41452 Federal Register / Vol. 82, No. 168 / Thursday, August 31, 2017 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities and Exchange Act Release No. 

74892 (May 6, 2015), 80 FR 27513 (File No. 4–657). 

See also Securities and Exchange Act Release No. 

76382 (November 6, 2015) (File No. 4–657), 80 FR 

70284 (File No. 4–657) (November 13, 2015), which 

extended the pilot period commencement date from 

May 6, 2015 to October 3, 2016. 

4See Securities Exchange Act Release No. 81078 

(July 5, 2017), 82 FR 32026 (‘‘Notice’’). 

5 IEX Rule 11.151 requires market makers for each 

stock in which they are registered to continuously 

maintain a two-sided quotation within a designated 

percentage of the National Best Bid (‘‘NBB’’) and 

National Best Offer (‘‘NBO’’). 

6 17 CFR 240.15c3–5. 

7See Notice, supra note 4, at 32027. See also 17 

CFR 242.200 through 204 (Regulation SHO). 

8See Notice, supra note 4, at 32027. 

9See id. 

declaring that it has ceased to be an 

investment company. Applicant has 

never made a public offering of its 

securities and does not propose to make 

a public offering or engage in business 

of any kind. 

Filing Date: The application was filed 

on August 3, 2017. 

Applicant’s Address: 200 West Street, 

New York, New York 10282. 

HSBC Advisor Funds Trust [File No. 

811–07583] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. Each series of 

applicant has transferred its assets to a 

corresponding series of HSBC Funds 

and, on June 24, 2016, made a final 

distribution to its shareholders based on 

net asset value. Expenses of $15,173 

incurred in connection with the 

reorganization were paid by the 

applicant and the applicant’s 

investment adviser. 

Filing Dates: The application was 

filed on August 4, 2017, and amended 

on August 18, 2017. 

Applicant’s Address: 4400 Easton 

Commons, Suite 200, Columbus, Ohio 

43219–3035. 

HSBC Portfolios [File No. 811–08928] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. Each series of 

applicant has transferred its assets to a 

corresponding series of HSBC Funds 

and, on June 24, 2016, made a final 

distribution to its shareholders based on 

net asset value. Expenses of $2,463 

incurred in connection with the 

reorganization were paid by the 

applicant and the applicant’s 

investment adviser. 

Filing Dates: The application was 

filed on August 4, 2017, and amended 

on August 18, 2017. 

Applicant’s Address: 4400 Easton 

Commons, Suite 200, Columbus, Ohio 

43219–3035. 

Kalmar Pooled Investment Trust [File 

No. 811–07853] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. On June 23, 2017, 

applicant made a liquidating 

distribution to its shareholders, based 

on net asset value. Expenses of $200,000 

incurred in connection with the 

liquidation were paid by the applicant. 

Filing Date: The application was filed 

on August 18, 2017. 

Applicant’s Address: Barley Mill 

House, 3701 Kennett Pike, Wilmington, 

Delaware 19807. 

JPMorgan China Region Fund, Inc. [File 

No. 811–06686] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. On July 14, 2017, 

applicant made a liquidating 

distribution to its shareholders, based 

on net asset value. Applicant has 62 

remaining shareholders, and each is 

entitled to a pro rata share of the assets, 

if any, remaining after the winding up 

of applicant’s affairs. Applicant’s 

remaining assets were transferred to a 

liquidating trust in which shareholders 

have a pro rata beneficial interest. 

Expenses of $192,043 incurred in 

connection with the liquidation were 

paid by the applicant. 

Filing Date: The application was filed 

on August 18, 2017. 

Applicant’s Address: 1 Beacon Street, 

18th Floor, Boston, Massachusetts 

02108. 

Touchstone Investment Trust [File No. 

811–02538] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. Each series of 

applicant has transferred its assets to a 

corresponding series of Touchstone 

Funds Group Trust and, on January 27, 

2017, made a final distribution to its 

shareholders based on net asset value. 

Expenses of $51,370 incurred in 

connection with the reorganization were 

paid by the applicant’s investment 

adviser. 

Filing Dates: The application was 

filed on August 9, 2017, and amended 

on August 23, 2017. 

Applicant’s Address: 303 Broadway, 

Suite 1100, Cincinnati, Ohio 45202. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–18453 Filed 8–30–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81482; File No. SR–IEX– 

2017–22] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Order 

Approving a Proposed Rule Change To 

Introduce a New Market Maker Peg 

Order 

August 25, 2017. 

I. Introduction 

On June 30, 2017, the Investors 

Exchange LLC (‘‘IEX’’ or the 

‘‘Exchange’’) 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 

(i) introduce a new Market Maker Peg 

Order; (ii) amend IEX Rule 11.510(c) to 

specify connectivity within the 

Exchange System when repricing a 

Market Maker Peg Order; and (iii) 

amend IEX Rule 11.340(d) to describe 

how Market Maker Peg Orders will be 

priced in order to comply with the Plan 

to Implement a Tick Size Pilot Program 

(‘‘Tick Pilot Plan’’).3 The proposed rule 

change was published for comment in 

the Federal Register on July 11, 2017.4

The Commission received no comments 

on the proposed rule change. This order 

approves the proposed rule change. 

II. Description of the Proposed Rule 

Change 

The Exchange proposes to introduce a 

new Market Maker Peg Order that the 

Exchange states is designed to promote 

compliance by market makers with the 

continuous quoting and pricing 

obligations of IEX Rule 11.151 (Market 

Maker Obligations),5 in a manner 

consistent with the requirements under 

Rule 15c3–5 of the Act (‘‘Market Access 

Rule’’) 6 and Regulation SHO.7 The 

Exchange states that ‘‘this order-based 

approach would provide an effective 

compliance tool to facilitate market 

makers compliance with the 

requirements of the Market Access Rule 

and Regulation SHO while also 

providing quotation adjusting 

functionality to its market makers.’’ 8

IEX also states that market makers will 

have control of order origination, as 

required by the Market Access Rule, and 

retain the ability to make marking and 

locate determinations prior to order 

entry, as required by Regulation SHO.9

As proposed, the Market Maker Peg 

Order will be a one-sided limit order 


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Federal Register / Vol. 82, No. 168 / Thursday, August 31, 2017 / Notices 41453 

10See Rule 11.190(a)(3). 

11See IEX Rule 11.150. 

12The term ‘‘System’’ is defined in IEX Rule 

1.160(nn). 

13The Market Maker Peg Order is one-sided, and 

thus a market maker seeking to use Market Maker 

Peg Orders as a backstop to help facilitate 

compliance with the Exchange’s continuous twosided quotation requirements set forth in IEX Rule 

11.151 would need to submit both a bid and an 

offer using the order type. 

14The term ‘‘Regular Market Session’’ is defined 

in IEX Rule 1.160(gg). 

15According to the Exchange, a limit price 

entered on a Market Maker Peg Order is designed 

to allow a market maker to specify a price at which 

the initial pricing and any subsequent repricing of 

the order to the Designated Percentage will be 

constrained. See Notice, supra note 4, at 32028. 

16The term ‘‘POP’’ is defined in IEX Rule 

11.510(a). 

17See 11.510(b)(1) and (2), respectively, which 

define the ‘‘Inbound POP Latency’’ as an equivalent 

350 microseconds of latency from the Exchangeprovided network interface at the IEX POP to the 

System at the primary data center; and ‘‘Outbound 

POP Latency’’ as an equivalent 350 microseconds 

of latency from the System at the primary data 

center to the Exchange-provided network interface 

at the IEX POP. 

18The Exchange states that the same ‘‘additional 

POP’’ that is used to implement an equivalent 350 

microseconds of latency to all routable orders sent 

by the System to the Order Book pursuant to Rule 

11.510(c)(1) will be used to implement such delay 

to all modified order instructions for Market Maker 

Peg Orders pursuant to proposed Rule 

11.190(b)(13). See Notice, supra note 4, at 32028 fn 

19. 

19See Notice, supra note 4, at 32028. For 

additional details concerning IEX’s approach to 

subject all inbound and outbound communications 

related to the repricing of Market Maker Peg Orders 

to POP latency, see Notice, supra note 4, at 32028– 

29. 

20The term ‘‘Pilot Security’’ has the meaning 

specified in the Tick Pilot Plan. 

21The Exchange states that if the rounding 

methodology results in a Market Maker Peg Order 

being priced to a price below $0.05, the order will 

be cancelled back to the market maker that entered 

the order. See Notice, supra note 4, at 32028. 

22See id. 

that, similar to other peg orders 

available to market participants on the 

Exchange,10 will be tied or ‘‘pegged’’ to 

a certain price. Unlike other peg orders 

on the Exchange, however, it will be 

distinguishable in that it will always be 

displayed. Use of the Market Maker Peg 

Order will be limited to the Exchange’s 

registered market makers.11 Market 

Maker Peg Orders will have their price 

automatically set and adjusted by the 

System,12 both upon entry and any time 

thereafter, in order to comply with the 

Exchange’s rules regarding market 

maker quoting and pricing obligations.13

Specifically, upon entry or at the 

beginning of the Regular Market 

Session,14 as applicable, the entered bid 

or offer will be automatically priced by 

the System at the Designated Percentage 

(as defined in IEX Rule 11.151(a)(6)) 

away from the then current NBB or 

NBO, as applicable, or if there is no 

NBB or NBO, at the Designated 

Percentage away from the last reported 

sale from the responsible single plan 

processor in order to comply with the 

quotation requirements for market 

makers set forth in IEX Rule 11.151(a). 

Market makers will be able to submit 

Market Maker Peg Orders to the 

Exchange starting at the beginning of the 

Pre-Market Session, but the order will 

not be executable or automatically 

priced until the beginning of the Regular 

Market Session, and will expire at the 

end of the Regular Market Session. 

Upon reaching the Defined Limit (as 

defined in IEX Rule 11.151(a)(7)), the 

price of a Market Maker Peg Order will 

be adjusted by the System to the 

Designated Percentage away from the 

then current NBB or NBO, or, if there is 

no NBB or NBO, the order will, by 

default, be the Designated Percentage 

away from the last reported sale from 

the responsible single plan processor. If 

a Market Maker Peg Order bid or offer 

moves a specified number of percentage 

points away from the Designated 

Percentage towards the then current 

NBB or NBO, its price will be adjusted 

by the System to the Designated 

Percentage away from the then current 

NBB or NBO, as applicable. If there is 

no NBB or NBO, as applicable, the order 

will be adjusted by the System to the 

Designated Percentage away from the 

last reported sale from the responsible 

single plan processor. In the event that 

pricing a Market Maker Peg Order at the 

Designated Percentage away from the 

then current NBB and NBO, or, if no 

NBB or NBO, to the Designated 

Percentage away from the last reported 

sale from the responsible single plan 

processor, would result in the order 

exceeding its limit price, the order will 

be cancelled or rejected.15

If, after entry, the Market Maker Peg 

Order is priced based on the last 

reported sale from the single plan 

processor and such Market Maker Peg 

Order is established as the NBB or NBO, 

the Market Maker Peg Order will not be 

subsequently adjusted until either there 

is a new consolidated last sale or a new 

NBB or NBO is established. 

For purposes of the proposed rule, the 

Exchange will apply the Designated 

Percentage and Defined Limit as set 

forth in IEX Rules 11.151(a)(6) and (7), 

respectively, subject to the following 

exception: For all NMS stocks with a 

price less than $1 per share that are not 

included in the S&P 500® Index, Russell 

1000® Index, and a pilot list of 

Exchange Traded Products, the 

Exchange will use the Designated 

Percentage and Defined Limit applicable 

to NMS stocks equal to or greater than 

$1 per share that are not included in the 

S&P 500® Index, Russell 1000® Index, 

and a pilot list of Exchange Traded 

Products. 

Market Maker Peg Orders will not be 

eligible for routing pursuant to IEX Rule 

11.230(b) and are always displayed on 

the Exchange. Notwithstanding the 

availability of Market Maker Peg Order 

functionality, a market maker will 

remain responsible for entering, 

monitoring, and resubmitting, as 

applicable, quotations that meet the 

requirements of IEX Rule 11.151. A new 

timestamp will be created for the order 

each time that it is automatically 

adjusted in accordance with the 

proposed rule. 

The Exchange states that the System 

will be available for entry, modification, 

and cancellation of Market Maker Peg 

Orders only via the POP 16 pursuant to 

IEX Rule 11.510(b), and thus will be 

subject to the Inbound and Outbound 

POP Latency upon entry, accordingly.17

In addition, the Exchange proposes to 

amend IEX Rule 11.510(c) (System 

Connectivity) to provide that each time 

a Market Maker Peg Order is 

automatically adjusted by the System in 

accordance with proposed IEX Rule 

11.190(b)(13), all inbound and outbound 

communications related to the modified 

order instruction will traverse an 

additional POP between the Market 

Maker Peg Order repricing logic and the 

Order Book, which is subject to an 

equivalent 350 microseconds of 

latency.18 The Exchange states that this 

approach is designed so that a market 

maker using a Market Maker Peg Order 

will be in the same position as a market 

maker updating its own quote through 

the POP.19

Finally, the Exchange proposes to 

amend IEX Rule 11.340 (Compliance 

with Regulation NMS Plan to 

Implement a Tick Size Pilot) to specify 

that if, pursuant to proposed IEX Rule 

11.190(b)(13), a Market Maker Peg Order 

in a Pilot Security 20 will be priced at an 

increment other than $0.05, the System 

will round such order to buy (sell) up 

(down) to the nearest permissible 

increment.21 IEX states that this 

approach is designed to ensure that 

Market Maker Peg Orders for Pilot 

Securities are appropriately priced in 

$0.05 increments by rounding such 

orders to the nearest permissible 

increment that is also compliant with 

the minimum market maker quoting 

obligations set forth in IEX Rule 

11.151.22

In its proposal, the Exchange noted its 

intention to implement the proposed 


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41454 Federal Register / Vol. 82, No. 168 / Thursday, August 31, 2017 / Notices 

23See id. at 32029. 

24 In approving this rule change, the Commission 

has considered the rule’s impact on efficiency, 

competition, and capital formation. See 15 U.S.C. 

78c(f). 

25 15 U.S.C. 78f(b)(5). 

26 15 U.S.C. 78k–1(a)(1). 

27 17 CFR 242.608. 

28The Commission notes that in this regard IEX’s 

proposal is substantially similar to Bats BZX 

Exchange, Inc. (‘‘Bats’’) Rule 11.27(c)(5). 

29See, e.g., Bats Rule 11.9(c)(16), Nasdaq Stock 

Market LLC Rule 4702(b)(7), and Bats EDGX 

Exchange, Inc. Rule 11.8(e). 

30 15 U.S.C. 78s(b)(2). 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

changes during the third quarter of 

2017.23

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder that are applicable to a 

national securities exchange.24

Specifically, the Commission finds that 

the proposed rule change is consistent 

with Section 6(b)(5) of the Act,25 which 

requires, among other things, that the 

rules of a national securities 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 

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. The Commission finds 

that the proposed rule change also is 

designed to support the principles of 

Section 11A(a)(1) 26 of the Act in that it 

seeks to assure fair competition among 

brokers and dealers and among 

exchange markets. 

The Commission finds that the 

Exchange’s proposal is consistent with 

the Act because it provides an optional 

tool that market makers may use as a 

backstop to help maintain a continuous 

quote in satisfaction of the Exchange’s 

minimum continuous quoting 

requirements, which may assist in the 

maintenance of fair and orderly markets. 

The Commission notes, however, that 

notwithstanding the availability of the 

Market Maker Peg Order functionality, 

the market maker remains responsible 

for meeting its obligations under IEX 

Rule 11.151, including entering, 

monitoring, and re-submitting, as 

applicable, compliant quotations. At the 

same time, the Commission finds that 

the proposal is reasonably designed to 

assist market makers in complying with 

the regulatory requirements of the 

Market Access Rule and Regulation 

SHO. The Commission notes, however, 

the Market Maker Peg Order does not by 

itself ensure that the market maker is 

satisfying the requirements of the 

Market Access Rule or Regulation SHO, 

including the satisfaction of the locate 

requirements of Rule 203(b)(1) of the 

Act or any exception thereto. 

The Commission believes that the 

Exchange’s proposal to subject all 

inbound and outbound communications 

related to Market Maker Peg Orders, 

including the automatic repricing of 

such orders, to POP latency is consistent 

with the Act. In particular, this 

treatment of the Market Maker Peg 

Order places a market maker using this 

order type in the same position as 

another market maker placing and 

updating its own quote directly without 

using the Market Maker Peg Order 

type—both will be subject to the POP 

and experience the same latency. In 

addition, this approach is consistent 

with the treatment of other displayed 

orders on the Exchange, all of which are 

subject to the POP latency. 

Further, the Commission believes that 

the Exchange’s proposal to specify how 

Market Maker Peg Orders will be priced 

in order to comply with the Tick Pilot 

Plan is consistent with the Act and Rule 

608 of Regulation NMS 27 because it 

implements the Tick Pilot Plan and 

conforms Exchange rules to those 

requirements.28

Finally, the Commission notes that 

other national securities exchanges offer 

similar order types to the Exchange’s 

proposed Market Maker Peg Order,29

and the Commission received no 

comments on the Exchange’s proposed 

rule change. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,30 that the 

proposed rule change (SR–IEX–2017– 

22), be and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–18455 Filed 8–30–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81486; File No. SR–ICC– 

2017–012] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change Relating to 

ICC’s Liquidity Risk Management 

Framework and ICC’s Stress Testing 

Framework 

August 25, 2017. 

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

Securities Exchange Act of 1934 1 and 

Rule 19b–4,2 notice is hereby given that 

on August 22, 2017, ICE Clear Credit 

LLC (‘‘ICC’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I, II, and III 

below, which Items have been primarily 

prepared by ICC. 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 principal purpose of the 

proposed rule change is to revise the 

ICC Liquidity Risk Management 

Framework and the ICC Stress Testing 

Framework. These revisions do not 

require any changes to the ICC Clearing 

Rules (‘‘Rules’’). 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, ICC 

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. ICC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

(a) Purpose 

ICC proposes revisions to its Stress 

Testing Framework and its Liquidity 

Risk Management Framework. 

Specifically, ICC proposes changes to 

enhance ICC’s stress testing and 

liquidity stress testing practices 

following the clearing of Single Name 

(‘‘SN’’) credit default swaps (‘‘CDS’’) 

referencing ICC Clearing Participants 


sradovich on DSK3GMQ082PROD with NOTICES