[Federal Register Volume 81, Number 102 (Thursday, May 26, 2016)]
[Notices]
[Pages 33570-33571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12383]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77872; File No. SR-NYSEArca-2015-110]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of
Designation of a Longer Period for Commission Action on Proceedings To
Determine Whether To Approve or Disapprove a Proposed Rule Change, as
Modified by Amendment No. 4 Thereto, Amending NYSE Arca Equities Rule
8.600 To Adopt Generic Listing Standards for Managed Fund Shares
May 20, 2016.
On November 6, 2015, NYSE Arca, Inc. (``Exchange'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to amend NYSE Arca
Equities Rule 8.600 and to adopt generic listing standards for Managed
Fund Shares.\3\ The proposed rule change was published for comment in
the Federal Register on November 27, 2015.\4\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See NYSE Arca Equities Rule 8.600(c)(1) (defining Managed
Fund Shares).
\4\ See Securities Exchange Act Release No. 76486 (Nov. 20,
2015), 80 FR 74169 (``Notice'').
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On November 23, 2015, the Exchange filed Amendment No. 1 to the
proposed rule change, which amended and replaced the original proposal
in its entirety. On January 4, 2016, pursuant to Section 19(b)(2) of
the Act,\5\ the Commission designated a longer period within which to
approve the proposed rule change, disapprove the proposed rule change,
or institute proceedings to determine whether to disapprove the
proposed rule change.\6\ On January 21, 2016, the Exchange withdrew
Amendment No. 1 and filed Amendment No. 2 to the proposed rule
change.\7\ The proposed rule change, as modified by Amendment No. 2
thereto, was published for comment in the Federal Register on February
1, 2016.\8\ On February 11, 2016, the Exchange filed Amendment No. 3 to
the proposed rule change.\9\ On February 16, 2016, the Exchange filed
Amendment No. 4 to the proposed rule change.\10\
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\5\ 15 U.S.C. 78s(b)(2).
\6\ See Securities Exchange Act Release No. 76819, 81 FR 987
(Jan. 8, 2016). The Commission designated February 25, 2016 as the
date by which the Commission shall either approve or disapprove, or
institute proceedings to determine whether to disapprove, the
proposed rule change. See id.
\7\ In Amendment No. 2 to the proposed rule change, the Exchange
added provisions to the proposed generic listing criteria relating
to non-U.S. Component Stocks, convertible securities, and listed
swaps, among other changes. Amendment No. 2, which amended and
replaced the original proposal in its entirety, is available on the
Commission's Web site at: http://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110-3.pdf.
\8\ See Securities Exchange Act Release No. 76974 (Jan. 26,
2016), 81 FR 5149.
\9\ In Amendment No. 3 to the proposed rule change, the Exchange
(a) revised the provisions relating to convertible securities, (b)
clarified the limitations on non-exchange-traded American Depositary
Receipts, (c) eliminated redundant provisions relating to
limitations on leveraged and inverse-leveraged Derivative Securities
Products, (d) revised the provision relating to limitations on
listed derivatives, (e) clarified that, for purposes of the
limitations relating to listed and over-the-counter derivatives, a
portfolio's investment in listed and over-the-counter derivatives
will be calculated as the total absolute notional value of these
derivatives, and (f) provided additional information regarding the
statutory basis of the proposal. Amendment No. 3, which amended and
replaced the proposed rule change, as modified by Amendment No. 2
thereto, in its entirety, is available on the Commission's Web site
at: http://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110-4.pdf.
\10\ In Amendment No. 4 to the proposed rule change, the
Exchange (a) modified the proposed generic listing rules to require
compliance of the standards applicable to underlying equity
securities, fixed income securities, and over-the-counter
derivatives on an initial and continuing basis; and (b) clarified
that the limitations on listed derivatives would apply to all listed
derivatives, including listed swaps. Amendment No. 4, which amended
and replaced the proposed rule change, as modified by Amendment No.
3 thereto, in its entirety, is available on the Commission's Web
site at: http://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110-5.pdf.
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[[Page 33571]]
On February 22, 2016, the Commission issued notice of filing of
Amendment No. 4 to the proposed rule change and instituted proceedings
under Section 19(b)(2)(B) of the Act \11\ to determine whether to
approve or disapprove the proposed rule change, as modified by
Amendment No. 4 thereto.\12\ In the Order Instituting Proceedings, the
Commission solicited comments to specified matters related to the
proposal.\13\ The Commission has received one comment letter on the
proposal.\14\
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\11\ 15 U.S.C. 78s(b)(2)(B).
\12\ See Securities Exchange Act Release No. 77203, 81 FR 9900
(Feb. 26, 2016) (``Order Instituting Proceedings''). Specifically,
the Commission instituted proceedings to allow for additional
analysis of the proposed rule change's consistency with Section
6(b)(5) of the 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.'' See id., 81 FR at 9908.
\13\ See id., 81 FR at 9908-09.
\14\ See Letter from Rob Ivanoff to the Commission dated Nov.
22, 2015 (commenting that the format of the Exchange's proposed rule
change was unclear and difficult to read, and suggesting a new
format that would be easier to understand). All comments on the
proposed rule change are available on the Commission's Web site at:
http://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110-1.htm.
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Section 19(b)(2) of the Act \15\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of the filing of the proposed rule
change. The Commission may, however, extend the period for issuing an
order approving or disapproving the proposed rule change by not more
than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on November 27, 2015.\16\ The 180th day after
publication of the notice of the filing of the proposed rule change in
the Federal Register is May 25, 2016.
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\15\ 15 U.S.C. 78s(b)(2).
\16\ See supra note 4 and accompanying text.
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The Commission finds that it is appropriate to designate a longer
period within which to issue an order approving or disapproving the
proposed rule change so that it has sufficient time to consider the
proposed rule change, as modified by Amendment No. 4 thereto.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\17\ designates July 22, 2016, as the date by which the Commission
shall either approve or disapprove the proposed rule change, as
modified by Amendment No. 4 thereto (File No. SR-NYSEArca-2015-110).
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\17\ 15 U.S.C. 78s(b)(2).
\18\ 17 CFR 200.30-3(a)(57).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-12383 Filed 5-25-16; 8:45 am]
BILLING CODE 8011-01-P