[Federal Register Volume 80, Number 20 (Friday, January 30, 2015)]
[Notices]
[Pages 5169-5171]
[FR Doc No: 2015-01752]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74133; File No. SR-ICEEU-2015-003]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Order Granting Accelerated Approval of Proposed Rule
Change Related to New Haircuts

January 26, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 23, 2015, ICE Clear Europe Limited (``ICE Clear Europe'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared primarily by ICE Clear Europe. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons and to approve the proposed rule change
on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The principal purpose of the proposed rule change is to modify the
cross-currency haircuts applied by ICE Clear Europe to Permitted Cover
provided by Clearing Members in order to address recent volatility in
Swiss franc (``CHF'') exchange rates. The Clearing House has determined
to modify the CHF cross-currency haircuts as follows:

                  Proposed CHF Cross Currency Haircuts
------------------------------------------------------------------------
                                                     Current    Proposed
                   Currency pair                     haircut    haircut
                                                       (%)        (%)
------------------------------------------------------------------------
CHF-CAD...........................................      10.00      16.00
CHF-CZK...........................................       6.00      17.25
CHF-DKK...........................................       6.00      17.25
CHF-EUR...........................................      10.00      17.25
CHF-GBP...........................................      10.00      16.25
CHF-HUF...........................................       6.00      17.25
CHF-JPY...........................................       6.00      16.25
CHF-NOK...........................................       6.00      14.75
CHF-PLN...........................................       6.00      18.50
CHF-SEK...........................................       8.00      16.00
CHF-TRY...........................................       6.00      17.50
CHF-USD...........................................      10.00      15.75
CHF-ZAR...........................................       6.00      19.75
------------------------------------------------------------------------

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

    In its filing with the Commission, ICE Clear Europe included
statements concerning the purpose of and basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item III below. ICE Clear Europe has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of these statements.

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

1. Purpose
    Under its existing margin and haircut methodology, ICE Clear Europe
imposes an additional haircut, referred to as a ``cross-currency
haircut,'' with respect to assets provided by Clearing Members as
Permitted Cover for margin obligations where the Permitted Cover is
denominated in a different currency from that of the relevant margin
requirement. The cross-currency haircut is designed to protect the
Clearing House against exchange rate risk in the event it needs to
liquidate the Permitted Cover and convert the proceeds into the
currency of the relevant underlying obligation following a Clearing
Member default.\3\
---------------------------------------------------------------------------

    \3\ Current cross-currency haircuts are set out in the List of
Permitted Cover and Limits on Collateral published on the Clearing
House's Web site, https://www.theice.com/publicdocs/clear_europe/list-of-permitted-covers.pdf.
---------------------------------------------------------------------------

    As has been publicly reported, on January 15, 2015, the Swiss
central bank discontinued a policy establishing a minimum exchange rate
of 1.20 Swiss francs per Euro. Very large moves in Swiss franc exchange
rates followed that decision, with the result that the Swiss franc
appreciated approximately 16-17% on that day against other major
currencies such as the US dollar, Euro and British pound. Because that
level of appreciation exceeded the existing cross-currency haircut of
10% applied by the Clearing House for those currency pairs, the
Clearing House, consistent with its internal policies, reviewed the
cross-currency haircut levels for all relevant Swiss franc currency
pairs. As a result of that review, the Clearing House determined to
modify the CHF cross-currency haircuts as set forth in Item I above.
    In reviewing the haircuts, the Clearing House applied, consistent
with its policies and practices, a value at risk model under both
parametric and historical simulation methods, taking into account both
recent volatility and historical volatility, and looking at both one
and two day liquidation period assumptions for the relevant Permitted
Cover.
2. Statutory Basis
    ICE Clear Europe believes that the change in CHF cross-currency
haircuts is consistent with the requirements of Section 17A of the Act
\4\ and the regulations thereunder applicable to it, and in particular,
is consistent with the prompt and accurate clearance of and settlement
of securities transactions, the safeguarding of securities and funds in
the custody or control of ICE Clear Europe and the protection of
investors and the public interest, within the meaning of Section
17A(b)(3)(F) of the Act.\5\ ICE Clear Europe is proposing the change in
response to a significant recent increase in the volatility of CHF
exchange rates as observed in the market. The Clearing House has
determined, based on the application of its internal policies and value
at risk models, that the proposed increase in cross-currency haircuts
is appropriate to protect the Clearing House against currency risk
where Clearing Members provide Permitted Cover in one currency to cover
margin obligations in a different currency. The change thus enhances
the Clearing House's risk management, margin framework and financial
resources to support its clearing operations in the event of Clearing
Member default. As a result, ICE Clear Europe believes that the change
will facilitate the prompt and accurate clearance and settlement of
securities and derivatives transactions, and promote the public
interest and the protection of investors, within the meaning of Section
17A(b)(3)(F) of the Act.\6\
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78q-1.
    \5\ 15 U.S.C. 78q-1(b)(3)(F).
    \6\ 15 U.S.C. 78q-1(b)(3)(F).

---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed changes would have
any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
change will apply to all Clearing Members and market participants that
provide Permitted Cover in circumstances where a CHF cross-currency
haircut applies. ICE Clear Europe does not believe the change will have
a material effect on access to clearing or the ability of Clearing
Members and other market participants to obtain clearing services, or
limit market participants' choices for clearing contracts. Although the
increased haircuts may increase the cost of using certain types of
Permitted Cover, ICE Clear Europe believes that such costs are
warranted by the increased CHF exchange rate risk presented to the
Clearing House. As a result, ICE Clear Europe believes that any impact
on competition is appropriate in furtherance of the purposes of the
Act.

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

    Written comments relating to the proposed changes have not been
solicited or received. ICE Clear Europe will notify the Commission of
any written comments received by ICE Clear Europe.

III. 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_ADDRESS>Please include
File Number SR-ICEEU-2015-003 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-ICEEU-2015-003. 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 such filings also will be available
for inspection and copying at the principal office of ICE Clear Europe
and on ICE Clear Europe's Web site at https://www.theice.com/clear-europe/regulation.
    All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-ICEEU-2015-003
and should be submitted on or before February 20, 2015.

IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change

    Section 19(b)(2)(C) of the Act \7\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if it
finds that such proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to such organization. Section 17A(b)(3)(F) of the Act \8\
requires, among other things, that the rules of a registered clearing
agency be designed to promote the prompt and accurate clearance and
settlement of securities transactions and, to the extent applicable,
derivative agreements, contracts, and transactions, and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2)(C).
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    The Commission finds that the proposed revisions to the Swiss franc
cross-currency haircuts are consistent with the requirements of Section
17A of the Act \9\ and the rules and regulations thereunder applicable
to ICE Clear Europe. ICE Clear Europe proposes to revise the cross-
currency haircut levels for all relevant Swiss franc currency pairs in
response to increased volatility in Swiss franc exchange rates, which
has resulted in appreciation of the Swiss franc exceeding the existing
cross-currency haircuts applied to its Swiss franc currency pairs. The
revised haircuts, which were determined using risk-based models and
parameters, are intended to protect ICE Clear Europe from exchange rate
risk in the event it needs to liquidate relevant Permitted Cover and
convert the proceeds into the currency of the relevant underlying
obligation following the default of a Clearing Member. The Commission
therefore believes that the proposed rule change is designed to promote
the prompt and accurate clearance and settlement of securities and
derivatives transactions, and, in general, to protect investors and the
public interest, consistent with Section 17A(b)(3)(F) of the Act \10\
and the rules and regulations thereunder.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78q-1.
    \10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    ICE Clear Europe has requested that the Commission approve the
proposed rule change on an accelerated basis for good cause shown. ICE
Clear Europe states that the proposed rule change is intended to
address a recent market development resulting in substantially
increased volatility in Swiss franc exchange rates. ICE Clear Europe
believes that in light of these developments, it is necessary to
increase the Swiss franc cross-currency haircuts as set forth herein in
order to appropriately manage the currency risks from Permitted Cover
provided to the Clearing House. ICE Clear Europe further believes that
a delay in implementation of the proposed changes could adversely
affect its risk management and unnecessarily expose the Clearing House
to increased currency risk if it were necessary to liquidate Permitted
Cover in the event of a Clearing Member default. Accordingly, the
Commission finds good cause, pursuant to Section 19(b)(2)(C)(iii) of
the Act,\11\ for approving the proposed rule change on an accelerated
basis.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(2)(C)(iii).
---------------------------------------------------------------------------

V. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of Section 17A of the

Act \12\ and the rules and regulations thereunder.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\13\ that the proposed rule change (SR-ICEEU-2015-003) be, and
hereby is, approved on an accelerated basis.\14\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(2).
    \14\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-01752 Filed 1-29-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 247 (Wednesday, December 27, 2017)]
[Notices]
[Pages 61364-61365]
[FR Doc No: 2017-27932]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Fifty Fourth RTCA SC-224 Standards for Airport Security Access
Control Systems Plenary

AGENCY: Federal Aviation Administration (FAA), U.S. Department of
Transportation (DOT).

ACTION: Fifty Fourth RTCA SC-224 Standards for Airport Security Access
Control Systems Plenary.

-----------------------------------------------------------------------

SUMMARY: The FAA is issuing this notice to advise the public of a
meeting of Fifty Fourth RTCA SC-224 Standards for Airport Security
Access Control Systems Plenary.

DATES: The meeting will be held January 25, 2018 10 a.m.-1 p.m.

ADDRESSES: The meeting will be held at: RTCA Headquarters, 1150 18th
Street NW, Suite 910, Washington, DC 20036.

FOR FURTHER INFORMATION CONTACT: Karan Hofmann at [email protected] or
202-330-0680, or The RTCA Secretariat, 1150 18th Street NW, Suite 910,
Washington, DC 20036, or by

telephone at<PHONE_NUMBER>, fax at<PHONE_NUMBER>, or website at
http://www.rtca.org.

SUPPLEMENTARY INFORMATION: Pursuant to section 10(a)(2) of the Federal
Advisory Committee Act (Pub. L. 92-463, 5 U.S.C., App.), notice is
hereby given for a meeting of the Fifty Fourth RTCA SC-224 Standards
for Airport Security Access Control Systems Plenary. The agenda will
include the following:

    1. Welcome/Introductions/Administrative Remarks
    2. Review/Approve Previous Meeting Summary
    3. Report on TSA Participation
    4. Report on Document Distribution Mechanisms
    5. Report on the New Guidelines and Other Safe Skies Reports
    6. Discussion on DO-230I
    7. Action Items for Next Meeting
    8. Time and Place of Next Meeting
    9. Any Other Business
    10. Adjourn

    Attendance is open to the interested public but limited to space
availability. With the approval of the chairman, members of the public
may present oral statements at the meeting. Persons wishing to present
statements or obtain information should contact the person listed in
the FOR FURTHER INFORMATION CONTACT section. Members of the public may
present a written statement to the committee at any time.

    Issued in Washington, DC, on December 21, 2017.
Mohannad Dawoud,
Management & Program Analyst, Partnership Contracts Branch, ANG-A17,
NextGen, Procurement Services Division, Federal Aviation
Administration.
[FR Doc. 2017-27932 Filed 12-26-17; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 84, Number 205 (Wednesday, October 23, 2019)]
[Notices]
[Pages 56868-56870]
[FR Doc No: 2019-23055]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87336; File No. SR-CboeBZX-2019-088]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend
the Pilot Related to the Market-Wide Circuit Breaker in Rule 11.18

October 17, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\

notice is hereby given that on October 15, 2019, Cboe BZX Exchange,
Inc. (the ``Exchange'' or ``BZX'') filed with the Securities and
Exchange Commission (the ``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Exchange filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe BZX Exchange, Inc. (``BZX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposal to extend the pilot related to the market-wide circuit breaker
in Rule 11.18. The text of the proposed rule change is enclosed as
Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    BZX Rules 11.18(a) through (d), (f) and (g) describe the
methodology for determining when to halt trading in all stocks due to
extraordinary market volatility, i.e., market-wide circuit breakers.
The market-wide circuit breaker (``MWCB'') mechanism was approved by
the Commission to operate on a pilot basis, the term of which was to
coincide with the pilot period for the Plan to Address Extraordinary
Market Volatility Pursuant to Rule 608 of Regulation NMS (the ``LULD
Plan''),\5\ including any extensions to the pilot period for the LULD
Plan. The Commission recently approved an amendment to the LULD Plan
for it to operate on a permanent, rather than pilot, basis.\6\ In light
of the proposal to make the LULD Plan permanent, the Exchange amended
Rule 11.18 to untie the pilot's effectiveness from that of the LULD
Plan and to extend the pilot's effectiveness to the close of business
on October 18, 2019.\7\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012). The LULD Plan provides a
mechanism to address extraordinary market volatility in individual
securities.
    \6\ See Securities Exchange Act Release No. 85623 (April 11,
2019), 84 FR 16086 (April 17, 2019).
    \7\ See Securities Exchange Act Release No. 85689 (April 18,
2019), 84 FR 17217 (April 24, 2019) (SR-CboeBZX-2019-028).
---------------------------------------------------------------------------

    The Exchange now proposes to amend Rule 11.18 to extend the pilot
to the close of business on October 18, 2020. This filing does not
propose any substantive or additional changes to Rule 11.18. The
Exchange will use the extension period to develop with the other SROs
rules and procedures that would allow for the periodic testing of the
performance of the MWCB mechanism, with industry member participation
in such testing. The extension will also permit the exchanges to
consider enhancements to the MWCB processes such as modifications to
the Level 3 process.
    The market-wide circuit breaker under Rule 11.18 provides an
important, automatic mechanism that is invoked to promote stability and
investor confidence during a period of significant stress when
securities markets experience extreme broad-based declines. All U.S.
equity exchanges and FINRA adopted uniform rules on a pilot basis
relating to market-wide circuit breakers in 2012 (``MWCB Rules''),
which are designed to slow the effects of extreme price movement
through coordinated trading halts across securities markets when severe
price declines reach levels that may exhaust market liquidity. Market-
wide circuit breakers provide for trading halts in all equities and
options markets during a severe market decline as measured by a single-
day decline in the S&P 500 Index.
    Pursuant to Rule 11.18, a market-wide trading halt will be
triggered if the S&P 500 Index declines in price by specified
percentages from the prior day's closing price of that index.
Currently, the triggers are set at three circuit breaker thresholds: 7%
(Level 1), 13% (Level 2), and 20% (Level 3). A market decline that
triggers a Level 1 or Level 2 halt after 9:30 a.m. ET and before 3:25
p.m. ET would halt market-wide trading for 15 minutes, while a similar
market decline at or after 3:25 p.m. ET would not halt market-wide
trading. A market decline that triggers a Level 3 halt, at any time
during the trading day, would halt market-wide trading until the
primary listing market opens the next trading day.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\9\ in particular, in that it is designed 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.
The market-wide circuit breaker mechanism under Rule 11.18 is an
important, automatic mechanism that is invoked to promote stability and
investor confidence during a period of significant stress when
securities markets experience extreme broad-based declines. Extending
the market-wide circuit breaker pilot for an additional year would
ensure the continued, uninterrupted operation of a consistent mechanism
to halt trading across the U.S. markets while the Exchange, with the
other SROs, consider and develop rules and procedures that would allow
for the periodic testing of the performance of the MWCB mechanism,
which would include industry member participation in such testing. The
extension will also permit the exchanges to consider enhancements to
the MWCB processes such as modifications to the Level 3 process.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange also believes that the proposed rule change promotes
just and equitable principles of trade in that it promotes transparency
and uniformity across markets concerning when and how to halt trading
in all stocks as a result of extraordinary market volatility. Based on
the foregoing, the Exchange believes the benefits to market
participants from the MWCB under Rule 11.18 should continue on a pilot
basis because the MWCB will promote fair and orderly markets, and
protect investors and the public interest.

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 not necessary or appropriate in
furtherance of the purposes of the Act because the proposal would
ensure the continued, uninterrupted operation of a consistent mechanism
to halt trading across the U.S. markets while the Exchange, in
conjunction with the other SROs, consider and develop rules and
procedures that would allow for the periodic testing of the performance
of the MWCB mechanism. In addition, as noted above, the extension will
permit the exchanges to consider enhancements to the MWCB processes
such as modifications to the Level 3 process. Further, the Exchange
understands that FINRA and other national securities exchanges will
file proposals to extend their rules regarding the market-wide circuit
breaker pilot. Thus, the proposed rule change will help to ensure
consistency across market centers without implicating any competitive
issues.

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

    No comments were solicited or received on the proposed rule change.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (2) impose any significant burden on competition; and (3)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) \11\ thereunder.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative upon filing. Extending the pilot for an additional
year will allow the uninterrupted operation of the existing pilot to
halt trading across the U.S. markets. Therefore, the Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. The Commission hereby
designates the proposed rule change to be operative upon filing.\14\
---------------------------------------------------------------------------

    \12\ Id.
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CboeBZX-2019-088 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-CboeBZX-2019-088. 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-CboeBZX-2019-088 and
should be submitted on or before November 13, 2019.
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-23055 Filed 10-22-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 13 (Thursday, January 20, 2011)]
[Notices]
[Pages 3684-3686]
[FR Doc No: 2011-1078]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63709; File No. SR-FINRA-2011-001]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Provide Additional Time To Report Certain
Reportable TRACE Transactions and Waive Certain Transaction Reporting
Fees

January 12, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 4, 2011, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by FINRA. FINRA has designated
the proposed rule change as ``establishing or changing a due, fee or
other charge'' under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule
19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon
receipt of this filing by the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA is proposing to provide additional time (until February 28,
2011) for members to trade report certain TRACE transactions and waive
transaction reporting fees concomitant with such transactions reported
by that date. The proposed rule change would not make any change to the
text of FINRA rules.
    The proposed rule change is available on FINRA's Web site at http://www.finra.org, at the principal office of FINRA 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, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.

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

1. Purpose
    On September 28, 2009, the SEC approved SR-FINRA-2009-010 \5\
which, among other things, amended the FINRA Rule 6700 Series to: (1)
Expand TRACE to include Agency Debt Securities \6\ as TRACE-Eligible
Securities \7\ and primary market transactions as Reportable TRACE
Transactions; \8\ (2) delete the criterion that TRACE-Eligible
Securities must be ``depository eligible securities under NASD Rule
11310(d),'' effectively introducing TRACE reporting obligations for
securities not assigned a common industry recognized identifier
(``CUSIP''); and (3) require members to report transactions in Agency
Debt Securities and primary market transactions. This rule change to
the FINRA Rule 6700 Series, as amended, became effective on March 1,
2010.\9\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 60726 (September 28,
2009), 74 FR 50991 (October 2, 2009) (Order Approving File No. SR-
FINRA-2009-010).
    \6\ See Rule 6710(l) for the definition of ``Agency Debt
Security.''
    \7\ See Rule 6710(a) for the definition of ``TRACE-Eligible
Security.''
    \8\ Rule 6710 (Definitions) provides that ``Reportable TRACE
Transaction'' means any transaction in a TRACE-Eligible Security
except transactions that are not reported as specified in Rule
6730(e). See FINRA Rule 6710(c).
    \9\ See Regulatory Notice 09-57 (September 29, 2009) (SEC
Approves Amendments Expanding TRACE to Include Agency Debt
Securities and Primary Market Transactions).
---------------------------------------------------------------------------

    Due to operational and technical challenges introduced by trade
reporting in securities not assigned a CUSIP, changes were needed to
firms' processes as well as to the TRACE system to facilitate TRACE
trade reporting for those securities. TRACE-related changes were
implemented by FINRA on December 1, 2010. FINRA is filing this proposed
rule change to provide limited relief from the new TRACE trade
reporting requirements (and transaction reporting fee obligations) for
those Reportable TRACE Transactions in securities not identified by a
CUSIP effected from March 1, 2010 (the effective date of SR-FINRA-2009-
010) through November 30, 2010 (``Covered Reportable TRACE
Transactions''). FINRA is providing additional time (until February 28,
2011) for members to trade report Covered Reportable TRACE Transactions
and waiving transaction reporting fees concomitant with such
transactions reported by that date.\10\
---------------------------------------------------------------------------

    \10\ Specifically, members will not be required to pay a Trade
Reporting Fee or ``As Of'' Trade Late Fee under Rule 7730(b)
(Transaction Reporting Fees) with respect to Covered Reportable
TRACE Transactions if such transactions are reported to TRACE by
February 28, 2011.
---------------------------------------------------------------------------

    FINRA has filed the proposed rule change for immediate
effectiveness. The operative date will be the date of filing.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\11\ which requires, among
other things, that FINRA rules provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system that FINRA operates or
controls.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------

    FINRA believes that the proposed rule change is appropriate in
recognition of the operational and technical challenges introduced by
trade reporting in securities not assigned a CUSIP. Therefore, delaying
members' trade reporting obligations until February 28, 2011 for
Covered Reportable TRACE Transactions and waiving the transaction
reporting fees applicable to such transactions provides a balanced
resolution while requiring that all Covered Reportable TRACE
Transactions are ultimately reported to FINRA.

B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    Written comments were neither solicited nor received.

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

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) of the Act \12\ and subparagraph (f)(2) of Rule
19b-4 thereunder,\13\ because it establishes a due, fee, or other
charge imposed on its members by FINRA.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the 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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2011-001 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-FINRA-2011-001. This
file number should be included on the subject line if e-mail 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 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 a.m. and 3 p.m. Copies of the filing also will be
available for inspection and copying at the principal office of FINRA.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-FINRA-2011-001
and should be submitted on or before February 10, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-1078 Filed 1-19-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: October 6, 2010 (Volume 75, Number 193)]
[Notices]
[Page 61786-61787]
[DOCID:fr06oc10-144]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 29452; File No. 812-13786]

Northern Lights Fund Trust, et al.; Notice of Application

September 30, 2010.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application under section 6(c) of the Investment
Company Act of 1940 (``Act'') for an exemption from rule 12d1-2(a)
under the Act.

-----------------------------------------------------------------------

Summary of Application: Applicants request an order to permit funds of
funds relying on rule 12d1-2 under the Act to invest in certain
financial instruments.

Applicants: Northern Lights Fund Trust (``NLFT''), Arrow Investment
Advisors, LLC (``AIA''), and Northern Lights Distributors, LLC
(``NLD'').

Filing Dates: The application was filed on June 22, 2010, and amended
on September 29, 2010. Applicants have agreed to file an amendment
during the notice period, the substance of which is reflected in this
notice.

Hearing or Notification of Hearing: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Commission's Secretary
and serving applicants with a copy of the request, personally or by
mail. Hearing requests should be received by the Commission by 5:30
p.m. on October 25, 2010 and should be accompanied by proof of service
on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.

ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-1090; Applicants: Northern Lights Fund Trust,
450 Wireless Boulevard, Hauppauge, New York 11788; Arrow Investment

Advisers, LLC, 2943 Olney-Sandy Spring Road, Suite A, Olney, Maryland
20832; Northern Lights Distributors, LLC, 4020 South 147th Street,
Omaha, Nebraska 68137.

FOR FURTHER INFORMATION CONTACT: Lewis Reich, Senior Counsel, at (202)
551-6919, or Jennifer L. Sawin, Branch Chief, at<PHONE_NUMBER>
(Division of Investment Management, Office of Investment Company
Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or an applicant
using the Company name box, at http://www.sec.gov/search/search.htm or
by calling<PHONE_NUMBER>.

Applicants' Representations

    1. NLFT is organized as a Delaware statutory trust, and is
registered under the Act as an open-end management investment company.
AIA is organized as a Maryland corporation, and currently serves as
investment adviser to each existing Fund (as defined below). Each
Adviser (as defined below) will be registered under the Investment
Advisers Act of 1940, as amended. NLD is registered as a broker-dealer
under the Securities Exchange Act of 1934, as amended (``Exchange
Act'') and serves as the distributor for the Funds (as defined below)
that are series of NLFT.
    2. Applicants request the exemption on behalf of NLFT and its
existing and future series and any other existing or future registered
open-end investment company or series thereof that (i) is advised by
AIA or any entity controlling, controlled by or under common control
with AIA (collectively with AIA, the ``Advisers''), (ii) operates as a
``fund of funds'' (each, a ``Fund''); (iii) invests in other registered
open-end investment companies (``Underlying Funds'') in reliance on
Section 12(d)(1)(G) of the Act; and (iv) is eligible to invest in
securities (as defined in Section 2(a)(36) of the Act) in reliance on
Rule 12d1-2 under the Act. Applicants request the exemption to the
extent necessary to permit each Fund to also invest, to the extent
consistent with its investment objective, policies, strategies and
limitations, in financial instruments that may not be securities within
the meaning of section 2(a)(36) of the Act (``Other Investments'').\1\
Applicants also request that the order exempt NLD and any entity
controlling, controlled by or under common control with NLD that now or
in the future acts as principal underwriter with respect to the
transactions described in the application.
---------------------------------------------------------------------------

    \1\ Every existing entity that currently intends to rely on the
requested order is named as an applicant. Any existing or future
entity that relies on the order in the future will do so only in
accordance with the terms and condition in the application.
---------------------------------------------------------------------------

    3. Consistent with its fiduciary obligations under the Act, each
Fund's board of trustees will review the advisory fees charged by the
Fund's investment adviser to ensure that they are based on services
provided that are in addition to, rather than duplicative of, services
provided pursuant to the advisory agreement of any investment company
in which the Fund may invest.

Applicants' Legal Analysis

    1. Section 12(d)(1)(A) of the Act provides that no registered
investment company (``acquiring company'') may acquire securities of
another investment company (``acquired company'') if such securities
represent more than 3% of the acquired company's outstanding voting
stock or more than 5% of the acquiring company's total assets, or if
such securities, together with the securities of other investment
companies, represent more than 10% of the acquiring company's total
assets. Section 12(d)(1)(B) of the Act provides that no registered
open-end investment company may sell its securities to another
investment company if the sale will cause the acquiring company to own
more than 3% of the acquired company's voting stock, or cause more than
10% of the acquired company's voting stock to be owned by investment
companies and companies controlled by them.
    2. Section 12(d)(1)(G) of the Act provides that section 12(d)(1)
will not apply to securities of an acquired company purchased by an
acquiring company if: (i) The acquired company and acquiring company
are part of the same group of investment companies; (ii) the acquiring
company holds only securities of acquired companies that are part of
the same group of investment companies, government securities, and
short-term paper; (iii) the aggregate sales loads and distribution-
related fees of the acquiring company and the acquired company are not
excessive under rules adopted pursuant to section 22(b) or section
22(c) of the Act by a securities association registered under section
15A of the Exchange Act or by the Commission; and (iv) the acquired
company has a policy that prohibits it from acquiring securities of
registered open-end investment companies or registered unit investment
trusts in reliance on section 12(d)(1)(F) or (G) of the Act.
    3. Rule 12d1-2 under the Act permits a registered open-end
investment company or a registered unit investment trust that relies on
section 12(d)(1)(G) of the Act to acquire, in addition to securities
issued by another registered investment company in the same group of
investment companies, government securities, and short-term paper: (1)
Securities issued by an investment company that is not in the same
group of investment companies, when the acquisition is in reliance on
section 12(d)(1)(A) or 12(d)(1)(F) of the Act; (2) securities (other
than securities issued by an investment company); and (3) securities
issued by a money market fund, when the investment is in reliance on
rule 12d1-1 under the Act. For the purposes of rule 12d1-2,
``securities'' means any security as defined in section 2(a)(36) of the
Act.
    4. Section 6(c) of the Act provides that the Commission may exempt
any person, security, or transaction from any provision of the Act, or
from any rule under the Act, if such exemption is necessary or
appropriate in the public interest and consistent with the protection
of investors and the purposes fairly intended by the policies and
provisions of the Act.
    5. Applicants state that the Funds will comply with Rule 12d1-2
under the Act, but for the fact that the Funds may invest a portion of
their assets in Other Investments. Applicants request an order under
section 6(c) of the Act for an exemption from rule 12d1-2(a) to allow
the Funds to invest in Other Investments while investing in Underlying
Funds. Applicants assert that permitting the Funds to invest in Other
Investments as described in the application would not raise any of the
concerns that the requirements of section 12(d)(1) were designed to
address.

Applicants' Condition

    Applicants agree that the order granting the requested relief will
be subject to the following condition:
    Applicants will comply with all provisions of rule 12d1-2 under the
Act, except for paragraph (a)(2) to the extent that it restricts any
Fund from investing in Other Investments as described in the
application.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-25072 Filed 10-5-10; 8:45 am]
BILLING CODE 8010-01-P