[Federal Register Volume 83, Number 196 (Wednesday, October 10, 2018)]
[Notices]
[Pages 51030-51040]
[FR Doc No: 2018-21903]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84350; File No. SR-NYSENAT-2018-21]

Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Amendments to Rules Regarding
Qualification, Registration and Continuing Education Applicable to
Equity Trading Permit Holders

    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 September 27, 2018, NYSE National, Inc. (the ``Exchange''
or ``NYSE National'') 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

    The Exchange proposes amendments to the Exchange's rules regarding
qualification, registration and continuing education requirements
applicable to Equity Trading Permit (``ETP'') Holders. To the extent
the Exchange's rule proposal is intended to harmonize with Financial
Regulatory Authority, Inc. (``FINRA'') rules and thus promote
consistency within the securities industry, the Exchange is only
adopting rules that are relevant to the Exchange's ETP Holders. The
Exchange is not adopting registration categories that are not
applicable to ETP Holders because ETP Holders do not engage in the type
of business that would require such registration. As such, the Exchange
is amending current Rule 2.2 regarding continuing education
requirements to reflect the FINRA rule; adopting Commentary .08 to
current Rule 2.2 regarding fingerprint information; adopting new Rule
2.1210 regarding registration requirements and related Commentary to
new Rule 2.1210; adopting new Rule 2.1220 regarding registration
categories \4\ and related Commentary to new Rule 2.1220; and adopting
new Rule 2.1230 regarding associated persons exempt from registration
and related Commentary to new Rule 2.1230. Each of these rule changes,
which are [sic] described in more detail below, would become operative
on October 1, 2018. The proposed rule change is available on the
Exchange's website at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
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    \4\ The relevant principal registration categories the Exchange
proposes to adopt are (1) Principal; (2) General Securities
Principal; (3) Compliance Officer; (4) Financial and Operations
Principal and Introducing Broker-Dealer Financial and Operations
Principal; (5) Securities Trader Principal; and (6) General
Securities Sales Supervisor. The relevant representative
registration categories the Exchange proposes to adopt are (1)
Representative; (2) General Securities Representative; and (3)
Securities Trader.
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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 amend its qualification, registration, and
continuing education requirements applicable to ETP Holders. The
proposed amendments are intended to: (i) Provide transparency and
clarity with respect to the Exchange's registration, qualification and
examination requirements; (ii) amend its rules relating to categories
of registration and respective qualification examinations required for
ETP Holders that engage in trading activities on the Exchange; (iii)
harmonize the Exchange's qualification, registration and examination
rules with those of FINRA \5\ so as to promote uniform standards across
the securities industry; and (iv) add new definitions of terms and make
other conforming changes to enhance the comprehensiveness and clarity
of the Exchange's rules.\6\ The proposed changes are discussed below.
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    \5\ See Securities Exchange Act Release No. 81098 (July 7,
2017), 82 FR 32419 (July 13, 2017) (SR-FINRA-2017-007) (Approval
Order) (the ``FINRA Filing''). The Exchange notes that in order to
maintain consistency with the FINRA Filing, the Exchange proposes to
incorporate certain terms from the relevant FINRA rule into the
Exchange's rule that may not be applicable to all ETP Holders. For
example, while ETP Holders may not be engaged in ``investment
banking'' activity, the Exchange proposes to adopt that term within
these registration rules to conform them to the FINRA rules.
    \6\ The conforming changes the Exchange proposes would
substitute the term ``ETP Holder'' for ``member'' and the term
``Exchange'' for ``FINRA.''
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A. Amendments to Rule 2.2(c)
    Rule 2.2(c)(1) currently provides, among other things, that an ETP
Holder shall register with the Exchange as a Principal any Person who
meets the definition of a Principal as described in Rule 1.1 and that
each such Principal must be registered as such through the FINRA
Central Registration Depository System (``CRD''), and must pass the
general Securities Principal (Series 24) examination. The current rule
further provides that a Principal must pass the Series 7 examination or
an equivalent foreign examination module as a prerequisite to taking
the Series 24 examination. The Exchange proposes to amend the current
rule to reflect the change of the prerequisite examination requirements
for Principals registered with the Exchange. The amended rule provides
that the Exchange would require the Series 7 examination and the
Securities Industry Essentials examination as a prerequisite to taking
the Series 24 examination and would no longer accept a foreign
examination module as a prerequisite given the elimination of the
foreign examination module in the FINRA Filing.
    Rule 2.2(c)(2) currently provides, among other things, that each
ETP Holder, other than a sole proprietorship or a proprietary trading
firm that has 25 or fewer Authorized Traders, is required to register
at least two Principals with the Exchange. Per the rule, a sole
proprietorship or a proprietary trading firm with 25 or fewer
Authorized Traders is required to register one Principal with the
Exchange. The

Exchange proposes to make a drafting change to the text of the rule
without any substantive change to the application of the current
rule.\7\ As proposed, each ETP Holder would continue to be required to
register at least two Principals unless the ETP Holder is a sole
proprietorship or a proprietary trading firm, in which case, such ETP
Holder would continue to be required to register one Principal with the
Exchange.
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    \7\ The proposed change would align the text of the rule to the
rules of other exchanges. See e.g., NASDAQ Stock Market Rule
1021(e).
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B. Amendments to Rule 2.2(e)--Continuing Education Requirements
    Rule 2.2(e) provides the continuing education requirements of
certain Registered Persons \8\ subsequent to their initial
qualification and registration with the Exchange, and includes a
Regulatory Element and a Firm Element. The Regulatory Element applies
to Registered Persons and consists of periodic computer-based training
on regulatory, compliance, ethical, supervisory subjects and sales
practice standards. The Firm Element consists of at least an annual,
member-developed and administered training programs designed to keep
Registered Persons current regarding securities products, services and
strategies offered by the member. For purposes of Rule 2.2(e), the
Exchange proposes to include within the definition of a Registered
Person any Person who is permissively registered pursuant to proposed
Rule 2.1210, Commentary .01, and any Person designated as eligible for
a waiver pursuant to proposed Rule 2.1210, Commentary .08.\9\ The
purpose of this change is to ensure all Registered Persons, including
those with permissive registrations, keep their knowledge of the
securities industry current. The inclusion of persons designated as
eligible for a waiver under the term ``Registered Person'' corresponds
to the requirements of proposed Rule 2.1210, Commentary .08.
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    \8\ For purposes of Rule 2.2(e), the term ``Registered Person''
means any Person registered with the Exchange as a General
Securities Representative, Securities Trader, Principal, Principal--
Financial and Operations (``FINOP''), Person Associated with an ETP
Holder, Authorized Trader or Market Maker Authorized Trader. See
Rule 2.2(e).
    \9\ The proposed change is substantially similar to that
contained in FINRA Rule 1240(a)(5).
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1. Regulatory Element
    The Exchange proposes to amend Rule 2.2(e)(1) to provide,
consistent with proposed Rule 2.1210, Commentary .08, that a waiver-
eligible person would be subject to a Regulatory Element program that
correlates to his or her most recent registration category, and that
the content of the Regulatory Element would be based on the same cycle
had the individual remain [sic] registered.\10\ The proposed amendment
to Rule 2.2(e)(1) also provides that if a waiver-eligible person fails
to complete the Regulatory Element during the prescribed time frames,
he or she would lose waiver eligibility.\11\
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    \10\ The proposed change is substantially similar to that
contained in FINRA Rule 1240(a)(1).
    \11\ The proposed change is substantially similar to that
contained in FINRA Rule 1240(a)(2).
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    Further, the Exchange proposes to amend Rule 2.2(e)(1) to provide
that any person who registration has been deemed inactive under the
rule may not accept or solicit business or receive any compensation for
the purchase or sale of securities. The proposed amendment provides,
however, that such person may receive trail or residual commissions
resulting from transactions completed before the inactive status,
unless the ETP Holder with which the person is associated has a policy
prohibiting such trail or residual commissions.\12\
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    \12\ The proposed change is substantially similar to that
contained in FINRA Rule 1240(a)(2).
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    Additionally, under Rule 2.2(e)(1), a Registered Person is required
to retake the Regulatory Element in the event that such person (i) is
subject to any statutory disqualification as defined in Section
3(a)(39) of the Exchange Act; (ii) is subject to suspension or to the
imposition of a fine of $5,000 or more for violation of any provision
of any securities law or regulation, or any agreement with or rule or
standard of conduct of any securities governmental agency, securities
self-regulatory organization, or as imposed by any such regulatory or
self-regulatory organization in connection with a disciplinary
proceeding; or (iii) is ordered as a sanction in a disciplinary action
to retake the Regulatory Element by any securities governmental agency
or self-regulatory organization. The Exchange proposes to amend Rule
2.2(e)(1) to provide an exception to a waiver-eligible person from
retaking the Regulatory Element and satisfy [sic] all of its
requirements.\13\
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    \13\ The proposed change is substantially similar to that
contained in FINRA Rule 1240(a)(3).
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2. Firm Element
    Current Rule 2.2(e)(2)(B)(ii) provides that programs used to
implement an ETP Holder's training program must be appropriate for the
business of the ETP Holder and, at a minimum must cover specific
matters concerning securities products, services, and strategies
offered by the ETP Holder. The Exchange proposes to amend the current
rule to expand the minimum standard for such training programs by
requiring that, at a minimum, a firm's training program must also cover
training in ethics and professional responsibility.\14\
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    \14\ The proposed change is substantially similar to that
contained in FINRA Rule 1240(b)(2).
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C. Amendments to Rule 2.2, Commentary .01
    Current Rule 2.2, Commentary .01, states that the Exchange requires
the General Securities Representative examination (``Series 7'') or an
equivalent foreign examination module approved by the Exchange in
qualifying Persons seeking registration as general securities
representatives. As noted above, given the elimination of the foreign
examination module in the FINRA Filing, the Exchange proposes to amend
the current rule to remove a foreign examination module as an
equivalent requirement to register as a general securities
representative. As amended, Rule 2.2, Commentary .01, would provide
that qualifying Persons seeking registration as a general securities
representatives would be required to take the Series 7 examination and
the Securities Industry Essentials examination.
D. Amendments to Rule 2.2, Commentary .02
    Current Rule 2.2, Commentary .02, states that the Exchange will
accept the New York Stock Exchange Chief Compliance Officer Examination
(``NYSE Series 14'') as an alternative qualification to register as
Principal an individual identified as the Chief Compliance Officer on
an ETP Holder's Form BD. The Exchange proposes a technical change to
rename the NYSE Series 14 examination as the Compliance Official
Examination which is the correct name of the examination.
E. Amendments to Rule 2.2, Commentary .03
    Current Rule 2.2, Commentary .03, provides that the definition of a
Securities Trader is defined in Rule 1.1. With this proposed rule
change, the Exchange is adopting FINRA's definition of Securities
Trader (as described below) and therefore, proposes to replace the
reference to Rule 1.1 to Rule 2.1220(b)(3) in current Rule 2.2(e),
Commentary .03, as the appropriate rule in the Exchange's Rulebook
where the definition of Securities Trader can be found. In doing so,
the Exchange proposes to amend current Rule 1.1(ac) which provides the
current definition of Securities Trader

and proposes to mark that rule as `Reserved.'
    Further, current Rule 2.2, Commentary .03, states that each Person
Associated with an ETP Holder meeting the definition of a Securities
Trader under Rule 1.1 must pass the Securities Trader Qualification
examination (``Series 57'') and register as such in CRD. The rule
further provides that a Person registered as a Securities Trader shall
not function in any other registration category unless he/she is also
qualified in such other registration category. Given the formulation of
the Securities Industry Essential examination which all potential
representative-level registrants would be required to pass, the
Exchange proposes to amend the current rule to require each Person
Associated with an ETP Holder that meets the definition of a Securities
Trader to take the Series 57 examination and the Securities Industry
Essential examination and register as such in CRD.
F. Amendments to Rule 2.2, Commentary .04
    Current Rule 2.2, Commentary .04, provides that the definition of a
Securities Trader Principal is defined in Rule 1.1. With this proposed
rule change, the Exchange is adopting FINRA's definition of Securities
Trader (as described below) and therefore, proposes to replace the
reference to Rule 1.1 to Rule 2.1220(a)(5) in current Rule 2.2(e),
Commentary .04, as the appropriate rule in the Exchange's Rulebook
where the definition of Securities Trader Principal can be found. In
doing so, the Exchange proposes to amend current Rule 1.1(ad) which
provides the current definition of Securities Trader Principal and
proposes to mark that rule as `Reserved.'
    Current Rule 2.2, Commentary .04, references by incorporation NASD
Rule 1032(f).\15\ With this proposed rule change, the Exchange is
adopting the content of Rule 1032(f) into the Exchange's rules and
therefore would no longer need to reference by incorporation the NASD
rule. The Exchange, therefore, proposes to replace reference to NASD
Rule 1032(f) in Rule 2.2, Commentary .04, with Rule 2.1220(b)(3) which
is a proposed new Exchange rule that is substantively similar to NASD
Rule 1032(f).
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    \15\ NASD Rule 1032(f) was recently amended to expand the scope
of individuals associated with a FINRA member broker-dealer who are
required to register as Security Traders. See Securities Exchange
Act Release No. 77551 (April 7, 2016), 81 FR 21914 (April 13, 2016)
(SR-FINRA-2016-007) (Order Approving a Proposed Rule Change To
Require Registration as Securities Traders of Associated Persons
Primarily Responsible for the Design, Development, Significant
Modification of Algorithmic Trading Strategies or Responsible for
the Day-to-Day Supervision of Such Activities).
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G. Amendment to Rule 2.2--Commentary .06
    Rule 2.2, Commentary .06, currently provides that the Exchange may,
in exceptional cases and where good cause is shown, waive a proficiency
examination and accept other standards as evidence of an applicant's
qualifications for registration. The rule further provides that
advanced age or physical infirmity will not individually of themselves
constitute sufficient grounds to waive a qualification examination and
that experience in fields ancillary to the investment banking or
securities business may constitute sufficient grounds to waive a
qualification examination. In light of the Exchange's proposal to adopt
proposed new Rule 2.1210, Commentary .02 (Qualification Examinations
and Waivers of Examinations),\16\ which adopts revised language
regarding the waiver of examinations (see below for a further
discussion), the Exchange proposes to delete the text of current Rule
2.2, Commentary .06, in its entirety.
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    \16\ The proposed rule is substantially similar to FINRA Rule
1210.03.
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H. Proposed New Rule 2.2--Commentary .08--Fingerprint Information \17\
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    \17\ The proposed rule is substantially similar to FINRA Rule
1010(d).
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    The Exchange proposes to adopt new Rule 2.2(e), Commentary .08,
regarding the submission of fingerprint information by ETP Holders. As
proposed, upon filing an electronic Form U4 on behalf of a person
applying for registration, an ETP Holder would be required to promptly
submit fingerprint information for that person. If the ETP Holder fails
to submit the fingerprint information within 30 days after the Exchange
receives the electronic Form U4, the person's registration shall be
deemed inactive and the person would be required to immediately cease
all activities requiring registration and would be prohibited from
performing any duties and functioning in any capacity requiring
registration. The proposed rule further provides allows [sic] the
Exchange to administratively terminate a registration that is inactive
for a period of two years. However, a person whose registration is
administratively terminated may seek to reactivate his or her
registration by reapplying for registration and meeting the
qualification requirements under Exchange rules.
I. Proposed New Rules 2.1210 Through 2.1230
    As a general matter, FINRA administers qualification examinations
that are designed to establish that persons associated with ETP Holders
have attained specified levels of competence and knowledge. Over time,
the examination program has increased in complexity to address the
introduction of new products and functions, and related regulatory
concerns and requirements. As a result, today, there are a large number
of examinations, considerable content overlap across the
representative-level examinations and requirements for individuals in
various segments of the industry to pass multiple examinations. To
address these issues, FINRA has formulated a general knowledge
examination called the Securities Industry Essential (``SIE'') that all
potential representative-level registrants would take.\18\ Rule changes
related to the adoption of the SIE and other proposed new rules are
discussed below.
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    \18\ The SIE would assess basic product knowledge; the structure
and function of the securities industry markets, regulatory agencies
and their functions; and regulated and prohibited practices. In
particular, the SIE will cover four major areas. The first,
``Knowledge of Capital Markets,'' focuses on topics such as types of
markets and offerings, broker-dealers and depositories, and economic
cycles. The second, ``Understanding Products and Their Risks,''
covers securities products at a high level as well as associated
investment risks. The third, ``Understanding Trading, Customer
Accounts and Prohibited Activities,'' focuses on accounts, orders,
settlement and prohibited activities. The final area, ``Overview of
the Regulatory Framework,'' encompasses topics such as SROs,
registration requirements and specified conduct rules.
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1. Proposed Rule 2.1210--Registration Requirements \19\
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    \19\ The proposed rule is substantially similar to FINRA Rule
1210.
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    Proposed Rule 2.1210 provides that each person engaged in the
investment banking or securities business of an ETP Holder must
register with the Exchange as a representative or principal in each
category of registration appropriate to his or her functions and
responsibilities as specified in proposed Rule 2.1220, unless exempt
from registration pursuant to proposed Rule 2.1230. Proposed Rule
2.1210 also provides that such person is not qualified to function in
any registered capacity other than that for which the person is
registered, unless otherwise stated in the rules.

2. Proposed Rule 2.1210, Commentary .01--Permissive Registrations \20\
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    \20\ The proposed rule is substantially similar to FINRA Rule
1210.02.
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    The Exchange currently does not have a specific rule that provides
for permissive registrations. With this proposed rule change, and to
conform its rules to the FINRA rules, the Exchange proposes to adopt a
specific rule regarding permissive registrations. Proposed Rule 2.1210,
Commentary .01, allows any associated person to obtain and maintain any
registration permitted by an ETP Holder. For instance, an associated
person of an ETP Holder working solely in a clerical or ministerial
capacity, such as in an administrative capacity, would be able to
obtain and maintain a General Securities Representative registration
with the ETP Holder. As another example, an associated person of an ETP
Holder who is registered, [sic] and functioning solely as a General
Securities Representative would be able to obtain and maintain a
General Securities Principal registration with the ETP Holder. Further,
proposed Rule 2.1210, Commentary .01, allows an individual engaged in
the securities business of a foreign securities affiliate or subsidiary
of an ETP Holder to obtain and maintain any registration permitted by
the ETP Holder.
    The Exchange is proposing to permit the registration of such
individuals for several reasons. First, an ETP Holder may foresee a
need to move a former representative or principal who has not been
registered for two or more years back into a position that would
require such person to be registered. Currently, such persons are
required to requalify (or obtain a waiver of the applicable
qualification examinations) and reapply for registration. Second, the
proposed rule change would allow ETP Holders to develop a depth of
associated persons with registrations in the event of unanticipated
personnel changes. Finally, allowing registration in additional
categories encourages greater regulatory understanding.
    Individuals maintaining a permissive registration under the
proposed rule change would be considered Registered Persons and subject
to all Exchange rules, to the extent relevant to their activities.
Additionally, consistent with the requirements of the Exchange's
supervision rules, as proposed, ETP Holders would be required to have
adequate supervisory systems and procedures reasonably designed to
ensure that individuals with permissive registrations do not act
outside the scope of their assigned functions. With respect to an
individual who solely maintains a permissive registration, such as an
individual working exclusively in an administrative capacity, the
individual's day-to-day supervisor may be a non-Registered Person.
However, for purposes of compliance with the Exchange's supervision
rules, an ETP Holder would be required to assign a registered
supervisor who would be responsible for periodically contacting such
individual's day-to-day supervisor to verify that the individual is not
acting outside the scope of his or her assigned functions. If such
individual is permissively registered as a representative, the
registered supervisor must be registered as a representative or
principal. If the individual is permissively registered as a principal,
the registered supervisor must be registered as a principal.\21\
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    \21\ In either case, the registered supervisor of an individual
who solely maintains a permissive registration would not be required
to be registered in the same representative or principal
registration category as the permissively-registered individual.
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3. Proposed Rule 2.1210, Commentary .02--Qualification Examinations and
Waivers of Examinations \22\
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    \22\ The proposed rule is substantially similar to FINRA Rule
1210.03.
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    Proposed Rule 2.1210, Commentary .02, provides that before the
registration of a person as a representative can become effective under
proposed Rule 2.1210, such person must pass the SIE and an appropriate
representative-level qualification examination as specified in proposed
Rule 2.1220.\23\ Proposed Rule 2.1210, Commentary .02, also provides
that before the registration of a person as a principal can become
effective under proposed Rule 2.1210, such person must pass an
appropriate principal-level qualification examination as specified in
proposed Rule 2.1220.
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    \23\ Proposed Rule 2.1220 sets forth each registration category
and applicable qualification examination for ETP Holders on the
Exchange.
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    Further, proposed Rule 2.1210, Commentary .02, provides that if a
Registered Person's job functions change and he or she needs to become
registered in another representative-level category, he or she would
not need to pass the SIE again. Rather, the Registered Person would
need to pass only the appropriate representative-level qualification
examination.
    Moreover, proposed Rule 2.1210, Commentary .02, provides that all
associated persons, such as associated persons whose functions are
solely and exclusively clerical or ministerial, are eligible to take
the SIE. Proposed Rule 2.1210, Commentary .02, also provides that
individuals who are not associated persons of firms, such as members of
the general public, are eligible to take the SIE. The Exchange believes
that expanding the pool of individuals who are eligible to take the SIE
would enable prospective securities industry professionals to
demonstrate to prospective employers a basic level of knowledge prior
to submitting a job application. Further, this approach would allow for
more flexibility and career mobility within the securities industry.
While all associated persons of firms as well as individuals who are
not associated persons would be eligible to take the SIE pursuant to
the proposed rule, passing the SIE alone would not qualify them for
registration with the Exchange. Rather, to be eligible for registration
with the Exchange, an individual must pass an applicable representative
or principal qualification examination and complete the other
requirements of the registration process.
    Proposed Rule 2.1210, Commentary .02, also provides that the
Exchange may, in exceptional cases and where good cause is shown,
pursuant to the Rule 10.9600 Series, waive the applicable qualification
examination(s) and accept other standards as evidence of an applicant's
qualifications for registration. The proposed rule further provides
that the Exchange will only consider examination waiver requests
submitted by an ETP Holder for individuals associated with the ETP
Holder who are seeking registration in a representative- or principal-
level registration category. Moreover, the proposed rule states that
the Exchange will consider waivers of the SIE alone or the SIE and the
representative- and principal-level examination(s) for such
individuals. The Exchange would not consider a waiver of the SIE for
non-associated persons or for associated persons who are not
registering as representatives or principals.
4. Proposed Rule 2.1210, Commentary .03--Requirements for Registered
Persons Functioning as Principals for a Limited Period \24\
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    \24\ The proposed rule is substantially similar to FINRA Rule
1210.04.
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    Proposed Rule 2.1210, Commentary .03, provides that an ETP Holder
may designate any person currently registered, or who becomes
registered, with the ETP Holder as a representative to function as a
principal for a limited period, provided that such person has at least
18 months of experience functioning as a registered representative with
[sic] the five-year

period immediately preceding the designation. The proposed rule is
intended to ensure that representatives designated to function as
principals for the limited period under the proposal have an
appropriate level of registered representative experience. The proposed
rule clarifies that the requirements of the rule apply to designations
to any principal category, including those categories that are not
subject to a prerequisite representative-level registration
requirement, such as the Financial and Operations Principal
registration category.\25\
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    \25\ The Exchange notes that qualifying as a registered
representative is a prerequisite to qualifying as a principal except
with respect to the following principal-level registrations: (1)
Compliance Official; (2) Financial and Operations Principal; and (3)
Introducing Broker-Dealer Financial and Operations Principal.
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    The proposed rule also clarifies that the individual must fulfill
all applicable prerequisite registration, fee and examination
requirements before his or her designation as a principal. Further, the
proposed rule provides that in no event may such person function as a
principal beyond the initial 120 calendar days without having
successfully passed an appropriate principal qualification examination.
The proposed rule also provides an exception to the experience
requirement for principals who are designated by an ETP Holder to
function in other principal categories for a limited period.
Specifically, the proposed rule states that an ETP Holder may designate
any person currently registered, or who becomes registered, with the
ETP Holder as a principal to function in another principal category for
120 calendar days before passing any applicable examinations.
5. Proposed Rule 2.1210, Commentary .04--Rules of Conduct for Taking
Examinations and Confidentiality of Examinations \26\
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    \26\ The proposed rule is substantially similar to FINRA Rule
1210.05.
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    Proposed Rule 2.1210, Commentary .04 states that associated persons
taking the SIE would be subject to the SIE Rules of Conduct, and
associated persons taking a representative or principal examination
would be subject to the Rules of Conduct for representative and
principal examinations. Pursuant to proposed Rule 2.1210, Commentary
.04, a violation of the SIE Rules of Conduct or the Rules of Conduct
for representative and principal examinations by an associated person
would be deemed to be a violation of Rule 11.3.1. Moreover, if an
associated person is deemed to have violated the SIE Rules of Conduct
or the Rules of Conduct for representative and principal examinations,
the associated person may forfeit the results of the examination and
may be subject to disciplinary action by the Exchange.
    Further, the proposed rule states that individuals taking the SIE
who are not associated persons must agree to be subject to the SIE
Rules of Conduct. Among other things, the SIE Rules of Conduct would
require individuals to attest that they are not qualified to engage in
the investment banking or securities business based on passing the SIE
and would prohibit individuals from cheating on the examination or
misrepresenting their qualifications to the public subsequent to
passing the SIE. Moreover, non-associated persons may forfeit their SIE
results and may be prohibited from retaking the SIE if the Exchange
determines that they cheated on the SIE or that they misrepresented
their qualifications to the public subsequent to passing the SIE.
    The proposed rule further notes that the Exchange considers all
qualification examinations [sic] content to be highly confidential and
that the removal of examination content from an examination center,
reproduction, disclosure, receipt from or passing to any person, or use
for study purposes of any portion of such qualification examination or
any other use that would compromise the effectiveness of the
examinations and the use in any manner and at any time of the questions
or answers to the examinations is prohibited and would be deemed a
violation of Rule 11.3.1.
6. Proposed Rule 2.1210, Commentary .05--Waiting Periods for Retaking a
Failed Examination \27\
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    \27\ The proposed rule is substantially similar to FINRA Rule
1210.06.
---------------------------------------------------------------------------

    Proposed Rule 2.1210, Commentary .05 provides that any person who
fails a qualification examination may retake that examination after 30
calendar days from the date of the person's last attempt to pass that
examination. The proposed rule further provides that if a person fails
an examination three or more times in succession within a two-year
period, he or she would be prohibited from retaking the examination
either until a period of 180 calendar days from the date of the
person's last attempt to pass it [sic]. These waiting periods would
apply to the SIE and the representative- and principal-level
examinations. Moreover, the proposed rule provides that non-associated
persons taking the SIE must agree to be subject to the same waiting
periods for retaking the SIE.
7. Proposed Rule 2.1210, Commentary .06--All Registered Persons Must
Satisfy the Regulatory Element of Continuing Education \28\
---------------------------------------------------------------------------

    \28\ The proposed rule is substantially similar to FINRA Rule
1210.07.
---------------------------------------------------------------------------

    Pursuant to Rule 2.2(e), the CE requirements applicable to
Registered Persons consist of a Regulatory Element \29\ and a Firm
Element.\30\ The Regulatory Element applies to Registered Persons and
must be completed within prescribed time frames.\31\ For purposes of
the Regulatory Element, a Registered Person is any person registered
with the Exchange as a General Securities Principal, Securities Trader,
Principal, FINOP, Person Associated with an ETP Holder, Authorized
Trader or Market Maker Authorized Trader. The Firm Element consists of
annual, ETP Holder-developed and administered training programs
designed to keep covered Registered Persons current regarding
securities products, services and strategies offered by the ETP Holder.
For purposes of the Firm Element, the term covered Registered Persons
means any Person registered with an ETP Holder who has direct contact
with customers in the conduct of the ETP Holder's securities sales,
trading and investment banking activities and to the immediate
supervisors of such Persons.
---------------------------------------------------------------------------

    \29\ See Rule 2.2(e)(1).
    \30\ See Rule 2.2(e)(2).
    \31\ Pursuant to Rule 2.2(e)(1), each specified Registered
Person is required to complete the Regulatory Element initially
within 120 days after the person's second registration anniversary
date and, thereafter, within 120 days after every third registration
anniversary date. A Registered Person who has not completed the
Regulatory Element program within the prescribed time frames will
have his or her registrations deemed inactive and designated as ``CE
inactive'' on the CRD system until such time as the requirements of
the program have been satisfied. A CE inactive person is prohibited
from performing, or being compensated for, any activities requiring
registration, including supervision. Moreover, if a Registered
Person is CE inactive for a two-year period, the Exchange will
administratively terminate the person's registration status. The
two-year period would be calculated from the date the person becomes
CE inactive. In either case, such person must requalify (or obtain a
waiver of the applicable qualification examination(s)) to be re-
eligible for registration.
---------------------------------------------------------------------------

    The Exchange believes that all Registered Persons, regardless of
their activities, should be subject to the Regulatory Element of the CE
requirements so that they can keep their knowledge of the securities
industry current. Therefore, the Exchange proposes to adopt Rule
2.1210, Commentary .06, to clarify that all Registered Persons,
including those who solely maintain a permissive

registration, are required to satisfy the Regulatory Element, as
specified in Rule 2.2(e)(1). The Exchange is making corresponding
changes to Rule 2.2(e)(1). The Exchange is not proposing any changes to
the Firm Element requirement at this time. Individuals who have passed
the SIE but not a representative- or principal-level examination and do
not hold a registered position would not be subject to any CE
requirements.
    Proposed Rule 2.1210, Commentary .06, also provides that a
Registered Person of an ETP Holder who becomes CE inactive would not be
permitted to be registered in another registration category with the
ETP Holder or be registered in any registration category with another
ETP Holder, until the person has satisfied the Regulatory Element.
8. Proposed Rule 2.1210, Commentary .07--Lapse of Registration and
Expiration of the SIE \32\
---------------------------------------------------------------------------

    \32\ The proposed rule is substantially similar to FINRA Rule
1210.08.
---------------------------------------------------------------------------

    Proposed Rule 2.1210, Commentary .07, provides that any person who
was last registered as a representative two or more years immediately
preceding the date of receipt by the Exchange of a new application for
registration as a representative is required to pass a qualification
examination for representatives appropriate to the category of
registration as specified in proposed Rule 2.1220(b). Proposed Rule
2.1210, Commentary .07, also sets forth that a passing result on the
SIE would be valid for up to four years. Therefore, under the proposed
rule change, an individual who passes the SIE and is an associated
person of an ETP Holder at the time would have up to four years from
the date he or she passes the SIE to pass a representative-level
examination to register as a representative with that ETP Holder, or a
subsequent ETP Holder, without having to retake the SIE. In addition,
an individual who passes the SIE and is not an associated person at the
time would have up to four years from the date he or she passes the SIE
to become an associated person of an ETP Holder and pass a
representative-level examination and register as a representative
without having to retake the SIE.
    Moreover, an individual holding a representative-level registration
who leaves the industry after the effective date of this proposed rule
change would have up to four years to re-associate with an ETP Holder
and register as a representative without having to retake the SIE.
However, the four-year expiration period in the proposed rule change
extends only to the SIE, and not the representative- and principal-
level registrations. The representative- and principal-level
registrations would continue to be subject to a two-year expiration
period as is the case today.
    Finally, proposed Rule 2.1210, Commentary .07, clarifies that, for
purposes of the proposed rule, an application would not be considered
to have been received by the Exchange if that application does not
result in a registration.
9. Proposed Rule 2.1210, Commentary .08--Waiver of Examinations for
Individuals Working for a Financial Services Industry Affiliate of an
ETP Holder \33\
---------------------------------------------------------------------------

    \33\ The proposed rule is substantially similar to FINRA Rule
1210.09.
---------------------------------------------------------------------------

    Proposed Rule 2.1210, Commentary .08, provides the process for
individuals working for a financial services industry affiliate of an
ETP Holder \34\ to terminate their registrations with the ETP Holder
and be granted a waiver of their requalification requirements upon re-
registering with an ETP Holder, provided the firm that is requesting
the waiver and the individual satisfy the criteria for a Financial
Services Affiliate (``FSA'') waiver.
---------------------------------------------------------------------------

    \34\ Proposed Rule 2.1210, Commentary .07 [sic], defines a
``financial services industry affiliate of an ETP Holder'' as a
legal entity that controls, is controlled by or is under common
control with an ETP Holder and is regulated by the SEC, CFTC, state
securities authorities, federal or state banking authorities, state
insurance authorities, or substantially equivalent foreign
regulatory authorities.
---------------------------------------------------------------------------

    Under the proposed waiver process, the first time a Registered
Person is designated as eligible for a waiver based on the FSA
criteria, the ETP Holder with which the individual is registered would
notify the Exchange of the FSA designation. The ETP Holder would
concurrently file a full Form U5 terminating the individual's
registration with the firm, which would also terminate the individual's
other SRO and state registrations. To be eligible for initial
designation as an FSA-eligible person by an ETP Holder, an individual
must have been registered for a total of five years within the most
recent 10-year period prior to the designation, including for the most
recent year with that ETP Holder. An individual would have to satisfy
these preconditions only for purposes of his or her initial designation
as an FSA-eligible person, and not for any subsequent FSA
designation(s). Thereafter, the individual would be eligible for a
waiver for up to seven years from the date of initial designation,\35\
provided that the other conditions of the waiver, as described below,
have been satisfied. Consequently, an ETP Holder other than the ETP
Holder that initially designated an individual as an FSA-eligible
person may request a waiver for the individual and more than one ETP
Holder may request a waiver for the individual during the seven-year
period.\36\
---------------------------------------------------------------------------

    \35\ Individuals would be eligible for a single, fixed seven-
year period from the date of initial designation, and the period
would not be tolled or renewed.
    \36\ The following examples illustrate this point:
    Example 1. Firm A designates an individual as an FSA-eligible
person by notifying the Exchange and files a Form U5. The individual
joins Firm A's financial services affiliate. Firm A does not submit
a waiver request for the individual. After working for Firm A's
financial services affiliate for three years, the individual
directly joins Firm B's financial services affiliate for three
years. Firm B then submits a waiver request to register the
individual.
     Example 2. Same as Example 1, but the individual directly joins
Firm B after working for Firm A's financial services affiliate, and
Firm B submits a waiver request to register the individual at that
point in time.
     Example 3. Firm A designates an individual as an FSA-eligible
person by notifying the Exchange and files a Form U5. The individual
joins Firm A's financial services affiliate for three years. Firm A
then submits a waiver request to re-register the individual. After
working for Firm A in a registered capacity for six months, Firm A
re-designates the individual as an FSA-eligible person by notifying
the Exchange and files a Form U5. The individual rejoins Firm A's
financial services affiliate for two years, after which the
individual directly joins Firm B's financial services affiliate for
one year. Firm B then submits a waiver request to register the
individual.
     Example 4. Same as Example 3, but the individual directly joins
Firm B after the second period of working for Firm A's financial
services affiliate, and Firm B submits a waiver request to register
the individual at that point in time.
---------------------------------------------------------------------------

    An individual designated as an FSA-eligible person would be subject
to the Regulatory Element of CE while working for a financial services
industry affiliate of an ETP Holder. The individual would be subject to
a Regulatory Element program that correlates to his or her most recent
registration category, and CE would be based on the same cycle had the
individual remained registered. If the individual fails to complete the
prescribed Regulatory Element during the 120-day window for taking the
session, he or she would lose FSA eligibility (i.e., the individual
would have the standard two-year period after termination to re-
register without having to retake an examination). The Exchange is
making corresponding changes to Rule 2.2(e).
    Upon registering an FSA-eligible person, a firm would file a Form
U4 and request the appropriate registration(s) for the individual. The
firm would also submit an examination waiver request

to the Exchange,\37\ similar to the process used today for waiver
requests, and it would represent that the individual is eligible for an
FSA waiver based on the conditions set forth below. The Exchange would
review the waiver request and make a determination of whether to grant
the request within 30 calendar days of receiving the request. The
Exchange would summarily grant the request if the following conditions
are met:
---------------------------------------------------------------------------

    \37\ The Exchange would consider a waiver of the representative-
level qualification examination(s), the principal-level
qualification examination(s) and the SIE, as applicable.
---------------------------------------------------------------------------

    (1) Prior to the individual's initial designation as an FSA-
eligible person, the individual was registered for a total of five
years within the most recent 10-year period, including for the most
recent year with the ETP Holder that initially designated the
individual as an FSA-eligible person;
    (2) The waiver request is made within seven years of the
individual's initial designation as an FSA-eligible person by an ETP
Holder;
    (3) The initial designation and any subsequent designation(s) were
made concurrently with the filing of the individual's related Form U5;
    (4) The individual continuously worked for the financial services
affiliate(s) of an ETP Holder since the last Form U5 filing;
    (5) The individual has complied with the Regulatory Element of CE;
and
    (6) The individual does not have any pending or adverse regulatory
matters, or terminations, that are reportable on the Form U4, and has
not otherwise been subject to a statutory disqualification while the
individual was designated as an FSA-eligible person with an ETP Holder.
    Following the Form U5 filing, an individual could move between the
financial services affiliates of an ETP Holder so long as the
individual is continuously working for an affiliate. Further, an ETP
Holder could submit multiple waiver requests for the individual,
provided that the waiver requests are made during the course of the
seven-year period.\38\ An individual who has been designated as an FSA-
eligible person by an ETP Holder would not be able to take additional
examinations to gain additional registrations while working for a
financial services affiliate of an ETP Holder.
---------------------------------------------------------------------------

    \38\ For example, if an ETP Holder submits a waiver request for
an FSA-eligible person who has been working for a financial services
affiliate of the ETP Holder for three years and re-registers the
individual, the ETP Holder could subsequently file a Form U5 and re-
designate the individual as an FSA-eligible person. Moreover, if the
individual works with a financial services affiliate of the ETP
Holder for another three years, the ETP Holder could submit a second
waiver request and re-register the individual upon returning to the
ETP Holder.
---------------------------------------------------------------------------

10. Proposed Rule 2.1210, Commentary .09--Status of Persons Serving in
the Armed Forces of the United States \39\
---------------------------------------------------------------------------

    \39\ The proposed rule is substantially similar to FINRA Rule
1210.10.
---------------------------------------------------------------------------

    Proposed Rule 2.1210, Commentary .09 provides specific relief to
Registered Persons serving in the Armed Forces of the United States.
Among other things, the proposed rule permits a Registered Person of an
ETP Holder who volunteers for or is called into active duty in the
Armed Forces of the United States to be registered in an inactive
status and remain eligible to receive ongoing transaction-related
compensation. The proposed rule also includes specific provisions
regarding the deferment of the lapse of registration requirements for
formerly Registered Persons serving in the Armed Forces of the United
States. The proposed rule further requires that the ETP Holder with
which such person is registered promptly notify the Exchange of such
person's return to employment with the ETP Holder. The proposed rule
would require an ETP Holder that is a sole proprietor to also similarly
notify the Exchange of his or her return to participation in the
investment banking or securities business. The proposed rule also
provides that the Exchange would defer the lapse of the SIE for
formerly Registered Persons serving in the Armed Forces of the United
States.
J. Proposed New Rule 2.1220--Registration Categories \40\
---------------------------------------------------------------------------

    \40\ The Exchange is not adopting the following categories from
the FINRA Filing because ETP Holders do not engage in the type of
business that would require registration with the Exchange:
Investment Banking Principal, Research Principal, Registered Options
Principal, Government Securities Principal, Investment Company and
Variable Contracts Products Principal, Direct Participation Programs
Principal, Private Securities Offerings Principal, Supervisory
Analyst, Operations Professional, Investment Banking Representative,
Research Analyst, Investment Company and Variable Contracts Products
Representative, Direct Participation Programs Representative, and
Private Securities Offering Representative. The Exchange is also not
adopting the following categories because the FINRA Filing
eliminated them: Order Processing Assistant Representative, United
Kingdom Securities Representative, Canadian Securities
Representative, Options Representative, Corporate Securities
Representative and Government Securities Representative.
---------------------------------------------------------------------------

1. Proposed Rule 2.1220(a)(1)--Principal
    Rule 1.1(y) currently defines the term ``Principal'' to mean any
Person Associated with an ETP Holder actively engaged in the management
of the ETP Holder's securities business, including supervision,
solicitation, conduct of the ETP Holder's business, or the training of
Authorized Traders and Persons Associated with an ETP Holder for any of
these functions. Such Persons include Sole Proprietors, Officers,
Partners, and Directors of Corporations. The Exchange is not proposing
any change to the current definition for purposes of the proposed new
registration rules.
    The Exchange does, however, propose to codify the phrase ``actively
engaged in the management of the ETP Holder's securities business'' to
include the management of, and the implementation of corporate policies
related to, such business. The term also includes managerial decision-
making authority with respect to the ETP Holder's securities business
and management-level responsibilities for supervising any aspect of
such business, such as serving as a voting member of the ETP Holder's
executive, management or operations committee.
2. Proposed Rule 2.1220(a)(2)--General Securities Principal \41\
---------------------------------------------------------------------------

    \41\ The proposed rule is substantially similar to FINRA Rule
1220(a)(2).
---------------------------------------------------------------------------

    Proposed Rule 2.1220(a)(2)(A) states that each principal as defined
in proposed Rule 2.1220(a)(1) is required to register with the Exchange
as a General Securities Principal, subject to the following exceptions.
The proposed rule provides that if a principal's activities include the
functions of a Compliance Officer, a Financial and Operations Principal
(or an Introducing Broker-Dealer Financial and Operations Principal, as
applicable), a Principal Financial Officer, a Principal Operations
Officer, or a Securities Trader Principal, then the principal must
appropriately register in one or more of these categories.
    Proposed Rule 2.1220(a)(2)(A) further provides that if a
principal's activities are limited solely to the functions of a General
Securities Sales Supervisor, then the principal may appropriately
register in that category in lieu of registering as a General
Securities Principal.
    Proposed Rule 2.1220(a)(2)(B) requires that an individual
registering as a General Securities Principal satisfy the General
Securities Representative prerequisite registration and pass the
General Securities Principal qualification examination. Proposed Rule
2.1220(a)(2)(B) also clarifies that an individual may register as a
General Securities Sales Supervisor and pass the General Securities
Sales Supervisor

qualification examination in lieu of passing the General Securities
Principal examination.
    As a general matter, the Exchange currently recognizes the
Corporate Securities Representative but would no longer recognize this
registration category given its elimination by FINRA. Proposed Rule
2.1220(a)(2)(B), however, provides that, subject to the lapse of
registration provisions in proposed Rule 2.1210, Commentary .07, each
person registered with the Exchange as a Corporate Securities
Representative and a General Securities Principal on October 1, 2018
and each person who was registered with the Exchange as a Corporate
Securities Representative and a General Securities Principal within two
years prior to October 1, 2018 would be qualified to register as a
General Securities Principal without having to take any additional
qualification examinations, provided that such person's supervisory
responsibilities in the investment banking and securities business of
an ETP Holder are limited to corporate securities activities of the ETP
Holder. The proposed rule further provides that all other individuals
registering as General Securities Principals after October 1, 2018
shall, prior to or concurrent with such registration, become registered
as a General Securities Representative and either (1) pass the General
Securities Principal qualification examination; or (2) register as a
General Securities Sales Supervisor and pass the General Securities
Sales Supervisor qualification examination.
3. Proposed Rule 2.1220(a)(3)--Compliance Officer \42\
---------------------------------------------------------------------------

    \42\ The proposed rule is substantially similar to FINRA Rule
1220(a)(3).
---------------------------------------------------------------------------

    Proposed Rule 2.1220(a)(3) establishes a Compliance Officer
registration category and requires all persons designated as CCOs on
Schedule A of Form BD to register as Compliance Officers, subject to an
exception for ETP Holders engaged in limited investment banking or
securities business. The proposed rule only addresses the registration
requirements for CCOs. However, consistent with proposed Rule 2.1210,
Commentary .01 relating to permissive registrations, a firm may allow
other associated persons to register as Compliance Officers.
    In addition, the Exchange is proposing to provide CCOs of firms
that engage in limited investment banking or securities business with
greater flexibility to satisfy the qualification requirements for CCOs.
Specifically, proposed Rule 2.1220(a)(3) set forth the following
qualification requirements for Compliance Officer registration:
     Subject to the lapse of registration provisions in
proposed Rule 2.1210, Commentary .07, each person registered with the
Exchange as a General Securities Representative and a General
Securities Principal on October 1, 2018 and each person who was
registered with the Exchange as a General Securities Representative and
a General Securities Principal within two years prior to October 1,
2018 would be qualified to register as Compliance Officers without
having to take any additional examinations. In addition, subject to the
lapse of registration provisions in proposed Rule 2.1210, Commentary
.07, individuals registered as Compliance Officials in the CRD system
on October 1, 2018 and individuals who were registered as such within
two years prior to October 1, 2018 would also be qualified to register
as Compliance Officers without having to take any additional
examinations; [sic]
     All other individuals registering as Compliance Officers
after October 1, 2018 would have to: (1) Satisfy the General Securities
Representative prerequisite registration and pass the General
Securities Principal qualification examination; or (2) pass the
Compliance Official qualification examination.
     An individual designated as a CCO on Schedule A of Form BD
of an ETP Holder that is engaged in limited investment banking or
securities business may be registered in a principal category under
proposed Rule 2.1220(a) that corresponds to the limited scope of the
ETP Holder's business.
4. Proposed Rule 2.1220(a)(4)--Financial and Operation Principal and
Introducing Broker-Dealer Financial and Operations Principal \43\
---------------------------------------------------------------------------

    \43\ The proposed rule is substantially similar to FINRA Rule
1220(a)(4).
---------------------------------------------------------------------------

    Proposed Rule 2.1220(a)(4) provides that each principal who is
responsible for the financial and operational management of an ETP
Holder that has a minimum net capital requirement of $250,000 under SEA
Rules 15c3-1(a)(1)(ii) and 15c3-1(a)(2)(i), or an ETP Holder that has a
minimum net capital requirement of $150,000 under SEA Rule 15c-3-
1(a)(8) must be designated as a Financial and Operations Principal. In
addition, proposed Rule 2.1220(a)(4) provides that a principal who is
responsible for the financial and operational management of an ETP
Holder that is subject to the net capital requirements of SEA Rule
15c3-1, other than an ETP Holder that is subject to the net capital
requirements of SEA Rules 15c3-1(a)(1)(ii), (a)(2)(i) or (a)(8), must
be designated and registered as either a Financial and Operations
Principal or an Introducing Broker-Dealer Financial and Operations
Principal. Financial and Operations Principals and Introducing Broker-
Dealer Financial and Operation Principals are not subject to a
prerequisite representative registration, but they must pass the
Financial and Operations Principal or Introducing Broker-Dealer
Financial and Operations Principal examination, as applicable.
    Additionally, proposed Rule 2.1220(a)(4)(B) requires an ETP Holder
to designate a Principal Financial Officer with primary responsibility
for the day-to-day operations of the business, including overseeing the
receipt and delivery of securities and funds, safeguarding customer and
firm assets, calculation and collection of margin from customers and
processing dividend receivable and payables and reorganization
redemptions and those books and records related to such activities.
Further, the proposed rule requires that a firm's Principal Financial
Officer and Principal Operations Officer qualify and register as
Financial and Operations Principals or Introducing Broker-Dealer
Financial and Operations Principals, as applicable.
    Because the financial and operational activities of ETP Holders
that neither self-clear nor provide clearing services are more limited,
such ETP Holders may designate the same person as the Principal
Financial Officer, Principal Operations Officer and Financial and
Operations Principal or Introducing Broker-Dealer Financial and
Operations Principal (that is, such ETP Holders are not required to
designate different persons to function in these capacities).
    Given the level of financial and operational responsibility at
clearing and self-clearing members, the Exchange believes that it is
necessary for such ETP Holders to designate separate persons to
function as Principal Financial Officer and Principal Operations
Officer. Such persons may also carry out the other responsibilities of
a Financial and Operations Principal, such as supervision of
individuals engaged in financial and operational activities. In
addition, the proposed rule provides that a clearing or self-clearing
ETP Holder that is limited in size and resources may request a waiver
of the requirement to designate separate persons to function as
Principal Financial Officer and Principal Operations Officer.

5. Proposed Rule 2.1220(a)(5)--Securities Trader Principal \44\
---------------------------------------------------------------------------

    \44\ The proposed rule is substantially similar to FINRA Rule
1220(a)(7).
---------------------------------------------------------------------------

    Proposed Rule 2.1220(a)(5) requires that a principal responsible
for supervising the securities trading activities specified in proposed
Rule 2.1220(b)(3) register as a Securities Trader Principal. The
proposed rule requires that individuals registering as Securities
Trader Principals must be registered as Securities Traders and pass the
General Securities Principal qualification examination.
6. Proposed Rule 2.1220(a)(6)--General Securities Sales Supervisor \45\
---------------------------------------------------------------------------

    \45\ The proposed rule is substantially similar to FINRA Rule
1220(a)(10).
---------------------------------------------------------------------------

    Proposed Rule 2.1220(a)(6) provides that a principal may register
with the Exchange as a General Securities Sales Supervisor if his or
her supervisory responsibilities in the investment banking or
securities business of an ETP Holder are limited to the securities
sales activities of the ETP Holder, including the approval or customer
accounts, training of sales and sales supervisory personnel and the
maintenance of records of original entry or ledger accounts of the ETP
Holder required to be maintained in branch offices by Exchange Act
record-keeping rules.
    A person registering as a General Securities Sales Supervisor must
satisfy the General Securities Representative prerequisite registration
and pass the General Securities Sales Supervisor examinations.\46\
Moreover, a General Securities Sales Supervisor is precluded from
performing any of the following activities: (1) Supervision of the
origination and structuring of underwritings; (2) supervision of
market-making commitments; (3) supervision of the custody of firm or
customer funds or securities for purposes of SEA Rule 15c3-3; or (4)
supervision of overall compliance with financial responsibility rules.
---------------------------------------------------------------------------

    \46\ An individual may also register as a General Securities
Sales Supervisor by passing a combination of other principal-level
examinations.
---------------------------------------------------------------------------

7. Proposed Rule 2.1220(b)(1)--Representative \47\
---------------------------------------------------------------------------

    \47\ The proposed rule is substantially similar to FINRA Rule
1220(b)(1).
---------------------------------------------------------------------------

    Proposed Rule 2.1220(b)(1) defines a representative as any person
associated with an ETP Holder, including assistant officers other than
principals, who is engaged in the ETP Holder's investment banking or
securities business, such as supervision, solicitation, conduct of
business in securities or the training of persons associated with an
ETP Holder for any of these functions.
8. Proposed Rule 2.1220(b)(2)--General Securities Representative \48\
---------------------------------------------------------------------------

    \48\ The proposed rule is substantially similar to FINRA Rule
1220(b)(2).
---------------------------------------------------------------------------

    Proposed Rule 2.1220(b)(2)(A) states that each representative as
defined in proposed Rule 2.1220(b)(1) is required to register with the
Exchange as a General Securities Representative, subject to the
following exceptions. The proposed rule provides that if a
representative's activities include the function of a Securities
Trader, then the representative must appropriately register in that
category.
    The proposed rule further provides that, subject to the lapse of
registration provisions in proposed Rule 2.1210, Commentary .07, each
person registered with the Exchange as a General Securities
Representative on October 1, 2018 and each person who was registered
with the Exchange as a General Securities Representative within two
years prior to October 1, 2018 would be qualified to register as a
General Securities Representative without having to take any additional
qualification examinations. Additionally, the proposed rule would
require that individuals registering as General Securities
Representatives after October 1, 2018 shall, prior to or concurrent
with such registration, pass the SIE and the General Securities
Representative examination.
9. Proposed Rule 2.1220(b)(3)--Securities Trader \49\
---------------------------------------------------------------------------

    \49\ The proposed rule is substantially similar to FINRA Rule
1220(b)(4).
---------------------------------------------------------------------------

    Proposed Rule 2.1220(b)(3) provides that each representative as
defined in proposed Rule 2.1220(b)(1) is required to register as a
Securities Trader if, with respect to transactions in equity (including
equity options), preferred or convertible debt securities, such person
is engaged in proprietary trading, the execution of transactions on an
agency basis, or the direct supervision of such activities. The
proposed rule provides an exception from the registration requirement
for any associated person of an ETP Holder whose trading activities are
conducted primarily on behalf of an investment company that is
registered with the SEC pursuant to the Investment Company Act and that
controls, is controlled by, or is under common control with an ETP
Holder. The Exchange proposes to adopt FINRA's definition of Securities
Trader in proposed Rule 2.1220(b)(3) in order to align the text of the
rule to that adopted by FINRA and other exchanges.\50\
---------------------------------------------------------------------------

    \50\ See e.g., MIAX International Stock Exchange, LLC Rule
203(d).
---------------------------------------------------------------------------

    The proposed rule also requires that associated persons primarily
responsible for the design, development or significant modification of
algorithmic trading strategies (or responsible for the day-to-day
supervision or direction of such activities) register as Securities
Traders. Individuals registering as Securities Traders must pass the
SIE and the Securities Trader examination.
    Finally, the proposed rule provides that, subject to the lapse of
registration provisions in proposed Rule 2.1210, Commentary .07, each
person registered with the Exchange as a Securities Trader on October
1, 2018 and each person who was registered with the Exchange as a
Securities Trader within two years prior to October 1, 2018 would be
qualified to register as a Securities Trader without having to take any
additional qualification examinations. Additionally, the proposed rule
would require that individuals registering as Securities Traders after
October 1, 2018 shall, prior to or concurrent with such registration,
pass the SIE and the Securities Trader qualification examination.
10. Proposed Rule 2.1220, Commentary .01--Foreign Registrations \51\
---------------------------------------------------------------------------

    \51\ The proposed rule is substantially similar to FINRA Rule
1220.01 and 1220.06.
---------------------------------------------------------------------------

    Proposed Rule 2.1220, Commentary .01, states that individuals who
are in good standing as representatives with the Financial Conduct
Authority in the United Kingdom or with a Canadian stock exchange or
securities regulator would be exempt from the requirement to pass the
SIE, and thus would be required only to pass a specialized knowledge
examination to register with the Exchange as a representative. The
proposed approach would provide individuals with a United Kingdom or
Canadian qualification more flexibility to obtain a representative-
level registration. Additionally, proposed Rule 2.1220, Commentary .01,
provides that, subject to the lapse of registration provisions in Rule
2.1210, Commentary .07, each person who is registered with the Exchange
as a United Kingdom Securities Representative or a Canada Securities
Representative on October 1, 2018 and each person who was registered
with the Exchange in such categories within two years prior to October
1, 2018 would be eligible to maintain such registrations with the
Exchange. However, if persons

registered in such categories subsequently terminate such
registration(s) with the Exchange and the registration remains
terminated for two or more years, they would not be eligible to re-
register in such categories.
11. Proposed Rule 2.1220, Commentary .02--Additional Qualification
Requirements for Persons Engaged in Security Futures \52\
---------------------------------------------------------------------------

    \52\ The proposed rule is substantially similar to FINRA Rule
1220.02.
---------------------------------------------------------------------------

    Proposed Rule 2.1220, Commentary .02, states that each person who
is registered with the Exchange as a General Securities Representative,
United Kingdom Securities Representative, Canada Securities
Representative, or General Securities Sales Supervisor shall be
eligible to engage in security futures activities as a representative
or principal, as applicable, provided that such individual completes a
Firm Element program as set forth in Rule 2.2(e)(2) that addresses
security futures products before such person engages in security
futures activities.\53\
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    \53\ FINRA Rule 1220.02 also includes Options Representative and
Registered Options Principal registration categories. NYSE National
does not trade options and ETP Holders of NYSE National therefore
would not be required to register with the Exchange in those
categories and therefore the Exchange is not adopting those
categories within proposed Rule 2.1220, Commentary .03 [sic].
---------------------------------------------------------------------------

12. Proposed Rule 2.1220, Commentary .03--Scope of General Securities
Sales Supervisor Registration Category \54\
---------------------------------------------------------------------------

    \54\ The proposed rule is substantially similar to FINRA Rule
1220.04.
---------------------------------------------------------------------------

    Proposed Rule 2.1220, Commentary .03, explains the purpose of the
General Securities Sales Supervisor registration category. The General
Securities Sales Supervisor category is an alternate category of
registration designed to lessen the qualification burdens on principals
of general securities firms who supervise sales. Without this category
of limited registration, such principals would be required to
separately qualify pursuant to the rules of FINRA, the MSRB, the NYSE
and the options exchanges. While persons may continue to separately
qualify with all relevant self-regulatory organizations, the General
Securities Sales Supervisor examination permits qualification as a
supervisor of sales of all securities through one registration
category. Persons registered as General Securities Sales Supervisors
may also qualify in any other category of principal registration.
Persons who are already qualified in one or more categories of
principal registration may supervise sales activities of all securities
by also qualifying as General Securities Sales Supervisors.
    The proposed rule further provides that any person required to be
registered as a principal who supervises sales activities in corporate,
municipal and option securities, investment company products, variable
contracts, and security futures (subject to the requirements of Rule
2.1220, Commentary .02) may be registered solely as a General
Securities Sales Supervisor. In addition to branch office managers,
other persons such as regional and national sales managers may also be
registered solely as General Securities Sales Supervisors as long as
they supervise only sales activities.
K. Proposed New Rule 2.1230--Associated Persons Exempt From
Registration \55\
---------------------------------------------------------------------------

    \55\ The proposed rule is substantially similar to FINRA Rule
1230.
---------------------------------------------------------------------------

    Proposed Rule 2.1230 provides an exemption from registration with
the Exchange for certain associated persons. Specifically, the proposed
rule provides that persons associated with an ETP Holder whose
functions are solely and exclusively clerical or ministerial would be
exempt from registration.\56\
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    \56\ FINRA Rule 1230 provides an exemption from registration
with FINRA to persons associated with a FINRA member whose functions
are solely and exclusively clerical or ministerial and persons
associated with a FINRA member whose functions are related solely
and exclusively to (i) effecting transactions on the floor of a
national securities exchange and who are appropriately registered
with such exchange; (ii) effecting transactions in municipal
securities; (iii) effecting transactions in commodities; or (iv)
effecting transactions in security futures, provided that any such
person is registered with a registered futures association. ETP
Holders of NYSE National do not solely and exclusively engage in any
of the foregoing transactions and therefore the Exchange is not
adopting that portion of FINRA Rule 1230.
---------------------------------------------------------------------------

1. Proposed Rule 2.1230, Commentary .01--Registration Requirements for
Associated Persons Who Accept Customer Orders \57\
---------------------------------------------------------------------------

    \57\ The proposed rule is substantially similar to FINRA Rule
1230.01.
---------------------------------------------------------------------------

    Proposed Rule 2.1230, Commentary .01, clarifies that the function
of accepting customer orders is not considered clerical or ministerial
and that associated persons who accept customer orders under any
circumstances are required to be appropriately registered. However, the
proposed rule provides that an associated person is not accepting a
customer order where occasionally, when an appropriately Registered
Person is unavailable, the associated person transcribes the order
details and the Registered Person contacts the customer to confirm the
order details before entering the order [sic]
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\58\ in general, and
furthers the objectives of Section 6(b)(5),\59\ in particular, because
it is 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 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.
---------------------------------------------------------------------------

    \58\ 15 U.S.C. 78f(b).
    \59\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change will
streamline, and bring consistency and uniformity to, the registration
rules, which will, in turn, assist ETP Holders and their associated
persons in complying with these rules and improve regulatory
efficiency. The proposed rule change will also improve the efficiency
of the examination program, without compromising the qualification
standards. In addition, the proposed rule change will expand the scope
of permissive registrations, which, among other things, will allow ETP
Holders to develop a depth of associated persons with registrations to
respond to unanticipated personnel changes and will encourage greater
regulatory understanding. Further, the proposed rule change will
provide a more streamlined and effective waiver process for individuals
working for a financial services industry affiliate of an ETP Holder,
and it will require such individuals to maintain specified levels of
competence and knowledge while working in areas ancillary to the
investment banking and securities business.
    Finally, the Exchange believes that, with the introduction of the
SIE and expansion of the pool of individuals who are eligible to take
the SIE, the proposed rule change has the potential of enhancing the
pool of prospective securities industry professionals by introducing
them to securities laws, rules and regulations and appropriate conduct
before they join the industry in a registered capacity.

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 proposed amendments are
intended to promote transparency in the Exchange's rules, and
consistency with the rules of other SROs with respect to the
examination, qualification, and continuing education requirements
applicable to ETP Holders and their registered personnel. The Exchange
believes that in that regard that any burden on competition would be
clearly outweighed by the important regulatory goal of ensuring clear
and consistent requirements applicable across SROs, avoiding
duplication, and mitigating any risk of SROs implementing different
standards in these important areas.
    Further, the Exchange does not believe that the proposed amendments
will affect competition among securities markets since all SROs are
expected to adopt similar rules with uniform standards for
qualification, registration and continuing education requirements.

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

    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) thereunder.
    A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days from the date of filing. However, Rule
19b-4(f)(6)(iii) \60\ permits the Commission to 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 on
October 1, 2018 to coincide with the effective date of FINRA's proposed
rule change on which the proposal is based.\61\ The waiver of the
operative delay would make the Exchange's qualification requirements
consistent with those of FINRA, as of October 1, 2018. Therefore, the
Commission believes that the waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest and
hereby waives the 30-day operative delay and designates the proposal
operative on October 1, 2018.\62\
---------------------------------------------------------------------------

    \60\ 17 CFR 240.19b-4(f)(6)(iii).
    \61\ See supra note 5.
    \62\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \63\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \63\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSENAT-2018-21 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-NYSENAT-2018-21. 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 10:00 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSENAT-2018-21 and should be submitted
on or before October 31, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\64\
---------------------------------------------------------------------------

    \64\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21903 Filed 10-9-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: November 26, 2008 (Volume 73, Number 229)]
[Proposed Rules]
[Page 71966-71968]
[DOCID:fr26no08-35]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2008-1140; Airspace Docket No. 08-ASW-24]

Proposed Amendment of Class D and Class E Airspace; Corpus
Christi Naval Air Station/Truax Field, TX

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This action proposes to amend the geographic coordinates of
the Class D and E Airspace areas for Corpus Christi Naval Air Station
(NAS)/Truax Field, Corpus Christi, TX. The FAA's National Aeronautical
Charting Office is requesting this action to enhance the safety and
management of Instrument Flight Rules (IFR) aircraft operations at
Corpus Christi NAS/Truax Field.

DATES: 0901 UTC. Comments must be received on or before January 12,
2009.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE., West
Building Ground Floor, Room W12-140, Washington, DC 20590-0001. You
must identify the docket number FAA-2008-1140/Airspace Docket No. 08-
ASW-24,

at the beginning of your comments. You may also submit comments on the
Internet at http://www.regulations.gov. You may review the public
docket containing the proposal, any comments received, and any final
disposition in person in the Dockets Office between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The Docket Office
(telephone 1-800-647-5527), is on the ground floor of the building at
the above address.

FOR FURTHER INFORMATION CONTACT: Scott Enander, Central Service Center,
Operations Support Group, Federal Aviation Administration, Southwest
Region, 2601 Meacham Blvd, Fort Worth, TX 76193-0530; telephone: (817)
222-5582.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2008-1140/
Airspace Docket No. 08-ASW-24.'' The postcard will be date/time stamped
and returned to the commenter.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's Web page at http://
www.faa.gov/airports_airtraffic/air_traffic/publications/airspace_
amendments/.
    Additionally, any person may obtain a copy of this notice by
submitting a request to the Federal Aviation Administration (FAA),
Office of Air Traffic Airspace Management, ATA-400, 800 Independence
Avenue, SW., Washington, DC 20591, or by calling<PHONE_NUMBER>.
Communications must identify both docket numbers for this notice.
Persons interested in being placed on a mailing list for future NPRMs
should contact the FAA's Office of Rulemaking<PHONE_NUMBER>, to
request a copy of Advisory Circular No. 11-2A, Notice of Proposed
Rulemaking Distribution System, which describes the application
procedure.

The Proposal

    This action proposes to amend Title 14, Code of Federal Regulations
(14 CFR), Part 71 by bringing current the geographic coordinates for
Class D, E2 and E4 Airspace for the Corpus Christi NAS/Truax Field,
Corpus Christi, TX. These coordinates would be depicted on appropriate
aeronautical charts.
    Class D surface areas are published in Paragraph 5000 of FAA Order
7400.9S, dated October 3, 2008, and effective October 31, 2008, which
is incorporated by reference in 14 CFR 71.1.
    Class E2 surface areas are published in Paragraph 6002 of FAA Order
7400.9S, dated October 3, 2008, and effective October 31, 2008, which
is incorporated by reference in 14 CFR 71.1.
    Class E4 airspace areas designated as extensions to a Class D
surface area are published in Paragraph 6004 of FAA Order 7400.9S,
dated October 3, 2008, and effective October 31, 2008, which is
incorporated by reference in 14 CFR 71.1. The Class D and E airspace
designations listed in this document would be published subsequently in
the Order.
    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore, (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a Regulatory Evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, will not have a significant
economic impact on a substantial number of small entities under the
criteria of the Regulatory Flexibility Act. The FAA's authority to
issue rules regarding aviation safety is found in Title 49 of the U.S.
Code. Subtitle 1, Section 106 describes the authority of the FAA
Administrator. Subtitle VII, Aviation Programs, describes in more
detail the scope of the agency's authority. This rulemaking is
promulgated under the authority described in Subtitle VII, Part A,
Subpart I, Section 40103. Under that section, the FAA is charged with
prescribing regulations to assign the use of airspace necessary to
ensure the safety of aircraft and the efficient use of airspace. This
regulation is within the scope of that authority as it would amend
controlled airspace at Corpus Christi NAS/Truax Field, Corpus Christi,
TX.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (Air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 14 CFR Part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS;
AIRWAYS; ROUTES; AND REPORTING POINTS

    1. The authority citation for Part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of Federal
Aviation Administration Order 7400.9S, Airspace Designations and
Reporting Points, dated October 3, 2008, and effective October 31,
2008, is amended as follows:

Paragraph 5000 Class D Airspace.

* * * * *

ASW TX D Corpus Christi NAS/Truax Field, TX [Amended]

Corpus Christi NAS/Truax Field, TX
    (Lat. 27[deg]41'34'' N., long. 97[deg]17'25'' W.)

    That airspace extending upward from the surface to and including
2,500 feet MSL within a 4.3-mile radius of Corpus Christi NAS/Truax
Field; excluding that airspace within the Corpus Christi
International Airport, TX, Class C airspace area. This Class D
airspace area is effective during the specific dates and times
established in advance by a Notice to Airmen. The effective date and
time will thereafter be continuously published in the Airport/
Facility Directory.

Paragraph 6002 Class E Airspace Designated as Surface Areas.

* * * * *

ASW TX E2 Corpus Christi NAS/Truax Field, TX [Amended]

Corpus Christi NAS/Truax Field, TX
    (Lat. 27[deg]41'34'' N., long. 97[deg]17'25'' W.)

    That airspace extending upward from the surface to and including
2,500 feet MSL within a 4.3-mile radius of Corpus Christi NAS/Truax
Field; excluding that airspace

within the Corpus Christi International Airport, TX, Class C
airspace area. This Class E airspace area is effective during the
specific dates and times established in advance by a Notice to
Airmen. The effective date and time will thereafter be continuously
published in the Airport/Facility Directory.

Paragraph 6004 Class E Airspace Areas Designated as an Extension to
a Class D Surface Area.

* * * * *

ASW TX E4 Corpus Christi NAS/Truax Field, TX [Amended]

Corpus Christi NAS/Truax Field, TX
    (Lat. 27[deg]41'34'' N., long. 97[deg]17'25'' W.)
Corpus Christi VORTAC
    (Lat. 27[deg]54'14'' N., long. 97[deg]26'42'' W.)
Truax VORTAC
    (Lat. 27[deg]41'11'' N., long. 97[deg]17'41'' W.)

    That airspace extending upward from the surface within 1.3 miles
each side of the 012[deg] radial of the Truax VORTAC extending from
the 4.3-mile radius of Corpus Christi NAS/Truax Field to 5 miles
north of the airport and within 2.1 miles each side of the 119[deg]
radial of the Truax VORTAC extending from the 4.3-mile radius to 6.2
miles southeast of the airport and within 2.3 miles each side of the
147[deg] radial of the Corpus Christi VORTAC extending from the 4.3-
mile radius of the airport to 6.3 miles southeast of the airport and
within 2.1 miles each side of the 329[deg] radial of the Truax
VORTAC extending from the 4.3-mile radius of the airport to 6.2
miles northwest of the airport; excluding that airspace within the
Corpus Christi International Airport, TX, Class C airspace area.
* * * * *

    Issued in Fort Worth, TX on November 14, 2008.
Roger M. Trevino,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. E8-28073 Filed 11-25-08; 8:45 am]

BILLING CODE 4910-13-P