82 FR 49884 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To List and Trade Shares of The Gold Trust Under NYSE Arca Rule 8.201-E
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 207 (October 27, 2017)
Federal Register Volume 82, Issue 207 (October 27, 2017)
| Page Range | 49884-49886 | |
| FR Document | 2017-23371 |
[Federal Register Volume 82, Number 207 (Friday, October 27, 2017)] [Notices] [Pages 49884-49886] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-23371] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81918; File No. SR-NYSEArca-2017-98] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To List and Trade Shares of The Gold Trust Under NYSE Arca Rule 8.201-E October 23, 2017. I. Introduction On August 30, 2017, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade shares of The Gold Trust under NYSE Arca Rule 8.201-E. The proposed rule change was published for comment in the Federal Register on September 15, 2017.\3\ On September 28, 2017, the Exchange filed Amendment No. 1 to the proposed rule change.\4\ The Commission has not received any comments on the proposed rule change. This order approves the proposed rule change, as modified by Amendment No. 1. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 81568 (Sep. 11, 2017), 82 FR 43417. \4\ Amendment No. 1 to the proposed rule change replaces and supersedes the original filing in its entirety. In Amendment No. 1, the Exchange: (1) Provided additional information regarding the futures exchanges that trade in gold futures contracts and which of those exchanges are members of the Intermarket Surveillance Group (``ISG''); (2) stated that the net asset value (``NAV'') of the Trust will be published by the Sponsor (as defined herein) by 5:30 p.m., Eastern time on each day that the NYSE Arca is open for regular trading and will be posted on the Trust's Web site; (3) clarified that the intraday indicative value (``IIV'') per Share for the Shares will be widely disseminated by one or more major market data vendors at least every 15 seconds during the Exchange's Core Trading Session (as defined in the Exchange's rules; and (4) stated that the Web site for the Trust will provide the two most recent reports to stockholders. Amendment No. 1 also made non-substantive, technical amendments. Amendment No. 1 is available at: https://www.sec.gov/comments/sr-nysearca-2017-98/nysearca201798-2614707-161129.pdf. Amendment No. 1 is not subject to notice and comment because it is a technical amendment that does not materially alter the substance of the proposed rule change or raise any novel regulatory issues. --------------------------------------------------------------------------- II. The Description of the Proposed Rule Change, as Modified by Amendment No. 1 5 --------------------------------------------------------------------------- \5\ A more detailed description of the Trust and the Shares, as well as investment risks, creation and redemption procedures, NAV calculation, availability of information and fees, among other things, is included in the Registration Statement, infra note 7, and in Amendment No. 1, supra note 4. --------------------------------------------------------------------------- The Exchange proposes to list and trade shares (``Shares'') of The Gold Trust (``Trust''), a series of the World Currency Gold Trust (``WCGT''),\6\ under NYSE Arca Rule 8.201-E.\7\ NYSE Arca Rule 8.201-E governs the listing and trading, or trading pursuant to unlisted trading privileges, of Commodity-Based Trust Shares on the Exchange.\8\ --------------------------------------------------------------------------- \6\ According to the Exchange, WCGT is a Delaware statutory trust consisting of multiple series, each of which issues common units of beneficial interest, which represent units of fractional undivided beneficial interest in and ownership of such series. The term of WCGT and each series will be perpetual (unless terminated earlier in certain circumstances). \7\ On August 29, 2017, WCGT submitted to the Commission its draft registration statement on Form S-1 with respect to the Trust (``Registration Statement'') under the Securities Act of 1933 (``1933 Act''). \8\ A ``Commodity-Based Trust Share'' is a security (a) that is issued by a trust that holds a specified commodity deposited with the trust; (b) that is issued by such trust in a specified aggregate minimum number in return for a deposit of a quantity of the underlying commodity; and (c) that, when aggregated in the same specified minimum number, may be redeemed at a holder's request by such trust which will deliver to the redeeming holder the quantity of the underlying commodity. See NYSE Arca Rule 8.201-E(c)(1). --------------------------------------------------------------------------- The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the expenses of the Trust's operations. The Trust will not trade in gold futures, options, or swap contracts on any futures exchange or over the counter. The Trust will not hold or trade in commodity futures contracts, commodity interests, or any other instruments regulated by the Commodity Exchange Act. The Trust will take delivery of physical gold that complies with the London Bullion Market Association (``LBMA'') gold delivery rules. According to the Exchange, the Shares, which are Commodity Based Trust Shares, will represent investors' discrete identifiable and undivided beneficial ownership interest in the commodities deposited into the Trust. The sponsor of the Trust is WGC USA Asset Management Company, LLC (``Sponsor''). The sole trustee of WCGT is Delaware Trust Company. BNY Mellon Asset Servicing, a division of The Bank of New York Mellon (``BNYM''), will be the Trust's administrator and transfer agent. BNYM will serve as the custodian of the Trust's cash, if any. A bank will serve as the custodian of the Trust's gold. III. Discussion and Commission Findings After careful review, the Commission finds that the Exchange's proposed rule change, as modified by Amendment No. 1, to list and trade the Shares is consistent with the Act and the rules and regulations thereunder applicable to a national securities exchange.\9\ In particular, the Commission finds that the proposal, as modified by Amendment No. 1, is consistent with Section 11A(a)(1)(C)(iii) of the Act,\10\ which sets forth Congress' finding that it is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to assure the availability to brokers, dealers, and investors of information with respect to quotations for and transactions in securities. The last-sale price for the Shares will be disseminated over the Consolidated Tape. According to the Exchange, there is a considerable amount of information about gold and gold markets available on public Web sites and through professional and subscription services. Investors may obtain gold pricing information on a 24-hour basis based on the spot price for an ounce of gold from various financial information service providers.\11\ --------------------------------------------------------------------------- \9\ 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). \10\ 15 U.S.C. 78k-1(a)(1)(C)(iii). \11\ The Exchange states that Reuters and Bloomberg, for example, provide at no charge on their Web sites delayed information regarding the spot price of gold and last sale prices of gold futures, as well as information about news and developments in the gold market. Reuters and Bloomberg also offer a professional service to subscribers for a fee that provides information on gold prices directly from market participants. Complete real-time data for gold futures and options prices traded on the COMEX are available by subscription from Reuters and Bloomberg. There are a variety of other public Web sites providing information on gold, ranging from those specializing in precious metals to sites maintained by major newspapers. In addition, the LBMA Gold Price is publicly available at no charge at www.lbma.org.uk. See Amendment No. 1, supra note 4. --------------------------------------------------------------------------- [[Page 49885]] Additionally, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with Section 6(b)(5) of the Exchange Act,\12\ which requires, among other things, that the Exchange's rules be designed to prevent fraudulent and manipulative acts and practices, 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. The Commission notes that the Exchange has surveillance-sharing agreements with significant, regulated markets for trading futures on gold. Specifically, according to the Exchange, (1) the most significant gold futures exchange is COMEX, a subsidiary of New York Mercantile Exchange, Inc., and a subsidiary of the Chicago Mercantile Exchange Group (``CME Group''), and ICE Futures US (``ICE'') also lists gold futures; \13\ and (2) the CME Group and ICE are members of the ISG,\14\ which will allow NYSE Arca to obtain surveillance information from COMEX and ICE. Both COMEX and ICE are regulated by the U.S. Commodity Futures Trading Commission (``CFTC'').\15\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b)(5). \13\ See Amendment No. 1, supra note 4. \14\ See id. \15\ See https://www.theice.com/futures-us/regulation (``ICE Futures U.S. is a Designated Contract Market pursuant to the Commodity Exchange Act and regulated by the CFTC.''); http://www.cmegroup.com/market-regulation/rulebook.html (COMEX is regulated by the CFTC). --------------------------------------------------------------------------- The Commission believes that the proposed rule change, as modified by Amendment No. 1, is reasonably designed to promote fair disclosure of information that may be necessary to price the Shares appropriately. NYSE Arca Rule 8.201-E(e)(2)(v) requires that an IIV (which is referred to in the rule as the ``Indicative Trust Value'') be calculated and disseminated at least every 15 seconds. The IIV will be calculated based on the amount of gold held by the Trust and a price of gold derived from updated bids and offers indicative of the spot price of gold. The Exchange states that the IIV relating to the Shares will be widely disseminated by one or more major market data vendors at least every 15 seconds during the Core Trading Session.\16\ The NAV of the Trust will be published by the Sponsor on each day that the NYSE Arca is open for regular trading and will be posted on the Trust's Web site.\17\ The Trust also will publish the following information on its Web site: (1) The mid-point of the bid-ask price at the close of trading (``Bid/Ask Price''), and a calculation of the premium or discount of such price against the NAV; (2) data in chart format displaying the frequency distribution of discounts and premiums of the Bid/Ask Price against the NAV, within appropriate ranges, for each of the four previous calendar quarters; (3) the Trust's prospectus, as well as the two most recent reports to stockholders; and (4) the last- sale price of the Shares as traded in the U.S. market.\18\ In addition, information regarding market price and trading volume of the Shares will be continually available on a real-time basis throughout the day on brokers' computer screens and other electronic services. Information regarding the previous day's closing price and trading volume information for the Shares will be published daily in the financial section of newspapers. --------------------------------------------------------------------------- \16\ See Amendment No. 1, supra note 4. \17\ See id. \18\ See id. --------------------------------------------------------------------------- The Commission also believes that the proposal, as modified by Amendment No. 1, is reasonably designed to prevent trading when a reasonable degree of transparency cannot be assured. With respect to trading halts, the Exchange may consider all relevant factors in exercising its discretion to halt or suspend trading in the Shares. Trading on the Exchange in the Shares may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in the Shares inadvisable. These may include: (1) The extent to which conditions in the underlying gold market have caused disruptions and/or lack of trading, or (2) whether other unusual conditions or circumstances detrimental to the maintenance of a fair and orderly market are present. In addition, trading in Shares will be subject to trading halts caused by extraordinary market volatility pursuant to the Exchange's ``circuit breaker'' rule.\19\ The Exchange will halt trading in the Shares if the NAV of the Trust is not calculated or disseminated daily.\20\ The Exchange may halt trading during the day in which an interruption occurs to the dissemination of the IIV; if the interruption to the dissemination of the IIV persists past the trading day in which it occurs, the Exchange will halt trading no later than the beginning of the trading day following the interruption.\21\ --------------------------------------------------------------------------- \19\ See NYSE Arca Rule 7.12-E. \20\ See Amendment No. 1, supra note 4. \21\ See id. --------------------------------------------------------------------------- Additionally, the Commission notes that market makers in the Shares would be subject to the requirements of NYSE Arca Rule 8.201-E(g), which allow the Exchange to ensure that they do not use their positions to violate the requirements of Exchange rules or applicable federal securities laws.\22\ --------------------------------------------------------------------------- \22\ Commentary .04 of NYSE Arca Rule 6.3-E requires that an Equity Trading Permit Holder (``ETP Holder'') acting as a registered market maker in the Shares, and its affiliates, establish, maintain, and enforce written policies and procedures reasonably designed to prevent the misuse of any material nonpublic information with respect to such products, any components of the related products, any physical asset or commodity underlying the product, applicable currencies, underlying indexes, related futures or options on futures, and any related derivative instruments. See Amendment No. 1, supra note 4. --------------------------------------------------------------------------- In support of this proposal, the Exchange has made the following additional representations: (1) The Shares will be listed and traded on the Exchange pursuant to the initial and continued listing criteria in NYSE Arca Rule 8.201- E.\23\ --------------------------------------------------------------------------- \23\ See id. --------------------------------------------------------------------------- (2) The Exchange has appropriate rules to facilitate transactions in the Shares during all trading sessions.\24\ --------------------------------------------------------------------------- \24\ See id. --------------------------------------------------------------------------- (3) The Exchange deems the Shares to be equity securities.\25\ --------------------------------------------------------------------------- \25\ See id. The Commission notes that, as a result, trading of the Shares will be subject to the Exchange's existing rules governing the trading of equity securities. --------------------------------------------------------------------------- (4) The Exchange has a general policy prohibiting the distribution of material, non-public information by its employees.\26\ --------------------------------------------------------------------------- \26\ See id. --------------------------------------------------------------------------- (5) Trading in the Shares will be subject to the existing trading surveillances administered by the Exchange, as well as cross-market surveillances administered by the Financial Industry Regulatory Authority (``FINRA'') on behalf of the Exchange, which are designed to detect violations of Exchange rules and applicable federal securities laws, and these procedures are adequate to properly monitor Exchange trading of the Shares in all trading sessions and to deter and detect violations of Exchange rules and federal securities laws applicable to trading on the Exchange.\27\ --------------------------------------------------------------------------- \27\ See id. FINRA conducts cross-market surveillances on behalf of the Exchange pursuant to a regulatory services agreement. The Exchange is responsible for FINRA's performance under this regulatory services agreement. See id. --------------------------------------------------------------------------- [[Page 49886]] (6) The Exchange or FINRA, on behalf of the Exchange, or both, will communicate as needed regarding trading in the Shares with other markets and other entities that are members of the ISG, and the Exchange or FINRA, on behalf of the Exchange, or both, may obtain trading information regarding trading in the Shares from such markets and other entities. In addition, the Exchange may obtain information regarding trading in the Shares from markets and other entities that are members of ISG or with which the Exchange has in place a comprehensive surveillance sharing agreement.\28\ --------------------------------------------------------------------------- \28\ See id. --------------------------------------------------------------------------- (7) Prior to the commencement of trading, the Exchange will inform its ETP Holders in an Information Bulletin of the special characteristics and risks associated with trading the Shares. Specifically, the Information Bulletin will discuss the following: (1) The procedures for purchases and redemptions of Shares in creation units (including noting that Shares are not individually redeemable); (2) NYSE Arca Rule 9.2-E(a), which imposes a duty of due diligence on its ETP Holders to learn the essential facts relating to every customer prior to trading the Shares; (3) how information regarding the IIV is disseminated; (4) the requirement that ETP Holders deliver a prospectus to investors purchasing newly issued Shares prior to or concurrently with the confirmation of a transaction; (5) the possibility that trading spreads and the resulting premium or discount on the Shares may widen as a result of reduced liquidity of gold trading during the Core and Late Trading Sessions after the close of the major world gold markets; and (6) trading information.\29\ --------------------------------------------------------------------------- \29\ See id. --------------------------------------------------------------------------- (8) All statements and representations made in this filing regarding (a) the description of the portfolio or reference assets, (b) limitations on portfolio holdings or reference assets, or (c) the applicability of Exchange listing rules specified in this rule filing shall constitute continued listing requirements for listing the Shares of the Trust on the Exchange.\30\ --------------------------------------------------------------------------- \30\ See id. --------------------------------------------------------------------------- (9) The issuer has represented to the Exchange that it will advise the Exchange of any failure by the Trust to comply with the continued listing requirements and, pursuant to its obligations under Section 19(g)(1) of the Act, the Exchange will monitor for compliance with the continued listing requirements. If the Trust is not in compliance with the applicable listing requirements, the Exchange will commence delisting procedures under NYSE Arca Rule 5.5(m).\31\ --------------------------------------------------------------------------- \31\ See id. --------------------------------------------------------------------------- This approval order is based on all of the Exchange's representations--including those set forth above and in Amendment No. 1--and the Exchange's description of the Trust. For the foregoing reasons, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with Section 6(b)(5) of the Act \32\ and the rules and regulations thereunder applicable to a national securities exchange. --------------------------------------------------------------------------- \32\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act,\33\ that the proposed rule change (SR-NYSEArca-2017-98), as modified by Amendment No. 1 be, and it hereby is, approved. --------------------------------------------------------------------------- \33\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\34\ --------------------------------------------------------------------------- \34\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-23371 Filed 10-26-17; 8:45 am] BILLING CODE 8011-01-P
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of any person concerned; (b) the received any comments on the proposed commodity interests, or any other
proposed transaction is consistent with rule change. This order approves the instruments regulated by the
the policies of each registered proposed rule change, as modified by Commodity Exchange Act. The Trust
investment company involved; and (c) Amendment No. 1. will take delivery of physical gold that
the proposed transaction is consistent complies with the London Bullion
II. The Description of the Proposed
with the general purposes of the Act. Market Association (‘‘LBMA’’) gold
Rule Change, as Modified by
Rule 17d–1(b) under the Act provides delivery rules. According to the
Amendment No. 1 5
that in passing upon an application filed Exchange, the Shares, which are
under the rule, the Commission will The Exchange proposes to list and Commodity Based Trust Shares, will
consider whether the participation of trade shares (‘‘Shares’’) of The Gold represent investors’ discrete identifiable
the registered investment company in a Trust (‘‘Trust’’), a series of the World and undivided beneficial ownership
joint enterprise, joint arrangement or Currency Gold Trust (‘‘WCGT’’),6 under interest in the commodities deposited
profit sharing plan on the basis NYSE Arca Rule 8.201–E.7 NYSE Arca into the Trust.
proposed is consistent with the Rule 8.201–E governs the listing and The sponsor of the Trust is WGC USA
provisions, policies and purposes of the trading, or trading pursuant to unlisted Asset Management Company, LLC
Act and the extent to which such trading privileges, of Commodity-Based (‘‘Sponsor’’). The sole trustee of WCGT
participation is on a basis different from Trust Shares on the Exchange.8 is Delaware Trust Company. BNY
or less advantageous than that of the The investment objective of the Trust Mellon Asset Servicing, a division of
other participants. is for the Shares to reflect the The Bank of New York Mellon
performance of the price of gold bullion, (‘‘BNYM’’), will be the Trust’s
For the Commission, by the Division of less the expenses of the Trust’s administrator and transfer agent. BNYM
Investment Management, under delegated operations. The Trust will not trade in
authority. will serve as the custodian of the Trust’s
gold futures, options, or swap contracts cash, if any. A bank will serve as the
Eduardo A. Aleman, on any futures exchange or over the custodian of the Trust’s gold.
Assistant Secretary. counter. The Trust will not hold or trade
[FR Doc. 2017–23369 Filed 10–26–17; 8:45 am] in commodity futures contracts, III. Discussion and Commission
BILLING CODE 8011–01–P
Findings
(‘‘ISG’’); (2) stated that the net asset value (‘‘NAV’’) After careful review, the Commission
of the Trust will be published by the Sponsor (as finds that the Exchange’s proposed rule
SECURITIES AND EXCHANGE defined herein) by 5:30 p.m., Eastern time on each
day that the NYSE Arca is open for regular trading
change, as modified by Amendment No.
COMMISSION and will be posted on the Trust’s Web site; (3) 1, to list and trade the Shares is
[Release No. 34–81918; File No. SR– clarified that the intraday indicative value (‘‘IIV’’) consistent with the Act and the rules
per Share for the Shares will be widely and regulations thereunder applicable to
NYSEArca–2017–98] disseminated by one or more major market data
vendors at least every 15 seconds during the a national securities exchange.9 In
Self-Regulatory Organizations; NYSE Exchange’s Core Trading Session (as defined in the particular, the Commission finds that
Arca, Inc.; Order Approving a Exchange’s rules; and (4) stated that the Web site the proposal, as modified by
for the Trust will provide the two most recent Amendment No. 1, is consistent with
Proposed Rule Change, as Modified by reports to stockholders. Amendment No. 1 also
Amendment No. 1 Thereto, To List and made non-substantive, technical amendments. Section 11A(a)(1)(C)(iii) of the Act,10
Trade Shares of The Gold Trust Under Amendment No. 1 is available at: https:// which sets forth Congress’ finding that
NYSE Arca Rule 8.201–E www.sec.gov/comments/sr-nysearca-2017-98/ it is in the public interest and
nysearca201798-2614707-161129.pdf. Amendment appropriate for the protection of
October 23, 2017. No. 1 is not subject to notice and comment because
it is a technical amendment that does not materially investors and the maintenance of fair
I. Introduction alter the substance of the proposed rule change or and orderly markets to assure the
raise any novel regulatory issues. availability to brokers, dealers, and
On August 30, 2017, NYSE Arca, Inc. 5 A more detailed description of the Trust and the
investors of information with respect to
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed Shares, as well as investment risks, creation and
quotations for and transactions in
with the Securities and Exchange redemption procedures, NAV calculation,
availability of information and fees, among other securities. The last-sale price for the
Commission (‘‘Commission’’), pursuant things, is included in the Registration Statement, Shares will be disseminated over the
to Section 19(b)(1) of the Securities infra note 7, and in Amendment No. 1, supra note Consolidated Tape. According to the
Exchange Act of 1934 (‘‘Act’’) 1 and Rule 4.
Exchange, there is a considerable
6 According to the Exchange, WCGT is a Delaware
19b–4 thereunder,2 a proposed rule amount of information about gold and
statutory trust consisting of multiple series, each of
change to list and trade shares of The which issues common units of beneficial interest, gold markets available on public Web
Gold Trust under NYSE Arca Rule which represent units of fractional undivided sites and through professional and
8.201–E. The proposed rule change was beneficial interest in and ownership of such series.
subscription services. Investors may
published for comment in the Federal The term of WCGT and each series will be
perpetual (unless terminated earlier in certain obtain gold pricing information on a 24-
Register on September 15, 2017.3 On circumstances). hour basis based on the spot price for an
September 28, 2017, the Exchange filed 7 On August 29, 2017, WCGT submitted to the
ounce of gold from various financial
Amendment No. 1 to the proposed rule Commission its draft registration statement on Form information service providers.11
change.4 The Commission has not S–1 with respect to the Trust (‘‘Registration
Statement’’) under the Securities Act of 1933 (‘‘1933
9 In approving this proposed rule change, the
Act’’).
1 15 U.S.C. 78s(b)(1). Commission has considered the proposed rule’s
asabaliauskas on DSKBBXCHB2PROD with NOTICES
8 A ‘‘Commodity-Based Trust Share’’ is a security
2 17 CFR 240.19b–4. impact on efficiency, competition, and capital
(a) that is issued by a trust that holds a specified
3 See Securities Exchange Act Release No. 81568
commodity deposited with the trust; (b) that is formation. See 15 U.S.C. 78c(f).
(Sep. 11, 2017), 82 FR 43417. issued by such trust in a specified aggregate 10 15 U.S.C. 78k–1(a)(1)(C)(iii).
4 Amendment No. 1 to the proposed rule change minimum number in return for a deposit of a 11 The Exchange states that Reuters and
replaces and supersedes the original filing in its quantity of the underlying commodity; and (c) that, Bloomberg, for example, provide at no charge on
entirety. In Amendment No. 1, the Exchange: (1) when aggregated in the same specified minimum their Web sites delayed information regarding the
Provided additional information regarding the number, may be redeemed at a holder’s request by spot price of gold and last sale prices of gold
futures exchanges that trade in gold futures such trust which will deliver to the redeeming futures, as well as information about news and
contracts and which of those exchanges are holder the quantity of the underlying commodity. developments in the gold market. Reuters and
members of the Intermarket Surveillance Group See NYSE Arca Rule 8.201–E(c)(1). Bloomberg also offer a professional service to
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(6) The Exchange or FINRA, on behalf requirements. If the Trust is not in Act’’), a proposal to adopt AS 3101, The
of the Exchange, or both, will compliance with the applicable listing Auditor’s Report on an Audit of
communicate as needed regarding requirements, the Exchange will Financial Statements When the Auditor
trading in the Shares with other markets commence delisting procedures under Expresses an Unqualified Opinion and
and other entities that are members of NYSE Arca Rule 5.5(m).31 related amendments to other auditing
the ISG, and the Exchange or FINRA, on This approval order is based on all of standards (collectively, the ‘‘Proposed
behalf of the Exchange, or both, may the Exchange’s representations— Rules’’).3 The Proposed Rules were
obtain trading information regarding including those set forth above and in published for comment in the Federal
trading in the Shares from such markets Amendment No. 1—and the Exchange’s Register on July 28, 2017.4 At the time
and other entities. In addition, the description of the Trust. the notice was issued, the Commission
Exchange may obtain information For the foregoing reasons, the extended to October 26, 2017 the date
regarding trading in the Shares from Commission finds that the proposed by which the Commission should take
markets and other entities that are rule change, as modified by Amendment action on the Proposed Rules.5 The
members of ISG or with which the No. 1, is consistent with Section 6(b)(5) Commission received approximately 50
Exchange has in place a comprehensive of the Act 32 and the rules and comment letters in response to the
surveillance sharing agreement.28 regulations thereunder applicable to a notice.6 This order approves the
(7) Prior to the commencement of national securities exchange. Proposed Rules, which we find to be
trading, the Exchange will inform its consistent with the requirements of the
IV. Conclusion Sarbanes-Oxley Act and the securities
ETP Holders in an Information Bulletin
of the special characteristics and risks It is therefore ordered, pursuant to laws and necessary or appropriate in the
associated with trading the Shares. Section 19(b)(2) of the Exchange Act,33 public interest or for the protection of
Specifically, the Information Bulletin that the proposed rule change (SR– investors.
will discuss the following: (1) The NYSEArca–2017–98), as modified by
II. Description of the Proposed Rules
procedures for purchases and Amendment No. 1 be, and it hereby is,
redemptions of Shares in creation units approved. On June 1, 2017, the Board adopted
(including noting that Shares are not AS 3101, The Auditor’s Report on an
For the Commission, by the Division of
individually redeemable); (2) NYSE Trading and Markets, pursuant to delegated
Audit of Financial Statements When the
Arca Rule 9.2–E(a), which imposes a authority.34 Auditor Expresses an Unqualified
duty of due diligence on its ETP Holders Opinion, which replaces portions of AS
Eduardo A. Aleman,
to learn the essential facts relating to 3101, Reports on Audited Financial
Assistant Secretary.
every customer prior to trading the Statements, and re-designates the
[FR Doc. 2017–23371 Filed 10–26–17; 8:45 am] remaining portions of AS 3101 as AS
Shares; (3) how information regarding
the IIV is disseminated; (4) the
BILLING CODE 8011–01–P 3105, Departures from Unqualified
requirement that ETP Holders deliver a Opinions and Other Reporting
prospectus to investors purchasing Circumstances. The Proposed Rules will
SECURITIES AND EXCHANGE require that the auditor provide new
newly issued Shares prior to or COMMISSION
concurrently with the confirmation of a information about the audit that is
transaction; (5) the possibility that [Release No. 34–81916; File No. PCAOB– intended to make the auditor’s report
2017–01]
trading spreads and the resulting 3 The Board originally issued a concept release on
premium or discount on the Shares may Public Company Accounting Oversight these matters in 2011. See Concept Release on
widen as a result of reduced liquidity of Board; Order Granting Approval of Possible Revisions to PCAOB Standards Related to
gold trading during the Core and Late Proposed Rules on the Auditor’s
Reports on Audited Financial Statements and
Trading Sessions after the close of the Related Amendments to PCAOB Standards, PCAOB
Report on an Audit of Financial Release No. 2011–003 (June 21, 2011) (‘‘PCAOB
major world gold markets; and (6) Statements When the Auditor Concept Release’’), available at https://pcaobus.org/
trading information.29 Expresses an Unqualified Opinion, and Rulemaking/Docket034/Concept_Release.pdf. In
(8) All statements and representations Departures From Unqualified Opinions
2013, the Board issued a proposed rule. See
made in this filing regarding (a) the Proposed Auditing Standards—The Auditor’s
and Other Reporting Circumstances, Report on an Audit of Financial Statements When
description of the portfolio or reference and Related Amendments to Auditing the Auditor Expresses an Unqualified Opinion; The
assets, (b) limitations on portfolio Standards Auditor’s Responsibilities Regarding Other
holdings or reference assets, or (c) the Information in Certain Documents Containing
Audited Financial Statements and the Related
applicability of Exchange listing rules October 23, 2017. Auditor’s Report; and Related Amendments to
specified in this rule filing shall PCAOB Standards, PCAOB Release No. 2013–005
constitute continued listing I. Introduction
(August 13, 2013) (‘‘PCAOB Proposal’’), available at
requirements for listing the Shares of On July 19, 2017, the Public Company https://pcaobus.org/Rulemaking/Docket034/
Accounting Oversight Board (the Release_2013-005_ARM.pdf. The Board issued a re-
the Trust on the Exchange.30 proposal in 2016. See Proposed Auditing
(9) The issuer has represented to the ‘‘Board’’ or the ‘‘PCAOB’’) filed with the Standard—The Auditor’s Report on an Audit of
Exchange that it will advise the Securities and Exchange Commission Financial Statements When the Auditor Expresses
Exchange of any failure by the Trust to (the ‘‘Commission’’), pursuant to an Unqualified Opinion and Related Amendments
to PCAOB Standards, PCAOB Release No. 2016–003
comply with the continued listing Section 107(b) 1 of the Sarbanes-Oxley (May 11, 2016) (‘‘PCAOB Re-proposal’’), available
requirements and, pursuant to its Act of 2002 (the ‘‘Sarbanes-Oxley Act’’) at https://pcaobus.org/Rulemaking/Docket034/
asabaliauskas on DSKBBXCHB2PROD with NOTICES
obligations under Section 19(g)(1) of the and Section 19(b) 2 of the Securities Release-2016-003-ARM.pdf.
Act, the Exchange will monitor for Exchange Act of 1934 (the ‘‘Exchange 4 See Release No. 34–81187 (July 21, 2017), 82 FR
compliance with the continued listing 35396 (July 28, 2017) available at https://
31 See
www.sec.gov/rules/pcaob/2017/34-81187.pdf.
id. 5 See id.
32 15 U.S.C. 78f(b)(5).
responsible for FINRA’s performance under this 6 Copies of the comment letters received on the
regulatory services agreement. See id. 33 15 U.S.C. 78s(b)(2).
Commission order noticing the Proposed Rules are
28 See id. 34 17 CFR 200.30–3(a)(12).
available on the Commission’s Web site at https://
29 See id. 1 15 U.S.C. 7217(b).
www.sec.gov/comments/pcaob-2017-01/
30 See id. 2 15 U.S.C. 78s(b). pcaob201701.htm.
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Document Created: 2017-10-27 02:05:58
Document Modified: 2017-10-27 02:05:58
| 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 49884 |
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