Inter-American Development Bank; Notice of Application, 72060-72061 [2019-28050]

Download as PDF 72060 Federal Register / Vol. 84, No. 249 / Monday, December 30, 2019 / Notices Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NASDAQ–2019–097 on the subject line. khammond on DSKJM1Z7X2PROD with NOTICES Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2019–097. 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 (http://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–NASDAQ–2019–097 and should be submitted on or before January 21, 2020. VerDate Sep<11>2014 20:00 Dec 27, 2019 Jkt 250001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.25 J. Matthew DeLesDernier, Assistant Secretary. Washington, DC 20549–1090. Applicant, Inter-American Development Bank, 1300 New York Avenue NW Washington, DC 20577. FOR FURTHER INFORMATION CONTACT: [FR Doc. 2019–28028 Filed 12–27–19; 8:45 am] BILLING CODE P Benjamin Kalish, Senior Counsel, or Parisa Haghshenas, Branch Chief, at 202–551–6825 (Division of Investment Management, Chief Counsel’s Office). Inter-American Development Bank; Notice of Application The following is a summary of the application. The complete application may be obtained via the Commission’s website either at http://www.sec.gov/ rules/iareleases.shtml or by calling (202) 551–8090. December 20, 2019. Applicant’s Representations SECURITIES AND EXCHANGE COMMISSION [Investment Advisers Act Release No. 5420; File No. 803–00248] SUPPLEMENTARY INFORMATION: Securities and Exchange Commission (‘‘Commission’’). ACTION: Notice. AGENCY: 1. The IDB was established by international treaty with the principal purpose to contribute to the acceleration of the process of economic and social SUMMARY: Notice of application for an development in Latin America and the exemption under section 202(a)(11)(H) Caribbean. The IDB’s principal activities of the Investment Advisers Act of 1940 are providing loans and credit (‘‘Advisers Act’’). guarantees, and technical assistance to Applicant: Inter-American support development projects in its Development Bank (‘‘IDB’’ or developing member countries. The IDB ‘‘Applicant’’). has operated since 1959 under an Relevant Advisers Act Sections: agreement signed by the governments of Exemption requested under section its member countries, including the 202(a)(11)(H) of the Advisers Act from U.S., and its member countries own all section 202(a)(11) of the Advisers Act. of its capital stock. Summary of Application: The 2. The Applicant provides substantial Applicant requests that the Commission issue an order declaring it to be a person technical assistance to the governments of its member countries as part of or in not within the intent of Section parallel to a loan or guarantee, or 202(a)(11) of the Advisers Act, which independently. The purpose of IDB’s defines the term ‘‘investment adviser.’’ technical assistance activities is both to Filing Dates: The application was improve the operations of the member filed on June 7, 2019, and amended on government as they relate to economic October 1, 2019. Hearing or Notification of Hearing: An and social development and to contribute to knowledge transfer and order granting the application will be capacity building of developing member issued unless the Commission orders a hearing. Interested persons may request countries. Technical assistance includes assisting member countries to improve a hearing by writing to the Commission’s Secretary and serving the their asset and liability management techniques and advice for member Applicant with a copy of the request, countries on adopting sound portfolio personally or by mail. Hearing requests management techniques. should be received by the Commission by 5:30 p.m. on January 14, 2019, and 3. The Applicant seeks to expand its should be accompanied by proof of services to meet requests from member service on the Applicant, in the form of countries to help them strengthen the an affidavit or, for lawyers, a certificate management of their reserves and to of service. Pursuant to Rule 0–5 under bring their treasury operations in line the Advisers Act, hearing requests with current capital and financial should state the nature of the writer’s markets best practices. The Applicant interest, any facts bearing upon the would provide these treasury-related desirability of a hearing on the matter, services only to IDB member countries, the reason for the request, and the issues their central banks, other governmental contested. Persons may request institutions of such member countries, notification of a hearing by writing to and other international organizations the Commission’s Secretary. owned entirely by their sovereign nation members, substantially all of which ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street NE, members are also members of the IDB (collectively ‘‘Potential Clients’’). The 25 17 CFR 200.30–3(a)(12). Applicant would provide its services PO 00000 Frm 00171 Fmt 4703 Sfmt 4703 E:\FR\FM\30DEN1.SGM 30DEN1 Federal Register / Vol. 84, No. 249 / Monday, December 30, 2019 / Notices khammond on DSKJM1Z7X2PROD with NOTICES only with respect to government and/or public assets. 4. Member countries have requested that the Applicant provide them with asset management and related services (back office, risk, accounting, advisory and other support services) to help them develop additional internal capacities. The Applicant would exercise discretionary authority with respect to the assets, acting as the agent for Potential Clients. 5. Member countries have also requested advice and instruction relating to hedging activities and to capital markets borrowings. The Applicant proposes to provide detailed advice on debt management, hedging techniques for specific transactions, and capital markets borrowings. The Applicant also proposes to provide targeted training seminars and courses at the IDB’s offices, at Potential Clients’ locations, or online. 6. The Applicant expects to charge a fee for the activities/services it provides that would allow it to recover the associated costs. Applicants’ Legal Analysis 1. Section 202(a)(11) of the Advisers Act defines ‘‘investment adviser’’ to mean ‘‘any person who, for compensation, engages in the business of advising others . . . as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities . . . .’’ 2. The Applicant proposes to offer asset management and advisory services on a regular, recurring basis and to charge recipients a fee for these services. Accordingly, the Applicant would be ‘‘in the business of’’ providing investment advice for compensation and would be an ‘‘investment adviser’’ for purposes of the Advisers Act. 3. Section 202(a)(11)(H) of the Advisers Act authorizes the Commission to exclude from the definition of ‘‘investment adviser’’ persons that are not within the intent of section 202(a)(11). The Applicant requests that the Commission issue an order under section 202(a)(11)(H) declaring it to be a person not within the intent of section 202(a)(11). 4. The Applicant argues that the Advisers Act contemplates the regulation of private sector entities and was not intended to regulate an entity that is an organization of sovereign nations providing investment advice to Potential Clients. The Applicant states that section 202(b) of the Advisers Act provides that the Advisers Act is not VerDate Sep<11>2014 20:00 Dec 27, 2019 Jkt 250001 applicable to the ‘‘United States, a State, or any political subdivision of a State, or any agency, authority, or instrumentality of any one or more of the foregoing, or any corporation which is wholly owned directly or indirectly by any one or more of the foregoing, or any officer, agent, or employee of any of the foregoing acting as such in the course of his official duty, unless such provision makes specific reference thereto.’’ While the Applicant acknowledges that the Advisers Act does not expressly exempt international organizations made up solely of sovereign nations, the Applicant argues that the Advisers Act seems clearly intended not to apply to such organizations. 5. The Applicant acknowledges that a foreign individual or corporation would reasonably expect the protections of the U.S. securities laws to apply when doing business with an investment adviser resident in the United States. The Applicant asserts, however, that, given the particular nature of the IDB, its unique purposes, and the nature of its constituent members, recipients of the proposed investment advice would not reasonably expect the Advisers Act to apply to those services. For the Commission, by the Division of Investment Management, under delegated authority. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2019–28050 Filed 12–27–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–87829; File No. SR– PEARL–2019–35] Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 100, Definitions, Exchange Rule 503, Openings on the Exchange, Exchange Rule 515, Execution of Orders, Exchange Rule 516, Order Types, and Exchange Rule 521, Nullification and Adjustment of Options Transactions Including Obvious Errors December 20, 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 December 19, 2019, MIAX PEARL, LLC (‘‘MIAX PEARL’’ or the ‘‘Exchange’’) filed with 1 15 2 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00172 Fmt 4703 Sfmt 4703 72061 the Securities and Exchange Commission (‘‘Commission’’) a 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 is filing a proposal to amend Rule 100, Definitions; Exchange Rule 503, Openings on the Exchange; Exchange Rule 515, Execution of Orders; Exchange Rule 516, Order Types; and Exchange Rule 521, Nullification and Adjustment of Options Transactions Including Obvious Errors. The text of the proposed rule change is available on the Exchange’s website at http://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’s principal office, 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 Exchange proposes to amend Exchange Rule 100, Definitions; Exchange Rule 503, Openings on the Exchange; Exchange Rule 515, Execution of Orders; Exchange Rule 516, Order Types; and Exchange Rule 521, Nullification and Adjustment of Options Transactions Including Obvious Errors, to make non-substantive edits to update internal cross references in the Exchange’s rulebook. The Exchange is an affiliate of the Miami International Securities Exchange, LLC (‘‘MIAX’’) and incorporates by reference a number of MIAX Exchange rules into its rulebook. MIAX Exchange recently amended Rule 1400, Definitions, found in Chapter XIV of the MIAX Exchange rules, which are E:\FR\FM\30DEN1.SGM 30DEN1

Agencies

[Federal Register Volume 84, Number 249 (Monday, December 30, 2019)]
[Notices]
[Pages 72060-72061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-28050]


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SECURITIES AND EXCHANGE COMMISSION

[Investment Advisers Act Release No. 5420; File No. 803-00248]


Inter-American Development Bank; Notice of Application

December 20, 2019.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice.

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SUMMARY: Notice of application for an exemption under section 
202(a)(11)(H) of the Investment Advisers Act of 1940 (``Advisers 
Act'').
    Applicant: Inter-American Development Bank (``IDB'' or 
``Applicant'').
    Relevant Advisers Act Sections: Exemption requested under section 
202(a)(11)(H) of the Advisers Act from section 202(a)(11) of the 
Advisers Act.
    Summary of Application: The Applicant requests that the Commission 
issue an order declaring it to be a person not within the intent of 
Section 202(a)(11) of the Advisers Act, which defines the term 
``investment adviser.''
    Filing Dates: The application was filed on June 7, 2019, and 
amended on October 1, 2019.
    Hearing or Notification of Hearing: An order granting the 
application will be issued unless the Commission orders a hearing. 
Interested persons may request a hearing by writing to the Commission's 
Secretary and serving the Applicant with a copy of the request, 
personally or by mail. Hearing requests should be received by the 
Commission by 5:30 p.m. on January 14, 2019, and should be accompanied 
by proof of service on the Applicant, in the form of an affidavit or, 
for lawyers, a certificate of service. Pursuant to Rule 0-5 under the 
Advisers Act, hearing requests should state the nature of the writer's 
interest, any facts bearing upon the desirability of a hearing on the 
matter, the reason for the request, and the issues contested. Persons 
may request notification of a hearing by writing to the Commission's 
Secretary.

ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street 
NE, Washington, DC 20549-1090. Applicant, Inter-American Development 
Bank, 1300 New York Avenue NW Washington, DC 20577.

FOR FURTHER INFORMATION CONTACT: Benjamin Kalish, Senior Counsel, or 
Parisa Haghshenas, Branch Chief, at 202-551-6825 (Division of 
Investment Management, Chief Counsel's Office).

SUPPLEMENTARY INFORMATION: The following is a summary of the 
application. The complete application may be obtained via the 
Commission's website either at http://www.sec.gov/rules/iareleases.shtml or by calling (202) 551-8090.

Applicant's Representations

    1. The IDB was established by international treaty with the 
principal purpose to contribute to the acceleration of the process of 
economic and social development in Latin America and the Caribbean. The 
IDB's principal activities are providing loans and credit guarantees, 
and technical assistance to support development projects in its 
developing member countries. The IDB has operated since 1959 under an 
agreement signed by the governments of its member countries, including 
the U.S., and its member countries own all of its capital stock.
    2. The Applicant provides substantial technical assistance to the 
governments of its member countries as part of or in parallel to a loan 
or guarantee, or independently. The purpose of IDB's technical 
assistance activities is both to improve the operations of the member 
government as they relate to economic and social development and to 
contribute to knowledge transfer and capacity building of developing 
member countries. Technical assistance includes assisting member 
countries to improve their asset and liability management techniques 
and advice for member countries on adopting sound portfolio management 
techniques.
    3. The Applicant seeks to expand its services to meet requests from 
member countries to help them strengthen the management of their 
reserves and to bring their treasury operations in line with current 
capital and financial markets best practices. The Applicant would 
provide these treasury-related services only to IDB member countries, 
their central banks, other governmental institutions of such member 
countries, and other international organizations owned entirely by 
their sovereign nation members, substantially all of which members are 
also members of the IDB (collectively ``Potential Clients''). The 
Applicant would provide its services

[[Page 72061]]

only with respect to government and/or public assets.
    4. Member countries have requested that the Applicant provide them 
with asset management and related services (back office, risk, 
accounting, advisory and other support services) to help them develop 
additional internal capacities. The Applicant would exercise 
discretionary authority with respect to the assets, acting as the agent 
for Potential Clients.
    5. Member countries have also requested advice and instruction 
relating to hedging activities and to capital markets borrowings. The 
Applicant proposes to provide detailed advice on debt management, 
hedging techniques for specific transactions, and capital markets 
borrowings. The Applicant also proposes to provide targeted training 
seminars and courses at the IDB's offices, at Potential Clients' 
locations, or online.
    6. The Applicant expects to charge a fee for the activities/
services it provides that would allow it to recover the associated 
costs.

Applicants' Legal Analysis

    1. Section 202(a)(11) of the Advisers Act defines ``investment 
adviser'' to mean ``any person who, for compensation, engages in the 
business of advising others . . . as to the value of securities or as 
to the advisability of investing in, purchasing, or selling securities, 
or who, for compensation and as a part of a regular business, issues or 
promulgates analyses or reports concerning securities . . . .''
    2. The Applicant proposes to offer asset management and advisory 
services on a regular, recurring basis and to charge recipients a fee 
for these services. Accordingly, the Applicant would be ``in the 
business of'' providing investment advice for compensation and would be 
an ``investment adviser'' for purposes of the Advisers Act.
    3. Section 202(a)(11)(H) of the Advisers Act authorizes the 
Commission to exclude from the definition of ``investment adviser'' 
persons that are not within the intent of section 202(a)(11). The 
Applicant requests that the Commission issue an order under section 
202(a)(11)(H) declaring it to be a person not within the intent of 
section 202(a)(11).
    4. The Applicant argues that the Advisers Act contemplates the 
regulation of private sector entities and was not intended to regulate 
an entity that is an organization of sovereign nations providing 
investment advice to Potential Clients. The Applicant states that 
section 202(b) of the Advisers Act provides that the Advisers Act is 
not applicable to the ``United States, a State, or any political 
subdivision of a State, or any agency, authority, or instrumentality of 
any one or more of the foregoing, or any corporation which is wholly 
owned directly or indirectly by any one or more of the foregoing, or 
any officer, agent, or employee of any of the foregoing acting as such 
in the course of his official duty, unless such provision makes 
specific reference thereto.'' While the Applicant acknowledges that the 
Advisers Act does not expressly exempt international organizations made 
up solely of sovereign nations, the Applicant argues that the Advisers 
Act seems clearly intended not to apply to such organizations.
    5. The Applicant acknowledges that a foreign individual or 
corporation would reasonably expect the protections of the U.S. 
securities laws to apply when doing business with an investment adviser 
resident in the United States. The Applicant asserts, however, that, 
given the particular nature of the IDB, its unique purposes, and the 
nature of its constituent members, recipients of the proposed 
investment advice would not reasonably expect the Advisers Act to apply 
to those services.

    For the Commission, by the Division of Investment Management, 
under delegated authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019-28050 Filed 12-27-19; 8:45 am]
BILLING CODE 8011-01-P