82 FR 23690 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Continued Listing Standards for Exchange-Traded Products
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 98 (May 23, 2017)
Federal Register Volume 82, Issue 98 (May 23, 2017)
| Page Range | 23690-23692 | |
| FR Document | 2017-10464 |
[Federal Register Volume 82, Number 98 (Tuesday, May 23, 2017)] [Notices] [Pages 23690-23692] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-10464] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80708; File No. SR-NASDAQ-2017-040] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Continued Listing Standards for Exchange-Traded Products May 17, 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 May 3, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``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 proposes to amend the previously approved continued listing requirements for exchange-traded products (``ETPs'') in the Nasdaq Rule 5700 Series, as well as Nasdaq Rule 5810 (Notification of Deficiency by the Listing Qualifications Department), to make a number of conforming and housekeeping changes.\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 79784 (Jan. 12, 2017), 82 FR 6664 (Jan. 19, 2017) (SR-NASDAQ-2016-135). --------------------------------------------------------------------------- The Exchange also proposes to delay the implementation date of the previously approved changes to the continued listing standards from August 1, 2017 to October 1, 2017. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. [[Page 23691]] 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 aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Earlier this year, the Commission approved a Nasdaq filing (the ``Prior Filing'') to amend the continued listing requirements for ETPs.\4\ The Exchange now proposes to make a number of housekeeping changes, as well as conform the language in the Nasdaq Rule 5700 Series (Other Securities) and Nasdaq Rule 5810 (Notification of Deficiency by the Listing Qualifications Department) to either the current rule language for NYSE Arca, Inc. (``Arca'') and Bats BZX Exchange, Inc. (``Bats'') or to the rule language included in approved filings for both Arca \5\ and Bats \6\ (the ``Arca and Bats Filings''). --------------------------------------------------------------------------- \4\ Id. \5\ See Securities Exchange Act Release No. 80189 (Mar. 9, 2017), 82 FR 13889 (Mar. 15, 2017) (SR-NYSEArca-2017-01). \6\ See Securities Exchange Act Release No. 80169 (Mar. 7, 2017), 82 FR 13536 (Mar. 13, 2017) (SR-BatsBZX-2016-80). --------------------------------------------------------------------------- Most of the proposed changes are to the Nasdaq Rule 5700 Series where the current rule text refers to statements or representations regarding the applicability of Nasdaq rules and surveillance procedures. The proposed changes revise this language from ``the applicability of Nasdaq rules and surveillance procedures'' to ``the applicability of Nasdaq listing rules specified in such proposals''. These changes are consistent with the language in the Arca \7\ and Bats \8\ Filings. --------------------------------------------------------------------------- \7\ Supra note 5. \8\ Supra note 6. --------------------------------------------------------------------------- The amendment to Nasdaq Rule 5810(c)(2)(A) changes the language therein to specify that a failure to meet a continued listing requirement contained in the Rule 5700 Series does not require a company to pay a compliance plan review fee of $5,000. This change is consistent with the practice of Arca and Bats in that neither imposes such a fee. The proposed change to Nasdaq Rule 5720(c)(7)(F) (Trust Issued Receipts) is to reinsert a word deleted by the Prior Filing. Specifically, the word ``initially'' will be reinserted into the following rule language: ``The most heavily weighted component security may not initially represent more than 20% of the overall value of the Trust Issued Receipt.'' Adding the word ``initially'' back into the designated rule properly reflects the intended meaning of the language and is in keeping with language as it was initially adopted and conforms to the rules of Arca and Bats. The proposed change to Nasdaq Rule 5745(d)(2)(C)(iv)(c) to delete the word ``portfolio'' from the phrase ``dissemination and availability of the portfolio, reference asset, or intraday indicative values'' is because it is not applicable in this context as to Exchange-Traded Managed Fund Shares (``NextShares''). Additionally, the Exchange proposes to delay the implementation date of the previously approved changes to the continued listing standards \9\ from August 1, 2017 to October 1, 2017. Given the scope of the proposed rule changes, the Exchange believes that this will ensure that Nasdaq has adequate time to develop and put into operation the new processes and systems necessitated by them. Also, an implementation date of October 1, 2017 will match the implementation dates set forth in the Arca and Bats Filings. This will benefit those impacted by the amended continued listing standards by providing for a single implementation date across the exchanges, which will promote clarity in the timing of these significant changes to the continued listing standards and lessen potential confusion. --------------------------------------------------------------------------- \9\ Supra note 3. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\10\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\11\ 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule changes to conform the Nasdaq Rule 5700 Series and Nasdaq Rule 5810 with either the current rule language for Arca and Bats or to the rule language included in the Arca and Bats Filings will promote just and equitable principles of trade, and, in general to protect investors and the public interest since it will promote the application of consistent listing standards across the exchanges. Also, the proposed rule change to reinsert the word ``initially'' into Nasdaq Rule 5720(c)(7)(F), as well as to delete the word ``portfolio'' in Nasdaq Rule 5745(d)(2)(C)(iv)(c), will provide clarity and accurately reflect the intent of the rule to the benefit of investors and the public interest. Changing the implementation date to October 1, 2017 also will provide clarity and lessen confusion to the benefit of investors and the public interest. For these reasons, Nasdaq believes 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. Instead, the Exchange believes that the proposed rule change to conform the Nasdaq Rule 5700 Series and Nasdaq Rule 5810 with either the current rule language for Arca and Bats or the approved rule text included in the Arca and Bats Filings may enhance competition since the exchanges will have substantially similar and consistent listing requirements for ETPs. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \12\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\13\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- [[Page 23692]] At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or 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: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NASDAQ-2017-040 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-NASDAQ-2017-040. 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 such 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-NASDAQ-2017-040 and should be submitted on or before June 13, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-10464 Filed 5-22-17; 8:45 am] BILLING CODE 8011-01-P
![23690 Federal Register / Vol. 82, No. 98 / Tuesday, May 23, 2017 / Notices
of a collaborative effort by all options IV. Solicitation of Comments For the Commission, by the Division of
exchanges to further harmonize and Trading and Markets, pursuant to delegated
improve the process related to the Interested persons are invited to authority.26
adjustment and nullification of submit written data, views, and Eduardo A. Aleman,
erroneous options transactions. The arguments concerning the foregoing, Assistant Secretary.
Exchange does not believe that the rules including whether the proposed rule [FR Doc. 2017–10465 Filed 5–22–17; 8:45 am]
applicable to such process is an area change is consistent with the Act. BILLING CODE 8011–01–P
where options exchanges should Comments may be submitted by any of
compete, but rather, that all options the following methods:
exchanges should have consistent rules SECURITIES AND EXCHANGE
to the extent possible. Particularly Electronic Comments COMMISSION
where a market participant trades on • Use the Commission’s Internet
several different exchanges and an comment form (http://www.sec.gov/ [Release No. 34–80708; File No. SR–
erroneous trade may occur on multiple NASDAQ–2017–040]
rules/sro.shtml); or
markets nearly simultaneously, the
Exchange believes that a participant • Send an email to rule-comments@ Self-Regulatory Organizations; The
should have a consistent experience sec.gov. Please include File Number SR– NASDAQ Stock Market LLC; Notice of
with respect to the nullification or BatsBZX–2017–35 on the subject line. Filing and Immediate Effectiveness of
adjustment of transactions. To that end, Proposed Rule Change Relating to
Paper Comments
the selection and implementation of a Continued Listing Standards for
TP Provider utilized by all options • Send paper comments in triplicate Exchange-Traded Products
exchanges will further reduce the to Secretary, Securities and Exchange
possibility that participants with May 17, 2017.
Commission, 100 F Street NE.,
potentially erroneous transactions that Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
span multiple options exchanges are Securities Exchange Act of 1934
handled differently on such exchanges. All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Similarly, the proposed ability to Number SR–BatsBZX–2017–35. This file notice is hereby given that on May 3,
consider quotations invalid on another number should be included on the 2017, The NASDAQ Stock Market LLC
options exchange if ultimately subject line if email is used. To help the (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
originating from a party to a potentially Commission process and review your Securities and Exchange Commission
erroneous transaction on the Exchange comments more efficiently, please use (‘‘Commission’’) the proposed rule
represents a proposal intended to only one method. The Commission will change as described in Items I and II
further foster cooperation by the options post all comments on the Commission’s below, which Items have been prepared
exchanges with respect to market Internet Web site (http://www.sec.gov/ by the Exchange. The Commission is
events. The Exchange understands that rules/sro.shtml). Copies of the publishing this notice to solicit
all other options exchanges intend to submission, all subsequent comments on the proposed rule change
file proposals that are substantially amendments, all written statements from interested persons.
similar to this proposal. with respect to the proposed rule
The Exchange does not believe that I. Self-Regulatory Organization’s
change that are filed with the Statement of the Terms of Substance of
the proposed rule change imposes a
Commission, and all written the Proposed Rule Change
burden on intramarket competition
communications relating to the
because the proposed provisions apply The Exchange proposes to amend the
to all market participants equally. proposed rule change between the
Commission and any person, other than previously approved continued listing
C. Self-Regulatory Organization’s those that may be withheld from the requirements for exchange-traded
Statement on Comments on the public in accordance with the products (‘‘ETPs’’) in the Nasdaq Rule
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be 5700 Series, as well as Nasdaq Rule
Members, Participants, or Others available for Web site viewing and 5810 (Notification of Deficiency by the
The Exchange has neither solicited printing in the Commission’s Public Listing Qualifications Department), to
nor received written comments on the make a number of conforming and
Reference Room, 100 F Street NE.,
proposed rule change. housekeeping changes.3
Washington, DC 20549 on official
business days between the hours of The Exchange also proposes to delay
III. Date of Effectiveness of the the implementation date of the
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for previously approved changes to the
Commission Action continued listing standards from August
inspection and copying at the principal
Within 45 days of the date of 1, 2017 to October 1, 2017.
office of the Exchange. All comments
publication of this notice in the Federal The text of the proposed rule change
received will be posted without change;
Register or within such longer period is available on the Exchange’s Web site
up to 90 days (i) as the Commission may the Commission does not edit personal
identifying information from at http://nasdaq.cchwallstreet.com, at
designate if it finds such longer period the principal office of the Exchange, and
to be appropriate and publishes its submissions. You should submit only
information that you wish to make at the Commission’s Public Reference
sradovich on DSK3GMQ082PROD with NOTICES
reasons for so finding or (ii) as to which Room.
the Exchange consents, the Commission available publicly. All submissions
will: should refer to File Number SR–
26 17 CFR 200.30–3(a)(12).
(A) By order approve or disapprove BatsBZX–2017–35, and should be 1 15 U.S.C. 78s(b)(1).
such proposed rule change, or submitted on or before June 13, 2017. 2 17 CFR 240.19b–4.
(B) institute proceedings to determine 3 See Securities Exchange Act Release No. 79784
whether the proposed rule change (Jan. 12, 2017), 82 FR 6664 (Jan. 19, 2017) (SR–
should be disapproved. NASDAQ–2016–135).
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![23692 Federal Register / Vol. 82, No. 98 / Tuesday, May 23, 2017 / Notices
At any time within 60 days of the inspection and copying at the principal II. Clearing Agency’s Statement of the
filing of the proposed rule change, the office of the Exchange. All comments Purpose of, and Statutory Basis for, the
Commission summarily may received will be posted without change; Proposed Rule Change, Security-Based
temporarily suspend such rule change if the Commission does not edit personal Swap Submission or Advance Notice
it appears to the Commission that such identifying information from In its filing with the Commission, ICE
action is: (i) Necessary or appropriate in submissions. You should submit only Clear Europe included statements
the public interest; (ii) for the protection information that you wish to make concerning the purpose of and basis for
of investors; or (iii) otherwise in available publicly. All submissions the proposed rule change and discussed
furtherance of the purposes of the Act. should refer to File Number SR– any comments it received on the
If the Commission takes such action, the proposed rule change. The text of these
NASDAQ–2017–040 and should be
Commission shall institute proceedings statements may be examined at the
submitted on or before June 13, 2017.
to determine whether the proposed rule places specified in Item IV below. ICE
should be approved or disapproved. For the Commission, by the Division of
Clear Europe has prepared summaries,
Trading and Markets, pursuant to delegated
IV. Solicitation of Comments set forth in sections A, B, and C below,
authority.14
of the most significant aspects of such
Interested persons are invited to Eduardo A. Aleman, statements.
submit written data, views, and Assistant Secretary.
arguments concerning the foregoing, A. Clearing Agency’s Statement of the
[FR Doc. 2017–10464 Filed 5–22–17; 8:45 am]
including whether the proposed rule Purpose of, and Statutory Basis for, the
change is consistent with the Act. BILLING CODE 8011–01–P Proposed Rule Change, Security-Based
Comments may be submitted by any of Swap Submission or Advance Notice
the following methods:
SECURITIES AND EXCHANGE 1. Purpose
Electronic Comments COMMISSION ICE Clear Europe proposes revising its
• Use the Commission’s Internet Finance Procedures to implement
comment form (http://www.sec.gov/ [Release No. 34–80706; File No. SR–ICEEU– certain changes to the Clearing House
rules/sro.shtml); or 2017–005] CDS Contributions. These revisions do
• Send an email to rule-comments@ not involve any changes to the ICE Clear
sec.gov. Please include File Number SR– Self-Regulatory Organizations; ICE Europe Clearing Rules.3
NASDAQ–2017–040 on the subject line. Clear Europe Limited; Notice of Filing ICE Clear Europe maintains a
Paper Comments of Proposed Rule Change, Security- waterfall of defined default resources,
Based Swap Submission or Advance including its CDS Guaranty Fund, to
• Send paper comments in triplicate provide financial resources to cover
Notice Relating to Clearing House
to Secretary, Securities and Exchange potential losses resulting from the
Commission, 100 F Street NE., Contributions to CDS Default
Resources default of a CDS Clearing Member.4 The
Washington, DC 20549–1090. CDS Guaranty Fund consists of required
All submissions should refer to File May 17, 2017. contributions made by CDS Clearing
Number SR–NASDAQ–2017–040. This Members. Currently, ICE Clear Europe’s
file number should be included on the Pursuant to Section 19(b)(1) of the
contribution to CDS default resources is
subject line if email is used. To help the Securities Exchange Act of 1934
split into two parts—namely, a Clearing
Commission process and review your (‘‘Act’’),1 and Rule 19b–4 thereunder,2
House CDS Initial Contribution and a
comments more efficiently, please use notice is hereby given that on May 4,
Clearing House CDS GF Contribution.
only one method. The Commission will 2017, ICE Clear Europe Limited (‘‘ICE Under the default resource waterfall,
post all comments on the Commission’s Clear Europe’’ or ‘‘Clearing House’’) assets (including margin and CDS
Internet Web site (http://www.sec.gov/ filed with the Securities and Exchange Guaranty Fund contributions) provided
rules/sro.shtml). Copies of the Commission (‘‘Commission’’) the by the defaulting CDS Clearing Member
submission, all subsequent proposed rule change described in Items are used first to cover default losses. In
amendments, all written statements I, II and III below, which Items have the event the Clearing House
with respect to the proposed rule been primarily prepared by ICE Clear experiences losses from the default of a
change that are filed with the Europe. The Commission is publishing CDS Clearing Member that exceed the
Commission, and all written this notice to solicit comments on the resources provided by the defaulter, the
communications relating to the proposed rule change from interested Clearing House CDS Initial Contribution
proposed rule change between the persons. would, in accordance with the Rules, be
Commission and any person, other than applied next, and prior the use of CDS
those that may be withheld from the I. Clearing Agency’s Statement of the Guaranty Fund contributions of non-
public in accordance with the Terms of Substance of the Proposed defaulting CDS Clearing Members.
provisions of 5 U.S.C. 552, will be Rule Change, Security-Based Swap Following exhaustion of the Clearing
available for Web site viewing and Submission, or Advance Notice House CDS Initial Contribution, the CDS
printing in the Commission’s Public Guaranty Fund contributions of non-
Reference Room, 100 F Street NE., The principal purpose of the changes
is to modify the ICE Clear Europe defaulting CDS Clearing Members and
Washington, DC 20549, on official the Clearing House CDS GF
business days between the hours of Finance Procedures to implement
sradovich on DSK3GMQ082PROD with NOTICES
Contribution would be applied to cover
10:00 a.m. and 3:00 p.m. Copies of such certain changes to the Clearing House
filing also will be available for CDS Contributions. 3 Capitalized terms used but not defined herein
have the meanings specified in the ICE Clear
the proposed rule change at least five business days Europe Clearing Rules (the ‘‘Rules’’).
prior to the date of filing of the proposed rule 14 17
4 The waterfall of application of default resources
CFR 200.30–3(a)(12).
change, or such shorter time as designated by the upon the default of a CDS Clearing Member is set
1 15 U.S.C. 78s(b)(1).
Commission. The Exchange has satisfied this out in ICE Clear Europe Rules 908(c) and (g), and
requirement. 2 17 CFR 240.19b–4. is summarized here for reference.
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Document Created: 2017-05-23 02:14:45
Document Modified: 2017-05-23 02:14:45
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 23690 |
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