[Federal Register Volume 84, Number 232 (Tuesday, December 3, 2019)]
[Notices]
[Pages 66248-66251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26157]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87636; File No. SR-CboeBZX-2019-023]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order
Granting Approval of a Proposed Rule Change, as Modified by Amendment
No. 1, To Amend Rule 14.11(c) (Index Fund Shares) To Adopt Generic
Listing Standards for Index Fund Shares Based on an Index of Municipal
Securities
November 27, 2019.
I. Introduction
On April 3, 2019, Cboe BZX Exchange, Inc. (``BZX'' or ``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 Cboe BZX Rule 14.11(c) to adopt generic listing standards for
Index Fund Shares (``Shares'') based on an index or portfolio of
municipal securities. The proposed rule change was published for
comment in the Federal Register on April 22, 2019.\3\ On May 30, 2019,
pursuant to Section 19(b)(2) of the Act,\4\ 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 approve or disapprove the proposed rule change.\5\
On July 18, 2019, the Commission instituted proceedings under Section
19(b)(2)(B) of the Act \6\ to determine whether to approve or
disapprove the proposed rule change.\7\ On October 15, 2019, the
Commission extended the period for issuing an order approving or
disapproving the proposed rule change.\8\ On October 31, 2019, the
Exchange filed Amendment No. 1 to the proposed rule change, which
amended and replaced in its entirety the original proposed rule
change.\9\ The Commission has received no comment letters on the
proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 85656 (April 16,
2019), 84 FR 16753.
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 85966, 84 FR 26172
(June 5, 2019). The Commission designated July 21, 2019, as the date
by which the Commission shall approve or disapprove, or institute
proceedings to determine whether to approve or disapprove, the
proposed rule change.
\6\ 15 U.S.C. 78s(b)(2)(B).
\7\ See Securities Exchange Act Release No. 86410, 84 FR 35698
(July 24, 2019).
\8\ See Securities Exchange Act Release No. 87300, 84 FR 56209
(October 21, 2019). The Commission designated December 18, 2019, as
the date by which the Commission shall either approve or disapprove
the proposed rule change.
\9\ In Amendment No. 1, the Exchange: (1) Clarified that its
proposed requirement that an underlying index or portfolio must
include a minimum of 13 ``non-affiliated'' issuers means a minimum
of 13 ``unique'' issuers; and (2) prohibited its generic listing of
Index Fund Shares based on Municipal Securities (defined below) that
seeks to provide investment results, before fees and expenses, in an
amount that exceeds -300% of the percentage performance on a given
day of an index of Municipal Securities. Amendment No. 1 is
available at: https://www.sec.gov/comments/sr-cboebzx-2019-023/srcboebzx2019023-6388601-198128.pdf. In view of the Commission's
recent approval of another exchange's substantively identical
proposal, Amendment No. 1 raises no novel issues and is therefore
not subject to notice and comment. See Securities Exchange Act
Release Nos. 85170 (February 21, 2019), 84 FR 6451 (February 27,
2019) and 87382 (October 22, 2019), 84 FR 57789 (October 28, 2019)
(SR-NYSEArca-2019-04) (``NYSE Arca Proposal'').
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II. The Exchange's Description of the Proposed Rule Change, as Modified
by Amendment No. 1
Rule 14.11(c) permits the Exchange to list a series of Index Fund
Shares based on an index or portfolio of underlying securities.
Currently, Rule 14.11(c)(4)(B)(i) provides generic listing standards
for Index Fund Shares based on an index or portfolio of fixed income
securities. The Exchange proposes to amend the Rule to add a new
subsection Rule 14.11(c)(4)(B)(ii) to provide quantitative generic
listing standards for Index Fund Shares based on an index or portfolio
of Municipal Securities \10\ that do not meet the generic listing
standards under Rule 14.11(c)(4)(B)(i).\11\ All other standards,
however, not included in Rule 14.11(c)(4)(B)(i) applicable to series of
Index Fund Shares based on an index composed of fixed income securities
will continue to apply to a series of Index Fund Shares based on an
index or portfolio of Municipal Securities listed pursuant to Rule
14.11(c)(4)(B)(ii). The Exchange also proposes to add language that
would prohibit the listing of Shares under proposed Rule
14.11(c)(4)(B)(ii) that would seek to provide investment results,
before fees and expenses, in an amount exceeding -300% of the
percentage performance on a given day.
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\10\ According to the proposal, the term ``Municipal
Securities'' has the definition given to it in Section 3(a)(29) of
the Act.
\11\ The Exchange notes that its proposal is substantively
identical to the NYSE Arca Proposal. See supra note 9.
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According to the Exchange, indices of Municipal Securities are able
to satisfy all of the generic listing requirements applicable to fixed
income indices in Rule 14.11(c)(4)(b)(i) except the requirement that
component securities in an index have a minimum original principal
amount outstanding of $100 million or more. The Exchange provides that
Municipal Securities are generally issued with individual maturities of
relatively small size, although they generally are constituents of a
much larger municipal bond offering. Therefore, Municipal Securities
are unable to satisfy the Rule's requirement that ``at least 75% of the
Fixed Income Securities portion of the weight of the index or portfolio
each shall have a minimum original principal amount outstanding of $100
million or more.'' Notwithstanding the inability of a Municipal
Securities index to meet this aspect of the generic listing standards,
the Exchange notes that the Commission previously approved for listing
and trading Index Fund Shares based on such indices.\12\
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\12\ See Securities Exchange Act Release Nos. 84107 (September
13, 2018), 83 FR 47210 (September 18, 2018) (SR-CboeBZX-2018-070)
(Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change To List and Trade Shares of the iShares iBonds Dec 2025 Term
Muni Bond ETF of iShares Trust Under BZX Rule 14.11(c)(4) (Index
Fund Shares)); 79381 (November 22, 2016), 81 FR 86044 (November 29,
2016) (SR-BatsBZX-2016-48) (Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendments No. 1 and No. 2
Thereto, To List and Trade Shares of the iShares iBonds Dec 2023
Term Muni Bond ETF and iShares iBonds Dec 2024 Term Muni Bond ETF of
the iShares U.S. ETF Trust Pursuant to BZX Rule 14.11(c)(4); 67985
(October 4, 2012), 77 FR 61804 (October 11, 2012) (SR-NYSEArca-2012-
92) (order approving proposed rule change relating to the listing
and trading of iShares 2018 S&P AMT-Free Municipal Series and
iShares 2019 S&P AMT-Free Municipal Series under NYSE Arca Equities
Rule 5.2(j)(3), Commentary .02); 67729 (August 24, 2012), 77 FR
52776 (August 30, 2012) (SR-NYSEArca-2012-92) (notice of proposed
rule change relating to the listing and trading of iShares 2018 S&P
AMT-Free Municipal Series and iShares 2019 S&P AMT-Free Municipal
Series under NYSE Arca Equities Rule 5.2(j)(3), Commentary .02);
72523 (July 2, 2014), 79 FR 39016 (July 9, 2014) (SR-NYSEArca-2014-
37) (order approving proposed rule change relating to the listing
and trading of iShares 2020 S&P AMT-Free Municipal Series under NYSE
Arca Equities Rule 5.2(j)(3), Commentary.02); 72172 (May 15, 2014),
79 FR 29241 (May 21, 2014) (SR-NYSEArca-2014-37) (notice of proposed
rule change relating to the listing and trading of iShares 2020 S&P
AMT-Free Municipal Series under NYSE Arca Equities Rule 5.2(j)(3),
Commentary.02); 72464 (June 25, 2014), 79 FR 37373 (July 1, 2014)
(File No. SR-NYSEArca-2014-45) (order approving proposed rule change
governing the continued listing and trading of shares of the
PowerShares Insured California Municipal Bond Portfolio, PowerShares
Insured National Municipal Bond Portfolio, and PowerShares Insured
New York Municipal Bond Portfolio); 75468 (July 16, 2015), 80 FR
43500 (July 22, 2015) (SR-NYSEArca-2015-25) (order approving
proposed rule change relating to the listing and trading of iShares
iBonds Dec 2021 AMT-Free Muni Bond ETF and iShares iBonds Dec 2022
AMT-Free Muni Bond ETF under NYSE Arca Equities Rule 5.2(j)(3));
74730 (April 15, 2015), 76 FR 22234 (April 21, 2015) (notice of
proposed rule change relating to the listing and trading of iShares
iBonds Dec 2021 AMT-Free Muni Bond ETF and iShares iBonds Dec 2022
AMT-Free Muni Bond ETF under NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02); 74730 75376 (July 7, 2015), 80 FR 40113 (July 13,
2015) (SR-NYSEArca-2015-18) (order approving proposed rule change
relating to the listing and trading of Vanguard Tax-Exempt Bond
Index Fund under NYSE Arca Equities Rule 5.2(j)(3)).
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[[Page 66249]]
In light of the characteristics of Municipal Securities as
described above, the Exchange proposes in its filing to apply existing
Rule 14.11(c)(4)(b)(i) and proposed Rule 14.11(c)(4)(B)(ii) in a
``waterfall'' manner. Specifically, the Exchange proposes that every
series of Index Fund Shares based on an index of fixed income
securities and cash (including an index that contains Municipal
Securities) would initially be evaluated against the generic listing
standards of the existing Rule 14.11(c)(4)(b)(i). If the index
underlying a series of Index Fund Shares satisfies the existing
criteria of Rule 14.11(c)(4)(b)(i), the Exchange would proceed with
listing the Index Fund Shares under that provision. However, if the
index does not meet the requirements of Rule 14.11(c)(4)(b)(i) and such
index contains only Municipal Securities and cash, the Exchange would
apply the proposed Rule 14.11(c)(4)(B)(ii) to such index.
The Exchange believes that proposed Rule 14.11(c)(4)(B)(ii)
includes many requirements that are more stringent than those
applicable to an index of fixed income securities and cash under
existing Rule 14.11(c)(4)(B)(i). The Exchange accordingly believes
these heightened requirements would deter potential manipulation of
such Municipal Securities indices, even though the indices may include
securities that have smaller original principal amounts outstanding.
Below is a comparison of the existing quantitative requirements for
Index Fund Shares based on an index of fixed income securities
(existing Rule 14.11(c)(4)(B)(i)) versus the Exchange's proposed
alternative quantitative requirements for Index Fund Shares based on an
index of Municipal Securities (proposed Rule 14.11(c)(4)(B)(ii)). The
Exchange proposes that the quantitative requirements described below
would apply to a Municipal Securities index underlying a series of
Index Fund Shares on both an initial and continued basis.
Original Principal Amount Outstanding
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------------------------------------------------------------------------
Existing Requirement for Fixed Fixed Income Security components
Income Securities. that in aggregate account for at
least 75% of the Fixed Income
Securities portion of the weight of
the index or portfolio each shall
have a minimum original principal
amount outstanding of $100 million
or more.
Proposed Requirement for Municipal Municipal Security components that
Securities. in aggregate account for at least
90% of the Municipal Securities
portion of the weight of the index
or portfolio each shall have a
minimum original principal amount
outstanding of at least $5 million
and have been issued as part of a
transaction of at least $20
million.
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As discussed above, according to the Exchange, Municipal Securities
are typically issued with individual maturities of relatively small
size, although they generally are constituents of a much larger
municipal bond offering. In recognition of these smaller offering
sizes, the Exchange proposes to reduce the minimum original principal
amount outstanding requirement for component securities to at least $5
million. However, the Exchange proposes that qualifying securities must
have been issued as part of a transaction of at least $20 million.
Lastly, the Exchange proposes to increase the percentage weight of an
index that must satisfy the original principal amount outstanding
requirement from 75% to 90%.
The Exchange does not believe that reducing the requirement for
minimum original principal amount outstanding will make an index of
Municipal Securities more susceptible to manipulation. The Exchange
believes that the requirement that component securities in a fixed
income index have a minimum principal amount outstanding, in concert
with the other requirements of Rule 14.11(c)(4)(B)(i), is to ensure
that such index is sufficiently broad-based in scope as to minimize
potential manipulation of the index. However, based on empirical
analysis, the Exchange does not believe that an index of Municipal
Securities with lower original principal amounts outstanding is
necessarily more susceptible to manipulation.\13\ According to the
Exchange, in 2016, Blackrock, Inc. analyzed the potential for
manipulation of Municipal Securities to affect an exchange traded fund
and found that such manipulation ``may be uneconomical and is
unsupported in practice.'' \14\ In addition, the Exchange believes that
its proposal to require that 90% of the weight of a Municipal
Securities index meet the original principal amount outstanding
requirement (as opposed to 75% for fixed income indices) will further
deter potential manipulation by ensuring that a greater portion of the
index meet this minimum size requirement.
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\13\ See Letter from Samara Cohen, Managing Director, U.S. Head
of iShares Capital Markets, Joanne Medero, Managing Director,
Government Relations & Public Policy, and Deepa Damre, Managing
Director, Legal and Compliance, BlackRock, Inc., to Brent J. Fields,
Secretary, Commission, dated October 18, 2017, in support of the
Exchange's proposal to facilitate the listing and trading of Index
Fund Shares listed pursuant to NYSE Arca Rule 5.2-E(j)(3) (SR-
NYSEArca-2017-56).
\14\ See id. at 3 and accompanying note 11. In the letter,
Blackrock states that Blackrock's ``empirical analysis indicated
that: (1) given the over-the-counter dealer-centric market for
municipal bonds, the bid-ask spread decreases with trade size;
therefore, trading many small lots to move matrix prices is likely
to be costly; (2) large trades move prices significantly and this
effect is incorporated into prices quickly; for manipulation to work
by affecting bond prices, the trades must be large, implying greater
dollar cost and more likelihood of detection even if markets were
segmented; (3) while pricing agents apply matrix pricing techniques
to value non-traded bonds, the effect is likely too small to permit
price manipulation of the corresponding index or ETF; and (4) market
participants will use all intraday data to come up with their own
valuations independently of pricing providers; ultimately, the price
of an ETF at a point in time reflects these estimates in a manner
that balances supply and demand.''
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The Exchange further notes that the Commission previously approved
the listing and trading of several series of Index Fund Shares where
the component securities representing at least 90% of the weight of the
[[Page 66250]]
underlying index must have a minimum original principal amount
outstanding of at least $5 million and have been issued as part of a
transaction of at least $20 million.\15\
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\15\ See, e.g., Securities Exchange Act Release No. 84049
(September 6, 2018), 83 FR 46228 (September 12, 2018) (SR-NYSEArca-
2018-38) (order approving, among other things, revisions to the
continued listing criteria applicable to the iShares New York AMT-
Free Muni Bond ETF).
Maximum Weight of Component Securities
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Existing Requirement for Fixed No component fixed income security
Income Securities. (excluding Treasury Securities and
GSE Securities) shall represent
more than 30% of the Fixed Income
Securities portion of the weight of
the index or portfolio, and the
five most heavily weighted
component fixed income securities
in the index or portfolio shall not
in the aggregate account for more
than 65% of the Fixed Income
Securities portion of the weight of
the index or portfolio.
Proposed Requirement for Municipal No component Municipal Security
Securities. shall represent more than 10% of
the Municipal Securities portion of
the weight of the index or
portfolio, and the five most
heavily weighted component
Municipal Securities in the index
or portfolio shall not in the
aggregate account for more than 30%
of the Municipal Securities portion
of the weight of the index or
portfolio.
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The Exchange proposes to reduce the maximum weight that any
individual Municipal Security, or group of five Municipal Securities,
can have in a Municipal Securities index. The current generic listing
rules for Index Fund Shares based on a fixed income index permit
individual component securities to account for up to 30% of the weight
of such index and the top five weighted component securities to account
for up to 65% of the weight of such index. The Exchange proposes to
reduce these criteria to 10% for individual Municipal Securities and
30% for the top five weighted Municipal Securities in an index.
The Exchange believes that its proposal will reduce the likelihood
that a Municipal Securities index underlying a series of Index Fund
Shares could be subject to manipulation by ensuring that no individual
Municipal Security, or group of five Municipal Securities, represents
an outsized weight of a Municipal Securities index.
Diversification of Issuers
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------------------------------------------------------------------------
Existing Requirement for Fixed Income An underlying index or
Securities. portfolio (excluding one
consisting entirely of
exempted securities) must
include a minimum of 13 non-
affiliated issuers.
Proposed Requirement for Municipal An underlying index or
Securities. portfolio must include a
minimum of 13 unique issuers.
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The current generic listing rules for Index Fund Shares based on an
index of fixed income securities require that such index must include
securities from at least thirteen non-affiliated \16\ issuers. Notably,
the current Rule does not apply the issuer diversification requirement
to indices consisting entirely of exempted securities. Municipal
Securities are included in the definition of exempted securities.\17\
Therefore, an index of Municipal Securities that otherwise meets the
requirements of Rule 14.11(c)(4)(b)(i) would not be required to satisfy
the minimum issuer diversification requirement.
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\16\ The Exchange notes that Rule 405 under the Securities Act
of 1933 defines an affiliate as a person that directly, or
indirectly through one or more intermediaries, controls or is
controlled by, or is under common control with such person. Rule 405
defines control as the possession, direct or indirect, of the power
to direct or cause the direction of the management and policies of a
person, whether through the ownership of voting securities, by
contract, or otherwise.
\17\ See Section 3(a)(12) of the Act.
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Under the proposed Rule 14.11(c)(4)(b)(ii), the Exchange proposes
that a Municipal Securities index be required to include securities
from at least 13 unique issuers. The Exchange believes that requiring
such diversification will reduce the likelihood that an index can be
manipulated by ensuring that securities from a variety of issuers are
represented in an index of Municipal Securities.
Number of Components
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------------------------------------------------------------------------
Existing Requirement for Fixed Income Thirteen.
Securities.
Proposed Requirement for Municipal Five hundred.
Securities.
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The current generic listing requirements for Index Fund Shares
based on an index of fixed income securities do not have an explicit
requirement that an index contain a minimum number of securities.
However, given that such requirements also specify that an index must
contain securities from at least thirteen non-affiliated issuers, there
is a de facto requirement that an index of fixed income securities
contain at least thirteen component securities. As described above,
however, a fixed income index comprised entirely of exempted securities
(including Municipal Securities) is not required to satisfy the issuer
diversification requirement, thereby allowing it to have no minimum
number of component securities.
Under the proposed Rule 14.11(c)(4)(b)(ii), the Exchange proposes
to require that a Municipal Securities index contain at least 500
component securities. The Exchange believes that such requirement will
ensure that a Municipal Securities index is sufficiently broad-based
and diversified to make it less susceptible to manipulation.
In addition to these changes, the Exchange proposes to amend Rule
14.11(c)(5) to specify that the Exchange may approve a series of Index
Fund Shares for listing based on a combination of indexes, including an
index of Municipal Securities. To the extent that an index of Municipal
Securities is included in a combination, amended Rule 14.11(c)(5) will
specify that the Municipal Securities index must meet all requirements
of proposed Rule 14.11(c)(4)(B)(ii). In addition, amended Rule
14.11(c)(5) will specify that requirements related to index
dissemination and related continued listing standards will apply to
indexes of Municipal Securities. The Exchange notes that a combination
index (including one that includes an index of Municipal Securities)
will not be permitted to seek to provide investment results, before
fees and expenses, in an amount that exceeds -300% of the percentage
performance on a given day of any index included in such combination
index.
Finally, as noted above, the Exchange proposes that existing rules
applicable
[[Page 66251]]
to Index Fund Shares based on fixed income securities will continue to
apply to any series of Index Fund Shares listed pursuant to proposed
Rule 14.11(c)(4)(B)(ii), including: (i) Index methodology and
calculation; \18\ (ii) dissemination of information; \19\ (iii) initial
shares outstanding; \20\ (iv) hours of trading; \21\ (v) surveillance
procedures; \22\ and (vi) all continued listing requirements under Rule
14.11(c)(9)(B).
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\18\ See Rule 14.11(c)(4)(C).
\19\ See Rule 14.11(c)(6)(A).
\20\ See Rule 14.11(c)(6)(B).
\21\ See Rule 14.11(c)(7).
\22\ See Rule 14.11(c)(6)(C).
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III. Discussion and Commission's Findings
After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 1, is consistent with the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\23\ In particular, the Commission finds that the
proposal is consistent with Section 6(b)(5) of the Act,\24\ which
requires, among other things, that the Exchange's rules be 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 a national market system,
and, in general, to protect investors and the public interest.
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\23\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\24\ 15 U.S.C. 78f(b)(5).
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With respect to the quantitative requirements of proposed Rule
14.11(c)(4)(B)(ii), the original principal amount outstanding
requirement is lower than what is currently applicable to Index Fund
Shares based on an index or portfolio of fixed income securities. The
Commission notes, however, that the other proposed quantitative
requirements (i.e., component concentration, issuer diversification,
and minimum number of components) are more stringent than the existing
generic listing requirements. Accordingly, the Commission believes
that, taken together, the proposed criteria are sufficiently designed
to prevent fraudulent and manipulative acts and practices.
Specifically, the Commission believes that the proposed generic listing
requirements for an index or portfolio of Municipal Securities, in
aggregate, should help to ensure that an index underlying a series of
Index Fund Shares will be sufficiently large, not concentrated, and
diversified to prevent manipulation of that benchmark. Additionally,
the Commission notes that it recently approved a proposal by another
national securities exchange to adopt substantially similar generic
listing standards.\25\
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\25\ See NYSE Arca Proposal, supra note 9.
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The Commission also finds that the proposed amendments to Rule
14.11(c)(5) are designed to extend the requirements related to the
generic listing and trading of Index Fund Shares based on a combination
of two or more types of indexes to an index of Municipal Securities.
In support of its proposal, the Exchange represents the following:
(1) Index Fund Shares listed pursuant to proposed Rule
14.11(c)(4)(B)(ii) will be subject to the existing trading
surveillances, administered by the Financial Industry Regulatory
Authority (``FINRA'') on behalf of the Exchange, which are designed
to detect violations of Exchange rules and applicable federal
securities laws.\26\ The Exchange represents that these procedures
are adequate to properly monitor Exchange trading of the Shares in
all trading sessions and to deter and detect violations of Exchange
rules and applicable federal securities laws.\27\ FINRA, on behalf
of the Exchange, will communicate as needed regarding trading in the
Shares with other markets that are members of the Intermarket
Surveillance Group (``ISG'') or with which the Exchange has in place
a comprehensive surveillance sharing agreement.\28\ FINRA also can
access data obtained from the Municipal Securities Rulemaking Board
(``MSRB'') relating to municipal bond trading activity for
surveillance purposes.\29\ FINRA, on behalf of the Exchange, is able
to access, as needed, trade information for certain fixed income
securities held by a Fund reported to FINRA's Trade Reporting and
Compliance Engine.\30\
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\26\ See Amendment No. 1, supra note 9, at 14-15.
\27\ See id. at 15.
\28\ See id.
\29\ See id.
\30\ See id.
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(2) Index Fund Shares listed pursuant to the proposed generic
listing rule will comply with all other requirements applicable to
Index Fund Shares including, but not limited to, the applicable
rules governing the trading of equity securities, trading hours,
trading halts, surveillance, information barriers, and the
Information Circular to members, as set forth in Exchange rules
applicable to Index Fund Shares.\31\
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\31\ See id. at 16.
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(3) The Exchange has in place surveillance procedures relating
to trading in the Index Fund Shares and may obtain information via
ISG from other exchanges that are members of ISG or with which the
Exchange has entered into a comprehensive surveillance sharing
agreement.\32\ In addition, investors will have ready access to
information regarding the intraday indicative value and quotation
and last-sale information for the Index Fund Shares. Trade price and
other information relating to municipal bonds is available through
the MSRB's Electronic Municipal Market Access.\33\
\32\ See id. at 18-19.
\33\ See id. at 19.
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This approval order is based on all of the Exchange's
representations, including those set forth above. For the foregoing
reasons, the Commission finds that the proposed rule change, as
modified by Amendment No. 1, is consistent with Section 6(b)(5) of the
Act \34\ and the rules and regulations thereunder applicable to a
national securities exchange.
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\34\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\35\ that the proposed rule change (SR-CboeBZX-2019-023), as
modified by Amendment No. 1, be, and it hereby is, approved.
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\35\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
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\36\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-26157 Filed 12-2-19; 8:45 am]
BILLING CODE 8011-01-P