81 FR 33570 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 4 Thereto, Amending NYSE Arca Equities Rule 8.600 To Adopt Generic Listing Standards for Managed Fund Shares

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 102 (May 26, 2016)

Page Range		33570-33571
FR Document		2016-12383

Federal Register, Volume 81 Issue 102 (Thursday, May 26, 2016)

[Federal Register Volume 81, Number 102 (Thursday, May 26, 2016)]
[Notices]
[Pages 33570-33571]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-12383]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77872; File No. SR-NYSEArca-2015-110]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of
Designation of a Longer Period for Commission Action on Proceedings To
Determine Whether To Approve or Disapprove a Proposed Rule Change, as
Modified by Amendment No. 4 Thereto, Amending NYSE Arca Equities Rule
8.600 To Adopt Generic Listing Standards for Managed Fund Shares

May 20, 2016.
On November 6, 2015, NYSE Arca, 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 amend NYSE Arca
Equities Rule 8.600 and to adopt generic listing standards for Managed
Fund Shares.\3\ The proposed rule change was published for comment in
the Federal Register on November 27, 2015.\4\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See NYSE Arca Equities Rule 8.600(c)(1) (defining Managed
Fund Shares).
\4\ See Securities Exchange Act Release No. 76486 (Nov. 20,
2015), 80 FR 74169 (``Notice'').
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On November 23, 2015, the Exchange filed Amendment No. 1 to the
proposed rule change, which amended and replaced the original proposal
in its entirety. On January 4, 2016, pursuant to Section 19(b)(2) of
the Act,\5\ the Commission designated a longer period within which to
approve the proposed rule change, disapprove the proposed rule change,
or institute proceedings to determine whether to disapprove the
proposed rule change.\6\ On January 21, 2016, the Exchange withdrew
Amendment No. 1 and filed Amendment No. 2 to the proposed rule
change.\7\ The proposed rule change, as modified by Amendment No. 2
thereto, was published for comment in the Federal Register on February
1, 2016.\8\ On February 11, 2016, the Exchange filed Amendment No. 3 to
the proposed rule change.\9\ On February 16, 2016, the Exchange filed
Amendment No. 4 to the proposed rule change.\10\
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\5\ 15 U.S.C. 78s(b)(2).
\6\ See Securities Exchange Act Release No. 76819, 81 FR 987
(Jan. 8, 2016). The Commission designated February 25, 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. See id.
\7\ In Amendment No. 2 to the proposed rule change, the Exchange
added provisions to the proposed generic listing criteria relating
to non-U.S. Component Stocks, convertible securities, and listed
swaps, among other changes. Amendment No. 2, which amended and
replaced the original proposal in its entirety, is available on the
Commission's Web site at: http://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110-3.pdf.
\8\ See Securities Exchange Act Release No. 76974 (Jan. 26,
2016), 81 FR 5149.
\9\ In Amendment No. 3 to the proposed rule change, the Exchange
(a) revised the provisions relating to convertible securities, (b)
clarified the limitations on non-exchange-traded American Depositary
Receipts, (c) eliminated redundant provisions relating to
limitations on leveraged and inverse-leveraged Derivative Securities
Products, (d) revised the provision relating to limitations on
listed derivatives, (e) clarified that, for purposes of the
limitations relating to listed and over-the-counter derivatives, a
portfolio's investment in listed and over-the-counter derivatives
will be calculated as the total absolute notional value of these
derivatives, and (f) provided additional information regarding the
statutory basis of the proposal. Amendment No. 3, which amended and
replaced the proposed rule change, as modified by Amendment No. 2
thereto, in its entirety, is available on the Commission's Web site
at: http://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110-4.pdf.
\10\ In Amendment No. 4 to the proposed rule change, the
Exchange (a) modified the proposed generic listing rules to require
compliance of the standards applicable to underlying equity
securities, fixed income securities, and over-the-counter
derivatives on an initial and continuing basis; and (b) clarified
that the limitations on listed derivatives would apply to all listed
derivatives, including listed swaps. Amendment No. 4, which amended
and replaced the proposed rule change, as modified by Amendment No.
3 thereto, in its entirety, is available on the Commission's Web
site at: http://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110-5.pdf.

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[[Page 33571]]

On February 22, 2016, the Commission issued notice of filing of
Amendment No. 4 to the proposed rule change and instituted proceedings
under Section 19(b)(2)(B) of the Act \11\ to determine whether to
approve or disapprove the proposed rule change, as modified by
Amendment No. 4 thereto.\12\ In the Order Instituting Proceedings, the
Commission solicited comments to specified matters related to the
proposal.\13\ The Commission has received one comment letter on the
proposal.\14\
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\11\ 15 U.S.C. 78s(b)(2)(B).
\12\ See Securities Exchange Act Release No. 77203, 81 FR 9900
(Feb. 26, 2016) (``Order Instituting Proceedings''). Specifically,
the Commission instituted proceedings to allow for additional
analysis of the proposed rule change's consistency with Section
6(b)(5) of the Act, which requires, among other things, that the
rules of a national securities exchange be ``designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade,'' and ``to protect investors and the
public interest.'' See id., 81 FR at 9908.
\13\ See id., 81 FR at 9908-09.
\14\ See Letter from Rob Ivanoff to the Commission dated Nov.
22, 2015 (commenting that the format of the Exchange's proposed rule
change was unclear and difficult to read, and suggesting a new
format that would be easier to understand). All comments on the
proposed rule change are available on the Commission's Web site at:
http://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110-1.htm.
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Section 19(b)(2) of the Act \15\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of the filing of the proposed rule
change. The Commission may, however, extend the period for issuing an
order approving or disapproving the proposed rule change by not more
than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on November 27, 2015.\16\ The 180th day after
publication of the notice of the filing of the proposed rule change in
the Federal Register is May 25, 2016.
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\15\ 15 U.S.C. 78s(b)(2).
\16\ See supra note 4 and accompanying text.
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The Commission finds that it is appropriate to designate a longer
period within which to issue an order approving or disapproving the
proposed rule change so that it has sufficient time to consider the
proposed rule change, as modified by Amendment No. 4 thereto.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\17\ designates July 22, 2016, as the date by which the Commission
shall either approve or disapprove the proposed rule change, as
modified by Amendment No. 4 thereto (File No. SR-NYSEArca-2015-110).
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\17\ 15 U.S.C. 78s(b)(2).
\18\ 17 CFR 200.30-3(a)(57).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-12383 Filed 5-25-16; 8:45 am]
BILLING CODE 8011-01-P

33570 Federal Register / Vol. 81, No. 102 / Thursday, May 26, 2016 / Notices

substantially similar to the rules of Phlx, Internet Web site (http://www.sec.gov/ and to adopt generic listing standards
in particular, the sanctions for rules/sro.shtml). Copies of the for Managed Fund Shares.3 The
violations of the spread parameters for submission, all subsequent proposed rule change was published for
Market Maker quotations. Waiver of the amendments, all written statements comment in the Federal Register on
30-day operative delay will allow BOX with respect to the proposed rule November 27, 2015.4
to aggregate violations of its spread change that are filed with the On November 23, 2015, the Exchange
parameter rule under its MRVP without Commission, and all written filed Amendment No. 1 to the proposed
delay. Furthermore, the Commission communications relating to the rule change, which amended and
notes that the Exchange’s MRVP and proposed rule change between the replaced the original proposal in its
quote spread parameter rules are already Commission and any person, other than entirety. On January 4, 2016, pursuant
in place; waiver will clarify the those that may be withheld from the to Section 19(b)(2) of the Act,5 the
Exchange’s expectations of its public in accordance with the Commission designated a longer period
Participants. For these reasons, the provisions of 5 U.S.C. 552, will be within which to approve the proposed
Commission believes that waiver of the available for Web site viewing and rule change, disapprove the proposed
30-day operative delay is consistent printing in the Commission’s Public rule change, or institute proceedings to
with the protection of investors and the Reference Room, 100 F Street NE., determine whether to disapprove the
public interest. Therefore, the Washington, DC 20549 on official proposed rule change.6 On January 21,
Commission designates the proposed business days between the hours of 2016, the Exchange withdrew
rule change to be operative upon 10:00 a.m. and 3:00 p.m. Copies of such Amendment No. 1 and filed
filing.18 filing also will be available for Amendment No. 2 to the proposed rule
At any time within 60 days of the inspection and copying at the principal change.7 The proposed rule change, as
filing of the proposed rule change, the offices of the Exchange. All comments modified by Amendment No. 2 thereto,
Commission summarily may received will be posted without change; was published for comment in the
temporarily suspend such rule change if the Commission does not edit personal Federal Register on February 1, 2016.8
it appears to the Commission that such identifying information from On February 11, 2016, the Exchange
action is: (i) Necessary or appropriate in submissions. You should submit only filed Amendment No. 3 to the proposed
the public interest; (ii) for the protection information that you wish to make rule change.9 On February 16, 2016, the
of investors; or (iii) otherwise in available publicly. All submissions Exchange filed Amendment No. 4 to the
furtherance of the purposes of the Act. should refer to File Number SR–BOX– proposed rule change.10
If the Commission takes such action, the 2016–22, and should be submitted on or
Commission shall institute proceedings before June 16, 2016. 3 See NYSE Arca Equities Rule 8.600(c)(1)

to determine whether the proposed rule For the Commission, by the Division of
(defining Managed Fund Shares).
4 See Securities Exchange Act Release No. 76486
should be approved or disapproved. Trading and Markets, pursuant to delegated (Nov. 20, 2015), 80 FR 74169 (‘‘Notice’’).
IV. Solicitation of Comments authority.19 5 15 U.S.C. 78s(b)(2).

Robert W. Errett, 6 See Securities Exchange Act Release No. 76819,
Interested persons are invited to 81 FR 987 (Jan. 8, 2016). The Commission
Deputy Secretary.
submit written data, views, and designated February 25, 2016 as the date by which
[FR Doc. 2016–12385 Filed 5–25–16; 8:45 am]
arguments concerning the foregoing, the Commission shall either approve or disapprove,
BILLING CODE 8011–01–P or institute proceedings to determine whether to
including whether the proposed rule
disapprove, the proposed rule change. See id.
change is consistent with the Act. 7 In Amendment No. 2 to the proposed rule
Comments may be submitted by any of change, the Exchange added provisions to the
SECURITIES AND EXCHANGE
the following methods: proposed generic listing criteria relating to non-U.S.
COMMISSION Component Stocks, convertible securities, and
Electronic Comments [Release No. 34–77872; File No. SR– listed swaps, among other changes. Amendment
• Use the Commission’s Internet NYSEArca–2015–110] No. 2, which amended and replaced the original
proposal in its entirety, is available on the
comment form (http://www.sec.gov/ Commission’s Web site at: http://www.sec.gov/
rules/sro.shtml); or Self-Regulatory Organizations; NYSE comments/sr-nysearca-2015-110/nysearca2015110-
• Send an email to rule-comments@ Arca, Inc.; Notice of Designation of a 3.pdf.
sec.gov. Please include File Number SR– Longer Period for Commission Action 8 See Securities Exchange Act Release No. 76974

BOX–2016–22 on the subject line. on Proceedings To Determine Whether (Jan. 26, 2016), 81 FR 5149.
9 In Amendment No. 3 to the proposed rule
To Approve or Disapprove a Proposed
Paper Comments Rule Change, as Modified by change, the Exchange (a) revised the provisions
relating to convertible securities, (b) clarified the
• Send paper comments in triplicate Amendment No. 4 Thereto, Amending limitations on non-exchange-traded American
to Secretary, Securities and Exchange NYSE Arca Equities Rule 8.600 To Depositary Receipts, (c) eliminated redundant
Commission, 100 F Street, NE., Adopt Generic Listing Standards for provisions relating to limitations on leveraged and
inverse-leveraged Derivative Securities Products,
Washington, DC 20549–1090. Managed Fund Shares (d) revised the provision relating to limitations on
All submissions should refer to File May 20, 2016. listed derivatives, (e) clarified that, for purposes of
Number SR–BOX–2016–22. This file the limitations relating to listed and over-the-
On November 6, 2015, NYSE Arca, counter derivatives, a portfolio’s investment in
number should be included on the Inc. (‘‘Exchange’’) filed with the listed and over-the-counter derivatives will be
subject line if email is used. To help the Securities and Exchange Commission calculated as the total absolute notional value of
Commission process and review your (‘‘Commission’’), pursuant to Section these derivatives, and (f) provided additional
comments more efficiently, please use information regarding the statutory basis of the
sradovich on DSK3TPTVN1PROD with NOTICES

19(b)(1) of the Securities Exchange Act proposal. Amendment No. 3, which amended and
only one method. The Commission will of 1934 (‘‘Act’’) 1 and Rule 19b–4 replaced the proposed rule change, as modified by
post all comments on the Commission’s thereunder,2 a proposed rule change to Amendment No. 2 thereto, in its entirety, is
available on the Commission’s Web site at: http://
18 For purposes only of waiving the 30-day
amend NYSE Arca Equities Rule 8.600 www.sec.gov/comments/sr-nysearca-2015-110/
operative delay, the Commission also has nysearca2015110-4.pdf.
19 17 CFR 200.30–3(a)(12).
considered the proposed rule’s impact on 10 In Amendment No. 4 to the proposed rule
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See change, the Exchange (a) modified the proposed
15 U.S.C. 78c(f). 2 17 CFR 240.19b–4. generic listing rules to require compliance of the

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Federal Register / Vol. 81, No. 102 / Thursday, May 26, 2016 / Notices 33571

On February 22, 2016, the approving or disapproving the proposed Exchange Commission, 100 F Street,
Commission issued notice of filing of rule change so that it has sufficient time NE., Washington, DC 20549–1090.
Amendment No. 4 to the proposed rule to consider the proposed rule change, as All submissions should refer to File No.
change and instituted proceedings modified by Amendment No. 4 thereto. 265–28. This file number should be
under Section 19(b)(2)(B) of the Act 11 to Accordingly, the Commission, included on the subject line if email is
determine whether to approve or pursuant to Section 19(b)(2) of the used. To help us process and review
disapprove the proposed rule change, as Act,17 designates July 22, 2016, as the your statement more efficiently, please
modified by Amendment No. 4 date by which the Commission shall use only one method.
thereto.12 In the Order Instituting either approve or disapprove the Statements also will be available for
Proceedings, the Commission solicited proposed rule change, as modified by Web site viewing and printing in the
comments to specified matters related to Amendment No. 4 thereto (File No. SR– Commission’s Public Reference Room,
the proposal.13 The Commission has NYSEArca–2015–110). 100 F Street NE., Room 1580,
received one comment letter on the For the Commission, by the Division of Washington, DC 20549, on official
proposal.14 Trading and Markets, pursuant to delegated business days between the hours of
Section 19(b)(2) of the Act 15 provides authority.18 10:00 a.m. and 3:00 p.m. All statements
that, after initiating disapproval Robert W. Errett, received will be posted without change;
proceedings, the Commission shall issue Deputy Secretary. we do not edit personal identifying
an order approving or disapproving the information from submissions. You
[FR Doc. 2016–12383 Filed 5–25–16; 8:45 am]
proposed rule change not later than 180 should submit only information that
BILLING CODE 8011–01–P
days after the date of publication of you wish to make available publicly.
notice of the filing of the proposed rule FOR FURTHER INFORMATION CONTACT:
change. The Commission may, however, SECURITIES AND EXCHANGE Marc Oorloff Sharma, Senior Special
extend the period for issuing an order COMMISSION Counsel, Office of the Investor
approving or disapproving the proposed Advocate, at (202) 551–3302, Securities
rule change by not more than 60 days [Release Nos. 33–10079; 34–77857; File No. and Exchange Commission, 100 F Street
if the Commission determines that a 265–28]
NE., Washington, DC 20549.
longer period is appropriate and SUPPLEMENTARY INFORMATION: The
publishes the reasons for such Investor Advisory Committee Meeting
meeting will be open to the public via
determination. The proposed rule AGENCY: Securities and Exchange telephone. Persons needing special
change was published for notice and Commission. accommodations to take part because of
comment in the Federal Register on ACTION: Notice of telephonic meeting of a disability should notify the contact
November 27, 2015.16 The 180th day Securities and Exchange Commission person listed in FOR FURTHER
after publication of the notice of the Dodd-Frank Investor Advisory INFORMATION CONTACT.
filing of the proposed rule change in the Committee. The agenda for the meeting includes:
Federal Register is May 25, 2016. A discussion of Market Structure
The Commission finds that it is SUMMARY: The Securities and Exchange subcommittee recommendations to
appropriate to designate a longer period Commission Investor Advisory enhance information for bond market
within which to issue an order Committee, established pursuant to investors; and a discussion regarding
Section 911 of the Dodd-Frank Wall the Commission’s concept release on
standards applicable to underlying equity Street Reform and Consumer Protection business and financial disclosure
securities, fixed income securities, and over-the- Act of 2010, is providing notice that it
counter derivatives on an initial and continuing required by Regulation S–K (which may
basis; and (b) clarified that the limitations on listed
will hold a telephonic meeting on include a recommendation of the
derivatives would apply to all listed derivatives, Tuesday, June 7, 2016. The meeting will Investor as Owner subcommittee).
including listed swaps. Amendment No. 4, which begin at 11:00 a.m. (ET) and conclude at
amended and replaced the proposed rule change, as 12:30 p.m. and will be open to the Dated: May 19, 2016.
modified by Amendment No. 3 thereto, in its Brent J. Fields,
entirety, is available on the Commission’s Web site
public via telephone at 1–888–240–
at: http://www.sec.gov/comments/sr-nysearca-2015- 3210, participant code 7250901. The Secretary.
110/nysearca2015110-5.pdf. public is invited to submit written [FR Doc. 2016–12231 Filed 5–25–16; 8:45 am]
11 15 U.S.C. 78s(b)(2)(B).
statements to the Committee. BILLING CODE 8011–01–P
12 See Securities Exchange Act Release No. 77203,
DATES: Written statements should be
81 FR 9900 (Feb. 26, 2016) (‘‘Order Instituting
Proceedings’’). Specifically, the Commission received on or before June 7, 2016.
instituted proceedings to allow for additional ADDRESSES: Written statements may be SECURITIES AND EXCHANGE
analysis of the proposed rule change’s consistency submitted by any of the following COMMISSION
with Section 6(b)(5) of the Act, which requires,
among other things, that the rules of a national
methods: [Release No. 34–77879; File No. SR–
securities exchange be ‘‘designed to prevent Nasdaq–2016–013]
Electronic Statements
fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade,’’ and D Use the Commission’s Internet Self-Regulatory Organizations; The
‘‘to protect investors and the public interest.’’ See submission form (http://www.sec.gov/ Nasdaq Stock Market LLC; Notice of
id., 81 FR at 9908.
13 See id., 81 FR at 9908–09.
rules/other.shtml); or Designation of a Longer Period for
14 See Letter from Rob Ivanoff to the Commission
D Send an email message to rules- Commission Action on Proposed Rule
dated Nov. 22, 2015 (commenting that the format comments@sec.gov. Please include File Change To Require Listed Companies
sradovich on DSK3TPTVN1PROD with NOTICES

of the Exchange’s proposed rule change was unclear No. 265–28 on the subject line; or to Publicly Disclose Compensation or
and difficult to read, and suggesting a new format Other Payments by Third Parties to
that would be easier to understand). All comments Paper Statements
on the proposed rule change are available on the
Board of Director’s Members or
Commission’s Web site at: http://www.sec.gov/
D Send paper statements to Brent J. Nominees
comments/sr-nysearca-2015-110/nysearca2015110- Fields, Secretary, Securities and
1.htm. May 20, 2016.
15 15 U.S.C. 78s(b)(2). 17 15 U.S.C. 78s(b)(2). On March 15, 2016, The Nasdaq Stock
16 See supra note 4 and accompanying text. 18 17 CFR 200.30–3(a)(57). Market LLC (‘‘Exchange’’) filed with the

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Document Created: 2016-05-26 01:13:56
Document Modified: 2016-05-26 01:13:56

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 33570