81 FR 49286 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 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 Nos. 1 and 2 Thereto, To List and Trade Shares of the First Trust Municipal High Income ETF of First Trust Exchange-Traded Fund III

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 144 (July 27, 2016)

[Federal Register Volume 81, Number 144 (Wednesday, July 27, 2016)]
[Notices]
[Page 49286]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17670]



[[Page 49286]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78384; File No. SR-Nasdaq-2016-002]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
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 Nos. 1 and 2 Thereto, To List and 
Trade Shares of the First Trust Municipal High Income ETF of First 
Trust Exchange-Traded Fund III

July 21, 2016.
    On January 6, 2016, The NASDAQ Stock Market LLC (``Nasdaq'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to list and trade shares 
(``Shares'') of the First Trust Municipal High Income ETF (``Fund'') 
under Nasdaq Rule 5735. The proposed rule change was published for 
comment in the Federal Register on January 27, 2016.\3\ On February 16, 
2016, the Exchange filed Amendment No. 1.\4\ On March 8, 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 April 26, 2016, the 
Commission instituted proceedings under Section 19(b)(2)(B) of the Act 
\7\ to determine whether to approve or disapprove the proposed rule 
change, as modified by Amendment No. 1 thereto.\8\ In the Order 
Instituting Proceedings, the Commission solicited comments to specified 
matters related to the proposal.\9\ On June 24, 2016, the Exchange 
filed Amendment No. 2, which replaced the originally filed proposed 
rule change in its entirety.\10\ The Commission has not received any 
comments on the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 76944 (Jan. 21, 
2016), 81 FR 4712 (``Notice'').
    \4\ Amendment No. 1 is available on the Commission's Web site 
at: http://www.sec.gov/comments/sr-nasdaq-2016-002/nasdaq2016002-1.pdf.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 34-77320, 81 FR 
13429 (Mar. 14, 2016). The Commission designated April 26, 2016 as 
the date by which the Commission shall either approve or disapprove, 
or institute proceedings to determine whether to disapprove, the 
proposed rule change.
    \7\ 15 U.S.C. 78s(b)(2)(B).
    \8\ See Securities Exchange Act Release No. 77871, 81 FR 26265 
(May 2, 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 26268.
    \9\ See id.
    \10\ Amendment No. 2 is available on the Commission's Web site 
at: https://www.sec.gov/comments/sr-nasdaq-2016-002/nasdaq2016002-2.pdf.
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    Section 19(b)(2) of the Act \11\ 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 January 27, 2016.\12\ The 180th day after 
publication of the notice of the filing of the proposed rule change in 
the Federal Register is July 25, 2016.
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    \11\ 15 U.S.C. 78s(b)(2).
    \12\ See supra note 3.
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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 Nos. 1 and 2 thereto.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\13\ designates September 23, 2016, as the date by which the 
Commission shall either approve or disapprove the proposed rule change, 
as modified by Amendment Nos. 1 and 2 thereto (File No. SR-Nasdaq-2016-
002).
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    \13\ 15 U.S.C. 78s(b)(2).
    \14\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17670 Filed 7-26-16; 8:45 am]
 BILLING CODE 8011-01-P