Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Notices 6085 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange originally filed to amend the Fee 

Schedule on January 4, 2016 (SR–NYSEArca–2016– 

05) and withdrew such filing on January 14, 2016. 

The Exchange subsequently filed to amend the Fee 

Schedule on January 14, 2016 (SR–NYSEArca– 

2016–12) and withdrew such filing on January 28, 

2016. 

5The OCC provides volume information in two 

product categories: Equity and ETF volume and 

index volume, and the information can be filtered 

to show only Customer, firm, or market maker 

account type. Equity and ETF Customer volume 

numbers are available directly from the OCC each 

Continued 

investment company. Applicant has 

transferred its assets to GAI Corbin 

Multi-Strategy Fund, LLC and, on 

December 31, 2015, made a final 

distribution to its shareholders based on 

net asset value. Expenses of $150,231 

incurred in connection with the 

reorganization were paid by applicant 

and the acquiring fund. 

Filing Dates: The application was 

filed on January 6, 2016, and amended 

on January 7, 2016. 

Applicant’s Address: 401 South Tryon 

Street, Charlotte, North Carolina 28202. 

Federated Enhanced Treasury Income 

Fund [File No. 811–22098] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. Applicant has 

transferred its assets to Federated 

Enhanced Treasury Income Fund, a 

portfolio of Federated Income Securities 

Trust, and, on October 23, 2015, made 

a final distribution to its shareholders 

based on net asset value. Expenses of 

$161,790 incurred in connection with 

the reorganization were paid by 

applicant and the acquiring fund. 

Filing Dates: The application was 

filed on January 21, 2016. 

Applicant’s Address: 4000 Ericsson 

Drive, Warrendale, Pennsylvania 15086. 

Nuveen New York Dividend Advantage 

Municipal Fund 2 [811–10253] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. The applicant has 

transferred its assets to Nuveen New 

York Dividend Advantage Municipal 

Fund and, on May 26, 2015, made a 

final distribution to its shareholders 

based on net asset value. Expenses of 

$620,000 incurred in connection with 

the reorganization were paid by 

applicant and $285,000 were paid by 

the acquiring fund. 

Filing Dates: The application was 

filed on January 22, 2016. 

Applicant’s Address: 333 West 

Wacker Drive, Chicago, Illinois 60606. 

EGA Frontier Diversified Core Fund 

[811–22782] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. On October 16, 

2015, applicant made a liquidating 

distribution to its shareholders, based 

on net asset value. Expenses of $14,813 

incurred in connection with the 

liquidation were paid by the applicant’s 

investment adviser. 

Filing Dates: The application was 

filed on January 27, 2016. 

Applicant’s Address: 155 West 19th 

Street, New York, New York 10011. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02064 Filed 2–3–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77000; File No. SR– 

NYSEARCA–2016–22] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending the NYSE Arca 

Equities Schedule of Fees and 

Charges for Exchange Services 

January 29, 2016. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

28, 2016, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 

the Securities and Exchange 

Commission (‘‘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 

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 the 

NYSE Arca Equities Schedule of Fees 

and Charges for Exchange Services. The 

proposed rule change is available on the 

Exchange’s Web site 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to change the 

fees and credits for Cross Asset Tier 2 

in the Fee Schedule. Specifically, for 

securities with a per share price $1.00 

or above, the Exchange proposes to: (1) 

Replace the numeric benchmark needed 

to be eligible for the tier with a 

benchmark based on a percentage of 

options contract volume, and (2) 

provide a second way to qualify for the 

Cross Asset Tier 2 credits for orders that 

provide liquidity to the Exchange. The 

Exchange proposes to implement the fee 

changes effective January 28, 2016.4

Currently, Cross Asset Tier 2 fees and 

credits apply to ETP Holders and 

Market Makers that (a) provide liquidity 

an average daily volume share per 

month of 0.30% or more of the US 

Consolidated Average Daily Volume 

(‘‘CADV’’), and (b) are affiliated with an 

OTP Holder or OTP Firm that provides 

an ADV of electronic posted executions 

for the account of a market maker in 

Penny Pilot issues on NYSE Arca 

Options (excluding mini options) of at 

least 90,000 contracts. Such ETP 

Holders and Market Makers receive a 

credit of $0.0031 per share for orders 

that provide liquidity to the order book 

in Tape A Securities; a credit of $0.0030 

per share for providing liquidity to the 

order book and a fee of $0.0028 per 

share for taking liquidity from the order 

book in Tape B Securities; and a credit 

of $0.0033 per share for providing 

liquidity to the order book and a fee of 

$0.0029 per share for taking liquidity 

from the order book in Tape C 

Securities. 

The Exchange proposes to replace the 

current fixed 90,000 contract 

requirement with a variable requirement 

of at least 0.75% of total Customer 

equity and exchange-traded fund 

(‘‘ETF’’) option ADV, as reported by the 

Options Clearing Corporation (‘‘OCC’’).5


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6086 Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Notices 

morning, or may be transmitted, upon request, free 

of charge from the Exchange. Total Industry 

Customer equity and ETF option ADV is comprised 

of those equity and ETF option contracts that clear 

in the customer account type at OCC, including 

Exchange-Traded Fund Shares, Trust Issued 

Receipts, Partnership Units, and Index-Linked 

Securities such as Exchange-Traded Notes (see 

NYSE Arca Options Rule 5.3(g)–(j)), and does not 

include contracts that clear in either the firm or 

market maker account type at OCC or contracts 

overlying a security other than an equity or ETF 

security. The Exchange currently makes this data 

publicly available on a T+1 basis from a link at 

http://www.nyxdata.com/factbook. 

6See Securities Exchange Act Release No. 76084 

(October 6, 2015), 80 FR 61529, 61531 (October 13, 

2015) (SR–NYSEArca–2015–87) (the Cross Asset 

Tier 2 applies to ‘‘ETP Holders and Market Makers 

that (a) provide liquidity an average daily volume 

share per month of 0.30% or more of the US CADV 

and (b) are affiliated with an OTP Holder or OTP 

Firm that provides an ADV of electronic posted 

executions for the account of a market maker in 

Penny Pilot issues on NYSE Arca Options 

(excluding mini options) of at least 90,000 

contracts.’’). 

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

8 15 U.S.C. 78f(b)(4) and (5). 

9 15 U.S.C. 78f(b)(5). 

10See note 5, supra. 11See NASDAQ Rule 7018. 

The Exchange is proposing these 

changes to the Cross-Asset Tier 2 in 

order to make the eligibility requirement 

consistent with the Exchange’s other 

variable eligibility requirements that are 

based on percentage of volume. The 

Exchange believes that using an 

eligibility requirement based on 

percentage of volume would better 

reflect fluctuations in trading volumes. 

The proposed change would thus 

eliminate the need to modify a fixed 

number requirement because a 

threshold based on volume would 

automatically make the necessary 

adjustments. 

The Exchange proposes to make a 

clarifying amendment to the text of the 

Fee Schedule to more accurately reflect 

the application of the Cross Asset Tier 

2. Specifically, the Exchange proposes 

to delete the potentially confusing 

phrase ‘‘(including all account types)’’ 

following ‘‘electronic posted 

executions’’ and before ‘‘in Penny Pilot 

issues on NYSE Arca Options’’ in 

current clause (b) of the Fee Schedule 

consistent with the filing adopting the 

Cross Asset Tier 2.6 The Exchange also 

proposes to move the phrase ‘‘for the 

account of a market maker’’ from the 

end of current clause (b) to after 

‘‘electronic posted executions’’ to add 

greater clarity to the Fee Schedule. 

The Exchange also proposes to permit 

ETP Holders, including Market Makers, 

to alternatively qualify for the Cross 

Asset Tier 2 credits if they (1) provide 

liquidity an ADV share per month of 

0.40% or more of the CADV, and (2) are 

affiliated with an OTP Holder or OTP 

Firm that provides an ADV of electronic 

posted executions for the account of a 

market maker in Penny Pilot issues on 

NYSE Arca Options (again, excluding 

mini options) of at least 0.65% of total 

Customer equity and ETF option ADV, 

as reported by OCC. 

The Exchange does not propose any 

other changes to the fees and credits 

currently applicable to Cross Asset Tier 

2. 

The proposed changes are not 

otherwise intended to address any other 

issues, and the Exchange is not aware of 

any significant problems that market 

participants would have in complying 

with the proposed changes. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,7 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,8 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers and other persons using its 

facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. In addition, 

the Exchange believes the proposal is 

consistent with the requirement under 

Section 6(b)(5) 9 that an exchange have 

rules that are designed 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, in general, to protect investors and 

the public interest. 

The Exchange believes the proposal to 

amend Cross Asset Tier 2 to replace the 

current fixed benchmark needed to be 

eligible for the tier with a variable 

benchmark based on a percentage of 

volume is reasonable because it would 

make the eligibility requirement 

consistent with the Exchange’s other 

variable eligibility requirements that 

also are based on percentage of volume. 

In addition, the Exchange believes that 

expanding the basis for the Cross-Asset 

Tier 2 to include all Customer equity 

and ETF options ADV would better 

reflect the correlation between options 

trading and the underlying securities, 

which trade at the Exchange, including 

ETFs. In this respect, the Exchange 

notes that Equity and ETF Customer 

volume is a widely followed benchmark 

of industry volume and is indicative of 

industry market share.10 The Exchange 

further believes that the proposed 

amendment is equitable and not 

unfairly discriminatory because it 

would be available to all similarly 

situated ETP Holders and Market 

Makers on an equal basis and would 

provide credits that are reasonably 

related to the value of an exchange’s 

market quality associated with higher 

volumes. 

The Exchange believes that the 

proposal to amend Cross Asset Tier 2 is 

reasonable because it provides ETP 

Holders and Market Makers affiliated 

with an NYSE Arca Options OTP Holder 

or OTP Firm with an additional way to 

qualify for the Cross Asset Tier 2 rebates 

through equity and option orders. The 

Exchange believes that the proposed 

alternative to qualify for the tier 

utilizing a higher equity volume 

requirement (0.40%) and a lower 

options volume requirement (0.65%) is 

reasonable because the proposal 

provides firms with greater flexibility to 

reach volume tiers across asset classes, 

thereby creating an added incentive for 

ETP Holders to bring additional order 

flow to a public market. 

The Exchange believes that the 

proposal is equitable and not unfairly 

discriminatory because all ETP Holders 

would be subject to the same fee 

structure and be offered the same 

alternative to qualifying for the CrossAsset Tier 2 credit. Moreover, the CrossAsset Tier 2 credit is available for all 

ETP Holders to satisfy, except for those 

ETP Holders that are not affiliated with 

an NYSE Arca Options OTP Holder or 

OTP Firm. ETP Holders that are not 

affiliated with an NYSE Arca Options 

OTP Holder or OTP Firm are still 

eligible for fees and credits by means 

other than the Cross Asset Tier. 

NASDAQ similarly charges certain fees 

based on both equity and options 

volume.11

Further, the Exchange believes that 

the proposal is reasonable and would 

continue to directly relate to the activity 

of an ETP Holder and the activity of an 

affiliated OTP Holder or OTP Firm on 

NYSE Arca Options, thereby 

encouraging increased trading activity 

on both the NYSE Arca equity and 

option markets. In this regard, the 

proposal is designed to bring additional 

posted order flow to NYSE Arca 

Options, so as to provide additional 

opportunities for all OTP Holders and 

OTP Firms to trade on NYSE Arca 

Options. Furthermore, similar to the 

revised Cross Asset Tier, the NYSE Arca 

Options Fee Schedule includes a credit 

for OTP Holders and OTP Firms that is 

based on both equity and options 

volume. 

The Exchange believes that deleting 

the phrase ‘‘(including all account 

types)’’ in current clause (b) of the Fee 

Schedule consistent with the filing 


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Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Notices 6087 

12See note 6, supra. 

13 15 U.S.C. 78f(b)(8). 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(2). 

16 15 U.S.C. 78s(b)(2)(B). 

adopting the Cross Asset Tier 2 12

removes impediments to and perfects 

the mechanism of a free and open 

market by reducing potential confusion 

that may result from having extraneous 

material in the Exchange’s rulebook, 

thereby adding transparency and clarity 

to the Exchange’s rules. The Exchange 

also believes that eliminating this 

extraneous material would not be 

inconsistent with the public interest and 

the protection of investors because 

investors will not be harmed and in fact 

would benefit from increased 

transparency, thereby reducing potential 

confusion. The Exchange also believes 

that moving the phrase ‘‘for the account 

of a market maker’’ from the end of 

current clause (b) to after ‘‘electronic 

posted executions’’ removes 

impediments to and perfects the 

mechanism of a free and open market by 

adding clarity to the Exchange’s rules. 

The Exchange believes its proposal to 

amend the text of the Fee Schedule to 

clarify the applicability of the Cross 

Asset Tier 2 is both reasonable and 

equitable because ETP Holders and 

Market Makers would benefit from clear 

guidance in the rule text describing the 

manner in which the Exchange would 

assess Cross Asset Tier 2 fees and 

rebates. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 

For the foregoing reasons, the 

Exchange believes that the proposal is 

consistent with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,13 the Exchange believes that the 

proposed rule change would not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Instead, the 

Exchange believes that the proposed 

change would encourage the submission 

of additional liquidity to a public 

exchange, thereby promoting price 

discovery and transparency and 

enhancing order execution 

opportunities for ETP Holders and 

Market Makers. The Exchange believes 

that this could promote competition 

between the Exchange and other 

execution venues, including those that 

currently offer similar order types and 

comparable transaction pricing, by 

encouraging additional orders to be sent 

to the Exchange for execution. 

Further, the proposal to amend the 

requirements to qualify for Cross Asset 

Tier 2 and add another way to qualify 

for the Cross-Asset Tier 2 credits will 

not place an undue burden on 

competition because the tier would 

remain available for all ETP Holders to 

satisfy except those ETP Holders that 

are not affiliated with an NYSE Arca 

Options OTP Holder or OTP Firm. ETP 

Holders that are not affiliated with an 

NYSE Arca Options OTP Holder or OTP 

Firm are eligible for fees and credits by 

other means than the Cross Asset Tier 

2. ETP Holders would be subject to the 

same fee structure and be offered the 

same alternatives to qualifying for the 

Cross-Asset Tier 2 credit. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily favor 

competing venues. In such an 

environment, the Exchange must 

continually review, and consider 

adjusting, its fees and credits to remain 

competitive with other exchanges. 

Finally, the Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily favor competing venues if they 

deem fee levels at a particular venue to 

be excessive or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees and rebates to remain competitive 

with other exchanges and with 

alternative trading systems that have 

been exempted from compliance with 

the statutory standards applicable to 

exchanges. Because competitors are free 

to modify their own fees and credits in 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. As a result of all of these 

considerations, the Exchange does not 

believe that the proposed changes will 

impair the ability of ETP Holders or 

competing order execution venues to 

maintain their competitive standing in 

the financial markets. 

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 foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 14 of the Act and 

subparagraph (f)(2) of Rule 19b–4 15

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

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) 16 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– 

NYSEARCA–2016–22 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–NYSEARCA–2016–22. 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 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 


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6088 Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Notices 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 

10:00 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; 

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– 

NYSEARCA–2016–22 and should be 

submitted on or before February 25, 

2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02063 Filed 2–3–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold an Open Meeting 

on Monday, February 8, 2016, at 1:00 

p.m., in the Auditorium (L–002) at the 

Commission’s headquarters building, to 

hear oral argument in an appeal from an 

initial decision of an administrative law 

judge by the Respondent, Bernerd 

Young (‘‘Young’’), former chief 

compliance officer of Stanford Group 

Company (‘‘SGC’’). The law judge found 

that Young was a cause of violations by 

SGC of the antifraud provisions of 

Section 206(2) of the Investment 

Advisers Act of 1940 through false and 

misleading statements and omissions in 

marketing materials for ‘‘certificates of 

deposit’’ issued by Stanford 

International Bank Ltd., an affiliate of 

SGC. In addition, the law judge found 

that Young violated Section 17(a) of the 

Securities Act of 1933 and Section 10(b) 

of the Securities Exchange Act of 1934 

and Rule 10b–5 thereunder in 

connection with statements designed to 

‘‘attack’’ concerns raised about the 

certificates of deposit and to ‘‘forestall 

redemptions and continue sales.’’ The 

law judge further found that Young 

aided and abetted and caused violations 

of Exchange Act Section 10(b) and Rule 

10b–5, Exchange Act Section 15(c)(1), 

and Advisers Act Sections 206(1) and 

(2) in connection with these 

misrepresentations and omissions. 

Based on her findings, the law judge 

issued a cease-and-desist order against 

Young; barred him from associating 

with a broker, dealer, investment 

adviser, municipal securities dealer, 

municipal advisor, transfer agent, or 

nationally recognized statistical rating 

organization; and prohibited him from 

serving or acting in certain capacities 

with respect to an investment company. 

The law judge also ordered Young to 

pay $591,992.46 in disgorgement, with 

prejudgment interest, and assessed a 

third-tier civil penalty of $260,000. 

Young appealed the law judge’s 

findings of violation and the sanctions 

imposed. The issues likely to be 

considered at oral argument include, 

among other things, whether Young 

violated the antifraud provisions as 

alleged and, if so, the extent to which 

he should be sanctioned for those 

violations. 

For further information, please 

contact the Office of the Secretary at 

(202) 551–5400. 

Dated: February 1, 2016. 

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02221 Filed 2–2–16; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–76999; File No. SR–MSRB– 

2016–01] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing of a Proposed 

Rule Change Consisting of Proposed 

Amendments to Rule A–3, on 

Membership on the Board 

January 29, 2016. 

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

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 notice is hereby 

given that on January 15, 2016, the 

Municipal Securities Rulemaking Board 

(the ‘‘MSRB’’ or ‘‘Board’’) filed with the 

Securities and Exchange Commission 

(the ‘‘SEC’’ or ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the MSRB. 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 MSRB filed with the Commission 

a proposed rule change consisting of 

proposed amendments to Rule A–3, on 

membership on the Board, to lengthen 

the term of Board member service, 

change the number and size of Board 

classes, limit the number of consecutive 

terms a Board member can serve, 

eliminate the requirement that there be 

at least one municipal advisor 

representative per class that is not 

associated with a dealer (‘‘non-dealer 

municipal advisor’’), delete an obsolete 

transition provision and provide a 

technical update to the name of a Board 

committee (collectively, the ‘‘proposed 

rule change’’). The MSRB requests that 

the proposed rule change be effective on 

the date of Commission approval. 

The text of the proposed rule change 

is available on the MSRB’s Web site at 

www.msrb.org/Rules-andInterpretations/SEC-Filings/2016- 

Filings.aspx, at the MSRB’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 

MSRB 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 MSRB 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 MSRB is the self-regulatory 

organization (‘‘SRO’’) created by 

Congress to establish regulation for the 

$3.7 trillion municipal securities 

market, including rules governing the 

municipal securities activities of dealers 

and the municipal advisory activities of 

municipal advisors. The MSRB’s 

mission is to protect municipal entities, 

obligated persons, investors and the 

public interest, and to promote a fair 

and efficient municipal securities 

market. The Board is comprised of 21 


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