Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules Relating to the Continuing Education for Registered Persons as Provided Under Exchange Rule 1903, 57451-57454 [2024-15403]
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Federal Register / Vol. 89, No. 135 / Monday, July 15, 2024 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.34
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–15399 Filed 7–12–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–666, OMB Control No.
3235–0725]
ddrumheller on DSK120RN23PROD with NOTICES1
Proposed Collection; Comment
Request; Extension: Contract Standard
for Contractor Workforce Inclusion
Upon Written Request Copies Available
From: U.S. Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
Section 342 of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act of 2010 (the Dodd-Frank Act)
provided that certain agencies,
including the Commission, establish an
Office of Minority and Women
Inclusion (OMWI).1 Section 342(c)(2) of
the Dodd-Frank Act requires the OMWI
Director to include in the Commission’s
procedures for evaluating contract
proposals and hiring service providers a
written statement that the contractor
shall ensure, to the maximum extent
possible, the fair inclusion of women
and minorities in the workforce of the
contractor and, as applicable,
subcontractors. To implement the
acquisition-specific requirements of
Section 342(c)(2) of the Dodd-Frank Act,
the Commission adopted a Contract
Standard for Contractor Workforce
Inclusion (Contract Standard).
The Contract Standard, which is
included in the Commission’s
solicitations and resulting contracts for
services with a dollar value of $100,000
or more, contains a ‘‘collection of
information’’ within the meaning of the
Paperwork Reduction Act. The Contract
Standard requires that a Commission
contractor with 50 or more employees
provide documentation, upon request
from the OMWI Director, to demonstrate
that it has made good faith efforts to
ensure the fair inclusion of minorities
and women in its workforce and, as
applicable, to demonstrate its covered
subcontractors have made such good
faith efforts. The documentation
requested may include, but is not
limited to: (1) the total number of
employees in the contractor’s workforce,
and the number of employees by race,
ethnicity, gender, and job title or EEO–
1 job category (e.g., EEO–1 Report(s));
(2) a list of covered subcontract awards
under the contract that includes the
dollar amount of each subcontract, date
of award, and the subcontractor’s race,
ethnicity, and/or gender ownership
status; (3) the contractor’s plan to ensure
the fair inclusion of minorities and
women in its workforce, including
outreach efforts; and (4) for each
covered subcontractor, the information
requested in items 1 and 3 above. The
OMWI Director will consider the
information submitted in evaluating
whether the contractor or subcontractor
has complied with its obligations under
the Contract Standard.
The information collection is
mandatory.
Title of Collection: Contract Standard
for Contractor Workforce Inclusion.
Type of Review: Extension of an
Existing Approved Information
Collection.
Frequency of Response: Annually.
Estimated Number of Respondents:
50.
Estimated Burden Hours per
Respondent: 1 hour.
Estimated Total Annual Burden
Hours: 50. The change in the estimated
annual burden hours from 925 to 50 is
due to a change in eligibility criteria for
requesting documentation to only those
contractors with 50 or more employees.
This change in eligibility criteria
eliminated any new recordkeeping
burden since contractors with 50 or
more employees are generally subject to
the recordkeeping and reporting
requirements under the regulations
implementing Title VII of the Civil
Rights Act 2 and Executive Order 11246.
Request for Comments: The comments
submitted in response to this notice will
be summarized and included in the
request for OMB approval. All
comments will become a matter of
public record. Written comments are
invited on: (a) whether this collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
34 17
1 12
CFR 200.30–3(a)(12).
U.S.C. 5452.
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18:25 Jul 12, 2024
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing 60 days after the date of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to Austin Gerig, Director/Chief Data
Officer, Securities and Exchange
Commission, c/o Oluwaseun Ajayi, 100
F Street NE, Washington, DC 20549 or
send an email to: PRA_Mailbox@
sec.gov.
Dated: July 9, 2024.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–15417 Filed 7–12–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100472; File No. SR–MIAX–
2024–27]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Rules Relating
to the Continuing Education for
Registered Persons as Provided Under
Exchange Rule 1903
July 9, 2024.
Pursuant to the provisions of 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 June 28, 2024, Miami International
Securities Exchange LLC (‘‘MIAX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a 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.
1 15
2 42
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PO 00000
U.S.C. 2000e, et seq.
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2 17
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57451
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 89, No. 135 / Monday, July 15, 2024 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend Interpretation and Policy .01 to
Exchange Rule 1903, Continuing
Education, to reopen the period by
which eligible Members 3 who
participate in the Maintaining
Qualifications Program (‘‘MQP’’) will be
able to complete their prescribed 2022
and 2023 continuing education content.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxglobal.com/markets/
us-options/miax-options/rule-filings, at
MIAX’s principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
ddrumheller on DSK120RN23PROD with NOTICES1
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Interpretation and Policy .01 to
Exchange Rule 1903, Continuing
Education, to provide eligible Members
another opportunity to elect to reopen
the period by which certain participants
in the MQP will be able to complete
their prescribed 2022 and 2023
continuing education content.
In 2021, the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
implemented rule changes, which
amended its Continuing Education
(‘‘CE’’) Program requirements to, among
other things, provide eligible
individuals who terminate any of their
representative or principal registration
categories the option of maintaining
their qualification for any terminated
registration categories by completing
annual CE through a new program, the
3 The term ‘‘Member’’ means an individual or
organization that is registered with the Exchange
pursuant to Chapter II of the Exchange Rules for
purposes of trading on the Exchange as an
‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’
See Exchange Rule 100.
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MQP.4 Under FINRA Rule 1240.01, the
MQP designated a look-back provision
that, subject to specified conditions,
extended the option to participate in the
MQP to individuals who: (1) were
registered as a representative or
principal within two years immediately
prior to March 15, 2022 (the
implementation date of the MQP); and
(2) individuals who were participating
in the Financial Services Affiliate
Waiver Program (‘‘FSAWP’’) 5 under
FINRA Rule 1210.09 (Waiver of
Examinations for Individuals Working
for a Financial Services Industry
Affiliate of a Member) immediately
prior to March 15, 2022 (collectively,
‘‘Look-Back Individuals’’).
In 2023, FINRA amended FINRA Rule
1240.01, to provide Look-Back
Individuals a second opportunity to
elect to participate in the MQP (the
‘‘FINRA Second Enrollment Period’’).6
The proposed rule change required that
Look-Back Individuals who elect to
participate in the MQP during the
FINRA Second Enrollment Period
complete any prescribed 2022 and 2023
MQP content by March 31, 2024. LookBack Individuals who are enrolled in
the MQP, similar to other MQP
participants, are able to complete any
prescribed CE and renew their annual
MQP participation through their FINRA
Financial Professional Gateway
(‘‘FinPro’’) accounts.
In response to FINRA’s rule changes
and to facilitate compliance with the
Exchange’s CE Program requirements by
members of multiple exchanges, the
Exchange implemented rule changes to
align with FINRA’s CE Program.7 Such
rules, among other things, provide
4 See Securities Exchange Act Release No. 93097
(September 21, 2021), 86 FR 53358 (September 27,
2021) (Order Approving File No. SR–FINRA–2021–
015). Other exchanges, including the Exchange,
subsequently filed copycat rule filings to align their
continuing education rules with those of FINRA.
See Securities Exchange Act Release No. 95140
(June 22, 2022), 87 FR 38438 (June 28, 2022) (SR–
MIAX–2022–23) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change To Amend
Exchange Rule 1900, Registration Requirements,
Exchange Rule 1903, Continuing Education
Requirements, and Exchange Rule 1904, Electronic
Filing Requirements for Uniform Forms).
5 The FSAWP is a waiver program for eligible
individuals who have left a member firm to work
for a foreign or domestic financial services affiliate
of a member firm. The Exchange stopped accepting
new participants for the FSAWP beginning on July
1, 2022; however, individuals who were already
participating in the FSAWP prior to that date had
the option of continuing in the FSAWP.
6 See Securities Exchange Act Release No. 97184
(Mar. 22, 2023), 88 FR 18359 (Mar. 28, 2023) (SR–
FINRA–2023–005) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change to Amend
FINRA Rule 1240.01 To Provide Eligible
Individuals Another Opportunity to Elect to
Participate in the Maintaining Qualifications
Program)
7 See Exchange Rules 1900, 1903, and 1904.
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Frm 00069
Fmt 4703
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eligible individuals who terminate any
of their representative or principal
registrations the option of maintaining
their qualification for any of the
terminated registrations by completing
CE through the MQP. Further, Exchange
Rule 1903, Interpretation and Policy .01,
includes a look-back provision that,
subject to specified conditions, extends
the option for maintaining qualifications
following a registration category
termination to (i) individuals who have
been registered as a representative or
principal within two years immediately
preceding July 1, 2022, and (ii)
individuals who have been participants
of the FSAWP immediately preceding
July 1, 2022 implementation (i.e., LookBack Individuals).
Exchange Rule 1903 also provided
Look-Back Individuals with a second
enrollment period, between September
18, 2023, and December 31, 2023 (the
‘‘Exchange Second Enrollment Period’’).
Exchange Rule 1903, Interpretation and
Policy .01, requires that Look-Back
Individuals who elect to participate in
the MQP during the Exchange Second
Enrollment Period complete any
prescribed 2022 and 2023 MQP content
by March 31, 2024.8
FINRA recently submitted a proposal
related to its CE Program (the ‘‘FINRA
Rule Change’’).9 The proposal set forth
changes to FINRA Rule 1240.01, to
provide Look-Back Individuals enrolled
in the MQP in both 2022 and 2023 who
did not complete their prescribed 2022
and 2023 CE content as of March 31,
2024, the opportunity to complete such
content between May 22, 2024, and July
1, 2024, to be eligible to continue their
participation in the MQP.10 In addition,
the proposed rule change provides that
any such individuals who will have
completed their prescribed 2022 and
2023 CE content between March 31,
8 The Exchange determined to treat the
individuals who enrolled during the first period
(preceding July 1, 2022) the same as those who
enrolled during the second period (between
September 18, 2023, and December 31, 2023) for
purposes of the March 31, 2024, deadline for
completion of prescribed 2022 and 2023 CE
content. This is because those who had enrolled in
the MQP during the first period satisfied all of the
eligibility criteria for enrollment during the second
period and would have been able to complete their
prescribed CE content by March 31, 2024, had they
chosen to enroll during the second period instead
of enrolling during the first period.
9 See Securities Exchange Act Release No. 100067
(May 6, 2024), 89 FR 40520 (May 10, 2024) (SR–
FINRA–2024–006) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change To Amend
FINRA Rule 1240.01 To Reopen the Period by
Which Certain Participants in the Maintaining
Qualifications Program May Complete Their
Prescribed Continuing Education Content).
10 This would include any Look-Back Individuals
who were still in the process of completing their
prescribed CE content as of March 31, 2024.
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Federal Register / Vol. 89, No. 135 / Monday, July 15, 2024 / Notices
ddrumheller on DSK120RN23PROD with NOTICES1
2024, and May 22, 2024, will be deemed
to have completed such content by July
1, 2024, for purposes of the rule.
In the FINRA Rule Change, FINRA
noted that it sent multiple reminders,
including a March 16, 2024 email, to
Look-Back Individuals who had
enrolled in the MQP but had not
completed their prescribed CE to
remind them of the March 31, 2024
deadline. In the FINRA Rule Change,
FINRA further noted that in the week
leading up to the deadline, FINRA
noticed that several thousand of those
individuals were renewing their
participation in the MQP for 2024
instead of completing their prescribed
CE.11 Per the FINRA Rule Change,
FINRA believes that some of those
individuals may have been confused by
the layout of their FinPro accounts.
Specifically, if they selected the 2024
renewal banner, which was prominently
displayed on their FinPro accounts, and
completed the renewal process, they
would not have been automatically
redirected to complete any prescribed
CE. Therefore, individuals may have
inadvertently assumed that completion
of the renewal process alone would
have satisfied all of the necessary
requirements to continue their
participation in the MQP.12
For similar reasons and to facilitate
compliance with the Exchange’s CE
Program requirements by members of
multiple exchanges, the Exchange is
also proposing to amend its rules (i.e.,
Exchange Rule 1903, Interpretation and
Policy .01) to provide Look-Back
Individuals enrolled in the MQP in both
2022 and 2023 who did not complete
their prescribed 2022 and 2023 CE
content as of March 31, 2024, the
opportunity to complete such content
between the effective date of this filing,
and July 1, 2024, to be eligible to
continue their participation in the
MQP.13 In addition, the proposed rule
change provides that any such
11 Look-Back Individuals who enrolled in the
MQP have until December 31, 2024, to renew their
participation in the MQP for 2024, provided that
they complete their prescribed CE by the stated
deadline.
12 According to FINRA, a number of these
individuals contacted FINRA to confirm whether
they were required to satisfy any additional
requirements other than completing the 2024
renewal. To provide FINRA with additional time to
assess the situation, FINRA temporarily changed
the March 31, 2024, due date for CE completion in
its systems. This may have compounded the
confusion because any Look-Back Individual who
may have logged into their FinPro account during
this time would have seen an interim CE
completion date and would have been able to
complete their prescribed CE content based on that
interim CE completion date.
13 This would include any Look-Back Individuals
who were still in the process of completing their
prescribed CE content as of March 31, 2024.
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18:25 Jul 12, 2024
Jkt 262001
individuals who will have completed
their prescribed 2022 and 2023 CE
content between March 31, 2024, and
the effective date of this filing, will be
deemed to have completed such content
by July 1, 2024, for purposes of the rule.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.14 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 15 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) 16 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange’s rule proposal is
intended to harmonize the Exchange’s
supervision rules, specifically with
respect to the continuing education
requirements with those of FINRA, on
which they are based. Consequently, the
proposed change will conform the
Exchange’s rules to changes made to
corresponding FINRA rules, thus
promoting application of consistent
regulatory standards with respect to
rules that FINRA enforces pursuant to
its regulatory services agreement with
the Exchange.
The Exchange believes that reopening
the period by which Look-Back
Individuals will be able to complete
their prescribed 2022 and 2023 CE
content is appropriate under the
circumstances. As FINRA noted in the
FINRA Rule Change, Look-Back
Individuals who had enrolled in the
MQP in 2022 and 2023 but had not
completed their prescribed 2022 and
2023 CE content by the March 31, 2024
deadline may have been confused, as
described above. The Exchange believes
that participation in the MQP reduces
unnecessary impediments to
PO 00000
14 15
15 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Fmt 4703
requalification for these individuals
without diminishing investor
protection. In addition, the proposed
rule change is consistent with other
goals, such as the promotion of diversity
and inclusion in the securities industry
by attracting and retaining a broader and
diverse group of professionals. The
MQP also allows the industry to retain
expertise from skilled individuals,
providing investors with the advantage
of greater experience among the
individuals working in the industry.
The Exchange believes that reopening
the CE completion period, as proposed,
will further these goals and objectives.
Further, the Exchange believes the
proposed amendments reduce the
possibility of a regulatory gap between
Exchange and FINRA rules, providing
more uniform standards across the
securities industry. The Exchange
believes that the proposed rule change
will bring consistency and uniformity
with FINRA’s recently amended CE
Program, which will, in turn, assist
members and their associated persons in
complying with these rules and improve
regulatory efficiency. The proposed rule
changes make ministerial changes to the
Exchange’s CE rules to align them with
the CE rules of FINRA, in order to
prevent unnecessary regulatory burdens
and to promote efficient administration
of the rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
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 the recent rule change adopted by
FINRA, will reduce the regulatory
burden placed on market participants
engaged in trading activities across
different markets. The Exchange
believes that the harmonization of the
CE program 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
Written comments were neither
solicited nor received.
16 Id.
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Federal Register / Vol. 89, No. 135 / Monday, July 15, 2024 / Notices
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 17 and Rule 19b4(f)(6) thereunder.18
A proposed rule change filed under
Rule 19b–4(f)(6) 19 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),20 the
Commission may 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 proposed
rule change may become operative upon
filing. The Exchange has stated that a
waiver of the operative delay would
allow the Exchange to implement the
proposed changes to its CE rules
without delay, thereby eliminating the
possibility of a significant regulatory
gap between the FINRA and the
Exchange rules. The Exchange has also
stated that a waiver would provide more
uniform standards across the securities
industry and help to avoid confusion for
Exchange members that are also FINRA
members. The Exchange believes a
waiver would also provide immediately
clarity to impacted individuals, thus
minimizing the potential for confusion
regarding the time frames for satisfying
continuing education content in order to
maintain eligibility to participate in the
continuing education program. For
these reasons, the Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest.
Therefore, the Commission hereby
waives the operative delay and
designates the proposal operative upon
filing.21
17 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
19 17 CFR 240.19b–4(f)(6).
20 17 CFR 240.19b–4(f)(6)(iii).
21 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
ddrumheller on DSK120RN23PROD with NOTICES1
18 17
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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. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 22 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
MIAX–2024–27 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–MIAX–2024–27. 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 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
PO 00000
office of the Exchange. Do not include
personal identifiable information in
submissions; you should submit only
information that you wish to make
available publicly. We may redact in
part or withhold entirely from
publication submitted material that is
obscene or subject to copyright
protection. All submissions should refer
to file number SR–MIAX–2024–27 and
should be submitted on or before
August 5, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–15403 Filed 7–12–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100471; File No. SR–
CboeEDGX–2024–043]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Fees Schedule To Adopt Fees for
Dedicated Cores
July 9, 2024.
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 July 1,
2024, Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) 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
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX Equities’’)
proposes to amend its Fees Schedule.
The text of the proposed rule change is
provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
23 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
22 15
U.S.C. 78s(b)(2)(B).
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]]>Agencies
[Federal Register Volume 89, Number 135 (Monday, July 15, 2024)]
[Notices]
[Pages 57451-57454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15403]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100472; File No. SR-MIAX-2024-27]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Rules Relating to the Continuing
Education for Registered Persons as Provided Under Exchange Rule 1903
July 9, 2024.
Pursuant to the provisions of 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 June 28, 2024, Miami International Securities
Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') a 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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[[Page 57452]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend Interpretation and
Policy .01 to Exchange Rule 1903, Continuing Education, to reopen the
period by which eligible Members \3\ who participate in the Maintaining
Qualifications Program (``MQP'') will be able to complete their
prescribed 2022 and 2023 continuing education content.
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\3\ The term ``Member'' means an individual or organization that
is registered with the Exchange pursuant to Chapter II of the
Exchange Rules for purposes of trading on the Exchange as an
``Electronic Exchange Member'' or ``Market Maker.'' See Exchange
Rule 100.
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The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-options/miax-options/rule-filings, at MIAX's principal office, and at the Commission's
Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Interpretation and Policy .01 to
Exchange Rule 1903, Continuing Education, to provide eligible Members
another opportunity to elect to reopen the period by which certain
participants in the MQP will be able to complete their prescribed 2022
and 2023 continuing education content.
In 2021, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') implemented rule changes, which amended its Continuing
Education (``CE'') Program requirements to, among other things, provide
eligible individuals who terminate any of their representative or
principal registration categories the option of maintaining their
qualification for any terminated registration categories by completing
annual CE through a new program, the MQP.\4\ Under FINRA Rule 1240.01,
the MQP designated a look-back provision that, subject to specified
conditions, extended the option to participate in the MQP to
individuals who: (1) were registered as a representative or principal
within two years immediately prior to March 15, 2022 (the
implementation date of the MQP); and (2) individuals who were
participating in the Financial Services Affiliate Waiver Program
(``FSAWP'') \5\ under FINRA Rule 1210.09 (Waiver of Examinations for
Individuals Working for a Financial Services Industry Affiliate of a
Member) immediately prior to March 15, 2022 (collectively, ``Look-Back
Individuals'').
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\4\ See Securities Exchange Act Release No. 93097 (September 21,
2021), 86 FR 53358 (September 27, 2021) (Order Approving File No.
SR-FINRA-2021-015). Other exchanges, including the Exchange,
subsequently filed copycat rule filings to align their continuing
education rules with those of FINRA. See Securities Exchange Act
Release No. 95140 (June 22, 2022), 87 FR 38438 (June 28, 2022) (SR-
MIAX-2022-23) (Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Exchange Rule 1900, Registration
Requirements, Exchange Rule 1903, Continuing Education Requirements,
and Exchange Rule 1904, Electronic Filing Requirements for Uniform
Forms).
\5\ The FSAWP is a waiver program for eligible individuals who
have left a member firm to work for a foreign or domestic financial
services affiliate of a member firm. The Exchange stopped accepting
new participants for the FSAWP beginning on July 1, 2022; however,
individuals who were already participating in the FSAWP prior to
that date had the option of continuing in the FSAWP.
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In 2023, FINRA amended FINRA Rule 1240.01, to provide Look-Back
Individuals a second opportunity to elect to participate in the MQP
(the ``FINRA Second Enrollment Period'').\6\ The proposed rule change
required that Look-Back Individuals who elect to participate in the MQP
during the FINRA Second Enrollment Period complete any prescribed 2022
and 2023 MQP content by March 31, 2024. Look-Back Individuals who are
enrolled in the MQP, similar to other MQP participants, are able to
complete any prescribed CE and renew their annual MQP participation
through their FINRA Financial Professional Gateway (``FinPro'')
accounts.
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\6\ See Securities Exchange Act Release No. 97184 (Mar. 22,
2023), 88 FR 18359 (Mar. 28, 2023) (SR-FINRA-2023-005) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Amend FINRA Rule 1240.01 To Provide Eligible Individuals Another
Opportunity to Elect to Participate in the Maintaining
Qualifications Program)
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In response to FINRA's rule changes and to facilitate compliance
with the Exchange's CE Program requirements by members of multiple
exchanges, the Exchange implemented rule changes to align with FINRA's
CE Program.\7\ Such rules, among other things, provide eligible
individuals who terminate any of their representative or principal
registrations the option of maintaining their qualification for any of
the terminated registrations by completing CE through the MQP. Further,
Exchange Rule 1903, Interpretation and Policy .01, includes a look-back
provision that, subject to specified conditions, extends the option for
maintaining qualifications following a registration category
termination to (i) individuals who have been registered as a
representative or principal within two years immediately preceding July
1, 2022, and (ii) individuals who have been participants of the FSAWP
immediately preceding July 1, 2022 implementation (i.e., Look-Back
Individuals).
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\7\ See Exchange Rules 1900, 1903, and 1904.
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Exchange Rule 1903 also provided Look-Back Individuals with a
second enrollment period, between September 18, 2023, and December 31,
2023 (the ``Exchange Second Enrollment Period''). Exchange Rule 1903,
Interpretation and Policy .01, requires that Look-Back Individuals who
elect to participate in the MQP during the Exchange Second Enrollment
Period complete any prescribed 2022 and 2023 MQP content by March 31,
2024.\8\
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\8\ The Exchange determined to treat the individuals who
enrolled during the first period (preceding July 1, 2022) the same
as those who enrolled during the second period (between September
18, 2023, and December 31, 2023) for purposes of the March 31, 2024,
deadline for completion of prescribed 2022 and 2023 CE content. This
is because those who had enrolled in the MQP during the first period
satisfied all of the eligibility criteria for enrollment during the
second period and would have been able to complete their prescribed
CE content by March 31, 2024, had they chosen to enroll during the
second period instead of enrolling during the first period.
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FINRA recently submitted a proposal related to its CE Program (the
``FINRA Rule Change'').\9\ The proposal set forth changes to FINRA Rule
1240.01, to provide Look-Back Individuals enrolled in the MQP in both
2022 and 2023 who did not complete their prescribed 2022 and 2023 CE
content as of March 31, 2024, the opportunity to complete such content
between May 22, 2024, and July 1, 2024, to be eligible to continue
their participation in the MQP.\10\ In addition, the proposed rule
change provides that any such individuals who will have completed their
prescribed 2022 and 2023 CE content between March 31,
[[Page 57453]]
2024, and May 22, 2024, will be deemed to have completed such content
by July 1, 2024, for purposes of the rule.
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\9\ See Securities Exchange Act Release No. 100067 (May 6,
2024), 89 FR 40520 (May 10, 2024) (SR-FINRA-2024-006) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend FINRA Rule 1240.01 To Reopen the Period by Which Certain
Participants in the Maintaining Qualifications Program May Complete
Their Prescribed Continuing Education Content).
\10\ This would include any Look-Back Individuals who were still
in the process of completing their prescribed CE content as of March
31, 2024.
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In the FINRA Rule Change, FINRA noted that it sent multiple
reminders, including a March 16, 2024 email, to Look-Back Individuals
who had enrolled in the MQP but had not completed their prescribed CE
to remind them of the March 31, 2024 deadline. In the FINRA Rule
Change, FINRA further noted that in the week leading up to the
deadline, FINRA noticed that several thousand of those individuals were
renewing their participation in the MQP for 2024 instead of completing
their prescribed CE.\11\ Per the FINRA Rule Change, FINRA believes that
some of those individuals may have been confused by the layout of their
FinPro accounts. Specifically, if they selected the 2024 renewal
banner, which was prominently displayed on their FinPro accounts, and
completed the renewal process, they would not have been automatically
redirected to complete any prescribed CE. Therefore, individuals may
have inadvertently assumed that completion of the renewal process alone
would have satisfied all of the necessary requirements to continue
their participation in the MQP.\12\
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\11\ Look-Back Individuals who enrolled in the MQP have until
December 31, 2024, to renew their participation in the MQP for 2024,
provided that they complete their prescribed CE by the stated
deadline.
\12\ According to FINRA, a number of these individuals contacted
FINRA to confirm whether they were required to satisfy any
additional requirements other than completing the 2024 renewal. To
provide FINRA with additional time to assess the situation, FINRA
temporarily changed the March 31, 2024, due date for CE completion
in its systems. This may have compounded the confusion because any
Look-Back Individual who may have logged into their FinPro account
during this time would have seen an interim CE completion date and
would have been able to complete their prescribed CE content based
on that interim CE completion date.
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For similar reasons and to facilitate compliance with the
Exchange's CE Program requirements by members of multiple exchanges,
the Exchange is also proposing to amend its rules (i.e., Exchange Rule
1903, Interpretation and Policy .01) to provide Look-Back Individuals
enrolled in the MQP in both 2022 and 2023 who did not complete their
prescribed 2022 and 2023 CE content as of March 31, 2024, the
opportunity to complete such content between the effective date of this
filing, and July 1, 2024, to be eligible to continue their
participation in the MQP.\13\ In addition, the proposed rule change
provides that any such individuals who will have completed their
prescribed 2022 and 2023 CE content between March 31, 2024, and the
effective date of this filing, will be deemed to have completed such
content by July 1, 2024, for purposes of the rule.
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\13\ This would include any Look-Back Individuals who were still
in the process of completing their prescribed CE content as of March
31, 2024.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\14\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \15\ 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) \16\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Exchange's rule proposal
is intended to harmonize the Exchange's supervision rules, specifically
with respect to the continuing education requirements with those of
FINRA, on which they are based. Consequently, the proposed change will
conform the Exchange's rules to changes made to corresponding FINRA
rules, thus promoting application of consistent regulatory standards
with respect to rules that FINRA enforces pursuant to its regulatory
services agreement with the Exchange.
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\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(5).
\16\ Id.
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The Exchange believes that reopening the period by which Look-Back
Individuals will be able to complete their prescribed 2022 and 2023 CE
content is appropriate under the circumstances. As FINRA noted in the
FINRA Rule Change, Look-Back Individuals who had enrolled in the MQP in
2022 and 2023 but had not completed their prescribed 2022 and 2023 CE
content by the March 31, 2024 deadline may have been confused, as
described above. The Exchange believes that participation in the MQP
reduces unnecessary impediments to requalification for these
individuals without diminishing investor protection. In addition, the
proposed rule change is consistent with other goals, such as the
promotion of diversity and inclusion in the securities industry by
attracting and retaining a broader and diverse group of professionals.
The MQP also allows the industry to retain expertise from skilled
individuals, providing investors with the advantage of greater
experience among the individuals working in the industry. The Exchange
believes that reopening the CE completion period, as proposed, will
further these goals and objectives.
Further, the Exchange believes the proposed amendments reduce the
possibility of a regulatory gap between Exchange and FINRA rules,
providing more uniform standards across the securities industry. The
Exchange believes that the proposed rule change will bring consistency
and uniformity with FINRA's recently amended CE Program, which will, in
turn, assist members and their associated persons in complying with
these rules and improve regulatory efficiency. The proposed rule
changes make ministerial changes to the Exchange's CE rules to align
them with the CE rules of FINRA, in order to prevent unnecessary
regulatory burdens and to promote efficient administration of the
rules.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in 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
the recent rule change adopted by FINRA, will reduce the regulatory
burden placed on market participants engaged in trading activities
across different markets. The Exchange believes that the harmonization
of the CE program 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
Written comments were neither solicited nor received.
[[Page 57454]]
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 \17\ and Rule 19b-
4(f)(6) thereunder.\18\
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\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\20\ the Commission
may 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 proposed
rule change may become operative upon filing. The Exchange has stated
that a waiver of the operative delay would allow the Exchange to
implement the proposed changes to its CE rules without delay, thereby
eliminating the possibility of a significant regulatory gap between the
FINRA and the Exchange rules. The Exchange has also stated that a
waiver would provide more uniform standards across the securities
industry and help to avoid confusion for Exchange members that are also
FINRA members. The Exchange believes a waiver would also provide
immediately clarity to impacted individuals, thus minimizing the
potential for confusion regarding the time frames for satisfying
continuing education content in order to maintain eligibility to
participate in the continuing education program. For these reasons, the
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
Therefore, the Commission hereby waives the operative delay and
designates the proposal operative upon filing.\21\
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\19\ 17 CFR 240.19b-4(f)(6).
\20\ 17 CFR 240.19b-4(f)(6)(iii).
\21\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of 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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \22\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\22\ 15 U.S.C. 78s(b)(2)(B).
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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 [email protected]. Please include
file number SR-MIAX-2024-27 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-MIAX-2024-27. 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 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. Do
not include personal identifiable information in submissions; you
should submit only information that you wish to make available
publicly. We may redact in part or withhold entirely from publication
submitted material that is obscene or subject to copyright protection.
All submissions should refer to file number SR-MIAX-2024-27 and should
be submitted on or before August 5, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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\23\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-15403 Filed 7-12-24; 8:45 am]
BILLING CODE 8011-01-P
