Federal Register / Vol. 76, No. 155 / Thursday, August 11, 2011 / Notices 49809 

17 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. 64958 

(July 25, 2011) (SR–NASDAQ–2011–095). See also 

SR–NASDAQ–2011–107. 

4See, e.g., Securities Exchange Act Release Nos. 

63843 (February 4, 2011), 76 FR 7884 (February 11, 

2011) (SR–ISE–2010–115); and 63314 (November 

12, 2010), 75 FR 70957 (November 19, 2010) (SR– 

CBOE–2010–084). 

5One exchange has thus far filed a proposed rule 

change respecting the Series 56, which has become 

effective. See Securities Exchange Act Release No. 

64699 (June 17, 2011), 76 FR 36945 (June 23, 2011) 

(SR–CBOE–2011–056). 

6Proprietary trading firms do not have customers. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78(c)(3)(B) [sic]. 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of BX. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make publicly available. All 

submissions should refer to File 

Number SR–BX–2011–051 and should 

be submitted on or before September 1, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20357 Filed 8–10–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65040; File No. SR– 

NASDAQ–2011–108] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Proprietary Traders Qualification 

Examination (‘‘Series 56’’) 

August 5, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on August 1, 

2011, The NASDAQ Stock Market LLC 

(the ‘‘Exchange’’ or ‘‘NASDAQ’’) filed 

with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I and II, below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NASDAQ is filing with the 

Commission the content outline and 

selection specifications for the 

Proprietary Traders Qualification 

Examination (‘‘Series 56’’) program. 

NASDAQ will notify its membership 

when the examination becomes 

available. 

The text of the proposed rule change 

is available at http:/nasdaq.

cchwallstreet.com/, at NASDAQ’s 

principal office, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Recently, NASDAQ filed a proposed 

rule change to recognize a new category 

of limited representative registration for 

proprietary traders.3 Specifically, 

NASDAQ will recognize the new 

registration category ‘‘Proprietary 

Trader’’ and the new examination, the 

Series 56. The new Proprietary Trader 

category would be limited to persons 

engaged solely in proprietary trading. 

NASDAQ has been working with the 

Financial Industry Regulatory Authority 

(‘‘FINRA’’) and certain other exchanges, 

many of which have recently enhanced 

their registration requirements to 

require the registration of associated 

persons,4 to develop the content outline 

and qualification examination that 

would be applicable to proprietary 

traders. The Series 56 examination 

program is shared by NASDAQ and the 

following self-regulatory organizations 

(‘‘SROs’’): Boston Options Exchange; C2 

Options Exchange, Incorporated; 

Chicago Board Options Exchange, 

Incorporated; Chicago Stock Exchange, 

Incorporated; International Securities 

Exchange, LLC; NASDAQ OMX BX, 

Inc.; NASDAQ OMX PHLX LLC; 

National Stock Exchange, Incorporated; 

New York Stock Exchange, LLC; NYSE 

AMEX, Incorporated; and NYSE ARCA, 

Incorporated. Upon request by the SROs 

referenced above, FINRA staff convened 

a committee of industry representatives, 

NASDAQ staff and staff from the other 

SROs referenced above, to develop the 

criteria for the Series 56 examination 

program. This new qualification 

examination, the Series 56, was recently 

filed with the Commission.5

The Series 56 examination tests a 

candidate’s knowledge of proprietary 

trading generally and the industry rules 

applicable to trading of equity securities 

and listed options contracts. The Series 

56 examination covers, among other 

things, recordkeeping and recording 

requirements, types and characteristics 

of securities and investments, trading 

practices and display execution and 

trading systems. While the examination 

is primarily dedicated to topics related 

to proprietary trading, the Series 56 

examination also covers a few general 

concepts relating to customers.6

The qualification examination 

consists of 100 multiple choice 

questions. Candidates will have 150 

minutes to complete the exam. The 

content outline describes the following 

topical sections comprising the 

examination: Personnel, Business 

Conduct and Recordkeeping and 

Reporting Requirements, 9 questions; 

Markets, Market Participants, 

Exchanges, and Self Regulatory 

Organizations, 8 questions; Types and 

Characteristics of Securities and 

Investments, 20 questions; Trading 

Practices and Prohibited Acts, 50 

questions; and Display, Execution, and 

Trading Systems, 13 questions. 

Representatives from the applicable 

SROs intend to meet on a periodic basis 

to evaluate and, as necessary, update, 

the Series 56 examination program. 

NASDAQ understands that the other 

applicable SROs will also file with the 

Commission similar filings regarding 

the Series 56 examination program. 

NASDAQ proposes to implement the 

Series 56 examination program upon 

availability in WebCRD and notification 

to its membership. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 7 in general, and furthers the 

objectives of Section 6(c)(3)(B) of the 

Act,8 pursuant to which a national 

securities exchange prescribes standards 

of training, experience and competence 

for members and their associated 

persons, in particular, by offering a new, 

qualification examination for 


srobinson on DSK4SPTVN1PROD with NOTICES
49810 Federal Register / Vol. 76, No. 155 / Thursday, August 11, 2011 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). 

11 Id. 

12 Id. 

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

14For purposes only of waiving the operative 

delay of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). See also 17 CFR 200.30–3(a)(59). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

proprietary traders. This filing provides 

the content outline and relevant 

specifications for the Series 56 

examination program, which NASDAQ 

believes establishes the appropriate 

qualifications for this new registration 

category, because it tests the knowledge 

generally applicable to proprietary 

trading. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

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 

Pursuant to Section 19(b)(3)(A) of the 

Act 9 and Rule 19b–4(f)(6) 10 thereunder, 

the Exchange has designated this 

proposal as one that effects a change 

that: (i) Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest. Rule 19b–4(f)(6) 11

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. 

Under Rule 19b–4(f)(6) of the Act,12 a 

proposal does not become operative for 

30 days after the date of its filing, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest. The Exchange requests that the 

Commission waive the 30 day operative 

period for this filing so that it may 

become effective and operative upon 

filing with the Commission pursuant to 

Section 19(b)(3)(A) 13 of the Act and 

subparagraph (f)(6) thereunder. The 

Exchange believes waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public as 

a waiver will make the examination 

available as soon as possible to coincide 

with availability on another exchange. 

For the reasons stated above, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest and designates the 

proposal as operative upon filing.14

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

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 e-mail to rule-comments

@sec.gov. Please include File Number 

SR–NASDAQ–2011–108 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2011–108. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of 

NASDAQ. All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

publicly available. All submissions 

should refer to File Number SR– 

NASDAQ–2011–108 and should be 

submitted on or before September 1, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20370 Filed 8–10–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65049; File No. SR–Phlx– 

2011–103] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Rebates and Fees for Adding and 

Removing Liquidity in Select Symbols 

August 5, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 2 thereunder, 

notice is hereby given that, on August 

1, 2011, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Complex Order Fees in Section I of its 

Fee Schedule titled ‘‘Rebates and Fees 


srobinson on DSK4SPTVN1PROD with NOTICES