Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE American Rule 8.700E To Add Futures and Swaps on the EURO STOXX 50 Volatility Index to the Financial Instruments That an Issue of Managed Trust Securities May Hold, 60647-60649 [2017-27467]
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Federal Register / Vol. 82, No. 244 / Thursday, December 21, 2017 / Notices
that the proposed rule change (SR–
NYSEArca–2017–111), as modified by
Amendment No. 2, be, and it hereby is,
approved on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.53
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017–27463 Filed 12–20–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–146, OMB Control No.
3235–0134]
Dated: December 15, 2017.
Robert W. Errett,
Deputy Secretary.
Submission for OMB Review;
Comment Request
[FR Doc. 2017–27460 Filed 12–20–17; 8:45 am]
Upon Written Request, Copies Available
From: U.S. Securities and Exchange
Commission, Office of FOIA Services,
Washington, DC 20549–2736
Extension:
Rule 15c1–7
daltland on DSKBBV9HB2PROD with NOTICES
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view the background
documentation for this information
collection at the following website:
www.reginfo.gov.
Please direct your written comments
to: Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE, Washington,
DC 20549, or by sending an email to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82339; File No. SR–
NYSEAMER–2017–37]
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the existing collection of
information provided for in Rule
15c1–7 (17 CFR 240.15c1–7) under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) (‘‘Exchange Act’’).
Rule 15c1–7 states that any act of a
broker-dealer designed to effect
securities transactions with or for a
customer account over which the
broker-dealer (directly or through an
agent or employee) has discretion will
be considered a fraudulent,
manipulative, or deceptive practice
under the federal securities laws, unless
a record is made of the transaction
immediately by the broker-dealer. The
record must include (a) the name of the
customer, (b) the name, amount, and
price of the security, and (c) the date
and time when such transaction took
place. The Commission estimates that
394 respondents collect information
related to approximately 400,000
transactions annually under Rule
15c1–7 and that each respondent would
spend approximately 5 minutes on the
collection of information for each
transaction, for approximately 33,338
aggregate hours per year (approximately
84.6 hours per respondent).
An agency may not conduct or
sponsor, and a person is not required to
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend NYSE
American Rule 8.700E To Add Futures
and Swaps on the EURO STOXX 50
Volatility Index to the Financial
Instruments That an Issue of Managed
Trust Securities May Hold
December 15, 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 December
6, 2017, NYSE American LLC
(‘‘Exchange’’ or ‘‘NYSE American’’) 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 amend
NYSE American Rule 8.700E to add
EURO STOXX 50 Volatility Index
(VSTOXX®) futures and swaps on
VSTOXX to the financial instruments
that an issue of Managed Trust
Securities may hold. The proposed rule
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
53 17
CFR 200.30–3(a)(12).
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60647
change is available on the Exchange’s
website 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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NYSE American Rule 8.700E permits
the trading of Managed Trust Securities
either by listing or pursuant to unlisted
trading privileges (‘‘UTP’’).3 The
Exchange proposes to amend NYSE
American Rule 8.700E to add futures
and swaps on the EURO STOXX 50
Volatility Index (‘‘VSTOXX’’) to the
financial instruments in which an issue
of Managed Trust Securities may hold
long and/or short positions. (Futures on
VSTOXX are referred to herein as
‘‘Futures Contracts.’’)
3 The term ‘‘Managed Trust Securities’’ as used in
the NYSE American Rules will, unless the context
otherwise requires, mean a security that is
registered under the Securities Act of 1933, as
amended (15 U.S.C. 77a), and (i) is issued by a trust
(‘‘Trust’’), or any series thereof, that (1) is a
commodity pool as defined in the Commodity
Exchange Act and regulations thereunder, is not
registered or required to be registered as an
investment company under the Investment
Company Act of 1940, as amended, and is managed
by a commodity pool operator registered with the
Commodity Futures Trading Commission, and (2)
holds long and/or short positions in exchangetraded futures contracts and/or certain currency
forward contracts and/or swaps selected by the
Trust’s advisor consistent with the Trust’s
investment objectives, which will only include
exchange-traded futures contracts involving
commodities, commodity indices, currencies,
currency indices, stock indices, fixed income
indices, interest rates and sovereign, private and
mortgage or asset backed debt instruments, and/or
forward contracts on specified currencies, and/or
swaps on stock indices, fixed income indices,
commodity indices, commodities, currencies,
currency indices, or interest rates, each as disclosed
in the Trust’s prospectus as such may be amended
from time to time, and cash and cash equivalents;
and (ii) is issued and redeemed continuously in
specified aggregate amounts at the next applicable
net asset value. See NYSE American Rule 8.700E(c).
E:\FR\FM\21DEN1.SGM
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60648
Federal Register / Vol. 82, No. 244 / Thursday, December 21, 2017 / Notices
The Exchange proposes to amend
NYSE American Rule 8.700E(c)(1) to
add Futures Contracts and swaps on
VSTOXX to the financial instruments in
which an issue of Managed Trust
Securities may hold long and/or short
positions.4
The VSTOXX is based on EURO
STOXX 50 Index (‘‘Index’’) real-time
option prices that are listed on the
Eurex Exchange (‘‘Eurex’’) and are
designed to reflect the market
expectations of near-term up to longterm volatility by measuring the square
root of the implied variances across all
options of a given time to expiration.5
The Index includes 50 stocks that are
among the largest free-float market
capitalization stocks from 11 Eurozone
countries.6 Futures Contracts are cash
settled and trade between the hours of
7:30 a.m. and 10:30 p.m. Central
European Time (‘‘CET’’) (2:30 a.m. and
5:30 p.m. Eastern Time). The Futures
Contract value is 100 Euros per index
point of the underlying and it is traded
to two decimal places with a minimum
price change of 0.05 points (equivalent
to a value of 5 Euros). The daily
settlement price is determined during
the closing auction of the respective
Futures Contract. The last trading day
and final settlement day is 30 calendar
days prior to the third Friday of the
expiration month of the underlying
options, which is usually the
Wednesday prior to the second to last
Friday of the respective maturity month.
Information regarding the VSTOXX and
the Futures Contracts can be found on
the STOXX Limited (‘‘STOXX’’) website
and the Eurex website, respectively.7
STOXX computes the Index on a realtime basis throughout each trading day,
from 8:50 a.m. until 5:30 CET (3:50 a.m.
until 12:30 p.m. Eastern Time).
VSTOXX levels will be calculated by
daltland on DSKBBV9HB2PROD with NOTICES
4 The
Commission has approved amendments to
NYSE Arca Rule 8.700–E that are substantially
identical to those proposed herein. See Securities
Exchange Act Release No. 82066 (November 13,
2017), 82 FR 54434 (November 17, 2017) (SR–
NYSEArca–2017–85) (order approving proposed
rule change to amend NYSE Arca Rule 8.700–E and
to list and trade shares of the ProShares European
Volatility Futures ETF).
5 The VSTOXX is a non-investable index that
seeks to measure the volatility of the Index over a
future time horizon as implied by the price of
option contracts on the Index available on the
Eurex. The VSTOXX does not measure the actual
volatility of the Index. The Futures Contracts are
denominated in Euros and are traded exclusively on
the Eurex.
6 These countries include Austria, Belgium,
Finland, France, Germany, Ireland, Italy,
Luxembourg, the Netherlands, Portugal and Spain.
7 Eurex is a member of the ISG and, as such, the
Exchange may obtain information regarding trading
in the Futures Contracts. For a list of the current
members and affiliate members of ISG, see
www.isgportal.com.
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20:57 Dec 20, 2017
Jkt 244001
STOXX and widely disseminated by
major market data vendors on a realtime basis throughout each trading day.
The Exchange believes that the
proposed amendment to add Futures
Contracts and swaps on VSTOXX to the
financial instruments in which an issue
of Managed Trust Securities may hold
long and/or short positions will provide
investors with the ability to better
diversify and hedge their portfolios
using an exchange traded security
without having to trade directly in the
underlying Futures Contracts, and will
facilitate the listing and trading on the
Exchange of additional Managed Trust
Securities that will enhance competition
among market participants, to the
benefit of investors and the marketplace.
The Exchange believes that its
surveillance procedures are adequate to
continue to properly monitor the trading
of Managed Trust Securities that hold
Futures Contracts and swaps on
VSTOXX in all trading sessions and to
deter and detect violations of Exchange
rules.
The Exchange notes that the proposed
change is not otherwise intended to
address any other issues and that the
Exchange is not aware of any problems
that ETP Holders or issuers would have
in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,8 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,9 in particular, because 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.
The Exchange believes that the
proposed change would facilitate the
listing and trading of additional types of
Managed Trust Securities, which would
enhance competition among market
participants, to the benefit of investors
and the marketplace. The Exchange
believes that the proposed rule change
is designed to prevent fraudulent and
manipulative acts and practices because
the Managed Trust Securities would
continue to be listed and traded on the
Exchange pursuant to the initial and
continued listing criteria in Rule 8.700E.
The proposed amendments to NYSE
American Rule 8.700E relating to
Managed Trust Securities are
substantially identical to amendments
to NYSE Arca Rule 8.700E previously
approved by the Commission.10
The Exchange has in place
surveillance procedures that are
adequate to properly monitor trading in
Managed Trust Securities in all trading
sessions and to deter and detect
violations of Exchange rules and
applicable federal securities laws. All
Managed Trust Securities traded
pursuant to NYSE American Rule
8.700E are included within the
definition of ‘‘security’’ or ‘‘securities’’
as such terms are used in the Exchange
rules and, as such, are subject to
Exchange rules and procedures that
currently govern the trading of
securities on the Exchange. Trading in
the securities will be halted under the
conditions specified in NYSE American
Rule 8.700E(e)(2)(D).
For these reasons, the Exchange
believes that the proposal is consistent
with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,11 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.
Instead, the Exchange believes that the
proposed change will encourage
competition by enabling additional
types of Managed Trust Securities to be
traded on the Exchange.
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 12 and Rule
19b–4(f)(6) thereunder.13 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
10 See
note 4, supra.
U.S.C. 78f(b)(8).
12 15 U.S.C. 78s(b)(3)(A)(iii).
13 17 CFR 240.19b–4(f)(6).
11 15
8 15
9 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00071
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21DEN1
Federal Register / Vol. 82, No. 244 / Thursday, December 21, 2017 / Notices
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii), the Commission
may 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. As noted
above, the proposed amendments to
NYSE American Rule 8.700E relating to
Managed Trust Securities are
substantially identical to amendments
to NYSE Arca Rule 8.700E previously
approved by the Commission. The
proposal raises no new or novel issues.
Therefore, the Commission designates
the proposed rule change to be operative
upon filing.16
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.
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–NYSEAMER–2017–37 on the subject
line.
All submissions should refer to File
Number SR–NYSEAMER–2017–37. 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 website (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 website 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSEAMER–2017–37 and
should be submitted on or before
January 11, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017–27467 Filed 12–20–17; 8:45 am]
BILLING CODE 8011–01–P
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
U.S.C. 78s(b)(3)(A).
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.
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. See 15 U.S.C. 78c(f).
daltland on DSKBBV9HB2PROD with NOTICES
20:57 Dec 20, 2017
Jkt 244001
[Release No. 34–82337; File No. SR–
CboeBYX–2017–001; SR–CboeBZX–2017–
001; SR–CboeEDGA–2017–001; SR–
CboeEDGX–2017–001]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Cboe BZX
Exchange, Inc.; Cboe EDGA Exchange,
Inc.; Cboe EDGX Exchange, Inc.; Order
Granting Accelerated Approval of a
Proposed Rule Change Relating to Its
Director Nomination and Committee
Appointment Process and Its
Nominating and Governance
Committee
December 15, 2017.
I. Introduction
On November 14, 2017, each of Cboe
BYX Exchange, Inc. (‘‘Cboe BYX’’), Cboe
BZX Exchange, Inc. (‘‘Cboe BZX’’), Cboe
EDGA Exchange, Inc. (‘‘Cboe EDGA’’),
Cboe EDGX Exchange, Inc. (‘‘Cboe
EDGX’’) (each an ‘‘Exchange’’ and
collectively, ‘‘Exchanges’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
eliminate its Nominating and
Governance Committee (‘‘N&G
Committee’’) and amend the process by
which (i) directors are elected, (ii)
committee appointments are made, and
(iii) vacancies are filled.3 The proposed
rule changes were published for
comment in the Federal Register on
November 27, 2017.4 The Commission
received no comments on the proposals.
This order approves the proposed rule
changes on an accelerated basis.
II. Description of the Proposal
First, the Exchanges propose to
eliminate their N&G Committees and
provide that the sole stockholder of the
Exchanges (Cboe Global Markets, Inc.)
shall nominate and elect directors at the
annual meetings of the sole stockholder,
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In addition, the Exchanges propose to make
several formatting changes throughout the Bylaws
as well as to change their names in the title and
signature lines in their Certificates of Incorporation
(‘‘Certificates’’) to reflect recent changes to their
legal names.
4 See Securities Exchange Act Release Nos. 82122
(November 20, 2017), 82 FR 53076 (November 27,
2017) (SR–CboeBYX–2017–001) (‘‘CboeBYX
Notice’’); 82123 (November 20, 2017), 82 FR 56065
(November 27, 2017) (SR–CboeBZX–2017–001)
(‘‘CboeBZX Notice’’); 82125 (November 20, 2017),
82 FR 56079 (November 27, 2017) (SR–CboeEDGA–
2017–001) (‘‘CboeEDGA Notice’’); 82126 (November
20, 2017), 82 FR 56072 (SR–CboeEDGX–2017–001)
(‘‘CboeEDGX Notice’’) (collectively, the ‘‘Notices’’).
2 17
15 17
VerDate Sep<11>2014
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COMMISSION
1 15
14 15
17 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00072
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E:\FR\FM\21DEN1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 244 (Thursday, December 21, 2017)]
[Notices]
[Pages 60647-60649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27467]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82339; File No. SR-NYSEAMER-2017-37]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
NYSE American Rule 8.700E To Add Futures and Swaps on the EURO STOXX 50
Volatility Index to the Financial Instruments That an Issue of Managed
Trust Securities May Hold
December 15, 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 December 6, 2017, NYSE American LLC (``Exchange'' or ``NYSE
American'') 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 amend NYSE American Rule 8.700E to add
EURO STOXX 50 Volatility Index (VSTOXX[supreg]) futures and swaps on
VSTOXX to the financial instruments that an issue of Managed Trust
Securities may hold. The proposed rule change is available on the
Exchange's website 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
NYSE American Rule 8.700E permits the trading of Managed Trust
Securities either by listing or pursuant to unlisted trading privileges
(``UTP'').\3\ The Exchange proposes to amend NYSE American Rule 8.700E
to add futures and swaps on the EURO STOXX 50 Volatility Index
(``VSTOXX'') to the financial instruments in which an issue of Managed
Trust Securities may hold long and/or short positions. (Futures on
VSTOXX are referred to herein as ``Futures Contracts.'')
---------------------------------------------------------------------------
\3\ The term ``Managed Trust Securities'' as used in the NYSE
American Rules will, unless the context otherwise requires, mean a
security that is registered under the Securities Act of 1933, as
amended (15 U.S.C. 77a), and (i) is issued by a trust (``Trust''),
or any series thereof, that (1) is a commodity pool as defined in
the Commodity Exchange Act and regulations thereunder, is not
registered or required to be registered as an investment company
under the Investment Company Act of 1940, as amended, and is managed
by a commodity pool operator registered with the Commodity Futures
Trading Commission, and (2) holds long and/or short positions in
exchange-traded futures contracts and/or certain currency forward
contracts and/or swaps selected by the Trust's advisor consistent
with the Trust's investment objectives, which will only include
exchange-traded futures contracts involving commodities, commodity
indices, currencies, currency indices, stock indices, fixed income
indices, interest rates and sovereign, private and mortgage or asset
backed debt instruments, and/or forward contracts on specified
currencies, and/or swaps on stock indices, fixed income indices,
commodity indices, commodities, currencies, currency indices, or
interest rates, each as disclosed in the Trust's prospectus as such
may be amended from time to time, and cash and cash equivalents; and
(ii) is issued and redeemed continuously in specified aggregate
amounts at the next applicable net asset value. See NYSE American
Rule 8.700E(c).
---------------------------------------------------------------------------
[[Page 60648]]
The Exchange proposes to amend NYSE American Rule 8.700E(c)(1) to
add Futures Contracts and swaps on VSTOXX to the financial instruments
in which an issue of Managed Trust Securities may hold long and/or
short positions.\4\
---------------------------------------------------------------------------
\4\ The Commission has approved amendments to NYSE Arca Rule
8.700-E that are substantially identical to those proposed herein.
See Securities Exchange Act Release No. 82066 (November 13, 2017),
82 FR 54434 (November 17, 2017) (SR-NYSEArca-2017-85) (order
approving proposed rule change to amend NYSE Arca Rule 8.700-E and
to list and trade shares of the ProShares European Volatility
Futures ETF).
---------------------------------------------------------------------------
The VSTOXX is based on EURO STOXX 50 Index (``Index'') real-time
option prices that are listed on the Eurex Exchange (``Eurex'') and are
designed to reflect the market expectations of near-term up to long-
term volatility by measuring the square root of the implied variances
across all options of a given time to expiration.\5\ The Index includes
50 stocks that are among the largest free-float market capitalization
stocks from 11 Eurozone countries.\6\ Futures Contracts are cash
settled and trade between the hours of 7:30 a.m. and 10:30 p.m. Central
European Time (``CET'') (2:30 a.m. and 5:30 p.m. Eastern Time). The
Futures Contract value is 100 Euros per index point of the underlying
and it is traded to two decimal places with a minimum price change of
0.05 points (equivalent to a value of 5 Euros). The daily settlement
price is determined during the closing auction of the respective
Futures Contract. The last trading day and final settlement day is 30
calendar days prior to the third Friday of the expiration month of the
underlying options, which is usually the Wednesday prior to the second
to last Friday of the respective maturity month. Information regarding
the VSTOXX and the Futures Contracts can be found on the STOXX Limited
(``STOXX'') website and the Eurex website, respectively.\7\
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\5\ The VSTOXX is a non-investable index that seeks to measure
the volatility of the Index over a future time horizon as implied by
the price of option contracts on the Index available on the Eurex.
The VSTOXX does not measure the actual volatility of the Index. The
Futures Contracts are denominated in Euros and are traded
exclusively on the Eurex.
\6\ These countries include Austria, Belgium, Finland, France,
Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and
Spain.
\7\ Eurex is a member of the ISG and, as such, the Exchange may
obtain information regarding trading in the Futures Contracts. For a
list of the current members and affiliate members of ISG, see
www.isgportal.com.
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STOXX computes the Index on a real-time basis throughout each
trading day, from 8:50 a.m. until 5:30 CET (3:50 a.m. until 12:30 p.m.
Eastern Time). VSTOXX levels will be calculated by STOXX and widely
disseminated by major market data vendors on a real-time basis
throughout each trading day.
The Exchange believes that the proposed amendment to add Futures
Contracts and swaps on VSTOXX to the financial instruments in which an
issue of Managed Trust Securities may hold long and/or short positions
will provide investors with the ability to better diversify and hedge
their portfolios using an exchange traded security without having to
trade directly in the underlying Futures Contracts, and will facilitate
the listing and trading on the Exchange of additional Managed Trust
Securities that will enhance competition among market participants, to
the benefit of investors and the marketplace.
The Exchange believes that its surveillance procedures are adequate
to continue to properly monitor the trading of Managed Trust Securities
that hold Futures Contracts and swaps on VSTOXX in all trading sessions
and to deter and detect violations of Exchange rules.
The Exchange notes that the proposed change is not otherwise
intended to address any other issues and that the Exchange is not aware
of any problems that ETP Holders or issuers would have in complying
with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\8\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\9\ in particular, because 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.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed change would facilitate the
listing and trading of additional types of Managed Trust Securities,
which would enhance competition among market participants, to the
benefit of investors and the marketplace. The Exchange believes that
the proposed rule change is designed to prevent fraudulent and
manipulative acts and practices because the Managed Trust Securities
would continue to be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in Rule 8.700E. The proposed
amendments to NYSE American Rule 8.700E relating to Managed Trust
Securities are substantially identical to amendments to NYSE Arca Rule
8.700E previously approved by the Commission.\10\
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\10\ See note 4, supra.
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The Exchange has in place surveillance procedures that are adequate
to properly monitor trading in Managed Trust Securities in all trading
sessions and to deter and detect violations of Exchange rules and
applicable federal securities laws. All Managed Trust Securities traded
pursuant to NYSE American Rule 8.700E are included within the
definition of ``security'' or ``securities'' as such terms are used in
the Exchange rules and, as such, are subject to Exchange rules and
procedures that currently govern the trading of securities on the
Exchange. Trading in the securities will be halted under the conditions
specified in NYSE American Rule 8.700E(e)(2)(D).
For these reasons, the Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\11\ 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. Instead, the Exchange believes that the
proposed change will encourage competition by enabling additional types
of Managed Trust Securities to be traded on the Exchange.
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\11\ 15 U.S.C. 78f(b)(8).
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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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\
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
[[Page 60649]]
19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 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 under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii), the Commission may
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. As noted above, the
proposed amendments to NYSE American Rule 8.700E relating to Managed
Trust Securities are substantially identical to amendments to NYSE Arca
Rule 8.700E previously approved by the Commission. The proposal raises
no new or novel issues. Therefore, the Commission designates the
proposed rule change to be operative upon filing.\16\
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\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. 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.
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 [email protected]. Please include
File Number SR-NYSEAMER-2017-37 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-NYSEAMER-2017-37. 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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEAMER-2017-37 and should be submitted
on or before January 11, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Robert W. Errett,
Deputy Secretary.
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\17\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2017-27467 Filed 12-20-17; 8:45 am]
BILLING CODE 8011-01-P
