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CBOE Proposal on Continued Listing Standards

Summary

SIFMA AMG sent comments in opposition to the Order of Disapproval issued by the Division of Trading and Markets of the Securities and Exchange Commission of a proposed rule change submitted by the Cboe BZX Exchange, Inc.

AMG believes that by allowing a series of Index Fund Shares to comply with the Generic Listing Standards where either its portfolio holdings or index constituents meet the Generic Listing Standards, the Proposal would provide issuers with significant additional regulatory certainty related to a fund’s ability to continue to be listed and traded on the Exchange pursuant to the Rule 19b-4(e), while simultaneously continuing to accomplish the policy goals underlying the Generic Listing Standards.

Further, AMG believes that the Proposal is consistent with the 1934 Act, that the Exchange sufficiently justified and described all proposed changes to Rule 14.11(c) in the Proposal, that the Proposal would enhance competition among market participants, to the benefit of investors and the marketplace, and that the Commission should approve the Proposal and reverse the Division’s Disapproval.

PDF

Submitted To

SEC

Submitted By

SIFMA AMG

Related Committee(s)

  • Asset Management

Date

24

May

2019

Excerpt

Ms. Vanessa Countryman
Acting Secretary Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549

Re: File Number SR-CboeBZX-2018-044

Dear Ms. Countryman:

The Asset Management Group (the “AMG”) of the Securities Industry and Financial Markets Association (“SIFMA”) appreciates the opportunity to submit this comment letter in opposition to the Order of Disapproval (the “Disapproval”)1 issued by the Division of Trading and Markets (the “Division”) of the Securities and Exchange Commission (the “Commission”) of a proposed rule change submitted by the Cboe BZX Exchange, Inc. (the “Exchange”) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, as amended (the “1934 Act”) and Rule 19b-4 thereunder, to amend BZX Rule 14.11(c) to permit either the portfolio holdings of a series of Index Fund Shares on the index underlying a series of Index Fund Shares to satisfy the listing standards under BZX Rules 14.11(c)(3), (4), and (5) (the “Proposal”).2 Shortly after the Disapproval, the Commission agreed to review the Division’s decision, made pursuant to delegated authority, to disapprove the Proposal,3 and gave interested parties the opportunity to comment on the Disapproval.4 AMG agrees with the Exchange’s assertion in the Proposal that a series of Index Fund Shares5 should meet the quantitative requirements of Rules 14.11(c)(3), (4), and (5) where either the index or portfolio holdings underlying such fund meet the quantitative requirements of those Rules, and is submitting this comment letter in support of the Proposal and in opposition to the Disapproval.

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