65188 Federal Register / Vol. 83, No. 243 / Wednesday, December 19, 2018 / Notices 

19 Id. 

20See NYSE American Rule 7.31E(h)(3)(D). 21 17 CFR 200.30–3(a)(12). 

Market Session Opening Process for 

Non-IEX-Listed Securities is consistent 

with the protection of investors and the 

public interest because it will make the 

Exchange’s rules more accurate and 

complete, and descriptive of the 

System’s functionality. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

IEX does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. With regards 

to inter-market competition, the 

proposed resting price for Discretionary 

Peg orders will be the same as the 

resting price of Primary Peg orders 

pursuant to Rule 11.190(b)(8), and thus 

the Exchange believes that no new intermarket burdens are being imposed.19

Furthermore, the Exchange notes that 

other markets are free to adopt similar 

rules for comparable order types to the 

extent that the proposed changes pose a 

competitive threat to their business. In 

this regard, the Exchange notes that 

NYSE American LLC has adopted a rule 

copying an earlier iteration of the 

Exchange’s Discretionary Peg order type 

and quote stability calculation.20

Accordingly, the Exchange also believes 

that the proposed rule change will not 

result in any burden on inter-market 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

With regards to intra-market 

competition, the proposed change will 

modify the resting price of all 

Discretionary Peg orders and will 

therefore be applied equally to all 

Members using the Discretionary Peg 

order type. Moreover, the Exchange 

does not believe that the proposed 

change to the resting price of 

Discretionary Peg orders will result in 

any burden on Members seeking to cross 

the spread and execute at the far side 

quote (the NBO (NBB) for buy (sell) 

orders). To the contrary, the proposed 

change would provide potential benefits 

to such Members. As discussed above, 

the enhanced benefits and protections 

offered by the Discretionary Peg order, 

as proposed, is intended in part to 

incentivize additional resting 

Discretionary Peg orders to be entered 

on the Exchange. Thus, Members 

seeking to cross the spread may be more 

likely to obtain price improvement for 

their liquidity removing orders to the 

extent such orders execute against a 

Discretionary Peg order during times 

when the CQI is off. 

Moreover, as discussed in the Purpose 

and Statutory Basis sections, resting 

Discretionary Peg orders generally 

provide liquidity and opportunities for 

price improvement to market 

participants removing liquidity on the 

Exchange during periods of quote 

stability. Thus, the Exchange further 

believes that by enhancing the 

performance of Discretionary Peg 

orders, and thereby incentivizing 

additional order flow, the proposed 

changes may enhance the overall 

execution experience for other market 

participants seeking to cross the spread 

and execute at the far side quote during 

periods of quote stability, which is 

consistent with the protection of 

investors and the public interest. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission shall: (a) By order 

approve or disapprove such proposed 

rule change, or (b) institute proceedings 

to determine whether the proposed rule 

change should be 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 rule-comments@

sec.gov. Please include File Number SR– 

IEX–2018–23 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–IEX–2018–23. This file 

number should be included in 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 Section, 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 will also be available for 

inspection and copying at the IEX’s 

principal office and on its internet 

website at www.iextrading.com. 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–IEX–2018–23 and 

should be submitted on or before 

January 9, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27403 Filed 12–18–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84817; File No. SR– 

CboeEDGX–2018–037] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on Proposed Rule 

Change To Permit the Listing and 

Trading of P.M.-Settled Series on 

Certain Broad-Based Index Options on 

a Pilot Basis 

December 13, 2018. 

On October 11, 2018, Cboe EDGX 

Exchange, Inc. filed with the Securities 

and Exchange Commission 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 243 / Wednesday, December 19, 2018 / Notices 65189 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 84481 

(Oct. 24, 2018), 83 FR 54624. 

4 15 U.S.C. 78s(b)(2). 

5 Id. 

6 17 CFR 200.30–3(a)(31). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 83319 

(May 24, 2018), 83 FR 25097 (May 31, 2018) (SR– 

NYSEArca–2018–15) (‘‘Prior Order’’). 

4See Securities Exchange Act Release No. 84486 

(Oct. 25, 2018), 83 FR 54794 (‘‘Notice’’). 

5 In Amendment No. 1, the Exchange: (1) 

Corrected its description of the current listing rule 

applicable to the Shares; (2) clarified the scope of 

the Fund’s permitted investments in over-thecounter (‘‘OTC’’) derivatives; (3) supplemented its 

arguments in support of the proposed rule change; 

and (4) made technical changes. Amendment No. 1 

is available at: https://www.sec.gov/comments/srnyseArca-2018-75/srnysearca201875-4628265-176

398.pdf. Amendment No. 1 is not subject to notice 

and comment because it does not materially alter 

the substance of the proposed rule change or raise 

unique or novel regulatory issues. 

6See Prior Order, supra note 3. 

7See id. 

8See Commentary .01(e) to NYSE Arca Rule 

8.600–E. 

9See Notice, supra note 3, 83 FR at 59794. 

10See id. 

11See id., 83 FR at 54794, n.10. 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

permit the listing and trading of P.M.- 

settled series on certain broad-based 

index options on a pilot basis. The 

proposed rule change was published for 

comment in the Federal Register on 

October 30, 2018.3 The Commission has 

received no comment letters on the 

proposed rule change. 

Section 19(b)(2) of the Act 4 provides 

that, within 45 days of the publication 

of notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is December 14, 

2018. The Commission is extending this 

45-day time period. 

The Commission finds that it is 

appropriate to designate a longer period 

within which to take action on the 

proposed rule change so that it has 

sufficient time to consider the proposed 

rule change. Accordingly, the 

Commission, pursuant to Section 

19(b)(2) of the Act,5 designates January 

28, 2019 as the date by which the 

Commission shall either approve or 

disapprove or institute proceedings to 

determine whether to disapprove the 

proposed rule change (File Number SR– 

CboeEDGX–2018–037). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27404 Filed 12–18–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84818; File No. SR– 

NYSEArca–2018–75] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving a 

Proposed Rule Change, as Modified by 

Amendment No. 1 Thereto, Regarding 

the Listing and Trading of Shares of 

the PGIM Ultra Short Bond ETF 

December 13, 2018. 

I. Introduction 

On October 12, 2018, NYSE Arca, Inc. 

(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to modify the rule governing the 

listing and trading of shares (‘‘Shares’’) 

of the PGIM Ultra Short Bond ETF 

(‘‘Fund’’). The Commission previously 

approved the listing and trading of the 

Shares subject to a representation that 

the Fund’s investments in OTC 

derivatives would not exceed 20% of 

the Fund’s net assets.3 The Exchange 

now seeks to permit the Fund to invest 

up to 50% of its net assets in OTC 

derivatives under certain circumstances. 

The proposed rule change was 

published for comment in the Federal 

Register on October 31, 2018.4 On 

November 7, 2018, the Exchange filed 

Amendment No. 1 to the proposed rule 

change.5 The Commission has not 

received any comments on the proposed 

rule change. This order approves the 

proposed rule change, as modified by 

Amendment No. 1. 

II. Description of the Proposed Rule 

Change, as Modified by Amendment 

No. 1 

The Shares are Managed Fund Shares 

that do not satisfy all of the criteria for 

generic listing set forth in Commentary 

.01 to NYSE Arca Rule 8.600–E. Thus, 

the Exchange currently lists and trades 

the Shares pursuant to a rule (‘‘Listing 

Rule’’) approved by Commission.6 The 

Listing Rule requires that the Fund’s 

portfolio meet all requirements of 

Commentary .01 to NYSE Arca Rule 

8.600–E except for those set forth in 

Commentary .01(a)(1), Commentary 

.01(b)(4) and Commentary .01(b)(5).7

Accordingly, the Listing Rule limits the 

Fund’s investments in OTC derivatives 

to 20% of the Fund’s assets and, for 

purposes of calculating this limit, the 

portfolio’s investment in OTC 

derivatives is calculated using the 

aggregate gross notional value of the 

OTC derivatives.8

The Exchange proposes to allow: (1) 

Up to 50% of the Fund’s assets to be 

invested in OTC derivatives that are 

used to reduce currency, interest rate, 

credit, or duration risk arising from the 

Fund’s investments (‘‘Hedging 

Derivatives’’); and (2) up to 20% of the 

Fund’s assets to be invested in OTC 

derivatives other than Hedging 

Derivatives. For purposes of calculating 

the proposed alternative limits, the 

portfolio’s investments in OTC 

derivatives would be calculated using 

the aggregate gross notional value of the 

OTC derivatives. 

According to the Exchange, the 

Fund’s adviser and sub-adviser believe 

that it is important to provide the Fund 

with additional flexibility to manage 

risk associated with its investments and, 

depending on market conditions, it may 

be necessary for the Fund to utilize 

additional OTC derivatives for this 

purpose.9 Generally, according to the 

Exchange, OTC derivatives may be 

customized to a greater degree than 

exchange-listed derivatives, which may 

allow the Fund to better hedge its assets 

and may mitigate trading its costs.10

The Exchange also states that the 

Commission has previously approved 

an exception from the requirements of 

Commentary .01(e) relating to 

investments in OTC derivatives similar 

to those proposed with respect to the 

Fund.11

III. Discussion 

After careful review, the Commission 

finds that the Exchange’s proposed rule 

change, as modified by Amendment No. 

1, to amend the Listing Rule applicable 

to the Shares consistent with the Act 

and the rules and regulations 


amozie on DSK3GDR082PROD with NOTICES1