83 FR 48877 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Amendment No. 1 and Order Approving on an Accelerated Basis a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Shares of the GraniteShares Gold MiniBAR Trust Pursuant to NYSE Arca Rule 8.201-E
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 188 (September 27, 2018)
Federal Register Volume 83, Issue 188 (September 27, 2018)
| Page Range | 48877-48880 | |
| FR Document | 2018-20998 |
[Federal Register Volume 83, Number 188 (Thursday, September 27, 2018)] [Notices] [Pages 48877-48880] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-20998] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84257; File No. SR-NYSEArca-2018-55] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Amendment No. 1 and Order Approving on an Accelerated Basis a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Shares of the GraniteShares Gold MiniBAR Trust Pursuant to NYSE Arca Rule 8.201-E September 21, 2018 I. Introduction On July 19, 2018, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade shares (``Shares'') of the GraniteShares Gold MiniBAR Trust (``Trust'') under NYSE Arca Equities Rule 8.201-E. The proposed rule change was published for comment in the Federal Register on August 8, 2018.\3\ On September 14, 2018, the Exchange filed Amendment No. 1 to the proposed rule change.\4\ The Commission has not received any comments on the proposed rule change. The Commission is publishing this notice to solicit comments on Amendment No. 1 from interested persons, and is approving the proposed rule change, as modified by Amendment No. 1, on an accelerated basis. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 83765 (Aug. 2, 2018), 83 FR 39138 (``Notice''). \4\ In Amendment No. 1, the Exchange: (1) Asserted that gold futures contribute to and provide evidence of the liquidity of the overall market for gold; and (2) stated that the Chicago Mercantile Exchange Group (``CME Group'') and ICE Futures US (``ICE'') are members of the Intermarket Surveillance Group (``ISG''). Amendment No. 1 is available at: https://www.sec.gov/comments/sr-NYSEArca-2018-55/srnysearca201855-4348511-173281.pdf. --------------------------------------------------------------------------- II. The Description of the Proposed Rule Change, as Modified by Amendment No. 1 \5\ --------------------------------------------------------------------------- \5\ A more detailed description of the Trust and the Shares, the creation and redemption of Shares, the NAV, the availability of information, among other things, is included in the Registration Statement, infra note 6, and the Notice, supra note 3. --------------------------------------------------------------------------- The Exchange proposes to list and trade the Shares under NYSE Arca Equities Rule 8.201-E,\6\ which governs the listing and trading of Commodity-Based Trust Shares on the Exchange.\7\ The Shares will represent units of fractional undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust will be for the Shares to reflect the performance of the price of gold, less the expenses and liabilities of the Trust. --------------------------------------------------------------------------- \6\ The Trust has filed a registration statement on Form S-1 under the Securities Act of 1933 (15 U.S.C. 77a), dated July 2, 2018 (File No. 333-226034) (``Registration Statement''). \7\ A ``Commodity-Based Trust Share'' is a security (a) that is issued by a trust that holds a specified commodity deposited with the trust; (b) that is issued by such trust in a specified aggregate minimum number in return for a deposit of a quantity of the underlying commodity; and (c) that, when aggregated in the same specified minimum number, may be redeemed at a holder's request by such trust which will deliver to the redeeming holder the quantity of the underlying commodity. See NYSE Arca Equities Rule 8.201(c)(1). --------------------------------------------------------------------------- The sponsor of the Trust is GraniteShares LLC (``Sponsor''). The ``Trustee'' is The Bank of New York Mellon and the ``Custodian'' is ICBC Standard Bank Plc. III. Discussion and Commission Findings After careful review, the Commission finds that the Exchange's proposed rule change, as modified by Amendment No. 1, to list and trade the Shares is consistent with the Act and the rules and regulations thereunder applicable to a national securities exchange.\8\ In particular, the Commission finds that the proposal, as modified by Amendment No. 1, is consistent with Section 11A(a)(1)(C)(iii) of the Act,\9\ which sets forth Congress' finding that it is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to assure the availability to brokers, dealers, and investors of information with respect to quotations for and transactions in securities. The last-sale price for the Shares will be disseminated over the Consolidated Tape. According to the Exchange, there is a considerable amount of information about gold and gold markets available on public websites and through professional and subscription services. Investors may obtain gold pricing information on a 24-hour basis based on the spot price for an ounce of gold from various financial information service providers.\10\ --------------------------------------------------------------------------- \8\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \9\ 15 U.S.C. 78k-1(a)(1)(C)(iii). \10\ The Exchange states that Reuters and Bloomberg, for example, provide at no charge on their websites delayed information regarding the spot price of Gold and last sale prices of gold futures, as well as information about news and developments in the gold market. Reuters and Bloomberg also offer a professional service to subscribers for a fee that provides information on gold prices directly from market participants. Complete real-time data for gold futures and options prices traded on the COMEX are available by subscription from Reuters and Bloomberg. There are a variety of other public websites providing information on gold, ranging from those specializing in precious metals to sites maintained by major newspapers. In addition, the LBMA Gold Price is publicly available at no charge at www.lbma.org.uk. See Notice, supra note 3, 83 FR at 39140. --------------------------------------------------------------------------- [[Page 48878]] Additionally, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with Section 6(b)(5) of the Exchange Act,\11\ which requires, among other things, that the Exchange's rules be designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Commission notes that the Exchange has surveillance-sharing agreements with significant, regulated markets for trading futures on gold. Specifically, according to the Exchange: (1) The most significant gold futures exchange in the U.S. is COMEX, a subsidiary of New York Mercantile Exchange, Inc., and a subsidiary of the CME Group; (2) ICE also lists gold futures;\12\ and (3) the CME Group and ICE are members of the ISG,\13\ which will allow NYSE Arca to obtain surveillance information from COMEX and ICE. Both COMEX and ICE are regulated by the U.S. Commodity Futures Trading Commission (``CFTC'').\14\ The gold futures market is of significant size and liquidity.\15\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b)(5). \12\ See Notice, supra note 3, 83 FR at 39139. \13\ See Amendment No. 1, supra note 4. \14\ See Securities Exchange Act Release No. 82593 (January 26, 2018), 83 FR 4718, 4719 (February 1, 2018) (approving the listing and trading of shares of the Perth Mint Physical Gold ETF). \15\ The Commission notes that it has approved the listing and trading of other Commodity-Based Trust Shares overlying gold. See, e.g., Securities Exchange Act Release No. 81918 (October 23, 2017), 82 FR 49884 (October 27, 2017) (SR-NYSEArca-2017-98); Securities Exchange Act Release No. 71378 (January 23, 2014), 79 FR 71378 (January 29, 2014) (SR-NYSEArca-2013-137); and Securities Exchange Act Release No. 70195 (August 14, 2013), 78 FR 51239 (August 20, 2013) (SR-NYSEArca-2013-61). See also Securities Exchange Act Release No. 83723 (July 26, 2018), 83 FR 37579, 37594 (August 1, 2018) (SR-BatsBZX-2016-30) (disapproving the listing and trading of shares of the Winklevoss Bitcoin Trust). --------------------------------------------------------------------------- The Commission believes that the proposed rule change, as modified by Amendment No. 1, is reasonably designed to promote fair disclosure of information that may be necessary to price the Shares appropriately. NYSE Arca Equities Rule 8.201-E(e)(2)(v) requires that an intraday indicative value (``IIV,'' which is referred to in the rule as the ``Indicative Trust Value'') be calculated and disseminated at least every 15 seconds. The IIV will be calculated based on the amount of gold held by the Trust and a price of gold derived from updated bids and offers indicative of the spot price of gold. The Exchange states that the IIV relating to the Shares will be widely disseminated by one or more major market data vendors at least every 15 seconds during the Core Trading Session.\16\ The NAV of the Trust will be published by the Sponsor on each day that the NYSE Arca is open for regular trading and will be posted on the Trust's website.\17\ The Trust also will publish the following information on their website: (1) The mid-point of the bid-ask price as of the close of trading (``Bid/Ask Price''), and a calculation of the premium or discount of such price against such NAV; (2) data in chart format displaying the frequency distribution of discounts and premiums of the Bid/Ask Price against the NAV, within appropriate ranges, for each of the four previous calendar quarters; (3) the Trust's prospectus, as well as the two most recent reports to stockholders; and (4) the last-sale price of the Shares as traded in the U.S. market.\18\ In addition, information regarding market price and trading volume of the Shares will be continually available on a real-time basis throughout the day on brokers' computer screens and other electronic services. Information regarding the previous day's closing price and trading volume information for the Shares will be published daily in the financial section of newspapers. --------------------------------------------------------------------------- \16\ See Notice, supra note 3, 83 FR at 39142. \17\ See id. \18\ See id. at 39140-41. --------------------------------------------------------------------------- The Commission also believes that the proposal, as modified by Amendment No. 1, is reasonably designed to prevent trading when a reasonable degree of transparency cannot be assured. With respect to trading halts, the Exchange may consider all relevant factors in exercising its discretion to halt or suspend trading in the Shares. Trading on the Exchange in the Shares may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in the Shares inadvisable. These may include: (1) The extent to which conditions in the underlying gold market have caused disruptions and/or lack of trading, or (2) whether other unusual conditions or circumstances detrimental to the maintenance of a fair and orderly market are present. In addition, trading in Shares will be subject to trading halts caused by extraordinary market volatility pursuant to the Exchange's ``circuit breaker'' rule.\19\ The Exchange will halt trading in the Shares if the NAV of the Trust is not calculated or disseminated daily.\20\ The Exchange may halt trading during the day in which an interruption occurs to the dissemination of the IIV; if the interruption to the dissemination of the IIV persists past the trading day in which it occurs, the Exchange will halt trading no later than the beginning of the trading day following the interruption.\21\ --------------------------------------------------------------------------- \19\ See id. at 39141. \20\ See id. \21\ See id. --------------------------------------------------------------------------- Additionally, the Commission notes that market makers in the Shares will be subject to the requirements of NYSE Arca Equities Rule 8.201- E(g), which are designed to allow the Exchange to ensure that they do not use their positions to violate the requirements of Exchange rules or applicable federal securities laws.\22\ --------------------------------------------------------------------------- \22\ Commentary .04 of NYSE Arca Equities Rule 6.3 requires that an ETP Holder acting as a registered market maker in the Shares, and its affiliates, establish, maintain and enforce written policies and procedures reasonably designed to prevent the misuse of any material nonpublic information with respect to such products, any components of the related products, any physical asset or commodity underlying the product, applicable currencies, underlying indexes, related futures or options on futures, and any related derivative instruments. --------------------------------------------------------------------------- In support of this proposal, the Exchange has made the following additional representations: (1) The Shares will be listed and traded on the Exchange pursuant to the initial and continued listing criteria in NYSE Arca Equities Rule 8.201-E.\23\ --------------------------------------------------------------------------- \23\ See id. at 39142. --------------------------------------------------------------------------- (2) The Exchange has appropriate rules to facilitate transactions in the Shares during all trading sessions.\24\ --------------------------------------------------------------------------- \24\ See id. at 39141. --------------------------------------------------------------------------- (3) The Exchange deems the Shares to be equity securities.\25\ --------------------------------------------------------------------------- \25\ See id. The Commission notes that, as a result, trading of the Shares will be subject to the Exchange's existing rules governing the trading of equity securities. --------------------------------------------------------------------------- (4) The Exchange also has a general policy prohibiting the distribution of material, non-public information by its employees.\26\ --------------------------------------------------------------------------- \26\ See id. at 39141-42. --------------------------------------------------------------------------- (5) Trading in the Shares will be subject to the existing trading surveillances administered by the Exchange, as well as cross-market surveillances administered by the Financial Industry Regulatory Authority (``FINRA'') on behalf of the Exchange, which are designed to detect violations of Exchange rules and applicable federal securities laws, and that these [[Page 48879]] procedures are adequate to properly monitor Exchange trading of the Shares in all trading sessions and to deter and detect violations of Exchange rules and federal securities laws applicable to trading on the Exchange.\27\ --------------------------------------------------------------------------- \27\ See id. at 39141. FINRA conducts cross-market surveillances on behalf of the Exchange pursuant to a regulatory services agreement. The Exchange is responsible for FINRA's performance under this regulatory services agreement. See id. at 39141, n.28. --------------------------------------------------------------------------- (6) The Exchange or FINRA, on behalf of the Exchange, or both, will communicate as needed regarding trading in the Shares with other markets and other entities that are members of the ISG, and the Exchange or FINRA, on behalf of the Exchange, or both, may obtain trading information regarding trading in the Shares from such markets and other entities. In addition, the Exchange may obtain information regarding trading in the Shares from markets and other entities that are members of ISG or with which the Exchange has in place a comprehensive surveillance sharing agreement.\28\ --------------------------------------------------------------------------- \28\ See id. at 39141. --------------------------------------------------------------------------- (7) Prior to the commencement of trading, the Exchange will inform its ETP Holders in an Information Bulletin of the special characteristics and risks associated with trading the Shares. Specifically, the Information Bulletin will discuss the following: (1) The procedures for purchases and redemptions of Shares in Baskets (including noting that Shares are not individually redeemable); (2) NYSE Arca Rule 9.2-E(a), which imposes a duty of due diligence on its ETP Holders to learn the essential facts relating to every customer prior to trading the Shares; (3) how information regarding the IIV is disseminated; (4) the requirement that ETP Holders deliver a prospectus to investors purchasing newly issued Shares prior to or concurrently with the confirmation of a transaction; (5) the possibility that trading spreads and the resulting premium or discount on the Shares may widen as a result of reduced liquidity of gold trading during the Core and Late Trading Sessions after the close of the major world gold markets; and (6) trading information.\29\ --------------------------------------------------------------------------- \29\ See id. at 39142. --------------------------------------------------------------------------- (8) All statements and representations made in this filing regarding (a) the description of the portfolio, (b) limitations on portfolio holdings or reference assets, or (c) the applicability of Exchange listing rules specified in this rule filing shall constitute continued listing requirements for listing the Shares on the Exchange.\30\ --------------------------------------------------------------------------- \30\ See id. See also NYSE Arca Rule 8.201-E(e)(2)(vii). --------------------------------------------------------------------------- (9) The issuer has represented to the Exchange that it will advise the Exchange of any failure by the Trust to comply with the continued listing requirements, and, pursuant to its obligations under Section 19(g)(1) of the Act, the Exchange will monitor for compliance with the continued listing requirements. If the Trust is not in compliance with the applicable listing requirements, the Exchange will commence delisting procedures under NYSE Arca Rule 5.5-E(m).\31\ --------------------------------------------------------------------------- \31\ See Notice, supra note 3, at 39142. --------------------------------------------------------------------------- This approval order is based on all of the Exchange's representations--including those set forth above, in the Notice, and in Amendment No. 1--and the Exchange's description of the Trust. For the foregoing reasons, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with Sections 6(b)(5) and 11A(a)(1)(C)(iii) of the Act \32\ and the rules and regulations thereunder applicable to a national securities exchange. --------------------------------------------------------------------------- \32\ 15 U.S.C. 78f(b)(5) and 15 U.S.C. 78k-1(a)(1)(C)(iii), respectively. --------------------------------------------------------------------------- IV. Solicitation of Comments on Amendment No. 1 to the Proposed Rule Change Interested persons are invited to submit written data, views, and arguments concerning Amendment No. 1 to the proposed rule change. 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 rule-comments@sec.gov. Please include File Number SR-NYSEArca-2018-55 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-2018-55. 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 this filing will also 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-2018-55 and should be submitted on or before October 18, 2018. V. Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1 The Commission finds good cause to approve the proposed rule change, as modified by Amendment No. 1, prior to the 30th day after the date of publication of notice of Amendment No. 1 in the Federal Register. Amendment No. 1 supplements the proposal by providing additional information regarding regulation of the gold futures market. This information assisted the Commission in evaluating the Shares' susceptibility to manipulation. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Exchange Act,\33\ to approve the proposed rule change, as modified by Amendment No. 1, on an accelerated basis. --------------------------------------------------------------------------- \33\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act,\34\ that the proposed rule change (SR-NYSEArca-2018-55), as modified by Amendment No. 1 be, and it hereby is, approved. --------------------------------------------------------------------------- \34\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- [[Page 48880]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\35\ --------------------------------------------------------------------------- \35\ 17 CFR 200.30-3(a)(12). Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-20998 Filed 9-26-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 188 / Thursday, September 27, 2018 / Notices 48877
2. What is the exposure and risk of loss SECURITIES AND EXCHANGE Based Trust Shares on the Exchange.7
to PBGC? COMMISSION The Shares will represent units of
fractional undivided beneficial interest
Exposure. The Plan is in a strong [Release No. 34–84257; File No. SR–
NYSEArca–2018–55]
in and ownership of the Trust. The
funded position. For each Plan year investment objective of the Trust will be
since the adoption of PPA, the Plan’s Self-Regulatory Organizations; NYSE for the Shares to reflect the performance
actuary certified that it was not Arca, Inc.; Notice of Filing of of the price of gold, less the expenses
endangered, critical, or critical and Amendment No. 1 and Order and liabilities of the Trust.
declining status, and as of January 1, Approving on an Accelerated Basis a The sponsor of the Trust is
2017, the Plan’s funded percentage was Proposed Rule Change, as Modified by GraniteShares LLC (‘‘Sponsor’’). The
94.4%. The Plan is a Green zone plan Amendment No. 1, To List and Trade ‘‘Trustee’’ is The Bank of New York
with steady contributions and a solid Shares of the GraniteShares Gold Mellon and the ‘‘Custodian’’ is ICBC
base of active participants. MiniBAR Trust Pursuant to NYSE Arca Standard Bank Plc.
Risk of loss. The record shows that the Rule 8.201–E III. Discussion and Commission
proposed amendment presents a low September 21, 2018 Findings
risk of loss to PBGC’s multiemployer
I. Introduction After careful review, the Commission
insurance program. SCA employers
finds that the Exchange’s proposed rule
constitute a small part of the total On July 19, 2018, NYSE Arca, Inc. change, as modified by Amendment No.
number of employers obligated to (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed 1, to list and trade the Shares is
contribute to the Plan. Eight of the with the Securities and Exchange consistent with the Act and the rules
Plan’s approximately 130 contributing Commission (‘‘Commission’’), pursuant and regulations thereunder applicable to
employers are SCA employers and 3% to Section 19(b)(1) of the Securities a national securities exchange.8 In
of the Plan’s active participants are Exchange Act of 1934 (‘‘Act’’) 1 and Rule particular, the Commission finds that
employed by SCA Employers. In 19b–4 thereunder,2 a proposed rule the proposal, as modified by
addition, the industry covered by the change to list and trade shares Amendment No. 1, is consistent with
amendment has unique characteristics (‘‘Shares’’) of the GraniteShares Gold Section 11A(a)(1)(C)(iii) of the Act,9
that suggest the SCA Employers’ MiniBAR Trust (‘‘Trust’’) under NYSE which sets forth Congress’ finding that
contribution base is likely to remain Arca Equities Rule 8.201–E. The it is in the public interest and
stable, and the historical data provided proposed rule change was published for appropriate for the protection of
by the Plan demonstrates that if the comment in the Federal Register on investors and the maintenance of fair
proposed amendment had always been August 8, 2018.3 On September 14, and orderly markets to assure the
in effect, the Plan’s withdrawal liability 2018, the Exchange filed Amendment availability to brokers, dealers, and
payments would have been reduced by No. 1 to the proposed rule change.4 The
investors of information with respect to
only .03% of the Plan’s $1.8 billion Commission has not received any
quotations for and transactions in
assets. Accordingly, the data comments on the proposed rule change.
securities. The last-sale price for the
substantiates the Plan’s assertions that The Commission is publishing this
Shares will be disseminated over the
the SCA Employer contribution base is notice to solicit comments on
Consolidated Tape. According to the
secure and the amendment will not pose Amendment No. 1 from interested
Exchange, there is a considerable
a significant risk to the insurance persons, and is approving the proposed
amount of information about gold and
rule change, as modified by Amendment
system. gold markets available on public
No. 1, on an accelerated basis.
websites and through professional and
Conclusion II. The Description of the Proposed subscription services. Investors may
Based on the Plan’s submissions and Rule Change, as Modified by obtain gold pricing information on a 24-
the representations and statements Amendment No. 1 5 hour basis based on the spot price for an
made in connection with the request for The Exchange proposes to list and ounce of gold from various financial
approval, PBGC has determined that the trade the Shares under NYSE Arca information service providers.10
plan amendment adopting the special Equities Rule 8.201–E,6 which governs
7 A ‘‘Commodity-Based Trust Share’’ is a security
withdrawal liability rules (1) will apply the listing and trading of Commodity-
(a) that is issued by a trust that holds a specified
only to an industry that has commodity deposited with the trust; (b) that is
1 15 U.S.C. 78s(b)(1).
characteristics that would make the use issued by such trust in a specified aggregate
2 17 CFR 240.19b–4.
of special withdrawal liability rules minimum number in return for a deposit of a
3 See Securities Exchange Act Release No. 83765 quantity of the underlying commodity; and (c) that,
appropriate, and (2) will not pose a (Aug. 2, 2018), 83 FR 39138 (‘‘Notice’’). when aggregated in the same specified minimum
significant risk to the insurance system. 4 In Amendment No. 1, the Exchange: (1) Asserted number, may be redeemed at a holder’s request by
Therefore, PBGC hereby grants the that gold futures contribute to and provide evidence such trust which will deliver to the redeeming
Plan’s request for approval of a plan of the liquidity of the overall market for gold; and holder the quantity of the underlying commodity.
(2) stated that the Chicago Mercantile Exchange See NYSE Arca Equities Rule 8.201(c)(1).
amendment providing special Group (‘‘CME Group’’) and ICE Futures US (‘‘ICE’’) 8 In approving this proposed rule change, the
withdrawal liability rules, as set forth are members of the Intermarket Surveillance Group Commission has considered the proposed rule’s
herein. Should the Plan wish to amend (‘‘ISG’’). Amendment No. 1 is available at: https:// impact on efficiency, competition, and capital
these rules at any time, PBGC approval www.sec.gov/comments/sr-NYSEArca–2018-55/ formation. See 15 U.S.C. 78c(f).
srnysearca201855-4348511-173281.pdf. 9 15 U.S.C. 78k–1(a)(1)(C)(iii).
of the amendment will be required.
daltland on DSKBBV9HB2PROD with NOTICES
5 A more detailed description of the Trust and the 10 The Exchange states that Reuters and
Issued in Washington, DC. Shares, the creation and redemption of Shares, the Bloomberg, for example, provide at no charge on
NAV, the availability of information, among other their websites delayed information regarding the
William Reeder, things, is included in the Registration Statement, spot price of Gold and last sale prices of gold
Director, Pension Benefit Guaranty infra note 6, and the Notice, supra note 3. futures, as well as information about news and
6 The Trust has filed a registration statement on developments in the gold market. Reuters and
Corporation.
Form S–1 under the Securities Act of 1933 (15 Bloomberg also offer a professional service to
[FR Doc. 2018–21040 Filed 9–26–18; 8:45 am]
U.S.C. 77a), dated July 2, 2018 (File No. 333– subscribers for a fee that provides information on
BILLING CODE 7709–02–P 226034) (‘‘Registration Statement’’). Continued
VerDate Sep<11>2014 17:20 Sep 26, 2018 Jkt 244001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\27SEN1.SGM 27SEN1](https://thefederalregister.org/doc/83_FR_49065/page/1.svg)
![48880 Federal Register / Vol. 83, No. 188 / Thursday, September 27, 2018 / Notices
For the Commission, by the Division govern this processing, as described Members’ understanding of their rights
of Trading and Markets, pursuant to below. and obligations in connection with this
delegated authority.35 service.
II. Clearing Agency’s Statement of the Each of these proposed changes is
Eduardo A. Aleman, Purpose of, and Statutory Basis for, the described below.
Assistant Secretary. Proposed Rule Change
[FR Doc. 2018–20998 Filed 9–26–18; 8:45 am] (i) Overview of the Buy-In Process
In its filing with the Commission, the
BILLING CODE 8011–01–P clearing agency included statements Under the Rules, a Member with a
concerning the purpose of and basis for Long Position (referred to as the
the proposed rule change and discussed ‘‘originator’’) may submit to NSCC a
SECURITIES AND EXCHANGE any comments it received on the notice of its intention to buy-in any or
COMMISSION proposed rule change. The text of these all of its Long Position. Such notice is
[Release No. 34–84259; File No. SR–NSCC– statements may be examined at the currently referred in the Rules as
2018–007] places specified in Item IV below. The ‘‘Notice of Intention to Buy-In’’ and a
clearing agency has prepared ‘‘Buy-In Notice’’ and must specify the
Self-Regulatory Organizations; summaries, set forth in sections A, B, quantity of securities, not exceeding the
National Securities Clearing and C below, of the most significant originator’s Long Position, it intends to
Corporation; Notice of Filing and aspects of such statements. buy-in (such quantity of securities is
Immediate Effectiveness of a Proposed referred to as the ‘‘Buy-In Position’’). As
Rule Change To Clarify the Rules That (A) Clearing Agency’s Statement of the described in Section J of Procedure VII
Describe the Buy-In Process Purpose of, and Statutory Basis for, the of the Rules, Buy-In Notices may be
Proposed Rule Change either (1) submitted directly to NSCC by
September 21, 2018. the originator, and such Buy-In Notices
1. Purpose
Pursuant to Section 19(b)(1) of the are referred to as an ‘‘Original Buy-In
Securities Exchange Act of 1934 NSCC is proposing to make certain Notice,’’ or (2) submitted directly to
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 revisions to Rule 10 (Failure to Deliver NSCC by the originator as a ‘‘Buy-In
notice is hereby given that on on Security Balance Orders), Section 7 Retransmittal Notice’’ after the
September 19, 2018, National Securities of Rule 11 (CNS System), Section J of originator has received notice that is has
Clearing Corporation (‘‘NSCC’’) filed Procedure VII (CNS Accounting failed to deliver securities away from
with the Securities and Exchange Operation), and Sections A and B of NSCC. References to Buy-In Notices
Commission (‘‘Commission’’) the Procedure X (Execution of Buy-Ins) of include both Original Buy-In Notices
proposed rule change as described in the Rules, which describe the process by and Buy-In Retransmittal Notices.
Items I, II and III below, which Items which a Member entitled to receive The day the Buy-In Notice is
have been prepared by the clearing securities (such quantity of securities is submitted to NSCC is referred to as N,
agency. NSCC filed the proposed rule defined in the Rules as that Member’s and N+1 and N+2 refer to the
change pursuant to Section 19(b)(3)(A) ‘‘Long Position’’), where such securities succeeding days. Original Buy-In
of the Act 3 and Rule 19b–4(f)(4) have failed to deliver, may provide Notices expire on N+2 and Buy-In
thereunder.4 The Commission is NSCC with notice of its intent to buy- Retransmittal Notices expire on N+1.
publishing this notice to solicit in any or all of its Long Position.6 These The Buy-In Position is given high
comments on the proposed rule change rules also describe the processing of the priority for allocation in NSCC’s
from interested persons. subsequent execution of that buy-in. Continuous Net Settlement (‘‘CNS’’) 7
First, the proposed changes would system through the completion of CNS
I. Clearing Agency’s Statement of the update and simplify the Rules by
Terms of Substance of the Proposed allocations in the day cycle on the day
removing statements that do not provide the buy-in expires.
Rule Change important information to Members If, with respect to Original Buy-In
The proposed rule change consists of regarding the buy-in processing service, Notices, a Buy-in Position remains
modifications to the Rules and and NSCC believes this proposed unfilled after the completion of the CNS
Procedures of NSCC (‘‘Rules’’) 5 in order change would make the Rules clearer allocation in the evening cycle on N+1,
to enhance the rules and procedures and more easily understood by or shortly after the receipt of a Buy-In
that describe the process by which a Members. For example, these proposed Retransmittal Notice, NSCC issues CNS
Member entitled to receive securities changes would remove descriptions of Retransmittal Notices to those Members
from the Corporation, where such processing that do not occur at NSCC, with the oldest Short Positions in those
securities have failed to deliver, may and descriptions of rules that are not securities in an amount equal to the
submit a notice of its intent to purchase, enforced by NSCC. originator’s Long Position. Such notices
or ‘‘buy-in,’’ any or all of such securities Second, the proposed changes would specify the originator and the total
and the processing of the subsequent revise, clarify and enhance the quantity of securities requested in the
execution of that buy-in. The proposed transparency of these rules by, for Buy-In Notice. If several Members have
changes would not change how buy-ins example, (1) reorganizing the rules Short Positions with the same age, all
are processed at NSCC, but would governing buy-in processing such that
clarify and simplify the rules that they appear in fewer places in the Rules, 7 CNS is an on-going accounting system which
(2) revising certain statements and nets each day’s settling trades with the prior day’s
35 17 CFR 200.30–3(a)(12). adding new descriptions of buy-in closing positions, producing new Short or Long
daltland on DSKBBV9HB2PROD with NOTICES
Positions per security issue for each Member. NSCC
1 15 U.S.C. 78s(b)(1). processing to improve the transparency is always the contra side for all positions. The
2 17 CFR 240.19b–4.
of these rules, and (3) correcting and positions are then passed against the Member’s
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4).
updating the uses of defined terms. Designated Depository positions and available
NSCC believes making these securities are allocated by book-entry. This
5 Available at http://www.dtcc.com/legal/rules- allocation of securities is accomplished through an
and-procedures. Capitalized terms used herein and descriptions clearer would enhance evening cycle followed by a day cycle. CNS and its
not otherwise defined shall have the meaning operation are described in Rule 11 and Procedure
assigned to such terms in the Rules. 6 Id. VII of the Rules. Supra note 5.
VerDate Sep<11>2014 17:20 Sep 26, 2018 Jkt 244001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\27SEN1.SGM 27SEN1](https://thefederalregister.org/doc/83_FR_49065/page/4.svg)
Document Created: 2018-09-27 01:04:14
Document Modified: 2018-09-27 01:04:14
| 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 48877 |
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