Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 51455 

11 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. 

4 15 U.S.C. 78s(b)(1). 

5 17 CRF 240.19b–4. 

6 17 CFR 240.19b–4(f)(6)(iii). 7See, e.g., NYSE Arca Equities Rule 7.4. 

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–ISE–2017–96. 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 Web site (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 Web site 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–ISE–2017–96, and should 

be submitted on or before November 27, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24050 Filed 11–3–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81988; File No. SR–IEX– 

2017–38] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Adopt New 

Rule 6.210 Related to Ex-Dates for 

Securities Listed or Traded on the 

Exchange 

October 31, 2017. 

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 October 

27, 2017, the Investors Exchange LLC 

(‘‘IEX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. 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 

Pursuant to the provisions of Section 

19(b)(1) under the Securities Exchange 

Act of 1934 (‘‘Act’’),4 and Rule 19b–4 

thereunder,5 Investors Exchange LLC 

(‘‘IEX’’ or ‘‘Exchange’’) is filing with the 

Commission a proposed rule change to 

adopt new Rule 6.210 (Ex-Dividend or 

Ex-Right Dates) related to ex-dates for 

securities listed or traded on the 

Exchange. The Exchange has designated 

this proposal as ‘‘non-controversial’’ 

and provided the Commission with the 

notice required by Rule 19b–4(f)(6)(iii) 

under the Act.6

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.iextrading.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 these statement may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On June 17, 2016 the Commission 

granted IEX’s application for registration 

as a national securities exchange under 

Section 6 of the Act including approval 

of rules applicable to the qualification, 

listing and delisting of companies on 

the Exchange. The Exchange plans to 

begin a listing program in early 2018 

and is proposing to adopt Rule 6.210 

related to ex-dates for securities listed 

on IEX. 

IEX Rule 2.160(c)(4) requires in 

substance that an Exchange Member 

must be a Member of a registered 

clearing agency registered with the 

Commission pursuant to Section 17A of 

the Act or clear transactions executed 

on the Exchange through another 

Member that is a Member of a registered 

clearing agency. In addition, IEX Rule 

6.110(a) provides that every Exchange 

Member who is a Member of a registered 

clearing agency shall implement 

comparison and settlement procedures 

under the rules of such entity. Further, 

IEX Rule 11.250(a) provides that the 

Exchange maintains connectivity and 

access to the Universal Trade Capture of 

the National Securities Clearing 

Corporation (‘‘NSCC’’) for the 

transmission of executed transactions. 

Pursuant to these provisions, all IEX 

Members are either Members of the 

NSCC or clear transactions executed on 

the Exchange through another Member 

that is a Member of NSCC. Thus, IEX 

Members must comply with NSCC 

comparison and settlement procedures 

for all transactions executed on the 

Exchange. 

NSCC and other listing exchanges 

have rules related to securities 

settlement which specify the 

requirements and process for 

designation of so-called ‘‘ex-dates’’ in 

the event that the issuer of a security 

enters into certain types of corporate 

actions, including declaration of a 

dividend, and issuance of rights or 

warrants (i.e., the corporate action 

consideration).7 Generally, an issuer of 

securities will establish a record date to 

determine which security holders are 

entitled to the corporate action 


Pmangrum on DSK3GDR082PROD with NOTICES
51456 Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 

8The Commission recently adopted amendments 

to Rule 15c6–1(a) under the Act to shorten the 

standard, regular-way settlement cycle from T+3 to 

T+2 or the second business day after trade date. 

See, Securities Exchange Act Release No. 34–80295 

(March 22, 2016), 82 FR 15564 (March 29, 2017) 

(S7–22–16). The compliance date for the 

amendments was September 5, 2017. 

9Exceptions would be expected to occur in 

circumstances where the listed company’s 

corporate action consideration is relatively large 

(typically 25% or greater than the value of the 

security) or definitive information is not received 

by the Exchange sufficiently in advance of the 

record date, as required by IEX Rule 14.207(e)(6), 

to permit the designation of an ‘‘ex-dividend’’ or 

‘‘ex-rights’’ date in accordance with Rule 6.210. In 

such cases, the ex-date would generally be on the 

first business day which is practical given the 

relevant circumstances. 

10See, http://www.nyxdata.com/Data-Products/ 

NYSE-Corporate-Actions?rfrby=sum# describing the 

NYSE Group Corporate Actions package of reports 

sold by NYSE Group regarding corporate actions for 

all equities listed on NYSE, NYSE MKT and NYSE 

Arca. See also, http://www.nasdaqtrader.com/ 

Trader.aspx?id=dailylistpd describing the Nasdaq 

Daily List sold by Nasdaq that provides certain 

corporate action data for Nasdaq listed securities. 

See also, BAT BZX (‘‘BATS’’) Exchange corporate 

action reports available without charge at: https:// 

www.bats.com/us/equities/market_statistics/ 

corporate_action/. 

11 15 U.S.C. 78f. 

12 15 U.S.C. 78f(b)(5). 

13 15 U.S.C. 78s(b)(3)(A). 

14 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. 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6)(iii). 

consideration—security holders of 

record on the record date are entitled to 

the corporate action consideration. 

Because virtually all securities 

transactions now settle on the second 

business day after trade date (‘‘T+2’’) 

pursuant to Rule 15c6–1 under the Act,8

a purchaser of a security on the business 

day prior to the record date will not be 

the security holder of record on the 

record date. For example, if the record 

date for XYZ’s issuance of a dividend is 

December 19, 2017, a purchaser on 

December 18, 2017 will not be the 

holder or record until December 20, 

2017. The purchaser will not be the 

holder of record on December 19, 2017 

and therefore will not be entitled to the 

dividend. 

Thus, to provide certainty as to which 

security holder will receive the 

corporate action consideration it is 

necessary to establish ‘‘ex-dates’’ that 

denote the date on and after which a 

security will no longer trade with the 

corporate action consideration. Most 

listing exchanges, as well as the 

Financial Industry Regulatory Authority 

(‘‘FINRA’’) have such rules, which 

specify that generally a security will 

trade ‘‘ex’’ two [sic] business days [sic] 

prior to the record date. In the example 

above, XYZ would trade ‘‘ex-dividend’’ 

beginning on December 18, 2017. 

Accordingly, in connection with the 

planned launch of its listing program, 

the Exchange proposes to adopt Rule 

6.210 to specify when transactions in 

securities traded ‘‘regular’’ shall be ‘‘exdividend’’ or ‘‘ex-rights’’ as the case 

may be. As proposed, Rule 6.210 

provides that transactions in securities 

traded ‘‘regular’’ shall be ‘‘ex-dividend’’ 

or ‘‘ex-rights’’ as the case may be, on the 

business day preceding the record date 

fixed by the company or the date of the 

closing of transfer books, except when 

the Board of Directors rules otherwise.9

Should such record date or such closing 

of transfer books occur upon a day other 

than a business day Rule 6.210 shall 

apply for the second preceding business 

day. 

As proposed, Rule 6.210 is 

substantially identical to NYSE Arca 

Rule 7.4–E with only a minor difference 

in that proposed Rule 6.210 refers to 

‘‘securities’’ rather than ‘‘stocks’’ to be 

inclusive of listed securities that are not 

strictly speaking characterized as stocks 

(e.g., rights and warrants). 

In connection with their ‘‘ex-date’’ 

rules, other listing exchanges 

disseminate relevant information 

regarding such corporate actions by 

their listed companies to market 

participants.10 Corporate action 

information regarding IEX listed 

companies will also be posted on the 

IEX Web site for viewing and download, 

without charge. 

2. Statutory Basis 

IEX believes that the proposed rule 

change is consistent with the provisions 

of Section 6 of the Act,11 in general and 

furthers the objectives of Section 

6(b)(5) 12 of the Act in particular, in that 

it is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, 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 

Exchange believes that the proposed 

rule change supports these objectives 

because it is designed to enable the 

Exchange to provide clarity to market 

participants on applicable ‘‘ex-dates’’ 

for securities listed on IEX in 

connection with corporate actions 

involving consideration to be paid or 

distributed to security holders. 

Further, the Exchange believes that 

the proposed rule change is consistent 

with the protection of investors and the 

public interest because it provides 

authority to the Exchange to determine 

ex-dates in circumstances warranting a 

different ex-date than the business day 

preceding the record date fixed by the 

company or the date of closing of 

transfer books. 

Finally, the Exchange believes that 

the proposed rule change will serve to 

promote clarity and consistency among 

market participants thereby facilitating 

investor protection and the public 

interest. 

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, as amended. 

The proposed rule change is not 

designed to address any competitive 

issues but rather to provide for the 

appropriate determination and 

dissemination of ex-dates, to provide 

certainty as to which security holder 

will receive the corporate action 

consideration. The Exchange also 

believes that the proposed rule change 

will serve to promote clarity and 

consistency, as noted in the Statutory 

Basis section, thereby reducing burdens 

on competition and facilitating investor 

protection. 

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 

Because the 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 if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 13 and Rule 19b–4(f)(6) 

thereunder.14

A proposed rule change filed under 

Rule 19b–4(f)(6) 15 normally does not 

become operative for 30 days after the 

date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii),16 the Commission 

may designate a shorter time if such 

action is consistent with the protection 


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Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 51457 

17See NYSE Arca Rule 7.4–E. 

18For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 81591 

(September 13, 2017), 82 FR 43611 (‘‘Notice’’). 

4Amendment No. 1 to the proposed rule change 

is a partial amendment in which the Exchange 

clarifies that: (i) In the event that (a) the Adviser 

registers as a broker-dealer or becomes newly 

affiliated with a broker-dealer, or (b) any new 

adviser or a sub-adviser to the Fund is a registered 

broker-dealer or becomes affiliated with a brokerdealer, it will not just implement but also maintain 

a fire wall with respect to its relevant personnel 

and/or such broker-dealer affiliate, if applicable; 

and (ii) the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’), on behalf of the 

Exchange, will communicate as needed with, and 

may obtain information from, other markets and 

entities that are members of the Intermarket 

Surveillance Group (‘‘ISG’’) regarding trading in the 

Shares, and in exchange-traded securities and 

instruments held by the Fund (to the extent those 

exchange-traded securities and instruments are 

known through the publication of the Composition 

File and periodic public disclosures of the Fund’s 

portfolio holdings), and the Exchange may obtain 

such trading information from markets and other 

entities that are members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement. Amendment No. 1 

is available at: https://www.sec.gov/comments/srnasdaq-2017-091/nasdaq2017091-2447435- 

161078.pdf. Because Amendment No. 1 to the 

proposed rule change does not materially alter the 

substance of the proposed rule change or raise 

unique or novel regulatory issues, Amendment No. 

1 is not subject to notice and comment. 

5Amendment No. 2 to the proposed rule change 

is a partial amendment in which the Exchange 

clarifies that the name of the Fund will be Calvert 

Ultra-Short Duration Income NextShares. 

Amendment No. 2 is available at: https://

www.sec.gov/comments/sr-nasdaq-2017-091/ 

nasdaq2017091-2656932-161387.pdf. Because 

Amendment No. 2 to the proposed rule change does 

not materially alter the substance of the proposed 

rule change or raise unique or novel regulatory 

issues, Amendment No. 2 is not subject to notice 

and comment. 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay. The 

Commission believes that waiver of the 

operative delay is consistent with the 

protection of investors and the public 

interest because the Exchange’s 

proposed rule change is substantially 

similar to a provision to another selfregulatory organization’s rules,17 and 

the Exchange’s proposal does not raise 

any new or novel issues. Accordingly, 

the Commission hereby waives the 30- 

day operative delay requirement and 

designates the proposed rule change as 

operative upon filing.18

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 

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– 

IEX–2017–38 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–IEX–2017–38. 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 Web site (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 Web site 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–IEX–2017–38, and should 

be submitted on or before November 27, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24048 Filed 11–3–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81987; File No. SR– 

NASDAQ–2017–091] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Order 

Granting Approval of Proposed Rule 

Change, as Modified by Amendments 

No. 1 and 2, To List and Trade Shares 

of the Calvert Ultra-Short Duration 

Income NextSharesTM Under Nasdaq 

Rule 5745 

October 31, 2017. 

I. Introduction 

On August 30, 2017, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’ or 

‘‘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 

list and trade common shares (‘‘Shares’’) 

of the Calvert Ultra-Short Duration 

Income NextSharesTM (‘‘Fund’’) under 

Nasdaq Rule 5745. The proposed rule 

change was published for comment in 

the Federal Register on September 18, 

2017.3 On September 15, 2017, the 

Exchange filed Amendment No. 1 to the 

proposed rule change.4 On October 27, 

2017, the Exchange filed Amendment 

No. 2 to the proposed rule change.5 The 

Commission received no comments on 

the proposed rule change. This order 

grants approval of the proposed rule 

change, as modified by Amendments 

No. 1 and 2. 

II. Exchange’s Description of the 

Proposed Rule Change 

The Exchange proposes to list and 

trade the Shares of the Fund under 

Nasdaq Rule 5745, which governs the 

listing and trading of Exchange-Traded 

Managed Fund Shares, as defined in 

Nasdaq Rule 5745(c)(1). The Fund is a 

series of the Calvert Management Series 

(‘‘Trust’’). The Exchange represents that 

the Trust is registered with the 

Commission as an open-end investment 

company and that it has filed a 

registration statement on Form N–1A 


Pmangrum on DSK3GDR082PROD with NOTICES