83 FR 14902 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify That the Validea Market Legends ETF Will Be Passively-Managed Rather Than Actively-Managed

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 67 (April 6, 2018)

Page Range		14902-14903
FR Document		2018-07018
Federal Register, Volume 83 Issue 67 (Friday, April 6, 2018)
[Federal Register Volume 83, Number 67 (Friday, April 6, 2018)]
[Notices]
[Pages 14902-14903]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-07018]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82982; File No. SR-NASDAQ-2018-026]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify That the Validea Market Legends ETF Will Be Passively-Managed 
Rather Than Actively-Managed

April 2, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on April 2, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes that shares (``Shares'') of the Validea 
Market Legends ETF (``Fund'') will no longer be listed and traded as an 
actively-managed exchange-traded fund (``ETF'') in accordance with the 
SEC's approval order (``Order''),\3\ but will instead operate under the 
generics for passively-managed ETFs set forth under Nasdaq Rule 
5705(b).
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    \3\ See Exchange Act Release No. 73480; (Oct. 31, 2014), 79 FR 
66022 (Nov. 6, 2014) (SR-NASDAQ-2014-090).
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    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaq.cchwallstreet.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 Exchange 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 statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Nasdaq proposes that the Shares of the Fund will no longer be 
listed and traded as an actively-managed ETF in accordance with the 
Order, but will instead operate under the generics for passively-
managed ETFs set forth under Nasdaq Rule 5705(b). Nasdaq represents and 
confirms that the Fund meets such generics [sic]
    The impetus for the change is that the Fund will begin tracking an 
index and thus no longer be actively-managed. There are no other 
changes being proposed to be made to the Fund.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
Section 6(b) of the Act,\4\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act,\5\ in particular, in that it is designed 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.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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    Nasdaq believes that this proposed rule change will help to inform 
and to protect investors and the public interest through disclosing 
that the Fund will no longer be actively managed, but instead 
passively-managed through the tracking of an index.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. As noted above, the Fund will 
no longer be listed and traded in accordance with the Order,\6\ but 
will instead operate under the generics for passively-managed ETFs set 
forth under Nasdaq Rule 5705(b). The Exchange does not intend for or 
expect that such change will have any impact on competition.
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    \6\ Supra, note 3.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

[[Page 14903]]

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

    Because the foregoing 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, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its 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 Commission has waived this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \9\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has requested that the Commission waive the 30-day operative delay so 
that the proposed rule change may become operative upon filing. The 
Commission notes that the proposed rule change provides that the Fund 
will no longer be listed and traded in accordance with the Order, but 
will instead be listed and traded in accordance with the generic 
listing standards under Nasdaq Rule 5705(b), which include the initial 
and continued listing standards for Index Fund Shares.\11\ Waiver of 
the operative delay would allow the Fund to begin to operate under such 
generic listing standards without delay. The Commission believes that 
waiver of the 30-day operative delay is consistent with the protection 
of investors and the public interest. Accordingly, the Commission 
hereby waives the operative delay and designates the proposed rule 
change operative upon filing.\12\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ The Exchange represents that the Fund meets such generic 
listing standards.
    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 change 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 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-NASDAQ-2018-026 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-NASDAQ-2018-026. 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-NASDAQ-2018-026, and should be submitted 
on or before April 27, 2018.


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2018-07018 Filed 4-5-18; 8:45 am]
 BILLING CODE 8011-01-P
14902 Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Notices

revise its Credit Default Swap (‘‘CDS’’) SECURITIES AND EXCHANGE the most significant aspects of such
Clearing Stress Testing Policy (‘‘Stress COMMISSION statements.
Testing Policy’’) to, among other things,
[Release No. 34–82982; File No. SR– A. Self-Regulatory Organization’s
re-categorize certain CDS stress testing
NASDAQ–2018–026] Statement of the Purpose of, and
scenarios, address specific wrong way
Statutory Basis for, the Proposed Rule
risk, introduce new forward looking Self-Regulatory Organizations; The Change
credit event scenarios, and make certain
Nasdaq Stock Market LLC; Notice of
enhancements and clarifications (File 1. Purpose
Filing and Immediate Effectiveness of
No. SR–ICEEU–2018–001). The Nasdaq proposes that the Shares of
Proposed Rule Change To Modify That
proposed rule change was published for the Fund will no longer be listed and
the Validea Market Legends ETF Will
comment in the Federal Register on traded as an actively-managed ETF in
Be Passively-Managed Rather Than
February 16, 2018.3 To date, the accordance with the Order, but will
Actively-Managed
Commission has not received comments instead operate under the generics for
on the proposed rule change. April 2, 2018. passively-managed ETFs set forth under
Section 19(b)(2) of the Act 4 provides Pursuant to Section 19(b)(1) of the Nasdaq Rule 5705(b). Nasdaq represents
that within 45 days of the publication of Securities Exchange Act of 1934 and confirms that the Fund meets such
notice of the filing of a proposed rule (‘‘Act’’),1 and Rule 19b–4 thereunder,2 generics [sic]
change, or within such longer period, notice is hereby given that on April 2, The impetus for the change is that the
up to 90 days, as the Commission may 2018, The Nasdaq Stock Market LLC Fund will begin tracking an index and
designate if it finds such longer period (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the thus no longer be actively-managed.
to be appropriate and publishes its Securities and Exchange Commission There are no other changes being
reasons for so finding, or as to which the (‘‘SEC’’ or ‘‘Commission’’) the proposed proposed to be made to the Fund.
self-regulatory organization consents, rule change as described in Items I and
the Commission shall either approve the 2. Statutory Basis
II below, which Items have been
proposed rule change, disapprove the prepared by the Exchange. The Nasdaq believes that the proposed
proposed rule change, or institute Commission is publishing this notice to rule change is consistent with Section
proceedings to determine whether the solicit comments on the proposed rule 6(b) of the Act,4 in general, and furthers
proposed rule change should be change from interested persons. the objectives of Section 6(b)(5) of the
disapproved. The 45th day from the Act,5 in particular, in that it is designed
publication of notice of filing of this I. Self-Regulatory Organization’s to promote just and equitable principles
proposed rule change is April 2, 2018. Statement of the Terms of Substance of of trade, to remove impediments to and
The Commission is extending the 45- the Proposed Rule Change perfect the mechanism of a free and
day time period for Commission action The Exchange proposes that shares open market and a national market
on the proposed rule change. ICE Clear (‘‘Shares’’) of the Validea Market system, and, in general to protect
Europe proposes to revise its Stress Legends ETF (‘‘Fund’’) will no longer be investors and the public interest.
Testing Policy to re-categorize existing listed and traded as an actively- Nasdaq believes that this proposed
CDS stress testing scenarios, add managed exchange-traded fund (‘‘ETF’’) rule change will help to inform and to
provisions to address specific wrong in accordance with the SEC’s approval protect investors and the public interest
way risk, introduce new forward order (‘‘Order’’),3 but will instead through disclosing that the Fund will no
looking credit event scenarios, and operate under the generics for passively- longer be actively managed, but instead
make certain enhancements and managed ETFs set forth under Nasdaq passively-managed through the tracking
clarifications. The Commission finds it Rule 5705(b). of an index.
is appropriate to designate a longer The text of the proposed rule change
period within which to take action on B. Self-Regulatory Organization’s
is available on the Exchange’s website at Statement on Burden on Competition
the proposed rule change so that it has http://nasdaq.cchwallstreet.com, at the
sufficient time to consider ICE Clear principal office of the Exchange, and at The Exchange does not believe that
Europe’s proposed rule change. the Commission’s Public Reference the proposed rule change will impose
Accordingly, the Commission, Room. any burden on competition not
pursuant to Section 19(b)(2) of the Act,5 necessary or appropriate in furtherance
designates May 17, 2018 as the date by II. Self-Regulatory Organization’s of the purposes of the Act. As noted
which the Commission should either Statement of the Purpose of, and above, the Fund will no longer be listed
approve or disapprove, or institute Statutory Basis for, the Proposed Rule and traded in accordance with the
proceedings to determine whether to Change Order,6 but will instead operate under
disapprove, the proposed rule change In its filing with the Commission, the the generics for passively-managed ETFs
(File No. SR–ICEEU–2018–001). Exchange included statements set forth under Nasdaq Rule 5705(b).
For the Commission, by the Division of concerning the purpose of and basis for The Exchange does not intend for or
Trading and Markets, pursuant to delegated the proposed rule change and discussed expect that such change will have any
authority.6 any comments it received on the impact on competition.
Robert W. Errett, proposed rule change. The text of these C. Self-Regulatory Organization’s
Deputy Secretary. statements may be examined at the Statement on Comments on the
[FR Doc. 2018–07010 Filed 4–5–18; 8:45 am] places specified in Item IV below. The Proposed Rule Change Received From
daltland on DSKBBV9HB2PROD with NOTICES

BILLING CODE 8011–01–P Exchange has prepared summaries, set Members, Participants, or Others
forth in sections A, B, and C below, of
3 Securities Exchange Act Release No. 34–82692
No written comments were either
(February 6, 2018); 83 FR 7096 (February 16, 2018) 1 15 U.S.C. 78s(b)(1). solicited or received.
(SR–ICEEU–2018–001). 2 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(2). 3 See Exchange Act Release No. 73480; (Oct. 31, 4 15U.S.C. 78f(b).
5 15 U.S.C. 78s(b)(2). 5 15U.S.C. 78f(b)(5).
2014), 79 FR 66022 (Nov. 6, 2014) (SR–NASDAQ–
6 17 CFR 200.30–3(a)(31). 2014–090). 6 Supra, note 3.

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Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Notices 14903

III. Date of Effectiveness of the it appears to the Commission that such to make available publicly. All
Proposed Rule Change and Timing for action is necessary or appropriate in the submissions should refer to File
Commission Action public interest, for the protection of Number SR–NASDAQ–2018–026, and
Because the foregoing proposed rule investors, or otherwise in furtherance of should be submitted on or before April
change does not: (i) Significantly affect the purposes of the Act. If the 27, 2018.
Commission takes such action, the
the protection of investors or the public For the Commission, by the Division of
Commission shall institute proceedings
interest; (ii) impose any significant Trading and Markets, pursuant to delegated
to determine whether the proposed rule
burden on competition; and (iii) become authority.13
change should be approved or
operative for 30 days from the date on Brent J. Fields,
disapproved.
which it was filed, or such shorter time
Secretary.
as the Commission may designate, it has IV. Solicitation of Comments
become effective pursuant to Section [FR Doc. 2018–07018 Filed 4–5–18; 8:45 am]
Interested persons are invited to
19(b)(3)(A) of the Act 7 and Rule 19b– submit written data, views, and BILLING CODE 8011–01–P
4(f)(6) thereunder.8 arguments concerning the foregoing,
A proposed rule change filed including whether the proposed rule
pursuant to Rule 19b–4(f)(6) under the SECURITIES AND EXCHANGE
change is consistent with the Act.
Act 9 normally does not become COMMISSION
Comments may be submitted by any of
operative for 30 days after the date of its the following methods:
filing. However, Rule 19b–4(f)(6)(iii) 10 [Release No. 34–82979; File No. SR–ICEEU–
permits the Commission to designate a Electronic Comments 2018–005]
shorter time if such action is consistent • Use the Commission’s internet
with the protection of investors and the comment form (http://www.sec.gov/ Self-Regulatory Organizations; ICE
public interest. The Exchange has rules/sro.shtml); or Clear Europe Limited; Notice of Filing
requested that the Commission waive • Send an email to rule-comments@ and Immediate Effectiveness of a
the 30-day operative delay so that the sec.gov. Please include File Number SR– Proposed Rule Change Relating to
proposed rule change may become NASDAQ–2018–026 on the subject line. Amendments to the Futures & Options
operative upon filing. The Commission Paper Comments Guaranty Fund Policy
notes that the proposed rule change
provides that the Fund will no longer be • Send paper comments in triplicate April 2, 2018.
listed and traded in accordance with the to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
Order, but will instead be listed and Commission, 100 F Street NE, Securities Exchange Act of 1934
traded in accordance with the generic Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
listing standards under Nasdaq Rule All submissions should refer to File notice is hereby given that on March 19,
5705(b), which include the initial and Number SR–NASDAQ–2018–026. This 2018, ICE Clear Europe Limited (‘‘ICE
continued listing standards for Index file number should be included on the Clear Europe’’) filed with the Securities
Fund Shares.11 Waiver of the operative subject line if email is used. To help the and Exchange Commission
delay would allow the Fund to begin to Commission process and review your (‘‘Commission’’) the proposed rule
operate under such generic listing comments more efficiently, please use change described in Items I, II and III
standards without delay. The only one method. The Commission will
below, which Items have been prepared
Commission believes that waiver of the post all comments on the Commission’s
by ICE Clear Europe. ICE Clear Europe
30-day operative delay is consistent internet website (http://www.sec.gov/
filed the proposed rule change pursuant
with the protection of investors and the rules/sro.shtml). Copies of the
to Section 19(b)(3)(A) of the Act 3 and
public interest. Accordingly, the submission, all subsequent
amendments, all written statements Rule 19b–4(f)(4)(ii) thereunder,4 so that
Commission hereby waives the the proposal was immediately effective
operative delay and designates the with respect to the proposed rule
change that are filed with the upon filing with the Commission. The
proposed rule change operative upon Commission is publishing this notice to
filing.12 Commission, and all written
communications relating to the solicit comments on the proposed rule
At any time within 60 days of the change from interested persons.5
filing of the proposed rule change, the proposed rule change between the
Commission summarily may Commission and any person, other than I. Clearing Agency’s Statement of the
temporarily suspend such rule change if those that may be withheld from the Terms of Substance of the Proposed
public in accordance with the Rule Change, Security-Based Swap
7 15 U.S.C. 78s(b)(3)(A). provisions of 5 U.S.C. 552, will be Submission, or Advance Notice
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– available for website viewing and
4(f)(6)(iii) requires a self-regulatory organization to printing in the Commission’s Public ICE Clear Europe proposes to make
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
Reference Room, 100 F Street NE, certain amendments to its policies
description and text of the proposed rule change, Washington, DC 20549 on official relating to its Clearing House Futures &
at least five business days prior to the date of filing business days between the hours of Options (‘‘F&O’’) Initial Contribution to
of the proposed rule change, or such shorter time 10:00 a.m. and 3:00 p.m. Copies of the default resources.
as designated by the Commission. The Commission
has waived this requirement.
filing also will be available for
9 17 CFR 240.19b–4(f)(6). inspection and copying at the principal 13 17 CFR 200.30–3(a)(12).
daltland on DSKBBV9HB2PROD with NOTICES

10 17 CFR 240.19b–4(f)(6)(iii). office of the Exchange. All comments 1 15 U.S.C. 78s(b)(1).
11 The Exchange represents that the Fund meets received will be posted without change. 2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
such generic listing standards. Persons submitting comments are
12 For purposes only of waiving the 30-day 4 17 CFR 240.19b–4(f)(4)(ii).
cautioned that we do not redact or edit
operative delay, the Commission also has 5 Capitalized terms used herein but not otherwise

considered the proposed rule’s impact on
personal identifying information from defined have the meaning set forth in the ICE Clear
efficiency, competition, and capital formation. See comment submissions. You should Europe rulebook, which is available at https://
15 U.S.C. 78c(f). submit only information that you wish www.theice.com/clear-europe/regulation#rulebook.

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Document Created: 2018-11-01 09:15:53
Document Modified: 2018-11-01 09:15:53
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 14902