31810 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 

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). 

80% of the Fund’s total assets and are 

publicly traded on a United States stock 

exchange like shares of the Fund’s 

common stock. The number of Alibaba 

shares to be exchanged per tendered 

Fund share will be based on a fixed 

exchange ratio. The amount of cash to 

be paid per tendered Fund share will be 

equal to a fixed multiple applied to the 

volume weighted average price for 

Alibaba ADSs on the second to last full 

trading day of the In-Kind Repurchase 

Offer. Stockholders will not be given a 

choice as to the amount or form of 

consideration. Each tendering 

stockholder will receive, for each Fund 

share tendered, the same number of 

Alibaba ADSs and the same amount of 

cash. 

2. The Alibaba ADSs offered and 

exchanged to stockholders pursuant to 

the In-Kind Repurchase Offer are 

securities that are listed on a public 

securities market for which quoted bid 

and asked prices are available. 

3. The Alibaba ADSs offered and 

exchanged to stockholders pursuant to 

the In-Kind Repurchase Offer will be 

valued in the same manner as they 

would be valued for purposes of 

computing Applicant’s net asset value, 

consistent with the requirements of 

section 2(a)(41) of the Act. 

4. Applicant will maintain and 

preserve for a period of not less than six 

years from the end of the fiscal year in 

which the In-Kind Repurchase Offer 

occurs, the first two years in an easily 

accessible place, a written record of the 

In-Kind Repurchase Offer, that includes 

the identity of each stockholder of 

record that participated in the In-Kind 

Repurchase Offer, whether that 

stockholder was an Affiliated 

Stockholder, a description of each 

security distributed, the terms of the 

distribution, and the information or 

materials upon which the valuation was 

made. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14658 Filed 7–6–18; 8:45 am] 

BILLING CODE P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83587; File No. SR–CBOE– 

2018–051] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fees 

Schedule With Respect to Expiring Fee 

Waivers and Remove the FLEX Trader 

Incentive Program 

July 3, 2018. 

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 July 2, 

2018, 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 ‘‘noncontroversial’’ 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Fees Schedule relating to various fee 

waivers and the Flex Trader Incentive 

Program that are set to expire June 30, 

2018. 

The text of the proposed rule change 

is 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 its 

Fees Schedule relating to various fee 

waivers and the Flex Trader Incentive 

Program that are set to expire June 30, 

2018. 

VIX and Select Sector License Index 

Surcharge 

The Exchange first proposes to extend 

the current waiver of the VIX and Select 

Sector Index License Surcharge of $0.10 

per contract for Clearing Trading Permit 

Holder Proprietary (‘‘Firm’’) (origin 

codes ‘‘F’’ or ‘‘L’’) VIX and Select Sector 

orders that have a premium of $0.10 or 

lower and have series with an 

expiration of seven (7) calendar days or 

less. The Exchange adopted the current 

waiver to reduce transaction costs on 

expiring, low-priced VIX and Select 

Sector options, which the Exchange 

believed would encourage Firms to seek 

to close and/or roll over such positions 

close to expiration at low premium 

levels, including facilitating customers 

to do so, in order to free up capital and 

encourage additional trading. The 

Exchange had proposed to waive the 

surcharge through June 30, 2018, at 

which time the Exchange had stated that 

it would evaluate whether the waiver 

has in fact prompted Firms to close and 

roll over these positions close to 

expiration as intended. The Exchange 

believes the waiver encourages Firms to 

do so and as such, proposes to extend 

the waiver of the surcharge through 

December 31, 2018, at which time the 

Exchange will again reevaluate whether 

the waiver has continued to prompt 

Firms to close and roll over positions 

close to expiration at low premium 

levels. Accordingly, the Exchange 

proposes to delete the reference to the 

current waiver period of June 30, 2018 

from the Fees Schedule and replace it 

with December 31, 2018. 

Extended Trading Hour Fees 

In order to promote and encourage 

trading during the Extended Trading 

Hours (‘‘ETH’’) session, the Exchange 

currently waives ETH Trading Permit 

and Bandwidth Packet fees for one (1) 

of each initial Trading Permits and one 

(1) of each initial Bandwidth Packet, per 

affiliated TPH. The Exchange notes that 

waiver is set to expire June 30, 2018. 

The Exchange also waives fees through 

June 30, 2018 for a CMI and FIX login 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 31811 

5 15 U.S.C. 78f(b). 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78f(b)(4). 

ID if the CMI and/or FIX login ID is 

related to a waived ETH Trading Permit 

and/or waived Bandwidth packet. In 

order to continue to promote trading 

during ETH, the Exchange wishes to 

extend these waivers through December 

31, 2018. 

RLG, RLV, RUI, AWDE, FTEM, FXTM 

and UKXM Transaction Fees 

In order to promote and encourage 

trading of seven new FTSE Russell 

Index products (i.e., Russell 1000 

Growth Index (‘‘RLG’’), Russell 1000 

Value Index (‘‘RLV’’), Russell 1000 

Index (‘‘RUI’’), FTSE Developed Europe 

Index (‘‘AWDE’’), FTSE Emerging 

Markets Index (‘‘FTEM’’), China 50 

Index ‘‘(FXTM’’) and FTSE 100 Index 

(‘‘UKXM’’)), the Exchange waives all 

transaction fees (including the Floor 

Brokerage Fee, Index License Surcharge 

and CFLEX Surcharge Fee) for each of 

these products. This waiver however, is 

set to expire June 30, 2018. In order to 

continue to promote trading of these 

options classes, the Exchange proposes 

to extend the fee waiver through 

December 31, 2018. 

FLEX Asian and Cliquet Flex Trader 

Incentive Program 

By way of background, a FLEX Trader 

is entitled to a pro-rata share of the 

monthly compensation pool based on 

the customer order fees collected from 

customer orders traded against that 

FLEX Trader’s orders with origin codes 

other than ‘‘C’’ in FLEX Broad-Based 

Index Options with Asian or Cliquet 

style settlement (‘‘Exotics’’) each month 

(‘‘Flex Trader Incentive Program’’). The 

Fees Schedule provides that the Flex 

Trader Incentive Program is set to expire 

either by June 30, 2018 or until total 

average daily volume in Exotics exceeds 

15,000 contracts for three consecutive 

months, whichever comes first. The 

Exchange notes that total average daily 

volume in Exotics has not yet exceeded 

15,000 contracts for three consecutive 

months. The Exchange also has 

determined that it no longer wishes to 

maintain this program and as such does 

not intend to extend the program past 

June 30, 2018. As such, the Exchange 

proposes to remove the program 

(currently set forth in Footnote 42) from 

the Fees Schedule. 

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.5 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 6 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 

Section 6(b)(4) of the Act,7 which 

requires that Exchange rules provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

Trading Permit Holders and other 

persons using its facilities. 

The Exchange believes it’s 

appropriate to continue to waive the 

VIX and Select Sector Index License 

Surcharge for Clearing Trading Permit 

Holder Proprietary VIX and Select 

Sector orders that have a premium of 

$0.10 or lower and have series with an 

expiration of 7 calendar days or less 

because the Exchange wants to continue 

encouraging Firms to roll and close over 

positions close to expiration at low 

premium levels. Particularly, the 

Exchange believes it’s reasonable to 

waive the entire $0.10 per contract 

surcharge because without the waiver of 

the surcharge, firms are less likely to 

engage in these transactions, as opposed 

to other VIX and Select Sector 

transactions, due to the associated 

transaction costs. The Exchange believes 

it’s equitable and not unfairly 

discriminatory to limit the waiver to 

Clearing Trading Permit Holder 

Proprietary orders because they 

contribute capital to facilitate the 

execution of VIX and Select Sector 

customer orders with a premium of 

$0.10 or lower and series with an 

expiration of 7 calendar days or less. 

Finally, the Exchange believes it’s 

reasonable, equitable and not unfairly 

discriminatory to provide that the 

surcharge will be waived through 

December 2018, as it gives the Exchange 

additional time to evaluate if the waiver 

is continuing to have the desired effect 

of encouraging these transactions. 

The Exchange believes extending the 

waiver of ETH Trading Permit and 

Bandwidth Packet fees for one of each 

type of Trading Permit and Bandwidth 

Packet, per affiliated TPH through 

December 31, 2018 is reasonable, 

equitable and not unfairly 

discriminatory, because those respective 

fees are being waived in their entirety, 

which promotes and encourages trading 

during the ETH session and applies to 

all ETH TPHs. The Exchange believes 

it’s also reasonable, equitable and not 

unfairly discriminatory to waive fees for 

Login IDs related to waived Trading 

Permits and/or Bandwidth Packets in 

order to promote and encourage ongoing 

participation in ETH and also applies to 

all ETH TPHs. 

The Exchange believes it is 

reasonable, equitable and not unfairly 

discriminatory to extend the waiver of 

all transaction fees for RLG, RLV, RUI, 

AWDE, FTEM, FXTM and UKXM 

transactions, including the Floor 

Brokerage fee, the License Index 

Surcharge and CFLEX Surcharge Fee, 

because the respective fees are being 

waived in their entirety, which 

promotes and encourages trading of 

these products which are still relatively 

new and applies to all TPHs. 

The Exchange believes eliminating 

the FLEX Asian and Cliquet Flex 

Trading Incentive Program is 

reasonable, equitable and not unfairly 

discriminatory because the program is 

not providing the desired result of 

incentivizing FLEX Traders to trade 

FLEX Asian and Cliquet options. The 

Exchange believes the proposed change 

is not unfairly discriminatory because it 

will apply equally to all Flex Traders. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on intramarket or 

intermarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed changes are intended to either 

extend existing fee waivers or eliminate 

from the Fees Schedule a program that 

is expiring on June 30, 2018 and apply 

to all TPHs uniformly. The proposed 

changes only affect trading on Cboe 

Options. The Exchange believes the 

proposed change therefore does not 

raise any competitive issues. 

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. 


sradovich on DSK3GMQ082PROD with NOTICES
31812 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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. 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6)(iii). 

12For 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). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Lead Market Maker’’ means a 

Member registered with the Exchange for the 

purpose of making markets in securities traded on 

the Exchange and that is vested with the rights and 

responsibilities specified in Chapter VI of the 

Exchange’s Rules with respect to Lead Market 

Makers. See Exchange Rule 100. 

4The term ‘‘Registered Market Maker’’ means a 

Member registered with the Exchange for the 

purpose of making markets in securities traded on 

the Exchange, who is not a Lead Market Maker and 

is vested with the rights and responsibilities 

specified in Chapter VI of the Exchange’s Rules 

with respect to Registered Market Makers. See 

Exchange Rule 100. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (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)(iii) of the Act 8 and 

subparagraph (f)(6) Rule 19b–4 

thereunder.9

A proposed rule change filed under 

Rule 19b–4(f)(6) 10 normally does not 

become operative for 30 days after the 

date of filing. However Rule 19b– 

4(f)(6)(iii) 11 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 requested that the 

Commission waive the 30-day operative 

delay to permit the applicable fee 

waivers to be extended on a timely basis 

and without interruption and to update 

its rule text to reflect the sunsetting of 

the FLEX Trader Incentive Program as 

scheduled. The Commission believes 

that waiver of the 30-day operative 

delay is consistent with the protection 

of investors and the public interest 

because the proposal to extend to 

December 31, 2018 temporary 

incentives designed to encourage 

trading in the above-discussed products 

and trading sessions, and to remove 

obsolete text concerning the FLEX 

Trader Incentive Program, does not raise 

any new or novel issues. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change operative upon 

filing.12

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 rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2018–051 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–2018–051. 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–2018–051 and 

should be submitted on or before July 

30, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14666 Filed 7–6–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83577; File No. SR–MIAX– 

2018–13] 

Self-Regulatory Organizations; Miami 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Exchange Rule 602, 

Appointment of Market Makers 

July 2, 2018. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on June 26, 

2018, Miami International Securities 

Exchange, LLC (‘‘MIAX Options’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

as described in Items I, II, and III below, 

which Items have been prepared by the 

Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend Rule 602, Appointment of 

Market Makers, to specify the new 

method by which Lead Market Makers 3

(‘‘LMMs’’) and Registered Market 

Makers 4 (‘‘RMMs’’) request 

appointments to one or more classes of 

option contracts traded on the 

Exchange. 


sradovich on DSK3GMQ082PROD with NOTICES