Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Listing Rules Under Rule 14.11(d)(2)(K)(i) Related to Equity Index-Linked Securities, 12633-12635 [2018-05795]
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Federal Register / Vol. 83, No. 56 / Thursday, March 22, 2018 / Notices
after the date of publication of the
notice in the Federal Register in order
to facilitate the clearing of the Standard
European Senior Non-Preferred
Financial Corporate transaction type,
which the Commission understands
market participants will commence
trading beginning on March 20, 2018 30
and which are tied to European capital
and resolution regulations.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular with the requirements of
Section 17A of the Act,31 and Rules
17Ad–22(b)(2), (b)((3), (e)(4)(ii), and
(e)(6)(i) thereunder.32
It Is Therefore Ordered pursuant to
Section 19(b)(2) of the Act 33 that the
proposed rule change (SR–ICEEU–2018–
002) be, and hereby is, approved on an
accelerated basis.34
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.35
Eduardo A. Aleman,
Assistant Secretary.
Time’’) pursuant to Rule 161 of the
Commission’s Rules of Practice 1 to
extend to April 12, 2018, the time
previously provided for the in the
Commission’s March 1, 2018, Order
Granting Petitions for Review and
Scheduling Filing of Statements.2 On
March 15, 2018, Cboe BZX Exchange,
Inc. filed a response stating that it does
not object to the Motion for an
Extension of Time.
Extensions of time are disfavored
absent a showing of good cause. It
appears appropriate to grant the
requested extension. Therefore,
It is Ordered, that the Motion for an
Extension of Time is hereby Granted.
The time for any party or other person
to file a statement in support of or in
opposition to the action made pursuant
to delegated authority is extended from
March 22, 2018 to April 12, 2018.
For the Commission, by its Secretary,
pursuant to delegated authority.3
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–05791 Filed 3–21–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[FR Doc. 2018–05793 Filed 3–21–18; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–82892; File No. 4–698]
SECURITIES AND EXCHANGE
COMMISSION
Joint Industry Plan; Notice of
Withdrawal of Amendment No. 4 to the
National Market System Plan
Governing the Consolidated Audit Trail
[Release No. 82896]
Order Granting Motion for Extension of
Time
March 16, 2018.
In the Matter of the Cboe BZX Exchange,
Inc. for an Order Granting the Approval of
Proposed Rule Change to Introduce Cboe
Market Close, a Closing Match Process for
Non-BZX Listed Securities under New
Exchange Rule 11.28 (File No. SR–BatsBZX–
2017–34); Securities Exchange Act Of 1934.
daltland on DSKBBV9HB2PROD with NOTICES
On March 9, 2018, The Nasdaq Stock
Market LLC and NYSE Group, Inc. filed
a Motion for an Extension of Time to
File Statements in Opposition to the
Action Made Pursuant to Delegated
Authority (‘‘Motion for an Extension of
30 See IHS Markit iTraxx Europe Rule
Announcement, February 6, 2018 (stating that for
iTraxx Europe Series 29, for French bank OpCos
that qualify for inclusion in the index, the senior
non-preferred reference obligations will be selected
if available).
31 15 U.S.C. 78q–1.
32 17 CFR 240.17Ad–22(b)(2), (b)(3), (e)(4)(ii) and
(e)(6)(i).
33 15 U.S.C. 78s(b)(2).
34 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
35 17 CFR 200.30–3(a)(12).
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March 16, 2018.
I. Introduction
On December 11, 2017, the Operating
Committee for CAT NMS, LLC (the
‘‘Company’’), on behalf of the parties to
the National Market System Plan
Governing the Consolidated Audit Trail
(the ‘‘CAT NMS Plan’’): BOX Options
Exchange LLC, Cboe BYX Exchange,
Inc., Cboe BZX Exchange, Inc., Cboe
EDGA Exchange, Inc., Cboe EDGX
Exchange, Inc., Cboe C2 Exchange, Inc.,
Cboe Exchange, Inc., Chicago Stock
Exchange, Inc., Financial Industry
Regulatory Authority, Inc., Investors’
Exchange LLC, Miami International
Securities Exchange, LLC, MIAX
PEARL, LLC, Nasdaq BX, Inc., Nasdaq
GEMX, LLC, Nasdaq ISE, LLC, Nasdaq
MRX, LLC, Nasdaq PHLX LLC, The
Nasdaq Stock Market LLC, New York
Stock Exchange LLC, NYSE American,
LLC and NYSE Arca, Inc., (the
‘‘Participants’’) filed with the Securities
1 17
CFR 201.161.
Act Release No. 82794 (March 1,
2 Exchange
2018).
3 17 CFR 200.30–7(a)(4).
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12633
and Exchange Commission
(‘‘Commission’’) pursuant to Section
11A of the of the Securities Exchange
Act of 1934 1 (the ‘‘Exchange Act’’) and
Rule 608 thereunder,2 Amendment No.
4 to the CAT NMS Plan to add a fee
schedule to the CAT NMS Plan that
would set forth fees to be paid by the
Participants to fund the Consolidated
Audit Trail.3 A Notice of Filing and
Immediate Effectiveness of Amendment
No. 4 was published for comment in the
Federal Register on January 11, 2018.4
The Commission is publishing this
notice to reflect that on January 11,
2018, prior to the end of the 60-day
period provided for in Exchange Act
Rule 608(b)(iii), the Participants
withdrew the Amendment.5
By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–05790 Filed 3–21–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82895; File No. SRCboeBZX–2018–020]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Listing Rules Under Rule
14.11(d)(2)(K)(i) Related to Equity
Index-Linked Securities
March 16, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 8,
2018, Cboe BZX Exchange, Inc.
(‘‘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)
1 15
U.S.C. 78k–1.
CFR 242.608.
3 See Letter from Michael Simon, Chair, CAT
NMS Plan Operating Committee, to Brent J. Fields,
Secretary, Commission, dated December 11, 2017.
4 See Exchange Act Release No. 82451 (January 5,
2018), 83 FR 1399 (January 11, 2018).
5 See Letter from Michael Simon, Chair, CAT
NMS Plan Operating Committee, to Brent J. Fields,
Secretary, Commission, dated January 10, 2018.
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
2 17
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Federal Register / Vol. 83, No. 56 / Thursday, March 22, 2018 / Notices
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend its listing rules under Rule
14.11(d)(2)(K)(i) related to Equity IndexLinked Securities.
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
daltland on DSKBBV9HB2PROD with NOTICES
1. Purpose
The Exchange is submitting this
proposal in order to bring its listing
rules related to Equity Index-Linked
Securities in line with those of NYSE
Arca, Inc (‘‘Arca’’).5 Rule 14.11(d) sets
forth certain rules related to the listing
and trading of Linked Securities (as
defined therein) on the Exchange and
Rule 14.11(d)(2)(K)(i) relates specifically
to the generic listing standards
applicable to Equity Index-Linked
Securities.6 Specifically, Rule
14.11(d)(2)(K)(i)(a) provides that the
index underlying a series of Equity
Index-Linked Securities must include at
least 10 component securities and meet
the requirements of either Rule
14.11(d)(2)(K)(i)(a)(1) or (2). Rule
14.11(d)(2)(K)(i)(a)(1) provides that an
index must have been reviewed and
4 17
CFR 240.19b–4(f)(6)(iii).
Arca Rule 5.2–E(j)(6)(B)(I).
6 See Securities Exchange Act Release No. 65225
(August 30, 2011), 76 FR 55148 (September 6, 2011)
(SR–BATS–2011–018) (Order Approving Proposed
Rule Change to Adopt Rules for the Qualification,
Listing and Delisting of Companies on the
Exchange).
5 See
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approved for the trading of options or
other derivatives by the Commission
under Section 19(b)(2) of the Act and
rules thereunder and the conditions set
forth in the Commission’s approval
order, including comprehensive
surveillance sharing agreements for nonU.S. stocks, continue to be satisfied.
Rule 14.11(d)(2)(K)(i)(a)(2) provides
certain quantitative standards related to
the market cap, trading volume,
rebalancing, concentration, and
surveillance sharing. As noted above,
where an index has at least 10
component securities and meets the
criteria either Rule 14.11(d)(2)(K)(i)(a)(1)
or (2), it meets the initial listing criteria
for Equity Index-Linked Securities. Rule
14.11(d)(2)(K)(i)(b) includes the
continued listing criteria for Equity
Index-Linked Securities and provides
that the Exchange will consider
suspension and will initiate delisting
proceedings where the standards set
forth in Rule 14.11(d)(2)(K)(i)(a) are not
continuously met, with some additional
concentration and trading volume
criteria.
The Exchange proposes to amend
Rule 14.11(d)(2)(K)(i) related to Equity
Index-Linked Securities in order to
make it substantively identical to the
comparable rule on Arca. In particular,
the Exchange is proposing to make
certain changes to its rules consistent
with Arca’s rule such that: (i) Derivative
Securities Products and Linked
Securities will be excluded from several
initial and continued listing criteria; (ii)
the rule text makes clear that Rule
14.11(d)(2)(K)(i)(a)(1) includes a series
of Index Fund Shares approved by the
Commission under Section 19(b)(2) of
the Act; (iii) the existing trading volume
requirement under Rule
14.11(d)(2)(K)(i)(a)(2)(B) is replaced
with a more flexible trading volume
standard; (iv) rules with standards
applicable only to certain index
weightings, including equal-dollar,
modified equal-dollar, capitalizationweighted, and modified capitalizationweighted, are eliminated; and (v) Rule
14.11(d)(2)(K)(i)(a)(2)(G) provides that
securities of a foreign issuer (including
when they underlie ADRs) whose
primary trading market outside the
United States is not a member of the
Intermarket Surveillance Group (‘‘ISG’’)
or a party to a comprehensive
surveillance sharing agreement with the
Exchange will not in the aggregate
represent more than 50% of the dollar
weight of the index, and (a) the
securities of any one such market may
not represent more than 20% of the
dollar weight of the index, and (b) the
securities of any two such markets may
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Fmt 4703
Sfmt 4703
not represent more than 33% of the
dollar weight of the index.
As noted above, the Exchange
believes that these proposed changes are
non-controversial because the changes
would make the Exchange’s listing rules
related to Equity Index-Linked
Securities substantively identical to the
rules of another listing exchange and do
not present any new or novel issues that
have not been previously considered by
the Commission.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act 7 in general and Section
6(b)(5) of the Act 8 in particular in that
it is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to, and
perfect the mechanism of a free and
open market and, in general, to protect
investors and the public interest.
Specifically, the Exchange believes that
the proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to remove
impediments to, and perfect the
mechanism of a free and open market
and, in general, to protect investors and
the public interest.
The proposed changes to Rule
14.11(d)(2)(K)(i) related to the listing of
Equity Index-Linked Securities on the
Exchange remain consistent with the
Act because the proposed changes
generally constitute minor
modifications to the existing listing
requirements that do not significantly
change the scope or applicability of the
listing standards. Further and as noted
throughout this filing, the changes will
make the Exchange’s listing rules for
Equity Index-Linked Securities
substantively identical to those of Arca.
As such, the Exchange believes that
the proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest because there are no
substantive issues raised by this
proposal that were not otherwise
addressed by the Commission in the
approvals of Arca’s listing rules related
to Equity Index-Linked Securities.
7 15
8 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
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Federal Register / Vol. 83, No. 56 / Thursday, March 22, 2018 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purpose of the Act. The Exchange
believes that the proposal will allow the
Exchange to better compete with Arca
by putting the two exchanges on equal
footing as it relates to listing standards
applicable to Equity Index-Linked
Securities.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(6) thereunder.10
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative for 30 days after the
date of its filing. However, pursuant to
Rule 19b–4(f)(6)(iii),12 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange requests that the Commission
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The Exchange
represents that waiver of the 30-day
operative delay will allow the Exchange
to immediately compete with respect to
listing new series of Equity IndexLinked Securities on the Exchange.
Because the proposed rules previously
have been approved by the Commission
for, and are substantively identical to
those of, another listing exchange, the
Commission believes that the proposal
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
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10 17
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12635
promotes competition with respect to
the listing and trading of Equity IndexLinked Securities, and does not believe
that the proposal raises any novel or
unique regulatory issues.13 Therefore,
the Commission believes that waiving
the 30-day operative delay is consistent
with the protection of investors and the
public interest. The Commission hereby
waives the 30-day operative delay and
designates the proposed rule change
operative upon filing.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
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–CboeBZX–2018–020, and
should be submitted on or before April
12, 2018.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Assistant Secretary.
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–
CboeBZX–2018–020 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–CboeBZX–2018–020. 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
13 See
supra note 5.
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).
14 For
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[FR Doc. 2018–05795 Filed 3–21–18; 8:45 am]
BILLING CODE 8011–01–P
Submission for OMB Review;
Comment Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Extension:
Form F–6, SEC File No. 270–270, OMB
Control No. 3235–0292
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget this
request for extension of the previously
approved collection of information
discussed below.
Form F–6 (17 CFR 239.36) is a form
used by foreign companies to register
the offer and sale of American
Depositary Receipts (ADRs) under the
Securities Act of 1933 (15 U.S.C. 77a et
seq.). Form F–6 requires disclosure of
information regarding the terms of the
depository bank, fees charged, and a
description of the ADRs. No special
15 17
E:\FR\FM\22MRN1.SGM
CFR 200.30–3(a)(12).
22MRN1
]]>Agencies
[Federal Register Volume 83, Number 56 (Thursday, March 22, 2018)]
[Notices]
[Pages 12633-12635]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05795]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82895; File No. SR-CboeBZX-2018-020]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Listing Rules Under Rule 14.11(d)(2)(K)(i) Related to Equity Index-
Linked Securities
March 16, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 8, 2018, Cboe BZX Exchange, Inc. (``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)
[[Page 12634]]
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 amend its listing rules under Rule
14.11(d)(2)(K)(i) related to Equity Index-Linked Securities.
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 is submitting this proposal in order to bring its
listing rules related to Equity Index-Linked Securities in line with
those of NYSE Arca, Inc (``Arca'').\5\ Rule 14.11(d) sets forth certain
rules related to the listing and trading of Linked Securities (as
defined therein) on the Exchange and Rule 14.11(d)(2)(K)(i) relates
specifically to the generic listing standards applicable to Equity
Index-Linked Securities.\6\ Specifically, Rule 14.11(d)(2)(K)(i)(a)
provides that the index underlying a series of Equity Index-Linked
Securities must include at least 10 component securities and meet the
requirements of either Rule 14.11(d)(2)(K)(i)(a)(1) or (2). Rule
14.11(d)(2)(K)(i)(a)(1) provides that an index must have been reviewed
and approved for the trading of options or other derivatives by the
Commission under Section 19(b)(2) of the Act and rules thereunder and
the conditions set forth in the Commission's approval order, including
comprehensive surveillance sharing agreements for non-U.S. stocks,
continue to be satisfied. Rule 14.11(d)(2)(K)(i)(a)(2) provides certain
quantitative standards related to the market cap, trading volume,
rebalancing, concentration, and surveillance sharing. As noted above,
where an index has at least 10 component securities and meets the
criteria either Rule 14.11(d)(2)(K)(i)(a)(1) or (2), it meets the
initial listing criteria for Equity Index-Linked Securities. Rule
14.11(d)(2)(K)(i)(b) includes the continued listing criteria for Equity
Index-Linked Securities and provides that the Exchange will consider
suspension and will initiate delisting proceedings where the standards
set forth in Rule 14.11(d)(2)(K)(i)(a) are not continuously met, with
some additional concentration and trading volume criteria.
---------------------------------------------------------------------------
\5\ See Arca Rule 5.2-E(j)(6)(B)(I).
\6\ See Securities Exchange Act Release No. 65225 (August 30,
2011), 76 FR 55148 (September 6, 2011) (SR-BATS-2011-018) (Order
Approving Proposed Rule Change to Adopt Rules for the Qualification,
Listing and Delisting of Companies on the Exchange).
---------------------------------------------------------------------------
The Exchange proposes to amend Rule 14.11(d)(2)(K)(i) related to
Equity Index-Linked Securities in order to make it substantively
identical to the comparable rule on Arca. In particular, the Exchange
is proposing to make certain changes to its rules consistent with
Arca's rule such that: (i) Derivative Securities Products and Linked
Securities will be excluded from several initial and continued listing
criteria; (ii) the rule text makes clear that Rule
14.11(d)(2)(K)(i)(a)(1) includes a series of Index Fund Shares approved
by the Commission under Section 19(b)(2) of the Act; (iii) the existing
trading volume requirement under Rule 14.11(d)(2)(K)(i)(a)(2)(B) is
replaced with a more flexible trading volume standard; (iv) rules with
standards applicable only to certain index weightings, including equal-
dollar, modified equal-dollar, capitalization-weighted, and modified
capitalization-weighted, are eliminated; and (v) Rule
14.11(d)(2)(K)(i)(a)(2)(G) provides that securities of a foreign issuer
(including when they underlie ADRs) whose primary trading market
outside the United States is not a member of the Intermarket
Surveillance Group (``ISG'') or a party to a comprehensive surveillance
sharing agreement with the Exchange will not in the aggregate represent
more than 50% of the dollar weight of the index, and (a) the securities
of any one such market may not represent more than 20% of the dollar
weight of the index, and (b) the securities of any two such markets may
not represent more than 33% of the dollar weight of the index.
As noted above, the Exchange believes that these proposed changes
are non-controversial because the changes would make the Exchange's
listing rules related to Equity Index-Linked Securities substantively
identical to the rules of another listing exchange and do not present
any new or novel issues that have not been previously considered by the
Commission.
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act \7\ in general and Section 6(b)(5) of the Act \8\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to, and perfect the
mechanism of a free and open market and, in general, to protect
investors and the public interest. Specifically, the Exchange believes
that the proposal is designed to prevent fraudulent and manipulative
acts and practices, to promote just and equitable principles of trade,
to remove impediments to, and perfect the mechanism of a free and open
market and, in general, to protect investors and the public interest.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
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The proposed changes to Rule 14.11(d)(2)(K)(i) related to the
listing of Equity Index-Linked Securities on the Exchange remain
consistent with the Act because the proposed changes generally
constitute minor modifications to the existing listing requirements
that do not significantly change the scope or applicability of the
listing standards. Further and as noted throughout this filing, the
changes will make the Exchange's listing rules for Equity Index-Linked
Securities substantively identical to those of Arca.
As such, the Exchange believes that the proposal is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest because
there are no substantive issues raised by this proposal that were not
otherwise addressed by the Commission in the approvals of Arca's
listing rules related to Equity Index-Linked Securities.
[[Page 12635]]
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange believes that
the proposal will allow the Exchange to better compete with Arca by
putting the two exchanges on equal footing as it relates to listing
standards applicable to Equity Index-Linked Securities.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative for 30 days after the date of its filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that the Commission waive the 30-day operative delay so that the
proposal may become operative immediately upon filing. The Exchange
represents that waiver of the 30-day operative delay will allow the
Exchange to immediately compete with respect to listing new series of
Equity Index-Linked Securities on the Exchange. Because the proposed
rules previously have been approved by the Commission for, and are
substantively identical to those of, another listing exchange, the
Commission believes that the proposal promotes competition with respect
to the listing and trading of Equity Index-Linked Securities, and does
not believe that the proposal raises any novel or unique regulatory
issues.\13\ Therefore, the Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. The Commission hereby waives the 30-day operative
delay and designates the proposed rule change operative upon
filing.\14\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ See supra note 5.
\14\ 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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule change should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CboeBZX-2018-020 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-CboeBZX-2018-020. 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-CboeBZX-2018-020, and should be
submitted on or before April 12, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-05795 Filed 3-21-18; 8:45 am]
BILLING CODE 8011-01-P
