Federal Register / Vol. 79, No. 226 / Monday, November 24, 2014 / Notices 69957 

100 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. 73266 

(September 30, 2014), 79 FR 60207 (‘‘Notice’’). 

4 15 U.S.C. 78s(b)(2). 

the proposed supplementary material to 

clarify what sort of materials are 

prohibited or provide an alternative 

example of prohibited pitch materials. 

SIFMA also asked that FINRA confirm 

that members may disclose in pitch 

materials the fact that research coverage 

will be provided for a particular issuer. 

FINRA believes the principle is clear 

and has included examples to illustrate 

FINRA’s view of its application. 

Whether other information included in 

pitch materials violate the principle will 

depend on the facts and circumstances. 

Effective Date 

SIFMA requested that FINRA provide 

a 120-day grace period between the 

adoption of the proposal and the 

implementation of the proposed rules 

because some of the proposals will 

require major systems changes to firms’ 

information technology systems, 

research report templates, and policies 

and procedures. FINRA is sensitive to 

the time firms will require to update 

their policies and procedures and 

systems to comply with the proposed 

rule change and will take those factors 

into consideration when establishing an 

implementation date. 

Other Comments 

Kolber supported the proposed 

change to exempt from FINRA’s 

research analyst registration and 

qualification requirements those 

individuals who produce ‘‘research 

reports’’ but whose primary job function 

is something other than to provide 

investment research. The remainder of 

Kolber’s comments with respect to the 

research registration and qualification 

requirements addressed more generally 

the scope and difficulty of the Series 86 

examination, which is not the subject of 

the proposal. Kolber also stated that the 

definition of ‘‘research report’’ can be 

difficult to apply because it sets forth a 

standard and then lists several 

exceptions from the definition. FINRA 

notes that the structure is very similar 

to the definition of research report in 

Regulation AC and is not an uncommon 

drafting method. Kolber’s other 

comments are directed to the difficulty 

of distinguishing between the 

definitions of ‘‘sales literature’’ and 

‘‘advertisement’’ in former NASD Rule 

2210. That rule has since been replaced 

by consolidated FINRA Rule 2210, 

where those definitions no longer exist. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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– 

FINRA–2014–047 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–FINRA–2014–047. 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 

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 

FINRA. 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–FINRA–2014–047 and 

should be submitted on or before 

December 15, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.100

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27700 Filed 11–21–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73621; File No. SR– 

NASDAQ–2014–095] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Designation of Longer Period for 

Commission Action on Proposed Rule 

Change To Provide a New Optional 

Functionality to Minimum Quantity 

Orders 

November 18, 2014. 

On September 18, 2014, The 

NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or ‘‘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 amend NASDAQ Rule 

4751(f)(5) to provide a new optional 

functionality for Minimum Quantity 

Orders. The proposed rule change was 

published for comment in the Federal 

Register on October 6, 2014.3 The 

Commission received no comment 

letters regarding the proposed rule 

change. 

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether these 

proposed rule changes should be 

disapproved. The 45th day for this filing 

is November 20, 2014. 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
69958 Federal Register / Vol. 79, No. 226 / Monday, November 24, 2014 / Notices 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change. 

The proposed rule change would, 

among other things, provide new 

optional functionality for minimum 

quantity orders. 

Accordingly, pursuant to Section 

19(b)(2) of the Act 5 and for the reasons 

stated above, the Commission 

designates January 4, 2015, as the date 

by which the Commission should either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rulechange. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27699 Filed 11–21–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73628; File No. SR–CBOE– 

2014–085] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating to Professional 

Orders 

November 18, 2014. 

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 November 

10, 2014, Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) filed with the Securities 

and Exchange Commission (the 

‘‘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 the 

definition of ‘‘Professional’’ in Rule 

1.1(ggg) and adopt Interpretation and 

Policy .01 to Rule 1.1(ggg) concerning 

the definition of an ‘‘order’’ for purposes 

of Rule 1.1(ggg). The text of the 

proposed rule change is provided below 

and in Exhibit 1. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Chicago Board Options Exchange, 

Incorporated Rules 

* * * * * 

CHAPTER I 

Definitions 

¶ 2001 Definitions 

RULE 1.1 When used in these Rules, 

unless the context otherwise requires: 

(a) Any term defined in the Bylaws 

and not otherwise defined in this 

Chapter shall have the meaning 

assigned to such term in the Bylaws. 

(b)–(fff) 

Professional 

(ggg) The term ‘‘Professional’’ means 

any person or entity that (i) is not a 

broker or dealer in securities, and (ii) 

places more than 390 orders in listed 

options per day on average during a 

calendar month for its own beneficial 

account(s). A Professional will be 

treated in the same manner as a broker 

or dealer in securities for purposes of 

Rules 6.2A, 6.2B, 6.8C, 6.9, 6.13A, 

6.13B, 6.25, 6.45, 6.45A (except for 

Interpretation and Policy .02), 6.45B 

(except for Interpretation and Policy 

.02), 6.53C(c)(ii), 6.53C(d)(v), 

subparagraphs (b) and (c) under 

Interpretation and Policy .06 to Rule 

6.53C, 6.74 (except Professional orders 

may be considered public customer 

orders subject to facilitation under 

paragraphs (b) and (d)), 6.74A, 6.74B, 

8.13, 8.15B, 8.87, 24.19, 43.1, 44.4, 

44.14. The Professional designation is 

not available in Hybrid 3.0 classes. All 

Professional orders shall be marked 

with the appropriate origin code as 

determined by the Exchange. 

. . . Interpretations And Policies 

.01 For purposes of this Rule 1.1(ggg), 

an order which is placed for the 

beneficial account(s) of a person or 

entity that is not a broker or dealer in 

securities that is broken into multiple 

parts by a broker or dealer or by an 

algorithm housed at a broker or dealer 

or by an algorithm licensed from a 

broker or dealer, but which is housed 

with the customer in order to achieve a 

specific execution strategy including, for 

example, a basket trade, program trade, 

portfolio trade, basis trade, or 

benchmark hedge, constitutes a single 

order and shall be counted as one order. 

* * * * * 

The text of the proposed rule change 

is also available on the Exchange’s Web 

site (http://www.cboe.com/AboutCBOE/

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

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 Exchange proposes to amend its 

definition of ‘‘Professional’’ to clarify 

how orders are computed under Rule 

1.1(ggg). Specifically, the Exchange 

proposes to adopt Interpretation and 

Policy .01 to Rule 1.1(ggg) to its 

definition of ‘‘Professional’’ in Rule 

1.1(ggg) to provide that for purposes of 

Rule 1.1(ggg), an order which is placed 

for the beneficial account(s) of a person 

or entity that is not a broker or dealer 

in securities that is broken into multiple 

parts by a broker or dealer or by an 

algorithm housed at a broker or dealer 

or by an algorithm licensed from a 

broker or dealer, but which is housed 

with the customer in order to achieve a 

specific execution strategy including, 

for example, a basket trade, program 

trade, portfolio trade, basis trade, or 

benchmark hedge, constitutes a single 

order and shall be counted as one order. 

The Exchange also proposes to add a 

provision to Rule 1.1(ggg), which would 

provide that all Professional orders shall 

be marked with the appropriate origin 

code as determined by the Exchange. 

The Exchange believes that the 

proposed rule changes will add clarity 

and transparency to its current rules, 

which is in the interests of all market 

participants. The purpose of this rule 

filing is to codify the details of the 

Exchange’s existing policies within the 

Rules. The Exchange is continuously 


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