81_FR_59423 81 FR 59256 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change to BZX Rule 14.11(e)(4), Commodity-Based Trust Shares, To List and Trade Winklevoss Bitcoin Shares Issued by the Winklevoss Bitcoin Trust

81 FR 59256 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change to BZX Rule 14.11(e)(4), Commodity-Based Trust Shares, To List and Trade Winklevoss Bitcoin Shares Issued by the Winklevoss Bitcoin Trust

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 167 (August 29, 2016)

Page Range59256-59257
FR Document2016-20576

Federal Register, Volume 81 Issue 167 (Monday, August 29, 2016) 
[Federal Register Volume 81, Number 167 (Monday, August 29, 2016)]
[Notices]
[Pages 59256-59257]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20576]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78653; File No. SR-BatsBZX-2016-30]


Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of 
Designation of a Longer Period for Commission Action on Proposed Rule 
Change to BZX Rule 14.11(e)(4), Commodity-Based Trust Shares, To List 
and Trade Winklevoss Bitcoin Shares Issued by the Winklevoss Bitcoin 
Trust

August 23, 2016.
    On June 30, 2016, Bats BZX Exchange, Inc. (``BZX'') filed with the 
Securities and Exchange Commission (``Commission''), pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade 
Winklevoss Bitcoin Shares issued by the Winklevoss Bitcoin Trust under 
BZX Rule 14.11(e)(4). The proposed rule change was published for 
comment in the Federal Register on July 14, 2016.\3\ The Commission has 
received five comment letters on the proposed rule change.\4\
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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. 78262 (Jul. 8, 
2016), 81 FR 45554.
    \4\ See Letters from Robert D. Miller, VP Technical Services, 
RKL eSolutions (Jul. 11, 2016); Jorge Stolfi, Full Professor, 
Institute of Computing UNICAMP (Jul. 13, 2016); Guillaume 
Lethuillier (Jul. 26, 2016); Michael B. Casey (Jul. 31, 2016); and 
Erik A. Aronesty, Sr. Software Engineer, Bloomberg LP (Aug. 2, 
2016). All comments on the proposed rule change are available on the 
Commission's Web site at: https://www.sec.gov/comments/sr-batsbzx-2016-30/batsbzx201630.shtml.
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    Section 19(b)(2) of the Act \5\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
Commission is extending this 45-day time period. The Commission finds 
that it is appropriate to designate a longer period within which to 
take action on the proposed rule change so that it has sufficient time 
to consider the proposed rule change.
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    \5\ 15 U.S.C. 78s(b)(2).
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    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\6\

[[Page 59257]]

designates October 12, 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 (File Number SR-BatsBZX-
2016-30).
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    \6\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(31).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-20576 Filed 8-26-16; 8:45 am]
 BILLING CODE 8011-01-P

59256 Federal Register / Vol. 81, No. 167 / Monday, August 29, 2016 / Notices parties to a comprehensive surveillance liquidity if, through a change in values, SECURITIES AND EXCHANGE sharing agreement with the Exchange.28 net assets, or other circumstances, more COMMISSION (5) Prior to the commencement of than 15% of such Fund’s net assets are [Release No. 34–78653; File No. SR– trading, the Exchange will inform its held in illiquid assets. Illiquid assets BatsBZX–2016–30] members in an Information Circular of include securities subject to contractual the special characteristics and risks or other restrictions on resale and other Self-Regulatory Organizations; Bats associated with trading the Shares. instruments that lack readily available BZX Exchange, Inc.; Notice of Specifically, the Information Circular markets as determined in accordance Designation of a Longer Period for for each Fund will discuss the with Commission staff guidance. Commission Action on Proposed Rule following: (1) The procedures for (11) A minimum of 100,000 Shares Change to BZX Rule 14.11(e)(4), purchases and redemptions of Shares in will be outstanding at the Commodity-Based Trust Shares, To Creation Units (and that Shares are not commencement of trading on the List and Trade Winklevoss Bitcoin individually redeemable); (2) Nasdaq Exchange.32 Shares Issued by the Winklevoss Rule 2111A, which imposes suitability (12) All statements and Bitcoin Trust obligations on Nasdaq members with representations made in this filing respect to recommending transactions in regarding (a) the description of the August 23, 2016. the Shares to customers; (3) how portfolios, (b) limitations on portfolio On June 30, 2016, Bats BZX Exchange, information regarding the Intraday holdings or reference assets, or (c) the Inc. (‘‘BZX’’) filed with the Securities Indicative Value and the Disclosed applicability of Exchange rules and and Exchange Commission Portfolio is disseminated; (4) the risks surveillance procedures shall constitute (‘‘Commission’’), pursuant to Section involved in trading the Shares during continued listing requirements for 19(b)(1) of the Securities Exchange Act the Pre Market and Post Market Sessions listing the Shares on the Exchange. In of 1934 (‘‘Act’’) 1 and Rule 19b–4 when an updated Intraday Indicative addition, the issuer has represented to thereunder,2 a proposed rule change to Value will not be calculated or publicly the Exchange that it will advise the list and trade Winklevoss Bitcoin Shares disseminated; (5) the requirement that Exchange of any failure by the Funds to issued by the Winklevoss Bitcoin Trust members deliver a prospectus to comply with the continued listing under BZX Rule 14.11(e)(4). The investors purchasing newly issued requirements, and, pursuant to its proposed rule change was published for Shares prior to or concurrently with the obligations under Section 19(g)(1) of the comment in the Federal Register on July confirmation of a transaction; and (6) Exchange Act, the Exchange will 14, 2016.3 The Commission has received trading information. The Information monitor for compliance with the five comment letters on the proposed Circular will also discuss any continued listing requirements. If a rule change.4 exemptive, no-action and interpretive Fund is not in compliance with the Section 19(b)(2) of the Act 5 provides relief granted by the Commission from applicable listing requirements, the that, within 45 days of the publication any rules under the Exchange Act.29 Exchange will commence delisting of notice of the filing of a proposed rule (6) For initial and continued listing, procedures under the Nasdaq 5800 change, or within such longer period up each Fund must be in compliance with Series.33 to 90 days as the Commission may Rule 10A–3 under the Exchange Act.30 This approval order is based on all of designate if it finds such longer period (7) Shares of Closed-End Funds, ETFs, the Exchange’s representations, to be appropriate and publishes its and ETNs held by a Fund will trade in including those set forth above and in reasons for so finding or as to which the markets that are members of ISG or are the Notice. self-regulatory organization consents, parties to a comprehensive surveillance For the reasons discussed above, the the Commission shall either approve the sharing agreement with the Exchange. Commission finds that the proposed proposed rule change, disapprove the (8) The Funds will not invest in rule change, as modified by Amendment proposed rule change, or institute derivative instruments. No. 1, is consistent with the proceedings to determine whether the (9) While the Funds may invest in requirements of the Exchange Act.34 proposed rule change should be inverse ETFs and ETNs, the Funds will disapproved. The Commission is not invest in leveraged or inverse IV. Conclusion extending this 45-day time period. The leveraged ETFs or ETNs.31 IT IS THEREFORE ORDERED, Commission finds that it is appropriate (10) Each Fund may hold up to an pursuant to Section 19(b)(2) of the to designate a longer period within aggregate amount of 15% of its net Exchange Act,35 that the proposed rule which to take action on the proposed assets in illiquid assets (calculated at change (SR–NASDAQ–2016–071), as rule change so that it has sufficient time the time of investment), deemed illiquid modified by Amendment No. 1 thereto, to consider the proposed rule change. by the Adviser. Each Fund will monitor be, and it hereby is, approved. Accordingly, the Commission, its portfolio liquidity on an ongoing For the Commission, by the Division of pursuant to Section 19(b)(2) of the Act,6 basis to determine whether, in light of Trading and Markets, pursuant to delegated current circumstances, an adequate authority.36 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. level of liquidity is being maintained, Robert W. Errett, 3 See Securities Exchange Act Release No. 78262 and will consider taking appropriate Deputy Secretary. (Jul. 8, 2016), 81 FR 45554. steps in order to maintain adequate [FR Doc. 2016–20573 Filed 8–26–16; 8:45 am] 4 See Letters from Robert D. Miller, VP Technical BILLING CODE 8011–01–P Services, RKL eSolutions (Jul. 11, 2016); Jorge 28 See Notice, supra note 4. Stolfi, Full Professor, Institute of Computing jstallworth on DSK7TPTVN1PROD with NOTICES 29 Additionally, the Information Circular for each UNICAMP (Jul. 13, 2016); Guillaume Lethuillier 32 See id. at 34411. Fund will reference that such Fund is subject to (Jul. 26, 2016); Michael B. Casey (Jul. 31, 2016); and 33 See id. at 34412. various fees and expenses described in the Erik A. Aronesty, Sr. Software Engineer, Bloomberg Registration Statement. The Information Circular for 34 The Commission notes that the comment letter, LP (Aug. 2, 2016). All comments on the proposed each Fund will also disclose the trading hours of supra note 5, does not raise any specific concerns rule change are available on the Commission’s Web the Shares of such Fund and the applicable NAV about whether any aspect of the proposed rule site at: https://www.sec.gov/comments/sr-batsbzx- Calculation Time for the Shares. See id. change is inconsistent with the Exchange Act. 2016-30/batsbzx201630.shtml. 30 17 CFR 240.10A–3. 35 15 U.S.C. 78s(b)(2). 5 15 U.S.C. 78s(b)(2). 31 See notes 11 and 12, supra. 36 17 CFR 200.30–3(a)(12). 6 Id. VerDate Sep<11>2014 15:27 Aug 26, 2016 Jkt 238001 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 E:\FR\FM\29AUN1.SGM 29AUN1

Federal Register / Vol. 81, No. 167 / Monday, August 29, 2016 / Notices 59257 designates October 12, 2016, as the date Commission finds that it is appropriate of the Fund, and (ii) a change to the by which the Commission shall either to designate a longer period within name and ownership of the benchmark approve or disapprove or institute which to take action on the proposed index applicable to the Fund. The proceedings to determine whether to rule change so that it has sufficient time shares of the Fund are collectively disapprove the proposed rule change to consider the proposed rule change. referred to herein as the ‘‘Shares.’’ (File Number SR–BatsBZX–2016–30). Accordingly, the Commission, The text of the proposed rule change For the Commission, by the Division of pursuant to Section 19(b)(2) of the Act,5 is available at http:// Trading and Markets, pursuant to delegated designates October 10, 2016, as the date nasdaq.cchwallstreet.com/, at Nasdaq’s authority.7 by which the Commission shall either principal office, and at the Robert W. Errett, approve or disapprove or institute Commission’s Public Reference Room. Deputy Secretary. proceedings to determine whether to II. Self-Regulatory Organization’s [FR Doc. 2016–20576 Filed 8–26–16; 8:45 am] disapprove the proposed rule change Statement of the Purpose of, and (File Number SR–BatsBZX–2016–26). Statutory Basis for, the Proposed Rule BILLING CODE 8011–01–P For the Commission, by the Division of Change Trading and Markets, pursuant to delegated authority.6 In its filing with the Commission, SECURITIES AND EXCHANGE Nasdaq included statements concerning COMMISSION Robert W. Errett, the purpose of, and basis for, the Deputy Secretary. [Release No. 34–78640; File No. SR– proposed rule change and discussed any [FR Doc. 2016–20571 Filed 8–26–16; 8:45 am] BatsBZX–2016–26] comments it received on the proposed BILLING CODE 8011–01–P rule change. The text of these statements Self-Regulatory Organizations; Bats may be examined at the places specified BZX Exchange, Inc.; Notice of in Item IV below. Nasdaq has prepared Designation of a Longer Period for SECURITIES AND EXCHANGE summaries, set forth in Sections A, B, Commission Action on Proposed Rule COMMISSION and C below, of the most significant Change to BZX Rule 14.11(d) To Add [Release No. 34–78654; File No. SR– aspects of such statements. the EURO STOXX 50® Volatility NASDAQ–2016–117] Futures to the Definition of Futures A. Self-Regulatory Organization’s Reference Asset Self-Regulatory Organizations; The Statement of the Purpose of, and NASDAQ Stock Market LLC; Notice of Statutory Basis for, the Proposed Rule August 23, 2016. Filing and Immediate Effectiveness of Change On June 23, 2016, Bats BZX Exchange, Proposed Rule Change Relating to the 1. Purpose Inc. (‘‘BZX’’) filed with the Securities Elkhorn Commodity Rotation Strategy and Exchange Commission ETF of the Elkhorn ETF Trust The Commission previously approved (‘‘Commission’’), pursuant to Section the listing and trading of the Shares 19(b)(1) of the Securities Exchange Act August 23, 2016. under Nasdaq Rule 5735, which governs of 1934 (‘‘Act’’) 1 and Rule 19b–4 Pursuant to Section 19(b)(1) of the the listing and trading of Managed Fund thereunder,2 a proposed rule change to Securities Exchange Act of 1934 Shares on the Exchange.3 However, no amend BZX Rule 14.11(d) by adding the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Shares are currently listed and traded EURO STOXX 50® Volatility notice is hereby given that on August on the Exchange. The Exchange believes (VSTOXX®) Futures to the definition of 11, 2016, The NASDAQ Stock Market the proposed rule change reflects no Futures Reference Asset. The proposed LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed significant issues not previously rule change was published for comment with the Securities and Exchange addressed in the Prior Release. in the Federal Register on July 12, Commission (‘‘SEC’’ or ‘‘Commission’’) The Fund is an actively managed 2016.3 The Commission has received no the proposed rule change as described exchange-traded fund (‘‘ETF’’). The comment letters on the proposed rule in Items I and II below, which Items Shares will be offered by the Trust, change. have been prepared by Nasdaq. The which was organized as a Massachusetts Section 19(b)(2) of the Act 4 provides Commission is publishing this notice to business trust on December 12, 2013. that, within 45 days of the publication solicit comments on the proposed rule The Trust, which is registered with the of notice of the filing of a proposed rule change from interested persons. Commission as an investment company, change, or within such longer period up has filed a registration statement on I. Self-Regulatory Organization’s Form N–1A (‘‘Registration Statement’’) to 90 days as the Commission may Statement of the Terms of Substance of designate if it finds such longer period relating to the Fund with the the Proposed Rule Change Commission.4 to be appropriate and publishes its reasons for so finding or as to which the Nasdaq proposes a rule change self-regulatory organization consents, relating to the Elkhorn Commodity 3 The Commission approved Nasdaq Rule 5735 Rotation Strategy ETF (formerly, the (formerly Nasdaq Rule 4420(o)) in Securities the Commission shall either approve the Exchange Act Release No. 57962 (June 13, 2008), 73 proposed rule change, disapprove the Elkhorn Dorsey Wright Commodity FR 35175 (June 20, 2008) (SR–NASDAQ–2008–039). proposed rule change, or institute Rotation Portfolio) (the ‘‘Fund’’) of The Commission previously approved the listing proceedings to determine whether the Elkhorn ETF Trust (the ‘‘Trust’’), the and trading of the Shares of the Fund. See shares of which have been approved by Securities Exchange Act Release No. 77688 (April proposed rule change should be 22, 2016), 81 FR 25467 (April 28, 2016) (SR– disapproved. The Commission is the Commission for listing and trading NASDAQ–2016–030) (‘‘Prior Order’’). See also jstallworth on DSK7TPTVN1PROD with NOTICES extending this 45-day time period. The under Nasdaq Rule 5735 (‘‘Managed Securities Exchange Act Release No. 77338 (March Fund Shares’’). The proposed rule 10, 2016), 81 FR 14142 (March 16, 2016) (SR– 7 17 change reflects (i) a change to the name NASDAQ–2016–030) (‘‘Prior Notice,’’ and together CFR 200.30–3(a)(31). with the Prior Order, the ‘‘Prior Release’’). 1 15 U.S.C. 78s(b)(1). 4 See Registration Statement on Form N–1A for 2 17 CFR 240.19b–4. 5 Id. the Trust, dated February 18, 2016 (File Nos. 333– 3 See Securities Exchange Act Release No. 78236 6 17 CFR 200.30–3(a)(31). 201473 and 811–22926) (the ‘‘Registration (Jul. 6, 2016), 81 FR 45185. 1 15 U.S.C. 78s(b)(1). Statement’’). The descriptions of the Shares and the 4 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4. Continued VerDate Sep<11>2014 15:27 Aug 26, 2016 Jkt 238001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\29AUN1.SGM 29AUN1


Document Created: 2016-08-26 23:50:00
Document Modified: 2016-08-26 23:50:00
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 59256 
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