82_FR_51660 82 FR 51447 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Exchange Calculation of the Intraday Indicative Value for Specified Exchange-Traded Products

82 FR 51447 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Exchange Calculation of the Intraday Indicative Value for Specified Exchange-Traded Products

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 213 (November 6, 2017)

Page Range51447-51449
FR Document2017-24045

Federal Register, Volume 82 Issue 213 (Monday, November 6, 2017)
[Federal Register Volume 82, Number 213 (Monday, November 6, 2017)]
[Notices]
[Pages 51447-51449]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24045]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81985; File No. SR-NYSEArca-2017-127]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Regarding Exchange 
Calculation of the Intraday Indicative Value for Specified Exchange-
Traded Products

October 31, 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 October 20, 2017, NYSE Arca, Inc. (``Exchange'' or ``NYSE 
Arca'') filed with the Securities and Exchange 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 modify representations made in proposed 
rule changes previously filed with the Securities and Exchange 
Commission (``Commission'') regarding Exchange calculation of the 
``Intraday Indicative Value'' (or comparable intra-day value) for 
specified exchange-traded products. The proposed rule change is 
available on the Exchange's Web site at www.nyse.com, at the principal 
office of

[[Page 51448]]

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
    Exchange rules relating to listing of certain exchange-traded 
products (``ETPs'') require that an ``Intraday Indicative Value'' 
(``IIV'') or comparable intra-day value be disseminated at least every 
15 seconds during the Exchange's Core Trading Session as defined in 
Rule 7.34-E (a) (normally 9:30 a.m. to 4:00 p.m. Eastern Time).\4\ The 
Commission has approved a number of NYSE Arca proposed rule changes 
relating to NYSE Arca's listing and trading of shares of ETPs in which 
the Exchange stated that the Exchange will calculate the IIV for those 
ETPs. These proposed rule changes are listed in Exhibit 3 to this 
filing (``Exhibit 3 Filings'').
---------------------------------------------------------------------------

    \4\ The following Exchange rules require dissemination of an 
intraday indicative value for specified ETPs: Rule 5.2-E(j)(3) 
(Investment Company Units); Rule 5.2-E (j)(6) (Index-Linked 
Securities); Rule 8.100-E (Portfolio Depositary Receipts); Rule 
8.200-E (Trust Issued Receipts); Rule 8.201-E (Commodity-Based Trust 
Shares); Rule 8.202-E (Currency Trust Shares); Rule 8.203-E 
(Commodity Index Trust Shares); Rule 8.204-E (Commodity Futures 
Trust Shares); Rule 8.300-E (Partnership Units); Rule; 8.600-E 
(Managed Fund Shares); and Rule 8.700-E (Managed Trust Securities). 
These rules use different terms to denote the intraday indicative 
value: Intraday Indicative Value (Rules 5.2-E (j)(3), 8.100-E and 
8.700-E); Indicative Value (Rule 8.200-E); Indicative Trust Value 
(Rules 8.201-E; 8.202-E and 8.203-E); Indicative Partnership Value 
(Rule 8.300-E); and Portfolio Indicative Value (Rule 8.600-E). As 
used herein, the term ``IIV'' encompasses the terms Intraday 
Indicative Value, Indicative Value, Indicative Trust Value, 
Indicative Partnership Value, and Portfolio Indicative Value, as 
referenced in Exchange rules. In addition, such term encompasses the 
term ``Indicative Optimized Portfolio Value'' (or ``IOPV'') as used 
in certain ``Exhibit 3 Filings'' (as defined below).
---------------------------------------------------------------------------

    The Exchange proposes to revise the representations made in the 
Exhibit 3 Filings that state that the Exchange will calculate the IIV 
for a particular ETP to state that the IIV will be calculated and 
widely disseminated by one or more major market data vendors. This 
proposed change is consistent with representations the Exchange has 
made in other filing [sic] relating to ETP listings.\5\ The Exchange 
proposes this change so that ETP issuers, who may select and change the 
IIV calculation agent for a particular ETP, may choose to use a 
calculation agent other than the Exchange, provided that such IIV is 
calculated and widely disseminated by one or more major market data 
vendors.\6\ All other representations in the Exhibit 3 Filings 
regarding the IIV remain the same and are not changing as a result of 
this proposed rule change.
---------------------------------------------------------------------------

    \5\ The Exchange's proposed rule changes relating to ETP 
listings generally have stated that the IIV would be calculated and 
widely disseminated by, or widely disseminated by, an independent 
third party, one or more major market data vendors, a third party 
market data provider, or similar entities other than the Exchange. 
See, e.g., Securities Exchange Act Release No. 68667 (January 16, 
2013), 78 FR 4955 (January 23, 2013) (SR-NYSEArca-2012-109) (Order 
Granting Approval of Proposed Rule Change Relating to the Listing 
and Trading of Shares of the U.S. Equity High Volatility Put Write 
Index Fund under NYSE Arca Equities Rule 5.2(j)(3)). In addition, 
the Exchange rules referenced supra at note 4 do not specify that 
the Exchange will calculate the IIV for any ETP.
    \6\ Currently, it is the Exchange's understanding that several 
major market data vendors display and/or make widely available IIVs 
taken from the Consolidated Tape Association or other data feeds.
---------------------------------------------------------------------------

2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under section 6(b)(5) \7\ that an exchange have rules that 
are 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, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposed rule change is designed to perfect the mechanism of a 
free and open market and, in general, to protect investors and the 
public interest. The Exchange's proposal to revise the representations 
made in the Exhibit 3 Filings that state that the Exchange will 
calculate the IIV for a particular ETP to state that the IIV will be 
calculated and widely disseminated by one or more major market data 
vendors is consistent with representations the Exchange has made in 
other filings relating to ETP listings.\8\ The Exchange proposes this 
change so that ETP issuers, who may select and change the IIV 
calculation agent for a particular ETP, may choose to use a calculation 
agent other than the Exchange, provided that such IIV is calculated and 
widely disseminated by one or more major market data vendors. While the 
Exchange rules referenced in note 4 above require that an IIV be 
disseminated at least every 15 seconds during the Exchange's Core 
Trading Session, such rules do not specify that the Exchange will 
calculate the IIV for any ETP.\9\
---------------------------------------------------------------------------

    \8\ See note 5, supra.
    \9\ See note 4, supra.
---------------------------------------------------------------------------

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 that is not necessary or appropriate 
in furtherance of the purpose [sic] of the Act. The Exchange believes 
the proposed rule change will enhance competition among ETP issuers by 
providing each issuer with additional flexibility to change its IIV 
calculation agent promptly based on business needs.

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

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, the proposed rule change has become effective 
pursuant to section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) 
thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Commission believes that waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest because it will allow ETP issuers for the Exhibit 3 Filings to 
choose to use a calculation agent other than the Exchange, provided 
that such IIV is calculated and widely disseminated by

[[Page 51449]]

one or more major market data vendors, without undue delay. Therefore, 
the Commission designates the proposed rule change to be operative upon 
filing.\12\
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    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

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 rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2017-127 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-2017-127. 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. Persons submitting 
comments are cautioned that we do not redact or edit personal 
identifying information from comment submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEArca-2017-127 and should 
be submitted on or before November 27, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24045 Filed 11-3-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                                            Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices                                                   51447

                                               Act, in particular section 17A(b)(3)(F),                 Act 26 and Rule 19b–4(f)(6)                            will be posted without change. Persons
                                               cited above.                                             thereunder.27                                          submitting comments are cautioned that
                                                  Rule 17Ad–22(e)(21) requires, inter                      At any time within 60 days of the                   we do not redact or edit personal
                                               alia, that each covered clearing agency                  filing of the proposed rule change, the                identifying information from comment
                                               establish, implement, maintain and                       Commission summarily may                               submissions. You should submit only
                                               enforce written policies and procedures                  temporarily suspend such rule change if                information that you wish to make
                                               reasonably designed to be efficient and                  it appears to the Commission that such                 available publicly.
                                               effective in meeting the requirements of                 action is necessary or appropriate in the                All submissions should refer to File
                                               its participants and the markets it                      public interest, for the protection of                 Number SR–DTC–2017–020 and should
                                               serves.25 Pursuant to the proposed rule                  investors, or otherwise in furtherance of              be submitted on or before November 27,
                                               change, the Rules would be updated to                    the purposes of the Act.                               2017.
                                               establish a framework for DTC to                         IV. Solicitation of Comments                             For the Commission, by the Division of
                                               provide Acknowledgement Letters to                                                                              Trading and Markets, pursuant to delegated
                                                                                                          Interested persons are invited to                    authority.28
                                               Participants and Pledgees who are DCOs
                                                                                                        submit written data, views and
                                               or FCMs that would allow them to meet                                                                           Eduardo A. Aleman,
                                                                                                        arguments concerning the foregoing,
                                               their requirements under the Customer                                                                           Assistant Secretary.
                                                                                                        including whether the proposed rule
                                               Property Segregation Rules, while                                                                               [FR Doc. 2017–24049 Filed 11–3–17; 8:45 am]
                                                                                                        change is consistent with the Act.
                                               utilizing the efficiency provided by DTC
                                                                                                        Comments may be submitted by any of                    BILLING CODE 8011–01–P
                                               book-entry transfers, consistent with the
                                                                                                        the following methods:
                                               requirements of Rule 17Ad–22(e)(21),
                                               cited above.                                             Electronic Comments                                    SECURITIES AND EXCHANGE
                                               (B) Clearing Agency’s Statement on                         • Use the Commission’s Internet                      COMMISSION
                                               Burden on Competition                                    comment form (http://www.sec.gov/
                                                                                                                                                               [Release No. 34–81985; File No. SR–
                                                                                                        rules/sro.shtml); or
                                                                                                                                                               NYSEArca–2017–127]
                                                 DTC does not believe that the                            • Send an email to rule-comments@
                                               proposed rule change would have any                      sec.gov. Please include File Number SR–                Self-Regulatory Organizations; NYSE
                                               impact, or impose any burden, on                         DTC–2017–020 on the subject line.                      Arca, Inc.; Notice of Filing and
                                               competition because the proposed Rule
                                                                                                        Paper Comments                                         Immediate Effectiveness of Proposed
                                               and its features would be available to all
                                                                                                           • Send paper comments in triplicate                 Rule Change Regarding Exchange
                                               Participants and Pledgees equally on a
                                                                                                        to Secretary, Securities and Exchange                  Calculation of the Intraday Indicative
                                               non-discriminatory basis. Participants
                                                                                                        Commission, 100 F Street NE.,                          Value for Specified Exchange-Traded
                                               and Pledgees will be charged fees
                                                                                                        Washington, DC 20549–1090.                             Products
                                               applicable to the maintenance of
                                               Accounts and transaction fees that are                   All submissions should refer to File                   October 31, 2017.
                                               not different from established published                 Number SR–DTC–2017–020. This file                         Pursuant to section 19(b)(1) 1 of the
                                               fees.                                                    number should be included on the                       Securities Exchange Act of 1934
                                                                                                        subject line if email is used. To help the             (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                               (C) Clearing Agency’s Statement on
                                                                                                        Commission process and review your                     notice is hereby given that, on October
                                               Comments on the Proposed Rule
                                                                                                        comments more efficiently, please use                  20, 2017, NYSE Arca, Inc. (‘‘Exchange’’
                                               Change Received From Members,
                                                                                                        only one method. The Commission will                   or ‘‘NYSE Arca’’) filed with the
                                               Participants, or Others
                                                                                                        post all comments on the Commission’s                  Securities and Exchange Commission
                                                 DTC has not solicited and does not                     Internet Web site (http://www.sec.gov/                 the proposed rule change as described
                                               intend to solicit comments regarding the                 rules/sro.shtml). Copies of the                        in Items I and II below, which Items
                                               proposed rule change. DTC has not                        submission, all subsequent                             have been prepared by the self-
                                               received any unsolicited written                         amendments, all written statements                     regulatory organization. The
                                               comments from interested parties. To                     with respect to the proposed rule                      Commission is publishing this notice to
                                               the extent DTC receives written                          change that are filed with the                         solicit comments on the proposed rule
                                               comments on the proposed rule change,                    Commission, and all written                            change from interested persons.
                                               DTC will forward such comments to the                    communications relating to the
                                               Commission.                                              proposed rule change between the                       I. Self-Regulatory Organization’s
                                                                                                        Commission and any person, other than                  Statement of the Terms of Substance of
                                               III. Date of Effectiveness of the                        those that may be withheld from the                    the Proposed Rule Change
                                               Proposed Rule Change and Timing for                      public in accordance with the                             The Exchange proposes to modify
                                               Commission Action                                        provisions of 5 U.S.C. 552, will be                    representations made in proposed rule
                                                  Because the foregoing proposed rule                   available for Web site viewing and                     changes previously filed with the
                                               change does not:                                         printing in the Commission’s Public                    Securities and Exchange Commission
                                                  (i) Significantly affect the protection               Reference Room, 100 F Street NE.,                      (‘‘Commission’’) regarding Exchange
                                               of investors or the public interest;                     Washington, DC 20549–1090 on official                  calculation of the ‘‘Intraday Indicative
                                                                                                        business days between the hours of                     Value’’ (or comparable intra-day value)
                                                  (ii) impose any significant burden on                 10:00 a.m. and 3:00 p.m. Copies of the                 for specified exchange-traded products.
                                               competition; and
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                                                                                                        filing also will be available for                      The proposed rule change is available
                                                  (iii) become operative for 30 days                    inspection and copying at the principal                on the Exchange’s Web site at
                                               from the date on which it was filed, or                  office of DTC and on DTCC’s Web site                   www.nyse.com, at the principal office of
                                               such shorter time as the Commission                      (http://dtcc.com/legal/sec-rule-
                                               may designate, it has become effective                   filings.aspx). All comments received                     28 17 CFR 200.30–3(a)(12).
                                               pursuant to section 19(b)(3)(A) of the                                                                            1 15 U.S.C. 78s(b)(1).
                                                                                                          26 15   U.S.C. 78s(b)(3)(A).                           2 15 U.S.C. 78a.
                                                 25 17   CFR 240.17Ad–22(e)(21).                          27 17   CFR 240.19b–4(f)(6).                           3 17 CFR 240.19b–4.




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                                               51448                       Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices

                                               the Exchange, and at the Commission’s                   state that the IIV will be calculated and                calculated and widely disseminated by
                                               Public Reference Room.                                  widely disseminated by one or more                       one or more major market data vendors.
                                                                                                       major market data vendors. This                          While the Exchange rules referenced in
                                               II. Self-Regulatory Organization’s
                                                                                                       proposed change is consistent with                       note 4 above require that an IIV be
                                               Statement of the Purpose of, and
                                                                                                       representations the Exchange has made                    disseminated at least every 15 seconds
                                               Statutory Basis for, the Proposed Rule
                                                                                                       in other filing [sic] relating to ETP                    during the Exchange’s Core Trading
                                               Change
                                                                                                       listings.5 The Exchange proposes this                    Session, such rules do not specify that
                                                  In its filing with the Commission, the               change so that ETP issuers, who may                      the Exchange will calculate the IIV for
                                               self-regulatory organization included                   select and change the IIV calculation                    any ETP.9
                                               statements concerning the purpose of,                   agent for a particular ETP, may choose
                                               and basis for, the proposed rule change                                                                          B. Self-Regulatory Organization’s
                                                                                                       to use a calculation agent other than the
                                               and discussed any comments it received                                                                           Statement on Burden on Competition
                                                                                                       Exchange, provided that such IIV is
                                               on the proposed rule change. The text                   calculated and widely disseminated by                      The Exchange does not believe that
                                               of those statements may be examined at                  one or more major market data                            the proposed rule change will impose
                                               the places specified in Item IV below.                  vendors.6 All other representations in                   any burden on competition that is not
                                               The Exchange has prepared summaries,                    the Exhibit 3 Filings regarding the IIV                  necessary or appropriate in furtherance
                                               set forth in sections A, B, and C below,                remain the same and are not changing                     of the purpose [sic] of the Act. The
                                               of the most significant parts of such                   as a result of this proposed rule change.                Exchange believes the proposed rule
                                               statements.                                                                                                      change will enhance competition among
                                                                                                       2. Statutory Basis                                       ETP issuers by providing each issuer
                                               A. Self-Regulatory Organization’s
                                                                                                          The basis under the Act for this                      with additional flexibility to change its
                                               Statement of the Purpose of, and the
                                                                                                       proposed rule change is the requirement                  IIV calculation agent promptly based on
                                               Statutory Basis for, the Proposed Rule
                                                                                                       under section 6(b)(5) 7 that an exchange                 business needs.
                                               Change
                                                                                                       have rules that are designed to prevent
                                                                                                                                                                C. Self-Regulatory Organization’s
                                               1. Purpose                                              fraudulent and manipulative acts and
                                                                                                                                                                Statement on Comments on the
                                                  Exchange rules relating to listing of                practices, to promote just and equitable
                                                                                                                                                                Proposed Rule Change Received From
                                               certain exchange-traded products                        principles of trade, to remove
                                                                                                                                                                Members, Participants, or Others
                                               (‘‘ETPs’’) require that an ‘‘Intraday                   impediments to, and perfect the
                                                                                                       mechanism of a free and open market                        No written comments were solicited
                                               Indicative Value’’ (‘‘IIV’’) or comparable
                                                                                                       and, in general, to protect investors and                or received with respect to the proposed
                                               intra-day value be disseminated at least
                                                                                                       the public interest.                                     rule change.
                                               every 15 seconds during the Exchange’s
                                               Core Trading Session as defined in Rule                    The proposed rule change is designed                  III. Date of Effectiveness of the
                                               7.34–E (a) (normally 9:30 a.m. to 4:00                  to perfect the mechanism of a free and                   Proposed Rule Change and Timing for
                                               p.m. Eastern Time).4 The Commission                     open market and, in general, to protect                  Commission Action
                                               has approved a number of NYSE Arca                      investors and the public interest. The
                                                                                                       Exchange’s proposal to revise the                           Because the proposed rule change
                                               proposed rule changes relating to NYSE                                                                           does not (i) significantly affect the
                                               Arca’s listing and trading of shares of                 representations made in the Exhibit 3
                                                                                                       Filings that state that the Exchange will                protection of investors or the public
                                               ETPs in which the Exchange stated that                                                                           interest; (ii) impose any significant
                                               the Exchange will calculate the IIV for                 calculate the IIV for a particular ETP to
                                                                                                       state that the IIV will be calculated and                burden on competition; and (iii) become
                                               those ETPs. These proposed rule                                                                                  operative for 30 days from the date on
                                               changes are listed in Exhibit 3 to this                 widely disseminated by one or more
                                                                                                       major market data vendors is consistent                  which it was filed, or such shorter time
                                               filing (‘‘Exhibit 3 Filings’’).                                                                                  as the Commission may designate, the
                                                  The Exchange proposes to revise the                  with representations the Exchange has
                                                                                                       made in other filings relating to ETP                    proposed rule change has become
                                               representations made in the Exhibit 3                                                                            effective pursuant to section 19(b)(3)(A)
                                               Filings that state that the Exchange will               listings.8 The Exchange proposes this
                                                                                                       change so that ETP issuers, who may                      of the Act 10 and Rule 19b–4(f)(6)
                                               calculate the IIV for a particular ETP to                                                                        thereunder.11
                                                                                                       select and change the IIV calculation
                                                  4 The following Exchange rules require               agent for a particular ETP, may choose                      The Exchange has asked the
                                               dissemination of an intraday indicative value for       to use a calculation agent other than the                Commission to waive the 30-day
                                               specified ETPs: Rule 5.2–E(j)(3) (Investment            Exchange, provided that such IIV is                      operative delay so that the proposal may
                                               Company Units); Rule 5.2–E (j)(6) (Index-Linked                                                                  become operative immediately upon
                                               Securities); Rule 8.100–E (Portfolio Depositary           5 The Exchange’s proposed rule changes relating        filing. The Commission believes that
                                               Receipts); Rule 8.200–E (Trust Issued Receipts);
                                               Rule 8.201–E (Commodity-Based Trust Shares);            to ETP listings generally have stated that the IIV       waiver of the 30-day operative delay is
                                               Rule 8.202–E (Currency Trust Shares); Rule 8.203–       would be calculated and widely disseminated by,          consistent with the protection of
                                               E (Commodity Index Trust Shares); Rule 8.204–E          or widely disseminated by, an independent third          investors and the public interest
                                               (Commodity Futures Trust Shares); Rule 8.300–E          party, one or more major market data vendors, a
                                                                                                       third party market data provider, or similar entities    because it will allow ETP issuers for the
                                               (Partnership Units); Rule; 8.600–E (Managed Fund
                                               Shares); and Rule 8.700–E (Managed Trust                other than the Exchange. See, e.g., Securities           Exhibit 3 Filings to choose to use a
                                               Securities). These rules use different terms to         Exchange Act Release No. 68667 (January 16, 2013),       calculation agent other than the
                                               denote the intraday indicative value: Intraday          78 FR 4955 (January 23, 2013) (SR–NYSEArca–              Exchange, provided that such IIV is
                                               Indicative Value (Rules 5.2–E (j)(3), 8.100–E and       2012–109) (Order Granting Approval of Proposed
                                                                                                       Rule Change Relating to the Listing and Trading of       calculated and widely disseminated by
                                               8.700–E); Indicative Value (Rule 8.200–E);
                                               Indicative Trust Value (Rules 8.201–E; 8.202–E and      Shares of the U.S. Equity High Volatility Put Write
                                                                                                       Index Fund under NYSE Arca Equities Rule                   9 See  note 4, supra.
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                                               8.203–E); Indicative Partnership Value (Rule 8.300–
                                               E); and Portfolio Indicative Value (Rule 8.600–E).      5.2(j)(3)). In addition, the Exchange rules referenced     10 15  U.S.C. 78s(b)(3)(A).
                                               As used herein, the term ‘‘IIV’’ encompasses the        supra at note 4 do not specify that the Exchange           11 17 CFR 240.19b–4(f)(6). As required under Rule

                                               terms Intraday Indicative Value, Indicative Value,      will calculate the IIV for any ETP.                      19b–4(f)(6)(iii), the Exchange provided the
                                                                                                         6 Currently, it is the Exchange’s understanding
                                               Indicative Trust Value, Indicative Partnership                                                                   Commission with written notice of its intent to file
                                               Value, and Portfolio Indicative Value, as referenced    that several major market data vendors display and/      the proposed rule change, along with a brief
                                               in Exchange rules. In addition, such term               or make widely available IIVs taken from the             description and the text of the proposed rule
                                               encompasses the term ‘‘Indicative Optimized             Consolidated Tape Association or other data feeds.       change, at least five business days prior to the date
                                                                                                         7 15 U.S.C. 78f(b)(5).
                                               Portfolio Value’’ (or ‘‘IOPV’’) as used in certain                                                               of filing of the proposed rule change, or such
                                               ‘‘Exhibit 3 Filings’’ (as defined below).                 8 See note 5, supra.                                   shorter time as designated by the Commission.



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                                                                           Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices                                                       51449

                                               one or more major market data vendors,                  10:00 a.m. and 3:00 p.m. Copies of the                level specified in the Rule have been
                                               without undue delay. Therefore, the                     filing also will be available for                     required to identify themselves to the
                                               Commission designates the proposed                      inspection and copying at the principal               Commission by filing Form 13H through
                                               rule change to be operative upon                        office of the Exchange. All comments                  the Commission’s EDGAR system. The
                                               filing.12                                               received will be posted without change.               Commission has implemented the
                                                  At any time within 60 days of the                    Persons submitting comments are                       broker-dealer recordkeeping, reporting,
                                               filing of such proposed rule change, the                cautioned that we do not redact or edit               and monitoring requirements of the
                                               Commission summarily may                                personal identifying information from                 Rule in phases through a series of
                                               temporarily suspend such rule change if                 comment submissions. You should                       exemptive orders establishing certain
                                               it appears to the Commission that such                  submit only information that you wish                 delayed compliance dates.3 Currently,
                                               action is necessary or appropriate in the               to make available publicly. All                       certain broker-dealers are required to
                                               public interest, for the protection of                  submissions should refer to File                      keep records of and report to the
                                               investors, or otherwise in furtherance of               Number SR–NYSEArca–2017–127 and                       Commission upon request transaction
                                               the purposes of the Act.                                should be submitted on or before                      data for certain of their customers that
                                                                                                       November 27, 2017.                                    are either a large trader or an
                                               IV. Solicitation of Comments
                                                                                                         For the Commission, by the Division of              Unidentified Large Trader.4 Most
                                                 Interested persons are invited to                     Trading and Markets, pursuant to delegated            recently, the Commission provided a
                                               submit written data, views, and                         authority.13                                          temporary exemption from specified
                                               arguments concerning the foregoing,                     Eduardo A. Aleman,                                    provisions of the Rule for certain broker-
                                               including whether the proposed rule                     Assistant Secretary.                                  dealers (‘‘Phase Three’’)—provisions
                                               change is consistent with the Act.                      [FR Doc. 2017–24045 Filed 11–3–17; 8:45 am]           which otherwise would have fully
                                               Comments may be submitted by any of                     BILLING CODE 8011–01–P                                implemented the entirety of the
                                               the following methods:                                                                                        recordkeeping and reporting
                                               Electronic Comments                                                                                           responsibilities of Rule 13h–1 by, in
                                                                                                       SECURITIES AND EXCHANGE                               particular, requiring the capture and
                                                  • Use the Commission’s Internet                      COMMISSION                                            reporting of execution time on trades of
                                               comment form (http://www.sec.gov/                                                                             all large traders—until November 1,
                                               rules/sro.shtml); or                                    [Release No. 34–81993]
                                                                                                                                                             2017.5
                                                  • Send an email to rule-comments@                                                                             The Financial Information Forum
                                                                                                       Order Temporarily Exempting Certain
                                               sec.gov. Please include File Number SR–                                                                       (‘‘FIF’’) and Securities Industry and
                                                                                                       Broker-Dealers From Specified
                                               NYSEArca–2017–127 on the subject                        Provisions of the Recordkeeping,                      Financial Markets Association
                                               line.                                                   Reporting, and Monitoring                             (‘‘SIFMA,’’ and, together with FIF, the
                                               Paper Comments                                          Responsibilities of Rule 13h–1 Under                  ‘‘Industry Organizations’’) have asked
                                                                                                       the Securities Exchange Act of 1934                   the Commission to eliminate Phase
                                                  • Send paper comments in triplicate                                                                        Three of the Rule, which would impose
                                               to Secretary, Securities and Exchange                   October 31, 2017.                                     the remaining requirements on all
                                               Commission, 100 F Street NE.,                                                                                 broker-dealers and all large trader
                                               Washington, DC 20549–1090.                              I. Introduction
                                                                                                                                                             customers.6 Alternatively, the Industry
                                               All submissions should refer to File                       On July 27, 2011, the Securities and
                                               Number SR–NYSEArca–2017–127. This                       Exchange Commission (‘‘Commission’’)                     3 See Securities Exchange Act Release Nos. 66839

                                               file number should be included on the                   adopted Rule 13h–1 (‘‘Rule 13h–1’’ or                 (April 20, 2012), 77 FR 25007 (April 26, 2012)
                                               subject line if email is used. To help the              the ‘‘Rule’’) under the Securities                    (‘‘Phase One Order’’) (establishing Phase One);
                                                                                                       Exchange Act of 1934 (‘‘Exchange                      69281 (April 3, 2013), 78 FR 20960 (April 8, 2013)
                                               Commission process and review your                                                                            (‘‘Phase Two Extension Order’’) (extending the
                                               comments more efficiently, please use                   Act’’) 1 to assist the Commission in both             compliance date for Phase Two to November 1,
                                               only one method. The Commission will                    identifying and obtaining information                 2013); 70150 (August 8, 2013), 78 FR 49556 (August
                                               post all comments on the Commission’s                   on market participants that conduct a                 14, 2013) (‘‘Phases Two and Three Order’’)
                                                                                                       substantial amount of trading activity,               (modifying Phase Two and providing for Phase
                                               Internet Web site (http://www.sec.gov/                                                                        Three); and 76322 (October 30, 2015), 80 FR 68590
                                               rules/sro.shtml). Copies of the                         as measured by volume or market value,                (November 5, 2015) (‘‘Phase Three Extension
                                               submission, all subsequent                              in national market system (‘‘NMS’’)                   Order’’) (extension of compliance date for Phase
                                               amendments, all written statements                      securities (such persons are referred to              Three until November 1, 2017).

                                               with respect to the proposed rule                       as ‘‘large traders’’).2 The Rule requires                4 Rule 13h–1(a)(9) defines ‘‘Unidentified Large

                                                                                                       certain large traders to identify                     Trader’’ as ‘‘each person who has not complied
                                               change that are filed with the                                                                                with the [large trader identification requirements of
                                               Commission, and all written                             themselves to the Commission on Form                  the Rule] that a registered broker-dealer knows or
                                               communications relating to the                          13H. The Rule also requires, among                    has reason to know is a large trader.’’ The Rule
                                               proposed rule change between the                        other things, certain broker-dealers to               provides that, for purposes of determining whether
                                                                                                       maintain records of large trader                      a registered broker-dealer has reason to know that
                                               Commission and any person, other than                                                                         a person is a large trader, ‘‘a registered broker-dealer
                                               those that may be withheld from the                     transaction information and to report                 need take into account only transactions in NMS
                                               public in accordance with the                           such information to the Commission                    securities effected by or through such broker-
                                               provisions of 5 U.S.C. 552, will be                     upon request. Since December 1, 2011,                 dealer.’’ Rule 13h–1(a)(9).
                                                                                                                                                                5 See Phase Three Extension Order, supra note 3
                                               available for Web site viewing and                      persons whose trading activity reached
                                                                                                                                                             (extending the Phase Three compliance date until
                                               printing in the Commission’s Public                     or exceeded the identifying activity
Pmangrum on DSK3GDR082PROD with NOTICES




                                                                                                                                                             November 1, 2017). See also Phases Two and Three
                                               Reference Room, 100 F Street NE.,                                                                             Order, supra note 3, 78 FR at 49560.
                                                                                                         13 17  CFR 200.30–3(a)(12).                            6 See Undated letter from William H. Herbert,
                                               Washington, DC 20549 on official                          1 17  CFR 240.13h–1.                                Managing Director, FIF, to Heather Seidel, Acting
                                               business days between the hours of                         2 See Securities Exchange Act Release No. 64976    Director, Division of Trading and Markets
                                                                                                       (July 27, 2011), 76 FR 46960 (August 3, 2011)         (‘‘Division’’), Commission (‘‘FIF I’’), available at
                                                 12 For purposes only of waiving the 30-day            (‘‘Large Trader Adopting Release’’). The effective    https://www.sec.gov/comments/s7-10-10/s71010-
                                               operative delay, the Commission has considered the      date of Rule 13h–1 was October 3, 2011. See also      1558852-131535.pdf; Letter from Thomas F. Price,
                                               proposed rule’s impact on efficiency, competition,      Exchange Act Rule 600(b)(46) of Regulation NMS        Managing Director, Operations, Technology, and
                                               and capital formation. See 15 U.S.C. 78c(f).            (defining ‘‘NMS security’’).                                                                        Continued




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Document Created: 2017-11-07 10:30:29
Document Modified: 2017-11-07 10:30:29
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 51447 

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