35512 Federal Register / Vol. 83, No. 144 / Thursday, July 26, 2018 / Notices 

44The Funds also may invest in options overlying 

Reference ETFs. 

45For a list of the current members of ISG, see 

www.isgportal.org. 

46 17 CFR 240.10A–3. 

47See Amendment No. 4, supra note 7, at 20. 

48 15 U.S.C. 78f(b)(5). 

49 15 U.S.C. 78s(b)(2). 

50 Id. 

51 17 CFR 200.30–3(a)(12). 

satisfy the requirement of BZX Rule 

14.11(i)(4)(C)(iv)(b) that the aggregate 

gross notional value of listed derivatives 

based on any five or fewer underlying 

reference assets shall not exceed 65% of 

the weight of the portfolio and the 

aggregate gross notional value of listed 

derivatives based on any single 

underlying reference asset not exceed 

30% of the weight of the portfolio 

(including gross notional exposures). 

Although the Funds will hold listed 

derivatives primarily on a single 

reference asset, the S&P 500 Index,44 the 

Commission believes that the prices of 

the Shares will be less susceptible to 

manipulation. As the Exchange states, 

options on the S&P 500 Index are among 

the most liquid options in the world, 

and derive their value from the actively 

traded index components. Additionally, 

all of the options held by the Funds will 

trade on markets that are a member of 

ISG or affiliated with a member of ISG 

or with which the Exchange has in place 

a comprehensive surveillance sharing 

agreement.45

In support of this proposal, the 

Exchange represented that: 

(1) The Funds and the Shares will 

satisfy all of the requirements applicable 

to Managed Fund Shares under BZX 

Rule 14.11(i), as well as the Generic 

Listing Standards other than BZX Rule 

14.11(i)(4)(C)(iv)(b). 

(2) Trading in the Shares will be 

subject to the existing trading 

surveillances administered by the 

Exchange, as well as cross-market 

surveillances administered by Cboe 

Options and FINRA, on behalf of the 

Exchange, which are designed to detect 

violations of Exchange rules and 

applicable federal securities laws. 

(3) For initial and continued listing, 

the Funds will be in compliance with 

Rule 10A–3 under the Act.46

(4) A minimum of 100,000 Shares will 

be outstanding at the commencement of 

trading on the Exchange.47

This approval order is based on all of 

the Exchange’s statements and 

representations, including those set 

forth above and in Amendment No. 4. 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change, as modified by Amendment 

No. 4 thereto, is consistent with Section 

6(b)(5) of the Act 48 and the rules and 

regulations thereunder applicable to a 

national securities exchange. 

IV. Solicitation of Comments on 

Amendment No. 4 to the Proposed Rule 

Change 

Interested persons are invited to 

submit written views, data, and 

arguments concerning whether 

Amendment No. 4 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 SRBatsBZX–2017–72 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–BatsBZX–2017–72. 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–BatsBZX–2017–72 and 

should be submitted on or before 

August 16, 2018. 

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 4 

The Commission finds good cause to 

approve the proposed rule change, as 

modified by Amendment No. 4, prior to 

the 30th day after the date of 

publication of notice of the filing of 

Amendment No. 4 in the Federal 

Register. Amendment No. 4 

supplements the proposal by, among 

other things, representing that the issuer 

will provide and maintain a publicly 

available web tool for each of the Funds 

that will offer important information to 

help inform investment decisions by 

prospective and existing shareholders. 

The amendment assisted the 

Commission in evaluating the 

Exchange’s proposal and in determining 

that the listing and trading of the Shares 

is consistent with the Act. Accordingly, 

the Commission finds good cause, 

pursuant to Section 19(b)(2) of the 

Act,49 to approve the proposed rule 

change, as modified by Amendment No. 

4, on an accelerated basis. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,50 that the 

proposed rule change (SR–BatsBZX– 

2017–72), as modified by Amendment 

No. 4 be, and it hereby is, approved on 

an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.51

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–15945 Filed 7–25–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: 83 FR 35041, July 24, 

2018. 

PREVIOUSLY ANNOUNCED TIME AND DATE OF

THE MEETING: Thursday, July 26, 2018 at 

2:00 p.m. 

CHANGES IN THE MEETING: The following 

matter will also be considered during 

the 2 p.m. Closed Meeting scheduled for 

Thursday, July 26, 2018: 

Formal order of investigation 

CONTACT PERSON FOR MORE INFORMATION: 

For further information and to ascertain 

what, if any, matters have been added, 

deleted or postponed, please contact the 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 144 / Thursday, July 26, 2018 / Notices 35513 

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

2 17 CFR 240.19b–4. 

3Terms not defined herein are defined in the EPN 

Rules, available at http://www.dtcc.com/∼/media/ 

Files/Downloads/legal/rules/ficc_mbsd_

epnrules.pdf. 

4See EPN Rules Article III (EPN Users), EPN Rule 

1 (Requirements Applicable to EPN Users), supra 

note 3. 

5MBSD maintains two sets of rulebooks. The EPN 

Rules govern MBSD’s EPN Service and the MBSD 

Clearing Rules (the ‘‘MBSD Rules’’) govern MBSD’s 

clearance and settlement service. The MBSD Rules 

are available at http://www.dtcc.com/∼/media/ 

Files/Downloads/legal/rules/ficc_mbsd_rules.pdf. 

Pursuant to the MBSD Rules, the term ‘‘Clearing 

Member’’ means any entity admitted into 

membership pursuant to MBSD Rule 2A. See MBSD 

Rule 1, Definitions. 

Office of the Secretary at (202) 551– 

5400. 

Dated: July 23, 2018. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–16035 Filed 7–24–18; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83682; File No. SR–FICC– 

2018–005] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing of Proposed Rule Change To 

Correct Certain References and 

Provide Transparency to Existing 

Processes in the Mortgage-Backed 

Securities Division Electronic Pool 

Notification Rules 

July 20, 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 July 13, 

2018, Fixed Income Clearing 

Corporation (‘‘FICC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

by the clearing agency. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change consists of 

amendments to the FICC MortgageBacked Securities Division (‘‘MBSD’’) 

electronic pool notification (‘‘EPN’’) 

Rules (the ‘‘EPN Rules’’) 3 as described 

below. 

FICC is proposing to correct the EPN 

Rules by amending several references in 

the section of the EPN Rules entitled 

‘‘FICC Mortgage-Backed Securities 

Division (‘‘MBSD’’) EPN Schedule of 

Charges.’’ Specifically, FICC is 

proposing to replace the references to 

‘‘FICC’’ with ‘‘the Corporation.’’ FICC is 

proposing this change because ‘‘FICC’’ 

is not a term that is defined in the EPN 

Rules. In addition, FICC is proposing to 

replace the reference to ‘‘The Depository 

Trust Corporation’’ with ‘‘The 

Depository Trust & Clearing 

Corporation.’’ FICC is proposing this 

change because the reference to ‘‘The 

Depository Trust Corporation’’ is an 

error. 

FICC is also proposing to amend 

Article III (EPN Users) of the EPN Rules 

to set forth MBSD’s existing practices. 

Specifically, FICC is proposing to 

include an EPN User’s ongoing 

obligation to notify FICC if such EPN 

User no longer complies with the 

requirements for admission to 

membership in the EPN Rules (i.e., as 

set forth in Secs. 2 (Approval of 

Applicants) and 3 (Agreements of EPN 

Users) of EPN Rule 1 (Requirements 

Applicable to EPN Users) of Article III 

(EPN Users)). In addition, FICC is 

proposing to amend Article III (EPN 

Users) to define specific circumstances 

where FICC would undertake action to 

determine the status of an EPN User and 

its continued access to the EPN system. 

The proposed change would also state 

that FICC may request that an EPN User 

provide written assurances if FICC 

believes such EPN User may fail to 

comply with the EPN Rules. The 

proposed changes to Article III (EPN 

Users) would necessitate a new defined 

term in Article I (Definitions and 

General Provisions) of the EPN Rules. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency 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 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

FICC is proposing to correct the EPN 

Rules by amending several references in 

the section of the EPN Rules entitled 

‘‘FICC Mortgage-Backed Securities 

Division (‘‘MBSD’’) EPN Schedule of 

Charges.’’ Specifically, FICC is 

proposing to replace the references to 

‘‘FICC’’ with ‘‘the Corporation.’’ FICC is 

proposing this change because ‘‘FICC’’ 

is not a term that is defined in the EPN 

Rules. In addition, FICC is proposing to 

replace the reference to ‘‘The Depository 

Trust Corporation’’ with ‘‘The 

Depository Trust & Clearing 

Corporation.’’ FICC is proposing this 

change because the reference to ‘‘The 

Depository Trust Corporation’’ is an 

error. 

FICC is also proposing to amend 

Article III (EPN Users) of the EPN Rules 

to set forth MBSD’s existing practices. 

Specifically, FICC is proposing to 

include an EPN User’s ongoing 

obligation to notify FICC if such EPN 

User no longer complies with the 

requirements for admission to 

membership in the EPN Rules (i.e., as 

set forth in Secs. 2 (Approval of 

Applicants) and 3 (Agreements of EPN 

Users) of EPN Rule 1 (Requirements 

Applicable to EPN Users) of Article III 

(EPN Users)). In addition, FICC is 

proposing to amend Article III (EPN 

Users) to define specific circumstances 

where FICC would undertake action to 

determine the status of an EPN User and 

its continued access to the EPN system. 

The proposed change would also state 

that FICC may request that an EPN User 

provide written assurances if FICC 

believes such EPN User may fail to 

comply with the EPN Rules. The 

proposed changes to Article III (EPN 

Users) would necessitate a new defined 

term in Article I (Definitions and 

General Provisions) of the EPN Rules. 

The proposed changes are described 

below. 

1. MBSD’s EPN Service 

MBSD’s electronic pool notification 

service (referred to in the EPN Rules as 

the ‘‘EPN Service’’) enables users to 

reduce risk and streamline their 

operations by providing an automated 

manner for market participants that 

have an obligation to deliver pools 

(‘‘pool sellers’’) to transmit pool 

information efficiently and reliably to 

their counterparties (‘‘pool buyers’’) in 

real time. Market participants that wish 

to utilize the EPN Service are required 

to submit an application to MBSD. The 

application process and the use of the 

EPN Service are governed by the EPN 

Rules.4 MBSD’s Clearing Members are 

required to be EPN Users; however, one 

can be an EPN User and not a Clearing 

Member.5


sradovich on DSK3GMQ082PROD with NOTICES