81_FR_61897 81 FR 61724 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Withdrawal of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend Rule 6.67(c) by Revising the Clearing Member Requirements for Entering an Order into the Electronic Order Capture System

81 FR 61724 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Withdrawal of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend Rule 6.67(c) by Revising the Clearing Member Requirements for Entering an Order into the Electronic Order Capture System

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 173 (September 7, 2016)

Page Range61724-61725
FR Document2016-21382

Federal Register, Volume 81 Issue 173 (Wednesday, September 7, 2016) 
[Federal Register Volume 81, Number 173 (Wednesday, September 7, 2016)]
[Notices]
[Pages 61724-61725]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-21382]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78743; File No. SR-NYSEArca-2016-15]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of 
Withdrawal of a Proposed Rule Change, as Modified by Amendment No. 1, 
To Amend Rule 6.67(c) by Revising the Clearing Member Requirements for 
Entering an Order into the Electronic Order Capture System

August 31, 2016.
    On March 22, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') 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

[[Page 61725]]

19b-4 thereunder,\2\ a proposed rule change to amend Rule 6.67(c) to 
change the timing for recording the name of the Clearing Member \3\ in 
the Electronic Order Capture system (``EOC''). On March 29, 2016,\4\ 
the Exchange filed Amendment No. 1 to the proposed rule change. The 
Commission published the proposed rule change, as modified by Amendment 
No. 1, for comment in the Federal Register on April 11, 2016.\5\ The 
Commission received no comments on the proposed rule change. On May 25, 
2016 the Commission extended the time period within which to approve 
the proposed rule change, disapprove the proposed rule change, or 
institute proceedings to determine whether to approve or disapprove the 
proposed rule change to July 10, 2016.\6\ On July 7, 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.\8\ The Commission received no 
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\ Rule 6.1(b)(3) defines ``Clearing Member'' as an Exchange 
OTP which has been admitted to membership in the Options Clearing 
Corporation pursuant to the provisions of the Rules of the Options 
Clearing Corporation.
    \4\ The Commission notes that the amendment date of March 30, 
2016 in the SR-NYSEArca-2016-15 Notice is incorrect and the proper 
date is March 29, 2016.
    \5\ See Securities Exchange Act Release No. 34-77516 (April 5, 
2016), 81 FR 21430 (``Notice''). Amendment No.1 was included in the 
Notice and provided the clarification that the CMTA Information and 
the name of the clearing OTP Holder would be entered into the EOC 
``as the events occur and/or during trade reporting procedures which 
may occur after the representation and execution of the order.''
    \6\ See Securities Exchange Act Release No. 34-77909, 81 FR 
35079 (June 1, 2016).
    \7\ 15 U.S.C. 78s(b)(2)(B).
    \8\ See Securities Exchange Act Release No. 34-78239, 81 FR 
45349 (July 13, 2016).
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    On August 29, 2016, the Exchange withdrew the proposed rule change 
(SR-NYSEArca-2016-15).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(57).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-21382 Filed 9-6-16; 8:45 am]
 BILLING CODE 8011-01-P

61724 Federal Register / Vol. 81, No. 173 / Wednesday, September 7, 2016 / Notices 3. Shares will be purchased and inconsistent with the spirit and intent of Fund (‘‘Master Fund’’) beyond the redeemed in Creation Units and section 22(e) to prevent unreasonable, limitations in section 12(d)(1)(A) and generally on an in-kind basis. Except undisclosed or unforeseen delays in the permit the Master Fund, and any where the purchase or redemption will actual payment of redemption proceeds. principal underwriter for the Master include cash under the limited 7. Applicants request an exemption to Fund, to sell shares of the Master Fund circumstances specified in the permit Funds of Funds to acquire Fund to the Feeder Fund beyond the application, purchasers will be required shares beyond the limits of section limitations in section 12(d)(1)(B). to purchase Creation Units by 12(d)(1)(A) of the Act; and the Funds, 10. Section 6(c) of the Act permits the depositing specified instruments and any principal underwriter for the Commission to exempt any persons or (‘‘Deposit Instruments’’), and Funds, and/or any broker or dealer transactions from any provision of the shareholders redeeming their shares registered under the Exchange Act, to Act if such exemption is necessary or will receive specified instruments sell shares to Funds of Funds beyond appropriate in the public interest and (‘‘Redemption Instruments’’). The the limits of section 12(d)(1)(B) of the consistent with the protection of Deposit Instruments and the Act. The application’s terms and investors and the purposes fairly Redemption Instruments will each conditions are designed to, among other intended by the policy and provisions of correspond pro rata to the positions in things, help prevent any potential (i) the Act. Section 12(d)(1)(J) of the Act the Fund’s portfolio (including cash undue influence over a Fund through provides that the Commission may positions) except as specified in the control or voting power, or in exempt any person, security, or application. connection with certain services, transaction, or any class or classes of 4. Because shares will not be transactions, and underwritings, (ii) persons, securities, or transactions, from individually redeemable, applicants excessive layering of fees, and (iii) any provision of section 12(d)(1) if the request an exemption from section overly complex fund structures, which exemption is consistent with the public 5(a)(1) and section 2(a)(32) of the Act are the concerns underlying the limits interest and the protection of investors. that would permit the Funds to register in sections 12(d)(1)(A) and (B) of the Section 17(b) of the Act authorizes the as open-end management investment Act. Commission to grant an order companies and issue shares that are 8. Applicants request an exemption permitting a transaction otherwise redeemable in Creation Units only. from sections 17(a)(1) and 17(a)(2) of the prohibited by section 17(a) if it finds 5. Applicants also request an Act to permit persons that are Affiliated that (a) the terms of the proposed exemption from section 22(d) of the Act Persons, or Second Tier Affiliates, of the transaction are fair and reasonable and and rule 22c–1 under the Act as Funds, solely by virtue of certain do not involve overreaching on the part secondary market trading in shares will ownership interests, to effectuate of any person concerned; (b) the take place at negotiated prices, not at a purchases and redemptions in-kind. The proposed transaction is consistent with current offering price described in a deposit procedures for in-kind the policies of each registered Fund’s prospectus, and not at a price purchases of Creation Units and the investment company involved; and (c) based on NAV. Applicants state that (a) redemption procedures for in-kind the proposed transaction is consistent secondary market trading in shares does redemptions of Creation Units will be with the general purposes of the Act. not involve a Fund as a party and will the same for all purchases and redemptions and Deposit Instruments For the Commission, by the Division of not result in dilution of an investment Investment Management, under delegated in shares, and (b) to the extent different and Redemption Instruments will be valued in the same manner as those authority. prices exist during a given trading day, Robert W. Errett, or from day to day, such variances occur investment positions currently held by the Funds. Applicants also seek relief Deputy Secretary. as a result of third-party market forces, from the prohibitions on affiliated [FR Doc. 2016–21248 Filed 9–6–16; 8:45 am] such as supply and demand. Therefore, transactions in section 17(a) to permit a BILLING CODE 8011–01–P applicants assert that secondary market Fund to sell its shares to and redeem its transactions in shares will not lead to shares from a Fund of Funds, and to discrimination or preferential treatment SECURITIES AND EXCHANGE engage in the accompanying in-kind among purchasers. Finally, applicants COMMISSION transactions with the Fund of Funds.3 represent that share market prices will The purchase of Creation Units by a be disciplined by arbitrage [Release No. 34–78743; File No. SR– Fund of Funds directly from a Fund will NYSEArca-2016–15] opportunities, which should prevent be accomplished in accordance with the shares from trading at a material policies of the Fund of Funds and will Self-Regulatory Organizations; NYSE discount or premium from NAV. be based on the NAVs of the Funds. 6. With respect to Funds that effect Arca, Inc.; Notice of Withdrawal of a 9. Applicants also request relief to Proposed Rule Change, as Modified by creations and redemptions of Creation permit a Feeder Fund to acquire shares Units in kind and that are based on Amendment No. 1, To Amend Rule of another registered investment 6.67(c) by Revising the Clearing certain Underlying Indexes that include company managed by the Adviser foreign securities, applicants request Member Requirements for Entering an having substantially the same Order into the Electronic Order relief from the requirement imposed by investment objectives as the Feeder section 22(e) in order to allow such Capture System Funds to pay redemption proceeds 3 The requested relief would apply to direct sales August 31, 2016. within fifteen calendar days following of shares in Creation Units by a Fund to a Fund of On March 22, 2016, NYSE Arca, Inc. mstockstill on DSK3G9T082PROD with NOTICES the tender of Creation Units for Funds and redemptions of those shares. Applicants, (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed redemption. Applicants assert that the moreover, are not seeking relief from section 17(a) for, and the requested relief will not apply to, with the Securities and Exchange requested relief would not be transactions where a Fund could be deemed an Commission (‘‘Commission’’), pursuant Affiliated Person, or a Second-Tier Affiliate, of a to section 19(b)(1) of the Securities Applicants believe that requiring Self-Indexing Fund of Funds because an Adviser or an entity Funds to maintain full portfolio transparency will controlling, controlled by or under common control Exchange Act of 1934 (‘‘Act’’) 1 and Rule help address, together with other protections, with an Adviser provides investment advisory conflicts of interest with respect to such Funds. services to that Fund of Funds. 1 15 U.S.C. 78s(b)(1). VerDate Sep<11>2014 17:30 Sep 06, 2016 Jkt 238001 PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 E:\FR\FM\07SEN1.SGM 07SEN1

Federal Register / Vol. 81, No. 173 / Wednesday, September 7, 2016 / Notices 61725 19b-4 thereunder,2 a proposed rule the Securities and Exchange change to amend certain rules related to change to amend Rule 6.67(c) to change Commission will hold a closed meeting Flexible Exchange (‘‘FLEX’’) Options. the timing for recording the name of the on Thursday, September 8, 2016 at 2 The proposed rule change was Clearing Member 3 in the Electronic p.m. published for comment in the Federal Order Capture system (‘‘EOC’’). On Commissioners, Counsel to the Register on July 21, 2016.3 On August March 29, 2016,4 the Exchange filed Commissioners, the Secretary to the 30, 2016, the Exchange filed Amendment No. 1 to the proposed rule Commission, and recording secretaries Amendment No. 1 to the proposed rule change. The Commission published the will attend the closed meeting. Certain change.4 No comments have been proposed rule change, as modified by staff members who have an interest in received on the proposed rule change. Amendment No. 1, for comment in the the matters also may be present. Federal Register on April 11, 2016.5 The General Counsel of the Section 19(b)(2) of the Act 5 provides The Commission received no comments Commission, or her designee, has that within 45 days of the publication of on the proposed rule change. On May certified that, in her opinion, one or notice of the filing of a proposed rule 25, 2016 the Commission extended the more of the exemptions set forth in 5 change, or within such longer period up time period within which to approve U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) to 90 days as the Commission may the proposed rule change, disapprove and 17 CFR 200.402(a)(3), (a)(5), (a)(7), designate if it finds such longer period the proposed rule change, or institute (a)(9)(ii) and (a)(10), permit to be appropriate and publishes its proceedings to determine whether to consideration of the scheduled matter at reasons for so finding or as to which the approve or disapprove the proposed the closed meeting. self-regulatory organization consents, rule change to July 10, 2016.6 On July Chair White, as duty officer, voted to the Commission shall either approve the 7, 2016, the Commission instituted consider the items listed for the closed proposed rule change, disapprove the proceedings under section 19(b)(2)(B) of meeting in closed session. proposed rule change, or institute the Act 7 to determine whether to The subject matter of the closed proceedings to determine whether the approve or disapprove the proposed meeting will be: Institution and settlement of proposed rule change should be rule change, as modified by Amendment disapproved. The 45th day after No. 1.8 The Commission received no injunctive actions; Institution and settlement of publication of the notice for this comments on the proposed rule change. On August 29, 2016, the Exchange administrative proceedings; proposed rule change is September 4, withdrew the proposed rule change Resolution of litigation claims; and 2016. The Commission is extending this (SR–NYSEArca-2016–15). Other matters relating to enforcement 45-day time period for Commission proceedings. action on the proposed rule change. For the Commission, by the Division of At times, changes in Commission Trading and Markets, pursuant to delegated The Commission finds it appropriate priorities require alterations in the authority.9 to designate a longer period within scheduling of meeting items. Robert W. Errett, For further information and to which to take action on the proposed Deputy Secretary. ascertain what, if any, matters have been rule change so that it has sufficient time [FR Doc. 2016–21382 Filed 9–6–16; 8:45 am] added, deleted or postponed, please to consider the proposed rule change, as BILLING CODE 8011–01–P contact Brent J. Fields from the Office of modified by Amendment No. 1. the Secretary at (202) 551–5400. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,6 and for SECURITIES AND EXCHANGE Dated: September 1, 2016. the reason noted above, designates COMMISSION Brent J. Fields, October 19, 2016 as the date by which Secretary. the Commission shall either approve or Sunshine Act Meeting [FR Doc. 2016–21585 Filed 9–2–16; 4:15 pm] disapprove, or institute proceedings to BILLING CODE 8011–01–P Notice is hereby given, pursuant to determine whether to disapprove, the the provisions of the Government in the proposed rule change (File No. SR– Sunshine Act, Public Law 94–409, that SECURITIES AND EXCHANGE NYSEMKT–2016–48). COMMISSION For the Commission, by the Division of 2 17 CFR 240.19b-4. Trading and Markets, pursuant to delegated 3 Rule 6.1(b)(3) defines ‘‘Clearing Member’’ as an [Release No. 34–78744; File No. SR– Exchange OTP which has been admitted to NYSEMKT–2016–48] authority.7 membership in the Options Clearing Corporation Robert W. Errett, pursuant to the provisions of the Rules of the Self-Regulatory Organizations; NYSE Deputy Secretary. Options Clearing Corporation. MKT LLC; Notice of Designation of a 4 The Commission notes that the amendment date [FR Doc. 2016–21383 Filed 9–6–16; 8:45 am] of March 30, 2016 in the SR–NYSEArca-2016–15 Longer Period for Commission Action BILLING CODE 8011–01–P Notice is incorrect and the proper date is March 29, on a Proposed Rule Change To Amend 2016. Certain Rules Relating to Flexible 5 See Securities Exchange Act Release No. 34– Exchange Options 77516 (April 5, 2016), 81 FR 21430 (‘‘Notice’’). 3 See Securities Exchange Act Release No. 78348 Amendment No.1 was included in the Notice and August 31, 2016. provided the clarification that the CMTA (July 15, 2016), 81 FR 47469. Information and the name of the clearing OTP On July 1, 2016, NYSE MKT LLC 4 Amendment No. 1 adds detail about limitations Holder would be entered into the EOC ‘‘as the (‘‘NYSE MKT’’ or the ‘‘Exchange’’) filed on FLEX Binary Return Derivatives (‘‘ByRDs’’), mstockstill on DSK3G9T082PROD with NOTICES events occur and/or during trade reporting with the Securities and Exchange specifies that Asian and Cliquet style settlements procedures which may occur after the Commission (‘‘Commission’’), pursuant will be available for broad-based FLEX Index representation and execution of the order.’’ 6 See Securities Exchange Act Release No. 34– to Section 19(b)(1) of the Securities Options only, and removes an alternative exercise 77909, 81 FR 35079 (June 1, 2016). Exchange Act of 1934 (‘‘Act’’) 1 and Rule settlement style for FLEX Equity Options. See 7 15 U.S.C. 78s(b)(2)(B). 19b–4 thereunder,2 a proposed rule Amendment No. 1. 5 15 U.S.C. 78s(b)(2). 8 See Securities Exchange Act Release No. 34– 6 15 U.S.C. 78s(b)(2). 78239, 81 FR 45349 (July 13, 2016). 1 15 U.S.C.78s(b)(1). 9 17 CFR 200.30–3(a)(57). 2 17 CFR 240.19b–4. 7 17 CFR 200.30–3(a)(31). VerDate Sep<11>2014 17:30 Sep 06, 2016 Jkt 238001 PO 00000 Frm 00064 Fmt 4703 Sfmt 9990 E:\FR\FM\07SEN1.SGM 07SEN1


Document Created: 2016-09-07 11:50:55
Document Modified: 2016-09-07 11:50:55
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 61724 
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