[Federal Register Volume 89, Number 165 (Monday, August 26, 2024)]
[Notices]
[Pages 68484-68486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19014]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100785; File No. SR-SAPPHIRE-2024-17]


Self-Regulatory Organizations; MIAX Sapphire, LLC, Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Its Rules Relating to the Continuing Education for Registered Persons 
as Provided Under Exchange Rule 1903

August 20, 2024.
    Pursuant to the provisions of Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that on August 9, 2024, MIAX Sapphire, LLC (``MIAX 
Sapphire'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') a 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 Interpretation and Policy .01 to 
Exchange Rule 1903, Continuing Education.
    The text of the proposed rule change is available on the Exchange's 
website at https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings, at the Exchange's principal office, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and the 
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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Interpretation and Policy .01 to 
Exchange Rule 1903, Continuing Education, to clarify participation 
requirements and deadline dates of the continuing education program.
Background
    The Form 1 Application of MIAX Sapphire was approved by the 
Securities Exchange Commission to register as a national securities 
exchange on July 15, 2024.\3\ MIAX Sapphire intends to begin trading 
operations on August 12, 2024. In anticipation of the launch of the 
Exchange MIAX Sapphire is in the process of updating rules so that they 
are current.
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    \3\ See Securities Exchange Act Release No. 100539 (July 15, 
2024), 89 FR 58848 (July 19, 2024) (File No. 10-240) (order 
approving application of MIAX Sapphire, LLC for registration as a 
national securities exchange).
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    Policy .01 of Exchange Rule 1903 describes the conditions and 
timeframes for certain individuals registered with the Exchange to 
participate in the continuing education program under paragraph (c) of 
Rule 1903. FINRA amended their Continuing Education (``CE'') Program 
requirements in FINRA Rule 1240 in 2021 to establish a Maintaining 
Qualifications Program (MQP).\4\ Under FINRA Rule 1240.01, FINRA 
designated a look-back provision for the two years immediately prior to 
March 15, 2022 for meeting the requirements of the MQP.
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    \4\ See Securities Exchange Act Release No. 93097 (September 21, 
2021), 86 FR 53358 (September 27, 2021) (Order Approving File No. 
SR-FINRA-2021-015). Other exchanges, including the Exchange's 
affiliate, MIAX, subsequently filed copycat rule filings to align 
their continuing education rules with those of FINRA. See Securities 
Exchange Act Release No. 95140 (June 22, 2022), 87 FR 38438 (June 
28, 2022) (SR-MIAX-2022-23) (Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change To Amend Exchange Rule 1900, 
Registration Requirements, Exchange Rule 1903, Continuing Education 
Requirements, and Exchange Rule 1904, Electronic Filing Requirements 
for Uniform Forms).
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    In 2023, FINRA again amended FINRA Rule 1240.01, to provide 
eligible individuals a second opportunity to elect to participate in 
the MQP.\5\ This change required eligible individuals who elected to 
participate in the MQP during the second look-back period to complete 
any prescribed continuing education content by March 31, 2024. For 
technical reasons related to the mechanics of registering in the MQP 
via FINRA's Financial Professional Gateway (``FinPro'') account some 
eligible individuals may have been precluded from properly registering 
for the MQP, therefore, FINRA again amended its rule to extend the 
requirements completion period to July 1, 2024.\6\
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    \5\ See Securities Exchange Act Release No. 97184 (Mar. 22, 
2023), 88 FR 18359 (Mar. 28, 2023) (SR-FINRA-2023-005) (Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to 
Amend FINRA Rule 1240.01 To Provide Eligible Individuals Another 
Opportunity to Elect to Participate in the Maintaining 
Qualifications Program). The Exchange notes that the second look-
back period does not appear in Sapphire Rule 1903 as it concluded 
prior to the Exchange's Form 1 Application being approved.
    \6\ See Securities Exchange Act Release No. 100067 (May 6, 
2024), 89 FR 40520 (May 10, 2024) (SR-FINRA-2024-006)(Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend FINRA Rule 1240.01 To Reopen the Period by Which Certain 
Participants in the Maintaining Qualifications Program May Complete 
Their Prescribed Continuing Education Content).
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Proposal
    The Exchange proposes to amend its Rule to provide that individuals 
enrolled in the continuing education program under Interpretation and 
Policy .01 of Rule 1903 who have completed their prescribed 2022 and 
2023 continuing education content by July 1, 2024 shall be eligible to 
continue their

[[Page 68485]]

participation in the continuing education program. The time period 
extensions provided by FINRA beginning in 2021 for maintaining 
registrations have all concluded, therefore the Exchange believes that 
this change will provide clarity in regards to the eligibility 
requirements for participation in the continuing education program.
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.\7\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \8\ 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) \9\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers. The Exchange's rule proposal 
is intended to harmonize the Exchange's supervision rules, specifically 
with respect to the continuing education requirements with those of 
FINRA, on which they are based. Consequently, the proposed change will 
conform the Exchange's rules to recent changes made to corresponding 
FINRA rules, thus promoting application of consistent regulatory 
standards with respect to rules that FINRA enforces pursuant to its 
regulatory services agreement with the Exchange.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ Id.
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    The Exchange believes that the proposed rule change will bring 
consistency and uniformity with FINRA's recently amended CE Program, 
which will, in turn, assist members and their associated persons in 
complying with these rules and improve regulatory efficiency. The 
proposed rule change makes ministerial changes to the Exchange's CE 
rules to align them with the CE rules of FINRA, in order to prevent 
unnecessary regulatory burdens and to promote efficient administration 
of the rules.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange 
believes that the proposed rule change, which harmonizes its rules with 
the recent rule change adopted by FINRA, will reduce the regulatory 
burden placed on market participants engaged in trading activities 
across different markets. The Exchange believes that the harmonization 
of the CE program requirements across the various markets will reduce 
burdens on competition by removing impediments to participation in the 
national market system and promoting competition among participants 
across the multiple national securities exchanges.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) \11\ thereunder, the Exchange has designated this proposal as 
one that effects a change that: (i) does not significantly affect the 
protection of investors or the public interest; (ii) does not impose 
any significant burden on competition; and (iii) by its terms, does not 
become operative for 30 days after the date of the filing, or such 
shorter time as the Commission may designate if consistent with the 
protection of investors and the public interest.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ In addition, Rule 19b-4(f)(6) requires a self-regulatory 
organization to give the Commission written notice of its intent to 
file the proposed rule change, along with a brief description and 
text of the proposed rule change, at least five business days prior 
to the date of filing of the proposed rule change, or such shorter 
time as designated by the Commission. The Exchange has satisfied 
this requirement.
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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.

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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-SAPPHIRE-2024-17 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-SAPPHIRE-2024-17. 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 website (https://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 website 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. Do 
not include personal identifiable information in submissions; you 
should submit only information that you wish to make available 
publicly. We may redact in part or withhold entirely from publication 
submitted material that is obscene or subject to copyright protection. 
All submissions should refer to file number SR-SAPPHIRE-2024-17 and 
should be submitted on or before September 16, 2024.
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    \13\ 17 CFR 200.30-3(a)(12).


[[Page 68486]]


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    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-19014 Filed 8-23-24; 8:45 am]
BILLING CODE 8011-01-P