Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Convert the Listing of the Shares of the SPDR DoubleLine Short Term Total Return Tactical ETF and the SPDR DoubleLine Emerging Markets Fixed Income ETF, Both of Which Are a Series of the SSGA Active Trust, Pursuant to BZX Rule 14.11(i), Managed Fund Shares, 8642-8644 [2017-01835]
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jstallworth on DSK7TPTVN1PROD with NOTICES
8642
Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Notices
Section 12(d)(3) of the Investment
Company Act of 1940 (15 U.S.C. 80a)
generally prohibits registered
investment companies (‘‘funds’’), and
companies controlled by funds, from
purchasing securities issued by a
registered investment adviser, broker,
dealer, or underwriter (‘‘securitiesrelated businesses’’). Rule 12d3–1
(‘‘Exemption of acquisitions of
securities issued by persons engaged in
securities related businesses’’ (17 CFR
270.12d3–1)) permits a fund to invest
up to five percent of its assets in
securities of an issuer deriving more
than fifteen percent of its gross revenues
from securities-related businesses, but a
fund may not rely on rule 12d3–1 to
acquire securities of its own investment
adviser or any affiliated person of its
own investment adviser.
A fund may, however, rely on an
exemption in rule 12d3–1 to acquire
securities issued by its subadvisers in
circumstances in which the subadviser
would have little ability to take
advantage of the fund, because it is not
in a position to direct the fund’s
securities purchases. The exemption in
rule 12d3–1 is available if (i) the
subadviser is not, and is not an affiliated
person of, an investment adviser that
provides advice with respect to the
portion of the fund that is acquiring the
securities, and (ii) the advisory contracts
of the subadviser, and any subadviser
that is advising the purchasing portion
of the fund, prohibit them from
consulting with each other concerning
securities transactions of the fund, and
limit their responsibility in providing
advice to providing advice with respect
to discrete portions of the fund’s
portfolio.
Based on an analysis of third-party
information, the staff estimates that
approximately 319 fund portfolios enter
into subadvisory agreements each year.1
Based on discussions with industry
representatives, the staff estimates that
it will require approximately 3 attorney
hours to draft and execute additional
clauses in new subadvisory contracts in
order for funds and subadvisers to be
able to rely on the exemptions in rule
12d3–1. Because these additional
clauses are identical to the clauses that
a fund would need to insert in their
subadvisory contracts to rely on rules
10f–3, 17a–10, and 17e–1 and because
we believe that funds that use one such
rule generally use all of these rules, we
apportion this 3 hour time burden
equally to all four rules. Therefore, we
estimate that the burden allocated to
1 Based
on information available from
Morningstar and the ICI Fact Book, we estimate that
37 percent of funds are advised by subadvisers.
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rule 12d3–1 for this contract change
would be 0.75 hours.2 Assuming that all
319 funds that enter into new
subadvisory contracts each year make
the modification to their contract
required by the rule, we estimate that
the rule’s contract modification
requirement will result in 239.25
burden hours annually.3
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act. The estimate
is not derived from a comprehensive or
even a representative survey or study of
the costs of Commission rules.
Complying with this collection of
information requirement is necessary to
obtain the benefit of relying on rule
12d3–1. Responses will not be kept
confidential. An agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid control number.
The public may view the background
documentation for this information
collection at the following Web site,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Pamela
Dyson, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o Remi Pavlik-Simon,
100 F Street NE., Washington, DC 20549
or send an email to: PRA_Mailbox@
sec.gov. Comments must be submitted to
OMB within 30 days of this notice.
Dated: January 17, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–01826 Filed 1–26–17; 8:45 am]
BILLING CODE 8011–01–P
2 This estimate is based on the following
calculation (3 hours ÷ 4 rules = .75 hours).
3 This estimate is based on the following
calculation: (0.75 hours × 319 portfolios = 239.25
burden hours).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79865; File No. SR–
BatsBZX–2017–03]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Convert the
Listing of the Shares of the SPDR
DoubleLine Short Term Total Return
Tactical ETF and the SPDR DoubleLine
Emerging Markets Fixed Income ETF,
Both of Which Are a Series of the
SSGA Active Trust, Pursuant to BZX
Rule 14.11(i), Managed Fund Shares
January 23, 2017.
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 January
13, 2017, Bats BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) 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 Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. 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 filed a proposal to
convert the shares of the SPDR
DoubleLine Short Term Total Return
Tactical ETF and the SPDR DoubleLine
Emerging Markets Fixed Income ETF
(collectively, the ‘‘Funds’’), both of
which are a series of the SSGA Active
Trust (the ‘‘Trust’’), from listing
pursuant to Rule 14.11(i) and approval
orders issued by the Commission to
listing pursuant to Rule 19b–4(e) as
provided in Rule 14.11(i)(4)(C).
The text of the proposed rule change
is available at the Exchange’s Web site
at www.bats.com, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
2 17
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Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / 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
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
jstallworth on DSK7TPTVN1PROD with NOTICES
The Exchange proposes to convert the
listing of the shares of the Funds (the
‘‘Shares’’) from listing pursuant to
approval orders issued by the
Commission to listing pursuant to Rule
19b–4(e) as provided in Rule
14.11(i)(4)(C). The Shares began trading
on the Exchange on April 14, 2016 after
the Commission issued orders
approving the listing and trading of the
Shares on the Exchange.5 At that time,
the Exchange was required to file
separate proposals under Section 19(b)
of the Act before the listing of any funds
listed pursuant to Rule 14.11(i)
(‘‘Managed Fund Shares’’) and, as
provided in the Filings, the Exchange
will commence delisting procedures
under Rule 14.12 for a Fund where the
Fund is not in compliance with the
applicable listing requirements.6 On
July 22, 2016, the Commission approved
generic listing standards for Managed
Fund Shares that would allow a series
of Managed Fund Shares to list on the
Exchange pursuant to Rule 19b–4(e) so
long as the components of that series of
Managed Fund Shares meet the criteria
in Rule 14.11(i)(4)(C) on an initial and
5 See Securities Exchange Act Release Nos. 77567
(April 8, 2016), 81 FR 22143 (April 14, 2016) (SR–
BATS–2015–94) (order approving the listing and
trading on the Exchange of the SPDR DoubleLine
Emerging Markets Fixed Income ETF) and 77499
(April 1, 2016), 81 FR 20428 (April 7, 2016) (SR–
BATS–2016–04) (order approving the listing and
trading on the Exchange of the SPDR DoubleLine
Short Duration Total Return Tactical ETF)
(collectively, the ‘‘Filings’’).
6 As provided in the Filings, all statements and
representations made in the Filings regarding (a) the
description of the portfolio, (b) limitations on
portfolio holdings or reference assets, or (c) the
applicability of Exchange rules and surveillance
procedures shall constitute continued listing
requirements for listing the Shares on the Exchange.
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13:58 Jan 26, 2017
Jkt 241001
continual basis.7 The Exchange now
proposes to list the Shares pursuant to
Rule 19b–4(e) of the Act as provided in
Rule 14.11(i)(4)(C) and, as such, the
components of the Funds will be
required to comply with the
requirements of that rule on an initial
and continual basis. The Exchange has
confirmed that both of the Funds’
respective portfolios currently comply
with the requirements of Rule
14.11(i)(4)(C).8 The Exchange notes that
if the Funds were not already listed,
they could be listed pursuant to Rule
19b–4(e) without the submission of a
rule filing.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act 9 in general and Section
6(b)(5) of the Act 10 in particular in that
it is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to, and
perfect the mechanism of a free and
open market and, in general, to protect
investors and the public interest.
Specifically, the Exchange believes that
the proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to remove
impediments to, and perfect the
mechanism of a free and open market
and, in general, to protect investors and
the public interest because the only
change in the proposal is to have the
Funds listed and traded on the
Exchange pursuant to the generic listing
standards under Rule 14.11(i)(4)(C). As
noted above, if the Funds were not
already listed, they would be able to be
listed pursuant to Rule 19b–4(e) without
the submission of a rule filing because
the Commission has approved rules on
the Exchange related to generic listing
standards for Managed Fund Shares on
the basis that the generic listing criteria
is consistent with the Act and, in
particular, ‘‘is consistent with Section
6(b)(5) of the Act,11 which requires,
among other things, that the Exchange’s
rules be designed to prevent fraudulent
and manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
7 See Securities Exchange Act Release Nos. 78396
(July 22, 2016), 81 FR 49698 (July 28, 2016) (SR–
BATS–2015–100).
8 As provided in Rule 14.11(i)(4)(C), each Fund
must also comply with such requirements on a
continual basis and any failure to meet such
requirements will result in the Exchange initiating
delisting proceedings for the Fund pursuant to Rule
14.12.
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(5).
11 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00045
Fmt 4703
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8643
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.’’ 12 As
such, the Exchange believes that the
proposal is designed to prevent
fraudulent and manipulative acts and
practices, 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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 purpose of the Act. The Exchange
believes that the proposal to allow the
Funds to be listed on the Exchange
pursuant to the generic listing standards
under Rule 14.11(i)(4)(C) will have no
impact on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
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 and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 14 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii)15
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
12 See
note 7, supra.
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the 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 as designated by the Commission.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
13 17
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Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Notices
the Commission to waive the 30-day
operative delay to allow the Funds to be
subject to a single compliance regime
under Rule 14.11(i)(4)(C) instead of the
series of representations made in each
Fund’s respective 19b–4 as soon as
practicable, which will streamline and
simplify compliance and the costs
associated therewith. The Commission
finds that waiving the 30-day operative
delay in this instance is consistent with
the protection of investors and the
public interest. The Commission notes
that, as represented by the Exchange, if
the Funds were not currently listed
pursuant to the previous Commission
approval orders, they would be eligible
for immediate listing pursuant to
Exchange Rule 14.11(i)(4)(C). Therefore,
the Commission designates the proposal
operative upon filing.16
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
to determine whether the proposed rule
change 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:
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–
BatsBZX–2017–03 on the subject line.
jstallworth on DSK7TPTVN1PROD with NOTICES
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–BatsBZX–2017–03. 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
16 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
VerDate Sep<11>2014
13:58 Jan 26, 2017
Jkt 241001
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–
BatsBZX–2017–03 and should be
submitted on or before February 17,
2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–01835 Filed 1–26–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736
Extension:
Rule 201 and Rule 200(g) of Regulation
SHO SEC File No. 270–606, OMB
Control No. 3235–0670
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
17 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00046
Fmt 4703
Sfmt 4703
Rule 201 (17 CFR 242.201) and Rule
200(g) (17 CFR 242.200(g)) under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 201 is a short sale-related circuit
breaker rule that, if triggered, imposes a
restriction on the prices at which
securities may be sold short. Rule 200(g)
provides that a broker-dealer may mark
certain qualifying sell orders ‘‘short
exempt.’’ The information collected
under Rule 201’s written policies and
procedures requirement applicable to
trading centers, the written policies and
procedures requirement of the brokerdealer provision of Rule 201(c), the
written policies and procedures
requirement of the riskless principal
provision of Rule 201(d)(6), and the
‘‘short exempt’’ marking requirement of
Rule 200(g) enable the Commission and
self-regulatory organizations (‘‘SROs’’)
to examine and monitor for compliance
with the requirements of Rule 201 and
Rule 200(g).
In addition, the information collected
under Rule 201’s written policies and
procedures requirement applicable to
trading centers helps ensure that trading
centers do not execute or display any
impermissibly priced short sale orders,
unless an order is marked ‘‘short
exempt,’’ in accordance with the rule’s
requirements. Similarly, the information
collected under the written policies and
procedures requirement of the brokerdealer provision of Rule 201(c) and the
riskless principal provision of Rule
201(d)(6) helps to ensure that brokerdealers comply with the requirements of
these provisions. The information
collected pursuant to the ‘‘short
exempt’’ marking requirement of Rule
200(g) also provides an indication to a
trading center when it must execute or
display a short sale order without regard
to whether the short sale order is at a
price that is less than or equal to the
current national best bid.
It is estimated that SRO and non-SRO
respondents registered with the
Commission and subject to the
collection of information requirements
of Rule 201 and Rule 200(g) incur an
aggregate annual burden of 2,908,309
hours to comply with the rules and an
aggregate annual external cost of
$120,000.
Any records generated in connection
with Rule 201’s requirements that
trading centers and broker-dealers (with
respect to the broker-dealer and riskless
principal provisions) establish written
policies and procedures must be
preserved in accordance with, and for
the periods specified in, Exchange Act
Rules 17a–1 for SRO trading centers and
17a–4(e)(7) for non-SRO trading centers
and registered broker-dealers. The
E:\FR\FM\27JAN1.SGM
27JAN1
]]>Agencies
[Federal Register Volume 82, Number 17 (Friday, January 27, 2017)]
[Notices]
[Pages 8642-8644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01835]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79865; File No. SR-BatsBZX-2017-03]
Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Convert
the Listing of the Shares of the SPDR DoubleLine Short Term Total
Return Tactical ETF and the SPDR DoubleLine Emerging Markets Fixed
Income ETF, Both of Which Are a Series of the SSGA Active Trust,
Pursuant to BZX Rule 14.11(i), Managed Fund Shares
January 23, 2017.
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 January 13, 2017, Bats BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') 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 Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. 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).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to convert the shares of the SPDR
DoubleLine Short Term Total Return Tactical ETF and the SPDR DoubleLine
Emerging Markets Fixed Income ETF (collectively, the ``Funds''), both
of which are a series of the SSGA Active Trust (the ``Trust''), from
listing pursuant to Rule 14.11(i) and approval orders issued by the
Commission to listing pursuant to Rule 19b-4(e) as provided in Rule
14.11(i)(4)(C).
The text of the proposed rule change is available at the Exchange's
Web site at www.bats.com, at the principal office of the Exchange, and
at the Commission's Public Reference Room.
[[Page 8643]]
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 parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to convert the listing of the shares of the
Funds (the ``Shares'') from listing pursuant to approval orders issued
by the Commission to listing pursuant to Rule 19b-4(e) as provided in
Rule 14.11(i)(4)(C). The Shares began trading on the Exchange on April
14, 2016 after the Commission issued orders approving the listing and
trading of the Shares on the Exchange.\5\ At that time, the Exchange
was required to file separate proposals under Section 19(b) of the Act
before the listing of any funds listed pursuant to Rule 14.11(i)
(``Managed Fund Shares'') and, as provided in the Filings, the Exchange
will commence delisting procedures under Rule 14.12 for a Fund where
the Fund is not in compliance with the applicable listing
requirements.\6\ On July 22, 2016, the Commission approved generic
listing standards for Managed Fund Shares that would allow a series of
Managed Fund Shares to list on the Exchange pursuant to Rule 19b-4(e)
so long as the components of that series of Managed Fund Shares meet
the criteria in Rule 14.11(i)(4)(C) on an initial and continual
basis.\7\ The Exchange now proposes to list the Shares pursuant to Rule
19b-4(e) of the Act as provided in Rule 14.11(i)(4)(C) and, as such,
the components of the Funds will be required to comply with the
requirements of that rule on an initial and continual basis. The
Exchange has confirmed that both of the Funds' respective portfolios
currently comply with the requirements of Rule 14.11(i)(4)(C).\8\ The
Exchange notes that if the Funds were not already listed, they could be
listed pursuant to Rule 19b-4(e) without the submission of a rule
filing.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 77567 (April 8,
2016), 81 FR 22143 (April 14, 2016) (SR-BATS-2015-94) (order
approving the listing and trading on the Exchange of the SPDR
DoubleLine Emerging Markets Fixed Income ETF) and 77499 (April 1,
2016), 81 FR 20428 (April 7, 2016) (SR-BATS-2016-04) (order
approving the listing and trading on the Exchange of the SPDR
DoubleLine Short Duration Total Return Tactical ETF) (collectively,
the ``Filings'').
\6\ As provided in the Filings, all statements and
representations made in the Filings regarding (a) the description of
the portfolio, (b) limitations on portfolio holdings or reference
assets, or (c) the applicability of Exchange rules and surveillance
procedures shall constitute continued listing requirements for
listing the Shares on the Exchange.
\7\ See Securities Exchange Act Release Nos. 78396 (July 22,
2016), 81 FR 49698 (July 28, 2016) (SR-BATS-2015-100).
\8\ As provided in Rule 14.11(i)(4)(C), each Fund must also
comply with such requirements on a continual basis and any failure
to meet such requirements will result in the Exchange initiating
delisting proceedings for the Fund pursuant to Rule 14.12.
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2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act \9\ in general and Section 6(b)(5) of the Act \10\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to, and perfect the
mechanism of a free and open market and, in general, to protect
investors and the public interest. Specifically, the Exchange believes
that the proposal is designed to prevent fraudulent and manipulative
acts and practices, to promote just and equitable principles of trade,
to remove impediments to, and perfect the mechanism of a free and open
market and, in general, to protect investors and the public interest
because the only change in the proposal is to have the Funds listed and
traded on the Exchange pursuant to the generic listing standards under
Rule 14.11(i)(4)(C). As noted above, if the Funds were not already
listed, they would be able to be listed pursuant to Rule 19b-4(e)
without the submission of a rule filing because the Commission has
approved rules on the Exchange related to generic listing standards for
Managed Fund Shares on the basis that the generic listing criteria is
consistent with the Act and, in particular, ``is consistent with
Section 6(b)(5) of the Act,\11\ which requires, among other things,
that the Exchange's rules be designed to prevent fraudulent and
manipulative acts and practices, 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.'' \12\ As such,
the Exchange believes that the proposal is designed to prevent
fraudulent and manipulative acts and practices, 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.
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(5).
\11\ 15 U.S.C. 78f(b)(5).
\12\ See note 7, supra.
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B. Self-Regulatory Organization's Statement on Burden on Competition
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 purpose of the Act. The Exchange believes that
the proposal to allow the Funds to be listed on the Exchange pursuant
to the generic listing standards under Rule 14.11(i)(4)(C) will have no
impact on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
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 and Rule 19b-
4(f)(6) thereunder.\13\
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\13\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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 as designated by the Commission.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \14\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii)\15\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked
[[Page 8644]]
the Commission to waive the 30-day operative delay to allow the Funds
to be subject to a single compliance regime under Rule 14.11(i)(4)(C)
instead of the series of representations made in each Fund's respective
19b-4 as soon as practicable, which will streamline and simplify
compliance and the costs associated therewith. The Commission finds
that waiving the 30-day operative delay in this instance is consistent
with the protection of investors and the public interest. The
Commission notes that, as represented by the Exchange, if the Funds
were not currently listed pursuant to the previous Commission approval
orders, they would be eligible for immediate listing pursuant to
Exchange Rule 14.11(i)(4)(C). Therefore, the Commission designates the
proposal operative upon filing.\16\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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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 to
determine whether the proposed rule change 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:
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-BatsBZX-2017-03 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-BatsBZX-2017-03. 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-BatsBZX-2017-03 and should
be submitted on or before February 17, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-01835 Filed 1-26-17; 8:45 am]
BILLING CODE 8011-01-P
