82 FR 33189 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Rule Cross-References and Make Non-Substantive Technical Changes to FINRA Rules
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 137 (July 19, 2017)
Federal Register Volume 82, Issue 137 (July 19, 2017)
| Page Range | 33189-33191 | |
| FR Document | 2017-15100 |
[Federal Register Volume 82, Number 137 (Wednesday, July 19, 2017)] [Notices] [Pages 33189-33191] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-15100] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81139; File No. SR-FINRA-2017-024] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Rule Cross-References and Make Non- Substantive Technical Changes to FINRA Rules July 13, 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 June 30, 2017, Financial Industry Regulatory Authority, Inc. (``FINRA'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by FINRA. FINRA has designated the proposed rule change as constituting a ``non-controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under the Act,\3\ which renders the proposal effective upon receipt of this filing by 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\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change FINRA is proposing to update cross-references and make other non- substantive changes within FINRA rules. The text of the proposed rule change is available on FINRA's Web site at http://www.finra.org, at the principal office of FINRA 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, FINRA 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. FINRA 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 On October 18, 2016, the SEC approved changes to FINRA Rule 6730 (Transaction Reporting) to expand the Trade Reporting and Compliance Engine (``TRACE'') reporting rules to include most secondary market transactions in marketable U.S. Treasury securities.\4\ The rule change requires all FINRA members involved in transactions in U.S. Treasury Securities, as defined in the TRACE rules, to report most transactions in those securities to TRACE. The rule change further requires Reportable TRACE Transactions in U.S. Treasury Securities generally to be reported on the same day as the transaction on an end-of-day basis. Because FINRA is not currently proposing to disseminate any trade-level information to the public regarding transactions in U.S. Treasury Securities, the rule change generally imposed a same-day reporting requirement as opposed to a more immediate requirement, such as 15 minutes. The [[Page 33190]] implementation date for the changes is July 10, 2017.\5\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 79116 (October 18, 2016), 81 FR 73167 (October 24, 2016) (Notice of Filing and Order Granting Accelerated Approval of File No. SR-FINRA-2016-027). \5\ See Regulatory Notice 16-39 (October 2016). --------------------------------------------------------------------------- The proposed rule change would update the cross reference in FINRA Rule 6730(a)(1) to clarify that Reportable TRACE Transactions in U.S. Treasury Securities are not subject to the 15-minute reporting requirement. In addition, the proposed rule change would make technical changes to FINRA Rule 6810 (Definitions) \6\ to reflect FINRA Manual style convention changes. --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 80255 (March 15, 2017), 82 FR 14563 (March 21, 2017) (Order Approving File No. SR- FINRA-2017-003). --------------------------------------------------------------------------- FINRA has filed the proposed rule change for immediate effectiveness and has requested that the SEC waive the requirement that the proposed rule change not become operative for 30 days after the date of the filing, so that FINRA can implement the proposed rule change to coincide with effective dates of the affected rule. The implementation date for the proposed changes to FINRA Rule 6730 will be July 10, 2017, to coincide with the implementation date of earlier changes to the rule.\7\ The implementation date for the proposed changes to FINRA Rule 6810 will be the date of filing. --------------------------------------------------------------------------- \7\ See supra note 4; see also Regulatory Notice 16-39 (October 2016). --------------------------------------------------------------------------- 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,\8\ which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. FINRA believes the proposed rule change will provide greater clarity to members and the public regarding FINRA's rules by amending the references in Rule 6810 to conform to FINRA's style conventions and by clarifying in Rule 6730 that Reportable TRACE Transactions in U.S. Treasury Securities are not subject to the 15- minute reporting requirement. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78o-3(b)(6). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change brings clarity and consistency to FINRA rules without adding any burden on firms. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor 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)(iii) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\10\ --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A)(iii). \10\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative before 30 days from the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \11\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The Exchange has asked the Commission to waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. The waiver will allow FINRA to update the cross reference in FINRA Rule 6730 to coincide with the implementation date of that rule, which is July 10, 2017. The implementation date for the proposed changes to FINRA Rule 6810 is June 30, 2017, the date FINRA filed the instant proposed rule change. Therefore, the Commission hereby waives the 30- day operative delay and designates the proposed rule change to be operative upon filing with the Commission.\12\ --------------------------------------------------------------------------- \12\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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-FINRA-2017-024 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-FINRA-2017-024. 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 the filing also will be available for inspection and copying at the principal office of FINRA. 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-FINRA-2017-024, and should be submitted on or before August 9, 2017. [[Page 33191]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jill M. Peterson, Assistant Secretary. [FR Doc. 2017-15100 Filed 7-18-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 137 / Wednesday, July 19, 2017 / Notices 33189
C. Self-Regulatory Organization’s those that may be withheld from the solicit comments on the proposed rule
Statement on Comments on the public in accordance with the change from interested persons.
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be
Members, Participants, or Others available for Web site viewing and I. Self-Regulatory Organization’s
printing in the Commission’s Public Statement of the Terms of the Substance
No written comments were either of the Proposed Rule Change
solicited or received. Reference Room, 100 F Street NE.,
Washington, DC 20549, on official FINRA is proposing to update cross-
III. Date of Effectiveness of the business days between the hours of references and make other non-
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the substantive changes within FINRA
Commission Action filing also will be available for rules.
The foregoing rule change has become inspection and copying at the principal
office of the Exchange. All comments The text of the proposed rule change
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.14 received will be posted without change; is available on FINRA’s Web site at
At any time within 60 days of the the Commission does not edit personal http://www.finra.org, at the principal
filing of the proposed rule change, the identifying information from office of FINRA and at the
Commission summarily may submissions. You should submit only Commission’s Public Reference Room.
temporarily suspend such rule change if information that you wish to make II. Self-Regulatory Organization’s
it appears to the Commission that such available publicly. All submissions Statement of the Purpose of, and
action is: (i) Necessary or appropriate in should refer to File Number SR–BX– Statutory Basis for, the Proposed Rule
the public interest; (ii) for the protection 2017–031 and should be submitted on Change
of investors; or (iii) otherwise in or before August 9, 2017.
furtherance of the purposes of the Act. For the Commission, by the Division of
In its filing with the Commission,
If the Commission takes such action, the Trading and Markets, pursuant to delegated FINRA included statements concerning
Commission shall institute proceedings authority.15 the purpose of and basis for the
to determine whether the proposed rule Jill M. Peterson, proposed rule change and discussed any
should be approved or disapproved. comments it received on the proposed
Assistant Secretary.
IV. Solicitation of Comments rule change. The text of these statements
[FR Doc. 2017–15099 Filed 7–18–17; 8:45 am]
may be examined at the places specified
Interested persons are invited to BILLING CODE 8011–01–P
in Item IV below. FINRA has prepared
submit written data, views, and summaries, set forth in sections A, B,
arguments concerning the foregoing, and C below, of the most significant
including whether the proposed rule SECURITIES AND EXCHANGE
aspects of such statements.
change is consistent with the Act. COMMISSION
Comments may be submitted by any of A. Self-Regulatory Organization’s
the following methods: [Release No. 34–81139; File No. SR–FINRA– Statement of the Purpose of, and
2017–024] Statutory Basis for, the Proposed Rule
Electronic Comments Change
• Use the Commission’s Internet Self-Regulatory Organizations;
comment form (http://www.sec.gov/ Financial Industry Regulatory 1. Purpose
rules/sro.shtml); or Authority, Inc.; Notice of Filing and On October 18, 2016, the SEC
• Send an email to rule-comments@ Immediate Effectiveness of a Proposed approved changes to FINRA Rule 6730
sec.gov. Please include File Number SR– Rule Change To Update Rule Cross- (Transaction Reporting) to expand the
BX–2017–031 on the subject line. References and Make Non-Substantive Trade Reporting and Compliance Engine
Paper Comments Technical Changes to FINRA Rules (‘‘TRACE’’) reporting rules to include
• Send paper comments in triplicate July 13, 2017. most secondary market transactions in
to Secretary, Securities and Exchange marketable U.S. Treasury securities.4
Pursuant to Section 19(b)(1) of the The rule change requires all FINRA
Commission, 100 F Street NE., Securities Exchange Act of 1934
Washington, DC 20549–1090. members involved in transactions in
(‘‘Act’’ ) 1 and Rule 19b–4 thereunder,2 U.S. Treasury Securities, as defined in
All submissions should refer to File notice is hereby given that on June 30, the TRACE rules, to report most
Number SR–BX–2017–031. This file 2017, Financial Industry Regulatory transactions in those securities to
number should be included on the Authority, Inc. (‘‘FINRA’’) filed with the TRACE. The rule change further
subject line if email is used. To help the Securities and Exchange Commission requires Reportable TRACE
Commission process and review your (‘‘SEC’’ or ‘‘Commission’’) the proposed Transactions in U.S. Treasury Securities
comments more efficiently, please use rule change as described in Items I and generally to be reported on the same day
only one method. The Commission will II below, which Items have been as the transaction on an end-of-day
post all comments on the Commission’s prepared by FINRA. FINRA has basis. Because FINRA is not currently
Internet Web site (http://www.sec.gov/ designated the proposed rule change as proposing to disseminate any trade-level
rules/sro.shtml). Copies of the constituting a ‘‘non-controversial’’ rule information to the public regarding
submission, all subsequent change under paragraph (f)(6) of Rule transactions in U.S. Treasury Securities,
asabaliauskas on DSKBBXCHB2PROD with NOTICES
amendments, all written statements 19b–4 under the Act,3 which renders the rule change generally imposed a
with respect to the proposed rule the proposal effective upon receipt of same-day reporting requirement as
change that are filed with the this filing by the Commission. The opposed to a more immediate
Commission, and all written Commission is publishing this notice to requirement, such as 15 minutes. The
communications relating to the
proposed rule change between the 15 17 CFR 200.30–3(a)(12). 4 See Securities Exchange Act Release No. 79116
Commission and any person, other than 1 15 U.S.C. 78s(b)(1). (October 18, 2016), 81 FR 73167 (October 24, 2016)
2 17 CFR 240.19b–4.
(Notice of Filing and Order Granting Accelerated
14 15 U.S.C. 78s(b)(3)(A)(ii). 3 17 CFR 240.19b–4(f)(6). Approval of File No. SR–FINRA–2016–027).
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![Federal Register / Vol. 82, No. 137 / Wednesday, July 19, 2017 / Notices 33191
For the Commission, by the Division of adviser under the Investment Advisers purchased and redeemed at their NAV
Trading and Markets, pursuant to delegated Act of 1940. in Creation Units only. All orders to
authority.13 purchase Creation Units and all
FILING DATE: The application was filed
Jill M. Peterson, on June 26, 2017. redemption requests will be placed by
Assistant Secretary. or through an ‘‘Authorized Participant,’’
HEARING OR NOTIFICATION OF HEARING:
[FR Doc. 2017–15100 Filed 7–18–17; 8:45 am] An order granting the requested relief which will have signed a participant
BILLING CODE 8011–01–P will be issued unless the Commission agreement with a broker-dealer
orders a hearing. Interested persons may registered under the Securities
request a hearing by writing to the Exchange Act of 1934 (‘‘Exchange Act’’)
SECURITIES AND EXCHANGE Commission’s Secretary and serving (together with any future distributor, the
COMMISSION applicants with a copy of the request, ‘‘Distributor’’). Shares will be listed and
[Investment Company Act Release No. personally or by mail. Hearing requests traded individually on a national
32733; 812–14787] should be received by the Commission securities exchange, where share prices
by 5:30 p.m. on August 7, 2017, and will be based on the current bid/offer
Northern Lights Fund Trust and Toews should be accompanied by proof of market. Certain Funds may operate as
Corporation service on applicants, in the form of an Feeder Funds in a master-feeder
affidavit, or for lawyers, a certificate of structure. Any order granting the
July 14, 2017. requested relief would be subject to the
AGENCY: Securities and Exchange service. Pursuant to rule 0–5 under the
Act, hearing requests should state the terms and conditions stated in the
Commission (‘‘Commission’’). application.
nature of the writer’s interest, any facts
ACTION: Notice. 2. Each Fund will consist of a
bearing upon the desirability of a
hearing on the matter, the reason for the portfolio of securities and other assets
Notice of an application for an order
request, and the issues contested. and investment positions (‘‘Portfolio
under section 6(c) of the Investment
Persons who wish to be notified of a Positions’’). Each Fund will disclose on
Company Act of 1940 (the ‘‘Act’’) for an
hearing may request notification by its Web site the identities and quantities
exemption from sections 2(a)(32),
writing to the Commission’s Secretary. of the Portfolio Positions that will form
5(a)(1), 22(d), and 22(e) of the Act and
the basis for the Fund’s calculation of
rule 22c–1 under the Act, under ADDRESSES: Brent J. Fields, Secretary,
NAV at the end of the day.
sections 6(c) and 17(b) of the Act for an Securities and Exchange Commission, 3. Shares will be purchased and
exemption from sections 17(a)(1) and 100 F Street NE., Washington, DC redeemed in Creation Units and
17(a)(2) of the Act, and under section 20549–1090; Applicants: The Trust, generally on an in-kind basis. Except
12(d)(1)(J) for an exemption from 17605 Wright Street Omaha, NE 68130; where the purchase or redemption will
sections 12(d)(1)(A) and 12(d)(1)(B) of the Initial Adviser, 1750 Zion Road, include cash under the limited
the Act. The requested order would Suite 201, Northfield, NJ 08225. circumstances specified in the
permit (a) actively-managed series of FOR FURTHER INFORMATION CONTACT: application, purchasers will be required
certain open-end management Courtney S. Thornton, Senior Counsel, to purchase Creation Units by
investment companies (‘‘Funds’’) to at (202) 551–6812, or Robert H. Shapiro, depositing specified instruments
issue shares redeemable in large Branch Chief, at (202) 551–6821 (‘‘Deposit Instruments’’), and
aggregations only (‘‘Creation Units’’); (b) (Division of Investment Management, shareholders redeeming their shares
secondary market transactions in Fund Chief Counsel’s Office). will receive specified instruments
shares to occur at negotiated market SUPPLEMENTARY INFORMATION: The (‘‘Redemption Instruments’’). The
prices rather than at net asset value following is a summary of the Deposit Instruments and the
(‘‘NAV’’); (c) certain Funds to pay application. The complete application Redemption Instruments will each
redemption proceeds, under certain may be obtained via the Commission’s correspond pro rata to the positions in
circumstances, more than seven days Web site by searching for the file the Fund’s portfolio (including cash
after the tender of shares for number, or for an applicant using the positions) except as specified in the
redemption; (d) certain affiliated Company name box, at http:// application.
persons of a Fund to deposit securities www.sec.gov/search/search.htm or by 4. Because shares will not be
into, and receive securities from, the calling (202) 551–8090. individually redeemable, applicants
Fund in connection with the purchase request an exemption from section
and redemption of Creation Units; (e) Summary of the Application 5(a)(1) and section 2(a)(32) of the Act
certain registered management 1. Applicants request an order that that would permit the Funds to register
investment companies and unit would allow Funds to operate as as open-end management investment
investment trusts outside of the same actively-managed exchange traded companies and issue shares that are
group of investment companies as the funds (‘‘ETFs’’).1 Fund shares will be redeemable in Creation Units only.
Funds (‘‘Acquiring Funds’’) to acquire 5. Applicants also request an
shares of the Funds; and (f) certain 1 Applicants request that the order apply to future exemption from section 22(d) of the Act
Funds (‘‘Feeder Funds’’) to create and series of the Trust or of other open-end management and rule 22c–1 under the Act as
redeem Creation Units in-kind in a investment companies that currently exist or that
may be created in the future (each, included in the
secondary market trading in shares will
master-feeder structure. term ‘‘Fund’’), each of which will operate as an take place at negotiated prices, not at a
asabaliauskas on DSKBBXCHB2PROD with NOTICES
APPLICANTS: Northern Lights Fund Trust actively-managed ETF. Any Fund will (a) be current offering price described in a
(the ‘‘Trust’’), a Delaware statutory trust advised by the Initial Adviser or an entity Fund’s prospectus, and not at a price
controlling, controlled by, or under common
registered under the Act as an open-end control with the Initial Adviser (each such entity or
based on NAV. Applicants state that (a)
management investment company with any successor thereto is included in the term secondary market trading in shares does
multiple series, and Toews Corporation ‘‘Adviser’’) and (b) comply with the terms and not involve a Fund as a party and will
(the ‘‘Initial Adviser’’), a Delaware conditions of the application. For purposes of the not result in dilution of an investment
requested order, the term ‘‘successor’’ is limited to
corporation registered as an investment an entity that results from a reorganization into
in shares, and (b) to the extent different
another jurisdiction or a change in the type of prices exist during a given trading day,
13 17 CFR 200.30–3(a)(12). business organization. or from day to day, such variances occur
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Document Created: 2017-07-19 06:17:32
Document Modified: 2017-07-19 06:17:32
| 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 33189 |
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