[Federal Register Volume 82, Number 213 (Monday, November 6, 2017)]
[Notices]
[Pages 51447-51449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24045]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81985; File No. SR-NYSEArca-2017-127]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Regarding Exchange 
Calculation of the Intraday Indicative Value for Specified Exchange-
Traded Products

October 31, 2017.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on October 20, 2017, NYSE Arca, Inc. (``Exchange'' or ``NYSE 
Arca'') filed with the Securities and Exchange Commission the proposed 
rule change as described in Items I and II below, which Items have been 
prepared by the self-regulatory organization. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify representations made in proposed 
rule changes previously filed with the Securities and Exchange 
Commission (``Commission'') regarding Exchange calculation of the 
``Intraday Indicative Value'' (or comparable intra-day value) for 
specified exchange-traded products. The proposed rule change is 
available on the Exchange's Web site at www.nyse.com, at the principal 
office of

[[Page 51448]]

the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Exchange rules relating to listing of certain exchange-traded 
products (``ETPs'') require that an ``Intraday Indicative Value'' 
(``IIV'') or comparable intra-day value be disseminated at least every 
15 seconds during the Exchange's Core Trading Session as defined in 
Rule 7.34-E (a) (normally 9:30 a.m. to 4:00 p.m. Eastern Time).\4\ The 
Commission has approved a number of NYSE Arca proposed rule changes 
relating to NYSE Arca's listing and trading of shares of ETPs in which 
the Exchange stated that the Exchange will calculate the IIV for those 
ETPs. These proposed rule changes are listed in Exhibit 3 to this 
filing (``Exhibit 3 Filings'').
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    \4\ The following Exchange rules require dissemination of an 
intraday indicative value for specified ETPs: Rule 5.2-E(j)(3) 
(Investment Company Units); Rule 5.2-E (j)(6) (Index-Linked 
Securities); Rule 8.100-E (Portfolio Depositary Receipts); Rule 
8.200-E (Trust Issued Receipts); Rule 8.201-E (Commodity-Based Trust 
Shares); Rule 8.202-E (Currency Trust Shares); Rule 8.203-E 
(Commodity Index Trust Shares); Rule 8.204-E (Commodity Futures 
Trust Shares); Rule 8.300-E (Partnership Units); Rule; 8.600-E 
(Managed Fund Shares); and Rule 8.700-E (Managed Trust Securities). 
These rules use different terms to denote the intraday indicative 
value: Intraday Indicative Value (Rules 5.2-E (j)(3), 8.100-E and 
8.700-E); Indicative Value (Rule 8.200-E); Indicative Trust Value 
(Rules 8.201-E; 8.202-E and 8.203-E); Indicative Partnership Value 
(Rule 8.300-E); and Portfolio Indicative Value (Rule 8.600-E). As 
used herein, the term ``IIV'' encompasses the terms Intraday 
Indicative Value, Indicative Value, Indicative Trust Value, 
Indicative Partnership Value, and Portfolio Indicative Value, as 
referenced in Exchange rules. In addition, such term encompasses the 
term ``Indicative Optimized Portfolio Value'' (or ``IOPV'') as used 
in certain ``Exhibit 3 Filings'' (as defined below).
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    The Exchange proposes to revise the representations made in the 
Exhibit 3 Filings that state that the Exchange will calculate the IIV 
for a particular ETP to state that the IIV will be calculated and 
widely disseminated by one or more major market data vendors. This 
proposed change is consistent with representations the Exchange has 
made in other filing [sic] relating to ETP listings.\5\ The Exchange 
proposes this change so that ETP issuers, who may select and change the 
IIV calculation agent for a particular ETP, may choose to use a 
calculation agent other than the Exchange, provided that such IIV is 
calculated and widely disseminated by one or more major market data 
vendors.\6\ All other representations in the Exhibit 3 Filings 
regarding the IIV remain the same and are not changing as a result of 
this proposed rule change.
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    \5\ The Exchange's proposed rule changes relating to ETP 
listings generally have stated that the IIV would be calculated and 
widely disseminated by, or widely disseminated by, an independent 
third party, one or more major market data vendors, a third party 
market data provider, or similar entities other than the Exchange. 
See, e.g., Securities Exchange Act Release No. 68667 (January 16, 
2013), 78 FR 4955 (January 23, 2013) (SR-NYSEArca-2012-109) (Order 
Granting Approval of Proposed Rule Change Relating to the Listing 
and Trading of Shares of the U.S. Equity High Volatility Put Write 
Index Fund under NYSE Arca Equities Rule 5.2(j)(3)). In addition, 
the Exchange rules referenced supra at note 4 do not specify that 
the Exchange will calculate the IIV for any ETP.
    \6\ Currently, it is the Exchange's understanding that several 
major market data vendors display and/or make widely available IIVs 
taken from the Consolidated Tape Association or other data feeds.
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2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under section 6(b)(5) \7\ that an exchange have rules that 
are designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to remove 
impediments to, and perfect the mechanism of a free and open market 
and, in general, to protect investors and the public interest.
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    \7\ 15 U.S.C. 78f(b)(5).
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    The proposed rule change is designed to perfect the mechanism of a 
free and open market and, in general, to protect investors and the 
public interest. The Exchange's proposal to revise the representations 
made in the Exhibit 3 Filings that state that the Exchange will 
calculate the IIV for a particular ETP to state that the IIV will be 
calculated and widely disseminated by one or more major market data 
vendors is consistent with representations the Exchange has made in 
other filings relating to ETP listings.\8\ The Exchange proposes this 
change so that ETP issuers, who may select and change the IIV 
calculation agent for a particular ETP, may choose to use a calculation 
agent other than the Exchange, provided that such IIV is calculated and 
widely disseminated by one or more major market data vendors. While the 
Exchange rules referenced in note 4 above require that an IIV be 
disseminated at least every 15 seconds during the Exchange's Core 
Trading Session, such rules do not specify that the Exchange will 
calculate the IIV for any ETP.\9\
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    \8\ See note 5, supra.
    \9\ See note 4, supra.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purpose [sic] of the Act. The Exchange believes 
the proposed rule change will enhance competition among ETP issuers by 
providing each issuer with additional flexibility to change its IIV 
calculation agent promptly based on business needs.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, the proposed rule change has become effective 
pursuant to section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) 
thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Commission believes that waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest because it will allow ETP issuers for the Exhibit 3 Filings to 
choose to use a calculation agent other than the Exchange, provided 
that such IIV is calculated and widely disseminated by

[[Page 51449]]

one or more major market data vendors, without undue delay. Therefore, 
the Commission designates the proposed rule change to be operative upon 
filing.\12\
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    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic 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-NYSEArca-2017-127 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-NYSEArca-2017-127. 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 Web site (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 Web site 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-NYSEArca-2017-127 and should 
be submitted on or before November 27, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24045 Filed 11-3-17; 8:45 am]
 BILLING CODE 8011-01-P