80 FR 62578 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the TRACE Pilot Program in FINRA Rule 6730(e)(4)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 200 (October 16, 2015)
Federal Register Volume 80, Issue 200 (October 16, 2015)
| Page Range | 62578-62580 | |
| FR Document | 2015-26326 |
[Federal Register Volume 80, Number 200 (Friday, October 16, 2015)] [Notices] [Pages 62578-62580] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-26326] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76121; File No. SR-FINRA-2015-037] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the TRACE Pilot Program in FINRA Rule 6730(e)(4) October 9, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on September 28, 2015, Financial Industry Regulatory Authority, Inc. (``FINRA'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by FINRA. FINRA has designated the proposed rule change as constituting a ``non-controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under the Act,\3\ which renders the proposal effective upon receipt of this filing by the Commission. 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. \3\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing to extend the pilot program in FINRA Rule 6730(e)(4) to October 27, 2017. The pilot program exempts from TRACE reporting transactions in TRACE-Eligible Securities that are executed on a facility of the New York Stock Exchange [[Page 62579]] (``NYSE''), subject to specified conditions. Below is the text of the proposed rule change. Proposed new language is in italics; proposed deletions are in brackets. * * * * * 6700. TRADE REPORTING AND COMPLIANCE ENGINE (TRACE) * * * * * 6730. Transaction Reporting (a) through (d) No Change. (e) Reporting Requirements for Certain Transactions and Transfers of Securities The following shall not be reported: (1) through (3) No Change. (4) Provided that a data sharing agreement between FINRA and NYSE related to transactions covered by this Rule remains in effect, for a pilot program expiring on [October 23, 2015] October 27, 2017, transactions in TRACE-Eligible Securities that are executed on a facility of NYSE in accordance with NYSE Rules 1400, 1401 and 86 and reported to NYSE in accordance with NYSE's applicable trade reporting rules and disseminated publicly by NYSE. (5) through (6) No Change. (f) No Change. * * * Supplementary Material: .01 through .02 No Change. * * * * * II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA 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. FINRA 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 FINRA Rule 6730(e)(4) exempts members from reporting to the Trade Reporting and Compliance Engine (``TRACE'') transactions in TRACE- Eligible Securities \4\ that are executed on a facility of NYSE in accordance with specified NYSE rules and that are reported to NYSE and disseminated publicly, provided that a data sharing agreement between FINRA and NYSE related to transactions covered by FINRA Rule 6730 remains in effect. This exemption operates as a pilot program and is currently scheduled to expire on October 23, 2015.\5\ --------------------------------------------------------------------------- \4\ Rule 6710(a) provides that a ``TRACE-Eligible Security'' is a debt security that is United States dollar-denominated and issued by a U.S. or foreign private issuer, and, if a ``restricted security'' as defined in Securities Act Rule 144(a)(3), sold pursuant to Securities Act Rule 144A; or is a debt security that is U.S. dollar-denominated and issued or guaranteed by an Agency as defined in paragraph (k) or a Government-Sponsored Enterprise as defined in paragraph (n). ``TRACE-Eligible Security'' does not include a debt security that is: Issued by a foreign sovereign, a U.S. Treasury Security as defined in paragraph (p), or a Money Market Instrument as defined in paragraph (o). \5\ See Securities Exchange Act Release No. 54768 (November 16, 2006), 71 FR 67673 (November 22, 2006) (Order Approving File No. SR- NASD-2006-110) (pilot program in FINRA Rule 6730(e)(4), subject to the execution of a data sharing agreement addressing relevant transactions, became effective on January 9, 2007); Securities Exchange Act Release No. 59216 (January 8, 2009), 74 FR 2147 (January 14, 2009) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2008-065) (pilot program extended to January 7, 2011); Securities Exchange Act Release No. 63673 (January 7, 2011), 76 FR 2739 (January 14, 2011) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2011-002) (pilot program extended to July 8, 2011); Securities Exchange Act Release No. 64665 (June 14, 2011), 76 FR 35933 (June 20, 2011) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2011-025) (pilot program extended to January 27, 2012); Securities Exchange Act Release No. 66018 (December 21, 2011), 76 FR 81549 (December 28, 2011) (Notice of Filing and Immediate Effectiveness of File No. SR- FINRA-2011-072) (pilot program extended to October 26, 2012); Securities Exchange Act Release No. 68076 (October 22, 2012), 77 FR 65431 (October 26, 2012) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2012-047) (pilot program extended to October 25, 2013); and Securities Exchange Act Release No. 70288 (August 29, 2013), 78 FR 54694 (September 5, 2013) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2013-038) (pilot program extended to October 23, 2015). --------------------------------------------------------------------------- FINRA is proposing to extend the pilot program for two years until October 27, 2017. Thus, members would continue to be exempted from reporting to TRACE transactions in TRACE-Eligible Securities that are executed on an NYSE facility in accordance with NYSE Rules 1400, 1401 and 86, where such transactions are reported to NYSE in accordance with NYSE's applicable trade reporting rules, and disseminated publicly by NYSE.\6\ --------------------------------------------------------------------------- \6\ The success of the pilot program remains dependent on FINRA's ability to continue to effectively conduct surveillance for TRACE-Eligible Securities. The exemption, therefore, continues to be conditional on a data sharing agreement being in effect between FINRA and NYSE related to transactions covered by FINRA Rule 6730. --------------------------------------------------------------------------- FINRA is proposing to extend the pilot to provide additional time to analyze the impact of the exemption and to avoid duplicative reporting requirements for members with regard to transactions in these securities, which otherwise would be subject to trade reporting to both FINRA and NYSE. However, FINRA supports a regulatory construct that, in the future, consolidates all last sale transaction information to provide better price transparency and a more efficient means to engage in market surveillance of TRACE-Eligible Securities transactions. The proposed extension would allow the pilot program to continue to operate without interruption while FINRA and NYSE continue to assess the effect of the exemption and issues regarding the consolidation of market data, market surveillance and price transparency. FINRA has filed the proposed rule change for immediate effectiveness. The implementation date will be October 23, 2015. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,\7\ which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78o-3(b)(6). --------------------------------------------------------------------------- FINRA believes that extension of the pilot protects investors and the public because it continues to ensure that transactions are required to be reported and publicly disseminated; therefore, transparency will be maintained for these transactions. The continued condition that a data sharing agreement remain in effect between NYSE and FINRA for transactions covered by the FINRA Rule 6730(e)(4) exemption allows FINRA to continue to conduct surveillance in TRACE- Eligible Securities. In addition, extending the exemption permits members that are subject to both FINRA's and NYSE's trade reporting requirements to avoid a duplicative regulatory structure and the increased costs that may be incurred as a result of such duplicative requirements. B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. FINRA believes that the extension of the exemptive provision does not result in any burden on competition since it allows members that are subject to both [[Page 62580]] FINRA's and NYSE's trade reporting requirements to avoid a duplicative regulatory structure and the increased costs that may be incurred as a result of such duplicative requirements. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. 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 after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\ thereunder. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), FINRA provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the 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. --------------------------------------------------------------------------- FINRA has asked the Commission to waive the 30-day operative delay so that the pilot may continue to operate without interruption. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. This action will continue to allow the benefits of the pilot-- preventing duplicative reporting of transactions in TRACE-Eligible Securities that occur on NYSE--to continue without interruption. Therefore, the Commission hereby designates the proposed rule change as operative upon filing.\10\ --------------------------------------------------------------------------- \10\ For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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 shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-FINRA-2015-037 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-FINRA-2015-037. 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 such filing will also be available for inspection and copying at the principal office of FINRA. All comments 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-FINRA-2015-037 and should be submitted on or before November 6, 2015. --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-26326 Filed 10-15-15; 8:45 am] BILLING CODE 8011-01-P
![62578 Federal Register / Vol. 80, No. 200 / Friday, October 16, 2015 / Notices
Rule 102 of Regulation M presented in the Letter, is exempt from must rest with the persons relying on
Rule 102 of Regulation M prohibits the requirements of Rule 101 with this exemption. This Order should not
issuers, selling security holders, and any respect to the Fund, thus permitting be considered a view with respect to
affiliated purchaser of such person from persons who may be deemed to be any other question that the proposed
bidding for, purchasing, or attempting to participating in a distribution of Shares transactions may raise, including, but
induce any person to bid for or purchase of the Fund to bid for or purchase such not limited to, the adequacy of the
a covered security during the applicable Shares during their participation in disclosure concerning, and the
restricted period in connection with a such distribution. applicability of other federal or state
distribution of securities effected by or It is further ordered, pursuant to Rule laws to, the proposed transactions.
on behalf of an issuer or selling security 102(e) of Regulation M, that the Trust,
For the Commission, by the Division of
holder. based on the representations and the Trading and Markets, pursuant to delegated
Based on the representations and the facts presented in the Letter, is exempt authority.7
facts presented in the Letter, from the requirements of Rule 102 with Robert W. Errett,
particularly that the Trust is a registered respect to the Fund, thus permitting the
Deputy Secretary.
open-end management investment Fund to redeem Shares of the Fund
[FR Doc. 2015–26329 Filed 10–15–15; 8:45 am]
company that will redeem at the NAV during the continuous offering of such
Shares. BILLING CODE 8011–01–P
Creation Unit size aggregations of
Shares of the Fund and that a close It is further ordered, pursuant to Rule
alignment between the market price of 10b–17(b)(2), that the Trust, based on
the representations and the facts SECURITIES AND EXCHANGE
Shares and the Fund’s NAV is expected, COMMISSION
the Commission finds that it is presented in the Letter and subject to
appropriate in the public interest, and the conditions below, is exempt from
[Release No. 34–76121; File No. SR–FINRA–
consistent with the protection of the requirements of Rule 10b–17 with 2015–037]
investors to grant the Trust an respect to the transactions in the Shares
exemption under paragraph (e) of Rule of the Fund. Self-Regulatory Organizations;
This exemptive relief is subject to the Financial Industry Regulatory
102 of Regulation M with respect to the
following conditions: Authority, Inc.; Notice of Filing and
Fund, thus permitting the Fund to • The Trust will comply with Rule
redeem Shares of the Fund during the Immediate Effectiveness of a Proposed
10b–17, except for Rule 10b– Rule Change To Extend the TRACE
continuous offering of such Shares. 17(b)(1)(v)(a) and (b); and Pilot Program in FINRA Rule 6730(e)(4)
Rule 10b–17 • The Trust will provide the
Rule 10b–17, with certain exceptions, information required by Rule 10b– October 9, 2015.
requires an issuer of a class of publicly 17(b)(1)(v)(a) and (b) to the Exchange as Pursuant to Section 19(b)(1) of the
traded securities to give notice of certain soon as practicable before trading begins Securities Exchange Act of 1934
specified actions (for example, a on the ex-dividend date, but in no event (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
later than the time when the Exchange notice is hereby given that on
dividend distribution) relating to such
last accepts information relating to September 28, 2015, Financial Industry
class of securities in accordance with
distributions on the day before the ex- Regulatory Authority, Inc. (‘‘FINRA’’)
Rule 10b–17(b). Based on the
dividend date. filed with the Securities and Exchange
representations and the facts presented This exemptive relief is subject to
in the Letter, and subject to the Commission (‘‘SEC’’ or ‘‘Commission’’)
modification or revocation at any time the proposed rule change as described
conditions below, the Commission finds the Commission determines that such
that it is appropriate in the public in Items I and II below, which Items
action is necessary or appropriate in have been prepared by FINRA. FINRA
interest, and consistent with the furtherance of the purposes of the
protection of investors, to grant the has designated the proposed rule change
Exchange Act. This exemption is based as constituting a ‘‘non-controversial’’
Trust a conditional exemption from on the facts presented and the
Rule 10b–17 because market rule change under paragraph (f)(6) of
representations made in the Letter. Any Rule 19b–4 under the Act,3 which
participants will receive timely different facts or representations may
notification of the existence and timing renders the proposal effective upon
require a different response. Persons receipt of this filing by the Commission.
of a pending distribution, and thus the relying upon this exemptive relief shall
concerns that the Commission raised in The Commission is publishing this
discontinue transactions involving the notice to solicit comments on the
adopting Rule 10b–17 will not be Shares of the Fund, pending
implicated.6 proposed rule change from interested
presentation of the facts for the persons.
Conclusion Commission’s consideration, in the
event that any material change occurs I. Self-Regulatory Organization’s
It is hereby ordered, pursuant to Rule Statement of the Terms of Substance of
101(d) of Regulation M, that the Trust, with respect to any of the facts or
representations made by the Requestors, the Proposed Rule Change
based on the representations and facts
and as is the case with all preceding FINRA is proposing to extend the
Shares of the Fund and the receipt of securities in letters, particularly with respect to the pilot program in FINRA Rule 6730(e)(4)
exchange by a participant in a distribution of Shares close alignment between the market to October 27, 2017. The pilot program
of the Fund would not constitute an ‘‘attempt to price of Shares and the Fund’s NAV. In exempts from TRACE reporting
induce any person to bid for or purchase[] a covered addition, persons relying on this
srobinson on DSK5SPTVN1PROD with NOTICES
security during the applicable restricted period’’ transactions in TRACE-Eligible
within the meaning of Rule 101 of Regulation M exemption are directed to the anti-fraud Securities that are executed on a facility
and therefore would not violate that rule. and anti-manipulation provisions of the of the New York Stock Exchange
6 We also note that timely compliance with Rule Exchange Act, particularly Sections 9(a),
10b–17(b)(1)(v)(a) and (b) would be impractical in 10(b), and Rule 10b–5 thereunder. 7 17
light of the Fund’s nature because it is not possible CFR 200.30–3(a)(6) and (9).
for the Fund to accurately project ten days in
Responsibility for compliance with 1 15 U.S.C. 78s(b)(1).
advance what dividend, if any, would be paid on these and any other applicable 2 17 CFR 240.19b–4.
a particular record date. provisions of the federal securities laws 3 17 CFR 240.19b–4(f)(6).
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![Federal Register / Vol. 80, No. 200 / Friday, October 16, 2015 / Notices 62579
(‘‘NYSE’’), subject to specified a facility of NYSE in accordance with requirements for members with regard
conditions. specified NYSE rules and that are to transactions in these securities,
Below is the text of the proposed rule reported to NYSE and disseminated which otherwise would be subject to
change. Proposed new language is in publicly, provided that a data sharing trade reporting to both FINRA and
italics; proposed deletions are in agreement between FINRA and NYSE NYSE. However, FINRA supports a
brackets. related to transactions covered by regulatory construct that, in the future,
* * * * * FINRA Rule 6730 remains in effect. This consolidates all last sale transaction
exemption operates as a pilot program information to provide better price
6700. TRADE REPORTING AND and is currently scheduled to expire on transparency and a more efficient means
COMPLIANCE ENGINE (TRACE) October 23, 2015.5 to engage in market surveillance of
* * * * * FINRA is proposing to extend the TRACE-Eligible Securities transactions.
pilot program for two years until The proposed extension would allow
6730. Transaction Reporting October 27, 2017. Thus, members would the pilot program to continue to operate
(a) through (d) No Change. continue to be exempted from reporting without interruption while FINRA and
(e) Reporting Requirements for to TRACE transactions in TRACE- NYSE continue to assess the effect of the
Certain Transactions and Transfers of Eligible Securities that are executed on exemption and issues regarding the
Securities an NYSE facility in accordance with consolidation of market data, market
The following shall not be reported: NYSE Rules 1400, 1401 and 86, where surveillance and price transparency.
(1) through (3) No Change. such transactions are reported to NYSE FINRA has filed the proposed rule
(4) Provided that a data sharing in accordance with NYSE’s applicable change for immediate effectiveness. The
agreement between FINRA and NYSE trade reporting rules, and disseminated implementation date will be October 23,
related to transactions covered by this publicly by NYSE.6 2015.
Rule remains in effect, for a pilot FINRA is proposing to extend the
program expiring on [October 23, 2015] pilot to provide additional time to 2. Statutory Basis
October 27, 2017, transactions in analyze the impact of the exemption FINRA believes that the proposed rule
TRACE-Eligible Securities that are and to avoid duplicative reporting change is consistent with the provisions
executed on a facility of NYSE in of Section 15A(b)(6) of the Act,7 which
accordance with NYSE Rules 1400, 1401 private issuer, and, if a ‘‘restricted security’’ as requires, among other things, that
and 86 and reported to NYSE in defined in Securities Act Rule 144(a)(3), sold FINRA rules must be designed to
pursuant to Securities Act Rule 144A; or is a debt
accordance with NYSE’s applicable security that is U.S. dollar-denominated and issued
prevent fraudulent and manipulative
trade reporting rules and disseminated or guaranteed by an Agency as defined in paragraph acts and practices, to promote just and
publicly by NYSE. (k) or a Government-Sponsored Enterprise as equitable principles of trade, and, in
(5) through (6) No Change. defined in paragraph (n). ‘‘TRACE-Eligible general, to protect investors and the
Security’’ does not include a debt security that is:
(f) No Change. Issued by a foreign sovereign, a U.S. Treasury public interest.
Security as defined in paragraph (p), or a Money FINRA believes that extension of the
* * * Supplementary Material:
Market Instrument as defined in paragraph (o). pilot protects investors and the public
.01 through .02 No Change. 5 See Securities Exchange Act Release No. 54768
because it continues to ensure that
(November 16, 2006), 71 FR 67673 (November 22, transactions are required to be reported
* * * * * 2006) (Order Approving File No. SR–NASD–2006–
110) (pilot program in FINRA Rule 6730(e)(4), and publicly disseminated; therefore,
II. Self-Regulatory Organization’s transparency will be maintained for
subject to the execution of a data sharing agreement
Statement of the Purpose of, and addressing relevant transactions, became effective these transactions. The continued
Statutory Basis for, the Proposed Rule on January 9, 2007); Securities Exchange Act
condition that a data sharing agreement
Change Release No. 59216 (January 8, 2009), 74 FR 2147
remain in effect between NYSE and
(January 14, 2009) (Notice of Filing and Immediate
In its filing with the Commission, Effectiveness of File No. SR–FINRA–2008–065) FINRA for transactions covered by the
FINRA included statements concerning (pilot program extended to January 7, 2011); FINRA Rule 6730(e)(4) exemption
the purpose of and basis for the Securities Exchange Act Release No. 63673 (January
7, 2011), 76 FR 2739 (January 14, 2011) (Notice of
allows FINRA to continue to conduct
proposed rule change and discussed any Filing and Immediate Effectiveness of File No. SR– surveillance in TRACE-Eligible
comments it received on the proposed FINRA–2011–002) (pilot program extended to July Securities. In addition, extending the
rule change. The text of these statements 8, 2011); Securities Exchange Act Release No. 64665 exemption permits members that are
(June 14, 2011), 76 FR 35933 (June 20, 2011) (Notice
may be examined at the places specified of Filing and Immediate Effectiveness of File No. subject to both FINRA’s and NYSE’s
in Item IV below. FINRA has prepared SR–FINRA–2011–025) (pilot program extended to trade reporting requirements to avoid a
summaries, set forth in sections A, B, January 27, 2012); Securities Exchange Act Release duplicative regulatory structure and the
and C below, of the most significant No. 66018 (December 21, 2011), 76 FR 81549 increased costs that may be incurred as
(December 28, 2011) (Notice of Filing and
aspects of such statements. Immediate Effectiveness of File No. SR–FINRA– a result of such duplicative
A. Self-Regulatory Organization’s 2011–072) (pilot program extended to October 26, requirements.
2012); Securities Exchange Act Release No. 68076
Statement of the Purpose of, and (October 22, 2012), 77 FR 65431 (October 26, 2012) B. Self-Regulatory Organization’s
Statutory Basis for, the Proposed Rule (Notice of Filing and Immediate Effectiveness of Statement on Burden on Competition
Change File No. SR–FINRA–2012–047) (pilot program
extended to October 25, 2013); and Securities FINRA does not believe that the
1. Purpose Exchange Act Release No. 70288 (August 29, 2013), proposed rule change will result in any
78 FR 54694 (September 5, 2013) (Notice of Filing burden on competition that is not
FINRA Rule 6730(e)(4) exempts and Immediate Effectiveness of File No. SR– necessary or appropriate in furtherance
srobinson on DSK5SPTVN1PROD with NOTICES
members from reporting to the Trade FINRA–2013–038) (pilot program extended to
Reporting and Compliance Engine October 23, 2015). of the purposes of the Act. FINRA
(‘‘TRACE’’) transactions in TRACE-
6 The success of the pilot program remains believes that the extension of the
Eligible Securities 4 that are executed on
dependent on FINRA’s ability to continue to exemptive provision does not result in
effectively conduct surveillance for TRACE-Eligible any burden on competition since it
Securities. The exemption, therefore, continues to
4 Rule 6710(a) provides that a ‘‘TRACE-Eligible be conditional on a data sharing agreement being allows members that are subject to both
Security’’ is a debt security that is United States in effect between FINRA and NYSE related to
dollar-denominated and issued by a U.S. or foreign transactions covered by FINRA Rule 6730. 7 15 U.S.C. 78o–3(b)(6).
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![62580 Federal Register / Vol. 80, No. 200 / Friday, October 16, 2015 / Notices
FINRA’s and NYSE’s trade reporting IV. Solicitation of Comments For the Commission, by the Division of
requirements to avoid a duplicative Trading and Markets, pursuant to delegated
regulatory structure and the increased Interested persons are invited to authority.11
costs that may be incurred as a result of submit written data, views, and Robert W. Errett,
such duplicative requirements. arguments concerning the foregoing, Deputy Secretary.
including whether the proposed rule [FR Doc. 2015–26326 Filed 10–15–15; 8:45 am]
C. Self-Regulatory Organization’s change is consistent with the Act.
Statement on Comments on the Comments may be submitted by any of
BILLING CODE 8011–01–P
Proposed Rule Change Received From
the following methods:
Members, Participants or Others
Electronic Comments SECURITIES AND EXCHANGE
Written comments were neither COMMISSION
solicited nor received. • Use the Commission’s Internet
III. Date of Effectiveness of the comment form (http://www.sec.gov/ [Release No. 34–76126; File No. SR–
Proposed Rule Change and Timing for rules/sro.shtml); or NASDAQ–2015–095]
Commission Action • Send an email to rule-comments@
sec.gov. Please include File Number SR– Self-Regulatory Organizations; The
Because the foregoing proposed rule NASDAQ Stock Market LLC; Order
change does not: (i) Significantly affect FINRA–2015–037 on the subject line.
Granting Approval of Proposed Rule
the protection of investors or the public Paper Comments Change Relating to the Listing and
interest; (ii) impose any significant Trading of the Shares of the AltShares
burden on competition; and (iii) become • Send paper comments in triplicate Long/Short High Yield Fund of ETFis
operative for 30 days after the date of to Secretary, Securities and Exchange Series Trust I
the filing, or such shorter time as the Commission, 100 F Street NE.,
Commission may designate, it has Washington, DC 20549–1090. October 9, 2015.
become effective pursuant to 19(b)(3)(A)
All submissions should refer to File I. Introduction
of the Act 8 and Rule 19b–4(f)(6) 9
thereunder. Number SR–FINRA–2015–037. This file
number should be included on the On August 7, 2015, The NASDAQ
FINRA has asked the Commission to Stock Market LLC (the ‘‘Exchange’’ or
waive the 30-day operative delay so that subject line if email is used. To help the
‘‘Nasdaq’’) filed with the Securities and
the pilot may continue to operate Commission process and review your
Exchange Commission’’
without interruption. The Commission comments more efficiently, please use (‘‘Commission’’), pursuant to Section
believes that waiving the 30-day only one method. The Commission will 19(b)(1) of the Securities Exchange Act
operative delay is consistent with the post all comments on the Commission’s of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and
protection of investors and the public Internet Web site (http://www.sec.gov/ Rule 19b–4 thereunder,2 a proposed rule
interest. This action will continue to rules/sro.shtml). Copies of the change to list and trade shares
allow the benefits of the pilot— submission, all subsequent (‘‘Shares’’) of the AltShares Long/Short
preventing duplicative reporting of amendments, all written statements High Yield Fund (‘‘Fund’’) of ETFis
transactions in TRACE-Eligible with respect to the proposed rule Series Trust I (‘‘Trust’’) under NASDAQ
Securities that occur on NYSE—to change that are filed with the Rule 5735. The proposed rule change
continue without interruption. Commission, and all written was published for comment in the
Therefore, the Commission hereby communications relating to the Federal Register on August 25, 2015.3
designates the proposed rule change as proposed rule change between the The Commission received no comments
operative upon filing.10 Commission and any person, other than on the proposed rule change. This order
At any time within 60 days of the those that may be withheld from the grants approval of the proposed rule
filing of the proposed rule change, the public in accordance with the change.
Commission summarily may provisions of 5 U.S.C. 552, will be
temporarily suspend such rule change if II. Description of the Proposal
available for Web site viewing and
it appears to the Commission that such printing in the Commission’s Public The Exchange proposes to list and
action is necessary or appropriate in the Reference Room, 100 F Street NE., trade the Shares under Nasdaq Rule
public interest, for the protection of Washington, DC 20549, on official 5735, which governs the listing and
investors, or otherwise in furtherance of business days between the hours of trading of Managed Fund Shares on the
the purposes of the Act. If the 10:00 a.m. and 3:00 p.m. Copies of such Exchange. The Fund will be an actively-
Commission takes such action, the managed exchange-traded fund (‘‘ETF’’).
filing will also be available for
Commission shall institute proceedings The Shares will be offered by the Trust,4
inspection and copying at the principal
to determine whether the proposed rule which is registered with the
should be approved or disapproved. office of FINRA. All comments received
will be posted without change; the Commission as an investment company
Commission does not edit personal and has filed a registration statement on
8 15 U.S.C. 78s(b)(3)(A).
identifying information from Form N–1A (‘‘Registration Statement’’)
9 17 CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), FINRA provided the Commission submissions. You should submit only
1 15 U.S.C. 78s(b)(1).
with written notice of its intent to file the proposed information that you wish to make
srobinson on DSK5SPTVN1PROD with NOTICES
2 17 CFR 240.19b–4.
rule change, along with a brief description and the
text of the proposed rule change, at least five
available publicly. All submissions 3 See Securities Exchange Act Release No. 75738
business days prior to the date of filing of the should refer to File Number SR–FINRA– (August 19, 2015), 80 FR 51632 (‘‘Notice’’).
proposed rule change, or such shorter time as 2015–037 andshould be submitted on or 4 According to the Exchange, the Adviser (as
designated by the Commission. before November 6, 2015. defined herein) has obtained certain exemptive
10 For purposes only of waiving the 30-day relief, upon which the Trust may rely, under the
operative delay, the Commission has considered the Investment Company Act of 1940 (‘‘1940 Act’’). See
proposed rule’s impact on efficiency, competition, Investment Company Act Release No. 30607 (July
and capital formation. See 15 U.S.C. 78c(f). 11 17 CFR 200.30–3(a)(12). 23, 2013) (File No. 812–14080).
VerDate Sep<11>2014 18:54 Oct 15, 2015 Jkt 238001 PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 E:\FR\FM\16OCN1.SGM 16OCN1](https://thefederalregister.org/doc/80_FR_62778/page/3.svg)
Document Created: 2015-12-14 15:23:11
Document Modified: 2015-12-14 15:23:11
| 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 62578 |
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