Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1.1E To Modify the Definition of “UTP Exchange Traded Product” and Rule 5.1E To Incorporate the Modified Definition of “UTP Exchange Traded Product”, 25497-25499 [2020-09252]
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Federal Register / Vol. 85, No. 85 / Friday, May 1, 2020 / Notices
obligations pursuant to Exchange Act
Rule 12h–6 (17 CFR 240.12h–6). Form
15F requires a foreign private issuer to
disclose information that helps
investors understand the foreign private
issuer’s decision to terminate its
Exchange Act reporting obligations and
assists the Commission staff in
determining whether the filer is eligible
to terminate its Exchange Act reporting
obligations pursuant to Rule 12h–6.
Rule 12h–6 provides a process for a
foreign private issuer to exit the
Exchange Act registration and reporting
regime when there is relatively little
U.S. investor interest in its securities.
Rule 12h–6 is intended to remove a
disincentive for foreign private issuers
to register their securities with the
Commission by lessening concerns that
the Exchange Act registration and
reporting system would be difficult to
exit once an issuer enters it. We
estimate that Form 15F takes
approximately 30 hours to prepare and
is filed by approximately 30 issuers. We
estimate that 25% of the 30 hours per
response (7.5 hours per response) is
prepared by the filer for a total annual
reporting burden of 225 hours (7.5 hours
per response × 30 responses).
Written comments are invited on: (a)
Whether this 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
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
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov.
Dated: April 28, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–09291 Filed 4–30–20; 8:45 am]
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88756; File No. SR–
NYSEAMER–2020–32]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 1.1E To
Modify the Definition of ‘‘UTP
Exchange Traded Product’’ and Rule
5.1E To Incorporate the Modified
Definition of ‘‘UTP Exchange Traded
Product’’
April 27, 2020.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on April 16,
2020, NYSE American LLC
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. 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 proposes to amend (1)
Rule 1.1E to modify the definition of
‘‘UTP Exchange Traded Product’’ and
(2) Rule 5.1E to incorporate the
definition of UTP Exchange Traded
Product as set forth in revised Rule 1.1E.
The proposed rule change is available
on the Exchange’s website at
www.nyse.com, at the principal office of
the Exchange, 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
self-regulatory organization 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 those 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 parts of such
statements.
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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25497
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend (1)
Rule 1.1E to modify the definition of
‘‘UTP Exchange Traded Product’’ and
(2) Rule 5.1E to incorporate the
definition of UTP Exchange Traded
Product as set forth in revised Rule 1.1E.
Rule 1.1E
Rule 1.1E(bbb) currently provides that
the term ‘‘Exchange Traded Product’’
means a security that meets the
definition of ‘‘derivative securities
product’’ in Rule 19b–4(e) under the
Securities Exchange Act of 1934 and a
‘‘UTP Exchange Traded Product’’ means
an Exchange Traded Product that trades
on the Exchange pursuant to unlisted
trading privileges. The Exchange
proposes to amend the definition of
‘‘UTP Exchange Traded Product’’ to
mean one of the following Exchange
Traded Products that trades on the
Exchange pursuant to unlisted trading
privileges: Equity Linked Notes,
Investment Company Units, IndexLinked Exchangeable Notes, Equity
Gold Shares, Equity Index-Linked
Securities, Commodity-Linked
Securities, Currency-Linked Securities,
Fixed-Income Index-Linked Securities,
Futures-Linked Securities, MultifactorIndex-Linked Securities, Trust
Certificates, Currency and Index
Warrants, Portfolio Depository Receipts,
Trust Issued Receipts, CommodityBased Trust Shares, Currency Trust
Shares, Commodity Index Trust Shares,
Commodity Futures Trust Shares,
Partnership Units, Paired Trust Shares,
Trust Units, Managed Fund Shares,
Managed Trust Securities, and Managed
Portfolio Shares.
This proposed change is based on
NYSE National, Inc. (‘‘NYSE National’’)
Rule 1.1(m) and NYSE Chicago, Inc.
(‘‘NYSE Chicago’’) Rule 1.1(k).4 This list
is designed to align the rules of the
Exchange with the rules of NYSE
National and NYSE Chicago and to
enumerate the types of Exchange Traded
Products to which the Exchange would
extend unlisted trading privileges
(‘‘UTP’’).
4 NYSE National and NYSE Chicago have filed
proposed rule changes for immediate effectiveness
to amend their respective rules to add Managed
Portfolio Shares to their definitions of UTP
Exchange Traded Products. See SR–NYSENAT–
2020–16 (filed April 16, 2020) and SR–NYSECHX–
2020–13 (filed April 16, 2020).
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Federal Register / Vol. 85, No. 85 / Friday, May 1, 2020 / Notices
Rule 5.1E
Rule 5.1E(a)(1) provides that the
Exchange may extend UTP to any
security that is an NMS stock (as
defined in Rule 600 of Regulation NMS
under the Act) that is listed on another
national securities exchange or with
respect to which unlisted trading
privileges may otherwise be extended in
accordance with Section 12(f) of the
Act. Rule 5.1E(a)(2) further specifies
that a UTP Exchange Traded Product,
which is defined in that Rule as a ‘‘new
derivative securities product’’ as
defined in Rule 19b–4(e) under the
Exchange Act and traded pursuant to
Rule 19b–4(e) under the Act, would be
subject to the additional rules
enumerated in Rule 5.1E(a)(2)(A)–(E).
Because the Exchange proposes to
modify the definition of UTP Exchange
Trading Product in Rule 1.1E(bbb) to
conform to the rules of NYSE National
and NYSE Chicago, the Exchange
proposes to amend Rule 5.1E(a)(2) to
eliminate redundant text and cross
reference the term ‘‘UTP Exchange
Traded Product’’ as it is defined in Rule
1.1E. This proposed change would also
conform Rule 5.1E(a)(2) with the
comparable NYSE National rule.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,6 in particular, because it is
designed to remove impediments to and
perfect the mechanism of a free and
open market, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest.
The Exchange believes its proposed
rule change ensures that Rule 1.1E
identifies and publicly states the
complete list of Exchange Traded
Products to which UTP may be
extended for trading on the Exchange.
The Exchange also believes that the
proposed rule change removes
impediments to and perfects the
mechanism of a free and open market,
promotes just and equitable principles
of trade, and protects investors and the
public interest by promoting
consistency with the rules of the
Exchange’s affiliated markets and by
providing additional specificity, clarity,
and transparency in the Exchange’s
rules with respect to the Exchange
Traded Products that may be traded on
a UTP basis on the Exchange.
The Exchange believes that its
proposal to amend Rule 5.1E(a)(2) also
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) & (5).
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removes impediments to and perfects
the mechanism of a free and open
market, promotes just and equitable
principles of trade, and protects
investors and the public interest
because it proposes to conform this rule
governing the trading of UTP Exchange
Traded Products with the comparable
rule of the Exchange’s affiliated market,
NYSE National, which has been
approved by the Commission.7 The
proposed rule change would also
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and
protect investors and the public interest
by promoting continuity across
affiliated 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 change would conform
Exchange rules, as described herein,
with the comparable rules of its
affiliated exchanges, NYSE National and
NYSE Chicago, and permit UTP trading
of Exchange Traded Products on the
Exchange in a manner consistent with
its affiliated exchanges.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
7 In its Order approving the NYSE National rule
on which this proposed change is based, the
Commission found that the NYSE National rules set
forth an ‘‘appropriate framework for the trading of
Exchange Traded Products on a UTP basis on the
Exchange’’ and are consistent with Section 6(b)(5)
of the Act. See Securities and Exchange Act Release
No. 83289 (May 17, 2018), 83 FR 23968 (May 23,
2018), at 23975.
8 15 U.S.C. 78s(b)(3)(A).
9 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
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A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative for 30 days after the
date of the filing. However, pursuant to
Rule 19b–4(f)(6)(iii),11 the Commission
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 so that
the proposal may become operative
immediately upon filing. The
Commission notes that the Exchange’s
proposal would conform the Exchange’s
rules, as described herein, to the
corresponding rules of its affiliated
exchanges.12 Accordingly, the
Commission believes that the proposal
raises no new or novel regulatory issues
and waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest. The
Commission therefore waives the 30-day
operative delay and designates the
proposed rule change to be operative
upon filing.13
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.
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–
NYSEAMER–2020–32 on the subject
line.
file the proposed rule change, along with a brief
description and text of 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.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 See NYSE National Rules 1.1 and 5.1 and NYSE
Chicago Rule 1.1.
13 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\01MYN1.SGM
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Federal Register / Vol. 85, No. 85 / Friday, May 1, 2020 / 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–NYSEAMER–2020–32. 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–NYSEAMER–2020–32 and
should besubmitted on or before May
22, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–09252 Filed 4–30–20; 8:45 am]
BILLING CODE 8011–01–P
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COMMISSION
Sunshine Act Meeting; Cancellation
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: 85 FR 23407, April 27,
2020
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Wednesday, April 29, 2020
at 12:00 p.m.
14 17
CFR 200.30–3(a)(12).
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The Closed
Meeting scheduled for Wednesday,
April 29, 2020 at 12:00 p.m., has been
cancelled.
CHANGES IN THE MEETING:
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Dated: April 29, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020–09449 Filed 4–29–20; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–508, OMB Control No.
3235–0565]
60 Day Notice—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 482
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘Paperwork
Reduction Act’’), the Securities and
Exchange Commission (the
‘‘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 (‘‘OMB’’) for
extension and approval.
Like most issuers of securities, when
an investment company (‘‘fund’’) 1 offers
its shares to the public, its promotional
efforts become subject to the advertising
restrictions of the Securities Act of 1933
(15 U.S.C. 77) (the ‘‘Securities Act’’). In
recognition of the particular problems
faced by funds that continually offer
securities and wish to advertise their
securities, the Commission has adopted
advertising safe harbor rules. The most
important of these is rule 482 (17 CFR
230.482) under the Securities Act,
which, under certain circumstances,
permits funds to advertise investment
performance data, as well as other
information. Rule 482 advertisements
are deemed to be ‘‘prospectuses’’ under
1 ‘‘Investment company’’ refers to both
investment companies registered under the
Investment Company Act of 1940 (‘‘Investment
Company Act’’) (15 U.S.C. 80a–1 et seq.) and
business development companies.
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Section 10(b) of the Securities Act (15
U.S.C. 77j(b)).
Rule 482 contains certain
requirements regarding the disclosure
that funds are required to provide in
qualifying advertisements. These
requirements are intended to encourage
the provision to investors of information
that is balanced and informative,
particularly in the area of investment
performance. For example, a fund is
required to include disclosure advising
investors to consider the fund’s
investment objectives, risks, charges and
expenses, and other information
described in the fund’s prospectus, and
highlighting the availability of the
fund’s prospectus and, if applicable, its
summary prospectus. In addition, rule
482 advertisements that include
performance data of open-end funds or
insurance company separate accounts
offering variable annuity contracts are
required to include certain standardized
performance information, information
about any sales loads or other
nonrecurring fees, and a legend warning
that past performance does not
guarantee future results. Such funds
including performance information in
rule 482 advertisements are also
required to make available to investors
month-end performance figures via
website disclosure or by a toll-free
telephone number, and to disclose the
availability of the month-end
performance data in the advertisement.
The rule also sets forth requirements
regarding the prominence of certain
disclosures, requirements regarding
advertisements that make tax
representations, requirements regarding
advertisements used prior to the
effectiveness of the fund’s registration
statement, requirements regarding the
timeliness of performance data, and
certain required disclosures by money
market funds.
Rule 482 advertisements must be filed
with the Commission or, in the
alternative, with the Financial Industry
Regulatory Authority (‘‘FINRA’’).2 This
information collection differs from
many other federal information
collections that are primarily for the use
and benefit of the collecting agency.
Rule 482 contains requirements that
are intended to encourage the provision
to investors of information that is
balanced and informative, particularly
2 See note to rule 482(h) under the Securities Act,
which states that ‘‘these advertisements, unless
filed with [FINRA], are required to be filed in
accordance with the requirements of § 230.497.’’
See also rule 24b–3 under the Investment Company
Act (17 CFR 270.24b–3), which provides that any
sales material, including rule 482 advertisements,
shall be deemed filed with the Commission for
purposes of Section 24(b) of the Investment
Company Act upon filing with FINRA.
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]]>Agencies
[Federal Register Volume 85, Number 85 (Friday, May 1, 2020)]
[Notices]
[Pages 25497-25499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09252]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88756; File No. SR-NYSEAMER-2020-32]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 1.1E To Modify the Definition of ``UTP Exchange Traded Product''
and Rule 5.1E To Incorporate the Modified Definition of ``UTP Exchange
Traded Product''
April 27, 2020.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on April 16, 2020, NYSE American LLC (``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared by the self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend (1) Rule 1.1E to modify the
definition of ``UTP Exchange Traded Product'' and (2) Rule 5.1E to
incorporate the definition of UTP Exchange Traded Product as set forth
in revised Rule 1.1E. The proposed rule change is available on the
Exchange's website at www.nyse.com, at the principal office of the
Exchange, 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 self-regulatory organization
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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend (1) Rule 1.1E to modify the
definition of ``UTP Exchange Traded Product'' and (2) Rule 5.1E to
incorporate the definition of UTP Exchange Traded Product as set forth
in revised Rule 1.1E.
Rule 1.1E
Rule 1.1E(bbb) currently provides that the term ``Exchange Traded
Product'' means a security that meets the definition of ``derivative
securities product'' in Rule 19b-4(e) under the Securities Exchange Act
of 1934 and a ``UTP Exchange Traded Product'' means an Exchange Traded
Product that trades on the Exchange pursuant to unlisted trading
privileges. The Exchange proposes to amend the definition of ``UTP
Exchange Traded Product'' to mean one of the following Exchange Traded
Products that trades on the Exchange pursuant to unlisted trading
privileges: Equity Linked Notes, Investment Company Units, Index-Linked
Exchangeable Notes, Equity Gold Shares, Equity Index-Linked Securities,
Commodity-Linked Securities, Currency-Linked Securities, Fixed-Income
Index-Linked Securities, Futures-Linked Securities, Multifactor-Index-
Linked Securities, Trust Certificates, Currency and Index Warrants,
Portfolio Depository Receipts, Trust Issued Receipts, Commodity-Based
Trust Shares, Currency Trust Shares, Commodity Index Trust Shares,
Commodity Futures Trust Shares, Partnership Units, Paired Trust Shares,
Trust Units, Managed Fund Shares, Managed Trust Securities, and Managed
Portfolio Shares.
This proposed change is based on NYSE National, Inc. (``NYSE
National'') Rule 1.1(m) and NYSE Chicago, Inc. (``NYSE Chicago'') Rule
1.1(k).\4\ This list is designed to align the rules of the Exchange
with the rules of NYSE National and NYSE Chicago and to enumerate the
types of Exchange Traded Products to which the Exchange would extend
unlisted trading privileges (``UTP'').
---------------------------------------------------------------------------
\4\ NYSE National and NYSE Chicago have filed proposed rule
changes for immediate effectiveness to amend their respective rules
to add Managed Portfolio Shares to their definitions of UTP Exchange
Traded Products. See SR-NYSENAT-2020-16 (filed April 16, 2020) and
SR-NYSECHX-2020-13 (filed April 16, 2020).
---------------------------------------------------------------------------
[[Page 25498]]
Rule 5.1E
Rule 5.1E(a)(1) provides that the Exchange may extend UTP to any
security that is an NMS stock (as defined in Rule 600 of Regulation NMS
under the Act) that is listed on another national securities exchange
or with respect to which unlisted trading privileges may otherwise be
extended in accordance with Section 12(f) of the Act. Rule 5.1E(a)(2)
further specifies that a UTP Exchange Traded Product, which is defined
in that Rule as a ``new derivative securities product'' as defined in
Rule 19b-4(e) under the Exchange Act and traded pursuant to Rule 19b-
4(e) under the Act, would be subject to the additional rules enumerated
in Rule 5.1E(a)(2)(A)-(E).
Because the Exchange proposes to modify the definition of UTP
Exchange Trading Product in Rule 1.1E(bbb) to conform to the rules of
NYSE National and NYSE Chicago, the Exchange proposes to amend Rule
5.1E(a)(2) to eliminate redundant text and cross reference the term
``UTP Exchange Traded Product'' as it is defined in Rule 1.1E. This
proposed change would also conform Rule 5.1E(a)(2) with the comparable
NYSE National rule.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\6\ in particular, because it
is designed to remove impediments to and perfect the mechanism of a
free and open market, to promote just and equitable principles of
trade, and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) & (5).
---------------------------------------------------------------------------
The Exchange believes its proposed rule change ensures that Rule
1.1E identifies and publicly states the complete list of Exchange
Traded Products to which UTP may be extended for trading on the
Exchange. The Exchange also believes that the proposed rule change
removes impediments to and perfects the mechanism of a free and open
market, promotes just and equitable principles of trade, and protects
investors and the public interest by promoting consistency with the
rules of the Exchange's affiliated markets and by providing additional
specificity, clarity, and transparency in the Exchange's rules with
respect to the Exchange Traded Products that may be traded on a UTP
basis on the Exchange.
The Exchange believes that its proposal to amend Rule 5.1E(a)(2)
also removes impediments to and perfects the mechanism of a free and
open market, promotes just and equitable principles of trade, and
protects investors and the public interest because it proposes to
conform this rule governing the trading of UTP Exchange Traded Products
with the comparable rule of the Exchange's affiliated market, NYSE
National, which has been approved by the Commission.\7\ The proposed
rule change would also remove impediments to and perfect the mechanism
of a free and open market and a national market system and protect
investors and the public interest by promoting continuity across
affiliated exchanges.
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\7\ In its Order approving the NYSE National rule on which this
proposed change is based, the Commission found that the NYSE
National rules set forth an ``appropriate framework for the trading
of Exchange Traded Products on a UTP basis on the Exchange'' and are
consistent with Section 6(b)(5) of the Act. See Securities and
Exchange Act Release No. 83289 (May 17, 2018), 83 FR 23968 (May 23,
2018), at 23975.
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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 change would
conform Exchange rules, as described herein, with the comparable rules
of its affiliated exchanges, NYSE National and NYSE Chicago, and permit
UTP trading of Exchange Traded Products on the Exchange in a manner
consistent with its affiliated exchanges.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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, along
with a brief description and text of 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) \10\ normally
does not become operative for 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission 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 so that the proposal
may become operative immediately upon filing. The Commission notes that
the Exchange's proposal would conform the Exchange's rules, as
described herein, to the corresponding rules of its affiliated
exchanges.\12\ Accordingly, the Commission believes that the proposal
raises no new or novel regulatory issues and waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest. The Commission therefore waives the 30-day operative
delay and designates the proposed rule change to be operative upon
filing.\13\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ See NYSE National Rules 1.1 and 5.1 and NYSE Chicago Rule
1.1.
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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.
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-NYSEAMER-2020-32 on the subject line.
[[Page 25499]]
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-NYSEAMER-2020-32. 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-NYSEAMER-2020-32 and should be submitted
on or before May 22, 2020.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-09252 Filed 4-30-20; 8:45 am]
BILLING CODE 8011-01-P
