Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend the Fat Finger Check With Respect to Limit Orders in Rule 21.17, 28363-28366 [2019-12787]
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Federal Register / Vol. 84, No. 117 / Tuesday, June 18, 2019 / Notices
permit the Master Fund, and any
principal underwriter for the Master
Fund, to sell shares of the Master Fund
to the Feeder Fund beyond the
limitations in section 12(d)(1)(B).
10. Section 6(c) of the Act permits the
Commission to exempt any persons or
transactions from any provision of the
Act if such exemption is necessary or
appropriate in the public interest and
consistent with the protection of
investors and the purposes fairly
intended by the policy and provisions of
the Act. Section 12(d)(1)(J) of the Act
provides that the Commission may
exempt any person, security, or
transaction, or any class or classes of
persons, securities, or transactions, from
any provision of section 12(d)(1) if the
exemption is consistent with the public
interest and the protection of investors.
Section 17(b) of the Act authorizes the
Commission to grant an order
permitting a transaction otherwise
prohibited by section 17(a) if it finds
that (a) the terms of the proposed
transaction are fair and reasonable and
do not involve overreaching on the part
of any person concerned; (b) the
proposed transaction is consistent with
the policies of each registered
investment company involved; and (c)
the proposed transaction is consistent
with the general purposes of the Act.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–12778 Filed 6–17–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–536, OMB Control No.
3235–0596]
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
jbell on DSK3GLQ082PROD with NOTICES
Extension:
Rule 204A–1
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 (the
‘‘Commission’’) is soliciting comments
on the collections of information
summarized below. The Commission
plans to submit these existing
collections of information to the Office
of Management and Budget for
extension and approval.
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The title for the collection of
information is ‘‘Rule 204A–1 (17 CFR
275.204A–1) under the Investment
Advisers Act of 1940’’ (15 U.S.C. 80b–
1 et seq.) Rule 204A–1 (the ‘‘Code of
Ethics Rule’’) requires investment
advisers registered with the Commission
to (i) set forth standards of conduct
expected of advisory personnel
(including compliance with the federal
securities laws); (ii) safeguard material
nonpublic information about client
transactions; and (iii) require the
adviser’s ‘‘access persons’’ to report
their personal securities transactions,
including transactions in any mutual
fund managed by the adviser. The Code
of Ethics Rule requires access persons to
obtain the adviser’s approval before
investing in an initial public offering or
private placement. The Code of Ethics
Rule also requires prompt reporting, to
the adviser’s chief compliance officer or
another person designated in the code of
ethics, of any violations of the code.
Finally, the Code of Ethics Rule requires
the adviser to provide each supervised
person with a copy of the code and any
amendments, and require the
supervised persons to acknowledge, in
writing, their receipt of these copies.
The purposes of the information
collection requirements are to: (i)
Ensure that advisers maintain codes of
ethics applicable to their supervised
persons; (ii) provide advisers with
information about the personal
securities transactions of their access
persons for purposes of monitoring such
transactions; (iii) provide advisory
clients with information with which to
evaluate advisers’ codes of ethics; and
(iv) assist the Commission’s
examination staff in assessing the
adequacy of advisers’ codes of ethics
and assessing personal trading activity
by advisers’ supervised persons.
The respondents to this information
collection are investment advisers
registered with the Commission. The
Commission has estimated that
compliance with rule 204A–1 imposes a
burden of approximately 91 hours per
adviser annually for an estimated total
annual burden of 1,194,133 hours.
An agency may not conduct or
sponsor a collection of information
unless it displays a currently valid OMB
control number. No person shall be
subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
a valid OMB control number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
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of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Candace
Kenner, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: June 13, 2019.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–12886 Filed 6–17–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86094; File No. SR–
CboeEDGX–2019–037)
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Relating To
Amend the Fat Finger Check With
Respect to Limit Orders in Rule 21.17
June 12, 2019.
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 June 10,
2019, Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, and II
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 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
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) proposes to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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amend the fat finger check with respect
to limit orders in Rule 21.17. The text
of the proposed rule change is provided
below.
(additions are italicized; deletions are
[bracketed])
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
*
1. Purpose
*
*
*
*
Rules of Cboe EDGX Exchange, Inc.
*
*
*
*
*
Rule 21.17. Additional Price Protection
Mechanisms and Risk Controls
The System’s acceptance and execution of
orders, quotes, and bulk messages, as
applicable, are subject to the price protection
mechanisms and risk controls in Rule 21.16,
this Rule 21.17 (related to all orders other
than complex orders), Rule 21.20 (related to
complex orders) and as otherwise set forth in
the Rules. All numeric values established by
the Exchange pursuant to this Rule will be
maintained by the Exchange in publicly
available specifications and/or published in
a Regulatory Circular. Unless otherwise
specified the price protections set forth in
this Rule, including the numeric values
established by the Exchange, may not be
disabled or adjusted. The Exchange may
share any of a User’s risk settings with the
Clearing Member that clears transactions on
behalf of the User.
(a) No change.
(b) Limit Order Fat Finger Check. If a User
submits a buy (sell) limit order to the System
with a price that is more than a buffer
amount established by the Exchange above
(below) the NBO (NBB), or, in the case of an
order received prior to [9:30 a.m.]the
conclusion of the RTH opening auction
process, [above (below) the midpoint of the
NBBO at the close of the market on the
previous trading day](i) the last disseminated
NBBO on that trading day, or (ii) the
midpoint of the prior trading day’s closing
NBBO, if no NBBO has been disseminated on
that trading day, the System will reject or
cancel back to the User the limit order. This
check does not apply to bulk messages.
*
*
*
*
*
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
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the most significant aspects of such
statements.
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
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The proposed rule change amends the
fat finger check with respect to limit
orders in Rule 21.17. Current Rule
21.17(b) states if a User submits a buy
(sell) limit order to the System with a
price that is more than a buffer amount
established by the Exchange above
(below) the NBO (NBB), or, in the case
of an order received prior to 9:30 a.m.,
above (below) the midpoint of the
NBBO at the close of the market on the
previous trading day, the System will
reject or cancel back to the User the
limit order.
The Exchange recently adopted a
global trading hours (‘‘GTH’’) trading
session, which will occur from 8:30 to
9:15 a.m. Eastern Time, which the
Exchange intends to implement on June
24, 2019.5 For classes that trade during
the GTH trading session, there may be
an NBBO disseminated prior to 9:30
a.m. Therefore, the Exchange proposes
to update the fat finger check for limit
orders to reflect a GTH trading session.
Specifically, the Exchange proposes that
in the case of an order received prior to
the conclusion of the RTH opening
auction process then the fat finger check
amount will be the last disseminated
NBBO on that trading day, or the
midpoint of the prior trading day’s
NBBO, if no NBBO has been
disseminated on that trading day.
First, the Exchange notes that it is
updating the fat finger check amount to
be the last disseminated NBBO on that
trading day (which accounts for NBBOs
disseminated during GTH),6 or the
midpoint of the prior trading day’s
closing NBBO, if no NBBO has been
disseminated on that trading day in
order to accommodate the new GTH
trading session and the fact that there
may be an NBBO disseminated prior to
9:30 a.m. for classes that will trade
during the GTH session. For example, if
it is 9:25 a.m. the check would use the
last disseminated NBBO from the GTH
5 See Securities Exchange Act Release No. 85797
(May 7, 2019), 84 FR 20920 (May 13, 2019) (Notice
of Filing and Immediate Effectiveness of a Proposed
Rule Change Relating To Amend the Exchange’s
Opening Process and Add a Global Trading Hours
Session for XSP Options) (SR–CboeEDGX–2019–
027). The changes in SR–CboeEDGX–2019–027 are
currently effective but not yet operative; however,
the proposed rule changes assume operativeness of
those effective changes.
6 See Rule 16.1 which states that a trading day
includes both trading sessions on that day.
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session (i.e., on that trading day), and,
if no NBBO has been disseminated on
that trading day then the System would
pull the midpoint of the prior trading
day’s closing NBBO, as it currently does
today. The Exchange also notes that this
proposed language is substantively
identical to that of the corresponding
limit order fat finger rule under its
affiliated exchange, Cboe C2 Exchange,
Inc. (‘‘C2’’), recently filed with the
Commission.7
Second, the Exchange notes that it is
also updating the language that refers to
an order received prior to 9:30 a.m. to
refer to an order received prior to the
conclusion of the RTH opening auction
process. The Exchange notes that the
conclusion of the RTH opening auction
process occurs within the 9:30 a.m.
minute and that the System currently
applies the limit order fat finger check
to orders received prior to the
conclusion of the RTH opening auction
process within this minute. Moreover,
upon the implementation of the GTH
trading session, this proposed timeframe
will serve to encompass orders received
from the beginning of the GTH opening
process 8 through the RTH opening
process. As such, the Exchange is
amending this language to more
accurately reflect the timeframe in
which the System already applies the fat
finger check, and will continue to apply
the fat finger check upon the
implementation of the GTH trading
session.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.9 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 10 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
7 See Securities Exchange Act Release No. 86066
(June 7, 2019) (SR–C2–2019–015). The changes in
SR–C2–2019–015 are currently effective but not yet
operative; however, the proposed rule changes
assume operativeness of those effective changes.
8 The Exchange notes this includes the queuing
period as defined under Rule 21.7 which provides
for the opening auction process.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
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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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 11 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes
that by updating the fat finger check for
limit orders to account for the recently
adopted GTH trading session, the
proposed rule change serves to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system. As
described above, the check will function
as it does today and the proposed
change merely provides an added step
that the System will take in order to
account for the fact that there will be
two trading sessions on the Exchange,
one before 9:30 a.m. in which an NBBO
may be disseminated. In addition to
this, the proposed change updates
language regarding the timeframe in
which the System currently applies the
fat finger check amounts under Rule
21.17(b). Therefore, the Exchange
believes that by amending rule language
to reflect the earlier GTH session time
and potential NBBO dissemination
during that session in connection with
the fat finger check and by updating
language to reflect the timeframe in
which the System currently applies (and
will apply with the implementation of
GTH) the fat finger check to orders it
receives, it will remove impediments to
and perfect the mechanism of a free and
open market, thereby protecting
investors, by increasing transparency of
the Exchange’s fat finger price
protection mechanism as it relates to the
earlier GTH trading session and current
System functionality. The Exchange also
notes that this proposed change is
substantively the same as the limit order
fat finger check rule of its affiliated
exchange, C2, recently filed with the
Commission. As a result, the Exchange
believes that the proposed rule change
will serve to protect investors by
providing similar price protection
mechanisms between the affiliated
exchanges, thereby bolstering
understanding of the affiliated
exchanges’ rules and functionality for
those participating across both
exchanges.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
11 Id.
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any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not intended to
address competitive issues, but rather to
update a current price protection
mechanism in connection with the
addition of a GTH trading session. The
Exchange does not believe that the
proposed rule change to update the fat
finger check as it relates to the GTH
trading session will impose any burden
on intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because it
will apply in the same manner to all
Users’ limit orders prior to the
conclusion of the RTH opening auction
process. Furthermore, the Exchange
does not believe that the proposed
change will impose any burden on
intermarket competition that that is not
necessary or appropriate in furtherance
of the purposes of the Act because the
proposed change merely updates a price
protection mechanism already in place
on the Exchange and applicable only to
trading on the Exchange.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the 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 if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and Rule 19b–4(f)(6)
thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 15 the Commission
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) 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.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
13 17
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28365
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest.
The Exchange has asked the
Commission to waive the 30-day
operative delay. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest because the proposed rule
change is substantively similar to the
the limit order fat finger check rule of
its affiliated exchange, C2, recently filed
with the Commission.16 Thus, as
represented by the Exchange, the
proposed rule change does not
introduce any new or novel issues. For
this reason, the Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest.
Therefore, the Commission hereby
waives the operative delay and
designates the proposal as operative
upon filing.17
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 necessary or appropriate in the
public interest, for the protection of
investors, or 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 rule-comments@
sec.gov. Please include File Number SR–
CboeEDGX–2019–037 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.
16 See
supra note 7.
purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
17 For
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All submissions should refer to File
Number SR–CboeEDGX–2019–037. 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–CboeEDGX–2019–037 and
should be submitted on or before July 9,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–12787 Filed 6–17–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–127, OMB Control No.
3235–0108]
jbell on DSK3GLQ082PROD with NOTICES
Proposed Collection; 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 14f–1
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’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Under Exchange Act Rule 14f–1 (17
CFR 240.14f–1), if a person or persons
have acquired securities of an issuer in
a transaction subject to Sections 13(d) or
14(d) of the Exchange Act, and changes
a majority of the directors of the issuer
otherwise than at a meeting of security
holders, then the issuer must file with
the Commission and transmit to security
holders information related to the
change in directors within 10 days prior
to the date the new majority takes office
as directors. The information filed
under Rule 14f–1 must be filed with the
Commission and is publicly available.
We estimate that it takes approximately
18 burden hours to provide the
information required under Rule 14f–1
and that the information is filed by
approximately 64 respondents for a total
annual reporting burden of 1,152 hours
(18 hours per response × 64 responses).
Written comments are invited on: (a)
Whether this proposed collection of
information is necessary for the
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Please direct your written comment to
Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov.
Dated: June 13, 2019.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–12885 Filed 6–17–19; 8:45 am]
18 17
CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
33507; File No. 812–14994]
Wahed Invest LLC, et al.
June 12, 2019.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
AGENCY:
Notice of an application for an order
under section 6(c) of the Investment
Company Act of 1940 (the ‘‘Act’’) for an
exemption from sections 2(a)(32),
5(a)(1), 22(d), and 22(e) of the Act and
rule 22c–1 under the Act, under
sections 6(c) and 17(b) of the Act for an
exemption from sections 17(a)(1) and
17(a)(2) of the Act, and under section
12(d)(1)(J) for an exemption from
sections 12(d)(1)(A) and 12(d)(1)(B) of
the Act. The requested order would
permit (a) index-based series of certain
open-end management investment
companies (‘‘Funds’’) to issue shares
redeemable in large aggregations only
(‘‘Creation Units’’); (b) secondary market
transactions in Fund shares to occur at
negotiated market prices rather than at
net asset value (‘‘NAV’’); (c) certain
Funds to pay redemption proceeds,
under certain circumstances, more than
seven days after the tender of shares for
redemption; (d) certain affiliated
persons of a Fund to deposit securities
into, and receive securities from, the
Fund in connection with the purchase
and redemption of Creation Units; and
(e) certain registered management
investment companies and unit
investment trusts outside of the same
group of investment companies as the
Funds (‘‘Funds of Funds’’) to acquire
shares of the Funds.
APPLICANTS: Wahed Invest LLC (the
‘‘Initial Adviser’’), a Delaware limited
liability company that is registered as an
investment adviser under the
Investment Advisers Act of 1940, Listed
Funds Trust (the ‘‘Trust’’), a Delaware
statutory trust registered under the Act
as an open-end management investment
company with multiple series, and
Quasar Distributors, LLC, (the ‘‘Initial
Distributor’’), a Delaware limited
liability company and broker-dealer
registered under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’).
FILING DATES: The application was filed
on January 3, 2019, and amended on
February 14, 2019 and May 7, 2019.
HEARING OR NOTIFICATION OF HEARING: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
E:\FR\FM\18JNN1.SGM
18JNN1
]]>Agencies
[Federal Register Volume 84, Number 117 (Tuesday, June 18, 2019)]
[Notices]
[Pages 28363-28366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12787]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86094; File No. SR-CboeEDGX-2019-037)
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating To Amend the Fat Finger Check With Respect to Limit Orders in
Rule 21.17
June 12, 2019.
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 June 10, 2019, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, and
II below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') proposes to
[[Page 28364]]
amend the fat finger check with respect to limit orders in Rule 21.17.
The text of the proposed rule change is provided below.
(additions are italicized; deletions are [bracketed])
* * * * *
Rules of Cboe EDGX Exchange, Inc.
* * * * *
Rule 21.17. Additional Price Protection Mechanisms and Risk Controls
The System's acceptance and execution of orders, quotes, and
bulk messages, as applicable, are subject to the price protection
mechanisms and risk controls in Rule 21.16, this Rule 21.17 (related
to all orders other than complex orders), Rule 21.20 (related to
complex orders) and as otherwise set forth in the Rules. All numeric
values established by the Exchange pursuant to this Rule will be
maintained by the Exchange in publicly available specifications and/
or published in a Regulatory Circular. Unless otherwise specified
the price protections set forth in this Rule, including the numeric
values established by the Exchange, may not be disabled or adjusted.
The Exchange may share any of a User's risk settings with the
Clearing Member that clears transactions on behalf of the User.
(a) No change.
(b) Limit Order Fat Finger Check. If a User submits a buy (sell)
limit order to the System with a price that is more than a buffer
amount established by the Exchange above (below) the NBO (NBB), or,
in the case of an order received prior to [9:30 a.m.]the conclusion
of the RTH opening auction process, [above (below) the midpoint of
the NBBO at the close of the market on the previous trading day](i)
the last disseminated NBBO on that trading day, or (ii) the midpoint
of the prior trading day's closing NBBO, if no NBBO has been
disseminated on that trading day, the System will reject or cancel
back to the User the limit order. This check does not apply to bulk
messages.
* * * * *
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, 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 aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The proposed rule change amends the fat finger check with respect
to limit orders in Rule 21.17. Current Rule 21.17(b) states if a User
submits a buy (sell) limit order to the System with a price that is
more than a buffer amount established by the Exchange above (below) the
NBO (NBB), or, in the case of an order received prior to 9:30 a.m.,
above (below) the midpoint of the NBBO at the close of the market on
the previous trading day, the System will reject or cancel back to the
User the limit order.
The Exchange recently adopted a global trading hours (``GTH'')
trading session, which will occur from 8:30 to 9:15 a.m. Eastern Time,
which the Exchange intends to implement on June 24, 2019.\5\ For
classes that trade during the GTH trading session, there may be an NBBO
disseminated prior to 9:30 a.m. Therefore, the Exchange proposes to
update the fat finger check for limit orders to reflect a GTH trading
session. Specifically, the Exchange proposes that in the case of an
order received prior to the conclusion of the RTH opening auction
process then the fat finger check amount will be the last disseminated
NBBO on that trading day, or the midpoint of the prior trading day's
NBBO, if no NBBO has been disseminated on that trading day.
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\5\ See Securities Exchange Act Release No. 85797 (May 7, 2019),
84 FR 20920 (May 13, 2019) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change Relating To Amend the
Exchange's Opening Process and Add a Global Trading Hours Session
for XSP Options) (SR-CboeEDGX-2019-027). The changes in SR-CboeEDGX-
2019-027 are currently effective but not yet operative; however, the
proposed rule changes assume operativeness of those effective
changes.
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First, the Exchange notes that it is updating the fat finger check
amount to be the last disseminated NBBO on that trading day (which
accounts for NBBOs disseminated during GTH),\6\ or the midpoint of the
prior trading day's closing NBBO, if no NBBO has been disseminated on
that trading day in order to accommodate the new GTH trading session
and the fact that there may be an NBBO disseminated prior to 9:30 a.m.
for classes that will trade during the GTH session. For example, if it
is 9:25 a.m. the check would use the last disseminated NBBO from the
GTH session (i.e., on that trading day), and, if no NBBO has been
disseminated on that trading day then the System would pull the
midpoint of the prior trading day's closing NBBO, as it currently does
today. The Exchange also notes that this proposed language is
substantively identical to that of the corresponding limit order fat
finger rule under its affiliated exchange, Cboe C2 Exchange, Inc.
(``C2''), recently filed with the Commission.\7\
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\6\ See Rule 16.1 which states that a trading day includes both
trading sessions on that day.
\7\ See Securities Exchange Act Release No. 86066 (June 7, 2019)
(SR-C2-2019-015). The changes in SR-C2-2019-015 are currently
effective but not yet operative; however, the proposed rule changes
assume operativeness of those effective changes.
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Second, the Exchange notes that it is also updating the language
that refers to an order received prior to 9:30 a.m. to refer to an
order received prior to the conclusion of the RTH opening auction
process. The Exchange notes that the conclusion of the RTH opening
auction process occurs within the 9:30 a.m. minute and that the System
currently applies the limit order fat finger check to orders received
prior to the conclusion of the RTH opening auction process within this
minute. Moreover, upon the implementation of the GTH trading session,
this proposed timeframe will serve to encompass orders received from
the beginning of the GTH opening process \8\ through the RTH opening
process. As such, the Exchange is amending this language to more
accurately reflect the timeframe in which the System already applies
the fat finger check, and will continue to apply the fat finger check
upon the implementation of the GTH trading session.
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\8\ The Exchange notes this includes the queuing period as
defined under Rule 21.7 which provides for the opening auction
process.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\9\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \10\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to
[[Page 28365]]
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. Additionally, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \11\ requirement that the rules
of an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ Id.
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In particular, the Exchange believes that by updating the fat
finger check for limit orders to account for the recently adopted GTH
trading session, the proposed rule change serves to remove impediments
to and perfect the mechanism of a free and open market and a national
market system. As described above, the check will function as it does
today and the proposed change merely provides an added step that the
System will take in order to account for the fact that there will be
two trading sessions on the Exchange, one before 9:30 a.m. in which an
NBBO may be disseminated. In addition to this, the proposed change
updates language regarding the timeframe in which the System currently
applies the fat finger check amounts under Rule 21.17(b). Therefore,
the Exchange believes that by amending rule language to reflect the
earlier GTH session time and potential NBBO dissemination during that
session in connection with the fat finger check and by updating
language to reflect the timeframe in which the System currently applies
(and will apply with the implementation of GTH) the fat finger check to
orders it receives, it will remove impediments to and perfect the
mechanism of a free and open market, thereby protecting investors, by
increasing transparency of the Exchange's fat finger price protection
mechanism as it relates to the earlier GTH trading session and current
System functionality. The Exchange also notes that this proposed change
is substantively the same as the limit order fat finger check rule of
its affiliated exchange, C2, recently filed with the Commission. As a
result, the Exchange believes that the proposed rule change will serve
to protect investors by providing similar price protection mechanisms
between the affiliated exchanges, thereby bolstering understanding of
the affiliated exchanges' rules and functionality for those
participating across both exchanges.
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 purposes of the Act. The proposed rule change is
not intended to address competitive issues, but rather to update a
current price protection mechanism in connection with the addition of a
GTH trading session. The Exchange does not believe that the proposed
rule change to update the fat finger check as it relates to the GTH
trading session will impose any burden on intramarket competition that
is not necessary or appropriate in furtherance of the purposes of the
Act because it will apply in the same manner to all Users' limit orders
prior to the conclusion of the RTH opening auction process.
Furthermore, the Exchange does not believe that the proposed change
will impose any burden on intermarket competition that that is not
necessary or appropriate in furtherance of the purposes of the Act
because the proposed change merely updates a price protection mechanism
already in place on the Exchange and applicable only to trading on the
Exchange.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the 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 if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6)
thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
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) \14\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \15\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
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The Exchange has asked the Commission to waive the 30-day operative
delay. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest
because the proposed rule change is substantively similar to the the
limit order fat finger check rule of its affiliated exchange, C2,
recently filed with the Commission.\16\ Thus, as represented by the
Exchange, the proposed rule change does not introduce any new or novel
issues. For this reason, the Commission believes that waiver of the 30-
day operative delay is consistent with the protection of investors and
the public interest. Therefore, the Commission hereby waives the
operative delay and designates the proposal as operative upon
filing.\17\
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\16\ See supra note 7.
\17\ For purposes only of waiving the 30-day operative delay,
the Commission also 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 necessary or
appropriate in the public interest, for the protection of investors, or
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-CboeEDGX-2019-037 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.
[[Page 28366]]
All submissions should refer to File Number SR-CboeEDGX-2019-037. 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-CboeEDGX-2019-
037 and should be submitted on or before July 9, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-12787 Filed 6-17-19; 8:45 am]
BILLING CODE 8011-01-P
