81 FR 35099 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.7, Opening Process
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 105 (June 1, 2016)
Federal Register Volume 81, Issue 105 (June 1, 2016)
| Page Range | 35099-35101 | |
| FR Document | 2016-12790 |
[Federal Register Volume 81, Number 105 (Wednesday, June 1, 2016)] [Notices] [Pages 35099-35101] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-12790] [[Page 35099]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77905; File No. SR-BatsEDGX-2016-19] Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.7, Opening Process May 25, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on May 13, 2016, Bats EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend Rule 11.7, Opening Process, to await a two-sided quotation from the listing exchange prior to opening a security for trading during Regular Trading Hours.\5\ --------------------------------------------------------------------------- \5\ See Exchange Rule 1.5(y). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Rule 11.7, Opening Process, to await a two-sided quotation from the listing exchange prior to opening a security for trading during Regular Trading Hours. Exchange Rule 11.7 describes the Exchange's current opening process. Subparagraph (a) to Rule 11.7 states that prior to the beginning of the Regular Session,\6\ Users \7\ who wish to participate in the Opening Process may enter orders to buy or sell.\8\ Subparagraph (a)(2) to Rule 11.7 provides that, with certain exceptions,\9\ all orders with a time-in-force instruction of Regular Hours Only may participate in the Opening Process. Subparagraph (b) to Rule 11.7 states that the Exchange will open by performing the Opening Process in which the System will attempt to match buy and sell orders that are executable at the midpoint of the National Best Bid and Offer (``NBBO''). Subparagraph (c) to Exchange Rule 11.7 sets forth the process by which the System sets the opening price of the Opening Process. Currently, the System \10\ sets the price of the Opening Process at the midpoint of the first NBBO after 9:30:00 a.m. Eastern Time. However, for securities listed on either the New York Stock Exchange, Inc. (``NYSE'') or NYSE MKT LLC (``NYSE MKT''), the System currently sets the price of the Opening Process at the midpoint of the first NBBO subsequent to the first reported trade on the listing exchange after 9:30:00 a.m. Eastern Time. The Exchange may alternatively set the price of the Opening Process for securities listed on either the NYSE or NYSE MKT at the midpoint of the then prevailing NBBO when the first two-sided quotation published by the relevant listing exchange after 9:30:00 a.m. Eastern Time, but before 9:45:00 a.m. Eastern Time if no first trade is reported by the listing exchange within one second of publication of the first two-sided quotation by the listing exchange. The System waits to set the price at the midpoint of the first NBBO as set forth above because securities listed on the NYSE or NYSE MKT may not open at precisely 9:30:00 a.m. Eastern Time. --------------------------------------------------------------------------- \6\ See Exchange Rule 1.5(hh). \7\ See Exchange Rule 1.5(ee). \8\ Orders cancelled prior to the Opening Process will not participate in the Opening Process. \9\ The following order types and instruction may not participate in the opening process: (i) Limit Orders with a Post Only instruction, (ii) the Discretionary Range of Limit Orders, and (iv) Intermarket Sweep Orders (``ISOs'') not modified by Rule 11.7(a)(1), and (iii) orders with a Minimum Execution Quantity instruction. See Exchange Rule 11.7(a)(2). Orders that are designated for the Regular Session that cannot participate in the Opening Process will not be accepted by the System until the Opening Process is completed or a Contingent Opening. Id. Limit Orders with a Reserve Quantity may participate to the full extent of their displayed size and Reserve Quantity. Id. Limit Orders with a Discretionary Range may participate up to their ranked limit price for buy orders and down to their ranked limit price for sell orders. Id. All Limit Orders with a Pegged instruction will be eligible for execution in the Opening Process based on their pegged prices at the time the Opening Process is conducted. Id. \10\ See Exchange Rule 1.5(cc). --------------------------------------------------------------------------- Pursuant to subparagraph (b) of Rule 11.7, all orders executable at the midpoint of the NBBO will continue to be processed in time sequence, beginning with the order with the oldest time stamp and not in accordance with Exchange Rule 11.9(a)(2)(B), which outlines priority at the midpoint of the NBBO. Matches occur until there are no remaining contra-side orders or there is an imbalance of orders. An imbalance of orders may result in orders that cannot be executed in whole or in part. Any unexecuted orders may then be placed by the System on the EDGX Book,\11\ cancelled, executed, or routed to away Trading Centers in accordance with the Users' instructions pursuant to Exchange Rule 11.11. --------------------------------------------------------------------------- \11\ The term ``EDGX Book'' is defined as ``the System's electronic file of orders.'' See Exchange Rule 1.5(d). --------------------------------------------------------------------------- The Exchange proposes to amend subparagraph (c) to Rule 11.7 to now await a two-sided quotation from the listing exchange prior to opening a security for trading during Regular Trading Hours. As amended, subparagraph (c)(2) to Rule 11.7 would state that the System would set the price of the Opening Process at the midpoint of the first NBBO subsequent to the first two-sided quotation published by the listing exchange after 9:30:00 a.m. Eastern Time. For securities listed on either the NYSE or NYSE MKT, subparagraph (c)(1)(i) to Rule 11.7 would state that the System would set the price of the Opening Process at the midpoint of the first NBBO subsequent to the first reported trade and first reported quotation on the listing exchange after 9:30:00 a.m. Eastern Time. Pursuant to subparagraph (c)(1)(i) to Rule 11.7, the Exchange will utilize the existing NBBO to calculate each securities' [sic] opening price once a trade and two-sided quotation are received from the listing exchange, regardless of the order in which the [[Page 35100]] trade or quotation are received. The Exchange believes the proposed rule change will enable the listing market's quotation to be incorporated into the NBBO, which the Exchange would, in turn, utilize in its calculation of the midpoint of the NBBO. The Exchange believes doing so would result in an opening price that more closely reflect the opening market prices and conditions for that security. Under subparagraph (c)(1)(ii) to Rule 11.7, the Exchange will continue to alternatively set the price of the Opening Process for securities listed on either the NYSE or NYSE MKT at the midpoint of the then prevailing NBBO when the first two-sided quotation published by the relevant listing exchange after 9:30:00 a.m. Eastern Time, but before 9:45:00 a.m. Eastern Time if no first trade is reported by the listing exchange within one second of publication of the first two-sided quotation by the listing exchange. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \12\ in general, and furthers the objectives of Section 6(b)(5) of the Act \13\ in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. The Exchange believes the proposed rule change will promote just and equitable principles of trade, removes impediments to, and perfect the mechanism of, a free and open market and a national market system because it enables the System to execute the Opening Process at a price that is objectively established by the market for the security. The proposal would enable the listing market's quotation to be incorporated into the NBBO, which the Exchange would, in turn, utilize in its calculation of the midpoint of the NBBO. The Exchange believes doing so would result in an opening price that more closely reflect the opening market prices and conditions for that security. Therefore, the Exchange believes the proposed rule change promotes just and equitable principles of trade because it ensures a midpoint price that the Exchange believes would accurately reflect the market for the security. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b). \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposal will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change will enable the Exchange to incorporate the listing market's quotation into its calculation of the midpoint of the NBBO, resulting in an opening price that would more closely reflect the opening market prices and conditions for that security. Therefore, the Exchange believes the proposed rule change will promote competition by enhancing the quality of the Exchange's opening process. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\ --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A). \15\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \16\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \17\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange states that waiver of the 30-day operative delay would allow market participants to immediately realize the benefits of what may be more accurate opening prices. Based on the foregoing, the Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\18\ --------------------------------------------------------------------------- \16\ 17 CFR 240.19b-4(f)(6). \17\ 17 CFR 240.19b-4(f)(6)(iii). \18\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is 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 change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-BatsEDGX-2016-19 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 No. SR-BatsEDGX-2016-19. 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 [[Page 35101]] 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-BatsEDGX-2016-19, and should be submitted on or before June 22, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-12790 Filed 5-31-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 105 / Wednesday, June 1, 2016 / Notices 35099
SECURITIES AND EXCHANGE the most significant parts of such Eastern Time. The Exchange may
COMMISSION statements. alternatively set the price of the
Opening Process for securities listed on
[Release No. 34–77905; File No. SR– A. Self-Regulatory Organization’s
either the NYSE or NYSE MKT at the
BatsEDGX–2016–19] Statement of the Purpose of, and the
midpoint of the then prevailing NBBO
Statutory Basis for, the Proposed Rule
Self-Regulatory Organizations; Bats when the first two-sided quotation
Change
EDGX Exchange, Inc.; Notice of Filing published by the relevant listing
and Immediate Effectiveness of a 1. Purpose exchange after 9:30:00 a.m. Eastern
Proposed Rule Change to Rule 11.7, The Exchange proposes to amend Time, but before 9:45:00 a.m. Eastern
Opening Process Rule 11.7, Opening Process, to await a Time if no first trade is reported by the
two-sided quotation from the listing listing exchange within one second of
May 25, 2016. exchange prior to opening a security for publication of the first two-sided
Pursuant to Section 19(b)(1) of the trading during Regular Trading Hours. quotation by the listing exchange. The
Securities Exchange Act of 1934 (the Exchange Rule 11.7 describes the System waits to set the price at the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange’s current opening process. midpoint of the first NBBO as set forth
notice is hereby given that on May 13, Subparagraph (a) to Rule 11.7 states that above because securities listed on the
2016, Bats EDGX Exchange, Inc. (the prior to the beginning of the Regular NYSE or NYSE MKT may not open at
‘‘Exchange’’ or ‘‘EDGX’’) filed with the Session,6 Users 7 who wish to precisely 9:30:00 a.m. Eastern Time.
Securities and Exchange Commission participate in the Opening Process may Pursuant to subparagraph (b) of Rule
(‘‘Commission’’) the proposed rule enter orders to buy or sell.8 11.7, all orders executable at the
change as described in Items I and II Subparagraph (a)(2) to Rule 11.7 midpoint of the NBBO will continue to
below, which Items have been prepared provides that, with certain exceptions,9 be processed in time sequence,
by the Exchange. The Exchange has all orders with a time-in-force beginning with the order with the oldest
designated this proposal as a ‘‘non- instruction of Regular Hours Only may time stamp and not in accordance with
controversial’’ proposed rule change participate in the Opening Process. Exchange Rule 11.9(a)(2)(B), which
pursuant to Section 19(b)(3)(A) of the Subparagraph (b) to Rule 11.7 states that outlines priority at the midpoint of the
Act 3 and Rule 19b–4(f)(6)(iii) the Exchange will open by performing NBBO. Matches occur until there are no
thereunder,4 which renders it effective the Opening Process in which the remaining contra-side orders or there is
upon filing with the Commission. The System will attempt to match buy and an imbalance of orders. An imbalance of
Commission is publishing this notice to sell orders that are executable at the orders may result in orders that cannot
solicit comments on the proposed rule midpoint of the National Best Bid and be executed in whole or in part. Any
change from interested persons. Offer (‘‘NBBO’’). Subparagraph (c) to unexecuted orders may then be placed
Exchange Rule 11.7 sets forth the by the System on the EDGX Book,11
I. Self-Regulatory Organization’s cancelled, executed, or routed to away
process by which the System sets the
Statement of the Terms of Substance of Trading Centers in accordance with the
opening price of the Opening Process.
the Proposed Rule Change Users’ instructions pursuant to
Currently, the System 10 sets the price of
The Exchange filed a proposal to the Opening Process at the midpoint of Exchange Rule 11.11.
amend Rule 11.7, Opening Process, to the first NBBO after 9:30:00 a.m. Eastern The Exchange proposes to amend
await a two-sided quotation from the Time. However, for securities listed on subparagraph (c) to Rule 11.7 to now
listing exchange prior to opening a either the New York Stock Exchange, await a two-sided quotation from the
security for trading during Regular Inc. (‘‘NYSE’’) or NYSE MKT LLC listing exchange prior to opening a
Trading Hours.5 (‘‘NYSE MKT’’), the System currently security for trading during Regular
The text of the proposed rule change sets the price of the Opening Process at Trading Hours. As amended,
is available at the Exchange’s Web site the midpoint of the first NBBO subparagraph (c)(2) to Rule 11.7 would
at www.batstrading.com, at the subsequent to the first reported trade on state that the System would set the price
principal office of the Exchange, and at the listing exchange after 9:30:00 a.m. of the Opening Process at the midpoint
the Commission’s Public Reference of the first NBBO subsequent to the first
Room. 6 See Exchange Rule 1.5(hh). two-sided quotation published by the
7 See Exchange Rule 1.5(ee). listing exchange after 9:30:00 a.m.
II. Self-Regulatory Organization’s 8 Orders cancelled prior to the Opening Process
Eastern Time. For securities listed on
Statement of the Purpose of, and will not participate in the Opening Process. either the NYSE or NYSE MKT,
Statutory Basis for, the Proposed Rule 9 The following order types and instruction may
subparagraph (c)(1)(i) to Rule 11.7
Change not participate in the opening process: (i) Limit
Orders with a Post Only instruction, (ii) the would state that the System would set
In its filing with the Commission, the Discretionary Range of Limit Orders, and (iv) the price of the Opening Process at the
Exchange included statements Intermarket Sweep Orders (‘‘ISOs’’) not modified by midpoint of the first NBBO subsequent
Rule 11.7(a)(1), and (iii) orders with a Minimum
concerning the purpose of and basis for Execution Quantity instruction. See Exchange Rule
to the first reported trade and first
the proposed rule change and discussed 11.7(a)(2). Orders that are designated for the Regular reported quotation on the listing
any comments it received on the Session that cannot participate in the Opening exchange after 9:30:00 a.m. Eastern
proposed rule change. The text of these Process will not be accepted by the System until the Time. Pursuant to subparagraph (c)(1)(i)
Opening Process is completed or a Contingent
statements may be examined at the Opening. Id. Limit Orders with a Reserve Quantity
to Rule 11.7, the Exchange will utilize
places specified in Item IV below. The may participate to the full extent of their displayed the existing NBBO to calculate each
sradovich on DSK3TPTVN1PROD with NOTICES
Exchange has prepared summaries, set size and Reserve Quantity. Id. Limit Orders with a securities’ [sic] opening price once a
forth in Sections A, B, and C below, of Discretionary Range may participate up to their trade and two-sided quotation are
ranked limit price for buy orders and down to their
ranked limit price for sell orders. Id. All Limit
received from the listing exchange,
1 15 U.S.C. 78s(b)(1). Orders with a Pegged instruction will be eligible for regardless of the order in which the
2 17 CFR 240.19b–4. execution in the Opening Process based on their
3 15 U.S.C. 78s(b)(3)(A).
pegged prices at the time the Opening Process is 11 The term ‘‘EDGX Book’’ is defined as ‘‘the
4 17 CFR 240.19b–4(f)(6)(iii). conducted. Id. System’s electronic file of orders.’’ See Exchange
5 See Exchange Rule 1.5(y). 10 See Exchange Rule 1.5(cc). Rule 1.5(d).
VerDate Sep<11>2014 21:59 May 31, 2016 Jkt 238001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 E:\FR\FM\01JNN1.SGM 01JNN1](https://thefederalregister.org/doc/81_FR_35204/page/1.svg)
![Federal Register / Vol. 81, No. 105 / Wednesday, June 1, 2016 / Notices 35101
public in accordance with the change, which replaced the original II. The Exchange’s Description of the
provisions of 5 U.S.C. 552, will be filing in its entirety. Also on April 4, Proposal 6
available for Web site viewing and 2016, the Commission designated a
printing in the Commission’s Public longer period within which to approve The Exchange proposes to list and
Reference Room, 100 F Street NE., the proposed rule change, disapprove trade the Shares under NYSE Arca
Washington, DC 20549, on official the proposed rule change, or institute Equities Rule 8.600, which governs the
business days between the hours of proceedings to determine whether to listing and trading of Managed Fund
10:00 a.m. and 3:00 p.m. Copies of the disapprove the proposed rule change.4 Shares on the Exchange. The Shares will
filing also will be available for On May 9, 2016, the Exchange filed be offered by the J.P. Morgan Exchange-
inspection and copying at the principal Amendment No. 2 to the proposed rule Traded Fund Trust (‘‘Trust’’), a statutory
office of the Exchange. All comments change, which replaced Amendment trust organized under the laws of the
received will be posted without change; No. 1 and the original filing in their State of Delaware and registered with
the Commission does not edit personal the Commission as an open-end
entirety. On May 20, 2016, the Exchange
identifying information from management investment company.7 J.P.
filed Amendment No. 3 to the proposed
submissions. You should submit only Morgan Investment Management Inc.
information that you wish to make rule change, which replaced
Amendment No. 2 and the original (‘‘Adviser’’) will be the investment
available publicly. All submissions advisor to the Fund.8 The Adviser is a
should refer to File No. SR–BatsEDGX– filing in their entirety.5 The
Commission received no comments on wholly-owned subsidiary of JPMorgan
2016–19, and should be submitted on or Asset Management Holdings Inc., which
before June 22, 2016. the proposed rule change. The
Commission is publishing this notice to is a wholly-owned subsidiary of
For the Commission, by the Division of JPMorgan Chase & Co., a bank holding
Trading and Markets, pursuant to delegated solicit comment on Amendment No. 3
to the proposed rule change from company. JPMorgan Funds
authority.19
interested persons, and is approving the Management, Inc. will serve as the
Brent J. Fields,
proposed rule change, as modified by administrator (‘‘Administrator’’). SEI
Secretary.
[FR Doc. 2016–12790 Filed 5–31–16; 8:45 am]
Amendment No. 3, on an accelerated
6 The Commission notes that additional
basis.
BILLING CODE 8011–01–P information regarding the Fund, the Trust (as
defined below), and the Shares, including
4 See Securities Exchange Act Release No. 77512 investment strategies, risks, creation and
SECURITIES AND EXCHANGE (April 4, 2016), 81 FR 20718 (April 8, 2016). The redemption procedures, fees, portfolio holdings,
disclosure policies, calculation of net asset value
COMMISSION Commission determined that it was appropriate to
(‘‘NAV’’), distributions, and taxes, among other
designate a longer period within which to take things, can be found in Amendment No. 3 and the
[Release No. 34–77904; File No. SR– action on the proposed rule change so that it has Registration Statement, as applicable. See
NYSEArca–2016–17] sufficient time to consider the proposed rule Amendment No. 3, supra note 5, and Registration
change. Accordingly, the Commission designated Statement, infra note 7.
Self-Regulatory Organizations; NYSE May 25, 2016 as the date by which it should 7 The Trust is registered under the 1940 Act. On
Arca, Inc.; Notice of Filing of approve, disapprove, or institute proceedings to December 14, 2015, the Trust filed with the
Amendment No. 3 and Order Granting determine whether to disapprove the proposed rule Commission a registration statement on Form N–1A
Accelerated Approval of a Proposed change. under the Securities Act of 1933 (15 U.S.C. 77a)
5 In Amendment No. 3, the Exchange modified (‘‘Securities Act’’) and the 1940 Act relating to the
Rule Change, as Modified by Fund (File Nos. 333–192733 and 811–22917)
Amendment No. 3, to List and Trade of the original proposed rule change by, among other
(‘‘Registration Statement’’). The Trust filed an
things: (1) Changing certain permitted investments
Shares of the JPMorgan Diversified of the Fund; (2) representing that the Fund would
Application for an Order under Section 6(c) of the
Alternative ETF Under NYSE Arca 1940 Act for exemptions from various provisions of
not invest in inverse exchange-traded funds the 1940 Act and rules thereunder (File No. 812–
Equities Rule 8.600 (‘‘ETFs’’); (3) describing where pricing information 13761), initially filed March 10, 2010, and most
could be found for U.S. government mortgage recently amended on December 23, 2015
May 25, 2016. backed securities; (4) representing that not more (‘‘Exemptive Application’’). The Exemptive
I. Introduction than 10% of the net assets of the Fund in the Application was published for notice in IC Release
aggregate invested in equity securities (other than No. 31956 on January 14, 2016. The Shares will not
On February 5, 2016, NYSE Arca, Inc. non-exchange-traded investment company be listed on the Exchange until an order
(‘‘Exchange’’) filed with the Securities securities) shall consist of equity securities whose (‘‘Exemptive Order’’) under the 1940 Act has been
and Exchange Commission principal market is not a member of the Intermarket issued by the Commission with respect to the
Surveillance Group (‘‘ISG’’) or is a market with Exemptive Application. Investments made by the
(‘‘Commission’’), pursuant to Section Fund will comply with the conditions set forth in
19(b)(1) of the Securities Exchange Act which the Exchange does not have a comprehensive
the Exemptive Order.
surveillance sharing agreement; and (5)
of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and 8 The Adviser is not a registered broker-dealer but
representing that all statements and representations
Rule 19b–4 thereunder,2 a proposed rule made in the filing regarding (a) the description of
is affiliated with a broker-dealer. The Adviser has
change to list and trade shares implemented and will maintain a firewall with
the portfolio, (b) limitations on portfolio holdings respect to its broker-dealer affiliate regarding access
(‘‘Shares’’) of the JPMorgan Diversified or reference assets, or (c) the applicability of to information concerning the composition and/or
Alternative ETF (‘‘Fund’’) under NYSE Exchange rules and surveillance procedures shall changes to a portfolio and will be subject to
Arca Equities Rule 8.600. The constitute continued listing requirements for listing procedures designed to prevent the use and
Commission published notice of the the Shares on the Exchange; (6) representing that, dissemination of material non-public information
under normal market conditions, the Fund will regarding such portfolio. In the event (a) the
proposed rule change in the Federal Adviser becomes registered as a broker-dealer or
invest at least 75% of its corporate debt securities
Register on February 25, 2016.3 On in issuances that have at least $100,000,000 par newly affiliated with a broker-dealer or (b) any new
sradovich on DSK3TPTVN1PROD with NOTICES
April 4, 2016, the Exchange filed amount outstanding in developed countries or at adviser or sub-adviser is a broker-dealer or becomes
Amendment No. 1 to the proposed rule affiliated with a broker-dealer, it will implement a
least $200,000,000 par amount outstanding in
fire wall with respect to its personnel or such
emerging market countries; and (7) modifying
broker-dealer regarding access to information
19 17 CFR 200.30–3(a)(12). certain surveillance representations. All of the concerning the composition and/or changes to the
1 15 U.S.C. 78s(b)(1). amendments to the proposed rule change, including portfolio, and will be subject to procedures
2 17 CFR 240.19b–4. Amendment No. 3, are available at: http:// designed to prevent the use and dissemination of
3 See Securities Exchange Act Release No. 77179 www.sec.gov/comments/sr-nysearca-2016-17/ material non-public information regarding such
(February 19, 2016), 81 FR 9521 (‘‘Notice’’). nysearca201617.shtml. portfolio.
VerDate Sep<11>2014 21:59 May 31, 2016 Jkt 238001 PO 00000 Frm 00133 Fmt 4703 Sfmt 4703 E:\FR\FM\01JNN1.SGM 01JNN1](https://thefederalregister.org/doc/81_FR_35204/page/3.svg)
Document Created: 2018-02-08 07:27:06
Document Modified: 2018-02-08 07:27:06
| 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 35099 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR