Notice2024-19014
Self-Regulatory Organizations; MIAX Sapphire, LLC, Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules Relating to the Continuing Education for Registered Persons as Provided Under Exchange Rule 1903
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 26, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 165 (Monday, August 26, 2024)</title>
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[Federal Register Volume 89, Number 165 (Monday, August 26, 2024)]
[Notices]
[Pages 68484-68486]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19014]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100785; File No. SR-SAPPHIRE-2024-17]
Self-Regulatory Organizations; MIAX Sapphire, LLC, Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Rules Relating to the Continuing Education for Registered Persons
as Provided Under Exchange Rule 1903
August 20, 2024.
Pursuant to the provisions of Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on August 9, 2024, MIAX Sapphire, LLC (``MIAX
Sapphire'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') a 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 Interpretation and Policy .01 to
Exchange Rule 1903, Continuing Education.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings">https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings</a>, at the Exchange's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and the
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Interpretation and Policy .01 to
Exchange Rule 1903, Continuing Education, to clarify participation
requirements and deadline dates of the continuing education program.
Background
The Form 1 Application of MIAX Sapphire was approved by the
Securities Exchange Commission to register as a national securities
exchange on July 15, 2024.\3\ MIAX Sapphire intends to begin trading
operations on August 12, 2024. In anticipation of the launch of the
Exchange MIAX Sapphire is in the process of updating rules so that they
are current.
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\3\ See Securities Exchange Act Release No. 100539 (July 15,
2024), 89 FR 58848 (July 19, 2024) (File No. 10-240) (order
approving application of MIAX Sapphire, LLC for registration as a
national securities exchange).
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Policy .01 of Exchange Rule 1903 describes the conditions and
timeframes for certain individuals registered with the Exchange to
participate in the continuing education program under paragraph (c) of
Rule 1903. FINRA amended their Continuing Education (``CE'') Program
requirements in FINRA Rule 1240 in 2021 to establish a Maintaining
Qualifications Program (MQP).\4\ Under FINRA Rule 1240.01, FINRA
designated a look-back provision for the two years immediately prior to
March 15, 2022 for meeting the requirements of the MQP.
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\4\ See Securities Exchange Act Release No. 93097 (September 21,
2021), 86 FR 53358 (September 27, 2021) (Order Approving File No.
SR-FINRA-2021-015). Other exchanges, including the Exchange's
affiliate, MIAX, subsequently filed copycat rule filings to align
their continuing education rules with those of FINRA. See Securities
Exchange Act Release No. 95140 (June 22, 2022), 87 FR 38438 (June
28, 2022) (SR-MIAX-2022-23) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change To Amend Exchange Rule 1900,
Registration Requirements, Exchange Rule 1903, Continuing Education
Requirements, and Exchange Rule 1904, Electronic Filing Requirements
for Uniform Forms).
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In 2023, FINRA again amended FINRA Rule 1240.01, to provide
eligible individuals a second opportunity to elect to participate in
the MQP.\5\ This change required eligible individuals who elected to
participate in the MQP during the second look-back period to complete
any prescribed continuing education content by March 31, 2024. For
technical reasons related to the mechanics of registering in the MQP
via FINRA's Financial Professional Gateway (``FinPro'') account some
eligible individuals may have been precluded from properly registering
for the MQP, therefore, FINRA again amended its rule to extend the
requirements completion period to July 1, 2024.\6\
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\5\ See Securities Exchange Act Release No. 97184 (Mar. 22,
2023), 88 FR 18359 (Mar. 28, 2023) (SR-FINRA-2023-005) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Amend FINRA Rule 1240.01 To Provide Eligible Individuals Another
Opportunity to Elect to Participate in the Maintaining
Qualifications Program). The Exchange notes that the second look-
back period does not appear in Sapphire Rule 1903 as it concluded
prior to the Exchange's Form 1 Application being approved.
\6\ See Securities Exchange Act Release No. 100067 (May 6,
2024), 89 FR 40520 (May 10, 2024) (SR-FINRA-2024-006)(Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend FINRA Rule 1240.01 To Reopen the Period by Which Certain
Participants in the Maintaining Qualifications Program May Complete
Their Prescribed Continuing Education Content).
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Proposal
The Exchange proposes to amend its Rule to provide that individuals
enrolled in the continuing education program under Interpretation and
Policy .01 of Rule 1903 who have completed their prescribed 2022 and
2023 continuing education content by July 1, 2024 shall be eligible to
continue their
[[Page 68485]]
participation in the continuing education program. The time period
extensions provided by FINRA beginning in 2021 for maintaining
registrations have all concluded, therefore the Exchange believes that
this change will provide clarity in regards to the eligibility
requirements for participation in the continuing education program.
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.\7\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \8\ 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) \9\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Exchange's rule proposal
is intended to harmonize the Exchange's supervision rules, specifically
with respect to the continuing education requirements with those of
FINRA, on which they are based. Consequently, the proposed change will
conform the Exchange's rules to recent changes made to corresponding
FINRA rules, thus promoting application of consistent regulatory
standards with respect to rules that FINRA enforces pursuant to its
regulatory services agreement with the Exchange.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ Id.
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The Exchange believes that the proposed rule change will bring
consistency and uniformity with FINRA's recently amended CE Program,
which will, in turn, assist members and their associated persons in
complying with these rules and improve regulatory efficiency. The
proposed rule change makes ministerial changes to the Exchange's CE
rules to align them with the CE rules of FINRA, in order to prevent
unnecessary regulatory burdens and to promote efficient administration
of the rules.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
believes that the proposed rule change, which harmonizes its rules with
the recent rule change adopted by FINRA, will reduce the regulatory
burden placed on market participants engaged in trading activities
across different markets. The Exchange believes that the harmonization
of the CE program requirements across the various markets will reduce
burdens on competition by removing impediments to participation in the
national market system and promoting competition among participants
across the multiple national securities exchanges.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) \11\ thereunder, the Exchange has designated this proposal as
one that effects a change that: (i) does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ In addition, Rule 19b-4(f)(6) requires a self-regulatory
organization to give the Commission written notice of its intent to
file the proposed rule change, along with a brief description and
text of the proposed rule change, at least five business days prior
to the date of filing of the proposed rule change, or such shorter
time as designated by the Commission. The Exchange has satisfied
this requirement.
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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 necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#94e6e1f8f1b9f7fbf9f9f1fae0e7d4e7f1f7baf3fbe2"><span class="__cf_email__" data-cfemail="3240475e571f515d5f5f575c4641724157511c555d44">[email protected]</span></a>. Please include
file number SR-SAPPHIRE-2024-17 on the subject line.
Paper Comments
<bullet> 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-SAPPHIRE-2024-17. 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 (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). 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. Do
not include personal identifiable information in submissions; you
should submit only information that you wish to make available
publicly. We may redact in part or withhold entirely from publication
submitted material that is obscene or subject to copyright protection.
All submissions should refer to file number SR-SAPPHIRE-2024-17 and
should be submitted on or before September 16, 2024.
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\13\ 17 CFR 200.30-3(a)(12).
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-19014 Filed 8-23-24; 8:45 am]
BILLING CODE 8011-01-P
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