82 FR 12481 - Self-Regulatory Organizations; LCH SA; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, Security-Based Swap Submission, or Advance Notice To Adopt Revised Fee Schedule and Establish Annual Fixed Fee for General Members
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 41 (March 3, 2017)
Federal Register Volume 82, Issue 41 (March 3, 2017)
| Page Range | 12481-12484 | |
| FR Document | 2017-04089 |
[Federal Register Volume 82, Number 41 (Friday, March 3, 2017)] [Notices] [Pages 12481-12484] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-04089] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80114; File No. SR-LCH SA-2017-001] Self-Regulatory Organizations; LCH SA; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, Security-Based Swap Submission, or Advance Notice To Adopt Revised Fee Schedule and Establish Annual Fixed Fee for General Members February 27, 2017. 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 February 17, 2017, Banque Centrale de Compensation, which conducts business under the name LCH SA (``LCH SA''), filed with the Securities and Exchange Commission (``Commission'') the proposed rule change described in Items I, II, and III below, which Items have been primarily prepared by LCH SA. LCH SA filed the proposal pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(2) \4\ thereunder, so that the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- [[Page 12482]] I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change, Security-Based Swap Submission, or Advance Notice The proposed rule change will: (1) Modify the annual fixed fee that covers all self-clearing activity for a Clearing Member \5\ and its affiliates under the Unlimited Tariff, (2) establish an annual fixed fee for all General Members that participate in the CDS Clearing Services under the Introductory Tariff, and (3) remove the volume-based discounts currently in effect for the client clearing activities of the CDS Clearing Service. --------------------------------------------------------------------------- \5\ Capitalized terms not defined herein are defined in LCH SA's Rulebook, available at http://www.lch.com/rules-regulations/rulebooks/sa. --------------------------------------------------------------------------- II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change, Security-Based Swap Submission, or Advance Notice In its filing with the Commission, LCH SA 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. LCH SA has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change, Security-Based Swap Submission, or Advance Notice 1. Purpose The purpose of the proposed rule change is to: (1) Modify the annual fixed fee that covers all self-clearing activity for a Clearing Member and its affiliates under the Unlimited Tariff, (2) establish an annual fixed fee for all General Members that participate in the CDS Clearing Services under the Introductory Tariff, and (3) remove the volume-based discounts currently in effect for the client clearing activities of the CDS Clearing Service. Unlimited Tariff The proposed rule change will reduce the annual fixed fee for General Members that covers all self-clearing activity for Clearing Members and their affiliate(s) that have opted for the Unlimited Tariff. Currently, General Members that participate in the CDS Clearing Service can elect to pay an annual fixed fee of [euro]2,250,000 (the ``Unlimited Tariff''), which covers all self-clearing fees for the Clearing Member and its affiliates. Clearing Members that select to pay this fixed fee are not charged any variable fee that would otherwise be assessed with each cleared CDS on their house activity. General Clearing Members that do not select the Unlimited Tariff fall under the Introductory Tariff and are currently charged a variable volume based self-clearing fee. The fee is calculated and charged per million gross notional cleared (EUR/USD, as applicable) and varies depending on the type of CDS cleared, i.e., European indices, European single names, US indices, US single names. The amount of variable fees paid for trades cleared by the General Clearing Member and its affiliates under the Introductory Tariff annually is currently capped at [euro]2,250,000. The rule change will reduce the annual fixed fee to be paid by General Members that select the Unlimited Tariff from [euro]2,250,000 to [euro]2,000,000. The cap on annual fees paid by General Members that select the Introductory Tariff will similarly be reduced from [euro]2,250,000 to [euro]2,000,000, and will include the fixed fee along with all variable fees for the Clearing Member and its affiliates. LCH SA believes that the reduced fee more accurately reflects the proportionate costs and expenses that LCH SA will incur in connection with self-cleared transactions following the introduction of mandatory clearing of OTC derivatives and the anticipated increase in CDS client clearing activities. Annual Clearing Fee (Introductory Tariff) In addition, the proposed rule change will establish an annual fixed fee for all General Members that participate in the CDS Clearing Service under the Introductory Tariff. The annual fixed fee is independent from and in addition to the self-clearing and client clearing variable fees currently charged, but will count toward the [euro]2,000,000 cap described above. Currently, General Members that participate in the CDS Clearing Service pay either the Unlimited Tariff, which covers all self-clearing fees for the Clearing Member and its affiliates, or the Introductory Tariff, which is calculated per million gross notional cleared (EUR/USD, as applicable) and varies depending on the type of CDS cleared, i.e., European indices, European single names, US indices, US single names. Therefore, Clearing Members under the Introductory Tariff with no clearing activity have full access to the CDS Clearing Service resources, are consulted on potential rules, product and service changes, and benefit from unlimited support for training and system training at no cost. LCH SA believes that all General Members under the Introductory Tariff that have access to, and benefit from, the CDS Clearing Service resources should pay a fixed fee for such access, even if the General Member has no clearing activity. The rule change will require every General Member under the Introductory Tariff to pay an annual fixed fee of [euro]200,000, which will increase to [euro]400,000 for members with more than [euro]15 billion gross notional in clearing activity per year, across self-clearing or clearing for clients. One-twelfth of the fee will be charged each month, and a pro-rata amount will be applied for Clearing Members starting or resigning during the calendar year. Volume-Based Discount Lastly, the proposed rule change will remove the volume-based discounts that had been in effect for CDS client clearing activities since early 2014. Currently, clients that participate in the CDS Clearing Service are charged a clearing fee per EUR/USD million gross notional cleared as follows: ------------------------------------------------------------------------ ------------------------------------------------------------------------ European products Base fees ------------------------------------------------------------------------ Index (per million)........................................ [euro]4 Single Name (per million).................................. [euro]12 ------------------------------------------------------------------------ U.S. Products Base fees ------------------------------------------------------------------------ Index (per million)........................................ $5 Single Name (per million).................................. $17 ------------------------------------------------------------------------ In order to encourage client clearing of CDS back in 2014 ahead of the mandatory clearing requirement at the time, LCH SA has been offering volume-based discounts as follows: ------------------------------------------------------------------------ Discounts for clients will be Monthly gross implemented as follows: Band Benefit notional cleared ------------------------------------------------------------------------ Band A.......................... Base Fee.......... [euro]0 to [euro]2 billion. Band B.......................... 16% fee discount.. [euro]2 billion to [euro]6 billion. Band C.......................... 25% fee discount.. [euro]6 billion+. ------------------------------------------------------------------------ [[Page 12483]] With mandatory clearing of CDS now becoming effective in 2017 in Europe, LCH SA believes it is no longer necessary or appropriate to provide these discounts in light of the costs and expenses that LCH SA will incur in providing the CDS Clearing Service to clients. The rule change, therefore, will remove the volume-based discounts for CDS client clearing activities. 2. Statutory Basis Section 17A(b)(3)(D) of the Act requires that the rules of a clearing agency provide for the equitable allocation of reasonable dues, fees, and other charges.\6\ With respect to the Unlimited Tariff, LCH SA has determined that the reduction in the Unlimited Tariff fixed fee for General Members with respect to self-clearing activity on behalf of the Clearing Member and its affiliates is reasonable and appropriate given the costs and expenses to LCH SA. With CDSClear now reaching a maturity stage in its development and the introduction of mandatory clearing of OTC derivatives in 2017, which will result in an increase in CDS client clearing activities, it is appropriate that the costs and expenses that LCH SA will incur in providing the CDS Clearing Service are shared more broadly among General Members and their clients that participate in the service. For the same reasons, LCH SA has determined that the cap on self-clearing fees, inclusive of the annual fixed fee, applicable to General Members electing the Introductory Tariff, should be lowered to the same amount as the revised Unlimited Tariff. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78q-1(b)(3)(D). --------------------------------------------------------------------------- With respect to the annual fixed fee for General Members under the Introductory Tariff, LCH SA has determined that implementing an annual fixed fee for all General Members that participate in the CDS Clearing Service under the Introductory Tariff (which fee is separate from and in addition to the self-clearing and client clearing variable fees currently assessed), is reasonable and appropriate given the costs and expenses to LCH SA in providing the services to General Members. The fee assures that all General Members that benefit from the CDS Clearing Service pay an appropriate fee for such services, such as being consulted on potential rules, product and service changes, as well as benefiting from unlimited support for product and system training and testing, without regard to whether such General Members engage in CDS clearing activities. The proposed rule changes, therefore, are consistent with the requirements of Section 17A of the Act \7\ and regulations thereunder applicable to it, because they provide for the equitable allocation of reasonable fees, dues, and other charges among clearing members and market participants by ensuring that General Members and their clients pay reasonable fees and dues for the services that LCH SA provides. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78q-1. --------------------------------------------------------------------------- With respect to the removal of volume-based discounts, LCH SA has determined that removing the volume-based discounts for CDS client clearing activities is reasonable and appropriate, given the costs and expenses to LCH SA in providing such services. The elimination of volume-based discounts will assure that clients pay an appropriate proportionate share of the costs and expenses that LCH SA will incur in providing the CDS Clearing Service. B. Clearing Agency's Statement on Burden on Competition Section 17A(b)(3)(I) of the Act requires that the rules of a clearing agency not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.\8\ LCH SA does not believe that the proposed rule change would impose any burden on competition. As noted above, LCH SA believes that the reduction in the annual Tariffs assessed on General Members with respect to self- clearing activity are reasonable and appropriate, as the Tariffs will apply equally to all General Members that self-clear CDS. Additionally, LCH SA believes that an annual fixed fee for all General Members that participate in the CDS Clearing Service under the Introductory Tariff, which fee is separate from and in addition to the self-clearing and client clearing variable fees currently assessed, is appropriate in light of the expenses incurred by LCH SA in providing its services. Further, LCH SA believes that removing the volume-based discounts for CDS client clearing activities is reasonable and appropriate, as the clearing fees will apply equally to all clients that participate in the CDS Clearing Service. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78q-1(b)(3)(I). --------------------------------------------------------------------------- LCH SA does not believe that the proposed rule change would have a burden on competition because it does not adversely affect the ability of such Clearing Members or other market participants generally to engage in cleared transactions or to access clearing services. C. Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments relating to the proposed rule change have not been solicited or received. LCH SA will notify the Commission of any written comments received by LCH SA. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has become effective upon filing pursuant to Section 19(b)(3)(A) \9\ of the Act and Rule 19b-4(f)(2) \10\ thereunder because it establishes a fee or other charge imposed by LCH SA on its Clearing Members. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such proposed rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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:Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml) or Send an email to rule-comments@sec.gov. Please include File Number SR-LCH SA-2017-001 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-LCH SA-2017-001. 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 [[Page 12484]] 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 such filings will also be available for inspection and copying at the principal office of LCH SA and on LCH SA's Web site at http://www.lch.com/asset-classes/cdsclear. 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-LCH SA-2017-001 and should be submitted on or before March 24, 2017. --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-04089 Filed 3-2-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 41 / Friday, March 3, 2017 / Notices 12481
unanticipated redemptions or trade Funds.6 Applicants also assert that the of any person concerned; (b) the
fails.3 The Funds will not borrow under proposed transactions do not raise the proposed transaction is consistent with
the facility for leverage purposes, and concerns underlying sections 17(a)(1), the policies of each registered
the loans’ duration will be no more than 17(a)(3), 17(d) and 21(b) of the Act as investment company involved; and (c)
7 days.4 the Funds would not engage in lending the proposed transaction is consistent
2. Applicants anticipate that the transactions that unfairly benefit with the general purposes of the Act.
proposed facility would provide a insiders or are detrimental to the Funds. Rule 17d–1(b) under the Act provides
borrowing Fund with significant savings Applicants state that the facility will that in passing upon an application filed
offer both reduced borrowing costs and under the rule, the Commission will
at times when the cash position of the
enhanced returns on loaned funds to all consider whether the participation of
Fund is insufficient to meet temporary
participating Funds, and each Fund the registered investment company in a
cash requirements. In addition, Funds
would have an equal opportunity to joint enterprise, joint arrangement or
making short-term cash loans directly to
borrow and lend on equal terms based profit sharing plan on the basis
other Funds would earn interest at a rate on an interest rate formula that is
higher than they otherwise could obtain proposed is consistent with the
objective and verifiable. With respect to provisions, policies and purposes of the
from investing their cash in repurchase the relief from section 17(a)(2) of the Act and the extent to which such
agreements or certain other short term Act, applicants note that any collateral participation is on a basis different from
money market instruments. Thus, pledged to secure an interfund loan or less advantageous than that of the
applicants assert that the facility would would be subject to the same conditions other participants.
benefit both borrowing and lending imposed by any other lender to a Fund
Funds. For the Commission, by the Division of
that imposes conditions on the quality Investment Management, under delegated
3. Applicants agree that any order of or access to collateral for a borrowing authority.
granting the requested relief will be (if the lender is another Fund) or the Eduardo A. Aleman,
subject to the terms and conditions same or better conditions (in any other
Assistant Secretary.
stated in the application. Among others, circumstance).7
5. Applicants also believe that the [FR Doc. 2017–04106 Filed 3–2–17; 8:45 am]
the Adviser, through a designated
committee, would administer the limited relief from section 18(f)(1) of the BILLING CODE 8011–01–P
facility as a disinterested fiduciary as Act that is necessary to implement the
part of its duties under the investment facility (because the lending Funds are
management agreements with the Funds not banks) is appropriate in light of the SECURITIES AND EXCHANGE
and would receive no additional fee as conditions and safeguards described in COMMISSION
compensation for its services in the application and because the Funds [Release No. 34–80114; File No. SR–LCH
connection with the administration of would remain subject to the SA–2017–001]
the facility. The facility would be requirement of section 18(f)(1) that all
subject to oversight and certain borrowings of the Fund, including Self-Regulatory Organizations; LCH
approvals by the Funds’ Board, combined interfund loans and bank SA; Notice of Filing and Immediate
including, among others, approval of the borrowings, have at least 300% asset Effectiveness of Proposed Rule
interest rate formula and of the method coverage. Change, Security-Based Swap
for allocating loans across Funds, as 6. Section 6(c) of the Act permits the Submission, or Advance Notice To
well as review of the process in place to Commission to exempt any persons or Adopt Revised Fee Schedule and
evaluate the liquidity implications for transactions from any provision of the Establish Annual Fixed Fee for General
the Funds. A Fund’s aggregate Act if such exemption is necessary or Members
outstanding interfund loans will not appropriate in the public interest and
consistent with the protection of February 27, 2017.
exceed 15% of its net assets, and the
Fund’s loans to any one Fund will not investors and the purposes fairly Pursuant to Section 19(b)(1) of the
exceed 5% of the lending Fund’s net intended by the policy and provisions of Securities Exchange Act of 1934
assets.5 the Act. Section 12(d)(1)(J) of the Act (‘‘Act’’),1 and Rule 19b–4 thereunder,2
provides that the Commission may notice is hereby given that on February
4. Applicants assert that the facility exempt any person, security, or 17, 2017, Banque Centrale de
does not raise the concerns underlying transaction, or any class or classes of Compensation, which conducts
section 12(d)(1) of the Act given that the persons, securities, or transactions, from business under the name LCH SA (‘‘LCH
Funds are part of the same group of any provision of section 12(d)(1) if the SA’’), filed with the Securities and
investment companies and there will be exemption is consistent with the public Exchange Commission (‘‘Commission’’)
no duplicative costs or fees to the interest and the protection of investors. the proposed rule change described in
Section 17(b) of the Act authorizes the Items I, II, and III below, which Items
3 Applicants request that the order also apply to
Commission to grant an order have been primarily prepared by LCH
any existing or future series of the Funds and to any
other registered management investment company permitting a transaction otherwise SA. LCH SA filed the proposal pursuant
or its series for which NBIA and each successor prohibited by section 17(a) if it finds to Section 19(b)(3)(A) of the Act,3 and
thereto or a person controlling, controlled by, or that (a) the terms of the proposed Rule 19b–4(f)(2) 4 thereunder, so that the
under common control with NBIA serves as proposal was effective upon filing with
investment adviser (each such investment company
transaction are fair and reasonable and
or series thereof included in the term ‘‘Fund,’’ and do not involve overreaching on the part the Commission. The Commission is
mstockstill on DSK3G9T082PROD with NOTICES
each such investment adviser an ‘‘Adviser’’). A publishing this notice to solicit
‘‘successor’’ is defined as any entity resulting from 6 Applicants state that the obligation to repay an comments on the proposed rule change
a reorganization of NBIA into another jurisdiction interfund loan could be deemed to constitute a from interested persons.
or a change in the type of business organization. security for the purposes of sections 17(a)(1) and
4 Any Fund, however, will be able to call a loan 12(d)(1) of the Act.
1 15 U.S.C. 78s(b)(1).
on one business day’s notice. 7 Applicants state that any pledge of securities to
5 Under certain circumstances, a borrowing Fund 2 17 CFR 240.19b–4.
secure an interfund loan could constitute a
3 15 U.S.C. 78s(b)(3)(A).
will be required to pledge collateral to secure the purchase of securities for purposes of section
loan. 17(a)(2) of the Act. 4 17 CFR 240.19b–4(f)(2).
VerDate Sep<11>2014 16:42 Mar 02, 2017 Jkt 241001 PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 E:\FR\FM\03MRN1.SGM 03MRN1](https://thefederalregister.org/doc/82_FR_12522/page/1.svg)
![12484 Federal Register / Vol. 82, No. 41 / Friday, March 3, 2017 / Notices
proposed rule change between the Funds to pay redemption proceeds, 6825 (Division of Investment
Commission and any person, other than under certain circumstances, more than Management, Chief Counsel’s Office).
those that may be withheld from the seven days after the tender of shares for SUPPLEMENTARY INFORMATION: The
public in accordance with the redemption; (d) certain affiliated following is a summary of the
provisions of 5 U.S.C. 552, will be persons of a Fund to deposit securities application. The complete application
available for Web site viewing and into, and receive securities from, the may be obtained via the Commission’s
printing in the Commission’s Public Fund in connection with the purchase Web site by searching for the file
Reference Room, 100 F Street NE., and redemption of Creation Units; and number, or for an applicant using the
Washington, DC 20549, on official (e) certain registered management Company name box, at http://
business days between the hours of investment companies and unit www.sec.gov/search/search.htm or by
10:00 a.m. and 3:00 p.m. Copies of such investment trusts outside of the same calling (202) 551–8090.
filings will also be available for group of investment companies as the
inspection and copying at the principal Funds (‘‘Funds of Funds’’) to acquire Summary of the Application
office of LCH SA and on LCH SA’s Web shares of the Funds. 1. Applicants request an order that
site at http://www.lch.com/asset- would allow Funds to operate as index-
classes/cdsclear. All comments received APPLICANTS: Tortoise Index Solutions, based exchange traded funds (‘‘ETFs’’).1
will be posted without change; the LLC (the ‘‘Initial Adviser’’), a Delaware Fund shares will be purchased and
Commission does not edit personal limited liability company that is redeemed at their NAV in Creation
identifying information from registered as an investment adviser Units only. All orders to purchase
submissions. You should submit only under the Investment Advisers Act of Creation Units and all redemption
information that you wish to make 1940; Montage Managers Trust (the requests will be placed by or through an
available publicly. ‘‘Trust’’), a Delaware statutory trust ‘‘Authorized Participant’’, which will
All submissions should refer to File registered under the Act as an open-end have signed a participant agreement
Number SR–LCH SA–2017–001 and management investment company with with the Distributor. Shares will be
should be submitted on or before March multiple series, and Foreside Fund listed and traded individually on a
24, 2017. Services, LLC (the ‘‘Distributor’’), a national securities exchange, where
Delaware limited liability company and share prices will be based on the current
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
broker-dealer registered under the bid/offer market. Any order granting the
authority.11 Securities Exchange Act of 1934 requested relief would be subject to the
Eduardo A. Aleman,
(‘‘Exchange Act’’). terms and conditions stated in the
FILING DATES: The application was filed application.
Assistant Secretary.
on October 7, 2016 and amended on 2. Each Fund will hold investment
[FR Doc. 2017–04089 Filed 3–2–17; 8:45 am]
February 16, 2017. positions selected to correspond
BILLING CODE 8011–01–P
HEARING OR NOTIFICATION OF HEARING: An generally to the performance of an
order granting the requested relief will Underlying Index. In the case of Self-
be issued unless the Commission orders Indexing Funds, an affiliated person, as
SECURITIES AND EXCHANGE
a hearing. Interested persons may defined in section 2(a)(3) of the Act
COMMISSION
request a hearing by writing to the (‘‘Affiliated Person’’), or an affiliated
[Investment Company Act Release No. Commission’s Secretary and serving person of an Affiliated Person (‘‘Second-
32512; 812–14706] applicants with a copy of the request, Tier Affiliate’’), of the Trust or a Fund,
personally or by mail. Hearing requests of the Adviser, of any sub-adviser to or
Tortoise Index Solutions, LLC, et al.; promoter of a Fund, or of the Distributor
should be received by the Commission
Notice of Application will compile, create, sponsor or
by 5:30 p.m. on March 27, 2017, and
February 27, 2017. should be accompanied by proof of maintain the Underlying Index.2
AGENCY: Securities and Exchange service on applicants, in the form of an 3. Shares will be purchased and
Commission (‘‘Commission’’). affidavit, or for lawyers, a certificate of redeemed in Creation Units and
service. Pursuant to rule 0–5 under the generally on an in-kind basis. Except
ACTION: Notice of an application for an
Act, hearing requests should state the where the purchase or redemption will
order under section 6(c) of the
Investment Company Act of 1940 (the nature of the writer’s interest, any facts
1 Applicants request that the order apply to the
‘‘Act’’) for an exemption from sections bearing upon the desirability of a
Tortoise North American Pipeline Fund series of
2(a)(32), 5(a)(1), 22(d), and 22(e) of the hearing on the matter, the reason for the the Trust and any additional series of the Trust, and
Act and rule 22c–1 under the Act, under request, and the issues contested. any other open-end management investment
sections 6(c) and 17(b) of the Act for an Persons who wish to be notified of a company or series thereof that may be created in the
hearing may request notification by future (each, included in the term ‘‘Fund’’) each of
exemption from sections 17(a)(1) and which will operate as an ETF and will track a
17(a)(2) of the Act, and under section writing to the Commission’s Secretary. specified index comprised of domestic or foreign
12(d)(1)(J) for an exemption from ADDRESSES: Secretary, Securities and equity and/or fixed income securities (each, an
Exchange Commission, 100 F Street NE., ‘‘Underlying Index’’). Any Fund will (a) be advised
sections 12(d)(1)(A) and 12(d)(1)(B) of by the Initial Adviser or an entity controlling,
the Act. The requested order would Washington, DC 20549–1090; controlled by, or under common control with the
permit (a) index-based series of certain Applicants: The Initial Adviser, 11550 Initial Adviser (such entity or any successor thereto
open-end management investment Ash Street, Suite 300, Leawood, KS is included in the term, an ‘‘Adviser’’) and (b)
66211; the Trust, 11300 Tomahawk comply with the terms and conditions of the
companies (‘‘Funds’’) to issue shares
mstockstill on DSK3G9T082PROD with NOTICES
application.
redeemable in large aggregations only Creek Parkway, Suite 200, Leawood, KS 2 Each Self-Indexing Fund will post on its Web
(‘‘Creation Units’’); (b) secondary market 66211; and the Distributor, Three Canal site the identities and quantities of the investment
transactions in Fund shares to occur at Plaza, Suite 100, Portland, ME 04101. positions that will form the basis for the Fund’s
negotiated market prices rather than at FOR FURTHER INFORMATION CONTACT: Jean calculation of its NAV at the end of the day.
Applicants believe that requiring Self-Indexing
net asset value (‘‘NAV’’); (c) certain E. Minarick, Senior Counsel, at (202) Funds to maintain full portfolio transparency will
551–6811, or Daniele Marchesani, help address, together with other protections,
11 17 CFR 200.30–3(a)(12). Assistant Chief Counsel, at (202) 551– conflicts of interest with respect to such Funds.
VerDate Sep<11>2014 16:42 Mar 02, 2017 Jkt 241001 PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 E:\FR\FM\03MRN1.SGM 03MRN1](https://thefederalregister.org/doc/82_FR_12522/page/4.svg)
Document Created: 2018-02-01 14:45:44
Document Modified: 2018-02-01 14:45:44
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 12481 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR