80 FR 30508 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Approving a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade the Shares of the Tuttle Tactical Management Multi-Strategy Income ETF of ETFis Series Trust I
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 102 (May 28, 2015)
Federal Register Volume 80, Issue 102 (May 28, 2015)
| Page Range | 30508-30511 | |
| FR Document | 2015-12835 |
[Federal Register Volume 80, Number 102 (Thursday, May 28, 2015)] [Notices] [Pages 30508-30511] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-12835] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75031; File No. SR-NASDAQ-2015-023] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Approving a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade the Shares of the Tuttle Tactical Management Multi- Strategy Income ETF of ETFis Series Trust I May 21, 2015. I. Introduction On March 25, 2015, The NASDAQ Stock Market LLC (``Exchange'' or ``Nasdaq'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'' or ``Exchange Act'') \2\ and Rule 19b-4 thereunder,\3\ a proposed rule change to list and trade shares (``Shares'') of the Tuttle Tactical Management Multi-Strategy Income ETF (``Fund''), a series of ETFis Series Trust I (``Trust'') under NASDAQ Rule 5735. The proposed rule change was published for comment in the Federal Register on April 10, 2015.\4\ On May 20, 2015, the Exchange filed Amendment No. 1 to the proposed rule change.\5\ The Commission received no comments on the proposed rule change. This order approves the proposed rule change, as modified by Amendment No. 1. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. \4\ See Securities Exchange Act Release No. 74653 (April 6, 2015), 80 FR 19371 (``Notice''). \5\ In Amendment No. 1, the Exchange clarified that under normal market conditions, the Fund will invest only in those assets listed under the ``Principal Investments'' section of the Notice. Amendment No. 1 is not subject to notice and comment because it is a technical amendment that does not materially alter the substance of the proposed rule change or raise any novel regulatory issues. --------------------------------------------------------------------------- II. Description of the Proposal The Exchange proposes to list and trade the Shares under Nasdaq Rule 5735, which governs the listing and trading of Managed Fund Shares on the Exchange. The Fund will be an actively-managed exchange-traded fund (``ETF''). The Shares will be offered by the Trust.\6\ The Trust is registered with the Commission as an investment company and has filed a registration statement on Form N-1A (``Registration Statement'') with the Commission.\7\ The Fund is a series of the Trust. --------------------------------------------------------------------------- \6\ The Commission has issued an order granting certain exemptive relief to the Trust under the 1940 Act. See Investment Company Act Release No. 30607 (July 23, 2013). \7\ See Registration Statement on Form N-1A for the Trust filed on January 30, 2015 (File Nos. 333-187668 and 811-22819). --------------------------------------------------------------------------- Etfis Capital LLC will be the investment adviser (``Adviser'') to the Fund. Tuttle Tactical Management, LLC will be the investment sub- adviser (``Sub-Adviser'') to the Fund. ETF Distributors LLC will be the principal underwriter and distributor of the Fund's Shares. The Bank of New York Mellon will act as the administrator, accounting agent, custodian, and transfer agent to the Fund. The Exchange states that the Adviser and Sub-Adviser are not registered as broker-dealers but that the Adviser is affiliated with a broker-dealer.\8\ In addition, the Exchange states that the Adviser has implemented a fire wall with respect to its broker-dealer affiliate regarding access to information concerning the composition and/or changes to the portfolio, and will be [[Page 30509]] subject to procedures designed to prevent the use and dissemination of material non-public information regarding the Fund's portfolio.\9\ In the event (a) the Adviser or the Sub-Adviser becomes newly affiliated with a broker-dealer or registers as a broker-dealer, or (b) any new adviser or sub-adviser is a registered broker-dealer or becomes affiliated with a broker-dealer, it will implement a fire wall with respect to its relevant personnel and/or such broker-dealer affiliate, if applicable, regarding access to information concerning the composition and/or changes to the portfolio and will be subject to procedures designed to prevent the use and dissemination of material non-public information regarding such portfolio.\10\ --------------------------------------------------------------------------- \8\ See Notice, supra note 4, 80 FR at 19372. \9\ See id. \10\ See id. --------------------------------------------------------------------------- The Exchange has made the following representations and statements regarding the Fund.\11\ --------------------------------------------------------------------------- \11\ Additional information regarding, among other things, the Fund, the Shares, the Fund's investment objectives, the Fund's strategies, methodology and restrictions, risks; fees and expenses associated with the Shares, creations and redemptions of Shares, availability of price information, trading rules and halts, and surveillance procedures can be found in the Notice and the Registration Statement. See Notice, supra note 4, and Registration Statement, supra note 7, respectively. --------------------------------------------------------------------------- Investments for the Fund The Fund's investment objective will be to seek current income while maintaining a secondary emphasis on long-term capital appreciation and low volatility. The Fund will seek to achieve its investment objective by utilizing a long-only, multi-strategy, tactically-managed exposure to the U.S. equity market. To obtain such exposure, the Sub-Adviser will invest, under normal market conditions,\12\ the Fund's assets in ETFs, exchange-traded notes (``ETNs''),\13\ exchange-traded trusts that hold commodities (``ETTs'') (collectively, ETFs, ETNs and ETTs are referred to hereinafter as ``exchange-traded products'' or ``ETPs''), individually selected U.S. exchange-traded common stocks (when the Sub-Adviser determines that is more efficient or otherwise advantageous to do so), money market funds, U.S. treasuries or money market instruments. The Exchange states that, to the extent that the Fund invests in ETFs or money market funds to gain domestic exposure, the Fund is considered, in part, a ``fund of funds.'' --------------------------------------------------------------------------- \12\ The term ``under normal market conditions'' includes, but is not limited to, the absence of adverse market, economic, political or other conditions, including extreme volatility or trading halts in the fixed income 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. \13\ The Exchange states that ETNs are limited to those described in Nasdaq Rule 5710. --------------------------------------------------------------------------- Investment RestrictionsThe Fund will not use derivative instruments, including options, swaps, forwards and futures contracts. The Fund will not invest in leveraged, inverse, or leveraged inverse ETPs. The Fund's net assets that are invested in exchange-traded equities, including ETPs and common stock, will be invested in instruments that trade in markets that are members of the Intermarket Surveillance Group (``ISG'') or are parties to a comprehensive surveillance sharing agreement with the Exchange.\14\ --------------------------------------------------------------------------- \14\ See Notice, supra note 4, 80 FR at 19375. --------------------------------------------------------------------------- The Fund may hold up to an aggregate amount of 15% of its net assets in illiquid securities and other illiquid assets (calculated at the time of investment).\15\ --------------------------------------------------------------------------- \15\ The Fund will monitor its portfolio liquidity on an ongoing basis to determine whether, in light of current circumstances, an adequate level of liquidity is being maintained, and will consider taking appropriate steps in order to maintain adequate liquidity if, through a change in values, net assets, or other circumstances, more than 15% of the Fund's net assets are held in illiquid securities or other illiquid assets. Illiquid securities and other illiquid assets include securities subject to contractual or other restrictions on resale and other instruments that lack readily available markets as determined in accordance with Commission staff guidance. --------------------------------------------------------------------------- The Fund does not presently intend to engage in any form of borrowing for investment purposes, and will not be operated as a ``leveraged ETF'', i.e., it will not be operated in a manner designed to seek a multiple of the performance of an underlying reference index. III. Discussion and Commission Findings After careful review, the Commission finds that the Exchange's proposal to list and trade the Shares is consistent with the Exchange Act and the rules and regulations thereunder applicable to a national securities exchange.\16\ In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Exchange Act,\17\ which requires, among other things, that the Exchange's rules be designed 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. --------------------------------------------------------------------------- \16\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \17\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission finds that the proposal to list and trade the Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the Exchange Act,\18\ which sets forth Congress' finding that it is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to assure the availability to brokers, dealers and investors of information with respect to quotations for and transactions in securities. Quotation and last-sale information for the Shares and any underlying exchange-traded products will be available via Nasdaq proprietary quote and trade services, as well as in accordance with the Unlisted Trading Privileges and the Consolidated Tape Association plans for the Shares. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78k-1(a)(1)(C)(iii). --------------------------------------------------------------------------- Price information regarding the ETPs, equity securities, U.S. treasuries, money market instruments and money market Funds held by the Fund will be available through the U.S. exchanges trading such assets, in the case of exchange-traded securities, as well as automated quotation systems, published or other public sources, or on-line information services such as Bloomberg or Reuters. Intra-day price information for all assets held by the Fund will also be available through subscription services, such as Bloomberg, Markit and Thomson Reuters, which can be accessed by authorized participants and other investors. Information regarding market price and volume of the Shares will be continually available on a real-time basis throughout the day on brokers' computer screens and other electronic services. The previous day's closing price and trading volume information for the Shares will be published daily in the financial section of newspapers. The Commission also believes that the proposal to list and trade the Shares is reasonably designed to promote fair disclosure of information that may be necessary to price the Shares appropriately and to prevent trading when a reasonable degree of transparency cannot be assured. On each business day, before commencement of trading in Shares in the Regular Market Session \19\ on the [[Page 30510]] Exchange, the Fund will disclose on its Web site the identities and quantities of the portfolio of securities and other assets (``Disclosed Portfolio,'' as defined in Nasdaq Rule 5735(c)(2)) held by the Fund that will form the basis for the Fund's calculation of NAV at the end of the business day.\20\ The Web site information will be publicly available at no charge. The NAV will be determined as of the close of trading (normally 4:00 p.m., E.T.) on each day the New York Stock Exchange is open for business. The Exchange will obtain a representation from the issuer of the Shares that the NAV per Share will be calculated daily and that the NAV and the Disclosed Portfolio will be made available to all market participants at the same time.\21\ The Intraday Indicative Value, available on the NASDAQ OMX Information LLC proprietary index data service,\22\ will be based upon the current value for the components of the Disclosed Portfolio and will be updated and widely disseminated by one or more major market data vendors and broadly displayed at least every 15 seconds during the Regular Market Session.\23\ The Fund's Web site will include a form of the prospectus for the Fund and additional data relating to NAV and other applicable quantitative information.\24\ --------------------------------------------------------------------------- \19\ 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. Eastern time (``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.). \20\ Under accounting procedures to be followed by the Fund, trades made on the prior business day (``T'') will be booked and reflected in NAV on the current business day (``T+1''). Notwithstanding the foregoing, portfolio trades that are executed prior to the opening of the Exchange on any business day may be booked and reflected in NAV on such business day. Accordingly, the Fund will be able to disclose at the beginning of the business day the portfolio that will form the basis for the NAV calculation at the end of the business day. \21\ See Notice, supra note 4, 80 FR at 19375. \22\ Currently, the NASDAQ OMX Global Index Data Service (``GIDS'') is the NASDAQ OMX global index data feed service. The Exchange represents that GIDS offers real-time updates, daily summary messages, and access to widely followed indexes and Intraday Indicative Values for ETFs, and that GIDS provides investment professionals with the daily information needed to track or trade NASDAQ OMX indexes, listed ETFs, or third-party partner indexes and ETFs. \23\ See id. at 19374. \24\ See id. --------------------------------------------------------------------------- The Exchange represents that it may consider all relevant factors in exercising its discretion to halt or suspend trading in the Shares of the Fund. Nasdaq will halt trading in the Shares under the conditions specified in Nasdaq Rules 4120 and 4121, including the trading pauses under Nasdaq Rules 4120(a)(11) and (12). Trading also may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in the Shares inadvisable.\25\ Trading in the Shares also will be subject to Rule 5735(d)(2)(D), which sets forth circumstances under which Shares of the Fund may be halted. --------------------------------------------------------------------------- \25\ These may include: (1) The extent to which trading is not occurring in the securities and/or the other assets constituting the Disclosed Portfolio of the Fund; or (2) whether other unusual conditions or circumstances detrimental to the maintenance of a fair and orderly market are present. See id. at 19375. --------------------------------------------------------------------------- The Exchange states that it has a general policy prohibiting the distribution of material, non-public information by its employees.\26\ The Exchange states that the Adviser and Sub-Adviser are not registered as broker-dealers, but that the Adviser is affiliated with a broker- dealer. In addition, the Exchange states that the Adviser has implemented a fire wall with respect to its broker-dealer affiliate regarding access to information concerning the composition and/or changes to the portfolio, and will be subject to procedures designed to prevent the use and dissemination of material non-public information regarding the Fund's portfolio.\27\ In the event (a) the Adviser or the Sub-Adviser becomes newly affiliated with a broker-dealer or registers as a broker-dealer, or (b) any new adviser or sub-adviser is a registered broker-dealer or becomes affiliated with a broker-dealer, it will implement a fire wall with respect to its relevant personnel and/ or such broker-dealer affiliate, if applicable, regarding access to information concerning the composition and/or changes to the portfolio and will be subject to procedures designed to prevent the use and dissemination of material non-public information regarding such portfolio.\28\ --------------------------------------------------------------------------- \26\ See id. \27\ See id. at 19372. \28\ See supra text accompanying note 10. --------------------------------------------------------------------------- FINRA, on behalf of the Exchange, will communicate as needed regarding trading in the Shares and other exchange-traded securities and instruments held by the Fund with other markets and other entities that are members of ISG,\29\ and FINRA may obtain trading information regarding trading in the Shares and other exchange-traded securities and instruments held by the Fund from such markets and other entities. In addition, the Exchange may obtain information regarding trading in the Shares and the exchange-traded securities and instruments held by the Fund from markets and other entities that are members of ISG, or with which the Exchange has in place a comprehensive surveillance sharing agreement. --------------------------------------------------------------------------- \29\ For a list of the current members of ISG, see www.isgportal.org. The Exchange notes that not all components of the Disclosed Portfolio may trade on markets that are members of ISG or with which the Exchange has in place a comprehensive surveillance sharing agreement. --------------------------------------------------------------------------- The Commission notes that the Fund and the Shares must comply with the requirements of Nasdaq Rule 5735 to be listed and traded on the Exchange. Nasdaq deems the Shares to be equity securities, thus rendering trading in the Shares subject to Nasdaq's existing rules governing the trading of equity securities. In support of this proposal, the Exchange represented that: (1) The Shares will be subject to Nasdaq Rule 5735, which sets forth the initial and continued listing criteria applicable to Managed Fund Shares. (2) Trading in the Shares will be subject to the existing trading surveillances administered by both Nasdaq and FINRA on behalf of the Exchange, which are designed to detect violations of Exchange rules and applicable federal securities laws, and 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. (3) The Exchange has appropriate rules to facilitate transactions in the Shares during all trading sessions. (4) Prior to the commencement of trading, the Exchange will inform its members in an Information Circular of the special characteristics and risks associated with trading the Shares. Specifically, the Information Circular will discuss the following: (a) The procedures for purchases and redemptions of Shares in Creation Units (and that Shares are not individually redeemable); (b) Nasdaq Rule 2111A, which imposes suitability obligations on Nasdaq members with respect to recommending transactions in the Shares to customers; (c) how information regarding the Intraday Indicative Value and Disclosed Portfolio is disseminated; (d) the risks involved in trading the Shares during the Pre-Market and Post-Market Sessions when an updated Intraday Indicative Value will not be calculated or publicly disseminated; (e) the requirement that members deliver a prospectus to investors purchasing newly issued Shares prior to or concurrently with the confirmation of a transaction; and (f) trading information. (5) For initial and/or continued listing, the Fund must be in compliance with Rule 10A-3 \30\ under the Act. --------------------------------------------------------------------------- \30\ See 17 CFR 240.10A-3. --------------------------------------------------------------------------- [[Page 30511]] (6) The Fund will not use derivative instruments, including options, swaps, forwards and futures contracts, both listed and OTC. (7) The Fund's net assets that are invested in exchange-traded equities, including ETPs and common stock, will be invested in instruments that trade in markets that are members of ISG or are parties to a comprehensive surveillance sharing agreement with the Exchange. (8) The Fund may hold up to an aggregate amount of 15% of its net assets in illiquid securities and other illiquid assets (calculated at the time of investment). (9) A minimum of 100,000 Shares will be outstanding at the commencement of trading on the Exchange. This approval order is based on all of the Exchange's representations, including those set forth above and in the Notice. For the foregoing reasons, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with Section 6(b)(5) of the Act \31\ and the rules and regulations thereunder applicable to a national securities exchange. --------------------------------------------------------------------------- \31\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act,\32\ that the proposed rule change (SR-NASDAQ-2015-023), as modified by Amendment No. 1, is hereby approved. --------------------------------------------------------------------------- \32\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\33\ --------------------------------------------------------------------------- \33\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-12835 Filed 5-27-15; 8:45 am] BILLING CODE 8011-01-P
![30508 Federal Register / Vol. 80, No. 102 / Thursday, May 28, 2015 / Notices
C. Self-Regulatory Organization’s only one method. The Commission will thereunder,3 a proposed rule change to
Statement on Comments on the post all comments on the Commission’s list and trade shares (‘‘Shares’’) of the
Proposed Rule Change Received From Internet Web site (http://www.sec.gov/ Tuttle Tactical Management Multi-
Members, Participants, or Others rules/sro.shtml). Copies of the Strategy Income ETF (‘‘Fund’’), a series
The Exchange neither solicited nor submission, all subsequent of ETFis Series Trust I (‘‘Trust’’) under
received comments on the proposed amendments, all written statements NASDAQ Rule 5735. The proposed rule
rule change. with respect to the proposed rule change was published for comment in
change that are filed with the the Federal Register on April 10, 2015.4
III. Date of Effectiveness of the Commission, and all written On May 20, 2015, the Exchange filed
Proposed Rule Change and Timing for communications relating to the Amendment No. 1 to the proposed rule
Commission Action proposed rule change between the change.5 The Commission received no
Because the foregoing proposed rule Commission and any person, other than comments on the proposed rule change.
change does not: those that may be withheld from the This order approves the proposed rule
A. significantly affect the protection public in accordance with the change, as modified by Amendment No.
of investors or the public interest; provisions of 5 U.S.C. 552, will be 1.
B. impose any significant burden on available for Web site viewing and
II. Description of the Proposal
competition; and printing in the Commission’s Public
C. become operative for 30 days from Reference Room, 100 F Street NE., The Exchange proposes to list and
the date on which it was filed, or such Washington, DC 20549 on official trade the Shares under Nasdaq Rule
shorter time as the Commission may business days between the hours of 5735, which governs the listing and
designate, it has become effective 10:00 a.m. and 3:00 p.m. Copies of the trading of Managed Fund Shares on the
pursuant to Section 19(b)(3)(A) of the filing also will be available for Exchange. The Fund will be an actively-
Act 16 and Rule 19b–4(f)(6) 17 inspection and copying at the principal managed exchange-traded fund (‘‘ETF’’).
thereunder. At any time within 60 days office of the Exchange. All comments The Shares will be offered by the Trust.6
of the filing of the proposed rule change, received will be posted without change; The Trust is registered with the
the Commission summarily may the Commission does not edit personal Commission as an investment company
temporarily suspend such rule change if identifying information from and has filed a registration statement on
it appears to the Commission that such submissions. You should submit only Form N–1A (‘‘Registration Statement’’)
action is necessary or appropriate in the information that you wish to make with the Commission.7 The Fund is a
public interest, for the protection of available publicly. All submissions series of the Trust.
investors, or otherwise in furtherance of should refer to File Number SR–CBOE- Etfis Capital LLC will be the
the purposes of the Act. If the 2015–051 and should be submitted on investment adviser (‘‘Adviser’’) to the
Commission takes such action, the or before June 18, 2015. Fund. Tuttle Tactical Management, LLC
Commission will institute proceedings will be the investment sub-adviser
For the Commission, by the Division of
to determine whether the proposed rule Trading and Markets, pursuant to delegated (‘‘Sub-Adviser’’) to the Fund. ETF
change should be approved or authority.18 Distributors LLC will be the principal
disapproved. Robert W. Errett, underwriter and distributor of the
Deputy Secretary.
Fund’s Shares. The Bank of New York
IV. Solicitation of Comments Mellon will act as the administrator,
[FR Doc. 2015–12833 Filed 5–27–15; 8:45 am]
Interested persons are invited to accounting agent, custodian, and
BILLING CODE 8011–01–P
submit written data, views, and transfer agent to the Fund. The
arguments concerning the foregoing, Exchange states that the Adviser and
including whether the proposed rule SECURITIES AND EXCHANGE Sub-Adviser are not registered as
change is consistent with the Act. COMMISSION broker-dealers but that the Adviser is
Comments may be submitted by any of affiliated with a broker-dealer.8 In
the following methods: [Release No. 34–75031; File No. SR– addition, the Exchange states that the
NASDAQ–2015–023] Adviser has implemented a fire wall
Electronic Comments with respect to its broker-dealer affiliate
• Use the Commission’s Internet Self-Regulatory Organizations; The
regarding access to information
comment form (http://www.sec.gov/ NASDAQ Stock Market LLC; Order
concerning the composition and/or
rules/sro.shtml); or Approving a Proposed Rule Change,
changes to the portfolio, and will be
• Send an email to rule-comments@ as Modified by Amendment No. 1, To
sec.gov. Please include File Number SR– List and Trade the Shares of the Tuttle 3 17 CFR 240.19b–4.
CBOE–2015–051 on the subject line. Tactical Management Multi-Strategy 4 See Securities Exchange Act Release No. 74653
Income ETF of ETFis Series Trust I (April 6, 2015), 80 FR 19371 (‘‘Notice’’).
Paper Comments 5 In Amendment No. 1, the Exchange clarified
May 21, 2015.
• Send paper comments in triplicate that under normal market conditions, the Fund will
invest only in those assets listed under the
to Secretary, Securities and Exchange I. Introduction ‘‘Principal Investments’’ section of the Notice.
Commission, 100 F Street NE., On March 25, 2015, The NASDAQ Amendment No. 1 is not subject to notice and
Washington, DC 20549–1090. Stock Market LLC (‘‘Exchange’’ or comment because it is a technical amendment that
does not materially alter the substance of the
asabaliauskas on DSK5VPTVN1PROD with NOTICES
All submissions should refer to File ‘‘Nasdaq’’) filed with the Securities and proposed rule change or raise any novel regulatory
Number SR–CBOE-2015–051. This file Exchange Commission (‘‘Commission’’), issues.
number should be included on the pursuant to Section 19(b)(1) 1 of the 6 The Commission has issued an order granting
subject line if email is used. To help the Securities Exchange Act of 1934 (‘‘Act’’ certain exemptive relief to the Trust under the 1940
Act. See Investment Company Act Release No.
Commission process and review your or ‘‘Exchange Act’’) 2 and Rule 19b–4 30607 (July 23, 2013).
comments more efficiently, please use 7 See Registration Statement on Form N–1A for
18 17 CFR 200.30–3(a)(12). the Trust filed on January 30, 2015 (File Nos. 333–
16 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). 187668 and 811–22819).
17 17 CFR 240.19b–4(f)(6). 2 15 U.S.C. 78a. 8 See Notice, supra note 4, 80 FR at 19372.
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![Federal Register / Vol. 80, No. 102 / Thursday, May 28, 2015 / Notices 30511
(6) The Fund will not use derivative (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a SECURITIES AND EXCHANGE
instruments, including options, swaps, proposed rule change to modify the COMMISSION
forwards and futures contracts, both Market Maker appointment and
[Release No. 34–75024; File No. SR–BX–
listed and OTC. withdrawal process used by the 2015–029]
(7) The Fund’s net assets that are Exchange. The proposed rule change
invested in exchange-traded equities, was published for comment in the Self-Regulatory Organizations;
including ETPs and common stock, will Federal Register on April 8, 2015.3 The NASDAQ OMX BX, Inc.; Notice of Filing
be invested in instruments that trade in Commission received no comment and Immediate Effectiveness of
markets that are members of ISG or are letters on the proposed rule change. Proposed Rule Change Regarding
parties to a comprehensive surveillance Penny Pilot Options Fees and Rebates
sharing agreement with the Exchange. Section 19(b)(2) of the Act 4 provides
(8) The Fund may hold up to an that within 45 days of the publication of May 21, 2015.
aggregate amount of 15% of its net notice of the filing of a proposed rule Pursuant to Section 19(b)(1) of the
assets in illiquid securities and other change, or within such longer period up Securities Exchange Act of 1934
illiquid assets (calculated at the time of to 90 days as the Commission may (‘‘Act’’),1 and Rule 19b–4 thereunder,2
investment). designate if it finds such longer period notice is hereby given that on May 11,
(9) A minimum of 100,000 Shares will to be appropriate and publishes its 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ or
be outstanding at the commencement of reasons for so finding or as to which the ‘‘Exchange’’) filed with the Securities
trading on the Exchange. self-regulatory organization consents, and Exchange Commission (‘‘SEC’’ or
This approval order is based on all of the Commission shall either approve the ‘‘Commission’’) the proposed rule
the Exchange’s representations, proposed rule change, disapprove the change as described in Items I, II, and
including those set forth above and in proposed rule change, or institute III, below, which Items have been
the Notice. For the foregoing reasons, proceedings to determine whether the prepared by the Exchange. The
the Commission finds that the proposed proposed rule change should be Commission is publishing this notice to
rule change, as modified by Amendment disapproved. The 45th day for this filing solicit comments on the proposed rule
No. 1, is consistent with Section 6(b)(5) is May 23, 2015. The Commission is change from interested persons.
of the Act 31 and the rules and extending this 45-day time period. I. Self-Regulatory Organization’s
regulations thereunder applicable to a Statement of the Terms of Substance of
national securities exchange. The Commission finds it appropriate
to designate a longer period within the Proposed Rule Change
IV. Conclusion which to take action on the proposed The Exchange proposes to amend
It is therefore ordered, pursuant to rule change so that it has sufficient time Chapter XV, entitled ‘‘Options Pricing’’
Section 19(b)(2) of the Exchange Act,32 to consider this proposed rule change. and Section 2, entitled ‘‘Options
that the proposed rule change (SR– The proposed rule change, if approved, Market—Fees and Rebates’’.
NASDAQ–2015–023), as modified by would modify the Market Maker Specifically, the Exchange proposes to:
Amendment No. 1, is hereby approved. appointment and withdrawal process (1) Decrease the Fee to Add Liquidity in
For the Commission, by the Division of used by the Exchange. Penny Pilot Options; 3 (2) decrease the
Trading and Markets, pursuant to delegated Accordingly, the Commission, Rebate to Remove Liquidity in Penny
authority.33 Pilot Options; and (3) delete the
pursuant to Section 19(b)(2) of the Act,5
Robert W. Errett, Monthly Volume Tiers that apply to
designates July 7, 2015, as the date by
Deputy Secretary.
Lead Market Makers.
which the Commission should either The text of the proposed rule change
[FR Doc. 2015–12835 Filed 5–27–15; 8:45 am] approve or disapprove, or institute is available on the Exchange’s Web site
BILLING CODE 8011–01–P proceedings to determine whether to at http://
disapprove, the proposed rule change nasdaqomxbx.cchwallstreet.com, at the
(File No. SR–NYSEArca–2015–17). principal office of the Exchange, and at
SECURITIES AND EXCHANGE
For the Commission, by the Division of the Commission’s Public Reference
COMMISSION
Trading and Markets, pursuant to delegated Room.
[Release No. 34–75032; File No. SR– authority.6
II. Self-Regulatory Organization’s
NYSEArca–2015–17] Robert W. Errett, Statement of the Purpose of, and
Self-Regulatory Organizations; NYSE Deputy Secretary. Statutory Basis for, the Proposed Rule
Arca, Inc.; Notice of Designation of a [FR Doc. 2015–12836 Filed 5–27–15; 8:45 am] Change
Longer Period for Commission Action BILLING CODE 8011–01–P In its filing with the Commission, the
on a Proposed Rule Change To Modify Exchange included statements
the Appointment Process Utilized by concerning the purpose of and basis for
the Exchange
1 15 U.S.C. 78s(b)(1).
May 21, 2015. 2 17 CFR 240.19b–4.
On March 20, 2015, NYSE Arca, Inc., 3 Penny Pilot Options are options that quote and
asabaliauskas on DSK5VPTVN1PROD with NOTICES
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed trade pursuant to the Penny Pilot, an industry-wide
with the Securities and Exchange program. The Penny Pilot was established on the
Exchange in June 2012 and last extended in
Commission (the ‘‘Commission’’), 1 15 U.S.C. 78s(b)(1). December 2014. See Securities Exchange Act
pursuant to Section 19(b)(1) of the 2 17 CFR 240.19b–4. Release Nos. 67256 (June 26, 2012), 77 FR 39277
Securities Exchange Act of 1934 3 See Securities Exchange Act Release No. 74635 (July 2, 2012) (SR–BX–2012–030) (order approving
(April 2, 2015), 80 FR 18909. BX option rules and establishing Penny Pilot); and
4 15 U.S.C. 78s(b)(2).
73689 (November 25, 2014), 79 FR 71488
31 15 U.S.C. 78f(b)(5). (December 2, 2014) (SR–BX–2014–057) (notice of
32 15 5 Id.
U.S.C. 78s(b)(2). filing and immediate effectiveness extending the
33 17 CFR 200.30–3(a)(12). 6 17 CFR 200.30–3(a)(31). Penny Pilot through June 30, 2015).
VerDate Sep<11>2014 18:18 May 27, 2015 Jkt 235001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\28MYN1.SGM 28MYN1](https://thefederalregister.org/doc/80_FR_30610/page/4.svg)
Document Created: 2018-02-21 10:33:23
Document Modified: 2018-02-21 10:33:23
| 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 30508 |
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