82 FR 26532 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 108 (June 7, 2017)
Federal Register Volume 82, Issue 108 (June 7, 2017)
| Page Range | 26532-26534 | |
| FR Document | 2017-11749 |
[Federal Register Volume 82, Number 108 (Wednesday, June 7, 2017)] [Notices] [Pages 26532-26534] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11749] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80838; File No. SR-NYSEArca-2017-61] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule June 1, 2017. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on May 31, 2017, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. 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\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Options Fee Schedule (``Fee Schedule'') with respect to the Lead Market Maker (``LMM'') Rights Fee. The Exchange proposes to implement the fee change effective June 1, 2017. The proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization 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 those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to modify the calculation of the threshold for qualification for the LMM Rights Fee discount. The LMM Rights Fee is charged ``on a per issue basis to the OTP Firm acting as LMM in the issue.'' \4\ The Exchange charges a Rights Fee on each issue in a LMM's allocation, with rates based on the Average National Daily Customer Contracts. LMMs are also able to achieve a 50% discount to their total monthly LMM Rights Fee by achieving an average daily volume (``ADV'') of 50,000 contracts, of which at least 10,000 are within its LMM Appointment (the ``Discount'').\5\ --------------------------------------------------------------------------- \4\ See Fee Schedule, available here, https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf (NYSE Arca General Options and Trading Permit (OTP) Fee, Lead Market Maker Rights Fee). \5\ See id., endnote 2. --------------------------------------------------------------------------- The Exchange proposes to replace the static minimum contract thresholds of 50,000 and 10,000 with market share criteria expressed as a percentage of Total Industry Customer Equity and exchange traded fund (``ETF'') option ADV (``TCADV'').\6\ The Exchange believes this proposed modification would enable Market Makers to achieve the Discount more consistently, despite monthly or seasonal fluctuations in industry volume. The Exchange is not proposing to adjust the source of the qualifying volume for each component of the Discount, as this criterion will remain the same. --------------------------------------------------------------------------- \6\ The volume thresholds are based on Market Makers' volume transacted electronically as a percentage of total industry Customer equity and ETF options volumes as reported by the Options Clearing Corporation (the ``OCC''). Total industry Customer equity and ETF option volume is comprised of those equity and ETF contracts that clear in the Customer account type at OCC and does not include contracts that clear in either the Firm or Market Maker account type at OCC or contracts overlying a security other than an equity or ETF security. See OCC Monthly Statistics Reports, available here, http://www.theocc.com/webapps/monthly-volume-reports. --------------------------------------------------------------------------- Specifically, the Exchange proposes the market share requirements for achieving the Discount as follows: ``An LMM with daily contract volume traded electronically of at least 0.40% Total Industry Customer equity and ETF option ADV (`TCADV'), of which 0.08% TCADV are within its LMM appointment, will be charged 50% of the monthly Lead Market Maker Rights Fee.'' \7\ The Exchange notes that the TCADV percentages proposed are a [[Page 26533]] rough equivalent to the existing 50,000 and 10,000 ADV contract thresholds, based on TCADV for the First Quarter of 2017. --------------------------------------------------------------------------- \7\ See proposed Fee Schedule, endnote 2. --------------------------------------------------------------------------- The Exchange is not proposing any changes to the amount of the LMM Rights Fees or any of the other available per issue discounts to the LMM Rights Fee. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\8\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\9\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that modifying the qualification calculation for the Discount from a static monthly contract amount to a percentage of TCADV is reasonable, equitable, and not unfairly discriminatory because it would make the Discount more consistently achievable as the calculation will be more aligned with fluctuations in overall monthly industry volume. The Exchange believes the proposed change is not unfairly discriminatory because the proposed benchmark of TCADV is tied to the amount of monthly volume executed on the Exchange, which would incentivize and reward consistent order flow month-to-month. The Exchange notes that other options exchanges likewise utilize percentages of market share as a benchmark in determining eligibility for monthly [sic] certain credits or rebates.\10\ The Exchange also believes the proposed change would help to prevent LMMs from achieving the Discount only during periods of heavy volumes or from being penalized (i.e., not achieving the Discount) during months of overall lower volumes on the Exchange. The Exchange notes that there is only one LMM per issue, and only LMMs are subject to the LMM Rights Fee, therefore the proposed discount is not unfairly discriminatory. --------------------------------------------------------------------------- \10\ See, e.g., Fee Schedule, supra note 4 (Customer and Professional Customer Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues and Customer and Professional Customer Posting Credit Tiers In Non Penny Pilot Issues, both based on percentage of TCADV); NASDAQ Options Market fee schedule, available at, http://www.nasdaqtrader.com/Micro.aspx?id=optionsPricing (NOM Market Maker Rebate to Add Liquidity in Penny Pilot Options based on total industry customer equity and ETF option ADV contracts per day in a month); BATS Options Exchange fee schedule, available at, http://www.batsoptions.com/support/fee_schedule/ (Market Maker and Non-BATS Market Maker Penny Pilot Add Volume Tiers Market Maker and Non-BATS Market Maker Non Penny Pilot Add Volume Tiers, both based on percentage of total consolidated monthly volume calculated). --------------------------------------------------------------------------- For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\11\ the Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. By adjusting the qualifications to a market share basis rather than per contract volume levels, the Exchange believes the proposed change encourages competition without undue burden by being based on a share of overall business rather than a static volume amount. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and credits to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed rule change reflects this competitive environment. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) \12\ of the Act and subparagraph (f)(2) of Rule 19b-4 \13\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such 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. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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-NYSEArca-2017-61 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-NYSEArca-2017-61. 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 [[Page 26534]] should refer to File Number SR-NYSEArca-2017-61, and should be submitted on or before June 28, 2017. --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-11749 Filed 6-6-17; 8:45 am] BILLING CODE 8011-01-P
![26532 Federal Register / Vol. 82, No. 108 / Wednesday, June 7, 2017 / Notices
• Send an email to rule-comments@ SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
sec.gov. Please include File Number SR– COMMISSION Statement of the Purpose of, and
BatsEDGX–2017–24 on the subject line. Statutory Basis for, the Proposed Rule
[Release No. 34–80838; File No. SR– Change
Paper Comments
NYSEArca–2017–61] 1. Purpose
• Send paper comments in triplicate The purpose of this filing is to modify
to Secretary, Securities and Exchange Self-Regulatory Organizations; NYSE
the calculation of the threshold for
Commission, 100 F Street NE., Arca, Inc.; Notice of Filing and
qualification for the LMM Rights Fee
Washington, DC 20549–1090. Immediate Effectiveness of Proposed discount.
Rule Change To Amend the NYSE Arca The LMM Rights Fee is charged ‘‘on
All submissions should refer to File Options Fee Schedule
Number SR–BatsEDGX–2017–24. This a per issue basis to the OTP Firm acting
file number should be included on the June 1, 2017.
as LMM in the issue.’’ 4 The Exchange
charges a Rights Fee on each issue in a
subject line if email is used. To help the Pursuant to Section 19(b)(1) 1 of the LMM’s allocation, with rates based on
Commission process and review your Securities Exchange Act of 1934 (the the Average National Daily Customer
comments more efficiently, please use ‘‘Act’’),2 and Rule 19b–4 thereunder,3 Contracts. LMMs are also able to
only one method. The Commission will notice is hereby given that, on May 31, achieve a 50% discount to their total
post all comments on the Commission’s 2017, NYSE Arca, Inc. (the ‘‘Exchange’’ monthly LMM Rights Fee by achieving
Internet Web site (http://www.sec.gov/ or ‘‘NYSE Arca’’) filed with the an average daily volume (‘‘ADV’’) of
rules/sro.shtml). Copies of the Securities and Exchange Commission 50,000 contracts, of which at least
submission, all subsequent (the ‘‘Commission’’) the proposed rule 10,000 are within its LMM Appointment
amendments, all written statements change as described in Items I, II, and (the ‘‘Discount’’).5
with respect to the proposed rule III below, which Items have been The Exchange proposes to replace the
change that are filed with the static minimum contract thresholds of
prepared by the self-regulatory
Commission, and all written 50,000 and 10,000 with market share
organization. The Commission is
communications relating to the criteria expressed as a percentage of
publishing this notice to solicit Total Industry Customer Equity and
proposed rule change between the comments on the proposed rule change
Commission and any person, other than exchange traded fund (‘‘ETF’’) option
from interested persons. ADV (‘‘TCADV’’).6 The Exchange
those that may be withheld from the
public in accordance with the I. Self-Regulatory Organization’s believes this proposed modification
Statement of the Terms of the Substance would enable Market Makers to achieve
provisions of 5 U.S.C. 552, will be
of the Proposed Rule Change the Discount more consistently, despite
available for Web site viewing and
monthly or seasonal fluctuations in
printing in the Commission’s Public industry volume. The Exchange is not
The Exchange proposes to amend the
Reference Room, 100 F Street NE., proposing to adjust the source of the
NYSE Arca Options Fee Schedule (‘‘Fee
Washington, DC 20549, on official qualifying volume for each component
Schedule’’) with respect to the Lead
business days between the hours of of the Discount, as this criterion will
Market Maker (‘‘LMM’’) Rights Fee. The
10:00 a.m. and 3:00 p.m. Copies of the remain the same.
Exchange proposes to implement the fee
filing also will be available for Specifically, the Exchange proposes
change effective June 1, 2017. The
inspection and copying at the principal the market share requirements for
proposed rule change is available on the
office of the Exchange. All comments achieving the Discount as follows: ‘‘An
Exchange’s Web site at www.nyse.com,
received will be posted without change; LMM with daily contract volume traded
at the principal office of the Exchange, electronically of at least 0.40% Total
the Commission does not edit personal
and at the Commission’s Public Industry Customer equity and ETF
identifying information from
Reference Room. option ADV (‘TCADV’), of which 0.08%
submissions. You should submit only
information that you wish to make II. Self-Regulatory Organization’s TCADV are within its LMM
available publicly. All submissions Statement of the Purpose of, and appointment, will be charged 50% of
should refer to File Number SR– Statutory Basis for, the Proposed Rule the monthly Lead Market Maker Rights
BatsEDGX–2017–24, and should be Change Fee.’’ 7 The Exchange notes that the
submitted on or before June 28, 2017. TCADV percentages proposed are a
In its filing with the Commission, the
For the Commission, by the Division of self-regulatory organization included 4 See Fee Schedule, available here, https://
Trading and Markets, pursuant to delegated www.nyse.com/publicdocs/nyse/markets/arca-
statements concerning the purpose of, options/NYSE_Arca_Options_Fee_Schedule.pdf
authority.21
and basis for, the proposed rule change (NYSE Arca General Options and Trading Permit
Eduardo A. Aleman, and discussed any comments it received (OTP) Fee, Lead Market Maker Rights Fee).
5 See id., endnote 2.
Assistant Secretary. on the proposed rule change. The text 6 The volume thresholds are based on Market
[FR Doc. 2017–11744 Filed 6–6–17; 8:45 am] of those statements may be examined at Makers’ volume transacted electronically as a
BILLING CODE 8011–01–P the places specified in Item IV below. percentage of total industry Customer equity and
The Exchange has prepared summaries, ETF options volumes as reported by the Options
Clearing Corporation (the ‘‘OCC’’). Total industry
set forth in sections A, B, and C below, Customer equity and ETF option volume is
sradovich on DSK3GMQ082PROD with NOTICES
of the most significant parts of such comprised of those equity and ETF contracts that
statements. clear in the Customer account type at OCC and does
not include contracts that clear in either the Firm
or Market Maker account type at OCC or contracts
overlying a security other than an equity or ETF
security. See OCC Monthly Statistics Reports,
1 15 U.S.C. 78s(b)(1). available here, http://www.theocc.com/webapps/
2 15 U.S.C. 78a. monthly-volume-reports.
21 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. 7 See proposed Fee Schedule, endnote 2.
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![Federal Register / Vol. 82, No. 108 / Wednesday, June 7, 2017 / Notices 26533
rough equivalent to the existing 50,000 Exchange. The Exchange notes that Commission takes such action, the
and 10,000 ADV contract thresholds, there is only one LMM per issue, and Commission shall institute proceedings
based on TCADV for the First Quarter of only LMMs are subject to the LMM under Section 19(b)(2)(B) 14 of the Act to
2017. Rights Fee, therefore the proposed determine whether the proposed rule
The Exchange is not proposing any discount is not unfairly discriminatory. change should be approved or
changes to the amount of the LMM For these reasons, the Exchange disapproved.
Rights Fees or any of the other available believes that the proposal is consistent
per issue discounts to the LMM Rights with the Act. IV. Solicitation of Comments
Fee. Interested persons are invited to
B. Self-Regulatory Organization’s
2. Statutory Basis Statement on Burden on Competition submit written data, views, and
arguments concerning the foregoing,
The Exchange believes that the In accordance with Section 6(b)(8) of including whether the proposed rule
proposed rule change is consistent with the Act,11 the Exchange does not believe change is consistent with the Act.
Section 6(b) of the Act,8 in general, and that the proposed rule change will Comments may be submitted by any of
furthers the objectives of Sections impose any burden on competition that the following methods:
6(b)(4) and (5) of the Act,9 in particular, is not necessary or appropriate in
because it provides for the equitable furtherance of the purposes of the Act. Electronic Comments
allocation of reasonable dues, fees, and By adjusting the qualifications to a
other charges among its members, • Use the Commission’s Internet
market share basis rather than per
issuers and other persons using its comment form (http://www.sec.gov/
contract volume levels, the Exchange
facilities and does not unfairly rules/sro.shtml); or
believes the proposed change
discriminate between customers, encourages competition without undue • Send an email to rule-comments@
issuers, brokers or dealers. burden by being based on a share of sec.gov. Please include File Number SR–
The Exchange believes that modifying overall business rather than a static NYSEArca–2017–61 on the subject line.
the qualification calculation for the volume amount.
Discount from a static monthly contract Paper Comments
The Exchange notes that it operates in
amount to a percentage of TCADV is a highly competitive market in which • Send paper comments in triplicate
reasonable, equitable, and not unfairly market participants can readily favor to Secretary, Securities and Exchange
discriminatory because it would make competing venues. In such an Commission, 100 F Street NE.,
the Discount more consistently environment, the Exchange must Washington, DC 20549–1090.
achievable as the calculation will be continually review, and consider
more aligned with fluctuations in All submissions should refer to File
adjusting, its fees and credits to remain Number SR–NYSEArca–2017–61. This
overall monthly industry volume. The competitive with other exchanges. For
Exchange believes the proposed change file number should be included on the
the reasons described above, the subject line if email is used. To help the
is not unfairly discriminatory because Exchange believes that the proposed
the proposed benchmark of TCADV is Commission process and review your
rule change reflects this competitive comments more efficiently, please use
tied to the amount of monthly volume environment.
executed on the Exchange, which would only one method. The Commission will
incentivize and reward consistent order C. Self-Regulatory Organization’s post all comments on the Commission’s
flow month-to-month. The Exchange Statement on Comments on the Internet Web site (http://www.sec.gov/
notes that other options exchanges Proposed Rule Change Received From rules/sro.shtml). Copies of the
likewise utilize percentages of market Members, Participants, or Others submission, all subsequent
share as a benchmark in determining amendments, all written statements
No written comments were solicited
eligibility for monthly [sic] certain with respect to the proposed rule
or received with respect to the proposed
credits or rebates.10 The Exchange also change that are filed with the
rule change.
believes the proposed change would Commission, and all written
help to prevent LMMs from achieving III. Date of Effectiveness of the communications relating to the
the Discount only during periods of Proposed Rule Change and Timing for proposed rule change between the
heavy volumes or from being penalized Commission Action Commission and any person, other than
(i.e., not achieving the Discount) during The foregoing rule change is effective those that may be withheld from the
months of overall lower volumes on the upon filing pursuant to Section public in accordance with the
19(b)(3)(A) 12 of the Act and provisions of 5 U.S.C. 552, will be
8 15 U.S.C. 78f(b).
subparagraph (f)(2) of Rule 19b–4 13 available for Web site viewing and
9 15 U.S.C. 78f(b)(4) and (5).
thereunder, because it establishes a due, printing in the Commission’s Public
10 See, e.g., Fee Schedule, supra note 4 (Customer
fee, or other charge imposed by the Reference Room, 100 F Street NE.,
and Professional Customer Monthly Posting Credit
Tiers and Qualifications for Executions in Penny Exchange. Washington, DC 20549 on official
Pilot Issues and Customer and Professional At any time within 60 days of the business days between the hours of
Customer Posting Credit Tiers In Non Penny Pilot
filing of such proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of such
Issues, both based on percentage of TCADV); filing also will be available for
NASDAQ Options Market fee schedule, available Commission summarily may
at, http://www.nasdaqtrader.com/ temporarily suspend such rule change if inspection and copying at the principal
Micro.aspx?id=optionsPricing (NOM Market Maker it appears to the Commission that such office of the Exchange. All comments
Rebate to Add Liquidity in Penny Pilot Options received will be posted without change;
sradovich on DSK3GMQ082PROD with NOTICES
based on total industry customer equity and ETF
action is necessary or appropriate in the
public interest, for the protection of the Commission does not edit personal
option ADV contracts per day in a month); BATS
Options Exchange fee schedule, available at, http:// investors, or otherwise in furtherance of identifying information from
www.batsoptions.com/support/fee_schedule/ the purposes of the Act. If the submissions. You should submit only
(Market Maker and Non-BATS Market Maker Penny information that you wish to make
Pilot Add Volume Tiers Market Maker and Non- available publicly. All submissions
11 15 U.S.C. 78f(b)(8).
BATS Market Maker Non Penny Pilot Add Volume
12 15 U.S.C. 78s(b)(3)(A).
Tiers, both based on percentage of total
consolidated monthly volume calculated). 13 17 CFR 240.19b–4(f)(2). 14 15 U.S.C. 78s(b)(2)(B).
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![26534 Federal Register / Vol. 82, No. 108 / Wednesday, June 7, 2017 / Notices
should refer toFile Number SR– and replaced the proposed rule change (‘‘LBMA’’) Gold Price AM 9) and a short
NYSEArca–2017–61, and should be as modified by Amendment No. 1. The position in the Euro (i.e., a long U.S.
submitted on or before June 28, 2017. Commission has not received any dollar (‘‘USD’’) exposure versus the
For the Commission, by the Division of comments on the proposed rule change. Euro).
Trading and Markets, pursuant to delegated This order approves the proposed rule The Pound Gold Trust will be
authority.15 change, as modified by Amendment No. designed to track the performance of the
Eduardo A. Aleman, 2. Solactive GLD® GBP Gold Index, less
Assistant Secretary. II. The Description of the Proposed the expenses of the Fund’s operations.
[FR Doc. 2017–11749 Filed 6–6–17; 8:45 am] Rule Change, as Modified by The Solactive GLD® GBP Gold Index
BILLING CODE 8011–01–P Amendment No. 2 5 seeks to track the daily performance of
a long position in physical gold (as
The Exchange proposes to list and represented by the Gold Price) and a
SECURITIES AND EXCHANGE trade the Shares, which are a series of short position in the British Pound
COMMISSION the World Currency Gold Trust Sterling (i.e., a long USD exposure
(‘‘Trust’’), under NYSE Arca Equities versus the British Pound Sterling). The
[Release No. 34–80840; File No. SR– Rule 8.201.6 Under NYSE Arca Equities
NYSEArca–2017–33] Yen Gold Trust will be designed to track
Rule 8.201, the Exchange may list and the performance of the Solactive GLD®
Self-Regulatory Organizations; NYSE trade, or trade pursuant to unlisted JPY Gold Index, less the expenses of the
Arca, Inc.; Order Approving a trading privileges, Commodity-Based Fund’s operations. The Solactive GLD®
Proposed Rule Change, as Modified by Trust Shares.7 JPY Gold Index seeks to track the daily
Amendment No. 2 Thereto, To List and The Sponsor of the Funds and the performance of a long position in
Trade Shares of the Euro Gold Trust, Trust will be WGC USA Asset physical gold (as represented by the
Pound Gold Trust, and the Yen Gold Management Company, LLC Gold Price) and a short position in the
Trust Under NYSE Arca Equities Rule (‘‘Sponsor’’).8 BNY Mellon Asset Japanese Yen (i.e., a long USD exposure
8.201 Servicing, a division of The Bank of versus the Japanese Yen). The Japanese
New York Mellon (‘‘BNYM’’), will be Yen, the Euro and the British Pound
June 1, 2017. the Funds’ administrator Sterling are referred to collectively as
(‘‘Administrator’’) and transfer agent the ‘‘Reference Currencies.’’ Each of the
I. Introduction
and will not be affiliated with the Trust, Solactive GLD® EUR Gold Index,
On March 31, 2017, NYSE Arca, Inc. the Funds, or the Sponsor. BNYM will Solactive GLD® GBP Gold Index, and
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed also serve as the custodian of the Funds’ Solactive GLD® JPY Gold Index are each
with the Securities and Exchange cash, if any. HSBC Bank plc will be the referred to as an ‘‘Index,’’ and are
Commission (‘‘Commission’’), pursuant custodian of the Funds’ gold. referred to collectively as the ‘‘Indexes.’’
to Section 19(b)(1) of the Securities The Euro Gold Trust will be designed
Exchange Act of 1934 (‘‘Act’’) 1 and Rule to track the performance of the Solactive Generally, each Fund’s holdings will
19b–4 thereunder,2 a proposed rule GLD® EUR Gold Index, less the consist entirely of Gold Bullion.10
change to list and trade shares expenses of the Fund’s operations. The Substantially all of each Fund’s Gold
(‘‘Shares’’) of the Euro Gold Trust, Solactive GLD® EUR Gold Index seeks Bullion holdings will delivered by
Pound Gold Trust, and the Yen Gold to track the daily performance of a long Authorized Participants 11 in exchange
Trust (each a ‘‘Fund’’ and, collectively, position in physical gold (as represented for Fund Shares. The Funds’ Gold
the ‘‘Funds’’) under NYSE Arca Equities by the Gold Price, which generally is the Bullion holdings will not be managed
Rule 8.201. On April 12, 2017, the London Bullion Markets Association and the Funds will not have any
Exchange filed Amendment No. 1 to the investment discretion. The Funds will
proposal, which amended and replaced technical amendment that does not materially alter not hold their respective Reference
the proposed rule change in its entirety. the substance of the proposed rule change or raise Currencies. The Funds generally will
The proposed rule change, as modified any novel regulatory issues. not hold USDs (except from time to time
5 A more detailed description of the Funds, the
by Amendment No. 1, was published for in very limited amounts to pay Fund
Shares, the Indexes and the Gold Delivery
comment in the Federal Register on Agreement (as defined in the Notice), as well as
expenses).
April 19, 2017.3 On May 23, 2017, the investment risks, creation and redemption
Exchange filed Amendment No. 2 to the procedures, NAV calculation, availability of values 9 The ‘‘LBMA Gold Price’’ means the price per
and other information regarding the Funds, and troy ounce of gold stated in USDs as set via an
proposed rule change,4 which amended fees, among other things, is included in the electronic auction process run twice daily at 10:30
Registration Statement, infra note 6, and a.m. and 3:00 p.m. London time each Business Day
15 17 CFR 200.30–3(a)(12). Amendment No. 2, supra note 4. as calculated and administered by the ICE
1 15 U.S.C. 78s(b)(1). 6 On March 30, 2017, the Trust filed with the Benchmark Administration Limited and published
2 17 CFR 240.19b–4. Commission its initial registration statement on by the LBMA on its Web site. The ‘‘LBMA Gold
3 See Securities Exchange Act Release No. 80457 Form S–1 under the Securities Act of 1933 relating Price AM’’ is the 10:30 a.m. LBMA Gold Price. See
(April 13, 2017), 82 FR 18492. to the Funds (File No. 333–217041) (‘‘Registration Amendment No. 2, supra note 4, at 8–9.
4 In Amendment No. 2, the Exchange: (1) Statement’’). 10 Gold Bullion means (a) gold meeting the
7 Commodity-Based Trust Shares are securities requirements of ‘‘London Good Delivery Standards’’
Described further the methodology for each
underlying index; (2) provided additional issued by a trust that represent investors’ discrete or (b) credit to an ‘‘Unallocated Account’’
information regarding Solactive AG, the ‘‘Index identifiable and undivided beneficial ownership representing the right to receive Gold Bullion
Provider;’’ (3) further supported its position that interest in the commodities deposited into the meeting the requirements of London Good Delivery
market makers in the Shares will be able to trade Trust. Standards. London Good Delivery Standards are the
sradovich on DSK3GMQ082PROD with NOTICES
the Shares at prices that are not at a material 8 The Trust will be a Delaware statutory trust specifications for weight dimensions, fineness (or
discount or premium to net asset value (‘‘NAV’’) per consisting of multiple series, each of which will purity), identifying marks and appearance set forth
Share; and (4) made additional statements regarding issue common units of beneficial interest, which in ‘‘The Good Delivery Rules for Gold and Silver
the continued listing requirements applicable to the represent units of fractional undivided beneficial Bars’’ published by the LBMA. See id. at 6, n.19.
Shares. The amendments to the proposed rule interest in and ownership of such series. The term 11 According to the Exchange, Authorized
change are available at: https://www.sec.gov/ of the Trust and each series will be perpetual Participants are the only persons that may place
comments/sr-nysearca-2017-33/ (unless terminated earlier in certain circumstances). orders to create and redeem Creation Units and
nysearca201733.htm. Amendment No. 2 is not The sole trustee of the Trust will be Delaware Trust such persons must enter into a Participant
subject to notice and comment because it is a Company. Agreement. See id. at 18.
VerDate Sep<11>2014 16:37 Jun 06, 2017 Jkt 241001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 E:\FR\FM\07JNN1.SGM 07JNN1](https://thefederalregister.org/doc/82_FR_26640/page/3.svg)
Document Created: 2017-06-07 02:01:22
Document Modified: 2017-06-07 02:01:22
| 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 26532 |
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