81_FR_88519 81 FR 88284 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing of Proposed Rule Changes to BZX Rule 14.11, Other Securities, and BZX Rule 14.12, Failure To Meet Listing Standards

81 FR 88284 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing of Proposed Rule Changes to BZX Rule 14.11, Other Securities, and BZX Rule 14.12, Failure To Meet Listing Standards

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 235 (December 7, 2016)

Page Range88284-88286
FR Document2016-29294

Federal Register, Volume 81 Issue 235 (Wednesday, December 7, 2016)
[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Notices]
[Pages 88284-88286]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29294]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79450; File No. SR-BatsBZX-2016-80]


Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of 
Filing of Proposed Rule Changes to BZX Rule 14.11, Other Securities, 
and BZX Rule 14.12, Failure To Meet Listing Standards

December 1, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on November 18, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission (``SEC'' or 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the Exchange. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the listing rules for 
exchange-traded products in Bats Rule 14.11 (``ETPs'') to add 
additional continued listing standards as well as a related amendment 
to Rule 14.12, entitled ``Failure to Meet Listing Standards.'' The 
Exchange is also proposing to make certain cleanup changes throughout 
Rule 14.11 in order to make the rule text more clear.
    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant parts 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 amend the listing rules for ETPs in Bats 
Rule 14.11, entitled ``Other Securities,'' to add additional continued 
listing standards as well as a related amendment to Rule 14.12, 
entitled ``Failure to Meet Listing Standards.'' The Exchange is also 
proposing to make certain cleanup changes throughout Rule 14.11 in 
order to make the rule text more clear.
    The proposed rule changes are being made at the request of and as 
part of discussions with the Commission. Based on concerns about 
certain of the ETP listing rules applying only on an initial basis, SEC 
staff has requested that the Exchange adopt certain additional 
continued listing standards for ETPs. As a result, the proposed 
amendment reflects guidance provided by SEC staff to clarify that most 
initial listing standards, as well as certain representations 
(``Continued Listing Representations'') included in Exchange rule 
filings pursuant to Section 19(b) of the Act \3\ to list an ETP on the 
Exchange (``Rule Filing''), are also considered continued listing 
standards. Continued Listing Representations will also be required to 
be maintained on a continuous basis and include any of the 
representations regarding the index composition, the description of the 
portfolio or reference assets, limitations on portfolio holdings or 
reference assets,

[[Page 88285]]

dissemination and availability of index and intraday indicative values 
(as applicable), and the applicability of Exchange rules and 
surveillance procedures made in any filing to list a series of ETPs.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(b).
---------------------------------------------------------------------------

    The proposed rule changes require that ETPs listed by the Exchange 
without a Rule Filing must maintain the initial index or reference 
asset criteria, among other requirements, on both an initial listing 
and continual basis. For example, in the case of a domestic equity 
index, these criteria generally include: (a) Stocks with 90% of the 
weight of the index must have a minimum market value of at least $75 
million; (b) stocks with 70% of the weight of the index must have a 
minimum monthly trading volume of at least 250,000 shares; (c) the most 
heavily weighted component cannot exceed 30% of the weight of the 
index, and the five most heavily weighted stocks cannot exceed 65%; (d) 
there must be at least 13 stocks in the index; and (e) all securities 
in the index must be listed in the U.S. Such requirements are currently 
only applicable on an initial listing basis, but the proposal would 
require that such criteria be met on a continual basis as well. The 
Exchange is also proposing similar changes as it relates to the 
comparable criteria for international indexes, fixed-income indexes, 
indexes with a combination of components, and other underlying 
reference assets. Where an ETP fails to meet the proposed applicable 
continued listing requirements, the Exchange would, generally, initiate 
delisting proceedings pursuant to Rule 14.12.
    If an ETP is listed on the Exchange pursuant to a Rule Filing, this 
proposed rule change would require that the issuer of the security 
comply on an ongoing basis with any Continued Listing Representations, 
which include any of the representations in the rule filing regarding 
the index composition, the description of the portfolio or reference 
assets, limitations on portfolio holdings or reference assets, 
dissemination and availability of index and intraday indicative values 
(as applicable), and the applicability of Exchange rules and 
surveillance procedures made in any filing to list a series of ETPs. As 
proposed, where an ETP fails to meet the Continued Listing 
Representations, the Exchange would initiate delisting proceedings 
pursuant to Rule 14.12.
    The Exchange is also proposing to modify its rules such that 
issuers of securities listed under Rule 14.11 would be required to 
provide the Exchange with prompt notification after an Executive 
Officer \4\ of the [sic] becomes aware of any noncompliance. In 
addition, while listed ETPs are currently subject to the delisting 
process in Rule 14.12, the rules will be clarified to make this 
explicit. As proposed, Rule 14.12 will also be clarified to make 
explicit that an ETP that it is deficient under one or more listing 
standards may submit a plan to regain compliance to the Listing 
Qualifications Department. In this regard, the Exchange proposes to 
allow issuers of ETPs 45 calendar days to submit such a plan, which is 
consistent with deficiencies from most other rules that allow issuers 
to submit a plan to regain compliance.\5\ Exchange staff will review 
the plan and may grant a limited period of time for the ETP to regain 
compliance as permitted under Rule 14.12. If Exchange staff does not 
accept the plan, a Staff Delisting Determination will be issued, which 
could be appealed to a Hearings Panel pursuant to Rule 14.12(h).
---------------------------------------------------------------------------

    \4\ As defined in Rule 14.10(c)(1)(A), the term ``Executive 
Officer'' means those officers covered in Rule 16a-1(f) under the 
Act.
    \5\ The Exchange notes that the following deficiencies are 
allowed 45 calendar days to submit a plan to regain compliance: 
Deficiencies from the standards of Rules 14.10(f)(3) (Quorum), 
14.10(h) (Review of Related Party Transactions), 14.10(i) 
(Shareholder Approval), 14.6(c)(3) (Auditor Registration), 14.7 
(Direct Registration Program), 14.10(d) (Code of Conduct), 
14.10(e)(1)(D)(v) (Quorum of Limited Partnerships), 
14.10(e)(1)(D)(vii) (Related Party Transactions of Limited 
Partnerships), or 14.10(j) (Voting Rights).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act \6\ in general and Section 6(b)(5) of the Act \7\ in 
particular in that it is designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and, in general 
to protect investors and the public interest.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposed rule changes accomplish these objectives by enhancing 
the current continued listing standards by clarifying that most initial 
listing standards, as well as Continued Listing Representations, are 
considered continued listing standards. Additionally, the Exchange is 
proposing to require issuers to provide the Exchange with prompt 
notification after an Executive Officer of the [sic] becomes aware of 
any noncompliance and to clarify that deficiencies will be subject to 
potential trade halts and delisting proceedings pursuant to Rule 14.12. 
The Exchange believes that these amendments will enhance the Exchange's 
listing rules, thereby serving to improve the national market system 
and protect investors and the public interest.
    The Exchange does not believe that the cleanup changes have any 
impact on the reasonable and equitable and not unfairly discriminatory 
nature of the proposal.
    For these reasons, the Exchange believes that the proposed rule 
change is consistent with the requirements of Section 6(b)(5) of the 
Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act, as amended. The Exchange 
believes that the proposed rule change to amend Rule 14.11 related to 
the listing of ETPs, the notification requirement in Rule 14.11(a), and 
the proposed related amendments to Rule 14.12 will have no impact on 
competition. Furthermore, since Commission staff has provided the same 
guidance regarding ETP continued listing requirements to all listing 
exchanges, the Exchange believes that there will be no effect on 
competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has 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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

[[Page 88286]]

Electronic Comments

     Use 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-BatsBZX-2016-80 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BatsBZX-2016-80. 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-BatsBZX-2016-80 and should 
be submitted on or before December 28, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-29294 Filed 12-6-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                    88284                    Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices

                                                    consistent with the protection of                       Reference Room, 100 F Street NE.,                     Rule 14.11 in order to make the rule text
                                                    investors and the public interest, the                  Washington, DC 20549 on official                      more clear.
                                                    proposed rule change has become                         business days between the hours of                       The text of the proposed rule change
                                                    effective pursuant to Section 19(b)(3)(A)               10:00 a.m. and 3:00 p.m. Copies of the                is available at the Exchange’s Web site
                                                    of the Act 11 and Rule 19b–4(f)(6)(iii)                 filing also will be available for                     at www.batstrading.com, at the
                                                    thereunder.12                                           inspection and copying at the principal               principal office of the Exchange, and at
                                                       At any time within 60 days of the                    office of the Exchange. All comments                  the Commission’s Public Reference
                                                    filing of the proposed rule change, the                 received will be posted without change;               Room.
                                                    Commission summarily may                                the Commission does not edit personal
                                                    temporarily suspend such rule change if                 identifying information from                          II. Self-Regulatory Organization’s
                                                    it appears to the Commission that such                  submissions. You should submit only                   Statement of the Purpose of, and
                                                    action is necessary or appropriate in the               information that you wish to make                     Statutory Basis for, the Proposed Rule
                                                    public interest, for the protection of                  available publicly. All submissions                   Change
                                                    investors, or otherwise in furtherance of               should refer to File Number SR–C2–                      In its filing with the Commission, the
                                                    the purposes of the Act. If the                         2016–023 and should be submitted on                   Exchange included statements
                                                    Commission takes such action, the                       or before December 28, 2016.                          concerning the purpose of and basis for
                                                    Commission will institute proceedings                     For the Commission, by the Division of              the proposed rule change and discussed
                                                    to determine whether the proposed rule                  Trading and Markets, pursuant to delegated            any comments it received on the
                                                    change should be approved or                            authority.13                                          proposed rule change. The text of these
                                                    disapproved.                                            Brent J. Fields.                                      statements may be examined at the
                                                                                                            Secretary.                                            places specified in Item IV below. The
                                                    IV. Solicitation of Comments
                                                                                                            [FR Doc. 2016–29286 Filed 12–6–16; 8:45 am]           Exchange has prepared summaries, set
                                                      Interested persons are invited to                                                                           forth in Sections A, B, and C below, of
                                                                                                            BILLING CODE 8011–01–P
                                                    submit written data, views, and                                                                               the most significant parts of such
                                                    arguments concerning the foregoing,                                                                           statements.
                                                    including whether the proposed rule                     SECURITIES AND EXCHANGE
                                                    change is consistent with the Act.                                                                            A. Self-Regulatory Organization’s
                                                                                                            COMMISSION                                            Statement of the Purpose of, and
                                                    Comments may be submitted by any of
                                                    the following methods:                                  [Release No. 34–79450; File No. SR-                   Statutory Basis for, the Proposed Rule
                                                                                                            BatsBZX–2016–80]                                      Change
                                                    Electronic Comments
                                                                                                            Self-Regulatory Organizations; Bats                   1. Purpose
                                                      • Use the Commission’s Internet
                                                    comment form (http://www.sec.gov/                       BZX Exchange, Inc.; Notice of Filing of                  The Exchange proposes to amend the
                                                    rules/sro.shtml); or                                    Proposed Rule Changes to BZX Rule                     listing rules for ETPs in Bats Rule 14.11,
                                                      • Send an email to rule-comments@                     14.11, Other Securities, and BZX Rule                 entitled ‘‘Other Securities,’’ to add
                                                    sec.gov. Please include File Number SR–                 14.12, Failure To Meet Listing                        additional continued listing standards
                                                    C2–2016–023 on the subject line.                        Standards                                             as well as a related amendment to Rule
                                                                                                            December 1, 2016.                                     14.12, entitled ‘‘Failure to Meet Listing
                                                    Paper Comments                                                                                                Standards.’’ The Exchange is also
                                                                                                               Pursuant to Section 19(b)(1) of the
                                                      • Send paper comments in triplicate                   Securities Exchange Act of 1934                       proposing to make certain cleanup
                                                    to Secretary, Securities and Exchange                   (‘‘Act’’),1 and Rule 19b–4 thereunder,2               changes throughout Rule 14.11 in order
                                                    Commission, 100 F Street NE.,                           notice is hereby given that on November               to make the rule text more clear.
                                                    Washington, DC 20549–1090.                              18, 2016, Bats BZX Exchange, Inc. (the                   The proposed rule changes are being
                                                    All submissions should refer to File                    ‘‘Exchange’’ or ‘‘BZX’’) filed with the               made at the request of and as part of
                                                    Number SR–C2–2016–023. This file                        Securities and Exchange Commission                    discussions with the Commission.
                                                    number should be included on the                        (‘‘SEC’’ or ‘‘Commission’’) the proposed              Based on concerns about certain of the
                                                    subject line if email is used. To help the              rule change as described in Items I and               ETP listing rules applying only on an
                                                    Commission process and review your                      II below, which Items have been                       initial basis, SEC staff has requested that
                                                    comments more efficiently, please use                   prepared by the Exchange. The                         the Exchange adopt certain additional
                                                    only one method. The Commission will                    Commission is publishing this notice to               continued listing standards for ETPs. As
                                                    post all comments on the Commission’s                   solicit comments on the proposed rule                 a result, the proposed amendment
                                                    Internet Web site (http://www.sec.gov/                  change from interested persons.                       reflects guidance provided by SEC staff
                                                    rules/sro.shtml). Copies of the                                                                               to clarify that most initial listing
                                                    submission, all subsequent                              I. Self-Regulatory Organization’s                     standards, as well as certain
                                                    amendments, all written statements                      Statement of the Terms of Substance of                representations (‘‘Continued Listing
                                                    with respect to the proposed rule                       the Proposed Rule Change                              Representations’’) included in Exchange
                                                    change that are filed with the                             The Exchange filed a proposal to                   rule filings pursuant to Section 19(b) of
                                                    Commission, and all written                             amend the listing rules for exchange-                 the Act 3 to list an ETP on the Exchange
                                                    communications relating to the                          traded products in Bats Rule 14.11                    (‘‘Rule Filing’’), are also considered
                                                    proposed rule change between the                        (‘‘ETPs’’) to add additional continued                continued listing standards. Continued
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    Commission and any person, other than                   listing standards as well as a related                Listing Representations will also be
                                                    those that may be withheld from the                     amendment to Rule 14.12, entitled                     required to be maintained on a
                                                    public in accordance with the                           ‘‘Failure to Meet Listing Standards.’’                continuous basis and include any of the
                                                    provisions of 5 U.S.C. 552, will be                     The Exchange is also proposing to make                representations regarding the index
                                                    available for Web site viewing and                      certain cleanup changes throughout                    composition, the description of the
                                                    printing in the Commission’s Public                                                                           portfolio or reference assets, limitations
                                                                                                              13 17 CFR 200.30–3(a)(12).                          on portfolio holdings or reference assets,
                                                      11 15 U.S.C. 78s(b)(3)(A).                              1 15 U.S.C. 78s(b)(1).
                                                      12 17 CFR 240.19b–4(f)(6).                              2 17 CFR 240.19b–4.                                   3 15   U.S.C. 78s(b).



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                                                                             Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices                                              88285

                                                    dissemination and availability of index                 Executive Officer 4 of the [sic] becomes                Exchange’s listing rules, thereby serving
                                                    and intraday indicative values (as                      aware of any noncompliance. In                          to improve the national market system
                                                    applicable), and the applicability of                   addition, while listed ETPs are currently               and protect investors and the public
                                                    Exchange rules and surveillance                         subject to the delisting process in Rule                interest.
                                                    procedures made in any filing to list a                 14.12, the rules will be clarified to make                 The Exchange does not believe that
                                                    series of ETPs.                                         this explicit. As proposed, Rule 14.12                  the cleanup changes have any impact on
                                                       The proposed rule changes require                    will also be clarified to make explicit                 the reasonable and equitable and not
                                                    that ETPs listed by the Exchange                        that an ETP that it is deficient under one              unfairly discriminatory nature of the
                                                    without a Rule Filing must maintain the                 or more listing standards may submit a                  proposal.
                                                    initial index or reference asset criteria,              plan to regain compliance to the Listing                   For these reasons, the Exchange
                                                    among other requirements, on both an                    Qualifications Department. In this                      believes that the proposed rule change
                                                    initial listing and continual basis. For                regard, the Exchange proposes to allow                  is consistent with the requirements of
                                                    example, in the case of a domestic                      issuers of ETPs 45 calendar days to                     Section 6(b)(5) of the Act.
                                                    equity index, these criteria generally                  submit such a plan, which is consistent
                                                    include: (a) Stocks with 90% of the                     with deficiencies from most other rules                 B. Self-Regulatory Organization’s
                                                    weight of the index must have a                         that allow issuers to submit a plan to                  Statement on Burden on Competition
                                                    minimum market value of at least $75                    regain compliance.5 Exchange staff will                    The Exchange does not believe that
                                                    million; (b) stocks with 70% of the                     review the plan and may grant a limited                 the proposed rule change will impose
                                                    weight of the index must have a                         period of time for the ETP to regain                    any burden on competition not
                                                    minimum monthly trading volume of at                    compliance as permitted under Rule                      necessary or appropriate in furtherance
                                                    least 250,000 shares; (c) the most                      14.12. If Exchange staff does not accept                of the purposes of the Act, as amended.
                                                    heavily weighted component cannot                       the plan, a Staff Delisting Determination               The Exchange believes that the
                                                    exceed 30% of the weight of the index,                  will be issued, which could be appealed                 proposed rule change to amend Rule
                                                    and the five most heavily weighted                      to a Hearings Panel pursuant to Rule                    14.11 related to the listing of ETPs, the
                                                    stocks cannot exceed 65%; (d) there                     14.12(h).                                               notification requirement in Rule
                                                    must be at least 13 stocks in the index;
                                                                                                            2. Statutory Basis                                      14.11(a), and the proposed related
                                                    and (e) all securities in the index must
                                                                                                               The Exchange believes that the                       amendments to Rule 14.12 will have no
                                                    be listed in the U.S. Such requirements
                                                                                                            proposal is consistent with Section 6(b)                impact on competition. Furthermore,
                                                    are currently only applicable on an
                                                                                                            of the Act 6 in general and Section                     since Commission staff has provided the
                                                    initial listing basis, but the proposal
                                                                                                            6(b)(5) of the Act 7 in particular in that              same guidance regarding ETP continued
                                                    would require that such criteria be met
                                                                                                            it is designed to promote just and                      listing requirements to all listing
                                                    on a continual basis as well. The
                                                                                                            equitable principles of trade, to remove                exchanges, the Exchange believes that
                                                    Exchange is also proposing similar
                                                                                                            impediments to and perfect the                          there will be no effect on competition.
                                                    changes as it relates to the comparable
                                                    criteria for international indexes, fixed-              mechanism of a free and open market                     C. Self-Regulatory Organization’s
                                                    income indexes, indexes with a                          and a national market system, and, in                   Statement on Comments on the
                                                    combination of components, and other                    general to protect investors and the                    Proposed Rule Change Received From
                                                    underlying reference assets. Where an                   public interest.                                        Members, Participants, or Others
                                                    ETP fails to meet the proposed                             The proposed rule changes
                                                    applicable continued listing                            accomplish these objectives by                            The Exchange has neither solicited
                                                    requirements, the Exchange would,                       enhancing the current continued listing                 nor received written comments on the
                                                    generally, initiate delisting proceedings               standards by clarifying that most initial               proposed rule change.
                                                    pursuant to Rule 14.12.                                 listing standards, as well as Continued                 III. Date of Effectiveness of the
                                                       If an ETP is listed on the Exchange                  Listing Representations, are considered                 Proposed Rule Change and Timing for
                                                    pursuant to a Rule Filing, this proposed                continued listing standards.                            Commission Action
                                                    rule change would require that the                      Additionally, the Exchange is proposing
                                                    issuer of the security comply on an                     to require issuers to provide the                         Within 45 days of the date of
                                                    ongoing basis with any Continued                        Exchange with prompt notification after                 publication of this notice in the Federal
                                                    Listing Representations, which include                  an Executive Officer of the [sic] becomes               Register or within such longer period
                                                    any of the representations in the rule                  aware of any noncompliance and to                       up to 90 days (i) as the Commission may
                                                    filing regarding the index composition,                 clarify that deficiencies will be subject               designate if it finds such longer period
                                                    the description of the portfolio or                     to potential trade halts and delisting                  to be appropriate and publishes its
                                                    reference assets, limitations on portfolio              proceedings pursuant to Rule 14.12. The                 reasons for so finding or (ii) as to which
                                                    holdings or reference assets,                           Exchange believes that these                            the self-regulatory organization
                                                    dissemination and availability of index                 amendments will enhance the                             consents, the Commission will:
                                                    and intraday indicative values (as                                                                                (A) By order approve or disapprove
                                                    applicable), and the applicability of                      4 As defined in Rule 14.10(c)(1)(A), the term        such proposed rule change, or
                                                    Exchange rules and surveillance                         ‘‘Executive Officer’’ means those officers covered in     (B) institute proceedings to determine
                                                                                                            Rule 16a–1(f) under the Act.
                                                    procedures made in any filing to list a                    5 The Exchange notes that the following              whether the proposed rule change
                                                    series of ETPs. As proposed, where an                   deficiencies are allowed 45 calendar days to submit     should be disapproved.
                                                    ETP fails to meet the Continued Listing
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                            a plan to regain compliance: Deficiencies from the
                                                                                                            standards of Rules 14.10(f)(3) (Quorum), 14.10(h)       IV. Solicitation of Comments
                                                    Representations, the Exchange would                     (Review of Related Party Transactions), 14.10(i)
                                                    initiate delisting proceedings pursuant                 (Shareholder Approval), 14.6(c)(3) (Auditor               Interested persons are invited to
                                                    to Rule 14.12.                                          Registration), 14.7 (Direct Registration Program),      submit written data, views, and
                                                       The Exchange is also proposing to                    14.10(d) (Code of Conduct), 14.10(e)(1)(D)(v)           arguments concerning the foregoing,
                                                                                                            (Quorum of Limited Partnerships),
                                                    modify its rules such that issuers of                   14.10(e)(1)(D)(vii) (Related Party Transactions of
                                                                                                                                                                    including whether the proposed rule
                                                    securities listed under Rule 14.11 would                Limited Partnerships), or 14.10(j) (Voting Rights).     change is consistent with the Act.
                                                    be required to provide the Exchange                        6 15 U.S.C. 78f.                                     Comments may be submitted by any of
                                                    with prompt notification after an                          7 15 U.S.C. 78f(b)(5).                               the following methods:


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                                                    88286                      Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices

                                                    Electronic Comments                                       SECURITIES AND EXCHANGE                               Division of Investment Management) or
                                                                                                              COMMISSION                                            Melissa Harke, Senior Special Counsel,
                                                      • Use the Commission’s Internet                                                                               at (202) 551–6787 (Investment Adviser
                                                    comment form (http://www.sec.gov/                         [Release No. IA–4580; File No. 803–00235]
                                                                                                                                                                    Regulation Office, Division of
                                                    rules/sro.shtml); or                                                                                            Investment Management).
                                                                                                              UBS Financial Services Inc.; Notice of
                                                      • Send an email to rule-comments@                       Application                                           SUPPLEMENTARY INFORMATION: The
                                                    sec.gov. Please include File Number SR-                                                                         following is a summary of the
                                                    BatsBZX–2016–80 on the subject line.                      December 1, 2016.                                     application. The complete application
                                                                                                              AGENCY:  Securities and Exchange                      may be obtained via the Commission’s
                                                    Paper Comments                                            Commission (‘‘Commission’’).                          Web site at http://www.sec.gov/rules/
                                                                                                              ACTION: Notice of application for an                  iareleases.shtml or by calling (202) 551–
                                                      • Send paper comments in triplicate
                                                                                                              exemptive order under section 206A of                 8090.
                                                    to Brent J. Fields, Secretary, Securities                                                                          Applicant seeks relief from the
                                                    and Exchange Commission, 100 F Street                     the Investment Advisers Act of 1940
                                                                                                              (‘‘Advisers Act’’) providing an                       written disclosure and consent
                                                    NE., Washington, DC 20549–1090.                                                                                 requirements of section 206(3) of the
                                                                                                              exemption from the written disclosure
                                                    All submissions should refer to File                      and consent requirements of section                   Advisers Act that would be similar to
                                                    Number SR-BatsBZX–2016–80. This file                      206(3).                                               relief currently provided by Advisers
                                                    number should be included on the                                                                                Act rule 206(3)–3T (the ‘‘Rule’’), which
                                                    subject line if email is used. To help the                APPLICANT:  UBS Financial Services Inc.               will expire by its terms on December 31,
                                                    Commission process and review your                        (‘‘Applicant’’).                                      2016. The relief sought by Applicant, if
                                                                                                              RELEVANT ADVISERS ACT SECTIONS:
                                                                                                                                                                    granted, would be subject to conditions
                                                    comments more efficiently, please use
                                                                                                              Exemption requested under section                     similar to those under the Rule, as well
                                                    only one method. The Commission will
                                                                                                                                                                    as certain revised or additional
                                                    post all comments on the Commission’s                     206A from the written disclosure and
                                                                                                                                                                    conditions.
                                                    Internet Web site (http://www.sec.gov/                    consent requirements of section 206(3).
                                                    rules/sro.shtml). Copies of the                           SUMMARY OF APPLICATION: Applicant                     Applicant’s Representations
                                                    submission, all subsequent                                requests that the Commission issue an                    1. The Applicant is registered as an
                                                    amendments, all written statements                        order under section 206A exempting it                 investment adviser with the
                                                    with respect to the proposed rule                         and Future Advisers (as defined below)                Commission and is a registered broker-
                                                    change that are filed with the                            from the written disclosure and consent               dealer. The Applicant is a subsidiary of
                                                    Commission, and all written                               requirements of section 206(3) with                   UBS AG, a diversified financial services
                                                    communications relating to the                            respect to principal transactions with                company with operations around the
                                                    proposed rule change between the                          nondiscretionary advisory client                      world. The Applicant offers a number of
                                                    Commission and any person, other than                     accounts.                                             advisory programs, including the UBS
                                                    those that may be withheld from the                       FILING DATES: The application was filed               Strategic Advisor Program (the
                                                    public in accordance with the                             on November 22, 2016.                                 ‘‘Program’’), a nondiscretionary advisory
                                                    provisions of 5 U.S.C. 552, will be                       HEARING OR NOTIFICATION OF HEARING: An                program.
                                                                                                              order granting the requested relief will                 2. In 2007, many of the Applicant’s
                                                    available for Web site viewing and                                                                              fee-based brokerage accounts were
                                                    printing in the Commission’s Public                       be issued unless the Commission orders
                                                                                                              a hearing. Interested persons may                     converted to nondiscretionary advisory
                                                    Reference Room, 100 F Street NE.,                                                                               accounts in the Program, following the
                                                    Washington, DC 20549, on official                         request a hearing by writing to the
                                                                                                              Commission’s Secretary and serving                    invalidation of former rule 202(a)(11)–1
                                                    business days between the hours of                                                                              under the Advisers Act. When these
                                                    10:00 a.m. and 3:00 p.m. Copies of the                    Applicant with a copy of the request,
                                                                                                              personally or by mail. Hearing requests               accounts had been fee-based brokerage
                                                    filing also will be available for                                                                               accounts, the Applicant, in its capacity
                                                    inspection and copying at the principal                   should be received by the Commission
                                                                                                                                                                    as a broker-dealer, engaged in principal
                                                                                                              by 5:30 p.m. on December 27, 2016, and
                                                    office of the Exchange. All comments                                                                            transactions with its customers in
                                                                                                              should be accompanied by proof of
                                                    received will be posted without change;                                                                         accordance with applicable law. The
                                                                                                              service on Applicant, in the form of an
                                                    the Commission does not edit personal                                                                           Applicant currently relies on the Rule to
                                                                                                              affidavit or, for lawyers, a certificate of
                                                    identifying information from                                                                                    engage in principal transactions with its
                                                                                                              service. Pursuant to rule 0–5 under the
                                                    submissions. You should submit only                                                                             client accounts in the Program.
                                                                                                              Advisers Act, hearing requests should                    3. The Applicant currently has
                                                    information that you wish to make                         state the nature of the writer’s interest,
                                                    available publicly. All submissions                                                                             approximately 115,982 client accounts
                                                                                                              any facts bearing upon the desirability               enrolled in the Program. Those accounts
                                                    should refer to File Number SR-                           of a hearing on the matter, the reason for
                                                    BatsBZX–2016–80 and should be                                                                                   have approximately $65 billion in assets
                                                                                                              the request, and the issues contested.                under management as of September 20,
                                                    submitted on or before December 28,                       Persons who wish to be notified of a                  2016. In the period January 1, 2015
                                                    2016.                                                     hearing may request notification by                   through December 31, 2015, 11,619
                                                      For the Commission, by the Division of                  writing to the Commission’s Secretary.                trades were effected in reliance on the
                                                    Trading and Markets, pursuant to delegated                ADDRESSES: Secretary, U.S. Securities                 Rule in the Program. Approximately
                                                    authority.8                                               and Exchange Commission, 100 F Street                 66% percent of the trades done in
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    Brent J. Fields,                                          NE., Washington, DC 20549–1090.                       reliance on the Rule in this period were
                                                    Secretary.                                                Applicant, Laura E. Flores and Steven                 purchases by client accounts; the
                                                                                                              W. Stone, Morgan, Lewis & Bockius                     average purchase was approximately
                                                    [FR Doc. 2016–29294 Filed 12–6–16; 8:45 am]
                                                                                                              LLP, 1111 Pennsylvania Ave. NW.,                      $109,838. Approximately 34% percent
                                                    BILLING CODE 8011–01–P
                                                                                                              Washington, DC 20004.                                 of the trades done in reliance on the
                                                                                                              FOR FURTHER INFORMATION CONTACT:                      Rule in this period were sales from
                                                                                                              Robert Shapiro, Senior Counsel, at (202)              client accounts; the average sale was
                                                      8 17   CFR 200.30–3(a)(12).                             551–7758 (Chief Counsel’s Office,                     approximately $105,022.


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Document Created: 2016-12-07 05:31:29
Document Modified: 2016-12-07 05:31:29
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 88284 

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