80 FR 65263 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 19.3 To Allow the Listing of Certain Options Based on International Indexes
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 206 (October 26, 2015)
Federal Register Volume 80, Issue 206 (October 26, 2015)
| Page Range | 65263-65266 | |
| FR Document | 2015-27071 |
[Federal Register Volume 80, Number 206 (Monday, October 26, 2015)] [Notices] [Pages 65263-65266] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-27071] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76200; File No. SR-EDGX-2015-48] Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 19.3 To Allow the Listing of Certain Options Based on International Indexes October 20, 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 October 9, 2015, EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with 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\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange filed a proposal to allow the listing of options overlying portfolio depositary receipts and index fund shares (collectively, ``ETFs'') that are listed pursuant to generic listing standards on equities exchanges for series of ETFs based on international or global indexes under which a comprehensive surveillance sharing agreement is not required. The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the 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 parts 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 is proposing to amend Rule 19.3(i) to allow the Exchange's options platform (``EDGX Options'') to list options overlying ETFs that are listed pursuant to generic listing standards on equities exchanges for series of ETFs based on international or global indexes under which a comprehensive surveillance sharing agreement (``CSSA'') is not required.\5\ This proposal will enable the Exchange to list and trade options on ETFs without a CSSA provided that the ETF is listed on an equities exchange pursuant to the generic listing standards that do not require a CSSA pursuant to Rule 19b-4(e) of the Exchange Act.\6\ Rule 19b-4(e) provides that the listing and trading of a new derivative securities product by a self-regulatory organization (``SRO'') shall not be deemed a proposed rule change, pursuant to paragraph (c)(1) of Rule 19b-4, if the Commission has approved, pursuant to section 19(b) of the Exchange Act, the SRO's trading rules, procedures, and listing standards for the product class that would include the new derivatives securities product and the SRO has a surveillance program for the product class.\7\ In other words, the proposal will amend the listing standards to allow the Exchange to list and trade options on ETFs based on international or global indexes to a similar degree that they are allowed to be listed on several equities exchanges.\8\ --------------------------------------------------------------------------- \5\ See, e.g., EDGX Rule 14.2(b)(3); BATS Exchange Rule 14.11(b)(3)(A)(ii); NYSE MKT Rule 1000 Commentary .03(a)(B); NYSE Arca Equities Rule 5.2(j)(3) Commentary .01 (a)(B); and NASDAQ Rule 5705(a)(3)(A)(ii). \6\ 17 CFR 240.19b-4(e). \7\ When relying on Rule 19b-4(e), the SRO must submit Form 19b- 4(e) to the Commission within five business days after the SRO begins trading the new derivative securities products. See Exchange Act Release No. 40761 (December 8, 1998), 63 FR 70952 (December 22, 1998). \8\ See EDGX Rule 14.2(b)(3); BATS Rules 14.11(b)(3)(A)(ii); NYSE MKT Rule 1000 Commentary .03(a)(B); NYSE Arca Equities Rule 5.2(j)(3) Commentary .01 (a)(B); and NASDAQ Rule 5705(a)(3)(A)(ii). See also Securities Exchange Act Release Nos. 54739 (November 9, 2006), 71 FR 66993 (SR-Amex-2006-78); 55269 (February 9, 2007), 72 FR 7490 (February 15, 2007) (SR-NASDAQ-2006-050); 55621 (April 12, 2007), 72 FR 19571 (April 18, 2007) (SR-NYSEArca-2006-86) --------------------------------------------------------------------------- Currently, EDGX Options rules allow for the listing and trading of options on Fund Shares. Rule 19.3(i)(1)-(3) provide the listings standards for options on Fund Shares with non-U.S. component stocks, such as Fund Shares based on international or global indexes. Rule 19.3(i)(1) requires that any non-U.S. component stocks of an index or portfolio of stocks on which the Fund Shares are based that are not subject to a CSSA do not in the aggregate represent more than 50% of the weight of the index or portfolio. Rule 19.3(i)(2) requires stocks for which the primary market is in any one country that is not [[Page 65264]] subject to a CSSA do not represent 20% or more of the weight of the index. Rule 19.3(i)(3) requires that stocks for which the primary market is in any two countries that are not subject to a CSSA do not represent 33% or more of the weight of the index. The Exchange notes that the Commission has previously approved generic listing standards pursuant to Rule 19b-4(e) of the Exchange Act for ETFs based on indexes that consist of stocks listed on U.S. exchanges.\9\ In general, the criteria for the underlying component stocks in the international and global indexes are similar to those for the domestic indexes, but with modifications as appropriate for the issues and risks associated with non-U.S. stocks. In addition, the Commission has previously approved the listing and trading of ETFs based on international indexes--those based on non-U.S. component stocks--as well as global indexes--those based on non-U.S. and U.S. component stocks.\10\ --------------------------------------------------------------------------- \9\ See Commentary .03 to Amex Rule 1000 and Commentary .02 to Amex Rule 1000A. See also Securities Exchange Act Release No. 42787 (May 15, 2000), 65 FR 33598 (May 24, 2000). \10\ See, e.g., Securities Exchange Act Release Nos. 50189 (August 12, 2004), 69 FR 51723 (August 20, 2004) (approving the listing and trading of certain Vanguard International Equity Index Funds); 44700 (August 14, 2001), 66 FR 43927 (August 21, 2001) (approving the listing and trading of series of the iShares Trust based on certain S&P global indexes). --------------------------------------------------------------------------- In approving ETFs for equities exchange trading, the Commission thoroughly considered the structure of the ETFs, their usefulness to investors and to the markets, and SRO rules that govern their trading. The Exchange believes that allowing the listing of options overlying ETFs that are listed pursuant to the generic listing standards on equities exchanges for ETFs based on international and global indexes and applying Rule 19b-4(e) should fulfill the intended objective of that Rule by allowing options on those ETFs that have satisfied the generic listing standards to commence trading, without the need for the public comment period and Commission approval. The proposed rule has the potential to reduce the time frame for bringing options on ETFs to market, thereby reducing the burdens on issuers and other market participants. The failure of a particular ETF to comply with the generic listing standards under Rule 19b-4(e) would not, however, preclude the Exchange from submitting a separate filing pursuant to section 19(b)(2),\11\ requesting Commission approval to list and trade options on a particular ETF. Options on ETFs listed pursuant to these generic standards for international and global indexes would be traded, in all other respects, under the Exchange's existing trading rules and procedures that apply to options on ETFs and would be covered under the Exchange's surveillance program for options on ETFs. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- Pursuant to the proposed rule, the Exchange may list and trade options on an ETF without a CSSA provided that the ETF is listed pursuant to generic listing standards for series of ETFs based on international or global indexes under which a comprehensive surveillance agreement is not required. The Exchange believes that these generic listing standards are intended to ensure that stocks with substantial market capitalization and trading volume account for a substantial portion of the weight of an index or portfolio. The Exchange believes that this proposed listing standard for options on ETFs is reasonable for international and global indexes, and, when applied in conjunction with the other listing requirements,\12\ will result in options overlying ETFs that are sufficiently broad-based in scope and not readily susceptible to manipulation. The Exchange also believes that allowing the Exchange to list options overlying ETFs that are listed on equities exchanges pursuant to generic standards for series of portfolio depositary receipts or index fund shares \13\ based on international or global indexes under which a CSSA is not required, will result in options overlying ETFs that are adequately diversified in weighting for any single security or small group of securities to significantly reduce concerns that trading in options overlying ETFs based on international or global indexes could become a surrogate for trading in unregistered securities. --------------------------------------------------------------------------- \12\ All of the other listing criteria under the Exchange's rules will continue to apply to any options listed pursuant to the proposed rule change. \13\ The Exchange notes that the proposed rule text differs slightly from that of other exchanges in order to make clear that the rule applies to ETFs that have been listed on equities exchanges pursuant to generic listing standards for series of ``portfolio depositary receipts or index fund shares'' rather than ``portfolio depositary receipts and index fund shares.'' Such difference does not represent a substantive difference from the rules of other Exchanges. See infra note 16. --------------------------------------------------------------------------- The Exchange believes that ETFs based on international and global indexes that have been listed pursuant to the generic standards are sufficiently broad-based enough as to make options overlying such ETFs not susceptible instruments for manipulation. The Exchange believes that the threat of manipulation is sufficiently mitigated for underlying ETFs that have been listed on equities exchanges pursuant to generic listing standards for series of portfolio depositary receipts or index fund shares based on international or global indexes under which a comprehensive surveillance agreement is not required and for the overlying options, that the Exchange does not see the need for CSSA to be in place before listing and trading options on such ETFs. The Exchange notes that its proposal does not replace the need for a CSSA as provided in the current rule. The provisions of the current rule, including the need for a CSSA, remain materially unchanged in the proposed rule and will continue to apply to options on ETFs that are not listed on an equities exchange pursuant to generic listing standards for series of portfolio depositary receipts or index fund shares based on international or global indexes under which a comprehensive surveillance agreement is not required. Instead, the proposed rule adds an additional listing mechanism for certain qualifying options on ETFs to be listed on the Exchange. Finally, the Exchange is also proposing to make several non- substantive changes to the rule text in order to make it easier to read and understand. Specifically, the Exchange is proposing to move paragraph (4) to become paragraph (1), to renumber each of paragraphs (1), (2), (3), (5), and (6) to (B), (C), (D), (E), and (F), respectively, and to make clear that each of the proposed newly numbered paragraphs (B), (C), (D), (E), and (F) apply to the series of Fund Shares that do not meet the criteria proposed in proposed new paragraph (A). 2. Statutory Basis The Exchange believes that its proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of section 6(b) of the Act.\14\ In particular, the proposal is consistent with section 6(b)(5) of the Act \15\ because it is 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 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. In particular, the proposed rules have the potential to [[Page 65265]] reduce the time frame for bringing options on ETFs to market, thereby reducing the burdens on issuers and other market participants. The Exchange also believes that enabling the listing and trading of options on ETFs pursuant to this new listing standard will benefit investors by providing them with valuable risk management tools. The Exchange notes that its proposal does not replace the need for a CSSA as provided in the current rule. The provisions of the current rule, including the need for a comprehensive surveillance sharing agreement, remain materially unchanged in the proposed rule and will continue to apply to options on ETFs that are not listed on an equities exchange pursuant to generic listing standards for series of portfolio depositary receipts or index fund shares based on international or global indexes under which a comprehensive surveillance agreement is not required. Instead, the proposed rule adds an additional listing mechanism for certain qualifying options on ETFs to be listed on the Exchange in a manner that is 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 facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b). \15\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange also believes that the proposed non-substantive organizational changes are reasonable, fair, and equitable because they are designed to make the rule easier to comprehend. As noted above, the proposed non-substantive changes do not change the need for a CSSA as provided in the current rule. The provisions of the current rule, including the need for a CSSA, remain materially unchanged in the proposed rule and will continue to apply to options on ETFs that are not listed on an equities exchange pursuant to generic listing standards for series of portfolio depositary receipts or index fund shares based on international or global indexes under which a comprehensive surveillance agreement is not required. These non- substantive changes to the rules are intended to make the rules clearer and less confusing for participants and investors and to eliminate potential confusion, thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system, and, in general, protecting investors and the public interest. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the proposed rule change is a competitive change that is substantially similar to recent rule changes by other options exchanges, such as MIAX Options Exchange (``MIAX''), NASDAQ OMX PHLX, LLC (``Phlx''), and International Stock Exchange LLC (``ISE'').\16\ The Exchange notes that the Exchange's affiliate, BATS Exchange, Inc. (``BATS'') also filed a similar rule change earlier this year.\17\ Furthermore, the Exchange believes this proposed rule change will benefit investors by providing additional methods to trade options on ETFs, and by providing them with valuable risk management tools. Specifically, the Exchange believes that market participants on the Exchange would benefit from the introduction and availability of options on ETFs in a manner that is similar to equities exchanges and will provide investors with a venue on which to trade options on these products. For all the reasons stated above, the Exchange does not believe that the proposed rule changes will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act, and believes the proposed change will enhance competition. --------------------------------------------------------------------------- \16\ See, e.g., Securities Exchange Act Release Nos. 74509 (March 13, 2015), 80 FR 14425 (March 19, 2015) (SR-MIAX-2015-04); 74553 (March 20, 2015), 80 FR 16072 (March 26, 2015) (SR-Phlx-2015- 27); and 74832 (April 29, 2015), 80 FR 25738 (May 5, 2015) (SR-ISE- 2015-16). \17\ See Securities Exchange Act Release No. 75166 (June 12, 2015), 80 FR 34946 (June 18, 2015) (SR-BATS-2015-43). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to section 19(b)(3)(A)(iii) of the Act \18\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\19\ --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(A)(iii). \19\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange 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. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative prior to 30 days after the date of filing.\20\ Rule 19b-4(f)(6)(iii), however, permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest.\21\ The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange has stated that waiver of the operative delay will permit the Exchange to list and trade certain ETF options on the same basis as other options markets.\22\ The Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\23\ --------------------------------------------------------------------------- \20\ 17 CFR 240.19b-4(f)(6)(iii). \21\ Id. \22\ See supra notes 16 and 17. \23\ 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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 change 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 [[Page 65266]] Send an email to rule-comments@sec.gov. Please include File Number SR-EDGX-2015-48 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-EDGX-2015-48. 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 also will be available for inspection and copying at the principal office of the Exchange. 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-EDGX-2015-48, and should be submitted on or before November 16, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-27071 Filed 10-23-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 206 / Monday, October 26, 2015 / Notices 65263
and Exchange Commission, 100 F Street ‘‘Act’’),1 and Rule 19b–4 thereunder,2 list options overlying ETFs that are
NE., Washington, DC 20549–1090. notice is hereby given that on October listed pursuant to generic listing
All submissions should refer to File 9, 2015, EDGX Exchange, Inc. (the standards on equities exchanges for
Number SR–CBOE–2015–088. This file ‘‘Exchange’’ or ‘‘EDGX’’) filed with the series of ETFs based on international or
number should be included on the Securities and Exchange Commission global indexes under which a
subject line if email is used. To help the (‘‘Commission’’) the proposed rule comprehensive surveillance sharing
Commission process and review your change as described in Items I and II agreement (‘‘CSSA’’) is not required.5
comments more efficiently, please use below, which Items have been prepared This proposal will enable the Exchange
only one method. The Commission will by the Exchange. The Exchange has to list and trade options on ETFs
post all comments on the Commission’s designated this proposal as a ‘‘non- without a CSSA provided that the ETF
Internet Web site (http://www.sec.gov/ controversial’’ proposed rule change is listed on an equities exchange
rules/sro.shtml). Copies of the pursuant to section 19(b)(3)(A) of the pursuant to the generic listing standards
submission, all subsequent Act 3 and Rule 19b–4(f)(6)(iii) that do not require a CSSA pursuant to
amendments, all written statements thereunder,4 which renders it effective Rule 19b–4(e) of the Exchange Act.6
with respect to the proposed rule upon filing with the Commission. The Rule 19b–4(e) provides that the listing
change that are filed with the Commission is publishing this notice to and trading of a new derivative
Commission, and all written solicit comments on the proposed rule securities product by a self-regulatory
communications relating to the change from interested persons. organization (‘‘SRO’’) shall not be
proposed rule change between the deemed a proposed rule change,
I. Self-Regulatory Organization’s
Commission and any person, other than pursuant to paragraph (c)(1) of Rule
Statement of the Terms of the Substance
those that may be withheld from the 19b–4, if the Commission has approved,
of the Proposed Rule Change
public in accordance with the pursuant to section 19(b) of the
The Exchange filed a proposal to Exchange Act, the SRO’s trading rules,
provisions of 5 U.S.C. 552, will be allow the listing of options overlying
available for Web site viewing and procedures, and listing standards for the
portfolio depositary receipts and index product class that would include the
printing in the Commission’s Public fund shares (collectively, ‘‘ETFs’’) that
Reference Room, 100 F Street NE., new derivatives securities product and
are listed pursuant to generic listing the SRO has a surveillance program for
Washington, DC 20549 on official standards on equities exchanges for the product class.7 In other words, the
business days between the hours of series of ETFs based on international or proposal will amend the listing
10:00 a.m. and 3:00 p.m. Copies of such global indexes under which a standards to allow the Exchange to list
filing also will be available for comprehensive surveillance sharing and trade options on ETFs based on
inspection and copying at the principal agreement is not required. international or global indexes to a
office of the Exchange. All comments The text of the proposed rule change similar degree that they are allowed to
received will be posted without change; is available at the Exchange’s Web site be listed on several equities exchanges.8
the Commission does not edit personal at www.batstrading.com, at the Currently, EDGX Options rules allow
identifying information from principal office of the Exchange, and at for the listing and trading of options on
submissions. You should submit only the Commission’s Public Reference Fund Shares. Rule 19.3(i)(1)–(3) provide
information that you wish to make Room. the listings standards for options on
available publicly. All submissions Fund Shares with non-U.S. component
should refer to File Number SR–CBOE– II. Self-Regulatory Organization’s
Statement of the Purpose of, and stocks, such as Fund Shares based on
2015–088, and should be submitted on international or global indexes. Rule
or before November 16, 2015. Statutory Basis for, the Proposed Rule
Change 19.3(i)(1) requires that any non-U.S.
For the Commission, by the Division of component stocks of an index or
Trading and Markets, pursuant to delegated In its filing with the Commission, the portfolio of stocks on which the Fund
authority.29 Exchange included statements Shares are based that are not subject to
Brent J. Fields, concerning the purpose of and basis for a CSSA do not in the aggregate represent
Secretary. the proposed rule change and discussed more than 50% of the weight of the
[FR Doc. 2015–27086 Filed 10–23–15; 8:45 am] any comments it received on the index or portfolio. Rule 19.3(i)(2)
BILLING CODE 8011–01–P
proposed rule change. The text of these requires stocks for which the primary
statements may be examined at the market is in any one country that is not
places specified in Item IV below. The
SECURITIES AND EXCHANGE Exchange has prepared summaries, set 5 See, e.g., EDGX Rule 14.2(b)(3); BATS Exchange
COMMISSION forth in Sections A, B, and C below, of Rule 14.11(b)(3)(A)(ii); NYSE MKT Rule 1000
the most significant parts of such Commentary .03(a)(B); NYSE Arca Equities Rule
5.2(j)(3) Commentary .01 (a)(B); and NASDAQ Rule
[Release No. 34–76200; File No. SR–EDGX–
statements. 5705(a)(3)(A)(ii).
6 17 CFR 240.19b–4(e).
2015–48] A. Self-Regulatory Organization’s 7 When relying on Rule 19b–4(e), the SRO must
Statement of the Purpose of, and submit Form 19b–4(e) to the Commission within
Self-Regulatory Organizations; EDGX Statutory Basis for, the Proposed Rule five business days after the SRO begins trading the
Exchange, Inc.; Notice of Filing and Change new derivative securities products. See Exchange
Immediate Effectiveness of a Proposed Act Release No. 40761 (December 8, 1998), 63 FR
1. Purpose
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Rule Change To Amend Rule 19.3 To 70952 (December 22, 1998).
8 See EDGX Rule 14.2(b)(3); BATS Rules
Allow the Listing of Certain Options The Exchange is proposing to amend 14.11(b)(3)(A)(ii); NYSE MKT Rule 1000
Based on International Indexes Rule 19.3(i) to allow the Exchange’s Commentary .03(a)(B); NYSE Arca Equities Rule
options platform (‘‘EDGX Options’’) to 5.2(j)(3) Commentary .01 (a)(B); and NASDAQ Rule
October 20, 2015. 5705(a)(3)(A)(ii). See also Securities Exchange Act
Pursuant to section 19(b)(1) of the 1 15 U.S.C. 78s(b)(1).
Release Nos. 54739 (November 9, 2006), 71 FR
Securities Exchange Act of 1934 (the 66993 (SR–Amex–2006–78); 55269 (February 9,
2 17 CFR 240.19b–4. 2007), 72 FR 7490 (February 15, 2007) (SR–
3 15 U.S.C. 78s(b)(3)(A).
NASDAQ–2006–050); 55621 (April 12, 2007), 72 FR
29 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(6)(iii). 19571 (April 18, 2007) (SR–NYSEArca–2006–86)
VerDate Sep<11>2014 18:53 Oct 23, 2015 Jkt 238001 PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 E:\FR\FM\26OCN1.SGM 26OCN1](https://thefederalregister.org/doc/80_FR_65469/page/1.svg)
![65266 Federal Register / Vol. 80, No. 206 / Monday, October 26, 2015 / Notices
• Send an email to rule-comments@ SECURITIES AND EXCHANGE Equities Rule 8.600, which governs the
sec.gov. Please include File Number SR– COMMISSION listing and trading of Managed Fund
EDGX–2015–48 on the subject line. Shares. The Shares will be offered by
[Release No. 34–76202; File No. SR–
First Trust Exchange-Traded Fund IV
Paper Comments NYSEArca–2015–77]
(‘‘Trust’’), a Massachusetts business
• Send paper comments in triplicate Self-Regulatory Organizations; NYSE trust which is registered with the
Arca, Inc.; Notice of Filing of Commission as an open-end
to Secretary, Securities and Exchange
Amendment No. 1 and Order Granting management investment company.6
Commission, 100 F Street NE.,
Accelerated Approval of a Proposed First Trust Advisors L.P. (‘‘First Trust’’
Washington, DC 20549–1090. or the ‘‘Adviser’’) will serve as the
Rule Change, as Modified by
All submissions should refer to File Amendment No. 1, To List and Trade investment adviser of the Fund.
Number SR–EDGX–2015–48. This file Shares of the First Trust Heitman Heitman Real Estate Securities LLC
number should be included on the Global Prime Real Estate ETF Under (‘‘Sub-Adviser’’) will be the sub-adviser
subject line if email is used. To help the NYSE Arca Equities Rule 8.600 to the Fund. Heitman International Real
Commission process and review your Estate Securities HK Limited and
comments more efficiently, please use October 20, 2015. Heitman International Real Estate
only one method. The Commission will Securities GmbH (‘‘Sub-Sub-Advisers’’)
I. Introduction
will be the sub-sub-advisers to the
post all comments on the Commission’s On August 28, 2015, NYSE Arca, Inc. Fund. First Trust Portfolios L.P. will be
Internet Web site (http://www.sec.gov/ (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed the principal underwriter and
rules/sro.shtml). Copies of the with the Securities and Exchange distributor of the Fund’s Shares. Brown
submission, all subsequent Commission (‘‘Commission’’), pursuant Brothers Harriman & Co. (the ‘‘BBH’’)
amendments, all written statements to section 19(b)(1) of the Securities will serve as administrator, custodian
with respect to the proposed rule Exchange Act of 1934 (‘‘Act’’) 1 and Rule and transfer agent for the Fund.
change that are filed with the 19b–4 thereunder,2 a proposed rule
Commission, and all written change to list and trade shares Principal Investments
communications relating to the (‘‘Shares’’) of the First Trust Heitman The Exchange states that, under
proposed rule change between the Global Prime Real Estate ETF (the normal market conditions,7 at least 80%
Commission and any person, other than ‘‘Fund,’’) under NYSE Arca Equities of the Fund’s net assets in the following
those that may be withheld from the Rule 8.600. The proposed rule change U.S. and non-U.S. exchange-traded real
public in accordance with the was published for comment in the estate securities: Real estate investment
provisions of 5 U.S.C. 552, will be Federal Register on September 17, trusts (‘‘REITs’’), real estate operating
available for Web site viewing and 2015.3 On October 1, 2015, the companies (‘‘REOCs’’) and common
printing in the Commission’s Public Exchange filed Amendment No. 1 to the stocks or ‘‘Depositary Receipts’’ of
proposed rule change.4 The Commission companies primarily engaged in the real
Reference Room, 100 F Street NE.,
received no comments on the proposed estate industry (collectively, ‘‘Real
Washington, DC 20549 on official
rule change. The Commission is Estate Securities’’).8 The Fund may
business days between the hours of invest in non-U.S. securities (including
10:00 a.m. and 3:00 p.m. Copies of such publishing this notice to solicit
comments on Amendment No. 1 from securities of certain non-U.S.
filing also will be available for companies), which include securities
interested persons, and is approving the
inspection and copying at the principal issued or guaranteed by companies
proposed rule change, as modified by
office of the Exchange. All comments
Amendment No. 1, on an accelerated
received will be posted without change; basis. found in the Notice and the Registration Statement,
the Commission does not edit personal as applicable. See Notice, supra note 3, and
II. The Exchange’s Description of the Registration Statement, infra note 6.
identifying information from 6 The Exchange states that the Trust is registered
submissions. You should submit only Proposed Rule Change 5
under the 1940 Act. According to the Exchange, on
information that you wish to make The Exchange proposes to list and August 27, 2014, the Trust filed an amendment to
available publicly. All submissions trade the Shares under NYSE Arca the Trust’s registration statement on Form N–1A
under the Securities Act of 1933 (the ‘‘1933 Act’’)
should refer to File Number SR–EDGX– (15 U.S.C. 77a), and under the 1940 Act relating to
2015–48, and should be submitted on or 1 15 U.S.C. 78s(b)(1). the Fund (File Nos. 333–174332 and 811–22559)
2 17 CFR 240.19b–4.
before November 16, 2015. (the ‘‘Registration Statement’’). The Exchange states
3 See Securities Exchange Act Release No. 75901 that the Commission has issued an order granting
For the Commission, by the Division of (September 11, 2015), 80 FR 55892 (‘‘Notice’’). certain exemptive relief to the Trust under the 1940
Trading and Markets, pursuant to delegated 4 In Amendment No. 1, the Exchange: (1) Act. See Investment Company Act Release No.
authority.24 Identified the investment objective of the Fund; (2) 28468 (October 27, 2008) (File No. 812–13477).
clarified the scope of the Fund’s permitted 7 The term ‘‘under normal market conditions’’
Brent J. Fields, investments; (3) modified its description of the includes, but is not limited to, the absence of
Secretary. Fund’s Share redemption process; (4) supplemented extreme volatility or trading halts in the equity
its description of the availability of price markets or the financial markets generally;
[FR Doc. 2015–27071 Filed 10–23–15; 8:45 am]
information for the Shares and the underlying operational issues causing dissemination of
BILLING CODE 8011–01–P assets; (5) identified another entity as the inaccurate market information; or force majeure
administrator, custodian, and transfer agent for the type events such as systems failure, natural or man-
Fund; and (6) made other technical changes. made disaster, act of God, armed conflict, act of
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Amendment No. 1 is available at: http:// terrorism, riot or labor disruption or any similar
www.sec.gov/rules/sro/nysearca/2015/34-75901- intervening circumstance.
amendment1.pdf. 8 The Fund’s investments in Real Estate Securities
5 The Commission notes that additional and certain non-U.S. companies (as referred to
information regarding the Trust, the Fund, its below under ‘‘Non-Principal Investments’’) may be
investments, and the Shares, including investment in the form of Depositary Receipts, which include
strategies, risks, creation and redemption American Depositary Receipts, Global Depositary
procedures, fees, portfolio holdings disclosure Receipts, and European Depositary Receipts. All
policies, calculation of net asset value (‘‘NAV’’), Depositary Receipts in which the Fund invests will
24 17 CFR 200.30–3(a)(12). distributions, and taxes, among other things, can be be traded on a U.S. or a non-U.S. exchange.
VerDate Sep<11>2014 18:53 Oct 23, 2015 Jkt 238001 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 E:\FR\FM\26OCN1.SGM 26OCN1](https://thefederalregister.org/doc/80_FR_65469/page/4.svg)
Document Created: 2018-02-27 08:56:00
Document Modified: 2018-02-27 08:56:00
| 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 65263 |
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