Federal Register / Vol. 76, No. 156 / Friday, August 12, 2011 / Notices 50281 

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. 

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

4 17 CFR 240.19b–4(f)(6). 

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

subparagraph (f)(6) thereunder. 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 make the new 

registration category available near the 

same time as other exchanges.14 The 

Commission, therefore, designates the 

proposal 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 

Number SR–BX–2011–053 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–BX–2011–053. 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–BX–2011–053 and should 

be submitted on or before September 2, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20580 Filed 8–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65055; File No. SR– 

NASDAQ–2011–106] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; 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–42 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 Exchange filed the proposal as a 

‘‘non-controversial’’ 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 

NASDAQ is filing with the 

Commission a proposal to amend 

NASDAQ Rule 1022, Categories of 

Principal Registration, to adopt a new 

limited category of principal registration 

for proprietary traders, as described 

further below. NASDAQ will implement 

the proposal upon notice to its 

membership. 

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 

The purpose of the proposed rule 

change is to recognize a new category of 

limited principal registration. 

Specifically, NASDAQ proposes to 

recognize the new Proprietary Trader 

Principal category as a limited principal 

category in Rule 1022(h). Currently, 

NASDAQ 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 NASDAQ 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 category of 

registration as specified by the 

NASDAQ Board. Pursuant to Rule 

1021(b), persons associated with a 

member, enumerated in subparagraphs 

(1) through (5) hereafter, who are 

actively engaged in the management of 

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50282 Federal Register / Vol. 76, No. 156 / Friday, August 12, 2011 / Notices 

5See NASDAQ Rule 1032(c). 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78(c)(3)(B) [sic]. 

8 15 U.S.C. 78f(b)(5). 

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

10 17 CFR 240.19b–4(f)(6). 

11 Id. 

12 Id. 

the member’s investment banking or 

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. Such persons shall include: 

(1) Sole Proprietors; (2) Officers; (3) 

Partners; (4) Managers of Offices of 

Supervisory Jurisdiction; and (5) 

Directors of Corporations. 

Rule 1021(e), Requirement of Two 

Registered Principals for Members, 

spells out that a NASDAQ member, 

except a sole proprietorship, shall have 

at least two officers or partners who are 

registered as principals with respect to 

each aspect of the member’s investment 

banking and securities business 

pursuant to the applicable provisions of 

Rule 1022; provided, however, that a 

proprietary trading firm with 25 or 

fewer registered representatives shall 

only be required to have one officer or 

partner who is registered as a principal. 

Rule 1022 lists the categories of 

principal registration. In addition to 

‘‘General Securities Principal,’’ which is 

the broadest category, there are three 

[sic] limited categories of principal 

registration: Financial and Operations, 

Introducing Broker/Dealer Financial and 

Operations, Investment Company and 

Variable Contracts Products, and 

General Securities Sales Supervisor. 

NASDAQ proposes to add another 

category of limited principal. The new 

Proprietary Trader Principal category 

would be available for persons whose 

supervisory responsibilities in the 

investment banking and securities 

business are limited solely to the 

activities of a member that involve 

proprietary trading. Furthermore, it 

would require that he or she be 

registered pursuant to NASDAQ rules as 

a Proprietary Trader,5 be qualified to be 

so registered by passing the Series 24 

examination, and not function in a 

principal capacity with responsibility 

over any area of business activity other 

than proprietary trading. 

NASDAQ has been working with 

other exchanges and the Financial 

Industry Regulatory Authority 

(‘‘FINRA’’) to develop this registration 

category. This category is in lieu of 

registration as a General Securities 

Principal, for which the prerequisite 

qualification examination is the Series 

7. The appropriate qualification 

examination for the proposed new 

registration category of Proprietary 

Trader Principal is the Series 24, which 

is the same qualification required for 

registration as a General Securities 

Principal; no new examination has been 

developed. However, the prerequisite 

examination for the new Proprietary 

Trader Principal category is the new 

Series 56. Accordingly, a person who 

has passed the Series 56 can register as 

a Proprietary Trader Principal and take 

the Series 24 examination, under this 

proposal, but cannot register as a 

General Securities Principal without 

first qualifying as a General Securities 

Representative and passing the Series 7. 

Thus, although the Series 24 will now 

be the appropriate qualification 

examination for both categories (General 

Securities Principal and Proprietary 

Trader Principal), different prerequisites 

apply and different registration 

categories result. 

NASDAQ believes that the new 

principal registration category is an 

appropriate corollary to the new 

Proprietary Trader representative 

registration category, filed separately, 

and reflects a substantial joint-exchange 

effort to develop a registration 

framework specific to principals 

supervising persons engaged in 

proprietary trading, market making and 

effecting transactions on behalf of 

broker-dealers. Furthermore, NASDAQ 

believes that the Series 24 is the 

appropriate examination for Proprietary 

Trader Principals, because it tests 

knowledge and understanding of 

supervision-related rules. 

The Proprietary Trader Principal 

registration counts towards the two 

principal requirements in Rule 1021(e). 

The Exchange believes that this is 

appropriate because the same 

comprehensive qualification 

examination, the Series 24, is required. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 6 in general, and furthers the 

objectives of: (1) Section 6(c)(3)(B) of the 

Act,7 pursuant to which a national 

securities exchange prescribes standards 

of training, experience and competence 

for members and their associated 

persons; and (2) Section 6(b)(5) of the 

Act,8 in that it is designed, among other 

things, to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest, by 

offering a new, limited principal 

registration category to NASDAQ 

members. NASDAQ believes that the 

requirements of this new category 

should help ensure that principals who 

supervise proprietary traders and 

proprietary trading are, and will 

continue to be, properly trained and 

qualified to perform their functions, 

because the new Proprietary Trader 

Principal category is limited and 

tailored to persons supervising 

proprietary trading functions. 

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 

Act9 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. NASDAQ requests a waiver of 

the 30-day operative delay in order to 

make the new registration available near 

the same time as other exchanges. The 

Commission is waiving the 30-day 

operative period for this filing so that it 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 76, No. 156 / Friday, August 12, 2011 / Notices 50283 

13For 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). 14 17 CFR 200.30–3(a)(12). 

will become operative upon filing.13

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 make the new 

registration category available 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 

Number SR–NASDAQ–2011–106 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–2011–106. 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–NASDAQ–2011–106 and 

should be submitted on or before 

September 2, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20579 Filed 8–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No. SSA–2011–0067] 

Finding Regarding Foreign Social 

Insurance or Pension System— 

Bulgaria 

AGENCY: Social Security Administration 

(SSA). 

ACTION: Notice of finding regarding 

foreign social insurance or pension 

system—Bulgaria. 

Finding: Section 202(t)(1) of the 

Social Security Act (42 U.S.C. 402(t)(1)) 

prohibits payment of monthly benefits 

to any individual who is not a United 

States citizen or national for any month 

after he or she has been outside the 

United States for 6 consecutive months. 

This prohibition does not apply to such 

an individual where one of the 

exceptions described in section 202(t)(2) 

through 202(t)(5) of the Social Security 

Act (42 U.S.C. 402(t)(2) through 

402(t)(5)) affects his or her case. 

Section 202(t)(2) of the Social 

Security Act provides that, subject to 

certain residency requirements of 

Section 202(t)(11), the prohibition 

against payment shall not apply to any 

individual who is a citizen of a country 

which the Commissioner of Social 

Security finds has in effect a social 

insurance or pension system which is of 

general application in such country and 

which: 

(a) Pays periodic benefits, or the 

actuarial equivalent thereof, on account 

of old age, retirement, or death; and 

(b) Permits individuals who are 

United States citizens but not citizens of 

that country and who qualify for such 

benefits to receive those benefits, or the 

actuarial equivalent thereof, while 

outside the foreign country regardless of 

the duration of the absence. 

The Commissioner of Social Security 

has delegated the authority to make 

such a finding to the Associate 

Commissioner of the Office of 

International Programs. Under that 

authority, the Associate Commissioner 

of the Office of International Programs 

has approved a finding that Bulgaria, 

beginning January 1, 2000, has a social 

insurance system of general application 

which: 

(a) Pays periodic benefits, or the 

actuarial equivalent thereof, on account 

of old age, retirement, or death; and 

(b) Permits United States citizens who 

are not citizens of Bulgaria to receive 

such benefits, or their actuarial 

equivalent, at the full rate without 

qualification or restriction while outside 

Bulgaria. 

Accordingly, it is hereby determined 

and found that Bulgaria has in effect, 

beginning January 1, 2000, a social 

insurance system which meets the 

requirements of section 202(t)(2) of the 

Social Security Act (42 U.S.C. 402(t)(2). 

In 1982, it was determined that while 

Bulgaria continued to meet the 

requirements of section 202(t)(2)(A), it 

no longer met the requirements of 

section 202(t)(2)(B). The effective date of 

the determination was July 7, 1981. 

Notice of the decision appeared in the 

Federal Register August 4, 1982. Based 

on this decision, citizens of Bulgaria 

could not meet the exception provided 

under section 202(t)(2) of the Social 

Security Act, nor could they meet the 

limited exceptions under section 

202(t)(4). 

Bulgaria instituted a new social 

insurance law that entered into force on 

January 1, 2000. The law incorporates 

the social insurance system as a 

modified first pillar. It adds a second 

pillar of mandatory individual accounts 

and a third pillar of voluntary 

individual accounts. The Bulgarian 

social insurance system provides old 

age, disability, and survivor’s benefits, 

as well as other types of social 

insurance. Information recently 

obtained from Bulgaria contains 

detailed information on the country’s 

social insurance system and its 

provisions. This information required a 

new determination under the section 

202(t)(2) provisions. 

mstockstill on DSK4VPTVN1PROD with NOTICES