Federal Register / Vol. 77, No. 31 / Wednesday, February 15, 2012 / Notices 8927 

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

2 17 CFR 240.19b-4. 

3Securities Exchange Act Release No. 66061 

(December 28, 2011), 77 FR 312 (‘‘Notice’’). 

4The Exchange stated that it believes that the 

continued reference to the Chief Executive Officer 

in Rule 2(c) represents an oversight in a 2006 

amendment to the rule. See Securities Exchange Act 

Release No. 54437 (September 13, 2006), 71 FR 

55037 (September 20, 2006) (SR–CHX–2005–06). 

5 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

6 15 U.S.C. 78f(b)(5). 

ACTION: Notice. 

SUMMARY: According to the provisions of 

section 10 of the Federal Advisory 

Committee Act (Pub. L. 92–463), notice 

is hereby given that an additional 

meeting of the Federal Prevailing Rate 

Advisory Committee will be held on 

Thursday, March 8, 2012. 

The meeting will start at 10 a.m. and 

will be held in Room 5A06A, U.S. 

Office of Personnel Management 

Building, 1900 E Street NW., 

Washington, DC. 

The Federal Prevailing Rate Advisory 

Committee is composed of a Chair, five 

representatives from labor unions 

holding exclusive bargaining rights for 

Federal blue-collar employees, and five 

representatives from Federal agencies. 

Entitlement to membership on the 

Committee is provided for in 5 U.S.C. 

5347. 

The Committee’s primary 

responsibility is to review the Prevailing 

Rate System and other matters pertinent 

to establishing prevailing rates under 

subchapter IV, chapter 53, 5 U.S.C., as 

amended, and from time to time advise 

the U.S. Office of Personnel 

Management. 

This scheduled meeting is open to the 

public with both labor and management 

representatives attending. During the 

meeting either the labor members or the 

management members may caucus 

separately to devise strategy and 

formulate positions. Premature 

disclosure of the matters discussed in 

these caucuses would unacceptably 

impair the ability of the Committee to 

reach a consensus on the matters being 

considered and would disrupt 

substantially the disposition of its 

business. Therefore, these caucuses will 

be closed to the public because of a 

determination made by the Director of 

the U.S. Office of Personnel 

Management under the provisions of 

section 10(d) of the Federal Advisory 

Committee Act (Pub. L. 92–463) and 5 

U.S.C. 552b(c)(9)(B). These caucuses 

may, depending on the issues involved, 

constitute a substantial portion of a 

meeting. 

Annually, the Chair compiles a report 

of pay issues discussed and concluded 

recommendations. These reports are 

available to the public, upon written 

request to the Committee. 

The public is invited to submit 

material in writing to the Chair on 

Federal Wage System pay matters felt to 

be deserving of the Committee’s 

attention. Additional information on 

these meetings may be obtained by 

contacting the Committee at U.S. Office 

of Personnel Management, Federal 

Prevailing Rate Advisory Committee, 

Room 5H27, 1900 E Street NW., 

Washington, DC 20415, (202) 606–9400. 

U.S. Office of Personnel Management. 

Sheldon Friedman, 

Chairman, Federal Prevailing Rate Advisory 

Committee. 

[FR Doc. 2012–3577 Filed 2–14–12; 8:45 am] 

BILLING CODE 6325–49–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66366; File No. SR–CHX– 

2011–34] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Order 

Approving a Proposed Rule Change 

Regarding Suspension of a 

Participant’s Trading Privileges on the 

Exchange 

February 9, 2012. 

I. Introduction 

On December 16, 2011, the Chicago 

Stock Exchange, Inc. (‘‘CHX’’ or the 

‘‘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 

permit any officer of the Exchange 

designated by the Chief Regulatory 

Officer (‘‘CRO’’) to suspend the trading 

privileges of a Participant on the 

Exchange’s facilities in certain 

circumstances. The proposed rule 

change was published for comment in 

the Federal Register on January 4, 

2012.3 The Commission received no 

comment letters on the proposal. This 

order approves the proposed rule 

change. 

II. Description of the Proposal 

The Exchange proposes to add 

Interpretation and Policy .01 to Article 

13, Rule 2 (Emergency Suspension) to 

modify the Exchange’s ability to 

suspend a Participant’s trading 

privileges on the Exchange. Currently, 

Rule 2 authorizes the Exchange’s CRO to 

suspend a Participant’s membership 

with the Exchange or place other 

limitations on its activities if various 

circumstances occur, such as 

insolvency, failure to perform its 

contracts or obligations, expulsion or 

suspension by another self-regulatory 

organization, or where it reasonably 

appears that the Participant is violating 

and will continue to violate any 

provision of the Exchange’s rules or the 

federal securities laws. The Exchange 

proposes to permit any officer of the 

Exchange designated by the CRO to 

suspend the trading privileges of a 

Participant on the Exchange’s facilities 

pursuant to the provisions of Rule 2 if 

a Qualified Clearing Agency refuses to 

act to clear and settle the trades of that 

Participant. The CRO must approve any 

such suspensions within two (2) days of 

the action. If the CRO does not approve 

the action taken, the suspension shall be 

immediately lifted as of the time of his 

or her decision or after the expiration of 

two days, whichever is earlier. 

Suspensions pursuant to these 

provisions, including the appeal thereof, 

otherwise would be governed by the 

provisions of Rule 2. 

The Exchange also proposes to correct 

an oversight by eliminating a reference 

to the Chief Executive Officer in Section 

(c) of Rule 2 and replacing it with a 

reference to the CRO regarding appeals 

of suspensions under Rule 2.4

III. Discussion 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.5 Specifically, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,6 in that it is designed to promote 

just and equitable principles of trade, to 

foster cooperation and coordination 

with persons engaged in facilitating 

transaction in securities, to remove 

impediments and perfect the 

mechanisms of a free and open market, 

and, in general, to protect investors and 

the public interest. Specifically, the 

Commission believes that new 

Interpretation and Policy .01 to Rule 2 

will help perfect the mechanisms of a 

free and open market by providing the 

Exchange with more flexibility 

regarding who can suspend the trading 

privileges of a Participant when a 

Qualified Clearing Agency refuses to 

clear and settle the trades of that 

Participant. Such flexibility should 

enable the Exchange to take timely 

action to prevent the execution of trades 

on the Exchange’s facilities by a 

Participant when a Qualified Clearing 


sroberts on DSK5SPTVN1PROD with NOTICES
8928 Federal Register / Vol. 77, No. 31 / Wednesday, February 15, 2012 / Notices 

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

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange notes that it will continue to 

require per Exchange Rule 2.3(c) that all Authorized 

Traders who are to function as Principals on the 

Exchange to be registered consistent with amended 

paragraph (c)(2) of Rule 2.3. 

4The Commission notes that the Outline and the 

text of the proposed rule change are attached to the 

filing, not to this Notice. 

5See Securities Exchange [sic] Release No. 64958 

(July 25, 2011), 76 FR 45629 (July 29, 2011) (SR– 

NASDAQ–2011–095). See also Securities Exchange 

[sic] Release No. 65041 (August 5, 2011), 76 FR 

49822 (August 11, 2011) (SR–NASDAQ–2011–107). 

6See Securities Exchange [sic] Release No. 65040 

(August 5, 2011), 76 FR 49809 (August 11, 2011) 

(SR–NASDAQ–2011–108). 

7NASDAQ Rule 0120(g) states, ‘‘the term 

customer shall not include a broker or dealer.’’ 

Agency refuses to clear and settle the 

trades of that Participant. 

Additionally, the Commission 

believes that Article 13, Rule 2(c) and 

Interpretation and Policy .01 to Article 

13, Rule 2 provide fair suspension 

appeal procedures, and therefore is 

consistent with Section 6(b)(7) of the 

Act,7 which requires that the rules of a 

national securities exchange provide a 

fair procedure for the disciplining of 

members and persons associated with 

members. The Commission notes that, 

where an officer of the Exchange 

suspends a Participant’s trading 

privileges under the narrow 

circumstances described in 

Interpretation and Policy .01, the 

suspension will be lifted automatically 

within two days of the action unless the 

CRO approves it, and the CRO may 

decide to lift the suspension earlier. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (SR–CHX–2011– 

34) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–3472 Filed 2–14–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66363; File No. SR–EDGA– 

2012–04] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend EDGA Rule 

1.5(q) 

February 9, 2012. 

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 February 

1, 2012, the EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) filed with the 

Securities and Exchange Commission 

(the ‘‘SEC’’ and 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 

EDGA Exchange, Inc. (‘‘EDGA’’ or the 

‘‘Exchange’’), proposes to amend its 

rules regarding registration, 

qualification and continuing education 

requirements for Authorized Traders of 

Members that engage solely in 

proprietary trading. EDGA proposes to 

amend Rules 2.3 and 11.4 and the 

Interpretations to Rule 2.5 to recognize 

a new category of limited representative 

registration for proprietary traders. The 

Exchange proposes to expand its 

registration requirements to include the 

Proprietary Traders Qualification 

Examination (‘‘Series 56’’) as one of the 

applicable qualification examinations as 

determined by the Exchange. The 

Exchange also proposes to permit 

Authorized Traders of Members who 

engage solely in proprietary trading to 

obtain the Series 56 license in order to 

effect transactions on the Exchange. In 

addition, the Exchange proposes to 

amend Rule 2.3 to make it substantially 

similar to the rules of the Financial 

Industry Regulatory Authority 

(‘‘FINRA’’) and other Self-Regulatory 

Organizations (‘‘SROs’’) to require 

Members to register two registered 

Principals.3 The text of the proposed 

Proprietary Traders Qualification 

Examination Content Outline is 

attached as Exhibit 3 and the text of the 

proposed rule changes is attached as 

Exhibit 5.4 These documents are 

available on the Exchange’s Web site at 

www.directedge.com, at the Exchange’s 

principal office, and at the Public 

Reference Room of the Commission. 

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 

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 

Background 

In July 2011, NASDAQ filed a 

proposed rule change with the 

Commission to recognize a new category 

of limited representative registration for 

proprietary traders.5 In addition, in 

August 2011, NASDAQ filed a related 

proposed rule change to use the content 

outline for the Series 56 examination 

that would be applicable to proprietary 

traders.6

For the purposes of this category of 

limited representative registration, 

NASDAQ Rule 1011(o) defines a 

proprietary trading firm as a firm that 

embodies the following characteristics: 

The Member is not required by Section 

15(b)(8) of the Exchange Act (the ‘‘Act’’) 

to become a FINRA member but is a 

member of another registered securities 

exchange not registered solely under 

Section 6(g) of the Act; all funds used 

or proposed to be used by the Member 

for trading are the Member’s own 

capital, traded through the Member’s 

own accounts; the Member does not, 

and will not have ‘‘customers’’; 7 all 

Principals and Authorized Traders of 

the Member acting or to be acting in the 

capacity of a trader must be owners of, 

employees of, or contractors to the 

Member. In addition, NASDAQ Rule 

1032(c) defines a proprietary trader as 

an Authorized Trader whose activities 

in the investment banking or securities 

business are limited solely to 

proprietary trading; passes an 

appropriate qualification examination; 

and is an associated person of a 

proprietary trading firm as defined in 

NASDAQ Rule 1011(o). NASDAQ Rule 

1032(c) identifies the Series 56 as the 

appropriate qualification examination 

for proprietary traders’ limited 

representative registration. Furthermore, 

NASDAQ’s proposed category of limited 

representative registration expressly 

excludes those associated persons that 

deal with the public and states those 

associated persons should continue to 


sroberts on DSK5SPTVN1PROD with NOTICES