[Federal Register Volume 81, Number 156 (Friday, August 12, 2016)]
[Notices]
[Pages 53519-53521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19172]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78503; File No. SR-CHX-2016-13]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Update or Adopt Various Fees for Services Provided by the Financial
Industry Regulatory Authority
August 8, 2016
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on August 4, 2016, the Chicago Stock Exchange, Inc. (``CHX'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(``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.
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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
CHX proposes to amend its Schedule of Fees and Assessments (the
``Fee Schedule'') to update or adopt various fees for services provided
by the Financial Industry Regulatory Authority (``FINRA''). The text of
this proposed rule change is available on the Exchange's Web site at
(www.chx.com) and in 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 CHX included statements
concerning the purpose of and basis for the proposed rule changes 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 CHX has prepared summaries, set forth in sections A,
B and C below, of the most significant aspects of such statements.
[[Page 53520]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Section J.5 of the Fee Schedule to
(1) update various current fees for examinations administered by FINRA
and (2) adopt the Series 57 Securities Trader Examination fee,\3\ so
that such fees are identical to corresponding fees reflected under
Section 4(c) of the Schedule A of the FINRA By-Laws. FINRA administers
these programs on behalf of the exchanges and therefore the fees are
payable directly to FINRA through the WebCRD.\4\ Specifically, the
Exchange proposes the following amendments:
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\3\ The Exchange recently adopted the Securities Trader
registration category and corresponding Series 57 Securities Trader
Examination, which replaced the Proprietary Trader registration
category and corresponding Series 56 Proprietary Examination
requirement. See CHX Article 6, Rule 3(a); see also Securities
Exchange Act Release No. 78445 (July 29, 2016) (SR-CHX-2016-11).
\4\ WebCRD is the central licensing and registration system for
the U.S. securities industry. The CRD system enables individuals and
firms seeking registration with multiple states and self-regulatory
organizations to do so by submitting a single form, fingerprint card
and a combined payment of fees to FINRA. Through the CRD system,
FINRA maintains the qualification, employment and disciplinary
histories of registered associated persons of broker-dealers.
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Amend the Series 7 Examination fee from $290 to $305.\5\
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\5\ See Section 4(c) of the Schedule A of the FINRA By-Laws.
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Amend the Series 14 Examination fee from $335 to $350.\6\
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\6\ Id.
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Amend the Series 27 Examination fee from $115 to $120.\7\
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\7\ Id.
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Replace reference to the ``Series 56 Examination'' with
the ``Series 57 Examination'' and adopt a corresponding fee of $120.\8\
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\8\ Id.
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Moreover, given that the Proprietary Trader Continuing Education
program is no longer available,\9\ the Exchange proposes to eliminate
reference to the ``Proprietary Trader Continuing Education (S501)'' and
the corresponding $60 fee.
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\9\ See CHX Article 6, Rule 11(a)(3); see also supra note 3.
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The Exchange further proposes to add ``Member Regulation'' to the
title of Section J of the CHX Fee Schedule, as the Exchange's Member
Regulation department is responsible for ensuring that Participants
comply with the relevant WebCRD fees, and ``WebCRD'' to the title of
Section J.5 of the CHX Fee Schedule, as all fees under Section J.5 are
paid directly to FINRA through the WebCRD, as noted above.
2. Statutory Basis
The Exchange believes that its proposal to amend its fee schedule
is consistent with Section 6(b) of the Act \10\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \11\ in
particular, in that it is an equitable allocation of reasonable dues,
fees and other charges among Exchange members and issuers and other
persons using its facilities. The Exchange believes that the proposal
to adopt and update the various FINRA administered examination fees is
an equitable allocation of dues, fees and other charges because the fee
change applies equally to all Participants and the amended or adopted
fees are identical to the corresponding fees charged by FINRA pursuant
to Section 4(c) of the Schedule A of the FINRA By-Laws.
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\10\ 15 U.S.C. 78(f)(b).
\11\ 15 U.S.C. 78(f)(b)(4).
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Moreover, the Exchange believes that harmonizing the FINRA
administered examination fees with those of FINRA and the other
national securities exchanges would further the objectives of Section
6(b)(5) of the Act \12\ by removing impediments to and perfecting the
mechanism of a free and open market and a national market system.
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\12\ 15 U.S.C. 78(f)(b)(5).
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In addition, the Exchange believes that amending the title to
Section J of the Fee Schedule to add the term ``Member Regulation''
would provide a complete description of the Exchange departments that
are responsible for ensuring compliance with the fees set forth
thereunder and amending the title to Section J.5 of the Fee Schedule
clarifies that the fees set forth thereunder are paid directly to
FINRA, which further the objectives of Section 6(b)(1) of the Act \13\
in that it further enables the Exchange to be so organized as to have
the capacity to be able to carry out the purposes of the Act and to
comply, and to enforce compliance by its Participants and persons
associated with its Participants, with the provisions of the Act, the
rules and regulations thereunder, and the rules of the Exchange.
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\13\ 15 U.S.C. 78f(b)(1).
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B. Self-Regulatory Organization's Statement of 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. Given that the proposed fee
change applies to all Participants and harmonizes the CHX Fee Schedule
with corresponding fees charged by FINRA pursuant to Section 4(c) of
the Schedule A of the FINRA By-Laws, the proposal has no effect on
competition.
C. Self-Regulatory Organization's Statement on Comments Regarding the
Proposed Rule Changes Received From Members, Participants or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A)(ii) of the Act \14\ and subparagraph(f)(2) of Rule
19b-4 thereunder \15\ because it establishes or changes a due, fee or
other charge imposed by the Exchange.
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\14\ 15 U.S.C. 78s(b)(3)(A)(ii).
\15\ 17 CFR 240.19b-4(f)(2).
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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 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 No. SR-CHX-2016-13 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 No. SR-CHX-2016-13. This file
number should be included on the subject line if email is used. To help
the Commission process and review your
[[Page 53521]]
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 CHX. 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 No. SR-CHX-2016-13 and should be submitted on or before September
2, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19172 Filed 8-11-16; 8:45 am]
BILLING CODE 8011-01-P