83 FR 51531 - In the Matter of the NYSE Arca, Inc. For an Order of Disapproval of Proposed Rule Change Relating To Listing and Trading of the Direxion Daily Bitcoin Bear 1X Shares, Direxion Daily Bitcoin 1.25X Bull Shares, Direxion Daily Bitcoin 1.5X Bull Shares, Direxion Daily Bitcoin 2X Bull Shares, and Direxion Daily Bitcoin 2X Bear Shares Under NYSE Arca Rule 8.200-E (File No. SR-NYSEArca-2018-02); Order Scheduling Filing of Statements on Review
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 197 (October 11, 2018)
Federal Register Volume 83, Issue 197 (October 11, 2018)
| Page Range | 51531-51532 | |
| FR Document | 2018-22093 |
[Federal Register Volume 83, Number 197 (Thursday, October 11, 2018)] [Notices] [Pages 51531-51532] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-22093] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Securities Exchange Act of 1934; Release No. 34-84370/October 4, 2018] In the Matter of the NYSE Arca, Inc. For an Order of Disapproval of Proposed Rule Change Relating To Listing and Trading of the Direxion Daily Bitcoin Bear 1X Shares, Direxion Daily Bitcoin 1.25X Bull Shares, Direxion Daily Bitcoin 1.5X Bull Shares, Direxion Daily Bitcoin 2X Bull Shares, and Direxion Daily Bitcoin 2X Bear Shares Under NYSE Arca Rule 8.200-E (File No. SR-NYSEArca-2018-02); Order Scheduling Filing of Statements on Review On January 4, 2018, NYSE Arca, Inc. (``NYSE Arca'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade shares of the following exchange-traded products under NYSE Arca Rule 8.200-E, Commentary .02: Direxion Daily Bitcoin Bear 1X Shares, Direxion Daily Bitcoin 1.25X Bull Shares, Direxion Daily Bitcoin 1.5X Bull Shares, Direxion Daily Bitcoin 2X Bull Shares, and Direxion Daily Bitcoin 2X Bear Shares. The proposed rule change was published for comment in the Federal Register on January 24, 2018.\3\ --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 82484 (Jan. 11, 2018), 83 FR 2704 (Jan. 18, 2018). --------------------------------------------------------------------------- On March 1, 2018, pursuant to Section 19(b)(2) of the Exchange Act, the Commission designated a longer 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.\4\ On April 23, 2018, the Commission instituted proceedings under Section 19(b)(2)(B) of the Exchange Act \5\ to determine whether to approve or disapprove the proposed rule change.\6\ On July 18, 2018, the Commission extended the period for consideration of the proposed rule change to September 21, 2018.\7\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 82759 (Feb. 22, 2018), 83 FR 8719 (Feb. 28, 2018). \5\ 15 U.S.C. 78s(b)(2)(B). \6\ See Securities Exchange Act Release No. 82995 (Apr. 5, 2018), 83 FR 15425 (Apr. 10, 2018). \7\ See Securities Exchange Act Release No. 83661 (July 18, 2018), 83 FR 35040 (July 24, 2018). --------------------------------------------------------------------------- On August 22, 2018, the Division of Trading and Markets, pursuant to [[Page 51532]] delegated authority,\8\ issued an order disapproving the proposed rule change.\9\ On August 23, 2018, the Secretary of the Commission notified NYSEArca that, pursuant to Commission Rule of Practice 431,\10\ the Commission would review the Division's action pursuant to delegated authority and that the Division's action pursuant to delegated authority had been automatically stayed.\11\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). \9\ See Securities Exchange Act Release No. 83913 (Aug. 22, 2018), 83 FR 43923 (Aug. 28, 2018) (SR-CboeBZX-2018-001). \10\ See 17 CFR 201.431. \11\ See Letter from Secretary of the Commission to Eugene Schlanger, Counsel, NYSE Group, Inc. (Aug. 23, 2018), available at https://www.sec.gov/rules/sro/nysearca/2018/34-83912-letter-from-secretary.pdf. --------------------------------------------------------------------------- Accordingly, it is ordered, pursuant to Commission Rule of Practice 431, that by November 5, 2018, any party or other person may file a statement in support of, or in opposition to, the action made pursuant to delegated authority. It is further ordered that the order disapproving proposed rule change SR-CboeBZX-2018-001 shall remain in effect pending the Commission's review. By the Commission. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-22093 Filed 10-10-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 197 / Thursday, October 11, 2018 / Notices 51531
19(b)(3)(A) of the Act 10 and Rule 19b– number should be included on the SECURITIES AND EXCHANGE
4(f)(6) thereunder. subject line if email is used. To help the COMMISSION
A proposed rule change filed under Commission process and review your
Rule 19b–4(f)(6) normally does not comments more efficiently, please use [Securities Exchange Act of 1934; Release
become operative for 30 days from the only one method. The Commission will No. 34–84370/October 4, 2018]
date of filing. However, Rule 19b– post all comments on the Commission’s
4(f)(6)(iii) 11 permits the Commission to internet website (http://www.sec.gov/ In the Matter of the NYSE Arca, Inc. For
designate a shorter time if such action rules/sro.shtml). Copies of the an Order of Disapproval of Proposed
is consistent with the protection of submission, all subsequent Rule Change Relating To Listing and
investors and the public interest. The amendments, all written statements
Trading of the Direxion Daily Bitcoin
Exchange has asked the Commission to Bear 1X Shares, Direxion Daily Bitcoin
with respect to the proposed rule
waive the 30-day operative delay so that 1.25X Bull Shares, Direxion Daily
change that are filed with the
the proposal may become operative on Bitcoin 1.5X Bull Shares, Direxion
October 1, 2018 to coincide with the Commission, and all written Daily Bitcoin 2X Bull Shares, and
effective date of FINRA’s proposed rule communications relating to the Direxion Daily Bitcoin 2X Bear Shares
change on which the proposal is proposed rule change between the Under NYSE Arca Rule 8.200–E (File
based.12 The waiver of the operative Commission and any person, other than No. SR–NYSEArca–2018–02); Order
delay would make the Exchange’s those that may be withheld from the Scheduling Filing of Statements on
qualification requirements consistent public in accordance with the Review
with those of FINRA, as of October 1, provisions of 5 U.S.C. 552, will be
2018. Therefore, the Commission available for website viewing and On January 4, 2018, NYSE Arca, Inc.
believes that the waiver of the 30-day printing in the Commission’s Public (‘‘NYSE Arca’’) filed with the Securities
operative delay is consistent with the Reference Room, 100 F Street NE, and Exchange Commission
protection of investors and the public Washington, DC 20549, on official (‘‘Commission’’), pursuant to Section
interest and hereby waives the 30-day business days between the hours of 19(b)(1) of the Securities Exchange Act
operative delay and designates the of 1934 (‘‘Exchange Act’’) 1 and Rule
10:00 a.m. and 3:00 p.m. Copies of the
proposal operative on October 1, 2018.13 19b–4 thereunder,2 a proposed rule
filing also will be available for
At any time within 60 days of the change to list and trade shares of the
inspection and copying at the principal following exchange-traded products
filing of the proposed rule change, the office of the Exchange. All comments
Commission summarily may under NYSE Arca Rule 8.200–E,
received will be posted without change. Commentary .02: Direxion Daily Bitcoin
temporarily suspend such rule change if Persons submitting comments are
it appears to the Commission that such Bear 1X Shares, Direxion Daily Bitcoin
cautioned that we do not redact or edit 1.25X Bull Shares, Direxion Daily
action is necessary or appropriate in the personal identifying information from
public interest, for the protection of Bitcoin 1.5X Bull Shares, Direxion Daily
submissions. You should submit only Bitcoin 2X Bull Shares, and Direxion
investors, or otherwise in furtherance of
information that you wish to make Daily Bitcoin 2X Bear Shares. The
the purposes of the Act.
available publicly. All submissions proposed rule change was published for
IV. Solicitation of Comments should refer to File Number SR–MIAX– comment in the Federal Register on
Interested persons are invited to 2018–26 and should be submitted on or January 24, 2018.3
submit written data, views, and before November 1, 2018. On March 1, 2018, pursuant to
arguments concerning the foregoing, For the Commission, by the Division of Section 19(b)(2) of the Exchange Act,
including whether the proposed rule Trading and Markets, pursuant to delegated the Commission designated a longer
change is consistent with the Act. authority.14 period within which to approve the
Comments may be submitted by any of proposed rule change, disapprove the
Eduardo A. Aleman,
the following methods: proposed rule change, or institute
Assistant Secretary. proceedings to determine whether to
Electronic Comments [FR Doc. 2018–22044 Filed 10–10–18; 8:45 am] approve or disapprove the proposed
• Use the Commission’s internet BILLING CODE 8011–01–P rule change.4 On April 23, 2018, the
comment form (http://www.sec.gov/ Commission instituted proceedings
rules/sro.shtml); or under Section 19(b)(2)(B) of the
• Send an email to rule-comments@ Exchange Act 5 to determine whether to
sec.gov. Please include File Number SR– approve or disapprove the proposed
MIAX–2018–26 on the subject line. rule change.6 On July 18, 2018, the
Paper Comments Commission extended the period for
consideration of the proposed rule
• Send paper comments in triplicate change to September 21, 2018.7
to Brent J. Fields, Secretary, Securities On August 22, 2018, the Division of
and Exchange Commission, 100 F Street Trading and Markets, pursuant to
NE, Washington, DC 20549–1090.
All submissions should refer to File 1 15 U.S.C. 78s(b)(1).
Number SR–MIAX–2018–26. This file 2 17 CFR 240.19b–4.
khammond on DSK30JT082PROD with NOTICES
3 See Securities Exchange Act Release No. 82484
10 15 U.S.C. 78s(b)(3)(A). (Jan. 11, 2018), 83 FR 2704 (Jan. 18, 2018).
11 17 4 See Securities Exchange Act Release No. 82759
CFR 240.19b–4(f)(6)(iii).
12 See supra note 3. (Feb. 22, 2018), 83 FR 8719 (Feb. 28, 2018).
13 For purposes only of waiving the 30-day 5 15 U.S.C. 78s(b)(2)(B).
6 See Securities Exchange Act Release No. 82995
operative delay, the Commission has also
considered the proposed rule’s impact on (Apr. 5, 2018), 83 FR 15425 (Apr. 10, 2018).
efficiency, competition, and capital formation. See 7 See Securities Exchange Act Release No. 83661
15 U.S.C. 78c(f). 14 17 CFR 200.30–3(a)(12). (July 18, 2018), 83 FR 35040 (July 24, 2018).
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![51532 Federal Register / Vol. 83, No. 197 / Thursday, October 11, 2018 / Notices
delegated authority,8 issued an order rule change under paragraph (f)(6) of A. Self-Regulatory Organization’s
disapproving the proposed rule change.9 Rule 19b–4 under the Act,3 which Statement of the Purpose of, and
On August 23, 2018, the Secretary of the renders the proposal effective upon Statutory Basis for, the Proposed Rule
Commission notified NYSEArca that, receipt of this filing by the Commission. Change
pursuant to Commission Rule of The Commission is publishing this 1. Purpose
Practice 431,10 the Commission would notice to solicit comments on the
review the Division’s action pursuant to proposed rule change from interested a. Background
delegated authority and that the persons. FINRA Capital Acquisition Broker Rules
Division’s action pursuant to delegated
authority had been automatically I. Self-Regulatory Organization’s On August 18, 2016, the SEC
stayed.11 Statement of the Terms of Substance of approved 4 a separate set of FINRA rules
Accordingly, it is ordered, pursuant to the Proposed Rule Change for firms that meet the definition of a
Commission Rule of Practice 431, that ‘‘capital acquisition broker’’ and that
by November 5, 2018, any party or other FINRA is proposing to amend Capital elect to be governed under this rule set.
person may file a statement in support Acquisition Broker (‘‘CAB’’) Rule 331 CABs are member firms that engage in
of, or in opposition to, the action made (Anti-Money Laundering Compliance a limited range of activities, essentially
pursuant to delegated authority. Program) to reflect the Financial Crimes advising companies and private equity
It is further ordered that the order Enforcement Network’s (‘‘FinCEN’’) funds on capital raising and corporate
disapproving proposed rule change SR– adoption of a final rule on Customer restructuring, and acting as placement
CboeBZX–2018–001 shall remain in agents for sales of unregistered
Due Diligence Requirements for
effect pending the Commission’s review. securities to institutional investors
Financial Institutions (‘‘CDD Rule’’).
under limited conditions. Member firms
By the Commission. Specifically, the proposed amendments that elect to be governed under the CAB
Eduardo A. Aleman, would conform CAB Rule 331 to the rule set are not permitted, among other
Assistant Secretary. CDD Rule’s amendments to the things, to carry or maintain customer
[FR Doc. 2018–22093 Filed 10–10–18; 8:45 am] minimum regulatory requirements for accounts, handle customers’ funds or
BILLING CODE 8011–01–P CABs’ anti-money laundering (‘‘AML’’) securities, accept customers’ trading
compliance programs by requiring such orders, or engage in proprietary trading
programs to include risk-based or market making.
SECURITIES AND EXCHANGE procedures for conducting ongoing The CAB Rules became effective on
COMMISSION customer due diligence. This ongoing April 14, 2017. In order to provide new
customer due diligence element for CAB applicants with lead time to apply
[Release No. 34–84363; File No. SR–FINRA–
2018–035] AML programs includes: (1) for FINRA membership and obtain the
Understanding the nature and purpose necessary qualifications and
Self-Regulatory Organizations; of customer relationships for the registrations, CAB Rules 101–125
Financial Industry Regulatory purpose of developing a customer risk became effective on January 3, 2017.5
Authority, Inc.; Notice of Filing and profile; and (2) conducting ongoing FinCEN Customer Due Diligence Rule
Immediate Effectiveness of a Proposed monitoring to identify and report
Rule Change To Amend CAB Rule 331 The Bank Secrecy Act 6 (‘‘BSA’’),
suspicious transactions and, on a risk among other things, requires financial
(Anti-Money Laundering Compliance basis, to maintain and update customer
Program) To Conform to FinCEN’s institutions,7 including broker-dealers
information. that have elected CAB status, to develop
Final Rule on Customer Due Diligence
Requirements for Financial Institutions The text of the proposed rule change and implement AML programs that, at
is available at the Commission’s Public a minimum, meet the statutorily
October 4, 2018. Reference Room, on FINRA’s website at enumerated ‘‘four pillars.’’ 8 These four
Pursuant to Section 19(b)(1) of the http://www.finra.org, and at the pillars currently require broker-dealers
Securities Exchange Act of 1934 principal office of FINRA. to have written AML programs that
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 include, at a minimum:
notice is hereby given that on II. Self-Regulatory Organization’s • The establishment and
September 20, 2018, Financial Industry Statement of the Purpose of, and implementation of policies, procedures
Regulatory Authority, Inc. (‘‘FINRA’’) Statutory Basis for, the Proposed Rule and internal controls reasonably
filed with the Securities and Exchange Change
4 See Securities Exchange Act Release No. 78617
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described In its filing with the Commission, (August 18, 2016), 81 FR 57948 (August 24, 2016)
FINRA included statements concerning (SR–FINRA–2015–054) (Order Approving Rule
in Items I, II, and III below, which Items Change as Modified by Amendment Nos. 1 and 2
have been prepared by FINRA. FINRA the purpose of and basis for the To Adopt FINRA Capital Acquisition Broker Rules).
has designated the proposed rule change proposed rule change and discussed any 5 On September 29, 2017, the SEC approved CAB
as constituting a ‘‘non-controversial’’ comments it received on the proposed Rule 203 (Engaging in Distribution and Solicitation
rule change. The text of these statements Activities with Government Entities) and CAB Rule
458 (Books and Records Requirements for
8 17 CFR 200.30–3(a)(12). may be examined at the places specified Government Distribution and Solicitation
9 See Securities Exchange Act Release No. 83913 in Item IV below. FINRA has prepared Activities), which applied established ‘‘pay-to-
(Aug. 22, 2018), 83 FR 43923 (Aug. 28, 2018) (SR– play’’ and related recordkeeping rules to the
summaries, set forth in sections A, B,
khammond on DSK30JT082PROD with NOTICES
CboeBZX–2018–001). activities of CABs. See Securities Exchange Act
10 See 17 CFR 201.431. and C below, of the most significant Release No. 81781 (September 29, 2017), 82 FR
11 See Letter from Secretary of the Commission to aspects of such statements. 46559 (October 5, 2017) (Order Approving File No.
Eugene Schlanger, Counsel, NYSE Group, Inc. (Aug. SR–FINRA–2017–027). CAB Rules 203 and 458
23, 2018), available at https://www.sec.gov/rules/ became effective on December 6, 2017.
sro/nysearca/2018/34-83912-letter-from- 6 31 U.S.C. 5311 et seq.
secretary.pdf. 7 See 31 U.S.C. 5312(a)(2) (defining ‘‘financial
1 15 U.S.C. 78s(b)(1). institution’’).
2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 8 31 U.S.C. 5318(h)(1).
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Document Created: 2018-10-11 15:35:02
Document Modified: 2018-10-11 15:35:02
| 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 51531 |
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