Self-Regulatory Organizations; Cboe EDGA 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 Introduce the Small Retail Broker Distribution Program, 9493-9494 [2020-03179]
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Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Notices
determining prices, products, and
services in the securities markets.
Specifically, in Regulation NMS, the
Commission highlighted the importance
of market forces in determining prices
and SRO revenues and, also, recognized
that current regulation of the market
system ‘‘has been remarkably successful
in promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 28 The
fact that this market is competitive has
also long been recognized by the courts.
In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit
stated as follows: ‘‘[n]o one disputes
that competition for order flow is
‘fierce.’ . . . As the SEC explained, ‘[i]n
the U.S. national market system, buyers
and sellers of securities, and the brokerdealers that act as their order-routing
agents, have a wide range of choices of
where to route orders for execution’;
[and] ‘no exchange can afford to take its
market share percentages for granted’
because ‘no exchange possesses a
monopoly, regulatory or otherwise, in
the execution of order flow from broker
dealers’. . . .’’.29 Accordingly, the
Exchange does not believe its proposed
fee change imposes any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
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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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 30 and paragraph (f) of Rule
19b–4 31 thereunder. 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 will institute proceedings
to determine whether the proposed rule
28 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
29 NetCoalition v. SEC, 615 F.3d 525, 539 (D.C.
Cir. 2010) (quoting Securities Exchange Act Release
No. 59039 (December 2, 2008), 73 FR 74770, 74782–
83 (December 9, 2008) (SR–NYSEArca–2006–21)).
30 15 U.S.C. 78s(b)(3)(A).
31 17 CFR 240.19b–4(f).
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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–
CBOE–2020–007 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.
All submissions should refer to File
Number SR–CBOE–2020–007. 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–CBOE–2020–007 and
should be submitted on or before March
11, 2020.
32 17
PO 00000
CFR 200.30–3(a)(12).
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9493
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.32
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–03178 Filed 2–18–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88177; File No. SR–
CboeEDGA–2019–013]
Self-Regulatory Organizations; Cboe
EDGA 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 Introduce the Small Retail Broker
Distribution Program
February 12, 2020.
On August 1, 2019, Cboe EDGA
Exchange, Inc. (the ‘‘Exchange’’ or
‘‘EDGA’’) 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 the
EDGA fee schedule to introduce a Small
Retail Broker Distribution Program (the
‘‘Program’’). The proposed rule change
was immediately effective upon filing
with the Commission pursuant to
Section 19(b)(3)(A) of the Act.3 The
proposed rule change was published for
comment in the Federal Register on
August 20, 2019.4 The Commission
received no comment letters regarding
the proposed rule change. On
September 30, 2019, under Sections
19(b)(2) and (b)(3)(C) of the Act,5 the
Commission temporarily suspended the
proposed rule change and instituted
proceedings to determine whether to
approve or disapprove the proposed
rule change (‘‘OIP’’).6 The Commission
has received no comment letters in
response to the OIP.
Section 19(b)(2) of the Act 7 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(2) and (b)(3)(A).
4 See Securities Exchange Act Release No. 86676
(August 14, 2019), 84 FR 43218 (‘‘Notice’’).
5 15 U.S.C. 78s(b)(3)(C).
6 See Securities Exchange Act Release No. 87165
(September 30, 2019), 84 FR 53205 (October 4,
2019).
7 15 U.S.C. 78s(b)(2).
2 17
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9494
Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Notices
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 the reasons for such
determination. The proposed rule
change was published for notice and
comment in the Federal Register on
August 20, 2019. The 180th day after
publication of the Notice is February 16,
2020, and April 16, 2020 is an
additional 60 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
the proposed rule change. Accordingly,
the Commission, pursuant to Section
19(b)(2) of the Act,8 designates April 16,
2020 as the date by which the
Commission shall either approve or
disapprove the proposed rule change
(File No. SR–CboeEDGA–2019–013).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–03179 Filed 2–18–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88175; File No. SR–
CboeBZX–2019–057]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing of
Amendment No. 2 and Order Granting
Accelerated Approval of a Proposed
Rule Change, as Modified by
Amendment No. 2 thereto, To List and
Trade Shares of the American Century
Focused Dynamic Growth ETF and
American Century Focused Large Cap
Value ETF Under BZX Rule 14.11(k)
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February 12, 2020.
I. Introduction
On June 6, 2019, Cboe BZX Exchange,
Inc. (‘‘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’’ or
‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
list and trade shares (‘‘Shares’’) of the
American Century Focused Dynamic
8 Id.
9 17
CFR 200.30–3(a)(57).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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17:51 Feb 18, 2020
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Growth ETF and American Century
Focused Large Cap Value ETF (each a
‘‘Fund’’ and, collectively, the ‘‘Funds’’)
under BZX Rule 14.11(k) (Managed
Portfolio Shares).3 The proposed rule
change was published for comment in
the Federal Register on June 25, 2019.4
On August 2, 2019, pursuant to Section
19(b)(2) of the Act,5 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.6 On September 23, 2019,
the Commission instituted proceedings
under Section 19(b)(2)(B) of the Act 7 to
determine whether to approve or
disapprove the proposed rule change.8
On December 17, 2019, the Exchange
filed Amendment No. 1 to the proposed
rule change, which replaced and
superseded the proposed rule change as
originally filed.9 On December 17, 2019,
the Commission designated a longer
period for action on the proposed rule
change.10 On February 11, 2020, the
Exchange filed Amendment No. 2 to the
proposed rule change, which replaced
and superseded the proposed rule
change as modified by Amendment No.
1.11 The Commission has received no
comments on the proposed rule change.
The Commission is publishing this
notice to solicit comments on
Amendment No. 2 from interested
persons, and is approving the proposed
rule change, as modified by Amendment
No. 2, on an accelerated basis.
3 The Commission recently approved the
Exchange’s proposed rule change to adopt BZX
Rule 14.11(k) to permit the listing and trading of
Managed Portfolio Shares. See Securities Exchange
Act Release No. 87759 (December 16, 2019), 84 FR
70223 (December 20, 2019) (SR–CboeBZX–2019–
047) (‘‘Managed Portfolio Shares Order’’).
4 See Securities Exchange Act Release No. 86155
(June 19, 2019), 84 FR 29912 (‘‘Notice’’).
5 15 U.S.C. 78s(b)(2).
6 See Securities Exchange Act Release No. 86557,
84 FR 39024 (August 8, 2019). The Commission
designated September 23, 2019, as the date by
which the Commission shall approve or disapprove,
or institute proceedings to determine whether to
disapprove, the proposed rule change.
7 15 U.S.C. 78s(b)(2)(B).
8 See Securities Exchange Act Release No. 87059,
84 FR 51215 (September 27, 2019).
9 Amendment No. 1 is available on the
Commission’s website at https://www.sec.gov/
comments/sr-cboebzx-2019-057/srcboebzx20190576555831-200931.pdf.
10 See Securities Exchange Act Release No. 87769,
84 FR 70589 (December 23, 2019). The Commission
designated February 20, 2020, as the date by which
the Commission must either approve or disapprove
the proposed rule change.
11 Amendment No. 2 is available on the
Commission’s website at https://www.sec.gov/
comments/sr-cboebzx-2019-057/srcboebzx
2019057.htm.
PO 00000
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Fmt 4703
Sfmt 4703
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change, as Modified by Amendment
No. 2
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
This Amendment No. 2 to SRCboeBZX–2019–057 amends and
replaces in its entirety Amendment No.
1 to the proposal, originally submitted
on December 17, 2019, which amended
and replaced in its entirety the proposal
as originally submitted on June 5, 2019.
The Exchange submits this Amendment
No. 2 in order to clarify certain points
and add additional details to the
proposal.
The Exchange received approval to
add new Rule 14.11(k) for the purpose
of permitting the listing and trading of
Managed Portfolio Shares, which are
securities issued by an actively managed
open-end management investment
company,12 on December 16, 2019.13
Rule 14.11(k)(2)(A) requires the
Exchange to file separate proposals
12 As defined in Rule 14.11(k)(3)(A), the term
‘‘Managed Portfolio Share’’ means a security that (a)
represents an interest in an investment company
registered under the Investment Company Act of
1940 (‘‘Investment Company’’) organized as an
open-end management investment company, that
invests in a portfolio of securities selected by the
Investment Company’s investment adviser
consistent with the Investment Company’s
investment objectives and policies; (b) is issued in
a Creation Unit (as defined below), or multiples
thereof, in return for a designated portfolio of
instruments (and/or an amount of cash) with a
value equal to the next determined net asset value
and delivered to the Authorized Participant (as
defined in the Investment Company’s Form N–1A
filed with the Commission) through a Confidential
Account; (c) when aggregated into a Redemption
Unit (as defined below), or multiples thereof, may
be redeemed for a designated portfolio of
instruments (and/or an amount of cash) with a
value equal to the next determined net asset value
delivered to the Confidential Account (as defined
below) for the benefit of the Authorized Participant;
and (d) the portfolio holdings for which are
disclosed within at least 60 days following the end
of every fiscal quarter.
13 See Securities Exchange Act Release No. 87759
(December 16, 2019), 84 FR 70223 (December 20,
2019) (SR–CboeBZX–2019–047).
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]]>Agencies
[Federal Register Volume 85, Number 33 (Wednesday, February 19, 2020)]
[Notices]
[Pages 9493-9494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03179]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88177; File No. SR-CboeEDGA-2019-013]
Self-Regulatory Organizations; Cboe EDGA 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
Introduce the Small Retail Broker Distribution Program
February 12, 2020.
On August 1, 2019, Cboe EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') 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 the EDGA fee schedule to introduce a
Small Retail Broker Distribution Program (the ``Program''). The
proposed rule change was immediately effective upon filing with the
Commission pursuant to Section 19(b)(3)(A) of the Act.\3\ The proposed
rule change was published for comment in the Federal Register on August
20, 2019.\4\ The Commission received no comment letters regarding the
proposed rule change. On September 30, 2019, under Sections 19(b)(2)
and (b)(3)(C) of the Act,\5\ the Commission temporarily suspended the
proposed rule change and instituted proceedings to determine whether to
approve or disapprove the proposed rule change (``OIP'').\6\ The
Commission has received no comment letters in response to the OIP.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(2) and (b)(3)(A).
\4\ See Securities Exchange Act Release No. 86676 (August 14,
2019), 84 FR 43218 (``Notice'').
\5\ 15 U.S.C. 78s(b)(3)(C).
\6\ See Securities Exchange Act Release No. 87165 (September 30,
2019), 84 FR 53205 (October 4, 2019).
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \7\ 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
[[Page 9494]]
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 the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on August 20, 2019. The 180th day after publication of
the Notice is February 16, 2020, and April 16, 2020 is an additional 60
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 the proposed
rule change. Accordingly, the Commission, pursuant to Section 19(b)(2)
of the Act,\8\ designates April 16, 2020 as the date by which the
Commission shall either approve or disapprove the proposed rule change
(File No. SR-CboeEDGA-2019-013).
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
\8\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-03179 Filed 2-18-20; 8:45 am]
BILLING CODE 8011-01-P
