Document ID: SEC-2016-0152-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market, LLC
Posted Date: 2016-01-27T05:00Z

[Federal Register Volume 81, Number 17 (Wednesday, January 27, 2016)]
[Notices]
[Pages 4693-4695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01531]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76947; File No. SR-BX-2016-004]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Subsection (a)(7) of Rule 7003, Registration and Processing Fees

January 21, 2016.
    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 January 13, 2016, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``SEC'' or 
``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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend subsection (a)(7) of Rule 7003, 
Registration and Processing Fees, as described further below.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqomxbx.cchwallstreet.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 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 make changes to the continuing education 
fees section of Rule 7003 to provide that the continuing education 
session fee will be $55 if the session is conducted via Web delivery. 
The continuing education session fee will remain $100 if the session is 
conducted at a testing center. The Exchange is deleting the $60 session 
fee for the S501 Regulatory Element, which FINRA discontinued as of 
January 4, 2016.\3\
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    \3\ Currently, Rule 7003(a) provides that certain fees will be 
collected and retained by FINRA via the Web CRD registration system 
for the registration of associated persons of Exchange members that 
are not also FINRA members. Under Rule 7003(a)(7), FINRA collects 
and retains a $100 session fee for each individual who is required 
to complete the Regulatory Element of the Continuing Education 
Requirements pursuant to Exchange Rule 1120 (S101 and S201) and a 
$60 session fee for each individual who is required to complete the 
Proprietary Trader Regulatory Element (S501).
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    On August 8, 2015, the Commission approved SR-FINRA-2015-015 
relating proposed changes to FINRA Rule 1250 to provide a Web-based 
delivery method for completing the Regulatory Element

[[Page 4694]]

of the continuing education requirements.\4\ Pursuant to the rule 
change, effective October 1, 2015, the Regulatory Element of the 
Continuing Education Programs for the S201 for Registered Principals 
and Supervisors is now administered through Web-based delivery or such 
other technological manner and format as specified by FINRA. FINRA 
launched Web-based delivery of the S101 Regulatory Element program on 
January 4, 2016.\5\
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    \4\ See Securities Exchange Act Release No. 75581 (July 31, 
2015), 80 FR 47018 (August 6, 2015) (Order Approving a Proposed Rule 
Change to Provide a Web-based Delivery Method for Completing the 
Regulatory Element of the Continuing Education Requirements) (SR-
FINRA-2015-015).
    \5\ The Regulatory Element of the S101 and S201 Continuing 
Education Programs will continue to be offered at testing centers 
until no later than six months after January 4, 2016. Test-center 
delivery of the Regulatory Element will be phased out by no later 
than six months after January 4, 2016. See Securities Exchange Act 
Release No. 75581 (July 31, 2015), 80 FR 47018 (August 6, 2015) 
(Order Approving a Proposed Rule Change To Provide a Web-Based 
Delivery Method for Completing the Regulatory Element of the 
Continuing Education) (SR-FINRA-2015-015).
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    Pursuant to the approval order for SR-FINRA-2015-015, the fee for 
test-center delivery of the Regulatory Element of the S201 Continuing 
Education programs will continue to be $100 per session through no 
later than six months after January 4, 2016 when the program will no 
longer be offered at testing centers. However, under the SR-FINRA-2015-
015 approval order the fee for Web-based delivery of the Regulatory 
Elements of the S101 and the S201 Continuing Education programs is now 
$55.
    The Exchange currently utilizes FINRA's Continuing Education 
programs for its own continuing education requirements which include 
the S101 and S201 programs. Consistent with SR-FINRA-2015-015, the 
Exchange recently filed a separate proposed rule change relating to 
continuing education.\6\ In that filing, the Exchange proposed to 
follow the changes set forth in SR-FINRA-2015-015 with respect to Web-
based delivery of the Regulatory Element of the Continuing Education 
programs for the S101 and the S201. Consistent with SR-FINRA-2015-015 
this proposed rule change would amend Rule 7003 to provide that the 
following fees will be collected and retained by FINRA for the 
registration of associated persons of Exchange members that are not 
also FINRA members: A $100 session fee ($55 if the Continuing Education 
is Web-based) for each individual who is required to complete the 
Regulatory Element of the Continuing Education Requirements pursuant to 
Exchange Rule 1120 (S101 and S201). The proposal will eliminate the $60 
session fee for each individual who is required to complete the 
Proprietary Trader Regulatory Element (S501).\7\
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    \6\ See SR-BX-2016-02 [sic].
    \7\ As noted above, the S501 Proprietary Trader Regulatory 
Element was discontinued January 4, 2016. The Exchange anticipates 
filing a subsequent rule change to eliminate the reference to the 
$100 session fee when the test center option is eliminated for the 
S101 and S201 Regulatory Elements.
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 2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\8\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \9\ requirements that the rules of 
an exchange be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, 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. 
Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \10\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ Id.
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    Web-based delivery will remove time parameters that exist with 
respect to taking continuing education at testing centers. Having 
additional time to take continuing education may result in better 
learning outcomes, which should enhance investor protection. In 
addition, the option to have Web-based delivery of the Regulatory 
Element of the Continuing Education program at a reduced cost makes it 
easier and less costly for registrants to participate in the market. 
Accordingly, the Exchange believes that Web-based delivery of the 
Regulatory Element of the Continuing Education Program and reducing the 
costs of continuing education in general are goals that are consistent 
with the Act.

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. As FINRA has stated, the 
proposed rule change is specifically intended to reduce the burdens of 
continuing education on market participants while preserving the 
integrity of the Continuing Education program.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\11\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule 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-BX-2016-004 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-BX-2016-004. This file 
number should be included on the subject line if email is used. To help 
the

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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 10:00 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-BX-2016-004 and should be 
submitted on or before February 17, 2016.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Brent J. Fields,
Secretary.
[FR Doc. 2016-01531 Filed 1-26-16; 8:45 am]
 BILLING CODE 8011-01-P