83 FR 5668 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of a Proposed Rule Change Relating to Flexibly Structured Options
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 27 (February 8, 2018)
Federal Register Volume 83, Issue 27 (February 8, 2018)
| Page Range | 5668-5671 | |
| FR Document | 2018-02482 |
[Federal Register Volume 83, Number 27 (Thursday, February 8, 2018)] [Notices] [Pages 5668-5671] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-02482] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82622; File No. SR-CBOE-2018-008] Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of a Proposed Rule Change Relating to Flexibly Structured Options February 2, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on January 19, 2018, Cboe Exchange, Inc. (``Exchange'' or ``Cboe Options'') filed with the Securities and Exchange Commission (``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 The Exchange seeks to amend its rules related to flexibly structured options (``FLEX Options''). The text of the proposed rule change is available on the Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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 The Exchange is proposing to make certain revisions to Rules 24A.4.02, which contains certain requirements for a FLEX Option that has the exact same terms as a Non-FLEX Option. FLEX Options with quarterly expirations, short term expirations, weekly expirations,\3\ and End of Month (``EOM'') expirations are not currently fungible with Non-FLEX Options with identical terms. Such expirations were not originally intended to be fungible.\4\ [[Page 5669]] The Exchange now proposes to add paragraph (a) to Interpretation and Policy .02 of Rule 24A.4 \5\ in order to make all FLEX Options fungible with Non-FLEX options with identical terms, including quarterly expirations, short term expirations, weekly expirations, and EOM expirations. --------------------------------------------------------------------------- \3\ The Exchange notes that Rule 24.9(e) no longer uses the term End of Week (EOW) expirations. The Exchange added Monday and Wednesday expirations to Rule 24.9(e), and Monday, Wednesday, and Friday expirations are termed weekly expirations in Rule 24.9(e). See Rule 24.9(e). \4\ See e.g., Securities Exchange Act Release Nos. 59060 (December 5, 2008), 73 FR 76075 (December 15, 2008)(SR-CBOE-2008-115 proposal notice); 59417 (February 18, 2009), 74 FR 8591 (February 25, 2009) (SR-CBOE-2008-115 approval order); and Securities Exchange Act Release 59675 (April 1, 2009), 74 FR 15794 (April 7, 2009) (SR- OCC-2009-05). FLEX Options with non-Expiration Friday expiration dates that coincide with other Non-FLEX option expiration dates and with terms identical to those Non-FLEX Options were permitted before, and were not originally intended by the Exchange to become subject to, the fungibility provisions adopted through SR-CBOE-2008- 115 (e.g., a FLEX Option that expires on the last day of a quarter and that has terms identical to a Non-FLEX Option series is not fungible with that Non-FLEX Option series; however, certain position limit aggregation requirements apply under Rules 24A.7(d)(1)-(2) and 24B.7(d)(1)-(2)). See also, e.g., Securities Exchange Release Act Nos. 62658 (August 5, 2010), 75 FR 49010 (August 12, 2010)(SR-CBOE- 2009-075 proposal notice) and 62911 (September 14, 2010), 75 FR 57539 (September 21, 2010) (SR-CBOE-2009-075 approval order)(footnote 8 of the proposal notice indicates that FLEX Options do not become fungible with subsequently introduced Non-FLEX structured quarterly and short term options and that, because of the similarities between EOW and EOM expirations and existing Non-FLEX structured quarterly and short term options, FLEX Options will similarly not become fungible with EOW and EOM expirations listed for trading). As previously noted, Rule 24.9(e) was amended to include Monday and Wednesday expirations, and the term EOW was removed. All expirations listed pursuant to Rule 24.9(e) (i.e., Monday, Wednesday, Friday, and EOM expirations) are currently not fungible. \5\ Chapter XXIVA contains the rules governing the execution of FLEX Options on the Hybrid Trading System. Prior to SR-CBOE-2018-003 Chapter XXIVA contained the rules governing the execution of FLEX Options in open outcry, and Chapter XXIVB contained the rules governing the execution of FLEX Options on the Hybrid Trading System. Pursuant to SR-CBOE-2018-003 Chapter XXIVB replaced Chapter XXIVA such that Chapter XXIVA now contains the rules governing the execution of FLEX Options on the Hybrid Trading System, and the rules governing the execution of FLEX Options in open outcry have been removed from the Exchange's rulebook. --------------------------------------------------------------------------- The effect of the proposed rule change is that once an option series with identical terms is listed for trading as a Non-FLEX Option series, (i) all existing open positions established under the FLEX trading procedures will be fully fungible with transactions in the identical Non-FLEX Option series, and (ii) any further trading in the series would be as Non-FLEX Options subject to the Non-FLEX trading procedures and rules. The Exchange believes the proposed application of Rule 24A.4.02 to all FLEX Options will have the effect of more FLEX Options becoming fungible with Non-Flex Options, which will potentially increase the liquidity available to traders of FLEX Options. Second, the Exchange proposes to codify existing practice by including rule text in paragraph (a) to Rule 24A4.02 to specify the applicability of Interpretation and Policy .02 in the event the relevant expiration is an Exchange holiday. The proposed text is as follows: In the event the relevant expiration is an Exchange holiday, this Interpretation and Policy shall be applicable to options with an expiration date that is the business day immediately preceding the Exchange holiday. Except, in the case of Monday expiring Weekly Expirations (Rule 24.9(e)(1)), this Interpretation and Policy shall be applicable to options with an expiration date that is the business day immediately following the Exchange Holiday. Generally, if an expiration were to fall on an Exchange holiday, the expiration becomes the business day immediately preceding the Exchange holiday--except in the case of Monday expiring Weekly Expirations pursuant to Rule 24.9(e)(1), whereby the expiration becomes the business day immediately following the Exchange holiday.\6\ Proposed paragraph (a) makes it clear that when the expiration of a Non-FLEX Option is moved to the immediately preceding (or following) business day the FLEX Option that also expires on the preceding (or following) business day will be fungible with the Non-FLEX Option (assuming all other terms are identical). --------------------------------------------------------------------------- \6\ See e.g., Rule 24.9(e)(1) (stating that if the Exchange is not open for business on a respective Monday, the normally Monday expiring Weekly Expirations will expire on the following business day, and if the Exchange is not open for business on a respective Wednesday or Friday, the normally Wednesday or Friday expiring Weekly Expirations will expire on the previous business day). --------------------------------------------------------------------------- Third, we are proposing to change the text to clarify that the existing intra-day add provision only applies to FLEX Options that have an American-style exercise. Limiting the application of the intra-day add provision to American-style exercises was the Exchange's original intent when this provision was originally adopted.\7\ --------------------------------------------------------------------------- \7\ See Securities Exchange Act Release No. 62870 (September 8, 2010), 75 FR 56147 (September 15, 2010) (SR-CBOE-2010-078) (stating that there is assignment risk for American-style options only). In the event a Non-FLEX Option is listed with identical terms to an existing FLEX Option the Options Clearing Corporation (``OCC'') cannot net the positions in the contracts until the next business day. Thus, if the Non-FLEX Option were listed intra-day, and an investor with a position in the FLEX Option attempted to close the position using the Non-FLEX Option, the investor would be technically long in one contract and short in the other contract, exposing the investor to assignment risk until the next day despite having offsetting positions. --------------------------------------------------------------------------- Finally, we are also proposing non-substantive, clarifying changes to simplify the text and make it easier to read. The changes are as follows: [GRAPHIC] [TIFF OMITTED] TN08FE18.000 The Exchange believes these non-substantive changes more clearly provide that the fungibility provisions apply to FLEX Option series with terms that are identical to the terms of a Non-FLEX Option series. [[Page 5670]] The Exchange notes that when a FLEX Option is fungible with the Non-FLEX option OCC converts any open interest in the FLEX Option to the Non-FLEX option. However, OCC's By-laws currently provide that: Once a series of non-flexibly structured options (other than a series of quarterly options or short term options) is opened for trading on an Exchange, any existing flexibly structured option contracts that have identical variable terms shall be fully fungible with options in such series, and shall cease to be flexibly structured options.\8\ --------------------------------------------------------------------------- \8\ See definition of ``flexibly structured option'' in Article I of OCC By-laws. The effect of ``other than a series of quarterly options or short term options'' in the above definition prevents OCC from carrying out the FLEX to Non-FLEX open interest conversion for options with quarterly expirations, short term expirations, weekly expirations, and EOM expirations. Thus, in order to give effect to the Cboe Options rule change, OCC will be amending its By-laws by removing ``other than a series of quarterly options or short term options'' from the definition. The Exchange notes that in situations where an OCC rule change is necessary to give effect to a Cboe Options rule change previous practice involved Cboe Options amending its rules and then OCC amending its rules.\9\ --------------------------------------------------------------------------- \9\ See e.g., Securities Exchange Act Release 59675 (April 1, 2009), 74 FR 15794 (April 7, 2009) (SR-OCC-2009-05) and Securities Exchange Act Release 59417 (Feb. 18, 2009), 74 FR 8591 (Feb. 25, 2009) (SR-CBOE-2008-115). --------------------------------------------------------------------------- Implementation Date In order to allow OCC the time necessary to amend its By-laws, the proposed rule text provides that the Exchange's current rule text will remain in effect until a date specified by the Exchange in a Regulatory Circular, which date shall be no later than July 31, 2018. The Regulatory Circular announcing the effective date shall be issued at least 30 days prior to the effective date. On the effective date specified by the Exchange in a Regulatory Circular, the rule text provisions amended by this filing will be in effect. 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.\10\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \11\ 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) \12\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). \12\ Id. --------------------------------------------------------------------------- In particular, the Exchange believes the proposed application of Rule 24A.4.02 to all FLEX Options will have the effect of more FLEX Options becoming fungible with Non-Flex Options, which will potentially increase the liquidity available to traders of FLEX Options. The Exchange also believes the rule text regarding holidays will serve to make clear the Exchange's policies with regards to holidays. In addition, the Exchange believes that specifying that the intra-day add provision applies solely to American-style expirations will potentially provide more clarity regarding the manner in which the rules operate, which helps protect investors and the public interest. Finally, the non-substantive, clarifying changes of the proposed filing protect investors and the public interest by making the rule easier to read and understand. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Specifically, the Exchange does not believe that the proposed rule change will impose any burden on intramarket competition because the rules will be applicable to all TPHs. The Exchange does not believe the proposal will negatively impact market participants because, importantly, more FLEX Options becoming fungible with Non-Flex Options will potentially increase the liquidity available to traders of FLEX Options (e.g., there are more market participants transacting in Non-FLEX Options; thus, there is potentially more liquidity available to market participants with FLEX Options that will be able to, pursuant to this proposal, exit their FLEX Options positions by transacting in Non-FLEX Options). To the extent that the proposed rule change will cause market participants to choose Cboe Options over other trading venues, market participants on other exchanges are welcome to become TPHs and trade at Cboe Options if they determine that this proposed rule change has made Cboe Options more attractive or favorable. 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 rule-comments@sec.gov. Please include File Number SR-CBOE-2018-008 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-CBOE-2018-008. 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 [[Page 5671]] 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- CBOE-2018-008 and should be submitted on or before March 1, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-02482 Filed 2-7-18; 8:45 am] BILLING CODE 8011-01-P
![5668 Federal Register / Vol. 83, No. 27 / Thursday, February 8, 2018 / Notices
Commission recognizes that the submit only information that you wish II. Self-Regulatory Organization’s
security-based swap market and to make available publicly. Statement of the Purpose of, and
corresponding regulatory regime have Statutory Basis for, the Proposed Rule
developed in the period of time since IV. Conclusion Change
the Commission originally issued the It is hereby ordered, pursuant to In its filing with the Commission, the
Exchange Act Exemptive Order, and Section 36 of the Exchange Act, that the Exchange included statements
will continue to do so. As such, to Unlinked Temporary Exemptions concerning the purpose of and basis for
determine whether permanent the proposed rule change and discussed
contained in the Exchange Act
exemptive relief is necessary or any comments it received on the
Exemptive Order and extended in the
appropriate in the public interest, and proposed rule change. The text of these
2017 Extension Order in connection
consistent with the protection of statements may be examined at the
investors, the Commission invites with the revisions of the Exchange Act
definition of ‘‘security’’ to encompass places specified in Item IV below. The
comments on the relief and requests that Exchange has prepared summaries, set
interested parties provide detailed and security-based swaps are extended until
forth in sections A, B, and C below, of
updated information relating to the February 5, 2019.
the most significant aspects of such
Unlinked Temporary Exemptions. By the Commission. statements.
To the extent that interested parties Brent J. Fields,
request specific relief for any of the A. Self-Regulatory Organization’s
Secretary. Statement of the Purpose of, and
Unlinked Temporary Exemptions
beyond February 5, 2019, the
[FR Doc. 2018–02498 Filed 2–7–18; 8:45 am] Statutory Basis for, the Proposed Rule
Commission encourages any such BILLING CODE 8011–01–P Change
interested parties to be detailed in any 1. Purpose
request as to the circumstances in which The Exchange is proposing to make
the Exchange Act provision or rule SECURITIES AND EXCHANGE
COMMISSION certain revisions to Rules 24A.4.02,
applies to security-based swaps or which contains certain requirements for
security-based swap market a FLEX Option that has the exact same
participants, and why relief would be [Release No. 34–82622; File No. SR–CBOE–
terms as a Non-FLEX Option.
necessary. 2018–008]
FLEX Options with quarterly
Comments may be submitted by any expirations, short term expirations,
of the following methods: Self-Regulatory Organizations; Cboe
weekly expirations,3 and End of Month
Exchange, Inc.; Notice of Filing of a
Electronic Comments (‘‘EOM’’) expirations are not currently
Proposed Rule Change Relating to fungible with Non-FLEX Options with
• Use the Commission’s internet Flexibly Structured Options identical terms. Such expirations were
comment form (http://www.sec.gov/ not originally intended to be fungible.4
February 2, 2018.
rules/exorders.shtml); or
• Send an email to rule-comments@ Pursuant to Section 19(b)(1) of the 3 The Exchange notes that Rule 24.9(e) no longer
sec.gov. Please include File Number S7– Securities Exchange Act of 1934 uses the term End of Week (EOW) expirations. The
27–11 on the subject line; or (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange added Monday and Wednesday
expirations to Rule 24.9(e), and Monday,
• Use the Federal eRulemaking Portal notice is hereby given that on January Wednesday, and Friday expirations are termed
(http://www.regulations.gov). Follow the 19, 2018, Cboe Exchange, Inc. weekly expirations in Rule 24.9(e). See Rule 24.9(e).
instructions for submitting comments. (‘‘Exchange’’ or ‘‘Cboe Options’’) filed 4 See e.g., Securities Exchange Act Release Nos.
59060 (December 5, 2008), 73 FR 76075 (December
Paper Comments with the Securities and Exchange 15, 2008)(SR–CBOE–2008–115 proposal notice);
Commission (‘‘Commission’’) the 59417 (February 18, 2009), 74 FR 8591 (February
• Send paper comments in triplicate proposed rule change as described in 25, 2009) (SR–CBOE–2008–115 approval order);
to Secretary, Securities and Exchange Items I, II, and III below, which Items and Securities Exchange Act Release 59675 (April
Commission, 100 F St. NE, Washington, 1, 2009), 74 FR 15794 (April 7, 2009) (SR–OCC–
have been prepared by the Exchange. 2009–05). FLEX Options with non-Expiration
DC 20549–1090.
The Commission is publishing this Friday expiration dates that coincide with other
All submissions should refer to File notice to solicit comments on the Non-FLEX option expiration dates and with terms
Number S7–27–11. This file number identical to those Non-FLEX Options were
proposed rule change from interested permitted before, and were not originally intended
should be included on the subject line persons. by the Exchange to become subject to, the
if email is used. To help us process and fungibility provisions adopted through SR–CBOE–
review your comments more efficiently, I. Self-Regulatory Organization’s 2008–115 (e.g., a FLEX Option that expires on the
please use only one method. The Statement of the Terms of Substance of last day of a quarter and that has terms identical
to a Non-FLEX Option series is not fungible with
Commission will post all comments on the Proposed Rule Change that Non-FLEX Option series; however, certain
the Commission’s internet website position limit aggregation requirements apply under
(http://www.sec.gov/rules/ The Exchange seeks to amend its rules Rules 24A.7(d)(1)–(2) and 24B.7(d)(1)–(2)). See also,
exorders.shtml). Comments are also related to flexibly structured options e.g., Securities Exchange Release Act Nos. 62658
(‘‘FLEX Options’’). The text of the (August 5, 2010), 75 FR 49010 (August 12,
available for website viewing and 2010)(SR–CBOE–2009–075 proposal notice) and
printing in the Commission’s Public proposed rule change is available on the 62911 (September 14, 2010), 75 FR 57539
Reference Room, 100 F St. NE, Exchange’s website (http:// (September 21, 2010) (SR–CBOE–2009–075
Washington, DC 20549 on official www.cboe.com/AboutCBOE/ approval order)(footnote 8 of the proposal notice
daltland on DSKBBV9HB2PROD with NOTICES
CBOELegalRegulatoryHome.aspx), at indicates that FLEX Options do not become
business days between the hours of 10 fungible with subsequently introduced Non-FLEX
a.m. and 3 p.m. All comments received the Exchange’s Office of the Secretary, structured quarterly and short term options and
will be posted without change. Persons and at the Commission’s Public that, because of the similarities between EOW and
submitting comments are cautioned that Reference Room. EOM expirations and existing Non-FLEX structured
quarterly and short term options, FLEX Options
the Commission does not redact or edit will similarly not become fungible with EOW and
personal identifying information from 1 15 U.S.C. 78s(b)(1). EOM expirations listed for trading). As previously
comment submissions. You should 2 17 CFR 240.19b–4. noted, Rule 24.9(e) was amended to include
VerDate Sep<11>2014 17:18 Feb 07, 2018 Jkt 244001 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 E:\FR\FM\08FEN1.SGM 08FEN1](https://thefederalregister.org/doc/83_FR_5695/page/1.svg)
![Federal Register / Vol. 83, No. 27 / Thursday, February 8, 2018 / Notices 5671
post all comments on the Commission’s and Exchange Commission trading of Trust Issued Receipts.5 The
internet website (http://www.sec.gov/ (‘‘Commission’’) the proposed rule Shares will be offered by the Metaurus
rules/sro.shtml). Copies of the change as described in Items I and II Equity Component Trust (the ‘‘Trust’’).
submission, all subsequent below, which Items have been prepared Each Fund is a series of the Trust.6
amendments, all written statements by the self-regulatory organization. The Shares of the Funds have been approved
with respect to the proposed rule Commission is publishing this notice to by the Commission for listing and
change that are filed with the solicit comments on the proposed rule trading on the Exchange under NYSE
Commission, and all written change from interested persons. Arca Rule 8.200–E, Commentary .02.
communications relating to the The Funds’ Shares have not commenced
proposed rule change between the I. Self-Regulatory Organization’s trading on the Exchange.
Commission and any person, other than Statement of the Terms of Substance of With respect to the U.S. Equity Ex-
those that may be withheld from the the Proposed Rule Change Dividend Fund—Series 2027 Fund (‘‘Ex-
public in accordance with the The Exchange proposes (1) to reflect Dividend Fund’’), the Prior Releases
provisions of 5 U.S.C. 552, will be a change in the description of the index stated that, according to the Registration
available for website viewing and underlying shares (‘‘Shares’’) of the U.S. Statement, the Ex-Dividend Fund will
printing in the Commission’s Public Equity Ex-Dividend Fund—Series 2027; seek investment results that, before fees
Reference Room, 100 F Street NE, and (2) to revise the reference to the and expenses, correspond to the
Washington, DC 20549 on official Custodian for the U.S. Equity performance of the Solactive U.S. Equity
business days between the hours of Cumulative Dividends Fund—Series Ex-Dividends Index—Series 2027 so as
10:00 a.m. and 3:00 p.m. Copies of the 2027 and the U.S. Equity Ex-Dividend to provide shareholders of the Ex-
filing also will be available for Fund—Series 2027 (each a ‘‘Fund’’ and, Dividend Fund with returns that are
inspection and copying at the principal collectively, the ‘‘Funds’’). Shares of the equivalent to the performance of 0.5
office of the Exchange. All comments Funds have been approved by the shares of SPDR® S&P 500 ETF
received will be posted without change. Securities and Exchange Commission (‘‘SPDRs’’) less the value of current and
Persons submitting comments are (the ‘‘Commission’’) for listing and future expected ordinary cash dividends
cautioned that we do not redact or edit trading on the Exchange under NYSE to be paid on the S&P 500 constituent
personal identifying information from Arca Rule 8.200–E, Commentary .02. companies over the term of the Ex-
comment submissions. You should The proposed rule change is available Dividend Fund. In addition, the Prior
submit only information that you wish on the Exchange’s website at Releases stated that, according to the
to make available publicly. All www.nyse.com, at the principal office of Registration Statement, the Solactive Ex-
submissions should refer to File the Exchange, and at the Commission’s Dividend Index aims to represent the
Number SR–CBOE–2018–008 and Public Reference Room. current value of 0.5 shares of SPDRs,
should be submitted on or before March less the current value of ordinary cash
1, 2018. II. Self-Regulatory Organization’s dividends expected to be paid on the
Statement of the Purpose of, and S&P 500, until the Ex-Dividend Fund’s
For the Commission, by the Division of Statutory Basis for, the Proposed Rule
Trading and Markets, pursuant to delegated maturity as represented by the Solactive
authority.13
Change Dividend Index and, because the
Eduardo A. Aleman, In its filing with the Commission, the Solactive Ex-Dividend Index tracks the
Assistant Secretary. self-regulatory organization included performance of 0.5 shares of SPDRs and
[FR Doc. 2018–02482 Filed 2–7–18; 8:45 am]
statements concerning the purpose of, sums up the discounted values of the
and basis for, the proposed rule change Annual S&P 500 Dividend Futures
BILLING CODE 8011–01–P
and discussed any comments it received Contracts, no weighting is applied.
on the proposed rule change. The text The Ex-Dividend Fund proposes to
SECURITIES AND EXCHANGE of those statements may be examined at change these representations to state
COMMISSION the places specified in Item IV below.
The Exchange has prepared summaries, 2017) (SR–NYSEArca–2017–88) (Order Approving
[Release No. 34–82625; File No. SR– Proposed Rule Change to List and Trade the Shares
set forth in sections A, B, and C below, of the U.S. Equity Cumulative Dividends Fund—
NYSEArca–2018–11]
of the most significant parts of such Series 2027 (‘‘Dividend Fund’’) and the U.S. Equity
Self-Regulatory Organizations; NYSE statements. Ex-Dividend Fund—Series 2027 under NYSE Arca
Equities Rule 8.200, Commentary .02) (‘‘Prior
Arca, Inc.; Notice of Filing and A. Self-Regulatory Organization’s Order’’). See also Amendment No. 1 to SR–
Immediate Effectiveness of Proposed Statement of the Purpose of, and the NYSEArca–2017–88, filed November 14, 2017
Rule Change Relating to Certain (‘‘Amendment No. 1’’), and Amendment No. 2 to
Statutory Basis for, the Proposed Rule SR–NYSEArca-2017–88 (‘‘Amendment No. 2’’),
Changes Regarding the U.S. Equity Change filed November 16, 2017. Amendment No. 1,
Cumulative Dividends Fund—Series Amendment No. 2 and the Prior Order are referred
2027 and the U.S. Equity Ex-Dividend 1. Purpose to collectively as the ‘‘Prior Releases’’. All terms
referenced but not defined herein are defined in the
Fund—Series 2027 The Commission has approved a Prior Releases.
proposed rule change relating to listing 5 Commentary .02 to NYSE Arca Rule 8.200–E
February 2, 2018. and trading on the Exchange of Shares applies to Trust Issued Receipts that invest in
Pursuant to Section 19(b)(1) 1 of the of the Funds under NYSE Arca Rule ‘‘Financial Instruments.’’ The term ‘‘Financial
Securities Exchange Act of 1934 8.200–E,4 which governs the listing and Instruments,’’ as defined in Commentary .02(b)(4) to
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3 NYSE Arca Rule 8.200–E, means any combination
of investments, including cash; securities; options
notice is hereby given that on February
daltland on DSKBBV9HB2PROD with NOTICES
4 See Securities Exchange Act Release Nos. 81453
on securities and indices; futures contracts; options
1, 2018, NYSE Arca, Inc. (‘‘Exchange’’ or (August 22, 2017), 82 FR 40816 (August 28, 2017) on futures contracts; forward contracts; equity caps,
‘‘NYSE Arca’’) filed with the Securities (SR–NYSEArca–2017–88) (Notice of Filing of collars, and floors; and swap agreements.
Proposed Rule Change to List and Trade the Shares 6 On January 30, 2018, the Trust filed with the
13 17
of the U.S. Equity Cumulative Dividends Fund— Commission Pre-Effective Amendment No. 4 to its
CFR 200.30–3(a)(12). Series 2027 and the U.S. Equity Ex-Dividend registration statement on Form S–1 under the
1 15 U.S.C. 78s(b)(1). Fund—Series 2027 under NYSE Arca Equities Rule Securities Act of 1933 (15 U.S.C. 77a) relating to the
2 15 U.S.C. 78a.
8.200, Commentary .02) (‘‘Prior Notice’’); 82138 Funds (File No. 333–221591) (the ‘‘Registration
3 17 CFR 240.19b–4. (November 21, 2017), 82 FR 56311 (November 28, Statement’’).
VerDate Sep<11>2014 17:18 Feb 07, 2018 Jkt 244001 PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 E:\FR\FM\08FEN1.SGM 08FEN1](https://thefederalregister.org/doc/83_FR_5695/page/4.svg)
Document Created: 2018-02-08 00:16:11
Document Modified: 2018-02-08 00:16:11
| 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 5668 |
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