82_FR_10549 82 FR 10521 - Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Withdrawal of a Proposed Rule Change To Adopt the CHX Liquidity Taking Access Delay

82 FR 10521 - Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Withdrawal of a Proposed Rule Change To Adopt the CHX Liquidity Taking Access Delay

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 28 (February 13, 2017)

Page Range10521-10522
FR Document2017-02839

Federal Register, Volume 82 Issue 28 (Monday, February 13, 2017) 
[Federal Register Volume 82, Number 28 (Monday, February 13, 2017)]
[Notices]
[Pages 10521-10522]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02839]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79984; SR-CHX-2016-16]


Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Withdrawal of a Proposed Rule Change To Adopt the CHX 
Liquidity Taking Access Delay

February 7, 2017.
    On September 6, 2016, the Chicago Stock Exchange, Inc. (``CHX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to adopt the CHX Liquidity Taking 
Access Delay (``LTAD''). The proposed rule change was published for 
comment in the Federal Register on September 22, 2016.\3\ On November 
1, 2016, pursuant to Section 19(b)(2) of the Exchange Act,\4\ the 
Commission designated a longer period within which to approve the 
proposed rule change, disapprove the proposed rule change, or institute 
proceedings to determine whether to disapprove the proposed rule 
change.\5\ On December 20, 2016,

[[Page 10522]]

the Commission instituted proceedings under Section 19(b)(2)(B) of the 
Act,\6\ to determine whether to approve or disapprove the proposed rule 
change.\7\ The Commission received 25 comments on the proposed rule 
change, including responses to certain comment letters by the 
Exchange.\8\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 78860 (September 16, 
2016), 81 FR 65442 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 79216, 81 FR 78228 
(November 7, 2016). The Commission designated December 21, 2016, as 
the date by which the Commission shall either approve or disapprove, 
or institute proceedings to determine whether to disapprove, the 
proposed rule change.
    \6\ 15 U.S.C. 78s(b)(2)(B).
    \7\ See Securities Exchange Act Release No. 79608, 81 FR 95238 
(December 27, 2016).
    \8\ See letters from: (1) Douglas A. Cifu, Chief Executive 
Officer, Virtu Financial, dated September 21, 2016; (2) R.T. 
Leuchtkafer, dated September 29, 2016; (3) Adam Nunes, Head of 
Business Development, Hudson River Trading LLC, dated October 6, 
2016; (4) Beste Bidd, Trader, dated October 9, 2016; (5) Joanna 
Mallers, Secretary, FIA Principal Traders Group, dated October 13, 
2016; (6) John L. Thornton, Co-Chair, Hal S. Scott, Director, and R. 
Glenn Hubbard, Co-Chair, Committee on Capital Markets Regulation, 
dated October 13, 2016; (7) Adam C. Cooper, Senior Managing Director 
and Chief Legal Officer, Citadel Securities, dated October 13, 2016; 
(8) Tyler Gellasch, Executive Director, Healthy Markets Association, 
dated October 13, 2016; (9) Eric Budish, Professor of Economics, 
University of Chicago Booth School of Business, dated October 13, 
2016; (10) Elizabeth K. King, General Counsel and Corporate 
Secretary, New York Stock Exchange, dated October 14, 2016; (11) 
James J. Angel, Associate Professor, McDonough School of Business, 
Georgetown University, dated October 16, 2016; (12) Eric Swanson, 
EVP, General Counsel and Secretary, Bats Global Markets, Inc., dated 
October 25, 2016; (13) Eric Pritchett, Chief Executive Officer, 
Potamus Trading LLC, dated October 26, 2016; (14) James Ongena, 
Executive Vice President and General Counsel, CHX, dated October 28, 
2016; (15) Steve Crutchfield, Head of Market Structure, CTC Trading 
Group, L.L.C., dated November 1, 2016; (16) Boris Ilyevsky, 
Brokerage Director, Interactive Brokers LLC, dated November 7, 2016; 
(17) Alex Jacobson, dated November 9, 2016; (18) Brian Donnelly, 
Founder and Chief Executive Officer, Volant Trading, dated November 
28, 2016; (19) R.T. Leuchtkafer, dated December 14, 2016; and (20) 
Theodore R. Lazo, Managing Director and Associate General Counsel, 
Securities Industry and Financial Markets Association, dated 
December 16, 2016; (21) John P. Comerford, Managing Director, 
Instinet, LLC, dated December 21, 2016; (22) Joanna Mallers, 
Secretary, FIA Principal Traders Group, dated January 17, 2017; (23) 
Adam C. Cooper, Senior Managing Director and Chief Legal Officer, 
Citadel Securities, dated January 17, 2017; (24) John A McCarthy, 
General Counsel, KCG Holdings, Inc., dated January 23, 2017; and 
(25) James Ongena, Executive Vice President and General Counsel, 
CHX, dated February 3, 2017. All of the comment letters are 
available at: https://www.sec.gov/comments/sr-chx-2016-16/chx201616.shtml.
---------------------------------------------------------------------------

    On February 3, 2017, the Exchange withdrew the proposed rule change 
(SR-CHX-2016-16).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-02839 Filed 2-10-17; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 28 / Monday, February 13, 2017 / Notices 10521 Taker Surcharge increase is III. Date of Effectiveness of the Reference Room, 100 F Street NE., substantially similar to the surcharge Proposed Rule Change and Timing for Washington, DC 20549, on official increase on CBOE.22 The Exchange Commission Action business days between the hours of believes for these reasons that the Taker The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the Surcharge for complex orders is effective pursuant to Section filing also will be available for equitable, reasonable and not unfairly 19(b)(3)(A)(ii) of the Act,23 and Rule inspection and copying at the principal discriminatory, and thus consistent with 19b–4(f)(2) 24 thereunder. At any time office of the Exchange. All comments the Act. within 60 days of the filing of the received will be posted without change; proposed rule change, the Commission the Commission does not edit personal B. Self-Regulatory Organization’s summarily may temporarily suspend identifying information from Statement on Burden on Competition such rule change if it appears to the submissions. You should submit only The Exchange does not believe that Commission that such action is information that you wish to make the proposed rule change will result in necessary or appropriate in the public available publicly. All submissions any burden on competition that is not interest, for the protection of investors, should refer to File Number SR–MIAX– necessary or appropriate in furtherance or otherwise in furtherance of the 2017–02, and should be submitted on or of the purposes of the Act. The purposes of the Act. If the Commission before March 6, 2017. Exchange believes that the proposed takes such action, the Commission shall For the Commission, by the Division of increase in the Taker Surcharge for institute proceedings to determine Trading and Markets, pursuant to delegated complex transactions is intended to whether the proposed rule should be authority.25 promote narrower spreads and greater approved or disapproved. Eduardo A. Aleman, liquidity at the best prices. The fee- IV. Solicitation of Comments Assistant Secretary. based incentives for market participants [FR Doc. 2017–02838 Filed 2–10–17; 8:45 am] to provide liquidity by submitting Interested persons are invited to BILLING CODE 8011–01–P complex orders to the Exchange, and submit written data, views, and thereby improve the MBBO to ensure arguments concerning the foregoing, participation, should enable the including whether the proposed rule SECURITIES AND EXCHANGE Exchange to attract order flow and change is consistent with the Act. COMMISSION compete with other exchanges which Comments may be submitted by any of also provide such incentives to their the following methods: [Release No. 34–79984; SR–CHX–2016–16] market participants for similar Electronic Comments transactions. Self-Regulatory Organizations; • Use the Commission’s Internet Chicago Stock Exchange, Inc.; Notice The Exchange believes that increased comment form (http://www.sec.gov/ complex order flow will bring greater of Withdrawal of a Proposed Rule rules/sro.shtml); or Change To Adopt the CHX Liquidity volume and liquidity which in turn • Send an email to rule-comments@ benefits all market participants by Taking Access Delay sec.gov. Please include File Number SR– providing more trading opportunities MIAX–2017–02 on the subject line. February 7, 2017. and tighter spreads. Therefore, any On September 6, 2016, the Chicago Paper Comments potential effects that the increased Taker Stock Exchange, Inc. (‘‘CHX’’ or Surcharge for complex transactions may • Send paper comments in triplicate ‘‘Exchange’’) filed with the Securities have on intra-market competition are to Secretary, Securities and Exchange and Exchange Commission justifiable due to the reasons stated Commission, 100 F Street NE., (‘‘Commission’’), pursuant to Section above. Washington, DC 20549–1090. 19(b)(1) of the Securities Exchange Act The Exchange notes that it operates in All submissions should refer to File of 1934 (‘‘Exchange Act’’) 1 and Rule a highly competitive market in which Number SR–MIAX–2017–02. This file 19b–4 thereunder,2 a proposed rule market participants can readily favor number should be included on the change to adopt the CHX Liquidity competing venues if they deem fee subject line if email is used. To help the Taking Access Delay (‘‘LTAD’’). The Commission process and review your proposed rule change was published for levels at a particular venue to be comments more efficiently, please use comment in the Federal Register on excessive. In such an environment, the only one method. The Commission will September 22, 2016.3 On November 1, Exchange must continually adjust its post all comments on the Commission’s 2016, pursuant to Section 19(b)(2) of the fees to remain competitive with other Internet Web site (http://www.sec.gov/ Exchange Act,4 the Commission exchanges and to attract order flow. The rules/sro.shtml). Copies of the designated a longer period within which Exchange believes that the proposed submission, all subsequent rule change reflects this competitive to approve the proposed rule change, amendments, all written statements environment because they modify the disapprove the proposed rule change, or with respect to the proposed rule Exchange’s fees in a manner that institute proceedings to determine change that are filed with the encourages market participants to whether to disapprove the proposed Commission, and all written provide liquidity and to send order flow rule change.5 On December 20, 2016, communications relating to the to the Exchange. proposed rule change between the 25 17 CFR 200.30–3(a)(12). C. Self-Regulatory Organization’s Commission and any person, other than 1 15 U.S.C. 78s(b)(1). jstallworth on DSK7TPTVN1PROD with NOTICES Statement on Comments on the those that may be withheld from the 2 17 CFR 240.19b–4. Proposed Rule Change Received From public in accordance with the 3 See Securities Exchange Act Release No. 78860 Members, Participants, or Others provisions of 5 U.S.C. 552, will be (September 16, 2016), 81 FR 65442 (‘‘Notice’’). 4 15 U.S.C. 78s(b)(2). available for Web site viewing and Written comments were neither printing in the Commission’s Public 5 See Securities Exchange Act Release No. 79216, solicited nor received. 81 FR 78228 (November 7, 2016). The Commission designated December 21, 2016, as the date by which 23 15 U.S.C. 78s(b)(3)(A)(ii). the Commission shall either approve or disapprove, 22 See supra notes 10 and 11. 24 17 CFR 240.19b–4(f)(2). Continued VerDate Sep<11>2014 16:51 Feb 10, 2017 Jkt 241001 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 E:\FR\FM\13FEN1.SGM 13FEN1

10522 Federal Register / Vol. 82, No. 28 / Monday, February 13, 2017 / Notices the Commission instituted proceedings SECURITIES AND EXCHANGE HEARING OR NOTIFICATION OF HEARING: An under Section 19(b)(2)(B) of the Act,6 to COMMISSION order granting the requested relief will determine whether to approve or be issued unless the Commission orders disapprove the proposed rule change.7 [Investment Company Act Release No. a hearing. Interested persons may The Commission received 25 comments 32471; 812–14701] request a hearing by writing to the on the proposed rule change, including Commission’s Secretary and serving responses to certain comment letters by StrongVest ETF Trust, et al.; Notice of applicants with a copy of the request, the Exchange.8 Application personally or by mail. Hearing requests should be received by the Commission On February 3, 2017, the Exchange February 7, 2017. by 5:30 p.m. on March 6, 2017, and withdrew the proposed rule change AGENCY: Securities and Exchange should be accompanied by proof of (SR–CHX–2016–16). Commission (‘‘Commission’’). service on applicants, in the form of an For the Commission, by the Division of ACTION: Notice of an application for an affidavit, or for lawyers, a certificate of Trading and Markets, pursuant to delegated order under section 6(c) of the service. Pursuant to rule 0–5 under the authority.9 Investment Company Act of 1940 (the Act, hearing requests should state the Eduardo A. Aleman, ‘‘Act’’) for an exemption from sections nature of the writer’s interest, any facts Assistant Secretary. 2(a)(32), 5(a)(1), 22(d), and 22(e) of the bearing upon the desirability of a Act and rule 22c–1 under the Act, under hearing on the matter, the reason for the [FR Doc. 2017–02839 Filed 2–10–17; 8:45 am] sections 6(c) and 17(b) of the Act for an request, and the issues contested. BILLING CODE 8011–01–P exemption from sections 17(a)(1) and Persons who wish to be notified of a 17(a)(2) of the Act, and under section hearing may request notification by or institute proceedings to determine whether to 12(d)(1)(J) for an exemption from writing to the Commission’s Secretary. disapprove, the proposed rule change. 6 15 U.S.C. 78s(b)(2)(B). sections 12(d)(1)(A) and 12(d)(1)(B) of ADDRESSES: Secretary, Securities and 7 See Securities Exchange Act Release No. 79608, the Act. The requested order would Exchange Commission, 100 F Street NE., 81 FR 95238 (December 27, 2016). permit (a) actively-managed series of Washington, DC 20549–1090; 8 See letters from: (1) Douglas A. Cifu, Chief certain open-end management Applicants: StrongVest ETF Trust and Executive Officer, Virtu Financial, dated September investment companies (‘‘Funds’’) to StrongVest Global Advisors, LLC, 106 21, 2016; (2) R.T. Leuchtkafer, dated September 29, issue shares redeemable in large 2016; (3) Adam Nunes, Head of Business Corporate Park Drive, Mooresville, NC Development, Hudson River Trading LLC, dated aggregations only (‘‘Creation Units’’); (b) 28117; and Quasar Distributions, LLC, October 6, 2016; (4) Beste Bidd, Trader, dated secondary market transactions in Fund 615 East Michigan Street, Milwaukee, October 9, 2016; (5) Joanna Mallers, Secretary, FIA shares to occur at negotiated market WI 53202. Principal Traders Group, dated October 13, 2016; prices rather than at net asset value (6) John L. Thornton, Co-Chair, Hal S. Scott, FOR FURTHER INFORMATION CONTACT: Director, and R. Glenn Hubbard, Co-Chair, (‘‘NAV’’); (c) certain Funds to pay Deepak T. Pai, Senior Counsel, at (202) Committee on Capital Markets Regulation, dated redemption proceeds, under certain 551–6876, or Daniele Marchesani, October 13, 2016; (7) Adam C. Cooper, Senior circumstances, more than seven days Assistant Chief Counsel, at (202) 551– Managing Director and Chief Legal Officer, Citadel after the tender of shares for Securities, dated October 13, 2016; (8) Tyler 6821 (Division of Investment Gellasch, Executive Director, Healthy Markets redemption; (d) certain affiliated Management, Chief Counsel’s Office). Association, dated October 13, 2016; (9) Eric persons of a Fund to deposit securities SUPPLEMENTARY INFORMATION: The Budish, Professor of Economics, University of into, and receive securities from, the Chicago Booth School of Business, dated October Fund in connection with the purchase following is a summary of the 13, 2016; (10) Elizabeth K. King, General Counsel and redemption of Creation Units; (e) application. The complete application and Corporate Secretary, New York Stock Exchange, certain registered management may be obtained via the Commission’s dated October 14, 2016; (11) James J. Angel, Web site by searching for the file Associate Professor, McDonough School of investment companies and unit Business, Georgetown University, dated October 16, investment trusts outside of the same number, or for an applicant using the 2016; (12) Eric Swanson, EVP, General Counsel and group of investment companies as the Company name box, at http:// Secretary, Bats Global Markets, Inc., dated October Funds (‘‘Funds of Funds’’) to acquire www.sec.gov/search/search.htm or by 25, 2016; (13) Eric Pritchett, Chief Executive calling (202) 551–8090. Officer, Potamus Trading LLC, dated October 26, shares of the Funds; and (f) certain 2016; (14) James Ongena, Executive Vice President Funds (‘‘Feeder Funds’’) to create and Summary of the Application and General Counsel, CHX, dated October 28, 2016; redeem Creation Units in-kind in a (15) Steve Crutchfield, Head of Market Structure, 1. Applicants request an order that master-feeder structure. CTC Trading Group, L.L.C., dated November 1, would allow Funds to operate as 2016; (16) Boris Ilyevsky, Brokerage Director, actively-managed exchange traded Interactive Brokers LLC, dated November 7, 2016; APPLICANTS: StrongVest ETF Trust (the funds (‘‘ETFs’’).1 Fund shares will be (17) Alex Jacobson, dated November 9, 2016; (18) ‘‘Trust’’), a Delaware statutory trust Brian Donnelly, Founder and Chief Executive purchased and redeemed at their NAV registered under the Act as an open-end Officer, Volant Trading, dated November 28, 2016; in Creation Units only. All orders to (19) R.T. Leuchtkafer, dated December 14, 2016; management investment company with purchase Creation Units and all and (20) Theodore R. Lazo, Managing Director and multiple series, StrongVest Global redemption requests will be placed by Associate General Counsel, Securities Industry and Advisors, LLC (the ‘‘Initial Adviser’’), a Financial Markets Association, dated December 16, or through an ‘‘Authorized Participant’’, Delaware limited liability company 2016; (21) John P. Comerford, Managing Director, Instinet, LLC, dated December 21, 2016; (22) Joanna registered as an investment adviser 1 Applicants request that the order apply to future Mallers, Secretary, FIA Principal Traders Group, under the Investment Advisers Act of series of the Trust or of other open-end management dated January 17, 2017; (23) Adam C. Cooper, 1940, and Quasar Distributors, LLC (the investment companies that currently exist or that jstallworth on DSK7TPTVN1PROD with NOTICES Senior Managing Director and Chief Legal Officer, ‘‘Distributor’’), a Delaware limited may be created in the future (each, included in the Citadel Securities, dated January 17, 2017; (24) John term ‘‘Fund’’), each of which will operate as an A McCarthy, General Counsel, KCG Holdings, Inc., liability company and broker-dealer actively-managed ETF. Any Fund will (a) be dated January 23, 2017; and (25) James Ongena, registered under the Securities advised by the Initial Adviser or an entity Executive Vice President and General Counsel, Exchange Act of 1934 (‘‘Exchange Act’’). controlling, controlled by, or under common CHX, dated February 3, 2017. All of the comment control with the Initial Adviser (each such entity or letters are available at: https://www.sec.gov/ DATES: Filing Dates: The application was any successor thereto is included in the term comments/sr-chx-2016-16/chx201616.shtml. filed on September 20, 2016 and ‘‘Adviser’’) and (b) comply with the terms and 9 17 CFR 200.30–3(a)(12). amended on January 12, 2017. conditions of the application. VerDate Sep<11>2014 13:41 Feb 10, 2017 Jkt 241001 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 E:\FR\FM\13FEN1.SGM 13FEN1


Document Created: 2017-02-11 00:59:26
Document Modified: 2017-02-11 00:59:26
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 Citation82 FR 10521 
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR