FR 2020-29025

The document from the Federal Register discusses a proposed rule change by NYSE Arca, Inc., which involves shifting the calculation and publication time of the Wilshire Gold Index from 5:00 p.m. to 7:00 p.m. Eastern Time (E.T.). This change is driven by contractual licensing restrictions, suggesting that the need to delay the publication is rooted in external agreements. The Securities and Exchange Commission (SEC) has already permitted this rule change to take effect immediately as it is deemed not to impact investor protection or introduce significant regulatory issues.

General Summary

The rule change proposed by NYSE Arca specifically addresses the timing of the publication for the Wilshire Gold Index related to shares of the Wilshire wShares Enhanced Gold Trust. This adjustment is accommodated to comply with certain licensing agreements and effectively pushes the time for publishing from 5:00 p.m. E.T. to 7:00 p.m. E.T. This appears to be a minor logistical adjustment, intended to respect existing contractual commitments, and it is not expected to disrupt the trading practices or timings in a way that will affect investors negatively. The SEC's approval of this immediate effectiveness indicates that the update was predominantly procedural in nature.

Significant Issues or Concerns

A key concern stemming from the document is the potential confusion for investors due to an adjustment in publication timing without a deeply detailed explanation. Stakeholders may find the reasoning of "contractual licensing restrictions" somewhat lacking in transparency, possibly leading to questions about the necessity or rationale behind the agreement that mandates this change. There is also a deeper complexity in the text with various references to trading sessions and specific times, which could be difficult for some readers to follow without a consolidated schedule or simplified overview.

Impact on the Public

For the general public, the change to a later publication time might seem trivial at first glance. However, for those involved in trading, it could introduce brief periods of uncertainty or adjustment as they acclimate to this updated schedule. Overall, because the Trust's net asset value (NAV) is determined at 4:00 p.m. E.T., before the index's usual publication time, the core financial aspects of trading remain unchanged. Therefore, the public, especially those not engaging directly in trading, may not perceive significant changes or effects from this rule update.

Impact on Specific Stakeholders

For more informed or active investors, particularly those participating in late trading sessions (4:00 p.m. to 8:00 p.m. E.T.), this change prompts the need for attention during the later hours when the index will now be published. Institutional investors and authorized participants may need to slightly adjust their operations or monitoring schedules to account for the new timing without affecting their assessment of the trust's value.

Nevertheless, while it claims no competition burden, the Rule change does not provide a substantive examination of this aspect. Stakeholders may question whether there is an undue advantage granted to specific parties by such a procedural shift, as the document does not explore or dispel these potential impacts in detail.

In conclusion, while the change appears procedural with the potential for minimal disturbance, the lack of detailed analysis or justification highlighted in the document may introduce minor concern or skepticism among engaged stakeholders about transparency and intent. Overall, it points to the careful balancing act between procedural compliance and stakeholder communication that financial regulatory bodies often navigate.

In examining the document concerning the rule change proposed by NYSE Arca, Inc., it becomes evident that the financial aspects, while integral, are somewhat indirectly referenced. The document centers on a procedural adjustment related to the timing of calculations and publications of a financial index. Here's a breakdown of the financial implications:

Financial References and Allocation
The main financial reference pertains to the Securities Exchange Act Release concerning the approval and trading of shares in relation to the Wilshire Gold Index and other gold-related trusts. Specifically, the document cites the Securities Exchange Act Release Nos. 79518 (December 9, 2016), 81 FR 90876 (December 15, 2016), and 80840 (June 1, 2017), 82 FR 26534 (June 7, 2017), as previous instances where similar approvals were granted. This type of reference usually involves the authorization and regulation of trade practices, as overseen by the Securities and Exchange Commission (SEC).

The document does not discuss direct financial expenditures, appropriations, or allocations. Instead, it primarily outlines a regulatory adjustment that indirectly involves financial implications for investors in the form of share trading based on the published index value.

Relation to Identified Issues
One of the issues highlighted in the document is the potential confusion and lack of clarity about why the timing shift from 5:00 p.m. to 7:00 p.m. is implemented, particularly how it affects shareholders or investor protection. The financial implication here is that investors rely on timely and precise publication times for the index values to make informed decisions about their investments. The indirect mention of licensing restrictions as the reason for the timing adjustment is crucial because it suggests an underlying financial agreement or limitation that impacts when data can be shared.

In this context, the movement from 5:00 p.m. to 7:00 p.m. affects how investors assess the trading value during late trading sessions, which could potentially lead to financial discrepancies if not clearly justified and communicated. However, while the document claims there is no burden on competition, financial implications concerning the level of information available to all market participants still exist and could be contested if perceived as creating an advantage for certain investors over others.

In sum, while this document doesn't directly discuss financial allocations or spending, its regulatory nature has significant financial implications, especially regarding the markets' reliability and the investors' trust in their actions based on timely and accurate information dissemination.