81 FR 13855 - Order Granting Limited Exemptions From Exchange Act Rule 10b-17 and Rules 101 and 102 of Regulation M to PowerShares DWA Tactical Multi-Asset Income Portfolio Pursuant to Exchange Act Rule 10b-17(b)(2) and Rules 101(d) and 102(e) of Regulation M
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 50 (March 15, 2016)
Federal Register Volume 81, Issue 50 (March 15, 2016)
| Page Range | 13855-13857 | |
| FR Document | 2016-05749 |
[Federal Register Volume 81, Number 50 (Tuesday, March 15, 2016)] [Notices] [Pages 13855-13857] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-05749] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77328; File No. TP 16-4] Order Granting Limited Exemptions From Exchange Act Rule 10b-17 and Rules 101 and 102 of Regulation M to PowerShares DWA Tactical Multi-Asset Income Portfolio Pursuant to Exchange Act Rule 10b-17(b)(2) and Rules 101(d) and 102(e) of Regulation M March 9, 2016. By letter dated March 9, 2016 (the ``Letter''), as supplemented by conversations with the staff of the Division of Trading and Markets, counsel for PowerShares Exchange-Traded Fund Trust II (the ``Trust''), on behalf of the Trust, PowerShares DWA Tactical Multi-Asset Income Portfolio (the ``Fund''), any national securities exchange on or through which shares issued by the Fund (``Shares'') may subsequently trade, Invesco Distributors, Inc. (the ``Distributor''), and persons or entities engaging in transactions in Shares (collectively, the ``Requestors''), requested exemptions, or interpretive or no-action relief, from Rule 10b-17 of the Securities Exchange Act of 1934, as amended (``Exchange Act''), and Rules 101 and 102 of Regulation M, in connection with secondary market transactions in Shares and the creation or redemption of aggregations of Shares of at least 50,000 shares (``Creation Units''). The Trust is registered with the Securities and Exchange Commission (``Commission'') under the Investment Company Act of 1940, as amended (``1940 Act''), as an open-end management investment company. The Fund seeks to track the performance of the underlying index, the Dorsey Wright[supreg] Multi-Asset Income Index (the ``Index''). The Fund intends to operate as an ``ETF of ETFs'' by seeking to track the performance of its underlying Index through, under normal circumstances,\1\ investing at least 90% of its total assets \2\ in up to five ETFs that comprise the Index. Except for the fact that the Fund will operate as an ETF of ETFs, the Fund will operate in a manner identical to the ETFs that are included in the Index. --------------------------------------------------------------------------- \1\ The term ``under normal circumstances'' includes, but is not limited to, the absence of adverse market, economic, political, or other conditions, including extreme volatility or trading halts in the securities markets or the financial markets generally; operational issues causing dissemination of inaccurate market information; or force majeure-type events, such as systems failure, natural or man-made disaster, act of God, armed conflict, act of terrorism, riot or labor disruption, or any similar intervening circumstance. \2\ The remaining ten percent of the Fund's total assets may be invested in securities (including other underlying funds) not included in the underlying Index and in money market instruments or funds that invest exclusively in money market instruments, subject to applicable limitations under the 1940 Act. Regardless of the representation that the Fund generally will invest at least 90% of its total assets in securities that comprise the underlying Index, the Fund seeks to have a tracking error of less than five percent in any given month over a one-year period. --------------------------------------------------------------------------- The Requestors represent, among other things, the following:Shares of the Fund will be issued by the Trust, an open- end management investment company that is registered with the Commission; The Trust will continuously redeem Creation Units at net asset value (``NAV''), and the secondary market price of the Shares should not vary substantially from the NAV of such Shares; Shares of the Fund will be listed and traded on the NASDAQ Stock Market LLC or another exchange in accordance with exchange listing standards that are, or will become, effective pursuant to Section 19(b) of the Exchange Act (the ``Exchange''); \3\ --------------------------------------------------------------------------- \3\ Further, the Letter states that should the Shares also trade on a market pursuant to unlisted trading privileges, such trading will be conducted pursuant to self-regulatory organization rules that have become effective pursuant to Section 19(b) of the Exchange Act. --------------------------------------------------------------------------- All ETFs in which the Fund is invested will meet all conditions set forth in a relevant class relief letter,\4\ will have received individual relief from the Commission, or will be able to rely upon individual relief even though they are not named parties (for example, a no-action letter); --------------------------------------------------------------------------- \4\ Exchange Act Rel. No. 67215 (June 19, 2012); 77 FR 37941 (June 25, 2012); Letter from Catherine McGuire, Esq., Chief Counsel, Division of Market Regulation, to the Securities Industry Association Derivative Products Committee (November 21, 2005); Letter from Racquel L. Russell, Branch Chief, Division of Market Regulation, to George T. Simon, Esq., Foley & Lardner LLP (June 21, 2006); Letter from James A. Brigagliano, Acting Associate Director, Division of Market Regulation, to Stuart M. Strauss, Esq., Clifford Chance US LLP (October 24, 2006); Letter from James A. Brigagliano, Associate Director, Division of Market Regulation, to Benjamin Haskin, Esq., Willkie Farr & Gallagher LLP (April 9, 2007); Letter from Josephine Tao, Assistant Director, Division of Trading and Markets, to Domenick Pugliese, Esq., Paul, Hastings, Janofsky & Walker LLP (June 27, 2007); see also Staff Legal Bulletin No. 9, ``Frequently Asked Questions About Regulation M'' (April 12, 2002) (regarding actively-managed ETFs). --------------------------------------------------------------------------- At least 70% of the Fund is comprised of component securities that will meet the minimum public float and minimum average daily trading volume thresholds under the ``actively-traded securities'' definition found in Regulation M for excepted securities during each of the previous two months of trading prior to formation of the Fund; All of the components of the Index will have publicly available last sale trade information; The intra-day proxy value of the Fund per share and the value of the Index will be publicly disseminated by a major market data vendor throughout the trading day; On each business day before the opening of business on the Exchange, the Fund's custodian, through the National Securities Clearing Corporation, will make available the list of the names and the numbers of securities and other assets of the Fund's portfolio that will be applicable that day to creation and redemption requests; The Exchange or other market information provider will disseminate (i) continuously every 15 seconds throughout the trading day, through the facilities of the consolidated tape, the market value of a Share, and (ii) every 15 seconds throughout the trading day, a calculation of the intra-day indicative value of a Share; The arbitrage mechanism will be facilitated by the transparency of the Fund's portfolio and the availability of the intra- day indicative value, the liquidity of securities held by the Fund, and the ability to acquire such securities, as well as the arbitrageurs' ability to create workable hedges; [[Page 13856]] The Fund will invest solely in liquid securities; The Fund will invest in securities that will facilitate an effective and efficient arbitrage mechanism and the ability to create workable hedges; The Trust believes that arbitrageurs are expected to take advantage of price variations between the Fund's market price and its NAV; and A close alignment between the market price of Shares and the Fund's NAV is expected. Regulation M While redeemable securities issued by an open-end management investment company are excepted from the provisions of Rules 101 and 102 of Regulation M, the Requestors may not rely upon those exceptions for the Shares.\5\ However, we find that it is appropriate in the public interest and is consistent with the protection of investors to grant a conditional exemption from Rules 101 and 102 to persons who may be deemed to be participating in a distribution of Shares of the Fund as described in more detail below. --------------------------------------------------------------------------- \5\ While ETFs operate under exemptions from the definitions of ``open-end company'' under Section 5(a)(1) of the 1940 Act and ``redeemable security'' under Section 2(a)(32) of the 1940 Act, the Fund and its securities do not meet those definitions. --------------------------------------------------------------------------- Rule 101 of Regulation M Generally, Rule 101 of Regulation M is an anti-manipulation rule that, subject to certain exceptions, prohibits any ``distribution participant'' and its ``affiliated purchasers'' from bidding for, purchasing, or attempting to induce any person to bid for or purchase any security that is the subject of a distribution until after the applicable restricted period, except as specifically permitted in the Rule. Rule 100 of Regulation M defines ``distribution'' to mean any offering of securities that is distinguished from ordinary trading transactions by the magnitude of the offering and the presence of special selling efforts and selling methods. The provisions of Rule 101 of Regulation M apply to underwriters, prospective underwriters, brokers, dealers, or other persons who have agreed to participate or are participating in a distribution of securities. The Shares are in a continuous distribution, and, as such, the restricted period in which distribution participants and their affiliated purchasers are prohibited from bidding for, purchasing, or attempting to induce others to bid for or purchase extends indefinitely. Based on the representations and the facts presented in the Letter, particularly that the Trust is a registered open-end management investment company that will continuously redeem at the NAV Creation Unit size aggregations of the Shares of the Fund and that a close alignment between the market price of Shares and the Fund's NAV is expected, the Commission finds that it is appropriate in the public interest, and consistent with the protection of investors to grant the Trust an exemption under paragraph (d) of Rule 101 of Regulation M with respect to the Fund, thus permitting persons participating in a distribution of Shares of the Fund to bid for or purchase such Shares during their participation in such distribution.\6\ --------------------------------------------------------------------------- \6\ Additionally, we confirm the interpretation that a redemption of Creation Unit size aggregations of Shares of the Fund and the receipt of securities in exchange by a participant in a distribution of Shares of the Fund would not constitute an ``attempt to induce any person to bid for or purchase, a covered security during the applicable restricted period'' within the meaning of Rule 101 of Regulation M and therefore would not violate that rule. --------------------------------------------------------------------------- Rule 102 of Regulation M Rule 102 of Regulation M prohibits issuers, selling security holders, and any affiliated purchaser of such person from bidding for, purchasing, or attempting to induce any person to bid for or purchase a covered security during the applicable restricted period in connection with a distribution of securities effected by or on behalf of an issuer or selling security holder. Based on the representations and the facts presented in the Letter, particularly that the Trust is a registered open-end management investment company that will redeem at the NAV Creation Unit size aggregations of Shares of the Fund and that a close alignment between the market price of Shares and the Fund's NAV is expected, the Commission finds that it is appropriate in the public interest, and consistent with the protection of investors to grant the Trust an exemption under paragraph (e) of Rule 102 of Regulation M with respect to the Fund, thus permitting the Fund to redeem Shares of the Fund during the continuous offering of such Shares. Rule 10b-17 Rule 10b-17, with certain exceptions, requires an issuer of a class of publicly traded securities to give notice of certain specified actions (for example, a dividend distribution) relating to such class of securities in accordance with Rule 10b-17(b). Based on the representations and the facts presented in the Letter, and subject to the conditions below, the Commission finds that it is appropriate in the public interest, and consistent with the protection of investors, to grant the Trust a conditional exemption from Rule 10b-17 because market participants will receive timely notification of the existence and timing of a pending distribution, and thus the concerns that the Commission raised in adopting Rule 10b-17 will not be implicated.\7\ --------------------------------------------------------------------------- \7\ We also note that timely compliance with Rule 10b- 17(b)(1)(v)(a) and (b) would be impractical in light of the Fund's nature because it is not possible for the Fund to accurately project ten days in advance what dividend, if any, would be paid on a particular record date. --------------------------------------------------------------------------- Conclusion It is hereby ordered, pursuant to Rule 101(d) of Regulation M, that the Trust, based on the representations and facts presented in the Letter, is exempt from the requirements of Rule 101 with respect to the Fund, thus permitting persons who may be deemed to be participating in a distribution of Shares of the Fund to bid for or purchase such Shares during their participation in such distribution. It is further ordered, pursuant to Rule 102(e) of Regulation M, that the Trust, based on the representations and the facts presented in the Letter, is exempt from the requirements of Rule 102 with respect to the Fund, thus permitting the Fund to redeem Shares of the Fund during the continuous offering of such Shares. It is further ordered, pursuant to Rule 10b-17(b)(2), that the Trust, based on the representations and the facts presented in the Letter and subject to the conditions below, is exempt from the requirements of Rule 10b-17 with respect to the transactions in the Shares of the Fund. This exemptive relief is subject to the following conditions: The Trust will comply with Rule 10b-17, except for Rule 10b-17(b)(1)(v)(a) and (b); and The Trust will provide the information required by Rule 10b-17(b)(1)(v)(a) and (b) to the Exchange as soon as practicable before trading begins on the ex-dividend date, but in no event later than the time when the Exchange last accepts information relating to distributions on the day before the ex-dividend date. This exemptive relief is subject to modification or revocation at any time the Commission determines that such action is necessary or appropriate in furtherance of the purposes of the Exchange Act. This exemption is based on the facts presented and the representations made in the Letter. Any different facts or representations may [[Page 13857]] require a different response. Persons relying upon this exemptive relief shall discontinue transactions involving the Shares of the Fund, pending presentation of the facts for the Commission's consideration, in the event that any material change occurs with respect to any of the facts or representations made by the Requestors, and as is the case with all preceding letters, particularly with respect to the close alignment between the market price of Shares and the Fund's NAV. In addition, persons relying on this exemption are directed to the anti- fraud and anti-manipulation provisions of the Exchange Act, particularly Sections 9(a), 10(b), and Rule 10b-5 thereunder. Responsibility for compliance with these and any other applicable provisions of the federal securities laws must rest with the persons relying on this exemption. This Order should not be considered a view with respect to any other question that the proposed transactions may raise, including, but not limited to, the adequacy of the disclosure concerning, and the applicability of other federal or state laws to, the proposed transactions. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(6) and (9). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-05749 Filed 3-14-16; 8:45 am] BILLING CODE 8011-01-P
![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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![Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Notices 13857
require a different response. Persons listed for the Closed Meeting in closed rules.htm, at the principal office of the
relying upon this exemptive relief shall session. Exchange, and at the Commission’s
discontinue transactions involving the The subject matter of the Closed Public Reference Room.
Shares of the Fund, pending Meeting will be:
II. Self-Regulatory Organization’s
presentation of the facts for the Institution and settlement of
Statement of the Purpose of, and
Commission’s consideration, in the injunctive actions;
Statutory Basis for, the Proposed Rule
event that any material change occurs Institution and settlement of
Change
with respect to any of the facts or administrative proceedings;
representations made by the Requestors, Adjudicatory matters; In its filing with the Commission, the
and as is the case with all preceding Opinion; and self-regulatory organization included
letters, particularly with respect to the Other matters relating to enforcement statements concerning the purpose of,
close alignment between the market proceedings. and basis for, the proposed rule change
price of Shares and the Fund’s NAV. In At times, changes in Commission and discussed any comments it received
addition, persons relying on this priorities require alterations in the on the proposed rule change. The text
exemption are directed to the anti-fraud scheduling of meeting items. of those statements may be examined at
and anti-manipulation provisions of the For further information and to the places specified in Item IV below.
Exchange Act, particularly Sections 9(a), ascertain what, if any, matters have been The Exchange has prepared summaries,
10(b), and Rule 10b–5 thereunder. added, deleted or postponed, please set forth in sections A, B and C below,
Responsibility for compliance with contact the Office of the Secretary at of the most significant parts of such
these and any other applicable (202) 551–5400. statements.
provisions of the federal securities laws Dated: March 10, 2016.
must rest with the persons relying on A. Self-Regulatory Organization’s
Lynn M. Powalski, Statement of the Purpose of, and the
this exemption. This Order should not
be considered a view with respect to Deputy Secretary. Statutory Basis for, the Proposed Rule
any other question that the proposed [FR Doc. 2016–05879 Filed 3–11–16; 11:15 am] Change
transactions may raise, including, but BILLING CODE 8011–01–P 1. Purpose
not limited to, the adequacy of the
disclosure concerning, and the The Exchange proposes to adopt and
applicability of other federal or state SECURITIES AND EXCHANGE amend rules to permit the Exchange to
laws to, the proposed transactions. COMMISSION initiate CHX SNAP (‘‘SNAP’’) Cycles.3
Currently, a SNAP Cycle may only be
For the Commission, by the Division of [Release No. 34–77331; File No. SR–CHX–
initiated upon receipt of a valid limit
Trading and Markets, pursuant to delegated 2016–01]
order marked Start SNAP (‘‘Start SNAP
authority.8
Self-Regulatory Organizations; order’’) submitted by an order sender.4
Robert W. Errett,
Chicago Stock Exchange, Inc.; Notice The Exchange now proposes to permit
Deputy Secretary. the Exchange to initiate a SNAP Cycle,
of Filing of Proposed Rule Change To
[FR Doc. 2016–05749 Filed 3–14–16; 8:45 am] without receipt of a valid Start SNAP
Adopt and Amend Rules To Permit the
BILLING CODE 8011–01–P
Exchange To Initiate CHX SNAP SM order, if a periodic pro forma SNAP
Cycles review of the contents of the CHX book,
SNAP Auction Only Order (‘‘AOO’’)
SECURITIES AND EXCHANGE March 9, 2016. Queue 5 and Protected Quotations of
COMMISSION Pursuant to Section 19(b)(1) of the external markets, in a given security,
Securities Exchange Act of 1934 show that the projected execution size
Sunshine Act Meeting
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 that would result if a SNAP Cycle were
Notice is hereby given, pursuant to notice is hereby given that on February to be initiated at that moment would
the provisions of the Government in the 26, 2016, the Chicago Stock Exchange, meet certain minimum size and notional
Sunshine Act, Public Law 94–409, that Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with value requirements, as applicable
the Securities and Exchange the Securities and Exchange (‘‘Exchange-initiated SNAP’’). This
Commission will hold a Closed Meeting Commission (‘‘SEC’’ or ‘‘Commission’’) proposal is designed to permit
on Thursday, March 17, 2016 at 2:00 the proposed rule change as described marketable, yet inactive passive
p.m. in Items I and II below, which Items liquidity of a substantial size (i.e.,
Commissioners, Counsel to the have been prepared by the Exchange. inactive SNAP AOOs), to execute via
Commissioners, the Secretary to the The Commission is publishing this SNAP in the absence of a Start SNAP
Commission, and recording secretaries notice to solicit comments on the order. The proposed rule change does
will attend the Closed Meeting. Certain proposed rule change from interested not modify the operation of SNAP
staff members who have an interest in persons. Cycles in any other way.
the matters also may be present.
The General Counsel of the I. Self-Regulatory Organization’s
3 See Securities Exchange Act Release No. 76262
Commission, or her designee, has Statement of the Terms of Substance of (October 26, 2015), 80 FR 67440 (November 2, 2015)
certified that, in her opinion, one or the Proposed Rule Change (SR–CHX–2015–05); see also Securities Exchange
Act Release No. 76087 (October 6, 2015), 80 FR
asabaliauskas on DSK3SPTVN1PROD with NOTICES
more of the exemptions set forth in 5 CHX proposes to adopt and amend 61540 (October 13, 2015); see also Securities
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) rules to permit the Exchange to initiate Exchange Act Release No. 75346 (July 1, 2015), 80
and 17 CFR 200.402(a)(3), (5), (7), 9(ii) CHX SNAP SM cycles. The text of this FR 39172 (July 8, 2015) (SR–CHX–2015–03). The
and (10), permit consideration of the proposed rule change is available on the approved rule changes are not yet operative and
scheduled matter at the Closed Meeting. will become operative upon two weeks’ notice by
Exchange’s Web site at http:// the Exchange to its Participants.
Commissioner Piwowar, as duty www.chx.com/rules/proposed_ 4 See supra id.; see also CHX Article 1, Rule
officer, voted to consider the items 2(h)(1); see also CHX Article 18, Rule 1(b)(1).
1 15 U.S.C. 78s(b)(1). 5 See supra note 3; see also CHX Article 20, Rule
8 17 CFR 200.30–3(a)(6) and (9). 2 17 CFR 240.19b–4. 8(b)(2)(A).
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Document Created: 2016-03-15 04:07:27
Document Modified: 2016-03-15 04:07:27
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 13855 |
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