
[Federal Register Volume 77, Number 43 (Monday, March 5, 2012)]
[Notices]
[Pages 13170-13171]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-5275]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66482; File No. SR-NYSEAMEX-2012-013]


Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Filing the Content 
Outline and Selection Specifications for the Proprietary Traders 
Qualification Examination (``Series 56'') Program

February 28, 2012.
    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 14, 2012, NYSE Amex LLC (the ``Exchange'' or 
``NYSE Amex'') 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 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to file the content outline and selection 
specifications for the Proprietary Traders Qualification Examination 
(``Series 56'') program. The text of the proposed rule change is 
available at the Exchange, the Commission's Public Reference Room, and 
www.nyse.com.

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Recently, the Exchange filed a proposed rule change to recognize a 
new category of limited representative registration for proprietary 
traders.\4\ Specifically, the Exchange will recognize the new 
registration category, ``Proprietary Trader,'' and the new examination, 
the Series 56. The new Proprietary Trader category will be limited to 
persons engaged solely in proprietary trading.
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    \4\ See SR-NYSEAmex-2012-11 (filed February 9, 2012).
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    The Exchange has been working with the Financial Industry 
Regulatory Authority (``FINRA'') and certain other exchanges, many of 
which have recently enhanced their registration requirements to require 
the registration of associated persons,\5\ to develop the content 
outline and qualification examination that would be applicable to 
proprietary traders. The Series 56 examination program is shared by the 
Exchange and the following self-regulatory organizations (``SROs''): 
Boston Options Exchange; C2 Options Exchange, Incorporated; Chicago 
Board Options Exchange, Incorporated; Chicago Stock Exchange, 
Incorporated; International Securities Exchange, LLC; The NASDAQ Stock 
Market, NASDAQ OMX BX, Inc.; NASDAQ OMX PHLX LLC; National Stock 
Exchange, Incorporated; New York Stock Exchange LLC; and NYSE Arca, 
Inc. Upon request by the SROs referenced above, FINRA staff convened 
committee of industry representatives, Exchange staff and staff from 
the other SROs referenced above to develop the criteria for the Series 
56 examination program. Certain exchanges have submitted filings to the 
Commission to utilize the Series 56.\6\
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    \5\ See e.g., Securities Exchange Act Release Nos. 63843 
(February 4, 2011), 76 FR 7884 (February 11, 2011) (SR-ISE-2010-
115); and 63314 (November 12, 2010), 75 FR 70957 (November 19, 2010) 
(SR-CBOE-2010-084).
    \6\ See e.g., Securities Exchange Act Release No. 64699 (June 
17, 2011), 76 FR 36945 (June 23, 2011) (SR-CBOE-2011-056).
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    The Series 56 examination tests a candidate's knowledge of 
proprietary trading generally and the industry rules applicable to 
trading of equity securities and listed options contracts. The Series 
56 examination covers, among other things, recordkeeping and recording 
requirements; types and characteristics of securities and investments; 
trading practices; and display, execution, and trading systems. While 
the examination is primarily dedicated to topics related to proprietary 
trading, the Series 56 examination also covers a few general concepts 
relating to customers.\7\
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    \7\ Proprietary trading firms do not have customers.
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    The qualification examination consists of 100 multiple choice 
questions. Candidates will have 150 minutes to complete the exam. The 
content outline describes the following topical sections comprising the 
examination: Personnel, Business Conduct, and Recordkeeping and 
Reporting Requirements, nine questions; Markets, Market Participants, 
Exchanges, and SROs, eight questions; Types and Characteristics of 
Securities and Investments, 20 questions; Trading Practices and 
Prohibited Acts, 50 questions; and Display, Execution, and Trading 
Systems, 13 questions. Representatives from the applicable SROs intend 
to meet on a periodic basis to evaluate and, as necessary, update the 
Series 56 examination program.
    The Exchange understands that the other applicable SROs will also 
file with the Commission similar filings regarding the Series 56 
examination program. The Exchange proposes to implement the Series 56 
examination program upon availability in Web CRD and notification to 
its membership.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Securities Exchange Act of 1934 (the ``Act'') \8\ in 
general, and furthers the objectives of Section 6(c)(3)(B) of the 
Act,\9\ pursuant to which a national securities exchange prescribes 
standards of training, experience and competence for members and their 
associated persons, in particular, by offering a new qualification 
examination for proprietary traders. This filing provides the content 
outline and relevant specifications for the Series 56 examination 
program, which the Exchange believes establishes the appropriate 
qualifications for this new registration category because it tests the 
knowledge generally applicable to proprietary trading.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(c)(3)(B).
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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 that is not necessary or appropriate 
in furtherance of the purposes of the Act.

[[Page 13171]]

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 \10\ and Rule 19b-4(f)(6) thereunder.\11\ 
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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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6)\12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\13\ 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 immediately upon filing.
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that it is consistent with the protection 
of investors and the public interest to waive the 30-day operative 
delay. Waiver of the 30-day operative delay will allow persons engaged 
solely in proprietary trading to use the Proprietary Traders 
Qualification Examination (``Series 56'') as soon as it is available 
for NYSEAmex in Web CRD. Therefore, the Commission designates the 
proposal operative upon filing.\14\
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    \14\ For purposes only 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.

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-NYSEAMEX-2012-013 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAMEX-2012-013. 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 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-
NYSEAMEX-2012-013 and should be submitted on or before March 26, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-5275 Filed 3-2-12; 8:45 am]
BILLING CODE 8011-01-P


