83 FR 11264 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To List and Trade Shares of a Series of the Cboe Vest S&P 500 Enhanced Growth Strategy ETF Under the ETF Series Solutions Trust Under Rule 14.11(c)(3), Index Fund Shares

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 50 (March 14, 2018)

Page Range		11264-11266
FR Document		2018-05160
Federal Register, Volume 83 Issue 50 (Wednesday, March 14, 2018)
[Federal Register Volume 83, Number 50 (Wednesday, March 14, 2018)]
[Notices]
[Pages 11264-11266]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-05160]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82843; File No. SR-CboeBZX-2017-006]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order 
Instituting Proceedings To Determine Whether To Approve or Disapprove a 
Proposed Rule Change To List and Trade Shares of a Series of the Cboe 
Vest S&P 500 Enhanced Growth Strategy ETF Under the ETF Series 
Solutions Trust Under Rule 14.11(c)(3), Index Fund Shares

March 9, 2018.

I. Introduction

    On November 21, 2017, Cboe BZX Exchange, Inc. (``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to list and trade, under BZX Rule 14.11(c)(3), 
shares (``Shares'') of a series of the Cboe Vest S&P 500[supreg] 
Enhanced Growth Strategy ETF (individually, ``Fund,'' and, 
collectively, ``Funds'') under the ETF Series Solutions Trust 
(``Trust''). The proposed rule change was published for comment in the 
Federal Register on December 11, 2017.\3\ On January 22, 2018, the 
Commission extended the time period within which to approve the 
proposed rule change, disapprove the proposed rule change, or institute 
proceedings to determine whether to approve or disapprove the proposed 
rule change to March 11, 2018.\4\ The Commission has received no 
comment letters on the proposed rule change. This order institutes 
proceedings under Section 19(b)(2)(B) of the Act \5\ to determine 
whether to disapprove the proposed rule change.
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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. 82216 (December 5, 
2017), 82 FR 58235 (``Notice'').
    \4\ See Securities Exchange Act Release No. 82552, 83 FR 3819 
(January 26, 2018).
    \5\ 15 U.S.C. 78s(b)(2)(B).
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II. Exchange's Description of the Proposed Rule Change ⁶
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    \6\ A more detailed description of the Trust, the Funds, and the 
Shares, as well as the availability of price information and other 
information regarding the Indexes (as defined herein) and the Funds' 
portfolio holdings, are included in the Notice and Registration 
Statement (as defined herein). See Notice, supra note 3; 
Registration Statement, infra note 7 and accompanying text.
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    The Exchange proposes to list and trade the Shares of the Funds 
under BZX Rule 14.11(c)(3), which governs the listing and trading of 
Index Fund Shares. In total, the Exchange is proposing to list and 
trade Shares of twelve monthly series of the Cboe Vest S&P 500[supreg] 
Enhanced Growth Strategy ETF. Each Fund will be an index-based exchange 
traded fund (``ETF''). The Funds will include the following: Cboe Vest 
S&P 500[supreg] Enhanced Growth Strategy (January) ETF; Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (February) ETF; Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (March) ETF; Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (April) ETF; Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (May) ETF; Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (June) ETF; Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (July) ETF; Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (August) ETF; Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (September) ETF; Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (October) ETF; Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (November) ETF; and Cboe Vest S&P 
500[supreg] Enhanced Growth Strategy (December) ETF. Each Fund will be 
based on the Cboe S&P 500 Enhanced Growth Index (Month) Series, where 
``Month'' is the corresponding month associated with the roll date of 
the applicable Fund (each an ``Index'' and, collectively, the 
``Indexes'').
    The Shares will be offered by the Trust, which was established as a 
Delaware statutory trust on February 9, 2012. The Trust is registered 
with the Commission as an open-end investment company and has filed a 
registration statement on behalf of the Funds on Form N-1A 
(``Registration Statement'') with the Commission.\7\ The Funds'

[[Page 11265]]

adviser will be Cboe Vest Financial, LLC (``Adviser''), and the index 
provider will be Cboe Exchange, Inc. (``Cboe Options'' or ``Index 
Provider'').
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    \7\ See Registration Statement on Form N-1A for the Trust, dated 
October 27, 2017 (File Nos. 333-179562 and 811-22668). According to 
the Exchange, the Commission has not yet issued an order granting 
exemptive relief to the Trust under the Investment Company Act of 
1940 applicable to the activities of the Funds, but the Funds will 
not be listed on the Exchange until such an order is issued and any 
conditions contained therein are satisfied.
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    Each Fund's investment objective is to track, before fees and 
expenses, the performance of its respective Index. The value of each 
Index is calculated daily by Cboe Options utilizing an option valuation 
model. The Exchange is submitting this proposed rule change because the 
Indexes for the Funds do not meet the listing requirements of BZX Rule 
14.11(c)(3) applicable to an index that consists of equity securities. 
Specifically, the Indexes for the Funds do not meet the listing 
requirements of BZX Rule 14.11(c)(3) because the Indexes consist of 
options based on an index of U.S. Component Stocks.\8\
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    \8\ As defined in Rule 14.11(c)(1)(D), the term ``U.S. Component 
Stock'' means an equity security that is registered under Sections 
12(b) or 12(g) of the Act, or an American Depositary receipt, the 
underlying equity security of which is registered under Sections 
12(b) or 12(g) of the Act.
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Cboe Vest S&P 500[supreg] Enhanced Growth Strategy Indexes

    Each Index is a rules-based options index that consists exclusively 
of FLexible EXchange Options on the S&P 500 Index (``FLEX Options'') 
listed on Cboe Options.\9\ The Indexes are designed to provide exposure 
to the large capitalization U.S. equity market with similar volatility 
and downside risks to traditional equity indices, but higher upside 
potential in market environments with modest gains over the course of 
one year. On a specified day of the applicable month for each Index 
(the ``Roll Date''),\10\ the applicable Index implements a portfolio of 
put and call FLEX Options with expirations on the next Roll Date that, 
if held to such Roll Date, seeks to match any decline in the value of 
the S&P 500 Index, while providing enhanced appreciation of twice the 
positive return of the S&P 500 Index up to a maximum capped gain in the 
value of the S&P 500 Index (``Capped Level''). The Capped Level is 
calculated as of each Roll Date based on the prices of the applicable 
FLEX Options, such that the value of the portfolio of FLEX Options that 
comprises each Index is equivalent to the value of a portfolio 
comprised of the S&P 500 Index constituents. As of the 2017 Roll Date, 
the Capped Level for the January Index was 18%, meaning that the 
January Index is designed to provide twice the positive return of the 
S&P 500 Index up to a maximum 18% gain in the value of the Index (9% 
gain in the value of the S&P 500 Index) from the 2017 Roll Date to the 
2018 Roll Date, but to not provide any participation for gains in the 
value of the S&P 500 Index in excess of 9% (i.e., no opportunity for 
gains in the value of the Index in excess of 18%).
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    \9\ Additional information about the Indexes and methodology is 
available on the Index Provider's website at www.cboe.com.
    \10\ Each of the twelve Indexes is designed to provide returns 
over a defined year long period and, thus, there is an Index 
associated with each month. As such, the Roll Date for a specific 
Index is dependent on the monthly series for which the Index is 
associated. For example, the Roll Date for the Cboe[supreg] S&P 
500[supreg] Enhanced Growth Index January Series is in January and 
the Roll date for the Cboe[supreg] S&P 500[supreg] Enhanced Growth 
Index February Series is in February, a pattern which continues 
through the rest of the calendar year.
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    Each Index is designed to provide the following outcomes between 
Roll Dates:
     If the S&P 500 declines any amount: the Index declines the 
same amount as the S&P 500 Index;
     If the S&P 500 appreciates between 0% and half of the 
Capped Level: the Index appreciates twice the amount as the S&P 500 
Index (e.g., if the S&P 500 Index returns 7%, the Index is designed to 
return 14%); and
     If the S&P 500 appreciates more than half of the Capped 
Level: the Index appreciates the same amount as the Capped Level.
    Each Index includes a mix of purchased and written (sold) put and 
call FLEX Options structured to achieve the results described above. 
Such results are only applicable for each full 12-month period from one 
Roll Date to the next Roll Date, and the Index may not return such 
results for shorter or longer periods. The value of each Index is 
calculated daily by Cboe Options utilizing a rules-based options 
valuation model.

Holdings of the Funds

    Under Normal Market Conditions,\11\ each Fund will seek to track 
the total return performance, before fees and expenses, of its 
respective Index. Under Normal Market Conditions, each Fund will invest 
all, or substantially all, of its assets in the FLEX Options that make 
up each respective underlying Index, standardized U.S. exchange-listed 
options contracts based on the S&P 500 (``S&P 500 Index Options''), 
U.S. exchange-listed options based on one or more ETFs \12\ that track 
the performance of the S&P 500 Index and have the same economic 
characteristics as the FLEX Options that make up each Index 
(``Comparable ETF Options''),\13\ as well as cash and cash 
equivalents.\14\ Under Normal Market Conditions, at least 80% of each 
Fund's total assets (exclusive of any collateral held from securities 
lending) will be invested in the FLEX Options that make up the Index. 
The Funds will hold only FLEX Options, S&P 500 Index Options, 
Comparable ETF Options, and cash and cash equivalents. The FLEX Options 
owned by each Fund will have the same terms (i.e., same strike price 
and expiration) for all investors of that Fund within an outcome 
period. The Capped Level is determined with respect to the applicable 
Index on the inception date of the applicable Fund and at the beginning 
of each outcome period.
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    \11\ The term ``Normal Market Conditions'' includes, but is not 
limited to, the absence of trading halts in the applicable financial 
markets generally; operational issues causing dissemination of 
inaccurate market information or system failures; or force majeure 
type events such as natural or man-made disaster, act of God, armed 
conflict, act of terrorism, riot or labor disruption, or any similar 
intervening circumstance.
    \12\ For purposes of this proposal, the term ETF means Portfolio 
Depositary Receipts and Index Fund Shares as defined in BZX Rules 
14.11(b) and 14.11(c), respectively, and their equivalents on other 
national securities exchanges.
    \13\ The term ``Comparable ETF Options'' will at any time 
include only the five ETFs based on the S&P 500 Index with the 
greatest options consolidated average daily exchange trading volume 
for the previous quarter.
    \14\ For purposes of this filing, cash equivalents are short-
term instruments with maturities of less than three months, 
including: (i) U.S. Government securities, including bills, notes, 
and bonds differing as to maturity and rates of interest, which are 
either issued or guaranteed by the U.S. Treasury or by U.S. 
Government agencies or instrumentalities; (ii) certificates of 
deposit issued against funds deposited in a bank or savings and loan 
association; (iii) bankers acceptances, which are short-term credit 
instruments used to finance commercial transactions; (iv) repurchase 
agreements and reverse repurchase agreements; (v) bank time 
deposits, which are monies kept on deposit with banks or savings and 
loan associations for a stated period of time at a fixed rate of 
interest; (vi) commercial paper, which are short-term unsecured 
promissory notes; and (vii) money market funds.
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III. Proceedings To Determine Whether To Disapprove SR-CboeBZX-2017-006 
and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section 
19(b)(2)(B) of the Act \15\ to determine whether the proposed rule 
change should be approved or disapproved. Institution of such 
proceedings is appropriate at this time in view of the legal and policy 
issues raised by the proposed rule change. Institution of proceedings 
does not indicate that the Commission has reached any conclusions with 
respect to any of the issues involved. Rather, as described below, the 
Commission seeks and encourages interested persons to provide comments 
on the proposed rule change.
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    \15\ 15 U.S.C. 78s(b)(2)(B).

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[[Page 11266]]

    Pursuant to Section 19(b)(2)(B) of the Act,\16\ the Commission is 
providing notice of the grounds for disapproval under consideration. 
The Commission is instituting proceedings to allow for additional 
analysis of the proposal's consistency with Section 6(b)(5) of the 
Act,\17\ which requires, among other things, that the rules of a 
national securities exchange be designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, and to protect investors and the public interest.
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    \16\ Id.
    \17\ 15 U.S.C. 78f(b)(5).
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    Under the proposal, each Fund's investment objective is to track, 
before fees and expenses, the performance of its respective Index, each 
of which consists of a hypothetical portfolio of purchased and written 
(sold) put and call FLEX Options structured to participate in market 
gains and losses of the S&P 500 Index within pre-determined ranges that 
are only applicable for a full 12-month period from one Roll Date to 
the next Roll Date. Specifically, on each Roll Date, the applicable 
Index implements a portfolio of put and call FLEX Options with 
expirations on the next Roll Date that, if held to such Roll Date, 
seeks to match any decline in the value of the S&P 500 Index, while 
providing enhanced appreciation of twice the positive return of the S&P 
500 Index up to a Capped Level. Because of these Index characteristics, 
the Index outcomes that each Fund seeks to track are best realized if 
the Shares are bought at the initial Roll Date and sold at the 
expiration of the next Roll Date. The Commission notes, however, that 
market participants may buy or sell Shares of the Funds at any time, 
not only at the initial or expiration of a Roll Date. Consequently, 
with respect to the pricing of the Shares at any time other than the 
commencement or the expiration of a Roll Date, the Commission seeks 
commenters' views on the sufficiency of the information provided in the 
proposed rule change to support a determination that the listing and 
trading of the Shares would be consistent with Section 6(b)(5) of the 
Act.

IV. Procedure: Request for Written Comments

    Interested persons are invited to submit written views, data, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with Section 6(b)(5) or any other provision of the 
Act, or the rules and regulations thereunder. Although there do not 
appear to be any issues relevant to approval or disapproval that would 
be facilitated by an oral presentation of views, data, and arguments, 
the Commission will consider, pursuant to Rule 19b-4 under the Act, any 
request for an opportunity to make an oral presentation.\18\
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    \18\ Section 19(b)(2) of the Exchange Act, as amended by the 
Securities Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), 
grants the Commission flexibility to determine what type of 
proceeding--either oral or notice and opportunity for written 
comments--is appropriate for consideration of a particular proposal 
by a self-regulatory organization. See Securities Acts Amendments of 
1975, Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 
75, 94th Cong., 1st Sess. 30 (1975).
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    Interested persons are invited to submit written data, views, and 
arguments regarding whether the proposal should be approved or 
disapproved by April 4, 2018. Any person who wishes to file a rebuttal 
to any other person's submission must file that rebuttal by April 18, 
2018.
    Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CboeBZX-2017-006 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-CboeBZX-2017-006. 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 website (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 website 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-CboeBZX-2017-006 and should be submitted 
on or before April 4, 2018. Rebuttal comments should be submitted by 
April 18, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(57).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-05160 Filed 3-13-18; 8:45 am]
 BILLING CODE 8011-01-P
11264 Federal Register / Vol. 83, No. 50 / Wednesday, March 14, 2018 / Notices

of the Act 18 and paragraph (f) of Rule cautioned that we do not redact or edit institutes proceedings under Section
19b–4 thereunder.19 personal identifying information from 19(b)(2)(B) of the Act 5 to determine
At any time within 60 days of the comment submissions. You should whether to disapprove the proposed
filing of the proposed rule change, the submit only information that you wish rule change.
Commission summarily may to make available publicly. All
II. Exchange’s Description of the
temporarily suspend such rule change if submissions should refer to File No. SR- Proposed Rule Change 6
it appears to the Commission that such CboeBYX–2018–002 and should be
action is necessary or appropriate in the submitted on or before April 4, 2018. The Exchange proposes to list and
public interest, for the protection of trade the Shares of the Funds under
For the Commission, by the Division of
investors, or otherwise in furtherance of BZX Rule 14.11(c)(3), which governs the
Trading and Markets, pursuant to delegated
the purposes of the Act. authority.20 listing and trading of Index Fund
Shares. In total, the Exchange is
IV. Solicitation of Comments Eduardo A. Aleman,
proposing to list and trade Shares of
Assistant Secretary.
Interested persons are invited to twelve monthly series of the Cboe Vest
submit written data, views and [FR Doc. 2018–05078 Filed 3–13–18; 8:45 am] S&P 500® Enhanced Growth Strategy
arguments concerning the foregoing, BILLING CODE 8011–01–P ETF. Each Fund will be an index-based
including whether the proposal is exchange traded fund (‘‘ETF’’). The
consistent with the Act. Comments may Funds will include the following: Cboe
be submitted by any of the following SECURITIES AND EXCHANGE Vest S&P 500® Enhanced Growth
methods: COMMISSION Strategy (January) ETF; Cboe Vest S&P
[Release No. 34–82843; File No. SR– 500® Enhanced Growth Strategy
Electronic Comments (February) ETF; Cboe Vest S&P 500®
CboeBZX–2017–006]
• Use the Commission’s internet Enhanced Growth Strategy (March) ETF;
comment form (http://www.sec.gov/ Self-Regulatory Organizations; Cboe Cboe Vest S&P 500® Enhanced Growth
rules/sro.shtml); or BZX Exchange, Inc.; Order Instituting Strategy (April) ETF; Cboe Vest S&P
• Send an email to rule-comments@ Proceedings To Determine Whether To 500® Enhanced Growth Strategy (May)
sec.gov. Please include File No. SR– Approve or Disapprove a Proposed ETF; Cboe Vest S&P 500® Enhanced
CboeBYX–2018–002 on the subject line. Rule Change To List and Trade Shares Growth Strategy (June) ETF; Cboe Vest
Paper Comments of a Series of the Cboe Vest S&P 500 S&P 500® Enhanced Growth Strategy
Enhanced Growth Strategy ETF Under (July) ETF; Cboe Vest S&P 500®
• Send paper comments in triplicate the ETF Series Solutions Trust Under Enhanced Growth Strategy (August)
to Secretary, Securities and Exchange Rule 14.11(c)(3), Index Fund Shares ETF; Cboe Vest S&P 500® Enhanced
Commission, 100 F Street NE, Growth Strategy (September) ETF; Cboe
Washington, DC 20549–1090. March 9, 2018. Vest S&P 500® Enhanced Growth
All submissions should refer to File No. I. Introduction Strategy (October) ETF; Cboe Vest S&P
SR–CboeBYX–2018–002. This file 500® Enhanced Growth Strategy
number should be included on the On November 21, 2017, Cboe BZX (November) ETF; and Cboe Vest S&P
subject line if email is used. To help the Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’) 500® Enhanced Growth Strategy
Commission process and review your filed with the Securities and Exchange (December) ETF. Each Fund will be
comments more efficiently, please use Commission (‘‘Commission’’), pursuant based on the Cboe S&P 500 Enhanced
only one method. The Commission will to Section 19(b)(1) of the Securities Growth Index (Month) Series, where
post all comments on the Commission’s Exchange Act of 1934 (‘‘Act’’) 1 and Rule ‘‘Month’’ is the corresponding month
internet website (http://www.sec.gov/ 19b–4 thereunder,2 a proposed rule associated with the roll date of the
rules/sro.shtml). Copies of the change to list and trade, under BZX applicable Fund (each an ‘‘Index’’ and,
submission, all subsequent Rule 14.11(c)(3), shares (‘‘Shares’’) of a collectively, the ‘‘Indexes’’).
amendments, all written statements series of the Cboe Vest S&P 500® The Shares will be offered by the
with respect to the proposed rule Enhanced Growth Strategy ETF Trust, which was established as a
change that are filed with the (individually, ‘‘Fund,’’ and, collectively, Delaware statutory trust on February 9,
Commission, and all written ‘‘Funds’’) under the ETF Series 2012. The Trust is registered with the
communications relating to the Solutions Trust (‘‘Trust’’). The proposed Commission as an open-end investment
proposed rule change between the rule change was published for comment company and has filed a registration
Commission and any person, other than in the Federal Register on December 11, statement on behalf of the Funds on
those that may be withheld from the 2017.3 On January 22, 2018, the Form N–1A (‘‘Registration Statement’’)
public in accordance with the Commission extended the time period with the Commission.7 The Funds’
provisions of 5 U.S.C. 552, will be within which to approve the proposed
available for website viewing and rule change, disapprove the proposed 5 15 U.S.C. 78s(b)(2)(B).
printing in the Commission’s Public rule change, or institute proceedings to 6A more detailed description of the Trust, the
determine whether to approve or Funds, and the Shares, as well as the availability
Reference Room, 100 F Street NE, of price information and other information
Washington, DC 20549, on official disapprove the proposed rule change to regarding the Indexes (as defined herein) and the
business days between the hours of March 11, 2018.4 The Commission has Funds’ portfolio holdings, are included in the
10:00 a.m. and 3:00 p.m. Copies of such received no comment letters on the Notice and Registration Statement (as defined
proposed rule change. This order herein). See Notice, supra note 3; Registration
filing will also be available for
daltland on DSKBBV9HB2PROD with NOTICES

Statement, infra note 7 and accompanying text.
inspection and copying at the principal 7 See Registration Statement on Form N–1A for
20 17 CFR 200.30–3(a)(12).
office of the Exchange. All comments 1 15
the Trust, dated October 27, 2017 (File Nos. 333–
U.S.C. 78s(b)(1). 179562 and 811–22668). According to the
received will be posted without change. 2 17 CFR 240.19b–4.
Exchange, the Commission has not yet issued an
Persons submitting comments are 3 See Securities Exchange Act Release No. 82216
order granting exemptive relief to the Trust under
(December 5, 2017), 82 FR 58235 (‘‘Notice’’). the Investment Company Act of 1940 applicable to
18 15 U.S.C. 78s(b)(3)(A). 4 See Securities Exchange Act Release No. 82552, the activities of the Funds, but the Funds will not
19 17 CFR 240.19b–4(f). 83 FR 3819 (January 26, 2018). be listed on the Exchange until such an order is

VerDate Sep<11>2014 18:17 Mar 13, 2018 Jkt 244001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 E:\FR\FM\14MRN1.SGM 14MRN1
11266 Federal Register / Vol. 83, No. 50 / Wednesday, March 14, 2018 / Notices

Pursuant to Section 19(b)(2)(B) of the Although there do not appear to be any filing also will be available for
Act,16 the Commission is providing issues relevant to approval or inspection and copying at the principal
notice of the grounds for disapproval disapproval that would be facilitated by office of the Exchange. All comments
under consideration. The Commission is an oral presentation of views, data, and received will be posted without change.
instituting proceedings to allow for arguments, the Commission will Persons submitting comments are
additional analysis of the proposal’s consider, pursuant to Rule 19b–4 under cautioned that we do not redact or edit
consistency with Section 6(b)(5) of the the Act, any request for an opportunity personal identifying information from
Act,17 which requires, among other to make an oral presentation.18 comment submissions. You should
things, that the rules of a national Interested persons are invited to submit only information that you wish
securities exchange be designed to submit written data, views, and to make available publicly. All
prevent fraudulent and manipulative arguments regarding whether the submissions should refer to File
acts and practices, to promote just and proposal should be approved or Number SR–CboeBZX–2017–006 and
equitable principles of trade, and to disapproved by April 4, 2018. Any should be submitted on or before April
protect investors and the public interest. person who wishes to file a rebuttal to 4, 2018. Rebuttal comments should be
Under the proposal, each Fund’s any other person’s submission must file submitted by April 18, 2018.
investment objective is to track, before that rebuttal by April 18, 2018. For the Commission, by the Division of
fees and expenses, the performance of Comments may be submitted by any Trading and Markets, pursuant to delegated
its respective Index, each of which of the following methods: authority.19
consists of a hypothetical portfolio of Electronic Comments Eduardo A. Aleman,
purchased and written (sold) put and Assistant Secretary.
call FLEX Options structured to • Use the Commission’s internet
comment form (http://www.sec.gov/ [FR Doc. 2018–05160 Filed 3–13–18; 8:45 am]
participate in market gains and losses of
the S&P 500 Index within pre- rules/sro.shtml); or BILLING CODE 8011–01–P

determined ranges that are only • Send an email to rule-comments@
applicable for a full 12-month period sec.gov. Please include File Number SR–
CboeBZX–2017–006 on the subject line. SECURITIES AND EXCHANGE
from one Roll Date to the next Roll Date. COMMISSION
Specifically, on each Roll Date, the Paper Comments
applicable Index implements a portfolio Submission for OMB Review;
• Send paper comments in triplicate
of put and call FLEX Options with Comment Request
to Secretary, Securities and Exchange
expirations on the next Roll Date that,
Commission, 100 F Street NE, Upon Written Request, Copies Available
if held to such Roll Date, seeks to match
Washington, DC 20549–1090. From: Securities and Exchange
any decline in the value of the S&P 500
Index, while providing enhanced All submissions should refer to File Commission Office of FOIA Services,
appreciation of twice the positive return Number SR–CboeBZX–2017–006. This 100 F Street NE, Washington, DC
of the S&P 500 Index up to a Capped file number should be included on the 20549–2736.
Level. Because of these Index subject line if email is used. To help the Extension:
characteristics, the Index outcomes that Commission process and review your Form PF, SEC File No. 270–636, OMB
each Fund seeks to track are best comments more efficiently, please use Control No. 3235–0679.
realized if the Shares are bought at the only one method. The Commission will Notice is hereby given that, pursuant
initial Roll Date and sold at the post all comments on the Commission’s to the Paperwork Reduction Act of 1995
expiration of the next Roll Date. The internet website (http://www.sec.gov/ (44 U.S.C. 3501 et seq.) (‘‘Paperwork
Commission notes, however, that rules/sro.shtml). Copies of the Reduction Act’’), the Securities and
market participants may buy or sell submission, all subsequent Exchange Commission (the
Shares of the Funds at any time, not amendments, all written statements ‘‘Commission’’) has submitted to the
only at the initial or expiration of a Roll with respect to the proposed rule Office of Management and Budget
Date. Consequently, with respect to the change that are filed with the (‘‘OMB’’) a request for extension of the
pricing of the Shares at any time other Commission, and all written previously approved collection of
than the commencement or the communications relating to the information discussed below.
expiration of a Roll Date, the proposed rule change between the Rule 204(b)–1 (17 CFR 275.204(b)–1)
Commission seeks commenters’ views Commission and any person, other than under the Investment Advisers Act of
on the sufficiency of the information those that may be withheld from the 1940 (15 U.S.C. 80b–1 et seq.)
provided in the proposed rule change to public in accordance with the implements sections 404 and 406 of the
support a determination that the listing provisions of 5 U.S.C. 552, will be Dodd-Frank Wall Street Reform and
and trading of the Shares would be available for website viewing and Consumer Protection Act (the ‘‘Dodd-
consistent with Section 6(b)(5) of the printing in the Commission’s Public Frank Act’’) by requiring private fund
Act. Reference Room, 100 F Street NE, advisers that have at least $150 million
Washington, DC 20549 on official in private fund assets under
IV. Procedure: Request for Written business days between the hours of management to report certain
Comments 10:00 a.m. and 3:00 p.m. Copies of the information regarding the private funds
Interested persons are invited to they advise on Form PF. These advisers
18 Section 19(b)(2) of the Exchange Act, as
submit written views, data, and are the respondents to the collection of
amended by the Securities Acts Amendments of
arguments concerning the foregoing, information.
daltland on DSKBBV9HB2PROD with NOTICES

1975, Public Law 94–29 (June 4, 1975), grants the
including whether the proposed rule Commission flexibility to determine what type of Form PF is designed to facilitate the
change is consistent with Section 6(b)(5) proceeding—either oral or notice and opportunity Financial Stability Oversight Council’s
or any other provision of the Act, or the for written comments—is appropriate for (‘‘FSOC’’) monitoring of systemic risk in
consideration of a particular proposal by a self- the private fund industry and to assist
rules and regulations thereunder. regulatory organization. See Securities Acts
Amendments of 1975, Senate Comm. on Banking, FSOC in determining whether and how
16 Id.
Housing & Urban Affairs, S. Rep. No. 75, 94th
17 15 U.S.C. 78f(b)(5). Cong., 1st Sess. 30 (1975). 19 17 CFR 200.30–3(a)(57).

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Document Created: 2018-03-14 01:06:30
Document Modified: 2018-03-14 01:06:30
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		83 FR 11264