81 FR 67031 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Correct Rule 3.6A
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 189 (September 29, 2016)
Federal Register Volume 81, Issue 189 (September 29, 2016)
| Page Range | 67031-67033 | |
| FR Document | 2016-23493 |
[Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)] [Notices] [Pages 67031-67033] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-23493] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78915; File No. SR-CBOE-2016-067] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Correct Rule 3.6A September 23, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on September 9, 2016, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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. \3\ 15 U.S.C. 78s(b)(3)(A)(iii). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange seeks to correct a typographical error in Rule 3.6A.08 related to the Qualification and Registration of Trading Permit Holders and Associated Persons. The text of the proposed rule change is provided below. (additions are underlined; deletions are [bracketed]) * * * * * Chicago Board Options Exchange, Incorporated Rules * * * * * Rule 3.6A. Qualification and Registration of Trading Permit Holders and Associated Persons (a)-(e) No change. . . . Interpretations and Policies: .01-.07 No change. .08 (a) An individual Trading Permit Holder or individual associated person who: (1) is engaged in proprietary trading, market-making and/or effecting transactions on behalf of a broker-dealer is required to register and qualify as a Securities Trader (TD) in WebCRD; (2) (i) supervises or monitors proprietary trading, market- making and/or brokerage activities for broker-dealers; (ii) supervises or trains those engaged in proprietary trading, market- making and/or effecting transactions on behalf of a broker-dealer, with respect to those activities; and/or (iii) is an officer, partner or director of a Trading Permit Holder or TPH organization is required to register and qualify as a Securities Trader Principal (TP) in WebCRD and satisfy the prerequisite registration and qualification requirements; and (3) is a Chief Compliance Officer (or performs similar functions) for a Trading Permit Holder or TPH organization that engages in proprietary trading, market-making or effecting transactions on behalf of a broker-dealer is required to register and qualify as a Securities Trader Compliance Officer (CT) in WebCRD and satisfy the prerequisite registration and qualification requirements. (b) The following sets forth the qualification requirements for each of the required registration categories described in paragraph (a) to Interpretation and Policy .08: [[Page 67032]] ------------------------------------------------------------------------ Alternative Category of registration Qualification acceptable examination(s) qualifications ------------------------------------------------------------------------ Securities Trader (TD)........ Series 57........ Securities Trader Principal Series 24........ General Securities (TP) **. Sales Supervisor Registration and General Securities Principal--Sales Supervisor Module Registration (Series 9/10 and Series 23) * Securities Trader Compliance Series 14........ General Securities Officer (CT). Principal Registration (GP) or Securities Trader Principal (TP) (Series 24) ------------------------------------------------------------------------ * Because the Series 23 is not available in WebCRD, each applicant must provide documentation of a valid Series 23 license to the Registration Services Department upon request for the Series 24 registration in WebCRD. ** Securities Trader Principals' (TP) supervisory authority is limited to supervision of the securities trading functions of TPHs, as described in paragraph (a)(2)[(i)] of Interpretation and Policy .08 to Rule 3.6A, and supervision of officers, partners, and directors of a TPH or TPH organization. .09 No change. * * * * * The text of the proposed rule change is also available on the Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, 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 proposes to correct an inadvertent typographical error in Rule 3.6A.08. The Exchange proposes to make the change so the text properly reflects the intention and practice of Rule 3.6A.08. The typographical error is explained below. On October 9, 2015, the Exchange filed a rule change to replace the Proprietary Trader (PT) registration category and qualification examination (Series 56) with the Securities Trader (TD) registration category and qualification examination (Series 57). As part of that filing, an inadvertent typographical error was made in the sentence that begins with the two asterisks (**) in Interpretation and Policy .08(b). That sentence incorrectly refers to paragraph (a)(2)(i) in Interpretation and Policy .08. The intention was to reference paragraph (a)(2) in its entirety, not just paragraph (a)(2)(i), as the purpose of the reference is to describe the various types of supervisory authority an individual may have that requires the individual to register and qualify as a Securities Trader Principal (TP). The Exchange is now proposing to amend this error to accurately describe the intention and practice of the rule. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\5\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \6\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \7 \requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ Id. --------------------------------------------------------------------------- In particular, the proposed rule change is consistent with these provisions because it will more accurately describe the intention and practice of the Exchange with respect to registration requirements of Trading Permit Holders. The Exchange believes that having accurate and clear rules is in the best interests of investors and the general public. The proposed rule change is correcting an inadvertent typographical error. B. Self-Regulatory Organization's Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is attempting to correct a typographical error and does not impact the Exchange's existing operations or rules related to registration requirements. The proposed rule change has no impact on competition. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: A. Significantly affect the protection of investors or the public interest; B. impose any significant burden on competition; and C. 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) of the Act \8\ and Rule 19b-4(f)(6) \9\ thereunder. 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the [[Page 67033]] Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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-CBOE-2016-067 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-CBOE-2016-067. This file number should be included on the subject line if e-mail 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 website (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 website 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-CBOE-2016-067 and should be submitted on or before October 20, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-23493 Filed 9-28-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices 67031
III. Discussion and Commission the CEO makes a determination to use pursuant to Section 19(b)(3)(A)(iii) of
Findings the Disaster Recovery Facility. the Act 3 and Rule 19b–4(f)(6)
After careful review of the proposal, The Commission believes that the thereunder.4 The Commission is
as modified by Amendment Nos. 1 and proposal is reasonably designed to publishing this notice to solicit
No. 2, the Commission finds that the permit the Exchange to continue to comments on the proposed rule change
proposed rule change is consistent with operate in the event of an emergency by from interested persons.
the requirements of the Act and the using a secondary data center located in
a geographically diverse location to I. Self-Regulatory Organization’s
rules and regulations thereunder Statement of the Terms of Substance of
applicable to a national securities open, trade, and close Exchange-listed
securities. Accordingly, the Commission the Proposed Rule Change
exchange.24 In particular, the
Commission finds that the proposed believes that the proposal is designed to The Exchange seeks to correct a
rule change is consistent with Section remove impediments to and perfect the typographical error in Rule 3.6A.08
6(b)(5) of the Act,25 which requires, mechanism of a free and open market related to the Qualification and
among other things, that the rules of a and a national market system, and to Registration of Trading Permit Holders
national securities exchange be protect investors and the public interest, and Associated Persons. The text of the
designed to prevent fraudulent and and the Commission therefore finds that proposed rule change is provided
manipulative acts and practices, to the proposed rule change is consistent below.
promote just and equitable principles of with the requirements of the Act.
(additions are underlined; deletions
trade, to foster cooperation and IV. Conclusion are [bracketed])
coordination with persons engaged in
facilitating transactions in securities, to It is therefore ordered, pursuant to * * * * *
remove impediments to and perfect the Section 19(b)(2) of the Act,27 that the
proposed rule change (SR–NYSE–2016– Chicago Board Options Exchange,
mechanism of a free and open market Incorporated Rules
and a national market system, and, in 48), as modified by Amendments No. 1
and Partial Amendment No. 2, be, and * * * * *
general, to protect investors and the Rule 3.6A. Qualification and Registration
public interest. hereby is, approved.
of Trading Permit Holders and Associated
Under amended Exchange Rule 49, For the Commission, by the Division of Persons
the Exchange would maintain its own Trading and Markets, pursuant to delegated (a)–(e) No change.
Disaster Recovery Facility to continue authority.28 . . . Interpretations and Policies:
Exchange operations when necessary Brent J. Fields, .01–.07 No change.
without substantial disruption to Secretary. .08 (a) An individual Trading Permit
member organizations. This Disaster [FR Doc. 2016–23494 Filed 9–28–16; 8:45 am]
Holder or individual associated person who:
Recovery Facility would allow the (1) is engaged in proprietary trading,
BILLING CODE 8011–01–P
Exchange to no longer designate NYSE market-making and/or effecting transactions
on behalf of a broker-dealer is required to
Arca as its backup facility but instead
register and qualify as a Securities Trader
operate as a fully electronic exchange on SECURITIES AND EXCHANGE (TD) in WebCRD;
its own facilities, under its own trading COMMISSION (2) (i) supervises or monitors proprietary
rules, with its own order book and with trading, market-making and/or brokerage
quotes and trades publicly reported [Release No. 34–78915; File No. SR–CBOE–
2016–067] activities for broker-dealers; (ii) supervises or
under the Exchange’s own reporting trains those engaged in proprietary trading,
symbol. The proposed rule change Self-Regulatory Organizations; market-making and/or effecting transactions
would also require member on behalf of a broker-dealer, with respect to
Chicago Board Options Exchange,
organizations to participate in those activities; and/or (iii) is an officer,
Incorporated; Notice of Filing and partner or director of a Trading Permit
scheduled functional and performance Immediate Effectiveness of a Proposed
testing of the Exchange’s business Holder or TPH organization is required to
Rule Change To Correct Rule 3.6A register and qualify as a Securities Trader
continuity and disaster recovery plans Principal (TP) in WebCRD and satisfy the
in the manner and frequency specified September 23, 2016.
prerequisite registration and qualification
by the Exchange, which shall not be less Pursuant to Section 19(b)(1) of the requirements; and
than once every 12 months.26 Securities Exchange Act of 1934 (the (3) is a Chief Compliance Officer (or
Under the proposal, the Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2 performs similar functions) for a Trading
CEO would be authorized to make a notice is hereby given that on Permit Holder or TPH organization that
determination for the Exchange to trade September 9, 2016, Chicago Board engages in proprietary trading, market-
securities on the Disaster Recovery Options Exchange, Incorporated (the making or effecting transactions on behalf of
Facility only when the CEO deems such ‘‘Exchange’’ or ‘‘CBOE’’) filed with the a broker-dealer is required to register and
action to be necessary or appropriate for Securities and Exchange Commission qualify as a Securities Trader Compliance
Officer (CT) in WebCRD and satisfy the
the maintenance of a fair and orderly (the ‘‘Commission’’) the proposed rule
prerequisite registration and qualification
market, or for the protection of investors change as described in Items I, II, and requirements.
or otherwise in the public interest, due III below, which Items have been (b) The following sets forth the
to extraordinary circumstances. The prepared by the Exchange. The qualification requirements for each of the
Exchange CEO must notify the Exchange Exchange filed the proposal as a ‘‘non- required registration categories described in
board of directors as soon as feasible if controversial’’ proposed rule change paragraph (a) to Interpretation and Policy .08:
mstockstill on DSK3G9T082PROD with NOTICES
deemed necessary or appropriate for the impact on efficiency, competition, and capital 1 15 U.S.C. 78s(b)(1).
maintenance of a fair and orderly market, or the formation. See 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.
protection of investors of otherwise in the public 25 15 U.S.C. 78f(b)(5).
3 15 U.S.C. 78s(b)(3)(A)(iii).
interest, due to extraordinary circumstances. 26 See Proposed Exchange Rule 49(b)(N).
4 17 CFR 240.19b–4(f)(6).
24 In approving these proposed rule changes, the 27 15 U.S.C. 78s(b)(2).
Commission has considered the proposed rules’ 28 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 E:\FR\FM\29SEN1.SGM 29SEN1](https://thefederalregister.org/doc/81_FR_67220/page/1.svg)
![67032 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices
Qualification
Category of registration Alternative acceptable qualifications
examination(s)
Securities Trader (TD) ................................... Series 57.
Securities Trader Principal (TP) ** ................ Series 24 ................... General Securities Sales Supervisor Registration and General Securities
Principal—Sales Supervisor Module Registration (Series 9/10 and Se-
ries 23) *
Securities Trader Compliance Officer (CT) ... Series 14 ................... General Securities Principal Registration (GP) or Securities Trader Prin-
cipal (TP) (Series 24)
* Because the Series 23 is not available in WebCRD, each applicant must provide documentation of a valid Series 23 license to the Registra-
tion Services Department upon request for the Series 24 registration in WebCRD.
** Securities Trader Principals’ (TP) supervisory authority is limited to supervision of the securities trading functions of TPHs, as described in
paragraph (a)(2)[(i)] of Interpretation and Policy .08 to Rule 3.6A, and supervision of officers, partners, and directors of a TPH or TPH
organization.
.09 No change. intention was to reference paragraph general public. The proposed rule
* * * * * (a)(2) in its entirety, not just paragraph change is correcting an inadvertent
(a)(2)(i), as the purpose of the reference typographical error.
The text of the proposed rule change
is also available on the Exchange’s is to describe the various types of
B. Self-Regulatory Organization’s
website (http://www.cboe.com/About supervisory authority an individual may
Statement on Burden on Competition
CBOE/CBOELegalRegulatory have that requires the individual to
register and qualify as a Securities CBOE does not believe that the
Home.aspx), at the Exchange’s Office of proposed rule change will impose any
the Secretary, and at the Commission’s Trader Principal (TP). The Exchange is
now proposing to amend this error to burden on competition that is not
Public Reference Room. necessary or appropriate in furtherance
accurately describe the intention and
II. Self-Regulatory Organization’s practice of the rule. of the purposes of the Act. The
Statement of the Purpose of, and proposed rule change is attempting to
Statutory Basis for, the Proposed Rule 2. Statutory Basis correct a typographical error and does
Change The Exchange believes the proposed not impact the Exchange’s existing
rule change is consistent with the Act operations or rules related to
In its filing with the Commission, the registration requirements. The proposed
Exchange included statements and the rules and regulations
thereunder applicable to the Exchange rule change has no impact on
concerning the purpose of and basis for competition.
the proposed rule change and discussed and, in particular, the requirements of
any comments it received on the Section 6(b) of the Act.5 Specifically, C. Self-Regulatory Organization’s
proposed rule change. The text of these the Exchange believes the proposed rule Statement on Comments on the
statements may be examined at the change is consistent with the Section Proposed Rule Change Received From
places specified in Item IV below. The 6(b)(5) 6 requirements that the rules of Members, Participants, or Others
Exchange has prepared summaries, set an exchange be designed to prevent
fraudulent and manipulative acts and The Exchange neither solicited nor
forth in sections A, B, and C below, of received written comments on the
the most significant aspects of such practices, to promote just and equitable
principles of trade, to foster cooperation proposed rule change.
statements.
and coordination with persons engaged III. Date of Effectiveness of the
A. Self-Regulatory Organization’s in regulating, clearing, settling, Proposed Rule Change and Timing for
Statement of the Purpose of, and processing information with respect to, Commission Action
Statutory Basis for, the Proposed Rule and facilitating transactions in Because the foregoing proposed rule
Change securities, to remove impediments to change does not:
1. Purpose and perfect the mechanism of a free and A. Significantly affect the protection
open market and a national market of investors or the public interest;
The Exchange proposes to correct an system, and, in general, to protect B. impose any significant burden on
inadvertent typographical error in Rule investors and the public interest. competition; and
3.6A.08. The Exchange proposes to Additionally, the Exchange believes the C. become operative for 30 days from
make the change so the text properly proposed rule change is consistent with the date on which it was filed, or such
reflects the intention and practice of the Section 6(b)(5) 7 requirement that the shorter time as the Commission may
Rule 3.6A.08. The typographical error is rules of an exchange not be designed to designate, it has become effective
explained below. permit unfair discrimination between pursuant to Section 19(b)(3)(A) of the
On October 9, 2015, the Exchange customers, issuers, brokers, or dealers. Act 8 and Rule 19b–4(f)(6) 9 thereunder.
filed a rule change to replace the In particular, the proposed rule At any time within 60 days of the filing
Proprietary Trader (PT) registration change is consistent with these of the proposed rule change, the
category and qualification examination provisions because it will more Commission summarily may
(Series 56) with the Securities Trader accurately describe the intention and temporarily suspend such rule change if
(TD) registration category and practice of the Exchange with respect to it appears to the Commission that such
qualification examination (Series 57).
mstockstill on DSK3G9T082PROD with NOTICES
registration requirements of Trading action is necessary or appropriate in the
As part of that filing, an inadvertent Permit Holders. The Exchange believes public interest, for the protection of
typographical error was made in the that having accurate and clear rules is investors, or otherwise in furtherance of
sentence that begins with the two in the best interests of investors and the the purposes of the Act. If the
asterisks (**) in Interpretation and Commission takes such action, the
Policy .08(b). That sentence incorrectly 5 15 U.S.C. 78f(b).
refers to paragraph (a)(2)(i) in 6 15 U.S.C. 78f(b)(5). 8 15 U.S.C. 78s(b)(3)(A).
Interpretation and Policy .08. The 7 Id. 9 17 CFR 240.19b–4(f)(6).
VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 E:\FR\FM\29SEN1.SGM 29SEN1](https://thefederalregister.org/doc/81_FR_67220/page/2.svg)
![Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices 67033
Commission will institute proceedings For the Commission, by the Division of filing a proposed rule change under
to determine whether the proposed rule Trading and Markets, pursuant to delegated Section 19(b) of the Act.5
change should be approved or authority.10
Brent J. Fields, A. Description of the Generic Listing
disapproved.
Secretary. Standards
IV. Solicitation of Comments [FR Doc. 2016–23493 Filed 9–28–16; 8:45 am] The Exchange’s listing standards
Interested persons are invited to BILLING CODE 8011–01–P establish requirements for the various
submit written data, views, and types of assets that may be held in the
arguments concerning the foregoing, portfolio of a generically listed, actively
SECURITIES AND EXCHANGE managed ETF (‘‘Portfolio’’).
including whether the proposed rule
change is consistent with the Act. COMMISSION
1. Equity Portfolio Components
Comments may be submitted by any of Nasdaq Rule 5735(b)(1)(A) establishes
the following methods: [Release No. 34–78918; File No. SR–
NASDAQ–2016–104] the criteria applicable to the equity
Electronic Comments securities included in a Portfolio. Equity
Self-Regulatory Organizations; The securities include the following
• Use the Commission’s Internet NASDAQ Stock Market LLC; Order securities: U.S. Component Stocks,
comment form (http://www.sec.gov/ Granting Approval of a Proposed Rule which are defined in Nasdaq Rule 5705;
rules/sro.shtml); or Change To Amend Nasdaq Rule 5735 Non-U.S. Component Stocks, which are
• Send an email to rule-comments@ To Adopt Generic Listing Standards defined in Nasdaq Rule 5705; Exchange
sec.gov. Please include File Number SR– for Managed Fund Shares Traded Derivative Securities, which are
CBOE–2016–067 on the subject line. defined in Nasdaq Rule 5735(c)(6); 6
September 23, 2016. Linked Securities, which are defined in
Paper Comments I. Introduction Nasdaq Rule 5710, and each of the
equivalent security types listed on
• Send paper comments in triplicate On August 16, 2016, The NASDAQ another national securities exchange.
to Secretary, Securities and Exchange Stock Market LLC (‘‘Nasdaq’’ or Additionally, Nasdaq Rule 5735(b)(1)(A)
Commission, 100 F Street NE., ‘‘Exchange’’) filed with the Securities provides that no more than 25% of the
Washington, DC 20549–1090. and Exchange Commission equity weight of the Portfolio can
All submissions should refer to File (‘‘Commission’’), pursuant to Section include leveraged or inverse-leveraged
Number SR–CBOE–2016–067. This file 19(b)(1) of the Securities Exchange Act Exchange Traded Derivative Securities
number should be included on the of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and or Linked Securities and that, to the
subject line if e-mail is used. To help the Rule 19b–4 thereunder, a proposed rule
2
extent a Portfolio includes convertible
Commission process and review your change to amend Nasdaq Rule 5735 to, securities, the equity securities into
comments more efficiently, please use among other things, adopt generic which such securities are converted
only one method. The Commission will listing standards for Managed Fund must meet the criteria of Nasdaq Rule
post all comments on the Commission’s Shares. The proposed rule change was 5735(b)(1)(A) after converting.
published for comment in the Federal Nasdaq Rule 5735(b)(1)(A)(i) would
Internet website (http://www.sec.gov/
Register on August 24, 2016.3 The require that U.S. Component Stocks
rules/sro.shtml). Copies of the
Commission has received no comments (except as mentioned below) meet the
submission, all subsequent
on the proposed rule change. This order following criteria initially and on a
amendments, all written statements
grants approval of the proposed rule continuing basis:
with respect to the proposed rule
change. (1) Component stocks (excluding
change that are filed with the
Commission, and all written II. Description of the Proposal Exchange Traded Derivative Securities
communications relating to the and Linked Securities) that in the
proposed rule change between the Nasdaq Rule 5735 governs the listing aggregate account for at least 90% of the
Commission and any person, other than and trading of Managed Fund Shares on equity weight of the Portfolio (excluding
those that may be withheld from the the Exchange. Managed Fund Shares are Exchange Traded Derivative Securities
public in accordance with the issued by actively managed exchange- and Linked Securities) each shall have
provisions of 5 U.S.C. 552, will be traded funds (‘‘ETFs’’) that do not seek a minimum market value of at least $75
available for website viewing and to replicate the performance of a million;
printing in the Commission’s Public specified index of securities.
Reference Room, 100 F Street NE., Under its current rules, the Exchange 5 See 17 CFR 240.19b–4(e). Rule 19b–4(e) permits
Washington, DC 20549 on official must file separate proposals under self-regulatory organizations (‘‘SROs’’) to list and
Section 19(b) of the Act before listing a trade new derivative securities products that
business days between the hours of comply with existing SRO trading rules,
10:00 a.m. and 3:00 p.m. Copies of the new series of Managed Fund Shares.4 procedures, surveillance programs, and listing
filing also will be available for The Exchange proposes to adopt standards, without submitting a proposed rule
inspection and copying at the principal ‘‘generic’’ listing standards so that the change under Section 19(b). See Securities
Exchange may list Managed Fund Exchange Act Release No. 40761 (Dec. 8, 1998), 63
office of the Exchange. All comments FR 70952 (Dec. 22, 1998).
received will be posted without change; Shares that satisfy the applicable criteria 6 Nasdaq Rule 5735(c)(6) defines ‘‘Exchange
the Commission does not edit personal by submitting notice pursuant to Rule Traded Derivative Securities’’ as: ‘‘the securities
mstockstill on DSK3G9T082PROD with NOTICES
identifying information from 19b–4(e) under the Act, rather than by described in Nasdaq Rules 5705(a) (Portfolio
Depository Receipts); 5705(b) (Index Fund Shares);
submissions. You should submit only 5720 (Trust Issued Receipts); 5711(d) (Commodity-
10 17 CFR 200.30–3(a)(12).
information that you wish to make Based Trust Shares); 5711(e) (Currency Trust
1 15 U.S.C. 78s(b)(1).
available publicly. All submissions 2 17 CFR 240.19b–4.
Shares); 5711(f) (Commodity Index Trust Shares);
should refer to File Number SR–CBOE– 5711(g) (Commodity Futures Trust Shares); 5711(h)
3 See Securities Exchange Act Release No. 78616
(Partnership Units); 5711(i) (Trust Units); 5735
2016–067 and should be submitted on (Aug. 18, 2016), 81 FR 57968 (‘‘Notice’’). (Managed Fund Shares); and 5711(j) (Managed
or before October 20, 2016. 4 See Nasdaq Rule 5735(b)(1). Trust Securities).’’
VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 E:\FR\FM\29SEN1.SGM 29SEN1](https://thefederalregister.org/doc/81_FR_67220/page/3.svg)
Document Created: 2016-09-29 04:14:35
Document Modified: 2016-09-29 04:14:35
| 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 67031 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR