81 FR 5796 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Make Minor Changes to Rule 1064, Crossing, Facilitation and Solicited Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 22 (February 3, 2016)
Federal Register Volume 81, Issue 22 (February 3, 2016)
| Page Range | 5796-5798 | |
| FR Document | 2016-01925 |
[Federal Register Volume 81, Number 22 (Wednesday, February 3, 2016)] [Notices] [Pages 5796-5798] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-01925] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76984; File No. SR-Phlx-2016-07] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Make Minor Changes to Rule 1064, Crossing, Facilitation and Solicited Orders January 28, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on January 14, 2016, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``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. --------------------------------------------------------------------------- [[Page 5797]] I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to make minor changes to Rule 1064, Crossing, Facilitation and Solicited Orders. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqomxphlx.cchwallstreet.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 aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the filing is to improve the readability of Rule 1064 with a few minor changes. Rule 1064 is lengthy and covers several complicated, related topics. First, the Exchange proposes to add headings to certain paragraphs to make it easier to locate each of the following topics: Crossing,\3\ Anticipatory Hedging \4\ and Floor Qualified Contingent Cross.\5\ Paragraph (b), Facilitation Orders and paragraph (c), Solicited Orders, already have headings so headings would now run consistently throughout the rule. --------------------------------------------------------------------------- \3\ Rule 1064(a). \4\ Rule 1064(d). \5\ Rule 1064(e). --------------------------------------------------------------------------- Second, the Exchange also proposes to move the language from two commentaries into the body of the rule, also to improve readability. Specifically, the language in Commentary .03 is being moved to become the new Rule 1064(a)(iv), because it relates to crossing orders, which is covered in paragraph (a). Also, the language in Commentary .04 is being moved to become the new Rule 1064(d)(iii), which is related to the anticipatory hedging provisions currently in paragraph (d). 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \6\ in general, and furthers the objectives of Section 6(b)(5) of the Act \7\ in particular, in that it is designed to protect investors and the public interest by improving the readability of a lengthy and complicated rule. The Exchange believes that the proposed headings and merging of commentary language into the main body of the rule should prevent confusion. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. Because the proposal merely reorganizes a rule, it has no impact on either inter-market or intra- market competition. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing 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)(iii) of the Act \8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(a)(iii). \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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 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 Number SR-Phlx-2016-07 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-Phlx-2016-07. 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-Phlx-2016-07, and should be submitted on or before February 24, 2016. [[Page 5798]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-01925 Filed 2-2-16; 8:45 am] BILLING CODE 8011-01-P
![5796 Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices
equitable allocation of reasonable dues, C. Self-Regulatory Organization’s communications relating to the
fees, and other charges among its Permit Statement on Comments on the proposed rule change between the
Holders and other persons using its Proposed Rule Change Received From Commission and any person, other than
facilities. Additionally, the Exchange Members, Participants, or Others those that may be withheld from the
believes the proposed rule change is The Exchange neither solicited nor public in accordance with the
consistent with the Section 6(b)(5) 6 received comments on the proposed provisions of 5 U.S.C. 552, will be
requirement that the rules of an rule change. available for Web site viewing and
exchange not be designed to permit printing in the Commission’s Public
unfair discrimination between III. Date of Effectiveness of the
Proposed Rule Change and Timing for Reference Room, 100 F Street NE.,
customers, issuers, brokers, or dealers. Washington, DC 20549, on official
The Exchange believes the proposed Commission Action
business days between the hours of
fee change is reasonable because it The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
would help the Exchange offset effective pursuant to Section 19(b)(3)(A) filing also will be available for
increased regulatory costs but would not of the Act 8 and paragraph (f) of Rule
inspection and copying at the principal
result in total regulatory revenue 19b–4 9 thereunder. At any time within
60 days of the filing of the proposed rule office of the Exchange. All comments
exceeding total regulatory costs.
change, the Commission summarily may received will be posted without change;
Moreover, the Exchange believes the
temporarily suspend such rule change if the Commission does not edit personal
ORF ensures fairness by assessing
it appears to the Commission that such identifying information from
higher fees to those Permit Holders that
require more Exchange regulatory action is necessary or appropriate in the submissions. You should submit only
services based on the amount of public interest, for the protection of information that you wish to make
customer options business they investors, or otherwise in furtherance of available publicly. All submissions
conduct. Regulating customer trading the purposes of the Act. If the should refer to File Number SR–C2–
activity is much more labor intensive Commission takes such action, the 2016–001 and should be submitted on
and requires greater expenditure of Commission will institute proceedings or before February 24, 2016.
human and technical resources than to determine whether the proposed rule For the Commission, by the Division of
regulating non-customer trading change should be approved or Trading and Markets, pursuant to delegated
activity, which tends to be more disapproved. authority.10
automated and less labor-intensive. As a IV. Solicitation of Comments Robert W. Errett,
result, the costs associated with
Interested persons are invited to Deputy Secretary.
administering the customer component
of the Exchange’s overall regulatory submit written data, views and [FR Doc. 2016–01931 Filed 2–2–16; 8:45 am]
program are materially higher than the arguments concerning the foregoing, BILLING CODE 8011–01–P
costs associated with administering the including whether the proposed rule
non-customer component (e.g., Permit change is consistent with the Act.
Holder proprietary transactions) of its Comments may be submitted by any of SECURITIES AND EXCHANGE
regulatory program.7 The Exchange the following methods: COMMISSION
believes the proposed fee change is Electronic Comments
equitable and not unfairly • Use the Commission’s Internet [Release No. 34–76984; File No. SR–Phlx–
discriminatory in that it is charged to all comment form (http://www.sec.gov/ 2016–07]
Permit Holders on all their transactions rules/sro.shtml); or
that clear in the customer range at the Self-Regulatory Organizations;
• Send an email to rule-comments@
OCC. sec.gov. Please include File Number SR– NASDAQ OMX PHLX LLC; Notice of
C2–2016–001 on the subject line. Filing and Immediate Effectiveness of
B. Self-Regulatory Organization’s Proposed Rule Change to Make Minor
Statement on Burden on Competition Paper Comments Changes to Rule 1064, Crossing,
C2 does not believe that the proposed • Send paper comments in triplicate Facilitation and Solicited Orders
rule change will impose any burden on to Secretary, Securities and Exchange
competition that is not necessary or Commission, 100 F Street NE., January 28, 2016.
appropriate in furtherance of the Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
purposes of the Act, because it applies All submissions should refer to File Securities Exchange Act of 1934
to all Permit Holders. The proposed Number SR–C2–2016–001. This file (‘‘Act’’),1 and Rule 19b–4 thereunder,2
ORF is comparable to fees charged by number should be included on the notice is hereby given that on January
other options exchanges for the same or subject line if email is used. To help the 14, 2016, NASDAQ OMX PHLX LLC
similar service. The Exchange believes Commission process and review your (‘‘Phlx’’ or ‘‘Exchange’’) filed with the
any burden on competition imposed by comments more efficiently, please use Securities and Exchange Commission
the proposed rule change is outweighed only one method. The Commission will (‘‘SEC’’ or ‘‘Commission’’) the proposed
by the need to help the Exchange post all comments on the Commission’s rule change as described in Items I, II,
adequately fund its regulatory activities Internet Web site (http://www.sec.gov/ and III below, which Items have been
to ensure compliance with the Exchange rules/sro.shtml). Copies of the prepared by the Exchange. The
mstockstill on DSK4VPTVN1PROD with NOTICES
Act. submission, all subsequent Commission is publishing this notice to
amendments, all written statements solicit comments on the proposed rule
6 15 U.S.C. 78f(b)(5). with respect to the proposed rule change from interested persons.
7 Ifthe Exchange changes its method of funding change that are filed with the
regulation or if circumstances otherwise change in
the future, the Exchange may decide to modify the
Commission, and all written
10 17 CFR 200.30–3(a)(12).
ORF or assess a separate regulatory fee on Permit
8 15 1 15 U.S.C. 78s(b)(1).
Holder proprietary transactions if the Exchange U.S.C. 78s(b)(3)(A).
deems it advisable. 9 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4.
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![5798 Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices
For the Commission, by the Division of The Exchange has prepared summaries, correlated to broad equity or fixed
Trading and Markets, pursuant to delegated set forth in sections A, B, and C below, income market returns. According to the
authority.10 of the most significant parts of such Registration Statement, the Fund seeks
Robert W. Errett, statements. to achieve its investment objective by
Deputy Secretary. using a quantitative, rules-based
A. Self-Regulatory Organization’s
[FR Doc. 2016–01925 Filed 2–2–16; 8:45 am] investment strategy designed to provide
Statement of the Purpose of, and the
BILLING CODE 8011–01–P returns that correspond to the
Statutory Basis for, the Proposed Rule
performance of the S&P 500 Dynamic
Change
VEQTOR Index (the ‘‘Benchmark’’). The
SECURITIES AND EXCHANGE 1. Purpose Registration Statement also stated that
COMMISSION The Commission previously approved the allocation among the Fund’s
listing and trading on the Exchange of investments generally will approximate
[Release No. 34–76981; File No. SR–
NYSEArca–2016–20] shares (‘‘Shares’’) of the Fund, a series the allocation among the components of
of the PowerShares Actively Managed the Benchmark.
Self-Regulatory Organizations; NYSE Exchange-Traded Fund Trust (the The Adviser now represents that,
Arca, Inc.; Notice of Filing and ‘‘Trust’’),4 under NYSE Arca Equities rather than employing a quantitative,
Immediate Effectiveness of Proposed Rule 8.600, which governs the listing rules-based strategy designed to provide
Rule Change To Reflect Changes to and trading of Managed Fund Shares. returns that correspond to the
the Investment Strategy for the Shares of the Fund have commenced performance of the Benchmark, the
PowerShares S&P 500® Downside listing and trading on the Exchange. Fund will use a quantitative, rules-
Hedged Portfolio The Shares are offered by the Trust, based strategy that is designed to
a statutory trust organized under the outperform the Benchmark rather than
January 28, 2016. laws of the State of Delaware and match it.
Pursuant to Section 19(b)(1) 1 of the registered with the Commission as an The Adviser will continue to invest
Securities Exchange Act of 1934 (the open-end management investment the Fund in the same instruments as are
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 company.5 The investment advisor to contained in the Benchmark, as
notice is hereby given that, on January the Fund is Invesco PowerShares discussed in the Prior Release. However,
26, 2016, NYSE Arca, Inc. (the Capital Management LLC (the the Adviser now represents that the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with ‘‘Adviser’’). Fund will use portfolio management
the Securities and Exchange In this proposed rule change, the strategies in seeking to achieve its
Commission (the ‘‘Commission’’) the Exchange proposes to reflect changes to investment objective that allocate the
proposed rule change as described in the investment strategy that the Adviser Fund’s assets in a manner that may not
Items I and II below, which Items have utilizes in seeking to achieve the Fund’s correspond to the Benchmark. The
been prepared by the self-regulatory investment objective, as described Adviser also now represents that, going
organization. The Commission is below.6 forward, the Fund will seek to
publishing this notice to solicit The Prior Release stated that, outperform the Benchmark rather than
comments on the proposed rule change according to the Registration Statement, match it.
from interested persons. the Fund is an actively managed The Exchange notes that the Prior
exchange-traded fund that will seek to Release stated that, according to the
I. Self-Regulatory Organization’s Registration Statement, the Fund may
achieve positive total returns in rising or
Statement of the Terms of Substance of invest a portion of its assets in high-
falling markets that are not directly
the Proposed Rule Change quality money market instruments,
The Exchange proposes a rule change 4 See Securities Exchange Act Release No. 68158 cash, and cash equivalents to provide
to reflect changes to the investment (Nov. 5, 2012), 77 FR 67412 (Nov. 9, 2012) (SR– liquidity, to collateralize its futures
strategy for the PowerShares S&P 500® NYSEArca–2012–101) (‘‘Prior Order’’). See also contracts investments, or to track the
Securities Exchange Act Release No. 67881 (Sept. Benchmark during times when the
Downside Hedged Portfolio (the 18, 2012), 77 FR 58889 (Sept. 24, 2012) (SR–
‘‘Fund’’). The proposed rule change is NYSEArca–2012–101) (‘‘Prior Notice,’’ and together Benchmark moves its entire allocation
available on the Exchange’s Web site at with the Prior Order, the ‘‘Prior Release’’). to cash. The Exchange also proposes to
www.nyse.com, at the principal office of
5 The Trust is registered under the Investment change this representation to state that
Company Act of 1940 (15 U.S.C. 80a–1) (‘‘1940 the Fund may invest a portion of its
the Exchange, and at the Commission’s Act’’). The Trust intends to file a prospectus
Public Reference Room. supplement with the Commission or a post-effective
assets in high-quality money market
amendment to its registration statement on Form N– instruments, cash, and cash equivalents
II. Self-Regulatory Organization’s 1A under the Securities Act of 1933 (15 U.S.C. 77a) to provide liquidity, to collateralize its
Statement of the Purpose of, and (‘‘Securities Act’’), and under the 1940 Act relating futures contracts investments, or during
Statutory Basis for, the Proposed Rule to the Fund (File Nos. 333–147622 and 811–22148)
(‘‘Registration Statement’’) to reflect the changes periods of heightened volatility when
Change requested in the proposed rule change upon the Adviser believes that it is in the best
In its filing with the Commission, the effectiveness of the rule change. The description of interest of the Fund to do so. Because
the operation of the Trust and the Fund herein will the Fund, going forward, would seek to
self-regulatory organization included be reflected in any such filing. In addition, the
statements concerning the purpose of, Commission has issued an order granting certain outperform rather than match the
and basis for, the proposed rule change exemptive relief to the Trust under the1940 Act. Benchmark, the Fund would no longer
and discussed any comments it received See Investment Company Act Release No. 28171 utilize high quality money market
(Feb. 27, 2008) (File No. 812–13386) (‘‘Exemptive
mstockstill on DSK4VPTVN1PROD with NOTICES
on the proposed rule change. The text Order’’).
instruments, cash and cash equivalents
of those statements may be examined at 6 The changes described herein will be effective for the purpose of tracking the
the places specified in Item IV below. contingent upon filing of a prospectus supplement Benchmark.
or upon effectiveness of the Trust’s most recent The Adviser represents that there is
10 17
post-effective amendment to its Registration no change to the Fund’s investment
CFR 200.30–3(a)(12). Statement. See note 5, supra. The Adviser
1 15 U.S.C. 78s(b)(1). represents that the Adviser will not implement the
objective. The Fund will continue to
2 15 U.S.C. 78a.
changes described herein until the instant proposed invest in the securities and financial
3 17 CFR 240.19b–4. rule change is operative. instruments identified in the Prior
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Document Created: 2016-02-03 00:40:20
Document Modified: 2016-02-03 00:40:20
| 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 5796 |
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