82_FR_8906 82 FR 8887 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Withdrawal of a Proposed Rule Change To Amend Rule 4702 To Adopt a New Retail Post-Only Order

82 FR 8887 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Withdrawal of a Proposed Rule Change To Amend Rule 4702 To Adopt a New Retail Post-Only Order

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 19 (January 31, 2017)

Page Range8887-8888
FR Document2017-02000

Federal Register, Volume 82 Issue 19 (Tuesday, January 31, 2017) 
[Federal Register Volume 82, Number 19 (Tuesday, January 31, 2017)]
[Notices]
[Pages 8887-8888]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02000]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79874; File No. SR-NASDAQ-2016-141]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Withdrawal of a Proposed Rule Change To Amend Rule 4702 To 
Adopt a New Retail Post-Only Order

January 25, 2017.
    On October 13, 2016, The Nasdaq Stock Market LLC (``Exchange'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
amend Exchange Rule 4702 to adopt a new Retail Post-Only Order. The 
proposed rule change was published for comment in the Federal Register 
on

[[Page 8888]]

November 1, 2016.\3\ On December 14, 2016, pursuant to Section 19(b)(2) 
of the Act,\4\ the Commission designated a longer period within which 
to approve the proposed rule change, disapprove the proposed rule 
change, or institute proceedings to determine whether to disapprove the 
proposed rule change.\5\ The Commission received one comment letter on 
the proposed rule change.\6\ On January 20, 2017, the Exchange withdrew 
the proposed rule change (SR-NASDAQ-2016-141).
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 79163 (October 26, 
2016), 81 FR 75862.
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 79554, 81 FR 92927 
(December 20, 2016). The Commission designated January 30, 2017, as 
the date by which it shall approve, disapprove, or institute 
proceedings to determine whether to disapprove the proposed rule 
change.
    \6\ See Letter from Joseph Saluzzi and Sal Arnuk, Partners, 
Themis Trading LLC, to Brent J. Fields, Secretary, Commission, dated 
November 7, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-02000 Filed 1-30-17; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 19 / Tuesday, January 31, 2017 / Notices 8887 Commission, 100 F Street NE., Applicants’ Requested Exemptive Relief concerned, and the proposed Washington, DC 20549–1090. 4. Applicants seek the requested transaction is consistent with the Applicants: Causeway ETMF Trust, Order under section 6(c) of the Act for policies of the registered investment Causeway Capital Management LLC, an exemption from sections 2(a)(32), company and the general purposes of 11111 Santa Monica Boulevard, 15th 5(a)(1), 22(d) and 22(e) of the Act and the Act. Section 12(d)(1)(J) of the Act Floor, Los Angeles, CA 90025; SEI rule 22c–1 under the Act, under provides that the Commission may Investments Distribution Co., One sections 6(c) and 17(b) of the Act for an exempt any person, security, or Freedom Valley Drive, Oaks, PA 19456. exemption from sections 17(a)(1) and transaction, or any class or classes of 17(a)(2) of the Act, and under section persons, securities or transactions, from FOR FURTHER INFORMATION CONTACT: any provision of section 12(d)(1) if the Deepak T. Pai, Senior Counsel, or 12(d)(1)(J) of the Act for an exemption from sections 12(d)(1)(A) and (B) of the exemption is consistent with the public Daniele Marchesani, Assistant Chief interest and the protection of investors. Counsel, at (202) 551–6821 (Division of Act. The requested Order would permit applicants to offer exchange-traded 7. Applicants submit that for the Investment Management, Chief reasons stated in the Reference Order: Counsel’s Office). managed funds. Because the relief requested is the same as the relief (1) With respect to the relief requested SUPPLEMENTARY INFORMATION: The granted by the Commission under the pursuant to section 6(c) of the Act, the following is a summary of the Reference Order and because the relief is appropriate, in the public application. The complete application Adviser has entered into, or anticipates interest and consistent with the may be obtained via the Commission’s entering into, a licensing agreement protection of investors and the purposes with Eaton Vance Management, or an fairly intended by the policy and Web site by searching for the file affiliate thereof in order to offer provisions of the Act; (2) with respect to number, or for an applicant using the exchange-traded managed funds,2 the the relief request pursuant to section Company name box, at http:// Order would incorporate by reference 17(b) of the Act, the proposed www.sec.gov/search/search.htm or by the terms and conditions of the transactions are reasonable and fair and calling (202) 551–8090. do not involve overreaching on the part Reference Order. Applicants 5. Applicants request that the Order of any person concerned, are consistent apply to the Initial Funds and to any with the policies of each registered 1. The Trust will be registered as an investment company concerned and other existing or future open-end open-end management investment management investment company or consistent with the general purposes of company under the Act and is a series thereof that: (a) Is advised by the the Act; and (3) with respect to the relief statutory trust organized under the laws Adviser or any entity controlling, requested pursuant to section 12(d)(1)(J) of the State of Delaware. Applicants controlled by, or under common control of the Act, the relief is consistent with seek relief with respect to three Funds with the Adviser (any such entity the public interest and the protection of (as defined below, and those Funds, the included in the term ‘‘Adviser’’); and (b) investors. ‘‘Initial Funds’’). The portfolio positions operates as an exchange-traded managed By the Division of Investment of each Fund will consist of securities fund as described in the Reference Management, pursuant to delegated and other assets selected and managed Order; and (c) complies with the terms authority. by its Adviser or Subadviser (as defined and conditions of the Order and of the Eduardo A. Aleman, below) to pursue the Fund’s investment Reference Order, which is incorporated Assistant Secretary. objective. by reference herein (each such company [FR Doc. 2017–01998 Filed 1–30–17; 8:45 am] 2. The Adviser, a Delaware limited or series and Initial Fund, a ‘‘Fund’’).3 BILLING CODE 8011–01–P liability company, will be the 6. Section 6(c) of the Act provides that investment adviser to the Initial Funds. the Commission may exempt any An Adviser (as defined below) will person, security or transaction, or any SECURITIES AND EXCHANGE serve as investment adviser to each class of persons, securities or COMMISSION Fund. The Adviser is, and any other transactions, from any provisions of the [Release No. 34–79874; File No. SR– Adviser will be, registered as an Act, if and to the extent that such NASDAQ–2016–141] investment adviser under the exemption is necessary or appropriate Investment Advisers Act of 1940 in the public interest and consistent Self-Regulatory Organizations; The (‘‘Advisers Act’’). The Adviser and the with the protection of investors and the Nasdaq Stock Market LLC; Notice of Trust may retain one or more purposes fairly intended by the policy Withdrawal of a Proposed Rule Change subadvisers (each a ‘‘Subadviser’’) to and provisions of the Act. Section 17(b) To Amend Rule 4702 To Adopt a New manage the portfolios of the Funds. Any of the Act authorizes the Commission to Retail Post-Only Order Subadviser will be registered, or not exempt a proposed transaction from section 17(a) of the Act if evidence January 25, 2017. subject to registration, under the Advisers Act. establishes that the terms of the On October 13, 2016, The Nasdaq transaction, including the consideration Stock Market LLC (‘‘Exchange’’) filed 3. The Distributor is a Pennsylvania with the Securities and Exchange corporation and a broker-dealer to be paid or received, are reasonable and fair and do not involve Commission (‘‘Commission’’), pursuant registered under the Securities to Section 19(b)(1) of the Securities Exchange Act of 1934 and will act as the overreaching on the part of any person asabaliauskas on DSK3SPTVN1PROD with NOTICES Exchange Act of 1934 (‘‘Act’’) 1 and Rule principal underwriter of Shares of the 2 Eaton Vance Management has obtained patents 19b–4 thereunder,2 a proposed rule Funds. Applicants request that the with respect to certain aspects of the Funds’ method change to amend Exchange Rule 4702 to requested relief apply to any distributor of operation as exchange-traded managed funds. adopt a new Retail Post-Only Order. The of Shares, whether affiliated or 3 All entities that currently intend to rely on the proposed rule change was published for unaffiliated with the Adviser (included Order are named as applicants. Any other entity that relies on the Order in the future will comply comment in the Federal Register on in the term ‘‘Distributor’’). Any with the terms and conditions of the Order and of Distributor will comply with the terms the Reference Order, which is incorporated by 1 15 U.S.C. 78s(b)(1). and conditions of the Order. reference herein. 2 17 CFR 240.19b–4. VerDate Sep<11>2014 18:22 Jan 30, 2017 Jkt 241001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 E:\FR\FM\31JAN1.SGM 31JAN1

8888 Federal Register / Vol. 82, No. 19 / Tuesday, January 31, 2017 / Notices November 1, 2016.3 On December 14, Register on November 1, 2016.3 On Trading Pause was triggered.7 For a 2016, pursuant to Section 19(b)(2) of the December 5, 2016, the Exchange filed Limit Up triggered pause, the Auction Act,4 the Commission designated a Amendment No. 1 to the proposed rule Reference Price would be the Upper longer period within which to approve change. On December 14, 2016, the Band price of the LULD Band in place the proposed rule change, disapprove Commission extended the time period at the time the Trading Pause was the proposed rule change, or institute within which to approve the proposed triggered.8 With respect to Auction proceedings to determine whether to rule change, disapprove the proposed Collars, for a Limit Down triggered disapprove the proposed rule change.5 rule change, or institute proceedings to pause, the lower Auction Collar price The Commission received one comment determine whether to disapprove the would be derived by subtracting 5% of letter on the proposed rule change.6 On proposed rule change to January 30, the Auction Reference Price, rounded to January 20, 2017, the Exchange 2017.4 On December 21, 2016, the the nearest minimum price increment, withdrew the proposed rule change Exchange withdrew Amendment No. 1 or in the case of securities with an (SR–NASDAQ–2016–141). and filed Amendment No. 2 to the Auction Reference Price of $3 or less, For the Commission, by the Division of proposed rule change. On January 19, $0.15, from the Auction Reference Price, Trading and Markets, pursuant to delegated 2017, the Exchange filed Amendment and the upper Auction Collar price authority.7 No. 3 to the proposed rule change.5 The would be the Upper Band price of the Eduardo A. Aleman, Commission received no comments on LULD Band in place at the time the Assistant Secretary. the proposed rule change. This order Trading Pause was triggered.9 For a [FR Doc. 2017–02000 Filed 1–30–17; 8:45 am] approves the proposed rule change, as Limit Up triggered pause, the upper modified by Amendment Nos. 2 and 3. Auction Collar price would be derived BILLING CODE 8011–01–P by adding 5% of the Auction Reference II. Description of the Proposed Rule Price, rounded to the nearest minimum Change, as Modified by Amendment price increment, or in the case of SECURITIES AND EXCHANGE Nos. 2 and 3 COMMISSION securities with an Auction Reference In conjunction with the Twelfth Price of $3 or less, $0.15, to the Auction [Release No. 34–79876; File No. SR– Amendment to the Plan,6 the Exchange Reference Price, and the lower Auction NASDAQ–2016–131] Collar price would be the Lower Band proposes to revise its re-opening process Self-Regulatory Organizations; The following a trading halt declared price of the LULD Band in place at the Nasdaq Stock Market LLC; Order pursuant to the Plan (‘‘Trading Pause’’) time the Trading Pause was triggered.10 Granting Approval of Proposed Rule and to make related changes. Extension of Re-Opening Time and Change, as Modified by Amendment Auction Reference Price and Auction Expansion of Auction Collars Nos. 2 and 3, To Enhance the Collar for the Re-Opening Process As proposed, for any security listed Reopening Auction Process Following Following a Trading Pause on the Exchange, prior to terminating a a Trading Halt Declared Pursuant to Trading Pause, there would be a the Plan To Address Extraordinary The Exchange proposes to establish an ‘‘Auction Reference Price’’ and an 5-minute ‘‘Initial Display Only Period’’ Market Volatility ‘‘Auction Collar’’ for the re-opening during which market participants may January 25, 2017. process following a Trading Pause. enter quotations and orders in that Specifically, for a Limit Down triggered security in Nasdaq systems.11 At the I. Introduction conclusion of the Initial Display Only pause, the Auction Reference Price On October 13, 2016, The Nasdaq would be the Lower Band price of the Period, the security would be released Stock Market LLC (‘‘Nasdaq’’ or LULD Band in place at the time the for trading unless, at the end of the ‘‘Exchange’’) filed with the Securities Initial Display Only Period, the and Exchange Commission 3 See Securities Exchange Act Release No. 79158 Exchange detects an order imbalance in (‘‘Commission’’), pursuant to Section (October 26, 2016), 81 FR 75879 (‘‘Notice’’). the security.12 In that case, the Exchange 19(b)(1) of the Securities Exchange Act 4 See Securities Exchange Act Release No. 79551, would extend the Display Only Period of 1934 (‘‘Act’’),1 and Rule 19b–4 81 FR 92885 (December 20, 2016). for an additional 5-minute period 5 In Amendment No. 2, the Exchange proposed to thereunder,2 a proposed rule change use the Auction Reference Price to determine related to the Exchange’s re-opening whether a security subject to a Trading Pause is 7 See proposed Nasdaq Rule 4120(c)(10)(A)(i)(a). process following a trading halt priced at $3 or less, which would determine the 8 See proposed Nasdaq Rule 4120(c)(10)(A)(i)(b). declared pursuant to the National method of calculating the Auction Collars. The The proposed definition of Auction Reference Price Exchange also made a conforming change to Nasdaq for a Trading Pause is designed to be consistent Market System Plan to Address across listing exchanges. Rule 4754(b)(6) relating to Trading Pauses that exist Extraordinary Market Volatility at or after 3:50 p.m. In Amendment No. 3, the 9 See proposed Nasdaq Rule 4120(c)(10)(A)(ii)(a). (‘‘Plan’’). The proposed rule change was Exchange proposed to implement the proposed rule 10 See proposed Nasdaq Rule 4120(c)(10)(A)(ii)(b). published for comment in the Federal change in the third quarter of 2017, following the The proposed Auction Collars for a Trading Pause Commission’s approval of the Twelfth Amendment are designed to be consistent across listing 3 See Securities Exchange Act Release No. 79163 to the Plan. The Exchange also explained that this exchanges. implementation is contingent on the Securities 11 See proposed Nasdaq Rule 4120(c)(10). The (October 26, 2016), 81 FR 75862. 4 15 U.S.C. 78s(b)(2). Information Processors successfully implementing proposed rule would also provide that the Trading 5 See Securities Exchange Act Release No. 79554, changes to their systems to allow for the new re- Pause shall be terminated when Nasdaq releases the opening process, and the other Primary Listing security for trading. See id. The Exchange proposes 81 FR 92927 (December 20, 2016). The Commission Exchanges gaining approval of their related filings a conforming change in Nasdaq Rule 4120(c)(7)(A). asabaliauskas on DSK3SPTVN1PROD with NOTICES designated January 30, 2017, as the date by which and their ability to implement the changes 12 See proposed Nasdaq Rule 4120(c)(10)(B). it shall approve, disapprove, or institute concurrent with Nasdaq. Because Amendment Nos. According to proposed Nasdaq Rule 4120(c)(10)(E), proceedings to determine whether to disapprove the 2 and 3 do not materially alter the substance of the upon completion of the cross calculation, an order proposed rule change. proposed rule change or raise unique or novel 6 See Letter from Joseph Saluzzi and Sal Arnuk, imbalance shall be established as follows: (i) The regulatory issues, they are not subject to notice and calculated price at which the security would be Partners, Themis Trading LLC, to Brent J. Fields, comment. Both amendments are available at: released for trading is above (below) the upper Secretary, Commission, dated November 7, 2016. https://www.sec.gov/comments/sr-nasdaq-2016-131 (lower) Auction Collar price calculated under 7 17 CFR 200.30–3(a)(12). /nasdaq2016131.shtml. paragraphs (A), (B), or (C) of Nasdaq Rule 1 15 U.S.C. 78s(b)(1). 6 See Securities Exchange Act Release No. 79845 4120(c)(10); or (ii) all market orders would not be 2 17 CFR 240.19b–4. (January 19, 2017) (File No. 4–631). executed in the cross. VerDate Sep<11>2014 18:22 Jan 30, 2017 Jkt 241001 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 E:\FR\FM\31JAN1.SGM 31JAN1


Document Created: 2017-01-31 00:20:10
Document Modified: 2017-01-31 00:20:10
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 8887 
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