83_FR_8347 83 FR 8309 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change to List and Trade Shares of the Innovator S&P 500 15% Shield Strategy ETF Series, Innovator S&P 500 −5% to −35% Shield Strategy ETF Series, Innovator S&P 500 Enhance and 10% Shield Strategy ETF Series, and Innovator S&P 500 Ultra Strategy ETF Series Under Rule 14.11(i)

83 FR 8309 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change to List and Trade Shares of the Innovator S&P 500 15% Shield Strategy ETF Series, Innovator S&P 500 −5% to −35% Shield Strategy ETF Series, Innovator S&P 500 Enhance and 10% Shield Strategy ETF Series, and Innovator S&P 500 Ultra Strategy ETF Series Under Rule 14.11(i)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 38 (February 26, 2018)

Page Range8309-8312
FR Document2018-03785

Federal Register, Volume 83 Issue 38 (Monday, February 26, 2018)
[Federal Register Volume 83, Number 38 (Monday, February 26, 2018)]
[Notices]
[Pages 8309-8312]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-03785]



[[Page 8309]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82739; File No. SR-BatsBZX-2017-72]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order 
Instituting Proceedings To Determine Whether To Approve or Disapprove a 
Proposed Rule Change to List and Trade Shares of the Innovator S&P 500 
15% Shield Strategy ETF Series, Innovator S&P 500 -5% to -35% Shield 
Strategy ETF Series, Innovator S&P 500 Enhance and 10% Shield Strategy 
ETF Series, and Innovator S&P 500 Ultra Strategy ETF Series Under Rule 
14.11(i)

February 20, 2018.

I. Introduction

    On November 7, 2017, Cboe BZX Exchange, Inc. (``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) \1\ of the Securities 
Exchange Act of 1934 (``Exchange Act'') \2\ and Rule 19b-4 
thereunder,\3\ a proposed rule change to list and trade shares 
(``Shares'') of the Innovator S&P 500 15% Shield Strategy ETF Series 
(``Shield Funds''), Innovator S&P 500 -5% to -35% Shield Strategy ETF 
Series (``Ultra Shield Funds''), Innovator S&P 500 Enhance and 10% 
Shield Strategy ETF Series (``Enhance and Shield Funds''), and 
Innovator S&P 500 Ultra Strategy ETF Series (``Ultra Funds,'' and 
together with the Shield Funds, Ultra Shield Funds, and Enhance and 
Shield Funds, the ``Funds'') under BZX Rule 14.11(i). The proposed rule 
change was published for comment in the Federal Register on November 
22, 2017.\4\ On December 21, 2017, the Commission extended the time 
period within which to approve the proposed rule change, disapprove the 
proposed rule change, or institute proceedings to determine whether to 
approve or disapprove the proposed rule change to February 20, 2018.\5\ 
The Commission received no comments on the proposed rule change. This 
order institutes proceedings under Section 19(b)(2)(B) of the Exchange 
Act to determine whether to disapprove the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ See Securities Exchange Act Release No. 82097 (November 16, 
2017), 82 FR 55689 (``Notice'').
    \5\ See Securities Exchange Act Release No. 82387, 82 FR 61613 
(December 28, 2017).
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change 6
---------------------------------------------------------------------------

    \6\ A more detailed description of the Trust, the Funds, and the 
Shares, as well as the availability of price information values and 
other information regarding the Funds' portfolio holdings, is 
included in the Registration Statement (defined below). See infra 
note 7.
---------------------------------------------------------------------------

    The Exchange proposes to list and trade the Shares under BZX Rule 
14.11(i), which governs the listing and trading of Managed Fund Shares 
on the Exchange. In total, the Exchange is proposing to list and trade 
Shares of up to twelve monthly series of each of the Funds. The Shares 
would be offered by Innovator ETFs Trust (``Trust''), a Delaware 
statutory trust.\7\ The investment adviser to the Funds is Innovator 
Capital Management LLC (``Adviser''), and the sub-adviser to the Funds 
is Milliman Financial Risk Management LLC (``Sub-Adviser'').
---------------------------------------------------------------------------

    \7\ The Trust is registered with the Commission as an investment 
company and has filed a registration statement with the Commission 
on Form N-1A (File Nos. 333-146827 and 811-22135) (``Registration 
Statement'') under the Securities Act of 1933 (15 U.S.C. 77a), dated 
October 19, 2017. The description of the operation of the Funds and 
the Shares herein is based, in part, on the Registration Statement.
---------------------------------------------------------------------------

A. Innovator S&P 500 15% Shield Strategy ETF Series

    The Shield Funds are actively managed funds that seek to outperform 
the Cboe S&P 500 15% Buffer Protect Index Series (``Shield Index'') 
before expenses are taken into account. The Shield Index is designed to 
provide investment returns that, over a period of approximately one 
year, match those of the S&P 500 Index, up to a maximized annual return 
(``Shield Cap Level''),\8\ while guarding against a decline in the S&P 
500 Index for the first 15%. Specifically, the Shield Index is designed 
to provide the following results during the outcome period:
---------------------------------------------------------------------------

    \8\ The Exchange states that the Shield Cap Level would be 
determined with respect to each Shield Fund on the inception date of 
the Shield Fund and at the beginning of each outcome period. See 
Notice, supra note 4, 82 FR at 55691.
---------------------------------------------------------------------------

     If the S&P 500 Index appreciates over the outcome period: 
The Shield Index is designed to provide a total return that matches the 
percentage increase of the S&P 500 Index, up to the Shield Cap Level;
     If the S&P 500 Index decreases over the outcome period by 
15% or less: The Shield Index is designed to provide a total return of 
zero; and
     If the S&P 500 Index depreciates over the outcome period 
by greater than 15%: The Shield Index is designed to provide a total 
return loss that is 15% less than the percentage loss on the S&P 500 
Index with a maximum loss of approximately 85%.\9\

    \9\ The Exchange states that the Shield Funds would not offer 
any protection against declines in the S&P 500 Index exceeding 15% 
on an annualized basis. See id. at 55691. Shareholders would bear 
all S&P 500 Index losses exceeding 15% on a one-to-one basis. See 
id.
---------------------------------------------------------------------------

The Shield Index is designed to produce these outcomes by including 
theoretically ``purchased'' and ``written'' FLexible EXchange Options 
(``FLEX Options'') that, when layered upon each other, are designed to 
buffer against losses of the S&P 500 Index and cap the level of 
possible gains.
    Under Normal Market Conditions,\10\ each Shield Fund would attempt 
to achieve its investment objective by taking positions that provide 
performance exposure substantially similar to the exposure provided by 
components of the Shield Index.\11\ Each Shield Fund would invest 
primarily in the FLEX Options included in the Shield Index or 
standardized options contracts listed on a U.S. exchange that reference 
either the S&P 500 Index or exchange traded funds (``ETFs'') that track 
the S&P 500 Index.\12\ Any FLEX Options written by a Shield Fund that 
create an obligation to sell or buy an asset would be offset with a 
position in FLEX Options purchased by the Shield Fund to create the 
right to buy or sell the same asset such that the Shield Fund would 
always be in a net long position. As the FLEX Options mature at the end 
of each outcome period, they would be replaced annually to ensure that 
investments made by the Shield Fund in a given month during the current 
year buffer against negative returns of the S&P 500 Index up to pre-
determined levels in that same month of the following year.
---------------------------------------------------------------------------

    \10\ As defined in Rule 14.11(i)(3)(E), the term ``Normal Market 
Conditions'' includes, but is not limited to, the absence of trading 
halts in the applicable financial markets generally; operational 
issues causing dissemination of inaccurate market information or 
system failures; or force majeure type events such as natural or 
man-made disaster, act of God, armed conflict, act of terrorism, 
riot or labor disruption, or any similar intervening circumstance.
    \11\ The Shield Funds are not index tracking funds and are not 
required to invest in all components of the Shield Index. See 
Notice, supra note 4, 82 FR at 55691, n.10
    \12\ The FLEX Options owned by each of the Shield Funds would 
have the same terms (i.e., same strike price and expiration) for all 
investors of a Shield Fund within an outcome period. See id. at 
55691.
---------------------------------------------------------------------------

B. Innovator S&P 500 -5% to -35% Shield Strategy ETF Series

    The Ultra Shield Funds are actively managed funds that seek to 
provide total returns that exceed that of the Cboe S&P 500 30% (-5% to 
-35%) Buffer Protect Index Series (``Ultra Shield

[[Page 8310]]

Index''), before expenses are taken into account. The Ultra Shield 
Index is designed to provide investment returns that, over a period of 
approximately one year, match those of the S&P 500 Index, up to a 
maximized annual return (``Ultra Shield Cap Level''),\13\ while 
guarding against a decline in the S&P 500 Index of between 5% and 35%. 
Specifically, the Ultra Shield Index is designed to produce the 
following results during outcome period:
---------------------------------------------------------------------------

    \13\ The Ultra Shield Cap Level would be determined with respect 
to each Ultra Shield Fund on the inception date of the Ultra Shield 
Fund and at the beginning of each outcome period. See id. at 55692.
---------------------------------------------------------------------------

     If the S&P 500 Index appreciates over the outcome period: 
The Ultra Shield Index is designed to provide a total return that 
matches the percentage increase of the S&P 500 Index, up to the Ultra 
Shield Cap Level;
     If the S&P 500 Index decreases over the outcome period by 
5% or less: The Ultra Shield Index is designed to provide a total 
return loss that is equal to the percentage loss on the S&P 500 Index;
     If the S&P 500 Index decreases over the outcome period by 
5%-35%: The Ultra Shield Index is designed to provide a total return 
loss of 5%; and
     If the S&P 500 Index decreases over the outcome period by 
more than 35%: The Ultra Shield Index is designed to provide a total 
return loss that is 30% less than the percentage loss on the S&P 500 
Index with a maximum loss of approximately 70%.\14\
---------------------------------------------------------------------------

    \14\ The Exchange states that the Ultra Shield Funds would not 
offer any protection against declines in the S&P 500 Index exceeding 
35% on an annualized basis. See id. Shareholders would bear all S&P 
500 Index losses exceeding 35% on a one-to-one basis. See id.
---------------------------------------------------------------------------

    The Ultra Shield Index is designed to produce these outcomes by 
including theoretically ``purchased'' and ``written'' FLEX Options 
that, when layered upon each other, are designed to buffer against 
losses of the S&P 500 Index.
    Under Normal Market Conditions, each Ultra Shield Fund would 
attempt to achieve its investment objective by taking positions that 
provide performance exposure substantially similar to the exposure 
provided by components of the Ultra Shield Index.\15\ Each Ultra Shield 
Fund would invest primarily in the FLEX Options included in the Ultra 
Shield Index or standardized options contracts listed on a U.S. 
exchange that reference either the S&P 500 Index or ETFs that track the 
S&P 500 Index.\16\ Any FLEX Options written by an Ultra Shield Fund 
that create an obligation to sell or buy an asset would be offset with 
a position in FLEX Options purchased by the Ultra Shield Fund to create 
the right to buy or sell the same asset such that the Ultra Shield Fund 
would always be in a net long position. As the FLEX Options mature at 
the end of each outcome period, they would be replaced annually to 
ensure that investments made in a given month during the current year 
buffer against negative returns of the S&P 500 Index up to pre-
determined levels in that same month of the following year.
---------------------------------------------------------------------------

    \15\ The Exchange states that the Ultra Shield Funds are not 
index tracking funds and are not required to invest in all 
components of the Ultra Shield Index. See id. at 55692, n.11.
    \16\ The Exchange states that the FLEX Options owned by each of 
the Ultra Shield Funds would have the same terms (i.e., same strike 
price and expiration) for all investors of an Ultra Shield Fund 
within an outcome period. See id. at 55692.
---------------------------------------------------------------------------

C. Innovator S&P 500 Enhance and 10% Shield Strategy ETF Series

    The Enhance and Shield Funds are actively managed funds that would 
seek to provide investment returns during the outcome period that 
exceed the gains of the S&P 500 Index, up to a maximized annual return 
(``Enhance and Shield Cap Level''),\17\ while guarding against a 
decline in the S&P 500 Index of the first 10%.\18\ Pursuant to the 
Enhance and Shield Strategy, each Enhance and Shield Fund would seek to 
produce the following outcomes for shareholders holding its shares 
during the outcome period:
---------------------------------------------------------------------------

    \17\ The Enhance and Shield Cap Level would be determined with 
respect to each Enhance and Shield Fund on the inception date of the 
Enhance and Shield Fund and at the beginning of each outcome period. 
See id. at 55693.
    \18\ Unlike the Shield Funds and Ultra Shield Funds, the Enhance 
and Shield Funds would not utilize benchmark indexes.
---------------------------------------------------------------------------

     If the S&P 500 Index appreciates over the outcome period: 
The Enhance and Shield Fund would seek to provide shareholders with a 
total return that exceeds that of the S&P 500 Index, up to and 
including the Enhance and Shield Cap Level;
     If the S&P 500 Index depreciates over the outcome period 
by 10% or less: The Enhance and Shield Fund would seek to provide a 
total return of zero;
     If the S&P 500 Index decreases over the outcome period by 
more than 10%: The Enhance and Shield Fund would seek to provide a 
total return loss that is 10% less than the percentage loss on the S&P 
500 Index with a maximum loss of approximately 90%.
    The portfolio managers of the Enhance and Shield Funds would seek 
to produce those results by investing primarily in FLEX Options or 
standardized options contracts listed on a U.S. exchange that reference 
either the S&P 500 Index or ETFs that track the S&P 500 Index.\19\ The 
portfolio managers would purchase and write FLEX Options that, when 
layered upon each other, are designed to buffer against losses of the 
S&P 500 Index or cap the level of possible gains. Any FLEX Options 
written that create an obligation to sell or buy an asset would be 
offset with a position in FLEX Options purchased by the Enhance and 
Shield Fund to create the right to buy or sell the same asset such that 
the Enhance and Shield Fund would always be in a net long position. As 
the FLEX Options mature at the end of each outcome period, they would 
be replaced annually to ensure that investments made in a given month 
during the current year buffer against negative returns of the S&P 500 
Index up to pre-determined levels in that same month of the following 
year.
---------------------------------------------------------------------------

    \19\ The FLEX Options owned by each of the Enhance and Shield 
Funds would have the same terms (i.e., same strike price and 
expiration) for all investors of an Enhance and Shield Fund within 
an outcome period. See Notice, supra note 4, 82 FR at 55693.
---------------------------------------------------------------------------

D. Innovator S&P 500 Ultra Strategy ETF Series

    The Ultra Funds are actively managed funds that would seek to 
provide during the outcome period total returns that exceed those of 
the S&P 500 Index, up to a maximized annual return (``Ultra Cap 
Level'').\20\ Each Ultra Fund would seek to produce the following 
results for shareholders that hold its shares during the outcome 
period:
---------------------------------------------------------------------------

    \20\ The Exchange states that the Ultra Cap Level would be 
determined with respect to each Ultra Fund on inception date of the 
Ultra Fund and at the beginning of each outcome period. See Notice, 
supra note 4, 82 FR at 55693. Similar to the Enhance and Shield 
Funds, the Ultra Funds would not utilize benchmark indexes.
---------------------------------------------------------------------------

     If the S&P 500 Index appreciates over the outcome period: 
The Ultra Fund would seek to provide shareholders with a total return 
that exceeds that of the S&P 500 Index, up to the Ultra Cap Level; and
     If the S&P 500 Index decreases over the outcome period: 
The Ultra Fund would seek to provide a total return loss that is equal 
to the percentage loss of the S&P 500 Index.
    The portfolio managers of the Ultra Funds would seek to produce 
those results by investing primarily in FLEX Options or standardized 
options contracts listed on a U.S. exchange that reference either the 
S&P 500 Index or ETFs that track the S&P 500 Index. The portfolio 
managers would purchase and write FLEX Options that, when layered upon 
each other, are designed to exceed

[[Page 8311]]

the gains of the S&P 500 Index, subject to the Ultra Cap Level. Any 
FLEX Options that written by the Ultra Fund that create an obligation 
to sell or buy an asset would be offset with a position in FLEX Options 
purchased by the Ultra Fund to create the right to buy or sell the same 
asset such that the Ultra Fund would always be in a net long position. 
As the FLEX Options mature at the end of each outcome period, they 
would be replaced.

E. Investment Methodology for the Funds

    As mentioned above, under Normal Market Conditions, each Fund would 
seek to achieve its respective investment objective by investing 
primarily in U.S. exchange-listed FLEX Options on the S&P 500 Index. 
Each of the Funds might invest its net assets (in the aggregate) in 
other investments which the Adviser or Sub-Adviser believes would help 
each Fund meet its investment objective and that would be disclosed at 
the end of each trading day (``Other Assets'').\21\
---------------------------------------------------------------------------

    \21\ Other Assets include only cash or cash equivalents, as 
defined in BZX Rule 14.11(i)(4)(C)(iii), and traditional U.S. 
exchange-traded options contracts that reference either the S&P 500 
Index or ETFs that track the S&P 500 Index. As defined in BZX Rule 
14.11(i)(4)(C)(iii), cash equivalents include short-term instruments 
with maturities of less than three months, including: (i) U.S. 
Government securities, including bills, notes, and bonds differing 
as to maturity and rates of interest, which are either issued or 
guaranteed by the U.S. Treasury or by U.S. Government agencies or 
instrumentalities; (ii) certificates of deposit issued against funds 
deposited in a bank or savings and loan association; (iii) bankers 
acceptances, which are short-term credit instruments used to finance 
commercial transactions; (iv) repurchase agreements and reverse 
repurchase agreements; (v) bank time deposits, which are monies kept 
on deposit with banks or savings and loan associations for a stated 
period of time at a fixed rate of interest; (vi) commercial paper, 
which are short-term unsecured promissory notes; and (vii) money 
market funds.
---------------------------------------------------------------------------

III. Proceedings To Determine Whether To Disapprove SR-BatsBZX-2017-72 
and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section 
19(b)(2)(B) of the Exchange Act \22\ to determine whether the proposed 
rule change should be approved or disapproved. Institution of such 
proceedings is appropriate at this time in view of the legal and policy 
issues raised by the proposed rule change. Institution of proceedings 
does not indicate that the Commission has reached any conclusions with 
respect to any of the issues involved. Rather, as described below, the 
Commission seeks and encourages interested persons to provide comments 
on the proposed rule change.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Exchange Act,\23\ the 
Commission is providing notice of the grounds for disapproval under 
consideration. The Commission is instituting proceedings to allow for 
additional analysis of the proposal's consistency with Section 6(b)(5) 
of the Exchange Act, 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, and to protect investors and the public 
interest.\24\
---------------------------------------------------------------------------

    \23\ Id.
    \24\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Under the proposal, the defined outcome strategies for each Fund 
are designed to participate in market gains and losses within pre-
determined ranges over a specified period. Specifically, these outcomes 
are predicated on the Shares being bought at the beginning and sold at 
the end of the designated outcome period. The Commission notes that 
market participants may buy and sell Shares of the Funds at any time. 
Accordingly, with respect to the performance of the Shares at any time 
other than the commencement of the applicable outcome period, the 
Commission seeks commenters' views on the sufficiency of the 
information provided in the proposed rule change to support a 
determination that the listing and trading of the Shares would be 
consistent with Section 6(b)(5) of the Exchange Act.

IV. Procedure: Request for Written Comments

    Interested persons are invited to submit written views, data, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with Section 6(b)(5) or any other provision of the 
Exchange Act, or the rules and regulations thereunder. Although there 
do not appear to be any issues relevant to approval or disapproval that 
would be facilitated by an oral presentation of views, data, and 
arguments, the Commission will consider, pursuant to Rule 19b-4, any 
request for an opportunity to make an oral presentation.\25\
---------------------------------------------------------------------------

    \25\ Section 19(b)(2) of the Exchange Act, as amended by the 
Securities Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), 
grants the Commission flexibility to determine what type of 
proceeding--either oral or notice and opportunity for written 
comments--is appropriate for consideration of a particular proposal 
by a self-regulatory organization. See Securities Acts Amendments of 
1975, Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 
75, 94th Cong., 1st Sess. 30 (1975).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views, and 
arguments regarding whether the proposal should be approved or 
disapproved by March 19, 2018. Any person who wishes to file a rebuttal 
to any other person's submission must file that rebuttal by April 2, 
2018.
    Comments may be submitted by any of the following methods:

Electronic Comments

     Use 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-BatsBZX-2017-72 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-BatsBZX-2017-72. 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-BatsBZX-2017-72 and should be submitted 
on or before March 19, 2018. Rebuttal comments should be submitted by 
April 2, 2018.


[[Page 8312]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
---------------------------------------------------------------------------

    \26\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-03785 Filed 2-23-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                                            Federal Register / Vol. 83, No. 38 / Monday, February 26, 2018 / Notices                                                        8309

                                               SECURITIES AND EXCHANGE                                 II. Description of the Proposed Rule                    500 Index with a maximum loss of
                                               COMMISSION                                              Change 6                                                approximately 85%.9
                                                                                                                                                               The Shield Index is designed to produce
                                                                                                          The Exchange proposes to list and                    these outcomes by including
                                               [Release No. 34–82739; File No. SR–                     trade the Shares under BZX Rule                         theoretically ‘‘purchased’’ and ‘‘written’’
                                               BatsBZX–2017–72]                                        14.11(i), which governs the listing and                 FLexible EXchange Options (‘‘FLEX
                                                                                                       trading of Managed Fund Shares on the                   Options’’) that, when layered upon each
                                               Self-Regulatory Organizations; Cboe                     Exchange. In total, the Exchange is
                                               BZX Exchange, Inc.; Order Instituting                                                                           other, are designed to buffer against
                                                                                                       proposing to list and trade Shares of up                losses of the S&P 500 Index and cap the
                                               Proceedings To Determine Whether To                     to twelve monthly series of each of the                 level of possible gains.
                                               Approve or Disapprove a Proposed                        Funds. The Shares would be offered by                      Under Normal Market Conditions,10
                                               Rule Change to List and Trade Shares                    Innovator ETFs Trust (‘‘Trust’’), a                     each Shield Fund would attempt to
                                               of the Innovator S&P 500 15% Shield                     Delaware statutory trust.7 The                          achieve its investment objective by
                                               Strategy ETF Series, Innovator S&P                      investment adviser to the Funds is                      taking positions that provide
                                               500 Ø5% to Ø35% Shield Strategy ETF                     Innovator Capital Management LLC                        performance exposure substantially
                                               Series, Innovator S&P 500 Enhance                       (‘‘Adviser’’), and the sub-adviser to the               similar to the exposure provided by
                                               and 10% Shield Strategy ETF Series,                     Funds is Milliman Financial Risk                        components of the Shield Index.11 Each
                                               and Innovator S&P 500 Ultra Strategy                    Management LLC (‘‘Sub-Adviser’’).                       Shield Fund would invest primarily in
                                               ETF Series Under Rule 14.11(i)                          A. Innovator S&P 500 15% Shield                         the FLEX Options included in the
                                                                                                       Strategy ETF Series                                     Shield Index or standardized options
                                               February 20, 2018.                                                                                              contracts listed on a U.S. exchange that
                                                                                                         The Shield Funds are actively                         reference either the S&P 500 Index or
                                               I. Introduction
                                                                                                       managed funds that seek to outperform                   exchange traded funds (‘‘ETFs’’) that
                                                  On November 7, 2017, Cboe BZX                        the Cboe S&P 500 15% Buffer Protect                     track the S&P 500 Index.12 Any FLEX
                                               Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’)                Index Series (‘‘Shield Index’’) before                  Options written by a Shield Fund that
                                               filed with the Securities and Exchange                  expenses are taken into account. The                    create an obligation to sell or buy an
                                               Commission (‘‘Commission’’), pursuant                   Shield Index is designed to provide                     asset would be offset with a position in
                                               to Section 19(b)(1) 1 of the Securities                 investment returns that, over a period of               FLEX Options purchased by the Shield
                                               Exchange Act of 1934 (‘‘Exchange                        approximately one year, match those of                  Fund to create the right to buy or sell
                                               Act’’) 2 and Rule 19b–4 thereunder,3 a                  the S&P 500 Index, up to a maximized                    the same asset such that the Shield
                                                                                                       annual return (‘‘Shield Cap Level’’),8                  Fund would always be in a net long
                                               proposed rule change to list and trade
                                                                                                       while guarding against a decline in the                 position. As the FLEX Options mature at
                                               shares (‘‘Shares’’) of the Innovator S&P
                                                                                                       S&P 500 Index for the first 15%.                        the end of each outcome period, they
                                               500 15% Shield Strategy ETF Series                      Specifically, the Shield Index is
                                               (‘‘Shield Funds’’), Innovator S&P 500                                                                           would be replaced annually to ensure
                                                                                                       designed to provide the following                       that investments made by the Shield
                                               ¥5% to ¥35% Shield Strategy ETF                         results during the outcome period:
                                               Series (‘‘Ultra Shield Funds’’), Innovator                                                                      Fund in a given month during the
                                                                                                         • If the S&P 500 Index appreciates                    current year buffer against negative
                                               S&P 500 Enhance and 10% Shield                          over the outcome period: The Shield                     returns of the S&P 500 Index up to pre-
                                               Strategy ETF Series (‘‘Enhance and                      Index is designed to provide a total                    determined levels in that same month of
                                               Shield Funds’’), and Innovator S&P 500                  return that matches the percentage                      the following year.
                                               Ultra Strategy ETF Series (‘‘Ultra                      increase of the S&P 500 Index, up to the
                                               Funds,’’ and together with the Shield                   Shield Cap Level;                                       B. Innovator S&P 500 ¥5% to ¥35%
                                               Funds, Ultra Shield Funds, and                            • If the S&P 500 Index decreases over                 Shield Strategy ETF Series
                                               Enhance and Shield Funds, the                           the outcome period by 15% or less: The                    The Ultra Shield Funds are actively
                                               ‘‘Funds’’) under BZX Rule 14.11(i). The                 Shield Index is designed to provide a                   managed funds that seek to provide total
                                               proposed rule change was published for                  total return of zero; and                               returns that exceed that of the Cboe S&P
                                               comment in the Federal Register on                        • If the S&P 500 Index depreciates                    500 30% (¥5% to ¥35%) Buffer
                                               November 22, 2017.4 On December 21,                     over the outcome period by greater than                 Protect Index Series (‘‘Ultra Shield
                                               2017, the Commission extended the                       15%: The Shield Index is designed to
                                               time period within which to approve                     provide a total return loss that is 15%                    9 The Exchange states that the Shield Funds

                                               the proposed rule change, disapprove                                                                            would not offer any protection against declines in
                                                                                                       less than the percentage loss on the S&P                the S&P 500 Index exceeding 15% on an annualized
                                               the proposed rule change, or institute                                                                          basis. See id. at 55691. Shareholders would bear all
                                               proceedings to determine whether to                        6 A more detailed description of the Trust, the      S&P 500 Index losses exceeding 15% on a one-to-
                                               approve or disapprove the proposed                      Funds, and the Shares, as well as the availability      one basis. See id.
                                               rule change to February 20, 2018.5 The                  of price information values and other information          10 As defined in Rule 14.11(i)(3)(E), the term

                                                                                                       regarding the Funds’ portfolio holdings, is included    ‘‘Normal Market Conditions’’ includes, but is not
                                               Commission received no comments on                      in the Registration Statement (defined below). See      limited to, the absence of trading halts in the
                                               the proposed rule change. This order                    infra note 7.                                           applicable financial markets generally; operational
                                               institutes proceedings under Section                       7 The Trust is registered with the Commission as     issues causing dissemination of inaccurate market
                                                                                                       an investment company and has filed a registration      information or system failures; or force majeure
                                               19(b)(2)(B) of the Exchange Act to                                                                              type events such as natural or man-made disaster,
                                                                                                       statement with the Commission on Form N–1A
                                               determine whether to disapprove the                     (File Nos. 333–146827 and 811–22135)                    act of God, armed conflict, act of terrorism, riot or
                                               proposed rule change.                                   (‘‘Registration Statement’’) under the Securities Act   labor disruption, or any similar intervening
daltland on DSKBBV9HB2PROD with NOTICES




                                                                                                       of 1933 (15 U.S.C. 77a), dated October 19, 2017. The    circumstance.
                                                 1 15
                                                                                                       description of the operation of the Funds and the          11 The Shield Funds are not index tracking funds
                                                      U.S.C. 78s(b)(1).                                Shares herein is based, in part, on the Registration    and are not required to invest in all components of
                                                 2 15 U.S.C. 78a.                                      Statement.                                              the Shield Index. See Notice, supra note 4, 82 FR
                                                 3 17 CFR 240.19b–4.                                      8 The Exchange states that the Shield Cap Level      at 55691, n.10
                                                 4 See Securities Exchange Act Release No. 82097
                                                                                                       would be determined with respect to each Shield            12 The FLEX Options owned by each of the Shield
                                               (November 16, 2017), 82 FR 55689 (‘‘Notice’’).          Fund on the inception date of the Shield Fund and       Funds would have the same terms (i.e., same strike
                                                 5 See Securities Exchange Act Release No. 82387,      at the beginning of each outcome period. See            price and expiration) for all investors of a Shield
                                               82 FR 61613 (December 28, 2017).                        Notice, supra note 4, 82 FR at 55691.                   Fund within an outcome period. See id. at 55691.



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                                               8310                         Federal Register / Vol. 83, No. 38 / Monday, February 26, 2018 / Notices

                                               Index’’), before expenses are taken into                S&P 500 Index.16 Any FLEX Options                       a U.S. exchange that reference either the
                                               account. The Ultra Shield Index is                      written by an Ultra Shield Fund that                    S&P 500 Index or ETFs that track the
                                               designed to provide investment returns                  create an obligation to sell or buy an                  S&P 500 Index.19 The portfolio
                                               that, over a period of approximately one                asset would be offset with a position in                managers would purchase and write
                                               year, match those of the S&P 500 Index,                 FLEX Options purchased by the Ultra                     FLEX Options that, when layered upon
                                               up to a maximized annual return (‘‘Ultra                Shield Fund to create the right to buy                  each other, are designed to buffer
                                               Shield Cap Level’’),13 while guarding                   or sell the same asset such that the Ultra              against losses of the S&P 500 Index or
                                               against a decline in the S&P 500 Index                  Shield Fund would always be in a net                    cap the level of possible gains. Any
                                               of between 5% and 35%. Specifically,                    long position. As the FLEX Options                      FLEX Options written that create an
                                               the Ultra Shield Index is designed to                   mature at the end of each outcome                       obligation to sell or buy an asset would
                                               produce the following results during                    period, they would be replaced annually                 be offset with a position in FLEX
                                               outcome period:                                         to ensure that investments made in a                    Options purchased by the Enhance and
                                                 • If the S&P 500 Index appreciates                    given month during the current year                     Shield Fund to create the right to buy
                                               over the outcome period: The Ultra                      buffer against negative returns of the                  or sell the same asset such that the
                                               Shield Index is designed to provide a                   S&P 500 Index up to pre-determined                      Enhance and Shield Fund would always
                                               total return that matches the percentage                levels in that same month of the                        be in a net long position. As the FLEX
                                               increase of the S&P 500 Index, up to the                following year.                                         Options mature at the end of each
                                               Ultra Shield Cap Level;                                                                                         outcome period, they would be replaced
                                                                                                       C. Innovator S&P 500 Enhance and 10%
                                                 • If the S&P 500 Index decreases over                                                                         annually to ensure that investments
                                                                                                       Shield Strategy ETF Series
                                               the outcome period by 5% or less: The                                                                           made in a given month during the
                                                                                                          The Enhance and Shield Funds are                     current year buffer against negative
                                               Ultra Shield Index is designed to
                                                                                                       actively managed funds that would seek                  returns of the S&P 500 Index up to pre-
                                               provide a total return loss that is equal
                                                                                                       to provide investment returns during                    determined levels in that same month of
                                               to the percentage loss on the S&P 500
                                                                                                       the outcome period that exceed the                      the following year.
                                               Index;
                                                                                                       gains of the S&P 500 Index, up to a
                                                 • If the S&P 500 Index decreases over                 maximized annual return (‘‘Enhance                      D. Innovator S&P 500 Ultra Strategy
                                               the outcome period by 5%–35%: The                       and Shield Cap Level’’),17 while                        ETF Series
                                               Ultra Shield Index is designed to                       guarding against a decline in the S&P                     The Ultra Funds are actively managed
                                               provide a total return loss of 5%; and                  500 Index of the first 10%.18 Pursuant                  funds that would seek to provide during
                                                 • If the S&P 500 Index decreases over                 to the Enhance and Shield Strategy,                     the outcome period total returns that
                                               the outcome period by more than 35%:                    each Enhance and Shield Fund would                      exceed those of the S&P 500 Index, up
                                               The Ultra Shield Index is designed to                   seek to produce the following outcomes                  to a maximized annual return (‘‘Ultra
                                               provide a total return loss that is 30%                 for shareholders holding its shares                     Cap Level’’).20 Each Ultra Fund would
                                               less than the percentage loss on the S&P                during the outcome period:                              seek to produce the following results for
                                               500 Index with a maximum loss of                           • If the S&P 500 Index appreciates                   shareholders that hold its shares during
                                               approximately 70%.14                                    over the outcome period: The Enhance                    the outcome period:
                                                 The Ultra Shield Index is designed to                 and Shield Fund would seek to provide                     • If the S&P 500 Index appreciates
                                               produce these outcomes by including                     shareholders with a total return that                   over the outcome period: The Ultra
                                               theoretically ‘‘purchased’’ and ‘‘written’’             exceeds that of the S&P 500 Index, up                   Fund would seek to provide
                                               FLEX Options that, when layered upon                    to and including the Enhance and                        shareholders with a total return that
                                               each other, are designed to buffer                      Shield Cap Level;                                       exceeds that of the S&P 500 Index, up
                                               against losses of the S&P 500 Index.                       • If the S&P 500 Index depreciates                   to the Ultra Cap Level; and
                                                 Under Normal Market Conditions,                       over the outcome period by 10% or less:                   • If the S&P 500 Index decreases over
                                               each Ultra Shield Fund would attempt                    The Enhance and Shield Fund would                       the outcome period: The Ultra Fund
                                               to achieve its investment objective by                  seek to provide a total return of zero;                 would seek to provide a total return loss
                                               taking positions that provide                              • If the S&P 500 Index decreases over                that is equal to the percentage loss of the
                                               performance exposure substantially                      the outcome period by more than 10%:                    S&P 500 Index.
                                               similar to the exposure provided by                     The Enhance and Shield Fund would                         The portfolio managers of the Ultra
                                               components of the Ultra Shield Index.15                 seek to provide a total return loss that                Funds would seek to produce those
                                               Each Ultra Shield Fund would invest                     is 10% less than the percentage loss on                 results by investing primarily in FLEX
                                               primarily in the FLEX Options included                  the S&P 500 Index with a maximum loss                   Options or standardized options
                                               in the Ultra Shield Index or                            of approximately 90%.                                   contracts listed on a U.S. exchange that
                                               standardized options contracts listed on                   The portfolio managers of the                        reference either the S&P 500 Index or
                                               a U.S. exchange that reference either the               Enhance and Shield Funds would seek                     ETFs that track the S&P 500 Index. The
                                               S&P 500 Index or ETFs that track the                    to produce those results by investing                   portfolio managers would purchase and
                                                                                                       primarily in FLEX Options or                            write FLEX Options that, when layered
                                                  13 The Ultra Shield Cap Level would be               standardized options contracts listed on                upon each other, are designed to exceed
                                               determined with respect to each Ultra Shield Fund
                                               on the inception date of the Ultra Shield Fund and        16 The Exchange states that the FLEX Options            19 The FLEX Options owned by each of the
                                               at the beginning of each outcome period. See id. at     owned by each of the Ultra Shield Funds would           Enhance and Shield Funds would have the same
                                               55692.                                                  have the same terms (i.e., same strike price and        terms (i.e., same strike price and expiration) for all
                                                  14 The Exchange states that the Ultra Shield         expiration) for all investors of an Ultra Shield Fund   investors of an Enhance and Shield Fund within an
daltland on DSKBBV9HB2PROD with NOTICES




                                               Funds would not offer any protection against            within an outcome period. See id. at 55692.             outcome period. See Notice, supra note 4, 82 FR at
                                               declines in the S&P 500 Index exceeding 35% on            17 The Enhance and Shield Cap Level would be          55693.
                                               an annualized basis. See id. Shareholders would         determined with respect to each Enhance and               20 The Exchange states that the Ultra Cap Level
                                               bear all S&P 500 Index losses exceeding 35% on a        Shield Fund on the inception date of the Enhance        would be determined with respect to each Ultra
                                               one-to-one basis. See id.                               and Shield Fund and at the beginning of each            Fund on inception date of the Ultra Fund and at
                                                  15 The Exchange states that the Ultra Shield         outcome period. See id. at 55693.                       the beginning of each outcome period. See Notice,
                                               Funds are not index tracking funds and are not            18 Unlike the Shield Funds and Ultra Shield           supra note 4, 82 FR at 55693. Similar to the
                                               required to invest in all components of the Ultra       Funds, the Enhance and Shield Funds would not           Enhance and Shield Funds, the Ultra Funds would
                                               Shield Index. See id. at 55692, n.11.                   utilize benchmark indexes.                              not utilize benchmark indexes.



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                                                                            Federal Register / Vol. 83, No. 38 / Monday, February 26, 2018 / Notices                                                     8311

                                               the gains of the S&P 500 Index, subject                 provide comments on the proposed rule                   Interested persons are invited to
                                               to the Ultra Cap Level. Any FLEX                        change.                                               submit written data, views, and
                                               Options that written by the Ultra Fund                     Pursuant to Section 19(b)(2)(B) of the             arguments regarding whether the
                                               that create an obligation to sell or buy                Exchange Act,23 the Commission is                     proposal should be approved or
                                               an asset would be offset with a position                providing notice of the grounds for                   disapproved by March 19, 2018. Any
                                               in FLEX Options purchased by the Ultra                  disapproval under consideration. The                  person who wishes to file a rebuttal to
                                               Fund to create the right to buy or sell                 Commission is instituting proceedings                 any other person’s submission must file
                                               the same asset such that the Ultra Fund                 to allow for additional analysis of the               that rebuttal by April 2, 2018.
                                               would always be in a net long position.                 proposal’s consistency with Section                     Comments may be submitted by any
                                               As the FLEX Options mature at the end                   6(b)(5) of the Exchange Act, which                    of the following methods:
                                               of each outcome period, they would be                   requires, among other things, that the                Electronic Comments
                                               replaced.                                               rules of a national securities exchange
                                                                                                       be designed to prevent fraudulent and                   • Use the Commission’s internet
                                               E. Investment Methodology for the                                                                             comment form (http://www.sec.gov/
                                               Funds                                                   manipulative acts and practices, to
                                                                                                       promote just and equitable principles of              rules/sro.shtml); or
                                                 As mentioned above, under Normal                                                                              • Send an email to rule-comments@
                                                                                                       trade, and to protect investors and the
                                               Market Conditions, each Fund would                                                                            sec.gov. Please include File Number SR–
                                                                                                       public interest.24
                                               seek to achieve its respective investment                                                                     BatsBZX–2017–72 on the subject line.
                                                                                                          Under the proposal, the defined
                                               objective by investing primarily in U.S.                outcome strategies for each Fund are                  Paper Comments
                                               exchange-listed FLEX Options on the                     designed to participate in market gains                  • Send paper comments in triplicate
                                               S&P 500 Index. Each of the Funds might                  and losses within pre-determined ranges               to Secretary, Securities and Exchange
                                               invest its net assets (in the aggregate) in             over a specified period. Specifically,                Commission, 100 F Street NE,
                                               other investments which the Adviser or                  these outcomes are predicated on the                  Washington, DC 20549–1090.
                                               Sub-Adviser believes would help each                    Shares being bought at the beginning
                                               Fund meet its investment objective and                                                                        All submissions should refer to File
                                                                                                       and sold at the end of the designated                 Number SR–BatsBZX–2017–72. This file
                                               that would be disclosed at the end of                   outcome period. The Commission notes
                                               each trading day (‘‘Other Assets’’).21                                                                        number should be included on the
                                                                                                       that market participants may buy and                  subject line if email is used. To help the
                                               III. Proceedings To Determine Whether                   sell Shares of the Funds at any time.                 Commission process and review your
                                               To Disapprove SR–BatsBZX–2017–72                        Accordingly, with respect to the                      comments more efficiently, please use
                                               and Grounds for Disapproval Under                       performance of the Shares at any time                 only one method. The Commission will
                                               Consideration                                           other than the commencement of the                    post all comments on the Commission’s
                                                                                                       applicable outcome period, the                        internet website (http://www.sec.gov/
                                                 The Commission is instituting                         Commission seeks commenters’ views
                                               proceedings pursuant to Section                                                                               rules/sro.shtml). Copies of the
                                                                                                       on the sufficiency of the information                 submission, all subsequent
                                               19(b)(2)(B) of the Exchange Act 22 to                   provided in the proposed rule change to
                                               determine whether the proposed rule                                                                           amendments, all written statements
                                                                                                       support a determination that the listing              with respect to the proposed rule
                                               change should be approved or                            and trading of the Shares would be
                                               disapproved. Institution of such                                                                              change that are filed with the
                                                                                                       consistent with Section 6(b)(5) of the                Commission, and all written
                                               proceedings is appropriate at this time                 Exchange Act.
                                               in view of the legal and policy issues                                                                        communications relating to the
                                               raised by the proposed rule change.                     IV. Procedure: Request for Written                    proposed rule change between the
                                               Institution of proceedings does not                     Comments                                              Commission and any person, other than
                                               indicate that the Commission has                                                                              those that may be withheld from the
                                                                                                         Interested persons are invited to                   public in accordance with the
                                               reached any conclusions with respect to                 submit written views, data, and
                                               any of the issues involved. Rather, as                                                                        provisions of 5 U.S.C. 552, will be
                                                                                                       arguments concerning the foregoing,                   available for website viewing and
                                               described below, the Commission seeks                   including whether the proposed rule
                                               and encourages interested persons to                                                                          printing in the Commission’s Public
                                                                                                       change is consistent with Section 6(b)(5)             Reference Room, 100 F Street NE,
                                                                                                       or any other provision of the Exchange                Washington, DC 20549 on official
                                                  21 Other Assets include only cash or cash
                                                                                                       Act, or the rules and regulations                     business days between the hours of
                                               equivalents, as defined in BZX Rule
                                               14.11(i)(4)(C)(iii), and traditional U.S. exchange-
                                                                                                       thereunder. Although there do not                     10:00 a.m. and 3:00 p.m. Copies of the
                                               traded options contracts that reference either the      appear to be any issues relevant to                   filing also will be available for
                                               S&P 500 Index or ETFs that track the S&P 500            approval or disapproval that would be                 inspection and copying at the principal
                                               Index. As defined in BZX Rule 14.11(i)(4)(C)(iii),      facilitated by an oral presentation of
                                               cash equivalents include short-term instruments                                                               office of the Exchange. All comments
                                               with maturities of less than three months,
                                                                                                       views, data, and arguments, the                       received will be posted without change.
                                               including: (i) U.S. Government securities, including    Commission will consider, pursuant to                 Persons submitting comments are
                                               bills, notes, and bonds differing as to maturity and    Rule 19b–4, any request for an                        cautioned that we do not redact or edit
                                               rates of interest, which are either issued or           opportunity to make an oral
                                               guaranteed by the U.S. Treasury or by U.S.                                                                    personal identifying information from
                                               Government agencies or instrumentalities; (ii)
                                                                                                       presentation.25                                       comment submissions. You should
                                               certificates of deposit issued against funds                                                                  submit only information that you wish
                                                                                                         23 Id.
                                               deposited in a bank or savings and loan association;
                                               (iii) bankers acceptances, which are short-term           24 15 U.S.C. 78f(b)(5).
                                                                                                                                                             to make available publicly. All
                                                                                                                                                             submissions should refer to File
daltland on DSKBBV9HB2PROD with NOTICES




                                               credit instruments used to finance commercial             25 Section 19(b)(2) of the Exchange Act, as
                                               transactions; (iv) repurchase agreements and reverse    amended by the Securities Acts Amendments of          Number SR–BatsBZX–2017–72 and
                                               repurchase agreements; (v) bank time deposits,          1975, Public Law 94–29 (June 4, 1975), grants the     should be submitted on or before March
                                               which are monies kept on deposit with banks or          Commission flexibility to determine what type of
                                               savings and loan associations for a stated period of
                                                                                                                                                             19, 2018. Rebuttal comments should be
                                                                                                       proceeding—either oral or notice and opportunity
                                               time at a fixed rate of interest; (vi) commercial       for written comments—is appropriate for               submitted by April 2, 2018.
                                               paper, which are short-term unsecured promissory        consideration of a particular proposal by a self-
                                               notes; and (vii) money market funds.                    regulatory organization. See Securities Acts          Housing & Urban Affairs, S. Rep. No. 75, 94th
                                                  22 15 U.S.C. 78s(b)(2)(B).                           Amendments of 1975, Senate Comm. on Banking,          Cong., 1st Sess. 30 (1975).



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                                               8312                             Federal Register / Vol. 83, No. 38 / Monday, February 26, 2018 / Notices

                                                 For the Commission, by the Division of                  Solicitation of Public Comments                          • Regular Mail: Send written
                                               Trading and Markets, pursuant to delegated                                                                      comments to: Andrea Battista, SA–1,
                                               authority.26                                                Comments may be submitted on (a)
                                                                                                         whether the collection of information is              12th Floor, Directorate of Defense Trade
                                               Eduardo A. Aleman,                                                                                              Controls, Bureau of Political Military
                                                                                                         necessary for the agency to properly
                                               Assistant Secretary.                                                                                            Affairs, U.S. Department of State,
                                                                                                         perform its functions; (b) whether the
                                               [FR Doc. 2018–03785 Filed 2–23–18; 8:45 am]
                                                                                                         burden estimates are accurate; (c)                    Washington, DC 20522–0112.
                                               BILLING CODE 8011–01–P                                    whether there are ways to minimize the                   You must include the DS form
                                                                                                         burden, including through the use of                  number (if applicable), information
                                                                                                         automated techniques or other forms of                collection title, and the OMB control
                                                                                                         information technology; and (d) whether               number in any correspondence.
                                               SMALL BUSINESS ADMINISTRATION                             there are ways to enhance the quality,                FOR FURTHER INFORMATION CONTACT:
                                                                                                         utility, and clarity of the information.              Direct requests for additional
                                               Reporting and Recordkeeping                                                                                     information regarding the collection
                                               Requirements Under OMB Review                             Summary of Information Collections                    listed in this notice, including requests
                                               AGENCY:  Small Business Administration.                     (1) Title: Reports to SBA: Provisions               for copies of the proposed collection
                                                                                                         of 13 CFR 120.460–464,473, 475, and                   instrument and supporting documents,
                                               ACTION: 30-Day notice.                                                                                          to Andrea Battista, SA–1, 12th Floor,
                                                                                                         1510.
                                                                                                           Description of Respondents: Small                   Directorate of Defense Trade Controls,
                                               SUMMARY:    The Small Business                                                                                  Bureau of Political Military Affairs, U.S.
                                                                                                         Business Lending Companies.
                                               Administration (SBA) is publishing this                                                                         Department of State, Washington, DC
                                                                                                           Form Number: N/A.
                                               notice to comply with requirements of                                                                           20522–0112, via phone at (202) 663–
                                                                                                           Estimated Annual Respondents: 170.
                                               the Paperwork Reduction Act (PRA)                                                                               3136, or via email at battistaal@
                                                                                                           Estimated Annual Responses: 680.
                                               which requires agencies to submit                                                                               state.gov.
                                                                                                           Estimated Annual Hour Burden:
                                               proposed reporting and recordkeeping
                                                                                                         3,400.                                                SUPPLEMENTARY INFORMATION:
                                               requirements to OMB for review and
                                               approval, and to publish a notice in the                  Curtis B. Rich,                                         • Title of Information Collection:
                                               Federal Register notifying the public                     Management Analyst.                                   Application/License for Permanent
                                               that the agency has made such a                           [FR Doc. 2018–03800 Filed 2–23–18; 8:45 am]
                                                                                                                                                               Export of Unclassified Defense Articles
                                               submission. This notice also allows an                                                                          and Related Unclassified Technical
                                                                                                         BILLING CODE 8025–01–P
                                               additional 30 days for public comments.                                                                         Data.
                                                                                                                                                                 • OMB Control Number: 1405–0003.
                                               DATES: Submit comments on or before
                                                                                                                                                                 • Type of Request: Extension of a
                                               March 28, 2018.                                           DEPARTMENT OF STATE                                   Currently Approved Collection.
                                               ADDRESSES: Comments should refer to                       [Public Notice: 10239]                                  • Originating Office: Bureau of
                                               the information collection by name and/                                                                         Political-Military Affairs, Directorate of
                                               or OMB Control Number and should be                       60-Day Notice of Proposed Information                 Defense Trade Controls, PM/DDTC.
                                               sent to: Agency Clearance Officer, Curtis                 Collection: Six DDTC Information                        • Form Number: DSP–5.
                                               Rich, Small Business Administration,                      Collections                                             • Respondents: Business, Nonprofit
                                               409 3rd Street SW, 5th Floor,                                                                                   Organizations, and Individuals.
                                               Washington, DC 20416; and SBA Desk                              Notice of request for public
                                                                                                         ACTION:                                                 • Estimated Number of Respondents:
                                               Officer, Office of Information and                        comments.                                             1,405.
                                               Regulatory Affairs, Office of                                                                                     • Estimated Number of Responses:
                                                                                                         SUMMARY:   The Department of State is                 26,253.
                                               Management and Budget, New
                                                                                                         seeking Office of Management and                        • Average Time per Response: 1 hour.
                                               Executive Office Building, Washington,
                                                                                                         Budget (OMB) approval for the                           • Total Estimated Burden Time:
                                               DC 20503.
                                                                                                         information collections described                     26,253 hours.
                                               FOR FURTHER INFORMATION CONTACT:                          below. In accordance with the
                                               Curtis Rich, Agency Clearance Officer,                                                                            • Frequency: On Occasion.
                                                                                                         Paperwork Reduction Act of 1995, we                     • Obligation To Respond: Required to
                                               (202) 205–7030, curtis.rich@sba.gov                       are requesting comments on these                      Obtain or Retain a Benefit.
                                                  A copy of the Form OMB 83–1,                           collections from all interested
                                               supporting statement, and other                                                                                   • Title of Information Collection:
                                                                                                         individuals and organizations. The
                                               documents submitted to OMB for                                                                                  Application/License for Temporary
                                                                                                         purpose of this notice is to allow 60
                                               review may be obtained from the                                                                                 Import of Unclassified Defense Articles.
                                                                                                         days for public comment preceding
                                               Agency Clearance Officer.                                                                                         • OMB Control Number: 1405–0013.
                                                                                                         submission of the collections to OMB.
                                                                                                                                                                 • Type of Request: Extension of
                                               SUPPLEMENTARY INFORMATION: Small                          DATES: The Department will accept                     Currently Approved Collection.
                                               Business Lending Companies (SBLC’s)                       comments from the public up to April                    • Originating Office: Bureau of
                                               and Non-Federally Regulations Lenders                     27, 2018.                                             Political-Military Affairs, Directorate of
                                               (NFRL’s) are generally non-depository                     ADDRESSES: You may submit comments                    Defense Trade Controls, PM/DDTC.
                                               lending instructions authorized by SBA                    by any of the following methods:                        • Form Number: DSP–61.
                                               primarily to make loans under sections                       • Web: Persons with access to the                    • Respondents: Business, Nonprofit
                                               7(a) of the Small Business Act. As sole                   internet may comment on this notice by                Organizations, and Individuals.
                                               regulator of these institutions, SBA                      going to www.Regulations.gov. You can                   • Estimated Number of Respondents:
daltland on DSKBBV9HB2PROD with NOTICES




                                               requires them to submit audited                           search for the document by entering                   204.
                                               financial statements annually as well as                  ‘‘Docket Number: DOS–2017–0047’’ in                     • Estimated Number of Responses:
                                               interim, quarterly financial statements                   the Search field. Then click the                      1,103.
                                               and other reports to facilitate the                       ‘‘Comment Now’’ button and complete                     • Average Time per Response: 30
                                               agency’s oversight lenders.                               the comment form.                                     minutes.
                                                                                                            • Email: DDTCPublicComments@                         • Total Estimated Burden Time: 552
                                                 26 17   CFR 200.30–3(a)(57).                            state.gov.                                            hours.


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Document Created: 2018-02-24 01:00:17
Document Modified: 2018-02-24 01:00:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 8309 

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