80 FR 27207 - Self-Regulatory Organizations; The NASDAQ Stock Market, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Listing and Trading of the Shares of the First Trust Low Beta Income ETF, a Series of First Trust Exchange-Traded Fund VI

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 91 (May 12, 2015)

Page Range		27207-27210
FR Document		2015-11371
Federal Register, Volume 80 Issue 91 (Tuesday, May 12, 2015)
[Federal Register Volume 80, Number 91 (Tuesday, May 12, 2015)]
[Notices]
[Pages 27207-27210]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-11371]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74880; File No. SR-NASDAQ-2015-045]


Self-Regulatory Organizations; The NASDAQ Stock Market, LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Listing and Trading of the Shares of the First Trust 
Low Beta Income ETF, a Series of First Trust Exchange-Traded Fund VI

May 6, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on April 24, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in in Items I, 
II, and III below, which Items have been prepared by Nasdaq. The 
Exchange has designated the proposed rule change as constituting a non-
controversial rule change under Rule 19b-4(f)(6) under the Act,\3\ 
which renders the proposal effective upon filing with the Commission. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes a rule change with respect to the First Trust Low 
Beta Income ETF (the ``Fund'') of First Trust Exchange-Traded Fund VI 
(the ``Trust''), the shares of which have been approved by the 
Commission for listing and trading under NASDAQ Rule 5735 (``Managed 
Fund Shares''). The shares of the Fund are collectively referred to 
herein as the ``Shares.''
    The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com/, at Nasdaq's principal office, 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, Nasdaq included statements 
concerning the purpose of, and basis for, the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. Nasdaq 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to reflect changes to the means of achieving 
the Fund's investment objective. The Commission has approved the 
listing and trading of Shares under NASDAQ Rule 5735, which governs the 
listing and trading of Managed Fund Shares on

[[Page 27208]]

the Exchange.\4\ The Exchange believes the proposed rule change 
reflects no significant issues not previously addressed in the Prior 
Release. The Fund is an actively managed exchange-traded fund 
(``ETF''). The Shares are offered by the Trust, which was organized as 
a Massachusetts business trust on June 4, 2012. The Trust, which is 
registered with the Commission as an investment company, has filed a 
registration statement on Form N-1A (``Registration Statement'') 
relating to the Fund with the Commission.\5\ First Trust Advisors L.P. 
(``First Trust Advisors'') is the investment adviser (``Adviser'') to 
the Fund.
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    \4\ The Commission approved NASDAQ Rule 5735 (formerly NASDAQ 
Rule 4420(o)) in Securities Exchange Act Release No. 57962 (June 13, 
2008), 73 FR 35175 (June 20, 2008) (SR-NASDAQ-2008-039). The 
Commission previously approved the listing and trading of the Shares 
of the Fund. See Securities Exchange Act Release No. 70828 (November 
7, 2013), 78 FR 68490 (November 14, 2013) (SR-NASDAQ-2013-121) 
(``Prior Order''). See also Securities Exchange Act Release No. 
70459 (September 20, 2013), 78 FR 59394 (September 26, 2013) (SR-
NASDAQ-2013-121) (``Prior Notice,'' and together with the Prior 
Order, the ``Prior Release''). The Fund and the Shares are currently 
in compliance with the requirements set forth in the Prior Release.
    \5\ See Post-Effective Amendment No. 51 to Registration 
Statement on Form N-1A for the Trust, dated January 21, 2015 (File 
Nos. 333-182308 and 811-22717). The descriptions of the Shares and 
the Fund contained herein are based, in part, on information in the 
Registration Statement. In addition, the Commission has issued an 
order, upon which the Trust may rely, granting certain exemptive 
relief under the Investment Company Act of 1940 (the ``1940 Act''). 
See Investment Company Act Release No. 28468 (October 27, 2008) 
(File No. 812-13477).
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    The Prior Release provided that the Fund's investment objective 
would be to provide current income and that the Fund would pursue its 
objective by investing in large-cap U.S. exchange-traded equity 
securities and by utilizing an ``option strategy'' consisting of buying 
U.S. exchange-traded put options on the Standard & Poor's 500 Index 
(the ``Index'') and writing (selling) U.S. exchange-traded covered call 
options on the Index.
    The Exchange now proposes three modifications to the description of 
the measures utilized by the Adviser to implement the Fund's investment 
objective. As described in further detail below, these pertain to the 
following: (1) The Fund's investment primarily in large-cap U.S. 
exchange-traded equity securities; (2) the permissible terms to 
expiration for the U.S. exchange-traded covered call options written 
(sold) by the Fund; and (3) the permissible terms to expiration for the 
U.S. exchange-traded put options purchased by the Fund. These 
modifications are being proposed to enhance the Adviser's flexibility 
in pursuing the Fund's investment objective. However, the equity 
securities in which the Fund would invest and the options which the 
Fund would buy and write would continue to be limited to U.S. exchange-
traded securities and options, respectively. The Adviser represents 
that there would be no change to the Fund's investment objective. 
Except as provided herein, all other facts presented and 
representations made in the Prior Release would remain unchanged. The 
Fund and the Shares would continue to comply with all initial and 
continued listing requirements under NASDAQ Rule 5735.
The Fund's Investments Primarily in Large-Cap U.S. Exchange-Traded 
Equity Securities
    The Prior Release stated that in pursuing its investment objective, 
under normal market conditions,\6\ the Fund would invest primarily in 
large-cap U.S. exchange-traded equity securities. The Exchange proposes 
to amend this statement in the Prior Release by deleting the term 
``large-cap.'' \7\ Therefore, going forward, in pursuing its investment 
objective, under normal market conditions, while the Fund would 
continue to invest primarily in U.S. exchange-traded equity securities, 
it would not be required to invest primarily in ``large-cap'' U.S. 
exchange-traded equity securities. The Adviser believes that the 
ability to invest primarily in U.S. exchange-traded equity securities 
of any market capitalization would, by expanding the range of potential 
investments, provide it with additional flexibility to pursue, and 
enhance its ability to achieve, the Fund's investment objective.
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    \6\ According to the Prior Release, the term ``under normal 
market conditions'' as used therein included, but was not limited 
to, the absence of adverse market, economic, political or other 
conditions, including extreme volatility or trading halts in the 
securities markets or the financial markets generally; operational 
issues causing dissemination of inaccurate market information; or 
force majeure type events such as systems failure, natural or man-
made disaster, act of God, armed conflict, act of terrorism, riot or 
labor disruption or any similar intervening circumstance. The Prior 
Release also provided that in periods of extreme market disturbance, 
the Fund may take temporary defensive positions, by overweighting 
its portfolio in cash/cash-like instruments; however, to the extent 
possible, the Adviser would continue to seek to achieve the Fund's 
investment objective.
    \7\ To the extent necessary to make them consistent, additional 
statements and representations included in the Prior Release would 
also be deemed to be similarly modified.
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Permissible Terms to Expiration for Call Options
    As provided in the Prior Release, a component of the option portion 
of the Fund's portfolio consists of U.S. exchange-traded covered calls 
or covered call spreads on the Index that are written by the Fund. The 
Prior Release provided that the call options written by the Fund would 
typically be a laddered portfolio of one-week, one-month, two-month and 
three-month call options written at-the-money to slightly out-of-the-
money. The Exchange is now proposing a change that would increase 
flexibility with respect to the permissible term for call option 
expirations. In this regard, the Exchange proposes to modify the 
foregoing to provide that, going forward, the call options written by 
the Fund would be a laddered portfolio of call options with expirations 
of less than one year, written at-the-money to slightly out-of-the-
money.
Permissible Terms to Expiration for Put Options
    As provided in the Prior Release, a component of the Fund's option 
strategy consists of U.S. exchange-traded puts on the Index that are 
bought by the Fund. The Prior Release provided that the put positions 
held by the Fund would generally average two to three months to 
expiration (calculated at the time of purchase) and consist of out-of-
the-money Index put options. The Exchange is now proposing a change 
that would increase flexibility with respect to the permissible term 
for put option expirations. In this regard, the Exchange proposes to 
modify the foregoing to provide that, going forward, the put positions 
held by the Fund would be less than one year to expiration (calculated 
at the time of purchase) and would consist of out-of-the-money Index 
put options.
Surveillance
    The Exchange represents that trading in the Shares would continue 
to be subject to the existing trading surveillances, administered by 
both NASDAQ and also the Financial Industry Regulatory Authority 
(``FINRA'') on behalf of the Exchange, which are designed to detect 
violations of Exchange rules and applicable federal securities laws.\8\ 
The Exchange represents that these procedures are adequate to properly 
monitor Exchange trading of the Shares in all trading

[[Page 27209]]

sessions and to deter and detect violations of Exchange rules and 
applicable federal securities laws.
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    \8\ FINRA surveils trading on the Exchange pursuant to a 
regulatory services agreement. The Exchange is responsible for 
FINRA's performance under this regulatory services agreement.
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    FINRA, on behalf of the Exchange, will communicate as needed 
regarding trading in the Shares, in the U.S. exchange-traded equity 
securities in which the Fund invests, and in the U.S. exchange-traded 
options which the Fund buys and writes with other markets or other 
entities that are members of the Intermarket Surveillance Group 
(``ISG'') or with which the Exchange has in place a comprehensive 
surveillance sharing agreement,\9\ and FINRA may obtain trading 
information regarding trading in the Shares and such equity securities 
and options from such markets and other entities. In addition, the 
Exchange may obtain information regarding trading in the Shares and in 
such equity securities and options from markets and other entities that 
are members of ISG or with which the Exchange has in place a 
comprehensive surveillance sharing agreement.
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    \9\ For a list of the current members of ISG, see 
www.isgportal.org.
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act \10\ in general and Section 6(b)(5) of the Act \11\ 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, in general, to protect investors and the 
public interest.
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    \10\ 15 U.S.C. 78f.
    \11\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is designed to 
prevent fraudulent and manipulative acts and practices in that the 
Shares would continue to be listed and traded on the Exchange pursuant 
to the initial and continued listing criteria in NASDAQ Rule 5735. 
Consistent with the Prior Release, the Exchange represents that trading 
in the Shares would continue be subject to the existing trading 
surveillances, administered by both NASDAQ and also FINRA on behalf of 
the Exchange, which are designed to detect violations of Exchange rules 
and applicable federal securities laws and that these procedures are 
adequate to properly monitor Exchange trading of the Shares in all 
trading sessions and to deter and detect violations of Exchange rules 
and applicable federal securities laws. In addition, the equity 
securities in which the Fund would invest and the options which the 
Fund would buy and write would continue to be limited to U.S. exchange-
traded securities and options, respectively, that trade in markets that 
are members of ISG or are parties to a comprehensive surveillance 
sharing agreement with the Exchange. The Exchange would continue to be 
able to obtain information regarding trading in the Shares and in such 
equity securities and options from markets and other entities that are 
members of ISG or with which the Exchange has in place a comprehensive 
surveillance sharing agreement.
    The proposed rule change is designed to promote just and equitable 
principles of trade and to protect investors and the public interest in 
that the Adviser represents that there is no change to the Fund's 
investment objective. The Adviser represents that the purpose of the 
proposed changes is to provide it with greater flexibility in meeting 
the Fund's investment objective by permitting: (1) The Fund to invest 
primarily in U.S. exchange-traded equity securities of any market 
capitalization; (2) the covered call options written by the Fund to be 
a laddered portfolio of call options with expirations of less than one 
year, written at-the-money to slightly out-of-the-money; and (3) the 
put positions held by the Fund to be less than one year to expiration 
(calculated at the time of purchase) and to consist of out-of-the-money 
Index put options. In addition, consistent with the Prior Release, net 
asset value (``NAV'') per Share would continue to be calculated daily 
and the NAV and Disclosed Portfolio (as defined in the Prior Release) 
would continue to be made available to all market participants at the 
same time. Further, a large amount of information would continue to be 
publicly available regarding the Fund and the Shares, thereby promoting 
market transparency. The Intraday indicative Value (as defined in the 
Prior Release), available on NASDAQ OMX Information LLC proprietary 
index data service, would continue to be updated and widely 
disseminated and broadly displayed at least every 15 seconds during the 
Regular Market Session.\12\ Moreover, on each business day, before 
commencement of trading on the Shares in the Regular Market Session on 
the Exchange, the Fund would continue to disclose on the Distributor's 
Web site the Disclosed Portfolio that will form the basis for the 
Fund's calculation of NAV at the end of the business day.
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    \12\ See Nasdaq Rule 4120(b)(4) (describing the three trading 
sessions on the Exchange: (1) Pre-Market Session from 4 a.m. to 9:30 
a.m. E.T.; (2) Regular Market Session from 9:30 a.m. to 4 p.m. or 
4:15 p.m. E.T.; and (3) Post-Market Session from 4 p.m. or 4:15 p.m. 
to 8 p.m. E.T.).
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    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. As noted above, the additional flexibility to be 
afforded to the Adviser under the proposed rule change is intended to 
enhance the Adviser's ability to meet the Fund's investment objective. 
Further, as noted above, the Exchange represents that trading in the 
Shares would continue to be subject to the existing trading 
surveillances, administered by both NASDAQ and also FINRA on behalf of 
the Exchange, which are designed to detect violations of Exchange rules 
and applicable federal securities laws. In addition, as indicated in 
the Prior Release, investors would continue to have ready access to 
information regarding the Fund's holdings, the Intraday Indicative 
Value, the Disclosed Portfolio, and quotation and last sale information 
for the Shares. The Adviser represents that the proposed rule change, 
as described above, is consistent with the Fund's investment objective, 
and would further assist the Adviser in achieving such investment 
objective.
    For the above reasons, the Exchange believes the proposed rule 
change is consistent with the requirements of Section 6(b)(5) of the 
Act.

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 purposes of the Act. The Exchange believes the 
proposed rule change will permit the Adviser additional flexibility, 
thereby helping the Fund to achieve its investment objective and 
enhancing competition among issues of Managed Fund Shares.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6) \14\

[[Page 27210]]

thereunder in that it effects a change that: (i) does not significantly 
affect the protection of investors or the public interest; (ii) does 
not impose any significant burden on competition; and (iii) by its 
terms, does not become operative for 30 days after the date of the 
filing, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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.
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    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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 [email protected]. Please include 
File Number SR-NASDAQ-2015-045 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street NE., Washington, DC 20549-9303.

All submissions should refer to File Number SR-NASDAQ-2015-045. 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 Nasdaq. All comments received 
will be posted without change; the Commission does not edit personal 
identifying information from submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NASDAQ-2015-045 and should be submitted 
on or before June 2, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-11371 Filed 5-11-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices 27207

or choose not to purchase a specific All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
proprietary data product if the attendant Number SR–NYSEMKT–2015–34. This notice is hereby given that on April 24,
fees are not justified by the returns that file number should be included on the 2015, The NASDAQ Stock Market LLC
any particular vendor or data recipient subject line if email is used. To help the (‘‘Nasdaq’’ or the ‘‘Exchange’’) filed with
would achieve through the purchase Commission process and review your the Securities and Exchange
(the returns on use being a particularly comments more efficiently, please use Commission (‘‘Commission’’) the
important aspect of non-display uses of only one method. The Commission will proposed rule change as described in in
proprietary data). post all comments on the Commission’s Items I, II, and III below, which Items
Internet Web site (http://www.sec.gov/ have been prepared by Nasdaq. The
C. Self-Regulatory Organization’s Exchange has designated the proposed
rules/sro.shtml). Copies of the
Statement on Comments on the rule change as constituting a non-
submission, all subsequent
Proposed Rule Change Received From controversial rule change under Rule
amendments, all written statements
Members, Participants, or Others 19b–4(f)(6) under the Act,3 which
with respect to the proposed rule
No written comments were solicited change that are filed with the renders the proposal effective upon
or received with respect to the proposed Commission, and all written filing with the Commission. The
rule change. communications relating to the Commission is publishing this notice to
proposed rule change between the solicit comments on the proposed rule
III. Date of Effectiveness of the change from interested persons.
Proposed Rule Change and Timing for Commission and any person, other than
Commission Action those that may be withheld from the I. Self-Regulatory Organization’s
public in accordance with the Statement of the Terms of Substance of
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be the Proposed Rule Change
upon filing pursuant to section available for Web site viewing and
19(b)(3)(A) 11 of the Act and printing in the Commission’s Public Nasdaq proposes a rule change with
subparagraph (f)(2) of Rule 19b–4 12 Reference Room, 100 F Street NE., respect to the First Trust Low Beta
thereunder, because it establishes a due, Washington, DC 20549 on official Income ETF (the ‘‘Fund’’) of First Trust
fee, or other charge imposed by the business days between the hours of Exchange-Traded Fund VI (the ‘‘Trust’’),
Exchange. 10:00 a.m. and 3:00 p.m. Copies of the the shares of which have been approved
At any time within 60 days of the filing will also be available for by the Commission for listing and
filing of such proposed rule change, the inspection and copying at the NYSE’s trading under NASDAQ Rule 5735
Commission summarily may (‘‘Managed Fund Shares’’). The shares of
principal office and on its Internet Web
temporarily suspend such rule change if the Fund are collectively referred to
site at www.nyse.com. All comments
it appears to the Commission that such herein as the ‘‘Shares.’’
received will be posted without change; The text of the proposed rule change
action is necessary or appropriate in the the Commission does not edit personal
public interest, for the protection of is available at http://
identifying information from nasdaq.cchwallstreet.com/, at Nasdaq’s
investors, or otherwise in furtherance of submissions. You should submit only
the purposes of the Act. If the principal office, and at the
information that you wish to make Commission’s Public Reference Room.
Commission takes such action, the available publicly. All submissions
Commission shall institute proceedings should refer to File Number SR– II. Self-Regulatory Organization’s
under section 19(b)(2)(B) 13 of the Act to NYSEMKT–2015–34 and should be Statement of the Purpose of, and
determine whether the proposed rule submitted on or before June 2, 2015. Statutory Basis for, the Proposed Rule
change should be approved or Change
For the Commission, by the Division of
disapproved. Trading and Markets, pursuant to delegated In its filing with the Commission,
IV. Solicitation of Comments authority.14 Nasdaq included statements concerning
Robert W. Errett, the purpose of, and basis for, the
Interested persons are invited to
Deputy Secretary. proposed rule change. The text of these
submit written data, views, and
[FR Doc. 2015–11375 Filed 5–11–15; 8:45 am] statements may be examined at the
arguments concerning the foregoing,
places specified in Item IV below.
including whether the proposed rule BILLING CODE 8011–01–P
Nasdaq has prepared summaries, set
change is consistent with the Act.
forth in Sections A, B, and C below, of
Comments may be submitted by any of
SECURITIES AND EXCHANGE the most significant aspects of such
the following methods:
COMMISSION statements.
Electronic Comments A. Self-Regulatory Organization’s
[Release No. 34–74880; File No. SR–
• Use the Commission’s Internet NASDAQ–2015–045] Statement of the Purpose of, and
comment form (http://www.sec.gov/ Statutory Basis for, the Proposed Rule
rules/sro.shtml); or Self-Regulatory Organizations; The Change
• Send an email to rule-comments@ NASDAQ Stock Market, LLC; Notice of
Filing and Immediate Effectiveness of 1. Purpose
sec.gov. Please include File Number SR–
NYSEMKT–2015–34 on the subject line. Proposed Rule Change Relating to the The Exchange proposes to reflect
Listing and Trading of the Shares of changes to the means of achieving the
Paper Comments the First Trust Low Beta Income ETF, Fund’s investment objective. The
mstockstill on DSK4VPTVN1PROD with NOTICES

• Send paper comments in triplicate a Series of First Trust Exchange- Commission has approved the listing
to Brent J. Fields, Secretary, Securities Traded Fund VI and trading of Shares under NASDAQ
and Exchange Commission, 100 F Street Rule 5735, which governs the listing
NE., Washington, DC 20549–1090. May 6, 2015. and trading of Managed Fund Shares on
Pursuant to Section 19(b)(1) of the
11 15 U.S.C. 78s(b)(3)(A). Securities Exchange Act of 1934 1 15 U.S.C. 78s(b)(1).
12 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4.
13 15 U.S.C. 78s(b)(2)(B). 14 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4(f)(6).

VerDate Sep<11>2014 17:31 May 11, 2015 Jkt 235001 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 E:\FR\FM\12MYN1.SGM 12MYN1
27208 Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices

the Exchange.4 The Exchange believes flexibility in pursuing the Fund’s Permissible Terms to Expiration for Call
the proposed rule change reflects no investment objective. However, the Options
significant issues not previously equity securities in which the Fund As provided in the Prior Release, a
addressed in the Prior Release. The would invest and the options which the component of the option portion of the
Fund is an actively managed exchange- Fund would buy and write would Fund’s portfolio consists of U.S.
traded fund (‘‘ETF’’). The Shares are continue to be limited to U.S. exchange- exchange-traded covered calls or
offered by the Trust, which was traded securities and options, covered call spreads on the Index that
organized as a Massachusetts business respectively. The Adviser represents are written by the Fund. The Prior
trust on June 4, 2012. The Trust, which that there would be no change to the Release provided that the call options
is registered with the Commission as an written by the Fund would typically be
Fund’s investment objective. Except as
investment company, has filed a a laddered portfolio of one-week, one-
provided herein, all other facts
registration statement on Form N–1A month, two-month and three-month call
(‘‘Registration Statement’’) relating to presented and representations made in
the Prior Release would remain options written at-the-money to slightly
the Fund with the Commission.5 First out-of-the-money. The Exchange is now
Trust Advisors L.P. (‘‘First Trust unchanged. The Fund and the Shares
would continue to comply with all proposing a change that would increase
Advisors’’) is the investment adviser flexibility with respect to the
(‘‘Adviser’’) to the Fund. initial and continued listing
requirements under NASDAQ Rule permissible term for call option
The Prior Release provided that the
5735. expirations. In this regard, the Exchange
Fund’s investment objective would be to
proposes to modify the foregoing to
provide current income and that the
The Fund’s Investments Primarily in provide that, going forward, the call
Fund would pursue its objective by
Large-Cap U.S. Exchange-Traded Equity options written by the Fund would be
investing in large-cap U.S. exchange-
Securities a laddered portfolio of call options with
traded equity securities and by utilizing
an ‘‘option strategy’’ consisting of expirations of less than one year,
The Prior Release stated that in written at-the-money to slightly out-of-
buying U.S. exchange-traded put pursuing its investment objective, under
options on the Standard & Poor’s 500 the-money.
normal market conditions,6 the Fund
Index (the ‘‘Index’’) and writing (selling) Permissible Terms to Expiration for Put
would invest primarily in large-cap U.S.
U.S. exchange-traded covered call Options
options on the Index. exchange-traded equity securities. The
Exchange proposes to amend this As provided in the Prior Release, a
The Exchange now proposes three
statement in the Prior Release by component of the Fund’s option strategy
modifications to the description of the
deleting the term ‘‘large-cap.’’ 7 consists of U.S. exchange-traded puts on
measures utilized by the Adviser to
Therefore, going forward, in pursuing its the Index that are bought by the Fund.
implement the Fund’s investment
investment objective, under normal The Prior Release provided that the put
objective. As described in further detail
market conditions, while the Fund positions held by the Fund would
below, these pertain to the following: (1)
would continue to invest primarily in generally average two to three months to
The Fund’s investment primarily in
expiration (calculated at the time of
large-cap U.S. exchange-traded equity U.S. exchange-traded equity securities,
purchase) and consist of out-of-the-
securities; (2) the permissible terms to it would not be required to invest
money Index put options. The Exchange
expiration for the U.S. exchange-traded primarily in ‘‘large-cap’’ U.S. exchange- is now proposing a change that would
covered call options written (sold) by traded equity securities. The Adviser increase flexibility with respect to the
the Fund; and (3) the permissible terms believes that the ability to invest permissible term for put option
to expiration for the U.S. exchange- primarily in U.S. exchange-traded expirations. In this regard, the Exchange
traded put options purchased by the equity securities of any market proposes to modify the foregoing to
Fund. These modifications are being capitalization would, by expanding the provide that, going forward, the put
proposed to enhance the Adviser’s range of potential investments, provide positions held by the Fund would be
4 The Commission approved NASDAQ Rule 5735
it with additional flexibility to pursue, less than one year to expiration
(formerly NASDAQ Rule 4420(o)) in Securities and enhance its ability to achieve, the (calculated at the time of purchase) and
Exchange Act Release No. 57962 (June 13, 2008), 73 Fund’s investment objective. would consist of out-of-the-money
FR 35175 (June 20, 2008) (SR–NASDAQ–2008–039). Index put options.
The Commission previously approved the listing 6 According to the Prior Release, the term ‘‘under
and trading of the Shares of the Fund. See
normal market conditions’’ as used therein
Surveillance
Securities Exchange Act Release No. 70828
(November 7, 2013), 78 FR 68490 (November 14, included, but was not limited to, the absence of The Exchange represents that trading
2013) (SR–NASDAQ–2013–121) (‘‘Prior Order’’). adverse market, economic, political or other in the Shares would continue to be
See also Securities Exchange Act Release No. 70459 conditions, including extreme volatility or trading subject to the existing trading
(September 20, 2013), 78 FR 59394 (September 26, halts in the securities markets or the financial
2013) (SR–NASDAQ–2013–121) (‘‘Prior Notice,’’ markets generally; operational issues causing
surveillances, administered by both
and together with the Prior Order, the ‘‘Prior dissemination of inaccurate market information; or NASDAQ and also the Financial
Release’’). The Fund and the Shares are currently force majeure type events such as systems failure, Industry Regulatory Authority
in compliance with the requirements set forth in the natural or man-made disaster, act of God, armed (‘‘FINRA’’) on behalf of the Exchange,
Prior Release. conflict, act of terrorism, riot or labor disruption or
5 See Post-Effective Amendment No. 51 to
which are designed to detect violations
any similar intervening circumstance. The Prior of Exchange rules and applicable federal
Registration Statement on Form N–1A for the Trust, Release also provided that in periods of extreme
dated January 21, 2015 (File Nos. 333–182308 and securities laws.8 The Exchange
mstockstill on DSK4VPTVN1PROD with NOTICES

market disturbance, the Fund may take temporary
811–22717). The descriptions of the Shares and the defensive positions, by overweighting its portfolio represents that these procedures are
Fund contained herein are based, in part, on adequate to properly monitor Exchange
in cash/cash-like instruments; however, to the
information in the Registration Statement. In
addition, the Commission has issued an order, upon
extent possible, the Adviser would continue to seek trading of the Shares in all trading
which the Trust may rely, granting certain to achieve the Fund’s investment objective.
7 To the extent necessary to make them
exemptive relief under the Investment Company 8 FINRA surveils trading on the Exchange

Act of 1940 (the ‘‘1940 Act’’). See Investment consistent, additional statements and pursuant to a regulatory services agreement. The
Company Act Release No. 28468 (October 27, 2008) representations included in the Prior Release would Exchange is responsible for FINRA’s performance
(File No. 812–13477). also be deemed to be similarly modified. under this regulatory services agreement.

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27210 Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices

thereunder in that it effects a change proposed rule change between the I. Self-Regulatory Organization’s
that: (i) does not significantly affect the Commission and any person, other than Statement of the Terms of Substance of
protection of investors or the public those that may be withheld from the the Proposed Rule Change
interest; (ii) does not impose any public in accordance with the The Exchange proposes to amend the
significant burden on competition; and provisions of 5 U.S.C. 552, will be fees for NYSE MKT BBO and NYSE
(iii) by its terms, does not become available for Web site viewing and MKT Trades to add a late fee in
operative for 30 days after the date of printing in the Commission’s Public connection with failure to submit the
the filing, or such shorter time as the Reference Room, 100 F Street NE., non-display use declaration, operative
Commission may designate if consistent Washington, DC 20549, on official on May 1, 2015. The text of the
with the protection of investors and the business days between the hours of proposed rule change is available on the
public interest. 10:00 a.m. and 3:00 p.m. Copies of the Exchange’s Web site at www.nyse.com,
At any time within 60 days of the filing also will be available for at the principal office of the Exchange,
filing of the proposed rule change, the inspection and copying at the principal and at the Commission’s Public
Commission summarily may office of Nasdaq. All comments received Reference Room.
temporarily suspend such rule change if will be posted without change; the
it appears to the Commission that such Commission does not edit personal II. Self-Regulatory Organization’s
action is: (i) Necessary or appropriate in identifying information from Statement of the Purpose of, and
the public interest; (ii) for the protection submissions. You should submit only Statutory Basis for, the Proposed Rule
of investors; or (iii) otherwise in information that you wish to make Change
furtherance of the purposes of the Act. available publicly. All submissions In its filing with the Commission, the
If the Commission takes such action, the should refer to File Number SR– self-regulatory organization included
Commission shall institute proceedings NASDAQ–2015–045 and should be statements concerning the purpose of,
to determine whether the proposed rule submitted on or before June 2, 2015. and basis for, the proposed rule change
should be approved or disapproved. and discussed any comments it received
For the Commission, by the Division of
IV. Solicitation of Comments Trading and Markets, pursuant to delegated on the proposed rule change. The text
authority.15 of those statements may be examined at
Interested persons are invited to
Robert W. Errett, the places specified in Item IV below.
submit written data, views, and
Deputy Secretary. The Exchange has prepared summaries,
arguments concerning the foregoing,
set forth in sections A, B, and C below,
including whether the proposed rule [FR Doc. 2015–11371 Filed 5–11–15; 8:45 am]
of the most significant parts of such
change is consistent with the Act. BILLING CODE 8011–01–P
statements.
Comments may be submitted by any of
the following methods: A. Self-Regulatory Organization’s
SECURITIES AND EXCHANGE Statement of the Purpose of, and the
Electronic Comments COMMISSION Statutory Basis for, the Proposed Rule
• Use the Commission’s Internet Change
comment form (http://www.sec.gov/ [Release No. 34–74882; File No. SR–
rules/sro.shtml); or 1. Purpose
NYSEMKT–2015–36]
• Send an email to rule-comments@ The Exchange proposes to amend the
sec.gov. Please include File Number SR– Self-Regulatory Organizations; NYSE fees for NYSE MKT BBO and NYSE
NASDAQ–2015–045 on the subject line. MKT, LLC; Notice of Filing and MKT Trades, as set forth on the NYSE
Paper Comments Immediate Effectiveness of Proposed MKT Equities Proprietary Market Data
Rule Change Amending the Fees for Fee Schedule (‘‘Fee Schedule’’), to add
• Send paper comments in triplicate NYSE MKT BBO and NYSE MKT a late fee in connection with failure to
to Brent J. Fields, Secretary, Securities Trades To Add a Late Fee In submit an updated non-display use
and Exchange Commission, Station Connection With Failure To Submit the declaration. The proposed change to the
Place, 100 F Street NE., Washington, DC Non-Display Use Declaration Fee Schedule would be operative on
20549–9303. May 1, 2015.
All submissions should refer to File May 6, 2015. The Exchange established the current
Number SR–NASDAQ–2015–045. This Pursuant to Section 19(b)(1) 1 of the fees for non-display services for NYSE
file number should be included on the Securities Exchange Act of 1934 (the MKT BBO and NYSE MKT Trades in
subject line if email is used. To help the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 April 2013 and amended those fees in
Commission process and review your notice is hereby given that, on April 27, September 2014.4 The 2013 Non-
comments more efficiently, please use 2015, NYSE MKT LLC (the ‘‘Exchange’’ Display Filing established a requirement
only one method. The Commission will or ‘‘NYSE MKT’’) filed with the that data recipients that receive real-
post all comments on the Commission’s Securities and Exchange Commission time NYSE MKT market data subject to
Internet Web site http://www.sec.gov/ (the ‘‘Commission’’) the proposed rule Non-Display Use fees submit a
rules/sro.shtml. change as described in Items I, II, and declaration with respect to their use of
Copies of the submission, all III below, which Items have been non-display data.5 In connection with
subsequent amendments, all written prepared by the self-regulatory
statements with respect to the proposed organization. The Commission is
4 See Securities Exchange Act Release Nos. 69285

rule change that are filed with the (April 3, 2013), 78 FR 21172 (April 9, 2013) (SR–
mstockstill on DSK4VPTVN1PROD with NOTICES

publishing this notice to solicit NYSEMKT–2013–32)(‘‘2013 Non-Display Filing’’)
Commission, and all written comments on the proposed rule change and 72020 (Sept. 9, 2014), 79 FR 55040 (Sept. 15,
communications relating to the from interested persons. 2014) (SR–NYSEMKT–2014–72)(‘‘2014 Non-Display
Filing’’).
the proposed rule change at least five business days 15 17
5 The non-display fee structure established in the

prior to the date of filing of the proposed rule CFR 200.30–3(a)(12). 2013 Non-Display Filing replaced a monthly
1 15 U.S.C. 78s(b)(1).
change, or such shorter time as designated by the reporting obligation with respect to non-display
2 15 U.S.C. 78a.
Commission. The Exchange has satisfied this devices with the requirement to submit the non-
requirement. 3 17 CFR 240.19b–4. display use declaration. The Exchange also notes

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Document Created: 2015-12-16 07:55:11
Document Modified: 2015-12-16 07:55:11
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 27207