81 FR 10937 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Correct the Text of ISE Gemini Rule 306
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 41 (March 2, 2016)
Federal Register Volume 81, Issue 41 (March 2, 2016)
| Page Range | 10937-10939 | |
| FR Document | 2016-04501 |
[Federal Register Volume 81, Number 41 (Wednesday, March 2, 2016)] [Notices] [Pages 10937-10939] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-04501] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77230; File No. SR-ISE Gemini-2016-01] Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Correct the Text of ISE Gemini Rule 306 February 25, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act'' or the ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on February 18, 2016, ISE Gemini, LLC (the ``Exchange'' or ``ISE Gemini'') filed with the Securities and Exchange Commission the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. 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 ISE Gemini proposes to correct, .08 of Supplementary Material to Rule 306, Registration Requirements, which describes the categories of registration and respective qualification examinations required for individual associated persons (``associated persons'') that engage in the securities activities of members on the Exchange. This amendment proposes to replace the inadvertent use of the term ``Permit Holder'' with ``Member'' which is the correct term used throughout the ISE Gemini Rulebook to describe a member of the Exchange. The text of the proposed rule change is available on the Exchange's Web site at www.ise.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 self-regulatory organization 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, [[Page 10938]] 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 purpose of this proposed rule change is to make corrections to .08 of Supplementary Material to Rule 306, Registration Requirements, which describes the categories of registration and respective qualification examinations required for associated persons that engage in the securities activities of members on the Exchange. This amendment proposes to replace the inadvertent use of the term ``Permit Holder'' with ``Member'' because ``Member'' is the correct term used throughout the ISE Gemini Rulebook to describe a member of the Exchange. In December of 2015, ISE Gemini proposed to, among other things, (1) replace the Proprietary Trader registration category and the Series 56 Proprietary Trader registration qualification examination with the Securities Trader category of registration and the Series 57 Securities Trader registration qualification examination for Securities Traders respectively and (2) replace the Proprietary Trader Principal registration category with the registration category of Securities Trader Principal and require Securities Trader Principals to take the Series 57 qualification examination in addition to the Series 24 qualification examination.\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 76836 (January 5, 2016), 81 FR 1263 (January 11, 2016), SR-ISE Gemini-2015-28. --------------------------------------------------------------------------- Currently, .08 of Supplementary Material to Rule 306, Registration Requirements, inadvertently uses the term ``Permit Holder'' rather than ``Member,'' which is the correct term used throughout the ISE Gemini Rulebook describe a member of the Exchange. ISE Gemini now proposes to amend .08 to Supplementary Material to Rule 306 to reflect ISE Gemini's longstanding use of the term ``Member'' to describe members of the Exchange. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \4\ in general, and furthers the objectives of Section 6(b)(5) \5\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, 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. The Exchange believes it is appropriate to make the proposed replacement of ``Permit Holder'' with ``Member'' so that the correct term is used in its rules. Additionally, replacing the inadvertent use of the term ``Permit Holder'' with ``Member'' will create consistency and eliminate confusion in its rules. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition This proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act because ISE Gemini is correcting its rule text to replace the inadvertent use of the term ``Permit Holder'' with ``Member'' because ``Member'' is the correct term used throughout the ISE Gemini Rulebook to describe a member of the Exchange. 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 this proposed rule change. The Exchange has not received any written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not significantly affect the protection of investors or the public interest, does not impose any significant burden on competition, and, by its terms, does not 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) of the Act \6\ and Rule 19b- 4(f)(6) thereunder.\7\ The Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing the proposed rule change, or such shorter time as designated by the Commission, as required by Rule 19b-4(f)(6). --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A). \7\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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-ISE Gemini-2016-01 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-ISE Gemini-2016-01. 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 [[Page 10939]] should refer to File Number SR-ISE Gemini-2016-01 and should be submitted by March 23, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-04501 Filed 3-1-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 41 / Wednesday, March 2, 2016 / Notices 10937
price range by adding the threshold clearly erroneous trade nullification SECURITIES AND EXCHANGE
amount to and subtracting the threshold process. In particular, as discussed COMMISSION
amount from the Nasdaq Best Bid. If the above, the proposed Opening Cross
[Release No. 34–77230; File No. SR–ISE
Opening Cross price is lower than the Price Tests are designed to mitigate the Gemini–2016–01]
closing price used under Test A, then potential for a mispriced Opening Cross
the Exchange would establish the price when an order or quote entered by a Self-Regulatory Organizations; ISE
range by adding the threshold amount to participant in error establishes one side Gemini, LLC; Notice of Filing and
and subtracting the threshold amount of the QBBO and significantly skews the Immediate Effectiveness of Proposed
from the Nasdaq Best Offer. If a security Opening Cross price for the security. As Rule Change To Correct the Text of ISE
does not have a Nasdaq Official Closing noted by the Exchange, the proposal Gemini Rule 306
Price or consolidated closing price, as
would help ensure that the Opening February 25, 2016.
applicable, then the Exchange would
Cross price for a security is reasonably Pursuant to Section 19(b)(1) of the
use a price of $0. If the Opening Cross
price for a security falls outside of the related to the market and not the Securities Exchange Act of 1934 (the
relevant price range, then no Opening product of erroneous order entry. The ‘‘Act’’ or the ‘‘Exchange Act’’),1 and
Cross would occur in the security; Commission also notes that a Rule 19b–4 thereunder,2 notice is
MOO, LOO, OIO, and Early Market commenter expressed support for the hereby given that on February 18, 2016,
Hours orders would be cancelled; and proposal, stating that the ‘‘proposed ISE Gemini, LLC (the ‘‘Exchange’’ or
the Exchange would open that security change to avoid a biased or erroneous ‘‘ISE Gemini’’) filed with the Securities
for market hours trading consistent with opening due to an inadvertent or and Exchange Commission the proposed
Rule 4752(c).27 mistaken submission of a pre-open rule change as described in Items I, II,
order and price is a reasonable change and III below, which Items have been
Implementation by NASDAQ.’’ 32 Based on the prepared by the self-regulatory
The Exchange proposes to implement foregoing, the Commission believes that organization. The Commission is
the Opening Cross Price Tests in stages the proposed Opening Cross Price Tests publishing this notice to solicit
over the course of approximately four are consistent with the Act. comments on the proposed rule change
weeks, beginning with a small number from interested persons.
of securities.28 The Exchange states that The Commission also believes that the
Exchange’s proposal to implement the I. Self-Regulatory Organization’s
the implementation details would be
Opening Cross Price Tests in stages is Statement of the Terms of Substance of
published via an Exchange Trader Alert
consistent with the Act because it the Proposed Rule Change
and be posted on the NasdaqTrader Web
site.29 would help to limit potential market ISE Gemini proposes to correct, .08 of
disruption if the Exchange experiences Supplementary Material to Rule 306,
III. Discussion and Commission a technical issue with the Registration Requirements, which
Findings implementation. describes the categories of registration
After careful review, the Commission and respective qualification
finds that the proposed rule change is IV. Conclusion examinations required for individual
consistent with the requirements of the It is therefore ordered, pursuant to associated persons (‘‘associated
Act and the rules and regulations Section 19(b)(2) of the Act,33 that the persons’’) that engage in the securities
thereunder applicable to a national proposed rule change (SR–NASDAQ– activities of members on the Exchange.
securities exchange.30 In particular, the This amendment proposes to replace the
2015–159) be, and hereby is, approved.
Commission finds that the proposed inadvertent use of the term ‘‘Permit
rule change is consistent with Section For the Commission, by the Division of Holder’’ with ‘‘Member’’ which is the
6(b)(5) of the Act,31 which requires, Trading and Markets, pursuant to delegated correct term used throughout the ISE
among other things, that the rules of a authority.34 Gemini Rulebook to describe a member
national securities exchange be Robert W. Errett, of the Exchange. The text of the
designed to prevent fraudulent and Deputy Secretary. proposed rule change is available on the
manipulative acts and practices, to [FR Doc. 2016–04505 Filed 3–1–16; 8:45 am] Exchange’s Web site at www.ise.com, at
promote just and equitable principles of BILLING CODE 8011–01–P
the principal office of the Exchange, and
trade, to remove impediments to and at the Commission’s Public Reference
perfect the mechanism of a free and Room.
open market and a national market
II. Self-Regulatory Organization’s
system, and, in general, to protect
Statement of the Purpose of, and
investors and the public interest.
The Commission notes that the Statutory Basis for, the Proposed Rule
proposal is designed to enhance the Change
price protections for the Exchange’s In its filing with the Commission, the
opening process, to mitigate the self-regulatory organization included
potential for mispriced trades, and to statements concerning the purpose of,
mitigate the need to use the Exchange’s and basis for, the proposed rule change
32 See Kubitz Letter, supra note 4. This
and discussed any comments it received
mstockstill on DSK4VPTVN1PROD with NOTICES
27 See Notice, 81 FR at 1242; see also proposed on the proposed rule change. The text
commenter also expressed broader concerns
Rule 4752(d)(2)(F)(iii). of these statements may be examined at
28 See Notice, 81 FR at 1243. regarding the availability of information about pre-
market activities and regarding the circumstances the places specified in Item IV below.
29 See id.
30 In approving this proposed rule change, the
under which pre-market activities would constitute The Exchange has prepared summaries,
Commission has considered the proposed rule’s manipulation, in light of the events of August 24, set forth in sections A, B, and C below,
impact on efficiency, competition, and capital 2015. See id.
33 15 U.S.C. 78s(b)(2).
formation. See 15 U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1).
31 15 U.S.C. 78f(b)(5). 34 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 19:10 Mar 01, 2016 Jkt 238001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 E:\FR\FM\02MRN1.SGM 02MRN1](https://thefederalregister.org/doc/81_FR_10978/page/1.svg)
![Federal Register / Vol. 81, No. 41 / Wednesday, March 2, 2016 / Notices 10939
should refer to File Number SR–ISE the ‘‘Funds’’), any national securities seeking relief for future, unidentified
Gemini–2016–01 and should be exchange or national securities Funds that will be structured in the
submitted by March 23, 2016. association on or through which shares same way, operating under the same
For the Commission, by the Division of issued by the Funds (‘‘Shares’’) may representations and adhering to the
Trading and Markets, pursuant to delegated subsequently trade (‘‘Exchange’’), and same conditions as described in this
authority.8 persons or entities engaging in Order but may have other investment
Robert W. Errett, transactions in Shares (collectively, the objectives.
Deputy Secretary. ‘‘Requestors’’) requested exemptions, or The Requestors represent, among
interpretive or no-action relief, from other things, the following:
[FR Doc. 2016–04501 Filed 3–1–16; 8:45 am]
Section 11(d)(1) of the Securities • Shares of the Funds will be issued
BILLING CODE 8011–01–P by the Trusts which are open-end
Exchange Act of 1934, as amended
(‘‘Exchange Act’’), Rules 10b–10, 10b– management investment companies that
17, and 11d1–2 thereunder, and Rules are registered with the Commission; 1
SECURITIES AND EXCHANGE • The Trusts will continuously
101 and 102 of Regulation M, in
COMMISSION redeem aggregations of Shares at net
connection with secondary market
[Release No. 34–77240; File No. TP 15–06] transactions in Shares and the creation asset value (‘‘NAV’’) and the Shares
or redemption of aggregations of Shares. should routinely trade at tight bid-ask
Order Granting Limited Exemptions Shares of each Fund will be issued by spreads and narrow premiums and
From Exchange Act Section 11(d), a Trust, and each Trust will be discounts to NAV;
Exchange Act Rules 10b–10, 10b–17, registered with the Commission under • Shares of the Funds will be listed
and 11d1–2, and Rules 101 and 102 of the Investment Company Act of 1940, as and traded on an Exchange;
Regulation M to Eaton Vance ETMF amended (‘‘1940 Act’’), as an open-end • The Exchange or other market
Trust, Eaton Vance NextShares Trust management investment company. The information provider will disseminate
II, Eaton Vance Balanced NextShares, Funds will be listed on an Exchange and every 15 minutes throughout the trading
and Other Exchange-Traded Managed will also be actively managed by an day through the NASDAQ OMX Global
Funds Pursuant to Exchange Act investment adviser registered under the Index Data Service the intraday
Section 36, Exchange Act Rules 10b– Investment Advisers Act of 1940, but indicative value (‘‘IIV’’) of Shares; 2
10(f) and 10b–17(b)(2), and Rules may be sub-advised by other investment • The methodology for calculating the
101(d) and 102(e) of Regulation M advisers. The Funds are not actively NAV will be fully disclosed in the
managed exchange traded funds prospectus and any modifications to the
February 25, 2016. methodology used to calculate NAV will
(‘‘ETFs’’) but will be structured
By letter dated February 25, 2016 (the similarly to actively managed ETFs. be fully disclosed to current and
‘‘Letter’’), as supplemented by Specifically, the Funds will be prospective investors prior to
conversations with the staff of the investment companies that issue shares implementation;
Division of Trading and Markets, that trade individually on an Exchange • The trading price of Shares will be
counsel for Eaton Vance ETMF Trust but can be purchased from and directly linked to the relevant Fund’s
and Eaton Vance NextShares Trust II redeemed with the issuing investment end-of-day NAV in that all bids, offers,
(each a ‘‘Trust’’), on behalf of each company through authorized and execution prices will be expressed
Trust, Eaton Vance Balanced participants only in large aggregations. as a market-determined premium or
NextShares, Eaton Vance Global The principal difference between the discount (e.g., +$0.01, ¥$0.02) to that
Dividend Income NextShares, Eaton Funds and ETFs is that, unlike with the day’s NAV;
Vance Growth NextShares, Eaton Vance • For each trade, the premium or
trading in ETF shares, the trading price
Large-Cap Value NextShares, Eaton discount to NAV is locked in at trade
of Shares will be directly linked to the
Vance Richard Bernstein All Asset execution and the final transaction price
relevant Fund’s end-of-day net asset
Strategy NextShares, Eaton Vance is determined at the end of the day
value (‘‘NAV’’). In connection with this
Richard Bernstein Equity Strategy when the relevant Fund’s NAV is
‘‘NAV-Based Trading,’’ all bids, offers,
NextShares, Eaton Vance Small-Cap computed;
and execution prices will be expressed • Because all transaction prices are
NextShares, Eaton Vance Stock as a market-determined premium or
NextShares, Parametric Emerging based on an end-of-day NAV, the Funds
discount (e.g., +$0.01, ¥$0.02) to that will not need to disclose portfolio
Markets NextShares, Parametric day’s NAV. For each trade, the premium
International Equity NextShares, Eaton holdings on a daily basis in order to
or discount to NAV (which may be zero) maintain a close relationship between
Vance Bond NextShares, Eaton Vance 5- is locked in at trade execution and the
to-15 Year Laddered Municipal Income Share trading prices and NAV;
final transaction price (i.e., NAV plus or • Competition among market makers
NextShares, Eaton Vance Floating-Rate minus the market-determined premium/ seeking to earn reliable, low-risk profits
& High Income NextShares, Eaton Vance discount to NAV) is determined at the should enable the Shares to routinely
Global Macro Absolute Return end of the day when the relevant Fund’s trade at tight bid-ask spreads and
NextShares, Eaton Vance Government NAV is computed. Because all narrow premiums/discounts to NAV;
Obligations NextShares, Eaton Vance transaction prices are based on an end-
High Income Opportunities NextShares, of-day NAV, the Funds will not need to 1 See Investment Company Act Rel. No. 31361
Eaton Vance High Yield Municipal disclose portfolio holdings on a daily (Dec. 2, 2014).
Income NextShares, Eaton Vance basis in order to maintain a close 2 As explained in the Letter, unlike for ETFs,
mstockstill on DSK4VPTVN1PROD with NOTICES
National Municipal Income NextShares, relationship between Share trading which arrange for IIVs to be disseminated every 15
seconds, IIVs for the Funds will not provide pricing
and any future exchange-traded prices and NAV, as is currently the case signals for market intermediaries or other buyers
managed funds operating under the with actively managed ETFs. and sellers of Shares seeking to estimate the
same representations and adhering to In the present exemptive request, the difference between the value of the Funds’
the same conditions as set forth in this Requestors are seeking relief for 18 portfolios and the price at which Shares are
currently trading. In NAV-Based Trading, the
Order (each a ‘‘Fund’’ and, collectively, ‘‘Initial ETMFs,’’ the named Funds secondary market premium/discount that applies to
above, with a variety of investment an ETMF is always fully transparent and does not
8 17 CFR 200.30–3(a)(12). objectives. The Requestors are also depend on dissemination of IIVs.
VerDate Sep<11>2014 19:10 Mar 01, 2016 Jkt 238001 PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 E:\FR\FM\02MRN1.SGM 02MRN1](https://thefederalregister.org/doc/81_FR_10978/page/3.svg)
Document Created: 2018-02-02 15:04:26
Document Modified: 2018-02-02 15:04:26
| 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 | 81 FR 10937 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR