82_FR_24273 82 FR 24173 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change Amending Its Listing Standards for Special Purpose Acquisition Companies To Modify the Initial and Continued Distribution Requirements

82 FR 24173 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change Amending Its Listing Standards for Special Purpose Acquisition Companies To Modify the Initial and Continued Distribution Requirements

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 100 (May 25, 2017)

Page Range24173-24174
FR Document2017-10691

Federal Register, Volume 82 Issue 100 (Thursday, May 25, 2017) 
[Federal Register Volume 82, Number 100 (Thursday, May 25, 2017)]
[Notices]
[Pages 24173-24174]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-10691]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80735; File No. SR-NYSE-2017-11]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Designation of a Longer Period for Commission Action on 
Proposed Rule Change Amending Its Listing Standards for Special Purpose 
Acquisition Companies To Modify the Initial and Continued Distribution 
Requirements

May 19, 2017.
    On March 20, 2017, the New York Stock Exchange LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend its listing standards for Special Purpose 
Acquisition Companies (``SPAC'') to modify the initial and continued 
distribution requirements, and to make other minor changes. The 
proposed rule change was published for comment in the Federal Register 
on April 6, 2017.\3\ The Commission received no comments on the 
proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 80358 (March 31, 
2017), 82 FR 16865 (April 6, 2017) (``Notice'').
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    Section 19(b)(2) of the Act \4\ provides that within 45 days of the 
notice publication of the filing of a proposed rule change, or within 
such longer period up to 90 days as the Commission may designate if it 
finds such longer period to be appropriate and publishes its reasons 
for so finding, or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day after publication of the notice for this proposed rule change 
is May 21, 2017. The Commission is extending this 45-day time period. 
The Commission finds it appropriate to designate a longer period within 
which to take action on the proposed rule change so that it has 
sufficient time to consider the proposal. Accordingly, the Commission, 
pursuant to Section 19(b)(2) of the Act,\5\ designates July 5, 2017, as 
the date by which the Commission shall either approve or disapprove, or 
institute

[[Page 24174]]

proceedings to determine whether to disapprove, the proposed rule 
change (File No. SR-NYSE-2017-11).
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    \4\ 15 U.S.C. 78s(b)(2).
    \5\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(31).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-10691 Filed 5-24-17; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 100 / Thursday, May 25, 2017 / Notices 24173 investors with greater ability to hold Commission, 100 F Street NE., SECURITIES AND EXCHANGE Shares based on underlying indexes that Washington, DC 20549–1090. COMMISSION may accord more closely with an investor’s assessment of market risk. All submissions should refer to File [Release No. 34–80735; File No. SR–NYSE– Number SR–BatsBZX–2017–26. This file 2017–11] B. Self-Regulatory Organization’s number should be included on the Statement on Burden on Competition subject line if email is used. To help the Self-Regulatory Organizations; New In accordance with Section 6(b)(8) of Commission process and review your York Stock Exchange LLC; Notice of the Act,13 the Exchange believes that the comments more efficiently, please use Designation of a Longer Period for proposed rule change would not impose only one method. The Commission will Commission Action on Proposed Rule any burden on competition that is not post all comments on the Commission’s Change Amending Its Listing necessary or appropriate in furtherance Standards for Special Purpose Internet Web site (http://www.sec.gov/ of the purposes of the Act. The Acquisition Companies To Modify the rules/sro.shtml). Copies of the proposed rule change would explicitly Initial and Continued Distribution submission, all subsequent Requirements permit Exchange listing and trading amendments, all written statements under Rule 19b–4(e) of Shares based on with respect to the proposed rule May 19, 2017. indexes that include cash as a change that are filed with the On March 20, 2017, the New York component, which would enhance Stock Exchange LLC (‘‘NYSE’’ or Commission, and all written competition among market participants, ‘‘Exchange’’) filed with the Securities communications relating to the to the benefit of investors and the proposed rule change between the and Exchange Commission marketplace. Commission and any person, other than (‘‘Commission’’), pursuant to Section C. Self-Regulatory Organization’s those that may be withheld from the 19(b)(1) of the Securities Exchange Act Statement on Comments on the public in accordance with the of 1934 (‘‘Act’’) 1 and Rule 19b–4 Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be thereunder,2 a proposed rule change to Members, Participants, or Others available for Web site viewing and amend its listing standards for Special The Exchange has neither solicited printing in the Commission’s Public Purpose Acquisition Companies nor received written comments on the Reference Room, 100 F Street NE., (‘‘SPAC’’) to modify the initial and proposed rule change. Washington, DC 20549 on official continued distribution requirements, and to make other minor changes. The III. Date of Effectiveness of the business days between the hours of proposed rule change was published for Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of such comment in the Federal Register on Commission Action filing also will be available for April 6, 2017.3 The Commission inspection and copying at the principal received no comments on the proposal. Within 45 days of the date of publication of this notice in the Federal office of the Exchange. All comments Section 19(b)(2) of the Act 4 provides Register or within such longer period received will be posted without change; that within 45 days of the notice up to 90 days (i) as the Commission may the Commission does not edit personal publication of the filing of a proposed designate if it finds such longer period identifying information from rule change, or within such longer to be appropriate and publishes its submissions. You should submit only period up to 90 days as the Commission reasons for so finding or (ii) as to which information that you wish to make may designate if it finds such longer the self-regulatory organization available publicly. All submissions period to be appropriate and publishes consents, the Commission will: (a) By should refer to File Number SR– its reasons for so finding, or as to which order approve or disapprove such BatsBZX–2017–26, and should be the self-regulatory organization proposed rule change; or (b) institute submitted on or before June 15, 2017. consents, the Commission shall either proceedings to determine whether the For the Commission, by the Division of approve the proposed rule change, proposed rule change should be Trading and Markets, pursuant to delegated disapprove the proposed rule change, or disapproved. authority.14 institute proceedings to determine IV. Solicitation of Comments whether the proposed rule change Eduardo A. Aleman, should be disapproved. The 45th day Interested persons are invited to Assistant Secretary. after publication of the notice for this submit written data, views, and [FR Doc. 2017–10686 Filed 5–24–17; 8:45 am] proposed rule change is May 21, 2017. arguments concerning the foregoing, The Commission is extending this 45- BILLING CODE 8011–01–P including whether the proposed rule day time period. The Commission finds change is consistent with the Act. it appropriate to designate a longer Comments may be submitted by any of period within which to take action on the following methods: the proposed rule change so that it has Electronic Comments sufficient time to consider the proposal. Accordingly, the Commission, pursuant • Use the Commission’s Internet to Section 19(b)(2) of the Act,5 comment form (http://www.sec.gov/ rules/sro.shtml); or designates July 5, 2017, as the date by • Send an email to rule-comments@ which the Commission shall either sec.gov. Please include File Number SR– approve or disapprove, or institute BatsBZX–2017–26 on the subject line. 1 15 U.S.C. 78s(b)(1). Paper Comments 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 80358 • Send paper comments in triplicate (March 31, 2017), 82 FR 16865 (April 6, 2017) to Secretary, Securities and Exchange (‘‘Notice’’). 4 15 U.S.C. 78s(b)(2). 13 15 U.S.C. 78f(b)(8). 14 17 CFR 200.30–3(a)(12). 5 Id. VerDate Sep<11>2014 18:04 May 24, 2017 Jkt 241001 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 E:\FR\FM\25MYN1.SGM 25MYN1

24174 Federal Register / Vol. 82, No. 100 / Thursday, May 25, 2017 / Notices proceedings to determine whether to Commission received no comments to participants on a curve) and relies on disapprove, the proposed rule change the Advance Notices. This publication peer grouping of members to calculate (File No. SR–NYSE–2017–11). serves as notice that the Commission the Credit Rating of a member. For the Commission, by the Division of does not object to the changes set forth Ultimately, the ratings generated are Trading and Markets, pursuant to delegated in the Advance Notices. based on a 7-point rating system, with authority.6 ‘‘1’’ being the strongest Credit Rating I. Description of the Advance Notices Eduardo A. Aleman, and ‘‘7’’ being the weakest Credit Assistant Secretary. The Advance Notices consist of Rating. Although the current CRRM [FR Doc. 2017–10691 Filed 5–24–17; 8:45 am] proposed modifications to the Rules, does not directly consider qualitative By-Laws and Organizational Certificate factors, the Clearing Agencies’ credit BILLING CODE 8011–01–P of DTC (‘‘DTC Rules’’), the Rulebook of risk staff may manually downgrade a GSD (‘‘GSD Rules’’), the Clearing Rules particular member’s Credit Rating based SECURITIES AND EXCHANGE of MBSD (‘‘MBSD Rules’’), and the on various qualitative factors.7 Members COMMISSION Rules & Procedures of NSCC (‘‘NSCC that receive a Credit Rating of 5, 6, or Rules’’) (collectively, the ‘‘Rules’’).5 The 7 are placed on the Clearing Agencies’ [Release No. 34–80731; File Nos. SR–DTC– Advance Notices are proposals by the ‘‘Watch List,’’ as these members present 2017–801; SR–FICC–2017–804; SR–NSCC– Clearing Agencies to amend the Rules a greater risk of default.8 2017–801] to: (i) Enhance their shared credit risk To improve the coverage and the Self-Regulatory Organizations; The rating matrix (‘‘Credit Risk Rating effectiveness of the current CRRM, the Depository Trust Company; Fixed Matrix’’ or ‘‘CRRM’’), which was Clearing Agencies are proposing three Income Clearing Corporation; National developed by the Clearing Agencies to enhancements, as discussed below. In Securities Clearing Corporation; evaluate the credit risks posed by addition to the enhancements, the Notice of No Objection to Advance certain Clearing Agency members to the Clearing Agencies also propose to make Notices To Enhance the Credit Risk Clearing Agencies (and by implication other changes to their Rules to more Rating Matrix and Make Other Changes to all of the Clearing Agency members), fully describe the Clearing Agencies’ as a result of providing services to such current ongoing membership monitoring May 19, 2017. members; and (ii) make other process, both related and unrelated to On March 22, 2017, The Depository amendments to the Rules, both related the CRRM, also discussed below.9 Trust Company (‘‘DTC’’), Fixed Income and unrelated to the CRRM, to provide Clearing Corporation (‘‘FICC’’), and more transparency and description A. Proposed CRRM Enhancements National Securities Clearing Corporation regarding the Clearing Agencies’ current Currently, the CRRM is comprised of (‘‘NSCC,’’ each a ‘‘Clearing Agency,’’ ongoing membership monitoring two Credit Rating models—one for U.S. and collectively, ‘‘Clearing Agencies’’) process, as described below. broker-dealers and one for U.S. banks. filed with the Securities and Exchange Currently, the CRRM rates the credit The first proposed enhancement would Commission (‘‘Commission’’), risk presented by members of the expand the CRRM by adding a third respectively advance notices SR–DTC– Clearing Agencies that are U.S. broker- model that would enable the CRRM to 2017–801, SR–FICC–2017–804, and SR– dealers and U.S. banks. The CRRM generate Credit Ratings for members that NSCC–2017–801 (collectively, the assigns a credit rating based on certain are foreign banks or foreign trust ‘‘Advance Notices’’) pursuant to section quantitative factors (‘‘Credit Rating’’), companies that have audited financial 806(e)(1) of the Payment, Clearing, and which vary based upon whether the data that is publicly available. The Settlement Supervision Act of 2010 member is a broker-dealer or bank.6 The Credit Rating for these particular (‘‘Clearing Supervision Act’’) 1 and Rule current CRRM also uses a relative members would be based on both 19b–4(n)(1)(i) 2 under the Securities scoring approach (i.e., rating quantitative and qualitative factors, as Exchange Act of 1934 (‘‘Exchange indicated in the second enhancement, Act’’).3 The Advance Notices were changes were published for comment in the Federal below. According to the Clearing published for comment in the Federal Register on April 11, 2017. Securities Exchange Act Agencies, the expected benefit of this Register on April 7, 2017.4 The Release Nos. 30383 (April 5, 2017), 82 FR 17468 (April 11, 2017) (SR–FICC–2017–006); 80382 (April expansion and enhancement of the 5, 2017), 82 FR 17483 (April 11, 2017) (SR–DTC– CRRM would be that the Clearing 6 17 CFR 200.30–3(a)(31). 1 12 2017–002); and 80381 (April 5, 2017), 82 FR 17475 Agencies could better evaluate the U.S.C. 5465(e)(1). The Financial Stability (April 11, 2017) (SR–NSCC–2017–002). The Oversight Council designated the Clearing Agencies default risk of their foreign bank or Commission did not receive any comments on the systemically important financial market utilities on proposed rule changes. foreign trust company members. July 18, 2012. Financial Stability Oversight Council 5 Available at http://www.dtcc.com/en/legal/ The second proposed enhancement 2012 Annual Report, Appendix A, http:// rules-and-procedures. FICC is comprised of two would supplement the Clearing www.treasury.gov/initiatives/fsoc/Documents/ divisions: The Government Securities Division 2012%20Annual%20Report.pdf. Therefore, the Agencies’ ability to manually (‘‘GSD’’) and the Mortgage-Backed Securities Clearing Agencies are required to comply with the Division (‘‘MBSD’’). Each division serves as a downgrade members by incorporating Clearing Supervision Act and file advance notices central counterparty, becoming the buyer and seller with the Commission. 12 U.S.C. 5465(e). to each of their respective members’ securities 7 Quantitative factors currently considered by the 2 17 CFR 240.19b–4(n)(1)(i). Clearing Agencies include: (a) Available news transactions and guarantying settlement of those 3 15 U.S.C. 78s(b)(1). transactions, even if a member defaults. GSD reports and/or regulatory observations relating to 4 Securities Exchange Act Release Nos. 80395 provides, among other things, clearance and the member; (b) member’s liquidity arrangements; (April 7, 2017), 82 FR 17921 (April 13, 2017) (SR– settlement for trades in U.S. Government debt and (c) material changes to the member’s NSCC–2017–801); 80396 (April 7, 2017), 82 FR issues. MBSD provides, among other things, organizational structure. clearance and settlement for trades in mortgage- 8 Members on the Watch List are subject to 17906 (April 13, 2017) (SR–FICC–2017–804); and 80394 (April 7, 2017), 82 FR 17901 (April 13, 2017) backed securities. GSD and MBSD maintain enhanced surveillance by the Clearing Agencies and (SR–DTC–2017–801) (‘‘Notices’’). The Clearing separate sets of rules, margin models, and clearing additional margin charges. Agencies also filed proposed rule changes with the funds. 9 Although each of the Clearing Agencies uses the Commission pursuant to section 19(b)(1) of the 6 For U.S. broker-dealers, the Clearing Agencies CRRM uniformly, the description of the respective Exchange Act and Rule 19b–4 thereunder, seeking consider size (i.e., total excess net capital), capital, Clearing Agencies’ Rules regarding the CRRM are approval of changes to their Rules necessary to leverage, liquidity, and profitability. For U.S. banks, different. To address this issue, the Clearing implement the proposal. 15 U.S.C. 78s(b)(1) and 17 the Clearing Agencies consider size, capital, asset Agencies propose to adopt similar Rules at each CFR 240.19b–4, respectively. The proposed rule quality, earnings, and liquidity. Clearing Agency. VerDate Sep<11>2014 18:04 May 24, 2017 Jkt 241001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\25MYN1.SGM 25MYN1


Document Created: 2018-11-08 08:52:35
Document Modified: 2018-11-08 08:52:35
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 24173 
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