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13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4A Participant is a ‘‘member’’ of the Exchange for 

purposes of the Act. See Article 1, Rule 1(s). 

5The Exchange has four registered national 

securities exchange affiliates: NYSE National, NYSE 

Arca, Inc. (‘‘NYSE Arca’’), New York Stock 

Exchange LLC (‘‘NYSE’’), NYSE America LLC 

(‘‘NYSE American’’ and together with the Exchange, 

NYSE National, NYSE Arca and NYSE, the ‘‘NYSE 

Group Exchanges’’). 

6The Financial Industry Regulatory Authority 

(‘‘FINRA’’) recently amended certain registration 

rules. See Securities Exchange Act Release No. 

81098 (July 7, 2017), 82 FR 32419 (July 13, 2017) 

(SR–FINRA–2017–007) (Approval Order) (the 

‘‘FINRA Filing’’). Thereafter, other self-regulatory 

organizations, such as NYSE National, submitted 

proposed rule changes to harmonize their 

registration rules with the corresponding FINRA 

rules amended pursuant to the FINRA Filing. See 

e.g., Securities Exchange Act Release No. 84350 

(October 3, 2018), 83 FR 51030 (October 10, 2018) 

(SR–NYSENat–2018–21) (the ‘‘NYSE National 

Filing’’). 

continually review its fees to assure that 

they remain competitive. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq 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, as amended. 

The market for listing services is 

extremely competitive and listed 

companies may freely choose alternative 

venues, both within the U.S. and 

internationally. For this reason, Nasdaq 

does not believe that the proposed rule 

change will result in any burden on 

competition for listings. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change 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 has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.13

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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 rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2018–103 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–NASDAQ–2018–103. 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 (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 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 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. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NASDAQ–2018–103, and 

should be submitted on or before 

January 18, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28181 Filed 12–27–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84896; File No. SR–CHX– 

2018–07] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change Regarding 

Qualification, Registration and 

Continuing Education Requirements 

Applicable to Participants 

December 20, 2018. 

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 December 

18, 2018, the Chicago Stock Exchange, 

Inc. (‘‘CHX’’ or ‘‘Exchange’’) 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 self-regulatory 

organization. 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 

The Exchange proposes amendments 

to the Exchange’s rules (‘‘Rules’’) 

regarding qualification, registration and 

continuing education requirements 

applicable to Participants,4 so as to 

harmonize such provisions with similar 

provisions under the rules of NYSE 

National, Inc. (‘‘NYSE National’’), a 

national securities exchange affiliated 

with the Exchange,5 and thus promote 

consistency within the securities 

industry. Like NYSE National,6 the 

Exchange is only adopting rules that are 

relevant to the Exchange’s Participants. 

Specifically, the Exchange is not 

adopting registration categories under 

FINRA rules that are not applicable to 

Participants because Participants do not 

engage in the type of business that 

would require such registration. As 

such, the Exchange is amending current 

Article 1, Rule 1 to adopt a definition 

for the term ‘‘Registered Person’’ similar 

to NYSE National Rule 2.2(e); amending 

current Article 6, Rule 2 regarding 

registration and approval of Participant 

personnel; amending current Article 6, 

Rule 3 regarding the training and 

examination of registrants; amending 

current Article 6, Rule 10 regarding 


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7The relevant principal registration categories the 

Exchange proposes to adopt are (1) Principal; (2) 

General Securities Principal; (3) Compliance 

Officer; (4) Financial and Operations Principal and 

Introducing Broker-Dealer Financial and Operations 

Principal; (5) Securities Trader Principal; and (6) 

General Securities Sales Supervisor. The relevant 

representative registration categories the Exchange 

proposes to adopt are (1) Representative; (2) General 

Securities Representative; and (3) Securities Trader. 

Upon filing of this proposed rule change, the 

Exchange’s registration categories will be identical 

to those of NYSE National. See NYSE National Rule 

2.1220. 

8The Exchange notes that in order to maintain 

consistency with the NYSE National Filing, the 

Exchange proposes to incorporate certain terms 

from the relevant NYSE National rule into the 

Exchange’s rule that may not be applicable to all 

Participants. For example, while Participants may 

not be engaged in ‘‘investment banking’’ activity, 

the Exchange proposes to adopt that term within 

these registration rules to conform them to the 

NYSE National rules. 

9The conforming changes the Exchange proposes 

would substitute the term ‘‘Participant’’ for ‘‘ETP 

Holder.’’ 

10The SIE would assess basic product knowledge; 

the structure and function of the securities industry 

markets, regulatory agencies and their functions; 

and regulated and prohibited practices. In 

particular, the SIE will cover four major areas. The 

first, ‘‘Knowledge of Capital Markets,’’ focuses on 

topics such as types of markets and offerings, 

broker-dealers and depositories, and economic 

cycles. The second, ‘‘Understanding Products and 

Their Risks,’’ covers securities products at a high 

level as well as associated investment risks. The 

third, ‘‘Understanding Trading, Customer Accounts 

and Prohibited Activities,’’ focuses on accounts, 

orders, settlement and prohibited activities. The 

final area, ‘‘Overview of the Regulatory 

Framework,’’ encompasses topics such as SROs, 

registration requirements and specified conduct 

rules. 

11The proposed rule is substantially similar to 

NYSE National Rule 2.1210. 

12The proposed rule is substantially similar to 

NYSE National Rule 2.120, Commentary .01. 

fingerprinting of securities industry 

personnel to be similar to Commentary 

.08 of NYSE National Rule 2.2; 

amending current Article 6, Rule 11 

regarding continuing education 

requirements to be similar to NYSE 

National Rule 2.2(e); amending current 

Article 16, Rule 3(b)(2) to require that 

Market Maker Authorized Traders 

successfully complete, in addition to 

current examination requirements, the 

Securities Industry Essentials 

qualification examination; adopting new 

Article 6, Rule 13 regarding registration 

requirements and related Interpretations 

and Policies to new Rule 13; adopting 

new Article 6, Rule 14 regarding 

registration categories 7 and related 

Interpretations and Policies to new Rule 

14; and adopting new Article 6, Rule 15 

regarding associated persons exempt 

from registration and related 

Interpretations and Policies to new Rule 

15. Each of these rule changes, which 

are described in more detail below, 

would become operative upon filing. 

The proposed rule change is available 

on the Exchange’s website 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 proposes to amend its 

qualification, registration and 

continuing education requirements 

applicable to Participants. The proposed 

amendments are intended to: (i) Provide 

transparency and clarity with respect to 

the Exchange’s registration, 

qualification and examination 

requirements; (ii) amend its rules 

relating to categories of registration and 

respective qualification examinations 

required for Participants that engage in 

trading activities on the Exchange; (iii) 

harmonize the Exchange’s qualification, 

registration and examination rules with 

those of NYSE National so as to promote 

uniform standards across the securities 

industry; 8 and (iv) add new definitions 

of terms and make other conforming 

changes to enhance the 

comprehensiveness and clarity of the 

Rules.9 The proposed changes are 

discussed below. 

A. Proposed New Article 6, Rules 13–15 

As a general matter, FINRA 

administers qualification examinations 

that are designed to establish that 

persons associated with Participants 

have attained specified levels of 

competence and knowledge. Over time, 

the examination program has increased 

in complexity to address the 

introduction of new products and 

functions, and related regulatory 

concerns and requirements. As a result, 

today, there are a large number of 

examinations, considerable content 

overlap across the representative-level 

examinations and requirements for 

individuals in various segments of the 

industry to pass multiple examinations. 

To address these issues, FINRA has 

formulated a general knowledge 

examination called the Securities 

Industry Essential (‘‘SIE’’) that all 

potential representative-level registrants 

would take.10 Rule changes related to 

the adoption of the SIE and other 

proposed new rules are discussed 

below. 

1. Proposed Article 6, Rule 13— 

Registration Requirements 11

Proposed Rule 13 provides that each 

person engaged in the investment 

banking or securities business of a 

Participant must register with the 

Exchange as a representative or 

principal in each category of registration 

appropriate to his or her functions and 

responsibilities as specified in proposed 

Article 6, Rule 14, unless exempt from 

registration pursuant to proposed 

Article 6, Rule 15. Proposed Article 6, 

Rule 13 also provides that such person 

is not qualified to function in any 

registered capacity other than that for 

which the person is registered, unless 

otherwise stated in the Rules. 

2. Proposed Paragraph .01 of the 

Interpretations and Policies of Article 6, 

Rule 13—Permissive Registrations 12

The Exchange currently does not have 

a specific rule that provides for 

permissive registrations. With this 

proposed rule change, and to conform 

its rules to the FINRA and NYSE 

National rules, the Exchange proposes 

to adopt a specific rule regarding 

permissive registrations. Proposed 

paragraph .01 allows any associated 

person to obtain and maintain any 

registration permitted by a Participant. 

For instance, an associated person of a 

Participant working solely in a clerical 

or ministerial capacity, such as in an 

administrative capacity, would be able 

to obtain and maintain a General 

Securities Representative registration 

with the Participant. As another 

example, an associated person of a 

Participant who is registered and 

functioning solely as a General 

Securities Representative would be able 

to obtain and maintain a General 

Securities Principal registration with the 

Participant. Further, proposed 

paragraph .01 allows an individual 

engaged in the securities business of a 

foreign securities affiliate or subsidiary 

of a Participant to obtain and maintain 

any registration permitted by the 

Participant. 

The Exchange is proposing to permit 

the registration of such individuals for 

several reasons. First, a Participant may 

foresee a need to move a former 


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13 In either case, the registered supervisor of an 

individual who solely maintains a permissive 

registration would not be required to be registered 

in the same representative or principal registration 

category as the permissively-registered individual. 

14The proposed rule is substantially similar to 

NYSE National Rule 2.120, Commentary .02. 

15Proposed Article 6, Rule 14 sets forth each 

registration category and applicable qualification 

examination for Participants on the Exchange. 

16The proposed rule is substantially similar to 

NYSE National Rule 2.120, Commentary .03. 

17The Exchange notes that qualifying as a 

registered representative is a prerequisite to 

qualifying as a principal except with respect to the 

following principal-level registrations: (1) 

Compliance Official; (2) Financial and Operations 

Principal; and (3) Introducing Broker-Dealer 

Financial and Operations Principal. 

representative or principal who has not 

been registered for two or more years 

back into a position that would require 

such person to be registered. Currently, 

such persons are required to requalify 

(or obtain a waiver of the applicable 

qualification examinations) and reapply 

for registration. Second, the proposed 

rule change would allow Participants to 

develop a depth of associated persons 

with registrations in the event of 

unanticipated personnel changes. 

Finally, allowing registration in 

additional categories encourages greater 

regulatory understanding. 

Individuals maintaining a permissive 

registration under the proposed rule 

change would be considered Registered 

Persons, as defined under proposed 

Article 1, Rule 1(yy), as discussed 

below, and subject to all CHX Rules, to 

the extent relevant to their activities. 

Additionally, consistent with the 

requirements of the Exchange’s 

supervision rules, as proposed, 

Participants would be required to have 

adequate supervisory systems and 

procedures reasonably designed to 

ensure that individuals with permissive 

registrations do not act outside the 

scope of their assigned functions. With 

respect to an individual who solely 

maintains a permissive registration, 

such as an individual working 

exclusively in an administrative 

capacity, the individual’s day-to-day 

supervisor may be a non-Registered 

Person. However, for purposes of 

compliance with the Exchange’s 

supervision rules, a Participant would 

be required to assign a registered 

supervisor who would be responsible 

for periodically contacting such 

individual’s day-to-day supervisor to 

verify that the individual is not acting 

outside the scope of his or her assigned 

functions. If such individual is 

permissively registered as a 

representative, the registered supervisor 

must be registered as a representative or 

principal. If the individual is 

permissively registered as a principal, 

the registered supervisor must be 

registered as a principal.13

In light of proposed paragraph .01 

under Article 6, Rule 13, the Exchange 

proposes to replace Article 6, Rule 2(e) 

with proposed Article 6, Rule 2(d), as 

discussed below, which provides that 

Participants shall not register or 

maintain the registration of any person 

unless consistent with the requirements 

of proposed Article 6, Rule 13. 

3. Proposed Paragraph .02 of the 

Interpretations and Policies of Article 6, 

Rule 13—Qualification Examinations 

and Waivers of Examinations 14

Proposed paragraph .02, provides that 

before the registration of a person as a 

representative can become effective 

under proposed Article 6, Rule 13, such 

person must pass the SIE and an 

appropriate representative-level 

qualification examination as specified 

in proposed Article 6, Rule 14(b).15

Proposed paragraph .02 also provides 

that before the registration of a person 

as a principal can become effective 

under proposed Article 6, Rule 13, such 

person must pass an appropriate 

principal-level qualification 

examination as specified in proposed 

Article 6, Rule 14(a). 

Further, proposed paragraph .02 

provides that if a Registered Person’s job 

functions change and he or she needs to 

become registered in another 

representative-level category, he or she 

would not need to pass the SIE again. 

Rather, the Registered Person would 

need to pass only the appropriate 

representative-level qualification 

examination. 

Moreover, proposed paragraph .02 

provides that all associated persons, 

such as associated persons whose 

functions are solely and exclusively 

clerical or ministerial, are eligible to 

take the SIE. Proposed paragraph .02 

also provides that individuals who are 

not associated persons of firms, such as 

members of the general public, are 

eligible to take the SIE. The Exchange 

believes that expanding the pool of 

individuals who are eligible to take the 

SIE would enable prospective securities 

industry professionals to demonstrate to 

prospective employers a basic level of 

knowledge prior to submitting a job 

application. Further, this approach 

would allow for more flexibility and 

career mobility within the securities 

industry. While all associated persons of 

firms as well as individuals who are not 

associated persons would be eligible to 

take the SIE pursuant to the proposed 

rule, passing the SIE alone would not 

qualify them for registration with the 

Exchange. Rather, to be eligible for 

registration with the Exchange, an 

individual must pass an applicable 

representative or principal qualification 

examination and complete the other 

requirements of the registration process. 

Proposed paragraph .02 also provides 

that the Exchange may, in exceptional 

cases and where good cause is shown 

waive the applicable qualification 

examination(s) and accept other 

standards as evidence of an applicant’s 

qualifications for registration. In light of 

these provisions, the Exchange proposes 

to delete current paragraph .02 under 

Article 6, Rule 3, as discussed below. 

The proposed rule further provides that 

the Exchange will only consider 

examination waiver requests submitted 

by a Participant for individuals 

associated with the Participant who are 

seeking registration in a representativeor principal-level registration category. 

Moreover, the proposed rule states that 

the Exchange will consider waivers of 

the SIE alone or the SIE and the 

representative- and principal-level 

examination(s) for such individuals. 

The Exchange would not consider a 

waiver of the SIE for non-associated 

persons or for associated persons who 

are not registering as representatives or 

principals. 

4. Proposed Paragraph .03 of the 

Interpretations and Policies of Article 6, 

Rule 13—Requirements for Registered 

Persons Functioning as Principals for a 

Limited Period 16

Proposed paragraph .03 provides that 

a Participant may designate any person 

currently registered, or who becomes 

registered, with the Participant as a 

representative to function as a principal 

for a limited period, provided that such 

person has at least 18 months of 

experience functioning as a registered 

representative with the five-year period 

immediately preceding the designation. 

The proposed rule is intended to ensure 

that representatives designated to 

function as principals for the limited 

period under the proposal have an 

appropriate level of registered 

representative experience. The proposed 

rule clarifies that the requirements of 

the rule apply to designations to any 

principal category, including those 

categories that are not subject to a 

prerequisite representative-level 

registration requirement, such as the 

Financial and Operations Principal 

registration category.17

The proposed rule also clarifies that 

the individual must fulfill all applicable 

prerequisite registration, fee and 

examination requirements before his or 

her designation as a principal. Further, 


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18The proposed rule is substantially similar to 

NYSE National Rule 2.1210, Commentary .04. 

19The proposed rule is substantially similar to 

NYSE National Rule 2.120, Commentary .05. 

20The proposed rule is substantially similar to 

NYSE National Rule 2.120, Commentary .06. 

21See Article 6, Rule 11(a). 

22See Article 6, Rule 11(b). 

23Pursuant to amended Article 6, Rule 11(a), as 

described in detail below, each specified Registered 

Person is required to complete the Regulatory 

Element initially within 120 days after the person’s 

second registration anniversary date and, thereafter, 

within 120 days after every third registration 

anniversary date. A Registered Person who has not 

completed the Regulatory Element program within 

the prescribed time frames will have his or her 

registrations deemed inactive and designated as 

‘‘CE inactive’’ on the CRD system until such time 

as the requirements of the program have been 

satisfied. A CE inactive person is prohibited from 

performing, or being compensated for, any activities 

requiring registration, including supervision. 

Moreover, if a Registered Person is CE inactive for 

a two-year period, the Exchange will 

administratively terminate the person’s registration 

status. The two-year period would be calculated 

from the date the person becomes CE inactive. In 

either case, such person must requalify (or obtain 

a waiver of the applicable qualification 

examination(s)) to be re-eligible for registration. 

24See proposed Article 1, Rule 1(yy). 

the proposed rule provides that in no 

event may such person function as a 

principal beyond the initial 120 

calendar days without having 

successfully passed an appropriate 

principal qualification examination. The 

proposed rule also provides an 

exception to the experience requirement 

for principals who are designated by a 

Participant to function in other 

principal categories for a limited period. 

Specifically, the proposed rule states 

that a Participant may designate any 

person currently registered, or who 

becomes registered, with the Participant 

as a principal to function in another 

principal category for 120 calendar days 

before passing any applicable 

examinations. 

5. Proposed Paragraph .04 of the 

Interpretations and Policies of Article 6, 

Rule 13—Rules of Conduct for Taking 

Examinations and Confidentiality of 

Examinations 18

Proposed paragraph .04 states that 

associated persons taking the SIE would 

be subject to the SIE Rules of Conduct, 

and associated persons taking a 

representative or principal examination 

would be subject to the Rules of 

Conduct for representative and 

principal examinations. Pursuant to 

proposed paragraph .04, a violation of 

the SIE Rules of Conduct or the Rules 

of Conduct for representative and 

principal examinations by an associated 

person would be deemed to be a 

violation of Article 9, Rule 2. Moreover, 

if an associated person is deemed to 

have violated the SIE Rules of Conduct 

or the Rules of Conduct for 

representative and principal 

examinations, the associated person 

may forfeit the results of the 

examination and may be subject to 

disciplinary action by the Exchange. 

Further, the proposed rule states that 

individuals taking the SIE who are not 

associated persons must agree to be 

subject to the SIE Rules of Conduct. 

Among other things, the SIE Rules of 

Conduct would require individuals to 

attest that they are not qualified to 

engage in the investment banking or 

securities business based on passing the 

SIE and would prohibit individuals 

from cheating on the examination or 

misrepresenting their qualifications to 

the public subsequent to passing the 

SIE. Moreover, non-associated persons 

may forfeit their SIE results and may be 

prohibited from retaking the SIE if the 

Exchange determines that they cheated 

on the SIE or that they misrepresented 

their qualifications to the public 

subsequent to passing the SIE. 

The proposed rule further notes that 

the Exchange considers all qualification 

examinations content to be highly 

confidential and that the removal of 

examination content from an 

examination center, reproduction, 

disclosure, receipt from or passing to 

any person, or use for study purposes of 

any portion of such qualification 

examination or any other use that would 

compromise the effectiveness of the 

examinations and the use in any manner 

and at any time of the questions or 

answers to the examinations is 

prohibited and would be deemed a 

violation of Article 9, Rule 2 (Just and 

Equitable Trade Principles). 

6. Proposed Paragraph .05 of the 

Interpretations and Policies of Article 6, 

Rule 13—Waiting Periods for Retaking a 

Failed Examination 19

Proposed paragraph .05 provides that 

any person who fails a qualification 

examination may retake that 

examination after 30 calendar days from 

the date of the person’s last attempt to 

pass that examination. The proposed 

rule further provides that if a person 

fails an examination three or more times 

in succession within a two-year period, 

he or she would be prohibited from 

retaking the examination either until a 

period of 180 calendar days from the 

date of the person’s last attempt to pass 

it. These waiting periods would apply to 

the SIE and the representative- and 

principal-level examinations. Moreover, 

the proposed rule provides that nonassociated persons taking the SIE must 

agree to be subject to the same waiting 

periods for retaking the SIE. 

7. Proposed Paragraph .06 Under the 

Interpretations and Policies of Article 6, 

Rule 13—All Registered Persons Must 

Satisfy the Regulatory Element of 

Continuing Education 20

Pursuant to Article 6, Rule 11, the 

continuing education requirements 

applicable to Registered Persons consist 

of a Regulatory Element 21 and a Firm 

Element.22 The Regulatory Element 

applies to Registered Persons and must 

be completed within prescribed time 

frames.23 The term ‘‘Registered Person’’ 

means any person registered with the 

Exchange under any registration 

categories specified under Articles 6 or 

16, any person who is permissively 

registered or any person designated as 

eligible for a waiver pursuant to the 

Rules.24 The Firm Element consists of 

annual, Participant-developed and 

administered training programs 

designed to keep covered Registered 

Persons current regarding securities 

products, services and strategies offered 

by the Participant. For purposes of the 

Firm Element, the term covered 

Registered Persons means any Person 

registered with a Participant who has 

direct contact with customers in the 

conduct of the Participant’s securities 

sales, trading and investment banking 

activities and to the immediate 

supervisors of such Persons. 

The Exchange believes that all 

Registered Persons, regardless of their 

activities, should be subject to the 

Regulatory Element of the CE 

requirements so that they can keep their 

knowledge of the securities industry 

current. Therefore, the Exchange 

proposes to adopt proposed paragraph 

.06 to clarify that all Registered Persons, 

including those who solely maintain a 

permissive registration, are required to 

satisfy the Regulatory Element, as 

specified under Article 6, Rule 11(a). 

The Exchange is making corresponding 

changes to Article 6, Rule 11(a), as well 

as additional changes to harmonize the 

Article 6, Rule 11(a) with NYSE 

National Rule 2.2(e)(1), as discussed 

below. The Exchange is also proposing 

to the substantively amend the Firm 

Element requirement under Article 6, 

Rule 11(b)(B)(ii) to require that the 

program used to implement a 

Participant’s training plan include at a 

minimum, in addition to the items 

already stated, training in ethics and 

professional responsibility, as described 

below. Individuals who have passed the 

SIE but not a representative- or 

principal-level examination and do not 

hold a registered position would not be 

subject to any CE requirements. 


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25The proposed rule is substantially similar to 

NYSE National Rule 2.120, Commentary .07. 26 In light of these provisions, the Exchange 

proposes to delete current Article 6, Rule 2(g), as 

discussed below. 

27The proposed rule is substantially similar to 

NYSE National Rule 2.120, Commentary .08. 28Proposed paragraph .08 of the Interpretations 

and Policies of Article 6, Rule 13 defines a 

‘‘financial services industry affiliate of an 

Participant’’ as a legal entity that controls, is 

controlled by or is under common control with an 

Participant and is regulated by the SEC, CFTC, state 

securities authorities, federal or state banking 

authorities, state insurance authorities, or 

substantially equivalent foreign regulatory 

authorities. 

29 Individuals would be eligible for a single, fixed 

seven-year period from the date of initial 

designation, and the period would not be tolled or 

renewed. 

30The following examples illustrate this point: 

Example 1. Firm A designates an individual as an 

FSA-eligible person by notifying the Exchange and 

files a Form U5. The individual joins Firm A’s 

financial services affiliate. Firm A does not submit 

a waiver request for the individual. After working 

for Firm A’s financial services affiliate for three 

years, the individual directly joins Firm B’s 

financial services affiliate for three years. Firm B 

then submits a waiver request to register the 

individual. 

Example 2. Same as Example 1, but the 

individual directly joins Firm B after working for 

Firm A’s financial services affiliate, and Firm B 

submits a waiver request to register the individual 

at that point in time. 

Example 3. Firm A designates an individual as an 

FSA-eligible person by notifying the Exchange and 

files a Form U5. The individual joins Firm A’s 

financial services affiliate for three years. Firm A 

then submits a waiver request to re-register the 

individual. After working for Firm A in a registered 

capacity for six months, Firm A re-designates the 

individual as an FSA-eligible person by notifying 

the Exchange and files a Form U5. The individual 

rejoins Firm A’s financial services affiliate for two 

years, after which the individual directly joins Firm 

B’s financial services affiliate for one year. Firm B 

then submits a waiver request to register the 

individual. 

Example 4. Same as Example 3, but the 

individual directly joins Firm B after the second 

period of working for Firm A’s financial services 

affiliate, and Firm B submits a waiver request to 

register the individual at that point in time. 

31The Exchange would consider a waiver of the 

representative-level qualification examination(s), 

the principal-level qualification examination(s) and 

the SIE, as applicable. 

Proposed paragraph .06, also provides 

that a Registered Person of a Participant 

who becomes CE inactive would not be 

permitted to be registered in another 

registration category with the 

Participant or be registered in any 

registration category with another 

Participant, until the person has 

satisfied the Regulatory Element. 

8. Proposed Paragraph .07 of the 

Interpretations and Policies of Article 6, 

Rule 13—Lapse of Registration and 

Expiration of the SIE 25

Proposed paragraph .07 provides that 

any person who was last registered as a 

representative two or more years 

immediately preceding the date of 

receipt by the Exchange of a new 

application for registration as a 

representative is required to pass a 

qualification examination for 

representatives appropriate to the 

category of registration as specified in 

proposed Article 6, Rule 14(b).26

Proposed paragraph .07 also sets forth 

that a passing result on the SIE would 

be valid for up to four years. Therefore, 

under the proposed rule change, an 

individual who passes the SIE and is an 

associated person of a Participant at the 

time would have up to four years from 

the date he or she passes the SIE to pass 

a representative-level examination to 

register as a representative with that 

Participant, or a subsequent Participant, 

without having to retake the SIE. In 

addition, an individual who passes the 

SIE and is not an associated person at 

the time would have up to four years 

from the date he or she passes the SIE 

to become an associated person of a 

Participant and pass a representativelevel examination and register as a 

representative without having to retake 

the SIE. 

Moreover, an individual holding a 

representative-level registration who 

leaves the industry after the effective 

date of this proposed rule change would 

have up to four years to re-associate 

with a Participant and register as a 

representative without having to retake 

the SIE. However, the four-year 

expiration period in the proposed rule 

change extends only to the SIE, and not 

the representative- and principal-level 

registrations. The representative- and 

principal-level registrations would 

continue to be subject to a two-year 

expiration period as is the case today. 

Finally, paragraph .07, clarifies that, 

for purposes of the proposed rule, an 

application would not be considered to 

have been received by the Exchange if 

that application does not result in a 

registration. 

9. Proposed Paragraph .08 of the 

Interpretations and Policies of Article 6, 

Rule 13—Waiver of Examinations for 

Individuals Working for a Financial 

Services Industry Affiliate of a 

Participant 27

Proposed paragraph .08, provides the 

process for individuals working for a 

financial services industry affiliate of a 

Participant 28 to terminate their 

registrations with the Participant and be 

granted a waiver of their requalification 

requirements upon re-registering with a 

Participant, provided the firm that is 

requesting the waiver and the 

individual satisfy the criteria for a 

Financial Services Affiliate (‘‘FSA’’) 

waiver. 

Under the proposed waiver process, 

the first time a Registered Person is 

designated as eligible for a waiver based 

on the FSA criteria, the Participant with 

which the individual is registered 

would notify the Exchange of the FSA 

designation. The Participant would 

concurrently file a full Form U5 

terminating the individual’s registration 

with the firm, which would also 

terminate the individual’s other SRO 

and state registrations. To be eligible for 

initial designation as an FSA-eligible 

person by a Participant, an individual 

must have been registered for a total of 

five years within the most recent 10- 

year period prior to the designation, 

including for the most recent year with 

that Participant. An individual would 

have to satisfy these preconditions only 

for purposes of his or her initial 

designation as an FSA-eligible person, 

and not for any subsequent FSA 

designation(s). Thereafter, the 

individual would be eligible for a 

waiver for up to seven years from the 

date of initial designation,29 provided 

that the other conditions of the waiver, 

as described below, have been satisfied. 

Consequently, a Participant other than 

the Participant that initially designated 

an individual as an FSA-eligible person 

may request a waiver for the individual 

and more than one Participant may 

request a waiver for the individual 

during the seven-year period.30

An individual designated as an FSAeligible person would be subject to the 

Regulatory Element of CE while working 

for a financial services industry affiliate 

of a Participant. The individual would 

be subject to a Regulatory Element 

program that correlates to his or her 

most recent registration category, and 

CE would be based on the same cycle 

had the individual remained registered. 

If the individual fails to complete the 

prescribed Regulatory Element during 

the 120-day window for taking the 

session, he or she would lose FSA 

eligibility (i.e., the individual would 

have the standard two-year period after 

termination to re-register without 

having to retake an examination). The 

Exchange is making corresponding 

changes to Article 6, Rule 11, as 

described below. 

Upon registering an FSA-eligible 

person, a firm would file a Form U4 and 

request the appropriate registration(s) 

for the individual. The firm would also 

submit an examination waiver request 

to the Exchange,31 similar to the process 

used today for waiver requests, and it 

would represent that the individual is 

eligible for an FSA waiver based on the 

conditions set forth below. The 

Exchange would review the waiver 

request and make a determination of 


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32For example, if a Participant submits a waiver 

request for an FSA-eligible person who has been 

working for a financial services affiliate of the 

Participant for three years and re-registers the 

individual, the Participant could subsequently file 

a Form U5 and re-designate the individual as an 

FSA-eligible person. Moreover, if the individual 

works with a financial services affiliate of the 

Participant for another three years, the Participant 

could submit a second waiver request and reregister the individual upon returning to the 

Participant. 

33The proposed rule is substantially similar to 

NYSE National Rule 2.1210, Commentary .09. 

34Like NYSE National, the Exchange is not 

adopting the following categories from the FINRA 

Filing because Participants do not engage in the 

type of business that would require registration 

with the Exchange: Investment Banking Principal, 

Research Principal, Registered Options Principal, 

Government Securities Principal, Investment 

Company and Variable Contracts Products 

Principal, Direct Participation Programs Principal, 

Private Securities Offerings Principal, Supervisory 

Analyst, Operations Professional, Investment 

Banking Representative, Research Analyst, 

Investment Company and Variable Contracts 

Products Representative, Direct Participation 

Programs Representative, and Private Securities 

Offering Representative. Also, like NYSE National, 

the Exchange is also not adopting the following 

categories because the FINRA Filing eliminated 

them: Order Processing Assistant Representative, 

United Kingdom Securities Representative, 

Canadian Securities Representative, Options 

Representative, Corporate Securities Representative 

and Government Securities Representative. 

35See e.g., NYSE National Rule 2.1210, 

Commentary .09. 

36The proposed rule is substantially similar to 

NYSE National Rule 2.1220(a)(2). 

whether to grant the request within 30 

calendar days of receiving the request. 

The Exchange would summarily grant 

the request if the following conditions 

are met: 

(1) Prior to the individual’s initial 

designation as an FSA-eligible person, 

the individual was registered for a total 

of five years within the most recent 10- 

year period, including for the most 

recent year with the Participant that 

initially designated the individual as an 

FSA-eligible person; 

(2) The waiver request is made within 

seven years of the individual’s initial 

designation as an FSA-eligible person 

by a Participant; 

(3) The initial designation and any 

subsequent designation(s) were made 

concurrently with the filing of the 

individual’s related Form U5; 

(4) The individual continuously 

worked for the financial services 

affiliate(s) of a Participant since the last 

Form U5 filing; 

(5) The individual has complied with 

the Regulatory Element of CE; and 

(6) The individual does not have any 

pending or adverse regulatory matters, 

or terminations, that are reportable on 

the Form U4, and has not otherwise 

been subject to a statutory 

disqualification while the individual 

was designated as an FSA-eligible 

person with a Participant. 

Following the Form U5 filing, an 

individual could move between the 

financial services affiliates of a 

Participant so long as the individual is 

continuously working for an affiliate. 

Further, a Participant could submit 

multiple waiver requests for the 

individual, provided that the waiver 

requests are made during the course of 

the seven-year period.32 An individual 

who has been designated as an FSAeligible person by a Participant would 

not be able to take additional 

examinations to gain additional 

registrations while working for a 

financial services affiliate of a 

Participant. 

10. Proposed Paragraph .09 of the 

Interpretations and Policies of Article 6, 

Rule 13—Status of Persons Serving in 

the Armed Forces of the United States 33

Proposed paragraph .09 provides 

specific relief to Registered Persons 

serving in the Armed Forces of the 

United States. Among other things, the 

proposed rule permits a Registered 

Person of a Participant who volunteers 

for or is called into active duty in the 

Armed Forces of the United States to be 

registered in an inactive status and 

remain eligible to receive ongoing 

transaction-related compensation. The 

proposed rule also includes specific 

provisions regarding the deferment of 

the lapse of registration requirements for 

formerly Registered Persons serving in 

the Armed Forces of the United States. 

The proposed rule further requires that 

the Participant with which such person 

is registered promptly notify the 

Exchange of such person’s return to 

employment with the Participant. The 

proposed rule would require a 

Participant that is a sole proprietor to 

also similarly notify the Exchange of his 

or her return to participation in the 

investment banking or securities 

business. The proposed rule also 

provides that the Exchange would defer 

the lapse of the SIE for formerly 

Registered Persons serving in the Armed 

Forces of the United States. 

B. Proposed New Article 6, Rule 14— 

Registration Categories 34

1. Proposed Rule 14(a)(1)—Principal 

Article 6, Rule 2(c)(1) currently 

defines the term ‘‘Principal’’ to mean 

any Person associated with a Participant 

who are actively engaged in the 

management of the Participants’ 

securities business, including 

supervision, solicitation, conduct of 

business or the training of persons 

associated with a member for any of 

these functions are designated as 

Principals and such persons include: 

(A) Sole Proprietors; (B) Officers; (C) 

Partners; (D) Branch office managers; 

and (E) Directors. 

The Exchange is proposing to move 

the definition of ‘‘Principal’’ to 

proposed Article 6, Rule 14(a)(1), which 

is similar to current Article 6, Rule 

2(c)(1), except that proposed Rule 

14(a)(1) codifies the phrase ‘‘actively 

engaged in the management of the 

Participant’s securities business’’ to 

include the management of, and the 

implementation of corporate policies 

related to, such business. The term also 

includes managerial decision-making 

authority with respect to the 

Participant’s securities business and 

management-level responsibilities for 

supervising any aspect of such business, 

such as serving as a voting member of 

the Participant’s executive, management 

or operations committee. In addition, 

the term ‘‘principal’’ is lowercase to be 

stylistically consistent with the use of 

the term throughout NYSE National 

rules 35 and therefore the Exchange 

propose to replace a reference to 

‘‘Principal’’ under current Article 6, 

Rule 2(c) with ‘‘principal.’’ 

Correspondingly, the Exchange propose 

to delete current Article 6, Rule 2(c)(1) 

as repetitive. 

2. Proposed Rule 14(a)(2)—General 

Securities Principal 36

Proposed Rule 14(a)(2)(A) states that 

each principal as defined in proposed 

Rule 14(a)(1) is required to register with 

the Exchange as a General Securities 

Principal, subject to the following 

exceptions. The proposed rule provides 

that if a principal’s activities include the 

functions of a Compliance Officer, a 

Financial and Operations Principal (or 

an Introducing Broker-Dealer Financial 

and Operations Principal, as 

applicable), a Principal Financial 

Officer, a Principal Operations Officer, 

or a Securities Trader Principal, then 

the principal must appropriately register 

in one or more of these categories. 

Proposed Rule 14(a)(2)(A) further 

provides that if a principal’s activities 

are limited solely to the functions of a 

General Securities Sales Supervisor, 

then the principal may appropriately 

register in that category in lieu of 

registering as a General Securities 

Principal. 

Proposed Rule 14(a)(2)(B) requires 

that an individual registering as a 


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37The proposed rule is substantially similar to 

NYSE National Rule 2.1220(a)(3). 

38The proposed rule is substantially similar to 

NYSE National Rule 2.1220(a)(4). 39 In light of these provisions, the Exchange 

proposes to delete current Article 6, Rule 2(c)(3), as 

discussed below. 40The Exchange does not currently recognize the 

Introducing Broker-Dealer Financial and Operations 

Principal registration category. 

General Securities Principal satisfy the 

General Securities Representative 

prerequisite registration and pass the 

General Securities Principal 

qualification examination. Proposed 

Rule 14(a)(2)(B) also clarifies that an 

individual may register as a General 

Securities Sales Supervisor and pass the 

General Securities Sales Supervisor 

qualification examination in lieu of 

passing the General Securities Principal 

examination. 

Proposed Rule 14(a)(2)(B) also 

provides that, subject to the lapse of 

registration provisions in proposed 

paragraph .07 under Article 6, Rule 13, 

each person registered with the 

Exchange as a General Securities 

Principal on October 1, 2018 and each 

person who was registered with the 

Exchange as a Corporate Securities 

Representative and a General Securities 

Principal within two years prior to 

October 1, 2018 would be qualified to 

register as a General Securities Principal 

without having to take any additional 

qualification examinations, provided 

that such person’s supervisory 

responsibilities in the investment 

banking and securities business of a 

Participant are limited to corporate 

securities activities of the Participant. 

The proposed rule further provides that 

all other individuals registering as 

General Securities Principals after 

October 1, 2018 shall, prior to or 

concurrent with such registration, 

become registered as a General 

Securities Representative and either (1) 

pass the General Securities Principal 

qualification examination; or (2) register 

as a General Securities Sales Supervisor 

and pass the General Securities Sales 

Supervisor qualification examination. 

In light of proposed Rule 14(a)(2), the 

Exchange proposes to delete the portion 

of current Article 6, Rule 2(c) requiring 

that a person pass the ‘‘Series 24’’ exam 

as prerequisite to registering as a 

General Securities Principal, as 

discussed below. 

3. Proposed Rule 14(a)(3)—Compliance 

Officer 37

Proposed Rule 14(a)(3) establishes a 

Compliance Officer registration category 

and requires all persons designated as 

CCOs on Schedule A of Form BD to 

register as Compliance Officers, subject 

to an exception for Participants engaged 

in limited investment banking or 

securities business. The proposed rule 

only addresses the registration 

requirements for CCOs. However, 

consistent with proposed paragraph .01 

under Article 6, Rule 13 relating to 

permissive registrations, a firm may 

allow other associated persons to 

register as Compliance Officers. 

In addition, the Exchange is 

proposing to provide CCOs of firms that 

engage in limited investment banking or 

securities business with greater 

flexibility to satisfy the qualification 

requirements for CCOs. Specifically, 

proposed Rule 14(a)(3) set forth the 

following qualification requirements for 

Compliance Officer registration: 

• Subject to the lapse of registration 

provisions in proposed paragraph .07 

under Article 6, Rule 13, each person 

registered with the Exchange as a 

General Securities Representative and a 

General Securities Principal on October 

1, 2018 and each person who was 

registered with the Exchange as a 

General Securities Representative and a 

General Securities Principal within two 

years prior to October 1, 2018 would be 

qualified to register as Compliance 

Officers without having to take any 

additional examinations. In addition, 

subject to the lapse of registration 

provisions in proposed paragraph .07 

under Article 6, Rule 13, individuals 

registered as Compliance Officials in the 

CRD system on October 1, 2018 and 

individuals who were registered as such 

within two years prior to October 1, 

2018 would also be qualified to register 

as Compliance Officers without having 

to take any additional examinations. 

• All other individuals registering as 

Compliance Officers after October 1, 

2018 would have to: (1) Satisfy the 

General Securities Representative 

prerequisite registration and pass the 

General Securities Principal 

qualification examination; or (2) pass 

the Compliance Official qualification 

examination. 

• An individual designated as a CCO 

on Schedule A of Form BD of a 

Participant that is engaged in limited 

investment banking or securities 

business may be registered in a 

principal category under proposed 

Article 6, Rule 14(a) that corresponds to 

the limited scope of the Participant’s 

business. 

In light of proposed Rule 14(a)(3), the 

Exchange proposes to delete the portion 

of current Article 6, Rule 2(c) permitting 

a person pass the ‘‘Series 14’’ 

Compliance Official qualification exam 

in lieu of the ‘‘Series 24’’ exam as 

prerequisite to registering as a General 

Securities Principal, as discussed below. 

4. Proposed Rule 14(a)(4)—Financial 

and Operation Principal and 

Introducing Broker-Dealer Financial and 

Operations Principal 38

Proposed Rule 14(a)(4) provides that 

each principal who is responsible for 

the financial and operational 

management of a Participant that has a 

minimum net capital requirement of 

$250,000 under SEA Rules 15c3– 

1(a)(1)(ii) and 15c3–1(a)(2)(i), or a 

Participant that has a minimum net 

capital requirement of $150,000 under 

SEA Rule 15c–3–1(a)(8) must be 

designated as a Financial and 

Operations Principal (‘‘FINOP’’).39 In 

addition, proposed Rule 14(a)(4) 

provides that a principal who is 

responsible for the financial and 

operational management of a Participant 

that is subject to the net capital 

requirements of SEA Rule 15c3–1, other 

than a Participant that is subject to the 

net capital requirements of SEA Rules 

15c3–1(a)(1)(ii), (a)(2)(i) or (a)(8), must 

be designated and registered as either a 

Financial and Operations Principal or 

an Introducing Broker-Dealer Financial 

and Operations Principal.40 Financial 

and Operations Principals and 

Introducing Broker-Dealer Financial and 

Operation Principals are not subject to 

a prerequisite representative 

registration, but they must pass the 

Financial and Operations Principal or 

Introducing Broker-Dealer Financial and 

Operations Principal examination, as 

applicable. 

Additionally, proposed Rule 

14(a)(4)(B) requires a Participant to 

designate a Principal Financial Officer 

with primary responsibility for the dayto-day operations of the business, 

including overseeing the receipt and 

delivery of securities and funds, 

safeguarding customer and firm assets, 

calculation and collection of margin 

from customers and processing 

dividend receivable and payables and 

reorganization redemptions and those 

books and records related to such 

activities. Further, the proposed rule 

requires that a firm’s Principal Financial 

Officer and Principal Operations Officer 

qualify and register as Financial and 

Operations Principals or Introducing 

Broker-Dealer Financial and Operations 

Principals, as applicable. 

Because the financial and operational 

activities of Participants that neither 

self-clear nor provide clearing services 


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41The proposed rule is substantially similar to 

NYSE National Rule 2.1220(a)(5). 

42The proposed rule is substantially similar to 

NYSE National Rule 2.1220(a)(6). 

43The Exchange does not currently recognize the 

General Securities Sales Supervisor registration 

category. 

44An individual may also register as a General 

Securities Sales Supervisor by passing a 

combination of other principal-level examinations. 

45The proposed rule is substantially similar to 

NYSE National Rule 2.1220(b)(1). 

46The proposed rule is substantially similar to 

NYSE National Rule 2.1220(b)(2). 

47The proposed rule is substantially similar to 

NYSE National Rule 2.1220(b)(3). 48See e.g., NYSE National Rule 2.1220(b)(3); see 

also e.g., MIAX International Stock Exchange, LLC 

Rule 203(d). 

are more limited, such Participants may 

designate the same person as the 

Principal Financial Officer, Principal 

Operations Officer and Financial and 

Operations Principal or Introducing 

Broker-Dealer Financial and Operations 

Principal (that is, such Participants are 

not required to designate different 

persons to function in these capacities). 

Given the level of financial and 

operational responsibility at clearing 

and self-clearing members, the 

Exchange believes that it is necessary 

for such Participants to designate 

separate persons to function as Principal 

Financial Officer and Principal 

Operations Officer. Such persons may 

also carry out the other responsibilities 

of a Financial and Operations Principal, 

such as supervision of individuals 

engaged in financial and operational 

activities. In addition, the proposed rule 

provides that a clearing or self-clearing 

Participant that is limited in size and 

resources may request a waiver of the 

requirement to designate separate 

persons to function as Principal 

Financial Officer and Principal 

Operations Officer. 

In light of proposed Rule 14(a)(4), the 

Exchange proposes to delete current 

Article 6, Rule 2(c)(3), which describes 

the Limited Principal—Financial and 

Operations registration category, as 

discussed below. 

5. Proposed Rule 14(a)(5)—Securities 

Trader Principal 41

Proposed Rule 14(a)(5) requires that a 

principal responsible for supervising the 

securities trading activities specified in 

proposed Rule 14(b)(3) register as a 

Securities Trader Principal. The 

proposed rule requires that individuals 

registering as Securities Trader 

Principals must be registered as 

Securities Traders and pass the General 

Securities Principal qualification 

examination. 

In light of proposed Rule 14(a)(5), the 

Exchange proposes to delete current 

Article 6, Rule 2(c)(2), which describes 

the Securities Trader Principal 

registration category, as discussed 

below. 

6. Proposed Rule 14(a)(6)—General 

Securities Sales Supervisor 42

Proposed Rule 14(a)(6) provides that a 

principal may register with the 

Exchange as a General Securities Sales 

Supervisor if his or her supervisory 

responsibilities in the investment 

banking or securities business of a 

Participant are limited to the securities 

sales activities of the Participant, 

including the approval of customer 

accounts, training of sales and sales 

supervisory personnel and the 

maintenance of records of original entry 

or ledger accounts of the Participant 

required to be maintained in branch 

offices by Exchange Act record-keeping 

rules.43

A person registering as a General 

Securities Sales Supervisor must satisfy 

the General Securities Representative 

prerequisite registration and pass the 

General Securities Sales Supervisor 

examinations.44 Moreover, a General 

Securities Sales Supervisor is precluded 

from performing any of the following 

activities: (1) Supervision of the 

origination and structuring of 

underwritings; (2) supervision of 

market-making commitments; (3) 

supervision of the custody of firm or 

customer funds or securities for 

purposes of SEA Rule 15c3–3; or (4) 

supervision of overall compliance with 

financial responsibility rules. 

7. Proposed Rule 14(b)(1)— 

Representative 45

Proposed Rule 14(b)(1) defines a 

representative as any person associated 

with a Participant, including assistant 

officers other than principals, who is 

engaged in the Participant’s investment 

banking or securities business, such as 

supervision, solicitation, conduct of 

business in securities or the training of 

persons associated with a Participant for 

any of these functions. 

In light of proposed Rule 14(b)(1), the 

Exchange proposes to delete definition 

of ‘‘Representative’’ under current 

Article 6, Rule 2(b), as discussed below. 

8. Proposed Rule 14(b)(2)—General 

Securities Representative 46

Proposed Rule 14(b)(2)(A) states that 

each representative as defined in 

proposed Rule 14(b)(1) is required to 

register with the Exchange as a General 

Securities Representative, subject to the 

following exceptions. The proposed rule 

provides that if a representative’s 

activities include the function of a 

Securities Trader, then the 

representative must appropriately 

register in that category. 

The proposed rule further provides 

that, subject to the lapse of registration 

provisions in proposed paragraph .07 

under Article 6, Rule 13, each person 

registered with the Exchange as a 

General Securities Representative on 

October 1, 2018 and each person who 

was registered with the Exchange as a 

General Securities Representative 

within two years prior to October 1, 

2018 would be qualified to register as a 

General Securities Representative 

without having to take any additional 

qualification examinations. 

Additionally, the proposed rule would 

require that individuals registering as 

General Securities Representatives after 

October 1, 2018 shall, prior to or 

concurrent with such registration, pass 

the SIE and the General Securities 

Representative examination. 

9. Proposed Rule 14(b)(3)—Securities 

Trader 47

Proposed Rule 14(b)(3) provides that 

each representative as defined in 

proposed Rule 14(b)(1) is required to 

register as a Securities Trader if, with 

respect to transactions in equity 

(including equity options), preferred or 

convertible debt securities, such person 

is engaged in proprietary trading, the 

execution of transactions on an agency 

basis, or the direct supervision of such 

activities. The proposed rule provides 

an exception from the registration 

requirement for any associated person of 

a Participant whose trading activities 

are conducted primarily on behalf of an 

investment company that is registered 

with the SEC pursuant to the Investment 

Company Act and that controls, is 

controlled by, or is under common 

control with a Participant. The 

Exchange proposes to adopt NYSE 

National’s definition of Securities 

Trader in proposed Rule 14(b)(3) in 

order to align the text of the rule to that 

adopted by NYSE National and other 

exchanges.48

The proposed rule also requires that 

associated persons primarily 

responsible for the design, development 

or significant modification of 

algorithmic trading strategies (or 

responsible for the day-to-day 

supervision or direction of such 

activities) register as Securities Traders. 

Individuals registering as Securities 

Traders must pass the SIE and the 

Securities Trader Examination. 

Finally, the proposed rule provides 

that, subject to the lapse of registration 

provisions in proposed paragraph .07 

under Article 6, Rule 13, each person 

registered with the Exchange as a 


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49The proposed rule is substantially similar to 

NYSE National Rule 2.1220, Commentary .01. 

50The proposed rule is substantially similar to 

NYSE National Rule 2.1220, Commentary .02. 

51FINRA Rule 1220.02 also includes Options 

Representative and Registered Options Principal 

registration categories. Like NYSE National, the 

Exchange does not trade options and Participants of 

the Exchange therefore would not be required to 

register with the Exchange in those categories and 

therefore the Exchange is not adopting those 

categories within proposed paragraph .02. 

52The proposed rule is substantially similar to 

NYSE National Rule 2.1220, Commentary .03. 

53The proposed rule is substantially similar to 

NYSE National Rule 2.1230. 

54FINRA Rule 1230 provides an exemption from 

registration with FINRA to persons associated with 

a FINRA member whose functions are solely and 

exclusively clerical or ministerial and persons 

associated with a FINRA member whose functions 

are related solely and exclusively to (i) effecting 

transactions on the floor of a national securities 

exchange and who are appropriately registered with 

such exchange; (ii) effecting transactions in 

municipal securities; (iii) effecting transactions in 

commodities; or (iv) effecting transactions in 

security futures, provided that any such person is 

registered with a registered futures association. 

Participants of the Exchange do not solely and 

exclusively engage in any of the foregoing 

transactions and therefore, like NYSE National, the 

Exchange is not adopting that portion of FINRA 

Rule 1230. 

55The proposed rule is substantially similar to 

NYSE National Rule 2.1230, Commentary .01. 

Securities Trader on October 1, 2018 

and each person who was registered 

with the Exchange as a Securities Trader 

within two years prior to October 1, 

2018 would be qualified to register as a 

Securities Trader without having to take 

any additional qualification 

examinations. Additionally, the 

proposed rule would require that 

individuals registering as Securities 

Traders after October 1, 2018 shall, prior 

to or concurrent with such registration, 

pass the SIE and the Securities Trader 

qualification examination. 

10. Proposed Paragraph .01 of the 

Interpretations and Policies of Rule 14— 

Foreign Registrations 49

Proposed paragraph .01 states that 

individuals who are in good standing as 

representatives with the Financial 

Conduct Authority in the United 

Kingdom or with a Canadian stock 

exchange or securities regulator would 

be exempt from the requirement to pass 

the SIE, and thus would be required 

only to pass a specialized knowledge 

examination to register with the 

Exchange as a representative. The 

proposed approach would provide 

individuals with a United Kingdom or 

Canadian qualification more flexibility 

to obtain a representative-level 

registration. Additionally, proposed 

paragraph .01 provides that, subject to 

the lapse of registration provisions in 

proposed paragraph .07 under Article 6, 

Rule 13, each person who is registered 

with the Exchange as a United Kingdom 

Securities Representative or a Canada 

Securities Representative on October 1, 

2018 and each person who was 

registered with the Exchange in such 

categories within two years prior to 

October 1, 2018 would be eligible to 

maintain such registrations with the 

Exchange. However, if persons 

registered in such categories 

subsequently terminate such 

registration(s) with the Exchange and 

the registration remains terminated for 

two or more years, they would not be 

eligible to re-register in such categories. 

11. Proposed Paragraph .02 of the 

Interpretations and Policies of Rule 14— 

Additional Qualification Requirements 

for Persons Engaged in Security 

Futures 50

Proposed paragraph .02 states that 

each person who is registered with the 

Exchange as a General Securities 

Representative, United Kingdom 

Securities Representative, Canada 

Securities Representative, or General 

Securities Sales Supervisor shall be 

eligible to engage in security futures 

activities as a representative or 

principal, as applicable, provided that 

such individual completes a Firm 

Element program as set forth in Article 

6, Rule 11(b) that addresses security 

futures products before such person 

engages in security futures activities.51

12. Proposed Paragraph .03 of the 

Interpretations and Policies of Rule 14— 

Scope of General Securities Sales 

Supervisor Registration Category 52

Proposed paragraph .03 explains the 

purpose of the General Securities Sales 

Supervisor registration category. The 

General Securities Sales Supervisor 

category is an alternate category of 

registration designed to lessen the 

qualification burdens on principals of 

general securities firms who supervise 

sales. Without this category of limited 

registration, such principals would be 

required to separately qualify pursuant 

to the rules of FINRA, the MSRB, the 

NYSE and the options exchanges. While 

persons may continue to separately 

qualify with all relevant self-regulatory 

organizations, the General Securities 

Sales Supervisor examination permits 

qualification as a supervisor of sales of 

all securities through one registration 

category. Persons registered as General 

Securities Sales Supervisors may also 

qualify in any other category of 

principal registration. Persons who are 

already qualified in one or more 

categories of principal registration may 

supervise sales activities of all securities 

by also qualifying as General Securities 

Sales Supervisors. 

The proposed rule further provides 

that any person required to be registered 

as a principal who supervises sales 

activities in corporate, municipal and 

option securities, investment company 

products, variable contracts, and 

security futures (subject to the 

requirements of paragraph .02 under 

Rule 14) may be registered solely as a 

General Securities Sales Supervisor. In 

addition to branch office managers, 

other persons such as regional and 

national sales managers may also be 

registered solely as General Securities 

Sales Supervisors as long as they 

supervise only sales activities. 

C. Proposed Article 6, Rule 15— 

Associated Persons Exempt From 

Registration 53

Proposed Rule 15 provides an 

exemption from registration with the 

Exchange for certain associated persons. 

Specifically, the proposed rule provides 

that persons associated with a 

Participant whose functions are solely 

and exclusively clerical or ministerial 

would be exempt from registration.54

1. Proposed Paragraph .01 of the 

Interpretations and Policies of Article 6, 

Rule 15—Registration Requirements for 

Associated Persons Who Accept 

Customer Orders 55

Proposed paragraph .01, clarifies that 

the function of accepting customer 

orders is not considered clerical or 

ministerial and that associated persons 

who accept customer orders under any 

circumstances are required to be 

appropriately registered. However, the 

proposed rule provides that an 

associated person is not accepting a 

customer order where occasionally, 

when an appropriately Registered 

Person is unavailable, the associated 

person transcribes the order details and 

the Registered Person contacts the 

customer to confirm the order details 

before entering the order. 

In light of proposed Rule 15, the 

Exchange proposes conforming 

amendments to current Article 6, Rule 

2(d)—Persons Exempt from Registration 

(proposed Article 6, Rule 2(c)), as 

discussed below. 

D. Amendments to Article 1, Rule 1 

(Definitions) 

Current paragraph .01 under Article 6, 

Rule 11 provides that ‘‘[f]or the 

purposes of this Rule, the term 

‘registered person’ means any 

Participant, registered representative or 

other person registered required to be 

registered under Exchange rules.’’ The 

Exchange now proposes to amend the 


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56Subsequent paragraphs under amended Article 

6, Rule 2 will be revised accordingly. 

57See NYSE National Rule 2.1220(b)(1). 

58NYSE National Rule 2.1220(a)(1). 

definition to include, in addition to 

those persons required to register with 

the Exchange, those persons that are 

permissively registered under proposed 

paragraph .01 under Article 6, Rule 13 

or any person that received a waiver 

under the Rules, such as pursuant to 

paragraphs .02 or .08 under Article 6, 

Rule 13. Accordingly, the Exchange 

proposes to (1) amend current paragraph 

.01 under Article 6, Rule 11 to provide 

that the term ‘‘Registered Person’’ is 

defined under proposed Article 1, Rule 

1(yy); (2) adopt a new definition of 

‘‘Registered Person’’ similar to NYSE 

National Rule 2.2(e) under proposed 

Article 1, Rule 1(yy) (as the term is used 

throughout Article 6 and not only under 

Article 6, Rule 11), which provides that 

‘‘Registered Person’’ shall mean any 

person registered with the Exchange 

under any registration categories 

specified under proposed Articles 6 and 

16, any person who is permissively 

registered or any person designated as 

eligible for a waiver pursuant to the 

Rules; and (4) capitalize all references to 

‘‘registered person’’ throughout 

amended Article 6. 

E. Amendments to Article 6, Rule 2 

(Registration and Approval of 

Participant Personnel) 

1. Proposed Rule 2(a)—Registration of 

Representatives 

Current Rule 2(a) provides, among 

other things, that all Representatives 

shall be registered as such with the 

Exchange in the category of registration 

appropriate to the function to be 

performed and requires individual 

associated persons to submit the 

appropriate application for registration, 

pass appropriate qualification 

examinations, submit required 

registration and examination fees and 

comply with continuing education 

requirements. 

In light of the new definition of 

‘‘representative’’ under proposed Article 

6, Rule 14(b)(1), as described above, the 

Exchange proposes to amend the current 

rule to provide that the term 

‘‘representative’’ is defined under 

proposed Article 6, Rule 14(b)(1) and 

that representatives shall be registered 

as such with the Exchange in the 

category of registration appropriate to 

the function to be performed, pursuant 

to amended Article 6, Rule 3, as 

described below, and proposed Article 

6, Rule 13, as described above. 

Moreover, the Exchange proposes to 

delete the current definition of 

‘‘representative’’ under current Article 

6, Rule 2(b) 56 and replace all references 

to ‘‘Representative’’ or 

‘‘Representatives’’ under Article 6 with 

‘‘representative’’ or ‘‘representatives,’’ 

respectively. The Exchange notes that 

the term ‘‘representative’’ is not 

capitalized under the NYSE National 

rules.57

2. Proposed Rule 2(b)—Registration of 

Principals 

Current Rule 2(c) provides that all 

persons engaged or to be engaged in the 

securities business of a Participant who 

are to function as a Principal shall be 

registered with the Exchange as a 

General Securities Principal, unless the 

Principal meets the requirements under 

current Rule 2(c) and each Principal 

shall pass the Series 24 or Series 14 

exam, as applicable, pursuant to current 

Article 6, Rule 3(b). 

In light of the new definition of 

‘‘principal’’ under proposed Article 6, 

Rule 14(a)(1), as described above, and 

the provisions related to principal 

registration categories and requirements 

are now under proposed Article 6, Rule 

14(a)(1), proposed Rule 2(b) provides 

that the term ‘‘principal’’ is defined 

under proposed Article 6, Rule 14(a)(1) 

and that all persons engaged or to be 

engaged in the securities business of a 

Participant who are to function as a 

principal shall be registered with the 

Exchange in the category of registration 

appropriate to the function to be 

performed, pursuant to amended Article 

6, Rule 3 and proposed Article 6, Rule 

13. Moreover, the Exchange proposes to 

omit provisions requiring each principal 

to pass the Series 24 or Series 14 exam, 

as applicable, under proposed Rule 2(b) 

as repetitive of new provisions under 

proposed Article 6, Rules 14(a)(2)— 

General Securities Principal and (a)(3)— 

Compliance Officer, as described above. 

In addition, the Exchange proposes to 

delete the current definition of 

‘‘Principal’’ under current Rule 2(c)(1) 

given the new definition of ‘‘principals’’ 

under proposed Article 6, Rule 14(a)(1) 

and to replace a reference to ‘‘Principal’’ 

with ‘‘principal’’ under current Rule 

2(c) (proposed Rule 2(b)). The Exchange 

notes that the term ‘‘principal’’ is not 

capitalized under the NYSE National 

rules.58

Furthermore, the Exchange propose to 

delete current Rule 2(c)(2), which 

describes the Securities Trader Principal 

registration category, as repetitive of 

proposed Article 6, Rule 14(a)(5); and 

delete current Rule 2(c)(3), which 

describes the Limited Principal— 

Financial and Operations registration 

category, as repetitive of proposed 

Article 6, Rule 14(a)(4). In light of these 

deletions, current Rule 2(c)(4) will 

become proposed Rule 2(b)(1). 

Finally, the Exchange proposes to 

consolidate current Rules 2(c)(5)— 

Requirement of Two Registered 

Principals for Participants and (c)(6)— 

Waiver of Two Principal Requirement 

into proposed Rule 2(b)(2). Specifically, 

current Rule 2(c)(5) provides that a 

Participant shall have at least two 

officers or partners who are registered as 

principals with respect to each aspect of 

the Participant’s securities business 

pursuant to the applicable provisions of 

Rule 3 of this Article and this 

requirement applies to applicants 

seeking admission as Participants and 

existing Participants. Current Rule 

2(c)(5) also provides that in addition to 

the two registered principals, 

Participants shall also have at least one 

person qualified for registration as a 

FINOP pursuant to current Article 6, 

Rule 3(c). In turn, current Rule 2(c)(6) 

provides that based upon the written 

application of the Participant or 

prospective Participant, the Exchange 

may waive the requirement to maintain 

two principals if the Participant 

demonstrates conclusively that only one 

individual acting in such capacity 

should be required to register. Current 

Rule 2(c)(6) also provides that a 

Participant that conducts a proprietary 

trading business only and has 25 or 

fewer representatives shall only be 

required to have one officer or partner 

who is registered as a Principal. Current 

Rule 2(c)(6) further provides that a 

Participant shall be considered to 

conduct only proprietary trading if the 

Participant has the following 

characteristics: (A) The Participant is 

not required by Section 15(b)(8) of the 

Exchange Act to become a FINRA 

member; (B) All funds used or proposed 

to be used by the Participant are the 

Participant’s own capital, traded 

through the Participant’s own accounts; 

(C) The Participant does not, and will 

not, have customers; and (D) All persons 

registered on behalf of the Participant 

acting or to be acting in the capacity of 

a trader must be owners of, employees 

of, or contractors to the Participant. 

Proposed Rule 2(b)(2) is similar to 

NYSE National Rule 2.2(c)(2) and 

largely retains the substance of current 

Rules 2(c)(5) and (6). Specifically, 

proposed Rule 2(b)(1) provides as 

follows: 

Each Participant, other than a sole 

proprietorship is required to register at 

least two Principals with the Exchange; 

provided, however, that a proprietary 

trading firm with 25 or fewer 

representatives shall only be required to 

register one principal with the 


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59See supra note 56. 

60 Id. 

61The proposed change is substantially similar to 

that contained in FINRA Rule 1210.10. 

Exchange. A person registered solely as 

a Financial and Operations Principal or 

an Introducing Broker-Dealer Financial 

and Operations Principal (‘‘FINOP’’), as 

defined under Article 6, Rule 14(a)(4), 

does not count toward the two-principal 

requirement and shall not be qualified 

to function in a principal capacity with 

responsibility over any area of business 

activity not described under Article 6, 

Rule 14(a)(4). The Exchange may waive 

the provisions of this paragraph (b)(2) in 

situations that indicate conclusively 

that only one person associated with an 

applicant for membership should be 

required to register as a principal. For 

purposes of this paragraph (b)(2), a 

‘‘proprietary trading firm’’ shall mean a 

Participant meeting the following 

characteristics: It trades its own capital, 

does not have customers, excluding 

broker-dealers, and is not a FINRA 

member. To qualify for this definition, 

the funds used by a proprietary trading 

firm must be exclusively firm funds, all 

trading must be in the firm’s accounts, 

and traders must be owners of, 

employees of, or contractors to the firm. 

3. Proposed Rule 2(c)—Persons Exempt 

From Registration 59

Current Rule 2(d) (Persons Exempt 

from Registration) the following persons 

associated with a Participant are not 

required to be registered with the 

Exchange: (1) Persons associated with a 

Participant whose functions are solely 

and exclusively clerical or ministerial; 

(2) persons associated with a Participant 

who are not actively engaged in the 

securities business; (3) individual 

Participants and individual associated 

persons whose functions are related 

solely and exclusively to the 

Participant’s need for nominal corporate 

officers or for capital participation; and 

(4) individual associated persons whose 

functions are related solely and 

exclusively to: (A) Transactions in 

commodities; or (B) transactions in 

security futures; or (C) effecting 

transactions at another national 

securities exchange and who are 

registered as members with such 

exchange. 

In light of proposed Article 6, Rule 15 

(Associated Persons Exempt from 

Registration), the Exchange does not 

propose to maintain the current 

exemption from registration provisions 

as it is inconsistent with NYSE National 

Rule 2.1230. Accordingly, proposed 

Rule 2(c) provides that only persons 

who qualify for exemption from 

registration pursuant to proposed 

Article 6, Rule 15 shall be exempt from 

registration with the Exchange. 

4. Proposed Rule 2(d)—Impermissible 

Registrations 60

Current Rule 2(e) (Other Registration 

Requirements) provides several bases 

upon which a person may not be 

registered with a Participant. The rule 

provides that a Participant shall not 

make application for the registration of 

any person associated with the 

Participant where there is no intent to 

employ such person in the securities 

business of the Participant. The rule 

also states that a Participant shall not 

maintain a registration with the 

Exchange for any person who is no 

longer active in the Participant’s 

securities business; who is no longer 

functioning in the registered capacity; or 

where the sole purpose is to avoid an 

examination requirement. However, 

proposed paragraph .01 of Article 6, 

Rule 13 provides that a Participant may 

make application for or maintain the 

registration as a representative or 

principal of any associated person of a 

Participant and any individual engaged 

in the securities business of a foreign 

securities affiliate or subsidiary of the 

Participant. Therefore, without 

amending current Rule 2(e), a person 

may be eligible for permissive 

registration pursuant to proposed 

paragraph .01 under Article 6, Rule 13, 

but may be prohibited from such 

registration pursuant to current Rule 

2(e). 

In light of proposed paragraph .01 

under Article 6, Rule 13, the Exchange 

proposes to delete current Rule 2(e) in 

its entirety and to adopt proposed Rule 

2(d), which provides that Participants 

shall not register or maintain the 

registration of any person unless 

consistent with the requirements of 

proposed Article 6, Rule 13.61

F. Amendments to Article 6, Rule 3— 

Training and Examination of Registrants 

1. Proposed Rule 3(a)—Registration 

Requirements of Representatives 

Current Rule 3(a)(1) provides the 

current registration requirements of 

representatives. The Exchange now 

proposes to amend Rule 2(a) to replace 

references to the ‘‘Series 7 General 

Securities Representative examination’’ 

and the ‘‘Series 57 Securities Trader 

Examination’’ with ‘‘General Securities 

Representative qualification 

examination (‘Series 7’)’’ and 

‘‘Securities Trader Examination (‘Series 

57’),’’ respectively, so as to be consistent 

with references to the examinations 

under NYSE National Rule 2.2, 

Commentaries .01 and .03. The 

Exchange also proposes to amend the 

rule to require that representatives pass 

the SIE in addition to the Series 7 or 

Series 57, as applicable, which is 

consistent with proposed Article 6, 

Rules 14(b)(2)(B) and 14(b)(3)(B). 

Finally, the Exchange proposes replace 

language describing persons who must 

register with the Exchange as a 

Securities Trader with new language 

providing that each representative 

meeting the definition of a Securities 

Trader under proposed Article 6, Rule 

14(b)(3) must pass the Series 57 and the 

SIE. 

Current Rule 3(a)(2) provides that a 

representative that is engaged solely in 

‘‘securities trading activities’’ shall not 

be required to registered as a General 

Securities Representative. In light of 

proposed Article 6, Rule 14(b)(3), which 

outlines the types of trading activities 

that would require a representative to 

register as a Securities Trader, the 

Exchange proposes to amend Rule 

3(a)(2) to clarify that ‘‘securities trading 

activities’’ are described under proposed 

Article 6, Rule 14(b)(3). 

2. Proposed Rule 3(b)—Supervisory 

Requirements and Registration 

Current Rule 3(b) provides general 

registration and supervisory 

requirements of principals. The 

Exchange now proposes to replace 

references to the ‘‘General Securities 

Principal examination, Series 24’’ with 

‘‘General Securities Principal 

qualification examination (‘Series 24’),’’ 

so as to be stylistically consistent with 

the proposed references to the Series 7 

and Series 57 exams under proposed 

Article 6, Rule 3(a)(1). In addition, the 

Exchange proposes to replace citations 

to the current definition of ‘‘Principal’’ 

under current Article 6, Rule 2(c)(1) 

with the amended definition of 

‘‘principal’’ under proposed Article 6, 

Rule 14(a). Finally, the Exchange 

proposes replace the references to 

‘‘successfully complete and maintain’’ 

with the word ‘‘pass,’’ so as to be 

stylistically consistent with references 

under proposed Article 6, Rule 14 to 

‘‘passing’’ or having to ‘‘pass’’ a 

qualification examination. 

Current Rule 3(b)(1) provides a 

‘‘Securities Trading Exception’’ 

permitting the Chief Compliance Officer 

of a Participant Firm that engages solely 

in securities trading activities to 

complete and maintain the Compliance 

Officer Exam (Series 14) as an 

alternative qualification to the Series 24. 

The Exchange now proposes to 

eliminate this exception and to 

generally provide that the Exchange will 

accept the New York Stock Exchange 


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62The proposed rule is substantially similar to 

NYSE National Rule 2.2, Commentary .02. 

63See CHX Article 1, Rule 1(gg) defining 

‘‘Institutional Broker Representative.’’ 

64See supra Section 3(a)(D). 

65The proposed change is substantially similar to 

that contained in NYSE National Rule 2.2(e). 

(‘‘NYSE’’) Compliance Official 

Examination (‘‘NYSE Series 14’’) as an 

alternative qualification to the Series 24 

to register as a principal an individual 

identified as the Chief Compliance 

Officer on the Participant’s Form BD.62

3. Proposed Rule 3(c)—Financial and 

Operations Principals 

Current Rule 3(c) requires that each 

Participant designate one individual as 

a FINOP, who must pass the Financial 

Operations Principal examination, 

Series 27. The Exchange now proposes 

to replace reference to ‘‘Limited 

Principal—Financial and Operations 

(‘FINOP’)’’ with ‘‘FINOP,’’ as the 

abbreviation is already established 

under proposed Article 6, Rule 2(b)(2). 

In addition, the Exchange proposes to 

adopt additional language permitting a 

Participant to designate an ‘‘Introducing 

Broker-Dealer FINOP,’’ in lieu of a 

FINOP, if applicable, and requiring all 

Registered Persons designated as an 

Introducing Broker-Dealer FINOP to 

pass the Introducing Broker-Dealer 

Financial and Operations Principal 

qualification examination (‘‘Series 28’’). 

Finally, the Exchange propose to replace 

a reference to the ‘‘Financial and 

Operations Principal examination, 

Series 27’’ with ‘‘Financial and 

Operations Principal qualification 

examination (‘Series 27’),’’ so as to be 

stylistically consistent with the 

proposed references to other 

examinations, such as the Series 7 and 

Series 57 exams under proposed Article 

6, Rule 3(a)(1). 

4. Proposed Rule 3(d)—Institutional 

Broker Representatives 

Current Rule 3(d) provides 

registration requirements for 

Institutional Broker Representatives, 

which is a registration category unique 

to CHX.63 In addition, current paragraph 

.01(a) under Article 6, Rule 3 provides 

that all applicants seeking to register as 

Institutional Broker Representatives 

must successfully complete the 

Institutional Broker Exam. The 

Exchange now proposes to amend 

current Rule 3(d) by adding an 

introductory sentence that consolidates 

and replaces current paragraph .01(a) 

under Article 6, Rule 3 and the first 

sentence of current Rule 3(d), which 

states that all applicants seeking to 

register as Institutional Broker 

Representatives, as defined under 

current Article 1, Rule 1(gg), must pass 

the Exchange’s Institutional Broker 

Examination and comply with the 

provisions of Article 17. The Exchange 

also proposes to replace references to 

‘‘Series 7 General Securities 

Representative examination,’’ ‘‘Series 57 

Securities Trader Exam’’ and the 

General Securities Principal Series 24 

exam’’ with ‘‘General Securities 

Representative qualification 

examination,’’ ‘‘Securities Trader 

qualification examination’’ and the 

‘‘General Securities Principal 

qualification examination,’’ which is 

stylistically consistent with references 

to the examinations under proposed 

Article 6, Rules 3(a) and 3(b). In 

addition, the Exchange proposes to 

amend the rule to require that 

Institutional Broker Representatives that 

are required to register with the 

exchange as a representative pass the 

SIE in addition to the Series 7 or Series 

57, as applicable, which is consistent 

with proposed Article 6, Rules 

14(b)(2)(B) and 14(b)(3)(B). Also, in light 

of the amendments to Rule 3(b)(1) 

described above, the Exchange proposes 

to replace reference to the Securities 

Trading Exception, which will be 

eliminated, with a reference to the 

NYSE Compliance Official Examination. 

Finally, the Exchange proposes to 

clarify that the term ‘‘Firm’’ refers to 

‘‘Participant Firm.’’ 

5. Deleting Current Paragraph .02 Under 

Article 6, Rule 3—Waiver of the 

Examination Requirement 

In light of proposed paragraph .02 

under Article 6, Rule 13, which adopts 

new requirements related to, among 

other things, waiver of examination 

requirements, as described above, the 

Exchange propose to delete current 

paragraph .02 in its entirety. 

G. Amendments to Article 6, Rule 10 

(Fingerprinting) 

Current Rule 10 provides that each 

Participant is responsible for ensuring 

compliance with Section 17(f)(2) of the 

Exchange Act and Rule 17f–2 under the 

Exchange Act, regarding the 

fingerprinting of securities industry 

personnel. The rule further provides 

that each Participant shall submit the 

fingerprints of its associated persons to 

the FINRA Web CRD prior to such 

persons performing the functions listed 

under Rule 17f–2 under the Exchange 

Act. The Exchange now propose to 

amend the fingerprinting requirement to 

be substantively similar to NYSE 

National Rule 2.2, Commentary .08 and 

FINRA Rule 1010(d). Specifically, the 

Exchange propose to replace the second 

sentence under current Rule 10 with the 

following: 

Upon filing an electronic Form U4 on 

behalf of a person applying for 

registration, a Participant shall promptly 

submit fingerprint information for that 

person. The Exchange may make a 

registration effective pending receipt of 

the fingerprint information. If a 

Participant fails to submit the 

fingerprint information within 30 days 

after the Exchange receives the 

electronic Form U4, the person’s 

registration shall be deemed inactive. In 

such case, the Exchange shall notify the 

Participant that the person must 

immediately cease all activities 

requiring registration and is prohibited 

from performing any duties and 

functioning in any capacity requiring 

registration. The Exchange shall 

administratively terminate a registration 

that is inactive for a period of two years. 

A person whose registration is 

administratively terminated may 

reactivate the registration only by 

reapplying for registration and meeting 

the qualification requirements under the 

Rules. Upon application and a showing 

of good cause, the Exchange may extend 

the 30-day period. 

H. Amendments to Article 6, Rule 11— 

Continuing Education for Registered 

Persons 

Current Article 6, Rule 11 provides 

the continuing education requirements 

of certain Registered Persons subsequent 

to their initial qualification and 

registration with the Exchange, and 

includes a Regulatory Element and a 

Firm Element. The Regulatory Element 

applies to Registered Persons and 

consists of periodic computer-based 

training on regulatory, compliance, 

ethical, supervisory subjects and sales 

practice standards. The Firm Element 

consists of at least an annual, memberdeveloped and administered training 

programs designed to keep Registered 

Persons current regarding securities 

products, services and strategies offered 

by the member. 

As noted above,64 proposed Article 1, 

Rule 1(yy) includes within the 

definition of a Registered Person any 

person who is permissively registered 

pursuant to proposed paragraph .01 

under Article 6, Rule 13 and any person 

designated as eligible for a waiver 

pursuant to proposed paragraph .08 

under Article 6, Rule 13.65 The purpose 

of this change is to ensure all Registered 

Persons, including those with 

permissive registrations, keep their 

knowledge of the securities industry 

current. The inclusion of persons 


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66The proposed change is substantially similar to 

that contained in NYSE National Rule 2.2(e)(1)(A). 

67The proposed change is substantially similar to 

that contained in NYSE National Rule 2.2(e)(1)(B). 

68The proposed change is substantially similar to 

that contained in NYSE National Rule 2.2(e)(1)(B). 

69The proposed change is substantially similar to 

that contained in NYSE National Rule 2.2(e)(1)(C). 

designated as eligible for a waiver under 

the term ‘‘Registered Person’’ 

corresponds to the requirements of 

proposed paragraph .08 under Article 6, 

Rule 13. 

1. Regulatory Element 

The Exchange propose to amend 

Article 6, Rule 11(a) to provide that the 

content of the Regulatory Element of the 

program shall be determined by the 

Exchange and shall be appropriate to 

the status of the person subject to this 

Rule, which is consistent with NYSE 

National Rule 2.2(e)(1)(A). 

Also, the Exchange proposes to 

amend Article 6, Rule 11(a) to provide, 

consistent with proposed paragraph .08 

under Article 6, Rule 13, that a waivereligible person would be subject to a 

Regulatory Element program that 

correlates to his or her most recent 

registration category, and that the 

content of the Regulatory Element 

would be based on the same cycle had 

the individual remain registered.66

Furthermore, the Exchange proposes 

to amend Article 6, Rule 11(a)(1) to 

provide that any person whose 

registration has been deemed inactive 

under the rule may not accept or solicit 

business or receive any compensation 

for the purchase or sale of securities. 

The proposed amendment provides, 

however, that such person may receive 

trail or residual commissions resulting 

from transactions completed before the 

inactive status, unless the Participant 

with which the person is associated has 

a policy prohibiting such trail or 

residual commissions.67 The proposed 

amendment also provides that a 

registration that is inactive for a period 

of two years will be administratively 

terminated and that a person whose 

registration is so terminated may 

reactivate the registration only by 

reapplying for registration and meeting 

the qualification requirements of the 

applicable provisions of these Rules. 

Accordingly, the Exchange proposes to 

delete current paragraph .05 under 

Article 6, Rule 11 as repetitive. Finally, 

the amended rule also states that the 

Exchange may, upon application and a 

showing of good cause, allow for 

additional time for a Registered Person 

satisfy the program requirements and if 

a person designated as eligible for a 

waiver pursuant to paragraph .08 under 

Article 6, Rule 13 fails to complete the 

Regulatory Element within the 

prescribed time frames, the person shall 

no longer be eligible for such a waiver.68

In addition, under current Article 6, 

Rule 11(a)(2), a Registered Person is 

required to retake the Regulatory 

Element in the event that such person 

(A) is subject to any statutory 

disqualification as defined in Section 

3(a)(39) of the Exchange Act; (B) is 

subject to suspension or to the 

imposition of a fine of $5,000 or more 

for violation of any provision of any 

securities law or regulation, or any 

agreement with or rule or standard of 

conduct of any securities governmental 

agency, securities self-regulatory 

organization, or as imposed by any such 

regulatory or self-regulatory 

organization in connection with a 

disciplinary proceeding; or (C) is 

ordered as a sanction in a disciplinary 

action to retake the Regulatory Element 

by any securities governmental agency 

or self-regulatory organization. The 

Exchange proposes to amend Rule 

11(a)(2) to provide an exception to a 

waiver-eligible person from retaking the 

Regulatory Element and satisfy all of its 

requirements.69

Current Rule 11(a)(2) also provides 

that re-taking of the Regulatory Element 

shall commence with participation 

within 120 days of the Registered 

Person becoming subject to the statutory 

disqualification, pursuant to Rule 

11(a)(2)(A), or the disciplinary action 

becoming final, pursuant to either Rule 

11(a)(2)(B) or (C). To better comport to 

Rule 11(a)(2), the Exchange proposes to 

amend current paragraph .03 under 

Article 6, Rule 11 to clarify that the new 

base date for a Registered Person subject 

to statutory disqualification is the date 

on which such person became subject to 

statutory disqualification. Specifically, 

amended paragraph .03 provides that a 

Registered Person who becomes subject 

to a disciplinary action as enumerated 

in subsections (a)(2)(A)–(C) of the Rule, 

will be required to satisfy the 

requirements of the Regulatory Element 

of the continuing education program 

with the date that the person becomes 

subject to statutory disqualification, in 

the case of subsection (a)(2)(A) of the 

Rule, or the person’s disciplinary action 

becomes final, in the case of subsections 

(a)(2)(B) or (C) of the Rule, as the 

person’s new base date. 

Also, the Exchange proposes to 

update current Article 6, Rule 11(a)(3) to 

provide that the ‘‘S201 Supervisor 

Program,’’ which is the Regulatory 

Element program for Principals, is 

required for those persons registered 

with the Exchange as either an 

Introducing Broker-Dealer Financial and 

Operations Principals or General 

Securities Sales Supervisors, which are 

two registration categories that the 

Exchange is proposing to adopt under 

proposed Article 6, Rules 14(a)(4) and 

14(a)(6), respectively. 

Moreover, the Exchange proposes to 

adopt Article 6, Rule 11(a)(5) related to 

reassociation in a registered capacity, 

which is substantively similar to NYSE 

National Rule 2.2(e)(1)(D) and provides 

that any Registered Person who has 

terminated association with a 

Participant and who has, within two 

years of the date of termination, become 

reassociated in a registered capacity 

with a Participant shall participate in 

the Regulatory Element at such intervals 

that may apply (second anniversary and 

every three years thereafter) based on 

the initial registration anniversary date 

rather than based on the date of 

reassociation in a registered capacity. 

Accordingly, the Exchange proposes to 

delete the first paragraph under current 

paragraph .04 under Article 6, Rule 11 

as repetitive. 

Finally, the Exchange propose to 

adopt Article 6, Rule 11(a)(6), which is 

substantively similar to NYSE National 

Rule 2.2(e)(1)(E) and provides that each 

Participant shall designate and identify 

to the Exchange (by name and email 

address) an individual or individuals 

responsible for receiving email 

notifications provided via Web CRD 

regarding when a Registered Person is 

approaching the end of his or her 

Regulatory Element time frame and 

when a Registered Person is deemed 

inactive due to failure to complete the 

requirements of the Regulatory Element 

program. The rule also provides that 

each Participant shall identify, review, 

and, if necessary, update the 

information regarding the Regulatory 

Element contact person(s) with Web 

CRD. 

2. Firm Element 

The Exchange propose to capitalize 

the term ‘‘Covered Registered Persons’’ 

defined under current Article 6, Rule 

11(b)(1), which is also capitalized under 

NYSE National Rule 2.2(e)(2), and to 

make conforming amendments 

throughout Rule 11(b). 

Also, current Article 6, Rule 

11(b)(2)(B) provides that programs used 

to implement a Participant’s training 

program must be appropriate for the 

business of the Participant and, at a 

minimum must cover specific matters 

concerning securities products, services, 

and strategies offered by the Participant. 

The Exchange proposes to amend the 


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70The proposed change is substantially similar to 

that contained in NYSE National Rule 2.2(e)(2)(ii). 

71 15 U.S.C. 78f(b). 

72 15 U.S.C. 78f(b)(5). 

73 15 U.S.C. 78s(b)(3)(A)(iii). 74 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 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. 75 17 CFR 240.19b–4(f)(6). 76 17 CFR 240.19b–4(f)(6)(iii). 77For purposes only of waiving the 30-day 

operative delay, the Commission has also 

Continued 

current rule to expand the minimum 

standard for such training programs by 

requiring that, at a minimum, a firm’s 

training program must also cover 

training in ethics and professional 

responsibility.70

I. Amendments to Article 16, Rule 3— 

Obligations of Market Maker Authorized 

Traders (‘‘MMATs’’) 

Current Article 16, Rule 3(b)(2) 

provides that to be eligible for 

registration as a MMAT, a person must 

successfully complete the Series 57 

Securities Trader Examination and 

complete any other training and/or 

certification programs as may be 

required by the Exchange. In light of the 

adoption of the SIE, the Exchange now 

proposes to amend the rule to require 

that MMATs successfully complete both 

the Securities Trader Examination and 

the SIE. In addition, the Exchange 

proposes to delete a reference to the 

‘‘Series 57’’ such that reference to the 

‘‘Securities Trader Examination’’ is 

stylistically similar to a reference to the 

examination under proposed Article 6, 

Rule 3(a). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Securities Exchange 

Act of 1934 (the ‘‘Act’’),71 in general, 

and furthers the objectives of Section 

6(b)(5),72 in particular, because it is 

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 

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. 

The Exchange believes that the 

proposed rule change will streamline, 

and bring consistency and uniformity 

to, the registration rules, which will, in 

turn, assist Participants and their 

associated persons in complying with 

these rules and improve regulatory 

efficiency. The proposed rule change 

will also improve the efficiency of the 

examination program, without 

compromising the qualification 

standards. In addition, the proposed 

rule change will expand the scope of 

permissive registrations, which, among 

other things, will allow Participants to 

develop a depth of associated persons 

with registrations to respond to 

unanticipated personnel changes and 

will encourage greater regulatory 

understanding. Further, the proposed 

rule change will provide a more 

streamlined and effective waiver 

process for individuals working for a 

financial services industry affiliate of a 

Participant, and it will require such 

individuals to maintain specified levels 

of competence and knowledge while 

working in areas ancillary to the 

investment banking and securities 

business. 

Finally, the Exchange believes that, 

with the introduction of the SIE and 

expansion of the pool of individuals 

who are eligible to take the SIE, the 

proposed rule change has the potential 

of enhancing the pool of prospective 

securities industry professionals by 

introducing them to securities laws, 

rules and regulations and appropriate 

conduct before they join the industry in 

a registered capacity. 

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 

proposed amendments are intended to 

promote transparency in the Exchange’s 

rules, and consistency with the rules of 

other SROs with respect to the 

examination, qualification, and 

continuing education requirements 

applicable to Participants and their 

registered personnel. The Exchange 

believes that in that regard that any 

burden on competition would be clearly 

outweighed by the important regulatory 

goal of ensuring clear and consistent 

requirements applicable across SROs, 

avoiding duplication, and mitigating 

any risk of SROs implementing different 

standards in these important areas. 

Further, the Exchange does not 

believe that the proposed amendments 

will affect competition among securities 

markets since all SROs are expected to 

adopt similar rules with uniform 

standards for qualification, registration 

and continuing education requirements. 

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 73 and Rule 

19b–4(f)(6) thereunder.74 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. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 75 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),76 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 immediately upon 

filing. The Exchange has represented 

that, to the Exchange’s knowledge, the 

waiver of the operative delay would not 

adversely or unfairly affect current or 

prospective Participants, and would 

make the Exchange’s qualification 

requirements consistent with those of 

NYSE National and FINRA, which were 

implemented on October 1, 2018. 

Waiver of the 30-day operative delay 

will allow the Exchange to harmonize 

its registration, examination and 

continuing education requirements with 

the rules of FINRA and the exchanges, 

as of the date of filing so that registered 

persons will be subject to consistent 

requirements across the industry. 

Therefore, the Commission believes that 

the wavier is consistent with the 

protection of investors and hereby 

waives the 30-day operative delay and 

designates the proposal operative on 

December 18, 2018.77


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67390 Federal Register / Vol. 83, No. 248 / Friday, December 28, 2018 / Notices 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

78 15 U.S.C. 78s(b)(2)(B). 

79 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 84594 

(Nov. 14, 2018), 83 FR 58642. 

4 15 U.S.C. 78s(b)(2). 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

1 15 U.S.C.78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b-4. 

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) 78 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CHX–2018–07 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–CHX–2018–07. 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 (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 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. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CHX–2018–07 and should 

be submitted on or before January 18, 

2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.79

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28193 Filed 12–27–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84888; File No. SR–MIAX– 

2018–34] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Designation of Longer Period 

for Commission Action on Proposed 

Rule Change To Amend Exchange 

Rule 519, MIAX Order Monitor; 

Exchange Rule 519A, Risk Protection 

Monitor; and Rule 517, Quote Types 

Defined 

December 20, 2018. 

On November 9, 2018, Miami 

International Securities Exchange, LLC 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Exchange Rules 519 (MIAX 

Order Monitor), 519A (Risk Protection 

Monitor), and 517 (Quote Types 

Defined). The proposed rule change was 

published for comment in the Federal 

Register on November 20, 2018.3 The 

Commission has received no comments 

on the proposal. 

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day for this filing 

is January 4, 2019. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change. 

Accordingly, pursuant to Section 

19(b)(2) of the Act 5 and for the reasons 

stated above, the Commission 

designates February 18, 2019, as the 

date by which the Commission shall 

either approve or disapprove, or 

institute proceedings to determine 

whether to disapprove, the proposed 

rule change (File No. SR–MIAX–2018– 

34). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28185 Filed 12–27–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84882; File No. SR– 

NYSENAT–2018–27] 

Self-Regulatory Organizations; NYSE 

National, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Make Non-Substantive 

Changes to Its Certificate of 

Incorporation 

December 20, 2018. 

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 December 

18, 2018, NYSE National, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE National’’) 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 selfregulatory organization. The 

Commission is publishing this notice to 


amozie on DSK3GDR082PROD with NOTICES1