Sunshine Act Meeting, 14316-14317 [2014-05591]
Download as PDF
<![CDATA[
TKELLEY on DSK3SPTVN1PROD with NOTICES
14316
Federal Register / Vol. 79, No. 49 / Thursday, March 13, 2014 / Notices
12. The Interfund Lending Committee
will calculate total Fund borrowing and
lending demand through the proposed
credit facility, and allocate loans on an
equitable basis among the Funds,
without the intervention of any portfolio
manager of the Funds (other than a
Money Market Fund portfolio manager
acting in his or her capacity as a
member of the Interfund Lending
Committee). All allocations will require
the approval of at least one member of
the Interfund Lending Committee who
is a high level employee and is not a
Money Market Fund portfolio manager.
The Interfund Lending Committee will
not solicit cash for the proposed credit
facility from any Fund or prospectively
publish or disseminate loan demand
data to portfolio managers (except to the
extent that a Money Market Fund
portfolio manager on the Interfund
Lending Committee has access to loan
demand data). The Interfund Lending
Committee will invest any amounts
remaining after satisfaction of borrowing
demand in accordance with the
standing instructions of the portfolio
managers or such remaining amounts
will be invested directly by the portfolio
managers of the Funds.
13. The Interfund Lending Committee
will monitor the Interfund Loan Rate
and the other terms and conditions of
the Interfund Loans and will make a
quarterly report to the Trustees of each
Fund concerning the participation of the
Funds in the proposed credit facility
and the terms and other conditions of
any extensions of credit under the credit
facility.
14. The Trustees of each Fund,
including a majority of the Independent
Trustees, will:
(a) Review, no less frequently than
quarterly, the Fund’s participation in
the proposed credit facility during the
preceding quarter for compliance with
the conditions of any order permitting
such transactions;
(b) establish the Bank Loan Rate
formula used to determine the interest
rate on Interfund Loans and review, no
less frequently than annually, the
continuing appropriateness of the Bank
Loan Rate formula; and
(c) review, no less frequently than
annually, the continuing
appropriateness of the Fund’s
participation in the proposed credit
facility.
15. In the event an Interfund Loan is
not paid according to its terms and such
default is not cured within two business
days from its maturity or from the time
the lending Fund makes a demand for
payment under the provisions of the
Interfund Lending Agreement, the
Adviser will promptly refer such loan
VerDate Mar<15>2010
17:33 Mar 12, 2014
Jkt 232001
for arbitration to an independent
arbitrator selected by the Trustees of
each Fund involved in the loan who
will serve as arbitrator of disputes
concerning Interfund Loans.2 The
arbitrator will resolve any problem
promptly, and the arbitrator’s decision
will be binding on both Funds. The
arbitrator will submit, at least annually,
a written report to the Trustees setting
forth a description of the nature of any
dispute and the actions taken by the
Funds to resolve the dispute.
16. Each Fund will maintain and
preserve for a period of not less than six
years from the end of the fiscal year in
which any transaction by it under the
proposed credit facility occurred, the
first two years in an easily accessible
place, written records of all such
transactions setting forth a description
of the terms of the transactions,
including the amount, the maturity and
the Interfund Loan Rate, the rate of
interest available at the time each
Interfund Loan is made on overnight
repurchase agreements and commercial
bank borrowings, the yield of any
money market fund in which the
lending Fund could otherwise invest,
and such other information presented to
the Fund’s Trustees in connection with
the review required by conditions 13
and 14.
17. The Adviser will prepare and
submit to the Trustees for review an
initial report describing the operations
of the proposed credit facility and the
procedures to be implemented to ensure
that all Funds are treated fairly. After
the commencement of the proposed
credit facility, the Adviser will report on
the operations of the proposed credit
facility at the Trustees’ quarterly
meetings.
Each Fund’s chief compliance officer,
as defined in rule 38a1(a)(4) under the
Act, shall prepare an annual report for
its Trustees each year that the Fund
participates in the proposed credit
facility, that evaluates the Fund’s
compliance with the terms and
conditions of the application and the
procedures established to achieve such
compliance. Each Fund’s chief
compliance officer will also annually
file a certification pursuant to Item
77Q3 of Form N–SAR as such Form may
be revised, amended or superseded from
time to time, for each year that the Fund
participates in the proposed credit
facility, that certifies that the Fund and
the Adviser have established procedures
reasonably designed to achieve
2 If the dispute involves Funds with different
Trustees, the respective Trustees of each Fund will
select an independent arbitrator that is satisfactory
to each Fund.
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
compliance with the terms and
conditions of the order. In particular,
such certification will address
procedures designed to achieve the
following objectives:
(a) That the Interfund Loan Rate will
be higher than the Repo Rate and, if
applicable, the yield of the money
market funds, but lower than the Bank
Loan Rate;
(b) compliance with the collateral
requirements as set forth in the
application;
(c) compliance with the percentage
limitations on interfund borrowing and
lending;
(d) allocation of interfund borrowing
and lending demand in an equitable
manner and in accordance with
procedures established by the Trustees;
and
(e) that the Interfund Loan Rate does
not exceed the interest rate on any third
party borrowings of a borrowing Fund at
the time of the Interfund Loan.
Additionally, each Fund’s
independent public accountants, in
connection with their audit examination
of the Fund, will review the operation
of the proposed credit facility for
compliance with the conditions of the
application and their review will form
the basis, in part, of the auditor’s report
on internal accounting controls in Form
N–SAR.
18. No Fund will participate in the
proposed credit facility upon receipt of
requisite regulatory approval unless it
has fully disclosed in its prospectus
and/or statement of additional
information all material facts about its
intended participation.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–05463 Filed 3–12–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold an Open Meeting
on Wednesday, March 12, 2014 at 10:30
a.m., in the Auditorium, Room L–002.
The subject matter of the Open
Meeting will be:
• The Commission will consider
whether to propose rules related to
standards for clearing agencies under
Section 17A of the Securities Exchange
E:\FR\FM\13MRN1.SGM
13MRN1
Federal Register / Vol. 79, No. 49 / Thursday, March 13, 2014 / Notices
Act of 1934 and Title VIII of the DoddFrank Wall Street Reform and Consumer
Protection Act.
The duty officer has determined that
no earlier notice was practicable.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted, or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
Dated: March 10, 2014.
Kevin M. O’Neill,
Deputy Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2014–05591 Filed 3–11–14; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71663; File No. SR–CBOE–
2014–018]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the CBOE
Stock Exchange Fees Schedule
March 7, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that, on March 4,
2014, Chicago Board Options Exchange,
Incorporated (the ‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘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.
TKELLEY on DSK3SPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to amend the Fees
Schedule of its CBOE Stock Exchange
(‘‘CBSX’’). The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
17:33 Mar 12, 2014
Jkt 232001
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.
1. Purpose
The Exchange proposes to amend the
CBSX Fees Schedule in connection with
a planned business and market
reorganization regarding CBSX. One
effect of this proposed change will be to
simplify transaction fees. Currently, for
transactions in securities priced $1 or
greater, there are a variety of fee and
rebate tiers depending at least partly on
the liquidity that a market participant
adds to or removes from CBSX.3 Fee
amounts can also depend on the type of
order being utilized or order liquidity
being removed, as well as the products
being traded.4 For transactions in
securities priced less than $1, CBSX
assesses different fee amounts
depending on whether the market
participant is a Maker or a Taker. CBSX
now proposes to cease offering a MakerTaker pricing structure that may
distinguish fee and rebate amounts
based upon amount of liquidity added
or removed by the market participant,
the product being traded, or whether the
trade adds liquidity using a silent,
silent-mid, or silent-post-mid order, or
removes silent, silent-mid, or silentpost-mid liquidity. Instead, the
Exchange proposal would simplify its
pricing. For transactions in securities
priced $1 or greater, whether Maker or
Taker, CBSX will assess a fee of $0.0030
per share. For transactions in securities
priced less than $1, whether Maker or
Taker, CBSX will assess a fee of 0.30%
of the dollar value of the transaction.
Along with aiding in preparation for a
planned business and market
reorganization regarding CBSX, the
Exchange believes that the proposed
3 See
CBSX Fees Schedule, section 2.
CBSX Fees Schedule, section 2. While CBSX
offers different pricing for products classified as the
‘‘Select Symbols’’, there currently are no products
listed as ‘‘Select Symbols’’.
4 See
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
14317
simplified fee structure may make it
easier for market participants to
determine which fees apply to their
transactions.
CBSX also proposes to eliminate its
Inactivity Fee.5 The Inactivity Fee is
applied to CBSX Trading Permit
Holders that do not transact a certain
amount of shares on CBSX. CBSX no
longer believes that this fee is necessary,
and therefore proposes to eliminate it.
In conjunction with these proposed
changes, CBSX proposes to clean up its
Fees Schedule. Footnotes 1, 4, 5 and 6
to the transaction fees will no longer be
applicable, and therefore CBSX
proposes to delete them. Current
footnotes 2 and 3 will become footnotes
1 and 2, respectively. Due to the
deletion of section 5, the Inactivity Fee,
all sections afterwards will be renumbered (current section 6 becomes
section 5, current section 7 becomes
section 6, current section 8 becomes
section 7, and current section 9 becomes
section 8).
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.6 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 7 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
Section 6(b)(4) of the Act,8 which
requires that Exchange rules provide for
the equitable allocation of reasonable
5 The Inactivity Fee is charged to any CBSX
Trading Permit Holder that trades less than an
average of 100,000 shares per day over a calendar
month period. This fee will be calculated monthly.
The amount of this fee is $5,000 per month. A
CBSX Trading Permit Holder may not be assessed
this fee until the calendar month following the first
full calendar month after the effective date of the
Trading Permit. If a CBSX Trading Permit Holder
incurs this fee for a calendar month period but
trades at least an average of 200,000 shares per day
over the following calendar month period, then the
Exchange will rescind the Inactivity Fee.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78f(b)(4).
E:\FR\FM\13MRN1.SGM
13MRN1
]]>Agencies
[Federal Register Volume 79, Number 49 (Thursday, March 13, 2014)]
[Notices]
[Pages 14316-14317]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-05591]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Public Law 94-409, that the Securities
and Exchange Commission will hold an Open Meeting on Wednesday, March
12, 2014 at 10:30 a.m., in the Auditorium, Room L-002.
The subject matter of the Open Meeting will be:
The Commission will consider whether to propose rules
related to standards for clearing agencies under Section 17A of the
Securities Exchange
[[Page 14317]]
Act of 1934 and Title VIII of the Dodd-Frank Wall Street Reform and
Consumer Protection Act.
The duty officer has determined that no earlier notice was
practicable.
At times, changes in Commission priorities require alterations in
the scheduling of meeting items.
For further information and to ascertain what, if any, matters have
been added, deleted, or postponed, please contact:
The Office of the Secretary at (202) 551-5400.
Dated: March 10, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-05591 Filed 3-11-14; 11:15 am]
BILLING CODE 8011-01-P
