Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 51447 

25 17 CFR 240.17Ad–22(e)(21). 

26 15 U.S.C. 78s(b)(3)(A). 

27 17 CFR 240.19b–4(f)(6). 

28 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. 

Act, in particular section 17A(b)(3)(F), 

cited above. 

Rule 17Ad–22(e)(21) requires, inter 

alia, that each covered clearing agency 

establish, implement, maintain and 

enforce written policies and procedures 

reasonably designed to be efficient and 

effective in meeting the requirements of 

its participants and the markets it 

serves.25 Pursuant to the proposed rule 

change, the Rules would be updated to 

establish a framework for DTC to 

provide Acknowledgement Letters to 

Participants and Pledgees who are DCOs 

or FCMs that would allow them to meet 

their requirements under the Customer 

Property Segregation Rules, while 

utilizing the efficiency provided by DTC 

book-entry transfers, consistent with the 

requirements of Rule 17Ad–22(e)(21), 

cited above. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

DTC does not believe that the 

proposed rule change would have any 

impact, or impose any burden, on 

competition because the proposed Rule 

and its features would be available to all 

Participants and Pledgees equally on a 

non-discriminatory basis. Participants 

and Pledgees will be charged fees 

applicable to the maintenance of 

Accounts and transaction fees that are 

not different from established published 

fees. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

DTC has not solicited and does not 

intend to solicit comments regarding the 

proposed rule change. DTC has not 

received any unsolicited written 

comments from interested parties. To 

the extent DTC receives written 

comments on the proposed rule change, 

DTC will forward such comments to the 

Commission. 

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) of the 

Act 26 and Rule 19b–4(f)(6) 

thereunder.27

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. 

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– 

DTC–2017–020 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–DTC–2017–020. 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 20549–1090 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 DTC and on DTCC’s Web site 

(http://dtcc.com/legal/sec-rulefilings.aspx). 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–DTC–2017–020 and should 

be submitted on or before November 27, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.28

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24049 Filed 11–3–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81985; File No. SR– 

NYSEArca–2017–127] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Regarding Exchange 

Calculation of the Intraday Indicative 

Value for Specified Exchange-Traded 

Products 

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 

20, 2017, NYSE Arca, Inc. (‘‘Exchange’’ 

or ‘‘NYSE Arca’’) filed with the 

Securities and Exchange Commission 

the proposed rule change as described 

in Items I and II below, which Items 

have been prepared by the selfregulatory 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 

The Exchange proposes to modify 

representations made in proposed rule 

changes previously filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) regarding Exchange 

calculation of the ‘‘Intraday Indicative 

Value’’ (or comparable intra-day value) 

for specified exchange-traded products. 

The proposed rule change is available 

on the Exchange’s Web site at 

www.nyse.com, at the principal office of 


Pmangrum on DSK3GDR082PROD with NOTICES
51448 Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 

4The following Exchange rules require 

dissemination of an intraday indicative value for 

specified ETPs: Rule 5.2–E(j)(3) (Investment 

Company Units); Rule 5.2–E (j)(6) (Index-Linked 

Securities); Rule 8.100–E (Portfolio Depositary 

Receipts); Rule 8.200–E (Trust Issued Receipts); 

Rule 8.201–E (Commodity-Based Trust Shares); 

Rule 8.202–E (Currency Trust Shares); Rule 8.203– 

E (Commodity Index Trust Shares); Rule 8.204–E 

(Commodity Futures Trust Shares); Rule 8.300–E 

(Partnership Units); Rule; 8.600–E (Managed Fund 

Shares); and Rule 8.700–E (Managed Trust 

Securities). These rules use different terms to 

denote the intraday indicative value: Intraday 

Indicative Value (Rules 5.2–E (j)(3), 8.100–E and 

8.700–E); Indicative Value (Rule 8.200–E); 

Indicative Trust Value (Rules 8.201–E; 8.202–E and 

8.203–E); Indicative Partnership Value (Rule 8.300– 

E); and Portfolio Indicative Value (Rule 8.600–E). 

As used herein, the term ‘‘IIV’’ encompasses the 

terms Intraday Indicative Value, Indicative Value, 

Indicative Trust Value, Indicative Partnership 

Value, and Portfolio Indicative Value, as referenced 

in Exchange rules. In addition, such term 

encompasses the term ‘‘Indicative Optimized 

Portfolio Value’’ (or ‘‘IOPV’’) as used in certain 

‘‘Exhibit 3 Filings’’ (as defined below). 

5The Exchange’s proposed rule changes relating 

to ETP listings generally have stated that the IIV 

would be calculated and widely disseminated by, 

or widely disseminated by, an independent third 

party, one or more major market data vendors, a 

third party market data provider, or similar entities 

other than the Exchange. See, e.g., Securities 

Exchange Act Release No. 68667 (January 16, 2013), 

78 FR 4955 (January 23, 2013) (SR–NYSEArca– 

2012–109) (Order Granting Approval of Proposed 

Rule Change Relating to the Listing and Trading of 

Shares of the U.S. Equity High Volatility Put Write 

Index Fund under NYSE Arca Equities Rule 

5.2(j)(3)). In addition, the Exchange rules referenced 

supra at note 4 do not specify that the Exchange 

will calculate the IIV for any ETP. 

6Currently, it is the Exchange’s understanding 

that several major market data vendors display and/ 

or make widely available IIVs taken from the 

Consolidated Tape Association or other data feeds. 

7 15 U.S.C. 78f(b)(5). 

8See note 5, supra. 

9See note 4, supra. 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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, 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 

Exchange rules relating to listing of 

certain exchange-traded products 

(‘‘ETPs’’) require that an ‘‘Intraday 

Indicative Value’’ (‘‘IIV’’) or comparable 

intra-day value be disseminated at least 

every 15 seconds during the Exchange’s 

Core Trading Session as defined in Rule 

7.34–E (a) (normally 9:30 a.m. to 4:00 

p.m. Eastern Time).4 The Commission 

has approved a number of NYSE Arca 

proposed rule changes relating to NYSE 

Arca’s listing and trading of shares of 

ETPs in which the Exchange stated that 

the Exchange will calculate the IIV for 

those ETPs. These proposed rule 

changes are listed in Exhibit 3 to this 

filing (‘‘Exhibit 3 Filings’’). 

The Exchange proposes to revise the 

representations made in the Exhibit 3 

Filings that state that the Exchange will 

calculate the IIV for a particular ETP to 

state that the IIV will be calculated and 

widely disseminated by one or more 

major market data vendors. This 

proposed change is consistent with 

representations the Exchange has made 

in other filing [sic] relating to ETP 

listings.5 The Exchange proposes this 

change so that ETP issuers, who may 

select and change the IIV calculation 

agent for a particular ETP, may choose 

to use a calculation agent other than the 

Exchange, provided that such IIV is 

calculated and widely disseminated by 

one or more major market data 

vendors.6 All other representations in 

the Exhibit 3 Filings regarding the IIV 

remain the same and are not changing 

as a result of this proposed rule change. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under section 6(b)(5) 7 that an exchange 

have rules that are 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, in general, to protect investors and 

the public interest. 

The proposed rule change is designed 

to perfect the mechanism of a free and 

open market and, in general, to protect 

investors and the public interest. The 

Exchange’s proposal to revise the 

representations made in the Exhibit 3 

Filings that state that the Exchange will 

calculate the IIV for a particular ETP to 

state that the IIV will be calculated and 

widely disseminated by one or more 

major market data vendors is consistent 

with representations the Exchange has 

made in other filings relating to ETP 

listings.8 The Exchange proposes this 

change so that ETP issuers, who may 

select and change the IIV calculation 

agent for a particular ETP, may choose 

to use a calculation agent other than the 

Exchange, provided that such IIV is 

calculated and widely disseminated by 

one or more major market data vendors. 

While the Exchange rules referenced in 

note 4 above require that an IIV be 

disseminated at least every 15 seconds 

during the Exchange’s Core Trading 

Session, such rules do not specify that 

the Exchange will calculate the IIV for 

any ETP.9

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 competition that is not 

necessary or appropriate in furtherance 

of the purpose [sic] of the Act. The 

Exchange believes the proposed rule 

change will enhance competition among 

ETP issuers by providing each issuer 

with additional flexibility to change its 

IIV calculation agent promptly based on 

business needs. 

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. 

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, the 

proposed rule change has become 

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

of the Act 10 and Rule 19b–4(f)(6) 

thereunder.11

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiver of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because it will allow ETP issuers for the 

Exhibit 3 Filings to choose to use a 

calculation agent other than the 

Exchange, provided that such IIV is 

calculated and widely disseminated by 


Pmangrum on DSK3GDR082PROD with NOTICES
Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 51449 

12For purposes only of waiving the 30-day 

operative delay, the Commission 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 17 CFR 240.13h–1. 

2See Securities Exchange Act Release No. 64976 

(July 27, 2011), 76 FR 46960 (August 3, 2011) 

(‘‘Large Trader Adopting Release’’). The effective 

date of Rule 13h–1 was October 3, 2011. See also 

Exchange Act Rule 600(b)(46) of Regulation NMS 

(defining ‘‘NMS security’’). 

3See Securities Exchange Act Release Nos. 66839 

(April 20, 2012), 77 FR 25007 (April 26, 2012) 

(‘‘Phase One Order’’) (establishing Phase One); 

69281 (April 3, 2013), 78 FR 20960 (April 8, 2013) 

(‘‘Phase Two Extension Order’’) (extending the 

compliance date for Phase Two to November 1, 

2013); 70150 (August 8, 2013), 78 FR 49556 (August 

14, 2013) (‘‘Phases Two and Three Order’’) 

(modifying Phase Two and providing for Phase 

Three); and 76322 (October 30, 2015), 80 FR 68590 

(November 5, 2015) (‘‘Phase Three Extension 

Order’’) (extension of compliance date for Phase 

Three until November 1, 2017). 

4Rule 13h–1(a)(9) defines ‘‘Unidentified Large 

Trader’’ as ‘‘each person who has not complied 

with the [large trader identification requirements of 

the Rule] that a registered broker-dealer knows or 

has reason to know is a large trader.’’ The Rule 

provides that, for purposes of determining whether 

a registered broker-dealer has reason to know that 

a person is a large trader, ‘‘a registered broker-dealer 

need take into account only transactions in NMS 

securities effected by or through such brokerdealer.’’ Rule 13h–1(a)(9). 

5See Phase Three Extension Order, supra note 3 

(extending the Phase Three compliance date until 

November 1, 2017). See also Phases Two and Three 

Order, supra note 3, 78 FR at 49560. 

6See Undated letter from William H. Herbert, 

Managing Director, FIF, to Heather Seidel, Acting 

Director, Division of Trading and Markets 

(‘‘Division’’), Commission (‘‘FIF I’’), available at 

https://www.sec.gov/comments/s7-10-10/s71010- 

1558852-131535.pdf; Letter from Thomas F. Price, 

Managing Director, Operations, Technology, and 

Continued 

one or more major market data vendors, 

without undue delay. Therefore, the 

Commission designates the proposed 

rule change to be operative upon 

filing.12

At any time within 60 days of the 

filing of such 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. 

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– 

NYSEArca–2017–127 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–NYSEArca–2017–127. 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–NYSEArca–2017–127 and 

should be submitted on or before 

November 27, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24045 Filed 11–3–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81993] 

Order Temporarily Exempting Certain 

Broker-Dealers From Specified 

Provisions of the Recordkeeping, 

Reporting, and Monitoring 

Responsibilities of Rule 13h–1 Under 

the Securities Exchange Act of 1934 

October 31, 2017. 

I. Introduction 

On July 27, 2011, the Securities and 

Exchange Commission (‘‘Commission’’) 

adopted Rule 13h–1 (‘‘Rule 13h–1’’ or 

the ‘‘Rule’’) under the Securities 

Exchange Act of 1934 (‘‘Exchange 

Act’’) 1 to assist the Commission in both 

identifying and obtaining information 

on market participants that conduct a 

substantial amount of trading activity, 

as measured by volume or market value, 

in national market system (‘‘NMS’’) 

securities (such persons are referred to 

as ‘‘large traders’’).2 The Rule requires 

certain large traders to identify 

themselves to the Commission on Form 

13H. The Rule also requires, among 

other things, certain broker-dealers to 

maintain records of large trader 

transaction information and to report 

such information to the Commission 

upon request. Since December 1, 2011, 

persons whose trading activity reached 

or exceeded the identifying activity 

level specified in the Rule have been 

required to identify themselves to the 

Commission by filing Form 13H through 

the Commission’s EDGAR system. The 

Commission has implemented the 

broker-dealer recordkeeping, reporting, 

and monitoring requirements of the 

Rule in phases through a series of 

exemptive orders establishing certain 

delayed compliance dates.3 Currently, 

certain broker-dealers are required to 

keep records of and report to the 

Commission upon request transaction 

data for certain of their customers that 

are either a large trader or an 

Unidentified Large Trader.4 Most 

recently, the Commission provided a 

temporary exemption from specified 

provisions of the Rule for certain brokerdealers (‘‘Phase Three’’)—provisions 

which otherwise would have fully 

implemented the entirety of the 

recordkeeping and reporting 

responsibilities of Rule 13h–1 by, in 

particular, requiring the capture and 

reporting of execution time on trades of 

all large traders—until November 1, 

2017.5

The Financial Information Forum 

(‘‘FIF’’) and Securities Industry and 

Financial Markets Association 

(‘‘SIFMA,’’ and, together with FIF, the 

‘‘Industry Organizations’’) have asked 

the Commission to eliminate Phase 

Three of the Rule, which would impose 

the remaining requirements on all 

broker-dealers and all large trader 

customers.6 Alternatively, the Industry 


Pmangrum on DSK3GDR082PROD with NOTICES