82 FR 51455 - Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt New Rule 6.210 Related to Ex-Dates for Securities Listed or Traded on the Exchange
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 213 (November 6, 2017)
Federal Register Volume 82, Issue 213 (November 6, 2017)
| Page Range | 51455-51457 | |
| FR Document | 2017-24048 |
[Federal Register Volume 82, Number 213 (Monday, November 6, 2017)] [Notices] [Pages 51455-51457] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-24048] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81988; File No. SR-IEX-2017-38] Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt New Rule 6.210 Related to Ex-Dates for Securities Listed or Traded on the Exchange 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 27, 2017, the Investors Exchange LLC (``IEX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Pursuant to the provisions of Section 19(b)(1) under the Securities Exchange Act of 1934 (``Act''),\4\ and Rule 19b-4 thereunder,\5\ Investors Exchange LLC (``IEX'' or ``Exchange'') is filing with the Commission a proposed rule change to adopt new Rule 6.210 (Ex-Dividend or Ex-Right Dates) related to ex-dates for securities listed or traded on the Exchange. The Exchange has designated this proposal as ``non- controversial'' and provided the Commission with the notice required by Rule 19b-4(f)(6)(iii) under the Act.\6\ --------------------------------------------------------------------------- \4\ 15 U.S.C. 78s(b)(1). \5\ 17 CRF 240.19b-4. \6\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.iextrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. 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 these statement may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose On June 17, 2016 the Commission granted IEX's application for registration as a national securities exchange under Section 6 of the Act including approval of rules applicable to the qualification, listing and delisting of companies on the Exchange. The Exchange plans to begin a listing program in early 2018 and is proposing to adopt Rule 6.210 related to ex-dates for securities listed on IEX. IEX Rule 2.160(c)(4) requires in substance that an Exchange Member must be a Member of a registered clearing agency registered with the Commission pursuant to Section 17A of the Act or clear transactions executed on the Exchange through another Member that is a Member of a registered clearing agency. In addition, IEX Rule 6.110(a) provides that every Exchange Member who is a Member of a registered clearing agency shall implement comparison and settlement procedures under the rules of such entity. Further, IEX Rule 11.250(a) provides that the Exchange maintains connectivity and access to the Universal Trade Capture of the National Securities Clearing Corporation (``NSCC'') for the transmission of executed transactions. Pursuant to these provisions, all IEX Members are either Members of the NSCC or clear transactions executed on the Exchange through another Member that is a Member of NSCC. Thus, IEX Members must comply with NSCC comparison and settlement procedures for all transactions executed on the Exchange. NSCC and other listing exchanges have rules related to securities settlement which specify the requirements and process for designation of so-called ``ex-dates'' in the event that the issuer of a security enters into certain types of corporate actions, including declaration of a dividend, and issuance of rights or warrants (i.e., the corporate action consideration).\7\ Generally, an issuer of securities will establish a record date to determine which security holders are entitled to the corporate action [[Page 51456]] consideration--security holders of record on the record date are entitled to the corporate action consideration. Because virtually all securities transactions now settle on the second business day after trade date (``T+2'') pursuant to Rule 15c6-1 under the Act,\8\ a purchaser of a security on the business day prior to the record date will not be the security holder of record on the record date. For example, if the record date for XYZ's issuance of a dividend is December 19, 2017, a purchaser on December 18, 2017 will not be the holder or record until December 20, 2017. The purchaser will not be the holder of record on December 19, 2017 and therefore will not be entitled to the dividend. --------------------------------------------------------------------------- \7\ See, e.g., NYSE Arca Equities Rule 7.4. \8\ The Commission recently adopted amendments to Rule 15c6-1(a) under the Act to shorten the standard, regular-way settlement cycle from T+3 to T+2 or the second business day after trade date. See, Securities Exchange Act Release No. 34-80295 (March 22, 2016), 82 FR 15564 (March 29, 2017) (S7-22-16). The compliance date for the amendments was September 5, 2017. --------------------------------------------------------------------------- Thus, to provide certainty as to which security holder will receive the corporate action consideration it is necessary to establish ``ex- dates'' that denote the date on and after which a security will no longer trade with the corporate action consideration. Most listing exchanges, as well as the Financial Industry Regulatory Authority (``FINRA'') have such rules, which specify that generally a security will trade ``ex'' two [sic] business days [sic] prior to the record date. In the example above, XYZ would trade ``ex-dividend'' beginning on December 18, 2017. Accordingly, in connection with the planned launch of its listing program, the Exchange proposes to adopt Rule 6.210 to specify when transactions in securities traded ``regular'' shall be ``ex-dividend'' or ``ex-rights'' as the case may be. As proposed, Rule 6.210 provides that transactions in securities traded ``regular'' shall be ``ex- dividend'' or ``ex-rights'' as the case may be, on the business day preceding the record date fixed by the company or the date of the closing of transfer books, except when the Board of Directors rules otherwise.\9\ Should such record date or such closing of transfer books occur upon a day other than a business day Rule 6.210 shall apply for the second preceding business day. --------------------------------------------------------------------------- \9\ Exceptions would be expected to occur in circumstances where the listed company's corporate action consideration is relatively large (typically 25% or greater than the value of the security) or definitive information is not received by the Exchange sufficiently in advance of the record date, as required by IEX Rule 14.207(e)(6), to permit the designation of an ``ex-dividend'' or ``ex-rights'' date in accordance with Rule 6.210. In such cases, the ex-date would generally be on the first business day which is practical given the relevant circumstances. --------------------------------------------------------------------------- As proposed, Rule 6.210 is substantially identical to NYSE Arca Rule 7.4-E with only a minor difference in that proposed Rule 6.210 refers to ``securities'' rather than ``stocks'' to be inclusive of listed securities that are not strictly speaking characterized as stocks (e.g., rights and warrants). In connection with their ``ex-date'' rules, other listing exchanges disseminate relevant information regarding such corporate actions by their listed companies to market participants.\10\ Corporate action information regarding IEX listed companies will also be posted on the IEX Web site for viewing and download, without charge. --------------------------------------------------------------------------- \10\ See, http://www.nyxdata.com/Data-Products/NYSE-Corporate-Actions?rfrby=sum# describing the NYSE Group Corporate Actions package of reports sold by NYSE Group regarding corporate actions for all equities listed on NYSE, NYSE MKT and NYSE Arca. See also, http://www.nasdaqtrader.com/Trader.aspx?id=dailylistpd describing the Nasdaq Daily List sold by Nasdaq that provides certain corporate action data for Nasdaq listed securities. See also, BAT BZX (``BATS'') Exchange corporate action reports available without charge at: https://www.bats.com/us/equities/market_statistics/corporate_action/. --------------------------------------------------------------------------- 2. Statutory Basis IEX believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\11\ in general and furthers the objectives of Section 6(b)(5) \12\ of the Act in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Exchange believes that the proposed rule change supports these objectives because it is designed to enable the Exchange to provide clarity to market participants on applicable ``ex-dates'' for securities listed on IEX in connection with corporate actions involving consideration to be paid or distributed to security holders. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f. \12\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Further, the Exchange believes that the proposed rule change is consistent with the protection of investors and the public interest because it provides authority to the Exchange to determine ex-dates in circumstances warranting a different ex-date than the business day preceding the record date fixed by the company or the date of closing of transfer books. Finally, the Exchange believes that the proposed rule change will serve to promote clarity and consistency among market participants thereby facilitating investor protection and the public interest. B. Self-Regulatory Organization's Statement on Burden on Competition IEX does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. The proposed rule change is not designed to address any competitive issues but rather to provide for the appropriate determination and dissemination of ex- dates, to provide certainty as to which security holder will receive the corporate action consideration. The Exchange also believes that the proposed rule change will serve to promote clarity and consistency, as noted in the Statutory Basis section, thereby reducing burdens on competition and facilitating investor protection. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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 if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's intent to file the proposed rule change, along with a brief description and 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 satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission may designate a shorter time if such action is consistent with the protection [[Page 51457]] of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay. The Commission believes that waiver of the operative delay is consistent with the protection of investors and the public interest because the Exchange's proposed rule change is substantially similar to a provision to another self- regulatory organization's rules,\17\ and the Exchange's proposal does not raise any new or novel issues. Accordingly, the Commission hereby waives the 30-day operative delay requirement and designates the proposed rule change as operative upon filing.\18\ --------------------------------------------------------------------------- \15\ 17 CFR 240.19b-4(f)(6). \16\ 17 CFR 240.19b-4(f)(6)(iii). \17\ See NYSE Arca Rule 7.4-E. \18\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-IEX-2017-38 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-IEX-2017-38. 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-IEX-2017-38, and should be submitted on or before November 27, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-24048 Filed 11-3-17; 8:45 am] BILLING CODE 8011-01-P
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Paper Comments SECURITIES AND EXCHANGE of these statement may be examined at
COMMISSION the places specified in Item IV below.
• Send paper comments in triplicate The self-regulatory organization has
to Secretary, Securities and Exchange [Release No. 34–81988; File No. SR–IEX–
prepared summaries, set forth in
Commission, 100 F Street NE., 2017–38]
Sections A, B, and C below, of the most
Washington, DC 20549–1090. Self-Regulatory Organizations; significant aspects of such statements.
All submissions should refer to File Investors Exchange LLC; Notice of A. Self-Regulatory Organization’s
Number SR–ISE–2017–96. This file Filing and Immediate Effectiveness of Statement of the Purpose of, and the
number should be included on the Proposed Rule Change To Adopt New Statutory Basis for, the Proposed Rule
subject line if email is used. To help the Rule 6.210 Related to Ex-Dates for Change
Commission process and review your Securities Listed or Traded on the
Exchange 1. Purpose
comments more efficiently, please use
only one method. The Commission will On June 17, 2016 the Commission
October 31, 2017.
post all comments on the Commission’s granted IEX’s application for registration
Pursuant to Section 19(b)(1) 1 of the as a national securities exchange under
Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934
rules/sro.shtml). Copies of the Section 6 of the Act including approval
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3 of rules applicable to the qualification,
submission, all subsequent notice is hereby given that, on October listing and delisting of companies on
amendments, all written statements 27, 2017, the Investors Exchange LLC the Exchange. The Exchange plans to
with respect to the proposed rule (‘‘IEX’’ or ‘‘Exchange’’) filed with the begin a listing program in early 2018
change that are filed with the Securities and Exchange Commission and is proposing to adopt Rule 6.210
Commission, and all written (‘‘Commission’’) the proposed rule related to ex-dates for securities listed
communications relating to the change as described in Items I and II on IEX.
proposed rule change between the below, which Items have been prepared IEX Rule 2.160(c)(4) requires in
Commission and any person, other than by the self-regulatory organization. The substance that an Exchange Member
those that may be withheld from the Commission is publishing this notice to must be a Member of a registered
public in accordance with the solicit comments on the proposed rule clearing agency registered with the
provisions of 5 U.S.C. 552, will be change from interested persons. Commission pursuant to Section 17A of
available for Web site viewing and I. Self-Regulatory Organization’s the Act or clear transactions executed
printing in the Commission’s Public Statement of the Terms of Substance of on the Exchange through another
Reference Room, 100 F Street NE., the Proposed Rule Change Member that is a Member of a registered
Washington, DC 20549 on official clearing agency. In addition, IEX Rule
Pursuant to the provisions of Section 6.110(a) provides that every Exchange
business days between the hours of
19(b)(1) under the Securities Exchange Member who is a Member of a registered
10:00 a.m. and 3:00 p.m. Copies of the Act of 1934 (‘‘Act’’),4 and Rule 19b–4
filing also will be available for clearing agency shall implement
thereunder,5 Investors Exchange LLC comparison and settlement procedures
inspection and copying at the principal (‘‘IEX’’ or ‘‘Exchange’’) is filing with the
office of the Exchange. All comments under the rules of such entity. Further,
Commission a proposed rule change to IEX Rule 11.250(a) provides that the
received will be posted without change. adopt new Rule 6.210 (Ex-Dividend or
Persons submitting comments are Exchange maintains connectivity and
Ex-Right Dates) related to ex-dates for access to the Universal Trade Capture of
cautioned that we do not redact or edit securities listed or traded on the
personal identifying information from the National Securities Clearing
Exchange. The Exchange has designated Corporation (‘‘NSCC’’) for the
comment submissions. You should this proposal as ‘‘non-controversial’’ transmission of executed transactions.
submit only information that you wish and provided the Commission with the Pursuant to these provisions, all IEX
to make available publicly. All notice required by Rule 19b–4(f)(6)(iii) Members are either Members of the
submissions should refer to File under the Act.6 NSCC or clear transactions executed on
Number SR–ISE–2017–96, and should The text of the proposed rule change the Exchange through another Member
be submitted on or before November 27, is available at the Exchange’s Web site that is a Member of NSCC. Thus, IEX
2017. at www.iextrading.com, at the principal Members must comply with NSCC
office of the Exchange, and at the comparison and settlement procedures
For the Commission, by the Division of
Commission’s Public Reference Room. for all transactions executed on the
Trading and Markets, pursuant to delegated
authority.11 II. Self-Regulatory Organization’s Exchange.
Eduardo A. Aleman, Statement of the Purpose of, and NSCC and other listing exchanges
Assistant Secretary. Statutory Basis for, the Proposed Rule have rules related to securities
Change settlement which specify the
[FR Doc. 2017–24050 Filed 11–3–17; 8:45 am]
requirements and process for
BILLING CODE 8011–01–P In its filing with the Commission, the
designation of so-called ‘‘ex-dates’’ in
self-regulatory organization included
the event that the issuer of a security
statements concerning the purpose of
enters into certain types of corporate
and basis for the proposed rule change
actions, including declaration of a
and discussed any comments it received
Pmangrum on DSK3GDR082PROD with NOTICES
dividend, and issuance of rights or
on the proposed rule change. The text
warrants (i.e., the corporate action
1 15 U.S.C. 78s(b)(1).
consideration).7 Generally, an issuer of
2 15 U.S.C. 78a. securities will establish a record date to
3 17 CFR 240.19b–4. determine which security holders are
4 15 U.S.C. 78s(b)(1). entitled to the corporate action
5 17 CRF 240.19b–4.
11 17 CFR 200.30–3(a)(12). 6 17 CFR 240.19b–4(f)(6)(iii). 7 See, e.g., NYSE Arca Equities Rule 7.4.
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consideration—security holders of apply for the second preceding business promote clarity and consistency among
record on the record date are entitled to day. market participants thereby facilitating
the corporate action consideration. As proposed, Rule 6.210 is investor protection and the public
Because virtually all securities substantially identical to NYSE Arca interest.
transactions now settle on the second Rule 7.4–E with only a minor difference
in that proposed Rule 6.210 refers to B. Self-Regulatory Organization’s
business day after trade date (‘‘T+2’’) Statement on Burden on Competition
pursuant to Rule 15c6–1 under the Act,8 ‘‘securities’’ rather than ‘‘stocks’’ to be
a purchaser of a security on the business inclusive of listed securities that are not IEX does not believe that the
day prior to the record date will not be strictly speaking characterized as stocks proposed rule change will result in any
the security holder of record on the (e.g., rights and warrants). burden on competition that is not
record date. For example, if the record In connection with their ‘‘ex-date’’ necessary or appropriate in furtherance
date for XYZ’s issuance of a dividend is rules, other listing exchanges of the purposes of the Act, as amended.
December 19, 2017, a purchaser on disseminate relevant information The proposed rule change is not
December 18, 2017 will not be the regarding such corporate actions by designed to address any competitive
holder or record until December 20, their listed companies to market issues but rather to provide for the
2017. The purchaser will not be the participants.10 Corporate action appropriate determination and
holder of record on December 19, 2017 information regarding IEX listed dissemination of ex-dates, to provide
and therefore will not be entitled to the companies will also be posted on the certainty as to which security holder
dividend. IEX Web site for viewing and download, will receive the corporate action
Thus, to provide certainty as to which without charge. consideration. The Exchange also
security holder will receive the believes that the proposed rule change
2. Statutory Basis
corporate action consideration it is will serve to promote clarity and
IEX believes that the proposed rule consistency, as noted in the Statutory
necessary to establish ‘‘ex-dates’’ that
change is consistent with the provisions Basis section, thereby reducing burdens
denote the date on and after which a
of Section 6 of the Act,11 in general and on competition and facilitating investor
security will no longer trade with the furthers the objectives of Section
corporate action consideration. Most protection.
6(b)(5) 12 of the Act in particular, in that
listing exchanges, as well as the it is designed to prevent fraudulent and C. Self-Regulatory Organization’s
Financial Industry Regulatory Authority manipulative acts and practices, to Statement on Comments on the
(‘‘FINRA’’) have such rules, which promote just and equitable principles of Proposed Rule Change Received From
specify that generally a security will trade, to remove impediments to and Members, Participants, or Others
trade ‘‘ex’’ two [sic] business days [sic] perfect the mechanism of a free and Written comments were neither
prior to the record date. In the example open market and a national market solicited nor received.
above, XYZ would trade ‘‘ex-dividend’’ system, and, in general, to protect
beginning on December 18, 2017. investors and the public interest. The III. Date of Effectiveness of the
Accordingly, in connection with the Exchange believes that the proposed Proposed Rule Change and Timing for
planned launch of its listing program, rule change supports these objectives Commission Action
the Exchange proposes to adopt Rule because it is designed to enable the Because the proposed rule change
6.210 to specify when transactions in Exchange to provide clarity to market does not (i) significantly affect the
securities traded ‘‘regular’’ shall be ‘‘ex- participants on applicable ‘‘ex-dates’’ protection of investors or the public
dividend’’ or ‘‘ex-rights’’ as the case for securities listed on IEX in interest; (ii) impose any significant
may be. As proposed, Rule 6.210 connection with corporate actions burden on competition; and (iii) become
provides that transactions in securities involving consideration to be paid or operative for 30 days from the date on
traded ‘‘regular’’ shall be ‘‘ex-dividend’’ distributed to security holders. which it was filed, or such shorter time
or ‘‘ex-rights’’ as the case may be, on the Further, the Exchange believes that as the Commission may designate if
business day preceding the record date the proposed rule change is consistent consistent with the protection of
fixed by the company or the date of the with the protection of investors and the investors and the public interest, the
closing of transfer books, except when public interest because it provides proposed rule change has become
the Board of Directors rules otherwise.9 authority to the Exchange to determine effective pursuant to Section 19(b)(3)(A)
Should such record date or such closing ex-dates in circumstances warranting a of the Act 13 and Rule 19b–4(f)(6)
of transfer books occur upon a day other different ex-date than the business day thereunder.14
than a business day Rule 6.210 shall preceding the record date fixed by the A proposed rule change filed under
company or the date of closing of Rule 19b–4(f)(6) 15 normally does not
8 The Commission recently adopted amendments
transfer books. become operative for 30 days after the
to Rule 15c6–1(a) under the Act to shorten the Finally, the Exchange believes that
standard, regular-way settlement cycle from T+3 to date of filing. However, pursuant to
T+2 or the second business day after trade date. the proposed rule change will serve to Rule 19b–4(f)(6)(iii),16 the Commission
See, Securities Exchange Act Release No. 34–80295 may designate a shorter time if such
(March 22, 2016), 82 FR 15564 (March 29, 2017) 10 See, http://www.nyxdata.com/Data-Products/
action is consistent with the protection
(S7–22–16). The compliance date for the NYSE-Corporate-Actions?rfrby=sum# describing the
amendments was September 5, 2017. NYSE Group Corporate Actions package of reports
13 15 U.S.C. 78s(b)(3)(A).
9 Exceptions would be expected to occur in sold by NYSE Group regarding corporate actions for
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
circumstances where the listed company’s all equities listed on NYSE, NYSE MKT and NYSE
4(f)(6)(iii) requires the Exchange to give the
Pmangrum on DSK3GDR082PROD with NOTICES
corporate action consideration is relatively large Arca. See also, http://www.nasdaqtrader.com/
(typically 25% or greater than the value of the Trader.aspx?id=dailylistpd describing the Nasdaq Commission written notice of the Exchange’s intent
security) or definitive information is not received Daily List sold by Nasdaq that provides certain to file the proposed rule change, along with a brief
by the Exchange sufficiently in advance of the corporate action data for Nasdaq listed securities. description and text of the proposed rule change,
record date, as required by IEX Rule 14.207(e)(6), See also, BAT BZX (‘‘BATS’’) Exchange corporate at least five business days prior to the date of filing
to permit the designation of an ‘‘ex-dividend’’ or action reports available without charge at: https:// of the proposed rule change, or such shorter time
‘‘ex-rights’’ date in accordance with Rule 6.210. In www.bats.com/us/equities/market_statistics/ as designated by the Commission. The Exchange
such cases, the ex-date would generally be on the corporate_action/. has satisfied this requirement.
11 15 U.S.C. 78f. 15 17 CFR 240.19b–4(f)(6).
first business day which is practical given the
relevant circumstances. 12 15 U.S.C. 78f(b)(5). 16 17 CFR 240.19b–4(f)(6)(iii).
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of investors and the public interest. The amendments, all written statements of the Calvert Ultra-Short Duration
Exchange has asked the Commission to with respect to the proposed rule Income NextSharesTM (‘‘Fund’’) under
waive the 30-day operative delay. The change that are filed with the Nasdaq Rule 5745. The proposed rule
Commission believes that waiver of the Commission, and all written change was published for comment in
operative delay is consistent with the communications relating to the the Federal Register on September 18,
protection of investors and the public proposed rule change between the 2017.3 On September 15, 2017, the
interest because the Exchange’s Commission and any person, other than Exchange filed Amendment No. 1 to the
proposed rule change is substantially those that may be withheld from the proposed rule change.4 On October 27,
similar to a provision to another self- public in accordance with the 2017, the Exchange filed Amendment
regulatory organization’s rules,17 and provisions of 5 U.S.C. 552, will be No. 2 to the proposed rule change.5 The
the Exchange’s proposal does not raise available for Web site viewing and Commission received no comments on
any new or novel issues. Accordingly, printing in the Commission’s Public the proposed rule change. This order
the Commission hereby waives the 30- Reference Room, 100 F Street NE., grants approval of the proposed rule
day operative delay requirement and Washington, DC 20549, on official change, as modified by Amendments
designates the proposed rule change as business days between the hours of No. 1 and 2.
operative upon filing.18 10:00 a.m. and 3:00 p.m. Copies of the
At any time within 60 days of the II. Exchange’s Description of the
filing also will be available for
filing of the proposed rule change, the Proposed Rule Change
inspection and copying at the principal
Commission summarily may office of the Exchange. All comments The Exchange proposes to list and
temporarily suspend such rule change if received will be posted without change. trade the Shares of the Fund under
it appears to the Commission that such Persons submitting comments are Nasdaq Rule 5745, which governs the
action is necessary or appropriate in the cautioned that we do not redact or edit listing and trading of Exchange-Traded
public interest, for the protection of personal identifying information from Managed Fund Shares, as defined in
investors, or otherwise in furtherance of comment submissions. You should Nasdaq Rule 5745(c)(1). The Fund is a
the purposes of the Act. If the submit only information that you wish series of the Calvert Management Series
Commission takes such action, the to make available publicly. All (‘‘Trust’’). The Exchange represents that
Commission shall institute proceedings submissions should refer to File the Trust is registered with the
to determine whether the proposed rule Number SR–IEX–2017–38, and should Commission as an open-end investment
should be approved or disapproved. be submitted on or before November 27, company and that it has filed a
2017. registration statement on Form N–1A
IV. Solicitation of Comments
For the Commission, by the Division of
Interested persons are invited to Trading and Markets, pursuant to delegated
3 See Securities Exchange Act Release No. 81591
submit written data, views, and (September 13, 2017), 82 FR 43611 (‘‘Notice’’).
authority.19 4 Amendment No. 1 to the proposed rule change
arguments concerning the foregoing, Eduardo A. Aleman, is a partial amendment in which the Exchange
including whether the proposed rule clarifies that: (i) In the event that (a) the Adviser
Assistant Secretary.
change is consistent with the Act. registers as a broker-dealer or becomes newly
[FR Doc. 2017–24048 Filed 11–3–17; 8:45 am] affiliated with a broker-dealer, or (b) any new
Comments may be submitted by any of
BILLING CODE 8011–01–P adviser or a sub-adviser to the Fund is a registered
the following methods: broker-dealer or becomes affiliated with a broker-
Electronic Comments dealer, it will not just implement but also maintain
a fire wall with respect to its relevant personnel
• Use the Commission’s Internet SECURITIES AND EXCHANGE and/or such broker-dealer affiliate, if applicable;
comment form (http://www.sec.gov/ COMMISSION and (ii) the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’), on behalf of the
rules/sro.shtml); or [Release No. 34–81987; File No. SR– Exchange, will communicate as needed with, and
• Send an email to rule-comments@ NASDAQ–2017–091] may obtain information from, other markets and
sec.gov. Please include File Number SR– entities that are members of the Intermarket
IEX–2017–38 on the subject line. Self-Regulatory Organizations; The Surveillance Group (‘‘ISG’’) regarding trading in the
NASDAQ Stock Market LLC; Order Shares, and in exchange-traded securities and
Paper Comments Granting Approval of Proposed Rule
instruments held by the Fund (to the extent those
exchange-traded securities and instruments are
• Send paper comments in triplicate Change, as Modified by Amendments known through the publication of the Composition
to Secretary, Securities and Exchange No. 1 and 2, To List and Trade Shares File and periodic public disclosures of the Fund’s
Commission, 100 F Street NE., of the Calvert Ultra-Short Duration portfolio holdings), and the Exchange may obtain
such trading information from markets and other
Washington, DC 20549–1090. Income NextSharesTM Under Nasdaq entities that are members of ISG or with which the
All submissions should refer to File Rule 5745 Exchange has in place a comprehensive
Number SR–IEX–2017–38. This file surveillance sharing agreement. Amendment No. 1
October 31, 2017. is available at: https://www.sec.gov/comments/sr-
number should be included on the nasdaq-2017-091/nasdaq2017091-2447435-
subject line if email is used. To help the I. Introduction 161078.pdf. Because Amendment No. 1 to the
Commission process and review your On August 30, 2017, The NASDAQ proposed rule change does not materially alter the
comments more efficiently, please use substance of the proposed rule change or raise
Stock Market LLC (‘‘Nasdaq’’ or unique or novel regulatory issues, Amendment No.
only one method. The Commission will ‘‘Exchange’’) filed with the Securities 1 is not subject to notice and comment.
post all comments on the Commission’s and Exchange Commission 5 Amendment No. 2 to the proposed rule change
Internet Web site (http://www.sec.gov/ (‘‘Commission’’), pursuant to Section is a partial amendment in which the Exchange
Pmangrum on DSK3GDR082PROD with NOTICES
rules/sro.shtml). Copies of the clarifies that the name of the Fund will be Calvert
19(b)(1) of the Securities Exchange Act Ultra-Short Duration Income NextShares.
submission, all subsequent of 1934 (‘‘Act’’) 1 and Rule 19b–4 Amendment No. 2 is available at: https://
thereunder,2 a proposed rule change to www.sec.gov/comments/sr-nasdaq-2017-091/
17 See NYSE Arca Rule 7.4–E.
list and trade common shares (‘‘Shares’’) nasdaq2017091-2656932-161387.pdf. Because
18 For purposes only of waiving the 30-day Amendment No. 2 to the proposed rule change does
operative delay, the Commission has also not materially alter the substance of the proposed
19 17 CFR 200.30–3(a)(12).
considered the proposed rule’s impact on rule change or raise unique or novel regulatory
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See issues, Amendment No. 2 is not subject to notice
15 U.S.C. 78c(f). 2 17 CFR 240.19b–4. and comment.
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Document Created: 2017-11-07 10:30:18
Document Modified: 2017-11-07 10:30:18
| 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 51455 |
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