Document ID: SEC-2016-1413-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Stock Exchange, Inc.
Posted Date: 2016-08-12T04:00Z

[Federal Register Volume 81, Number 156 (Friday, August 12, 2016)]
[Notices]
[Pages 53523-53524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19173]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78504; File No. SR-CHX-2016-14]

Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Continuing Education Fees

August 8, 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 August 1, 2016, the Chicago Stock Exchange, Inc. (``CHX'' or 
the ``Exchange'') 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 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

    CHX proposes to amend its Schedule of Fees and Assessments (the 
``Fee Schedule'') to amend the Exchange's Continuing Education fees. 
The text of this proposed rule change is available on the Exchange's 
Web site at (www.chx.com) and in 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 CHX included statements 
concerning the purpose of and basis for the proposed rule changes 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 CHX 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
    On August 8, 2015, the Commission approved SR-FINRA-2015-015 
relating to proposed changes to FINRA Rule 1250 to provide for Web-
based delivery for completing the Regulatory Element of the Continuing 
Education requirements (``CE Online Program'').\3\ Moreover, as of July 
1, 2016, FINRA required all participants to complete their Regulatory 
Element session using the CE Online Program; provided that participants 
who, pursuant to the Americans with Disabilities Act, need 
accommodations in completing their session due to a disability may 
apply for an accommodation and complete their session at a test 
center.\4\ Pursuant to Section 4(f) of the Schedule A of the FINRA By-
Laws, the fee for all Regulatory Element Continuing Education programs 
is $55.00.\5\
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    \3\ 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).
    \4\ See Securities Exchange Act Release No. 78281 (July 11, 
2016), 81 FR 46133 (July 15, 2016) (SR-FINRA-2016-025); see also 
Americans with Disabilities Act of 1990, Public Law 101-336, 104 
Stat. 328 (1990).
    \5\ See id.
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    The Exchange currently utilizes the S101 General Program and S201 
Supervisor Program that are part of the Securities Industry Continuing 
Education Program.\6\ The Exchange recently filed a separate proposed 
rule change to adopt the changes set forth in SR-FINRA-2015-015 to 
provide for

[[Page 53524]]

Web-based delivery of the Regulatory Element of the Continuing 
Education programs.\7\
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    \6\ The Securities Industry/Regulatory Council on Continuing 
Education has advisory and consultative responsibilities with regard 
to the development, implementation and ongoing operation of the 
Securities Industry Continuing Education Program.
    \7\ CHX Article 6, Rule 11(a)(4) provides that the continuing 
education Regulatory Element will be administered through Web-based 
delivery or such other technological manner and format as specified 
by the Exchange. See Securities Exchange Act Release No. 78446 (July 
29, 2016) (SR-CHX-2016-12).
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    Consistent with Section 4(f) of the Schedule A of the FINRA By-
Laws, the Exchange now proposes to amend Section J.5 of the CHX Fee 
Schedule to provide that the Continuing Education Regulatory Element 
fee for the S101 and S201 programs will be $55.\8\
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    \8\ Section J.5 of the CHX Fee Schedule provides that the 
Continuing Education fees are paid to FINRA directly. This fee is 
currently $100.00 for each individual who is required to complete 
the S101 or S201 programs.
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2. Statutory Basis
    The Exchange believes that its proposal to amend its fee schedule 
is consistent with Section 6(b) of the Act \9\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \10\ in particular, in 
that it is an equitable allocation of reasonable dues, fees and other 
charges among Exchange members and issuers and other persons using its 
facilities. The Exchange believes that the proposal to set the 
Continuing Education fee at $55 is an equitable allocation of dues, 
fees and other charges because the fee change applies equally to all 
persons associated with Participants. In addition, the Exchange 
believes that the amended fee is an equitable allocation of dues, fees 
and other charges as it will apply uniformly to all persons associated 
with the Participants who participate in the continuing education 
program through FINRA.
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    \9\ 15 U.S.C. 78(f)(b).
    \10\ 15 U.S.C. 78(f)(b)(4).
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    Moreover, the Exchange believes that harmonizing the Continuing 
Education fee with those of FINRA and the other national securities 
exchanges would further the objectives of Section 6(b)(5) of the Act 
\11\ by removing impediments to and perfecting the mechanism of a free 
and open market and a national market system.
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    \11\ 15 U.S.C. 78(f)(b)(5).
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B. Self-Regulatory Organization's Statement of 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. Since the proposed rule change 
applies to all persons associated with Participants who are required to 
fulfill Continuing Education requirements, the proposal has no effect 
on competition. Moreover, the Exchange believes that the harmonization 
of the Continuing Education fee across the various markets will reduce 
burdens on competition by removing impediments to participation in the 
national market system.

C. Self-Regulatory Organization's Statement on Comments Regarding 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 is effective upon filing pursuant to 
Section 19(b)(3)(A)(ii) of the Act \12\ and subparagraph(f)(2) of Rule 
19b-4 thereunder \13\ because it establishes or changes a due, fee or 
other charge imposed by the Exchange.
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    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 240.19b-4(f)(2).
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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 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 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 No. SR-CHX-2016-14 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 No. SR-CHX-2016-14. 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 
10:00 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 CHX. 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 No. SR-CHX-2016-14 and should be 
submitted on or before September 2, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19173 Filed 8-11-16; 8:45 am]
 BILLING CODE 8011-01-P