[Federal Register Volume 88, Number 145 (Monday, July 31, 2023)]
[Notices]
[Pages 49542-49545]
[FR Doc No: 2023-16107]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97980; File No. SR-IEX-2023-07]

Self-Regulatory Organizations: Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend IEX
Rule 2.160 To Provide Eligible Individuals Another Opportunity To Elect
To Participate in the Maintaining Qualifications Program

July 25, 2023.
    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 July 13, 2023, the Investors Exchange LLC (``IEX'' or
the ``Exchange'') 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 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

    Pursuant to the provisions of Section 19(b)(1) under the Act,\4\
and Rule 19b-4 thereunder,\5\ IEX is filing with the Commission a
proposed rule change to amend IEX Rule 2.160 to provide eligible
individuals another opportunity to elect to participate in the
Maintaining Qualifications Program. The Exchange has designated this
proposal as non-controversial pursuant to Section 19(b)(3)(A)(iii) of
the Act \6\ and provided the Commission with the notice required by
Rule 19b-4(f)(6)(iii) thereunder.\7\
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    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CFR 240.19b-4.
    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6)(iii).
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    The text of the proposed rule change is available at the Exchange's
website at www.iextrading.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 these statements may be examined at the places specified in
Item IV below. The self-regulatory organization 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
    IEX is proposing to amend Supplementary Material .01 to IEX Rule
2.160(p)(c) to provide eligible individuals another opportunity to
elect to participate in in the Maintaining Qualifications Program
(``MQP''). This proposed rule change is based on a substantively
identical filing made by the Financial Industry Regulatory Authority,
Inc. (``FINRA''), which established a second enrollment period for the
MQP that ends on December 31, 2023 (``Second Enrollment Period'').\8\
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    \8\ See Securities Exchange Act Release No. 97184 (March 22,
2023) 88 FR 18359 (March 28, 2023) (SR-FINRA-2023-005) (``FINRA MQP
Second Enrollment Period Filing'').
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    On November 28, 2022, IEX amended IEX Rule 2.160 to, among other
things, provide eligible individuals who terminate any of their
representative or principal registration categories the option of
maintaining their qualification for any terminated registration
categories by completing annual continuing education through the new
MQP.\9\ By that time, however, the First Enrollment Period, defined
below, had expired leaving many eligible individuals unable to
participate in the MQP. This proposed rule change will provide those
eligible individuals a second opportunity to elect to participate in
the MQP to maintain their qualifications.
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    \9\ See Securities Exchange Act Release No. 96473 (December 9,
2022) 87 FR 77152 (December 16, 2022) (SR-IEX-2022-11).
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    Prior to the MQP, individuals whose registrations as
representatives or principals had been terminated for two or more years
could reregister as representatives or principals only if they
requalified by retaking and passing the applicable representative or
principal-level examination or if they obtained a waiver of such
examination(s) (the ``two-year qualification period''). The MQP
provides these individuals an alternative means of staying current on
their regulatory and securities knowledge following the termination of
a registration.\10\ Specifically, the MQP provides eligible individuals
a maximum of five years following the termination of a representative
or principal registration category to reregister without having to
requalify by examination or having to obtain an examination waiver,
subject to satisfying the conditions and limitations of the MQP,
including the annual completion of all prescribed continuing education.
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    \10\ The MQP does not eliminate the two-year qualification
period. Thus, eligible individuals who elect not to participate in
the MQP can continue to avail themselves of the two-year
qualification period (i.e., they can reregister within two years of
terminating a registration category without having to requalify by
examination or having to obtain an examination waiver).
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    Supplementary Material .01 to IEX Rule 2.160(p)(c) (Eligibility of
Other Persons to Participate in the Continuing Education Program
Specified in Subparagraph (c) of Rule 2.160(p)), describes a look-back
provision that extended the option of participating in the MQP to
individuals who: (1) were registered in a representative or principal
registration category with FINRA within two years immediately preceding
March 15, 2022; or (2) were participating in the Financial Services
Affiliate Waiver Program (``FSAWP'') \11\ pursuant to Supplementary
Material .01 to Rule 2.160(g) immediately preceding March 15, 2022
(collectively, ``Look-Back Individuals'').
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    \11\ The FSAWP is a waiver program for eligible individuals who
have left a member firm to work for a foreign or domestic financial
services affiliate of a member firm. FINRA stopped accepting new
participants for the FSAWP beginning on March 15, 2022; however,
individuals who were already participating in the FSAWP prior to
that date had the option of continuing in the FSAWP.
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    In the FINRA MQP Second Enrollment Period Filing, FINRA noted that
in Regulatory Notice 21-41 (November 17, 2021), it announced that Look-
Back Individuals who wanted to take part in the MQP were required to
make their election between January 31, 2022, and March 15, 2022 (the
``First Enrollment Period''). In addition to the announcement in
Regulatory Notice 21-41, FINRA notified the Look-Back Individuals about
the MQP and the First Enrollment Period via two separate mailings of
postcards to their home addresses and communications through their
FINRA Financial Professional Gateway (``FinPro'') accounts.\12\ In that
same filing, FINRA noted that shortly after the First Enrollment Period
ended, a number of Look-Back Individuals contacted FINRA and indicated
that they had only recently become aware of the MQP.\13\ In addition,
FINRA noted that the original six-week enrollment period may not have
provided Look-Back Individuals with adequate time to evaluate whether
they should participate in the MQP.\14\ Thus, FINRA both established a
Second Enrollment Period for the MQP, which lasts until December 31,
2023, and set forth a robust communication campaign involving more
active outreach to enhance public awareness of Second Enrollment Period
for the MQP.\15\
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    \12\ Look-Back Individuals were able to notify FINRA of their
election to participate in the MQP through their FinPro accounts.
    \13\ See supra note 8.
    \14\ See Id.
    \15\ See Id.
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    IEX, like FINRA, believes that greater public awareness of the MQP
and FINRA's additional outreach efforts, coupled with the longer
duration of the Second Enrollment Period (the first enrollment period
last six weeks), should help notify as many Look-Back-Individuals as
possible of their options with respect to the MQP, and should provide
them ample time to decide whether to participate in the MQP.\16\
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    \16\ See Id.
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    Thus, IEX proposes to amend Supplementary Material .01 to IEX Rule
2.160(p)(c) to conform with FINRA's recent amendments to FINRA Rule
1240.01. Specifically, IEX proposes to add language stating that
persons eligible for the MQP look-back period either: (i) had to elect
to participate with FINRA in the MQP by March 15, 2022, or (ii) shall
make their election to participate with IEX in the MQP during a new
enrollment period that begins on [date of the filing] and ends on
December 31, 2023. IEX also proposes to add language stating that Look-
Back Individuals who participate in the MQP shall have a participation
period of five years following the termination of their registration
categories, and that they must complete any prescribed 2022 and 2023
continuing education content by March 31, 2024.\17\ Lastly, IEX
proposes to delete the last sentence of Supplementary Material .01 to
IEX Rule 2.160(p)(c) that describes how FINRA adjusted participation
periods for individuals who enrolled in the MQP during the first
enrollment period.
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    \17\ Look-Back Individuals who elect to enroll in the MQP during
the Second Enrollment Period would also need to pay the annual
program fee of $100 for both 2022 and 2023 at the time of their
enrollment.
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    Look-Back Individuals who elect to enroll during the Second
Enrollment Period would need to notify FINRA of their election to
participate in the MQP through their FinPro accounts.\18\ IEX also
notes that Look-Back Individuals who elect to participate in the MQP
during the Second Enrollment Period

would continue to be subject to all of the other MQP eligibility and
participation conditions. For example, as clarified in the proposed
rule change, Look-Back Individuals electing to participate during the
Second Enrollment Period would have only a maximum of five years
following the termination of a registration category in which to
reregister without having to requalify by examination or having to
obtain an examination waiver.\19\
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    \18\ See Second Enrollment Period, https://www.finra.org/registration-exams-ce/continuing-education/CE-transformation/mqp#Second-Enrollment.
    \19\ For example, if a Look-Back Individual terminated a
registration category on May 1, 2020, and elects to participate in
the MQP on December 1, 2023, the individual's maximum participation
period would be five years starting on May 1, 2020, and ending no
later than May 1, 2025. If the individual does not reregister with a
member firm by May 1, 2025, the individual would need to requalify
by examination or obtain an examination waiver in order to
reregister after that date.
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    IEX has filed the proposed rule change for immediate effectiveness
and has requested that the Commission waive the 30-day operative delay.
The operative date will be the date of the filing of the proposed rule
change if the Commission grants the waiver.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the
requirements of Sections 6(b) \20\ and 6(b)(5) of the Act,\21\ in
particular, in that it is designed 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. IEX believes that
providing Look-Back Individuals a second opportunity to elect to
participate in the MQP is warranted because participation in the MQP
would reduce unnecessary impediments to requalification for these
individuals without diminishing investor protection. In addition, the
proposed rule change is consistent with other goals, such as the
promotion of diversity and inclusion in the securities industry by
attracting and retaining a broader and diverse group of professionals.
The MQP also allows the industry to retain expertise from skilled
individuals, protecting investors with the advantage of greater
experience among individuals working in the industry. IEX believes that
providing Look-Back Individuals a second opportunity to elect to
participate in the MQP will further these goals and objectives.
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    \20\ 15 U.S.C. 78f(b).
    \21\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the proposed rule change is consistent with
the provisions of Section 6(b)(5) of the Act,\22\ which requires, among
other things, that Exchange Rules must be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, and, in general, to protect investors
and the public interest, and Section 6(c)(3) of the Act,\23\ which
authorizes the Exchange to prescribe standards of training, experience
and competence for persons associated with Exchange.
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    \22\ 15 U.S.C. 78f(b)(5).
    \23\ 15 U.S.C. 78f(c)(3).
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    Finally, as described in the Purpose section, the proposed rule
change seeks to align the Exchange Rules with changes to FINRA rules
which have been allowed to take effect by the Commission.\24\ Thus,
this rule change raises no novel issues that have not already been
considered by and accepted by the Commission.
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    \24\ See supra note 8.
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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. The Exchange believes that
the proposed rule change, which harmonizes its rules with rule changes
adopted by FINRA, will reduce the regulatory burden placed on market
participants engaged in trading activities across different markets.

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

    IEX has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \25\ and Rule 19b-4(f)(6) thereunder.\26\
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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    \25\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \26\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \27\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\28\ 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. IEX has indicated that
the immediate operation of the proposed rule change is appropriate
because it would allow the Exchange to implement the proposed changes
to its continuing education rules without delay, thereby eliminating
the possibility of a significant regulatory gap between the FINRA rules
and the Exchange rules, providing more uniform standards across the
securities industry, and helping to avoid confusion for Exchange
members that are also FINRA members. IEX also noted that FINRA plans to
conduct additional public outreach efforts to promote awareness of the
MQP and the availability of the Second Enrollment Period among Look-
Back Individuals. Therefore, IEX indicated that the immediate operation
of the proposed rule change is also appropriate because it would help
to further notify Look-Back Individuals of their options and provide
additional time for them to consider whether they wish to participate
in the MQP program before the December 31, 2023 deadline. For these
reasons, the Commission believes that waiver of the 30-day operative
delay for this proposal is consistent with the protection of investors
and the public interest. Accordingly, the Commission hereby waives the
30-day operative delay and designates the proposal operative upon
filing.\29\
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    \27\ 17 CFR 240.19b-4(f)(6).
    \28\ 17 CFR 240.19b-4(f)(6)(iii).
    \29\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change'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) \30\ of the Act to

determine whether the proposed rule change should be approved or
disapproved.
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    \30\ 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-IEX-2023-07 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-IEX-2023-07. 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 (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 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 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. 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-IEX-2023-07 and should be submitted on
or before August 21, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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    \31\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-16107 Filed 7-28-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 90 (Tuesday, May 10, 2011)]
[Notices]
[Pages 27167-27168]
[FR Doc No: 2011-11343]

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

Notice of Applications for Certificates of Public Convenience and
Necessity and Foreign Air Carrier Permits Filed Under Subpart B
(Formerly Subpart Q) During the Week Ending April 23, 2011

    The following Applications for Certificates of Public Convenience
and Necessity and Foreign Air Carrier Permits were filed under Subpart
B (formerly Subpart Q) of the Department of Transportation's Procedural
Regulations (See 14 CFR 301.201 et seq.). The due date for Answers,
Conforming Applications, or Motions To Modify Scope are set forth below
for each application. Following the Answer period DOT may process the
application by expedited procedures. Such

procedures may consist of the adoption of a show-cause order, a
tentative order, or in appropriate cases a final order without further
proceedings.
    Docket Number: DOT-OST-2010-0096.
    Date Filed: April 21, 2011.
    Due Date for Answers, Conforming Applications, or Motion To Modify
Scope: May 11, 2011.
    Description: Application of Skymark Airlines Inc. (``Skymark'')
requesting renewal and amendment of its existing exemption authority
and a foreign air carrier permit to authorize Skymark to engage in the
following services: (i) Charter foreign air transportation of persons,
property, and mail between any point or points in Japan and any point
or points in the United States, and between any point or points in the
United States and any point or points in a third country or countries,
provided that such service constitutes part of a continuous operation,
with or without a change of aircraft, that includes service to or from
Japan for the purpose of carrying local traffic to or from Japan; and
(ii) other charters pursuant to the prior approval requirements.

Renee V. Wright,
 Program Manager, Docket Operations, Federal Register Liaison.
[FR Doc. 2011-11343 Filed 5-9-11; 8:45 am]
BILLING CODE 4910-9X-P