82 FR 36837 - Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Policy Relating to Its Treatment of Trade Reports That It Determines To Be Inconsistent With the Prevailing Market
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 150 (August 7, 2017)
Federal Register Volume 82, Issue 150 (August 7, 2017)
| Page Range | 36837-36839 | |
| FR Document | 2017-16513 |
[Federal Register Volume 82, Number 150 (Monday, August 7, 2017)] [Notices] [Pages 36837-36839] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-16513] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81278; File No. SR-IEX-2017-24] Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Policy Relating to Its Treatment of Trade Reports That It Determines To Be Inconsistent With the Prevailing Market August 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 July 18, 2017, the Investors Exchange LLC (``IEX'' or the ``Exchange'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II 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 Substance of the Proposed Rule Change Pursuant to the provisions of Section 19(b)(1) under the Securities Exchange Act of 1934 (``Act''),\4\ and Rule 19b-4 thereunder,\5\ Investors Exchange LLC (``IEX'' or ``Exchange'') is filing with the Commission a proposed rule change to adopt a policy relating to its treatment of trade reports that it determines to be inconsistent with the prevailing market. The Exchange has designated this rule change as ``non-controversial'' under Section 19(b)(3)(A) of the Act \6\ and provided the Commission with the notice required by Rule 19b-4(f)(6) thereunder.\7\ The text of the proposed rule change is available at the Exchange's Web site at www.iextrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78s(b)(1). \5\ 17 CRF 240.19b-4. \6\ 15 U.S.C. 78s(b)(3)(A). \7\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- II. Self-Regulatory Organization's Statement of the Purpose of, and the 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 these statement may be examined at the places specified in Item IV below. The self-regulatory organization 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose Trades in listed securities occasionally occur at prices that deviate from prevailing market prices and those trades sometimes establish a high, low or last sale price for a security that does not reflect the true market for the security. The Consolidated Tape Association (``CTA'') Plan and the Nasdaq UTP Plan (``UTP Plan'') each offer participants in such plans with the discretion to append an Aberrant Report Indicator to a trade report to indicate that the market believes that the trade price of a particular trade executed on the participant's market does not accurately reflect the prevailing market for the security in question.\8\ The New York Stock Exchange (``NYSE''), Nasdaq Stock Market (``Nasdaq'') and several other national securities exchanges have adopted policies related to use of the Aberrant Report Indicator for equities trades that, while not eligible for cancellation pursuant to applicable exchange rules governing clearly erroneous executions, are determined not to accurately reflect the prevailing market for the security in question.\9\ The Exchange believes that such policies are appropriate in order to identify such trades to vendors and market participants so that they may exclude such trades from relevant pricing metrics (e.g., high, low and last sale prices). Accordingly, IEX is proposing to adopt a policy substantially similar to the existing policies of such other national securities exchanges as described below.\10\ --------------------------------------------------------------------------- \8\ The CTA recommends that data recipients should exclude the price of any trade to which the Aberrant Report Indicator has been appended from any calculation of the high, low and last sale prices for the security. \9\ See, e.g., Securities Exchange Act Release No. 59151 (December 23, 2008), 74 FR 158 (January 2, 2009) (SR-NASDAQ-2008- 100) and Securities Exchange Act Release No. 58736 (October 6, 2008), 73 FR 60380 (October 10, 2008) (SR-NYSE-2008-91). \10\ See note 9 supra. --------------------------------------------------------------------------- During the course of surveillance by the Exchange or as a result of notification by another market, listed company,\11\ or market participant, the Exchange may become aware of trade prices that do not accurately reflect the prevailing market for a security. In such a case, the Exchange will contact the listing exchange (if the Exchange is not the listing exchange) and other markets (in the case of executions that take place across multiple markets) to seek consensus as to whether the trade price is consistent with the prevailing market for the security. If the Exchange determines that the trade price is inconsistent with the prevailing market for the security after considering the factors discussed below, the Exchange will append an Aberrant Report Indicator to the trade pursuant to applicable CTA and UTP procedures. Appending an Aberrant Report Indicator to the trade will have no effect on the validity of the underlying trade. --------------------------------------------------------------------------- \11\ On June 17, 2016 the Commission granted IEX's application for registration as a national securities exchange under Section 6 of the Act including approval of rules applicable to the qualification, listing and delisting of companies on the Exchange. (See Securities Exchange Act Release No. 34-78101 (June 17, 2016), 81 FR 41141 (June 23, 2016) (File No. 10-222)). The Exchange plans to begin a listing program in 2017. --------------------------------------------------------------------------- IEX currently trades securities on an unlisted trading privilege (``UTP'') basis, that are listed on other exchanges. IEX also intends to become a primary listing exchange. The proposed policy would be applicable to trades that occur on IEX, whether traded on a UTP basis or listed on IEX. In making the determination to append the Aberrant Report Indicator to a particular trade, the Exchange shall consider all factors related to a trade, including, but not limited to, the following:Material news released for the security; Suspicious trading activity; System malfunctions or disruptions; Locked or crossed markets; A recent trading halt or resumption of trading in the security; Whether the security is in its initial public offering; Volume and volatility for the security; [[Page 36838]] Whether the trade represents a 52-week high or low for the security; Whether the trade price deviates significantly from recent trading patterns in the security; Whether the trade price reflects a stock-split, reorganization or other corporate action; The validity of consolidated tape trades and quotes in comparison to national best bids and offers; and The general volatility of market conditions. In determining whether trade prices are inconsistent with the prevailing market, the Exchange proposes that its policy shall be to follow the following general guidelines: The Exchange will review whether a trade price does not reflect the prevailing market for a security if the trade occurs during regular trading hours (i.e., 9:30 a.m. to 4 p.m.) and occurs at a price that deviates from the ``Reference Price'' by an amount that meets or exceeds the following thresholds: ------------------------------------------------------------------------ Numerical Trade price threshold (percent) ------------------------------------------------------------------------ Between $0 and $15.00....................................... 7 Between $15.01 and $50.00................................... 5 In excess of $50.00......................................... 3 ------------------------------------------------------------------------ The ``Reference Price'' refers to (a) if the primary market for the security is open at the time of the trade, the national best bid or offer for the security, or (b) if the primary market for the security is not open at the time of the trade, the first executable quote or print for the security on the primary market after execution of the trade in question. However, if the circumstances suggest that a different Reference Price would be more appropriate, the Exchange will use the different Reference Price. For instance, if the national best bid and offer for the security are so wide apart as to fail to reflect the market for the security, the Exchange might use as the Reference Price a trade price or best bid or offer that was available prior to the trade in question. If IEX determines that a trade price does not reflect the prevailing market for a security and the trade represented the last sale of the security on the Exchange during a trading session, the Exchange may also determine to remove that trade's designation as the last sale and the preceding last sale eligible trade would become the new last sale. IEX may do so either on the day of the trade or at a later date, so as to provide reasonable time for the Exchange to conduct due diligence regarding the trade, including the consideration of input from markets and other market participants. In connection with the proposed policy, IEX shall discourage vendors and other data recipients from using prices to which the Exchange has appended the Aberrant Report Indicator in any calculation of the high, low or last sale price of a security; and will urge vendors to disclose the exclusion from high, low or last sale price data of ay trades with an Aberrant Report Indicator and exclude them from high, low or last sale price information they disseminate and to provide to data users an explanation of the parameters used in the Exchange's aberrant trade policy.\12\ --------------------------------------------------------------------------- \12\ Once its listing program begins, the Exchange will advise each listed company of the aberrant trade policy, including that any trade for which the Aberrant report Indicator is applied will remain a valid trade. --------------------------------------------------------------------------- 2. Statutory Basis IEX believes that the proposed rule change is consistent with the provisions of Section 6(b) \13\ of the Act in general, and furthers the objectives of Section 6(b)(5) of the Act \14\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f. \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, and as described in rule change proposals of NYSE, Nasdaq and other national securities exchanges to adopt a policy on the use of the Aberrant Report Indicator, the Exchange believes that the Aberrant Report Indicator is consistent with the protection of investors and the public interest in that the Exchange will seek to ensure a proper understanding of the Aberrant Report Indicator among securities market participants by: (i) Urging vendors to disclose the exclusion from high, low or last sale price data of any aberrant trades excluded from high, low or last sale price information they disseminate and to provide to data users an explanation of the parameters used in the Exchange's aberrant trade policy; (ii) once the Exchange's listing program begins, informing the affected listed company each time the Exchange or another market appends the Aberrant Report Indicator to an Exchange listed stock; and (iii) reminding the users of the information that these are still valid trades in that they were executed an not unwound as in the case of a clearly erroneous trade. Additionally, the Exchange believes that the proposed rule change is a reasonable means to alert investors and others that the Exchange believes that the trade price for a particular trade executed in its market does not accurately reflect the prevailing market for the security. Further, the Exchange will use the same factors, including objective numerical thresholds in determining whether a trade report is eligible to have an Aberrant Trade Indictor appended to it. As discussed in the Purpose Section and above, other national securities exchanges have adopted substantially similar policies. Accordingly, the proposed rule change does not raise any new or novel issues that have not already been considered by the Commission. B. Self-Regulatory Organization's Statement on Burden on Competition IEX does not believe that the proposed rule change will result in any burden on competition. The proposed rule change is designed to enable the Exchange to apply the Aberrant Report Indicator in a manner consistent with its existing use by other national securities exchanges, thereby increasing transparency regarding trades executed at prices that do not reflect the prevailing market, and not to address any competitive issues. The Exchange will utilize the indicator in a consistent manner with respect to all Members and listed companies. The Exchange thus does not believe the proposal will burden competition because it will provide for consistency between the Exchange's policy related to use of the Aberrant Trade Indicator and those of other national securities exchanges. 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 The Exchange has designated this rule filing as non-controversial under Section 19(b)(3)(A) \15\ of the Act and Rule 19b-4(f)(6) \16\ thereunder. Because the 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 [[Page 36839]] Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A). \16\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\18\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay. The Exchange represents that waiver will allow it to append promptly, without the need to wait for the expiration of the 30-day operative delay period, an Aberrant Report Indicator to trades that occur that do not reflect the prevailing market, thereby avoiding confusion regarding pricing of those trades. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. The Commission notes that IEX has represented that its proposal is substantially similar to the policies of other exchanges \19\ that are currently operative and therefore the proposal does not raise any new or novel issues that have not already been considered by the Commission. Allowing IEX to attach Aberrant Report Indicators will therefore allow IEX to utilize the approach used by other exchanges to flag that information for investors, which should help protect investors by disclosing important information without delay for any such trades that occur on IEX. Accordingly, the Commission hereby waives the 30-day operative delay requirement and designates the proposed rule change operative upon filing.\20\ --------------------------------------------------------------------------- \17\ 17 CFR 240.19b-4(f)(6). \18\ 17 CFR 240.19b-4(f)(6)(iii). \19\ See note 9 supra. \20\ For purposes only of waiving the 30-day operative delay, 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 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) \21\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \21\ 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 Comments Use 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-IEX-2017-24 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-IEX-2017-24. This file number should be included in 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 Section, 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 will also 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-IEX-2017-24 and should be submitted on or before August 28, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-16513 Filed 8-4-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 150 / Monday, August 7, 2017 / Notices 36837
disapprove the proposed rule change Exchange’s Web site at participants so that they may exclude
(File Number SR–FINRA–2017–020). www.iextrading.com, at the principal such trades from relevant pricing
For the Commission, by the Division of office of the Exchange, and at the metrics (e.g., high, low and last sale
Trading and Markets, pursuant to delegated Commission’s Public Reference Room. prices). Accordingly, IEX is proposing to
authority.6 adopt a policy substantially similar to
II. Self-Regulatory Organization’s
Eduardo A. Aleman, the existing policies of such other
Statement of the Purpose of, and the
Assistant Secretary. national securities exchanges as
Statutory Basis for, the Proposed Rule
described below.10
[FR Doc. 2017–16514 Filed 8–4–17; 8:45 am] Change
During the course of surveillance by
BILLING CODE 8011–01–P
In its filing with the Commission, the the Exchange or as a result of
self-regulatory organization included notification by another market, listed
statements concerning the purpose of company,11 or market participant, the
SECURITIES AND EXCHANGE
and basis for the proposed rule change Exchange may become aware of trade
COMMISSION
and discussed any comments it received prices that do not accurately reflect the
[Release No. 34–81278; File No. SR–IEX– on the proposed rule change. The text prevailing market for a security. In such
2017–24] of these statement may be examined at a case, the Exchange will contact the
the places specified in Item IV below. listing exchange (if the Exchange is not
Self-Regulatory Organizations; The self-regulatory organization has the listing exchange) and other markets
Investors Exchange LLC; Notice of prepared summaries, set forth in (in the case of executions that take place
Filing and Immediate Effectiveness of Sections A, B, and C below, of the most across multiple markets) to seek
Proposed Rule Change To Adopt a significant aspects of such statements. consensus as to whether the trade price
Policy Relating to Its Treatment of
A. Self-Regulatory Organization’s is consistent with the prevailing market
Trade Reports That It Determines To
Statement of the Purpose of, and the for the security. If the Exchange
Be Inconsistent With the Prevailing
Statutory Basis for, the Proposed Rule determines that the trade price is
Market
Change inconsistent with the prevailing market
August 1, 2017. for the security after considering the
Pursuant to Section 19(b)(1) 1 of the 1. Purpose factors discussed below, the Exchange
Securities Exchange Act of 1934 (the Trades in listed securities will append an Aberrant Report
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 occasionally occur at prices that deviate Indicator to the trade pursuant to
notice is hereby given that, on July 18, from prevailing market prices and those applicable CTA and UTP procedures.
2017, the Investors Exchange LLC trades sometimes establish a high, low Appending an Aberrant Report Indicator
(‘‘IEX’’ or the ‘‘Exchange’’) filed with the or last sale price for a security that does to the trade will have no effect on the
Securities and Exchange Commission not reflect the true market for the validity of the underlying trade.
(the ‘‘Commission’’) the proposed rule security. The Consolidated Tape IEX currently trades securities on an
change as described in Items I and II Association (‘‘CTA’’) Plan and the unlisted trading privilege (‘‘UTP’’) basis,
below, which Items have been prepared Nasdaq UTP Plan (‘‘UTP Plan’’) each that are listed on other exchanges. IEX
by the self-regulatory organization. The offer participants in such plans with the also intends to become a primary listing
Commission is publishing this notice to discretion to append an Aberrant Report exchange. The proposed policy would
solicit comments on the proposed rule Indicator to a trade report to indicate be applicable to trades that occur on
change from interested persons. that the market believes that the trade IEX, whether traded on a UTP basis or
price of a particular trade executed on listed on IEX.
I. Self-Regulatory Organization’s In making the determination to
the participant’s market does not
Statement of the Terms of Substance of append the Aberrant Report Indicator to
accurately reflect the prevailing market
the Proposed Rule Change a particular trade, the Exchange shall
for the security in question.8 The New
Pursuant to the provisions of Section York Stock Exchange (‘‘NYSE’’), Nasdaq consider all factors related to a trade,
19(b)(1) under the Securities Exchange Stock Market (‘‘Nasdaq’’) and several including, but not limited to, the
Act of 1934 (‘‘Act’’),4 and Rule 19b–4 other national securities exchanges have following:
thereunder,5 Investors Exchange LLC adopted policies related to use of the • Material news released for the
(‘‘IEX’’ or ‘‘Exchange’’) is filing with the Aberrant Report Indicator for equities security;
Commission a proposed rule change to trades that, while not eligible for • Suspicious trading activity;
adopt a policy relating to its treatment cancellation pursuant to applicable • System malfunctions or
of trade reports that it determines to be exchange rules governing clearly disruptions;
inconsistent with the prevailing market. erroneous executions, are determined • Locked or crossed markets;
The Exchange has designated this rule not to accurately reflect the prevailing • A recent trading halt or resumption
change as ‘‘non-controversial’’ under market for the security in question.9 The of trading in the security;
Section 19(b)(3)(A) of the Act 6 and Exchange believes that such policies are • Whether the security is in its initial
provided the Commission with the appropriate in order to identify such public offering;
notice required by Rule 19b–4(f)(6) trades to vendors and market • Volume and volatility for the
thereunder.7 The text of the proposed security;
rule change is available at the 8 The CTA recommends that data recipients
should exclude the price of any trade to which the 10 See note 9 supra.
mstockstill on DSK30JT082PROD with NOTICES
6 17 CFR 200.30–3(a)(31). Aberrant Report Indicator has been appended from 11 On June 17, 2016 the Commission granted IEX’s
1 15 U.S.C. 78s(b)(1). any calculation of the high, low and last sale prices application for registration as a national securities
2 15 U.S.C. 78a. for the security. exchange under Section 6 of the Act including
9 See, e.g., Securities Exchange Act Release No. approval of rules applicable to the qualification,
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(1).
59151 (December 23, 2008), 74 FR 158 (January 2, listing and delisting of companies on the Exchange.
2009) (SR–NASDAQ–2008–100) and Securities (See Securities Exchange Act Release No. 34–78101
5 17 CRF 240.19b–4.
Exchange Act Release No. 58736 (October 6, 2008), (June 17, 2016), 81 FR 41141 (June 23, 2016) (File
6 15 U.S.C. 78s(b)(3)(A).
73 FR 60380 (October 10, 2008) (SR–NYSE–2008– No. 10–222)). The Exchange plans to begin a listing
7 17 CFR 240.19b–4. 91). program in 2017.
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Commission may designate, it has change should be approved or For the Commission, by the Division of
become effective pursuant to Section disapproved. Trading and Markets, pursuant to delegated
19(b)(3)(A) of the Act and Rule 19b– authority.22
4(f)(6) thereunder. IV. Solicitation of Comments Eduardo A. Aleman,
Assistant Secretary.
A proposed rule change filed under Interested persons are invited to
[FR Doc. 2017–16513 Filed 8–4–17; 8:45 am]
Rule 19b–4(f)(6) 17 normally does not submit written data, views and
BILLING CODE 8011–01–P
become operative prior to 30 days after arguments concerning the foregoing,
the date of the filing. However, pursuant including whether the proposed rule
to Rule 19b–4(f)(6)(iii),18 the change is consistent with the Act. SECURITIES AND EXCHANGE
Commission may designate a shorter Comments may be submitted by any of COMMISSION
time if such action is consistent with the the following methods:
protection of investors and the public [Release No. 32769; File No. 812–14720]
interest. The Exchange has asked the Electronic Comments
Commission to waive the 30-day MVC Capital, Inc., et al.; Notice of
• Use the Commission’s Internet Application
operative delay. The Exchange
comment form (http://www.sec.gov/
represents that waiver will allow it to August 1, 2017.
rules/sro.shtml); or
append promptly, without the need to AGENCY: Securities and Exchange
wait for the expiration of the 30-day • Send an email to rule-comments@ Commission (‘‘Commission’’).
operative delay period, an Aberrant sec.gov. Please include File Number SR– ACTION: Notice of application for an
Report Indicator to trades that occur that IEX–2017–24 on the subject line. order under sections 17(d) and 57(i) of
do not reflect the prevailing market, Paper Comments the Investment Company Act of 1940
thereby avoiding confusion regarding (the ‘‘Act’’) and rule 17d–1 under the
pricing of those trades. The Commission • Send paper comments in triplicate Act permitting certain joint transactions
believes that waiving the 30-day to Secretary, Securities and Exchange otherwise prohibited by sections 17(d)
operative delay is consistent with the Commission, 100 F Street NE., and 57(a)(4) of the Act and rule 17d–1
protection of investors and the public Washington, DC 20549–1090. under the Act.
interest. The Commission notes that IEX
has represented that its proposal is All submissions should refer to File SUMMARY OF APPLICATION: Applicants
substantially similar to the policies of Number SR–IEX–2017–24. This file request an order to permit a business
other exchanges 19 that are currently number should be included in the development company (‘‘BDC’’) and
operative and therefore the proposal subject line if email is used. To help the certain closed-end investment
does not raise any new or novel issues Commission process and review your companies to co-invest in portfolio
that have not already been considered comments more efficiently, please use companies with each other and with
by the Commission. Allowing IEX to only one method. The Commission will affiliated investment funds.
attach Aberrant Report Indicators will post all comments on the Commission’s APPLICANTS: MVC Capital, Inc. (‘‘MVC
therefore allow IEX to utilize the Internet Web site (http://www.sec.gov/ Capital’’), TTGA C–I LP Fund, TTGA C–
approach used by other exchanges to rules/sro.shtml). Copies of the I MMF LP Fund and Tokarz Group
flag that information for investors, submission, all subsequent Advisers LLC (‘‘Tokarz’’), on behalf of
which should help protect investors by amendments, all written statements itself and its successors.1
disclosing important information with respect to the proposed rule FILING DATES: The application was filed
without delay for any such trades that change that are filed with the on December 6, 2016, and amended on
occur on IEX. Accordingly, the Commission, and all written April 6, 2017, and June 27, 2017.
Commission hereby waives the 30-day communications relating to the HEARING OR NOTIFICATION OF HEARING: An
operative delay requirement and proposed rule change between the order granting the requested relief will
designates the proposed rule change Commission and any person, other than be issued unless the Commission orders
operative upon filing.20 those that may be withheld from the a hearing. Interested persons may
At any time within 60 days of the public in accordance with the request a hearing by writing to the
filing of the proposed rule change, the provisions of 5 U.S.C. 552, will be Commission’s Secretary and serving
Commission summarily may available for Web site viewing and applicants with a copy of the request,
temporarily suspend such rule change if printing in the Commission’s Public personally or by mail. Hearing requests
it appears to the Commission that such Reference Section, 100 F Street NE., should be received by the Commission
action is necessary or appropriate in the Washington, DC 20549, on official by 5:30 p.m. on August 25, 2017 and
public interest, for the protection of business days between the hours of should be accompanied by proof of
investors, or otherwise in furtherance of 10:00 a.m. and 3:00 p.m. Copies of the service on applicants, in the form of an
the purposes of the Act. If the filing will also be available for affidavit or, for lawyers, a certificate of
Commission takes such action, the service. Pursuant to rule 0–5 under the
inspection and copying at the principal
Commission shall institute proceedings Act, hearing requests should state the
office of the Exchange. All comments
under Section 19(b)(2)(B) 21 of the Act to nature of the writer’s interest, any facts
received will be posted without change; bearing upon the desirability of a
determine whether the proposed rule
the Commission does not edit personal hearing on the matter, the reason for the
mstockstill on DSK30JT082PROD with NOTICES
17 17
identifying information from request, and the issues contested.
CFR 240.19b–4(f)(6).
18 17
submissions. You should submit only Persons who wish to be notified of a
CFR 240.19b–4(f)(6)(iii).
19 See note 9 supra. information that you wish to make
20 For purposes only of waiving the 30-day available publicly. All submissions 22 17 CFR 200.30–3(a)(12).
operative delay, the Commission has considered the should refer to File Number SR–IEX– 1 The term ‘‘successor’’ means an entity that
proposed rule’s impact on efficiency, competition, 2017–24 and should be submitted on or results from a reorganization into another
and capital formation. See 15 U.S.C. 78c(f). jurisdiction or change in the type of business
21 15 U.S.C. 78s(b)(2)(B). before August 28, 2017. organization.
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Document Created: 2017-08-05 02:59:43
Document Modified: 2017-08-05 02:59:43
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