[Federal Register Volume 78, Number 212 (Friday, November 1, 2013)]
[Notices]
[Pages 65734-65736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-26033]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70761; File No. SR-Topaz-2013-09]
Self-Regulatory Organizations; Topaz Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Schedule of Fees
October 28, 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 22, 2013, the Topaz Exchange, LLC (d/b/a ISE Gemini)
(the ``Exchange'' or ``Topaz'') filed with the Securities and Exchange
Commission the proposed rule change, as described in Items I, II, and
III below, which items have been prepared by the self-regulatory
organization. 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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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Topaz is proposing to amend its Schedule of Fees to adopt a
continuing education fee for Series 56 registered persons. The text of
the proposed rule change is available on the Exchange's Internet Web
site at http://www.ise.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 self-regulatory organization 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 purpose of the proposed rule change is to amend the Schedule of
Fees to adopt a fee for a new continuing
[[Page 65735]]
education program, the S501,\3\ which is required for persons who are
registered as Proprietary Traders (i.e. Series 56) and do not maintain
any other registration.\4\
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\3\ See Securities Exchange Act Release No. 70417 (September 16,
2013), 78 FR 57907 (September 20, 2013) (SR-ISE-2013-48). ISE Rule
604, which specifies the continuing education requirements for
registered persons, including Series 56 registered Proprietary
Traders, is incorporated by reference into Chapter 6 of Topaz Rules.
\4\ Individuals that are registered under any other registration
are required to maintain the continuing education obligations
associated with such registrations. For example, an individual that
engages solely in proprietary trading activities but has passed the
Series 7 and is registered as a General Securities Representative
will be required to continue taking the Series 7 continuing
education program (S101). Id.
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The S501 addresses the continuing education of Proprietary Traders,
based on the content outline for the Series 56 exam, which covers the
main categories of rules and regulations generally applicable to such
persons. These generally include recordkeeping and recording
requirements, types and characteristics of securities and investments,
trading practices and display execution and trading systems. Each
Proprietary Trader required to take the S501 must complete the
continuing education program within 120 days after their [sic] second
registration anniversary date, and every three years thereafter or as
otherwise prescribed by the Exchange.
The Exchange proposes to adopt a $60 fee for the S501 continuing
education program, which will be used for the administration of the
S501. The Financial Industry Regulatory Authority (``FINRA'')
administers this program on behalf of the exchanges and therefore the
fees are payable directly to FINRA. The Exchange expects that the other
exchanges that recognize the Proprietary Trader registration either
have or will adopt the same fee for continuing education.\5\
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\5\ See e.g. Securities Exchange Act Release Nos. 70257 (August
26, 2013), 78 FR 53814 (August 30, 2013) (SR-BATS-2013-047); 70064
(July 30, 2013), 78 FR 47469 (August 5, 2013) (SR-CBOE-2013-078);
70194 (August 14, 2013) 78 FR 51259 (August 20, 2013) (SR-C2-2013-
030); 70327 (September 5, 2013), 78 FR 55766 (September 11, 2013)
(SR-Phlx-2013-85).
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The Exchange's Schedule of Fees does not currently set forth the
session fees for other continuing education programs required by the
Exchange because these programs are within the jurisdiction of FINRA,
which collects these session fees from its members. The Series 56,
however, applies to Topaz Members that are not required by Section
15(b)(8) of the Act \6\ to become members of FINRA. Therefore, the
Exchange believes it is appropriate to include the Series 56 continuing
education fee within the Exchange's Schedule of Fees to make the cost
of this program clear to Topaz Members.
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\6\ 15 U.S.C. 78o(b)(8).
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(4) of the Act,\8\ in particular, in that it provides for an
equitable allocation of reasonable fees and other charges among
Exchange Members and other persons using its facilities. The proposed
fee is equitable and not unfairly discriminatory, because it applies
equally to all persons registered solely as Proprietary Traders. The
Exchange notes that it will not invoice or collect funds from Members
that are subject to these fees because these fees will be paid directly
to FINRA as administrator of the continuing education program. The
proposed fees are reasonably designed to allow FINRA to cover its cost
of administering the Series 56 continuing education program on behalf
of the Exchange, and the Exchange believes it is reasonable and
equitable to include these fees in its Schedule of Fees to make the
costs of the Series 56 continuing education program clear to Members.
Moreover, the Exchange believes other exchanges will be assessing the
same fees for this continuing education program.\9\
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
\9\ See supra notes 3 and 5.
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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 does not
believe that the proposed rule change will affect intermarket
competition because all of the exchanges that recognize the Proprietary
Trader registration category are expected to adopt the same continuing
education fee.\10\ Furthermore, the Exchange does not believe the
proposed rule change will affect intramarket competition because all
Proprietary Traders required to complete the new S501 continuing
education program will pay the same continuing education fee.
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\10\ Id.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\11\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\12\ because it establishes a due, fee, or other charge
imposed by Topaz.
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\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of such 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 to
determine whether the proposed rule 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-Topaz-2013-09 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-Topaz-2013-09. 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
[[Page 65736]]
Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the
submission, all subsequent amendments, all written statements with
respect to the proposed rule change that are filed with the Commission,
and all written communications relating to the proposed rule change
between the Commission and any person, other than those that may be
withheld from the public in accordance with the provisions of 5 U.S.C.
552, will be available for Web site viewing and printing in the
Commission's Public Reference Room, 100 F Street NE., Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-Topaz-2013-09 and should be
submitted on or before November 22, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-26033 Filed 10-31-13; 8:45 am]
BILLING CODE 8011-01-P