81 FR 60756 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1042A, Exercise of Options Contracts and Options Floor Procedure Advice G-1, Index Option Exercise Advice Forms
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 171 (September 2, 2016)
Federal Register Volume 81, Issue 171 (September 2, 2016)
| Page Range | 60756-60758 | |
| FR Document | 2016-21131 |
[Federal Register Volume 81, Number 171 (Friday, September 2, 2016)] [Notices] [Pages 60756-60758] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-21131] [[Page 60756]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78714; File No. SR-Phlx-2016-84] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1042A, Exercise of Options Contracts and Options Floor Procedure Advice G-1, Index Option Exercise Advice Forms August 29, 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 August 22, 2016, NASDAQ PHLX LLC (``Phlx'' or ``Exchange'') filed with the Securities and Exchange Commission (``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 Rule 1042A, Exercise of Options Contracts and Options Floor Procedure Advice G-1, Index Option Exercise Advice Forms The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqphlx.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 Exchange is amending Rule 1042A to provide additional clarity to member organizations and add additional requirements regarding the procedures to be followed in order to exercise American style index option contracts. Currently, Rule 1042A states that ``[a] memorandum to exercise any American style stock index option contract, issued or to be issued in a customer, market maker or firm account at the Options Clearing Corporation must be received or prepared by the member organization no later than five minutes after the close of trading on that day and must be time-stamped at the time it is received or prepared.'' \3\ Commentary .01 further states that ``[a]ll memoranda of exercise instructions prepared pursuant to this Rule 1042A are subject to Securities and Exchange Commission rules 17a-3(a)(6) and 17a-4(b).'' However, the rule does not state what a ``memorandum of exercise'' is. Nor does it state from whom the member organization may ``receive'' it. --------------------------------------------------------------------------- \3\ See existing Rule 1042A(i). --------------------------------------------------------------------------- Rule 1042A also requires a member or member organization to that intends to submit an ``exercise notice'' for any American style option contract(s) on behalf of a customer, specialist, Registered Options Trader, or firm account to deliver an ``Exercise Advice'' on a form prescribed by the Exchange, to a place designated by the Exchange, no later than five minutes after the close of trading.\4\ However, the rule does not state what an ``Exercise Advice'' or an ``exercise notice'' is, or whether they may be the same thing or a different thing, or how they relate to the ``memorandum to exercise'' (though both the memorandum to exercise and the exercise advice are due no later than five minutes after the close of trading). The Exchange believes therefore that the current rule is susceptible to misinterpretation and confusion on the part of the reader. --------------------------------------------------------------------------- \4\ See existing Rule 1042A(ii). --------------------------------------------------------------------------- The Exchange has consequently determined to provide additional clarity to member organizations regarding procedures to be followed in order to exercise an American-style index option contract. It proposes to delete all rule text currently found in section (a) of Rule 1042A with the exception of the first part of the first sentence, which reads simply and clearly that ``[w]ith respect to index option contracts, clearing members are required to follow the procedures of the Options Clearing Corporation for tendering exercise notices''. In place of the deleted text, the Exchange proposes to adopt several new provisions that clearly articulate the procedures to be followed. The new language specifies that Clearing Members must follow the procedures of the Options Clearing Corporation (``OCC'') when exercising American-style cash-settled index options contracts issued or to be issued in any account at OCC. Member organizations must also observe certain procedures with respect to American-style cash-settled index options. Specifically, for all contracts exercised by the member organization or by any customer of the member organization, an ``exercise advice'' must be delivered by the member organization in such form or manner prescribed by the Exchange no later than five (5) minutes after the close of trading on that day.\5\ Subsequent to the delivery of an ``exercise advice,'' should the member organization or a customer of the member organization determine not to exercise all or part of the advised contracts, the member organization must also deliver an ``advice cancel'' in such form or manner prescribed by the Exchange no later than five (5) minutes after the close of trading on that day.\6\ These procedures would not apply on the business day prior to expiration in a series expiring on a day other than a business day, or on the expiration day in series expiring on a business day.\7\ --------------------------------------------------------------------------- \5\ See proposed Rule 1042A(i). An exercise advice is a notification to the Exchange of a member's intention to exercise one or more options contracts. \6\ See proposed Rule 1042A(ii). \7\ See proposed Rule 1042A(vii). Existing Rule 1042A(b) is being deleted as redundant. --------------------------------------------------------------------------- The new rule language also adds some new provisions not covered by the existing rule text. It provides that the Exchange may determine to extend the applicable deadline for the delivery of ``exercise advice'' and ``advice cancel'' notifications pursuant to this paragraph if unusual circumstances are present.\8\ It prohibits member organizations from time stamping or submitting an ``exercise advice'' prior to the purchase of the contracts to be exercised if the member organization knew or had reason to know that the contracts had not yet been purchased.\9\ The new language adds a provision specifying that the failure of any member organization to follow the procedures in the rule could result in the assessment of a fine, which may include but is not limited to disgorgement of potential [[Page 60757]] economic gain obtained or loss avoided by the subject exercise, as determined by the Exchange.\10\ The new language also states that preparing or submitting an ``exercise advice'' or ``advice cancel'' after the applicable deadline on the basis of material information released after such deadline, in addition to constituting a violation of the Rule, is activity inconsistent with just and equitable principles of trade.\11\ --------------------------------------------------------------------------- \8\ See proposed Rule 1042A(iii). \9\ See proposed Rule 1042A(iv). \10\ See proposed Rule 1042A(v). Exchange Rule 960.1 provides that any member alleged to have violated rules of the Exchange shall be subject to the disciplinary jurisdiction of the Exchange, and after notice and opportunity for a hearing may be appropriately disciplined by expulsion, suspension, fine, censure, limitation or termination as to activities, functions, operations, or association with a member or member organization, or any other fitting sanction in accordance with the provisions of the Exchange's disciplinary rules. \11\ See proposed Rule 1042A(vi). --------------------------------------------------------------------------- The new language requires each member organization to prepare a memorandum of every exercise instruction received showing by time stamp the time when such instruction was so received. It provides that such memoranda shall be subject to the requirements of Commission Rule 17a- 4(b).\12\ Finally, the new language requires each member organization to establish fixed procedures to ensure secure time stamps in connection with their electronic systems employed for the recording of submissions to exercise or not exercise expiring options.\13\ --------------------------------------------------------------------------- \12\ See proposed Rule 1042A(viii). The Exchange is deleting existing Commentary .01 of Rule 1042A as redundant. The Exchange believes that including the requirement in the text of the rule rather than as a ``Commentary'' is a preferable approach in terms of organization and presentation of the rule. Although the proposed language does not contain the requirement that memoranda of exercise instructions are subject to Commission Rule 17a-3(a)(6), the Exchange notes that the rule upon which its proposal is based, NOM Rulebook chapter VIII, Exercises and Deliveries, section 1, Exercise of Options Contracts, Supplementary Material .02, does not contain this requirement. The Exchange seeks to conform its Rule 1042A to the counterpart NOM rule in this respect. \13\ See proposed Rule 1042A(ix). --------------------------------------------------------------------------- The Exchange also proposes to amend Options Floor Procedure Advice (``OFPA'') G-1 by conforming it to the requirements of updated Rule 1042A. References to a specific ``Exercise Advice Form'' are replaced with general references to exercise advices to eliminate any suggestion that a specified form must be used in order to comply with Rule 1042A. The Exchange intends that any written evidence reflecting that Rule 1042A's requirements have been met will be sufficient to constitute an exercise advice.\14\ The amendments also eliminate an outdated reference to C/MACS, which is no longer in use at OCC,\15\ and modify the OFPA to reflect that expiration now typically occurs on a business day rather than on a Saturday. --------------------------------------------------------------------------- \14\ The Exchange currently does not require the use of a specific form of exercise advice. Nonetheless, certain floor-based members currently use a ``Phlx Index Option Exercise Advice Form.'' The Exchange has attached as Exhibit 3 a revised version of the form, updated to conform to this proposed rule change. These updates include (1) the addition of a statement that the rule does not apply in series expiring on a day other than a business day or on the expiration day in series expiring on a business day, (2) the deletion of capitalization of the terms memorandum of exercise and exercise advice, as these are not defined terms in the rule, (3) the addition of a reference to memorandum of exercise instructions, which is a term used in the rule, (4) the deletion of a statement that the form must be time stamped ``contemporaneously with its submission'' and addition of new language that conforms to the rule, (5) the adjustment of a cross reference to the rule, in order for the form to refer to the correct rule section required by the context, and (6) the updating of the name of the Exchange from Philadelphia Stock Exchange to NASDAQ OMX PHLX. Members may continue to use the form, updated as reflected in Exhibit 3, if they choose to do so. Members will also able to continue to fill the Rule 1042A exercise advice requirements by sending an email to the Exchange, or by providing the required exercise advice notification in any other manner directed by the Exchange. The Exchange accepts the time indicated on an email as satisfaction of the time stamp requirement. \15\ According to OCC, C/MACS was an on-line, menu-driven system that allowed OCC member firms to access or input trade information directly from or to OCC's clearing systems. See Securities Exchange Act Release No. 35982 (July 18, 1995), 60 FR 38072 (July 25, 1995), at footnote 6. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with section 6(b) of the Act \16\ in general, and furthers the objectives of section 6(b)(5) of the Act \17\ in particular, in that it is designed to promote just and equitable principles of trade, 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, by adding rules providing clear procedures concerning exercise of American index options. Rule 1042A is intended to provide for the maintenance of a level playing field between holders of long and short positions in expiring index options. After trading has ended on the final trading day before expiration, persons who are short the option have no way to close out their short positions. To put option holders on equal footing, the rule minimizes the time period in which a holder can exercise an index option after the close of trading on the last business day prior to expiration in series expiring on a day other than a business day or on the expiration day in series expiring on a business day. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78f(b). \17\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the introductory language of Rule 1042A as revised, as well as sections (i), (vii) and (viii) largely restate the existing rule, but in a much more clear and understandable way. New sections (ii) and (iii) provide, respectively, for the delivery of ``advice cancels'' if made on a timely basis and for the extension of applicable deadlines for delivery of exercise advices and advice cancel notifications in unusual circumstances. The advice cancel language codifies existing practice that is not spelled out in the current rule, and the rule providing for extension of deadlines provides the Exchange with flexibility to deal with unusual market circumstances in a way that is fair to market participants. New subsection (iv) clearly prohibits the preparation, time stamping or submitting an ``exercise advice'' prior to the purchase of the contracts to be exercised, if the member organization knew or had reason to know that the contracts had not yet been purchased. New sections (v) and (vi) articulate clearly that violation of Rule 1042A may result in consequences including disgorgement and that preparing or submitting an exercise advice or advice cancel after the applicable deadline on the basis of material information released after the deadline violates Rule 1042A and constitutes activity inconsistent with just and equitable principles of trade. These provisions should discourage lack of compliance with Rule 1042A. Finally, compliance should be enhanced by the adoption of section (ix), a new requirement to establish procedures to ensure secure time stamps for the recording of submissions to exercise or not exercise expiring options. The proposed amendments to OFPA G-1 are designed to promote just and equitable principles of trade and to protect investors and the public interest by conforming it to the requirements of updated Rule 1042A, eliminating potential confusion concerning a requirement that a specified form must be used in order to comply with Rule 1042A, eliminating an outdated reference to C/MACS, reflecting current practice that exercise advices may be delivered to Exchange staff in the trading crowd as well as at the Surveillance Post on the Exchange floor, and acknowledging that expiration now typically occurs on a business day rather than on a Saturday. 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 [[Page 60758]] necessary or appropriate in furtherance of the purposes of the Act because the rule provides additional detail and requirements relating to procedures for exercise of American index options that apply to all members equally. 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 \18\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\19\ --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(a)(iii). \19\ 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-2016-84 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-2016-84. 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-2016-84 and should be submitted on or before September 23, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-21131 Filed 9-1-16; 8:45 am] BILLING CODE 8011-01-P
![60756 Federal Register / Vol. 81, No. 171 / Friday, September 2, 2016 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s clearing members are required to follow
COMMISSION Statement of the Purpose of, and the procedures of the Options Clearing
Statutory Basis for, the Proposed Rule Corporation for tendering exercise
[Release No. 34–78714; File No. SR–Phlx– Change notices’’. In place of the deleted text, the
2016–84]
Exchange proposes to adopt several new
1. Purpose
provisions that clearly articulate the
The Exchange is amending Rule procedures to be followed.
Self-Regulatory Organizations;
1042A to provide additional clarity to The new language specifies that
NASDAQ PHLX LLC; Notice of Filing
member organizations and add Clearing Members must follow the
and Immediate Effectiveness of additional requirements regarding the procedures of the Options Clearing
Proposed Rule Change To Amend Rule procedures to be followed in order to Corporation (‘‘OCC’’) when exercising
1042A, Exercise of Options Contracts exercise American style index option American-style cash-settled index
and Options Floor Procedure Advice contracts. Currently, Rule 1042A states options contracts issued or to be issued
G–1, Index Option Exercise Advice that ‘‘[a] memorandum to exercise any in any account at OCC. Member
Forms American style stock index option organizations must also observe certain
contract, issued or to be issued in a procedures with respect to American-
August 29, 2016.
customer, market maker or firm account style cash-settled index options.
Pursuant to section 19(b)(1) of the at the Options Clearing Corporation Specifically, for all contracts exercised
Securities Exchange Act of 1934 must be received or prepared by the by the member organization or by any
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 member organization no later than five customer of the member organization,
notice is hereby given that on August minutes after the close of trading on that an ‘‘exercise advice’’ must be delivered
22, 2016, NASDAQ PHLX LLC (‘‘Phlx’’ day and must be time-stamped at the by the member organization in such
or ‘‘Exchange’’) filed with the Securities time it is received or prepared.’’ 3 form or manner prescribed by the
and Exchange Commission Commentary .01 further states that ‘‘[a]ll Exchange no later than five (5) minutes
(‘‘Commission’’) the proposed rule memoranda of exercise instructions after the close of trading on that day.5
change as described in Items I, II, and prepared pursuant to this Rule 1042A Subsequent to the delivery of an
III, below, which Items have been are subject to Securities and Exchange ‘‘exercise advice,’’ should the member
Commission rules 17a–3(a)(6) and 17a– organization or a customer of the
prepared by the Exchange. The
4(b).’’ However, the rule does not state member organization determine not to
Commission is publishing this notice to
what a ‘‘memorandum of exercise’’ is. exercise all or part of the advised
solicit comments on the proposed rule Nor does it state from whom the contracts, the member organization
change from interested persons. member organization may ‘‘receive’’ it. must also deliver an ‘‘advice cancel’’ in
I. Self-Regulatory Organization’s Rule 1042A also requires a member or such form or manner prescribed by the
Statement of the Terms of Substance of member organization to that intends to Exchange no later than five (5) minutes
the Proposed Rule Change submit an ‘‘exercise notice’’ for any after the close of trading on that day.6
American style option contract(s) on These procedures would not apply on
The Exchange proposes to amend behalf of a customer, specialist, the business day prior to expiration in
Rule 1042A, Exercise of Options Registered Options Trader, or firm a series expiring on a day other than a
Contracts and Options Floor Procedure account to deliver an ‘‘Exercise Advice’’ business day, or on the expiration day
Advice G–1, Index Option Exercise on a form prescribed by the Exchange, in series expiring on a business day.7
Advice Forms to a place designated by the Exchange, The new rule language also adds some
no later than five minutes after the close new provisions not covered by the
The text of the proposed rule change of trading.4 However, the rule does not existing rule text. It provides that the
is available on the Exchange’s Web site state what an ‘‘Exercise Advice’’ or an Exchange may determine to extend the
at http://nasdaqphlx.cchwallstreet ‘‘exercise notice’’ is, or whether they applicable deadline for the delivery of
.com/, at the principal office of the may be the same thing or a different ‘‘exercise advice’’ and ‘‘advice cancel’’
Exchange, and at the Commission’s thing, or how they relate to the notifications pursuant to this paragraph
Public Reference Room. ‘‘memorandum to exercise’’ (though if unusual circumstances are present.8 It
II. Self-Regulatory Organization’s both the memorandum to exercise and prohibits member organizations from
the exercise advice are due no later than time stamping or submitting an
Statement of the Purpose of, and
five minutes after the close of trading). ‘‘exercise advice’’ prior to the purchase
Statutory Basis for, the Proposed Rule
The Exchange believes therefore that the of the contracts to be exercised if the
Change member organization knew or had
current rule is susceptible to
In its filing with the Commission, the misinterpretation and confusion on the reason to know that the contracts had
Exchange included statements part of the reader. not yet been purchased.9 The new
concerning the purpose of and basis for The Exchange has consequently language adds a provision specifying
determined to provide additional clarity that the failure of any member
the proposed rule change and discussed
to member organizations regarding organization to follow the procedures in
any comments it received on the
procedures to be followed in order to the rule could result in the assessment
proposed rule change. The text of these of a fine, which may include but is not
exercise an American-style index option
statements may be examined at the limited to disgorgement of potential
contract. It proposes to delete all rule
places specified in Item IV below. The
mstockstill on DSK3G9T082PROD with NOTICES
text currently found in section (a) of
Exchange has prepared summaries, set Rule 1042A with the exception of the 5 See proposed Rule 1042A(i). An exercise advice
forth in sections A, B, and C below, of first part of the first sentence, which is a notification to the Exchange of a member’s
the most significant aspects of such intention to exercise one or more options contracts.
reads simply and clearly that ‘‘[w]ith 6 See proposed Rule 1042A(ii).
statements. respect to index option contracts, 7 See proposed Rule 1042A(vii). Existing Rule
1042A(b) is being deleted as redundant.
1 15 U.S.C. 78s(b)(1). 3 See existing Rule 1042A(i). 8 See proposed Rule 1042A(iii).
2 17 CFR 240.19b–4. 4 See existing Rule 1042A(ii). 9 See proposed Rule 1042A(iv).
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![60758 Federal Register / Vol. 81, No. 171 / Friday, September 2, 2016 / Notices
necessary or appropriate in furtherance Paper Comments ACTION: Notice of an application under
of the purposes of the Act because the • Send paper comments in triplicate section 6(c) of the Investment Company
rule provides additional detail and to Secretary, Securities and Exchange Act of 1940 (‘‘Act’’) for an exemption
requirements relating to procedures for Commission, 100 F Street NE., from section 15(a) of the Act and rule
exercise of American index options that Washington, DC 20549–1090. 18f–2 under the Act, as well as from
apply to all members equally. certain disclosure requirements in rule
All submissions should refer to File 20a–1 under the Act, Item 19(a)(3) of
C. Self-Regulatory Organization’s Number SR–Phlx–2016–84. This file Form N–1A, Items 22(c)(1)(ii),
Statement on Comments on the number should be included on the 22(c)(1)(iii), 22(c)(8) and 22(c)(9) of
Proposed Rule Change Received From subject line if email is used. To help the Schedule 14A under the Securities
Members, Participants, or Others Commission process and review your Exchange Act of 1934, and Sections 6–
comments more efficiently, please use 07(2)(a), (b), and (c) of Regulation S–X
No written comments were either
only one method. The Commission will (‘‘Disclosure Requirements’’). The
solicited or received.
post all comments on the Commission’s requested exemption would permit an
III. Date of Effectiveness of the Internet Web site (http://www.sec.gov/ investment adviser to hire and replace
Proposed Rule Change and Timing for rules/sro.shtml). Copies of the certain sub-advisers without
Commission Action submission, all subsequent shareholder approval and grant relief
amendments, all written statements from the Disclosure Requirements as
Because the foregoing proposed rule
with respect to the proposed rule they relate to fees paid to the sub-
change does not: (i) Significantly affect
change that are filed with the advisers.
the protection of investors or the public
Commission, and all written
interest; (ii) impose any significant
communications relating to the APPLICANTS: Starboard Investment Trust
burden on competition; and (iii) become
proposed rule change between the (the ‘‘Trust’’), a Delaware statutory trust
operative for 30 days from the date on
Commission and any person, other than registered under the Act as an open-end
which it was filed, or such shorter time
those that may be withheld from the management investment company with
as the Commission may designate, it has
public in accordance with the multiple series, and Cavalier
become effective pursuant to section
provisions of 5 U.S.C. 552, will be Investments, Inc., a Massachusetts
19(b)(3)(A)(iii) of the Act 18 and corporation registered as an investment
available for Web site viewing and
subparagraph (f)(6) of Rule 19b–4 adviser under the Investment Advisers
printing in the Commission’s Public
thereunder.19 Act of 1940 (the ‘‘Adviser,’’ and,
Reference Room, 100 F Street NE.,
At any time within 60 days of the Washington, DC 20549, on official collectively with the Trust, the
filing of the proposed rule change, the business days between the hours of ‘‘Applicants’’).
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the DATES Filing Dates: The application was
temporarily suspend such rule change if filing also will be available for filed March 18, 2016, and amended on
it appears to the Commission that such inspection and copying at the principal June 20, 2016.
action is: (i) Necessary or appropriate in office of the Exchange. All comments
the public interest; (ii) for the protection HEARING OR NOTIFICATION OF HEARING:
received will be posted without change; An order granting the application will
of investors; or (iii) otherwise in the Commission does not edit personal
furtherance of the purposes of the Act. be issued unless the Commission orders
identifying information from a hearing. Interested persons may
If the Commission takes such action, the submissions. You should submit only
Commission shall institute proceedings request a hearing by writing to the
information that you wish to make Commission’s Secretary and serving
to determine whether the proposed rule available publicly. All submissions
should be approved or disapproved. applicants with a copy of the request,
should refer to File Number SR–Phlx– personally or by mail. Hearing requests
IV. Solicitation of Comments 2016–84 and should be submitted on or should be received by the Commission
before September 23, 2016. by 5:30 p.m. on September 23, 2016,
Interested persons are invited to
submit written data, views, and
For the Commission, by the Division of and should be accompanied by proof of
Trading and Markets, pursuant to delegated service on the applicants, in the form of
arguments concerning the foregoing, authority.20
including whether the proposed rule an affidavit or, for lawyers, a certificate
Robert W. Errett, of service. Pursuant to rule 0–5 under
change is consistent with the Act.
Comments may be submitted by any of
Deputy Secretary. the Act, hearing requests should state
the following methods: [FR Doc. 2016–21131 Filed 9–1–16; 8:45 am] the nature of the writer’s interest, any
BILLING CODE 8011–01–P facts bearing upon the desirability of a
Electronic Comments hearing on the matter, the reason for the
request, and the issues contested.
• Use the Commission’s Internet
SECURITIES AND EXCHANGE Persons who wish to be notified of a
comment form (http://www.sec.gov/
COMMISSION hearing may request notification by
rules/sro.shtml); or
writing to the Commission’s Secretary.
• Send an email to rule-comments@ [Investment Company Act Release No. ADDRESSES: Secretary, U.S. Securities
sec.gov. Please include File Number SR– 32241; 812–14630]
and Exchange Commission, 100 F Street
Phlx–2016–84 on the subject line.
Starboard Investment Trust and NE., Washington, DC 20549–1090.
Applicants: The Trust, 116 South
mstockstill on DSK3G9T082PROD with NOTICES
18 15 U.S.C. 78s(b)(3)(a)(iii). Cavalier Investments, Inc.; Notice of
19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Application Franklin Street, Rocky Mount, NC
4(f)(6) requires a self-regulatory organization to give 27804; the Adviser, 50 Braintree Hill
the Commission written notice of its intent to file August 29, 2016. Park #105, Braintree, MA 02184.
the proposed rule change at least five business days AGENCY:Securities and Exchange FOR FURTHER INFORMATION CONTACT: Hae-
prior to the date of filing of the proposed rule Commission (‘‘Commission’’).
change, or such shorter time as designated by the
Sung Lee, Attorney-Adviser, at (202)
Commission. The Exchange has satisfied this 551–7345, or Mary Kay Frech, Branch
requirement. 20 17 CFR 200.30–3(a)(12). Chief, at (202) 551–6821 (Division of
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Document Created: 2018-02-09 11:55:47
Document Modified: 2018-02-09 11:55:47
| 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 60756 |
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