81_FR_86990 81 FR 86759 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Amend the Continued Listing Requirements for Exchange-Traded Products

81 FR 86759 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Amend the Continued Listing Requirements for Exchange-Traded Products

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 231 (December 1, 2016)

Page Range86759-86760
FR Document2016-28826

Federal Register, Volume 81 Issue 231 (Thursday, December 1, 2016)
[Federal Register Volume 81, Number 231 (Thursday, December 1, 2016)]
[Notices]
[Pages 86759-86760]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28826]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79399; File No. SR-NASDAQ-2016-135]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Designation of a Longer Period for Commission Action on a 
Proposed Rule Change To Amend the Continued Listing Requirements for 
Exchange-Traded Products

November 25, 2016.
    On September 30, 2016, The NASDAQ Stock Market LLC (``Nasdaq'') 
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 
amend: (a) The continued listing requirements for exchange-traded 
products in the Nasdaq Rule 5700 Series; and (b) certain requirements 
under Nasdaq Rule 5810 (Notification of Deficiency by the Listing 
Qualifications Department). The proposed rule change was published for 
comment in the Federal Register on October 17, 2016.\3\ The Commission 
received no comment letters on the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 79081 (October 11, 
2016), 81 FR 71548.

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[[Page 86760]]

    Section 19(b)(2) of the Act \4\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day after publication of the notice for this proposed rule change 
is December 1, 2016. The Commission is extending this 45-day time 
period.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer 
period within which to take action on the proposed rule change so that 
it has sufficient time to consider the proposed rule change. 
Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\5\ designates January 15, 2017, as the date by which the 
Commission shall either approve or disapprove or institute proceedings 
to determine whether to disapprove the proposed rule change (File 
Number SR-NASDAQ-2016-135).
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    \5\ Id.
    \6\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
Brent J. Fields,
Secretary.
[FR Doc. 2016-28826 Filed 11-30-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                             Federal Register / Vol. 81, No. 231 / Thursday, December 1, 2016 / Notices                                                  86759

                                                  proposed new products on the                            C. Self-Regulatory Organization’s                     public in accordance with the
                                                  Exchange, just as they are currently                    Statement on Comments on the                          provisions of 5 U.S.C. 552, will be
                                                  traded on other exchanges. The                          Proposed Rule Change Received from                    available for Web site viewing and
                                                  proposed changes do nothing more than                   Members, Participants, or Others                      printing in the Commission’s Public
                                                  match Exchange rules with what is                         No written comments were solicited                  Reference Room, 100 F Street NE.,
                                                  currently available on other exchanges.                 or received with respect to the proposed              Washington, DC 20549 on official
                                                  The Exchange believes that by                           rule change.                                          business days between the hours of
                                                  conforming its rules and allowing                                                                             10:00 a.m. and 3:00 p.m. Copies of the
                                                  trading opportunities on the Exchange                   III. Date of Effectiveness of the                     filing also will be available for
                                                  that are already allowed by rule on                     Proposed Rule Change and Timing for                   inspection and copying at the principal
                                                  another market, the proposal would                      Commission Action                                     office of the Exchange. All comments
                                                  offer another venue for trading                           Within 45 days of the date of                       received will be posted without change;
                                                  Exchange Traded Products and thereby                    publication of this notice in the Federal             the Commission does not edit personal
                                                  promote broader competition among                       Register or up to 90 days (i) as the                  identifying information from
                                                  exchanges. The Exchange believes that                   Commission may designate if it finds                  submissions. You should submit only
                                                  individuals and entities permitted to                   such longer period to be appropriate                  information that you wish to make
                                                  make markets on the Exchange in the                     and publishes its reasons for so finding              available publicly. All submissions
                                                  proposed new products should enhance                    or (ii) as to which the self-regulatory               should refer to File Number SR–
                                                  competition within the mechanism of a                   organization consents, the Commission                 NYSEMKT–2016–103 and should be
                                                  free and open market and a national                     will:                                                 submitted on or before December 22,
                                                  market system, and customers and other                    (A) By order approve or disapprove                  2016.
                                                  investors in the national market system                 the proposed rule change, or                            For the Commission, by the Division of
                                                  should benefit from more depth and                        (B) institute proceedings to determine              Trading and Markets, pursuant to delegated
                                                  liquidity in the market for the proposed                whether the proposed rule change                      authority.80
                                                  new products.                                           should be disapproved.                                Brent J. Fields,
                                                     The proposed change is not designed                                                                        Secretary.
                                                                                                          IV. Solicitation of Comments
                                                  to address any competitive issue, but                                                                         [FR Doc. 2016–28827 Filed 11–30–16; 8:45 am]
                                                  rather to adopt new rules that are word-                  Interested persons are invited to                   BILLING CODE 8011–01–P
                                                  for-word identical to the rules of NYSE                 submit written data, views, and
                                                  Arca (other than with respects[sic] to                  arguments concerning the foregoing,
                                                  certain non-substantive and technical                   including whether the proposed rule                   SECURITIES AND EXCHANGE
                                                  amendments described above), to                         change is consistent with the Act.                    COMMISSION
                                                  support the Exchange’s new Pillar                       Comments may be submitted by any of
                                                  trading platform. As discussed in detail                the following methods:                                [Release No. 34–79399; File No. SR–
                                                                                                                                                                NASDAQ–2016–135]
                                                  above, with this rule filing, the                       Electronic Comments
                                                  Exchange is not proposing to change its                    • Use the Commission’s Internet                    Self-Regulatory Organizations; The
                                                  core functionality, but rather to adopt a               comment form (http://www.sec.gov/                     NASDAQ Stock Market LLC; Notice of
                                                  rule numbering framework and rules                      rules/sro.shtml); or                                  Designation of a Longer Period for
                                                  based on the rules of NYSE Arca. The                       • Send an email to rule-comments@                  Commission Action on a Proposed
                                                  Exchange believes that the proposed                     sec.gov. Please include File Number SR–               Rule Change To Amend the Continued
                                                  rule change would promote consistent                    NYSEMKT–2016–103 on the subject                       Listing Requirements for Exchange-
                                                  use of terminology to support the Pillar                line.                                                 Traded Products
                                                  trading platform on both the Exchange
                                                  and its affiliate, NYSE Arca, thus                      Paper Comments                                        November 25, 2016.
                                                  making the Exchange’s rules easier to                      • Send paper comments in triplicate                   On September 30, 2016, The
                                                  navigate.                                               to Brent J. Fields, Secretary, Securities             NASDAQ Stock Market LLC (‘‘Nasdaq’’)
                                                                                                          and Exchange Commission, 100 F Street                 filed with the Securities and Exchange
                                                  B. Self-Regulatory Organization’s                                                                             Commission (‘‘Commission’’), pursuant
                                                  Statement on Burden on Competition                      NE., Washington, DC 20549–1090.
                                                                                                                                                                to Section 19(b)(1) of the Securities
                                                                                                          All submissions should refer to File                  Exchange Act of 1934 (‘‘Act’’) 1 and Rule
                                                     The Exchange does not believe that                   Number SR–NYSEMKT–2016–103. This                      19b–4 thereunder,2 a proposed rule
                                                  the proposed rule change will impose                    file number should be included on the                 change to amend: (a) The continued
                                                  any burden on competition that is not                   subject line if email is used. To help the            listing requirements for exchange-traded
                                                  necessary or appropriate in furtherance                 Commission process and review your                    products in the Nasdaq Rule 5700
                                                  of the purposes of the Act. To the                      comments more efficiently, please use                 Series; and (b) certain requirements
                                                  contrary, the current variances between                 only one method. The Commission will                  under Nasdaq Rule 5810 (Notification of
                                                  the Exchange’s rules for the trading                    post all comments on the Commission’s                 Deficiency by the Listing Qualifications
                                                  pursuant to UTP and the rules of other                  Internet Web site (http://www.sec.gov/                Department). The proposed rule change
                                                  exchanges limit competition in that                     rules/sro.shtml). Copies of the                       was published for comment in the
                                                  there are certain products that the                     submission, all subsequent                            Federal Register on October 17, 2016.3
                                                  Exchange cannot trade pursuant to UTP,                  amendments, all written statements
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                                                                                                                                The Commission received no comment
                                                  while other exchanges can trade such                    with respect to the proposed rule                     letters on the proposed rule change.
                                                  products. Thus, approval of the                         change that are filed with the
                                                  proposed rule change will promote                       Commission, and all written                             80 17 CFR 200.30–3(a)(12).
                                                  competition because it will allow the                   communications relating to the                          1 15 U.S.C. 78s(b)(1).
                                                  Exchange to compete with other                          proposed rule change between the                        2 17 CFR 240.19b–4.
                                                  national securities exchanges for the                   Commission and any person, other than                   3 See Securities Exchange Act Release No. 79081

                                                  trading of securities pursuant to UTP.                  those that may be withheld from the                   (October 11, 2016), 81 FR 71548.



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                                                  86760                          Federal Register / Vol. 81, No. 231 / Thursday, December 1, 2016 / Notices

                                                    Section 19(b)(2) of the Act 4 provides                    thereunder,2 a proposed rule change to                      The investment adviser to the Fund
                                                  that, within 45 days of the publication                     list and trade shares (‘‘Shares’’) of the                will be Virtus ETF Advisers LLC
                                                  of notice of the filing of a proposed rule                  Virtus Enhanced U.S. Equity ETF                          (‘‘Adviser’’). ETF Distributors LLC will
                                                  change, or within such longer period up                     (‘‘Fund’’), a series of Virtus ETF Trust II              serve as the distributor (‘‘Distributor’’)
                                                  to 90 days as the Commission may                            (‘‘Trust’’), under Commentary .01 to                     of Fund shares on an agency basis. The
                                                  designate if it finds such longer period                    NYSE Arca Equities Rule 5.2(j)(3)                        Bank of New York Mellon
                                                  to be appropriate and publishes its                         (‘‘Investment Company Units’’). The                      (‘‘Administrator’’) will be the
                                                  reasons for so finding or as to which the                   proposed rule change was published for                   administrator, custodian and transfer
                                                  self-regulatory organization consents,                      comment in the Federal Register on                       agent for the Fund.
                                                  the Commission shall either approve the                     October 20, 2016.3 The Commission                        A. The Fund’s Principal Investments
                                                  proposed rule change, disapprove the                        received no comments on the proposed
                                                  proposed rule change, or institute                          rule change. This order approves the                        According to the Exchange, the
                                                  proceedings to determine whether the                        proposed rule change.                                    Fund’s investment objective is to seek
                                                  proposed rule change should be                                                                                       investment results that, before fees and
                                                                                                              II. Exchange’s Description of the                        expenses, closely correspond to the
                                                  disapproved. The 45th day after
                                                                                                              Proposal 4                                               price and yield performance of the
                                                  publication of the notice for this
                                                  proposed rule change is December 1,                            The Exchange proposes to list and                     Rampart Enhanced U.S. Equity Index
                                                  2016. The Commission is extending this                      trade Shares of the Fund under                           (‘‘Index’’).7 Under normal market
                                                  45-day time period.                                         Commentary .01 to NYSE Arca Equities                     conditions,8 the Fund will invest not
                                                    The Commission finds that it is                           Rule 5.2(j)(3), which governs the listing                less than 80% of its total assets in
                                                  appropriate to designate a longer period                    and trading of Investment Company                        component securities of the Index.
                                                  within which to take action on the                          Units on the Exchange. The Exchange                      Additionally, under normal market
                                                  proposed rule change so that it has                         represents that it has submitted the                     conditions, the Fund will invest not less
                                                  sufficient time to consider the proposed                    proposed rule change because the                         than 80% of its total assets in U.S.
                                                  rule change. Accordingly, the                               underlying index of the Fund does not                    exchange-traded common stocks. The
                                                  Commission, pursuant to Section                             meet all of the generic listing                          Fund will also seek to generate
                                                  19(b)(2) of the Act,5 designates January                    requirements of Commentary .01(a)(A)                     additional income by writing SPX call
                                                  15, 2017, as the date by which the                          to NYSE Arca Equities Rule 5.2(j)(3),                    options and will seek additional capital
                                                  Commission shall either approve or                          applicable to the listing of Investment                  appreciation by purchasing SPX call
                                                  disapprove or institute proceedings to                                                                               options.
                                                                                                              Company Units based upon an index of
                                                  determine whether to disapprove the                         ‘‘US Component Stocks.’’ Specifically,                   B. The Fund’s Non-Principal
                                                  proposed rule change (File Number SR–                       as discussed in the Notice,5 options on                  Investments
                                                  NASDAQ–2016–135).                                           the S&P 500 index may be Index                             While the Fund, under normal market
                                                    For the Commission, by the Division of                    components. Consequently, the Index is                   conditions will invest at least 80% of its
                                                  Trading and Markets, pursuant to delegated                  not composed entirely of US                              net assets in the securities and financial
                                                  authority.6                                                 Component Stocks, and therefore the                      instruments described above, the Fund
                                                  Brent J. Fields,                                            Shares do not satisfy the requirements                   may invest its remaining assets in the
                                                  Secretary.                                                  for generic listing under Commentary                     securities and financial instruments
                                                  [FR Doc. 2016–28826 Filed 11–30–16; 8:45 am]                .01(a)(A) to NYSE Arca Equities Rule                     described below.
                                                  BILLING CODE 8011–01–P                                      5.2(j)(3).                                                 The Fund may invest in short-term,
                                                                                                                 The Fund will be an index-based                       high quality securities issued or
                                                                                                              exchange traded fund (‘‘ETF’’). The                      guaranteed by the U.S. government (in
                                                  SECURITIES AND EXCHANGE                                     Shares will be offered by the Trust,                     addition to U.S. Treasury securities) and
                                                  COMMISSION                                                  which is registered with the                             non-U.S. governments, and each of their
                                                  [Release No. 34–79402; File No. SR–
                                                                                                              Commission as an investment company                      agencies and instrumentalities; debt
                                                  NYSEArca–2016–131]                                          and has filed a registration statement on                securities issued by U.S. government
                                                                                                              Form N–1A (the ‘‘Registration                            sponsored enterprises; repurchase
                                                  Self-Regulatory Organizations; NYSE                         Statement’’) with the Commission on
                                                  Arca, Inc.; Order Approving a                               behalf of the Fund.6                                     Company Act Release No. 30825 (December 11,
                                                  Proposed Rule Change Relating To                                                                                     2013) (File No. 812–14212).
                                                                                                                                                                          7 According to the Exchange, the Index was
                                                                                                                2 17  CFR 240.19b–4.
                                                  Listing and Trading of Shares of the                                                                                 developed by Rampart Investment Management
                                                                                                                3 See  Securities Exchange Act Release No. 79101
                                                  Virtus Enhanced U.S. Equity ETF                                                                                      Company, LLC (‘‘Index Provider’’), and is
                                                                                                              (October 14, 2016), 81 FR 72630 (‘‘Notice’’).
                                                  Under Commentary .01 to NYSE Arca                              4 The Commission notes that additional
                                                                                                                                                                       calculated and maintained by NYSE Global Index
                                                  Equities Rule 5.2(j)(3)                                                                                              Group (‘‘Index Calculation Agent’’). The Index
                                                                                                              information regarding the Fund, the Trust, and the       Provider is affiliated with the Adviser and the
                                                                                                              Shares, including investment strategies, risks,          Distributor. The Index Calculation Agent is not
                                                  November 25, 2016.                                          creation and redemption procedures, fees, portfolio      affiliated with the Adviser, Distributor,
                                                                                                              holdings disclosure policies, calculation of net asset   Administrator, or the Trust.
                                                  I. Introduction                                             value (‘‘NAV’’), distributions, and taxes, among            8 The term ‘‘normal market conditions’’ is defined
                                                     On October 3, 2016, NYSE Arca, Inc.                      other things, can be found in the Notice, and the        in NYSE Arca Equities Rule 8.600(c)(5). On a
                                                                                                              Registration Statement, as applicable. See Notice,
                                                  (‘‘Exchange’’) filed with the Securities                    supra note 3, and Registration Statement, infra
                                                                                                                                                                       temporary basis, including for defensive purposes,
                                                  and Exchange Commission                                                                                              during the initial invest-up period and during
                                                                                                              note 6.                                                  periods of high cash inflows or outflows, the Fund
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                  (‘‘Commission’’), pursuant to Section                          5 See Notice, supra note 3, 81 FR at 72631.
                                                                                                                                                                       may depart from its principal investment strategies;
                                                  19(b)(1) of the Securities Exchange Act                        6 The Exchange represents that, on September 1,
                                                                                                                                                                       for example, it may hold a higher than normal
                                                  of 1934 (‘‘Act’’) 1 and Rule 19b–4                          2016, the Trust filed a Registration Statement on        proportion of its assets in cash. During such
                                                                                                              Form N–1A under the Securities and Exchange Act          periods, the Fund may not be able to achieve its
                                                    4 15
                                                                                                              of 1933 and the Investment Company Act of 1940           investment objectives. The Fund may adopt a
                                                            U.S.C. 78s(b)(2).                                 (‘‘1940 Act’’) (File Nos. 333–206600 and 811–            defensive strategy when the Adviser believes
                                                    5 Id.
                                                                                                              23078). According to the Exchange, the Trust has         securities in which the Fund normally invests have
                                                    6 17    CFR 200.30–3(a)(31).                              obtained certain exemptive relief from the               elevated risks due to political or economic factors
                                                    1 15    U.S.C. 78s(b)(1).                                 Commission under the 1940 Act. See Investment            and in other extraordinary circumstances.



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Document Created: 2018-02-14 09:00:55
Document Modified: 2018-02-14 09:00:55
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 86759 

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