80 FR 57412 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 184 (September 23, 2015)
Federal Register Volume 80, Issue 184 (September 23, 2015)
| Page Range | 57412-57414 | |
| FR Document | 2015-24063 |
[Federal Register Volume 80, Number 184 (Wednesday, September 23, 2015)] [Notices] [Pages 57412-57414] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-24063] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75943; File No. SR-CBOE-2015-078] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule September 17, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on September 8, 2015, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 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 the Fees Schedule to codify an existing fee related to catastrophic error reviews. [[Page 57413]] The text of the proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, 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 the Fees Schedule to codify an existing fee related to catastrophic error reviews. By way of background, Rule 6.25 (Nullification and Adjustment of Options Transactions including Obvious Errors) governs the adjustment and nullification of erroneous options transactions, including for ``Catastrophic Errors.'' Pursuant to Exchange Rule 6.25, the Catastrophic Error provisions provide market participants with a notification period under which they may file a request for review with the Exchange of a potential Catastrophic Error. In addition, Exchange Rule 6.25(d)(3) currently provides that if it is determined by an Official \3\ that a Catastrophic Error has not occurred, the Trading Permit Holder will be subject to a charge of $5,000. The Exchange notes that while this charge is explicitly provided for in the Exchange Rules (i.e., Rule 6.25), it is not codified in the Exchange's Fees Schedule. The Exchange proposes to add the existing $5,000 charge to the Fees Schedule to alleviate any potential confusion regarding the existence and applicability of the fee. --------------------------------------------------------------------------- \3\ Rule 6.25 defines ``Official'' as an Officer of the Exchange or such other employee designee of the Exchange that is trained in the application of this rule. See Rule 6.25(a)(3). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') [sic] and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\4\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \5\ requirements that the rules of an exchange be designed 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. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the Exchange believes that codifying an existing fee in the Fees Schedule (in addition to the Exchange's Rules, where it is currently provided for), will alleviate potential confusion and maintain clarity in the Fees Schedule, which serves 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. B. Self-Regulatory Organization's Statement on Burden on Competition CBOE 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 to codify in the Fees Schedule a fee that currently is referenced only in the Exchange's Rules is not intended for competitive reasons and only applies to CBOE. The Exchange also notes that no rights or obligations of Trading Permit Holders are affected by the change. 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 \6\ and paragraph (f) of Rule 19b-4 \7\ 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 change should be approved or disapproved. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A). \7\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CBOE-2015-078 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-2015-078. 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 Web site (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 Web site 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 [[Page 57414]] received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2015-078 and should be submitted on or before October 14, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-24063 Filed 9-22-15; 8:45 am] BILLING CODE 8011-01-P
![57412 Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices
related amendments to be 120 days after change provides the municipal Commission and any person, other than
the publication of the implementation securities industry with greater certainty those that may be withheld from the
guidance by the MSRB, but no later than regarding the length and adequacy of public in accordance with the
April 29, 2016. the implementation period. The provisions of 5 U.S.C. 552, will be
Commission believes the proposed rule available for Web site viewing and
C. Self-Regulatory Organization’s
change is consistent with the protection printing in the Commission’s Public
Statement on Comments on the
of investors and the public interest Reference Room, 100 F Street NE.,
Proposed Rule Change Received From
because it will help promote consistent Washington, DC 20549 on official
Members, Participants, or Others
and accurate compliance and further the business days between the hours of
Written comments were neither stated purposes of new Rule G–18 and 10:00 a.m. and 3:00 p.m. Copies of the
solicited nor received on the proposed the related amendments. In addition, filing also will be available for
rule change. the proposed rule change does not alter inspection and copying at the principal
III. Date of Effectiveness of the any rule language and will, instead, office of the MSRB. All comments
Proposed Rule Change and Timing for only revise the effective date of new received will be posted without change;
Commission Action Rule G–18 and the related amendments, the Commission does not edit personal
which were previously approved by the identifying information from
Pursuant to Section 19(b)(3)(A) 11 of Commission. Therefore, the submissions. You should submit only
the Act and Rule 19b–4(f)(6) 12 Commission hereby designates the information that you wish to make
thereunder, the MSRB has designated proposed rule change operative upon available publicly. All submissions
the proposed rule change as one that filing. should refer to File Number SR–MSRB–
effects a change that: (i) Does not At any time within 60 days of the 2015–10 and should be submitted on or
significantly affect the protection of filing of the proposed rule change, the before October 14, 2015.
investors or the public interest; (ii) does Commission summarily may
not impose any significant burden on For the Commission, pursuant to delegated
temporarily suspend such rule change if authority.16
competition; and (iii) by its terms, does it appears to the Commission that such
not become operative for 30 days after Brent J. Fields,
action is necessary or appropriate in the Secretary.
the date of the filing, or such shorter public interest, for the protection of
time as the Commission may designate. [FR Doc. 2015–24059 Filed 9–22–15; 8:45 am]
investors, or otherwise in furtherance of
A proposed rule change filed under the purposes of the Act.
BILLING CODE 8011–01–P
Rule 19b–4(f)(6) normally does not
become operative until 30 days after the IV. Solicitation of Comments
date of filing.13 However, Rule 19b– SECURITIES AND EXCHANGE
Interested persons are invited to
4(f)(6)(iii) permits the Commission to COMMISSION
submit written data, views, and
designate a shorter time if such action arguments concerning the foregoing, [Release No. 34–75943; File No. SR–CBOE–
is consistent with the protection of including whether the proposed rule 2015–078]
investors and the public interest.14 The change is consistent with the Act.
MSRB has requested that the Comments may be submitted by any of Self-Regulatory Organizations;
Commission designate the proposed the following methods: Chicago Board Options Exchange,
rule change operative upon filing, as Incorporated; Notice of Filing and
specified in Rule 19b–4(f)(6)(iii), which Electronic Comments Immediate Effectiveness of a Proposed
would make the proposed rule change • Use the Commission’s Internet Rule Change To Amend the Fees
operative on September 3, 2015.15 comment form (http://www.sec.gov/ Schedule
According to the MSRB, the proposed rules/sro.shtml); or September 17, 2015.
rule change is designed to afford dealers • Send an email to rule-comments@
Pursuant to Section 19(b)(1) of the
four months with the use of the sec.gov. Please include File Number SR–
Securities Exchange Act of 1934 (the
published implementation guidance to MSRB–2015–10 on the subject line. ‘‘Act’’),1 and Rule 19b–4 thereunder,2
prepare to comply with the
Paper Comments notice is hereby given that on
requirements of new Rule G–18 and the
• Send paper comments in triplicate September 8, 2015, Chicago Board
related amendments. The MSRB Options Exchange, Incorporated (the
believes the proposed rule change to Secretary, Securities and Exchange
Commission, 100 F Street NE., ‘‘Exchange’’ or ‘‘CBOE’’) filed with the
provides dealers with sufficient time to Securities and Exchange Commission
review such guidance and utilize it, for Washington, DC 20549.
(the ‘‘Commission’’) the proposed rule
example, in their development or All submissions should refer to File
change as described in Items I, II, and
revision of policies and procedures Number SR–MSRB–2015–10. This file
III below, which Items have been
necessary to comply with new Rule G– number should be included on the
prepared by the Exchange. The
18 and the related amendments. The subject line if email is used. To help the
Commission is publishing this notice to
MSRB also stated that the proposed rule Commission process and review your
solicit comments on the proposed rule
comments more efficiently, please use
change from interested persons.
11 15 U.S.C. 78s(b)(3)(A). only one method. The Commission will
12 17 CFR 240.19b–4(f)(6). post all comments on the Commission’s I. Self-Regulatory Organization’s
13 Id.
Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of
14 In addition, Rule 19b–4(f)(6)(iii) requires a self-
the Proposed Rule Change
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rules/sro.shtml). Copies of the
regulatory organization to give the Commission
written notice of its intent to file a proposed rule submission, all subsequent The Exchange proposes to amend the
change, along with a brief description and text of amendments, all written statements Fees Schedule to codify an existing fee
such proposed rule change, at least five business with respect to the proposed rule related to catastrophic error reviews.
days prior to the date of filing, or such shorter time change that are filed with the
as designated by the Commission. The Commission
has designated a shorter time for delivery of such Commission, and all written 16 17 CFR 200.30–3(a)(12).
written notice. communications relating to the 1 15 U.S.C. 78s(b)(1).
15 See SR–MSRB–2015–10 (September 3, 2015). proposed rule change between the 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices 57413
The text of the proposed rule change is Securities Exchange Act of 1934 (the 19b–4 7 thereunder. At any time within
available on the Exchange’s Web site ‘‘Act’’) [sic] and the rules and 60 days of the filing of the proposed rule
(http://www.cboe.com/AboutCBOE/ regulations thereunder applicable to the change, the Commission summarily may
CBOELegalRegulatoryHome.aspx), at Exchange and, in particular, the temporarily suspend such rule change if
the Exchange’s Office of the Secretary, requirements of Section 6(b) of the Act.4 it appears to the Commission that such
and at the Commission’s Public Specifically, the Exchange believes the action is necessary or appropriate in the
Reference Room. proposed rule change is consistent with public interest, for the protection of
the Section 6(b)(5) 5 requirements that investors, or otherwise in furtherance of
II. Self-Regulatory Organization’s
the rules of an exchange be designed to the purposes of the Act. If the
Statement of the Purpose of, and
prevent fraudulent and manipulative Commission takes such action, the
Statutory Basis for, the Proposed Rule
acts and practices, to promote just and Commission will institute proceedings
Change to determine whether the proposed rule
equitable principles of trade, to foster
In its filing with the Commission, the cooperation and coordination with change should be approved or
Exchange included statements persons engaged in regulating, clearing, disapproved.
concerning the purpose of and basis for settling, processing information with
the proposed rule change and discussed IV. Solicitation of Comments
respect to, and facilitating transactions
any comments it received on the in securities, to remove impediments to Interested persons are invited to
proposed rule change. The text of these and perfect the mechanism of a free and submit written data, views, and
statements may be examined at the open market and a national market arguments concerning the foregoing,
places specified in Item IV below. The system, and, in general, to protect including whether the proposed rule
Exchange has prepared summaries, set investors and the public interest. change is consistent with the Act.
forth in sections A, B, and C below, of Comments may be submitted by any of
In particular, the Exchange believes
the most significant aspects of such the following methods:
that codifying an existing fee in the Fees
statements. Schedule (in addition to the Exchange’s Electronic Comments
A. Self-Regulatory Organization’s Rules, where it is currently provided • Use the Commission’s Internet
Statement of the Purpose of, and for), will alleviate potential confusion comment form (http://www.sec.gov/
Statutory Basis for, the Proposed Rule and maintain clarity in the Fees rules/sro.shtml); or
Change Schedule, which serves to remove • Send an email to rule-comments@
impediments to and perfect the sec.gov. Please include File Number SR–
1. Purpose mechanism of a free and open market CBOE–2015–078 on the subject line.
The Exchange proposes to amend the and a national market system, and, in
Fees Schedule to codify an existing fee general, to protect investors and the Paper Comments
related to catastrophic error reviews. By public interest. • Send paper comments in triplicate
way of background, Rule 6.25 to Secretary, Securities and Exchange
(Nullification and Adjustment of B. Self-Regulatory Organization’s
Statement on Burden on Competition Commission, 100 F Street NE.,
Options Transactions including Obvious Washington, DC 20549–1090.
Errors) governs the adjustment and CBOE does not believe that the All submissions should refer to File
nullification of erroneous options proposed rule change will impose any Number SR–CBOE–2015–078. This file
transactions, including for burden on competition that is not number should be included on the
‘‘Catastrophic Errors.’’ Pursuant to necessary or appropriate in furtherance subject line if email is used. To help the
Exchange Rule 6.25, the Catastrophic of the purposes of the Act. The Commission process and review your
Error provisions provide market proposed change to codify in the Fees comments more efficiently, please use
participants with a notification period Schedule a fee that currently is only one method. The Commission will
under which they may file a request for referenced only in the Exchange’s Rules post all comments on the Commission’s
review with the Exchange of a potential is not intended for competitive reasons Internet Web site (http://www.sec.gov/
Catastrophic Error. In addition, and only applies to CBOE. The rules/sro.shtml).
Exchange Rule 6.25(d)(3) currently Exchange also notes that no rights or Copies of the submission, all
provides that if it is determined by an obligations of Trading Permit Holders subsequent amendments, all written
Official 3 that a Catastrophic Error has are affected by the change. statements with respect to the proposed
not occurred, the Trading Permit Holder rule change that are filed with the
will be subject to a charge of $5,000. C. Self-Regulatory Organization’s
Commission, and all written
The Exchange notes that while this Statement on Comments on the
communications relating to the
charge is explicitly provided for in the Proposed Rule Change Received From
proposed rule change between the
Exchange Rules (i.e., Rule 6.25), it is not Members, Participants, or Others
Commission and any person, other than
codified in the Exchange’s Fees The Exchange neither solicited nor those that may be withheld from the
Schedule. The Exchange proposes to received comments on the proposed public in accordance with the
add the existing $5,000 charge to the rule change. provisions of 5 U.S.C. 552, will be
Fees Schedule to alleviate any potential available for Web site viewing and
confusion regarding the existence and III. Date of Effectiveness of the
printing in the Commission’s Public
applicability of the fee. Proposed Rule Change and Timing for
Reference Room, 100 F Street NE.,
Commission Action
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2. Statutory Basis Washington, DC 20549 on official
The foregoing rule change has become business days between the hours of
The Exchange believes the proposed effective pursuant to Section 19(b)(3)(A) 10:00 a.m. and 3:00 p.m. Copies of the
rule change is consistent with the of the Act 6 and paragraph (f) of Rule filing also will be available for
3 Rule 6.25 defines ‘‘Official’’ as an Officer of the
inspection and copying at the principal
Exchange or such other employee designee of the
4 15 U.S.C. 78f(b). office of the Exchange. All comments
5 15 U.S.C. 78f(b)(5).
Exchange that is trained in the application of this
rule. See Rule 6.25(a)(3). 6 15 U.S.C. 78s(b)(3)(A). 7 17 CFR 240.19b–4(f).
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![57414 Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Notices
received will be posted without change; managed exchange-traded fund (‘‘ETF’’) performance of the S&P High Income
the Commission does not edit personal and a series of the PowerShares Actively VEQTOR Index (‘‘Benchmark’’). The
identifying information from Managed Exchange-Traded Fund Trust Fund will seek to gain exposure to the
submissions. You should submit only (‘‘Trust’’). The Trust was established as securities contained in the equity
information that you wish to make a Delaware statutory trust on November component of the Benchmark and CBOE
available publicly. 6, 2007.4 Invesco PowerShares Capital Volatility Index (‘‘VIX Index’’) related
All submissions should refer to File Management LLC will serve as the instruments (‘‘VIX Index Related
Number SR–CBOE–2015–078 and investment adviser to the Fund Instruments’’).7
should be submitted on or before (‘‘Adviser’’).5 Invesco Distributors, Inc. The Exchange represents that the
October 14, 2015. will serve as the principal underwriter Benchmark is composed of two types of
For the Commission, by the Division of and distributor of the Fund’s Shares components: An equity component,
Trading and Markets, pursuant to delegated (‘‘Distributor’’). The Bank of New York represented by the constituents of the
authority.8 Mellon will act as the administrator, S&P High Income Equity Composite
Brent J. Fields, accounting agent, custodian, and Index (‘‘Equity Component Index’’), and
transfer agent for the Fund. The a volatility component, represented by
Secretary.
Exchange has made the following the S&P 500 VIX Short Term Futures
[FR Doc. 2015–24063 Filed 9–22–15; 8:45 am]
representations and statements in Index (‘‘VIX Futures Index’’). The
BILLING CODE 8011–01–P Benchmark allocates its constituents
describing the Fund and its investment
strategy, including the Fund’s portfolio between the two components in any
holdings and investment restrictions.6 given amount from time to time based
SECURITIES AND EXCHANGE on the level of volatility in the market.
COMMISSION A. The Exchange’s Description of the The Exchange represents that the
Fund’s Investment Objective Equity Component Index is composed of
[Release No. 34–75936; File No. SR–
NASDAQ–2015–085]) According to the Exchange, the Fund 150 high-yield securities that meet
will be an actively managed ETF that certain size, liquidity, and listing
Self-Regulatory Organizations; The will seek to achieve high income and exchange criteria as determined by S&P.
NASDAQ Stock Market LLC; Order positive total returns. The Fund will This component comprises the
Granting Approval of Proposed Rule seek to achieve its investment objective following four sub-components: (i)
Change Relating to the Listing and by using a quantitative, rules-based Preferred stocks; (ii) units of master
Trading of the Shares of the investment methodology designed to limited partnerships (‘‘MLPs’’); (iii) real
PowerShares High Income Downside provide returns that exceed the estate investment trusts (‘‘REITs’’); and
Hedged Portfolio, a Series of the (iv) a portfolio of global securities
PowerShares Actively Managed 4 The Trust is registered with the Commission as
engaged in the real estate industry
Exchange-Traded Fund Trust an open-end management investment company and (‘‘global property securities’’) and global
has filed a post-effective amendment to its
registration statement on Form N–1A (‘‘Registration securities that pay high dividends
September 17, 2015.
Statement’’) with the Commission to register the (‘‘global dividend securities,’’ and
I. Introduction Fund and its Shares under the Investment Company together with global property securities,
Act of 1940 (‘‘1940 Act’’) and the Securities Act of collectively ‘‘Global Equities’’).
On July 28, 2015, The NASDAQ Stock 1933. See Registration Statement for the Trust, filed
The Exchange states that the VIX
Market LLC (‘‘Nasdaq’’ or the on April 13, 2015 (File Nos. 333–147622 and 811–
22148). In addition, the Commission has issued an Index is a theoretical calculation and
‘‘Exchange’’) filed with the Securities
order granting certain exemptive relief to the Trust cannot be traded. The VIX Index is a
and Exchange Commission under the 1940 Act. See Investment Company Act benchmark index designed to measure
(‘‘Commission’’), pursuant to Section Release No. 28171 (Feb. 27, 2008) (File No. 812–
13386). the market price of volatility in large
19(b)(1) of the Securities Exchange Act
5 The Exchange represents that the Adviser is cap U.S. stocks over 30 days in the
of 1934 (‘‘Act’’) 1 and Rule 19b–4
itself not a broker-dealer, but it is affiliated with the future, and is calculated based on the
thereunder,2 a proposed rule change to Distributor, which is a broker-dealer. The Adviser prices of certain put and call options on
list and trade common shares of has therefore implemented a fire wall between itself
the S&P 500® Index. The VIX Index
beneficial interest (‘‘Shares’’) of the and the Distributor with respect to access to
measures the premium paid by investors
PowerShares High Income Downside information concerning the composition of or
changes to the Fund’s portfolio. The Exchange for certain options linked to the S&P
Hedged Portfolio (‘‘Fund’’), under further represents that in the event (a) the Adviser 500® Index. During periods of market
Nasdaq Rule 5735. The proposed rule becomes newly affiliated with a different broker-
instability, the implied level of volatility
change was published for comment in dealer (or becomes a registered broker-dealer), or (b)
any new adviser or sub-adviser to the Fund is a of the S&P 500® Index typically
the Federal Register on August 5, 2015.3 registered broker-dealer or becomes affiliated with increases, and, consequently, the prices
The Commission received no comments a broker-dealer, the Advisor will implement a fire of options linked to the S&P 500® Index
on the proposal. This order grants wall with respect to its relevant personnel or
typically increase (assuming all other
approval of the proposed rule change. broker-dealer affiliate, as applicable, regarding
access to information concerning the composition relevant factors remain constant or have
II. Description of the Proposal of or changes to the Fund’s portfolio and will be negligible changes). This, in turn, causes
subject to procedures designed to prevent the use the level of the VIX Index to increase.
The Exchange proposes to list and and dissemination of material, non-public
The VIX Index historically has had
trade the Shares of the Fund under Rule information regarding the portfolio. The Exchange
states that the Fund does not currently intend to use negative correlations to the S&P 500®
5735, which governs the listing and a sub-adviser. Index.
trading of Managed Fund Shares on the The VIX Futures Index utilizes the
mstockstill on DSK4VPTVN1PROD with NOTICES
6 The Commission notes that additional
Exchange. The Shares will be offered by information regarding the Fund, the Trust, and the prices of the first- and second-month
the Fund, which will be an actively Shares, including investment strategies, risks,
futures contracts based on the VIX
creation and redemption procedures, fees, portfolio
8 17
holdings disclosure policies, calculation of net asset
CFR 200.30–3(a)(12). value (‘‘NAV’’), distributions, and taxes, among 7 The Exchange defines ‘‘VIX Index Related
1 15 U.S.C. 78s(b)(1). other things, can be found in the Notice and the Instruments’’ as ETFs and exchange-traded notes
2 17 CFR 240.19b–4.
Registration Statement, as applicable. See Notice (‘‘ETNs’’) that provide exposure to the VIX Index,
3 See Securities Exchange Act Release No. 75555 and Registration Statement, supra notes 3 and 4, as well as VIX Index futures contracts and options
(Jul. 30, 2015), 80 FR 46631 (‘‘Notice’’). respectively. on those futures contracts.
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Document Created: 2015-12-15 09:45:32
Document Modified: 2015-12-15 09:45:32
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 57412 |
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