83_FR_51176 83 FR 50980 - Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving a Proposed Rule Change To Provide for the Listing of Exchange Traded Products With No Component NMS Stock Listed on the Exchange, Delete Obsolete Listing Rules for Exchange Traded Products and Amend Rules Regarding Unlisted Trading Privileges

83 FR 50980 - Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving a Proposed Rule Change To Provide for the Listing of Exchange Traded Products With No Component NMS Stock Listed on the Exchange, Delete Obsolete Listing Rules for Exchange Traded Products and Amend Rules Regarding Unlisted Trading Privileges

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 196 (October 10, 2018)

Page Range50980-50981
FR Document2018-21907

Federal Register, Volume 83 Issue 196 (Wednesday, October 10, 2018)
[Federal Register Volume 83, Number 196 (Wednesday, October 10, 2018)]
[Notices]
[Pages 50980-50981]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21907]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84351; File No. SR-NYSE-2018-30]


Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Approving a Proposed Rule Change To Provide for the Listing of Exchange 
Traded Products With No Component NMS Stock Listed on the Exchange, 
Delete Obsolete Listing Rules for Exchange Traded Products and Amend 
Rules Regarding Unlisted Trading Privileges

October 3, 2018.

I. Introduction

    On June 15, 2018, the New York Stock Exchange LLC (``Exchange'' or 
``NYSE'') 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 provide for the listing of exchange traded 
products (``ETPs'') that do not have any component NMS Stock \3\ listed 
on the Exchange, delete obsolete listing rules for ETPs, and amend 
rules regarding unlisted trading privileges (``UTP''). The proposed 
rule change was published for comment in the Federal Register on July 
6, 2018.\4\ On July 24, 2018, the Exchange submitted partial Amendment 
No. 1 to the proposed rule change. On August 16, 2018, the Commission 
extended the time period within which to approve the proposed rule 
change, disapprove the proposed rule change, or institute proceedings 
to determine whether to approve or disapprove the proposed rule 
change.\5\ On August 23, 2018, the Exchange submitted Amendment No. 2 
to the proposed rule change.\6\ The Commission received no comment 
letters on the proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ NMS Stock is defined in Rule 600 of Regulation NMS, 17 CFR 
242.600(b)(47).
    \4\ See Securities Exchange Act Release No. 83560 (June 29, 
2018), 83 FR 31585 (``Notice'').
    \5\ See Securities Exchange Act Release No. 83860, 83 FR 42534 
(August 22, 2018).
    \6\ Amendment No. 2 replaced and superseded the original filing, 
as modified by partial Amendment No. 1, in its entirety. In 
Amendment No. 2, the Exchange: (i) Provided background information 
regarding its Pillar platform and clarified that it would not be 
listing ETPs on its Pillar platform at this time but that it would 
announce via trader update when it plans to do so; (ii) designated 
as ``Reserve'' certain sections of the Listed Company Manual which 
rules are being deleted by this proposal; (iii) represented that the 
Commission approved Exchange listing rules that are substantially 
identical to those on NYSE Arca, Inc. (``NYSE Arca'') for certain 
ETPs; and (iv) made technical changes to the rule text and proposal. 
Because Amendment No. 2 does not materially alter the substance of 
the proposed rule change or raise unique or novel regulatory issues 
under the Act, it is not subject to notice and comment. Amendment 
No. 2 is available at: https://www.sec.gov/comments/sr-nyse-2018-30/nyse201830-4274809-173136.pdf.
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    As described in more detail in the Notice,\7\ the Exchange proposes 
to: (1) Provide for the listing of certain ETPs, provided that an ETP 
meets the applicable requirements of NYSE Rules 5P and 8P and does not 
have any component NMS Stock that is listed on the Exchange or is based 
on, or represents an interest in, an underlying index or reference 
asset that includes an NMS Stock listed on the Exchange; \8\ (2) delete 
a sentence in NYSE Rule 5.1(a)(1) that is no longer relevant given the 
Exchange's addition of Section 303A to the Listed Company Manual,\9\ 
which requires all NYSE-listed companies, including any ETPs listed on 
the Exchange, to comply with Section 303A of the Listed Company Manual; 
(3) delete certain listing rules that would be superseded by the ETP 
listing and trading requirements proposed in NYSE Rules 5P and 8P; (4) 
delete all references in NYSE Rules 5P and 8P that imply

[[Page 50981]]

that the initial and continued listing standards contained in those 
rules may apply to the trading pursuant to UTP of such ETPs, and make 
related changes; and (5) amend NYSE Rule 5.1(a)(2) relating to ETPs 
trading pursuant to UTP to delete the requirement that the Exchange 
file with the Commission a Form 19b-4(e) with respect to each ETP it 
trades by UTP, and to make clear that the Exchange would halt trading 
in an ETP trading pursuant to UTP as provided for in NYSE Rule 7.18.
---------------------------------------------------------------------------

    \7\ See Notice, supra note 4.
    \8\ The Exchange represents that its proposed rules for the 
qualification, listing, and trading of these products are 
substantially identical (other than certain non-substantive and 
technical amendments) as the rules of NYSE Arca and the Exchange's 
other affiliates, including NYSE American LLC (``NYSE American'').
    \9\ Section 303A implements the requirements of Rules 10A-3 and 
10C-1 under the Act.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change, as amended, is consistent with the requirements of the Act and 
the rules and regulations thereunder applicable to a national 
securities exchange.\10\ In particular, the Commission finds that the 
proposed rule change is consistent with Section 6(b) of the Act,\11\ in 
general, and furthers the objectives of Section 6(b)(5) of the Act,\12\ 
in particular, in that it is 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 and a national market system, and, in 
general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \10\ 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).
    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the Exchange's proposed listing 
standards for ETPs \13\ do not raise any novel issues, as they are 
consistent with the rules of other national securities exchanges. The 
proposed rules for the qualification, listing, and trading of ETPs are 
substantially identical (other than certain non-substantive and 
technical changes) to the rules of NYSE Arca and NYSE American. 
Moreover, the Exchange's proposal to make clear that the initial and 
continued listing standards in Rules 5P and 8P do not apply to the 
trading pursuant to UTP of such ETPs conforms NYSE's rules to the 
corresponding provisions of the rules of NYSE National, Inc. (``NYSE 
National'').\14\
---------------------------------------------------------------------------

    \13\ The proposed listing standards of Rules 5P and 8P: (1) 
Provide for the listing of certain ETPs, provided that an ETP meets 
the applicable requirements of NYSE Rules 5P and 8P and does not 
have any component NMS Stock that is listed on the Exchange or is 
based on, or represents an interest in, an underlying index or 
reference asset that includes an NMS Stock listed on the Exchange; 
(2) delete a sentence in NYSE Rule 5.1(a)(1) that is no longer 
relevant given the Exchange's addition of Section 303A to the Listed 
Company Manual; and (3) delete all references in NYSE Rules 5P and 
8P that imply that the initial and continued listing standards 
contained in those rules may apply to the trading pursuant to UTP of 
such ETPs.
    \14\ In addition, the Commission believes that the proposed 
changes to NYSE Rule 5.1(a)(2) would further harmonize the 
Exchange's rules applicable to ETPs traded on a UTP basis with the 
rules of NYSE National.
---------------------------------------------------------------------------

    Additionally, the Commission believes that the deletion of listing 
rules that would be superseded by the proposed rule change, the 
proposed amendments to NYSE Rules 5.1(a), and technical conforming 
changes are appropriate and consistent with Section 6(b)(5) of the Act. 
These changes would eliminate language that is no longer relevant and 
modify the Exchange rules to be more precise, thereby leading to 
greater clarity for Exchange members, regulators, investors, and the 
general public.
    In approving the proposed rule change, the Commission also relies 
upon the Exchange's representation that: (1) Listed ETPs would be 
subject to the existing trading surveillances administered by the 
Exchange for ETPs trading UTP, as well as cross-market surveillances 
administered by the Financial Industry Regulatory Authority (``FINRA'') 
on behalf of the Exchange, and (2) the initial and continued listing 
reviews of ETPs listed on the Exchange will be conducted in the same 
manner as they are on NYSE's affiliated exchange, NYSE Arca.\15\ 
Further, the Exchange or FINRA, on behalf of the Exchange, or both, 
will communicate as needed regarding trading in ETPs, as well as 
certain other securities and financial instruments underlying such 
ETPs, with other markets and other entities that are members of the 
Intermarket Surveillance Group (``ISG''). The Exchange or FINRA, on 
behalf of the Exchange, or both, may obtain trading information 
regarding trading in ETPs and financial instruments from such markets 
and other entities. In addition, the Exchange may obtain information 
regarding trading in ETPs, as well as certain other securities and 
financial instruments underlying such ETPs from markets and other 
entities that are members of ISG or with which the Exchange has in 
place a comprehensive surveillance sharing agreement.\16\
---------------------------------------------------------------------------

    \15\ See Notice, supra note 4, at 31587-31588.
    \16\ See id. at 31587.
---------------------------------------------------------------------------

    The Commission therefore finds that the proposed rule change, as 
modified by Amendment No. 2, is consistent with, and furthers the 
objectives of, Section 6(b)(5) of the Act.\17\
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\18\ that the proposed rule change (SR-NYSE-2018-30), as modified 
by Amendment No. 2, be, and hereby is, approved.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21907 Filed 10-9-18; 8:45 am]
 BILLING CODE 8011-01-P



                                              50980                     Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices

                                                The Commission asks that                              submissions should refer to File                      the proposed rule change. On August
                                              commenters address the sufficiency and                  Number SR–MIAX–2018–25 and should                     16, 2018, the Commission extended the
                                              merit of the Exchange’s statements in                   be submitted on or before October 31,                 time period within which to approve
                                              support of the proposal, in addition to                 2018. Rebuttal comments should be                     the proposed rule change, disapprove
                                              any other comments they may wish to                     submitted by November 14, 2018.                       the proposed rule change, or institute
                                              submit about the proposed rule change.                                                                        proceedings to determine whether to
                                                                                                      VI. Conclusion
                                              Interested persons are invited to submit                                                                      approve or disapprove the proposed
                                              written data, views, and arguments                        It is therefore ordered, pursuant to                rule change.5 On August 23, 2018, the
                                              concerning the proposed rule change,                    Section 19(b)(3)(C) of the Act,47 that File           Exchange submitted Amendment No. 2
                                              including whether the proposed rule                     Number SR–MIAX–2018–25 be and                         to the proposed rule change.6 The
                                              change is consistent with the Act.                      hereby is, temporarily suspended. In                  Commission received no comment
                                              Comments may be submitted by any of                     addition, the Commission is instituting               letters on the proposal. This order
                                              the following methods:                                  proceedings to determine whether the                  approves the proposed rule change.
                                                                                                      proposed rule change should be
                                              Electronic Comments                                     approved or disapproved.                              II. Description of the Proposed Rule
                                                • Use the Commission’s internet                                                                             Change
                                                                                                        For the Commission, by the Division of
                                              comment form (http://www.sec.gov/                       Trading and Markets, pursuant to delegated               As described in more detail in the
                                              rules/sro.shtml); or                                    authority.48                                          Notice,7 the Exchange proposes to: (1)
                                                • Send an email to rule-comments@                     Eduardo A. Aleman,                                    Provide for the listing of certain ETPs,
                                              sec.gov. Please include File Number SR–                 Assitant Secretary.                                   provided that an ETP meets the
                                              MIAX–2018–25 on the subject line.                       [FR Doc. 2018–21921 Filed 10–9–18; 8:45 am]
                                                                                                                                                            applicable requirements of NYSE Rules
                                              Paper Comments                                          BILLING CODE 8011–01–P
                                                                                                                                                            5P and 8P and does not have any
                                                                                                                                                            component NMS Stock that is listed on
                                                 • Send paper comments in triplicate                                                                        the Exchange or is based on, or
                                              to Brent J. Fields, Secretary, Securities                                                                     represents an interest in, an underlying
                                                                                                      SECURITIES AND EXCHANGE
                                              and Exchange Commission, 100 F Street                                                                         index or reference asset that includes an
                                                                                                      COMMISSION
                                              NE, Washington, DC 20549–1090.                                                                                NMS Stock listed on the Exchange; 8 (2)
                                              All submissions should refer to File                    [Release No. 34–84351; File No. SR–NYSE–              delete a sentence in NYSE Rule 5.1(a)(1)
                                              Number SR–MIAX–2018–25. This file                       2018–30]                                              that is no longer relevant given the
                                              number should be included on the                                                                              Exchange’s addition of Section 303A to
                                              subject line if email is used. To help the              Self-Regulatory Organizations; New
                                                                                                      York Stock Exchange LLC; Order                        the Listed Company Manual,9 which
                                              Commission process and review your                                                                            requires all NYSE-listed companies,
                                              comments more efficiently, please use                   Approving a Proposed Rule Change To
                                                                                                      Provide for the Listing of Exchange                   including any ETPs listed on the
                                              only one method. The Commission will                                                                          Exchange, to comply with Section 303A
                                              post all comments on the Commission’s                   Traded Products With No Component
                                                                                                      NMS Stock Listed on the Exchange,                     of the Listed Company Manual; (3)
                                              internet website (http://www.sec.gov/                                                                         delete certain listing rules that would be
                                              rules/sro.shtml). Copies of the                         Delete Obsolete Listing Rules for
                                                                                                      Exchange Traded Products and Amend                    superseded by the ETP listing and
                                              submission, all subsequent                                                                                    trading requirements proposed in NYSE
                                              amendments, all written statements                      Rules Regarding Unlisted Trading
                                                                                                      Privileges                                            Rules 5P and 8P; (4) delete all references
                                              with respect to the proposed rule                                                                             in NYSE Rules 5P and 8P that imply
                                              change that are filed with the                          October 3, 2018.
                                              Commission, and all written                                                                                      5 See Securities Exchange Act Release No. 83860,

                                              communications relating to the                          I. Introduction                                       83 FR 42534 (August 22, 2018).
                                                                                                                                                               6 Amendment No. 2 replaced and superseded the
                                              proposed rule change between the                           On June 15, 2018, the New York Stock
                                                                                                                                                            original filing, as modified by partial Amendment
                                              Commission and any person, other than                   Exchange LLC (‘‘Exchange’’ or ‘‘NYSE’’)               No. 1, in its entirety. In Amendment No. 2, the
                                              those that may be withheld from the                     filed with the Securities and Exchange                Exchange: (i) Provided background information
                                              public in accordance with the                           Commission (‘‘Commission’’), pursuant                 regarding its Pillar platform and clarified that it
                                              provisions of 5 U.S.C. 552, will be                     to Section 19(b)(1) of the Securities                 would not be listing ETPs on its Pillar platform at
                                              available for website viewing and                       Exchange Act of 1934 (‘‘Act’’) 1 and Rule             this time but that it would announce via trader
                                                                                                                                                            update when it plans to do so; (ii) designated as
                                              printing in the Commission’s Public                     19b–4 thereunder,2 a proposed rule                    ‘‘Reserve’’ certain sections of the Listed Company
                                              Reference Room, 100 F Street NE,                        change to provide for the listing of                  Manual which rules are being deleted by this
                                              Washington, DC 20549 on official                        exchange traded products (‘‘ETPs’’) that              proposal; (iii) represented that the Commission
                                              business days between the hours of                      do not have any component NMS                         approved Exchange listing rules that are
                                                                                                                                                            substantially identical to those on NYSE Arca, Inc.
                                              10:00 a.m. and 3:00 p.m. Copies of the                  Stock 3 listed on the Exchange, delete                (‘‘NYSE Arca’’) for certain ETPs; and (iv) made
                                              filing also will be available for                       obsolete listing rules for ETPs, and                  technical changes to the rule text and proposal.
                                              inspection and copying at the principal                 amend rules regarding unlisted trading                Because Amendment No. 2 does not materially alter
                                              office of the Exchange. All comments                    privileges (‘‘UTP’’). The proposed rule               the substance of the proposed rule change or raise
                                                                                                                                                            unique or novel regulatory issues under the Act, it
                                              received will be posted without change.                 change was published for comment in                   is not subject to notice and comment. Amendment
                                              Persons submitting comments are                         the Federal Register on July 6, 2018.4                No. 2 is available at: https://www.sec.gov/
                                              cautioned that we do not redact or edit                 On July 24, 2018, the Exchange                        comments/sr-nyse-2018-30/nyse201830-4274809-
                                              personal identifying information from                   submitted partial Amendment No. 1 to                  173136.pdf.
                                                                                                                                                               7 See Notice, supra note 4.
                                              comment submissions. You should
amozie on DSK3GDR082PROD with NOTICES1




                                                                                                                                                               8 The Exchange represents that its proposed rules
                                              submit only information that you wish                     47 15  U.S.C. 78s(b)(3)(C).
                                                                                                                                                            for the qualification, listing, and trading of these
                                              to make available publicly. All                           48 17  CFR 200.30–3(a)(57) and (58).                products are substantially identical (other than
                                                                                                         1 15 U.S.C. 78s(b)(1).
                                                                                                                                                            certain non-substantive and technical amendments)
                                                                                                         2 17 CFR 240.19b–4.
                                              for consideration of a particular proposal by an                                                              as the rules of NYSE Arca and the Exchange’s other
                                                                                                         3 NMS Stock is defined in Rule 600 of Regulation   affiliates, including NYSE American LLC (‘‘NYSE
                                              SRO. See Securities Acts Amendments of 1975,
                                              Report of the Senate Committee on Banking,              NMS, 17 CFR 242.600(b)(47).                           American’’).
                                              Housing and Urban Affairs to Accompany S. 249,             4 See Securities Exchange Act Release No. 83560       9 Section 303A implements the requirements of

                                              S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).        (June 29, 2018), 83 FR 31585 (‘‘Notice’’).            Rules 10A–3 and 10C–1 under the Act.



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                                                                        Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices                                                 50981

                                              that the initial and continued listing              such ETPs conforms NYSE’s rules to the                    IV. Conclusion
                                              standards contained in those rules may              corresponding provisions of the rules of
                                              apply to the trading pursuant to UTP of             NYSE National, Inc. (‘‘NYSE                                 It is therefore ordered, pursuant to
                                              such ETPs, and make related changes;                National’’).14                                            Section 19(b)(2) of the Act,18 that the
                                              and (5) amend NYSE Rule 5.1(a)(2)                      Additionally, the Commission                           proposed rule change (SR–NYSE–2018–
                                              relating to ETPs trading pursuant to                believes that the deletion of listing rules               30), as modified by Amendment No. 2,
                                              UTP to delete the requirement that the              that would be superseded by the                           be, and hereby is, approved.
                                              Exchange file with the Commission a                 proposed rule change, the proposed                          For the Commission, by the Division of
                                              Form 19b–4(e) with respect to each ETP              amendments to NYSE Rules 5.1(a), and                      Trading and Markets, pursuant to delegated
                                              it trades by UTP, and to make clear that            technical conforming changes are                          authority.19
                                              the Exchange would halt trading in an               appropriate and consistent with Section                   Eduardo A. Aleman,
                                              ETP trading pursuant to UTP as                      6(b)(5) of the Act. These changes would
                                              provided for in NYSE Rule 7.18.                                                                               Assistant Secretary.
                                                                                                  eliminate language that is no longer
                                                                                                                                                            [FR Doc. 2018–21907 Filed 10–9–18; 8:45 am]
                                              III. Discussion and Commission                      relevant and modify the Exchange rules
                                                                                                  to be more precise, thereby leading to                    BILLING CODE 8011–01–P
                                              Findings
                                                                                                  greater clarity for Exchange members,
                                                 After careful review, the Commission             regulators, investors, and the general
                                              finds that the proposed rule change, as             public.                                                   SECURITIES AND EXCHANGE
                                              amended, is consistent with the                                                                               COMMISSION
                                                                                                     In approving the proposed rule
                                              requirements of the Act and the rules
                                                                                                  change, the Commission also relies
                                              and regulations thereunder applicable to                                                                      [Release No. 34–84352; File No. SR–Phlx–
                                                                                                  upon the Exchange’s representation
                                              a national securities exchange.10 In                                                                          2018–61]
                                                                                                  that: (1) Listed ETPs would be subject to
                                              particular, the Commission finds that
                                                                                                  the existing trading surveillances
                                              the proposed rule change is consistent                                                                        Self-Regulatory Organizations; Nasdaq
                                                                                                  administered by the Exchange for ETPs
                                              with Section 6(b) of the Act,11 in                                                                            PHLX LLC; Notice of Filing and
                                              general, and furthers the objectives of             trading UTP, as well as cross-market
                                                                                                  surveillances administered by the                         Immediate Effectiveness of Proposed
                                              Section 6(b)(5) of the Act,12 in                                                                              Rule Change To Amend, Reorganize
                                              particular, in that it is designed to               Financial Industry Regulatory Authority
                                                                                                  (‘‘FINRA’’) on behalf of the Exchange,                    and Enhance Membership,
                                              prevent fraudulent and manipulative
                                                                                                  and (2) the initial and continued listing                 Registration and Qualification Rules
                                              acts and practices, to promote just and
                                                                                                  reviews of ETPs listed on the Exchange                    and To Make Conforming Changes to
                                              equitable principles of trade, to remove
                                                                                                  will be conducted in the same manner                      Certain Other Rules
                                              impediments to and perfect the
                                              mechanism of a free and open market                 as they are on NYSE’s affiliated
                                                                                                  exchange, NYSE Arca.15 Further, the                       October 3, 2018.
                                              and a national market system, and, in
                                              general, to protect investors and the               Exchange    or FINRA, on behalf of the                       Pursuant to Section 19(b)(1) of the
                                              public interest.                                    Exchange, or both, will communicate as                    Securities Exchange Act of 1934
                                                 The Commission believes that the                 needed regarding trading in ETPs, as                      (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                              Exchange’s proposed listing standards               well as certain other securities and                      notice is hereby given that on
                                              for ETPs 13 do not raise any novel issues, financial instruments underlying such                              September 27, 2018, Nasdaq PHLX LLC
                                              as they are consistent with the rules of            ETPs, with other markets and other                        (‘‘Phlx’’ or ‘‘Exchange’’) filed with the
                                              other national securities exchanges. The entities that are members of the                                     Securities and Exchange Commission
                                              proposed rules for the qualification,               Intermarket Surveillance Group (‘‘ISG’’).                 (‘‘SEC’’ or ‘‘Commission’’) the proposed
                                              listing, and trading of ETPs are                    The Exchange or FINRA, on behalf of                       rule change as described in Items I and
                                              substantially identical (other than                 the Exchange, or both, may obtain                         II, below, which Items have been
                                              certain non-substantive and technical               trading information regarding trading in                  prepared by the Exchange. The
                                              changes) to the rules of NYSE Arca and              ETPs and financial instruments from                       Commission is publishing this notice to
                                              NYSE American. Moreover, the                        such markets and other entities. In                       solicit comments on the proposed rule
                                              Exchange’s proposal to make clear that              addition, the Exchange may obtain                         change from interested persons.
                                              the initial and continued listing                   information regarding trading in ETPs,
                                              standards in Rules 5P and 8P do not                 as well as certain other securities and                   I. Self-Regulatory Organization’s
                                              apply to the trading pursuant to UTP of             financial instruments underlying such                     Statement of the Terms of Substance of
                                                                                                  ETPs from markets and other entities                      the Proposed Rule Change
                                                10 In approving this proposed rule change, the    that are members of ISG or with which
                                              Commission has considered the proposed rule’s       the Exchange has in place a                                  The Exchange proposes to amend,
                                              impact on efficiency, competition, and capital                                                                reorganize and enhance its membership,
                                              formation. See 15 U.S.C. 78c(f).
                                                                                                  comprehensive surveillance sharing
                                                11 15 U.S.C. 78f(b).                              agreement.16                                              registration and qualification rules and
                                                12 15 U.S.C. 78f(b)(5).                              The Commission therefore finds that                    to make conforming changes to certain
                                                13 The proposed listing standards of Rules 5P and the proposed rule change, as modified                     other rules.
                                              8P: (1) Provide for the listing of certain ETPs,    by Amendment No. 2, is consistent                            The text of the proposed rule change
                                              provided that an ETP meets the applicable
                                              requirements of NYSE Rules 5P and 8P and does       with, and furthers the objectives of,                     is available on the Exchange’s website at
                                              not have any component NMS Stock that is listed     Section 6(b)(5) of the Act.17                             http://nasdaqphlx.cchwallstreet.com/,
                                              on the Exchange or is based on, or represents an                                                              at the principal office of the Exchange,
amozie on DSK3GDR082PROD with NOTICES1




                                              interest in, an underlying index or reference asset
                                              that includes an NMS Stock listed on the Exchange;
                                                                                                        14 In addition, the Commission believes that the
                                                                                                                                                            and at the Commission’s Public
                                                                                                      proposed changes to NYSE Rule 5.1(a)(2) would         Reference Room.
                                              (2) delete a sentence in NYSE Rule 5.1(a)(1) that is
                                                                                                      further harmonize the Exchange’s rules applicable
                                              no longer relevant given the Exchange’s addition of
                                              Section 303A to the Listed Company Manual; and          to ETPs traded on a UTP basis with the rules of
                                              (3) delete all references in NYSE Rules 5P and 8P       NYSE National.                                          18 15 U.S.C. 78s(b)(2).
                                                                                                        15 See Notice, supra note 4, at 31587–31588.          19 17 CFR 200.30–3(a)(12).
                                              that imply that the initial and continued listing
                                                                                                        16 See id. at 31587.                                  1 15 U.S.C. 78s(b)(1).
                                              standards contained in those rules may apply to the
                                              trading pursuant to UTP of such ETPs.                     17 15 U.S.C. 78f(b)(5).                               2 17 CFR 240.19b–4.




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Document Created: 2018-10-10 17:38:09
Document Modified: 2018-10-10 17:38:09
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 50980 

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