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Federal Register / Vol. 86, No. 151 / Tuesday, August 10, 2021 / Notices
Exchange. The Exchange filed the proposal as a non-controversial proposed rule change pursuant to Section 19b3Aiii of the Act 3 and Rule 19b4f6 thereunder.4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
I. Self-Regulatory Organizations Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rules 3.31, 3.34 and 3.33. The text of the proposed rule change is provided in Exhibit 5.
The text of the proposed rule change is available on the Exchanges website http www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx, at the Exchanges Office of the Secretary, and at the Commissions Public Reference Room.
II. Self-Regulatory Organizations 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 Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
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1. Purpose The Exchange proposes to amend certain registration rules including i Rule 3.31 to update an incorrect crossreference, ii Rule 3.33 to update a Regulatory Element Program reference and iii Rule 3.34 to provide the option of filing an initial or a transfer electronic Form U4 filing and any amendments to the disclosure information on Form U4
based on a manually or an electronically signed copy of the form, each as described below.
Proposed Rule Change to Rule 3.31
Rule 3.31 Registration Categories currently sets forth registration requirements for principal and representative registration categories. In particular, Rule 3.31a2 provides that each principal as defined in paragraph 3 15
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a1 of Rule 3.31 is required to register with the Exchange as a General Securities Principal, subject to certain exceptions. More specifically, Rule 3.31a2 provides that if a principals activities include the functions of a Compliance Officer, a Financial and Operations Principal, a Securities Trader Principal, a Securities Trader Compliance Officer, or a Registered Options Principal as specified in paragraphs a3 through a6 of . . .
Rule 3.31, then the principal must appropriately register in one or more of these categories. The Exchange notes however that the aforementioned categories are described under paragraphs a3 through a7 5
instead of through a6 and that the Exchange inadvertently omitted to cross-reference subparagraph a7.
Accordingly, the Exchange proposes to update the reference to a6 to a7 in the rule text to accurately reflect the corresponding subparagraphs to the registration categories listed under Rule 3.31a2Ai.
Proposed Rule Change to Rule 3.33
Existing Rule 3.33 Continuing Education for Registered Persons includes Regulatory Elements for Exchange registered persons. The Regulatory Elements are Continuing Education CE programs administered by the Financial Industry Regulatory Industry, Inc. FINRA and consist of periodic computer-based training on regulatory, compliance, ethical, and supervisory subjects, and sales practice standards. Pursuant to current Rule 3.33a3, the Exchange offers the following Regulatory Elements for Exchange registered persons: The S201 for registered principals and supervisors; the S106 for persons registered only as Investment Company and Variable Contracts Representatives;
and the S101 for all other registered persons. The Exchange proposes to amend Rule 3.33a3, to be consistent with FINRAs most current CE
programs. Specifically, the Exchange proposes to remove the language in Rule 3.33a3 that provides that the S106
Regulatory Element CE Program is offered for persons registered only as Investment Company and Variable Contracts Representatives. In December 2018, the content from S106 became part of the S101 Regulatory Element CE
Program and was retired as a standalone program.6 As a result, persons 5 See Rule 3.31a7, which describes the requirements to register as a Registered Options Principal.
6 See FINRA Information Notice, Administrative Changes to the Continuing Education Regulatory Element Programs December 2, 2018, available at:

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registered only as Investment Company and Variable Contracts Representatives who complete the S106 CE Program, pursuant to Rule 3.33a3, are now required to complete the S101 CE
Program, as is currently the case for all other registered persons. Therefore, the Exchange proposes to update Rule 3.33a3 to reflect this CE Program change by removing the language in Rule 3.33a3 that provides that the S106 is offered for persons registered only as Investment Company and Variable Contracts Representatives while maintaining the existing language that provides that the S101 is offered for all other registered persons.
Proposed Rule Change to Rule 3.34
Paragraph c of Rule 3.34 Electronic Filing Requirements for Uniform Forms, currently sets forth Form U4
filing requirements. Specifically, Rule 3.34c provides that initial and transfer electronic Form U4 filings and any amendments to the disclosure information on Form U4 must be based on a manually signed Form U4 provided to the Trading Permit Holder TPH or applicant for membership by the person on whose behalf the Form U4 is being filed, consistent with FINRA Rule 1010c. However, FINRA recently amended their Rule 1010c to permit firms to choose to rely on electronic signatures to satisfy the signature requirements when filing Form U4.7
The Exchange proposes to amend Rule 3.34 to similarly allow firms to rely on electronic signatures when filing Form U4, consistent with FINRA Rule 1010c.
Specifically, the Exchange proposes to amend Exchange Rule 3.34, similar to the amendments made by FINRA, to provide firms the option of filing an initial or a transfer Form U4 based on a manually or an electronically signed copy of the form provided to the TPH, or applicant for membership, by the individual on whose behalf the form is being filed. As such, the proposed rule change removes the term manual from manual signature and the term manually from manually signed in Rule 3.34c and in Interpretation and Policy .03 to Rule 3.34.8 The proposed https www.finra.org/rules-guidance/notices/
information-notice-100218.
7 See Securities Exchange Release No. 91262
March 5, 2021, 86 FR 13935 March 11, 2021 SR
FINRA2021003.
8 The proposed rule change also makes minor, nonsubstantive formatting changes, including:
Adding a period at the end of the heading for Rule 3.34c, which is uniform with subparagraph headings throughout the Rulebook; and adding the phrase of this Rule following references to subparagraph c3 to provide for additional clarity regarding rule references.

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