81 FR 13854 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change to Rule 14.11(i), Managed Fund Shares, To List and Trade Shares of the iShares iBonds Dec 2023 AMT-Free Muni Bond ETF, iShares iBonds Dec 2024 AMT-Free Muni Bond ETF, iShares iBonds Dec 2025 AMT-Free Muni Bond ETF, and iShares iBonds Dec 2026 AMT-Free Muni Bond ETF of the iShares U.S. ETF Trust
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 50 (March 15, 2016)
Federal Register Volume 81, Issue 50 (March 15, 2016)
| Page Range | 13854-13855 | |
| FR Document | 2016-05754 |
[Federal Register Volume 81, Number 50 (Tuesday, March 15, 2016)] [Notices] [Pages 13854-13855] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-05754] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77333; File No. SR-BATS-2016-02] Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change to Rule 14.11(i), Managed Fund Shares, To List and Trade Shares of the iShares iBonds Dec 2023 AMT-Free Muni Bond ETF, iShares iBonds Dec 2024 AMT-Free Muni Bond ETF, iShares iBonds Dec 2025 AMT-Free Muni Bond ETF, and iShares iBonds Dec 2026 AMT-Free Muni Bond ETF of the iShares U.S. ETF Trust March 9, 2016. On January 12, 2016, BATS Exchange, Inc. (``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade shares of the iShares iBonds Dec 2023 AMT-Free Muni Bond ETF, iShares iBonds Dec 2024 AMT-Free Muni Bond ETF, iShares iBonds Dec 2025 AMT- Free Muni Bond ETF, and iShares iBonds Dec 2026 AMT-Free Muni Bond ETF of the iShares U.S. ETF Trust under BATS Rule 14.11(i). The proposed rule change was published for comment in the Federal Register on January 27, 2016.\3\ The Commission has not received any comments on the proposal. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 76954 (Jan. 21, 2016), 81 FR 4695. --------------------------------------------------------------------------- Section 19(b)(2) of the Act \4\ provides that within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding, or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the [[Page 13855]] proposed rule change should be disapproved. The 45th day after publication of the notice for this proposed rule change is March 12, 2016. The Commission is extending this 45-day time period. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider this proposed rule change. Accordingly, the Commission, pursuant to section 19(b)(2) of the Act,\5\ designates April 26, 2016, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SR-BATS-2016-02). --------------------------------------------------------------------------- \5\ Id. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\6\ --------------------------------------------------------------------------- \6\ 17 CFR 200.30-3(a)(31). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-05754 Filed 3-14-16; 8:45 am] BILLING CODE 8011-01-P
![13854 Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Notices
The Exchange believes that difference A. by order approve or disapprove such For the Commission, by the Division of
between the proposed Rule 98 proposed rule change, or Trading and Markets, pursuant to delegated
definition of ‘‘customer-driven order’’ authority.22
B. institute proceedings to determine Robert W. Errett,
and the Rule 5320 definition of whether the proposed rule change
‘‘facilitated order’’ is not material Deputy Secretary.
should be disapproved.
because, if a ‘‘customer-driven order’’ [FR Doc. 2016–05753 Filed 3–14–16; 8:45 am]
under Rule 98 is not executed on a IV. Solicitation of Comments BILLING CODE 8011–01–P
riskless principal basis, it would still be Interested persons are invited to
subject to the requirements of Rule 5320 submit written data, views, and
and would not be eligible for the SECURITIES AND EXCHANGE
arguments concerning the foregoing,
COMMISSION
riskless principal exception. including whether the proposed rule
The Exchange further believes that change is consistent with the Act. [Release No. 34–77333; File No. SR–BATS–
providing DMMs with the choice of Comments may be submitted by any of 2016–02]
whether to designate customer-driven the following methods:
Self-Regulatory Organizations; BATS
orders as DMM interest would permit Electronic Comments Exchange, Inc.; Notice of Designation
member organizations operating DMM of a Longer Period for Commission
units to facilitate customer-based order • Use the Commission’s Internet
comment form (http://www.sec.gov/ Action on Proposed Rule Change to
flow at the Exchange without such Rule 14.11(i), Managed Fund Shares,
rules/sro.shtml); or
orders being restricted by DMM To List and Trade Shares of the
obligations, which may be contrary to • Send an email to rule-comments@
iShares iBonds Dec 2023 AMT-Free
sec.gov. Please include File Number SR–
customer instructions or best execution Muni Bond ETF, iShares iBonds Dec
NYSE–2016–16 on the subject line.
obligations. The Exchange further 2024 AMT-Free Muni Bond ETF,
believes that the proposed rule change Paper Comments iShares iBonds Dec 2025 AMT-Free
would apply DMM rules fairly because Muni Bond ETF, and iShares iBonds
• Send paper comments in triplicate
customer-driven orders not designated Dec 2026 AMT-Free Muni Bond ETF of
to Secretary, Securities and Exchange
as DMM interest, would not be subject the iShares U.S. ETF Trust
Commission, 100 F Street NE.,
to the obligations, nor be eligible for the Washington, DC 20549–1090. March 9, 2016.
benefits, applicable to DMM interest.
All submissions should refer to File On January 12, 2016, BATS Exchange,
Finally, the Exchange believes there is Number SR–NYSE–2016–16. This file Inc. (‘‘Exchange’’) filed with the
good cause to accelerate effectiveness of number should be included on the Securities and Exchange Commission
this proposed rule change because it subject line if email is used. To help the (‘‘Commission’’), pursuant to Section
would promote competition on the Commission process and review your 19(b)(1) of the Securities Exchange Act
Exchange. As has been previously comments more efficiently, please use of 1934 (‘‘Act’’) 1 and Rule 19b–4
announced, additional member only one method. The Commission will thereunder,2 a proposed rule change to
organizations are seeking to become post all comments on the Commission’s list and trade shares of the iShares
approved as DMMs.21 The proposed Internet Web site (http://www.sec.gov/ iBonds Dec 2023 AMT-Free Muni Bond
rule change would facilitate the rules/sro.shtml). Copies of the ETF, iShares iBonds Dec 2024 AMT-
transition of DMM responsibilities to submission, all subsequent Free Muni Bond ETF, iShares iBonds
new entrants that engage in customer- amendments, all written statements Dec 2025 AMT-Free Muni Bond ETF,
facing market making, thereby with respect to the proposed rule and iShares iBonds Dec 2026 AMT-Free
promoting competition among member change that are filed with the Muni Bond ETF of the iShares U.S. ETF
organizations seeking to be approved as Commission, and all written Trust under BATS Rule 14.11(i). The
a DMM on the Exchange. communications relating to the proposed rule change was published for
proposed rule change between the comment in the Federal Register on
Within 45 days of the date of Commission and any person, other than January 27, 2016.3 The Commission has
publication of this notice in the Federal those that may be withheld from the not received any comments on the
Register or within such longer period public in accordance with the proposal.
up to 90 days (i) as the Commission may provisions of 5 U.S.C. 552, will be Section 19(b)(2) of the Act 4 provides
designate if it finds such longer period available for Web site viewing and that within 45 days of the publication of
to be appropriate and publishes its printing in the Commission’s Public notice of the filing of a proposed rule
reasons for so finding or (ii) as to which Reference Room, 100 F Street NE., change, or within such longer period up
the Exchange consents, the Commission Washington, DC 20549 on official to 90 days as the Commission may
will: business days between the hours of designate if it finds such longer period
10:00 a.m. and 3:00 p.m. Copies of the to be appropriate and publishes its
filing also will be available for reasons for so finding, or as to which the
inspection and copying at the principal self-regulatory organization consents,
office of the Exchange. All comments the Commission shall either approve the
received will be posted without change; proposed rule change, disapprove the
asabaliauskas on DSK3SPTVN1PROD with NOTICES
21 See ‘‘Citadel Securities to become #1 the Commission does not edit personal proposed rule change, or institute
Designated Market Maker on NYSE,’’ available at identifying information from proceedings to determine whether the
http://www.citadelsecurities.com/news/citadel- submissions. You should submit only
securities-become-1-designated-market-maker- information that you wish to make 22 17 CFR 200.30–3(a)(12).
nyse/; and ‘‘GTS to become Designated Market available publicly. All submissions
1 15 U.S.C. 78s(b)(1).
Maker on the New York Stock Exchange,’’ available 2 17 CFR 240.19b–4.
at http://gtsx.com/in-the-news/details/gts-to-
should refer to File Number SR–NYSE– 3 See Securities Exchange Act Release No. 76954
become-designated-market-maker-on-the-new-york- 2016–16 and should be submitted on or (Jan. 21, 2016), 81 FR 4695.
stock-exchange. before April 5, 2016. 4 15 U.S.C. 78s(b)(2).
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![Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Notices 13855
proposed rule change should be aggregations of Shares of at least 50,000 forth in a relevant class relief letter,4
disapproved. The 45th day after shares (‘‘Creation Units’’). will have received individual relief from
publication of the notice for this The Trust is registered with the the Commission, or will be able to rely
proposed rule change is March 12, 2016. Securities and Exchange Commission upon individual relief even though they
The Commission is extending this 45- (‘‘Commission’’) under the Investment are not named parties (for example, a
day time period. Company Act of 1940, as amended no-action letter);
The Commission finds it appropriate (‘‘1940 Act’’), as an open-end • At least 70% of the Fund is
to designate a longer period within management investment company. The comprised of component securities that
which to take action on the proposed Fund seeks to track the performance of will meet the minimum public float and
rule change so that it has sufficient time the underlying index, the Dorsey minimum average daily trading volume
to consider this proposed rule change. Wright® Multi-Asset Income Index (the thresholds under the ‘‘actively-traded
Accordingly, the Commission, pursuant ‘‘Index’’). The Fund intends to operate securities’’ definition found in
to section 19(b)(2) of the Act,5 as an ‘‘ETF of ETFs’’ by seeking to track Regulation M for excepted securities
designates April 26, 2016, as the date by the performance of its underlying Index during each of the previous two months
which the Commission shall either through, under normal circumstances,1 of trading prior to formation of the
approve or disapprove, or institute investing at least 90% of its total assets 2 Fund;
proceedings to determine whether to in up to five ETFs that comprise the • All of the components of the Index
disapprove, the proposed rule change Index. Except for the fact that the Fund will have publicly available last sale
(File No. SR–BATS–2016–02). will operate as an ETF of ETFs, the trade information;
For the Commission, by the Division of Fund will operate in a manner identical • The intra-day proxy value of the
Trading and Markets, pursuant to delegated to the ETFs that are included in the Fund per share and the value of the
authority.6 Index. Index will be publicly disseminated by
Robert W. Errett, The Requestors represent, among a major market data vendor throughout
Deputy Secretary. other things, the following: the trading day;
[FR Doc. 2016–05754 Filed 3–14–16; 8:45 am] • Shares of the Fund will be issued • On each business day before the
BILLING CODE 8011–01–P by the Trust, an open-end management opening of business on the Exchange,
investment company that is registered the Fund’s custodian, through the
with the Commission; National Securities Clearing
SECURITIES AND EXCHANGE • The Trust will continuously redeem Corporation, will make available the list
COMMISSION Creation Units at net asset value of the names and the numbers of
(‘‘NAV’’), and the secondary market securities and other assets of the Fund’s
[Release No. 34–77328; File No. TP 16–4] portfolio that will be applicable that day
price of the Shares should not vary
substantially from the NAV of such to creation and redemption requests;
Order Granting Limited Exemptions • The Exchange or other market
From Exchange Act Rule 10b–17 and Shares;
• Shares of the Fund will be listed information provider will disseminate
Rules 101 and 102 of Regulation M to (i) continuously every 15 seconds
PowerShares DWA Tactical Multi-Asset and traded on the NASDAQ Stock
Market LLC or another exchange in throughout the trading day, through the
Income Portfolio Pursuant to facilities of the consolidated tape, the
Exchange Act Rule 10b–17(b)(2) accordance with exchange listing
standards that are, or will become, market value of a Share, and (ii) every
and Rules 101(d) and 102(e) of 15 seconds throughout the trading day,
Regulation M effective pursuant to Section 19(b) of the
Exchange Act (the ‘‘Exchange’’); 3 a calculation of the intra-day indicative
March 9, 2016. • All ETFs in which the Fund is value of a Share;
By letter dated March 9, 2016 (the invested will meet all conditions set • The arbitrage mechanism will be
‘‘Letter’’), as supplemented by facilitated by the transparency of the
conversations with the staff of the 1 The term ‘‘under normal circumstances’’
Fund’s portfolio and the availability of
Division of Trading and Markets, includes, but is not limited to, the absence of the intra-day indicative value, the
counsel for PowerShares Exchange- adverse market, economic, political, or other liquidity of securities held by the Fund,
Traded Fund Trust II (the ‘‘Trust’’), on conditions, including extreme volatility or trading and the ability to acquire such
halts in the securities markets or the financial securities, as well as the arbitrageurs’
behalf of the Trust, PowerShares DWA markets generally; operational issues causing
Tactical Multi-Asset Income Portfolio dissemination of inaccurate market information; or ability to create workable hedges;
(the ‘‘Fund’’), any national securities force majeure-type events, such as systems failure,
natural or man-made disaster, act of God, armed 4 Exchange Act Rel. No. 67215 (June 19, 2012); 77
exchange on or through which shares conflict, act of terrorism, riot or labor disruption, or FR 37941 (June 25, 2012); Letter from Catherine
issued by the Fund (‘‘Shares’’) may any similar intervening circumstance. McGuire, Esq., Chief Counsel, Division of Market
subsequently trade, Invesco 2 The remaining ten percent of the Fund’s total
Regulation, to the Securities Industry Association
Distributors, Inc. (the ‘‘Distributor’’), assets may be invested in securities (including other Derivative Products Committee (November 21,
and persons or entities engaging in underlying funds) not included in the underlying 2005); Letter from Racquel L. Russell, Branch Chief,
Index and in money market instruments or funds Division of Market Regulation, to George T. Simon,
transactions in Shares (collectively, the that invest exclusively in money market Esq., Foley & Lardner LLP (June 21, 2006); Letter
‘‘Requestors’’), requested exemptions, or instruments, subject to applicable limitations under from James A. Brigagliano, Acting Associate
interpretive or no-action relief, from the 1940 Act. Regardless of the representation that Director, Division of Market Regulation, to Stuart
the Fund generally will invest at least 90% of its
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Rule 10b–17 of the Securities Exchange M. Strauss, Esq., Clifford Chance US LLP (October
total assets in securities that comprise the 24, 2006); Letter from James A. Brigagliano,
Act of 1934, as amended (‘‘Exchange underlying Index, the Fund seeks to have a tracking Associate Director, Division of Market Regulation,
Act’’), and Rules 101 and 102 of error of less than five percent in any given month to Benjamin Haskin, Esq., Willkie Farr & Gallagher
Regulation M, in connection with over a one-year period. LLP (April 9, 2007); Letter from Josephine Tao,
3 Further, the Letter states that should the Shares Assistant Director, Division of Trading and Markets,
secondary market transactions in Shares
also trade on a market pursuant to unlisted trading to Domenick Pugliese, Esq., Paul, Hastings, Janofsky
and the creation or redemption of privileges, such trading will be conducted pursuant & Walker LLP (June 27, 2007); see also Staff Legal
to self-regulatory organization rules that have Bulletin No. 9, ‘‘Frequently Asked Questions About
5 Id.
become effective pursuant to Section 19(b) of the Regulation M’’ (April 12, 2002) (regarding actively-
6 17 CFR 200.30–3(a)(31). Exchange Act. managed ETFs).
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Document Created: 2016-03-15 04:07:06
Document Modified: 2016-03-15 04:07:06
| 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 13854 |
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