Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving a Proposed Rule Change To Provide for the Listing of Exchange Traded Products With No Component NMS Stock Listed on the Exchange, Delete Obsolete Listing Rules for Exchange Traded Products and Amend Rules Regarding Unlisted Trading Privileges, 50980-50981 [2018-21907]

Download as PDF 50980 Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices The Commission asks that commenters address the sufficiency and merit of the Exchange’s statements in support of the proposal, in addition to any other comments they may wish to submit about the proposed rule change. Interested persons are invited to submit written data, views, and arguments concerning the proposed rule change, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: amozie on DSK3GDR082PROD with NOTICES1 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– MIAX–2018–25 on the subject line. Paper Comments • Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File Number SR–MIAX–2018–25. 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 for consideration of a particular proposal by an SRO. See Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). VerDate Sep<11>2014 21:20 Oct 09, 2018 Jkt 247001 submissions should refer to File Number SR–MIAX–2018–25 and should be submitted on or before October 31, 2018. Rebuttal comments should be submitted by November 14, 2018. VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(3)(C) of the Act,47 that File Number SR–MIAX–2018–25 be and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.48 Eduardo A. Aleman, Assitant Secretary. [FR Doc. 2018–21921 Filed 10–9–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–84351; File No. SR–NYSE– 2018–30] Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving a Proposed Rule Change To Provide for the Listing of Exchange Traded Products With No Component NMS Stock Listed on the Exchange, Delete Obsolete Listing Rules for Exchange Traded Products and Amend Rules Regarding Unlisted Trading Privileges the proposed rule change. On August 16, 2018, the Commission extended the time period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to approve or disapprove the proposed rule change.5 On August 23, 2018, the Exchange submitted Amendment No. 2 to the proposed rule change.6 The Commission received no comment letters on the proposal. This order approves the proposed rule change. II. Description of the Proposed Rule Change As described in more detail in the Notice,7 the Exchange proposes to: (1) Provide for the listing of certain ETPs, provided that an ETP meets the applicable requirements of NYSE Rules 5P and 8P and does not have any component NMS Stock that is listed on the Exchange or is based on, or represents an interest in, an underlying index or reference asset that includes an NMS Stock listed on the Exchange; 8 (2) delete a sentence in NYSE Rule 5.1(a)(1) that is no longer relevant given the Exchange’s addition of Section 303A to the Listed Company Manual,9 which requires all NYSE-listed companies, including any ETPs listed on the Exchange, to comply with Section 303A of the Listed Company Manual; (3) delete certain listing rules that would be superseded by the ETP listing and trading requirements proposed in NYSE Rules 5P and 8P; (4) delete all references in NYSE Rules 5P and 8P that imply October 3, 2018. I. Introduction On June 15, 2018, the New York Stock Exchange LLC (‘‘Exchange’’ or ‘‘NYSE’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to provide for the listing of exchange traded products (‘‘ETPs’’) that do not have any component NMS Stock 3 listed on the Exchange, delete obsolete listing rules for ETPs, and amend rules regarding unlisted trading privileges (‘‘UTP’’). The proposed rule change was published for comment in the Federal Register on July 6, 2018.4 On July 24, 2018, the Exchange submitted partial Amendment No. 1 to 47 15 U.S.C. 78s(b)(3)(C). CFR 200.30–3(a)(57) and (58). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 NMS Stock is defined in Rule 600 of Regulation NMS, 17 CFR 242.600(b)(47). 4 See Securities Exchange Act Release No. 83560 (June 29, 2018), 83 FR 31585 (‘‘Notice’’). 48 17 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 5 See Securities Exchange Act Release No. 83860, 83 FR 42534 (August 22, 2018). 6 Amendment No. 2 replaced and superseded the original filing, as modified by partial Amendment No. 1, in its entirety. In Amendment No. 2, the Exchange: (i) Provided background information regarding its Pillar platform and clarified that it would not be listing ETPs on its Pillar platform at this time but that it would announce via trader update when it plans to do so; (ii) designated as ‘‘Reserve’’ certain sections of the Listed Company Manual which rules are being deleted by this proposal; (iii) represented that the Commission approved Exchange listing rules that are substantially identical to those on NYSE Arca, Inc. (‘‘NYSE Arca’’) for certain ETPs; and (iv) made technical changes to the rule text and proposal. Because Amendment No. 2 does not materially alter the substance of the proposed rule change or raise unique or novel regulatory issues under the Act, it is not subject to notice and comment. Amendment No. 2 is available at: https://www.sec.gov/ comments/sr-nyse-2018-30/nyse201830-4274809173136.pdf. 7 See Notice, supra note 4. 8 The Exchange represents that its proposed rules for the qualification, listing, and trading of these products are substantially identical (other than certain non-substantive and technical amendments) as the rules of NYSE Arca and the Exchange’s other affiliates, including NYSE American LLC (‘‘NYSE American’’). 9 Section 303A implements the requirements of Rules 10A–3 and 10C–1 under the Act. E:\FR\FM\10OCN1.SGM 10OCN1 Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices that the initial and continued listing standards contained in those rules may apply to the trading pursuant to UTP of such ETPs, and make related changes; and (5) amend NYSE Rule 5.1(a)(2) relating to ETPs trading pursuant to UTP to delete the requirement that the Exchange file with the Commission a Form 19b–4(e) with respect to each ETP it trades by UTP, and to make clear that the Exchange would halt trading in an ETP trading pursuant to UTP as provided for in NYSE Rule 7.18. amozie on DSK3GDR082PROD with NOTICES1 such ETPs conforms NYSE’s rules to the corresponding provisions of the rules of NYSE National, Inc. (‘‘NYSE National’’).14 Additionally, the Commission believes that the deletion of listing rules that would be superseded by the proposed rule change, the proposed amendments to NYSE Rules 5.1(a), and technical conforming changes are appropriate and consistent with Section 6(b)(5) of the Act. These changes would eliminate language that is no longer relevant and modify the Exchange rules III. Discussion and Commission to be more precise, thereby leading to Findings greater clarity for Exchange members, After careful review, the Commission regulators, investors, and the general finds that the proposed rule change, as public. amended, is consistent with the In approving the proposed rule requirements of the Act and the rules change, the Commission also relies and regulations thereunder applicable to upon the Exchange’s representation a national securities exchange.10 In that: (1) Listed ETPs would be subject to particular, the Commission finds that the existing trading surveillances the proposed rule change is consistent administered by the Exchange for ETPs with Section 6(b) of the Act,11 in trading UTP, as well as cross-market general, and furthers the objectives of surveillances administered by the Section 6(b)(5) of the Act,12 in Financial Industry Regulatory Authority particular, in that it is designed to (‘‘FINRA’’) on behalf of the Exchange, prevent fraudulent and manipulative and (2) the initial and continued listing acts and practices, to promote just and reviews of ETPs listed on the Exchange equitable principles of trade, to remove will be conducted in the same manner impediments to and perfect the as they are on NYSE’s affiliated mechanism of a free and open market exchange, NYSE Arca.15 Further, the and a national market system, and, in Exchange or FINRA, on behalf of the general, to protect investors and the Exchange, or both, will communicate as public interest. needed regarding trading in ETPs, as The Commission believes that the well as certain other securities and Exchange’s proposed listing standards for ETPs 13 do not raise any novel issues, financial instruments underlying such ETPs, with other markets and other as they are consistent with the rules of other national securities exchanges. The entities that are members of the Intermarket Surveillance Group (‘‘ISG’’). proposed rules for the qualification, The Exchange or FINRA, on behalf of listing, and trading of ETPs are the Exchange, or both, may obtain substantially identical (other than trading information regarding trading in certain non-substantive and technical ETPs and financial instruments from changes) to the rules of NYSE Arca and such markets and other entities. In NYSE American. Moreover, the addition, the Exchange may obtain Exchange’s proposal to make clear that information regarding trading in ETPs, the initial and continued listing as well as certain other securities and standards in Rules 5P and 8P do not financial instruments underlying such apply to the trading pursuant to UTP of ETPs from markets and other entities 10 In approving this proposed rule change, the that are members of ISG or with which Commission has considered the proposed rule’s the Exchange has in place a impact on efficiency, competition, and capital comprehensive surveillance sharing formation. See 15 U.S.C. 78c(f). agreement.16 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(5). The Commission therefore finds that 13 The proposed listing standards of Rules 5P and the proposed rule change, as modified 8P: (1) Provide for the listing of certain ETPs, by Amendment No. 2, is consistent provided that an ETP meets the applicable with, and furthers the objectives of, requirements of NYSE Rules 5P and 8P and does Section 6(b)(5) of the Act.17 not have any component NMS Stock that is listed on the Exchange or is based on, or represents an interest in, an underlying index or reference asset that includes an NMS Stock listed on the Exchange; (2) delete a sentence in NYSE Rule 5.1(a)(1) that is no longer relevant given the Exchange’s addition of Section 303A to the Listed Company Manual; and (3) delete all references in NYSE Rules 5P and 8P that imply that the initial and continued listing standards contained in those rules may apply to the trading pursuant to UTP of such ETPs. VerDate Sep<11>2014 21:20 Oct 09, 2018 Jkt 247001 14 In addition, the Commission believes that the proposed changes to NYSE Rule 5.1(a)(2) would further harmonize the Exchange’s rules applicable to ETPs traded on a UTP basis with the rules of NYSE National. 15 See Notice, supra note 4, at 31587–31588. 16 See id. at 31587. 17 15 U.S.C. 78f(b)(5). PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 50981 IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,18 that the proposed rule change (SR–NYSE–2018– 30), as modified by Amendment No. 2, be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–21907 Filed 10–9–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–84352; File No. SR–Phlx– 2018–61] Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend, Reorganize and Enhance Membership, Registration and Qualification Rules and To Make Conforming Changes to Certain Other Rules October 3, 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 September 27, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I and II, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend, reorganize and enhance its membership, registration and qualification rules and to make conforming changes to certain other rules. The text of the proposed rule change is available on the Exchange’s website at https://nasdaqphlx.cchwallstreet.com/, at the principal office of the Exchange, and at the Commission’s Public Reference Room. 18 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 19 17 E:\FR\FM\10OCN1.SGM 10OCN1

Agencies

[Federal Register Volume 83, Number 196 (Wednesday, October 10, 2018)]
[Notices]
[Pages 50980-50981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21907]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84351; File No. SR-NYSE-2018-30]


Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Approving a Proposed Rule Change To Provide for the Listing of Exchange 
Traded Products With No Component NMS Stock Listed on the Exchange, 
Delete Obsolete Listing Rules for Exchange Traded Products and Amend 
Rules Regarding Unlisted Trading Privileges

October 3, 2018.

I. Introduction

    On June 15, 2018, the New York Stock Exchange LLC (``Exchange'' or 
``NYSE'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to provide for the listing of exchange traded 
products (``ETPs'') that do not have any component NMS Stock \3\ listed 
on the Exchange, delete obsolete listing rules for ETPs, and amend 
rules regarding unlisted trading privileges (``UTP''). The proposed 
rule change was published for comment in the Federal Register on July 
6, 2018.\4\ On July 24, 2018, the Exchange submitted partial Amendment 
No. 1 to the proposed rule change. On August 16, 2018, the Commission 
extended the time period within which to approve the proposed rule 
change, disapprove the proposed rule change, or institute proceedings 
to determine whether to approve or disapprove the proposed rule 
change.\5\ On August 23, 2018, the Exchange submitted Amendment No. 2 
to the proposed rule change.\6\ The Commission received no comment 
letters on the proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ NMS Stock is defined in Rule 600 of Regulation NMS, 17 CFR 
242.600(b)(47).
    \4\ See Securities Exchange Act Release No. 83560 (June 29, 
2018), 83 FR 31585 (``Notice'').
    \5\ See Securities Exchange Act Release No. 83860, 83 FR 42534 
(August 22, 2018).
    \6\ Amendment No. 2 replaced and superseded the original filing, 
as modified by partial Amendment No. 1, in its entirety. In 
Amendment No. 2, the Exchange: (i) Provided background information 
regarding its Pillar platform and clarified that it would not be 
listing ETPs on its Pillar platform at this time but that it would 
announce via trader update when it plans to do so; (ii) designated 
as ``Reserve'' certain sections of the Listed Company Manual which 
rules are being deleted by this proposal; (iii) represented that the 
Commission approved Exchange listing rules that are substantially 
identical to those on NYSE Arca, Inc. (``NYSE Arca'') for certain 
ETPs; and (iv) made technical changes to the rule text and proposal. 
Because Amendment No. 2 does not materially alter the substance of 
the proposed rule change or raise unique or novel regulatory issues 
under the Act, it is not subject to notice and comment. Amendment 
No. 2 is available at: https://www.sec.gov/comments/sr-nyse-2018-30/nyse201830-4274809-173136.pdf.
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    As described in more detail in the Notice,\7\ the Exchange proposes 
to: (1) Provide for the listing of certain ETPs, provided that an ETP 
meets the applicable requirements of NYSE Rules 5P and 8P and does not 
have any component NMS Stock that is listed on the Exchange or is based 
on, or represents an interest in, an underlying index or reference 
asset that includes an NMS Stock listed on the Exchange; \8\ (2) delete 
a sentence in NYSE Rule 5.1(a)(1) that is no longer relevant given the 
Exchange's addition of Section 303A to the Listed Company Manual,\9\ 
which requires all NYSE-listed companies, including any ETPs listed on 
the Exchange, to comply with Section 303A of the Listed Company Manual; 
(3) delete certain listing rules that would be superseded by the ETP 
listing and trading requirements proposed in NYSE Rules 5P and 8P; (4) 
delete all references in NYSE Rules 5P and 8P that imply

[[Page 50981]]

that the initial and continued listing standards contained in those 
rules may apply to the trading pursuant to UTP of such ETPs, and make 
related changes; and (5) amend NYSE Rule 5.1(a)(2) relating to ETPs 
trading pursuant to UTP to delete the requirement that the Exchange 
file with the Commission a Form 19b-4(e) with respect to each ETP it 
trades by UTP, and to make clear that the Exchange would halt trading 
in an ETP trading pursuant to UTP as provided for in NYSE Rule 7.18.
---------------------------------------------------------------------------

    \7\ See Notice, supra note 4.
    \8\ The Exchange represents that its proposed rules for the 
qualification, listing, and trading of these products are 
substantially identical (other than certain non-substantive and 
technical amendments) as the rules of NYSE Arca and the Exchange's 
other affiliates, including NYSE American LLC (``NYSE American'').
    \9\ Section 303A implements the requirements of Rules 10A-3 and 
10C-1 under the Act.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change, as amended, is consistent with the requirements of the Act and 
the rules and regulations thereunder applicable to a national 
securities exchange.\10\ In particular, the Commission finds that the 
proposed rule change is consistent with Section 6(b) of the Act,\11\ in 
general, and furthers the objectives of Section 6(b)(5) of the Act,\12\ 
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 a national market system, and, in 
general, to protect investors and the public interest.
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    \10\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the Exchange's proposed listing 
standards for ETPs \13\ do not raise any novel issues, as they are 
consistent with the rules of other national securities exchanges. The 
proposed rules for the qualification, listing, and trading of ETPs are 
substantially identical (other than certain non-substantive and 
technical changes) to the rules of NYSE Arca and NYSE American. 
Moreover, the Exchange's proposal to make clear that the initial and 
continued listing standards in Rules 5P and 8P do not apply to the 
trading pursuant to UTP of such ETPs conforms NYSE's rules to the 
corresponding provisions of the rules of NYSE National, Inc. (``NYSE 
National'').\14\
---------------------------------------------------------------------------

    \13\ The proposed listing standards of Rules 5P and 8P: (1) 
Provide for the listing of certain ETPs, provided that an ETP meets 
the applicable requirements of NYSE Rules 5P and 8P and does not 
have any component NMS Stock that is listed on the Exchange or is 
based on, or represents an interest in, an underlying index or 
reference asset that includes an NMS Stock listed on the Exchange; 
(2) delete a sentence in NYSE Rule 5.1(a)(1) that is no longer 
relevant given the Exchange's addition of Section 303A to the Listed 
Company Manual; and (3) delete all references in NYSE Rules 5P and 
8P that imply that the initial and continued listing standards 
contained in those rules may apply to the trading pursuant to UTP of 
such ETPs.
    \14\ In addition, the Commission believes that the proposed 
changes to NYSE Rule 5.1(a)(2) would further harmonize the 
Exchange's rules applicable to ETPs traded on a UTP basis with the 
rules of NYSE National.
---------------------------------------------------------------------------

    Additionally, the Commission believes that the deletion of listing 
rules that would be superseded by the proposed rule change, the 
proposed amendments to NYSE Rules 5.1(a), and technical conforming 
changes are appropriate and consistent with Section 6(b)(5) of the Act. 
These changes would eliminate language that is no longer relevant and 
modify the Exchange rules to be more precise, thereby leading to 
greater clarity for Exchange members, regulators, investors, and the 
general public.
    In approving the proposed rule change, the Commission also relies 
upon the Exchange's representation that: (1) Listed ETPs would be 
subject to the existing trading surveillances administered by the 
Exchange for ETPs trading UTP, as well as cross-market surveillances 
administered by the Financial Industry Regulatory Authority (``FINRA'') 
on behalf of the Exchange, and (2) the initial and continued listing 
reviews of ETPs listed on the Exchange will be conducted in the same 
manner as they are on NYSE's affiliated exchange, NYSE Arca.\15\ 
Further, the Exchange or FINRA, on behalf of the Exchange, or both, 
will communicate as needed regarding trading in ETPs, as well as 
certain other securities and financial instruments underlying such 
ETPs, with other markets and other entities that are members of the 
Intermarket Surveillance Group (``ISG''). The Exchange or FINRA, on 
behalf of the Exchange, or both, may obtain trading information 
regarding trading in ETPs and financial instruments from such markets 
and other entities. In addition, the Exchange may obtain information 
regarding trading in ETPs, as well as certain other securities and 
financial instruments underlying such ETPs from markets and other 
entities that are members of ISG or with which the Exchange has in 
place a comprehensive surveillance sharing agreement.\16\
---------------------------------------------------------------------------

    \15\ See Notice, supra note 4, at 31587-31588.
    \16\ See id. at 31587.
---------------------------------------------------------------------------

    The Commission therefore finds that the proposed rule change, as 
modified by Amendment No. 2, is consistent with, and furthers the 
objectives of, Section 6(b)(5) of the Act.\17\
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\18\ that the proposed rule change (SR-NYSE-2018-30), as modified 
by Amendment No. 2, be, and hereby is, approved.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21907 Filed 10-9-18; 8:45 am]
 BILLING CODE 8011-01-P
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