32172 Federal Register / Vol. 83, No. 133 / Wednesday, July 11, 2018 / Notices 

16 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See https://www.nyse.com/publicdocs/ctaplan/ 

notifications/trader-update/CTS_CQS%202018_

Failover%20Testing_Q1.pdf. 

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 

SRb–4CboeEDGX–2018–024 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 SRb–4CboeEDGX–2018–024. 

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 SRb–4CboeEDGX–2018–024 

and should be submitted on or before 

August 1, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14849 Filed 7–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83601; File No. SR–NYSE– 

2018–31] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change, as 

Modified by Amendment No. 1, To 

Require Certain Member Organizations 

To Participate in Scheduled MarketWide Circuit Breaker Testing 

July 6, 2018. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on June 26, 

2018, the New York Stock Exchange 

LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change. On July 5, 2018, 

the Exchange filed Amendment No. 1 to 

the 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, as amended, from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to require 

certain member organizations to 

participate in scheduled Market-Wide 

Circuit Breaker testing. Amendment 

No.1 supersedes the original filing in its 

entirety. The proposed rule change is 

available on the Exchange’s website at 

www.nyse.com, at the principal office of 

the Exchange, 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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Rule 49 to require certain member 

organizations to participate in 

scheduled Market-Wide Circuit Breaker 

(‘‘MWCB’’) testing. 

MWCBs are important, automatic 

mechanisms that are invoked to 

promote stability and investor 

confidence during a period of 

significant stress when securities 

markets experience extreme broad-based 

declines. MWCBs are designed to slow 

the effects of extreme price movement 

through coordinated trading halts across 

securities markets when severe price 

declines reach levels that may exhaust 

market liquidity. All U.S. equity and 

options exchanges have established 

procedures that allow for trading to be 

halted, or under extreme circumstances, 

for markets to be closed before the 

normal close of trading for a trading 

day. MWCBs provide for trading halts in 

all equities and options markets during 

a severe market decline as measured by 

a single-day decline in the S&P 500 

Index. 

Pursuant to NYSE Rule 80B (Trading 

Halts Due to Extraordinary Market 

Volatility), a market-wide trading halt 

will be triggered if the S&P 500 Index 

declines in price by specified 

percentages from the prior day’s closing 

price of that index. Currently, the 

triggers are set at three circuit breaker 

thresholds: 7% (Level 1), 13% (Level 2) 

and 20% (Level 3). A market decline 

that triggers a Level 1 or Level 2 circuit 

breaker after 9:30 a.m. ET and before 

3:25 p.m. ET would halt market-wide 

trading for 15 minutes, while a similar 

market decline at or after 3:25 p.m. ET 

would not halt market-wide trading. A 

market decline that triggers a Level 3 

circuit breaker, at any time during the 

trading day, would halt market-wide 

trading for the remainder of the trading 

day. 

The Security [sic] Information 

Processors (‘‘SIP’’) for the U.S. equity 

markets have established a quarterly 

MWCB testing schedule.4 On the 


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Federal Register / Vol. 83, No. 133 / Wednesday, July 11, 2018 / Notices 32173 

5The CTA/CQ Plans govern the collection, 

consolidation, processing and dissemination of last 

sale and quotation information for Network A and 

Network B securities. Network A refers to securities 

listed on NYSE and Network B refers to securities 

listed on exchanges other than the Nasdaq Stock 

Market LLC (‘‘Nasdaq’’). 

6The Joint Self-Regulatory Organization Plan 

Governing the Collection, Consolidation and 

Dissemination of Quotation and Transaction 

Information for Nasdaq-Listed Securities Traded on 

Exchanges on an Unlisted Trading Privileges Basis 

(‘‘Nasdaq/UTP Plan’’) governs the collection, 

consolidation, processing, and dissemination of last 

sale and quotation information for Network C 

securities. Network C refers to securities listed on 

Nasdaq. 

7Paragraph (b)(1) of Rule 49 establishes standards 

for the designation of member organizations that the 

Exchange determines are necessary to participate in 

business continuity and disaster recovery plans 

testing in connection with Regulation SCI. See 

Securities Exchange Act Release No. 76346 

(November 4, 2015), 80 FR 69765 (November 10, 

2015). 

8Member organizations were notified of required 

participation for the 2018 Regulation SCI test 

scheduled for October 13, 2018 in April 2018. As 

noted above, the Exchange encourages all member 

organizations to test voluntarily but believes that 

implementing the new rule in 2019 would provide 

member organizations with adequate time to 

prepare for a scheduled MWCB test. 

9See supra, note 4. 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

scheduled dates, the Consolidated Tape 

Association Plan (‘‘CTA Plan’’) and the 

Consolidated Quotation Plan (‘‘CQ’’ 

Plan’’) (collectively ‘‘the CTA/CQ 

Plans’’) 5 and the Nasdaq/UTP Plan 6

conduct MWCB testing that allows 

market participants across the securities 

industry to test their ability to receive 

messages associated with MWCBs, 

including decline status, halt and 

resume messages. Market participants 

are also able to participate in testing of 

re-opening auctions following marketwide circuit breaker halts. 

The Exchange believes the quarterly 

tests are critical to ensure that securities 

markets halt trading and subsequently 

re-open in a manner consistent with the 

MWCB rules. To that end, the Exchange 

believes that certain member 

organizations should be required to 

participate in scheduled MWCB tests. 

The proposed rule would provide the 

Exchange with authority to require 

participation by member organizations 

in industry-wide tests to validate that 

their processing in the event of MWCB 

is as expected within their systems. 

In 2015, in connection with 

Regulation Systems Compliance and 

Integrity (‘‘Regulation SCI’’), the 

Exchange adopted rules to require 

certain member organizations to 

participate in testing of the operation of 

the Exchange’s business continuity and 

disaster recovery plans. The Exchange 

similarly believes that requiring member 

organizations to participate in 

mandatory MWCB testing because they, 

for example, account for a significant 

portion of the Exchange’s overall 

volume or maintain exclusive 

responsibilities with respect to 

Exchange-listed securities would be a 

reasonable means to ensure the 

maintenance of a fair and orderly 

market. Because member organizations 

required to participate in Regulation SCI 

testing have already been identified as 

essential for the maintenance of a fair 

and orderly market, the Exchange 

believes these same member 

organizations should also be required to 

participate in scheduled MWCB testing. 

Accordingly, the Exchange proposes 

new Rule 49(c)(1), which would provide 

that each member organization notified 

of its obligation to participate in 

mandatory testing pursuant to standards 

established under paragraphs (b)(1) and 

(3) 7 of Rule 49 would also be required 

to participate in scheduled MWCB 

testing, in the manner and frequency 

specified by the Exchange. 

Currently, the annual Regulation SCI 

test is conducted in October of each 

calendar year and at least three (3) 

months prior to such test, the Exchange 

provides a notice to member 

organizations that are required to 

participate in such test (‘‘SCI Notice’’). 

The Exchange proposes that future SCI 

Notices would also include notification 

to member organizations of their 

obligation to participate in a scheduled 

MWCB test. 

Finally, proposed Rule 49(c)(2) would 

provide that member organizations not 

required to participate in a scheduled 

MWCB test pursuant to standards 

established in paragraphs (b)(1) and (3) 

of Rule 49 would be permitted to 

participate in a scheduled MWCB test. 

The Exchange proposes to implement 

the proposed rule change at the same 

time that the Exchange notifies member 

organizations of required participation 

in the 2019 Regulation SCI industry 

test.8 The 2019 SCI Notice would 

identify the member organizations that 

would be required to participate in 

scheduled MWCB testing. Member 

organizations notified in the 2019 SCI 

Notice of their obligation to participate 

in a scheduled MWCB test would be 

required to participate in such test on at 

least one of the testing dates established 

by the SIPs.9

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,10 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,11 in particular, because it is 

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 

mechanisms of, a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest and because it is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The proposed rule requiring member 

organizations to participate in 

mandatory MWCB testing would enable 

the Exchange, participating member 

organizations, and others to evaluate the 

readiness of such member organizations 

in the event of unanticipated market 

volatility. The proposal would also 

ensure that the member organizations 

necessary to ensure the maintenance of 

a fair and orderly market are properly 

designated as such designation would 

be determined by the same clear and 

objective standards used by the 

Exchange currently to determine which 

member organizations are required to 

participate in mandatory Regulation SCI 

testing. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes that requiring 

participation in MWCB testing does not 

impose an undue burden on 

competition that is not necessary or 

appropriate because member 

organizations required to participate in 

MWCB testing under the proposal have 

been designated by the Exchange as 

essential to the maintenance of a fair 

and orderly market, such that their 

demonstrated ability to halt and 

subsequently re-open trading in 

response to an emergency should 

contribute to a fair and orderly market 

for the benefit of all market participants. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 


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32174 Federal Register / Vol. 83, No. 133 / Wednesday, July 11, 2018 / Notices 

12 17 CFR 200.30–3(a)(12). 

1The Existing Affiliated Funds, together with 

their direct and indirect wholly-owned subsidiaries, 

are entities (i) (A) whose primary investment 

adviser is a GSO Adviser or (B) whose primary 

investment adviser is a registered investment 

adviser that controls, is controlled by or is under 

common control with an Adviser (as defined 

below), but is itself not an Adviser (each, an 

‘‘Existing Primary Adviser’’), and whose subadviser is an Adviser (each, an ‘‘Existing SubAdvised Affiliated Fund’’) and (ii) that either (A) 

would be an investment company but for section 

3(c)(1) or 3(c)(7) of the Act or (B) rely on the rule 

3a–7 exemption thereunder from investment 

company status. The sole Existing Primary Adviser 

is BAS. Each of the Existing Sub-Advised Affiliated 

Funds are sub-advised by GSO Capital Partners LP, 

a GSO Adviser. 

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 up to 90 days (i) as the 

Commission may designate if it finds 

such longer period to be appropriate 

and publishes its reasons for so finding 

or (ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

the 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– 

NYSE–2018–31 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–NYSE–2018–31. 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–NYSE–2018–31 and should 

be submitted on or before August 1, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14850 Filed 7–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

33149; 812–14835] 

Blackstone/GSO Floating Rate 

Enhanced Income Fund, et al. 

July 6, 2018. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice. 

Notice of application for an order 

under sections 17(d) and 57(i) of the 

Investment Company Act of 1940 (the 

‘‘Act’’) and rule 17d–1 under the Act to 

permit certain joint transactions 

otherwise prohibited by sections 17(d) 

and 57(a)(4) of the Act and rule 17d–1 

under the Act. 

SUMMARY OF APPLICATION: Applicants 

request an order to permit business 

development companies (‘‘BDCs’’) and 

closed-end management investment 

companies to co-invest in portfolio 

companies with each other and with 

certain affiliated investment funds and 

accounts. 

APPLICANTS: Blackstone/GSO Floating 

Rate Enhanced Income Fund 

(‘‘BGFREI’’); Blackstone/GSO LongShort Credit Income Fund (‘‘BGX’’); 

Blackstone/GSO Senior Floating Rate 

Term Fund (‘‘BSL’’); Blackstone/GSO 

Strategic Credit Fund (‘‘BGB’’); 

Blackstone/GSO Secured Lending Fund 

(‘‘BGSL,’’ and together with BGFREI, 

BGX, BSL, BGB, the ‘‘GSO Regulated 

Funds’’); GSO/Blackstone Debt Funds 

Management LLC (‘‘GDFM’’), the 

investment adviser to BGFREI, BGX, 

BSL and BGB; GSO Asset Management 

LLC (‘‘GAM’’), the proposed investment 

adviser to BGSL; the investment 

advisers set forth in Schedule A to the 

application (together with GDFM and 

GAM, the ‘‘GSO Advisers’’); the Existing 

Affiliated Funds set forth on Schedule 

A to the application 1; and Blackstone 

Alternative Solutions L.L.C. (‘‘BAS’’). 

FILING DATES: The application was filed 

on October 13, 2017, and amended on 

June 25, 2018. Applicants have agreed 

to file an amendment during the notice 

period, the substance of which is 

reflected in this notice. 

HEARING OR NOTIFICATION OF HEARING: 

An order granting the requested relief 

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 July 30, 2018, and 

should be accompanied by proof of 

service on applicants, in the form of an 

affidavit or, for lawyers, a certificate of 

service. Pursuant to rule 0–5 under the 

Act, hearing requests should state the 

nature of the writer’s interest, any facts 

bearing upon the desirability of a 

hearing on the matter, the reason for the 

request, and the issues contested. 

Persons who wish to be notified of a 

hearing may request notification by 

writing to the Commission’s Secretary. 

ADDRESSES: Secretary, U.S. Securities 

and Exchange Commission, 100 F St. 

NE, Washington, DC 20549–1090. 

Applicants: 345 Park Avenue, New 

York, New York 10154. 

FOR FURTHER INFORMATION CONTACT: 

Asen Parachkevov, Senior Counsel, or 

David J. Marcinkus, Branch Chief, at 

(202) 551–6821 (Chief Counsel’s Office, 

Division of Investment Management). 

SUPPLEMENTARY INFORMATION: The 

following is a summary of the 

application. The complete application 

may be obtained via the Commission’s 

website by searching for the file 

number, or for an applicant using the 

Company name box, at http:// 


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