83 FR 52253 - Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend C2's Rulebook To Allow the Post Only Order Instruction on Complex Orders That Route to Its Electronic Book
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 200 (October 16, 2018)
Federal Register Volume 83, Issue 200 (October 16, 2018)
| Page Range | 52253-52255 | |
| FR Document | 2018-22429 |
[Federal Register Volume 83, Number 200 (Tuesday, October 16, 2018)] [Notices] [Pages 52253-52255] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-22429] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84399; File No. SR-C2-2018-021] Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend C2's Rulebook To Allow the Post Only Order Instruction on Complex Orders That Route to Its Electronic Book October 10, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on October 1, 2018, Cboe C2 Exchange, Inc. (the ``Exchange'' or ``C2'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Cboe C2 Exchange, Inc. (the ``Exchange'' or ``C2'') proposes to amend C2's rulebook to allow the Post Only order instruction on complex orders that route to its electronic book. The text of the proposed rule change is available on the Exchange's website (http://www.c2exchange.com/Legal/), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose C2 recently adopted the Post Only order instruction on simple orders that route to its electronic book (``Simple Book''),\3\ and C2 now proposes to adopt the Post Only order instruction on complex orders that route to its electronic book (``COB''). --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 83214 (May 11, 2018), 83 FR 22796 (May 16, 2018) (SR-C2-2018-005). --------------------------------------------------------------------------- Background Pursuant to C2 Rule 1.1, ``[a] ``Post Only'' order is an order the System ranks and executes pursuant to Rule 6.12, subjects to the Price Adjust process pursuant to Rule 6.12, or cancels or rejects (including if it is not subject to the Price Adjust process and locks or crosses a Protected Quotation of another exchange), as applicable (in accordance with User instructions), except the order may not remove liquidity from the [Simple] Book or route away to another Exchange.'' In other words, if a Post Only order is entered into C2's automated trading system (``System''), it will not execute against an order resting in the Simple Book or route to another exchange. The purpose of the Post Only order is to add liquidity to the Simple Book. Because C2 has a maker-taker fee structure, pursuant to which an execution taking liquidity from the Simple Book is subject to a taker fee, the Post Only order instruction provides Trading Permit Holders (``TPHs'' or ``Users'') with the flexibility to avoid incurring a taker fee if the TPH's intent is to submit an order to add liquidity to the Simple Book. Additionally, under C2's maker-taker fee structure, if a TPH submits an order that adds liquidity to the Simple Book (for both penny and non-penny classes of options), it receives a rebate in connection with the execution of that order. For example, a Public Customer order that adds liquidity to the Simple Book in a non-penny class receives a rebate of $0.80, whereas a Public Customer order that removes liquidity from the Simple Book in a non-penny class incurs a fee of $0.85. Similar rebates and fees are also applied to Professional Customers, Firms, and Broker/Dealers orders, among others. Complex Orders C2 does not currently offer Post Only complex orders. Like in the Simple Book, execution of a complex order taking liquidity from the COB is subject to a taker fee and execution of an order adding liquidity is subject to a maker rebate. For example, a Public Customer order that adds liquidity to the COB in a non-penny class receives a rebate of $0.75, whereas a Public Customer order that removes liquidity from the COB in a non-penny class incurs a fee of $0.83. Unlike in the Simple Book, however, a TPH that intends to submit a complex order to add liquidity to the COB is not given the same flexibility to avoid incurring a taker fee. Accordingly, C2 is proposing to add Post Only to the permissible types of complex orders submitted to the Exchange in C2 Rule 6.13(b). Proposed C2 Rule 6.13(b)(2) states that upon receipt of a Post Only complex order with any Time-in-Force, the System does not initiate a complex order auction (``COA''), and if a User marks the Post Only complex order to initiate a COA, the System cancels the order. Not permitting a Post Only complex order to COA is consistent with the purposes of a Post Only order, which as discussed above is to add liquidity to the COB. Proposed C2 Rule 6.13(g)(4) states that Post Only complex orders may not Leg into the Simple Book and proposed C2 Rule 6.13(h)(3) states that the System cancels or rejects a Post Only complex order if it locks or crosses a resting complex order in the COB or the then-current opposite side synthetic best bid or offer (``SBBO''). For example, assume there are no orders for a specific strategy resting on the COB, the synthetic national best bid or offer (``SNBBO'') is $3.00 by $3.15, and the SBBO is $2.95 by $3.15. Assume next that Complex Order 1 enters the COB to sell 10 contracts of that strategy at $3.14 and such order is posted to the COB. If Complex Order 2 then enters the COB to buy 10 contracts of that strategy at $3.14, but Complex Order 2 also contains the Post Only instruction, Complex Order 2 is rejected since it locks the resting contra order. Similarly, assume there are no orders for a specific strategy resting on the COB, the SNBBO is $3.00 by $3.15, and the SBBO is $2.95 by $3.20. If a two- leg Complex Order with the Post Only instruction enters the COB to buy 10 contracts of that strategy at $3.20, that Complex Order is rejected since it cannot leg in to the Simple Book and it locks the contra side SBBO. This proposed functionality is consistent with the purpose of the Post Only instruction and ensures a Post [[Page 52254]] Only complex order will not remove liquidity from the Book. This is also consistent with the functionality and purpose of the Post Only order instruction on simple orders. By adding the Post Only order instruction for complex orders, TPHs will be given the ability to exercise more control over the circumstances in which their complex orders are executed and be encouraged to add liquidity in the complex order market. Any additional liquidity will subsequently benefit all participants who trade complex orders on the Exchange. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\4\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \5\ requirements that the rules of an 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. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \6\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). \6\ Id. --------------------------------------------------------------------------- Specifically, the Post Only order instruction on complex orders is designed to encourage market participants to add liquidity in the complex order market, which will benefit investors. By giving market participants the flexibility to manage their execution costs and the circumstances in which their complex orders are executed, the Exchange believes the proposed rule change would remove impediments to perfect the mechanism of a free and open market and a national market system and protect investors. The Exchange also believes that the proposed rule change will contribute to the protection of investors and the public interest by assuring compliance with rules related to locked and crossed markets. Additionally, the Exchange notes that Post Only functionality is not new or unique functionality and is already available in a similar capacity. While the Post Only complex order type is not currently available in the market, C2 and other exchanges have implemented the Post Only simple order type, which functions in the same manner as the proposed Post Only complex order type. The purpose of a Post Only complex order is the same as the purpose of a Post Only simple order, given C2's maker-taker fee structure with respect to executions of complex orders. B. Self-Regulatory Organization's Statement on Burden on Competition C2 does not believe that the proposed rule change will impose any burden on intramarket or intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. In particular, the Exchange believes the proposed rule change will not burden intramarket competition because the Post Only order instruction on complex orders will be available to all market participants. Additionally, use of the Post Only order instruction on complex orders is voluntary. The Exchange also believes the proposed rule change will not impose any burden on intermarket competition because this relates to an instruction on orders that are submitted to the Exchange and may only execute on the Exchange. Additionally, nothing prevents other options exchanges that offer complex orders from adopting a Post Only complex order type. The Exchange also believes the proposed rule change will promote competition, as the Exchange believes it will encourage the provision of additional liquidity in the complex order market, which benefits all market participants. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission will: A. By order approve or disapprove such proposed rule change, or B. institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-C2-2018-021 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-C2-2018-021. 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-C2-2018-021, and should be submitted on or before November 6, 2018. [[Page 52255]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-22429 Filed 10-15-18; 8:45 am] BILLING CODE 8011-04-P
![Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Notices 52253
For the Commission, by the Division of forth in sections A, B, and C below, of Complex Orders
Trading and Markets, pursuant to delegated the most significant aspects of such
authority.20 C2 does not currently offer Post Only
statements. complex orders. Like in the Simple
Eduardo A. Aleman,
A. Self-Regulatory Organization’s Book, execution of a complex order
Assistant Secretary. taking liquidity from the COB is subject
Statement of the Purpose of, and
[FR Doc. 2018–22412 Filed 10–15–18; 8:45 am] to a taker fee and execution of an order
Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P
Change adding liquidity is subject to a maker
rebate. For example, a Public Customer
1. Purpose order that adds liquidity to the COB in
SECURITIES AND EXCHANGE a non-penny class receives a rebate of
C2 recently adopted the Post Only
COMMISSION $0.75, whereas a Public Customer order
order instruction on simple orders that
[Release No. 34–84399; File No. SR–C2– route to its electronic book (‘‘Simple that removes liquidity from the COB in
2018–021] Book’’),3 and C2 now proposes to adopt a non-penny class incurs a fee of $0.83.
the Post Only order instruction on Unlike in the Simple Book, however, a
Self-Regulatory Organizations; Cboe complex orders that route to its TPH that intends to submit a complex
C2 Exchange, Inc.; Notice of Filing of electronic book (‘‘COB’’). order to add liquidity to the COB is not
a Proposed Rule Change To Amend given the same flexibility to avoid
C2’s Rulebook To Allow the Post Only Background incurring a taker fee. Accordingly, C2 is
Order Instruction on Complex Orders Pursuant to C2 Rule 1.1, ‘‘[a] ‘‘Post proposing to add Post Only to the
That Route to Its Electronic Book Only’’ order is an order the System permissible types of complex orders
October 10, 2018. ranks and executes pursuant to Rule submitted to the Exchange in C2 Rule
6.12, subjects to the Price Adjust 6.13(b).
Pursuant to Section 19(b)(1) of the
process pursuant to Rule 6.12, or Proposed C2 Rule 6.13(b)(2) states
Securities Exchange Act of 1934 (the
cancels or rejects (including if it is not that upon receipt of a Post Only
‘‘Act’’),1 and Rule 19b–4 thereunder,2
subject to the Price Adjust process and complex order with any Time-in-Force,
notice is hereby given that on October
locks or crosses a Protected Quotation of the System does not initiate a complex
1, 2018, Cboe C2 Exchange, Inc. (the
another exchange), as applicable (in order auction (‘‘COA’’), and if a User
‘‘Exchange’’ or ‘‘C2’’) filed with the
accordance with User instructions), marks the Post Only complex order to
Securities and Exchange Commission
except the order may not remove initiate a COA, the System cancels the
(the ‘‘Commission’’) the proposed rule
liquidity from the [Simple] Book or order. Not permitting a Post Only
change as described in Items I, II, and
route away to another Exchange.’’ In complex order to COA is consistent
III below, which Items have been
other words, if a Post Only order is with the purposes of a Post Only order,
prepared by the Exchange. The
entered into C2’s automated trading which as discussed above is to add
Commission is publishing this notice to
system (‘‘System’’), it will not execute liquidity to the COB. Proposed C2 Rule
solicit comments on the proposed rule
against an order resting in the Simple 6.13(g)(4) states that Post Only complex
change from interested persons.
Book or route to another exchange. The orders may not Leg into the Simple
I. Self-Regulatory Organization’s purpose of the Post Only order is to add Book and proposed C2 Rule 6.13(h)(3)
Statement of the Terms of Substance of liquidity to the Simple Book. states that the System cancels or rejects
the Proposed Rule Change Because C2 has a maker-taker fee a Post Only complex order if it locks or
Cboe C2 Exchange, Inc. (the structure, pursuant to which an crosses a resting complex order in the
‘‘Exchange’’ or ‘‘C2’’) proposes to amend execution taking liquidity from the COB or the then-current opposite side
C2’s rulebook to allow the Post Only Simple Book is subject to a taker fee, the synthetic best bid or offer (‘‘SBBO’’). For
order instruction on complex orders that Post Only order instruction provides example, assume there are no orders for
route to its electronic book. Trading Permit Holders (‘‘TPHs’’ or a specific strategy resting on the COB,
The text of the proposed rule change ‘‘Users’’) with the flexibility to avoid the synthetic national best bid or offer
is available on the Exchange’s website incurring a taker fee if the TPH’s intent (‘‘SNBBO’’) is $3.00 by $3.15, and the
(http://www.c2exchange.com/Legal/), at is to submit an order to add liquidity to SBBO is $2.95 by $3.15. Assume next
the Exchange’s Office of the Secretary, the Simple Book. Additionally, under that Complex Order 1 enters the COB to
and at the Commission’s Public C2’s maker-taker fee structure, if a TPH sell 10 contracts of that strategy at $3.14
Reference Room. submits an order that adds liquidity to and such order is posted to the COB. If
the Simple Book (for both penny and Complex Order 2 then enters the COB
II. Self-Regulatory Organization’s non-penny classes of options), it to buy 10 contracts of that strategy at
Statement of the Purpose of, and receives a rebate in connection with the $3.14, but Complex Order 2 also
Statutory Basis for, the Proposed Rule execution of that order. For example, a contains the Post Only instruction,
Change Public Customer order that adds Complex Order 2 is rejected since it
In its filing with the Commission, the liquidity to the Simple Book in a non- locks the resting contra order. Similarly,
Exchange included statements penny class receives a rebate of $0.80, assume there are no orders for a specific
concerning the purpose of and basis for whereas a Public Customer order that strategy resting on the COB, the SNBBO
the proposed rule change and discussed removes liquidity from the Simple Book is $3.00 by $3.15, and the SBBO is $2.95
any comments it received on the in a non-penny class incurs a fee of by $3.20. If a two-leg Complex Order
proposed rule change. The text of these $0.85. Similar rebates and fees are also with the Post Only instruction enters
amozie on DSK3GDR082PROD with NOTICES1
statements may be examined at the applied to Professional Customers, the COB to buy 10 contracts of that
places specified in Item IV below. The Firms, and Broker/Dealers orders, strategy at $3.20, that Complex Order is
Exchange has prepared summaries, set among others. rejected since it cannot leg in to the
Simple Book and it locks the contra side
20 17 CFR 200.30–3(a)(34). 3 See Securities Exchange Act Release No. 83214 SBBO. This proposed functionality is
1 15 U.S.C. 78s(b)(1). (May 11, 2018), 83 FR 22796 (May 16, 2018) (SR– consistent with the purpose of the Post
2 17 CFR 240.19b–4. C2–2018–005). Only instruction and ensures a Post
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![Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Notices 52255
For the Commission, by the Division of office of the Exchange, and at the components of a portfolio shall not
Trading and Markets, pursuant to delegated Commission’s Public Reference Room. account, in the aggregate, for more than
authority.7 20% of the weight of the fixed income
Eduardo A. Aleman, II. Self-Regulatory Organization’s
portion of the portfolio, and
Statement of the Purpose of, and
Assistant Secretary. 14.11(i)(4)(C)(iv)(a), which provides that
Statutory Basis for, the Proposed Rule
[FR Doc. 2018–22429 Filed 10–15–18; 8:45 am] in the aggregate, at least 90% of the
Change
BILLING CODE 8011–04–P weight of listed derivatives holdings
In its filing with the Commission, the shall consist of futures, options, and
Exchange included statements swaps for which the Exchange may
SECURITIES AND EXCHANGE concerning the purpose of and basis for obtain information via the Intermarket
COMMISSION the proposed rule change and discussed Surveillance Group (‘‘ISG’’) from other
any comments it received on the members or affiliates of the ISG or for
[Release No. 34–84394; File No. SR– proposed rule change. The text of these
CboeBZX–2018–072] which the principal market is a market
statements may be examined at the with which the Exchange has a
Self-Regulatory Organizations; Cboe places specified in Item IV below. The comprehensive surveillance sharing
BZX Exchange, Inc.; Notice of Filing Exchange has prepared summaries, set agreement, calculated using the
and Immediate Effectiveness of a forth in Sections A, B, and C below, of aggregate gross notional value of such
Proposed Rule Change To List and the most significant parts of such holdings.
Trade Shares of the JPMorgan statements.
Description of the Shares and the Funds
Municipal ETF and JPMorgan Ultra- A. Self-Regulatory Organization’s
Short Municipal ETF of the J.P. Morgan J.P. Morgan Investment Management,
Statement of the Purpose of, and the Inc. is the investment adviser (the
Exchange-Traded Fund Trust Under Statutory Basis for, the Proposed Rule ‘‘Adviser’’) to the Fund. JPMorgan Chase
Rule 14.11(i), Managed Fund Shares Change Bank, N.A. is the administrator,
October 10, 2018. 1. Purpose custodian, and transfer agent
Pursuant to Section 19(b)(1) of the The Exchange proposes to list and (‘‘Administrator,’’ ‘‘Custodian,’’ and
Securities Exchange Act of 1934 (the ‘‘Transfer Agent,’’ respectively) for the
trade the Shares under Rule 14.11(i),
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Trust. JPMorgan Distribution Services,
which governs the listing and trading of
notice is hereby given that on Inc. serves as the distributor
Managed Fund Shares on the
September 26, 2018, Cboe BZX (‘‘Distributor’’) for the Trust.
Exchange.5 The Funds will be actively Rule 14.11(i)(7) provides that, if the
Exchange, Inc. (the ‘‘Exchange’’ or managed funds. The Shares will be
‘‘BZX’’) filed with the Securities and investment adviser to the investment
offered by the Trust, which was company issuing Managed Fund Shares
Exchange Commission (‘‘Commission’’) established as a Delaware statutory
the proposed rule change as described is affiliated with a broker-dealer, such
trust. The Trust is registered with the investment adviser shall erect a ‘‘fire
in Items I and II below, which Items Commission as an open-end investment
have been prepared by the Exchange. wall’’ between the investment adviser
company and has filed a registration and the broker-dealer with respect to
The Exchange has designated this statement on behalf of the Fund on
proposal as a ‘‘non-controversial’’ access to information concerning the
Form N–1A (‘‘Registration Statement’’) composition and/or changes to such
proposed rule change pursuant to with the Commission.6
Section 19(b)(3)(A) of the Act 3 and Rule investment company portfolio.7 In
Rule 14.11(i)(4)(C)(ii)(a) requires that addition, Rule 14.11(i)(7) further
19b–4(f)(6)(iii) thereunder,4 which component fixed income securities that,
renders it effective upon filing with the requires that personnel who make
in the aggregate, account for at least decisions on the investment company’s
Commission. The Commission is 75% of the weight of the portfolio shall
publishing this notice to solicit portfolio composition must be subject to
have a minimum principal amount
comments on the proposed rule change outstanding of $100 million or more. 7 An investment adviser to an open-end fund is
from interested persons. The Exchange submits this proposal required to be registered under the Investment
I. Self-Regulatory Organization’s because the portfolios of the Funds will Advisers Act of 1940 (the ‘‘Advisers Act’’). As a
not meet this requirement. The Fund result, the Adviser and its related personnel are
Statement of the Terms of Substance of subject to the provisions of Rule 204A–1 under the
the Proposed Rule Change will, however, meet all of the other Advisers Act relating to codes of ethics. This Rule
requirements of Rule 14.11(i)(4)(C)(ii), requires investment advisers to adopt a code of
The Exchange filed a proposal to list (iii), (iv) and (v), specifically including ethics that reflects the fiduciary nature of the
and trade shares of the JPMorgan Rule 14.11(i)(4)(C)(iv), which provides relationship to clients as well as compliance with
Municipal ETF and JPMorgan Ultra- other applicable securities laws. Accordingly,
that non-agency, non-GSE, and procedures designed to prevent the communication
Short Municipal ETF (each a ‘‘Fund’’ or, privately-issued mortgage-related and and misuse of non-public information by an
collectively, the ‘‘Funds’’) of the J.P. other asset-backed securities investment adviser must be consistent with Rule
Morgan Exchange-Traded Fund Trust 204A–1 under the Advisers Act. In addition, Rule
(the ‘‘Trust’’ or the ‘‘Issuer’’) under Rule 206(4)–7 under the Advisers Act makes it unlawful
5 The Commission approved Rule 14.11(i) in
for an investment adviser to provide investment
14.11(i) (‘‘Managed Fund Shares’’). The Securities Exchange Act Release No. 65225 (August advice to clients unless such investment adviser has
shares of the Funds are referred to 30, 2011), 76 FR 55148 (September 6, 2011) (SR– (i) adopted and implemented written policies and
BATS–2011–018). procedures reasonably designed to prevent
herein as the ‘‘Shares.’’ 6 See Registration Statement on Form N–1A for
violation, by the investment adviser and its
The text of the proposed rule change the Trust, dated July 31, 2018 (File Nos. 333– supervised persons, of the Advisers Act and the
amozie on DSK3GDR082PROD with NOTICES1
is available at the Exchange’s website at 191837 and 811–22903). The descriptions of the Commission rules adopted thereunder; (ii)
www.markets.cboe.com, at the principal Fund and the Shares contained herein are based, in implemented, at a minimum, an annual review
part, on information in the Registration Statement. regarding the adequacy of the policies and
7 17 The Commission has issued an order granting procedures established pursuant to subparagraph (i)
CFR 200.30–3(a)(12).
1 15
certain exemptive relief to the Trust under the above and the effectiveness of their
U.S.C. 78s(b)(1). Investment Company Act of 1940 (15 U.S.C. implementation; and (iii) designated an individual
2 17 CFR 240.19b–4.
80a–1) (‘‘1940 Act’’) (the ‘‘Exemptive Order’’). See (who is a supervised person) responsible for
3 15 U.S.C. 78s(b)(3)(A).
Investment Company Act Release No. 31990 administering the policies and procedures adopted
4 17 CFR 240.19b–4(f)(6)(iii). (February 9, 2016) (File No. 811–22903). under subparagraph (i) above.
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Document Created: 2018-10-15 23:42:31
Document Modified: 2018-10-15 23:42:31
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 52253 |
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