that
Chapter IX of Cboe Options Rules is incorporated by reference and as
such, the proposed requirement will similarly apply to the Exchange.
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The Exchange notes that individuals who are registered as of
October 1, 2018 are eligible to maintain their registrations without
being subject to any additional requirements. Individuals who had been
registered within the past two years prior to October 1, 2018, would
also be eligible to maintain those registrations without being subject
to any additional requirements, provided they register within two years
from the date of their last registration. However, with respect to an
individual who is not registered on the effective date of the proposed
rule change but was registered within the past two years prior to the
effective date of the proposed rule change, the individual's SIE status
in the CRD system would be administratively terminated if such
individual does not register with the Exchange within four years from
the date of the individual's last registration. The Exchange also notes
that consistent with Interpretation and Policy .04 of Rule 3.4, the
Exchange will consider waivers of the SIE alone or the SIE and the
representative or principal-level examination(s) for TPHs who are
seeking registration in a representative- or principal-level
registration category.\5\
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\5\ Pursuant to a Regulatory Services Agreement between FINRA
and the Exchange, FINRA provides the Exchange certain exam waiver
services in responding to exam waiver requests from Exchange TPHs.
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Lastly, the Exchange proposes to adopt Interpretation and Policy
.08 of Rule 3.4 to provide individuals who are associated persons of
firms and who hold foreign registrations an alternative, more flexible,
process to obtain an Exchange representative-level registration.\6\ The
Exchange believes
[[Page 47653]]
that there is sufficient overlap between the SIE and these foreign
qualification requirements to permit them to act as exemptions to the
SIE. As such the Exchange proposes to provide that individuals who are
in good standing as representatives with the Financial Conduct
Authority in the United Kingdom or with a Canadian stock exchange or
securities regulator would be exempt from the requirement to pass the
SIE, and thus would be required only to pass a specialized knowledge
examination to register with the Exchange as a representative. The
proposed approach would provide individuals with a United Kingdom or
Canadian qualification more flexibility to obtain an Exchange
representative-level registration. The Exchange notes that FINRA has
adopted a similar rule.\7\
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\6\ As previously noted, Cboe Options is submitting a similar
rule change which includes the proposed language in Rule 3.4.08.
Cboe Options also proposes to include such language in a new
Interpretation and Policy .02 of Cboe Options Rule 9.3 to make clear
that such requirement also applies to representative-level
registrations required for persons who do business with the public.
Chapter IX of Cboe Options Rules is incorporated by reference and as
such, the proposed requirement will similarly apply to the Exchange.
\7\ See Securities Exchange Act Release No. 81098 (July 7,
2017), 82 FR 32419 (July 13, 2017) (Order Approving File No. SR-
FINRA-2017-007).
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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 the
Section 6(b)(5) \9\ 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) \10\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ Id.
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The Exchange believes that the proposed rule change will improve
the efficiency of the Exchange's examination requirements, without
compromising the qualification standards, by eliminating duplicative
testing of general securities knowledge on examinations. FINRA has
indicated that the SIE was developed in an effort to adopt an
examination that would assess basic product knowledge; the structure
and function of the securities industry markets, regulatory agencies
and their functions; and regulated and prohibited practices. The
Exchange also notes that the introduction of the SIE and expansion of
the pool of individuals who are eligible to take the SIE, has the
potential of enhancing the pool of prospective securities industry
professionals by introducing them to securities laws, rules and
regulations and appropriate conduct before they join the industry in a
registered capacity. Lastly, the Exchange notes adopting the SIE
requirement is consistent with the requirement recently adopted by
FINRA.\11\
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\11\ See Securities Exchange Act Release No. 81098 (July 7,
2017), 82 FR 32419 (July 13, 2017) (Order Approving File No. SR-
FINRA-2017-007).
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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 believes that
the proposed rule change, which harmonizes its rules with recent rule
changes adopted by FINRA and which is being filed in conjunction with
similar filings by the other national securities exchanges, will reduce
the regulatory burden placed on market participants engaged in trading
activities across different markets. The Exchange believes that the
harmonization of these registration requirements across the various
markets will reduce burdens on competition by removing impediments to
participation in the national market system and promoting competition
among participants across the multiple national securities exchanges.
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 written 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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.
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\12\ 15 U.S.C. 78s(b)(3)(A).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days from the date of filing. However, Rule
19b-4(f)(6)(iii) \13\ permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange has asked the Commission to waive the
30-day operative delay so that the proposal may become operative on
October 1, 2018 to coincide with the effective date of FINRA's proposed
rule change on which the proposal is based.\14\ The waiver of the
operative delay would make the Exchange's qualification requirements
consistent with those of FINRA. Therefore, the Commission believes that
the waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest and hereby waives the
30-day operative delay and designates the proposal operative on October
1, 2018.\15\
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\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ See supra note 3.
\15\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 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 [email protected]. Please include
File Number SR-C2-2018-020 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-C2-2018-020. This file
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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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-C2-2018-020 and should be submitted on
or before October 11, 2018.
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\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-20431 Filed 9-19-18; 8:45 am]
BILLING CODE 8011-01-P
