Polen Credit Opportunities Fund and Polen Capital Credit, LLC, 50926-50927 [2023-16403]
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Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Notices
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process may, for members who choose
to use it, reduce the overall cost of
clearing. Reducing the overall cost of
clearing could, in turn, lead Clearing
Members to clear more products. Thus,
these changes would contribute to the
prompt and accurate clearance process
and settlement of securities transactions
and derivative agreements, contracts,
and transactions and to assure the
safeguarding of securities, which is
consistent with the requirements of
Section 17(A)(b)(3)(F).21
The Commission believes, therefore,
that the Proposed Rule Change is
consistent with the requirements of
Section 17A(b)(3)(F) of the Act.22
B. Consistency With Rule 17Ad–
22(e)(21) Under the Act
Rule 17Ad–22(e)(21) requires covered
clearing agencies to establish,
implement, maintain, and enforce
written policies and procedures
reasonably designed to be efficient and
effective in meeting the requirements of
its participants and the markets it
serves, and have the covered clearing
agency’s management regularly review
the efficiency and effectiveness of its
clearing and settlement arrangements;
operating structure, including risk
management policies, procedures, and
systems; scope of products, cleared or
settled; and use of technology and
communication procedures.23 In
adopting Rule 17Ad–22(e)(21), the
Commission provided guidance that a
covered clearing agency generally
should consider in establishing and
maintaining policies and procedures
that address efficiency and
effectiveness, stating that it should
consider whether its design meets the
needs of its participants, particularly
with regard to choice of operating
structure and use of technology and
procedures.24
LCH SA’s members expressed interest
in using the triparty mechanism to the
CDSClear business to harmonize their
operational process across all clearing
services of LCH SA.25 The triparty
collateral mechanism is an optional
solution that would reduce the number
of manual actions necessary in the
processing of non-cash collateral
deposit and release for both the clearing
agency and the Clearing Members.
Reliance on the triparty mechanism
could reduce the manual steps
necessary for a Clearing Member to
allocate a basket of securities in LCH
SA’s system with an automatic process
for the settlement of margin calls and
handling of coupons. Such automation
would increase efficiency and allows for
additional use of technology with the
settlement of margin call.
The Commission believes, therefore,
that the Proposed Rule Change is
consistent with the requirements of Rule
17Ad–22(e)(21) under the Act.26
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the Proposed
Rule Change is consistent with the
requirements of the Act, and in
particular, Section 17A(b)(3)(F) of the
Act 27 and Rule 17Ad–22(e)(21)
thereunder.28
It Is Therefore Ordered pursuant to
Section 19(b)(2) of the Act that the
Proposed Rule Change (SR–LCH SA–
2023–004) be, and hereby is,
approved.29
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.30
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–16389 Filed 8–1–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
34967; 812–15472]
Polen Credit Opportunities Fund and
Polen Capital Credit, LLC
July 27, 2023.
Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’).
ACTION: Notice.
AGENCY:
Notice of an application under section
6(c) of the Investment Company Act of
1940 (the ‘‘Act’’) for an exemption from
sections 18(a)(2), 18(c) and 18(i) of the
Act, under sections 6(c) and 23(c) of the
Act for an exemption from rule 23c–3
under the Act, and for an order pursuant
to section 17(d) of the Act and rule 17d–
1 under the Act.
SUMMARY OF APPLICATION: Applicants
request an order to permit certain
registered closed-end investment
companies to issue multiple classes of
26 17
21 15
U.S.C. 78q–1(b)(3)(F).
22 15 U.S.C. 78q–1(b)(3)(F).
23 17 CFR 240.17Ad–22(e)(21).
24 See Standards for Covered Clearing Agencies,
Securities Exchange Act Release No. 78961 (Sept.
28, 2016), 81 FR 70786, 70841 (Oct. 13, 2016).
25 See Notice, 88 FR at 39493.
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CFR 240.17Ad–22(e)(21).
U.S.C. 78q–1(b)(3)(F).
28 17 CFR 240.17Ad–22(e)(21).
29 In approving the Proposed Rule Change, the
Commission considered the proposal’s impacts on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
30 17 CFR 200.30–3(a)(12).
27 15
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shares and to impose asset-based
distribution and/or service fees and
early withdrawal charges.
Polen Credit Opportunities
Fund and Polen Capital Credit, LLC.
APPLICANTS:
The application was filed
on May 31, 2023 and amended on July
10, 2023.
FILING DATES:
An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing on any application by
emailing the SEC’s Secretary at
Secretarys-Office@sec.gov and serving
the Applicants with a copy of the
request by email, if an email address is
listed for the relevant Applicant below,
or personally or by mail, if a physical
address is listed for the relevant
Applicant below. Hearing requests
should be received by the Commission
by 5:30 p.m. on August 21, 2023, and
should be accompanied by proof of
service on the Applicants, in the form
of an affidavit, or, for lawyers, a
certificate of service. Pursuant to rule 0–
5 under the 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 who wish to be notified of a
hearing may request notification by
emailing the Commission’s Secretary.
HEARING OR NOTIFICATION OF HEARING:
The Commission:
Secretarys-Office@sec.gov. Applicants:
Lisa Nosal, Esq., Kirkland & Ellis LLP,
lisa.nosal@kirkland.com; Nicole M.
Runyan, Esq., Kirkland & Ellis LLP,
nicole.runyan@kirkland.com; with a
copy to Joshua L. McCarthy, Esq., Polen
Capital Credit, LLC, jlmccarthy@
polencapital.com.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Trace W. Rakestraw, Senior Special
Counsel, at (202) 551–6825 (Division of
Investment Management, Chief
Counsel’s Office).
For
Applicants’ representations, legal
analysis, and condition, please refer to
Applicants’ application, dated July 10,
2023, which may be obtained via the
Commission’s website by searching for
the file number at the top of this
document, or for an Applicant using the
Company name search field on the
SEC’s EDGAR system. The SEC’s
EDGAR system may be searched at
https://www.sec.gov/edgar/searchedgar/
legacy/companysearch.html. You may
also call the SEC’s Public Reference
Room at (202) 551–8090.
SUPPLEMENTARY INFORMATION:
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02AUN1
Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Notices
For the Commission, by the Division of
Investment Management, under delegated
authority.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–16403 Filed 8–1–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98013; File No. SR–
NYSEAMER–2023–27]
Self-Regulatory Organizations; NYSE
American LLC; Order Granting
Approval of a Proposed Rule Change
To Amend Rule 915 (Criteria for
Underlying Securities) To Accelerate
the Listing of Options on Certain IPOs
July 27, 2023.
I. Introduction
On April 21, 2023, NYSE American
LLC (‘‘NYSE American’’ 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 amend NYSE American Rule
915 (Criteria for Underlying Securities)
to reduce the time to market for the
listing and trading of options on certain
covered securities following their initial
public offering (‘‘IPO’’). The proposed
rule change was published for comment
in the Federal Register on May 1, 2023.3
One comment letter was received on the
proposed rule change.4
On June 13, 2023, 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 This order grants approval
of the proposed rule change.
II. Description of the Proposal
The Exchange proposes to modify
Commentary .01(4)(a) of NYSE
American Rule 915 to reduce the time
for it to begin listing and trading options
on certain covered securities following
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 97374
(Apr. 25, 2023), 88 FR 26634 (‘‘Notice’’).
4 See Letter from Ellen Greene, Managing
Director, Equities & Options Market Structure,
SIFMA, to Vanessa Countryman, Secretary,
Commission (May 16, 2023), available at https://
www.sec.gov/comments/sr-nyseamer-2023-27/
srnyseamer202327.htm.
5 15 U.S.C. 78s(b)(2).
6 See Securities Exchange Act Release No. 97717,
88 FR 39895 (June 20, 2023).
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their IPO.7 NYSE American Rule 915
establishes requirements that
underlying securities must meet in
order for the Exchange to list and trade
option contracts on them. Commentary
.01 of that rule sets forth certain
guidelines for the Exchange to consider
in evaluating potential underlying
securities.
One such guideline is a minimum
market price per share that an
underlying security must trade at before
the Exchange can list options on it.8
Specifically, Commentary .01(4)(a) to
NYSE American Rule 915 requires the
market price per share of an underlying
covered security to have been at least
$3.00 for the previous three consecutive
business days preceding the date on
which the Exchange submits a
certificate to The Options Clearing
Corporation (‘‘OCC’’) to list and trade
options on it (‘‘three-day lookback
period’’).9 Under the current rule, if an
IPO occurs on a Monday, the earliest
date the Exchange could submit its
listing certificate to OCC would be
Thursday, with the market price
determined by the closing price over the
three-day lookback period from Monday
through Wednesday. An option on the
security would then be eligible for
trading on the Exchange on Friday (i.e.,
within four business days following the
IPO inclusive of the day the listing
certificate is submitted to OCC).
The Exchange proposes to waive the
three-day lookback period in
Commentary .01(4)(a) for certain
covered securities following their IPO
and accelerate the listing of options on
such securities by up to two days.10 As
proposed, the Exchange would permit
options to be listed and traded on a new
IPO with a market capitalization of at
least $3 billion based upon its offering
price starting on or after the second
business day following the covered
security’s IPO day (i.e., not inclusive of
7 See 15 U.S.C. 77r(b)(1)(A) (defining ‘‘covered
security’’).
8 NYSE American Rule 915(a) requires that, for
underlying securities to be eligible for options
listing, such securities must be duly registered and
be an ‘‘NMS stock,’’ as defined in Rule 600 of
Regulation NMS under the Act, and be
characterized by having a substantial number of
outstanding shares which are widely held and
actively traded. See NYSE American Rules 915(a)(1)
and (2).
9 The Exchange states that the Options Listing
Procedures Plan (‘‘OLPP’’) requires that the listing
certificate be provided to OCC no earlier than 12:01
a.m. and no later than 11:00 a.m. (Chicago time) on
the trading day prior to the day on which trading
is to begin. See the OLPP, at p. 3, available at:
https://ncuoccblobdev.blob.core.windows.net/
media/theocc/media/clearing-services/services/
options_listing_procedures_plan.pdf.
10 See Notice, supra note 3, 88 FR at 26635.
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50927
the day of the IPO).11 For example,
under the proposed rule, if an IPO for
a company with a market capitalization
of $3 billion (based upon its offering
price) occurs on a Monday, the
Exchange could submit a listing
certificate to OCC (to allow it to list and
trade options on the IPO security) on
Tuesday if all of the requirements for
options listing are satisfied. Options on
the IPO security could then list and
begin trading on the Exchange on
Wednesday (i.e., starting on or after the
second business day following the IPO
day, not inclusive of the IPO day). In
this way, the proposal could accelerate
the listing and trading of options on IPO
securities by up to two days.
III. Discussion and Commission’s
Findings
After careful review of the proposed
rule change, the Commission finds that
the proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange.12 Specifically, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,13 which requires that
the rules of a national securities
exchange be designed, among other
things, to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
As discussed above, the Exchange
proposes to reduce the time to market
for the listing and trading of options on
underlying covered securities following
their IPO if they have a market
capitalization of at least $3 billion based
upon the offering price. By waiving the
three-day lookback period for such
covered securities in Commentary
.01(4)(a), the proposed rule change
could reduce the time to market of
options on such securities by up to two
days, as options on such securities
11 See proposed Commentary .01(4)(a)(ii) to NYSE
American Rule 915. The Exchange also proposes a
non-substantive change to number the existing and
proposed criteria for covered securities as (i) and
(ii) of paragraph (4)(a). See proposed Commentary
.01(4)(a)(i) and (ii) to NYSE American Rule 915.
12 In approving this proposed rule change, the
Commission has considered the rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
13 15 U.S.C. 78f(b)(5).
E:\FR\FM\02AUN1.SGM
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]]>Agencies
[Federal Register Volume 88, Number 147 (Wednesday, August 2, 2023)]
[Notices]
[Pages 50926-50927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16403]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 34967; 812-15472]
Polen Credit Opportunities Fund and Polen Capital Credit, LLC
July 27, 2023.
AGENCY: Securities and Exchange Commission (``Commission'' or ``SEC'').
ACTION: Notice.
-----------------------------------------------------------------------
Notice of an application under section 6(c) of the Investment
Company Act of 1940 (the ``Act'') for an exemption from sections
18(a)(2), 18(c) and 18(i) of the Act, under sections 6(c) and 23(c) of
the Act for an exemption from rule 23c-3 under the Act, and for an
order pursuant to section 17(d) of the Act and rule 17d-1 under the
Act.
Summary of Application: Applicants request an order to permit certain
registered closed-end investment companies to issue multiple classes of
shares and to impose asset-based distribution and/or service fees and
early withdrawal charges.
Applicants: Polen Credit Opportunities Fund and Polen Capital Credit,
LLC.
Filing Dates: The application was filed on May 31, 2023 and amended on
July 10, 2023.
Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing on any application by emailing
the SEC's Secretary at [email protected] and serving the
Applicants with a copy of the request by email, if an email address is
listed for the relevant Applicant below, or personally or by mail, if a
physical address is listed for the relevant Applicant below. Hearing
requests should be received by the Commission by 5:30 p.m. on August
21, 2023, and should be accompanied by proof of service on the
Applicants, in the form of an affidavit, or, for lawyers, a certificate
of service. Pursuant to rule 0-5 under the 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 who wish to be notified of a hearing
may request notification by emailing the Commission's Secretary.
ADDRESSES: The Commission: [email protected]. Applicants: Lisa
Nosal, Esq., Kirkland & Ellis LLP, [email protected]; Nicole M.
Runyan, Esq., Kirkland & Ellis LLP, [email protected]; with a
copy to Joshua L. McCarthy, Esq., Polen Capital Credit, LLC,
[email protected].
FOR FURTHER INFORMATION CONTACT: Trace W. Rakestraw, Senior Special
Counsel, at (202) 551-6825 (Division of Investment Management, Chief
Counsel's Office).
SUPPLEMENTARY INFORMATION: For Applicants' representations, legal
analysis, and condition, please refer to Applicants' application, dated
July 10, 2023, which may be obtained via the Commission's website by
searching for the file number at the top of this document, or for an
Applicant using the Company name search field on the SEC's EDGAR
system. The SEC's EDGAR system may be searched at https://www.sec.gov/edgar/searchedgar/legacy/companysearch.html. You may also call the
SEC's Public Reference Room at (202) 551-8090.
[[Page 50927]]
For the Commission, by the Division of Investment Management,
under delegated authority.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-16403 Filed 8-1-23; 8:45 am]
BILLING CODE 8011-01-P
