81 FR 74840 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change Relating to the Listing and Trading of Shares of PowerShares Government Collateral Pledge Portfolio Under NYSE Arca Equities Rule 8.600
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 208 (October 27, 2016)
Federal Register Volume 81, Issue 208 (October 27, 2016)
| Page Range | 74840-74842 | |
| FR Document | 2016-25938 |
[Federal Register Volume 81, Number 208 (Thursday, October 27, 2016)] [Notices] [Pages 74840-74842] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-25938] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79131; File No. SR-NYSEArca-2016-97] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change Relating to the Listing and Trading of Shares of PowerShares Government Collateral Pledge Portfolio Under NYSE Arca Equities Rule 8.600 October 21, 2016. I. Introduction On July 6, 2016, NYSE Arca, Inc. (``Exchange'') 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 shares (``Shares'') of the PowerShares Government Collateral Pledge Portfolio (``Fund''). The proposed rule change was published for comment in the Federal Register on July 26, 2016.\3\ On September 1, 2016, pursuant to Section 19(b)(2) of the Act,\4\ the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.\5\ The Commission has received no comments on the proposed rule change. This order institutes proceedings under Section 19(b)(2)(B) of the Act \6\ to determine whether to approve or disapprove the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 78373 (July 20, 2016), 81 FR 48869 (``Notice''). \4\ 15 U.S.C. 78s(b)(2). \5\ See Securities Exchange Act Release No. 78750, 81 FR 62233 (September 8, 2016). The Commission designated October 24, 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. \6\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- II. Exchange's Description of the Proposal The Exchange proposes to list and trade the Shares of the Fund under NYSE Arca Equities Rule 8.600, which governs the listing and trading of Managed Fund Shares. The Fund is a series of the PowerShares Actively Managed Exchange Traded Trust (``Trust'').\7\ Invesco PowerShares Capital Management LLC is the investment adviser for the Fund (``Adviser''), and Invesco Advisers, Inc. is the sub-adviser for the Fund (``Sub-Adviser''). The Bank of New York Mellon (``BNYM'') will be the administrator, custodian, and transfer agent for the Fund. Invesco Distributors, Inc. will be the Fund's distributor (``Distributor''). The Exchange represents that, while neither the Adviser nor the Sub-Adviser is registered as a broker-dealer, the Adviser and Sub-Adviser are each affiliated with a broker-dealer. The Adviser and Sub-Adviser each has implemented and will maintain a fire wall with respect to its affiliated broker-dealer regarding access to information concerning the composition of, and changes to, the Fund's portfolio.\8\ In the event (a) the Adviser or Sub-Adviser becomes registered as a broker-dealer or newly affiliated with a broker-dealer, or (b) any new adviser or sub-adviser becomes registered as a broker- dealer or newly affiliated with a broker-dealer, it will implement a fire wall with respect to its relevant personnel or such broker-dealer affiliate regarding access to information concerning the composition of, and changes to, the portfolio, and [[Page 74841]] will be subject to procedures designed to prevent the use and dissemination of material non-public information regarding such portfolio. --------------------------------------------------------------------------- \7\ The Exchange represents that the Trust is registered under the Investment Company Act of 1940 (``1940 Act''). According to the Exchange, on May 20, 2016, the Trust filed with the Commission an amendment to its registration statement on Form N-1A under the Securities Act of 1933 and the 1940 Act relating to the Fund (File Nos. 333-147622 and 811-22148) (``Registration Statement''). In addition, the Exchange states that the Trust and the Adviser (as defined herein) have obtained certain exemptive relief from the Commission under the 1940 Act. See Investment Company Act Release No. 28171 (February 27, 2008) (File No. 812-13386) (``Exemptive Order''). The Exchange represents that the Fund will be offered in reliance upon the Exemptive Order issued to the Trust and the Adviser. \8\ The Exchange further represents that an investment adviser to an open-end fund is required to be registered under the Investment Advisers Act of 1940 (``Advisers Act''). As a result, the Adviser and Sub-Adviser and their related personnel are subject to the provisions of Rule 204A-1 under the Advisers Act relating to codes of ethics. This Rule requires investment advisers to adopt a code of ethics that reflects the fiduciary nature of the relationship to clients as well as compliance with other applicable securities laws. Accordingly, procedures designed to prevent the communication and misuse of non-public information by an investment adviser must be consistent with Rule 204A-1 under the Advisers Act. The Exchange represents that the Adviser and its related personnel are subject to Advisers Act Rule 204A-1. In addition, Rule 206(4)-7 under the Advisers Act makes it unlawful for an investment adviser to provide investment advice to clients unless such investment adviser has (i) adopted and implemented written policies and procedures reasonably designed to prevent violation, by the investment adviser and its supervised persons, of the Advisers Act and the Commission rules adopted thereunder; (ii) implemented, at a minimum, an annual review regarding the adequacy of the policies and procedures established pursuant to subparagraph (i) above and the effectiveness of their implementation; and (iii) designated an individual (who is a supervised person) responsible for administering the policies and procedures adopted under subparagraph (i) above. --------------------------------------------------------------------------- The Exchange has made the following representations and statements in describing the Fund and its investment strategies, including the Fund's portfolio holdings and investment restrictions.\9\ --------------------------------------------------------------------------- \9\ The Commission notes that additional information regarding the Trust, the Fund, and the Shares, including investment strategies, risks, net asset value (``NAV'') calculation, creation and redemption procedures, fees, Fund holdings disclosure policies, distributions, and taxes, among other information, is included in the Notice and the Registration Statement, as applicable. See Notice and Registration Statement, supra notes 3 and 7, respectively. --------------------------------------------------------------------------- A. Exchange's Description of the Fund's Principal Investments According to the Exchange, the Fund's investment objective will be to seek to provide as high a level of current income as is consistent with liquidity and minimum volatility of principal. The Fund will seek to achieve its investment objective by investing, under normal market conditions,\10\ at least 80% of its net assets in a portfolio of registered U.S. government money market mutual funds (``Underlying Funds'')\11\ and in U.S. dollar-denominated government securities and other money market securities eligible for investment by U.S. government money market funds (including indirect investments in those securities through the Underlying Funds). --------------------------------------------------------------------------- \10\ The term ``under normal market conditions'' includes, but is not limited to, the absence of extreme volatility or trading halts in the fixed income securities markets or the financial markets generally; circumstances under which the Fund's investments are made for temporary defensive purposes; operational issues (e.g., systems failure) causing dissemination of inaccurate market information; or force majeure type events such as natural or man- made disaster, act of God, armed conflict, act of terrorism, riot or labor disruption or any similar intervening circumstance. \11\ According to the Exchange, each Underlying Fund is a ``government money market fund,'' as that term is defined under Rule 2a-7 of the 1940 Act (``Rule 2a-7''), and seeks to maintain a stable $1.00 NAV. Each Underlying Fund has an investment objective of seeking to provide current income consistent with preservation of capital and liquidity. The securities held by the Underlying Funds will comply with all requirements of Rule 2a-7 and other Commission rules applicable to money market funds seeking a stable NAV. Each Underlying Fund invests at least 99.5% of its total assets in cash, government securities, and/or repurchase agreements collateralized by cash or government securities. In addition, each Underlying Fund invests only in U.S. dollar-denominated securities maturing within 397 days of the date of purchase, with certain exceptions permitted by applicable regulations, and maintains a dollar-weighted average portfolio maturity of no more than 60 days, and a dollar-weighted average portfolio maturity (as determined without exceptions regarding certain interest rate adjustments under Rule 2a-7) of no more than 120 days. The Exchange represents that, unlike the Underlying Funds, the Fund will not be a money market fund, meaning that the Fund will not seek to maintain a stable NAV of $1.00, nor will it be subject to other requirements of Rule 2a-7. However, the Fund will only purchase securities issued by registered government money market funds, or securities that comply with the quality and eligibility requirements of Rule 2a-7. The Fund and the Underlying Funds may invest in variable and floating rate instruments that are permitted under the requirements of Rule 2a-7, and may transact in securities on a when-issued, delayed delivery, or forward commitment basis. --------------------------------------------------------------------------- Under normal market conditions, the Fund intends to invest a substantial portion of its assets in the following Underlying Funds: (a) Treasury Portfolio; (b) Government TaxAdvantage Portfolio; (c) Government & Agency Portfolio; and (d) Premier US Government Money Portfolio, each of which is advised by an affiliate of the Adviser. The Sub-Adviser may add, eliminate, or replace any or all Underlying Funds at any time. Any additions to or replacements of the Underlying Funds in the Fund's portfolio also will be registered U.S. government money market funds with investment characteristics that are substantially similar to those of the Underlying Funds. The Adviser, the Sub-Adviser, or their affiliates may advise some or all the Underlying Funds. In constructing the Fund's portfolio, the Sub-Adviser generally will allocate and re-allocate the Fund's assets among the Underlying Funds on a monthly basis on an approximate pro rata basis that is based on the amount of net assets of each Underlying Fund. However, the Sub- Adviser is not required to invest the Fund's assets in any particular Underlying Fund or allocate any particular percentage of the Fund's assets to any particular Underlying Fund. B. Exchange's Description of the Fund's Other Investments While the Fund, under normal circumstances, will invest at least 80% of its net assets in the securities and financial instruments described above, the Fund may invest its remaining assets in other assets and financial instruments, as described below. The Fund (and the Underlying Funds) may invest in certain U.S. government obligations other than those referenced above, namely Treasury receipts where the principal and interest components are traded separately under the Separate Trading of Registered Interest and Principal of Securities (STRIPS) program. The Fund also may invest directly in repurchase agreements and reverse repurchase agreements. C. Exchange's Description of the Fund's Investment Restrictions According to the Exchange, the Fund will be classified as ``non- diversified.'' The Fund intends to maintain the required level of diversification and otherwise conduct its operations so as to qualify as a regulated investment company for purposes of the U.S. Internal Revenue Code of 1986, as amended. The Fund may invest up to an aggregate amount of 15% of its net assets in illiquid assets (calculated at the time of investment). The Fund will monitor its portfolio liquidity on an ongoing basis to determine whether, in light of current circumstances, an adequate level of liquidity is being maintained, and will consider taking appropriate steps in order to maintain adequate liquidity if, through a change in values, net assets, or other circumstances, more than 15% of the Fund's net assets are held in illiquid assets. Illiquid assets include securities subject to contractual or other restrictions on resale and other instruments that lack readily available markets as determined in accordance with Commission staff guidance. The Fund will not invest in futures, options, swaps, or forward contracts. The Fund's investments will be consistent with the Fund's investment objective and will not be used to enhance leverage. That is, while the Fund will be permitted to borrow as permitted under the 1940 Act, the Fund's investments will not be used to seek performance that is the multiple or inverse multiple (e.g., 2Xs and 3Xs) of the Fund's primary broad-based securities benchmark index (as defined in Form N- 1A). III. Proceedings to Determine Whether to Approve or Disapprove SR- NYSEArca-2016-97 and Grounds for Disapproval Under Consideration The Commission is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act \12\ to determine whether the proposed rule change should be approved or disapproved. Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to [[Page 74842]] provide comments on the proposed rule change. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- Pursuant to Section 19(b)(2)(B) of the Act,\13\ the Commission is providing notice of the grounds for disapproval under consideration. The Commission is instituting proceedings to allow for additional analysis of the proposed rule change's consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ``designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,'' and ``to protect investors and the public interest.'' \14\ --------------------------------------------------------------------------- \13\ Id. \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Under the proposal, BNYM will calculate the Fund's NAV at 12:00 p.m., Eastern time, every day the New York Stock Exchange is open. In addition, to initiate an order for a creation unit, the Distributor or its agent must receive an irrevocable order from an authorized participant, in proper form, no later than 12:00 p.m., Eastern time, in each case on the date such order is placed in order to receive that day's NAV. Likewise, with respect to redemptions, an authorized participant must submit an irrevocable request to redeem shares of the Fund generally before 12:00 p.m., Eastern time on any business day in order to receive that day's NAV. The Commission notes the proposal does not provide any explanation for the early NAV calculation time and creation and redemption cut-off time. The proposal also does not explain whether the early NAV calculation time and creation and redemption cut-off time would have any impact on the trading of the Shares, including any impact on arbitrage. Accordingly, the Commission seeks commenters' views on the 12:00 p.m. NAV calculation time and creation and redemption cut-off time, and on whether the Exchange's statements relating to the NAV calculation and the creation and redemption process support a determination that the listing and trading of the Shares would be consistent with Section 6(b)(5) of the Act, which, among other things, requires that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and to protect investors and the public interest. IV. Procedure: Request for Written Comments The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal. In particular, the Commission invites the written views of interested persons concerning whether the proposal is consistent with Section 6(b)(5) or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.\15\ --------------------------------------------------------------------------- \15\ Section 19(b)(2) of the Act, as amended by the Securities Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the Commission flexibility to determine what type of proceeding--either oral or notice and opportunity for written comments--is appropriate for consideration of a particular proposal by a self-regulatory organization. See Securities Acts Amendments of 1975, Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). --------------------------------------------------------------------------- Interested persons are invited to submit written data, views, and arguments regarding whether the proposal should be approved or disapproved by November 17, 2016. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by December 1, 2016. The Commission asks that commenters address the sufficiency of the Exchange's statements in support of the proposal, which are set forth in the Notice,\16\ in addition to any other comments they may wish to submit about the proposed rule change. --------------------------------------------------------------------------- \16\ See supra note 3. --------------------------------------------------------------------------- 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-NYSEArca-2016-97 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-NYSEArca-2016-97. 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-NYSEArca-2016-97 and should be submitted on or before November 17, 2016. Rebuttal comments should be submitted by December 1, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(57). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-25938 Filed 10-26-16; 8:45 am] BILLING CODE 8011-01-P
![74840 Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices
Paper Comments SECURITIES AND EXCHANGE Management LLC is the investment
COMMISSION adviser for the Fund (‘‘Adviser’’), and
• Send paper comments in triplicate Invesco Advisers, Inc. is the sub-adviser
to Secretary, Securities and Exchange [Release No. 34–79131; File No. SR– for the Fund (‘‘Sub-Adviser’’). The Bank
Commission, 100 F Street NE., NYSEArca-2016–97]
of New York Mellon (‘‘BNYM’’) will be
Washington, DC 20549–1090. the administrator, custodian, and
Self-Regulatory Organizations; NYSE
All submissions should refer to File Arca, Inc.; Order Instituting transfer agent for the Fund. Invesco
Proceedings To Determine Whether To Distributors, Inc. will be the Fund’s
Number SR–CBOE–2016–071. This file
Approve or Disapprove a Proposed distributor (‘‘Distributor’’). The
number should be included on the
Rule Change Relating to the Listing Exchange represents that, while neither
subject line if email is used. To help the the Adviser nor the Sub-Adviser is
Commission process and review your and Trading of Shares of PowerShares
Government Collateral Pledge Portfolio registered as a broker-dealer, the
comments more efficiently, please use Adviser and Sub-Adviser are each
only one method. The Commission will Under NYSE Arca Equities Rule 8.600
affiliated with a broker-dealer. The
post all comments on the Commission’s October 21, 2016. Adviser and Sub-Adviser each has
Internet Web site (http://www.sec.gov/ implemented and will maintain a fire
rules/sro.shtml). Copies of the I. Introduction wall with respect to its affiliated broker-
submission, all subsequent On July 6, 2016, NYSE Arca, Inc. dealer regarding access to information
amendments, all written statements (‘‘Exchange’’) filed with the Securities concerning the composition of, and
with respect to the proposed rule and Exchange Commission changes to, the Fund’s portfolio.8 In the
change that are filed with the (‘‘Commission’’), pursuant to Section event (a) the Adviser or Sub-Adviser
Commission, and all written 19(b)(1) of the Securities Exchange Act becomes registered as a broker-dealer or
communications relating to the of 1934 (‘‘Act’’)1 and Rule 19b–4 newly affiliated with a broker-dealer, or
proposed rule change between the thereunder,2 a proposed rule change to (b) any new adviser or sub-adviser
Commission and any person, other than list and trade shares (‘‘Shares’’) of the becomes registered as a broker-dealer or
those that may be withheld from the PowerShares Government Collateral newly affiliated with a broker-dealer, it
public in accordance with the Pledge Portfolio (‘‘Fund’’). The will implement a fire wall with respect
provisions of 5 U.S.C. 552, will be proposed rule change was published for to its relevant personnel or such broker-
comment in the Federal Register on July dealer affiliate regarding access to
available for Web site viewing and
26, 2016.3 On September 1, 2016, information concerning the composition
printing in the Commission’s Public
pursuant to Section 19(b)(2) of the Act,4 of, and changes to, the portfolio, and
Reference Room, 100 F Street NE.,
the Commission designated a longer
Washington, DC 20549, on official an amendment to its registration statement on Form
period within which to approve the
business days between the hours of proposed rule change, disapprove the N–1A under the Securities Act of 1933 and the 1940
10:00 a.m. and 3:00 p.m. Copies of the Act relating to the Fund (File Nos. 333–147622 and
proposed rule change, or institute 811–22148) (‘‘Registration Statement’’). In addition,
filing also will be available for proceedings to determine whether to the Exchange states that the Trust and the Adviser
inspection and copying at the principal disapprove the proposed rule change.5 (as defined herein) have obtained certain exemptive
office of the Exchange. All comments relief from the Commission under the 1940 Act. See
The Commission has received no Investment Company Act Release No. 28171
received will be posted without change; comments on the proposed rule change. (February 27, 2008) (File No. 812–13386)
the Commission does not edit personal This order institutes proceedings under (‘‘Exemptive Order’’). The Exchange represents that
identifying information from the Fund will be offered in reliance upon the
Section 19(b)(2)(B) of the Act 6 to Exemptive Order issued to the Trust and the
submissions. You should submit only determine whether to approve or Adviser.
information that you wish to make disapprove the proposed rule change. 8 The Exchange further represents that an
available publicly. All submissions investment adviser to an open-end fund is required
II. Exchange’s Description of the to be registered under the Investment Advisers Act
should refer to File Number SR–CBOE–
Proposal of 1940 (‘‘Advisers Act’’). As a result, the Adviser
2016–071, and should be submitted on and Sub-Adviser and their related personnel are
or before November 17, 2016. The Exchange proposes to list and subject to the provisions of Rule 204A–1 under the
trade the Shares of the Fund under Advisers Act relating to codes of ethics. This Rule
For the Commission, by the Division of requires investment advisers to adopt a code of
NYSE Arca Equities Rule 8.600, which
Trading and Markets, pursuant to delegated ethics that reflects the fiduciary nature of the
governs the listing and trading of relationship to clients as well as compliance with
authority.44
Managed Fund Shares. The Fund is a other applicable securities laws. Accordingly,
Brent J. Fields, series of the PowerShares Actively procedures designed to prevent the communication
Secretary. Managed Exchange Traded Trust and misuse of non-public information by an
investment adviser must be consistent with Rule
[FR Doc. 2016–25940 Filed 10–26–16; 8:45 am] (‘‘Trust’’).7 Invesco PowerShares Capital 204A–1 under the Advisers Act. The Exchange
BILLING CODE 8011–01–P represents that the Adviser and its related
1 15 U.S.C. 78s(b)(1). personnel are subject to Advisers Act Rule 204A–
2 17 CFR 240.19b–4. 1. In addition, Rule 206(4)–7 under the Advisers
3 See Securities Exchange Act Release No. 78373 Act makes it unlawful for an investment adviser to
(July 20, 2016), 81 FR 48869 (‘‘Notice’’). provide investment advice to clients unless such
4 15 U.S.C. 78s(b)(2). investment adviser has (i) adopted and
5 See Securities Exchange Act Release No. 78750,
implemented written policies and procedures
reasonably designed to prevent violation, by the
81 FR 62233 (September 8, 2016). The Commission
sradovich on DSK3GMQ082PROD with NOTICES
investment adviser and its supervised persons, of
designated October 24, 2016 as the date by which the Advisers Act and the Commission rules adopted
the Commission shall either approve or disapprove, thereunder; (ii) implemented, at a minimum, an
or institute proceedings to determine whether to annual review regarding the adequacy of the
disapprove, the proposed rule change. policies and procedures established pursuant to
6 15 U.S.C. 78s(b)(2)(B).
subparagraph (i) above and the effectiveness of their
7 The Exchange represents that the Trust is implementation; and (iii) designated an individual
registered under the Investment Company Act of (who is a supervised person) responsible for
1940 (‘‘1940 Act’’). According to the Exchange, on administering the policies and procedures adopted
44 17 CFR 200.30–3(a)(12). May 20, 2016, the Trust filed with the Commission under subparagraph (i) above.
VerDate Sep<11>2014 17:43 Oct 26, 2016 Jkt 241001 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1](https://thefederalregister.org/doc/81_FR_75048/page/1.svg)
![74842 Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices
provide comments on the proposed rule arguments with respect to the issues submission, all subsequent
change. identified above, as well as any other amendments, all written statements
Pursuant to Section 19(b)(2)(B) of the concerns they may have with the with respect to the proposed rule
Act,13 the Commission is providing proposal. In particular, the Commission change that are filed with the
notice of the grounds for disapproval invites the written views of interested Commission, and all written
under consideration. The Commission is persons concerning whether the communications relating to the
instituting proceedings to allow for proposal is consistent with Section proposed rule change between the
additional analysis of the proposed rule 6(b)(5) or any other provision of the Act, Commission and any person, other than
change’s consistency with Section or the rules and regulations thereunder. those that may be withheld from the
6(b)(5) of the Act, which requires, Although there do not appear to be any public in accordance with the
among other things, that the rules of a issues relevant to approval or provisions of 5 U.S.C. 552, will be
national securities exchange be disapproval that would be facilitated by available for Web site viewing and
‘‘designed to prevent fraudulent and an oral presentation of views, data, and printing in the Commission’s Public
manipulative acts and practices, to arguments, the Commission will Reference Room, 100 F Street NE.,
promote just and equitable principles of consider, pursuant to Rule 19b-4, any Washington, DC 20549, on official
trade,’’ and ‘‘to protect investors and the request for an opportunity to make an business days between the hours of
public interest.’’ 14 oral presentation.15 10:00 a.m. and 3:00 p.m. Copies of the
Under the proposal, BNYM will Interested persons are invited to filing also will be available for
calculate the Fund’s NAV at 12:00 p.m., submit written data, views, and inspection and copying at the principal
Eastern time, every day the New York arguments regarding whether the office of the Exchange. All comments
Stock Exchange is open. In addition, to proposal should be approved or received will be posted without change;
initiate an order for a creation unit, the disapproved by November 17, 2016. the Commission does not edit personal
Distributor or its agent must receive an Any person who wishes to file a rebuttal identifying information from
irrevocable order from an authorized to any other person’s submission must submissions. You should submit only
participant, in proper form, no later file that rebuttal by December 1, 2016. information that you wish to make
than 12:00 p.m., Eastern time, in each The Commission asks that commenters available publicly. All submissions
case on the date such order is placed in address the sufficiency of the should refer to File Number SR–
order to receive that day’s NAV. Exchange’s statements in support of the NYSEArca–2016–97 and should be
Likewise, with respect to redemptions, proposal, which are set forth in the submitted on or before November 17,
an authorized participant must submit Notice,16 in addition to any other 2016. Rebuttal comments should be
an irrevocable request to redeem shares comments they may wish to submit submitted by December 1, 2016.
of the Fund generally before 12:00 p.m., about the proposed rule change. For the Commission, by the Division of
Eastern time on any business day in Comments may be submitted by any Trading and Markets, pursuant to delegated
order to receive that day’s NAV. The of the following methods: authority.17
Commission notes the proposal does not Brent J. Fields,
provide any explanation for the early Electronic Comments
Secretary.
NAV calculation time and creation and • Use the Commission’s Internet
[FR Doc. 2016–25938 Filed 10–26–16; 8:45 am]
redemption cut-off time. The proposal comment form (http://www.sec.gov/
BILLING CODE 8011–01–P
also does not explain whether the early rules/sro.shtml); or
NAV calculation time and creation and • Send an email to rule-comments@
redemption cut-off time would have any sec.gov. Please include File Number SR–
SECURITIES AND EXCHANGE
impact on the trading of the Shares, NYSEArca–2016–97 on the subject line.
COMMISSION
including any impact on arbitrage. Paper Comments
Accordingly, the Commission seeks [Release No. 34–79135; File No. SR–
commenters’ views on the 12:00 p.m. • Send paper comments in triplicate NYSEMKT–2016–45]
NAV calculation time and creation and to Secretary, Securities and Exchange
Commission, 100 F Street NE., Self-Regulatory Organizations; NYSE
redemption cut-off time, and on
Washington, DC 20549–1090. MKT LLC; Order Disapproving a
whether the Exchange’s statements
All submissions should refer to File Proposed Rule Change To Modify the
relating to the NAV calculation and the
Number SR–NYSEArca–2016–97. This NYSE Amex Options Fee Schedule
creation and redemption process
file number should be included on the With Respect to Fees, Rebates, and
support a determination that the listing
subject line if email is used. To help the Credits for Transactions in the
and trading of the Shares would be
Commission process and review your Customer Best Execution Auction
consistent with Section 6(b)(5) of the
Act, which, among other things, comments more efficiently, please use October 21, 2016.
requires that the rules of an exchange be only one method. The Commission will
designed to prevent fraudulent and post all comments on the Commission’s I. Introduction
manipulative acts and practices, to Internet Web site (http://www.sec.gov/ On April 11, 2016, NYSE MKT LLC
promote just and equitable principles of rules/sro.shtml). Copies of the (the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed
trade, and to protect investors and the with the Securities and Exchange
15 Section 19(b)(2) of the Act, as amended by the
public interest. Commission (the ‘‘Commission’’),
Securities Acts Amendments of 1975, Public Law
pursuant to Section 19(b)(1) of the
IV. Procedure: Request for Written 94–29 (June 4, 1975), grants the Commission
sradovich on DSK3GMQ082PROD with NOTICES
flexibility to determine what type of proceeding— Securities Exchange Act of 1934 (the
Comments ‘‘Act’’),1 and Rule 19b–4 thereunder,2 a
either oral or notice and opportunity for written
The Commission requests that comments—is appropriate for consideration of a proposed rule change (File No. SR–
interested persons provide written particular proposal by a self-regulatory
organization. See Securities Acts Amendments of
NYSEMKT–2016–45) to modify the
submissions of their views, data, and 1975, Senate Comm. on Banking, Housing & Urban
17 17 CFR 200.30–3(a)(57).
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
13 Id. (1975). 1 15 U.S.C. 78s(b)(1).
14 15 U.S.C. 78f(b)(5). 16 See supra note 3. 2 17 CFR 240.19b–4.
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Document Created: 2016-10-27 01:52:47
Document Modified: 2016-10-27 01:52:47
| 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 74840 |
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