Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Withdrawal of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend Rule 6.67(c) by Revising the Clearing Member Requirements for Entering an Order into the Electronic Order Capture System, 61724-61725 [2016-21382]

Download as PDF mstockstill on DSK3G9T082PROD with NOTICES 61724 Federal Register / Vol. 81, No. 173 / Wednesday, September 7, 2016 / Notices 3. Shares will be purchased and redeemed in Creation Units and generally on an in-kind basis. Except where the purchase or redemption will include cash under the limited circumstances specified in the application, purchasers will be required to purchase Creation Units by depositing specified instruments (‘‘Deposit Instruments’’), and shareholders redeeming their shares will receive specified instruments (‘‘Redemption Instruments’’). The Deposit Instruments and the Redemption Instruments will each correspond pro rata to the positions in the Fund’s portfolio (including cash positions) except as specified in the application. 4. Because shares will not be individually redeemable, applicants request an exemption from section 5(a)(1) and section 2(a)(32) of the Act that would permit the Funds to register as open-end management investment companies and issue shares that are redeemable in Creation Units only. 5. Applicants also request an exemption from section 22(d) of the Act and rule 22c–1 under the Act as secondary market trading in shares will take place at negotiated prices, not at a current offering price described in a Fund’s prospectus, and not at a price based on NAV. Applicants state that (a) secondary market trading in shares does not involve a Fund as a party and will not result in dilution of an investment in shares, and (b) to the extent different prices exist during a given trading day, or from day to day, such variances occur as a result of third-party market forces, such as supply and demand. Therefore, applicants assert that secondary market transactions in shares will not lead to discrimination or preferential treatment among purchasers. Finally, applicants represent that share market prices will be disciplined by arbitrage opportunities, which should prevent shares from trading at a material discount or premium from NAV. 6. With respect to Funds that effect creations and redemptions of Creation Units in kind and that are based on certain Underlying Indexes that include foreign securities, applicants request relief from the requirement imposed by section 22(e) in order to allow such Funds to pay redemption proceeds within fifteen calendar days following the tender of Creation Units for redemption. Applicants assert that the requested relief would not be Applicants believe that requiring Self-Indexing Funds to maintain full portfolio transparency will help address, together with other protections, conflicts of interest with respect to such Funds. VerDate Sep<11>2014 17:30 Sep 06, 2016 Jkt 238001 inconsistent with the spirit and intent of section 22(e) to prevent unreasonable, undisclosed or unforeseen delays in the actual payment of redemption proceeds. 7. Applicants request an exemption to permit Funds of Funds to acquire Fund shares beyond the limits of section 12(d)(1)(A) of the Act; and the Funds, and any principal underwriter for the Funds, and/or any broker or dealer registered under the Exchange Act, to sell shares to Funds of Funds beyond the limits of section 12(d)(1)(B) of the Act. The application’s terms and conditions are designed to, among other things, help prevent any potential (i) undue influence over a Fund through control or voting power, or in connection with certain services, transactions, and underwritings, (ii) excessive layering of fees, and (iii) overly complex fund structures, which are the concerns underlying the limits in sections 12(d)(1)(A) and (B) of the Act. 8. Applicants request an exemption from sections 17(a)(1) and 17(a)(2) of the Act to permit persons that are Affiliated Persons, or Second Tier Affiliates, of the Funds, solely by virtue of certain ownership interests, to effectuate purchases and redemptions in-kind. The deposit procedures for in-kind purchases of Creation Units and the redemption procedures for in-kind redemptions of Creation Units will be the same for all purchases and redemptions and Deposit Instruments and Redemption Instruments will be valued in the same manner as those investment positions currently held by the Funds. Applicants also seek relief from the prohibitions on affiliated transactions in section 17(a) to permit a Fund to sell its shares to and redeem its shares from a Fund of Funds, and to engage in the accompanying in-kind transactions with the Fund of Funds.3 The purchase of Creation Units by a Fund of Funds directly from a Fund will be accomplished in accordance with the policies of the Fund of Funds and will be based on the NAVs of the Funds. 9. Applicants also request relief to permit a Feeder Fund to acquire shares of another registered investment company managed by the Adviser having substantially the same investment objectives as the Feeder 3 The requested relief would apply to direct sales of shares in Creation Units by a Fund to a Fund of Funds and redemptions of those shares. Applicants, moreover, are not seeking relief from section 17(a) for, and the requested relief will not apply to, transactions where a Fund could be deemed an Affiliated Person, or a Second-Tier Affiliate, of a Fund of Funds because an Adviser or an entity controlling, controlled by or under common control with an Adviser provides investment advisory services to that Fund of Funds. PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 Fund (‘‘Master Fund’’) beyond the limitations in section 12(d)(1)(A) and permit the Master Fund, and any principal underwriter for the Master Fund, to sell shares of the Master Fund to the Feeder Fund beyond the limitations in section 12(d)(1)(B). 10. Section 6(c) of the Act permits the Commission to exempt any persons or transactions from any provision of the Act if such exemption is necessary or appropriate in the public interest and consistent with the protection of investors and the purposes fairly intended by the policy and provisions of the Act. Section 12(d)(1)(J) of the Act provides that the Commission may exempt any person, security, or transaction, or any class or classes of persons, securities, or transactions, from any provision of section 12(d)(1) if the exemption is consistent with the public interest and the protection of investors. Section 17(b) of the Act authorizes the Commission to grant an order permitting a transaction otherwise prohibited by section 17(a) if it finds that (a) the terms of the proposed transaction are fair and reasonable and do not involve overreaching on the part of any person concerned; (b) the proposed transaction is consistent with the policies of each registered investment company involved; and (c) the proposed transaction is consistent with the general purposes of the Act. For the Commission, by the Division of Investment Management, under delegated authority. Robert W. Errett, Deputy Secretary. [FR Doc. 2016–21248 Filed 9–6–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78743; File No. SR– NYSEArca-2016–15] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Withdrawal of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend Rule 6.67(c) by Revising the Clearing Member Requirements for Entering an Order into the Electronic Order Capture System August 31, 2016. On March 22, 2016, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 1 15 E:\FR\FM\07SEN1.SGM U.S.C. 78s(b)(1). 07SEN1 Federal Register / Vol. 81, No. 173 / Wednesday, September 7, 2016 / Notices 19b-4 thereunder,2 a proposed rule change to amend Rule 6.67(c) to change the timing for recording the name of the Clearing Member 3 in the Electronic Order Capture system (‘‘EOC’’). On March 29, 2016,4 the Exchange filed Amendment No. 1 to the proposed rule change. The Commission published the proposed rule change, as modified by Amendment No. 1, for comment in the Federal Register on April 11, 2016.5 The Commission received no comments on the proposed rule change. On May 25, 2016 the Commission extended the time period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to approve or disapprove the proposed rule change to July 10, 2016.6 On July 7, 2016, the Commission instituted proceedings under section 19(b)(2)(B) of the Act 7 to determine whether to approve or disapprove the proposed rule change, as modified by Amendment No. 1.8 The Commission received no comments on the proposed rule change. On August 29, 2016, the Exchange withdrew the proposed rule change (SR–NYSEArca-2016–15). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–21382 Filed 9–6–16; 8:45 am] BILLING CODE 8011–01–P the Securities and Exchange Commission will hold a closed meeting on Thursday, September 8, 2016 at 2 p.m. Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the closed meeting. Certain staff members who have an interest in the matters also may be present. The General Counsel of the Commission, or her designee, has certified that, in her opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 200.402(a)(3), (a)(5), (a)(7), (a)(9)(ii) and (a)(10), permit consideration of the scheduled matter at the closed meeting. Chair White, as duty officer, voted to consider the items listed for the closed meeting in closed session. The subject matter of the closed meeting will be: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; Resolution of litigation claims; and Other matters relating to enforcement proceedings. 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 Brent J. Fields from the Office of the Secretary at (202) 551–5400. SECURITIES AND EXCHANGE COMMISSION Dated: September 1, 2016. Brent J. Fields, Secretary. Sunshine Act Meeting [FR Doc. 2016–21585 Filed 9–2–16; 4:15 pm] Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that BILLING CODE 8011–01–P 2 17 CFR 240.19b-4. 6.1(b)(3) defines ‘‘Clearing Member’’ as an Exchange OTP which has been admitted to membership in the Options Clearing Corporation pursuant to the provisions of the Rules of the Options Clearing Corporation. 4 The Commission notes that the amendment date of March 30, 2016 in the SR–NYSEArca-2016–15 Notice is incorrect and the proper date is March 29, 2016. 5 See Securities Exchange Act Release No. 34– 77516 (April 5, 2016), 81 FR 21430 (‘‘Notice’’). Amendment No.1 was included in the Notice and provided the clarification that the CMTA Information and the name of the clearing OTP Holder would be entered into the EOC ‘‘as the events occur and/or during trade reporting procedures which may occur after the representation and execution of the order.’’ 6 See Securities Exchange Act Release No. 34– 77909, 81 FR 35079 (June 1, 2016). 7 15 U.S.C. 78s(b)(2)(B). 8 See Securities Exchange Act Release No. 34– 78239, 81 FR 45349 (July 13, 2016). 9 17 CFR 200.30–3(a)(57). mstockstill on DSK3G9T082PROD with NOTICES 3 Rule VerDate Sep<11>2014 17:30 Sep 06, 2016 Jkt 238001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78744; File No. SR– NYSEMKT–2016–48] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Amend Certain Rules Relating to Flexible Exchange Options August 31, 2016. On July 1, 2016, NYSE MKT LLC (‘‘NYSE MKT’’ or the ‘‘Exchange’’) 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 1 15 2 17 PO 00000 U.S.C.78s(b)(1). CFR 240.19b–4. Frm 00064 Fmt 4703 Sfmt 9990 61725 change to amend certain rules related to Flexible Exchange (‘‘FLEX’’) Options. The proposed rule change was published for comment in the Federal Register on July 21, 2016.3 On August 30, 2016, the Exchange filed Amendment No. 1 to the proposed rule change.4 No comments have been received on the proposed rule change. Section 19(b)(2) of the Act 5 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 45th day after publication of the notice for this proposed rule change is September 4, 2016. The Commission is extending this 45-day time period for Commission action on the proposed rule change. 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, as modified by Amendment No. 1. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,6 and for the reason noted above, designates October 19, 2016 as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SR– NYSEMKT–2016–48). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–21383 Filed 9–6–16; 8:45 am] BILLING CODE 8011–01–P 3 See Securities Exchange Act Release No. 78348 (July 15, 2016), 81 FR 47469. 4 Amendment No. 1 adds detail about limitations on FLEX Binary Return Derivatives (‘‘ByRDs’’), specifies that Asian and Cliquet style settlements will be available for broad-based FLEX Index Options only, and removes an alternative exercise settlement style for FLEX Equity Options. See Amendment No. 1. 5 15 U.S.C. 78s(b)(2). 6 15 U.S.C. 78s(b)(2). 7 17 CFR 200.30–3(a)(31). E:\FR\FM\07SEN1.SGM 07SEN1

Agencies

[Federal Register Volume 81, Number 173 (Wednesday, September 7, 2016)]
[Notices]
[Pages 61724-61725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21382]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78743; File No. SR-NYSEArca-2016-15]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of 
Withdrawal of a Proposed Rule Change, as Modified by Amendment No. 1, 
To Amend Rule 6.67(c) by Revising the Clearing Member Requirements for 
Entering an Order into the Electronic Order Capture System

August 31, 2016.
    On March 22, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') 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

[[Page 61725]]

19b-4 thereunder,\2\ a proposed rule change to amend Rule 6.67(c) to 
change the timing for recording the name of the Clearing Member \3\ in 
the Electronic Order Capture system (``EOC''). On March 29, 2016,\4\ 
the Exchange filed Amendment No. 1 to the proposed rule change. The 
Commission published the proposed rule change, as modified by Amendment 
No. 1, for comment in the Federal Register on April 11, 2016.\5\ The 
Commission received no comments on the proposed rule change. On May 25, 
2016 the Commission extended the time period within which to approve 
the proposed rule change, disapprove the proposed rule change, or 
institute proceedings to determine whether to approve or disapprove the 
proposed rule change to July 10, 2016.\6\ On July 7, 2016, the 
Commission instituted proceedings under section 19(b)(2)(B) of the Act 
\7\ to determine whether to approve or disapprove the proposed rule 
change, as modified by Amendment No. 1.\8\ 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\ Rule 6.1(b)(3) defines ``Clearing Member'' as an Exchange 
OTP which has been admitted to membership in the Options Clearing 
Corporation pursuant to the provisions of the Rules of the Options 
Clearing Corporation.
    \4\ The Commission notes that the amendment date of March 30, 
2016 in the SR-NYSEArca-2016-15 Notice is incorrect and the proper 
date is March 29, 2016.
    \5\ See Securities Exchange Act Release No. 34-77516 (April 5, 
2016), 81 FR 21430 (``Notice''). Amendment No.1 was included in the 
Notice and provided the clarification that the CMTA Information and 
the name of the clearing OTP Holder would be entered into the EOC 
``as the events occur and/or during trade reporting procedures which 
may occur after the representation and execution of the order.''
    \6\ See Securities Exchange Act Release No. 34-77909, 81 FR 
35079 (June 1, 2016).
    \7\ 15 U.S.C. 78s(b)(2)(B).
    \8\ See Securities Exchange Act Release No. 34-78239, 81 FR 
45349 (July 13, 2016).
---------------------------------------------------------------------------

    On August 29, 2016, the Exchange withdrew the proposed rule change 
(SR-NYSEArca-2016-15).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-21382 Filed 9-6-16; 8:45 am]
 BILLING CODE 8011-01-P
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