83 FR 23494 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Proposed Operation of the Perth Mint Physical Gold ETF Trust
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 98 (May 21, 2018)
Federal Register Volume 83, Issue 98 (May 21, 2018)
| Page Range | 23494-23497 | |
| FR Document | 2018-10713 |
[Federal Register Volume 83, Number 98 (Monday, May 21, 2018)] [Notices] [Pages 23494-23497] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-10713] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83248; File No. SR-NYSEArca2018-32] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Proposed Operation of the Perth Mint Physical Gold ETF Trust May 15, 2018. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on May 7, 2018, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III 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 The Exchange proposes to reflect a change in the size of a ``Basket'' applicable to shares of the Perth Mint Physical Gold ETF Trust (``Trust'') from 100,000 Shares to at least 50,000 Shares, and to amend certain other representations in the proposed rule change filed with and approved by the Securities and Exchange Commission (``Commission'') relating to listing and trading of Shares of the Trust on the Exchange.\4\ Shares of the Trust have been approved by the Commission for listing and trading on the Exchange under NYSE Arca Rule 8.201-E. The Trust's shares have not commenced trading on the Exchange. The proposed rule change is available on the Exchange's website at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. --------------------------------------------------------------------------- \4\ See note 5, infra. --------------------------------------------------------------------------- II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Commission has approved a proposed rule change relating to listing and trading on the Exchange of shares (``Shares'') of the Trust for listing and trading on the Exchange under NYSE Arca Rule 8.201-E (``Commodity-Based Trust Shares'').\5\ The Exchange proposes to reflect a change in the size of a Creation Unit applicable to Shares of the Trust from 100,000 Shares to at least 50,000 Shares, and to amend certain other representations in the proposed rule change filed with and approved by the Commission relating to listing and trading of Shares of the Trust on the Exchange. The Trust's Shares have not commenced trading on the Exchange. The sponsors of the Trust will be the Gold Corporation and Exchange Traded Concepts, LLC (``Sponsors'').\6\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release Nos. 82372 (December 21, 2107), 82 FR 61601 (December 28, 2107) (SR-NYSEArca-2017-140) (NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To List and Trade Shares of the Perth Mint Physical Gold ETF Trust Under NYSE Arca Rule 8.201-E) (``Prior Notice''); 82593 (January 26, 2018), 83 FR 4718 (February 1, 2018) (SR-NYSEArca-2017-140) Order Approving a Proposed Rule Change To List and Trade Shares of the Perth Mint Physical Gold ETF Trust Pursuant to NYSE Arca Rule 8.201-E) (``Prior Order'' and, together with the Prior Notice, the ``Prior Releases''). \6\ On April 20, 2018 the Trust filed with the Commission a registration statement on Form S-1 under the Securities Act of 1933 relating to the Trust (File No. 333-224389) (``Registration Statement''). The description of the operation of the Trust herein is based, in part, on the Registration Statement. The procedures described in this proposed rule change will not be implemented until such proposed rule change is effective and operative. --------------------------------------------------------------------------- Change to the ``Basket'' Size The Prior Notice stated that the Trust will issue and redeem ``Baskets'' equal to a block of 100,000 Shares. The Exchange proposes to reflect a change in the proposed size of a Basket from 100,000 Shares to 50,000 Shares. The size of a Basket will be subject to change, but will not exceed 100,000 Shares. A reduction in the size of a Basket may provide potential benefits to investors by facilitating additional creation and redemption activity in the Shares, thereby potentially resulting in increased secondary market trading activity, tighter bid/ask spreads and narrower premiums or discounts to net asset value (``NAV'').\7\ --------------------------------------------------------------------------- \7\ The Exchange notes that the Commission has approved the listing and trading of other issues of Commodity-Based Trust Shares that have applied a minimum ``Creation Unit'' size of less than 50,000 shares. See, e.g., Securities Exchange Act Release Nos. 82249 (December 8, 2017), 82 FR 58884 (December 14, 2017) (SR-NYSEArca- 2017-110) (Notice of Filing of Amendment No. 2 and Order Approving on an Accelerated Basis a Proposed Rule Change, as Modified by Amendment No. 2, to List and Trade Shares of the GraniteShares Platinum Trust under NYSE Arca Rule 8.201-E); 81918 (October 23, 2017), 82 FR 49884 (October 27, 2017) (SR-NYSEArca-2017-98) (Order Approving a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, to List and Trade Shares of The Gold Trust under NYSE Arca Rule 8.201-E); 80840 (June 1, 2017), 82 FR 26534 (June 7, 2017) (SR- NYSEArca-2017-33) (Order Approving a Proposed Rule Change, as Modified by Amendment No. 2 Thereto, to List and Trade Shares of the Euro Gold Trust, Pound Gold Trust, and the Yen Gold Trust under NYSE Arca Equities Rule 8.201). --------------------------------------------------------------------------- Change to Initial Basket Gold Amount The Prior Releases stated that the initial Basket Gold Amount is 1,000 Fine Ounces of gold. The Exchange proposes to change this representation to state that the initial Basket Gold Amount is 500 Fine Ounces of gold. The Sponsors represent that this change corresponds proportionately to the change made in the Basket size to 50,000 Shares. Changes to Representations Regarding Delivery Applicants As described in the Registration Statement, persons permitted to take delivery of Physical Gold are referred to as ``investors'' rather than ``Delivery Applicants'', as stated in the Prior Notice, and, in connection with such delivery, Shares are delivered to the Gold Corporation and are not surrendered to the Trust, as represented in the Prior Notice. Thus investors that submit an ``Application'' (rather than a ``Delivery Application'', as described in the Prior Notice) to the Gold Corporation \8\ will deliver Shares to the [[Page 23495]] Gold Corporation (i.e., Custodian or Custodial Sponsor) rather than to the Trust. The Sponsors represent that, by conducting the delivery process directly through the Gold Corporation, rather than through the Trust, it is anticipated that an investor will save on certain service provider administrative charges, and that the process will therefore be more cost effective for investors. --------------------------------------------------------------------------- \8\ The Prior Notice stated that ``Delivery Application'' means a document in a form satisfactory to the Custodian and as set forth the Prior Notice that expresses a Delivery Applicant's intention to surrender Shares on a Share Submission Day in exchange for an amount of Gold on such Share Submission Day. As defined in the Registration Statement, the term ``Application'' is defined as a document in a form satisfactory to Gold Corporation that expresses an investor's intention to deliver shares on a Share Submission Day in exchange for an amount of Physical Gold on such Share Submission Day. --------------------------------------------------------------------------- The Prior Notice stated that the Trust's primary objective will be to provide investors with an opportunity to invest in gold through the Shares, have the gold securely stored by Gold Corporation and, if requested by an investor, deliver Physical Gold to such investor in exchange for its Shares. However, because investors redeeming Shares would deliver Shares to the Gold Corporation rather than to the Trust, the Trust's primary objective will be to provide investors with an opportunity to invest in gold through the Shares and have the gold securely stored by Gold Corporation; the Gold Corporation rather than the Trust will be the entity that delivers Physical Gold to investors in exchange for Shares. Change to Representation Regarding the Government Guarantee The Prior Notice stated that the Government Guarantee \9\ applies to all gold held by the Custodian, whether in the Trust Allocated Metal Account, the Trust Unallocated Metal Account or in a Customer Account, for the benefit of the Trust or a Delivery Applicant. --------------------------------------------------------------------------- \9\ See note 29 of the Prior Notice for a description of the Government Guarantee. --------------------------------------------------------------------------- The Exchange proposes to change this representation to state that the Government Guarantee applies to all gold held by the Custodian or sub-custodian, whether in the Trust Allocated Metal Account, the Trust Unallocated Metal Account, the ``GC Metal Account'' \10\ or in a Customer Account, for the benefit of the Trust or an investor who is the Gold Corporation's direct customer. --------------------------------------------------------------------------- \10\ The term GC [Gold Corporation] Metal Account is defined in the Registration Statement as one or more designated Gold accounts of which Gold Corporation, in its individual capacity, is the registered owner maintained with one or more LBMA Gold clearing members on an unallocated basis in such location or locations as Gold Corporation may determine and used by Gold Corporation exclusively for transfers of Gold to and from the Trust in connection with the creation and redemption of Baskets. The term is introduced in the Registration Statement to clarify that the Custodian maintains certain accounts that are designed to facilitate transfers of gold when an Authorized Participant elects to transfer gold from a third party unallocated account, and not from an unallocated account maintained with the Gold Corporation. --------------------------------------------------------------------------- Change to Representations Regarding Delivery of Required Deposits The Prior Notice stated that an Authorized Participant who places a purchase order is responsible for crediting the Trust Unallocated Metal Account with the required gold deposit amount by 9:00 a.m. London time on the third business day following the purchase order date. The Exchange proposes to change this representation to state that an Authorized Participant who places a purchase order is responsible for crediting its account, if held at the Custodian, with the required gold deposit amount and, if the Authorized Participant does not maintain its account with the Custodian, causing the required gold deposit amount to be transferred to the Custodian by 8:00 a.m. London time on the second business day following the purchase order date. The Sponsors represent that this change is being made in connection with the implementation of the T+2 settlement cycle for securities transactions in accordance with Rule 15c6-1(a) under the Act.\11\ --------------------------------------------------------------------------- \11\ See Securities Exchange Act Release No. 80295 (March 22, 2017), 82 FR 15564 (March 29, 2017). --------------------------------------------------------------------------- Changes to Redemption Procedures The Prior Notice further stated that, by placing a redemption order, an Authorized Participant agrees to deliver the Baskets to be redeemed through DTC's book-entry system to the Trust no later than the third business day following the effective date of the redemption order. The Exchange proposes to change this representation to state that, by placing a redemption order, an Authorized Participant agrees to deliver the Baskets to be redeemed through DTC's book-entry system to the Trust no later than the second business day following the effective date of the redemption order. The Sponsors represent that this change is being made in connection with implementation of the T+2 settlement cycle for securities transactions in accordance with Rule 15c6-1(a) under the Act. The Prior Notice further stated that the redemption distribution due from the Trust is delivered to the Authorized Participant on the next following business day after the Trustee's DTC account has been credited with the Baskets to be redeemed. The Exchange proposes to change this representation to state that the redemption distribution due from the Trust is delivered to the Authorized Participant on the third business day following the redemption date if, by 9:00 a.m. Eastern time on the second business day following the redemption order date, the Trustee's DTC account has been credited with the Baskets to be redeemed. The Sponsors represent that this change is being made in connection with implementation of the T+2 settlement cycle for securities transactions in accordance with Rule 15c6-1(a) under the Act, provided that the redemption distribution will, unless otherwise agreed by the parties, be delivered to the Authorized Participant on the third business day following the redemption date. The Prior Notice stated that gold is delivered to the Trust and distributed by the Trust through credits and debits between Authorized Participants' accounts, the Trust Unallocated Metal Account and the Trust Allocated Metal Account. When the Trustee requests creation of a basket at an Authorized Participant's request, the Authorized Participant will then transfer gold to the Trust Unallocated Metal Account. The Exchange proposes to change this representation to state that gold is delivered to the Trust and distributed by the Trust through credits and debits between Authorized Participants' accounts, the GC Metal Account, the Trust Unallocated Metal Account and the Trust Allocated Metal Account. When the Trustee requests creation of a basket at an Authorized Participant's request, the Authorized Participant will then transfer gold to the Authorized Participant's account with the Custodian or to the GC Metal Account for credit to the Trust Unallocated Metal Account. The Sponsors represent that the proposed changes described above are consistent with the Trust's investment objective, and will further assist the Sponsors to achieve such investment objective. Except for the changes noted above, all other representations made in the Prior Releases remain unchanged.\12\ --------------------------------------------------------------------------- \12\ See note 5, supra. All terms referenced but not defined herein are defined in the Prior Releases. --------------------------------------------------------------------------- 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) \13\ that an exchange have rules that are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of a free and open market [[Page 23496]] and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The proposed rule change is designed to perfect the mechanism of a free and open market and, in general, to protect investors and the public interest. The Exchange believes that the change to the size of a Basket to 50,000 Shares may provide potential benefits to investors by facilitating additional creation and redemption activity in the Shares, thereby potentially resulting in increased secondary market trading activity, tighter bid/ask spreads and narrower premiums or discounts to NAV. The reduction in the initial Basket Gold Amount from 1,000 Fine Ounces to 500 Fine Ounces corresponds proportionately to the change proposed to be made in the Basket size to 50,000 Shares. With respect to the proposed replacement of references in the Prior Notice to Delivery Applicants with ``investors'' and references to ``Delivery Application'' with ``Application'', as applicable, and to specify that an investor delivers Shares to the Gold Corporation rather than to the Trust, the Sponsors represent that, by conducting the delivery process directly through the Gold Corporation, rather than through the Trust, it is anticipated that an investor will save on certain service provider administrative charges, and that the process will therefore be more cost effective for investors. With respect to proposed changes to representations regarding delivery of required deposits and redemption procedures, as described above, the Sponsors represent that such changes are being made in connection with the implementation of the T+2 settlement cycle for securities transactions in accordance with Rule 15c6-1(a) under the Act. With respect to the term GC Metal Account, such term has been introduced in the Registration Statement to clarify that the Custodian will maintain certain accounts that are designed to facilitate transfers of gold when an Authorized Participant elects to transfer gold from a third party unallocated account, and not from an unallocated account maintained with the Gold Corporation. The Sponsors represent that the proposed changes described above are consistent with the Trust's investment objective, and will further assist the Sponsors to achieve such investment objective. Except for the changes noted above, all other representations made in the Prior Releases remain unchanged. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Act. The Exchange believes the proposed rule changes, because of the potential increase in secondary market trading activity that may result from a decrease in the Basket size for Shares of the Trust, the corresponding reduction in the initial Basket Gold Amount, and the reduction in certain time frames, regarding delivery of required deposits and other redemption procedures will enhance competition among issues of gold-based Commodity-Based Trust Shares. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\ 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 prior to 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 and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A)(iii). \15\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b 4(f)(6)(iii),\17\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange states that the Trust plans to launch trading in the Shares on the Exchange prior to such delayed operative date if this proposed rule change is effective and operative. Additionally, the Exchange asserts that waiver would be consistent with the protection of investors and the public interest because reducing the size of a Basket may provide potential benefits to investors by facilitating additional creation and redemption activity in the Shares, thereby potentially resulting in increased secondary market trading activity, tighter bid/ask spreads and narrower premiums or discounts to NAV.\18\ 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 30-day operative delay and designates the proposed rule change operative upon filing.\19\ --------------------------------------------------------------------------- \16\ 17 CFR 240.19b-4(f)(6). \17\ 17 CFR 240.19b-4(f)(6)(iii). \18\ See supra text accompanying note 7. \19\ 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 such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \20\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \20\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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-NYSEArca-2018-32 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2018-32. This file number should be included on the [[Page 23497]] 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- NYSEArca-2018-32, and should be submitted on or before June 11, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-10713 Filed 5-18-18; 8:45 am] BILLING CODE 8011-01-P
![23494 Federal Register / Vol. 83, No. 98 / Monday, May 21, 2018 / Notices
(30 minutes per survey × four per year at the Commission’s Public Reference to a block of 100,000 Shares. The
× six respondents). Room. Exchange proposes to reflect a change in
Issued in Washington, DC by: the proposed size of a Basket from
II. Self-Regulatory Organization’s
100,000 Shares to 50,000 Shares. The
Stephanie Cibinic, Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule size of a Basket will be subject to
Deputy Assistant General Counsel for
Regulatory Affairs, Pension Benefit Guaranty Change change, but will not exceed 100,000
Corporation. Shares. A reduction in the size of a
In its filing with the Commission, the Basket may provide potential benefits to
[FR Doc. 2018–10794 Filed 5–18–18; 8:45 am] self-regulatory organization included investors by facilitating additional
BILLING CODE 7709–02–P statements concerning the purpose of, creation and redemption activity in the
and basis for, the proposed rule change Shares, thereby potentially resulting in
and discussed any comments it received increased secondary market trading
SECURITIES AND EXCHANGE on the proposed rule change. The text activity, tighter bid/ask spreads and
COMMISSION of those statements may be examined at narrower premiums or discounts to net
the places specified in Item IV below. asset value (‘‘NAV’’).7
[Release No. 34–83248; File No. SR–
The Exchange has prepared summaries,
NYSEArca2018–32] Change to Initial Basket Gold Amount
set forth in sections A, B, and C below,
Self-Regulatory Organizations; NYSE of the most significant parts of such The Prior Releases stated that the
Arca, Inc.; Notice of Filing and statements. initial Basket Gold Amount is 1,000
Immediate Effectiveness of Proposed A. Self-Regulatory Organization’s Fine Ounces of gold. The Exchange
Rule Change Relating to the Proposed Statement of the Purpose of, and the proposes to change this representation
Operation of the Perth Mint Physical Statutory Basis for, the Proposed Rule to state that the initial Basket Gold
Gold ETF Trust Change Amount is 500 Fine Ounces of gold. The
Sponsors represent that this change
May 15, 2018. 1. Purpose corresponds proportionately to the
Pursuant to Section 19(b)(1) 1 of the The Commission has approved a change made in the Basket size to
Securities Exchange Act of 1934 (the proposed rule change relating to listing 50,000 Shares.
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 and trading on the Exchange of shares
notice is hereby given that, on May 7, Changes to Representations Regarding
(‘‘Shares’’) of the Trust for listing and
2018, NYSE Arca, Inc. (the ‘‘Exchange’’ Delivery Applicants
trading on the Exchange under NYSE
or ‘‘NYSE Arca’’) filed with the Arca Rule 8.201–E (‘‘Commodity-Based As described in the Registration
Securities and Exchange Commission Trust Shares’’).5 The Exchange proposes Statement, persons permitted to take
(the ‘‘Commission’’) the proposed rule to reflect a change in the size of a delivery of Physical Gold are referred to
change as described in Items I, II, and Creation Unit applicable to Shares of the as ‘‘investors’’ rather than ‘‘Delivery
III below, which Items have been Trust from 100,000 Shares to at least Applicants’’, as stated in the Prior
prepared by the self-regulatory 50,000 Shares, and to amend certain Notice, and, in connection with such
organization. The Commission is other representations in the proposed delivery, Shares are delivered to the
publishing this notice to solicit rule change filed with and approved by Gold Corporation and are not
comments on the proposed rule change the Commission relating to listing and surrendered to the Trust, as represented
from interested persons. trading of Shares of the Trust on the in the Prior Notice. Thus investors that
I. Self-Regulatory Organization’s Exchange. The Trust’s Shares have not submit an ‘‘Application’’ (rather than a
Statement of the Terms of Substance of commenced trading on the Exchange. ‘‘Delivery Application’’, as described in
the Proposed Rule Change The sponsors of the Trust will be the the Prior Notice) to the Gold
Gold Corporation and Exchange Traded Corporation 8 will deliver Shares to the
The Exchange proposes to reflect a Concepts, LLC (‘‘Sponsors’’).6
change in the size of a ‘‘Basket’’ 7 The Exchange notes that the Commission has
applicable to shares of the Perth Mint Change to the ‘‘Basket’’ Size approved the listing and trading of other issues of
Physical Gold ETF Trust (‘‘Trust’’) from The Prior Notice stated that the Trust Commodity-Based Trust Shares that have applied a
minimum ‘‘Creation Unit’’ size of less than 50,000
100,000 Shares to at least 50,000 Shares, will issue and redeem ‘‘Baskets’’ equal shares. See, e.g., Securities Exchange Act Release
and to amend certain other Nos. 82249 (December 8, 2017), 82 FR 58884
representations in the proposed rule 5 See Securities Exchange Act Release Nos. 82372 (December 14, 2017) (SR–NYSEArca–2017–110)
change filed with and approved by the (December 21, 2107), 82 FR 61601 (December 28, (Notice of Filing of Amendment No. 2 and Order
2107) (SR–NYSEArca–2017–140) (NYSE Arca, Inc.; Approving on an Accelerated Basis a Proposed Rule
Securities and Exchange Commission Notice of Filing of Proposed Rule Change To List Change, as Modified by Amendment No. 2, to List
(‘‘Commission’’) relating to listing and and Trade Shares of the Perth Mint Physical Gold and Trade Shares of the GraniteShares Platinum
trading of Shares of the Trust on the ETF Trust Under NYSE Arca Rule 8.201–E) (‘‘Prior Trust under NYSE Arca Rule 8.201–E); 81918
Exchange.4 Shares of the Trust have Notice’’); 82593 (January 26, 2018), 83 FR 4718 (October 23, 2017), 82 FR 49884 (October 27, 2017)
(February 1, 2018) (SR–NYSEArca–2017–140) Order (SR–NYSEArca–2017–98) (Order Approving a
been approved by the Commission for Approving a Proposed Rule Change To List and Proposed Rule Change, as Modified by Amendment
listing and trading on the Exchange Trade Shares of the Perth Mint Physical Gold ETF No. 1 Thereto, to List and Trade Shares of The Gold
under NYSE Arca Rule 8.201–E. The Trust Pursuant to NYSE Arca Rule 8.201–E) (‘‘Prior Trust under NYSE Arca Rule 8.201–E); 80840 (June
Trust’s shares have not commenced Order’’ and, together with the Prior Notice, the 1, 2017), 82 FR 26534 (June 7, 2017) (SR–
‘‘Prior Releases’’). NYSEArca–2017–33) (Order Approving a Proposed
trading on the Exchange. The proposed 6 On April 20, 2018 the Trust filed with the Rule Change, as Modified by Amendment No. 2
sradovich on DSK3GMQ082PROD with NOTICES
rule change is available on the Commission a registration statement on Form S–1 Thereto, to List and Trade Shares of the Euro Gold
Exchange’s website at www.nyse.com, at under the Securities Act of 1933 relating to the Trust, Pound Gold Trust, and the Yen Gold Trust
the principal office of the Exchange, and Trust (File No. 333–224389) (‘‘Registration under NYSE Arca Equities Rule 8.201).
Statement’’). The description of the operation of the 8 The Prior Notice stated that ‘‘Delivery
1 15
Trust herein is based, in part, on the Registration Application’’ means a document in a form
U.S.C.78s(b)(1). Statement. The procedures described in this satisfactory to the Custodian and as set forth the
2 15 U.S.C. 78a. proposed rule change will not be implemented until Prior Notice that expresses a Delivery Applicant’s
3 17 CFR 240.19b–4.
such proposed rule change is effective and intention to surrender Shares on a Share
4 See note 5, infra. operative. Submission Day in exchange for an amount of Gold
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![Federal Register / Vol. 83, No. 98 / Monday, May 21, 2018 / Notices 23495
Gold Corporation (i.e., Custodian or Account, for the benefit of the Trust or to state that the redemption distribution
Custodial Sponsor) rather than to the an investor who is the Gold due from the Trust is delivered to the
Trust. The Sponsors represent that, by Corporation’s direct customer. Authorized Participant on the third
conducting the delivery process directly business day following the redemption
Change to Representations Regarding
through the Gold Corporation, rather date if, by 9:00 a.m. Eastern time on the
Delivery of Required Deposits second business day following the
than through the Trust, it is anticipated
that an investor will save on certain The Prior Notice stated that an redemption order date, the Trustee’s
service provider administrative charges, Authorized Participant who places a DTC account has been credited with the
and that the process will therefore be purchase order is responsible for Baskets to be redeemed. The Sponsors
more cost effective for investors. crediting the Trust Unallocated Metal represent that this change is being made
The Prior Notice stated that the Account with the required gold deposit in connection with implementation of
Trust’s primary objective will be to amount by 9:00 a.m. London time on the the T+2 settlement cycle for securities
provide investors with an opportunity third business day following the transactions in accordance with Rule
to invest in gold through the Shares, purchase order date. 15c6–1(a) under the Act, provided that
have the gold securely stored by Gold The Exchange proposes to change this the redemption distribution will, unless
Corporation and, if requested by an representation to state that an otherwise agreed by the parties, be
investor, deliver Physical Gold to such Authorized Participant who places a delivered to the Authorized Participant
investor in exchange for its Shares. purchase order is responsible for on the third business day following the
However, because investors redeeming crediting its account, if held at the redemption date.
Shares would deliver Shares to the Gold Custodian, with the required gold The Prior Notice stated that gold is
Corporation rather than to the Trust, the deposit amount and, if the Authorized delivered to the Trust and distributed by
Trust’s primary objective will be to Participant does not maintain its the Trust through credits and debits
provide investors with an opportunity account with the Custodian, causing the between Authorized Participants’
to invest in gold through the Shares and required gold deposit amount to be accounts, the Trust Unallocated Metal
have the gold securely stored by Gold transferred to the Custodian by 8:00 a.m. Account and the Trust Allocated Metal
Corporation; the Gold Corporation London time on the second business Account. When the Trustee requests
rather than the Trust will be the entity day following the purchase order date. creation of a basket at an Authorized
that delivers Physical Gold to investors The Sponsors represent that this change Participant’s request, the Authorized
in exchange for Shares. is being made in connection with the Participant will then transfer gold to the
implementation of the T+2 settlement Trust Unallocated Metal Account. The
Change to Representation Regarding the cycle for securities transactions in Exchange proposes to change this
Government Guarantee accordance with Rule 15c6–1(a) under representation to state that gold is
The Prior Notice stated that the the Act.11 delivered to the Trust and distributed by
Government Guarantee 9 applies to all the Trust through credits and debits
Changes to Redemption Procedures between Authorized Participants’
gold held by the Custodian, whether in
the Trust Allocated Metal Account, the The Prior Notice further stated that, accounts, the GC Metal Account, the
Trust Unallocated Metal Account or in by placing a redemption order, an Trust Unallocated Metal Account and
a Customer Account, for the benefit of Authorized Participant agrees to deliver the Trust Allocated Metal Account.
the Trust or a Delivery Applicant. the Baskets to be redeemed through When the Trustee requests creation of a
The Exchange proposes to change this DTC’s book-entry system to the Trust no basket at an Authorized Participant’s
representation to state that the later than the third business day request, the Authorized Participant will
Government Guarantee applies to all following the effective date of the then transfer gold to the Authorized
gold held by the Custodian or sub- redemption order. The Exchange Participant’s account with the
custodian, whether in the Trust proposes to change this representation Custodian or to the GC Metal Account
Allocated Metal Account, the Trust to state that, by placing a redemption for credit to the Trust Unallocated Metal
Unallocated Metal Account, the ‘‘GC order, an Authorized Participant agrees Account.
Metal Account’’ 10 or in a Customer to deliver the Baskets to be redeemed The Sponsors represent that the
through DTC’s book-entry system to the proposed changes described above are
on such Share Submission Day. As defined in the Trust no later than the second business consistent with the Trust’s investment
Registration Statement, the term ‘‘Application’’ is day following the effective date of the objective, and will further assist the
defined as a document in a form satisfactory to Gold
Corporation that expresses an investor’s intention to
redemption order. The Sponsors Sponsors to achieve such investment
deliver shares on a Share Submission Day in represent that this change is being made objective. Except for the changes noted
exchange for an amount of Physical Gold on such in connection with implementation of above, all other representations made in
Share Submission Day. the T+2 settlement cycle for securities the Prior Releases remain unchanged.12
9 See note 29 of the Prior Notice for a description
transactions in accordance with Rule 2. Statutory Basis
of the Government Guarantee.
10 The term GC [Gold Corporation] Metal Account 15c6–1(a) under the Act.
is defined in the Registration Statement as one or The Prior Notice further stated that The basis under the Act for this
more designated Gold accounts of which Gold the redemption distribution due from proposed rule change is the requirement
Corporation, in its individual capacity, is the the Trust is delivered to the Authorized under Section 6(b)(5) 13 that an
registered owner maintained with one or more exchange have rules that are designed to
LBMA Gold clearing members on an unallocated
Participant on the next following
basis in such location or locations as Gold business day after the Trustee’s DTC prevent fraudulent and manipulative
sradovich on DSK3GMQ082PROD with NOTICES
Corporation may determine and used by Gold account has been credited with the acts and practices, to promote just and
Corporation exclusively for transfers of Gold to and Baskets to be redeemed. The Exchange equitable principles of trade, to remove
from the Trust in connection with the creation and impediments to, and perfect the
redemption of Baskets. The term is introduced in
proposes to change this representation
the Registration Statement to clarify that the
mechanism of a free and open market
Custodian maintains certain accounts that are unallocated account maintained with the Gold
designed to facilitate transfers of gold when an Corporation. 12 See note 5, supra. All terms referenced but not
Authorized Participant elects to transfer gold from 11 See Securities Exchange Act Release No. 80295 defined herein are defined in the Prior Releases.
a third party unallocated account, and not from an (March 22, 2017), 82 FR 15564 (March 29, 2017). 13 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 83, No. 98 / Monday, May 21, 2018 / Notices 23497
subject line if email is used. To help the ‘‘Exchange’’ or ‘‘Cboe Options’’) filed ‘‘drop-copy’’ order fill messages from
Commission process and review your with the Securities and Exchange their PULSe brokers. These fill messages
comments more efficiently, please use Commission (the ‘‘Commission’’) the allow customers to update positions,
only one method. The Commission will proposed rule change as described in risk calculations, and streamline back-
post all comments on the Commission’s Items I, II, and III below, which Items office functions.
internet website (http://www.sec.gov/ have been prepared by the Exchange. The Exchange is proposing to reduce
rules/sro.shtml). Copies of the The Commission is publishing this and cap the monthly fee to be assessed
submission, all subsequent notice to solicit comments on the on TPHs who are sending drop copies
amendments, all written statements proposed rule change from interested
to non-TPH customers via a PULSe
with respect to the proposed rule persons.
change that are filed with the workstation. Currently, if a customer
Commission, and all written I. Self-Regulatory Organization’s receiving drop copies is a non-TPH, the
communications relating to the Statement of the Terms of Substance of PULSe broker (the sending TPH) who
proposed rule change between the the Proposed Rule Change sends drop copies via PULSe to that
Commission and any person, other than The Exchange proposes to amend its customer is charged $400 per month.
those that may be withheld from the fees schedule related to its PULSe The Exchange is proposing to reduce
public in accordance with the workstation. that fee to $0.02 per contract with a cap
provisions of 5 U.S.C. 552, will be The text of the proposed rule change of $400 per month per receiving non-
available for website viewing and is also available on the Exchange’s TPH. If that PULSe broker sends drop
printing in the Commission’s Public website (http://www.cboe.com/ copies via PULSe to multiple non-TPH
Reference Room, 100 F Street NE, AboutCBOE/CBOELegalRegulatory customers, the PULSe broker will be
Washington, DC 20549, on official Home.aspx), at the Exchange’s Office of charged the fee for each customer. For
business days between the hours of the Secretary, and at the Commission’s example, if a PULSe broker sends drop
10:00 a.m. and 3:00 p.m. Copies of the Public Reference Room. copies via its PULSe workstation to each
filing also will be available for of non-TPH customer A, non-TPH
inspection and copying at the principal II. Self-Regulatory Organization’s customer B, and non-TPH customer C,
office of the Exchange. All comments Statement of the Purpose of, and the PULSe broker (the sending TPH)
received will be posted without change. Statutory Basis for, the Proposed Rule will be charged a fee of $.02 per contract
Persons submitting comments are Change for drop copies it sends via PULSe to
cautioned that we do not redact or edit In its filing with the Commission, the non-TPH customers A, B, and C (the
personal identifying information from Exchange included statements receiving non-TPHs) with a cap of
comment submissions. You should concerning the purpose of and basis for $1,200 ($400 per non-TPH customers A,
submit only information that you wish the proposed rule change and discussed B, and C).
to make available publicly. All any comments it received on the
submissions should refer to File 2. Statutory Basis
proposed rule change. The text of these
Number SR–NYSEArca–2018–32, and statements may be examined at the The Exchange believes the proposed
should be submitted on or before June places specified in Item IV below. The rule change is consistent with the
11, 2018. Exchange has prepared summaries, set Securities Exchange Act of 1934 (the
For the Commission, by the Division of forth in sections A, B, and C below, of ‘‘Act’’) and the rules and regulations
Trading and Markets, pursuant to delegated the most significant aspects of such thereunder applicable to the Exchange
authority.21 statements. and, in particular, the requirements of
Eduardo A. Aleman, Section 6(b) of the Act.3 Specifically,
A. Self-Regulatory Organization’s
Assistant Secretary. the Exchange believes the proposed rule
Statement of the Purpose of, and
[FR Doc. 2018–10713 Filed 5–18–18; 8:45 am] change is consistent with the Section
Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P Change 6(b)(5) 4 requirements that the rules of
an exchange be designed to prevent
1. Purpose fraudulent and manipulative acts and
SECURITIES AND EXCHANGE The Exchange proposes to amend its practices, to promote just and equitable
COMMISSION Fees Schedule. The Exchange is principles of trade, to foster cooperation
[Release No. 34–83244; File No. SR–CBOE– changing fees related to its PULSe and coordination with persons engaged
2018–033] workstation. The fees herein will be in regulating, clearing, settling,
effective on May 1, 2018. processing information with respect to,
Self-Regulatory Organizations; Cboe By way of background, the PULSe and facilitating transactions in
Exchange, Inc.; Notice of Filing and workstation is a front-end order entry securities, to remove impediments to
Immediate Effectiveness of a Proposed system designed for use with respect to and perfect the mechanism of a free and
Rule Change To Amend Its Fees orders that may be sent to the trading open market and a national market
Schedule Related to Its PULSe systems of the Exchange. Exchange system, and, in general, to protect
Workstation Trading Permit Holders (‘‘TPHs’’) may investors and the public interest.
May 15, 2018. also make workstations available to Additionally, the Exchange believes the
Pursuant to Section 19(b)(1) of the their customers, which may include proposed rule change is consistent with
TPHs, non-broker dealer public
sradovich on DSK3GMQ082PROD with NOTICES
Securities Exchange Act of 1934 (the Section 6(b)(4) of the Act,5 which
‘‘Act’’),1 and Rule 19b–4 thereunder,2 customers, and non-TPH broker dealers. requires that Exchange rules provide for
notice is hereby given that on May 1, Financial Information eXchange the equitable allocation of reasonable
2018, Cboe Exchange, Inc. (the (‘‘FIX’’) language-based connectivity, dues, fees, and other charges among its
upon request, provides customers (both
21 17 CFR 200.30–3(a)(12). TPH and non-TPH) of TPHs that are 3 15 U.S.C. 78f(b).
1 15 U.S.C. 78s(b)(1). brokers and PULSe users (‘‘PULSe 4 15 U.S.C. 78f(b)(5).
2 17 CFR 240.19b–4. brokers’’) with the ability to receive 5 15 U.S.C. 78f(b)(4).
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Document Created: 2018-11-02 11:08:06
Document Modified: 2018-11-02 11:08:06
| 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 23494 |
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