[Federal Register Volume 74, Number 79 (Monday, April 27, 2009)]
[Rules and Regulations]
[Page 18990]
[FR Doc No: E9-9527]

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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

21 CFR Part 526

[Docket No. FDA-2009-N-0665]

Intramammary Dosage Forms; Change of Sponsor

AGENCY: Food and Drug Administration, HHS.

ACTION: Final rule.

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

SUMMARY: The Food and Drug Administration (FDA) is amending the animal
drug regulations to reflect a change of sponsor for an approved new
animal drug application (NADA) from Merial Ltd. to Cross Vetpharm Group
Ltd.

DATES: This rule is effective April 27, 2009.

FOR FURTHER INFORMATION CONTACT: David R. Newkirk, Center for
Veterinary Medicine (HFV-100), Food and Drug Administration, 7500
Standish Pl., Rockville, MD 20855,<PHONE_NUMBER>, e-mail:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Merial Ltd., 3239 Satellite Blvd., Bldg.
500, Duluth, GA 30096-4640, has informed FDA that it has transferred
ownership of, and all rights and interest in, NADA 065-383 for Formula
A-34 (procaine penicillin G) mastitis infusion tube to Cross Vetpharm
Group Ltd., Broomhill Rd., Tallaght, Dublin 24, Ireland.
    Accordingly, the agency is amending the regulations in 21 CFR
526.1696a to reflect the transfer of ownership.
    This rule does not meet the definition of ``rule'' in 5 U.S.C.
804(3)(A) because it is a rule of ``particular applicability.''
Therefore, it is not subject to the congressional review requirements
in 5 U.S.C. 801-808.

List of Subjects in 21 CFR Part 526

    Animal drugs.

0
Therefore, under the Federal Food, Drug, and Cosmetic Act and under
authority delegated to the Commissioner of Food and Drugs and
redelegated to the Center for Veterinary Medicine, 21 CFR part 526 is
amended as follows:

PART 526--INTRAMAMMARY DOSAGE FORMS

0
1. The authority citation for 21 CFR part 526 continues to read as
follows:

    Authority: 21 U.S.C. 360b.

Sec.  526.1696a   [Amended]

0
2. In paragraph (c) of Sec.  526.1696a, remove ``050604'' and add in
its place ``061623''.

    Dated: April 17, 2009.
Bernadette Dunham,
Director, Center for Veterinary Medicine.
[FR Doc. E9-9527 Filed 4-24-09; 8:45 am]
BILLING CODE 4160-01-S


[Federal Register Volume 78, Number 18 (Monday, January 28, 2013)]
[Notices]
[Pages 5841-5846]
[FR Doc No: 2013-01644]

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

SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 30353; File No. 812-14082]

Symetra Life Insurance Company, et al.; Notice of Application

January 22, 2013.
AGENCY: Securities and Exchange Commission (the ``Commission'').

ACTION: Notice of application for an order under section 12(d)(1)(J) of
the Investment Company Act of 1940, as amended (the ``Act''), for an
exemption from sections 12(d)(1)(A) and (B) of the Act, under sections
6(c) and 17(b) of the Act for an exemption from section 17(a) of the
Act, and under section 6(c) of the Act for an exemption from rule 12d1-
2(a) under the Act.

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

Summary of the Application: Applicants request an order that would (a)
permit certain series of registered open-end management investment
companies to acquire shares of other registered open-end management
investment companies and unit investment trusts (``UITs'') that are
within or outside the same ``group of investment companies,'' as
defined in section 12(d)(1)(G)(ii) of the Act, as the acquiring company
and (b) permit certain series of registered open-end management
investment companies relying on rule 12d1-2 under the Act to invest in
certain financial instruments.

Applicants: Symetra Life Insurance Company (``Symetra''), First Symetra
National Life Insurance Company of New York (``First Symetra of NY''
and collectively with Symetra and any insurance company controlling,
controlled by, or under common control with Symetra and First Symetra
of NY, the ``Insurance Companies''), Symetra Investment Management,
Inc. (the ``Manager''), Symetra Mutual Funds Trust (the ``Trust''), and
Symetra Securities Inc. (the ``Distributor'').

DATES: Filing Dates: The application was filed on October 3, 2012 and
amended on January 8, 2013.

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 February 18, 2013, 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: The Commission: Secretary, U.S. Securities and Exchange
Commission, 100 F Street NE., Washington, DC 20549-1090; Applicants:
Symetra Life Insurance Company, Symetra Investment Management, Inc.,
Symetra Mutual Funds Trust, and Symetra Securities,

Inc., 777 108th Avenue NE., Suite 1200, Bellevue, WA 98004, and First
Symetra National Life Insurance Company of New York, 260 Madison
Avenue, 8th Floor, New York, NY 10016.

FOR FURTHER INFORMATION CONTACT: Jill Ehrlich, Senior Counsel, at (202)
551-6819, or David P. Bartels, Branch Chief, at<PHONE_NUMBER> (Office
of Investment Company Regulation, Division of Investment Management).

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 for an
applicant using the ``Company'' name box, at http://www.sec.gov/search/search.htm or by calling<PHONE_NUMBER>.

Applicants' Representations

    1. The Trust is a Delaware statutory trust, registered under the
Act as an open-end management investment company, and is comprised of
multiple series, each of which has its own investment objective,
policies and restrictions.\1\ Shares of the Series are not offered
directly to the public. Shares of the Series are offered through
separate accounts of the Insurance Companies that are registered as
UITs under the Act (``Registered Separate Accounts'') or that are
exempt from registration under the Act (``Unregistered Separate
Accounts,'' and together with the Registered Separate Accounts,
``Separate Accounts'') and serve as the underlying funding vehicles for
the variable life insurance contracts and variable annuity contracts
(the ``Contracts'') issued by the Insurance Companies. Shares of the
Series may also be offered to qualified pension and retirement plans,
certain of the general accounts of the Insurance Companies, or to other
Series.
---------------------------------------------------------------------------

    \1\ Applicants request that the order extend to any existing or
future Series of the Trust and any existing or future registered
open-end management investment company or series thereof that
currently or subsequently is part of the same ``group of investment
companies,'' as defined in section 12(d)(1)(G)(ii) of the Act, as
the Trust, and is, or will be, advised by the Manager or any other
investment adviser controlling, controlled by, or under common
control with the Manager (each, a ``Series''). All entities that
currently intend to rely on the requested order are named as
applicants. Any other entity that relies on the order in the future
will comply with the terms and conditions of the application.
---------------------------------------------------------------------------

    2. The Manager is a Washington corporation registered as an
investment adviser under the Investment Advisers Act of 1940, as
amended (the ``Advisers Act'') and serves as investment adviser to the
Series. The Manager is a wholly-owned subsidiary of Symetra Financial
Corporation and is an affiliate of Symetra and First Symetra of NY.
    3. The Distributor is a Washington corporation and serves as the
Trust's principal underwriter and distributor. The Distributor is
registered as a broker-dealer with the Commission and is a member of
the Financial Industry Regulatory Authority, Inc. (``FINRA''). The
Distributor is a wholly-owned subsidiary of Symetra Financial
Corporation and is an affiliate of Symetra and First Symetra of NY. The
Distributor also serves as the distributor for the Contracts.
    4. Applicants request relief to permit: (a) Certain Series (each, a
``Fund of Funds,'' and collectively, the ``Funds of Funds'') to acquire
shares of registered open-end management investment companies and UITs
that are not part of the same ``group of investment companies,'' as
defined in section 12(d)(1)(G)(ii) of the Act, as the Funds of Funds
(the ``Unaffiliated Investment Companies'' and ``Unaffiliated Trusts,''
respectively, and together, the ``Unaffiliated Funds''); \2\ (b) the
Unaffiliated Investment Companies, their principal underwriters and any
broker or dealer registered under the Securities Exchange Act of 1934,
as amended (the ``Exchange Act'', and any such broker or dealer, a
``Broker''), to sell shares of the Unaffiliated Investment Companies to
the Funds of Funds in excess of the limitations in section 12(d)(1)(B)
of the Act; (c) the Funds of Funds to acquire shares of certain other
Series in the same ``group of investment companies,'' as defined in
section 12(d)(1)(G)(ii) of the Act, as the Fund of Funds (the
``Affiliated Funds,'' and together with the Unaffiliated Funds, the
``Underlying Funds''); \3\ and (d) the Affiliated Funds, their
principal underwriters and any Broker to sell shares of the Affiliated
Funds to the Fund of Funds in excess of the limitations in section
12(d)(1)(B) of the Act. Applicants also request an order under sections
6(c) and 17(b) of the Act exempting the transactions described in (a)
through (d) above from section 17(a) of the Act to the extent necessary
to permit an Underlying Fund that is an affiliated person of a Fund of
Funds to sell its shares to, and redeem its shares from, the Fund of
Funds.
---------------------------------------------------------------------------

    \2\ Certain of the Unaffiliated Funds may have received
exemptive relief or are otherwise permitted to list and trade their
shares on a national securities exchange at negotiated prices
(``ETFs'').
    \3\ Certain of the Underlying Funds may pursue their investment
objectives through a master-feeder arrangement in reliance on
section 12(d)(1)(E) of the Act. In accordance with condition A.12, a
Fund of Funds may not invest in an Underlying Fund that operates as
a feeder fund unless the feeder fund is part of the same ``group of
investment companies,'' as defined in section 12(d)(1)(G)(ii) of the
Act, as its corresponding master fund or the Fund of Funds. If a
Fund of Funds invests in an Affiliated Fund that operates as a
feeder fund and the corresponding master fund is not within the same
``group of investment companies,'' as defined in section
12(d)(1)(G)(ii) of the Act, as the Fund of Funds and Affiliated
Fund, the master fund would be an Unaffiliated Fund for purposes of
the application and its conditions.
---------------------------------------------------------------------------

    5. Applicants also request an exemption to the extent necessary to
permit a Fund of Funds that invests in Underlying Funds in reliance on
section 12(d)(1)(G) of the Act (a ``Section 12(d)(1)(G) Fund of
Funds''), and that 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,
to also invest, to the extent consistent with its investment
objectives, 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'').

Applicants' Legal Analysis

A. Investments in Underlying Funds--Section 12(d)(1)

    1. Section 12(d)(1)(A) of the Act prohibits a registered investment
company (an ``acquiring company'') from acquiring shares of another
investment company (an ``acquired company'') if the securities
represent more than 3% of the total outstanding voting stock of the
acquired company, more than 5% of the total assets of the acquiring
company, or, together with the securities of any other investment
companies, more than 10% of the total assets of the acquiring company.
Section 12(d)(1)(B) of the Act prohibits a registered open-end
investment company, its principal underwriter and any Broker from
selling the shares of the investment company 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 if the sale will cause
more than 10% of the acquired company's voting stock to be owned by
investment companies generally.
    2. Section 12(d)(1)(J) of the Act provides that the Commission may
exempt any person, security, or transaction, or any class or classes of
persons, securities or transactions, from any provision of section
12(d)(1) of the Act if the exemption is consistent with the public
interest and the protection of investors. Applicants seek an exemption
under section 12(d)(1)(J) of the Act from the limitations of sections
12(d)(1)(A) and (B) of the Act to the extent necessary to permit the
Funds of Funds to acquire shares of the Underlying Funds in excess of
the limits set forth

in section 12(d)(1)(A) of the Act and to permit the Unaffiliated
Investment Companies and Affiliated Funds, their principal underwriters
and any Broker to sell shares of the Unaffiliated Investment Companies
and Affiliated Funds to the Funds of Funds in excess of the limits set
forth in section 12(d)(1)(B) of the Act.
    3. Applicants state that the proposed arrangement will not give
rise to the policy concerns underlying sections 12(d)(1)(A) and (B) of
the Act, which include concerns about undue influence by a Fund of
Funds or its affiliated persons over the Underlying Funds, excessive
layering of fees, and overly complex fund structures. Accordingly,
applicants believe that the requested exemption is consistent with the
public interest and the protection of investors.
    4. Applicants state that the proposed arrangement will not result
in undue influence by a Fund of Funds or its affiliated persons over
the Underlying Funds. The concern about undue influence does not arise
in connection with a Fund of Funds' investment in the Affiliated Funds,
since the Affiliated Funds are part of the same ``group of investment
companies,'' as defined in section 12(d)(1)(G)(ii) of the Act, as the
Funds of Funds. To limit the control that a Fund of Funds or its
affiliated persons may have over an Unaffiliated Fund, applicants state
that condition A.1 prohibits the Group \4\ and the Subadviser Group \5\
from controlling (individually or in the aggregate) an Unaffiliated
Fund within the meaning of section 2(a)(9) of the Act.
---------------------------------------------------------------------------

    \4\ The Manager and any person controlling, controlled by or
under common control with the Manager, any investment company and
any issuer that would be an investment company but for section
3(c)(1) or section 3(c)(7) of the Act advised or sponsored by the
Manager or any person controlling, controlled by or under common
control with the Manager are, collectively, the ``Group.''
    \5\ Any investment adviser within the meaning of section
2(a)(20)(B) of the Act to a Fund of Funds (each, a ``Subadviser''),
any person controlling, controlled by or under common control with a
Subadviser, and any investment company or issuer that would be an
investment company but for section 3(c)(1) or 3(c)(7) of the Act (or
portion of such investment company or issuer) advised or sponsored
by a Subadviser or any person controlling, controlled by or under
common control with the Subadviser are, collectively, the
``Subadviser Group.''
---------------------------------------------------------------------------

    5. Applicants further state that condition A.2 precludes a Fund of
Funds, the Manager, Subadviser, promoter or principal underwriter of a
Fund of Funds, and any person controlling, controlled by or under
common control with any of those entities (each, a ``Fund of Funds
Affiliate'') from taking advantage of an Unaffiliated Fund, with
respect to transactions between the Fund of Funds or a Fund of Funds
Affiliate and the Unaffiliated Fund or the Unaffiliated Fund's
investment adviser(s), sponsor, promoter, principal underwriter and any
person controlling, controlled by or under common control with any of
those entities (each, an ``Unaffiliated Fund Affiliate'').
    6. Condition A.5 precludes a Fund of Funds or Fund of Funds
Affiliate (except to the extent it is acting in its capacity as an
investment adviser to an Unaffiliated Investment Company or sponsor to
an Unaffiliated Trust) from causing an Unaffiliated Fund to purchase a
security in an offering of securities during the existence of any
underwriting or selling syndicate of which a principal underwriter is
an Underwriting Affiliate (an ``Affiliated Underwriting'').\6\
---------------------------------------------------------------------------

    \6\ An ``Underwriting Affiliate'' is an officer, director,
member of an advisory board, Manager, Subadviser, or employee of the
Fund of Funds, or a person of which any such officer, director,
Manager, Subadviser, member of an advisory board, or employee is an
affiliated person. However, any person whose relationship to the
Unaffiliated Fund is covered by section 10(f) of the Act is not an
Underwriting Affiliate.
---------------------------------------------------------------------------

    7. As an additional assurance that an Unaffiliated Investment
Company understands the implications of an investment by a Fund of
Funds under the requested order, prior to an investment in the shares
of the Unaffiliated Investment Company in excess of the limit in
section 12(d)(1)(A)(i) of the Act, the Fund of Funds and the
Unaffiliated Investment Company will execute an agreement (the
``Participation Agreement'') stating, without limitation, that their
respective boards of directors or trustees (for any entity, the
``Board'') and their investment advisers understand the terms and
conditions of the order and agree to fulfill their respective
responsibilities under the order. Applicants note that an Unaffiliated
Investment Company (other than an ETF whose shares are purchased by a
Fund of Funds in the secondary market) will retain the right at all
times to reject any investment by a Fund of Funds.\7\
---------------------------------------------------------------------------

    \7\ An Unaffiliated Investment Company, including an ETF, would
retain its right to reject any initial investment by a Fund of Funds
in excess of the limit in section 12(d)(1)(A)(i) of the Act by
declining to execute the Participation Agreement with the Fund of
Funds.
---------------------------------------------------------------------------

    8. Applicants do not believe that the proposed arrangement will
involve excessive layering of fees. With respect to investment advisory
fees, applicants state that, in connection with the approval of any
investment advisory contract under section 15 of the Act, the Board of
the Fund, including a majority of the trustees who are not ``interested
persons,'' as defined in section 2(a)(19) of the Act (for any Board,
the ``Independent Trustees''), will find that the advisory fees charged
to a Fund of Funds under the advisory contract are based on services
provided that are in addition to, rather than duplicative of, services
provided pursuant to any Underlying Fund's advisory contract(s).
Applicants further state that the Manager will waive fees otherwise
payable to it by a Fund of Funds in an amount at least equal to any
compensation (including fees received pursuant to any plan adopted by
an Unaffiliated Investment Company pursuant to rule 12b-1 under the
Act) received from an Unaffiliated Fund by the Manager, or an
affiliated person of the Manager, other than any advisory fees paid to
the Manager or an affiliated person of the Manager by an Unaffiliated
Investment Company, in connection with the investment by the Fund of
Funds in the Unaffiliated Fund.
    9. Applicants state that, with respect to Registered Separate
Accounts that invest in a Fund of Funds, no sales load will be charged
at the Fund of Funds level or at the Underlying Fund level. Other sales
charges and service fees, as defined in Rule 2830 of the Conduct Rules
of the NASD (``NASD Conduct Rule 2830''),\8\ if any, will be charged
either at the Fund of Funds level or at the Underlying Fund level, not
both. With respect to other investments in a Fund of Funds, any sales
charges and/or service fees charged with respect to shares of the Fund
of Funds will not exceed the limits applicable to funds of funds as set
forth in NASD Conduct Rule 2830.
---------------------------------------------------------------------------

    \8\ Any references to NASD Conduct Rule 2830 include any
successor or replacement rule to NASD Conduct Rule 2830 that may be
adopted by FINRA.
---------------------------------------------------------------------------

    10. Applicants represent that each Fund of Funds will represent in
the Participation Agreement that no Insurance Company sponsoring a
Registered Separate Account funding Contracts will be permitted to
invest in the Fund of Funds unless the Insurance Company has certified
to the Fund of Funds that the aggregate of all fees and charges
associated with each Contract that invests in the Fund of Funds,
including fees and charges at the Separate Account, Fund of Funds, and
Underlying Fund levels, is reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks assumed
by the Insurance Company.
    11. Applicants state that the proposed arrangement will not create
an overly complex fund structure. Applicants note

that an Underlying Fund will be prohibited from acquiring securities of
any investment company or company relying on section 3(c)(1) or 3(c)(7)
of the Act in excess of the limits contained in section 12(d)(1)(A) of
the Act, except to the extent that such Underlying Fund: (a) Acquires
such securities in compliance with section 12(d)(1)(E) of the Act and
either is an Affiliated Fund or is in the same ``group of investment
companies,'' as defined in Section 12(d)(G)(ii) of the Act, as its
corresponding master fund; (b) receives securities of another
investment company as a dividend or as a result of a plan of
reorganization of a company (other than a plan devised for the purpose
of evading section 12(d)(1) of the Act); or (c) acquires (or is deemed
to have acquired) securities of another investment company pursuant to
exemptive relief from the Commission permitting such Underlying Fund
to: (i) Acquire securities of one or more investment companies for
short-term cash management purposes, or (ii) engage in interfund
borrowing and lending transactions.

B. Investments in Underlying Funds--Section 17(a)

    1. Section 17(a) of the Act generally prohibits sales or purchases
of securities between a registered investment company and its
affiliated persons or affiliated persons of such persons. Section
2(a)(3) of the Act defines an ``affiliated person'' of another person
to include (a) any person directly or indirectly owning, controlling,
or holding with power to vote, 5% or more of the outstanding voting
securities of the other person; (b) any person 5% or more of whose
outstanding voting securities are directly or indirectly owned,
controlled, or held with power to vote by the other person; and (c) any
person directly or indirectly controlling, controlled by, or under
common control with the other person.
    2. Applicants state that the Funds of Funds and the Affiliated
Funds may be deemed to be under common control and therefore affiliated
persons of one another. Applicants also state that the Funds of Funds
and the Underlying Funds may be deemed to be affiliated persons of one
another if a Fund of Funds acquires 5% or more of an Underlying Fund's
outstanding voting securities. In light of these possible affiliations,
section 17(a) of the Act could prevent an Underlying Fund from selling
shares to, and redeeming shares from, a Fund of Funds.\9\
---------------------------------------------------------------------------

    \9\ Applicants acknowledge that receipt of any compensation by
(a) an affiliated person of a Fund of Funds, or an affiliated person
of such person, for the purchase by the Fund of Funds of shares of
an Underlying Fund or (b) an affiliated person of an Underlying
Fund, or an affiliated person of such person, for the sale by the
Underlying Fund of its shares to a Fund of Funds may be prohibited
by section 17(e)(1) of the Act. The Participation Agreement also
will include this acknowledgement.
---------------------------------------------------------------------------

    3. Section 17(b) of the Act authorizes the Commission to grant an
order permitting a transaction otherwise prohibited by section 17(a) of
the Act if it finds that (a) the terms of the proposed transaction are
fair and reasonable and do not involve overreaching on the part of any
person concerned; (b) the proposed transaction is consistent with the
policies of each registered investment company involved; and (c) the
proposed transaction is consistent with the general purposes of the
Act. Section 6(c) of the Act permits the Commission to exempt any
person or transactions from any provision of 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
policy and provisions of the Act.
    4. Applicants submit that the proposed transactions satisfy the
standards for relief under sections 17(b) and 6(c) of the Act, as the
terms are fair and reasonable and do not involve overreaching.
Applicants state that the terms upon which an Underlying Fund will sell
its shares to or purchase its shares from a Fund of Funds will be based
on the net asset value of each Underlying Fund.\10\ Applicants also
state that the proposed transactions will be consistent with the
policies of each Fund of Funds and Underlying Fund, and with the
general purposes of the Act.
---------------------------------------------------------------------------

    \10\ To the extent purchases and sales of shares of an ETF occur
in the secondary market (and not through principal transactions
directly between a Fund of Funds and an ETF), relief from section
17(a) of the Act would not be necessary. The requested relief is
intended to cover, however, transactions directly between ETFs and a
Fund of Funds. Applicants are not seeking relief from section 17(a)
for, and the requested relief will not apply to, transactions where
an ETF could be deemed an affiliated person, or an affiliated person
of an affiliated person, of a Fund of Funds because the investment
adviser to the ETF or an entity controlling, controlled by or under
common control with the investment adviser to the ETF is an
investment adviser to the Fund of Funds.
---------------------------------------------------------------------------

C. Other Investments by Section 12(d)(1)(G) Funds of Funds

    1. 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 acquiring company and acquired company
are part of the same ``group of investment companies,'' as defined in
section 12(d)(1)(G)(ii) of the Act; (ii) the acquiring company holds
only securities of acquired companies that are part of the same ``group
of investment companies,'' as defined in section 12(d)(1)(G)(ii) of the
Act, 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 management investment
companies or registered UITs in reliance on section 12(d)(1)(F) or (G)
of the Act.
    2. Rule 12d1-2 under the Act permits a registered open-end
investment company or a registered UIT 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.
    3. Applicants state that the proposed arrangement would comply with
the provisions of rule 12d1-2 under the Act, but for the fact that the
Section 12(d)(1)(G) Funds of 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 Section
12(d)(1)(G) Funds of Funds to invest in Other Investments. Applicants
assert that permitting the Section 12(d)(1)(G) Funds of 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) of the
Act were designed to address.
    4. Consistent with its fiduciary obligations under the Act, each
Section 12(d)(1)(G) Fund of Funds' Board will review the advisory fees
charged by the Section 12(d)(1)(G) Fund of Funds' investment adviser(s)
to ensure that the fees 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 Section 12(d)(1)(G) Fund of Funds
may invest.
    Applicants' Conditions:
    Applicants agree that the order granting the requested relief shall
be subject to the following conditions:

A. Investments in Underlying Funds by Funds of Funds

    1. The members of the Group will not control (individually or in
the aggregate) an Unaffiliated Fund within the meaning of section
2(a)(9) of the Act. The members of a Subadviser Group will not control
(individually or in the aggregate) an Unaffiliated Fund within the
meaning of section 2(a)(9) of the Act. If, as a result of a decrease in
the outstanding voting securities of an Unaffiliated Fund, the Group or
a Subadviser Group, each in the aggregate, becomes a holder of more
than 25% of the outstanding voting securities of the Unaffiliated Fund,
then the Group or the Subadviser Group (except for any member of the
Group or the Subadviser Group that is a Separate Account) will vote its
shares of the Unaffiliated Fund in the same proportion as the vote of
all other holders of the Unaffiliated Fund's shares. This condition
will not apply to a Subadviser Group with respect to an Unaffiliated
Fund for which the Subadviser or a person controlling, controlled by,
or under common control with the Subadviser acts as the investment
adviser within the meaning section 2(a)(20)(A) of the Act (in the case
of an Unaffiliated Investment Company) or the sponsor (in the case of
an Unaffiliated Trust). A Registered Separate Account will seek voting
instructions from its Contract holders and will vote its shares of an
Unaffiliated Fund in accordance with the instructions received and will
vote those shares for which no instructions were received in the same
proportion as the shares for which instructions were received. An
Unregistered Separate Account will either (i) vote its shares of the
Unaffiliated Fund in the same proportion as the vote of all other
holders of the Unaffiliated Fund's shares; or (ii) seek voting
instructions from its Contract holders and vote its shares in
accordance with the instructions received and vote those shares for
which no instructions were received in the same proportion as the
shares for which instructions were received.
    2. No Fund of Funds or Fund of Funds Affiliate will cause any
existing or potential investment by the Fund of Funds in an
Unaffiliated Fund to influence the terms of any services or
transactions between the Fund of Funds or a Fund of Funds Affiliate and
the Unaffiliated Fund or an Unaffiliated Fund Affiliate.
    3. The Board of each Fund of Funds, including a majority of the
Independent Trustees, will adopt procedures reasonably designed to
ensure that the Manager and any Subadviser are conducting the
investment program of the Fund of Funds without taking into account any
consideration received by the Fund of Funds or a Fund of Funds
Affiliate from an Unaffiliated Fund or an Unaffiliated Fund Affiliate
in connection with any services or transactions.
    4. Once an investment by a Fund of Funds in the securities of an
Unaffiliated Investment Company exceeds the limit of section
12(d)(1)(A)(i) of the Act, the Board of the Unaffiliated Investment
Company, including a majority of the Independent Trustees, will
determine that any consideration paid by the Unaffiliated Investment
Company to a Fund of Funds or a Fund of Funds Affiliate in connection
with any services or transactions: (a) Is fair and reasonable in
relation to the nature and quality of the services and benefits
received by the Unaffiliated Investment Company; (b) is within the
range of consideration that the Unaffiliated Investment Company would
be required to pay to another unaffiliated entity in connection with
the same services or transactions; and (c) does not involve
overreaching on the part of any person concerned. This condition does
not apply with respect to any services or transactions between an
Unaffiliated Investment Company and its investment adviser(s), or any
person controlling, controlled by, or under common control with such
investment adviser(s).
    5. No Fund of Funds or Fund of Funds Affiliate (except to the
extent it is acting in its capacity as an investment adviser to an
Unaffiliated Investment Company or sponsor to an Unaffiliated Trust)
will cause an Unaffiliated Fund to purchase a security in any
Affiliated Underwriting.
    6. The Board of an Unaffiliated Investment Company, including a
majority of the Independent Trustees, will adopt procedures reasonably
designed to monitor any purchases of securities by the Unaffiliated
Investment Company in an Affiliated Underwriting once an investment by
a Fund of Funds in the securities of the Unaffiliated Investment
Company exceeds the limit of section 12(d)(1)(A)(i) of the Act,
including any purchases made directly from an Underwriting Affiliate.
The Board of the Unaffiliated Investment Company will review these
purchases periodically, but no less frequently than annually, to
determine whether the purchases were influenced by the investment by
the Fund of Funds in the Unaffiliated Investment Company. The Board of
the Unaffiliated Investment Company will consider, among other things:
(a) Whether the purchases were consistent with the investment
objectives and policies of the Unaffiliated Investment Company; (b) how
the performance of securities purchased in an Affiliated Underwriting
compares to the performance of comparable securities purchased during a
comparable period of time in underwritings other than Affiliated
Underwritings or to a benchmark such as a comparable market index; and
(c) whether the amount of securities purchased by the Unaffiliated
Investment Company in Affiliated Underwritings and the amount purchased
directly from an Underwriting Affiliate have changed significantly from
prior years. The Board of an Unaffiliated Investment Company will take
any appropriate actions based on its review, including, if appropriate,
the institution of procedures designed to ensure that purchases of
securities in Affiliated Underwritings are in the best interests of
shareholders.
    7. Each Unaffiliated Investment Company will maintain and preserve
permanently in an easily accessible place a written copy of the
procedures described in the preceding condition and any modifications
to such procedures, and will maintain and preserve for a period of not
less than six years from the end of the fiscal year in which any
purchase in an Affiliated Underwriting occurred, the first two years in
an easily accessible place, a written record of each purchase of
securities in an Affiliated Underwriting once an investment by a Fund
of Funds in the securities of an Unaffiliated Investment Company
exceeds the limit of section 12(d)(1)(A)(i) of the Act, setting forth
(a) the party from whom the securities were acquired, (b) the identity
of the underwriting syndicate's members, (c) the terms of the purchase,
and (d) the information or materials upon which the determinations of
the Board of the Unaffiliated Investment Company were made.
    8. Prior to its investment in shares of an Unaffiliated Investment
Company in excess of the limit of section 12(d)(1)(A)(i) of the Act,
the Fund of Funds will execute a Participation Agreement with the
Unaffiliated Investment Company stating, without

limitation, that their respective Boards and investment advisers
understand the terms and conditions of the order and agree to fulfill
their respective responsibilities under the order. At the time of its
investment in shares of an Unaffiliated Investment Company in excess of
the limit set forth in section 12(d)(1)(A)(i), the Fund of Funds will
notify the Unaffiliated Investment Company of the investment. At such
time, the Fund of Funds will also transmit to the Unaffiliated
Investment Company a list of the names of each Fund of Funds Affiliate
and Underwriting Affiliate. The Fund of Funds will notify the
Unaffiliated Investment Company of any changes to the list as soon as
reasonably practicable after a change occurs. The Unaffiliated
Investment Company and the Fund of Funds will maintain and preserve a
copy of the Requested Order, the Participation Agreement, and such list
with any updated information for the duration of the investment and for
a period of not less than six years thereafter, the first two years in
an easily accessible place.
    9. Before approving any advisory contract under section 15 of the
Act, the Board of each Fund of Funds, including a majority of the
Independent Trustees, shall find that the advisory fees charged to the
Fund of Funds under the advisory contract(s) are based on services
provided that are in addition to, rather than duplicative of, services
provided under the advisory contract(s) of any Underlying Fund in which
the Fund of Funds may invest. Such finding, and the basis upon which
the finding was made, will be recorded fully in the minute books of the
appropriate Fund of Funds.
    10. The Manager will waive fees otherwise payable to it by a Fund
of Funds in an amount at least equal to any compensation (including
fees received pursuant to any plan adopted by an Unaffiliated
Investment Company under rule 12b-1 under the Act) received from an
Unaffiliated Fund by the Manager, or an affiliated person of the
Manager, other than any advisory fees paid to the Manager or its
affiliated person by an Unaffiliated Investment Company, in connection
with the investment by the Fund of Funds in the Unaffiliated Fund. Any
Subadviser will waive fees otherwise payable to the Subadviser,
directly or indirectly, by the Fund of Funds in an amount at least
equal to any compensation received by the Subadviser, or an affiliated
person of the Subadviser, from an Unaffiliated Fund, other than any
advisory fees paid to the Subadviser or an affiliated person of the
Subadviser by the Unaffiliated Investment Company, in connection with
the investment by the Fund of Funds in the Unaffiliated Fund made at
the direction of the Subadviser. In the event that the Subadviser
waives fees, the benefit of the waiver will be passed through to the
Fund of Funds.
    11. With respect to Registered Separate Accounts that invest in a
Fund of Funds, no sales load will be charged at the Fund of Funds level
or at the Underlying Fund level. Other sales charges and service fees,
as defined in NASD Conduct Rule 2830, if any, will be charged only at
the Fund of Funds level or at the Underlying Fund level, not both. With
respect to other investments in a Fund of Funds, any sales charges and/
or service fees charged with respect to shares of a Fund of Funds will
not exceed the limits applicable to funds of funds set forth in NASD
Conduct Rule 2830.
    12. No Underlying Fund will acquire securities of any other
investment company or company relying on section 3(c)(1) or 3(c)(7) of
the Act in excess of the limits contained in section 12(d)(1)(A) of the
Act, except to the extent that such Underlying Fund: (a) Acquires such
securities in compliance with section 12(d)(1)(E) of the Act and either
is an Affiliated Fund or is in the same ``group of investment
companies,'' as defined in section 12(d)(1)(G)(ii) of the Act, as its
corresponding master fund; (b) receives securities of another
investment company as a dividend or as a result of a plan of
reorganization of a company (other than a plan devised for the purpose
of evading section 12(d)(1) of the Act); or (c) acquires (or is deemed
to have acquired) securities of another investment company pursuant to
exemptive relief from the Commission permitting such Underlying Fund
to: (i) Acquire securities of one or more investment companies for
short-term cash management purposes, or (ii) engage in interfund
borrowing and lending transactions.

B. Other Investments by Section 12(d)(1)(G) Funds of Funds

    1. 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 Section 12(d)(1)(G) Fund of Funds from investing in Other
Investments as described in the application.

    For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01644 Filed 1-25-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 81 (Wednesday, April 27, 2011)]
[Rules and Regulations]
[Pages 23498-23502]
[FR Doc No: 2011-10174]

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

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 64

[Docket ID FEMA-2011-0002; Internal Agency Docket No. FEMA-8177]

Suspension of Community Eligibility

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Final rule.

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

SUMMARY: This rule identifies communities, where the sale of flood
insurance has been authorized under the National Flood Insurance
Program (NFIP), that are scheduled for suspension on the effective
dates listed within this rule because of noncompliance with the
floodplain management requirements of the program. If the Federal
Emergency Management Agency (FEMA) receives documentation that the
community has adopted the required floodplain management measures prior
to the effective suspension date given in this rule, the suspension
will not occur and a notice of this will be provided by publication in
the Federal Register on a subsequent date.

DATES: Effective Dates: The effective date of each community's
scheduled suspension is the third date (``Susp.'') listed in the third
column of the following tables.

FOR FURTHER INFORMATION CONTACT: If you want to determine whether a
particular community was suspended on the suspension date or for
further information, contact David Stearrett, Mitigation Directorate,
Federal

Emergency Management Agency, 500 C Street, SW., Washington, DC 20472,
(202) 646-2953.

SUPPLEMENTARY INFORMATION: The NFIP enables property owners to purchase
flood insurance which is generally not otherwise available. In return,
communities agree to adopt and administer local floodplain management
aimed at protecting lives and new construction from future flooding.
Section 1315 of the National Flood Insurance Act of 1968, as amended,
42 U.S.C. 4022, prohibits flood insurance coverage as authorized under
the NFIP, 42 U.S.C. 4001 et seq.; unless an appropriate public body
adopts adequate floodplain management measures with effective
enforcement measures. The communities listed in this document no longer
meet that statutory requirement for compliance with program
regulations, 44 CFR part 59. Accordingly, the communities will be
suspended on the effective date in the third column. As of that date,
flood insurance will no longer be available in the community. However,
some of these communities may adopt and submit the required
documentation of legally enforceable floodplain management measures
after this rule is published but prior to the actual suspension date.
These communities will not be suspended and will continue their
eligibility for the sale of insurance. A notice withdrawing the
suspension of the communities will be published in the Federal
Register.
    In addition, FEMA has identified the Special Flood Hazard Areas
(SFHAs) in these communities by publishing a Flood Insurance Rate Map
(FIRM). The date of the FIRM, if one has been published, is indicated
in the fourth column of the table. No direct Federal financial
assistance (except assistance pursuant to the Robert T. Stafford
Disaster Relief and Emergency Assistance Act not in connection with a
flood) may legally be provided for construction or acquisition of
buildings in identified SFHAs for communities not participating in the
NFIP and identified for more than a year, on FEMA's initial flood
insurance map of the community as having flood-prone areas (section
202(a) of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4106(a),
as amended). This prohibition against certain types of Federal
assistance becomes effective for the communities listed on the date
shown in the last column. The Administrator finds that notice and
public comment under 5 U.S.C. 553(b) are impracticable and unnecessary
because communities listed in this final rule have been adequately
notified.
    Each community receives 6-month, 90-day, and 30-day notification
letters addressed to the Chief Executive Officer stating that the
community will be suspended unless the required floodplain management
measures are met prior to the effective suspension date. Since these
notifications were made, this final rule may take effect within less
than 30 days.
    National Environmental Policy Act. This rule is categorically
excluded from the requirements of 44 CFR part 10, Environmental
Considerations. No environmental impact assessment has been prepared.
    Regulatory Flexibility Act. The Administrator has determined that
this rule is exempt from the requirements of the Regulatory Flexibility
Act because the National Flood Insurance Act of 1968, as amended, 42
U.S.C. 4022, prohibits flood insurance coverage unless an appropriate
public body adopts adequate floodplain management measures with
effective enforcement measures. The communities listed no longer comply
with the statutory requirements, and after the effective date, flood
insurance will no longer be available in the communities unless
remedial action takes place.
    Regulatory Classification. This final rule is not a significant
regulatory action under the criteria of section 3(f) of Executive Order
12866 of September 30, 1993, Regulatory Planning and Review, 58 FR
51735.
    Executive Order 13132, Federalism. This rule involves no policies
that have federalism implications under Executive Order 13132.
    Executive Order 12988, Civil Justice Reform. This rule meets the
applicable standards of Executive Order 12988.
    Paperwork Reduction Act. This rule does not involve any collection
of information for purposes of the Paperwork Reduction Act, 44 U.S.C.
3501 et seq.

List of Subjects in 44 CFR Part 64

    Flood insurance, Floodplains.

    Accordingly, 44 CFR part 64 is amended as follows:

PART 64--[AMENDED]

0
1. The authority citation for part 64 continues to read as follows:

    Authority:  42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of
1978, 3 CFR, 1978 Comp.; p. 329; E.O. 12127, 44 FR 19367, 3 CFR,
1979 Comp.; p. 376.

Sec.  64.6  [Amended]

0
2. The tables published under the authority of Sec.  64.6 are amended
as follows:

----------------------------------------------------------------------------------------------------------------
                                                 Effective date
                                                 authorization/
                                   Community    cancellation of    Current effective map   Date certain Federal
       State and location             No.        sale of flood             date            assistance  no longer
                                                  insurance in                              available in SFHAs
                                                   community
----------------------------------------------------------------------------------------------------------------
           Region III

West Virginia:
    Barbour County,                    540001  November 21,       May 3, 2011...........  May 3, 2011.
     Unincorporated Areas.                      1975, Emerg;
                                                July 1, 1987,
                                                Reg; May 3,
                                                2011, Susp.
    Belington, Town of, Barbour        540002  November 11,       *......do.............   Do.
     County.                                    1974, Emerg;
                                                August 1, 1979,
                                                Reg; May 3,
                                                2011, Susp.
    Junior, Town of, Barbour           540003  April 3, 1975,     ......do..............   Do.
     County.                                    Emerg; April 17,
                                                1987, Reg; May
                                                3, 2011, Susp.
    Philippi, City of, Barbour         540004  June 26, 1974,     ......do..............   Do.
     County.                                    Emerg; September
                                                4, 1986, Reg;
                                                May 3, 2011,
                                                Susp.

           Region IV

Kentucky: Glasgow, City of,            210007  November 29,       ......do..............   Do.
 Barren County.                                 1974, Emerg; May
                                                1, 1987, Reg;
                                                May 3, 2011,
                                                Susp.
Mississippi:
    Clay County, Unincorporated        280036  January 19, 1978,  ......do..............   Do.
     Areas.                                     Emerg; July 16,
                                                1990, Reg; May
                                                3, 2011, Susp.

    West Point, City of, Clay          280037  February 1, 1974,  ......do..............   Do.
     County.                                    Emerg; January
                                                5, 1978, Reg;
                                                May 3, 2011,
                                                Susp.
South Carolina:
    Fairfield County,                  450075  December 21,       ......do..............   Do.
     Unincorporated Areas.                      1978, Emerg;
                                                July 19, 1982,
                                                Reg; May 3,
                                                2011, Susp.
    Greenwood, City of,                450093  July 22, 1975,     ......do..............   Do.
     Greenwood County.                          Emerg; February
                                                4, 1987, Reg;
                                                May 3, 2011,
                                                Susp.
    Greenwood County,                  450094  April 21, 1978,    ......do..............   Do.
     Unincorporated Areas.                      Emerg; March 18,
                                                1987, Reg; May
                                                3, 2011, Susp.
    Ninety Six, Town of,               450244  September 17,      ......do..............   Do.
     Greenwood County.                          1986, Emerg;
                                                September 17,
                                                1986, Reg; May
                                                3, 2011, Susp.

            Region V
Indiana:
    Alexandria, City of,               180149  December 13,       ......do..............   Do.
     Madison County.                            1974, Emerg;
                                                July 2, 1981,
                                                Reg; May 3,
                                                2011, Susp.
    Anderson, City of, Madison         180150  November 7, 1974,  ......do..............   Do.
     County.                                    Emerg; December
                                                4, 1979, Reg;
                                                May 3, 2011,
                                                Susp.
    Chesterfield, Town of,             180151  February 14,       ......do..............   Do.
     Madison County.                            1975, Emerg; May
                                                1, 1980, Reg;
                                                May 3, 2011,
                                                Susp.
    Elwood, City of, Madison           180152  March 19, 1975,    ......do..............   Do.
     and Tipton Counties.                       Emerg; May 19,
                                                1981, Reg; May
                                                3, 2011, Susp.
    Frankton, Town of, Madison         180154  June 5, 1975,      ......d...............   Do.
     County.                                    Emerg; May 5,
                                                1981, Reg; May
                                                3, 2011, Susp.
    Ingalls, Town of, Madison          180155  March 24, 1975,    ......do..............   Do.
     County.                                    Emerg; July 15,
                                                1988, Reg; May
                                                3, 2011, Susp.
    Madison County,                    180442  October 23, 1990,  ......do..............   Do.
     Unincorporated Areas.                      Emerg; February
                                                1, 1994, Reg;
                                                May 3, 2011,
                                                Susp.
    Pendleton, Town of, Madison        180156  December 26,       ......do..............   Do.
     County.                                    1974, Emerg; May
                                                3, 1982, Reg;
                                                May 3, 2011,
                                                Susp.
    Summitville, Town of,              180157  May 5, 1975,       ......do..............   Do.
     Madison County.                            Emerg; July 21,
                                                1978, Reg; May
                                                3, 2011, Susp.
Michigan:
    DeWitt, Charter Township           260631  August 25, 1975,   ......do..............   Do.
     of, Clinton County.                        Emerg; June 18,
                                                1980, Reg; May
                                                3, 2011, Susp.
    DeWitt, City of, Clinton           260060  July 11, 1975,     ......do..............   Do.
     County.                                    Emerg; December
                                                18, 1979, Reg;
                                                May 3, 2011,
                                                Susp.
    East Lansing, City of,             260089  March 24, 1975,    ......do..............   Do.
     Clinton and Ingham                         Emerg; August 1,
     Counties.                                  1980, Reg; May
                                                3, 2011, Susp.
    Elsie, Village of, Clinton         260725  May 28, 1982,      ......do..............   Do.
     County.                                    Emerg; July 16,
                                                1987, Reg; May
                                                3, 2011, Susp.
    Hubbardston, Village of,           260418  February 7, 1990,  ......do..............   Do.
     Clinton and Ionia Counties.                Emerg; June 1,
                                                1995, Reg; May
                                                3, 2011, Susp.
    Maple Rapids, Village of,          260384  November 8, 1976,  ......do..............   Do.
     Clinton County.                            Emerg; September
                                                1, 1986, Reg;
                                                May 3, 2011,
                                                Susp.
    Ovid, Village of, Clinton          260318  May 1, 1975,       ......do..............   Do.
     County.                                    Emerg; August 2,
                                                1982, Reg; May
                                                3, 2011, Susp.
    St. Johns, City of, Clinton        260726  May 28, 1982,      ......do..............   Do.
     County.                                    Emerg; March 16,
                                                1988, Reg; May
                                                3, 2011, Susp.
    Victor, Township of,               260720  May 11, 1981,      ......do..............   Do.
     Clinton County.                            Emerg; February
                                                2, 1989, Reg;
                                                May 3, 2011,
                                                Susp.
    Watertown, Charter Township        260291  April 16, 1974,    ......do..............   Do.
     of, Clinton County.                        Emerg; May 17,
                                                1982, Reg; May
                                                3, 2011, Susp.
Ohio:
    Bettsville, Village of,            390500  December 21,       ......do..............   Do.
     Seneca County.                             1978, Emerg;
                                                September 30,
                                                1988, Reg; May
                                                3, 2011, Susp.
    Seneca County,                     390779  April 3, 1979,     ......do..............   Do.
     Unincorporated Areas.                      Emerg; May 17,
                                                1990, Reg; May
                                                3, 2011, Susp.
    Tiffin, City of, Seneca            390502  May 12, 1975,      ......do..............   Do.
     County.                                    Emerg; July 3,
                                                1986, Reg; May
                                                3, 2011, Susp.
           Region VI

Arkansas:
    Crittenden County,                 050429  May 18, 1983,      ......do..............   Do.
     Unincorporated Areas.                      Emerg; November
                                                1, 1985, Reg;
                                                May 3, 2011,
                                                Susp.
    Earle, City of, Crittenden         050054  June 20, 1974,     ......do..............   Do.
     County.                                    Emerg; January
                                                3, 1986, Reg;
                                                May 3, 2011,
                                                Susp.
    Edmondson, Town of,                050409  November 8, 1976,  ......do..............   Do.
     Crittenden County.                         Emerg; March 18,
                                                1986, Reg; May
                                                3, 2011, Susp.
    Horseshoe Lake, Town of,           055057  N/A, Emerg;        ......do..............   Do.
     Crittenden County.                         January 18,
                                                2006, Reg; May
                                                3, 2011, Susp.

    Marion, City of, Crittenden        050345  July 9, 1975,      ......do..............   Do.
     County.                                    Emerg; September
                                                1, 1987, Reg;
                                                May 3, 2011,
                                                Susp.
    Turrell, City of,                  050370  July 9, 1976,      ......do..............   Do.
     Crittenden County.                         Emerg; February
                                                1, 1988, Reg;
                                                May 3, 2011,
                                                Susp.
    West Memphis, City of,             050055  June 6, 1974,      ......do..............   Do.
     Crittenden County.                         Emerg; July 16,
                                                1980, Reg; May
                                                3, 2011, Susp.
           Region VII
Iowa:
    Beaver, City of, Boone             190322  January 3, 2008,   ......do..............   Do.
     County.                                    Emerg; May 3,
                                                2011, Reg; May
                                                3, 2011, Susp.
    Boone, City of, Boone              190555  N/A, Emerg;        ......do..............   Do.
     County.                                    October 7, 1993,
                                                Reg; May 3,
                                                2011, Susp..
    Boone County,                      190846  November 9, 1993,  ......do..............   Do.
     Unincorporated Areas.                      Emerg; September
                                                1, 1996, Reg;
                                                May 3, 2011,
                                                Susp.
    Fort Madison, City of, Lee         190184  April 11, 1974,    ......do..............   Do.
     County.                                    Emerg; May 3,
                                                1982, Reg; May
                                                3, 2011, Susp.
    Keokuk, City of, Lee County        190185  March 27, 1974,    ......do..............   Do.
                                                Emerg; March 1,
                                                1978, Reg; May
                                                3, 2011, Susp.
    Lee County, Unincorporated         190182  September 11,      ......do..............   Do.
     Areas.                                     1978, Emerg;
                                                June 15, 1981,
                                                Reg; May 3,
                                                2011, Susp.
    Madrid, City of, Boone             190325  October 21, 1976,  ......do..............   Do.
     County.                                    Emerg; June 10,
                                                1980, Reg; May
                                                3, 2011, Susp.
    Montrose, City of, Lee             190186  August 8, 1975,    ......do..............   Do.
     County.                                    Emerg; February
                                                18, 1981, Reg;
                                                May 3, 2011,
                                                Susp.
    Pilot Mound, City of, Boone        190326  August 28, 1990,   ......do..............   Do.
     County.                                    Emerg; July 1,
                                                1991, Reg; May
                                                3, 2011, Susp.
Kansas:
    Lane, City of, Franklin            200103  December 20,       ......do..............   Do.
     County.                                    2007, Emerg;
                                                September 1,
                                                2008, Reg; May
                                                3, 2011, Susp.
    Rantoul, City of, Franklin         200107  August 7, 1975,    ......do..............   Do.
     County.                                    Emerg; September
                                                1, 1990, Reg;
                                                May 3, 2011,
                                                Susp.
Missouri:
    Blackwater, City of, Cooper        290109  March 22, 1976,    ......do..............   Do.
     County.                                    Emerg; December
                                                7, 1984, Reg;
                                                May 3, 2011,
                                                Susp.
    Boonville, City of, Cooper         290110  October 9, 1974,   ......do..............   Do.
     County.                                    Emerg; October
                                                16, 1984, Reg;
                                                May 3, 2011,
                                                Susp.
    Cooper County,                     290794  April 26, 1984,    ......do..............   Do.
     Unincorporated Areas.                      Emerg; September
                                                1, 1989, Reg;
                                                May 3, 2011,
                                                Susp.
    Pilot Grove, City of,              290678  N/A, Emerg;        ......do..............   Do.
     Cooper County.                             November 24,
                                                2008, Reg; May
                                                3, 2011, Susp.
Nebraska:
    Cozad, City of, Dawson             310059  March 7, 1975,     ......do..............   Do.
     County.                                    Emerg; June 30,
                                                1976, Reg; May
                                                3, 2011, Susp.
    Dawson County,                     310058  March 8, 1984,     ......do..............   Do.
     Unincorporated Areas.                      Emerg; July 1,
                                                1988, Reg; May
                                                3, 2011, Susp.
    Lexington, City of, Dawson         310063  March 23, 1977,    ......do..............   Do.
     County.                                    Emerg; May 15,
                                                1984, Reg; May
                                                3, 2011, Susp.
    Overton, Village of, Dawson        310064  July 1, 1975,      ......do..............   Do.
     County.                                    Emerg; September
                                                27, 1985, Reg;
                                                May 3, 2011,
                                                Susp.
    Sumner, Village of, Dawson         310065  June 27, 1975,     ......do..............   Do.
     County.                                    Emerg; September
                                                27, 1985, Reg;
                                                May 3, 2011,
                                                Susp.
          Region VIII
North Dakota:
    Cavalier, Township of,             380274  July 20, 1981,     ......do..............   Do.
     Pembina County.                            Emerg; July 20,
                                                1981, Reg; May
                                                3, 2011, Susp.
    Crystal, City of, Pembina          380082  July 15, 1975,     ......do..............   Do.
     County.                                    Emerg; January
                                                16, 1981, Reg;
                                                May 3, 2011,
                                                Susp.
    Drayton, City of, Pembina          380150  April 23, 1974,    ......do..............   Do.
     County.                                    Emerg; August 1,
                                                1980, Reg; May
                                                3, 2011, Susp.
    Drayton, Township of,              380276  October 6, 1982,   ......do..............   Do.
     Pembina County.                            Emerg; May 1,
                                                1986, Reg; May
                                                3, 2011, Susp.
    Hamilton, City of, Pembina         380084  January 21, 1976,  ......do..............   Do.
     County.                                    Emerg; February
                                                17, 1988, Reg;
                                                May 3, 2011,
                                                Susp.
    Neche, City of, Pembina            380085  October 18, 1974,  ......do..............   Do.
     County.                                    Emerg; July 16,
                                                1980, Reg; May
                                                3, 2011, Susp.
    Pembina County,                    380079  May 1, 1974,       ......do..............   Do.
     Unincorporated Areas.                      Emerg; November
                                                19, 1987, Reg;
                                                May 3, 2011,
                                                Susp.
    Walhalla, City of, Pembina         380254  May 3, 1976,       ......do..............   Do.
     County.                                    Emerg; April 15,
                                                1980, Reg; May
                                                3, 2011, Susp.

            Region X

Oregon:
    Ashland, City of, Jackson          410090  August 9, 1974,    ......do..............   Do.
     County.                                    Emerg; June 1,
                                                1981, Reg; May
                                                3, 2011, Susp.
    Central Point, City of,            410092  September 18,      ......do..............   Do.
     Jackson County.                            1974, Emerg;
                                                September 30,
                                                1980, Reg; May
                                                3, 2011, Susp.
    Eagle Point, City of,              410093  June 5, 1974,      ......do..............   Do.
     Jackson County.                            Emerg; September
                                                30, 1980, Reg;
                                                May 3, 2011,
                                                Susp.
    Gold Hill, City of, Jackson        410094  August 5, 1974,    ......do..............   Do.
     County.                                    Emerg; September
                                                17, 1980, Reg;
                                                May 3, 2011,
                                                Susp.
    Jackson County,                    415589  December 31,       ......do..............   Do.
     Unincorporated Areas.                      1970, Emerg;
                                                April 1, 1982,
                                                Reg; May 3,
                                                2011, Susp.
    Jacksonville, City of,             410095  April 4, 1975,     ......do..............   Do.
     Jackson County.                            Emerg; December
                                                4, 1979, Reg;
                                                May 3, 2011,
                                                Susp.
    Medford, City of, Jackson          410096  June 7, 1974,      ......do..............   Do.
     County.                                    Emerg; April 15,
                                                1981, Reg; May
                                                3, 2011, Susp.
    Phoenix, City of, Jackson          410097  June 11, 1975,     ......do..............   Do.
     County.                                    Emerg; May 3,
                                                1982, Reg; May
                                                3, 2011, Susp.
    Rogue River, City of,              410098  May 17, 1974,      ......do..............   Do.
     Jackson County.                            Emerg; January
                                                2, 1981, Reg;
                                                May 3, 2011,
                                                Susp.
    Shady Cove, City of,               410099  August 23, 1974,   ......do..............   Do.
     Jackson County.                            Emerg; September
                                                30, 1980, Reg;
                                                May 3, 2011,
                                                Susp.
    Talent, City of, Jackson           410100  April 7, 1975,     ......do..............   Do.
     County.                                    Emerg; February
                                                1, 1980, Reg;
                                                May 3, 2011,
                                                Susp.
----------------------------------------------------------------------------------------------------------------
*do = Ditto.
Code for reading third column: Emerg.--Emergency; Reg.--Regular; Susp. --Suspension.

    Dated: April 15, 2011.
Sandra K. Knight,
Deputy Federal Insurance and
    Mitigation Administrator, Mitigation.
[FR Doc. 2011-10174 Filed 4-26-11; 8:45 am]
BILLING CODE 9110-12-P


[Federal Register Volume 85, Number 7 (Friday, January 10, 2020)]
[Notices]
[Pages 1365-1368]
[FR Doc No: 2020-00202]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87894; File No. SR-CBOE-2020-002]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Opening Triggers for its Opening Rotation Process for Equity
Options

January 6, 2020.
    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 January 2, 2020, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') 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 Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend the opening triggers for its opening rotation process for
equity options. The text of the proposed rule change is provided in
Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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
    The Exchange proposes to amend Rule 5.31 (Opening Auction Process)
in connection with the opening triggers for its opening rotation
process for the Regular Trading Hours (``RTH'') trading session in
equity options. Currently, Rule 5.31(d)(1) governs the RTH opening
rotation triggers for equity options, as well as index options.
Particularly, regarding equity options, Rule 5.31(d)(1) provides that
the System \5\ initiates the opening rotation after a time period
(which the Exchange determines for all classes) following the System's
observation after 9:30 a.m. of the first disseminated transaction on
the primary market in the security underlying an equity option. In
order to ensure a more orderly opening process, the Exchange proposes
to amend the opening trigger process in order to contemplate the first
disseminated quote (in addition to the already included first
disseminated transaction) on the primary market in the underlying
security in determining whether to initiate the opening rotation, as
well as to add an additional timing process following the System's
observation of one, but not both, of the opening triggers.
---------------------------------------------------------------------------

    \5\ See Cboe Options Rule 1.1, which defines the ``System'' as
the Exchange's hybrid trading platform that integrates electronic
and open outcry trading of option contracts on the Exchange, and
includes any connectivity to the foregoing trading platform that is
administered by or on behalf of the Exchange, such as a
communications hub.
---------------------------------------------------------------------------

    Specifically, the Exchange proposes to include the System's
observation of the first disseminated quote on the primary market in
the security underlying the equity options as an additional opening
trigger for equity options.\6\ The Exchange notes this trigger is
intended to tie the Exchange's opening process to quoting in the
underlying security. The Exchange believes that quoting activity in the
underlying market is an additional trigger that generally indicates the
presence of post-open price discovery and liquidity in the primary
market for the underlying, and, therefore, that the market for the
underlying is adequately situated for the commencement of options
trading on the underlying. This additional trigger is also consistent
with general practice in the industry, as other options exchanges use
the first disseminated quote, as well as first disseminated
transaction, as an opening trigger for their opening auction
processes.\7\ As a result, the proposed additional trigger is an
industry practice to which market participants are generally already
accustomed and will provide for greater consistency in the opening
process across the industry. In light of this additional opening
trigger, the Exchange also proposes to adopt additional timing
specifications prior to the initiation of the opening rotation and
contingent upon the System's observation of the first disseminated
transaction and/or quote, as proposed, on the primary market in the
underlying security. Specifically, under proposed Rule
5.31(d)(1)(A),\8\ the System would initiate the opening rotation after
an Exchange-determined time period (which it currently does) upon the
earlier occurrence of either: (i) The passage of two minutes (or such
shorter time as determined by the Exchange) after the System's
observation after 9:30 a.m. of either the first disseminated
transaction or the first disseminated quote on the primary market in
the security underlying an equity option; or (ii) the System's
observation after 9:30 a.m. of both the first disseminated transaction
and the first disseminated quote on the primary market in the security
underlying an equity option.
---------------------------------------------------------------------------

    \6\ The quote must be a two-sided quote.
    \7\ See Nasdaq PHLX LLC (``PHLX'') Rule 1017(d)(i); Nasdaq ISE
LLC (``ISE'') Options 3 Section 8(c)(1); Nasdaq GEMX LLC (``GEMX'')
Options 3 Section 8(c)(1); Nasdaq MRX LLC (``MRX'') Options 3
Section 8(c)(1); Miami International Securities Exchange, LLC
(``MIAX'') Rule 503(e); NYSE American, Inc. (``NYSE American'') Rule
952NY; and NYSE Arca, Inc. (``NYSE Arca'') Rule 6.64-O(b).
    \8\ The Exchange also proposes to format current Rule 5.31(d)(1)
into three subparagraphs; subparagraph (d)(1)(A), governing the RTH
opening rotation triggers for equity options, subparagraph
(d)(1)(B), governing such for index options, and subparagraph
(d)(1)(C), governing such for VIX Index options. This proposed
formatting change will make the rule better organized and easier to
follow and understand.
---------------------------------------------------------------------------

    The proposed additional timing steps in connection with the opening
triggers are intended to ensure that the market for the underlying
security has had sufficient time to open prior to the initiation of the
opening rotation where there is not both a two-sided quote and an
execution in the underlying security. By waiting a requisite amount of
time after the System observes one of the opening triggers, the
proposed process pursuant to proposed Rule 5.31(d)(1)(A)(i) is intended
to permit post-opening price discovery to occur in the underlying
security prior to the opening of options on the security. Similarly, by
initiating the opening rotation upon the System's observation of both
opening triggers prior to the passage of two minutes, proposed Rule
5.31(d)(1)(A)(ii) ties the Exchange's opening process to specific
market conditions in the underlying security that generally indicate
that sufficient post-opening price discovery has occurred prior to the
opening of options on the security. To illustrate, if the System were
to observe a disseminated quote (or transaction) in the primary market
for the underlying security, it would begin the two-minute (or shorter)
timer pursuant to proposed Rule 5.31(d)(1)(A)(i). If two minutes then
passed without the System's observation of a disseminated transaction
(or quote) on the primary market for the underlying security (which
would cause the scenario in Rule 5.31(d)(1)(A)(ii) to occur) then it
would initiate the opening rotation after a time period determined by
the Exchange, as it currently does today. Conversely, if the System
were to observe a disseminated quote (or transaction) in the primary
market and begin the two minute (or shorter) timer, but then observe a
disseminated transaction (or quote) in the primary market before the
passage of two minutes (or shorter), it would then, at the time it
observed the disseminated transaction (or quote) prior to the passage
of two minutes (or shorter), initiate the opening rotation after a
period of time determined by the Exchange.
    The Exchange notes that the proposed rule change in connection with
initiating the opening rotation upon receipt of a trade and a quote in
the underlying is consistent with the opening process rules of NYSE
Arca.\9\ Additionally, the proposed rule change in connection with
initiating the opening rotation following the receipt of either a quote
or trade in the underlying and a timed pause is consistent with other
options exchanges that have similar timers in place following the
receipt of a transaction or quote in the primary market for the
underlying security. For example, MIAX's opening

process rule currently provides that its opening process may begin
following a pause period (no longer than one half second) that, like
the proposed rule change, begins upon the dissemination of either a
quote or a trade in the underlying security.\10\ The Exchange notes
that the MIAX opening process rule provides that following the
dissemination of either a quote or a trade in the underlying security
and the requisite pause period, its opening process will begin upon the
occurrence of certain Market Maker quotes submitted on MIAX. The
Exchange notes, however, that this is not consequential to the activity
or status of the market for the underlying security or the use of an
opening quote or trade in the underlying to trigger the initiation of
an opening process on an options exchange. The Exchange further notes
that the proposed two minute timer (or shorter) is consistent with the
timer provided pursuant to the opening process rules on PHLX, ISE,
GEMX, and MRX.\11\
---------------------------------------------------------------------------

    \9\ See NYSE Arca Rule 6.64-O(b).
    \10\ See MIAX Rule 503(e).
    \11\ See PHLX Options Rule 1017(d)(i); ISE Options 3 Section
8(c)(1); GEMX Options 3 Section 8(c)(1); and MRX Options 3 Section
8(c)(1), each of which begin their opening processes within two
minutes (or such shorter time as determined by the Exchange) of the
opening trade or quote on the market for the underlying security in
the case of equity options (plus the occurrence of another condition
as laid out in the exchanges' rules).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\12\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \13\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, 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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \14\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
    \14\ Id.
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change to include the
first dissemination of a quote on the primary market for the underlying
security as an additional opening trigger for equity options would
serve to remove impediments to and perfect the mechanism of a free and
open market and national market system by incorporating an additional
opening trigger into the Exchange's opening process which would help
ensure that the primary market for the underlying is adequately
situated with the appropriate liquidity and active price discovery in
order to open for trading options on the underlying. Additionally, the
proposed rule change would foster cooperation and coordination with
persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities because it will align the triggers for its equity options
opening rotation with the triggers used by most other options
exchanges.\15\ The proposed change will benefit investors, as it will
create consistency throughout the industry by implementing an
additional opening rotation trigger already in place across much of the
industry and, thus, already familiar to market participants.
---------------------------------------------------------------------------

    \15\ See supra note 7.
---------------------------------------------------------------------------

    In addition to this, the Exchange believes that the proposed rule
change to implement additional timing procedures in connection with the
System's observation of the first disseminated transaction and/or quote
in the primary market for the underlying security prior to the
initiation of the opening rotation would also serve to remove
impediments to and perfect the mechanism of a free and open market and
national market system by ensuring that stability is present in the
underlying markets upon the initiation of the opening rotation to the
benefits of investors. The proposed rule change is intended to promote
the maintenance of a fair and orderly market and, in general, to
protect investors and the public interest by either waiting a requisite
amount of time after the System observes one opening trigger in order
to allocate enough time to permit the price of the underlying security
to stabilize after its opening, or by initiating the opening rotation
upon the System's observation of both opening triggers (as proposed),
thus tying the Exchange's open to the existence of liquidity on the
primary market which generally indicates that sufficient post-opening
price discovery has occurred prior to the opening of options on the
underlying security. Additionally, the Exchange does not believe that
the proposed rule change in connection with initiating trading on Cboe
Options when the System observes a quote and a trade in the underlying
security, or observes either a quote or a trade in the underlying
security followed by a pause, which, as proposed would be two minutes
(or shorter) would significantly impact investors or the public
interest because, as stated, these conditions are consistent with other
options exchanges that have substantively the same conditions in place
in connection with their opening processes.\16\
---------------------------------------------------------------------------

    \16\ See supra notes 7, 9, 10, and 11.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed changes would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule changes would impose any burden on
intramarket competition that is not necessary in furtherance of the
purposes of the Act, because the proposed additional opening trigger
and steps in the opening trigger process would apply in the same manner
to all equity options. The proposed rule change impacts a System
process that occurs prior to the opening of trading, and merely
modifies when the System will initiate an opening rotation. The
Exchange also does not believe that the proposed change would impose
any burden on intermarket competition that is not necessary in
furtherance of the purposes of the Act, because use of the first
disseminated quote from the primary market as a trigger for the opening
rotation, as well as the combination of both opening triggers, or of
one opening trigger plus a pause period of a two minutes (or shorter)
prior to initiating the opening rotation, is consistent with the rules
of other options exchanges.\17\
---------------------------------------------------------------------------

    \17\ See id.
---------------------------------------------------------------------------

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

    The Exchange neither solicited nor received comments on 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, it has become effective pursuant to Section
19(b)(3)(A) of the Act \18\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\19\
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and 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.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \20\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \21\ permits the
Commission to 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. The Exchange states that
the waiver of the operative delay would serve to sooner protect
investors by implementing an additional opening trigger and additional
timing steps in the Exchange's opening process. Based on the Exchange's
representations, the Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest. Therefore, the Commission hereby waives the operative
delay and designates the proposed rule change operative upon
filing.\22\
---------------------------------------------------------------------------

    \20\ 17 CFR 240.19b-4(f)(6).
    \21\ 17 CFR 240.19b-4(f)(6)(iii).
    \22\ For purposes only of waiving the 30-day operative delay,
the Commission also has 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-CBOE-2020-002 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-CBOE-2020-002. 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-CBOE-2020-002 and should be submitted on
or before January 31, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
---------------------------------------------------------------------------

    \23\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-00202 Filed 1-9-20; 8:45 am]
 BILLING CODE 8011-01-P