[Federal Register Volume 81, Number 44 (Monday, March 7, 2016)]
[Notices]
[Pages 11870-11872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04911]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77268; File No. SR-NYSEARCA-2016-36]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Exchange 
Rule 7.21, Obligations of Market Maker Authorized Traders

March 1, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on February 22, 2016, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, of which Items I and II 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 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 Exchange Rule 7.21, Obligations of 
Market Maker Authorized Traders. 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange recently amended its rules to prescribe the Securities 
Traders examination (Series 57) (the ``Series 57 Examination'') as the 
qualifying examination for employees of ETP Holders (``Member'') 
engaged solely in proprietary trading.\4\ Under current rules, 
Securities Traders and Market Maker Authorized Traders (``MMATs'') 
essentially perform similar functions. In the Series 57 Filing, which, 
among other things, amended Exchange rules regarding the registration 
requirements for Securities Traders, the Exchange also intended to 
amend Rule 7.21 to amend the registration requirements for MMATs but 
inadvertently failed to do so. The Exchange is now proposing to amend 
Rule 7.21 so that the registration requirements applicable to MMATs are 
the same as those imposed on Securities Traders. Specifically, Rule 
7.21(b)(2) states that to be eligible for registration

[[Page 11871]]

as a MMAT, a person must successfully complete the General Securities 
Representative Examination (Series 7) and complete a training and 
certification program sponsored by the Corporation.\5\ The rule further 
provides that the examination requirement may be waived if an applicant 
MMAT has served as a dealer-specialist or market maker on a registered 
national securities exchange for at least two consecutive years within 
three years of the date of the application.\6\ The Exchange does not 
intend to impose different registration requirements on MMATs than are 
required of Securities Traders. In order to satisfy the registration 
requirement, Securities Traders are required to successfully complete 
the Series 57 Examination.\7\ The proposed amendment to Rule 7.21(b) 
would ensure that MMATs would also be required to successfully complete 
the Series 57 Examination in order to satisfy the Exchange's 
registration requirement.
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    \4\ See Securities Exchange Act Release No. 76578 (December 8, 
2015), 80 FR 77068 (December 11, 2015) (SR-NYSEArca-2015-117) 
(``Series 57 Filing'').
    \5\ See Rule 7.21(b).
    \6\ Id.
    \7\ See Rule 2.21.
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    The Exchange intends to announce the implementation date of the 
Series 57 registration requirement in a notice to members to be issued 
no later than 30 days after the effective date of the proposed rule 
change.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Securities Exchange Act of 1934 (``Act''),\8\ in general, 
and furthers the objectives of Section 6(c)(3)(B) \9\ of the Act, 
pursuant to which a national securities exchange prescribes standards 
of training, experience and competence for members and their associated 
persons, and Section 6(b)(5) \10\ of the Act, in particular, in that it 
is designed, among other things, to promote just and equitable 
principles of trade, 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. The proposed 
rule change, which would ensure that Securities Traders and MMATs are 
not subject to different registration requirements, is designed to 
maintain consistency in the Exchange's rules, which would promote just 
and equitable principles of trade and remove impediments to a free and 
open market. The Exchange believes that the proposed rule change to 
make the Series 57 Examination the qualifying exam for registration as 
a MMAT is appropriate because the Series 57 Examination addresses 
industry topics that establish the foundation for the regulatory and 
procedural knowledge necessary for MMATs to appropriately register 
under Exchange rules.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(c)(3)(B).
    \10\ 15 U.S.C. 78f(b)(5).
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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. The proposed rule change does 
not impose any additional examination burdens on persons who are 
already registered. There is no obligation to take the Series 57 
examination in order to continue in their present duties, so the 
proposed rule change is not expected to disadvantage current registered 
persons relative to new entrants in this regard.

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 Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative upon filing. The Exchange has stated that the 
proposed rule change promotes uniformity in registration requirements 
on the Exchange and that waiver of the operative delay would allow the 
Exchange to immediately create consistency in its rules. Waiving the 
operative delay would enable the Exchange to have and enforce the same 
examination requirement for MMATs as for securities traders, which the 
Exchange represents engage in the same activity, therefore the 
Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
Therefore, the Commission hereby waives the thirty-day operative 
delay.\15\
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    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ For purposes of waiving the 30-day operative delay, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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    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.
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    \16\ 15 U.S.C. 78s(b)(2)(B).
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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 [email protected]. Please include 
File Number SR-NYSEARCA-2016-36 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-NYSEARCA-2016-36. This 
file number should be included on the subject line if email is used. To 
help the

[[Page 11872]]

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-NYSEARCA-2016-36 and should 
be submitted on or before March 28, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Robert W. Errett,
Deputy Secretary.
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    \17\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2016-04911 Filed 3-4-16; 8:45 am]
BILLING CODE 8011-01-P