82 FR 40178 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend the Generic Listing Criteria Applicable to Equity Index-Linked Securities
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 163 (August 24, 2017)
Federal Register Volume 82, Issue 163 (August 24, 2017)
| Page Range | 40178-40180 | |
| FR Document | 2017-17920 |
[Federal Register Volume 82, Number 163 (Thursday, August 24, 2017)] [Notices] [Pages 40178-40180] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-17920] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No 34-81442; File No. SR-NYSEArca-2017-54] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend the Generic Listing Criteria Applicable to Equity Index-Linked Securities August 18, 2017. I. Introduction On May 4, 2017, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to amend the generic listing criteria applicable to Equity Index-Linked Securities.\3\ The proposed rule change was published for comment in the Federal Register on May 23, 2017.\4\ On July 6, 2017, pursuant to Section 19(b)(2) of the Act,\5\ the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.\6\ On August 17, 2017, the Exchange filed Amendment No. 1 to the proposed rule change, which replaced and superseded the original proposal in its entirety.\7\ The Commission received [[Page 40179]] no comments on the proposed rule change. The Commission is publishing this notice to solicit comments on Amendment No. 1 from interested persons, and is approving the proposed rule change, as modified by Amendment No. 1, on an accelerated basis. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ Equity Index-Linked Securities are securities that provide for the payment at maturity (or earlier redemption) based on the performance of an underlying index or indexes of equity securities, securities of closed-end management investment companies registered under the Investment Company Act of 1940 and/or Investment Company Units (``Units''). See NYSE Arca Rule 5.2-E(j)(6)(B)(I)(1). \4\ See Securities Exchange Act Release No. 80707 (May 17, 2017), 82 FR 23636. \5\ 15 U.S.C. 78s(b)(2). \6\ See Securities Exchange Act Release No. 81081, 82 FR 32218 (July 12, 2017). \7\ In Amendment No. 1 the Exchange: (1) Revised proposed NYSE Arca Rules-5.2-E(j)(6)(B)(I)(1)(b)(iii) and 5.2- E(j)(6)(B)(I)(2)(a)(i) to provide that the index concentration limit applicable to the five highest dollar-weighted components would apply only to an index with five or more components that are not Derivative Securities Products or Index-Linked Securities (as those terms are defined below) and to provide that these securities would only be excluded from the numerator of the index concentration limit calculation; (2) modified proposed NYSE Arca Rule 5.2- E(j)(6)(B)(I)(1)(a) to specify that Derivative Securities Products and Index-Linked Securities (as those terms are defined below) also include securities listed on another national securities exchange pursuant to substantially equivalent listing rules; and (3) made a technical correction to Rule 5.2-E(j)(6)(B)(I)(1)(b)(iv) to change its reference to ``NYSE Arca Rule 5.3'' to read ``NYSE Arca Rule 5.3-O.'' Amendment No. 1 is available at: https://www.sec.gov/comments/sr-nysearca-2017-54/nysearca201754-2227310-160780.pdf. Amendment No. 1 also reflects numbering changes effected by the recently approved merger of NYSE Arca Equities and NYSE Arca Options rules. See Securities Exchange Act Release No. 81419 (August 17, 2017) (SR-NYSEArca-2017-40). --------------------------------------------------------------------------- II. The Exchange's Description of the Proposed Rule Change, as Modified by Amendment No. 1 The Exchange proposes to amend NYSE Arca Rule 5.2-E(j)(6) to exclude the following types of index components from certain generic listing requirements applicable to an index underlying Equity Index- Linked Securities: (1) Investment Company Units (``Units''); \8\ (2) securities defined in Section 2 of NYSE Arca Rule 8-E (collectively with Units, ``Derivative Securities Products''); \9\ (3) Index-Linked Securities; and (4) securities listed on other national securities exchanges pursuant to rules that are substantially equivalent to NYSE Arca Rule 5.2-E(j)(3), NYSE Arca Rule 5.2-E(j)(6), and Section 2 of NYSE Arca Rule 8-E. Specifically, the Exchange proposes the following: --------------------------------------------------------------------------- \8\ Units are securities that represent an interest in a registered investment company that could be organized as a unit investment trust, an open-end management investment company, or a similar entity, that holds securities comprising, or otherwise based on or representing an interest in, an index or portfolio of securities or securities in another registered investment company that holds such securities. See NYSE Arca Rule-5.2-E(j)(3). \9\ The following securities currently are included in Section 2 of NYSE Arca Rule 8-E: Portfolio Depositary Receipts (Rule 8.100-E); Trust Issued Receipts (Rule 8.200-E); Commodity-Based Trust Shares (Rule 8.201-E); Currency Trust Shares (Rule 8.202-E); Commodity Index Trust Shares (Rule 8.203-E); Commodity Futures Trust Shares (Rule-8.204-E); Partnership Units (Rule 8.300-E); Paired Trust Shares (Rule-8.400-E);Trust Units (Rule 8.500-E); Managed Fund Shares (Rule 8.600-E); and Managed Trust Securities (Rule 8.700-E). ---------------------------------------------------------------------------Currently, for an issue of Equity Index-Linked Securities to qualify for initial listing, each underlying index must have at least ten component securities. The Exchange would modify this requirement to reflect no minimum number of index components if one or more issues of Derivative Securities Products or Index-Linked Securities constitute, at least in part, component securities underlying an issue of Equity Index-Linked Securities.\10\ --------------------------------------------------------------------------- \10\ See proposed NYSE Arca Rule 5.2-E(j)(6)(B)(I)(1)(a). --------------------------------------------------------------------------- Currently, for an issue of Equity Index-Linked Securities to qualify for initial listing, each component security must have a minimum market value of at least $75 million, except that the market value for each of the lowest dollar-weighted component securities in the index that in the aggregate account for no more than 10% of the dollar weight of the index may be at least $50 million. The Exchange proposes to exclude Derivative Securities Products and Index-Linked Securities from those minimum market value requirements, as well as to exclude from the calculation of the aggregate dollar value of the index the market value(s) of all components that are Derivative Securities Products or Index-Linked Securities.\11\ --------------------------------------------------------------------------- \11\ See proposed NYSE Arca Rule 5.2-E(j)(6)(B)(I)(1)(b)(1). --------------------------------------------------------------------------- Currently, for an issue of Equity Index-Linked Securities to qualify for initial listing, component stocks that in the aggregate account for at least 90% of the weight of the underlying index each must have a minimum global monthly trading volume of 1,000,000 shares or minimum global notional volume traded per month of $25,000,000, averaged over the last six months. The Exchange proposes to apply those requirements only to index components that are not Derivative Securities Products or Index-Linked Securities, and would exclude components that are Derivative Securities Products or Index-Linked Securities from the calculation of the index's weight.\12\ --------------------------------------------------------------------------- \12\ See proposed NYSE Arca Rule 5.2-E(j)(6)(B)(I)(1)(b)(2). --------------------------------------------------------------------------- Currently, for an issue of Equity Index-Linked Securities to qualify for initial listing, no component security may represent more than 25% of the dollar weight of the index and the five highest dollar-weighted component securities in the index may not in the aggregate account for more than 50%, or 60% for an index consisting of fewer than 25 component securities, of the dollar weight of the index.\13\ The Exchange proposes to exclude Derivative Securities Products and Index-Linked Securities from these index concentration limits and would exclude Derivative Securities Products and Index- Linked Securities from the dollar value of the index for purposes of calculating the total dollar value of the index components.\14\ --------------------------------------------------------------------------- \13\ Currently, these requirements must also be met whenever the index is rebalanced. See NYSE Arca Rule 5.2-E(j)(6)(B)(I)(2)(a)(i). \14\ See proposed NYSE Arca Rule 5.2-E(j)(6)(B)(I)(1)(b)(3). As discussed above, the Exchange also proposes that the index concentration limit applicable to the five highest dollar-weighted components would apply only to an index with five or more components that are not Derivative Securities Products or Index-Linked Securities. See supra note 7. Further, the Exchange proposes that these proposed index concentration limits be met whenever the index is rebalanced. See proposed NYSE Arca Rule-5.2- E(j)(6)(B)(I)(2)(a)(i). --------------------------------------------------------------------------- Currently, for an issue of Equity Index-Linked Securities to qualify for initial listing, 90% of the underlying index's numerical value, and at least 80% of the total number of component securities, must meet the then current criteria for standardized option trading set forth in NYSE Arca Rule 5.3-O; except that an index will not be subject to this requirement if (1) no underlying component security represents more than 10% of the dollar weight of the index, and (2) the index has a minimum of 20 components. The Exchange proposes to apply this requirement only to index components that are not Derivative Securities Products or Index-Linked Securities and, for purposes of this requirement would exclude all components that are a Derivative Securities Product or Index-Linked Security from the calculations of the index's numerical value, total number of components, and dollar value.\15\ --------------------------------------------------------------------------- \15\ See proposed NYSE Arca Rule 5.2-E(j)(6)(B)(I)(1)(b)(iv). --------------------------------------------------------------------------- Currently, on a continuous basis, component stocks that in the aggregate account for at least 90% of the weight of the index each must have a minimum global monthly trading volume of 500,000 shares, or minimum global notional volume traded per month of $12,500,000, averaged over the last six months. The Exchange proposes to apply those requirements only to index components that are not Derivative Securities Products or Index-Linked Securities, and would exclude components that are Derivative Securities Products or Index-Linked Securities from the calculation of the index's total weight.\16\ --------------------------------------------------------------------------- \16\ See proposed NYSE Arca Rule 5.2-E(j)(6)(B)(I)(2)(a)(ii). --------------------------------------------------------------------------- The Exchange also proposes non-substantive changes to the text of NYSE Arca Rule 5.2-E(j)(6). III. Discussion and Commission's Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national [[Page 40180]] securities exchange.\17\ In particular, the Commission finds that the proposed rule change, as modified by Amendment No. 1 thereto, is consistent with Section 6(b)(5) of the Act,\18\ which requires, among other things, that the Exchange's rules be 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. --------------------------------------------------------------------------- \17\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \18\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In support of its proposal, the Exchange notes that Derivative Securities Products are excluded from consideration when determining whether the components of Units satisfy the applicable listing criteria in NYSE Arca Rule 5.2-E(j)(3),\19\ and both Derivative Securities Products and Index-Linked Securities are excluded from the applicable listing criteria for Managed Fund Shares holding equity securities in Commentary .01 to NYSE Arca Rule 8.600-E.\20\ --------------------------------------------------------------------------- \19\ See Commentary .01 to NYSE Arca Rule 5.2-E(j)(3). See also Securities Exchange Act Release No. 57751 (May 1, 2008), 73 FR 25818 (May 7, 2008) (SR-NYSEArca-2008-29) (approving amendments to the eligibility criteria for components of an index underlying Investment Company Units). \20\ See Commentary .01 to NYSE Arca Rule 8.600-E. See also Securities Exchange Act Release No. 78397 (July 22, 2016), 81 FR 49320 (July 27, 2016) (SR-NYSEArca-2015-110) (approving the adoption of generic listing standards for Managed Fund Shares) (``MFS Order''). --------------------------------------------------------------------------- Specifically, the Exchange states: ``both Derivative Securities Products and Index-Linked Securities are excluded from the applicable listing criteria for Managed Fund Shares holding equity securities in Commentary .01 to Rule 8.600-E.'' \21\ In approving the exclusion of Derivative Securities Products and Index-Linked Securities from certain generic listing requirements applicable to Managed Fund Shares, the Commission stated that such exclusions would not increase the susceptibility of Managed Fund Shares to manipulation because Index- Linked Securities and Derivative Securities Products each: (1) Have asset-exposure concentration limits and requirements promoting price transparency within their own listing standards; (2) are listed and traded on national securities exchanges; and (3) provide trading and price information and other quantitative data for investors and other market participants.\22\ For these same reasons, the Commission believes that excluding Derivative Securities Products and Index-Linked Securities from the same type of generic listing requirements would not increase the susceptibility of Equity Index-Linked Securities to manipulation. --------------------------------------------------------------------------- \21\ Amendment No. 1, supra note 7, at 9, text accompanying n.20. \22\ See MFS Order, supra note 20, at 49325. --------------------------------------------------------------------------- Additionally, the Exchange represents that it has in place surveillance procedures that are adequate to properly monitor trading in Index-Linked Securities in all trading sessions and to deter and detect violations of Exchange rules and applicable federal securities laws. For the foregoing reasons, the Commission finds that the proposed rule change, as modified by Amendment No. 1 thereto, is consistent with Section 6(b)(5) of the Act \23\ and the rules and regulations thereunder applicable to a national securities exchange. --------------------------------------------------------------------------- \23\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- IV. Solicitation of Comments on Amendment No. 1 Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether Amendment No. 1 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-2017-54 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2017-54. 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-2017-54 and should be submitted on or before September 14, 2017. V. Accelerated Approval of the Proposed Rule Change, as Modified by Amendment No. 1 The Commission finds good cause to approve the proposed rule change, as modified by Amendment No. 1, prior to the thirtieth day after the date of publication of Amendment No. 1 in the Federal Register. As noted above, Amendment No. 1 modified proposed NYSE Arca Rules-5.2-E(j)(6)(B)(I)(1)(b)(iii) and 5.2-E(j)(6)(B)(I)(2)(a)(i) to provide that the index concentration limit applicable to the five highest dollar-weighted components would apply only to an index with five or more components that are not Derivative Securities Products or Index-Linked Securities. These provisions are consistent with Commentary .01(a)(1)(C) to NYSE Arca Rule 8.600-E, and therefore the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,\24\ to approve the proposed rule change, as modified by Amendment No. 1, on an accelerated basis. --------------------------------------------------------------------------- \24\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- VI. Conclusion It Is Therefore Ordered, pursuant to Section 19(b)(2) of the Exchange Act,\25\ that the proposed rule change (SR-NYSEArca-2017-54), as modified by Amendment No. 1, be, and it hereby is, approved on an accelerated basis. --------------------------------------------------------------------------- \25\ 15 U.S.C. 78s(b)(2). \26\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\26\ Jill M. Peterson, Assistant Secretary. [FR Doc. 2017-17920 Filed 8-23-17; 8:45 am] BILLING CODE 8011-01-P
![40178 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices
CNS Fails Positions. Therefore, NSCC Paper Comments SECURITIES AND EXCHANGE
believes any burden on competition COMMISSION
imposed by the CNS Fails Charge would • Send paper comments in triplicate
to Secretary, Securities and Exchange [Release No 34–81442; File No. SR–
be necessary and appropriate in NYSEArca–2017–54]
furtherance of the Act in order to limit Commission, 100 F Street NE.,
NSCC’s exposures to the risks being Washington, DC 20549–1090. Self-Regulatory Organizations; NYSE
mitigated by such charge. All submissions should refer to File Arca, Inc.; Notice of Filing of
NSCC does not believe that the Number SR–NSCC–2017–015. This file Amendment No. 1 and Order Granting
proposed rule change to clarify NSCC’s number should be included on the Accelerated Approval of a Proposed
current practices with respect to the subject line if email is used. To help the Rule Change, as Modified by
assessment and collection of the CNS Amendment No. 1, To Amend the
Commission process and review your
Fails Charge would impact Generic Listing Criteria Applicable to
comments more efficiently, please use
competition.16 The proposed rule Equity Index-Linked Securities
only one method. The Commission will
change would increase the transparency
of the Rules regarding this existing post all comments on the Commission’s August 18, 2017.
charge and codify NSCC’s current Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the I. Introduction
practices with respect to the assessment
and imposition of the charge. As such, submission, all subsequent On May 4, 2017, NYSE Arca, Inc.
NSCC believes that this proposed rule amendments, all written statements (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
change would not impact Members or with respect to the proposed rule with the Securities and Exchange
have any impact on competition. change that are filed with the Commission (‘‘Commission’’), pursuant
Commission, and all written to Section 19(b)(1) of the Securities
(C) Clearing Agency’s Statement on communications relating to the Exchange Act of 1934 (‘‘Act’’ or
Comments on the Proposed Rule proposed rule change between the ‘‘Exchange Act’’) 1 and Rule 19b–4
Change Received From Members, thereunder,2 a proposed rule change to
Commission and any person, other than
Participants, or Others amend the generic listing criteria
those that may be withheld from the
Written comments relating to this public in accordance with the applicable to Equity Index-Linked
proposed rule change have not been Securities.3 The proposed rule change
provisions of 5 U.S.C. 552, will be
solicited or received. NSCC will notify was published for comment in the
available for Web site viewing and
the Commission of any written Federal Register on May 23, 2017.4 On
printing in the Commission’s Public
comments received by NSCC. July 6, 2017, pursuant to Section
Reference Room, 100 F Street NE., 19(b)(2) of the Act,5 the Commission
III. Date of Effectiveness of the Washington, DC 20549–1090 on official designated a longer period within which
Proposed Rule Change, and Timing for business days between the hours of to approve the proposed rule change,
Commission Action 10:00 a.m. and 3:00 p.m. Copies of the disapprove the proposed rule change, or
filing also will be available for institute proceedings to determine
Within 45 days of the date of
inspection and copying at the principal whether to disapprove the proposed
publication of this notice in the Federal
office of NSCC and on DTCC’s Web site rule change.6 On August 17, 2017, the
Register or within such longer period
up to 90 days (i) as the Commission may (http://dtcc.com/legal/sec-rule- Exchange filed Amendment No. 1 to the
designate if it finds such longer period filings.aspx). All comments received proposed rule change, which replaced
to be appropriate and publishes its will be posted without change; the and superseded the original proposal in
reasons for so finding or (ii) as to which Commission does not edit personal its entirety.7 The Commission received
the self-regulatory organization identifying information from
1 15 U.S.C. 78s(b)(1).
consents, the Commission will: submissions. You should submit only
2 17 CFR 240.19b–4.
(A) By order approve or disapprove information that you wish to make 3 Equity Index-Linked Securities are securities
such proposed rule change, or available publicly. All submissions that provide for the payment at maturity (or earlier
(B) institute proceedings to determine should refer to File Number SR–NSCC– redemption) based on the performance of an
whether the proposed rule change 2017–015 and should be submitted on underlying index or indexes of equity securities,
securities of closed-end management investment
should be disapproved. or before September 14, 2017. companies registered under the Investment
For the Commission, by the Division of Company Act of 1940 and/or Investment Company
IV. Solicitation of Comments Units (‘‘Units’’). See NYSE Arca Rule 5.2–
Trading and Markets, pursuant to delegated
Interested persons are invited to E(j)(6)(B)(I)(1).
authority.17 4 See Securities Exchange Act Release No. 80707
submit written data, views and Robert W. Errett, (May 17, 2017), 82 FR 23636.
arguments concerning the foregoing, 5 15 U.S.C. 78s(b)(2).
Deputy Secretary.
including whether the proposed rule 6 See Securities Exchange Act Release No. 81081,
change is consistent with the Act. [FR Doc. 2017–17911 Filed 8–23–17; 8:45 am] 82 FR 32218 (July 12, 2017).
Comments may be submitted by any of BILLING CODE 8011–01–P 7 In Amendment No. 1 the Exchange: (1) Revised
the following methods: proposed NYSE Arca Rules-5.2–
E(j)(6)(B)(I)(1)(b)(iii) and 5.2–E(j)(6)(B)(I)(2)(a)(i) to
Electronic Comments provide that the index concentration limit
applicable to the five highest dollar-weighted
• Use the Commission’s Internet components would apply only to an index with five
rmajette on DSKBCKNHB2PROD with NOTICES
comment form (http://www.sec.gov/ or more components that are not Derivative
Securities Products or Index-Linked Securities (as
rules/sro.shtml); or those terms are defined below) and to provide that
• Send an email to rule-comments@ these securities would only be excluded from the
sec.gov. Please include File Number SR– numerator of the index concentration limit
NSCC–2017–015 on the subject line. calculation; (2) modified proposed NYSE Arca Rule
5.2–E(j)(6)(B)(I)(1)(a) to specify that Derivative
Securities Products and Index-Linked Securities (as
16 Id. 17 17 CFR 200.30–3(a)(12). those terms are defined below) also include
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![40180 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices
securities exchange.17 In particular, the and other market participants.22 For public in accordance with the
Commission finds that the proposed these same reasons, the Commission provisions of 5 U.S.C. 552, will be
rule change, as modified by Amendment believes that excluding Derivative available for Web site viewing and
No. 1 thereto, is consistent with Section Securities Products and Index-Linked printing in the Commission’s Public
6(b)(5) of the Act,18 which requires, Securities from the same type of generic Reference Room, 100 F Street NE.,
among other things, that the Exchange’s listing requirements would not increase Washington, DC 20549, on official
rules be designed to prevent fraudulent the susceptibility of Equity Index- business days between the hours of
and manipulative acts and practices, to Linked Securities to manipulation. 10:00 a.m. and 3:00 p.m. Copies of the
promote just and equitable principles of Additionally, the Exchange represents filing also will be available for
trade, to remove impediments to and that it has in place surveillance inspection and copying at the principal
perfect the mechanism of a free and procedures that are adequate to properly office of the Exchange. All comments
open market and a national market monitor trading in Index-Linked received will be posted without change;
system and, in general, to protect Securities in all trading sessions and to the Commission does not edit personal
investors and the public interest. deter and detect violations of Exchange identifying information from
In support of its proposal, the rules and applicable federal securities submissions. You should submit only
Exchange notes that Derivative laws. information that you wish to make
Securities Products are excluded from For the foregoing reasons, the available publicly. All submissions
consideration when determining Commission finds that the proposed should refer to File Number SR–
whether the components of Units satisfy rule change, as modified by Amendment NYSEArca–2017–54 and should be
the applicable listing criteria in NYSE No. 1 thereto, is consistent with Section submitted on or before September 14,
Arca Rule 5.2–E(j)(3),19 and both 6(b)(5) of the Act 23 and the rules and 2017.
Derivative Securities Products and regulations thereunder applicable to a
Index-Linked Securities are excluded national securities exchange. V. Accelerated Approval of the
from the applicable listing criteria for Proposed Rule Change, as Modified by
Managed Fund Shares holding equity IV. Solicitation of Comments on Amendment No. 1
securities in Commentary .01 to NYSE Amendment No. 1
The Commission finds good cause to
Arca Rule 8.600–E.20 Interested persons are invited to approve the proposed rule change, as
Specifically, the Exchange states: submit written data, views, and modified by Amendment No. 1, prior to
‘‘both Derivative Securities Products arguments concerning the foregoing, the thirtieth day after the date of
and Index-Linked Securities are including whether Amendment No. 1 is publication of Amendment No. 1 in the
excluded from the applicable listing consistent with the Act. Comments may Federal Register. As noted above,
criteria for Managed Fund Shares be submitted by any of the following Amendment No. 1 modified proposed
holding equity securities in methods: NYSE Arca Rules-5.2–
Commentary .01 to Rule 8.600–E.’’ 21 In E(j)(6)(B)(I)(1)(b)(iii) and 5.2–
Electronic Comments
approving the exclusion of Derivative E(j)(6)(B)(I)(2)(a)(i) to provide that the
Securities Products and Index-Linked • Use the Commission’s Internet index concentration limit applicable to
Securities from certain generic listing comment form (http://www.sec.gov/ the five highest dollar-weighted
requirements applicable to Managed rules/sro.shtml); or components would apply only to an
Fund Shares, the Commission stated • Send an email to rule-comments@
index with five or more components
that such exclusions would not increase sec.gov. Please include File Number SR–
that are not Derivative Securities
the susceptibility of Managed Fund NYSEArca–2017–54 on the subject line.
Products or Index-Linked Securities.
Shares to manipulation because Index- Paper Comments These provisions are consistent with
Linked Securities and Derivative Commentary .01(a)(1)(C) to NYSE Arca
Securities Products each: (1) Have asset- • Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities Rule 8.600–E, and therefore the
exposure concentration limits and Commission finds good cause, pursuant
requirements promoting price and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090. to Section 19(b)(2) of the Act,24 to
transparency within their own listing approve the proposed rule change, as
standards; (2) are listed and traded on All submissions should refer to File
modified by Amendment No. 1, on an
national securities exchanges; and (3) Number SR–NYSEArca–2017–54. This
accelerated basis.
provide trading and price information file number should be included on the
and other quantitative data for investors subject line if email is used. To help the VI. Conclusion
Commission process and review your
It Is Therefore Ordered, pursuant to
17 In approving this proposed rule change, the comments more efficiently, please use
Section 19(b)(2) of the Exchange Act,25
Commission has considered the proposed rule’s only one method. The Commission will
impact on efficiency, competition, and capital
that the proposed rule change (SR–
post all comments on the Commission’s
formation. See 15 U.S.C. 78c(f). NYSEArca–2017–54), as modified by
Internet Web site (http://www.sec.gov/
18 15 U.S.C. 78f(b)(5). Amendment No. 1, be, and it hereby is,
rules/sro.shtml). Copies of the
19 See Commentary .01 to NYSE Arca Rule 5.2– approved on an accelerated basis.
E(j)(3). See also Securities Exchange Act Release submission, all subsequent
No. 57751 (May 1, 2008), 73 FR 25818 (May 7, amendments, all written statements For the Commission, by the Division of
2008) (SR–NYSEArca–2008–29) (approving with respect to the proposed rule Trading and Markets, pursuant to delegated
amendments to the eligibility criteria for authority.26
components of an index underlying Investment
change that are filed with the
Commission, and all written Jill M. Peterson,
rmajette on DSKBCKNHB2PROD with NOTICES
Company Units).
20 See Commentary .01 to NYSE Arca Rule 8.600– communications relating to the Assistant Secretary.
E. See also Securities Exchange Act Release No. proposed rule change between the [FR Doc. 2017–17920 Filed 8–23–17; 8:45 am]
78397 (July 22, 2016), 81 FR 49320 (July 27, 2016) Commission and any person, other than BILLING CODE 8011–01–P
(SR–NYSEArca–2015–110) (approving the adoption
of generic listing standards for Managed Fund those that may be withheld from the
24 15 U.S.C. 78s(b)(2).
Shares) (‘‘MFS Order’’).
21 Amendment No. 1, supra note 7, at 9, text 22 See MFS Order, supra note 20, at 49325. 25 15 U.S.C. 78s(b)(2).
accompanying n.20. 23 15 U.S.C. 78f(b)(5). 26 17 CFR 200.30–3(a)(12).
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Document Created: 2018-10-24 12:35:54
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