Submission for OMB Review; Comment Request, 53127-53128 [2018-22781]
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Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices
amozie on DSK3GDR082PROD with NOTICES1
under Nasdaq Rule 5735(b)(1) 22 and as
otherwise provided in the current
proposal, the Fund and the Shares
would continue to comply with the
requirements applicable to Managed
Fund Shares under Nasdaq Rule 5735.
The Commission also finds that the
proposal is consistent with Section
11A(a)(1)(C)(iii) of the Act,23 which sets
forth Congress’s finding that it is in the
public interest and appropriate for the
protection of investors and the
maintenance of fair and orderly markets
to assure the availability to brokers,
dealers, and investors of information
with respect to quotations for and
transactions in securities. As proposed,
intra-day executable price quotations for
the Senior Loans, fixed income
securities, and other assets (including
any Received Instruments and Defaulted
Loans) held by the Fund would be
available from major broker-dealer firms
and/or market data vendors (and/or, if
applicable, on the exchange on which
they are traded). Intra-day price
information for the holdings of the Fund
would be available through subscription
services, such as Markit, Bloomberg,
and Thomson Reuters, which can be
accessed by authorized participants and
other investors, and/or from
independent pricing services.
On each business day, before
commencement of trading in Shares in
the Regular Market Session on the
Exchange, the Fund would continue to
disclose on www.ftportfolios.com the
Disclosed Portfolio (as defined in
Nasdaq Rule 5735(c)(2)) that will form
the basis for the Fund’s calculation of
net asset value (‘‘NAV’’) at the end of
the business day. NAV per Share would
continue to be calculated daily, and the
NAV and the Disclosed Portfolio would
continue to be made available to all
market participants at the same time.
Further, the Intraday Indicative Value
(as defined in Nasdaq Rule 5735(c)(3))
for the Fund would continue to be
widely disseminated by one or more
major market data vendors and broadly
displayed at least every 15 seconds
during the Regular Market Session.
In support of this proposal, the
Exchange also represents that trading in
the Shares will be subject to the existing
trading surveillances, administered by
both the Exchange and the Financial
22 The Fund would continue to generally satisfy
the generic fixed income listing requirements in
Nasdaq Rule 5705(b)(4) on a continuous basis
measured at the time of purchase, subject to certain
exceptions and modifications described in the Prior
Notice and the current proposal. In particular, the
Fund may not meet the criteria in Nasdaq Rules
5705(b)(4)(A)(i) and 5705(b)(4)(A)(iii), and the Prior
Notice permitted a modification to the criteria
under Nasdaq Rule 5705(b)(4)(A)(vi).
23 15 U.S.C. 78k–1(a)(1)(C)(iii).
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Industry Regulatory Authority
(‘‘FINRA’’) on behalf of the Exchange,
which are designed to detect violations
of Exchange rules and applicable federal
securities laws,24 and these procedures
are adequate to properly monitor
Exchange trading of the Shares in all
trading sessions and to deter and detect
violations of Exchange rules and
applicable federal securities laws.
FINRA, on behalf of the Exchange, and
the Exchange would communicate as
needed regarding trading in the Shares
and the exchange-listed instruments
held by the Fund (including exchangelisted Equity-Based Received
Instruments (if any) and any other
exchange-listed equity securities) with
other markets and other entities that are
members of ISG. FINRA and the
Exchange both may obtain trading
information regarding trading in the
Shares and such exchange-listed
instruments held by the Fund from
markets and other entities that are
members of ISG, which include
securities exchanges. The Exchange may
also obtain information regarding
trading in the Shares and such
exchange-listed instruments held by the
Fund from markets and other entities
with which it has in place a
comprehensive surveillance sharing
agreement. Moreover, FINRA, on behalf
of the Exchange, would be able to
access, as needed, trade information for
certain fixed income securities held by
the Fund reported to FINRA’s Trade
Reporting and Compliance Engine.
The Exchange represents that all
statements and representations made in
the filing regarding (a) the description of
the portfolio or reference assets, (b)
limitations on portfolio holdings or
reference assets, (c) dissemination and
availability of the reference asset or
intraday indicative values, or (d) the
applicability of Exchange listing rules
shall constitute continued listing
requirements for listing the Shares on
the Exchange. In addition, the issuer has
represented to the Exchange that it will
advise the Exchange of any failure by
the Fund to comply with the continued
listing requirements, and, pursuant to
its obligations under Section 19(g)(1) of
the Act, the Exchange will monitor 25 for
24 The Exchange states that FINRA surveils
trading on the Exchange pursuant to a regulatory
services agreement, and the Exchange is responsible
for FINRA’s performance under this regulatory
services agreement.
25 The Commission notes that certain proposals
for the listing and trading of exchange-traded
products include a representation that the exchange
will ‘‘surveil’’ for compliance with the continued
listing requirements. See, e.g., Securities Exchange
Act Release No. 77499 (April 1, 2016), 81 FR 20428,
20432 (April 7, 2016) (SR–BATS–2016–04). In the
context of this representation, it is the
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53127
compliance with the continued listing
requirements. If the Fund is not in
compliance with the applicable listing
requirements, the Exchange will
commence delisting procedures under
the Nasdaq 5800 Series.
This approval order is based on all of
the Exchange’s representations,
including those set forth above and in
Amendment No. 1.
For the foregoing reasons, the
Commission finds that the proposed
rule change, as modified by Amendment
No. 1, is consistent with Section 6(b)(5)
of the Act 26 and Section
11A(a)(1)(C)(iii) of the Act 27 and the
rules and regulations thereunder
applicable to a national securities
exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,28 that the
proposed rule change (SR–NASDAQ–
2018–050), as modified by Amendment
No. 1 be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–22775 Filed 10–18–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–348, OMB Control No.
3235–0394]
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:
Rule 15g–5
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
Commission’s view that ‘‘monitor’’ and ‘‘surveil’’
both mean ongoing oversight of compliance with
the continued listing requirements. Therefore, the
Commission does not view ‘‘monitor’’ as a more or
less stringent obligation than ‘‘surveil’’ with respect
to the continued listing requirements.
26 15 U.S.C. 78f(b)(5).
27 15 U.S.C. 78k–1(a)(1)(C)(iii).
28 15 U.S.C. 78s(b)(2).
29 17 CFR 200.30–3(a)(12).
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Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices
collection of information provided for in
Rule 15g–5—Disclosure of
Compensation of Associated Persons in
Connection with Penny Stock
Transactions—(17 CFR 240.15g–5)
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.).
Rule 15g–5 requires brokers and
dealers to disclose to customers the
amount of compensation to be received
by their sales agents in connection with
penny stock transactions. The purpose
of the rule is to increase the level of
disclosure to investors concerning
penny stocks generally and specific
penny stock transactions.
The Commission estimates that
approximately 195 broker-dealers will
spend an average of 87 hours annually
to comply with the rule. Thus, the total
compliance burden is approximately
16,965 burden-hours per year.
Rule 15g–5 contains record retention
requirements. Compliance with the rule
is mandatory.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Charles
Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington,
DC 20549, or by sending an email to
PRA_Mailbox@sec.gov. Comments must
be submitted within 30 days of this
notice.
Dated: October 15, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–22781 Filed 10–18–18; 8:45 am]
amozie on DSK3GDR082PROD with NOTICES1
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84428; File No. SR–NSCC–
2018–008]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Clearing
Agency Policy on Capital
Requirements and the Clearing Agency
Capital Replenishment Plan
October 15, 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 October
4, 2018, National Securities Clearing
Corporation (‘‘NSCC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the clearing agency. NSCC filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(4) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change consists of
amendments to (i) the Clearing Agency
Policy on Capital Requirements
(‘‘Capital Policy’’ or ‘‘Policy’’) of NSCC
and its affiliates, The Depository Trust
Company (‘‘DTC’’) and Fixed Income
Clearing Corporation (‘‘FICC,’’ and
together with DTC and NSCC, the
‘‘Clearing Agencies’’); and (ii) the
Clearing Agency Capital Replenishment
Plan (‘‘Capital Replenishment Plan’’ or
‘‘Plan’’) of the Clearing Agencies. In
particular, the proposed revisions to the
Capital Policy and Capital
Replenishment Plan would (1) correct
typographical errors and make other
technical revisions to correct and
simplify statements in the Policy and
Plan; (2) replace references in the Policy
and Plan to the ‘‘Credit Risk Capital
Requirement’’ with the ‘‘Corporate
Contribution;’’ and (3) update references
in the Policy to the Recovery & Winddown Plans of each of the Clearing
Agencies, which were recently adopted
by the Clearing Agencies, as described
in greater detail below.
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)(4).
2 17
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II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency 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
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
The Clearing Agencies are proposing
to revise the Capital Policy and Capital
Replenishment Plan, which were
adopted by the Clearing Agencies in
July 2017 5 and are maintained by the
Clearing Agencies in compliance with
Rule 17Ad–22(e)(15) under the Act.6
Overview of the Capital Policy and
Capital Replenishment Plan
The Capital Policy sets forth the
manner in which each Clearing Agency
identifies, monitors, and manages its
general business risk with respect to the
requirement to hold sufficient liquid net
assets (‘‘LNA’’) funded by equity to
cover potential general business losses
so the Clearing Agency can continue
operations and services as a going
concern if such losses materialize.7 The
amount of LNA funded by equity to be
held by each of the Clearing Agencies
for this purpose is defined in the Policy
as the General Business Risk Capital
Requirement. The Policy provides that
the General Business Risk Requirement
is calculated for each Clearing Agency
as the greatest of three separate
calculations—(1) an amount based on
that Clearing Agency’s general business
risk profile (‘‘Risk-Based Capital
Requirement’’), (2) an amount based on
the time estimated to execute a recovery
or orderly wind-down of the critical
operations of that Clearing Agency
(‘‘Recovery/Wind-down Capital
Requirement’’), and (3) an amount based
on an analysis of that Clearing Agency’s
estimated operating expenses for a six
month period (‘‘Operating Expense
Capital Requirement’’). On an annual
basis, each of these three capital
5 See Securities Exchange Act Release No. 81105
(July 7, 2017), 82 FR 32399 (July 13, 2017) (SR–
DTC–2017–003, SR–FICC–2017–007, SR–NSCC–
2017–004).
6 17 CFR 240.17Ad–22(e)(15).
7 Id.
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Agencies
[Federal Register Volume 83, Number 203 (Friday, October 19, 2018)]
[Notices]
[Pages 53127-53128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22781]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-348, OMB Control No. 3235-0394]
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:
Rule 15g-5
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of the
previously approved
[[Page 53128]]
collection of information provided for in Rule 15g-5--Disclosure of
Compensation of Associated Persons in Connection with Penny Stock
Transactions--(17 CFR 240.15g-5) under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.).
Rule 15g-5 requires brokers and dealers to disclose to customers
the amount of compensation to be received by their sales agents in
connection with penny stock transactions. The purpose of the rule is to
increase the level of disclosure to investors concerning penny stocks
generally and specific penny stock transactions.
The Commission estimates that approximately 195 broker-dealers will
spend an average of 87 hours annually to comply with the rule. Thus,
the total compliance burden is approximately 16,965 burden-hours per
year.
Rule 15g-5 contains record retention requirements. Compliance with
the rule is mandatory.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
The public may view background documentation for this information
collection at the following website: www.reginfo.gov. Comments should
be directed to: (i) Desk Officer for the Securities and Exchange
Commission, Office of Information and Regulatory Affairs, Office of
Management and Budget, Room 10102, New Executive Office Building,
Washington, DC 20503 or by sending an email to:
[email protected]; and (ii) Charles Riddle, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o
Candace Kenner, 100 F Street NE, Washington, DC 20549, or by sending an
email to [email protected]. Comments must be submitted within 30 days
of this notice.
Dated: October 15, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-22781 Filed 10-18-18; 8:45 am]
BILLING CODE 8011-01-P