Federal Register / Vol. 76, No. 156 / Friday, August 12, 2011 / Notices 50277 

5 15 U.S.C. 78s(b)(7). 

6 17 CFR 200.30–3(a)(73). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5 15 U.S.C. 78s(b)(1). 

6 17 CFR 240.15b7–1. 

7 15 U.S.C. 78a et seq. 

perfecting the mechanism of a free and 

open market. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

OneChicago does not believe that the 

proposed rule change will have an 

impact on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Comments on the OneChicago 

proposed rule change have not been 

solicited and none have been received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change will be 

effective upon filing and operational on 

August 15, 2011. At any time within 60 

days of the date of effectiveness of the 

proposed rule change, the Commission, 

after consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refiled in accordance 

with the provisions of Section 19(b)(7) 

of the Act.5

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 rulecomments@sec.gov. Please include File 

Number SR–OC–2011–01 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–OC–2011–01. 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 the filing 

also will be available for inspection and 

copying at the principal office of the 

Exchange. All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–OC– 

2011–01 and should be submitted on or 

before September 2, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20576 Filed 8–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65054; File No. SR–ISE– 

2011–36] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Adopt the Content Outline 

for the Proprietary Traders 

Examination (Series 56) 

August 8, 2011. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on August 1, 

2011, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I and II below, which items 

have been prepared by the selfregulatory organization. The Exchange 

filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

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

Act 3 and Rule 19b–4(f)(6) thereunder.4

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 

Pursuant to the provisions of Section 

19(b)(1) of the Act,5 the Exchange is 

filing with the Commission the content 

outline for the Proprietary Traders 

Qualification Examination (‘‘Series 56’’) 

program. ISE is not proposing any 

textual changes to the Rules of ISE. 

The text of the proposed rule change 

is available on the Exchange’s Internet 

Web site at http://www.ise.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

sections A, B and C below, of the most 

significant aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Pursuant to Rule 15b7–1,6

promulgated under the Exchange Act,7

‘‘No registered broker or dealer shall 

effect any transaction in * * * any 

security unless any natural person 

associated with such broker or dealer 

who effects or is involved in effecting 

such transaction is registered or 

approved in accordance with the 

standards of training, experience, 

competence, and other qualification 

standards * * * established by the rules 

of any national securities exchange 

* * * ’’ ISE Rule 313 sets forth the 

requirements for registration and 

qualification of associated persons. 

Specifically, ISE Rule 313 provides that 

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50278 Federal Register / Vol. 76, No. 156 / Friday, August 12, 2011 / Notices 

8Under ISE’s rules, anyone functioning as a 

principal must register as such with the Exchange. 

The new examination will serve as a prerequisite 

to the Series 24 and the Series 9/10 examinations 

for principals who are engaged solely in proprietary 

trading. (Generally, all principals must qualify as 

representatives before qualifying as principals.) See 

Securities and [sic] Exchange Act Release No. 63843 

(February 4, 2011), 76 FR 7884 (SR–ISE–2010–115). 

9 In accordance with Rule 313, an individual 

associated person that is engaged in the supervision 

or monitoring of proprietary trading, market-making 

or brokerage activities and/or that is engaged in the 

supervision or training of those engaged in 

proprietary trading, market-making or brokerage 

activities with respect to those activities will be 

subject to heightened qualification requirements, as 

prescribed by the Exchange. 

10The Commission notes that proprietary trading 

firms do not have customers. 

11See Securities and Exchange Commission [sic] 

Release No. 64699 (June 17, 2011), 76 FR 36945 

(June 23, 2011) (SR–CBOE–2011–056). 

12The Series 56 examination became available in 

WebCRD for ISE members on June 20, 2011. 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(1). 

15 15 U.S.C. 78f(c)(3). 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f)(6). 

18 Id. 

individual associated persons that are 

‘‘engaged or to be engaged in the 

securities business of a Member shall be 

registered with the Exchange in the 

category of registration appropriate to 

the function to be performed as 

prescribed by the Exchange.’’ 8 Further, 

Rule 313 requires, among other things, 

that an individual associated person 

submit an application for registration 

and pass the appropriate qualification 

examination, as prescribed by the 

Exchange, before the registration can 

become effective. 

In accordance with .06 of the 

Supplementary Material to Rule 313, 

those individuals shall be considered to 

be ‘‘engaged in the securities business of 

a Member’’ and subject to the 

registration requirements if (i) The 

individual associated person conducts 

proprietary trading, acts as a marketmaker, effects transactions on behalf of 

a broker-dealer account, supervises or 

monitors proprietary trading, marketmaking or brokerage activities on behalf 

of the broker-dealer, supervises or 

conducts training for those engaged in 

proprietary trading, market-making or 

brokerage activities on behalf of a 

broker-dealer account; or (ii) the 

individual associated person engages in 

the management of one or more 

activities identified in (i) above as an 

officer, partner or director.9

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.10

The Series 56 examination program is 

shared by ISE and the following SelfRegulatory Organizations (‘‘SROs’’): 

Boston Options Exchange; Chicago 

Board Options Exchange, Inc. (‘‘CBOE’’); 

C2 Options Exchange, Incorporated; 

Chicago Stock Exchange, Incorporated; 

NASDAQ OMX, BX; NASDAQ OMX, 

PHLX; NASDAQ Stock Market 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, 

ISE staff and staff from the other SROs 

referenced above, to develop the criteria 

for the Series 56 examination program. 

As a result, ISE is proposing to set forth 

the content of the examination. 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 SROs, 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 shall meet on a periodic basis to 

evaluate and, as necessary, update, the 

Series 56 examination program. 

CBOE filed a similar filing with the 

Commission regarding the Series 56 

examination program 11 and ISE 

understands that the other applicable 

SROs will also file similar filings with 

the Commission. ISE proposes to 

implement the Series 56 examination 

program when this filing becomes 

effective.12 The Exchange will announce 

all relevant dates with respect to the 

Series 56 examination program through 

a Regulatory Information Circular. 

2. Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Act,13 in general, and furthers the 

objectives of Section 6(b)(1) 14 of the Act 

in particular, in that it is designed to 

enforce compliance by Exchange 

members and persons associated with 

its members with the rules of the 

Exchange. The Exchange also believes 

the proposed rule change furthers the 

objectives of Section 6(c)(3) 15 of the 

Act, which authorizes ISE to prescribe 

standards of training, experience and 

competence for persons associated with 

ISE members, in that this filing 

comprises the content outline and 

relevant specifications for the Series 56 

examination program. ISE believes the 

Series 56 examination program 

establishes the appropriate 

qualifications for an individual 

associated person that is required to 

register as a Proprietary Trader under 

Exchange Rule 313, including, but not 

limited to, Market-Makers, proprietary 

traders and individuals effecting 

transactions on behalf of other brokerdealers. The Series 56 addresses 

industry topics that establish the 

foundation for the regulatory and 

procedural knowledge necessary for 

individuals required to register as a 

Proprietary Trader. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition that 

is 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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

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

Act 16 and Rule 19b–4(f)(6) 17

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) 18 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 

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Federal Register / Vol. 76, No. 156 / Friday, August 12, 2011 / Notices 50279 

19 Id. 

20For 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). 

21 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

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,19 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 Commission is waiving the 

30-day operative period for this filing so 

that it may become effective and 

operative upon filing.20 The 

Commission believes waiving the 30- 

day operative delay is consistent with 

the protection of investors and the 

public interest as the waiver will allow 

the Exchange to adopt the content 

outline, and provide notice of having 

done so to associated persons of its 

members, near the same time as other 

exchanges. The Commission, therefore, 

designates the proposed rule change to 

be operative upon filing with the 

Commission. 

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 rulecomments@sec.gov. Please include File 

No. SR–ISE–2011–36 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–ISE–2011–36. 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 Commissions 

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. Copies of such filing 

also will be available for inspection and 

copying at the principal office of the 

ISE. All comments received will be 

posted without change; the Commission 

does not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–ISE–2011–36 and should be 

submitted by September 2, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20578 Filed 8–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65056; File No. SR–BX– 

2011–053] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Adopt a 

Limited Category of Principal 

Registration for Proprietary Traders 

August 8, 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 3, 

2011, NASDAQ OMX BX, Inc. 

(‘‘Exchange’’ or ‘‘BX’’) 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 

Exchange filed the proposal as a ‘‘noncontroversial’’ rule change pursuant to 

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

19b–4(f)(6) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposal from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

BX is filing with the Commission a 

proposed rule change to amend its Rule 

1022, Categories of Principal 

Registration, to adopt a new limited 

category of principal registration for 

proprietary traders, as described further 

below. BX will implement the proposal 

upon notice to its membership. 

The text of the proposed rule change 

is available at http://nasdaqomxbx. 

cchwallstreet.com/, at BX’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 

The purpose of the proposed rule 

change is to recognize a new category of 

limited principal registration. 

Specifically, the Exchange proposes to 

recognize the new Proprietary Trader 

Principal category as a limited principal 

category in Rule 1022(h). Currently, 

Exchange Rule 1021 requires all persons 

engaged or to be engaged in the 

investment banking or securities 

business of a member who are to 

function as principals shall be registered 

as such with the Exchange in the 

category of registration appropriate to 

the function to be performed as 

specified in Rule 1022. Before their 

registration can become effective, they 

shall pass a Qualification Examination 

for Principals appropriate to the 

mstockstill on DSK4VPTVN1PROD with NOTICES