Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To List and Trade Shares of the JPMorgan Global Bond Opportunities ETF, 57967-57968 [2016-20207]
Download as PDF
Federal Register / Vol. 81, No. 164 / Wednesday, August 24, 2016 / Notices
but this may change as the relative costs
for trade reporting services shift. If a
member chooses to use the ADF as a
primary or secondary trade reporting
venue, it will be because it is
determined to be advantageous to that
member.
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.
mstockstill on DSK3G9T082PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
FINRA–2016–031 on the subject line.
Paper Comments
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 21 and Rule 19b–
4(f)(6) thereunder.22 FINRA believes
that the filing is appropriately
designated as ‘‘non-controversial’’
because the proposed rule change does
not create any new trade reporting
obligations to members, but rather
provides another alternative for
members to meet their existing equity
trade reporting obligations. Members
that do not wish to be subject to the
proposed testing requirements and fees
or otherwise determine that the ADF is
not a cost-effective option for them—as
either a primary or secondary facility for
trade reporting—can elect to use one (or
both) of the TRFs to fulfill their trade
reporting obligations under FINRA
rules.
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. 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:
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–FINRA–2016–031. 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 (https://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–FINRA–
2016–031 and should be submitted on
or before September 14, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–20203 Filed 8–23–16; 8:45 am]
BILLING CODE 8011–01–P
21 15
U.S.C. 78s(b)(3)(A).
22 17 CFR 240.19b–4(f)(6).
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23 17
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CFR 200.30–3(a)(12).
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57967
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78613; File No. SR–
BatsBZX–2016–35]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of
Designation of a Longer Period for
Commission Action on a Proposed
Rule Change To List and Trade Shares
of the JPMorgan Global Bond
Opportunities ETF
August 18, 2016.
On July 1, 2016, Bats BZX Exchange,
Inc. (the ‘‘Exchange’’ or ‘‘BZX’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to list and trade shares of the
JPMorgan Global Bond Opportunities
ETF of the J.P. Morgan Exchange-Traded
Fund Trust under BZX Rule 14.11(i).
The proposed rule change was
published for comment in the Federal
Register on July 14, 2016.3 The
Commission received no comments on
the proposed rule change.
Section 19(b)(2) of the Act 4 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The Commission is
extending this 45-day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,5
designates October 12, 2016 as the date
by which the Commission should either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–BatsBZX–2016–35).
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 78264
(July 8, 2016), 81 FR 45546.
4 15 U.S.C. 78s(b)(2).
5 Id.
2 17
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57968
Federal Register / Vol. 81, No. 164 / Wednesday, August 24, 2016 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–20207 Filed 8–23–16; 8:45 am]
BILLING CODE 8011–01–P
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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78616; File No. SR–
NASDAQ–2016–104]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing of Proposed Rule Change To
Amend Nasdaq Rule 5735 To Adopt
Generic Listing Standards for Managed
Fund Shares
August 18, 2016.
Pursuant to 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
16, 2016, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Nasdaq Rule 5735 to adopt generic
listing standards for Managed Fund
Shares.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaq.cchwallstreet.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
mstockstill on DSK3G9T082PROD with NOTICES
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
6 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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The Exchange proposes to amend
Nasdaq Rule 5735 to adopt generic
listing standards for Managed Fund
Shares, as well as to make additional
changes as described below. Under the
Exchange’s current rules, a proposed
rule change must be filed with the
Commission for the listing and trading
of each new series of Managed Fund
Shares. The Exchange believes that it is
appropriate to codify certain rules
within Rule 5735 that would generally
eliminate the need for such proposed
rule changes, which would create
greater efficiency and promote uniform
standards in the listing process.3
Background
Rule 5735 sets forth certain rules
related to the listing and trading of
Managed Fund Shares.4 Under Rule
5735(c)(1), the term ‘‘Managed Fund
Share’’ means a security that:
(a) Represents an interest in a
registered investment company
(‘‘Investment Company’’) organized as
an open-end management investment
company or similar entity, that invests
in a portfolio of securities selected by
the Investment Company’s investment
adviser (hereafter ‘‘Adviser’’) consistent
3 Except as noted below, this proposed rule
change is substantively identical to changes
approved by the Commission to NYSE Arca
Equities Rule 8.600. See Securities Exchange Act
Release No. 78397 (July 22, 2016) (SR–NYSEArca–
2015–110) (order approving generic listing
standards for Managed Fund Shares listed per
NYSE Arca Equities Rule 8.600). The definition of
‘‘Exchange Traded Derivative Securities’’ provided
in proposed Rule 5735(c)(6) is similar to, but more
narrow than, the definition of ‘‘Derivative Securities
Product’’ used in NYSE Arca Rule 8.600 because
the proposed definition of Exchange Traded
Derivative Securities does not include an Exchange
rule comparable to NYSE Arca Equities Rule 8.400
(Paired Trust Shares). In addition, non-substantive
changes are made in order to conform the proposal
to the structure of the Exchange’s current rules. See
also Securities Exchange Act Release No. 78396
(July 22, 2016) (SR–BATS–2015–100) (order
approving generic BATS listing standards for
Managed Fund Shares).
4 See Securities Exchange Act Release No. 57962
(June 13, 2008), 73 FR 35175 (June 20, 2008) (SR–
NASDAQ–2008–039) (order approving Nasdaq Rule
4420(o) and listing and trading of shares of certain
issues of Managed Fund Shares) (the ‘‘Approval
Order’’). The Approval Order approved, among
other things, the rules permitting the listing and
trading of Managed Fund Shares. Rule 4420(o) was
subsequently relocated to Rule 5735. See Securities
Exchange Act Release No. 59663 (March 31, 2009),
74 FR 15552 (April 6, 2009) (SR–NASDAQ–2009–
018).
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with the Investment Company’s
investment objectives and policies;
(b) is issued in a specified aggregate
minimum number in return for a
deposit of a specified portfolio of
securities and/or a cash amount with a
value equal to the next determined net
asset value; and
(c) when aggregated in the same
specified minimum number, may be
redeemed at a holder’s request, which
holder will be paid a specified portfolio
of securities and/or cash with a value
equal to the next determined net asset
value.
Effectively, Managed Fund Shares are
securities issued by an activelymanaged open-end Investment
Company (i.e., an actively-managed
exchange-traded fund (‘‘ETF’’)). Because
Managed Fund Shares are activelymanaged, they do not seek to replicate
the performance of a specified passive
index of securities. Instead, they
generally use an active investment
strategy to seek to meet their investment
objectives. In contrast, an open-end
Investment Company that issues Index
Fund Shares, listed and traded on the
Exchange pursuant to Nasdaq Rule
5705(b), seeks to provide investment
results that generally correspond to the
price and yield performance of a
specific foreign or domestic stock index,
fixed income securities index, or
combination thereof.
All Managed Fund Shares listed and/
or traded pursuant to Rule 5735
(including pursuant to unlisted trading
privileges) are subject to the full
panoply of Exchange rules and
procedures that currently govern the
trading of equity securities on the
Exchange.5
In addition, Rule 5735(d) currently
provides for the criteria that Managed
Fund Shares must satisfy for initial and
continued listing on the Exchange,
including, for example, that a minimum
number of Managed Fund Shares are
required to be outstanding at the time of
commencement of trading on the
Exchange. However, the current process
for listing and trading new series of
Managed Fund Shares on the Exchange
requires that the Exchange submit a
proposed rule change with the
Commission. In this regard, Rule
5735(b)(1) specifies that the Exchange
will file separate proposals under
Section 19(b) of the Act (hereafter, a
‘‘proposed rule change’’) before listing
and trading shares of an issue of
Managed Fund Shares.
5 See
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Approval Order, note 4 above, at 35177.
24AUN1
Agencies
[Federal Register Volume 81, Number 164 (Wednesday, August 24, 2016)]
[Notices]
[Pages 57967-57968]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20207]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78613; File No. SR-BatsBZX-2016-35]
Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Designation of a Longer Period for Commission Action on a Proposed Rule
Change To List and Trade Shares of the JPMorgan Global Bond
Opportunities ETF
August 18, 2016.
On July 1, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares of the JPMorgan Global
Bond Opportunities ETF of the J.P. Morgan Exchange-Traded Fund Trust
under BZX Rule 14.11(i). The proposed rule change was published for
comment in the Federal Register on July 14, 2016.\3\ The Commission
received no comments on the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 78264 (July 8,
2016), 81 FR 45546.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \4\ provides that, within 45 days of
the publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
Commission is extending this 45-day time period.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The Commission finds it appropriate to designate a longer period
within which to take action on the proposed rule change so that it has
sufficient time to consider the proposed rule change. Accordingly, the
Commission, pursuant to Section 19(b)(2) of the Act,\5\ designates
October 12, 2016 as the date by which the Commission should either
approve or disapprove, or institute proceedings to determine whether to
disapprove, the proposed rule change (File No. SR-BatsBZX-2016-35).
---------------------------------------------------------------------------
\5\ Id.
[[Page 57968]]
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
Robert W. Errett,
Deputy Secretary.
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------
[FR Doc. 2016-20207 Filed 8-23-16; 8:45 am]
BILLING CODE 8011-01-P