Order Granting a Limited Exemption From Exchange Act Rule 10b-17 to Certain Actively Managed Exchange-Traded Funds Pursuant to Exchange Act Rule 10b-17(b)(2), 37941-37942 [2012-15410]
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Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Notices
Dated at Rockville, Maryland, this 19th day
of June 2012.
37941
For the Nuclear Regulatory Commission.
Andrew L. Bates,
Acting Secretary of the Commission.
ATTACHMENT 1—GENERAL TARGET SCHEDULE FOR PROCESSING AND RESOLVING REQUESTS FOR ACCESS TO SENSITIVE
UNCLASSIFIED NON-SAFEGUARDS INFORMATION IN THIS PROCEEDING
Day
Event/activity
0 ........................
Publication of Federal Register notice of hearing and opportunity to petition for leave to intervene, including order with instructions for access requests.
Deadline for submitting requests for access to Sensitive Unclassified Non-Safeguards Information (SUNSI) with information:
Supporting the standing of a potential party identified by name and address; describing the need for the information in order
for the potential party to participate meaningfully in an adjudicatory proceeding.
Deadline for submitting petition for intervention containing: (i) Demonstration of standing; (ii) all contentions whose formulation
does not require access to SUNSI (+25 Answers to petition for intervention; +7 petitioner/requestor reply).
Nuclear Regulatory Commission (NRC) staff informs the requester of the staff’s determination whether the request for access
provides a reasonable basis to believe standing can be established and shows need for SUNSI. (NRC staff also informs
any party to the proceeding whose interest independent of the proceeding would be harmed by the release of the information.) If NRC staff makes the finding of need for SUNSI and likelihood of standing, NRC staff begins document processing
(preparation of redactions or review of redacted documents).
If NRC staff finds no ‘‘need’’ or no likelihood of standing, the deadline for petitioner/requester to file a motion seeking a ruling
to reverse the NRC staff’s denial of access; NRC staff files copy of access determination with the presiding officer (or Chief
Administrative Judge or other designated officer, as appropriate). If NRC staff finds ‘‘need’’ for SUNSI, the deadline for any
party to the proceeding whose interest independent of the proceeding would be harmed by the release of the information to
file a motion seeking a ruling to reverse the NRC staff’s grant of access.
Deadline for NRC staff reply to motions to reverse NRC staff determination(s).
(Receipt +30) If NRC staff finds standing and need for SUNSI, deadline for NRC staff to complete information processing and
file motion for Protective Order and draft Non-Disclosure Affidavit. Deadline for applicant/licensee to file Non-Disclosure
Agreement for SUNSI.
If access granted: Issuance of presiding officer or other designated officer decision on motion for protective order for access
to sensitive information (including schedule for providing access and submission of contentions) or decision reversing a
final adverse determination by the NRC staff.
Deadline for filing executed Non-Disclosure Affidavits. Access provided to SUNSI consistent with decision issuing the protective order.
Deadline for submission of contentions whose development depends upon access to SUNSI. However, if more than 25 days
remain between the petitioner’s receipt of (or access to) the information and the deadline for filing all other contentions (as
established in the notice of hearing or opportunity for hearing), the petitioner may file its SUNSI contentions by that later
deadline.
(Contention receipt +25) Answers to contentions whose development depends upon access to SUNSI.
(Answer receipt +7) Petitioner/Intervenor reply to answers.
Decision on contention admission.
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[FR Doc. 2012–15427 Filed 6–22–12; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67215; File No. TP 11–07]
Order Granting a Limited Exemption
From Exchange Act Rule 10b–17 to
Certain Actively Managed ExchangeTraded Funds Pursuant to Exchange
Act Rule 10b–17(b)(2)
erowe on DSK2VPTVN1PROD with NOTICES
June 19, 2012.
By letter dated June 19, 2012
(‘‘letter’’), as supplemented by
conversations with the staff of the
Division of Trading and Markets
(‘‘Staff’’), counsel for PIMCO ETF Trust
(‘‘Trust’’) requested on behalf of the
Trust and PIMCO Global Advantage
Inflation-Linked Bond Strategy Fund
(‘‘Fund’’) that the Securities and
Exchange Commission (‘‘Commission’’)
issue an exemption from Rule 10b–17
under the Securities Exchange Act of
VerDate Mar<15>2010
14:55 Jun 22, 2012
Jkt 226001
1934, as amended (‘‘Exchange Act’’).
Specifically, the letter requests that the
Commission exempt issuers of actively
managed exchange-traded funds
(‘‘ETFs’’) such as the Trust from the
requirements of Exchange Act Rule 10b–
17(b)(1)(v)(a) and (b) subject to certain
conditions. The request is similar to a
number of requests from issuers of
actively managed ETFs for conditional
exemptive relief from Rule 10b–17 that
were granted pursuant to delegated
authority (‘‘prior requests’’).1
Rule 10b–17, with certain exceptions,
requires an issuer of a class of publicly
traded securities to give timely notice of
certain specified actions (for example, a
dividend distribution) relating to such
1 See, e.g., Letter from Josephine J. Tao, Assistant
Director to W. John McGuire, Esq., Morgan Lewis
& Bockius LLP regarding AdvisorShares Trust
(December 16, 2011); Letter from Josephine J. Tao,
Assistant Director to Jeremy Senderowicz, Dechert
LLP regarding PIMCO Total Return ExchangeTraded Fund (March 1, 2012) and Letter from
Josephine J. Tao, Assistant Director to Jack P.
Drogin, Schiff Hardin regarding WisdomTree
Emerging Markets Corporate Bond Fund (April 16,
2012).
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
class of securities in accordance with
Rule 10b–17(b). In particular, Rule 10b–
17(b)(1)(v)(a) requires that the issuer
provide notice, for a dividend or other
distribution including a stock or reverse
split or rights or other subscription
offering, of the amount in cash to be
paid or distributed per share.2 Rule
10b–17(b)(1)(v)(b) requires that the
issuer provide notice, also for a
dividend or other distribution including
a stock or reverse split or rights or other
subscription offering, of the amount (in
the same security) of the security
outstanding immediately prior to and
immediately following the dividend or
distribution and the rate of the dividend
or distribution.
2 If the exact per share cash distributions cannot
be given because of existing conversion rights
which may be exercised during the notice period
and which may affect the per share cash
distribution, Rule 10b–17(b)(1)(v)(a) permits the
issuer to provide a reasonable approximation of the
per share distribution so long as the actual per share
distribution is subsequently provided on the record
date.
E:\FR\FM\25JNN1.SGM
25JNN1
37942
Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Notices
In adopting Rule 10b–17, the
Commission stated its concern that the
failure of an issuer to provide timely
announcements of record dates may
have misleading and deceptive effects.3
For example, the Commission stated
that if buyers and sellers (and their
brokers) do not have knowledge that
these rights may be forthcoming, they
could suffer losses.4 Also, the
Commission found that ‘‘some issuers
made belated declarations of stock splits
or dividends with the apparent
knowledge that this action would have
a manipulative effect on the market for
their securities.’’ 5 The letter represents,
as had the prior requests, that the
concerns that the Commission raised in
adopting Rule 10b–17 will not be
implicated if exemptive relief, subject to
the conditions below, is granted to the
Trust.
We find that it is appropriate in the
public interest and is consistent with
the protection of investors to grant a
conditional exemption from Rule 10b–
17 to any issuer of an actively managed
ETF including the Trust. Specifically,
other than receiving a delayed notice of
the cash distributed and the shares
outstanding, market participants will
receive timely notification of the
existence and timing of a pending
distribution as the Fund will comply
with all other requirements of Rule 10b–
17.6 Further, the provision of the
information required under Rule 10b–
17(b)(1)(v)(a) and (b) the day before the
ex-dividend date should allow market
participants time to update their
systems to reflect the accurate price
once trading begins on the ex-dividend
date.
Conclusion
It Is Hereby Ordered, pursuant to Rule
10b–17(b)(2), that any issuer of an
actively managed ETF is exempt from
the requirements of Rule 10b–
17(b)(1)(v)(a) and (b) with respect to
transactions in shares of the actively
managed ETF, subject to the following
conditions:
• The issuer must comply with Rule
10b–17 except for Rule 10b–
17(b)(1)(v)(a) and (b); and
• The issuer must provide the
information required by Rule 10b–
17(b)(1)(v)(a) and (b) to the national
erowe on DSK2VPTVN1PROD with NOTICES
3 Exchange
Act Release No. 9192 (Jun. 7, 1971);
36 FR 11513 (Jun. 15, 1971).
4 See id.
5 Id.
6 Rule 10b–17(b)(1)(v)(a) and (b). We also note
that timely compliance with Rule 10b–17(b)(1)(v)(a)
and (b) would be impractical in light of the nature
of such ETFs. This is because it is not possible for
these ETFs to accurately project ten days in advance
the composition of the dividend that would be paid
on a particular record date.
VerDate Mar<15>2010
14:55 Jun 22, 2012
Jkt 226001
securities exchange upon which shares
of the ETF are registered pursuant to
section 12 of the Exchange Act
(‘‘Exchange’’) as soon as practicable
before trading begins on the ex-dividend
date, but in no event later than the time
when the Exchange last accepts
information relating to distributions on
the day before the ex-dividend date.
This exemptive relief is subject to
modification or revocation at any time
the Commission determines that such
action is necessary or appropriate in
furtherance of the purposes of the
Exchange Act. In addition, persons
relying on this exemption are directed
to the anti-fraud and anti-manipulation
provisions of the federal securities laws,
particularly Section 10(b) of the
Exchange Act, and Rule 10b–5
thereunder. Responsibility for
compliance with these and any other
applicable provisions of the federal
securities laws must rest with the
persons relying on this exemption. This
order should not be considered a view
with respect to any other question that
the transactions may raise, including,
but not limited to the adequacy of the
disclosure concerning, and the
applicability of other federal or state
laws to, such transactions.
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
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) 4 of
the Act and Rule 19b–4(f)(6)
thereunder,5 which renders the proposal
effective upon receipt of this filing by
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
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.
[FR Doc. 2012–15410 Filed 6–22–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67213; File No. SR–
NYSEARCA–2012–61]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend NYSE Arca
Rule 2.23 To Prescribe The Registered
Proprietary Traders Examination
(Series 56) As the Qualifying
Examination for Registered Market
Makers, Market Maker Authorized
Traders, and Floor Brokers
June 19, 2012.
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 June 13,
2012, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
7 17
CFR 200.30–3(a)(9).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Rule 2.23 to prescribe the
Registered Proprietary Traders
Examination (Series 56) (the ‘‘Series 56
Examination’’) as the qualifying
examination for registered Market
Makers, Market Maker Authorized
Traders (‘‘MMAT’s’’), and Floor Brokers.
The text of the proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
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
NYSE Arca Rule 2.23 to prescribe the
Series 56 Examination as the qualifying
examination for registered Market
Makers, MMATs, and Floor Brokers.
NYSE Arca Rule 2.23 currently
specifies that the successful completion
of the Series 44 examination and an
orientation program for such
examination is required in order to
register as a Market Maker or a MMAT.
1 15
PO 00000
Frm 00074
Fmt 4703
4 15
5 17
Sfmt 4703
E:\FR\FM\25JNN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
25JNN1
]]>Agencies
[Federal Register Volume 77, Number 122 (Monday, June 25, 2012)]
[Notices]
[Pages 37941-37942]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15410]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67215; File No. TP 11-07]
Order Granting a Limited Exemption From Exchange Act Rule 10b-17
to Certain Actively Managed Exchange-Traded Funds Pursuant to Exchange
Act Rule 10b-17(b)(2)
June 19, 2012.
By letter dated June 19, 2012 (``letter''), as supplemented by
conversations with the staff of the Division of Trading and Markets
(``Staff''), counsel for PIMCO ETF Trust (``Trust'') requested on
behalf of the Trust and PIMCO Global Advantage Inflation-Linked Bond
Strategy Fund (``Fund'') that the Securities and Exchange Commission
(``Commission'') issue an exemption from Rule 10b-17 under the
Securities Exchange Act of 1934, as amended (``Exchange Act'').
Specifically, the letter requests that the Commission exempt issuers of
actively managed exchange-traded funds (``ETFs'') such as the Trust
from the requirements of Exchange Act Rule 10b-17(b)(1)(v)(a) and (b)
subject to certain conditions. The request is similar to a number of
requests from issuers of actively managed ETFs for conditional
exemptive relief from Rule 10b-17 that were granted pursuant to
delegated authority (``prior requests'').\1\
---------------------------------------------------------------------------
\1\ See, e.g., Letter from Josephine J. Tao, Assistant Director
to W. John McGuire, Esq., Morgan Lewis & Bockius LLP regarding
AdvisorShares Trust (December 16, 2011); Letter from Josephine J.
Tao, Assistant Director to Jeremy Senderowicz, Dechert LLP regarding
PIMCO Total Return Exchange-Traded Fund (March 1, 2012) and Letter
from Josephine J. Tao, Assistant Director to Jack P. Drogin, Schiff
Hardin regarding WisdomTree Emerging Markets Corporate Bond Fund
(April 16, 2012).
---------------------------------------------------------------------------
Rule 10b-17, with certain exceptions, requires an issuer of a class
of publicly traded securities to give timely notice of certain
specified actions (for example, a dividend distribution) relating to
such class of securities in accordance with Rule 10b-17(b). In
particular, Rule 10b-17(b)(1)(v)(a) requires that the issuer provide
notice, for a dividend or other distribution including a stock or
reverse split or rights or other subscription offering, of the amount
in cash to be paid or distributed per share.\2\ Rule 10b-17(b)(1)(v)(b)
requires that the issuer provide notice, also for a dividend or other
distribution including a stock or reverse split or rights or other
subscription offering, of the amount (in the same security) of the
security outstanding immediately prior to and immediately following the
dividend or distribution and the rate of the dividend or distribution.
---------------------------------------------------------------------------
\2\ If the exact per share cash distributions cannot be given
because of existing conversion rights which may be exercised during
the notice period and which may affect the per share cash
distribution, Rule 10b-17(b)(1)(v)(a) permits the issuer to provide
a reasonable approximation of the per share distribution so long as
the actual per share distribution is subsequently provided on the
record date.
---------------------------------------------------------------------------
[[Page 37942]]
In adopting Rule 10b-17, the Commission stated its concern that the
failure of an issuer to provide timely announcements of record dates
may have misleading and deceptive effects.\3\ For example, the
Commission stated that if buyers and sellers (and their brokers) do not
have knowledge that these rights may be forthcoming, they could suffer
losses.\4\ Also, the Commission found that ``some issuers made belated
declarations of stock splits or dividends with the apparent knowledge
that this action would have a manipulative effect on the market for
their securities.'' \5\ The letter represents, as had the prior
requests, that the concerns that the Commission raised in adopting Rule
10b-17 will not be implicated if exemptive relief, subject to the
conditions below, is granted to the Trust.
---------------------------------------------------------------------------
\3\ Exchange Act Release No. 9192 (Jun. 7, 1971); 36 FR 11513
(Jun. 15, 1971).
\4\ See id.
\5\ Id.
---------------------------------------------------------------------------
We find that it is appropriate in the public interest and is
consistent with the protection of investors to grant a conditional
exemption from Rule 10b-17 to any issuer of an actively managed ETF
including the Trust. Specifically, other than receiving a delayed
notice of the cash distributed and the shares outstanding, market
participants will receive timely notification of the existence and
timing of a pending distribution as the Fund will comply with all other
requirements of Rule 10b-17.\6\ Further, the provision of the
information required under Rule 10b-17(b)(1)(v)(a) and (b) the day
before the ex-dividend date should allow market participants time to
update their systems to reflect the accurate price once trading begins
on the ex-dividend date.
---------------------------------------------------------------------------
\6\ Rule 10b-17(b)(1)(v)(a) and (b). We also note that timely
compliance with Rule 10b-17(b)(1)(v)(a) and (b) would be impractical
in light of the nature of such ETFs. This is because it is not
possible for these ETFs to accurately project ten days in advance
the composition of the dividend that would be paid on a particular
record date.
---------------------------------------------------------------------------
Conclusion
It Is Hereby Ordered, pursuant to Rule 10b-17(b)(2), that any
issuer of an actively managed ETF is exempt from the requirements of
Rule 10b-17(b)(1)(v)(a) and (b) with respect to transactions in shares
of the actively managed ETF, subject to the following conditions:
The issuer must comply with Rule 10b-17 except for Rule
10b-17(b)(1)(v)(a) and (b); and
The issuer must provide the information required by Rule
10b-17(b)(1)(v)(a) and (b) to the national securities exchange upon
which shares of the ETF are registered pursuant to section 12 of the
Exchange Act (``Exchange'') as soon as practicable before trading
begins on the ex-dividend date, but in no event later than the time
when the Exchange last accepts information relating to distributions on
the day before the ex-dividend date.
This exemptive relief is subject to modification or revocation at
any time the Commission determines that such action is necessary or
appropriate in furtherance of the purposes of the Exchange Act. In
addition, persons relying on this exemption are directed to the anti-
fraud and anti-manipulation provisions of the federal securities laws,
particularly Section 10(b) of the Exchange Act, and Rule 10b-5
thereunder. Responsibility for compliance with these and any other
applicable provisions of the federal securities laws must rest with the
persons relying on this exemption. This order should not be considered
a view with respect to any other question that the transactions may
raise, including, but not limited to the adequacy of the disclosure
concerning, and the applicability of other federal or state laws to,
such transactions.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(9).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-15410 Filed 6-22-12; 8:45 am]
BILLING CODE 8011-01-P
