Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Implementation Date for Certain Changes to the NYSE Arca Rule 5 and Rule 8 Series, 46552-46554 [2017-21410]
Download as PDF
46552
Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices
subparagraph (f)(6) of Rule 19b–4
thereunder.19
A proposed rule change filed under
Rule 19b–4(f)(6) 20 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),21 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange requests that the
Commission waive the 30-day operative
delay. The Exchange notes that a waiver
is consistent with the protection of
investors and the public interest
because it will allow the Exchange to
correct its Block Order Mechanism rules
to reflect the current functionality of the
system without undue delay. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Accordingly, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change operative upon
filing.22
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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:
ethrower 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–
MRX–2017–19 on the subject line.
19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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. The Exchange has satisfied this
requirement.
20 17 CFR 240.19b–4(f)(6).
21 17 CFR 240.19b–4(f)(6)(iii).
22 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. See 15 U.S.C. 78c(f).
VerDate Sep<11>2014
19:52 Oct 04, 2017
Jkt 244001
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–MRX–2017–19. 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–MRX–
2017–19 and should be submitted on or
before October 26, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–21402 Filed 10–4–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81775; File No. SR–
NYSEArca–2017–115]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the
Implementation Date for Certain
Changes to the NYSE Arca Rule 5 and
Rule 8 Series
September 29, 2017.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
September 28, 2017, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 self-regulatory
organization. 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 extend the
date on which certain changes to the
NYSE Arca Rule 5 and Rule 8 series are
implemented. The proposed rule change
is available on the Exchange’s Web site
at www.nyse.com, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
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
self-regulatory organization 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 those 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
23 17
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
ethrower on DSK3G9T082PROD with NOTICES
1. Purpose
On January 6, 2017, the Exchange
filed a proposed rule change, as
subsequently amended by Amendments
No. 1 and 2 thereto (as amended, the
‘‘Proposed Rule Change’’), to adopt
certain changes to the NYSE Arca Rules
5 and 8 series to add additional
continued listing standards for
exchange-traded funds (‘‘ETFs’’) as well
as clarify the procedures that the
Exchange will undertake when an ETF
is noncompliant with applicable rules.
Given the scope of the amendments
specified in the Proposed Rule Change,
the Exchange proposed that such
amendments not be implemented until
October 1, 2017. On March 9, 2017, the
Commission granted accelerated
approval of the Proposed Rule Change,
including the October 1, 2017
implementation date.4 The Exchange
now proposes to extend the
implementation date of the amendments
specified in the Proposed Rule Change
to January 1, 2018.
Since the Proposed Rule Change was
approved, the Exchange has engaged in
extensive conversations with issuers of
listed ETFs, industry advocacy groups
and index providers to discuss the new
rule requirements and offer guidance on
rule interpretation and application. As a
result of these conversations, ETF
issuers have expressed concern about
their ability to have in place systems
and procedures to ensure compliance by
the current October 1, 2017
implementation date. In particular,
listed ETF issuers, and industry
advocacy groups on their behalf, have
explained that issuers require additional
time to engage with listing exchanges to
better understand how elements of the
Proposed Rule Change will be
interpreted and applied as well as to
design and test new compliance
systems. The Exchange has been
engaged with its listed issuers and will
continue to engage with them on topics
of rule interpretation and application. In
addition, issuers require time to engage
in discussions with third-party
providers to source and track new data
elements required for rule compliance.5
4 See Securities Exchange Act Release No. 80189
(March 9, 2017), 82 FR 13889 (March 15, 2017) (SR–
NYSEArca–2017–01).
5 See, for example, Letter, dated July 11, 2017,
from Dorothy Donohue, Acting General Counsel,
Investment Company Institute to Brent J. Fields,
Secretary, Securities and Exchange Commission,
available at https://www.sec.gov/comments/srnasdaq-2016-135/nasdaq2016135-1846208155175.pdf.
VerDate Sep<11>2014
19:52 Oct 04, 2017
Jkt 244001
Because indices are, in most cases,
managed and maintained by third-party
index providers, issuers need to ensure
that they have procedures in place to
obtain required index files on an
ongoing basis so they can test such files
for compliance with applicable
continued listing rules. Further, issuers
may need to contract with third party
data providers to obtain necessary
trading information about securities
included in an index. The Exchange
understands that issuers have been
engaged in dialogue with index
providers on these topics. Once all
required information has been obtained,
issuers have informed the Exchange that
they require additional time to test their
systems and procedures to ensure they
are accurate and efficient.
The Exchange believes it is
appropriate to extend the
implementation date of the Proposed
Rule Change to January 1, 2018 to
provide listed ETF issuers with the time
needed to finish developing and testing
their compliance procedures. In support
of its proposal, the Exchange notes that
the Proposed Rule Change imposes
significant new compliance
requirements on issuers that they have
not been subject to previously. To meet
these new compliance requirements,
issuers must develop internal systems as
well as coordinate with third-party
service providers, such as index
providers, to develop procedures by
which they can obtain essential data.
Listed issuers have informed the
Exchange that they are unable to
complete this extensive project by the
pending October 1, 2017
implementation date. The Exchange
believes that it is critical for listed ETF
issuers to have the appropriate
procedures and systems in place to
monitor and evidence ETF compliance
with the new continued listing rules
before such rules are implemented
because failure to comply with
Exchange rules could lead to delisting.
Therefore, the Exchange proposes to
extend the implementation date for the
Proposed Rule Change until January 1,
2018. During the proposed extension
period, the Exchange will communicate
with issuers, as needed, with respect to
any questions about interpretation and
application of the Proposed Rule
Change and in order to better
understand the progress being made by
issuers in completing the development
of their compliance testing and
procedures.
Section 6(b) of the Act,6 in general, and
furthers the objectives of Sections [sic]
6(b)(5) 7 of the Act, in particular, in that
it is designed to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and facilitating transactions
in securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest. The
Exchange believes that the proposed
amendment is consistent with the
protection of investors because failure to
comply with Exchange rules could lead
to delisting and the proposed
amendment will enable listed issuers to
have the systems and procedures
needed to monitor and evidence
compliance with the Proposed Rule
Change prior to such rule being
implemented. Providing listed issuers
with additional time to ensure that they
have adequate compliance systems in
place furthers the protection of investors
and the public interest because it will
enhance investor confidence that listed
issuers are complying with Exchange
rules.
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 not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
The Exchange notes that the proposed
rule change will facilitate listed issuer
ability to monitor and evidence
compliance with approved continued
listing rules by providing issuers with
additional time to finish developing and
testing their internal systems and
procedures prior to the implementation
date.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange received a copy of a
letter from the Investment Company
Institute, on behalf of listed ETF issuers,
to the Securities and Exchange
Commission.8 As described in Item 3
[sic], above, the Investment Company
Institute detailed challenges that listed
ETF issuers are facing in developing
compliance systems to address the
amendments contained in the Proposed
Rule Change and have requested that
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
46553
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 See Footnote 5, supra.
7 15
E:\FR\FM\05OCN1.SGM
05OCN1
46554
Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices
the implementation date for such
amendments be extended.
change should be approved or
disapproved.
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.9
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11
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
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission notes that
waiver of the operative delay will allow
the Exchange to immediately extend the
implementation date of the Proposed
Rule Change, and avoid the potential
confusion and disruption that could
result if the extension did not become
operative until after October 1, 2017.
The Commission believes that waiver of
the 30-day operative delay is consistent
with the protection of investors and the
public interest. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposal operative upon filing.12
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
IV. Solicitation of Comments
ethrower on DSK3G9T082PROD with NOTICES
9 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.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 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. See 15 U.S.C. 78c(f).
VerDate Sep<11>2014
19:52 Oct 04, 2017
Jkt 244001
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–21410 Filed 10–4–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–81768; File No. SR–C2–
2017–025]
• 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–
NYSEArca–2017–115 on the subject
line.
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Rule 6.45 Relating
to Disaster Recovery
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2017–115. 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–
NYSEArca–2017–115 and should be
submitted on or before October 26,
2017.
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
September 29, 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
September 20, 2017, C2 Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘C2’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III, below, which Items have been
prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 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
Rule 6.45 relating to disaster recovery.
The text of the proposed rule change is
also available on the Exchange’s Web
site (https://www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
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
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
E:\FR\FM\05OCN1.SGM
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Agencies
[Federal Register Volume 82, Number 192 (Thursday, October 5, 2017)]
[Notices]
[Pages 46552-46554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-21410]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81775; File No. SR-NYSEArca-2017-115]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Extend the
Implementation Date for Certain Changes to the NYSE Arca Rule 5 and
Rule 8 Series
September 29, 2017.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on September 28, 2017, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') 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 self-regulatory
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).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the date on which certain changes
to the NYSE Arca Rule 5 and Rule 8 series are implemented. The proposed
rule change is available on the Exchange's Web site at www.nyse.com, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.
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 self-regulatory organization
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 those 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.
[[Page 46553]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
On January 6, 2017, the Exchange filed a proposed rule change, as
subsequently amended by Amendments No. 1 and 2 thereto (as amended, the
``Proposed Rule Change''), to adopt certain changes to the NYSE Arca
Rules 5 and 8 series to add additional continued listing standards for
exchange-traded funds (``ETFs'') as well as clarify the procedures that
the Exchange will undertake when an ETF is noncompliant with applicable
rules. Given the scope of the amendments specified in the Proposed Rule
Change, the Exchange proposed that such amendments not be implemented
until October 1, 2017. On March 9, 2017, the Commission granted
accelerated approval of the Proposed Rule Change, including the October
1, 2017 implementation date.\4\ The Exchange now proposes to extend the
implementation date of the amendments specified in the Proposed Rule
Change to January 1, 2018.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 80189 (March 9,
2017), 82 FR 13889 (March 15, 2017) (SR-NYSEArca-2017-01).
---------------------------------------------------------------------------
Since the Proposed Rule Change was approved, the Exchange has
engaged in extensive conversations with issuers of listed ETFs,
industry advocacy groups and index providers to discuss the new rule
requirements and offer guidance on rule interpretation and application.
As a result of these conversations, ETF issuers have expressed concern
about their ability to have in place systems and procedures to ensure
compliance by the current October 1, 2017 implementation date. In
particular, listed ETF issuers, and industry advocacy groups on their
behalf, have explained that issuers require additional time to engage
with listing exchanges to better understand how elements of the
Proposed Rule Change will be interpreted and applied as well as to
design and test new compliance systems. The Exchange has been engaged
with its listed issuers and will continue to engage with them on topics
of rule interpretation and application. In addition, issuers require
time to engage in discussions with third-party providers to source and
track new data elements required for rule compliance.\5\ Because
indices are, in most cases, managed and maintained by third-party index
providers, issuers need to ensure that they have procedures in place to
obtain required index files on an ongoing basis so they can test such
files for compliance with applicable continued listing rules. Further,
issuers may need to contract with third party data providers to obtain
necessary trading information about securities included in an index.
The Exchange understands that issuers have been engaged in dialogue
with index providers on these topics. Once all required information has
been obtained, issuers have informed the Exchange that they require
additional time to test their systems and procedures to ensure they are
accurate and efficient.
---------------------------------------------------------------------------
\5\ See, for example, Letter, dated July 11, 2017, from Dorothy
Donohue, Acting General Counsel, Investment Company Institute to
Brent J. Fields, Secretary, Securities and Exchange Commission,
available at https://www.sec.gov/comments/sr-nasdaq-2016-135/nasdaq2016135-1846208-155175.pdf.
---------------------------------------------------------------------------
The Exchange believes it is appropriate to extend the
implementation date of the Proposed Rule Change to January 1, 2018 to
provide listed ETF issuers with the time needed to finish developing
and testing their compliance procedures. In support of its proposal,
the Exchange notes that the Proposed Rule Change imposes significant
new compliance requirements on issuers that they have not been subject
to previously. To meet these new compliance requirements, issuers must
develop internal systems as well as coordinate with third-party service
providers, such as index providers, to develop procedures by which they
can obtain essential data. Listed issuers have informed the Exchange
that they are unable to complete this extensive project by the pending
October 1, 2017 implementation date. The Exchange believes that it is
critical for listed ETF issuers to have the appropriate procedures and
systems in place to monitor and evidence ETF compliance with the new
continued listing rules before such rules are implemented because
failure to comply with Exchange rules could lead to delisting.
Therefore, the Exchange proposes to extend the implementation date for
the Proposed Rule Change until January 1, 2018. During the proposed
extension period, the Exchange will communicate with issuers, as
needed, with respect to any questions about interpretation and
application of the Proposed Rule Change and in order to better
understand the progress being made by issuers in completing the
development of their compliance testing and procedures.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Sections [sic] 6(b)(5) \7\ of the Act, in particular, in
that it is designed to promote just and equitable principles of trade,
to foster cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitating transactions in securities, to remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest. The Exchange believes that the proposed amendment is
consistent with the protection of investors because failure to comply
with Exchange rules could lead to delisting and the proposed amendment
will enable listed issuers to have the systems and procedures needed to
monitor and evidence compliance with the Proposed Rule Change prior to
such rule being implemented. Providing listed issuers with additional
time to ensure that they have adequate compliance systems in place
furthers the protection of investors and the public interest because it
will enhance investor confidence that listed issuers are complying with
Exchange rules.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 not necessary or appropriate in
furtherance of the purposes of the Act, as amended. The Exchange notes
that the proposed rule change will facilitate listed issuer ability to
monitor and evidence compliance with approved continued listing rules
by providing issuers with additional time to finish developing and
testing their internal systems and procedures prior to the
implementation date.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange received a copy of a letter from the Investment
Company Institute, on behalf of listed ETF issuers, to the Securities
and Exchange Commission.\8\ As described in Item 3 [sic], above, the
Investment Company Institute detailed challenges that listed ETF
issuers are facing in developing compliance systems to address the
amendments contained in the Proposed Rule Change and have requested
that
[[Page 46554]]
the implementation date for such amendments be extended.
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\8\ See Footnote 5, supra.
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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.\9\
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\9\ 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 \10\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ 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 the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The
Commission notes that waiver of the operative delay will allow the
Exchange to immediately extend the implementation date of the Proposed
Rule Change, and avoid the potential confusion and disruption that
could result if the extension did not become operative until after
October 1, 2017. The Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest. Therefore, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ 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. See 15 U.S.C.
78c(f).
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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 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-NYSEArca-2017-115 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2017-115. 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-NYSEArca-2017-115 and should
be submitted on or before October 26, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-21410 Filed 10-4-17; 8:45 am]
BILLING CODE 8011-01-P