[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62909-62911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-24682]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70692; File No. SR-CBOE-2013-098]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to Continuing Education
October 16, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 4, 2013, the Chicago Board Options Exchange,
Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities
and Exchange Commission (the ``Commission'') the proposed rule change
as described in Items I and II below, which Items have been prepared by
the Exchange. The Exchange filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which
[[Page 62910]]
renders the proposal effective upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to correct an administrative error in Rule
9.3A(c)(1) and add a reference to CBOE Rule 9.3A to the CBOE Stock
Exchange, LLC (``CBSX'') Appendix A. The text of the proposed rule
change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of
the Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to make an administrative change to correct
an inadvertent error in Exchange Rule 9.3A(c)(1). The Exchange proposes
to make the proposed change so the text properly reflects the intention
and practice of Rule 9.3A(c)(1). The Exchange also proposes to add a
reference to CBOE Rule 9.3A to CBSX Appendix A. The Exchange believes
that adding the reference to CBOE Rule 9.3A to CBSX Appendix A will
more clearly put CBSX Trading Permit Holders (``TPHs'') on notice of
their continuing education requirements.
In 2003, the Exchange filed a rule change, SR-CBOE-2003-01 to,
among other things, amend CBOE's continuing education rule.\5\ As part
of that filing, a new paragraph (b) was added to Exchange Rule 9.3A,
and the then current paragraph (b) was renumbered to paragraph (c).\6\
In doing so, an inadvertent error was made in a reference to paragraph
(b) in the new Rule 9.3A(c)(1). The error can be found in the first
sentence of current CBOE Rule 9.3A(c)(1). A reference is made to
``paragraph (b)''; however, the intended reference is to ``paragraph
(c).''
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\5\ See Securities Exchange Act Release No. 47188 (January 17,
2003), 68 FR 3071 (January 22, 2003) (notice of [sic] immediate
effectiveness of SR-CBOE-2003-01 which permitted the in-house
delivery of the Regulatory Element of Continuing Education by member
organizations).
\6\ Id.
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The intention of CBOE Rule 9.3A is to discuss the register [sic]
persons subject to the Firm Element of the continuing education
program. This intention is spelled out in the title of the paragraph
which is, ``Persons Subject to the Firm Element.'' This intention is
more explicitly spelled out in SR-CBOE-2003-01. More specifically, the
filing states that the Firm Element requires, ``member and member
organizations to provide to their registered employees having direct
contact with customers ongoing training that is specifically tailored
to their business.'' \7\ The Firm Element is described in paragraph (c)
of current CBOE Rule 9.3A and not paragraph (b). Thus, the Exchange is
now proposing to amend this error to more accurately describe the
intention and practice of the rule.
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\7\ Id.
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Finally, the Exchange is proposing to add a reference to Rule 9.3A
to CBSX Appendix A. CBSX Appendix A to Chapters 50 through 54 lists the
rules in Chapters 1 through 29 that are applicable to trading on
CBSX.\8\ CBOE Rule 9.3A is applicable to CBSX members as well as
outlined in current CBOE Rule 6.3A [sic] as incorporated into Appendix
A. As such, CBOE Rule 3.6A.04 states that each individual registered
under CBOE Rule 3.6A ``is required to satisfy the continuing education
requirements set forth in Rule 9.3A and any other applicable continuing
education requirements as prescribed by the Exchange.'' \9\ Thus, CBSX
members are already on notice of their continuing education
requirements under CBOE Rule 9.3A. To make these requirements more
explicit, however, the Exchange is proposing to add a reference to CBOE
Rule 9.3A in CBSX Appendix A. The Exchange believes this change will
more clearly spell out continuing education requirements for CBSX
registered persons.
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\8\ See Introduction to CBSX Rules, Chapters 50 through 54.
\9\ See CBOE Rule 3.6A.04.
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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.\10\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \11\ 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)\12\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ Id.
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Specifically, the proposed rule change is consistent with these
provisions as it will more accurately describe the practice of the
Exchange in the Exchange Rulebook. The same registered persons will be
subject to the Firm Element of the continuing education requirements,
and, thus, the current practices of the Exchange will remain the same.
The Exchange believes the proposed rule change is necessary to
accurately describe to the continuing education requirements for
Exchange Trading Permit Holders. In addition, the Exchange believes
that adding a reference to Rule 9.3A to CBSX Appendix A will more
sufficiently put participants on CBSX of their continuing education
requirements.
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
the proposed rule change imposes any burden on intramarket competition
because it applies to all Trading Permit Holders. Additionally, the
Exchange does not believe the proposed rule change will impose any
burden on intermarket competition as it merely attempting to correct a
typographical error and add an additional cross reference. There will
be
[[Page 62911]]
no substantive changes to the Exchange's operations nor its rules.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\13\ and Rule 19b-4(f)(6) thereunder.
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\13\ 15 U.S.C. 78s(b)(3)(A).
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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission notes that the rule change raises no
novel issues. It corrects an inaccurate cross reference in Rule 9.3A
and would more clearly set forth the continuing education requirements
for associated persons of CBSX Trading Permit Holders. Waiver of the
operative delay would be beneficial to associated persons of member
firms by making the existing requirements clearer. Therefore, the
Commission designates the proposal operative upon filing.\14\
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\14\ 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 this 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 will institute proceedings 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 (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CBOE-2013-098 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2013-098. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
such filing also will be available for inspection and copying at the
principal office of the CBOE. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-CBOE-2013-098 and should be submitted on or before
November 12, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24682 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P