[Federal Register Volume 81, Number 44 (Monday, March 7, 2016)]
[Notices]
[Pages 11870-11872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04911]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77268; File No. SR-NYSEARCA-2016-36]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Exchange
Rule 7.21, Obligations of Market Maker Authorized Traders
March 1, 2016.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on February 22, 2016, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, of which Items I and II 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\ 15 U.S.C. 78a.
\3\ 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
The Exchange proposes to amend Exchange Rule 7.21, Obligations of
Market Maker Authorized Traders. The proposed rule change is available
on the Exchange's Web site at www.nyse.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 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 recently amended its rules to prescribe the Securities
Traders examination (Series 57) (the ``Series 57 Examination'') as the
qualifying examination for employees of ETP Holders (``Member'')
engaged solely in proprietary trading.\4\ Under current rules,
Securities Traders and Market Maker Authorized Traders (``MMATs'')
essentially perform similar functions. In the Series 57 Filing, which,
among other things, amended Exchange rules regarding the registration
requirements for Securities Traders, the Exchange also intended to
amend Rule 7.21 to amend the registration requirements for MMATs but
inadvertently failed to do so. The Exchange is now proposing to amend
Rule 7.21 so that the registration requirements applicable to MMATs are
the same as those imposed on Securities Traders. Specifically, Rule
7.21(b)(2) states that to be eligible for registration
[[Page 11871]]
as a MMAT, a person must successfully complete the General Securities
Representative Examination (Series 7) and complete a training and
certification program sponsored by the Corporation.\5\ The rule further
provides that the examination requirement may be waived if an applicant
MMAT has served as a dealer-specialist or market maker on a registered
national securities exchange for at least two consecutive years within
three years of the date of the application.\6\ The Exchange does not
intend to impose different registration requirements on MMATs than are
required of Securities Traders. In order to satisfy the registration
requirement, Securities Traders are required to successfully complete
the Series 57 Examination.\7\ The proposed amendment to Rule 7.21(b)
would ensure that MMATs would also be required to successfully complete
the Series 57 Examination in order to satisfy the Exchange's
registration requirement.
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\4\ See Securities Exchange Act Release No. 76578 (December 8,
2015), 80 FR 77068 (December 11, 2015) (SR-NYSEArca-2015-117)
(``Series 57 Filing'').
\5\ See Rule 7.21(b).
\6\ Id.
\7\ See Rule 2.21.
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The Exchange intends to announce the implementation date of the
Series 57 registration requirement in a notice to members to be issued
no later than 30 days after the effective date of the proposed rule
change.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (``Act''),\8\ in general,
and furthers the objectives of Section 6(c)(3)(B) \9\ of the Act,
pursuant to which a national securities exchange prescribes standards
of training, experience and competence for members and their associated
persons, and Section 6(b)(5) \10\ of the Act, in particular, in that it
is designed, among other things, to promote just and equitable
principles of trade, 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. The proposed
rule change, which would ensure that Securities Traders and MMATs are
not subject to different registration requirements, is designed to
maintain consistency in the Exchange's rules, which would promote just
and equitable principles of trade and remove impediments to a free and
open market. The Exchange believes that the proposed rule change to
make the Series 57 Examination the qualifying exam for registration as
a MMAT is appropriate because the Series 57 Examination addresses
industry topics that establish the foundation for the regulatory and
procedural knowledge necessary for MMATs to appropriately register
under Exchange rules.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(c)(3)(B).
\10\ 15 U.S.C. 78f(b)(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 not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change does
not impose any additional examination burdens on persons who are
already registered. There is no obligation to take the Series 57
examination in order to continue in their present duties, so the
proposed rule change is not expected to disadvantage current registered
persons relative to new entrants in this regard.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\14\ 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 proposal
may become operative upon filing. The Exchange has stated that the
proposed rule change promotes uniformity in registration requirements
on the Exchange and that waiver of the operative delay would allow the
Exchange to immediately create consistency in its rules. Waiving the
operative delay would enable the Exchange to have and enforce the same
examination requirement for MMATs as for securities traders, which the
Exchange represents engage in the same activity, therefore 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 thirty-day operative
delay.\15\
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ For purposes 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 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 under
Section 19(b)(2)(B)\16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 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 (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSEARCA-2016-36 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEARCA-2016-36. This
file number should be included on the subject line if email is used. To
help the
[[Page 11872]]
Commission process and review your comments more efficiently, please
use only one method. The Commission will post all comments on the
Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of 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; 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-NYSEARCA-2016-36 and should
be submitted on or before March 28, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Robert W. Errett,
Deputy Secretary.
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\17\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2016-04911 Filed 3-4-16; 8:45 am]
BILLING CODE 8011-01-P