Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Granting Approval to a Proposed Rule Change, as Modified by Amendment No. 1, To Establish How the BZX Official Closing Price Would Be Determined for BZX-Listed Securities, 63932-63933 [2018-26834]
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63932
Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
2. Rule 17d–3 under the Act provides
an exemption from section 17(d) and
rule 17d–1 to permit open-end
investment companies to enter into
distribution arrangements pursuant to
rule 12b–1 under the Act. Applicants
request an order under section 17(d) and
rule 17d–1 under the Act to the extent
necessary to permit the Fund to impose
asset-based distribution and/or service
fees. Applicants have agreed to comply
with rules 12b–1 and 17d–3 as if those
rules applied to closed-end investment
companies, which they believe will
resolve any concerns that might arise in
connection with a Fund financing the
distribution of its shares through assetbased distribution fees.
3. For the reasons stated above,
applicants submit that the exemptions
requested under section 6(c) are
necessary and appropriate in the public
interest and are consistent with the
protection of investors and the purposes
fairly intended by the policy and
provisions of the Act. Applicants further
submit that the relief requested
pursuant to section 23(c)(3) will be
consistent with the protection of
investors and will insure that applicants
do not unfairly discriminate against any
holders of the class of securities to be
purchased. Finally, applicants state that
the Funds’ imposition of asset-based
distribution and/or service fees is
consistent with the provisions, policies
and purposes of the Act and does not
involve participation on a basis different
from or less advantageous than that of
other participants.
Applicants’ Condition
amozie on DSK3GDR082PROD with NOTICES1
Applicants agree that any order
granting the requested relief will be
subject to the following condition:
Each Fund relying on the order will
comply with the provisions of rules 6c–
10, 12b–1, 17d–3, 18f–3, 22d–1, and,
where applicable, 11a–3 under the Act,
as amended from time to time, as if
those rules applied to closed-end
management investment companies,
and will comply with the FINRA Sales
Charge Rule, as amended from time to
time, as if that rule applied to all closedend management investment
companies.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–26797 Filed 12–11–18; 8:45 am]
BILLING CODE P
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18:39 Dec 11, 2018
Jkt 247001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84738; File No. SR–
CboeBZX–2018–079]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Order Granting
Approval to a Proposed Rule Change,
as Modified by Amendment No. 1, To
Establish How the BZX Official Closing
Price Would Be Determined for BZXListed Securities
December 6, 2018.
I. Introduction
On October 18, 2018, Cboe BZX
Exchange, Inc. (the ‘‘Exchange’’ or
‘‘BZX’’) 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 amend how the
BZX Official Closing price would be
determined for BZX-listed securities
that are not corporate securities if the
Exchange does not conduct a Closing
Auction or if a Closing Auction trade is
less than a round lot.3 The proposed
rule change was published for comment
in the Federal Register on November 5,
2018.4 The Commission received no
comments on the proposal. This order
approves the proposed rule change, as
modified by Amendment No. 1.
II. Description of the Proposal, as
Modified by Amendment No. 1
The Exchange proposes to amend
BZX Rule 11.23(c)(2)(B) to change how
it would determine the BZX Official
Closing Price 5 for an Exchange-listed
security that is not a corporate security
(‘‘Derivative Securities Product’’) if the
Exchange does not conduct a Closing
Auction or if a Closing Auction trade is
less than a round lot. Current Rule
11.23(c)(2)(B) provides that in the event
that there is no Closing Auction for a
BZX-listed security, the BZX Official
Closing Price will be the price of the
Final Last Sale Eligible Trade.6 The
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 On October 29, 2018, the Exchange filed
Amendment No. 1 to the proposed rule change to
specify the date upon which the Exchange’s
President (or designee) approved the proposed rule
change, pursuant to delegated authority.
4 See Securities Exchange Act Release No. 84507
(October 30, 2018), 83 FR 55435 (‘‘Notice’’).
5 See BZX Rule 11.23(a)(3) (defining the term
‘‘BZX Official Closing Price’’ as the price
disseminated to the consolidated tape as the market
center closing trade).
6 As defined in BZX Rule 11.23(a)(9), the term
‘‘Final Last Sale Eligible Trade’’ means the last
trade occurring during Regular Trading Hours on
the Exchange if the trade was executed within the
last one second prior to either the Closing Auction
2 17
PO 00000
Frm 00108
Fmt 4703
Sfmt 4703
Exchange proposes to amend this
provision to provide that for Derivative
Securities Products only, in the event
there is no Closing Auction, or if less
than a round lost was executed in the
Closing Auction, the BZX Official
Closing Price will depend upon when
the Final Last Sale Eligible Trade in that
security occurred.
Specifically, if the Final Last Sale
Eligible Trade occurred within the final
five minutes before the end of Regular
Trading Hours, the Final Last Sale
Eligible Trade will be the BZX Official
Closing Price.7 However, if such trade
occurred prior to the last five minutes
before the end of Regular Trading
Hours, the time-weighted average price
of the NBBO midpoint measured over
the last five minutes before the end of
Regular Trading Hours will be the BZX
Official Closing Price.8
If the BZX Official Closing Price
cannot be determined under proposed
BZX Rule 11.23(c)(2)(B)(i) or (ii), the
Final Last Sale Eligible Trade will be the
BZX Official Closing Price.9 If there is
no qualifying trade for the current day,
the BZX Official Closing Price from the
previous trading day will be used.10
The Exchange states that it will
implement the proposed rule change as
soon as is practicable after the
Commission’s approval and will
announce the implementation date via
Trade Desk Notice.11
III. Discussion and Commission
Findings
The Commission finds that the
proposed rule change, as modified by
Amendment No. 1, is consistent with
the requirements of Section 6 of the
Act 12 and the rules and regulations
thereunder applicable to a national
securities exchange.13 In particular, the
Commission finds that the proposed
rule change is consistent with Sections
6(b)(5) the Act,14 which requires, among
other things, that the rules of a national
securities exchange be designed to
or, for Halt Auctions, trading in the security being
halted. Where the trade was not executed within
the last one second, the last trade reported to the
consolidated tape received by BZX Exchange during
Regular Trading Hours and, where applicable, prior
to trading in the security being halted will be used.
If there is no qualifying trade for the current day,
the BZX Official Closing Price from the previous
trading day will be used.
7 See proposed BZX Rule 11.23(c)(2)(B)(ii)(a).
8 See proposed BZX Rule 11.23(c)(2)(B)(ii)(b).
9 See proposed BZX Rule 11.23(c)(2)(B)(iii).
10 See BZX Rule 11.23(a)(9).
11 See Notice, supra note 4, at 55436.
12 15 U.S.C. 78f(b).
13 In approving this proposed rule change, the
Commission has considered the proposed rules’
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
14 15 U.S.C. 78f(b)(5).
E:\FR\FM\12DEN1.SGM
12DEN1
Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating transactions in securities, 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, and not be designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Commission also finds that the
proposed rule change is consistent with
Section 6(b)(8) of the Act,15 which
requires that the rules of a national
securities exchange not impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
The Commission notes that the
primary listing market’s official closing
price for a security is relied upon by
market participants for a variety of
reasons, including, but not limited to,
calculation of index values, calculation
of the net asset value of mutual funds
and exchange-traded products, the price
of derivatives that are based on the
security, and certain types of trading
benchmarks such as volume weighted
average price strategies. For Derivatives
Securities Products, in circumstances
where there is no Closing Auction, or
the Closing Auction trade consists of
less than one round lot, the Exchange
proposes to utilize more recent firm
quotations instead of less recent trades,
as such trades may provide less
information about the current value of a
security. The Exchange asserts that by
doing so, the BZX Official Closing Price
for such a Derivative Securities Product
would be more reflective of the true and
current value of such security on that
trading day than otherwise would under
the Exchange’s current rule, particularly
for a Derivative Securities Product that
is thinly traded.16 The Commission
therefore believes that the Exchange’s
proposal is reasonably designed to
achieve the Act’s objectives to protect
investors and the public interest.
Accordingly, the Commission finds that
the proposed rule change is consistent
with the requirements of the Act.
amozie on DSK3GDR082PROD with NOTICES1
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 17 that the
proposed rule change (SR–CboeBZX–
2018–079), as modified by Amendment
No. 1, be, and hereby is, approved.
15 15
U.S.C. 78f(b)(8).
Notice, supra note 4, at 55437.
17 15 U.S.C. 78s(b)(2).
18 17 CFR 200.30–3(a)(12).
16 See
VerDate Sep<11>2014
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–26834 Filed 12–11–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84731; File No. SR–
CboeBZX–2018–040]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of
Designation of a Longer Period for
Commission Action on Proceedings To
Determine Whether To Approve or
Disapprove a Proposed Rule Change
To List and Trade Shares of SolidX
Bitcoin Shares Issued by the VanEck
SolidX Bitcoin Trust
December 6, 2018.
On June 20, 2018, Cboe BZX
Exchange, Inc. (‘‘BZX’’) 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
list and trade shares of SolidX Bitcoin
Shares issued by the VanEck SolidX
Bitcoin Trust under BZX Rule
14.11(e)(4), Commodity-Based Trust
Shares. The proposed rule change was
published for comment in the Federal
Register on July 2, 2018.3
On August 7, 2018, pursuant to
Section 19(b)(2) of the Act,4 the
Commission designated a longer period
within which to approve the proposed
rule change, disapprove the proposed
rule change, or institute proceedings to
determine whether to disapprove the
proposed rule change.5 On September
20, 2018, the Commission instituted
proceedings under Section 19(b)(2)(B) of
the Act 6 to determine whether to
approve or disapprove the proposed
rule change.7 As of December 6, 2018,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 83520
(June 26, 2018), 83 FR 31014 (July 2, 2018).
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 83792
(Aug. 7, 2018), 83 FR 40112 (Aug. 13, 2018).
6 15 U.S.C. 78s(b)(2)(B).
7 See Securities Exchange Act Release No. 84231
(Sept. 20, 2018), 83 FR 48665 (Sept. 26, 2018).
Specifically, the Commission instituted proceedings
to allow for additional analysis of the proposed rule
change’s consistency with Section 6(b)(5) of the
Act, which requires among other things, that the
rules of a national securities exchange be ‘‘designed
to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles
of trade,’’ and ‘‘to protect investors and the public
2 17
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
63933
the Commission has received more than
1,600 comments on the proposed rule
change.8
Section 19(b)(2) of the Act 9 provides
that after initiating disapproval
proceedings, the Commission shall issue
an order approving or disapproving the
proposed rule change not later than 180
days after the date of publication of
notice of filing of the proposed rule
change. The Commission may extend
the period for issuing an order
approving or disapproving the proposed
rule change, however, by not more than
60 days if the Commission determines
that a longer period is appropriate and
publishes reasons for such
determination. The proposed rule
change was published for notice and
comment in the Federal Register on July
2, 2018. December 29, 2018, is 180 days
from that date, and February 27, 2019 is
240 days from that date.
The Commission finds it appropriate
to designate a longer period within
which to issue an order approving or
disapproving the proposed rule change
so that it has sufficient time to consider
this proposed rule change. Accordingly,
the Commission, pursuant to Section
19(b)(2) of the Act,10 designates
February 27, 2019, as the date by which
the Commission shall either approve or
disapprove the proposed rule change
(File No. SR–CboeBZX–2018–040).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–26828 Filed 12–11–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84745; File No. SR–GEMX–
2018–40]
Self-Regulatory Organizations; Nasdaq
GEMX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Supplementary
Material .02 to Rule 715
December 7, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
interest.’’ See id. at 48667 (citing 15 U.S.C.
78f(b)(5)).
8 All comments on the proposed rule change are
available on the Commission’s website at: https://
www.sec.gov/comments/sr-cboebzx-2018-040/cboeb
zx2018040.htm.
9 15 U.S.C. 78s(b)(2).
10 Id.
11 17 CFR 200.30–3(a)(57).
E:\FR\FM\12DEN1.SGM
12DEN1
]]>Agencies
[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)]
[Notices]
[Pages 63932-63933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26834]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84738; File No. SR-CboeBZX-2018-079]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order
Granting Approval to a Proposed Rule Change, as Modified by Amendment
No. 1, To Establish How the BZX Official Closing Price Would Be
Determined for BZX-Listed Securities
December 6, 2018.
I. Introduction
On October 18, 2018, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') 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 amend how the BZX Official Closing price would
be determined for BZX-listed securities that are not corporate
securities if the Exchange does not conduct a Closing Auction or if a
Closing Auction trade is less than a round lot.\3\ The proposed rule
change was published for comment in the Federal Register on November 5,
2018.\4\ The Commission received no comments on the proposal. This
order approves the proposed rule change, as modified by Amendment No.
1.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ On October 29, 2018, the Exchange filed Amendment No. 1 to
the proposed rule change to specify the date upon which the
Exchange's President (or designee) approved the proposed rule
change, pursuant to delegated authority.
\4\ See Securities Exchange Act Release No. 84507 (October 30,
2018), 83 FR 55435 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal, as Modified by Amendment No. 1
The Exchange proposes to amend BZX Rule 11.23(c)(2)(B) to change
how it would determine the BZX Official Closing Price \5\ for an
Exchange-listed security that is not a corporate security (``Derivative
Securities Product'') if the Exchange does not conduct a Closing
Auction or if a Closing Auction trade is less than a round lot. Current
Rule 11.23(c)(2)(B) provides that in the event that there is no Closing
Auction for a BZX-listed security, the BZX Official Closing Price will
be the price of the Final Last Sale Eligible Trade.\6\ The Exchange
proposes to amend this provision to provide that for Derivative
Securities Products only, in the event there is no Closing Auction, or
if less than a round lost was executed in the Closing Auction, the BZX
Official Closing Price will depend upon when the Final Last Sale
Eligible Trade in that security occurred.
---------------------------------------------------------------------------
\5\ See BZX Rule 11.23(a)(3) (defining the term ``BZX Official
Closing Price'' as the price disseminated to the consolidated tape
as the market center closing trade).
\6\ As defined in BZX Rule 11.23(a)(9), the term ``Final Last
Sale Eligible Trade'' means the last trade occurring during Regular
Trading Hours on the Exchange if the trade was executed within the
last one second prior to either the Closing Auction or, for Halt
Auctions, trading in the security being halted. Where the trade was
not executed within the last one second, the last trade reported to
the consolidated tape received by BZX Exchange during Regular
Trading Hours and, where applicable, prior to trading in the
security being halted will be used. If there is no qualifying trade
for the current day, the BZX Official Closing Price from the
previous trading day will be used.
---------------------------------------------------------------------------
Specifically, if the Final Last Sale Eligible Trade occurred within
the final five minutes before the end of Regular Trading Hours, the
Final Last Sale Eligible Trade will be the BZX Official Closing
Price.\7\ However, if such trade occurred prior to the last five
minutes before the end of Regular Trading Hours, the time-weighted
average price of the NBBO midpoint measured over the last five minutes
before the end of Regular Trading Hours will be the BZX Official
Closing Price.\8\
---------------------------------------------------------------------------
\7\ See proposed BZX Rule 11.23(c)(2)(B)(ii)(a).
\8\ See proposed BZX Rule 11.23(c)(2)(B)(ii)(b).
---------------------------------------------------------------------------
If the BZX Official Closing Price cannot be determined under
proposed BZX Rule 11.23(c)(2)(B)(i) or (ii), the Final Last Sale
Eligible Trade will be the BZX Official Closing Price.\9\ If there is
no qualifying trade for the current day, the BZX Official Closing Price
from the previous trading day will be used.\10\
---------------------------------------------------------------------------
\9\ See proposed BZX Rule 11.23(c)(2)(B)(iii).
\10\ See BZX Rule 11.23(a)(9).
---------------------------------------------------------------------------
The Exchange states that it will implement the proposed rule change
as soon as is practicable after the Commission's approval and will
announce the implementation date via Trade Desk Notice.\11\
---------------------------------------------------------------------------
\11\ See Notice, supra note 4, at 55436.
---------------------------------------------------------------------------
III. Discussion and Commission Findings
The Commission finds that the proposed rule change, as modified by
Amendment No. 1, is consistent with the requirements of Section 6 of
the Act \12\ and the rules and regulations thereunder applicable to a
national securities exchange.\13\ In particular, the Commission finds
that the proposed rule change is consistent with Sections 6(b)(5) the
Act,\14\ which requires, among other things, that the rules of a
national securities exchange be designed to
[[Page 63933]]
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating transactions in
securities, 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, and not be designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers. The Commission also finds that the proposed rule change is
consistent with Section 6(b)(8) of the Act,\15\ which requires that the
rules of a national securities exchange not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ In approving this proposed rule change, the Commission has
considered the proposed rules' impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\14\ 15 U.S.C. 78f(b)(5).
\15\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
The Commission notes that the primary listing market's official
closing price for a security is relied upon by market participants for
a variety of reasons, including, but not limited to, calculation of
index values, calculation of the net asset value of mutual funds and
exchange-traded products, the price of derivatives that are based on
the security, and certain types of trading benchmarks such as volume
weighted average price strategies. For Derivatives Securities Products,
in circumstances where there is no Closing Auction, or the Closing
Auction trade consists of less than one round lot, the Exchange
proposes to utilize more recent firm quotations instead of less recent
trades, as such trades may provide less information about the current
value of a security. The Exchange asserts that by doing so, the BZX
Official Closing Price for such a Derivative Securities Product would
be more reflective of the true and current value of such security on
that trading day than otherwise would under the Exchange's current
rule, particularly for a Derivative Securities Product that is thinly
traded.\16\ The Commission therefore believes that the Exchange's
proposal is reasonably designed to achieve the Act's objectives to
protect investors and the public interest. Accordingly, the Commission
finds that the proposed rule change is consistent with the requirements
of the Act.
---------------------------------------------------------------------------
\16\ See Notice, supra note 4, at 55437.
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\17\ that the proposed rule change (SR-CboeBZX-2018-079), as modified
by Amendment No. 1, be, and hereby is, approved.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(2).
\18\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26834 Filed 12-11-18; 8:45 am]
BILLING CODE 8011-01-P
