Corporate Capital Trust, Inc., et al., 10941-10942 [2018-05072]
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Federal Register / Vol. 83, No. 49 / Tuesday, March 13, 2018 / Notices
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Holding Period, it would be critically
important that the firm be able to cancel
its orders from Nasdaq and re-allocate
those shares to other venues.96 This
commenter stated that it does not
believe any market participants would
be harmed in such a circumstance.97
In Amendment No. 2, the Exchange
responded that MELOs may be
cancelled at any time, including during
the Holding Period, to allow members to
effectively manage risk.98 The Exchange
also acknowledged that the potential
exists for some participants to use
MELOs in a way that conflicts with the
stated intention of the order type to
allow longer term investors the
opportunity to safely find like-minded
counterparties at the midpoint on
Nasdaq.99 For this reason, the Exchange
represented that MELOs would be
subject to real-time surveillance to
determine if the order type is being
abused by market participants.100 The
Exchange also stated that it plans to
implement a process, at the same time
as the implementation of MELOs, to
monitor the use of MELOs, with the
intent to apply additional measures, as
necessary, to ensure that their usage is
appropriately tied to the intent of the
order type.101 According to the
Exchange, this process may include
metrics tied to participant behavior,
such as the percentage of MELOs
cancelled prior to completion of the
Holding Period, the average duration of
MELOs, and the percentage of MELOs
where the NBBO midpoint is within the
limit price when received.102 The
Exchange stated that manipulative
abuse is subject to potential disciplinary
action under the Exchange’s rules, and
other behavior that frustrates the
purposes of the MELO order type may
be subject to penalties or other
requirements to discourage such
behavior, should it occur.103
The Commission believes that the
Exchange’s proposed measures are
reasonably designed to deter potential
improper use of the proposed MELO
order type. In particular, the
Commission notes that the Exchange
has represented that it will conduct realtime surveillance to monitor the use of
MELOs and ensure that such usage is
appropriately tied to the intent of the
order type.104 Moreover, importantly,
the Exchange will measure the metrics
96 See
id.
id.
98 See Amendment No. 2 at 8.
99 See id. at 22.
100 See id.
101 See id.
102 See id.
103 See id. at 23.
104 See id. at 22–23.
97 See
VerDate Sep<11>2014
17:47 Mar 12, 2018
noted above that reflect participant
behavior with respect to MELOs, such
as the percentage of a participant’s
MELOs that are cancelled prior to the
completion of the Holding Period.105 As
the Exchange represented in its filing,
the Commission expects the Exchange
to continue to evaluate whether
additional measures may be necessary
to ensure that MELOs are used in a
manner consistent with the intended
purpose of the order type.106
IV. Solicitation of Comments on
Amendment No. 3 to the Proposed Rule
Change
Interested persons are invited to
submit written data, views, and
arguments concerning whether
Amendment No. 3 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–
NASDAQ–2017–074 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–NASDAQ–2017–074. 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–NASDAQ–2017–074, and
should be submitted on or before April
3, 2018.
V. Accelerated Approval of Proposed
Rule Change, as Modified by
Amendment Nos. 1, 2, and 3
The Commission finds good cause to
approve the proposed rule change, as
modified by Amendment Nos. 1, 2, and
3, prior to the thirtieth day after the date
of publication of notice of the filing of
Amendment No. 3 in the Federal
Register. As discussed above, in
Amendment No. 3, the Exchange
proposed to provide on
Nasdaqtrader.com certain delayed
aggregated volume statistics for MELOs
executed on the Exchange. The
Commission notes that Amendment No.
3 is designed to provide transparency
regarding MELO executions on the
Exchange. Accordingly, the Commission
finds good cause, pursuant to Section
19(b)(2) of the Act,107 to approve the
proposed rule change, as modified by
Amendment Nos. 1, 2, and 3, on an
accelerated basis.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,108 that the
proposed rule change (SR–NASDAQ–
2017–074), as modified by Amendment
Nos. 1, 2, and 3 be, and hereby is,
approved on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.109
Brent J. Fields,
Secretary.
[FR Doc. 2018–04979 Filed 3–12–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
33043; 812–14882]
Corporate Capital Trust, Inc., et al.
March 8, 2018.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
AGENCY:
107 15
105 See
id. at 22.
106 See id.
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108 Id.
109 17
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CFR 200.30–3(a)(12).
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10942
Federal Register / Vol. 83, No. 49 / Tuesday, March 13, 2018 / Notices
Notice of application for an order to
amend a prior order under sections
17(d) and 57(i) of the Investment
Company Act of 1940 (the ‘‘Act’’) and
rule 17d–1 under the Act permitting
certain joint transactions otherwise
prohibited by sections 17(d) and 57(a)(4)
of the Act and rule 17d–1 under the Act.
SUMMARY OF APPLICATION: Applicants
request an order to amend a prior order
that permits certain business
development companies (‘‘BDCs’’) and
registered closed-end investment
companies (‘‘closed-end funds’’) to coinvest in portfolio companies with each
other and with affiliated investment
funds and accounts.
Applicants: Corporate Capital Trust,
Inc. (‘‘CCT I’’), a BDC; Corporate Capital
Trust II (‘‘CCT II’’), a BDC; KKR Income
Opportunities Fund (‘‘KIO’’), a closedend fund; FS/KKR Advisor, LLC (‘‘FS/
KKR Advisor’’); KKR Credit Advisors
(US) LLC (‘‘KKR Credit’’); the
investment advisory subsidiaries and
relying advisers of KKR Credit set forth
on Schedule A to the application
(collectively, with FS/KKR Advisor and
KKR Credit, the ‘‘Existing KKR Credit
Advisers’’); KKR Capital Markets
Holdings L.P. and its capital markets
subsidiaries and other indirect, whollyor majority-owned subsidiaries of KKR
& Co. L.P. (‘‘KKR’’) set forth on
Schedule A to the application
(collectively, the ‘‘KCM Companies’’);
KKR Financial Holdings LLC (‘‘KFN’’)
and its wholly-owned subsidiaries set
forth on Schedule A to the application
(together with wholly-owned
subsidiaries of KFN that may be formed
in the future, the ‘‘KFN Subsidiaries.’’);
and the Existing Affiliated Funds set
forth on Schedule A to the application.
Filing Dates: The application was
filed on March 6, 2018.
Hearing or Notification of Hearing: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on April 2, 2018, and
should be accompanied by proof of
service on applicants, in the form of an
affidavit or, for lawyers, a certificate of
service. Hearing requests should state
the nature of the writer’s interest, the
reason for the request, and the issues
contested. Persons who wish to be
notified of a hearing may request
notification by writing to the
Commission’s Secretary.
ADDRESSES: Secretary, U.S. Securities
and Exchange Commission, 100 F St.
VerDate Sep<11>2014
17:47 Mar 12, 2018
Jkt 244001
NE, Washington, DC 20549–1090.
Applicants: 555 California Street 50th
Floor, San Francisco, CA 94104
FOR FURTHER INFORMATION CONTACT:
Bruce MacNeil, Senior Counsel, at (202)
551–6817 or David J. Marcinkus, Branch
Chief, at (202) 551–6821 (Division of
Investment Management, Chief
Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
website by searching for the file
number, or for an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
Applicants’ Representations:
1. On June 19, 2017, the Applicants
received an order under Sections 17(d)
and 57(i) of the Act and Rule 17d–1
thereunder, permitting certain joint
transactions that otherwise may be
prohibited by Sections 17(d) and
57(a)(4) and Rule 17d–1 (the ‘‘Prior
Order’’).1 Unless stated otherwise,
defined terms used in the application
have the meanings provided in the
application for the Prior Order (the
‘‘Prior Application’’).
2. The Applicants seek an order (the
‘‘Order’’) to amend the Prior Order to
extend the relief granted therein to
Future Regulated Entities whose
investment adviser is a KKR Credit
Adviser.2 Applicants also seek to amend
the Prior Order to add FS/KKR Advisor
as an Applicant and to remove CNL
Fund Advisors Company and CNL Fund
Advisors II, LLC as Applicants.3
3. FS/KKR Advisor is a Delaware
limited liability company, and, prior to
relying on the requested relief, will be
registered as an investment adviser
under the Advisers Act and controlled
by KKR Credit.
4. Applicants state that the legal
analysis in the Prior Application is
equally applicable to this application.
Applicants’ Conditions:
If the Order is granted, the Conditions
of the Prior Order, as stated in the Prior
Application, will remain in effect.
1 Corporate Capital Trust, Inc., et al. (File No.
812–14408), Investment Company Act Release Nos.
32642 (May 22, 2017) (notice) and 32683 (June 19,
2017) (order).
2 Per the Order, the term ‘‘Future Regulated
Entity’’ would mean a closed-end management
investment company (a) that is registered under the
Act or has elected to be regulated as a BDC and (b)
whose investment adviser is a KKR Credit Adviser
that is registered as an investment adviser under the
Investment Advisers Act of 1940 (the ‘‘Advisers
Act’’).
3 CNL Fund Advisors Company and CNL Fund
Advisors II, LLC currently serve as investment
adviser to CCT I and CCT II, respectively.
PO 00000
Frm 00120
Fmt 4703
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For the Commission, by the Division of
Investment Management, under delegated
authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–05072 Filed 3–12–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
33042; 812–14849]
Nationwide Fund Advisors and ETF
Series Solutions
March 8, 2018.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
AGENCY:
Notice of an application for an order
under section 6(c) of the Investment
Company Act of 1940 (the ‘‘Act’’) for an
exemption from sections 2(a)(32),
5(a)(1), 22(d), and 22(e) of the Act and
rule 22c–1 under the Act, under
sections 6(c) and 17(b) of the Act for an
exemption from sections 17(a)(1) and
17(a)(2) of the Act, and under section
12(d)(1)(J) of the Act for an exemption
from sections 12(d)(1)(A) and
12(d)(1)(B) of the Act. The requested
order would permit (a) activelymanaged series of certain open-end
management investment companies
(‘‘Funds’’) to issue shares redeemable in
large aggregations only (‘‘Creation
Units’’); (b) secondary market
transactions in Fund shares to occur at
negotiated market prices rather than at
net asset value (‘‘NAV’’); (c) certain
Funds to pay redemption proceeds,
under certain circumstances, more than
seven days after the tender of shares for
redemption; (d) certain affiliated
persons of a Fund to deposit securities
into, and receive securities from, the
Fund in connection with the purchase
and redemption of Creation Units; (e)
certain registered management
investment companies and unit
investment trusts outside of the same
group of investment companies as the
Funds (‘‘Funds of Funds’’) to acquire
shares of the Funds; and (f) certain
Funds (‘‘Feeder Funds’’) to create and
redeem Creation Units in-kind in a
master-feeder structure.
APPLICANTS: Nationwide Fund Advisors
(the ‘‘Initial Adviser’’), a business trust
organized under the laws of the state of
Delaware registered as an investment
adviser under the Investment Advisers
Act of 1940, ETF Series Solutions (the
‘‘Trust’’), a Delaware statutory trust
registered under the Act as an open-end
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Agencies
[Federal Register Volume 83, Number 49 (Tuesday, March 13, 2018)]
[Notices]
[Pages 10941-10942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05072]
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 33043; 812-14882]
Corporate Capital Trust, Inc., et al.
March 8, 2018.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice.
-----------------------------------------------------------------------
[[Page 10942]]
Notice of application for an order to amend a prior order under
sections 17(d) and 57(i) of the Investment Company Act of 1940 (the
``Act'') and rule 17d-1 under the Act permitting certain joint
transactions otherwise prohibited by sections 17(d) and 57(a)(4) of the
Act and rule 17d-1 under the Act.
SUMMARY OF APPLICATION: Applicants request an order to amend a prior
order that permits certain business development companies (``BDCs'')
and registered closed-end investment companies (``closed-end funds'')
to co-invest in portfolio companies with each other and with affiliated
investment funds and accounts.
Applicants: Corporate Capital Trust, Inc. (``CCT I''), a BDC;
Corporate Capital Trust II (``CCT II''), a BDC; KKR Income
Opportunities Fund (``KIO''), a closed-end fund; FS/KKR Advisor, LLC
(``FS/KKR Advisor''); KKR Credit Advisors (US) LLC (``KKR Credit'');
the investment advisory subsidiaries and relying advisers of KKR Credit
set forth on Schedule A to the application (collectively, with FS/KKR
Advisor and KKR Credit, the ``Existing KKR Credit Advisers''); KKR
Capital Markets Holdings L.P. and its capital markets subsidiaries and
other indirect, wholly- or majority-owned subsidiaries of KKR & Co.
L.P. (``KKR'') set forth on Schedule A to the application
(collectively, the ``KCM Companies''); KKR Financial Holdings LLC
(``KFN'') and its wholly-owned subsidiaries set forth on Schedule A to
the application (together with wholly-owned subsidiaries of KFN that
may be formed in the future, the ``KFN Subsidiaries.''); and the
Existing Affiliated Funds set forth on Schedule A to the application.
Filing Dates: The application was filed on March 6, 2018.
Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on April 2, 2018, and should be accompanied by proof of
service on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.
ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
St. NE, Washington, DC 20549-1090. Applicants: 555 California Street
50th Floor, San Francisco, CA 94104
FOR FURTHER INFORMATION CONTACT: Bruce MacNeil, Senior Counsel, at
(202) 551-6817 or David J. Marcinkus, Branch Chief, at (202) 551-6821
(Division of Investment Management, Chief Counsel's Office).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's website by searching for the file number, or for an
applicant using the Company name box, at https://www.sec.gov/search/search.htm or by calling (202) 551-8090.
Applicants' Representations:
1. On June 19, 2017, the Applicants received an order under
Sections 17(d) and 57(i) of the Act and Rule 17d-1 thereunder,
permitting certain joint transactions that otherwise may be prohibited
by Sections 17(d) and 57(a)(4) and Rule 17d-1 (the ``Prior Order'').\1\
Unless stated otherwise, defined terms used in the application have the
meanings provided in the application for the Prior Order (the ``Prior
Application'').
---------------------------------------------------------------------------
\1\ Corporate Capital Trust, Inc., et al. (File No. 812-14408),
Investment Company Act Release Nos. 32642 (May 22, 2017) (notice)
and 32683 (June 19, 2017) (order).
---------------------------------------------------------------------------
2. The Applicants seek an order (the ``Order'') to amend the Prior
Order to extend the relief granted therein to Future Regulated Entities
whose investment adviser is a KKR Credit Adviser.\2\ Applicants also
seek to amend the Prior Order to add FS/KKR Advisor as an Applicant and
to remove CNL Fund Advisors Company and CNL Fund Advisors II, LLC as
Applicants.\3\
---------------------------------------------------------------------------
\2\ Per the Order, the term ``Future Regulated Entity'' would
mean a closed-end management investment company (a) that is
registered under the Act or has elected to be regulated as a BDC and
(b) whose investment adviser is a KKR Credit Adviser that is
registered as an investment adviser under the Investment Advisers
Act of 1940 (the ``Advisers Act'').
\3\ CNL Fund Advisors Company and CNL Fund Advisors II, LLC
currently serve as investment adviser to CCT I and CCT II,
respectively.
---------------------------------------------------------------------------
3. FS/KKR Advisor is a Delaware limited liability company, and,
prior to relying on the requested relief, will be registered as an
investment adviser under the Advisers Act and controlled by KKR Credit.
4. Applicants state that the legal analysis in the Prior
Application is equally applicable to this application.
Applicants' Conditions:
If the Order is granted, the Conditions of the Prior Order, as
stated in the Prior Application, will remain in effect.
For the Commission, by the Division of Investment Management,
under delegated authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-05072 Filed 3-12-18; 8:45 am]
BILLING CODE 8011-01-P