Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Temporarily Amend Rule 11.23(d)(2)(E) Relating to the Halt Auction Collar for a Halt Auction for REX VolMAXX Short Weekly Futures Strategy ETF, 7524-7526 [2018-03453]
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7524
Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices
should be submitted on or before March
14, 2018.
SECURITIES AND EXCHANGE
COMMISSION
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Eduardo A. Aleman,
Assistant Secretary.
[Release No. 34–82715; File No. SR–
CboeBZX–2018–011]
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Temporarily
Amend Rule 11.23(d)(2)(E) Relating to
the Halt Auction Collar for a Halt
Auction for REX VolMAXX Short
Weekly Futures Strategy ETF
Sunshine Act Meetings
February 14, 2018.
[FR Doc. 2018–03448 Filed 2–20–18; 8:45 am]
BILLING CODE 8011–01–P
2:00 p.m. on Thursday,
February 22, 2018.
PLACE: Closed Commission Hearing
Room 10800.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
Commissioner Piwowar, as duty
officer, voted to consider the items
listed for the closed meeting in closed
session.
The subject matters of the closed
meeting will be:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Adjudicatory matters; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed; please contact
Brent J. Fields from the Office of the
Secretary at (202) 551–5400.
daltland on DSKBBV9HB2PROD with NOTICES
TIME AND DATE:
Dated: February 15, 2018.
Brent J. Fields,
Secretary.
[FR Doc. 2018–03582 Filed 2–16–18; 11:15 am]
BILLING CODE 8011–01–P
7 17
19:57 Feb 20, 2018
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
temporarily amend Rule 11.23(d)(2)(E)
relating to the Halt Auction Collar for a
Halt Auction for REX VolMAXX Short
Weekly Futures Strategy ETF (VMIN),
which would be operative for February
6, 2018 only.
The text of the proposed rule change
is available at the Exchange’s website at
www.markets.cboe.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
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
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
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on February
7, 2018, Cboe 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.
Jkt 244001
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
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 temporarily
amend Rule 11.23(d)(2)(E) relating to
the Halt Auction Collar for a Halt
Auction for REX VolMAXX Short
Weekly Futures Strategy ETF (VMIN),
which would be operative for February
6, 2018 only.
On February 5, 2018, both the U.S.
and global markets experienced
increased selling pressure and the Dow
Jones Industrial Average (‘‘DJIA’’) closed
4.6% down over the prior closing day.
In addition, on February 5, 2018,
volatility was significantly higher across
all measures of U.S. markets and
continued to fluctuate significantly
through the morning of February 6,
2018.
VMIN, which is listed on the
Exchange, seeks to provide investors
with inverse exposure to the implied
volatility of the broad-based, large-cap
U.S. equity market by obtaining
investment exposure to an actively
managed portfolio of exchange-traded
Cboe Volatility Index (‘‘VIX’’) Futures
Contracts with weekly and monthly
expirations. On February 5, 2018, the
Official Closing Price for VMIN was
$16.57. The price of VMIN declined in
after-market trading on February 5,
2018, and the last reported extendedhours trade price on that day was $7.50.
The reported NAV for February 5, 2018
was $3.37. Because of the volatility in
the pricing for VMIN and based on
information from the issuer that there
was a news event forthcoming, the
Exchange halted trading in VMIN
during the Pre-Opening Session. While
the security was halted, an Intraday
Indicative Value (‘‘IIV’’) was published
under the ticker VMIN.IV, and as of 3:00
p.m. Eastern Time on February 6, 2018,
the IIV was $3.19. As such, the Halt
Auction Reference Price for a Halt
Auction would be the prior day’s
Official Closing Price, $16.57, and the
Halt Auction Collar would be $14.91
and $18.23.
However, because of market events
unique to the circumstances of February
5, 2018 and February 6, 2018, and the
impact on pricing of VMIN, the
Exchange does not believe that VMIN’s
Official Closing Price would be an
appropriate Halt Auction Reference
Price and the basis for calculating the
E:\FR\FM\21FEN1.SGM
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Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices
daltland on DSKBBV9HB2PROD with NOTICES
Halt Auction Collar for the Halt Auction
for that security. The Exchange believes
that the significant difference between
the Official Closing Price on the one
hand, and the last reported extendedhours sale price, the NAV, and the IIV
on the other hand indicates that the
Official Closing Price does not reflect
the value of the security and would not
be an appropriate Halt Auction
Reference Price.
The Exchange believes that it would
be consistent with fair and orderly
markets and the protection of investors
and the public to temporarily amend
11.23(d)(2)(E) and set a different Halt
Auction Collar for VMIN based on a
different Halt Auction Reference Price.
The Exchange believes that given the
unique circumstances for VMIN,
including the selling pressure on
February 5, 2018 and the fluctuating
prices relating to VMIN overnight, an
IIV identified shortly before the Trading
Halt Auction would more closely
correlate to the value of VMIN as of the
time of the Trading Halt Auction. More
specifically, the Exchange believes that
using a Halt Auction Reference Price
based on an IIV for VMIN as the basis
for forming the Halt Auction Collars that
is identified prior to the Halt Auction
would reduce the potential for volatility
in trading after the security resumes
trading.
Accordingly, the Exchange proposes
to temporarily amend Rule
11.23(d)(2)(E) so that the Halt Auction
Reference Price for VMIN used to
calculate the Halt Auction Collars
would be $3.19. Because this proposed
amendment would be operative for only
one trading day and for only one
symbol, the Exchange does not believe
it is necessary to amend the rule text to
effect this change. The Exchange
proposes to provide notice of the
amended Halt Auction Reference Price
via a Trade Desk Notice, to be published
before the Trading Halt Auction in
VMIN.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act 5 in general and Section
6(b)(5) of the Act 6 in particular in that
it is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
5 15
6 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
VerDate Sep<11>2014
19:57 Feb 20, 2018
Jkt 244001
system, and in general, to protect
investors and the public interest.
The Exchange believes that it would
promote the protection of investors and
the public interest to temporarily amend
Rule 11.23(d)(2)(E) to set a different Halt
Auction Reference Price for VMIN for
the Halt Auction that would resume
trading in that security on February 6,
2018. In particular, the Exchange
believes that the unique circumstances
of the market-wide trading volatility on
February 5 and 6, 2018, and related
impact on the various prices relating to
VMIN, using the Official Closing Price
as the Halt Auction Reference Price
could result in extreme market volatility
for that security after the security
resumes trading on February 6, 2018.
Specifically, the difference between the
Official Closing Price on the one hand,
and the NAV, last reported extendedhours sale price, and IIV on the morning
of February 6, 2018 on the other hand,
indicate that the Official Closing Price
no longer reflects the value of VMIN.
By contrast, the Exchange believes
that for this unique circumstance, using
an IIV identified shortly before the Halt
Auction would more closely reflect the
value of VMIN and would reduce the
potential for volatile trading after the
security resumes trading. Accordingly,
the Exchange believes that it would
remove impediments 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, to temporarily amend
Rule 11.23(d)(2)(E) to provide that the
Halt Auction Reference Price that is
used for the basis of calculating the Halt
Auction Collars on February 6, 2018
only would be based on an IIV as of 3:00
p.m. Eastern Time.
For the above reasons, the Exchange
believes that the proposed rule change
is consistent with the requirements of
Section 6(b)(5) of the Act.
(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 proposed
rule change is not designed to address
any competitive issues but rather is
designed to ensure a fair and orderly
market by temporarily amending the
Auction Reference Price that would be
used for the Trading Halt Auction to
resume trading in VMIN on February 6,
2018 only.
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
7525
(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 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 7 and Rule 19b–
4(f)(6) thereunder.8
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 9 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 10
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 five-day
prefiling requirement, as well the 30day operative delay, so that the proposal
may become operative immediately. The
Commission waives the prefiling
requirement and finds that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest because the proposed
rule change is designed to facilitate the
orderly reopening of trading in VMIN,
and raises no new or novel issues.
Therefore, the Commission hereby
waives the operative delay and
designates the proposal operative upon
filing.11
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
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). Rule 19b–4(f)(6)(iii)
requires the Exchange to provide 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. The Exchange has
requested that the Commission waive this
requirement.
9 17 CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
8 17
E:\FR\FM\21FEN1.SGM
21FEN1
7526
Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 12 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
daltland on DSKBBV9HB2PROD 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 No. SR–
CboeBZX–2018–011 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.
(a) All submissions should refer to
File No. SR–CboeBZX–2018–011. 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 such
filing will also 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
12 15
U.S.C. 78s(b)(2)(B).
VerDate Sep<11>2014
19:57 Feb 20, 2018
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File No.
SR–CboeBZX–2018–011 and should be
submitted on or before March 14, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–03453 Filed 2–20–18; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #15442 and #15443;
New York Disaster Number NY–00176]
Administrative Declaration of a
Disaster for the State of New York
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of New York dated 02/13/
2018.
Incident: Severe Storms and Flooding.
Incident Period: 07/01/2017 through
07/24/2017.
DATES: Issued on 02/13/2018.
Physical Loan Application Deadline
Date: 04/16/2018.
Economic Injury (EIDL) Loan
Application Deadline Date: 11/13/2018.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations. The
following areas have been determined to
be adversely affected by the disaster:
Primary Counties: Cayuga, Oneida,
Rensselaer, Wyoming
Contiguous Counties:
New York: Albany, Allegany,
Cattaraugus, Columbia, Cortland,
Erie, Genesee, Greene, Herkimer,
Lewis, Livingston, Madison,
Onondaga, Oswego, Otsego,
Saratoga, Seneca, Tompkins,
SUMMARY:
13 17
Jkt 244001
PO 00000
CFR 200.30–3(a)(12).
Frm 00077
Fmt 4703
Sfmt 4703
Washington, Wayne
Massachusetts: Berkshire
Vermont: Bennington
The Interest Rates are:
Percent
For Physical Damage:
Homeowners With Credit Available Elsewhere ......................
Homeowners Without Credit
Available Elsewhere ..............
Businesses With Credit Available Elsewhere ......................
Businesses
Without
Credit
Available Elsewhere ..............
Non-Profit Organizations With
Credit Available Elsewhere ...
Non-Profit Organizations Without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives Without Credit
Available Elsewhere ..............
Non-Profit Organizations Without Credit Available Elsewhere .....................................
3.875
1.938
6.430
3.215
2.500
2.500
3.215
2.500
The number assigned to this disaster
for physical damage is 154426 and for
economic injury is 154430.
The States which received an EIDL
Declaration # are New York,
Massachusetts, Vermont.
(Catalog of Federal Domestic Assistance
Number 59008)
Dated: February 13, 2018.
Linda E. McMahon,
Administrator.
[FR Doc. 2018–03489 Filed 2–20–18; 8:45 am]
BILLING CODE 8025–01–P
DEPARTMENT OF STATE
[Public Notice: 10319]
Notice of Determinations; Culturally
Significant Objects Imported for
Exhibition Determinations: ‘‘King Tut:
Treasures of the Golden Pharaoh’’
Exhibition
Notice is hereby given of the
following determinations: I hereby
determine that certain objects to be
included in the exhibition ‘‘King Tut:
Treasures of the Golden Pharaoh,’’
imported from abroad for temporary
exhibition within the United States, are
of cultural significance. The objects are
imported pursuant to a loan agreement
with the foreign owner or custodian. I
also determine that the exhibition or
display of the exhibit objects at the
California Science Center, Los Angeles,
California, from on or about March 24,
2018, until on or about January 6, 2019,
and at possible additional exhibitions or
SUMMARY:
E:\FR\FM\21FEN1.SGM
21FEN1
]]>Agencies
[Federal Register Volume 83, Number 35 (Wednesday, February 21, 2018)]
[Notices]
[Pages 7524-7526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03453]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82715; File No. SR-CboeBZX-2018-011]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Temporarily Amend Rule 11.23(d)(2)(E) Relating to the Halt Auction
Collar for a Halt Auction for REX VolMAXX Short Weekly Futures Strategy
ETF
February 14, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 7, 2018, Cboe 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 temporarily amend Rule
11.23(d)(2)(E) relating to the Halt Auction Collar for a Halt Auction
for REX VolMAXX Short Weekly Futures Strategy ETF (VMIN), which would
be operative for February 6, 2018 only.
The text of the proposed rule change is available at the Exchange's
website at www.markets.cboe.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 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 temporarily amend Rule 11.23(d)(2)(E)
relating to the Halt Auction Collar for a Halt Auction for REX VolMAXX
Short Weekly Futures Strategy ETF (VMIN), which would be operative for
February 6, 2018 only.
On February 5, 2018, both the U.S. and global markets experienced
increased selling pressure and the Dow Jones Industrial Average
(``DJIA'') closed 4.6% down over the prior closing day. In addition, on
February 5, 2018, volatility was significantly higher across all
measures of U.S. markets and continued to fluctuate significantly
through the morning of February 6, 2018.
VMIN, which is listed on the Exchange, seeks to provide investors
with inverse exposure to the implied volatility of the broad-based,
large-cap U.S. equity market by obtaining investment exposure to an
actively managed portfolio of exchange-traded Cboe Volatility Index
(``VIX'') Futures Contracts with weekly and monthly expirations. On
February 5, 2018, the Official Closing Price for VMIN was $16.57. The
price of VMIN declined in after-market trading on February 5, 2018, and
the last reported extended-hours trade price on that day was $7.50. The
reported NAV for February 5, 2018 was $3.37. Because of the volatility
in the pricing for VMIN and based on information from the issuer that
there was a news event forthcoming, the Exchange halted trading in VMIN
during the Pre-Opening Session. While the security was halted, an
Intraday Indicative Value (``IIV'') was published under the ticker
VMIN.IV, and as of 3:00 p.m. Eastern Time on February 6, 2018, the IIV
was $3.19. As such, the Halt Auction Reference Price for a Halt Auction
would be the prior day's Official Closing Price, $16.57, and the Halt
Auction Collar would be $14.91 and $18.23.
However, because of market events unique to the circumstances of
February 5, 2018 and February 6, 2018, and the impact on pricing of
VMIN, the Exchange does not believe that VMIN's Official Closing Price
would be an appropriate Halt Auction Reference Price and the basis for
calculating the
[[Page 7525]]
Halt Auction Collar for the Halt Auction for that security. The
Exchange believes that the significant difference between the Official
Closing Price on the one hand, and the last reported extended-hours
sale price, the NAV, and the IIV on the other hand indicates that the
Official Closing Price does not reflect the value of the security and
would not be an appropriate Halt Auction Reference Price.
The Exchange believes that it would be consistent with fair and
orderly markets and the protection of investors and the public to
temporarily amend 11.23(d)(2)(E) and set a different Halt Auction
Collar for VMIN based on a different Halt Auction Reference Price. The
Exchange believes that given the unique circumstances for VMIN,
including the selling pressure on February 5, 2018 and the fluctuating
prices relating to VMIN overnight, an IIV identified shortly before the
Trading Halt Auction would more closely correlate to the value of VMIN
as of the time of the Trading Halt Auction. More specifically, the
Exchange believes that using a Halt Auction Reference Price based on an
IIV for VMIN as the basis for forming the Halt Auction Collars that is
identified prior to the Halt Auction would reduce the potential for
volatility in trading after the security resumes trading.
Accordingly, the Exchange proposes to temporarily amend Rule
11.23(d)(2)(E) so that the Halt Auction Reference Price for VMIN used
to calculate the Halt Auction Collars would be $3.19. Because this
proposed amendment would be operative for only one trading day and for
only one symbol, the Exchange does not believe it is necessary to amend
the rule text to effect this change. The Exchange proposes to provide
notice of the amended Halt Auction Reference Price via a Trade Desk
Notice, to be published before the Trading Halt Auction in VMIN.
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act \5\ in general and Section 6(b)(5) of the Act \6\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and 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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\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that it would promote the protection of
investors and the public interest to temporarily amend Rule
11.23(d)(2)(E) to set a different Halt Auction Reference Price for VMIN
for the Halt Auction that would resume trading in that security on
February 6, 2018. In particular, the Exchange believes that the unique
circumstances of the market-wide trading volatility on February 5 and
6, 2018, and related impact on the various prices relating to VMIN,
using the Official Closing Price as the Halt Auction Reference Price
could result in extreme market volatility for that security after the
security resumes trading on February 6, 2018. Specifically, the
difference between the Official Closing Price on the one hand, and the
NAV, last reported extended-hours sale price, and IIV on the morning of
February 6, 2018 on the other hand, indicate that the Official Closing
Price no longer reflects the value of VMIN.
By contrast, the Exchange believes that for this unique
circumstance, using an IIV identified shortly before the Halt Auction
would more closely reflect the value of VMIN and would reduce the
potential for volatile trading after the security resumes trading.
Accordingly, the Exchange believes that it would remove impediments 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,
to temporarily amend Rule 11.23(d)(2)(E) to provide that the Halt
Auction Reference Price that is used for the basis of calculating the
Halt Auction Collars on February 6, 2018 only would be based on an IIV
as of 3:00 p.m. Eastern Time.
For the above reasons, the Exchange believes that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.
(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 proposed rule change is
not designed to address any competitive issues but rather is designed
to ensure a fair and orderly market by temporarily amending the Auction
Reference Price that would be used for the Trading Halt Auction to
resume trading in VMIN on February 6, 2018 only.
(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 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 \7\ and Rule 19b-4(f)(6) thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). Rule 19b-4(f)(6)(iii) requires the
Exchange to provide 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. The Exchange has
requested that the Commission waive this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \9\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \10\ 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 five-day prefiling requirement,
as well the 30-day operative delay, so that the proposal may become
operative immediately. The Commission waives the prefiling requirement
and finds that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest because the
proposed rule change is designed to facilitate the orderly reopening of
trading in VMIN, and raises no new or novel issues. Therefore, the
Commission hereby waives the operative delay and designates the
proposal operative upon filing.\11\
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\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such
[[Page 7526]]
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act. If the Commission takes such action, the Commission shall
institute proceedings under Section 19(b)(2)(B) \12\ of the Act to
determine whether the proposed rule change should be approved or
disapproved.
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\12\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal 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 No. SR-CboeBZX-2018-011 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.
(a) All submissions should refer to File No. SR-CboeBZX-2018-011.
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 such filing will also 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 No. SR-CboeBZX-2018-011 and should be
submitted on or before March 14, 2018.
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. 2018-03453 Filed 2-20-18; 8:45 am]
BILLING CODE 8011-01-P
