81 FR 35421 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 106 (June 2, 2016)
Federal Register Volume 81, Issue 106 (June 2, 2016)
| Page Range | 35421-35423 | |
| FR Document | 2016-12873 |
[Federal Register Volume 81, Number 106 (Thursday, June 2, 2016)] [Notices] [Pages 35421-35423] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-12873] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77926; File No. SR-CBOE-2016-045] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule May 26, 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 16, 2016, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the Fees Schedule. The text of the proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, 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 aspects 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 its Fees Schedule.\3\ Specifically, the Exchange proposes to allow Market-Makers to designate a Trading Permit Holder with agency operations (``Order Flow Provider'' or ``OFP'') and Order Flow Providers to designate a Market-Maker for purposes of being able to take advantage of credits available under the Affiliate Volume Plan (``AVP''). --------------------------------------------------------------------------- \3\ The Exchange initially filed the proposed fee change on May 2, 2016 (SR-CBOE-2016-044). On May 16, 2016, the Exchange withdrew that filing and submitted this filing. --------------------------------------------------------------------------- By way of background, the Exchange currently has in place various incentive programs that benefit ``affiliated'' Trading Permit Holders (``TPHs''). Particularly, under AVP, if a TPH Affiliate of a Market- Maker (including a Designated Primary Market-Maker (``DPM'') or Lead Market-Maker (``LMM'')) qualifies under the Volume Incentive Program (``VIP''), that Market-Maker will also qualify for a discount on that Market-Maker's Liquidity Provider Sliding Scale (``Sliding Scale'') transaction fees (``Liquidity Provider Sliding Scale Credit''). More specifically, if a Market-Maker's Affiliate reaches Tier 2, Tier 3 or Tier 4 of VIP, that Market-Maker will receive a Liquidity Provider Sliding Scale Credit of 10%, 20% or 30%, respectively. Additionally, if a Market-Maker's Affiliate receives a credit under VIP, that Market- Maker will also receive a credit on its Market-Maker Trading Permit fees \4\ corresponding to the VIP tier reached (10% Market-Maker Trading Permit fee credit for reaching Tier 2 of the VIP, 20% Market- Maker Trading Permit fee credit for reaching Tier 3 of the VIP, and 30% Market-Maker Trading Permit fee credit for reaching Tier 4 of the VIP) (``Access Credit''). ``Affiliate'' for purposes of AVP (i.e., the Liquidity Provider Sliding Scale Credit and Access Credit) is currently defined as having at least 75% common ownership between the two entities as reflected on each entity's Form BD, Schedule A. --------------------------------------------------------------------------- \4\ This credit does not apply to Market-Maker Trading Permits used for appointments in SPX, SPXpm, RUT, VIX, OEX and XEO. --------------------------------------------------------------------------- The Exchange now proposes to expand the availability of the credits under AVP. Specifically, the Exchange proposes to allow any Market- Maker to designate an OFP as its ``Appointed OFP'' and any OFP to designate a Market-Maker to be its ``Appointed Market-Maker'' for purposes of qualifying for credits under AVP. TPHs would effectuate the designation by submitting a form to the Exchange.\5\ The form would need to be submitted to the Exchange by 3:00 p.m. on the first business day of a month in order to be eligible to qualify for credits under AVP for that month. The Exchange would view transmittal of the completed form as acceptance of such an appointment and would only recognize one such designation for each party once every calendar month, which designation would remain [sic] automatically renew each month and remain in effect unless or until the Exchange receives an email from either party indicating that the appointment has been terminated. --------------------------------------------------------------------------- \5\ The Appointed Affiliate Form may be submitted to [email protected]. --------------------------------------------------------------------------- The Exchange notes that the proposal would be available to all Market-Makers and OFPs, even those who already have an ``Affiliate'' under the current definition. More specifically, the proposed change would enable a Market-Maker without an Affiliate OFP (i.e., an OFP with at least 75% common ownership between itself and that Market-Maker as reflected on each entity's Form BD, Schedule A)--or with an Affiliate OFP--to enter into a relationship with an Appointed OFP. Similarly, an OFP with or without an Affiliate Market-Maker would be able to enter into a relationship with an Appointed Market-Maker. The proposed change increases opportunities for TPHs to qualify for credits under AVP, as it would enable TPHs that are not currently eligible for AVP (i.e., doesn't have an ``Affiliate'') to avail themselves of AVP, as well as assist TPHs that are currently eligible for AVP (i.e., has an Affiliate) to potentially achieve a higher AVP tier, thus qualifying for higher credits. The Exchange notes that a Market-Maker that has both an Affiliate OFP and Appointed OFP may only qualify based upon the volume of its [[Page 35422]] Appointed OFP. Similarly, the volume of an OFP that has both an Affiliate Market-Maker and Appointed Market-Maker may only count towards qualifying the Appointed Market-Maker, not Affiliate Market- Maker, for credits under AVP (by virtue of the volume reaching qualifying VIP tiers). The Exchange believes enabling additional Market-Makers and OFPs to take advantage of the AVP credits will attract more volume and liquidity to the Exchange, which will benefit all Exchange participants through increased opportunities to trade as well as enhancing price discovery. The Exchange lastly proposes to eliminate two references to the word ``affiliated'' in the Notes section of the AVP table. The Exchange believes that using the term ``affiliated Market-Maker'' in these locations may be confusing in light of the proposal to also allow ``Appointed Market-Makers''. Additionally, the Exchange believes preceding ``Market-Maker'' with ``affiliated'' is unnecessary and as such proposes to delete it in these two instances. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\6\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \7\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and 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 also believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\8\ which provides that Exchange rules may provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). \8\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes the proposed change is reasonable because it would be available to all Market-Makers and OFPs and the decision to be designated as an ``Appointed OFP'' or ``Appointed Market-Maker'' is completely voluntary and TPHs may elect to accept this appointment or not. Additionally, the proposed change increases opportunities for Market-Makers to qualify for credits under AVP, as it enables Market- Makers that are not currently eligible for AVP credits to avail themselves of AVP, as well as enables Market-Makers that are currently eligible for AVP to rely on volume that potentially achieves a higher VIP tier (and thus results in higher AVP credits). The Exchange also notes that other Exchanges have adopted a similar concept for their own affiliate-based incentive programs.\9\ --------------------------------------------------------------------------- \9\ See NYSE MKT LLC, Amex Options Fee Schedule, Section D, Prepayment Program and Section E, Amex Customer Engagement (``ACE'') Program. See also Bats EDGX Exchange, Inc., Bats EDGX Options Exchange Fees Schedule, Definitions, ``Appointed MM'' and ``Appointed OEF''. --------------------------------------------------------------------------- The Exchange believes the proposed change is reasonable, equitable and not unfairly discriminatory because although only Market-Makers receive credits under AVP, Market-Makers are valuable market participants that provide liquidity in the marketplace and incur costs that other market participants do not incur. For example, Market-Makers have a number of obligations, including quoting obligations that other market participants do not have. Additionally, the Exchange notes that incentivizing an Appointed OFP to achieve higher tiers under VIP can result in greater customer liquidity, and the resulting increased volume benefits all market participants. The Exchange also notes that the credits under AVP would be available to all Appointed Market-Makers whose Affiliate or Appointed OFP qualify. The Exchange believes enabling additional Market-Makers to take advantage of the AVP credits (not just those with ``Affiliates'' under the current definition) will attract more volume and liquidity to the Exchange, which will benefit all market participants. The Exchange believes it is equitable and not unfairly discriminatory to permit only one designation of an Appointed Market- Maker and Appointed OFP per calendar month because it imposes a measure of exclusivity allowing both parties to rely upon each other's volume executed on the Exchange and potentially increase such volume to the benefit of all Exchange participants for that month. The Exchange also believes that while it encourages parties to rely upon each other's volume, limiting the exclusivity to one month also gives the parties the flexibility to make changes if the parties' circumstances change (e.g., if one party terminates). The Exchange lastly believes that eliminating the two references to the word ``affiliated'' in the Notes section of the AVP table reduces potential confusion, which removes impediments to and perfects the mechanism of a free and open market and a national market system, and, in general, protects investors and the public interest. B. Self-Regulatory Organization's Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Specifically, the Exchange believes that the proposed changes are pro-competitive as they would increase opportunities for additional TPHs to qualify for AVP, which may increase intermarket and intramarket competition by incenting Appointed OFPs and Appointed Market-Makers to bring increased volume (including customer liquidity in order to reach higher VIP tiers, which results in higher AVP credits), and the resulting increased volume benefits all market participants (including Market-Makers and OFPs that do not have Affiliates or Appointed Market-Makers or OFPs) through increased trading opportunities and enhanced price discovery. The Exchange also notes that limiting AVP credits to Market-Makers does not impose an unnecessary or inappropriate burden on intermarket competition because Market-Makers are valuable market participants that provide liquidity in the marketplace and incur costs that other market participants do not incur. Market-Makers also have a number of obligations, including quoting obligations that other market participants do not have. Additionally, the Exchange does not believe that the proposed rule changes will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because, as stated above, the proposed changes are intended to promote competition and better improve the Exchange's competitive position and make CBOE a more attractive marketplace in order to encourage market participants to bring increased volume to the Exchange. Further, the proposed changes only affect trading on CBOE. To the extent that the proposed changes make CBOE a more attractive marketplace for market participants at other exchanges, such [[Page 35423]] market participants are welcome to become CBOE market participants. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \10\ and paragraph (f) of Rule 19b-4 \11\ thereunder. 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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CBOE-2016-045 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-CBOE-2016-045. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of 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 Number SR-CBOE-2016-045, and should be submitted on or before June 23, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-12873 Filed 6-1-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 106 / Thursday, June 2, 2016 / Notices 35421
the asset coverage required by section II. Self-Regulatory Organization’s Tier 3 of the VIP, and 30% Market-
18(a) (as modified by section 61(a)). In Statement of the Purpose of, and Maker Trading Permit fee credit for
determining whether the Company, Statutory Basis for, the Proposed Rule reaching Tier 4 of the VIP) (‘‘Access
Ares SBIC and any other SBIC Change Credit’’). ‘‘Affiliate’’ for purposes of
Subsidiary on a consolidated basis have In its filing with the Commission, the AVP (i.e., the Liquidity Provider Sliding
the asset coverage required by section Exchange included statements Scale Credit and Access Credit) is
18(a) (as modified by section 61(a)), any concerning the purpose of and basis for currently defined as having at least 75%
senior securities representing the proposed rule change and discussed common ownership between the two
indebtedness of Ares SBIC or another any comments it received on the entities as reflected on each entity’s
SBIC Subsidiary if that SBIC Subsidiary proposed rule change. The text of these Form BD, Schedule A.
has issued indebtedness that is held or statements may be examined at the The Exchange now proposes to
guaranteed by the SBA shall not be places specified in Item IV below. The expand the availability of the credits
considered senior securities and, for Exchange has prepared summaries, set under AVP. Specifically, the Exchange
purposes of the definition of ‘‘asset forth in sections A, B, and C below, of proposes to allow any Market-Maker to
coverage’’ in section 18(h), shall be the most significant aspects of such designate an OFP as its ‘‘Appointed
treated as indebtedness not represented statements. OFP’’ and any OFP to designate a
by senior securities. Market-Maker to be its ‘‘Appointed
A. Self-Regulatory Organization’s Market-Maker’’ for purposes of
For the Commission, by the Division of
Investment Management, pursuant to Statement of the Purpose of, and the qualifying for credits under AVP. TPHs
delegated authority. Statutory Basis for, the Proposed Rule would effectuate the designation by
Brent J. Fields, Change submitting a form to the Exchange.5 The
Secretary. 1. Purpose form would need to be submitted to the
[FR Doc. 2016–12878 Filed 6–1–16; 8:45 am]
Exchange by 3:00 p.m. on the first
The Exchange proposes to amend its business day of a month in order to be
BILLING CODE 8011–01–P Fees Schedule.3 Specifically, the eligible to qualify for credits under AVP
Exchange proposes to allow Market- for that month. The Exchange would
Makers to designate a Trading Permit view transmittal of the completed form
SECURITIES AND EXCHANGE Holder with agency operations (‘‘Order
COMMISSION as acceptance of such an appointment
Flow Provider’’ or ‘‘OFP’’) and Order and would only recognize one such
[Release No. 34–77926; File No. SR–CBOE– Flow Providers to designate a Market- designation for each party once every
2016–045] Maker for purposes of being able to take calendar month, which designation
advantage of credits available under the would remain [sic] automatically renew
Self-Regulatory Organizations; Affiliate Volume Plan (‘‘AVP’’). each month and remain in effect unless
Chicago Board Options Exchange, By way of background, the Exchange or until the Exchange receives an email
Incorporated; Notice of Filing and currently has in place various incentive from either party indicating that the
Immediate Effectiveness of a Proposed programs that benefit ‘‘affiliated’’ appointment has been terminated.
Rule To Amend the Fees Schedule Trading Permit Holders (‘‘TPHs’’). The Exchange notes that the proposal
May 26, 2016. Particularly, under AVP, if a TPH would be available to all Market-Makers
Pursuant to Section 19(b)(1) of the Affiliate of a Market-Maker (including a and OFPs, even those who already have
Securities Exchange Act of 1934 (the Designated Primary Market-Maker an ‘‘Affiliate’’ under the current
‘‘Act’’),1 and Rule 19b–4 thereunder,2 (‘‘DPM’’) or Lead Market-Maker definition. More specifically, the
notice is hereby given that on May 16, (‘‘LMM’’)) qualifies under the Volume proposed change would enable a
2016, Chicago Board Options Exchange, Incentive Program (‘‘VIP’’), that Market- Market-Maker without an Affiliate OFP
Incorporated (the ‘‘Exchange’’ or Maker will also qualify for a discount on (i.e., an OFP with at least 75% common
‘‘CBOE’’) filed with the Securities and that Market-Maker’s Liquidity Provider ownership between itself and that
Exchange Commission (the Sliding Scale (‘‘Sliding Scale’’) Market-Maker as reflected on each
‘‘Commission’’) the proposed rule transaction fees (‘‘Liquidity Provider entity’s Form BD, Schedule A)—or with
change as described in Items I, II, and Sliding Scale Credit’’). More an Affiliate OFP—to enter into a
III below, which Items have been specifically, if a Market-Maker’s relationship with an Appointed OFP.
prepared by the Exchange. The Affiliate reaches Tier 2, Tier 3 or Tier Similarly, an OFP with or without an
Commission is publishing this notice to 4 of VIP, that Market-Maker will receive Affiliate Market-Maker would be able to
solicit comments on the proposed rule a Liquidity Provider Sliding Scale enter into a relationship with an
change from interested persons. Credit of 10%, 20% or 30%, Appointed Market-Maker. The proposed
respectively. Additionally, if a Market- change increases opportunities for TPHs
I. Self-Regulatory Organization’s Maker’s Affiliate receives a credit under to qualify for credits under AVP, as it
Statement of the Terms of Substance of VIP, that Market-Maker will also receive would enable TPHs that are not
the Proposed Rule Change a credit on its Market-Maker Trading currently eligible for AVP (i.e., doesn’t
The Exchange proposes to amend the Permit fees 4 corresponding to the VIP have an ‘‘Affiliate’’) to avail themselves
Fees Schedule. The text of the proposed tier reached (10% Market-Maker of AVP, as well as assist TPHs that are
rule change is available on the Trading Permit fee credit for reaching currently eligible for AVP (i.e., has an
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Exchange’s Web site (http:// Tier 2 of the VIP, 20% Market-Maker Affiliate) to potentially achieve a higher
www.cboe.com/AboutCBOE/ Trading Permit fee credit for reaching AVP tier, thus qualifying for higher
CBOELegalRegulatoryHome.aspx), at credits. The Exchange notes that a
the Exchange’s Office of the Secretary, 3 The Exchange initially filed the proposed fee
Market-Maker that has both an Affiliate
and at the Commission’s Public change on May 2, 2016 (SR–CBOE–2016–044). On
May 16, 2016, the Exchange withdrew that filing
OFP and Appointed OFP may only
Reference Room. and submitted this filing. qualify based upon the volume of its
4 This credit does not apply to Market-Maker
1 15 U.S.C. 78s(b)(1). Trading Permits used for appointments in SPX, 5 The Appointed Affiliate Form may be submitted
2 17 CFR 240.19b–4. SPXpm, RUT, VIX, OEX and XEO. to Registration@cboe.com.
VerDate Sep<11>2014 18:30 Jun 01, 2016 Jkt 238001 PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 E:\FR\FM\02JNN1.SGM 02JNN1](https://thefederalregister.org/doc/81_FR_35527/page/1.svg)
![Federal Register / Vol. 81, No. 106 / Thursday, June 2, 2016 / Notices 35423
market participants are welcome to with respect to the proposed rule Rule 10b-17 of the Securities Exchange
become CBOE market participants. change that are filed with the Act of 1934, as amended (‘‘Exchange
Commission, and all written Act’’), and Rules 101 and 102 of
C. Self-Regulatory Organization’s
communications relating to the Regulation M, in connection with
Statement on Comments on the
proposed rule change between the secondary market transactions in Shares
Proposed Rule Change Received From and the creation or redemption of
Commission and any person, other than
Members, Participants, or Others aggregations of Shares of at least 25,000
those that may be withheld from the
The Exchange neither solicited nor public in accordance with the shares (‘‘Creation Units’’).
received comments on the proposed provisions of 5 U.S.C. 552, will be The Trust is registered with the
rule change. available for Web site viewing and Securities and Exchange Commission
printing in the Commission’s Public (‘‘Commission’’) under the Investment
III. Date of Effectiveness of the
Reference Room, 100 F Street NE., Company Act of 1940, as amended
Proposed Rule Change and Timing for
Washington, DC 20549, on official (‘‘1940 Act’’), as an open-end
Commission Action management investment company. The
business days between the hours of
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the SPDR Dorsey Wright Fixed Income
effective pursuant to Section 19(b)(3)(A) filing also will be available for Allocation ETF will seek results that
of the Act 10 and paragraph (f) of Rule inspection and copying at the principal correspond generally to the
19b–4 11 thereunder. At any time within office of the Exchange. All comments performance, before fees and expenses,
60 days of the filing of the proposed rule received will be posted without change; of the Dorsey Wright Fixed Income
change, the Commission summarily may the Commission does not edit personal Allocation Index (the ‘‘Index’’). In doing
temporarily suspend such rule change if identifying information from so, the Fund will, under normal
it appears to the Commission that such submissions. You should submit only circumstances, invest at least 80% (but
action is necessary or appropriate in the information that you wish to make typically substantially all) of its total
public interest, for the protection of available publicly. All submissions assets in the four ETFs that comprise the
investors, or otherwise in furtherance of should refer to File Number SR–CBOE– Index (the ‘‘Underlying ETFs’’).1 In light
the purposes of the Act. If the 2016–045, and should be submitted on of the Index’s composition, the Fund
Commission takes such action, the or before June 23, 2016. intends to operate as an ‘‘ETF of ETFs.’’
Commission will institute proceedings Except for the fact that the Fund will
to determine whether the proposed rule For the Commission, by the Division of
Trading and Markets, pursuant to delegated
operate as an ETF of ETFs, the Fund
change should be approved or authority.12 will operate in a manner substantially
disapproved. identical to the Underlying ETFs.
Brent J. Fields,
The Requestors represent, among
IV. Solicitation of Comments Secretary.
other things, the following:
Interested persons are invited to [FR Doc. 2016–12873 Filed 6–1–16; 8:45 am] • Shares of the Fund will be issued
submit written data, views, and BILLING CODE 8011–01–P by the Trust, an open-end management
arguments concerning the foregoing, investment company that is registered
including whether the proposed rule with the Commission;
change is consistent with the Act. SECURITIES AND EXCHANGE • The Trust will continuously redeem
Comments may be submitted by any of COMMISSION Creation Units at net asset value
the following methods: [Release No. 34–77942; File No. TP 16–8] (‘‘NAV’’), and the secondary market
price of the Shares should not vary
Electronic Comments
Order Granting Limited Exemptions substantially from the NAV of such
• Use the Commission’s Internet From Exchange Act Rule 10b–17 and Shares;
comment form (http://www.sec.gov/ Rules 101 and 102 of Regulation M to • Shares of the Fund will be listed
rules/sro.shtml); or SPDR Series Trust and SPDR Dorsey and traded on NASDAQ Stock Market
• Send an email to rule-comments@ Wright Fixed Income Allocation ETF LLC or other exchange in accordance
sec.gov. Please include File Number SR– Pursuant to Exchange Act Rule 10b– with exchange listing standards that are,
CBOE–2016–045 on the subject line. 17(b)(2) and Rules 101(d) and 102(e) of or will become, effective pursuant to
Paper Comments Regulation M Section 19(b) of the Exchange Act (the
‘‘Listing Exchange’’);
• Send paper comments in triplicate May 27, 2016. • All Underlying ETFs in which the
to Secretary, Securities and Exchange By letter dated May 27, 2016 (the Fund invests will either meet all
Commission, 100 F Street NE., ‘‘Letter’’), as supplemented by conditions set forth in one or more of
Washington, DC 20549–1090. conversations with the staff of the the ETF class relief letters,2 will have
All submissions should refer to File Division of Trading and Markets,
Number SR–CBOE–2016–045. This file counsel for SPDR Series Trust (the 1 At any given time, the underlying Index will be
number should be included on the ‘‘Trust’’), on behalf of the Trust, SPDR composed of four SPDR ETFs from a universe that
currently consists of 21 eligible SPDR ETFs that
subject line if email is used. To help the Dorsey Wright Fixed Income Allocation each invest in a different sub-asset class in the fixed
Commission process and review your ETF (the ‘‘Fund’’), any national income market. While the Fund typically will
comments more efficiently, please use securities exchange on or through which invest substantially all of its assets in the four
shares issued by the Fund (‘‘Shares’’) Underlying ETFs, the Fund may also invest in
asabaliauskas on DSK3SPTVN1PROD with NOTICES
only one method. The Commission will
instruments not included in the Index, such as
post all comments on the Commission’s may subsequently trade, State Street convertible securities, variable rate demand notes,
Internet Web site (http://www.sec.gov/ Global Markets, LLC (the ‘‘Distributor’’), commercial paper, structured notes, swaps, options
rules/sro.shtml). Copies of the and persons or entities engaging in and futures contracts, which the Fund may use in
submission, all subsequent transactions in Shares (collectively, the seeking performance that corresponds to its Index
and in managing cash flows.
amendments, all written statements ‘‘Requestors’’), requested exemptions, or 2 See, e.g., Letter from James A. Brigagliano,
interpretive or no-action relief, from Acting Associate Director, Division of Market
10 15 U.S.C. 78s(b)(3)(A). Regulation, to Stuart M. Strauss, Esq., Clifford
11 17 CFR 240.19b–4(f). 12 17 CFR 200.30–3(a)(12). Continued
VerDate Sep<11>2014 18:30 Jun 01, 2016 Jkt 238001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 E:\FR\FM\02JNN1.SGM 02JNN1](https://thefederalregister.org/doc/81_FR_35527/page/3.svg)
Document Created: 2016-06-02 01:23:09
Document Modified: 2016-06-02 01:23:09
| 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 35421 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR