Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Apply Additional Initial Listing Criteria for Companies Primarily Operating in Restrictive Markets, 45275-45276 [2020-16155]
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Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed change would provide the
public and investors with up-to-date
information about the types of
Derivative Securities Products that can
trade on the Exchange on a UTP basis
and would promote competition by
adding additional types of Derivative
Securities Products that may trade on
the Exchange pursuant to UTP.
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 proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; or (iii) become
operative prior to 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, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6) thereunder.8
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 9 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 10
permits the Commission to 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 upon filing. The
Exchange believes that a waiver of the
operative delay is consistent with the
protection of investors and the public
interest because it would allow for the
immediate trading, pursuant to UTP, of
Active Proxy Portfolio Shares, Tracking
Fund Shares, and Proxy Portfolio Shares
on the Exchange and therefore would
provide investors with an additional
7 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, 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.
9 17 CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
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8 17
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trading venue option. In addition, the
proposal would specifically name
products substantially similar to
Investment Company Units known as
Index Fund Shares on other exchanges
in the list of product that may trade on
the Exchange pursuant to unlisted
trading privileges. 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 proposed rule change
operative upon filing.11
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.
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–NYSEArca–2020–61 and
should be submitted on or before
August 17, 2020.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
J. Matthew DeLesDernier,
Assistant Secretary.
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–
NYSEArca–2020–61 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–NYSEArca–2020–61. 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
11 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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[FR Doc. 2020–16160 Filed 7–24–20; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–89358; File No. SR–
NASDAQ–2020–027]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Designation of a Longer Period for
Commission Action on a Proposed
Rule Change To Apply Additional
Initial Listing Criteria for Companies
Primarily Operating in Restrictive
Markets
July 21, 2020
On May 29, 2020, The Nasdaq Stock
Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’)
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 apply additional initial listing
criteria for companies primarily
operating in a jurisdiction that has
secrecy laws, blocking statues, national
security laws or other laws or
regulations restricting access to
information by regulators of U.S.-listed
companies in such jurisdiction. The
proposed rule change was published for
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices
comment in the Federal Register on
June 12, 2020.3
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding, or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is July 27, 2020.
The Commission is extending this 45day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change
and the comments received.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,5
designates September 10, 2020 as the
date by which the Commission shall
either approve or disapprove, or
institute proceedings to determine
whether to disapprove, the proposed
rule change (File No. SR–NASDAQ–
2020–027).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–16155 Filed 7–24–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89363; File No. SR–FICC–
2020–008]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change to Revise the
Clearing Agency Policy on Capital
Requirements
July 21, 2020.
jbell on DSKJLSW7X2PROD with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
3 See Securities Exchange Act Release No. 89027
(June 8, 2020), 85 FR 35962. Comments on the
proposed rule change can be found at: https://
www.sec.gov/comments/sr-nasdaq-2020-027/
srnasdaq2020027.htm.
4 15 U.S.C. 78s(b)(2).
5 Id.
6 17 CFR 200.30–3(a)(31).
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(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 15,
2020, Fixed Income Clearing
Corporation (‘‘FICC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the clearing agency. FICC filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(3) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change consists of
amendments to the Clearing Agency
Policy on Capital Requirements
(‘‘Capital Policy’’ or ‘‘Policy’’) of FICC
and its affiliates, National Securities
Clearing Corporation (‘‘NSCC’’) and The
Depository Trust Company (‘‘DTC,’’ and
together with FICC and NSCC, the
‘‘Clearing Agencies’’). In particular, the
proposed revisions to the Capital Policy
would (1) update the frequency of the
calculation of the Total Capital
Requirement (as defined below and in
the Policy) to align with the Clearing
Agencies’ quarterly financial statements;
(2) replace the description of the
calculation of the Recovery/Wind-down
Capital Requirement (as defined below
and in the Policy) with a reference to
the Clearing Agencies’ Recovery &
Wind-down Plans 5 to eliminate
redundancy between these documents;
(3) revise the description of the
additional liquid net assets (‘‘LNA’’)
funded by equity, referred to as the
‘‘Buffer’’ to provide the Clearing
Agencies with flexibility in calculating
this discretionary amount; and (4) make
other updates and revisions to the
Capital Policy in order to simplify the
language and improve the clarity of the
Policy, as described in greater detail
below.
U.S.C. 78s(b)(1).
CFR 240.19b-4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(3).
5 See Securities Exchange Act Release Nos. 83972
(August 28, 2018), 83 FR 44964 (September 4, 2018)
(SR–DTC–2017–021); 83953 (August 27, 2018), 83
FR 44381 (August 30, 2018) (SR–DTC–2017–803);
83973 (August 28, 2018), 83 FR 44942 (September
4, 2018) (SR–FICC–2017–021); 83954 (August 27,
2018), 83 FR 44361 (August 30, 2018) (SR–FICC–
2017–805); 83974 (August 28, 2018), 83 FR 44988
(September 4, 2018) (SR–NSCC–2017–017); 83955
(August 27, 2018), 83 FR 44340 (August 30, 2018)
(SR–NSCC–2017–805).
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II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency 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
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
The Clearing Agencies are proposing
to revise the Capital Policy, which was
adopted by the Clearing Agencies in
July 2017 6 and is maintained by the
Clearing Agencies in compliance with
Rule 17Ad–22(e)(15) under the Act,7 in
order to (1) update the frequency of the
calculation of the Total Capital
Requirement to align with the Clearing
Agencies’ quarterly financial statements;
(2) replace the description of the
calculation of the Recovery/Wind-down
Capital Requirement with a reference to
the Clearing Agencies’ Recovery &
Wind-down Plans to eliminate
redundancy between these documents;
(3) revise the description of the
additional LNA funded by equity,
referred to as the ‘‘Buffer’’ to provide the
Clearing Agencies with flexibility in
calculating this discretionary amount;
and (4) make other updates and
revisions to the Capital Policy in order
to simplify the language and improve
the clarity of the Policy, as described in
greater detail below.
Overview of the Capital Policy
The Capital Policy sets forth the
manner in which each Clearing Agency
identifies, monitors, and manages its
general business risk with respect to the
requirement to hold sufficient LNA
funded by equity to cover potential
general business losses so the Clearing
Agency can continue operations and
services as a going concern if such
losses materialize.8 The amount of LNA
funded by equity to be held by each of
the Clearing Agencies for this purpose is
defined in the Policy as the General
Business Risk Capital Requirement. The
6 See Securities Exchange Act Release No. 81105
(July 7, 2017), 82 FR 32399 (July 13, 2017) (SR–
DTC–2017–003, SR–FICC–2017–007, SR–NSCC–
2017–004).
7 17 CFR 240.17Ad–22(e)(15).
8 Supra note 6.
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Agencies
[Federal Register Volume 85, Number 144 (Monday, July 27, 2020)]
[Notices]
[Pages 45275-45276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16155]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89358; File No. SR-NASDAQ-2020-027]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Designation of a Longer Period for Commission Action on a
Proposed Rule Change To Apply Additional Initial Listing Criteria for
Companies Primarily Operating in Restrictive Markets
July 21, 2020
On May 29, 2020, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') 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 apply additional initial listing criteria for
companies primarily operating in a jurisdiction that has secrecy laws,
blocking statues, national security laws or other laws or regulations
restricting access to information by regulators of U.S.-listed
companies in such jurisdiction. The proposed rule change was published
for
[[Page 45276]]
comment in the Federal Register on June 12, 2020.\3\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 89027 (June 8,
2020), 85 FR 35962. Comments on the proposed rule change can be
found at: https://www.sec.gov/comments/sr-nasdaq-2020-027/srnasdaq2020027.htm.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \4\ provides that within 45 days of the
publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding, or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
45th day after publication of the notice for this proposed rule change
is July 27, 2020. The Commission is extending this 45-day time period.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The Commission finds it appropriate to designate a longer period
within which to take action on the proposed rule change so that it has
sufficient time to consider the proposed rule change and the comments
received. Accordingly, the Commission, pursuant to Section 19(b)(2) of
the Act,\5\ designates September 10, 2020 as the date by which the
Commission shall either approve or disapprove, or institute proceedings
to determine whether to disapprove, the proposed rule change (File No.
SR-NASDAQ-2020-027).
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\5\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-16155 Filed 7-24-20; 8:45 am]
BILLING CODE 8011-01-P