ALAIA Market Linked Trust and Beech Hill Securities, Inc.; Notice of Application, 90390-90391 [2016-29932]

Download as PDF 90390 Federal Register / Vol. 81, No. 240 / Wednesday, December 14, 2016 / Notices in general, and furthers the objectives of Section 6(b)(5),9 in particular, in that it is designed to promote just and equitable principles of trade, 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. The Exchange believes that extending the pilot period for the Retail Liquidity Program is consistent with these principles because the Program is reasonably designed to attract retail order flow to the exchange environment, while helping to ensure that retail investors benefit from the better price that liquidity providers are willing to give their orders. Additionally, as previously stated, the competition promoted by the Program may facilitate the price discovery process and potentially generate additional investor interest in trading securities. The extension of the pilot period will allow the Commission and the Exchange to continue to monitor the Program for its potential effects on public price discovery, and on the broader market structure. 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(6)(iii) thereunder. At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) 12 of the Act to determine whether the proposed rule change should be approved or disapproved. B. Self-Regulatory Organization’s Statement on Burden on Competition 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: The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change simply extends an established pilot program for an additional six months, thus allowing the Retail Liquidity Program to enhance competition for retail order flow and contribute to the public price discovery process. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action sradovich on DSK3GMQ082PROD with NOTICES The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 10 and Rule 19b–4(f)(6) thereunder.11 Because the 9 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(3)(A)(iii). 11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time 10 15 VerDate Sep<11>2014 18:45 Dec 13, 2016 Jkt 241001 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– NYSEMKT–2016–112 on the subject line. Paper Comments • 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–NYSEMKT–2016–112. 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 as designated by the Commission. The Exchange has satisfied this requirement. 12 15 U.S.C. 78s(b)(2)(B). PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 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– NYSEMKT–2016–112 and should be submitted on or before January 4, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016–29939 Filed 12–13–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 32384; File No. 812–14543] ALAIA Market Linked Trust and Beech Hill Securities, Inc.; Notice of Application December 8, 2016. Securities and Exchange Commission (‘‘Commission’’). ACTION: Notice of an application for an order under section 12(d)(1)(J) of the Investment Company Act of 1940 (the ‘‘Act’’) for an exemption from sections 12(d)(1)(A), (B), and (C) of the Act and under sections 6(c) and 17(b) of the Act for an exemption from sections 17(a)(1) and (2) of the Act. The requested order would permit certain registered unit investment trusts (‘‘UITs’’) to acquire shares of certain registered open-end investment companies, registered closed-end investment companies and registered UITs (collectively, the ‘‘Underlying Funds’’) that are within and outside the same group of investment companies as the acquiring AGENCY: 13 17 E:\FR\FM\14DEN1.SGM CFR 200.30–3(a)(12). 14DEN1 Federal Register / Vol. 81, No. 240 / Wednesday, December 14, 2016 / Notices Underlying Funds 2 in excess of the limits in sections 12(d)(1)(A) and (C) of the Act and (b) the Underlying Funds APPLICANTS: ALAIA Market Linked that are registered open-end investment Trust (the ‘‘Trust’’), a UIT that is companies, their principal underwriters registered under the Act, and Beech Hill and any broker or dealer registered Securities, Inc. (‘‘BHSI’’), a New York under the Exchange Act to sell shares of corporation registered as a broker-dealer the Underlying Funds to the Series in under the Securities Exchange Act of excess of the limits in section 1934 (the ‘‘Exchange Act’’). 12(d)(1)(B) of the Act.3 Applicants also DATES: Filing Dates: The application was request an order of exemption under filed on September 3, 2015 and sections 6(c) and 17(b) of the Act from amended on January 15, 2016, October the prohibition on certain affiliated 17, 2016 and November 22, 2016. transactions in section 17(a) of the Act HEARING OR NOTIFICATION OF HEARING: to the extent necessary to permit the An order granting the requested relief Underlying Funds to sell their shares to, will be issued unless the Commission and redeem their shares from, the orders a hearing. Interested persons may Series.4 Applicants state that such request a hearing by writing to the transactions will be consistent with the Commission’s Secretary and serving policies of each Series and each applicants with a copy of the request, Underlying Fund and with the general personally or by mail. Hearing requests purposes of the Act and will be based should be received by the Commission on the net asset values of the by 5:30 p.m. on January 3, 2017 and Underlying Funds. should be accompanied by proof of 2. Applicants agree that any order service on the applicants, in the form of granting the requested relief will be an affidavit, or, for lawyers, a certificate subject to the terms and conditions of service. Pursuant to Rule 0–5 under stated in the application. Such terms the Act, hearing requests should state and conditions are designed to, among the nature of the writer’s interest, any other things, help prevent any potential facts bearing upon the desirability of a (i) undue influence over an Underlying hearing on the matter, the reason for the Fund that is not in the same ‘‘group of request, and the issues contested. investment companies’’ as the UIT Persons who wish to be notified of a through control or voting power, or in hearing may request notification by connection with certain services, writing to the Commission’s Secretary. transactions, and underwritings, (ii) excessive layering of fees, and (iii) ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F Street overly complex fund structures, which are the concerns underlying the limits NE., Washington, DC 20549–1090. in sections 12(d)(1)(A), (B), and (C) of Applicants: ALAIA Market Linked the Act. Trust, 10 Corbin Drive, Darien, CT 3. Section 12(d)(1)(J) of the Act 06820, Beech Hill Securities, Inc., 880 provides that the Commission may 3rd Avenue, 16th Floor, New York, NY exempt any person, security, or 10022–4730. transaction, or any class or classes of FOR FURTHER INFORMATION CONTACT: persons, securities, or transactions, from Deepak T. Pai, Senior Counsel, at (202) any provision of section 12(d)(1) if the 551–6876 or Mary Kay Frech, Branch Chief, at (202) 551–6814 (Division of 2 Certain of the Underlying Funds may be Investment Management, Chief registered as an open-end investment company or Counsel’s Office). a UIT, but have received exemptive relief from the Commission to permit their shares to be listed and SUPPLEMENTARY INFORMATION: The traded on a national securities exchange at following is a summary of the negotiated prices and to operate as exchange-traded application. The complete application funds (‘‘ETFs’’). may be obtained via the Commission’s 3 Applicants do not request relief for the Series to Web site by searching for the file invest in reliance on the order in closed-end investment companies that are not listed and traded number, or for an applicant using the on a national securities exchange. Company name box, at https:// 4 A Series generally would purchase and sell www.sec.gov/search/search.htm, or by shares of an Underlying Fund that operates as an calling (202) 551–8090. ETF through secondary market transactions rather sradovich on DSK3GMQ082PROD with NOTICES UITs, in excess of the limits in section 12(d)(1) of the Act. Summary of the Application 1. Applicants request an order to permit (a) a Series 1 to acquire shares of 1 Applicants request that the order apply to each existing and future series of the Trust and to any future registered UIT and series thereof sponsored by BHSI or an entity controlling, controlled by or under common control with BHSI (the ‘‘Series’’). VerDate Sep<11>2014 18:45 Dec 13, 2016 Jkt 241001 than through principal transactions with the Underlying Fund. Applicants nevertheless request relief from section 17(a) to permit a Series to purchase or redeem shares from the ETF. A Series will purchase and sell shares of an Underlying Fund that is a closed-end fund through secondary market transactions at market prices rather than through principal transactions with the closed-end fund. Accordingly, applicants are not requesting section 17(a) relief with respect to transactions in shares of closed-end funds. PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 90391 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. 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. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Robert W. Errett, Deputy Secretary. [FR Doc. 2016–29932 Filed 12–13–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–79506; File No. SR– NYSEArca–2016–158] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Exchange’s Schedule of Fees and Charges Relating to the Listing and Annual Fees Applicable to Certain Structured Products December 8, 2016 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 November 29, 2016, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 selfregulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 E:\FR\FM\14DEN1.SGM 14DEN1

Agencies

[Federal Register Volume 81, Number 240 (Wednesday, December 14, 2016)]
[Notices]
[Pages 90390-90391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29932]


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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 32384; File No. 812-14543]


ALAIA Market Linked Trust and Beech Hill Securities, Inc.; Notice 
of Application

December 8, 2016.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under section 12(d)(1)(J) 
of the Investment Company Act of 1940 (the ``Act'') for an exemption 
from sections 12(d)(1)(A), (B), and (C) of the Act and under sections 
6(c) and 17(b) of the Act for an exemption from sections 17(a)(1) and 
(2) of the Act. The requested order would permit certain registered 
unit investment trusts (``UITs'') to acquire shares of certain 
registered open-end investment companies, registered closed-end 
investment companies and registered UITs (collectively, the 
``Underlying Funds'') that are within and outside the same group of 
investment companies as the acquiring

[[Page 90391]]

UITs, in excess of the limits in section 12(d)(1) of the Act.

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Applicants:  ALAIA Market Linked Trust (the ``Trust''), a UIT that is 
registered under the Act, and Beech Hill Securities, Inc. (``BHSI''), a 
New York corporation registered as a broker-dealer under the Securities 
Exchange Act of 1934 (the ``Exchange Act'').

DATES: Filing Dates: The application was filed on September 3, 2015 and 
amended on January 15, 2016, October 17, 2016 and November 22, 2016.

Hearing or Notification of Hearing:  An order granting the requested 
relief will be issued unless the Commission orders a hearing. 
Interested persons may request a hearing by writing to the Commission's 
Secretary and serving applicants with a copy of the request, personally 
or by mail. Hearing requests should be received by the Commission by 
5:30 p.m. on January 3, 2017 and should be accompanied by proof of 
service on the applicants, in the form of an affidavit, or, for 
lawyers, a certificate of service. Pursuant to Rule 0-5 under the Act, 
hearing requests should state the nature of the writer's interest, any 
facts bearing upon the desirability of a hearing on the matter, the 
reason for the request, and the issues contested. Persons who wish to 
be notified of a hearing may request notification by writing to the 
Commission's Secretary.

ADDRESSES:  Secretary, U.S. Securities and Exchange Commission, 100 F 
Street NE., Washington, DC 20549-1090. Applicants: ALAIA Market Linked 
Trust, 10 Corbin Drive, Darien, CT 06820, Beech Hill Securities, Inc., 
880 3rd Avenue, 16th Floor, New York, NY 10022-4730.

FOR FURTHER INFORMATION CONTACT:  Deepak T. Pai, Senior Counsel, at 
(202) 551-6876 or Mary Kay Frech, Branch Chief, at (202) 551-6814 
(Division of Investment Management, Chief Counsel's Office).

SUPPLEMENTARY INFORMATION: The following is a summary of the 
application. The complete application may be obtained via the 
Commission's Web site by searching for the file number, or for an 
applicant using the Company name box, at https://www.sec.gov/search/search.htm, or by calling (202) 551-8090.

Summary of the Application

    1. Applicants request an order to permit (a) a Series \1\ to 
acquire shares of Underlying Funds \2\ in excess of the limits in 
sections 12(d)(1)(A) and (C) of the Act and (b) the Underlying Funds 
that are registered open-end investment companies, their principal 
underwriters and any broker or dealer registered under the Exchange Act 
to sell shares of the Underlying Funds to the Series in excess of the 
limits in section 12(d)(1)(B) of the Act.\3\ Applicants also request an 
order of exemption under sections 6(c) and 17(b) of the Act from the 
prohibition on certain affiliated transactions in section 17(a) of the 
Act to the extent necessary to permit the Underlying Funds to sell 
their shares to, and redeem their shares from, the Series.\4\ 
Applicants state that such transactions will be consistent with the 
policies of each Series and each Underlying Fund and with the general 
purposes of the Act and will be based on the net asset values of the 
Underlying Funds.
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    \1\ Applicants request that the order apply to each existing and 
future series of the Trust and to any future registered UIT and 
series thereof sponsored by BHSI or an entity controlling, 
controlled by or under common control with BHSI (the ``Series'').
    \2\ Certain of the Underlying Funds may be registered as an 
open-end investment company or a UIT, but have received exemptive 
relief from the Commission to permit their shares to be listed and 
traded on a national securities exchange at negotiated prices and to 
operate as exchange-traded funds (``ETFs'').
    \3\ Applicants do not request relief for the Series to invest in 
reliance on the order in closed-end investment companies that are 
not listed and traded on a national securities exchange.
    \4\ A Series generally would purchase and sell shares of an 
Underlying Fund that operates as an ETF through secondary market 
transactions rather than through principal transactions with the 
Underlying Fund. Applicants nevertheless request relief from section 
17(a) to permit a Series to purchase or redeem shares from the ETF. 
A Series will purchase and sell shares of an Underlying Fund that is 
a closed-end fund through secondary market transactions at market 
prices rather than through principal transactions with the closed-
end fund. Accordingly, applicants are not requesting section 17(a) 
relief with respect to transactions in shares of closed-end funds.
---------------------------------------------------------------------------

    2. Applicants agree that any order granting the requested relief 
will be subject to the terms and conditions stated in the application. 
Such terms and conditions are designed to, among other things, help 
prevent any potential (i) undue influence over an Underlying Fund that 
is not in the same ``group of investment companies'' as the UIT 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), (B), and (C) of the Act.
    3. 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. 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.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
 Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-29932 Filed 12-13-16; 8:45 am]
 BILLING CODE 8011-01-P
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