
[Federal Register Volume 77, Number 122 (Monday, June 25, 2012)]
[Notices]
[Pages 37945-37947]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15379]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67214; File No. SR-NYSEMKT-2012-09]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change To Amend Rules 921NY, 
921.1NY, and 931NY Prescribing the Registered Proprietary Traders 
Examination (Series 56) as the Qualifying Examination for Registered 
Market Makers, Market Maker Authorized Traders, and Floor Brokers

June 19, 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 June 13 2012, NYSE MKT LLC (the ``Exchange'' or ``NYSE 
MKT'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Exchange filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section 19 
(b)(3)(A)(iii) \4\ of the Act and Rule 19b-4(f)(6) thereunder \5\ which 
renders the proposal effective upon receipt of this filing by the 
Commission. The Commission is publishing this notice to solicit

[[Page 37946]]

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.
    \4\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \5\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to prescribe the Registered Proprietary 
Traders Examination (Series 56) (the ``Series 56 Examination'') as the 
qualifying examination for registered Market Makers, Market Maker 
Authorized Traders (``MMATs''), and Floor Brokers. The text of 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 proposes to prescribe the Series 56 Examination as the 
qualifying examination for registered Market Makers, MMATs, and Floor 
Brokers.
    Exchange Rule 921NY specifies that an applicant must pass an 
examination prescribed by the Exchange in order to register as a Market 
Maker. Exchange Rule 921.1NY specifies that an applicant must pass an 
examination conducted by the Exchange in order to register as a MMAT. 
For the purposes of these rules, NYSE Amex Options has prescribed the 
Series 48 as the qualifying exam for both Market Makers and MMATs. 
Exchange Rule 931NY specifies that an applicant must pass an 
examination prescribed by the Exchange in order to register as a Floor 
Broker. For the purposes of this rule, NYSE Amex Options has prescribed 
the Series 49 as the qualifying exam for Floor Brokers. NYSE Amex 
Options proposes to change the prescribed examination for Market 
Makers, MMATs, and Floor Brokers to the Series 56 Examination. In 
addition, the Exchange proposes to add a parenthetical reference to the 
Series 56 examination to Rules 921NY, 921.1NY and 931NY.
    The Series 56 Examination was developed by a committee comprised of 
industry representatives, Exchange staff and staff from other SROs. 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.\6\ As 
such the Exchange believes that an applicant who has passed the Series 
56 is proven to be qualified to act in the capacity of a Market Maker, 
Floor Broker and/or MMAT on NYSE Amex Options.
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    \6\ The Exchange previously submitted detailed content outline 
for the Series 56 examination to the Commission. See Securities 
Exchange Act Release No. 66482 (February 28, 2012), 77 FR 13170 
(March 5, 2012) (SR-NYSEAmex-2012-13).
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    While NYSE Amex Options will no longer be offering the Series 48 or 
Series 49 as qualifying exams to new applicants, the Exchange will 
recognize any individual who has passed one of those exams as having 
successfully completed a qualifying exam. An individual presently 
registered as a Market Maker, MMAT or Floor Broker on NYSE Amex 
Options, who has previously passed a qualifying exam as prescribed by 
the Exchange, will not be required to take the Series 56 as a condition 
of their continued registration.
    Following effectiveness of the proposed rule change, the Exchange 
will issue a Regulatory Bulletin announcing the compliance date within 
30 days of the operative date of the rule change.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) \7\ of the Securities Exchange Act of 1934 (``Act'') in general, 
and furthers the objectives of (1) Section 6(c)(3)(B) \8\ of the Act, 
pursuant to which a national securities exchange prescribes standards 
of training, experience and competence for members and their associated 
persons; and (2) Section 6(b)(5) of the Act,\9\ in that it is designed, 
among other things, to prevent fraudulent and manipulative acts and 
practices, 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 Exchange believes that prescribing the Series 56 
Examination for Market Makers, MMATs, and Floor Brokers is appropriate 
because the Series 56 Examination addresses industry topics that 
establish the foundation for the regulatory and procedural knowledge 
necessary for individuals required to register as Market Makers, MMATs, 
and Floor Brokers. In addition, the Series 56 Examination is shared by 
other exchanges and has become the industry standard.\10\ Accordingly, 
adopting the Series 56 Examination will help to promote consistency in 
examination requirements and uniformity across markets
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(c)(3)(B).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ See Securities Exchange Act Release No. 64699 (June 17, 
2011), 76 FR 36945 (June 23, 2011) (SR-CBOE-2011-056). See 
Securities Exchange Act Release No. 65054 (August 8, 2011), 76 FR 
50277 (August 12, 2011) (SR-ISE-2011-36).
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    The Exchange will continue to educate its ATP Holders regarding the 
requirements that are unique to the Exchange through its orientation 
programs to ensure that all ATP Holders will continue to be properly 
registered, trained, and qualified to perform their functions, which 
will protect investors and the public interest.

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.

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

[[Page 37947]]

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 19b4(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.
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    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes it is consistent with the protection of 
investors and the public interest to waive the 30-day operative 
delay.\15\ Waiver of the 30-day operative delay will enable an 
associated person of an Exchange firm to qualify as a Market Maker, 
MMAT or Floor Broker on NYSE Amex Options by passing the Series 56 
exam, which is shared by the other options exchanges. The Commission 
hereby waives the operative delay making the filing effective and 
operative upon filing.
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    \15\ 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-NYSEMKT-2012-09 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-NYSEMKT-2012-09. 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. Copies of the 
filing will also be available for inspection and copying at the NYSE's 
principal office and on its Internet Web site at www.nyse.com. 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-NYSEMKT-2012-09 and should 
be submitted on or before July 16, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-15379 Filed 6-22-12; 8:45 am]
BILLING CODE 8011-01-P


