83 FR 51747 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of Amendment Nos. 2 and 4 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment Nos. 2 and 4, To Amend BZX Rule 14.8, General Listings Requirements-Tier I, To Adopt Listing Standards for Closed-End Funds
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 198 (October 12, 2018)
Federal Register Volume 83, Issue 198 (October 12, 2018)
| Page Range | 51747-51749 | |
| FR Document | 2018-22206 |
[Federal Register Volume 83, Number 198 (Friday, October 12, 2018)] [Notices] [Pages 51747-51749] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-22206] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84377; File No. SR-CboeBZX-2018-047] Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of Amendment Nos. 2 and 4 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment Nos. 2 and 4, To Amend BZX Rule 14.8, General Listings Requirements--Tier I, To Adopt Listing Standards for Closed-End Funds October 5, 2018. I. Introduction On June 21, 2018, Cboe BZX Exchange, Inc. (``BZX'' 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 amend BZX Rule 14.8, General Listings Requirements--Tier I, to adopt listing standards for Closed-End Funds. The proposed rule change was published for comment in the Federal Register on July 11, 2018.\3\ On August 24, 2018, pursuant to Section 19(b)(2) of the Act,\4\ 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 disapprove the proposed rule change.\5\ On August 28, 2018, the Exchange filed Amendment No. 1 to the proposed rule change, which amended and replaced the proposed rule change as originally filed. On September 24, 2018, the Exchange filed Amendment No. 2 to the proposed rule change, which amended and replaced the proposed rule change, as modified by Amendment No. 1.\6\ On October 3, 2018, the Exchange filed and withdrew Amendment No. 3 to the proposed rule change and filed Amendment No. 4 to the proposed rule change.\7\ The Commission has received no comments on the proposed rule change. The Commission is publishing this notice to solicit comments on Amendment Nos. 2 and 4 from interested persons, and is approving the proposed rule change, as modified by Amendment Nos. 2 and 4, 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. 83596 (July 5, 2018), 83 FR 32162. \4\ 15 U.S.C. 78s(b)(2). \5\ See Securities Exchange Act Release No. 83938, 83 FR 44403 (August 30, 2018). The Commission designated October 9, 2018 as the date by which the Commission shall approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change. \6\ In Amendment No. 2, the Exchange: (i) Noted that the proposed quantitative listing standards differ from the listing standards for closed-end funds on NYSE American LLC (``NYSE American'') in two ways and described those differences; (ii) reorganized the proposed definitions of ``Public Distribution'' and ``Public Shareholders;'' (iii) specified the meaning of ``market value'' for purposes of Closed-End Funds (as defined herein); (iv) amended the proposed Market Maker requirement; (v) proposed additional continued listing standards; (vi) modified the proposed trading hours for Closed-End Funds; (vii) noted that BZX Rule 14.6 also provides certain conditions under which the Exchange will halt trading in a Closed-End Fund; (viii) represented that Closed-End Funds will be subject to the Exchange's surveillance procedures for ETPs and other equity securities traded on the Exchange; (ix) represented that the governance requirements for Closed-End Funds would be substantially similar to those applicable to closed-end funds on the Nasdaq Stock Market LLC (``Nasdaq''); and (x) made technical and conforming changes. Amendment No. 2 is available at: https://www.sec.gov/comments/sr-cboebzx-2018-047/srcboebzx2018047-4447313-175711.pdf. \7\ In Amendment No. 4, the Exchange corrected two typographical errors from Amendment No. 2. Amendment No. 4 is available at: https://www.sec.gov/comments/sr-cboebzx-2018-047/srcboebzx2018047-4474562-175863.pdf. --------------------------------------------------------------------------- II. Description of the Proposal, as Modified by Amendment Nos. 2 and 4 8 --------------------------------------------------------------------------- \8\ For a full description of the proposal, see Amendment No. 2, supra note 6 and Amendment No. 4, supra note 7. --------------------------------------------------------------------------- The Exchange proposes to amend BZX Rule 14.8 \9\ to adopt listing [[Page 51748]] standards for Closed-End Funds,\10\ which are based on existing listing standards applicable to closed-end funds listed on NYSE American.\11\ --------------------------------------------------------------------------- \9\ Specifically, the Exchange proposes to add new paragraphs (e) and (i) under BZX Rule 14.8 related to the initial and continued listing standards, respectively, for Closed-End Funds. The Exchange also proposes to renumber certain existing paragraphs in BZX Rule 14.8 in order to accommodate these new paragraphs. \10\ As proposed in BZX Rule 14.8(a), the term ``Closed-End Funds'' means closed-end management investment companies registered under the Investment Company Act of 1940. \11\ The Exchange notes that the proposed quantitative listing standards are substantively identical to the listing standards applicable to closed-end funds on NYSE American (``NYSE American CEF Rules''), with two exceptions. Specifically, the proposed quantitative listing standards are substantively identical to Sections 101(g), 102(a), and 1003(b)(i) and (v) in the NYSE American Company Guide. In addition, the Exchange proposes to require that a Closed-End Fund has a minimum of four registered and active Market Makers, and that a Closed-End Fund has a minimum bid price of at least $4 per share initially and at least $1 per share on an ongoing basis. These additional requirements are consistent with the Exchange's listing standards for corporate securities under current BZX Rules 14.8(b)(1)(A), 14.8(e)(1)(A), 14.8(b)(2)(C)(iii), and 14.8(e)(2)(B)(iv). --------------------------------------------------------------------------- For initial listing, a Closed-End Fund must meet the requirements for either an individual Closed-End Fund (``Individual CEF Standard'') or a Group \12\ of Closed-End Funds (``Group CEF Standard''). The Individual CEF Standard requires: --------------------------------------------------------------------------- \12\ As defined in proposed BZX Rule 14.8(e)(2)(B), a ``Group'' is a group of Closed-End Funds which are or will be listed on the Exchange, and which are managed by a common investment adviser or investment advisers who are ``affiliated persons'' as defined in Section 2(a)(3) of the Investment Company Act of 1940 as amended. --------------------------------------------------------------------------- (i) A Public Distribution \13\ of: (a) At least 500,000 shares where there are at least 800 Public Shareholders,\14\ except that companies that are not banks whose securities are concentrated in a limited geographical area, or whose securities are largely held in block by institutional investors, are normally not considered eligible for listing unless the Public Distribution appreciably exceeds 500,000 shares; \15\ or (b) at least 1,000,000 shares where there are at least 400 Public Shareholders; --------------------------------------------------------------------------- \13\ As defined in proposed BZX Rule 14.8(e)(1)(B), the term ``Public Distribution'' means the public distribution including only Public Shareholders. \14\ As defined in proposed BZX Rule 14.8(e)(1)(A), the term ``Public Shareholders'' includes both shareholders of record and beneficial holders, but is exclusive of the holdings of officers, directors, controlling shareholders, and other concentrated (i.e., 10% or greater), affiliated or family holdings. \15\ As proposed, where the Public Distribution appreciably exceeds 500,000 shares for companies that are not banks whose securities are concentrated in a limited geographical area, or whose securities are largely held in block by institutional investors, the 800 Public Shareholders requirement would also apply. --------------------------------------------------------------------------- (ii) A Public Distribution with a market value \16\ or net assets of at least $20 million; --------------------------------------------------------------------------- \16\ For purposes of Closed-End Funds, the term ``market value'' means the official closing price multiplied by the unit of count. --------------------------------------------------------------------------- (iii) Minimum bid price of at least $4 per share; and (iv) At least four registered and active Market Makers.\17\ --------------------------------------------------------------------------- \17\ See proposed BZX Rule 14.8(e)(2)(A). --------------------------------------------------------------------------- The Group CEF Standard requires: (i) The Group has a Public Distribution with a market value or net assets of at least $75 million; (ii) The Closed-End Funds in the Group have a Public Distribution with an average market value or average net assets of at least $15 million; (iii) Each Closed-End Fund in the Group has a Public Distribution with a market value or net assets of at least $10 million; and (iv) Each Closed-End Fund in the Group has: (a) A Public Distribution of: (1) At least 500,000 shares where there are at least 800 Public Shareholders, except that companies that are not banks whose securities are concentrated in a limited geographical area, or whose securities are largely held in block by institutional investors, are normally not considered eligible for listing unless the Public Distribution appreciably exceeds 500,000 shares; \18\ or (2) at least 1,000,000 shares where there are at least 400 Public Shareholders; --------------------------------------------------------------------------- \18\ See supra note 15. --------------------------------------------------------------------------- (b) Minimum bid price of at least $4 per share; and (c) At least four registered and active Market Makers.\19\ --------------------------------------------------------------------------- \19\ See proposed BZX Rule 14.8(e)(2)(B). --------------------------------------------------------------------------- The Exchange will consider the suspension of trading in and will initiate delisting proceedings (and such Closed-End Fund will not be eligible to follow the cure procedures outlined in BZX Rule 14.12) for a Closed-End Fund where: (i) The market value of the Public Distribution and net assets each are less than $5 million for more than 60 consecutive days; (ii) The Closed-End Fund no longer qualifies as a closed-end fund under the Investment Company Act of 1940 (unless the resultant entity otherwise qualifies for listing); (iii) The Public Distribution is less than 200,000; (iv) The total number of Public Shareholders is less than 300; (v) The Public Distribution has a market value of less than $1 million for more than 90 consecutive days; (vi) The bid price is less than $1 per share; or (vii) There are fewer than four registered and active Market Makers.\20\ --------------------------------------------------------------------------- \20\ See proposed BZX Rule 14.8(i). --------------------------------------------------------------------------- Closed-End Funds listed on the Exchange will be subject to the governance requirements in BZX Rule 14.10 applicable to all management investment companies listed on the Exchange, except as provided in the exceptions to certain governance requirements for management investment companies under BZX Rule 14.10(e)(1)(E) and Interpretation and Policy .13 of BZX Rule 14.10. The Exchange notes that the governance requirements for Closed-End Funds are substantially similar to those applicable to closed-end funds listed on Nasdaq.\21\ --------------------------------------------------------------------------- \21\ See Nasdaq Rule 5600 series. --------------------------------------------------------------------------- Closed-End Funds will be subject to the Exchange's existing rules governing the trading of equity securities. The Exchange will allow trading in Closed-End Funds from 8:00 a.m. until 8:00 p.m. Eastern Time \22\ and the Exchange represents that it has appropriate rules to facilitate such transactions during all trading sessions. The Exchange may consider all relevant factors in exercising its discretion to halt or suspend trading in a Closed-End Fund. The Exchange will halt trading in a Closed-End Fund under the conditions specified in BZX Rule 11.18 (Trading Halts Due to Extraordinary Market Volatility). BZX Rule 14.6 (Obligations for Companies Listed on the Exchange) also provides certain conditions under which the Exchange will halt trading in a Closed-End Fund. Trading may also be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in the shares inadvisable. These include whether unusual conditions or circumstances detrimental to the maintenance of a fair and orderly market are present. --------------------------------------------------------------------------- \22\ The Exchange notes that this includes three trading sessions on the Exchange: The Pre-Opening Session from 8:00 a.m. to 9:30 a.m. Eastern Time; Regular Trading Hours from 9:30 a.m. to 4:00 p.m. Eastern Time; and the After Hours Trading Session from 4:00 p.m. to 8:00 p.m. Eastern Time. --------------------------------------------------------------------------- Trading of Closed-End Funds on the Exchange will be subject to the Exchange's surveillance procedures for ETPs and other equity securities traded on the Exchange. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of Closed-End Funds on the Exchange during all trading sessions and to deter and detect violations of Exchange rules and the applicable federal securities laws. III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change, as modified by Amendment Nos. 2 and 4, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national [[Page 51749]] securities exchange.\23\ In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,\24\ which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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, and that the rules are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \23\ 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). \24\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission notes that the proposed initial and continued listing standards for Closed-End Funds under BZX Rule 14.8 are substantively identical to the listing standards for closed-end funds currently utilized by NYSE American, with the exceptions of two additional requirements proposed by the Exchange.\25\ The Commission also notes that the Exchange's governance requirements that will be applicable to Closed-End Funds are substantially similar to those applicable to closed-end funds listed on Nasdaq.\26\ As discussed above, Closed-End Funds will be subject to the Exchange's existing rules governing the trading of equity securities, and the Exchange believes that its surveillance procedures are adequate to properly monitor the trading of Closed-End Funds on the Exchange during all trading sessions and to deter and detect violations of Exchange rules and applicable federal securities laws. --------------------------------------------------------------------------- \25\ As discussed above, in addition to the listing standards for closed-end funds currently utilized by NYSE American, the Exchange would require that a Closed-End Fund has a minimum of four registered and active Market Makers, and that a Closed-End Fund has a minimum bid price of at least $4 per share initially and at least $1 per share on an ongoing basis. These two additional requirements are consistent with the Exchange's listing standards for corporate securities. See supra note 11. \26\ See supra note 21. --------------------------------------------------------------------------- Based on the foregoing, the Commission believes that the proposal presents no novel regulatory issues and finds the proposal to be consistent with the Act. IV. Solicitation of Comments on Amendment Nos. 2 and 4 to the Proposed Rule Change Interested persons are invited to submit written data, views, and arguments concerning whether Amendment Nos. 2 and 4 are consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CboeBZX-2018-047 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-CboeBZX-2018-047. 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 such 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-CboeBZX-2018-047 and should be submitted on or before November 2, 2018. V. Accelerated Approval of Proposed Rule Change, as Modified by Amendment Nos. 2 and 4 The Commission finds good cause to approve the proposed rule change, as modified by Amendment Nos. 2 and 4, prior to the thirtieth day after the date of publication of notice of the filing of Amendment Nos. 2 and 4 in the Federal Register. The Commission notes that Amendment No. 2 enhanced consistency between the Exchange's proposed listing standards and the existing listing standards for closed-end funds on other exchanges, as well as the existing listing standards for corporate securities on the Exchange. Amendment No. 2 also provided additional description of the proposed listing standards, trading rules, and surveillance procedures, and made technical and conforming changes. The changes in Amendment No. 2 assisted the Commission in finding that the proposal is consistent with the Act. The Commission notes that Amendment No. 4 only corrected two typographical errors. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,\27\ to approve the proposed rule change, as modified by Amendment Nos. 2 and 4, on an accelerated basis. --------------------------------------------------------------------------- \27\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\28\ that the proposed rule change (SR-CboeBZX-2018-047), as modified by Amendment Nos. 2 and 4, be, and hereby is, approved on an accelerated basis. --------------------------------------------------------------------------- \28\ Id. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\29\ --------------------------------------------------------------------------- \29\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-22206 Filed 10-11-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 198 / Friday, October 12, 2018 / Notices 51747
thereunder. Although there do not Washington, DC 20549 on official to approve the proposed rule change,
appear to be any issues relevant to business days between the hours of disapprove the proposed rule change, or
approval or disapproval that would be 10:00 a.m. and 3:00 p.m. Copies of the institute proceedings to determine
facilitated by an oral presentation of filing also will be available for whether to disapprove the proposed
views, data, and arguments, the inspection and copying at the principal rule change.5 On August 28, 2018, the
Commission will consider, pursuant to office of the Exchange. All comments Exchange filed Amendment No. 1 to the
Rule 19b–4 under the Act,26 any request received will be posted without change. proposed rule change, which amended
for an opportunity to make an oral Persons submitting comments are and replaced the proposed rule change
presentation.27 cautioned that we do not redact or edit as originally filed. On September 24,
Interested persons are invited to personal identifying information from 2018, the Exchange filed Amendment
submit written data, views, and comment submissions. You should No. 2 to the proposed rule change,
arguments regarding whether the submit only information that you wish which amended and replaced the
proposed rule change, as modified by to make available publicly. All proposed rule change, as modified by
Amendment No. 1, should be approved submissions should refer to File Amendment No. 1.6 On October 3, 2018,
or disapproved by November 2, 2018. Number SR–CboeBZX–2018–044 and the Exchange filed and withdrew
Any person who wishes to file a rebuttal should be submitted by October 29, Amendment No. 3 to the proposed rule
to any other person’s submission must 2018. Rebuttal comments should be change and filed Amendment No. 4 to
file that rebuttal by November 16, 2018. submitted by November 16, 2018. the proposed rule change.7 The
Comments may be submitted by any Commission has received no comments
For the Commission, by the Division of
of the following methods: on the proposed rule change. The
Trading and Markets, pursuant to delegated
Electronic Comments authority.28 Commission is publishing this notice to
solicit comments on Amendment Nos. 2
• Use the Commission’s internet Eduardo A. Aleman,
and 4 from interested persons, and is
comment form (http://www.sec.gov/ Assistant Secretary.
approving the proposed rule change, as
rules/sro.shtml); or [FR Doc. 2018–22207 Filed 10–11–18; 8:45 am]
modified by Amendment Nos. 2 and 4,
• Send an email to rule-comments@ BILLING CODE 8011–01–P
on an accelerated basis.
sec.gov. Please include File Number SR–
CboeBZX–2018–044 on the subject line. II. Description of the Proposal, as
SECURITIES AND EXCHANGE Modified by Amendment Nos. 2 and 4 8
Paper Comments COMMISSION The Exchange proposes to amend
• Send paper comments in triplicate
[Release No. 34–84377; File No. SR– BZX Rule 14.8 9 to adopt listing
to Secretary, Securities and Exchange
CboeBZX–2018–047]
Commission, 100 F Street NE, 5 See Securities Exchange Act Release No. 83938,
Washington, DC 20549–1090. Self-Regulatory Organizations; Cboe 83 FR 44403 (August 30, 2018). The Commission
All submissions should refer to File designated October 9, 2018 as the date by which the
BZX Exchange, Inc.; Notice of Filing of Commission shall approve or disapprove, or
Number SR–CboeBZX–2018–044. This Amendment Nos. 2 and 4 and Order institute proceedings to determine whether to
file number should be included on the Granting Accelerated Approval of a disapprove, the proposed rule change.
subject line if email is used. To help the Proposed Rule Change, as Modified by 6 In Amendment No. 2, the Exchange: (i) Noted
Commission process and review your Amendment Nos. 2 and 4, To Amend that the proposed quantitative listing standards
comments more efficiently, please use differ from the listing standards for closed-end
BZX Rule 14.8, General Listings funds on NYSE American LLC (‘‘NYSE American’’)
only one method. The Commission will Requirements—Tier I, To Adopt Listing in two ways and described those differences; (ii)
post all comments on the Commission’s Standards for Closed-End Funds reorganized the proposed definitions of ‘‘Public
internet website (http://www.sec.gov/ Distribution’’ and ‘‘Public Shareholders;’’ (iii)
rules/sro.shtml). Copies of the October 5, 2018. specified the meaning of ‘‘market value’’ for
purposes of Closed-End Funds (as defined herein);
submission, all subsequent I. Introduction (iv) amended the proposed Market Maker
amendments, all written statements requirement; (v) proposed additional continued
with respect to the proposed rule On June 21, 2018, Cboe BZX listing standards; (vi) modified the proposed trading
change that are filed with the Exchange, Inc. (‘‘BZX’’ or ‘‘Exchange’’) hours for Closed-End Funds; (vii) noted that BZX
filed with the Securities and Exchange Rule 14.6 also provides certain conditions under
Commission, and all written which the Exchange will halt trading in a Closed-
communications relating to the Commission (‘‘Commission’’), pursuant End Fund; (viii) represented that Closed-End Funds
proposed rule change between the to Section 19(b)(1) of the Securities will be subject to the Exchange’s surveillance
Commission and any person, other than Exchange Act of 1934 (‘‘Act’’) 1 and Rule procedures for ETPs and other equity securities
19b–4 thereunder,2 a proposed rule traded on the Exchange; (ix) represented that the
those that may be withheld from the governance requirements for Closed-End Funds
public in accordance with the change to amend BZX Rule 14.8, would be substantially similar to those applicable
provisions of 5 U.S.C. 552, will be General Listings Requirements—Tier I, to closed-end funds on the Nasdaq Stock Market
available for website viewing and to adopt listing standards for Closed- LLC (‘‘Nasdaq’’); and (x) made technical and
End Funds. The proposed rule change conforming changes. Amendment No. 2 is available
printing in the Commission’s Public at: https://www.sec.gov/comments/sr-cboebzx-2018-
Reference Room, 100 F Street NE, was published for comment in the 047/srcboebzx2018047-4447313-175711.pdf.
Federal Register on July 11, 2018.3 On 7 In Amendment No. 4, the Exchange corrected
26 17 CFR 240.19b–4. August 24, 2018, pursuant to Section two typographical errors from Amendment No. 2.
27 Section 19(b)(2) of the Act, as amended by the 19(b)(2) of the Act,4 the Commission Amendment No. 4 is available at: https://
Securities Acts Amendments of 1975, Public Law designated a longer period within which www.sec.gov/comments/sr-cboebzx-2018-047/
khammond on DSK30JT082PROD with NOTICES
94–29 (June 4, 1975), grants the Commission srcboebzx2018047-4474562-175863.pdf.
8 For a full description of the proposal, see
flexibility to determine what type of proceeding— 28 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
either oral or notice and opportunity for written Amendment No. 2, supra note 6 and Amendment
3(a)(57). No. 4, supra note 7.
comments—is appropriate for consideration of a 1 15 U.S.C. 78s(b)(1).
particular proposal by a self-regulatory 9 Specifically, the Exchange proposes to add new
2 17 CFR 240.19b–4.
organization. See Securities Acts Amendments of paragraphs (e) and (i) under BZX Rule 14.8 related
3 See Securities Exchange Act Release No. 83596
1975, Senate Comm. on Banking, Housing & Urban to the initial and continued listing standards,
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (July 5, 2018), 83 FR 32162. respectively, for Closed-End Funds. The Exchange
(1975). 4 15 U.S.C. 78s(b)(2). Continued
VerDate Sep<11>2014 19:19 Oct 11, 2018 Jkt 247001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\12OCN1.SGM 12OCN1](https://thefederalregister.org/doc/83_FR_51945/page/1.svg)
![Federal Register / Vol. 83, No. 198 / Friday, October 12, 2018 / Notices 51749
securities exchange.23 In particular, the IV. Solicitation of Comments on V. Accelerated Approval of Proposed
Commission finds that the proposed Amendment Nos. 2 and 4 to the Rule Change, as Modified by
rule change is consistent with Section Proposed Rule Change Amendment Nos. 2 and 4
6(b)(5) of the Act,24 which requires,
among other things, that the rules of a Interested persons are invited to The Commission finds good cause to
national securities exchange be submit written data, views, and approve the proposed rule change, as
designed to prevent fraudulent and arguments concerning whether modified by Amendment Nos. 2 and 4,
manipulative acts and practices, to Amendment Nos. 2 and 4 are consistent prior to the thirtieth day after the date
promote just and equitable principles of with the Act. Comments may be of publication of notice of the filing of
trade, to foster cooperation and submitted by any of the following Amendment Nos. 2 and 4 in the Federal
coordination with persons engaged in methods: Register. The Commission notes that
regulating, clearing, settling, processing Electronic Comments Amendment No. 2 enhanced
information with respect to, and consistency between the Exchange’s
facilitating transactions in securities, to • Use the Commission’s internet proposed listing standards and the
remove impediments to and perfect the comment form (http://www.sec.gov/ existing listing standards for closed-end
mechanism of a free and open market rules/sro.shtml); or funds on other exchanges, as well as the
and a national market system, and, in • Send an email to rule-comments@ existing listing standards for corporate
general, to protect investors and the sec.gov. Please include File Number SR– securities on the Exchange. Amendment
public interest, and that the rules are CboeBZX–2018–047 on the subject line. No. 2 also provided additional
not designed to permit unfair description of the proposed listing
discrimination between customers, Paper Comments standards, trading rules, and
issuers, brokers, or dealers. surveillance procedures, and made
• Send paper comments in triplicate
The Commission notes that the to Secretary, Securities and Exchange technical and conforming changes. The
proposed initial and continued listing Commission, 100 F Street NE, changes in Amendment No. 2 assisted
standards for Closed-End Funds under Washington, DC 20549–1090. the Commission in finding that the
BZX Rule 14.8 are substantively proposal is consistent with the Act. The
identical to the listing standards for All submissions should refer to File Commission notes that Amendment No.
closed-end funds currently utilized by Number SR–CboeBZX–2018–047. This 4 only corrected two typographical
NYSE American, with the exceptions of file number should be included on the errors. Accordingly, the Commission
two additional requirements proposed subject line if email is used. To help the finds good cause, pursuant to Section
by the Exchange.25 The Commission Commission process and review your 19(b)(2) of the Act,27 to approve the
also notes that the Exchange’s comments more efficiently, please use proposed rule change, as modified by
governance requirements that will be only one method. The Commission will Amendment Nos. 2 and 4, on an
applicable to Closed-End Funds are post all comments on the Commission’s accelerated basis.
substantially similar to those applicable internet website (http://www.sec.gov/
to closed-end funds listed on Nasdaq.26 rules/sro.shtml). Copies of the VI. Conclusion
As discussed above, Closed-End Funds submission, all subsequent
will be subject to the Exchange’s amendments, all written statements It is therefore ordered, pursuant to
existing rules governing the trading of with respect to the proposed rule Section 19(b)(2) of the Act,28 that the
equity securities, and the Exchange change that are filed with the proposed rule change (SR–CboeBZX–
believes that its surveillance procedures Commission, and all written 2018–047), as modified by Amendment
are adequate to properly monitor the communications relating to the Nos. 2 and 4, be, and hereby is,
trading of Closed-End Funds on the proposed rule change between the approved on an accelerated basis.
Exchange during all trading sessions Commission and any person, other than For the Commission, by the Division of
and to deter and detect violations of those that may be withheld from the Trading and Markets, pursuant to delegated
Exchange rules and applicable federal public in accordance with the authority.29
securities laws. provisions of 5 U.S.C. 552, will be Eduardo A. Aleman,
Based on the foregoing, the available for website viewing and Assistant Secretary.
Commission believes that the proposal printing in the Commission’s Public [FR Doc. 2018–22206 Filed 10–11–18; 8:45 am]
presents no novel regulatory issues and Reference Room, 100 F Street NE,
BILLING CODE 8011–01–P
finds the proposal to be consistent with Washington, DC 20549, on official
the Act. business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
23 In approving this proposed rule change, the filing will also be available for
Commission has considered the proposed rule’s inspection and copying at the principal
impact on efficiency, competition, and capital office of the Exchange. All comments
formation. See 15 U.S.C. 78c(f).
24 15 U.S.C. 78f(b)(5). received will be posted without change.
25 As discussed above, in addition to the listing Persons submitting comments are
standards for closed-end funds currently utilized by cautioned that we do not redact or edit
NYSE American, the Exchange would require that personal identifying information from
khammond on DSK30JT082PROD with NOTICES
a Closed-End Fund has a minimum of four
registered and active Market Makers, and that a
comment submissions. You should
Closed-End Fund has a minimum bid price of at submit only information that you wish
least $4 per share initially and at least $1 per share to make available publicly. All
on an ongoing basis. These two additional submissions should refer to File
requirements are consistent with the Exchange’s
listing standards for corporate securities. See supra Number SR–CboeBZX–2018–047 and 27 15 U.S.C. 78s(b)(2).
note 11. should be submitted on or before 28 Id.
26 See supra note 21. November 2, 2018. 29 17 CFR 200.30–3(a)(12).
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Document Created: 2018-10-13 10:09:36
Document Modified: 2018-10-13 10:09:36
| 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 51747 |
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