82 FR 39929 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Extend the Implementation Date for Certain Changes to the NYSE Arca Rule 5 and Rule 8 Series

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 161 (August 22, 2017)

Page Range		39929-39930
FR Document		2017-17687
Federal Register, Volume 82 Issue 161 (Tuesday, August 22, 2017)
[Federal Register Volume 82, Number 161 (Tuesday, August 22, 2017)]
[Notices]
[Pages 39929-39930]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-17687]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81411; File No. SR-NYSEArca-2017-84]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Proposed Rule Change To Extend the Implementation Date for Certain 
Changes to the NYSE Arca Rule 5 and Rule 8 Series

August 16, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on August 3, 2017, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the self-regulatory organization. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the date on which certain changes 
to the NYSE Arca Rule 5 and Rule 8 series are implemented. The proposed 
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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On January 6, 2017, the Exchange filed a proposed rule change, as 
subsequently amended by Amendments No. 1 and 2 thereto (as amended, the 
``Proposed Rule Change''), to adopt certain changes to the NYSE Arca 
Rules 5 and 8 series to add additional continued listing standards for 
exchange-traded funds (``ETFs'') as well as clarify the procedures that 
the Exchange will undertake when an ETF is noncompliant with applicable 
rules. Given the scope of the amendments specified in the Proposed Rule 
Change, the Exchange proposed that such amendments not be implemented 
until October 1, 2017. On March 9, 2017, the Commission granted 
accelerated approval of the Proposed Rule Change, including the October 
1, 2017 implementation date.\4\ The Exchange now proposes to extend the 
implementation date of the amendments specified in the Proposed Rule 
Change to July 1, 2018.
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    \4\ See Securities Exchange Act Release No. 80189 (March 9, 
2017), 82 FR 13889 (March 15, 2017) (SR-NYSEArca-2017-01).
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    Since the Proposed Rule Change was approved, the Exchange has 
engaged in extensive conversations with issuers of listed ETFs, 
industry advocacy groups and index providers to discuss the new rule 
requirements and offer guidance on rule interpretation and application. 
As a result of these conversations, ETF issuers have expressed concern 
about their ability to have in place systems and procedures to ensure 
compliance by the current October 1, 2017 implementation date. In 
particular, listed ETF issuers, and industry advocacy groups on their 
behalf, have explained that issuers will require time to design and 
test new compliance systems as well as engage in discussions with 
third-party providers to source and track new data elements required 
for rule compliance.\5\
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    \5\ See, for example, Letter, dated July 11, 2017, from Dorothy 
Donohue, Acting General Counsel, Investment Company Institute to 
Brent J. Fields, Secretary, Securities and Exchange Commission, 
available at https://www.sec.gov/comments/sr-nasdaq-2016-135/nasdaq2016135-1846208-5175.pdf. [sic]
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    The Exchange believes it is appropriate to extend the 
implementation date of the Proposed Rule Change to July 1, 2018 to 
provide listed ETF issuers with the time needed to develop and test 
their compliance procedures. In support of its proposal, the Exchange 
notes that the Proposed Rule Change imposes significant new compliance 
requirements on issuers that they have not been subject to previously. 
To meet these new compliance requirements, issuers must develop 
internal systems as well as coordinate with third-party service 
providers, such as index providers, to

[[Page 39930]]

develop procedures by which they can obtain essential data. Listed 
issuers have informed the Exchange that they are unable to complete 
this extensive project by the pending October 1, 2017 implementation 
date. The Exchange believes that it is critical for listed ETFs issuers 
to have the appropriate procedures and systems in place to monitor and 
evidence ETF compliance with the new continued listing rules before 
such rules are implemented. Therefore, the Exchange proposes to extend 
the implementation date for the Proposed Rule Change until July 1, 
2018.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Sections [sic] 6(b)(5) \7\ of the Act, in particular, in 
that it is designed to promote just and equitable principles of trade, 
to foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, processing information with respect to, 
and facilitating transactions in securities, 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. The Exchange believes that the proposed amendment is 
consistent with the protection of investors because it will enable 
listed issuers to have the systems and procedures needed to monitor and 
evidence compliance with the Proposed Rule Change prior to such rule 
being implemented. Providing listed issuers with additional time to 
ensure that they have adequate compliance systems in place furthers the 
protection of investors and the public interest because it will enhance 
investor confidence that listed issuers are complying with Exchange 
rules.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act, as amended. The Exchange notes 
that the proposed rule change will facilitate listed issuer ability to 
monitor and evidence compliance with approved continued listing rules 
by providing issuers with additional time to develop and test their 
internal systems and procedures prior to the implementation date.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange received a copy of a letter from the Investment 
Company Institute, on behalf of listed ETF issuers, to the Securities 
and Exchange Commission.\8\ As described in Item 3 [sic], above, the 
Investment Company Institute detailed challenges that listed ETF 
issuers are facing in developing compliance systems to address the 
amendments contained in the Proposed Rule Change and have requested 
that the implementation date for such amendments be extended to July 1, 
2018.
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    \8\ See Footnote 5, supra.
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III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be 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 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-NYSEArca-2017-84 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-2017-84. 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 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-NYSEArca-2017-84 and should 
be submitted on or before September 12, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-17687 Filed 8-21-17; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 161 / Tuesday, August 22, 2017 / Notices 39929

Paper Comments SECURITIES AND EXCHANGE No. 1 and 2 thereto (as amended, the
COMMISSION ‘‘Proposed Rule Change’’), to adopt
• Send paper comments in triplicate certain changes to the NYSE Arca Rules
to Secretary, Securities and Exchange [Release No. 34–81411; File No. SR–
NYSEArca–2017–84]
5 and 8 series to add additional
Commission, 100 F Street NE., continued listing standards for
Washington, DC 20549–1090. Self-Regulatory Organizations; NYSE exchange-traded funds (‘‘ETFs’’) as well
All submissions should refer to File Arca, Inc.; Notice of Filing of Proposed as clarify the procedures that the
Number SR–Phlx–2017–67. This file Rule Change To Extend the Exchange will undertake when an ETF
number should be included on the Implementation Date for Certain is noncompliant with applicable rules.
Changes to the NYSE Arca Rule 5 and Given the scope of the amendments
subject line if email is used. To help the
Rule 8 Series specified in the Proposed Rule Change,
Commission process and review your
the Exchange proposed that such
comments more efficiently, please use August 16, 2017. amendments not be implemented until
only one method. The Commission will Pursuant to Section 19(b)(1) 1 of the October 1, 2017. On March 9, 2017, the
post all comments on the Commission’s Securities Exchange Act of 1934 Commission granted accelerated
Internet Web site (http://www.sec.gov/ (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 approval of the Proposed Rule Change,
rules/sro.shtml). Copies of the notice is hereby given that on August 3, including the October 1, 2017
submission, all subsequent 2017, NYSE Arca, Inc. (‘‘Exchange’’ or implementation date.4 The Exchange
amendments, all written statements ‘‘NYSE Arca’’) filed with the Securities now proposes to extend the
with respect to the proposed rule and Exchange Commission implementation date of the amendments
change that are filed with the (‘‘Commission’’) the proposed rule specified in the Proposed Rule Change
Commission, and all written change as described in Items I and II to July 1, 2018.
communications relating to the below, which Items have been prepared Since the Proposed Rule Change was
proposed rule change between the by the self-regulatory organization. The approved, the Exchange has engaged in
Commission and any person, other than Commission is publishing this notice to extensive conversations with issuers of
solicit comments on the proposed rule listed ETFs, industry advocacy groups
those that may be withheld from the
change from interested persons. and index providers to discuss the new
public in accordance with the
provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s rule requirements and offer guidance on
available for Web site viewing and Statement of the Terms of Substance of rule interpretation and application. As a
printing in the Commission’s Public the Proposed Rule Change result of these conversations, ETF
Reference Room, 100 F Street NE., The Exchange proposes to extend the issuers have expressed concern about
Washington, DC 20549, on official date on which certain changes to the their ability to have in place systems
business days between the hours of NYSE Arca Rule 5 and Rule 8 series are and procedures to ensure compliance by
10:00 a.m. and 3:00 p.m. Copies of the implemented. The proposed change is the current October 1, 2017
available on the Exchange’s Web site at implementation date. In particular,
filing also will be available for
www.nyse.com, at the principal office of listed ETF issuers, and industry
inspection and copying at the principal
the Exchange, and at the Commission’s advocacy groups on their behalf, have
office of the Exchange. All comments
Public Reference Room. explained that issuers will require time
received will be posted without change; to design and test new compliance
the Commission does not edit personal II. Self-Regulatory Organization’s systems as well as engage in discussions
identifying information from Statement of the Purpose of, and with third-party providers to source and
submissions. You should submit only Statutory Basis for, the Proposed Rule track new data elements required for
information that you wish to make Change rule compliance.5
available publicly. All submissions In its filing with the Commission, the The Exchange believes it is
should refer to File Number SR–Phlx– self-regulatory organization included appropriate to extend the
2017–67, and should be submitted on or statements concerning the purpose of, implementation date of the Proposed
before September 12, 2017. and basis for, the proposed rule change Rule Change to July 1, 2018 to provide
For the Commission, by the Division of and discussed any comments it received listed ETF issuers with the time needed
Trading and Markets, pursuant to delegated on the proposed rule change. The text to develop and test their compliance
authority.19 of those statements may be examined at procedures. In support of its proposal,
Eduardo A. Aleman, the places specified in Item IV below. the Exchange notes that the Proposed
The Exchange has prepared summaries, Rule Change imposes significant new
Assistant Secretary.
set forth in sections A, B, and C below, compliance requirements on issuers that
[FR Doc. 2017–17685 Filed 8–21–17; 8:45 am] they have not been subject to
of the most significant parts of such
BILLING CODE 8011–01–P
statements. previously. To meet these new
compliance requirements, issuers must
A. Self-Regulatory Organization’s develop internal systems as well as
Statement of the Purpose of, and the coordinate with third-party service
Statutory Basis for, the Proposed Rule providers, such as index providers, to
Change
4 See Securities Exchange Act Release No. 80189
1. Purpose
sradovich on DSK3GMQ082PROD with NOTICES

(March 9, 2017), 82 FR 13889 (March 15, 2017) (SR–
On January 6, 2017, the Exchange NYSEArca–2017–01).
filed a proposed rule change, as 5 See, for example, Letter, dated July 11, 2017,

subsequently amended by Amendments from Dorothy Donohue, Acting General Counsel,
Investment Company Institute to Brent J. Fields,
Secretary, Securities and Exchange Commission,
1 15 U.S.C. 78s(b)(1). available at https://www.sec.gov/comments/sr-
2 15 U.S.C. 78a. nasdaq-2016-135/nasdaq2016135-1846208-
19 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. 5175.pdf. [sic]

VerDate Sep<11>2014 18:00 Aug 21, 2017 Jkt 241001 PO 00000 Frm 00181 Fmt 4703 Sfmt 4703 E:\FR\FM\22AUN1.SGM 22AUN1
39930 Federal Register / Vol. 82, No. 161 / Tuesday, August 22, 2017 / Notices

develop procedures by which they can C. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/
obtain essential data. Listed issuers have Statement on Comments on the rules/sro.shtml). Copies of the
informed the Exchange that they are Proposed Rule Change Received From submission, all subsequent
unable to complete this extensive Members, Participants, or Others amendments, all written statements
project by the pending October 1, 2017 The Exchange received a copy of a with respect to the proposed rule
implementation date. The Exchange letter from the Investment Company change that are filed with the
believes that it is critical for listed ETFs Institute, on behalf of listed ETF issuers, Commission, and all written
issuers to have the appropriate to the Securities and Exchange communications relating to the
procedures and systems in place to Commission.8 As described in Item 3 proposed rule change between the
monitor and evidence ETF compliance [sic], above, the Investment Company Commission and any person, other than
with the new continued listing rules Institute detailed challenges that listed those that may be withheld from the
before such rules are implemented. ETF issuers are facing in developing public in accordance with the
Therefore, the Exchange proposes to compliance systems to address the provisions of 5 U.S.C. 552, will be
extend the implementation date for the amendments contained in the Proposed available for Web site viewing and
Proposed Rule Change until July 1, Rule Change and have requested that printing in the Commission’s Public
2018. the implementation date for such Reference Room, 100 F Street NE.,
amendments be extended to July 1, Washington, DC 20549 on official
2. Statutory Basis business days between the hours of
2018.
The Exchange believes that the 10:00 a.m. and 3:00 p.m. Copies of the
proposed rule change is consistent with III. Date of Effectiveness of the filing also will be available for
Section 6(b) of the Act,6 in general, and Proposed Rule Change and Timing for inspection and copying at the principal
Commission Action office of the Exchange. All comments
furthers the objectives of Sections [sic]
6(b)(5) 7 of the Act, in particular, in that Within 45 days of the date of received will be posted without change;
it is designed to promote just and publication of this notice in the Federal the Commission does not edit personal
equitable principles of trade, to foster Register or within such longer period identifying information from
cooperation and coordination with up to 90 days (i) as the Commission may submissions. You should submit only
persons engaged in regulating, clearing, designate if it finds such longer period information that you wish to make
settling, processing information with to be appropriate and publishes its available publicly. All submissions
respect to, and facilitating transactions reasons for so finding or (ii) as to which should refer to File Number SR–
in securities, to remove impediments to the self-regulatory organization NYSEArca–2017–84 and should be
and perfect the mechanism of a free and consents, the Commission will: submitted on or before September 12,
open market and a national market (A) By order approve or disapprove 2017.
system, and, in general, to protect the proposed rule change, or For the Commission, by the Division of
investors and the public interest. The (B) institute proceedings to determine Trading and Markets, pursuant to delegated
Exchange believes that the proposed whether the proposed rule change authority.9
amendment is consistent with the should be disapproved. Robert W. Errett,
protection of investors because it will IV. Solicitation of Comments Deputy Secretary.
enable listed issuers to have the systems [FR Doc. 2017–17687 Filed 8–21–17; 8:45 am]
Interested persons are invited to
and procedures needed to monitor and BILLING CODE 8011–01–P
submit written data, views, and
evidence compliance with the Proposed
arguments concerning the foregoing,
Rule Change prior to such rule being
including whether the proposed rule SECURITIES AND EXCHANGE
implemented. Providing listed issuers
change is consistent with the Act. COMMISSION
with additional time to ensure that they
Comments may be submitted by any of
have adequate compliance systems in [Release No. 34–81407; File No. SR–
the following methods:
place furthers the protection of investors BatsEDGX–2017–33]
and the public interest because it will Electronic Comments
enhance investor confidence that listed • Use the Commission’s Internet Self-Regulatory Organizations; Bats
issuers are complying with Exchange comment form (http://www.sec.gov/ EDGX Exchange, Inc.; Notice of Filing
rules. and Immediate Effectiveness of a
rules/sro.shtml); or
• Send an email to rule-comments@ Proposed Rule Change to Rule 21.2,
B. Self-Regulatory Organization’s Days and Hours of Business
Statement on Burden on Competition sec.gov. Please include File Number SR–
NYSEArca–2017–84 on the subject line. August 16, 2017.
The Exchange does not believe that Pursuant to Section 19(b)(1) of the
the proposed rule change will impose Paper Comments
Securities Exchange Act of 1934 (the
any burden on competition not • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2
necessary or appropriate in furtherance to Secretary, Securities and Exchange notice is hereby given that on August 2,
of the purposes of the Act, as amended. Commission, 100 F Street NE., 2017, Bats EDGX Exchange, Inc. (the
The Exchange notes that the proposed Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
rule change will facilitate listed issuer All submissions should refer to File Securities and Exchange Commission
ability to monitor and evidence Number SR–NYSEArca–2017–84. This (the ‘‘Commission’’) the proposed rule
compliance with approved continued
sradovich on DSK3GMQ082PROD with NOTICES

file number should be included on the change as described in Items I and II
listing rules by providing issuers with subject line if email is used. To help the below, which Items have been prepared
additional time to develop and test their Commission process and review your by the Exchange. The Exchange has
internal systems and procedures prior to comments more efficiently, please use designated this proposal as a ‘‘non-
the implementation date. only one method. The Commission will
post all comments on the Commission’s 9 17 CFR 200.30–3(a)(12).
6 15 U.S.C. 78f(b). 1 15 U.S.C. 78s(b)(1).
7 15 U.S.C. 78f(b)(5). 8 See Footnote 5, supra. 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 18:00 Aug 21, 2017 Jkt 241001 PO 00000 Frm 00182 Fmt 4703 Sfmt 4703 E:\FR\FM\22AUN1.SGM 22AUN1
Document Created: 2018-10-24 11:57:58
Document Modified: 2018-10-24 11:57:58
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 39929