[Federal Register Volume 81, Number 17 (Wednesday, January 27, 2016)]
[Notices]
[Pages 4691-4693]
[FR Doc No: 2016-01530]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76946; File No. SR-NASDAQ-2016-006]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Subsection (a)(7) of Rule 7003, Registration and Processing Fees

January 21, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that, on January 13, 2016, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.

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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend subsection (a)(7) of Rule 7003,
Registration and Processing Fees.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

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

1. Purpose
    The Exchange proposes to make changes to the continuing education
fees section of Rule 7003 to provide that the continuing education
session fee will be $55 if the session is conducted via Web delivery.
The continuing education session fee will remain $100 if the session is
conducted at a testing center. The Exchange is also eliminating the $60
session fee for the S501 continuing education Regulatory Element, which
FINRA eliminated as of January 4, 2016.\3\
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    \3\ Currently, Rule 7003(a) provides that certain fees will be
collected and retained by FINRA via the Web CRD registration system
for the registration of associated persons of Nasdaq members that
are not also FINRA members. Under Rule 7003(a)(7), FINRA collects
and retains a $100 session fee for each individual who is required
to complete the Regulatory Element of the Continuing Education
Requirements pursuant to Nasdaq Rule 1120 (S101 and S201) and a $60
session fee for each individual who is required to complete the
Proprietary Trader Regulatory Element (S501).
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    On August 8, 2015, the Commission approved SR-FINRA-2015-015
amending FINRA Rule 1250 to provide a Web-based delivery method for
completing the Regulatory Element of the continuing education
requirements.\4\ Pursuant to the rule change, effective October 1,
2015, the Regulatory Element of the Continuing Education Programs for
the S201 for Registered Principals and Supervisors is now administered
through Web-based delivery or such other technological manner and
format as specified by FINRA. FINRA launched Web-based delivery of the
S101 Regulatory Element program on January 4, 2016.\5\
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    \4\ See Securities Exchange Act Release No. 75581 (July 31,
2015), 80 FR 47018 (August 6, 2015) (Order Approving a Proposed Rule
Change to Provide a Web-based Delivery Method for Completing the
Regulatory Element of the Continuing Education Requirements) (SR-
FINRA-2015-015).
    \5\ The Regulatory Element of the S101 and S201 Continuing
Education Programs will continue to be offered at testing centers
until no later than six months after January 4, 2016. Test-center
delivery of the Regulatory Element will be phased out by no later
than six months after January 4, 2016. See Securities Exchange Act
Release No. 75581 (July 31, 2015), 80 FR 47018 (August 6, 2015)
(Order Approving a Proposed Rule Change To Provide a Web-Based
Delivery Method for Completing the Regulatory Element of the
Continuing Education) (SR-FINRA-2015-015).
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    Pursuant to the approval order for SR-FINRA-2015-015, the fee for
test-center delivery of the Regulatory Elements of the S101 and S201
Continuing Education programs will continue to be $100 per session
through no later than six months after January 4, 2016 when the
programs will no longer be offered at testing centers. However, under
the SR-FINRA-2015-015 approval order the fee for Web-based delivery of
the Regulatory Elements of the S101 and the S201 Continuing Education
programs is now $55.
    The Exchange currently utilizes FINRA's Continuing Education
programs for its own continuing education requirements which include
the S101 and S201 programs. Consistent with SR-FINRA-2015-015, the
Exchange recently filed a separate proposed rule change relating to
continuing education.\6\ In that filing, the Exchange proposed to
follow the changes set forth in SR-FINRA-2015-015 with respect to Web-
based delivery of the Regulatory Element of the Continuing Education
programs for the S101 and the S201. Consistent with SR-FINRA-2015-015
this proposed rule change would amend Rule 7003 to provide that the
following fees will be collected and retained by FINRA for the
registration of associated persons of Nasdaq members that are not also
FINRA members: A $100 session fee ($55 if the Continuing Education is
Web-based) for each individual who is required to complete the
Regulatory Element of the Continuing Education Requirements pursuant to
Nasdaq Rule 1120 (S101 and S201). The proposal will eliminate the $60
session fee for each individual who is required to complete the
Proprietary Trader Regulatory Element (S501).\7\
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    \6\ See SR-NASDAQ-2015-167 filed December 30, 2015.
    \7\ As noted above, the S501 Proprietary Trader Regulatory
Element was discontinued by FINRA as of January 4, 2016. The
Exchange anticipates filing a subsequent rule change to eliminate
the reference to the $100 session fee when the test center option is
eliminated for the S101 and S201 Regulatory Elements.
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 2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\8\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \9\ requirements that the rules of
an exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \10\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ Id.
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    Web-based delivery will remove time parameters that exist with
respect to taking continuing education at testing centers. Having
additional time to take continuing education may result in better
learning outcomes, which should enhance investor protection. In
addition, the option to have Web-based delivery of the Regulatory
Element of the Continuing Education program at a reduced cost removes
impediments to a free and open market and national market system by
making it easier and less costly for registrants to participate in the
market. Accordingly, the Exchange believes that Web-based delivery of
the Regulatory Element of the Continuing Education Program and reducing
the costs of continuing education in general are goals that are
consistent with the Act.

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 not necessary or appropriate in furtherance
of the purposes of the Act. As FINRA has stated, the proposed rule
change is specifically intended to reduce the burdens of continuing
education on market participants while preserving the integrity of the
Continuing Education program.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\11\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

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_ADDRESS>Please include
File Number SR-NASDAQ-2016-006 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-NASDAQ-2016-006. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 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; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2016-006 and should
be submitted on or before February 17, 2016.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Brent J. Fields,
Secretary.
[FR Doc. 2016-01530 Filed 1-26-16; 8:45 am]
 BILLING CODE 8011-01-P