80 FR 55701 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Regarding a Change to the Reference Index Relating to the Market Vectors Short High Yield Municipal Index ETF
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 179 (September 16, 2015)
Federal Register Volume 80, Issue 179 (September 16, 2015)
| Page Range | 55701-55704 | |
| FR Document | 2015-23217 |
[Federal Register Volume 80, Number 179 (Wednesday, September 16, 2015)] [Notices] [Pages 55701-55704] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-23217] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75888; File No. SR-NYSEArca-2015-74] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Regarding a Change to the Reference Index Relating to the Market Vectors Short High Yield Municipal Index ETF September 10, 2015. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on August 26, 2015, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to reflect a change to the reference index relating to the Market Vectors Short High Yield Municipal Index ETF. Shares of the Fund are currently listed and traded on the Exchange under NYSE Arca Equities Rule 5.2(j)(3). The text of the proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Commission has approved listing and trading on the Exchange of shares (``Shares'') of the Market Vectors Short High Yield Municipal Index ETF (``Fund'') under NYSE Arca Equities Rule 5.2(j)(3), which governs the listing and trading of Investment Company Units (``Units'').\4\ Shares of the Fund are currently listed and traded on the Exchange. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 71232 (January 3, 2014), 79 FR 1662 (January 9, 2014 (SR-NYSEArca-2013-118) (order approving listing and trading of shares of the Market Vectors Short High Yield Municipal Index ETF) (``Order''). See also, Securities Exchange Act Release No. 70871 (November 14, 2013), 78 FR 69503 (November 19, 2013) (SR-NYSEArca-2013-118) (notice of proposed rule change relating to listing and trading of shares of the Market Vectors Short High Yield Municipal Index ETF) (``Notice'' and, together with the Order, the ``Release''). --------------------------------------------------------------------------- The Fund is a series of the Market Vectors ETF Trust. Van Eck Associates Corporation is the investment adviser (``Adviser'') for the Fund. Van Eck Securities Corporation is the Fund's distributor (``Distributor''). Van Eck Associates Corporation also is the administrator for the Fund (the ``Administrator''). The Bank of New York Mellon is the custodian of the Fund's assets and provides transfer agency and fund accounting services to the Fund. As described in the Release, the investment objective of the Fund is to seek to replicate as closely as possible, before fees and expenses, the price and yield performance of the Barclays Municipal High Yield Short Duration Index (the ``Short High Yield Index'' or ``Index'').\5\ The Index is a market size weighted index composed of publicly traded municipal bonds that cover the U.S. dollar denominated high yield short-term tax-exempt bond market. The majority of the Index's constituents are from the revenue sector, with some constituents being from the general obligation sector. The revenue sector is divided into industry sectors that [[Page 55702]] consist of but may not be limited to electric, health care, transportation, education, water and sewer, resource recovery, leasing and special tax. The Index is calculated using a market value weighting methodology, provided the allocation to issuers from the territories of the United States, including: Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa and the Northern Mariana Islands, each individually does not exceed 8%. The market value of each bond over the limit is adjusted on a pro-rata basis.\6\ --------------------------------------------------------------------------- \5\ As described in the Release, the Exchange submitted a proposed rule change to permit listing and trading of Shares of the Fund because the Index did not meet all of the ``generic'' listing requirements of Commentary .02(a) to NYSE Arca Equities Rule 5.2(j)(3) applicable to the listing of Units based on fixed income securities indexes. The Index met all such requirements except for those set forth in Commentary .02(a)(2). Commentary .02(a)(2) to NYSE Arca Equities Rule 5.2(j)(3) provides that components that in the aggregate account for at least 75% of the weight of the index or portfolio each shall have a minimum original principal amount outstanding of $100 million or more. \6\ The Index is published by Barclays Capital, Inc. (``Index Provider''). The Index Provider is a registered broker-dealer and has implemented a fire wall with respect to its relevant personnel regarding access to information concerning the composition and/or changes to the Index. In addition, the Index Provider is affiliated with a broker-dealer and has implemented a fire wall with respect to its broker-dealer affiliate regarding access to information concerning the composition and/or changes to the Index. The Index Provider and its broker-dealer affiliate have implemented procedures designed to prevent the use and dissemination of material, non- public information regarding the Index. --------------------------------------------------------------------------- The Index Provider is proposing to slightly revise the Index methodology as described in the Release as follows. The revised Short High-Yield Index (``Revised Index'') will have a targeted 40% weight in the Muni High Yield/$100 Million Deal Size Index (reduced from 50% weight). In addition, the Revised Index will have a 10% weight in the Muni A-Rated Index, which is comprised of investment grade components, as described below. The Revised Index will continue to have a 25% weight in the Muni High Yield/Under $100 Million Deal Size Index and a 25% weight in the Muni Baa-Rated/$100 Million Deal Size Index, as described in the Release. The Revised Index will be comprised of four total return, market size weighted benchmark indexes with target weights as follows:40% weight in Muni High Yield/$100 Million Deal Size Index. To be included in the Muni High Yield/$100 Million Deal Size Index, bonds must be unrated or rated Ba1/BB+ or lower by at least two of the following rating agencies if all three rate the bond: Moody's Investors Service, Inc. (``Moody's''), Standard & Poor's, Inc. (``S&P'') and Fitch, Inc. (``Fitch''). If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be Ba1/BB+ or lower. Bonds in the Muni High Yield/$100 Million Deal Size Index must have an outstanding par value of at least $3 million and be issued as part of a transaction of at least $100 million.\7\ --------------------------------------------------------------------------- \7\ As described in the Release, currently 50% of the Index weight is in the Muni High Yield/$100 Million Deal Size Index. --------------------------------------------------------------------------- 25% weight in Muni High Yield/Under $100 Million Deal Size Index. To be included in the Muni High Yield/Under $100 Million Deal Size Index, bonds must be unrated or rated Ba1/BB+ or lower by at least two of the following rating agencies if all three rate the bond: Moody's, S&P and Fitch. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be Ba1/BB+ or lower. Bonds in the Muni High Yield/Under $100 Million Deal Size Index must have an outstanding par value of at least $3 million and be issued as part of a transaction of under $100 million but over $20 million.\8\ --------------------------------------------------------------------------- \8\ The 25% weighting in the Muni High Yield/Under $100 Million Deal Size Index is identical to such weighting as set forth in the Release. --------------------------------------------------------------------------- 25% weight in Muni Baa-Rated/$100 Million Deal Size Index. To be included in the Muni Baa-Rated/$100 Million Deal Size Index, bonds must have a Barclays credit quality classification between Baa1/ BBB+ and Baa3/BBB-. Barclays credit quality classification is based on the three rating agencies, Moody's, S&P and Fitch. If two of the three agencies rate the bond equivalently, then that rating is used. If all three rate the bond differently, the middle rating is used. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be Baa1/BBB+, Baa2/BBB, or Baa3/BBB-. The bonds must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $100 million.\9\ --------------------------------------------------------------------------- \9\ The 25% weighting in the Muni Baa-Rated/$100 Million Deal Size Index is identical to such weighting as set forth in the Release. --------------------------------------------------------------------------- 10% weight in Muni A-Rated Index. To be included in the Muni A-Rated Index, bonds must have a Barclays credit quality classification between A1/A+ and A3/A-. The Barclays credit quality classification is based on the three rating agencies, Moody's, S&P and Fitch. If two of the three agencies rate the bond equivalently, then that rating is used. If all three rate the bond differently, the middle rating is used. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be A1/A+, A2/A, or A3/A-. The bonds must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. Remarketed issues are not allowed in the benchmark. All bonds must have a fixed rate, a dated-date (i.e., the date when interest begins to accrue) after December 31, 1990 and a nominal maturity of 1 to 12 years. Taxable municipal bonds, bonds with floating rates and derivatives are excluded from the Short High-Yield Index. The composition of the Revised Index will be rebalanced monthly. Interest and principal payments earned by the component securities will be held in the Revised Index without a reinvestment return until month end when they are removed from the Revised Index. Total returns will be calculated based on the sum of price changes, gain/loss on repayments of principal, and coupons received or accrued, expressed as a percentage of beginning market value. The Revised Index will be calculated and will be available once a day. The Exchange is submitting this proposed rule change because the Revised Index does not meet all of the ``generic'' listing requirements of Commentary .02(a) to NYSE Arca Equities Rule 5.2(j)(3) applicable to the listing of Units based on fixed income securities indexes. The Revised Index meets all such requirements except for those set forth in Commentary .02(a)(2).\10\ Specifically, as of June 30, 2015, 30.10% of the weight of the Revised Index components have a minimum original principal amount outstanding of $100 million or more. --------------------------------------------------------------------------- \10\ Commentary .02(a)(2) to NYSE Arca Equities Rule 5.2(j)(3) provides that components that in the aggregate account for at least 75% of the weight of the index or portfolio each shall have a minimum original principal amount outstanding of $100 million or more. --------------------------------------------------------------------------- As of June 30, 2015, 69.73% of the weight of the Revised Index components was composed of individual maturities that were part of an entire municipal bond offering with a minimum original principal amount outstanding of $100 million or more for all maturities of the offering. In addition, the total dollar amount outstanding of issues in the Revised Index was approximately $224.6 billion and the average dollar amount outstanding of issues in the Index was approximately $23.7 million. Further, the most heavily weighted component represents 2.44% of the weight of the Revised Index and the five most heavily weighted components represent 9.47% of the weight of the Revised Index.\11\ Therefore, the [[Page 55703]] Exchange believes that, notwithstanding that the Index does not satisfy the criterion in NYSE Arca Equities Rule 5.2(j)(3), Commentary .02(a)(2), the Revised Index is sufficiently broad-based to deter potential manipulation, given that it is composed of approximately 9,481 issues and 900 unique issuers. In addition, the Revised Index securities are sufficiently liquid to deter potential manipulation in that a substantial portion (69.73%) of the Revised Index weight is composed of maturities that are part of a minimum original principal amount outstanding of $100 million or more, and in view of the substantial total dollar amount outstanding and the average dollar amount outstanding of Revised Index issues, as referenced above. --------------------------------------------------------------------------- \11\ Commentary .02(a)(4) to NYSE Arca Equities Rule 5.2(j)(3) provides that no component fixed-income security (excluding Treasury Securities and GSE Securities, as defined therein) shall represent more than 30% of the weight of the index or portfolio, and the five most heavily weighted component fixed-income securities in the index or portfolio shall not in the aggregate account for more than 65% of the weight of the index or portfolio. --------------------------------------------------------------------------- In addition, the average daily notional trading volume for Revised Index components for the period from June 30, 2014 to June 30, 2015 was approximately $323.6 million and the sum of the notional trading volumes for the same period was $82.2 billion. The Revised Index value, calculated and disseminated at least once daily, as well as the components of the Revised Index and their percentage weighting, will be available from major market data vendors. In addition, the portfolio of securities held by the Fund will be disclosed daily on the Fund's Web site at www.marketvectorsetfs.com. The Exchange represents that: (1) except for Commentary .02(a)(2) to NYSE Arca Equities Rule 5.2(j)(3), the Shares of the Fund currently satisfy all of the generic listing standards under NYSE Arca Equities Rule 5.2(j)(3); (2) the continued listing standards under NYSE Arca Equities Rules 5.2(j)(3) and 5.5(g)(2) applicable to Units shall apply to the Shares; and (3) the Trust is required to comply with Rule 10A-3 under the Act \12\ for the initial and continued listing of the Shares. In addition, the Exchange represents that the Shares will comply with all other requirements applicable to Units including, but not limited to, requirements relating to the dissemination of key information such as the value of the Index and the applicable Intraday Indicative Value (``IIV''),\13\ rules governing the trading of equity securities, trading hours, trading halts, surveillance, and the Information Bulletin to Equity Trading Permit Holders (``ETP Holders''), as set forth in Exchange rules applicable to Units and prior Commission orders approving the generic listing rules applicable to the listing and trading of Units.\14\ --------------------------------------------------------------------------- \12\ 17 CFR 240.10A-3. \13\ The IIV will be widely disseminated by one or more major market data vendors at least every 15 seconds during the Exchange's Core Trading Session of 9:30 a.m. to 4:00 p.m., Eastern time. Currently, it is the Exchange's understanding that several major market data vendors display and/or make widely available IIVs taken from the Consolidated Tape Association (``CTA'') or other data feeds. \14\ See, e.g., Securities Exchange Act Release Nos. 55783 (May 17, 2007), 72 FR 29194 (May 24, 2007) (SR-NYSEArca-2007-36) (order approving NYSE Arca generic listing standards for Units based on a fixed income index); 44551 (July 12, 2001), 66 FR 37716 (July 19, 2001) (SR-PCX-2001-14) (order approving generic listing standards for Units and Portfolio Depositary Receipts); 41983 (October 6, 1999), 64 FR 56008 (October 15, 1999) (SR-PCX-98-29) (order approving rules for listing and trading of Units). --------------------------------------------------------------------------- The current value of the Revised Index will be widely disseminated by one or more major market data vendors at least once per day, as required by NYSE Arca Equities Rule 5.2(j)(3), Commentary .02 (b)(ii). The IIV for Shares of the Fund will be disseminated by one or more major market data vendors, updated at least every 15 seconds during the Exchange's Core Trading Session, as required by NYSE Arca Equities Rule 5.2(j)(3), Commentary .02 (c). The Adviser represents that there is no change to the Fund's investment objective. The Fund will continue to comply with all initial and continued listing requirements under NYSE Arca Equities Rule 5.2(j)(3). Except for the changes noted above, all other facts presented and representations made in the Release remain unchanged. All terms referenced but not defined herein are defined in the Release. 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) \15\ that an exchange have rules that are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of a free and open market and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule change is designed to prevent fraudulent and manipulative acts and practices, and 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. Under the revised Index methodology, there will be a 40% weight in the Muni High Yield/$100 Million Deal Size Index (reduced from 50% weight). In addition, the Revised Index will have a 10% weight in the Muni A-Rated Index, which is comprised of investment grade components. The Revised Index will continue to have a 25% weight in the Muni High Yield/Under $100 Million Deal Size Index and a 25% weight in the Muni Baa-Rated/ $100 Million Deal Size Index, as described in the Release. Therefore, the benchmark indexes would include a higher overall percentage in investment grade and, specifically, higher rated investment grade municipal issues, than under the current Index methodology. The Exchange believes that, as with the current Index, the Revised Index will be sufficiently broad-based to deter potential manipulation, and the Revised Index components will be sufficiently liquid to deter potential manipulation in that a substantial portion (69.73%) of the Revised Index weight will be composed of maturities that are part of a minimum original principal amount outstanding of $100 million or more. In addition, because 90% of the Revised Index weight will consist of the same benchmark index weightings as described in the Release, there will continue to be substantial total dollar amount outstanding and average dollar amount outstanding of Revised Index issues. As with the current Index, the Revised Index value, calculated and disseminated at least once daily, as well as the components of the Revised Index and their respective percentage weightings, will be available from major market data vendors. In addition, the portfolio of securities held by the Fund will be disclosed on the Fund's Web site. The IIV for Shares of the Fund will be disseminated by one or more major market data vendors, updated at least every 15 seconds during the Exchange's Core Trading Session. 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 in that the Fund will continue to comply with all initial and continued listing requirements under NYSE Arca Equities Rule 5.2(j)(3). As noted above, the Revised Index meets all such requirements except for those set forth in Commentary .02(a)(2).\16\ Specifically, as of as of June 30, 2015, 30.10% of the weight of the Revised Index components have a minimum original principal amount outstanding of $100 million or more. In addition, the total dollar [[Page 55704]] amount outstanding of issues in the Revised Index was approximately $224.6 billion and the average dollar amount outstanding of issues in the Index was approximately $23.7 million. Further, the most heavily weighted component represents 2.44% of the weight of the Revised Index and the five most heavily weighted components represent 9.47% of the weight of the Revised Index.\17\ Therefore, the Exchange believes that, notwithstanding that the Index does not satisfy the criterion in NYSE Arca Equities Rule 5.2(j)(3), Commentary .02(a)(2), the Revised Index is sufficiently broad-based to deter potential manipulation, given that it is composed of approximately 9,481issues and 900 unique issuers. In addition, the Revised Index securities are sufficiently liquid to deter potential manipulation in that a substantial portion (69.73%) of the Revised Index weight is composed of maturities that are part of a minimum original principal amount outstanding of $100 million or more, and in view of the substantial total dollar amount outstanding and the average dollar amount outstanding of Revised Index issues, as referenced above. --------------------------------------------------------------------------- \16\ See note 10, supra. \17\ See note 11, supra. --------------------------------------------------------------------------- In addition, the average daily notional trading volume for Revised Index components for the period from June 30, 2014 to June 30, 2015 was approximately $323.6 million and the sum of the notional trading volumes for the same period was $82.2 billion. The Revised Index value, calculated and disseminated at least once daily, as well as the components of the Revised Index and their percentage weighting, will be available from major market data vendors. In addition, the portfolio of securities held by the Fund will be disclosed daily on the Fund's Web site at www.marketvectorsetfs.com. The Adviser represents that there is no change to the Fund's investment objective. Except for the changes noted above, all other representations made in the Release remain unchanged. 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 proposed changes will accommodate continued listing and trading of an issue of Managed Fund Shares that holds municipal securities. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register, or such later date up to 90 days from the date of publication (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) by order approve or disapprove the proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be 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-NYSEArca-2015-74 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2015-74. 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 Section, 100 F Street NE., Washington, DC 20549 on official business days between 10 a.m. and 3 p.m. Copies of the filing will also be available for inspection and copying at the NYSE's principal office and on its Internet Web site at www.nyse.com. 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- NYSEArca-2015-74 and should be submitted on or before October 7, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-23217 Filed 9-15-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices 55701
(‘‘Approval Order’’) the Capital Plan on SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
March 6, 2015.2 COMMISSION Statement of the Purpose of, and the
BATS Global Markets, Inc. (‘‘BATS’’), Statutory Basis for, the Proposed Rule
BOX Options Exchange LLC (‘‘BOX’’), [Release No. 34–75888; File No. SR– Change
KCG Holdings, Inc. (‘‘KCG’’), Miami NYSEArca–2015–74] 1. Purpose
International Securities Exchange, LLC
(‘‘MIAX’’), and Susquehanna The Commission has approved listing
Self-Regulatory Organizations; NYSE
International Group, LLP (‘‘SIG’’) and trading on the Exchange of shares
Arca, Inc.; Notice of Filing of Proposed
(collectively ‘‘Petitioners’’) each filed (‘‘Shares’’) of the Market Vectors Short
Rule Regarding a Change to the High Yield Municipal Index ETF
petitions for review of the Approval Reference Index Relating to the Market
Order, challenging the action taken by (‘‘Fund’’) under NYSE Arca Equities
Vectors Short High Yield Municipal Rule 5.2(j)(3), which governs the listing
delegated authority.3 Index ETF
The Commission finds that the and trading of Investment Company
Petitioners are aggrieved by the September 10, 2015.
Units (‘‘Units’’).4 Shares of the Fund are
Approval Order and pursuant to Rule currently listed and traded on the
Pursuant to Section 19(b)(1) 1 of the Exchange.
431 of the Rules of Practice, the
Securities Exchange Act of 1934 The Fund is a series of the Market
Petitioners’ petitions for review of the
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Vectors ETF Trust. Van Eck Associates
Approval Order are granted. Further, the
notice is hereby given that, on August Corporation is the investment adviser
Commission hereby establishes that any
26, 2015, NYSE Arca, Inc. (‘‘Exchange’’ (‘‘Adviser’’) for the Fund. Van Eck
party or other person may file a written
or ‘‘NYSE Arca’’) filed with the Securities Corporation is the Fund’s
statement in support of or in opposition
Securities and Exchange Commission distributor (‘‘Distributor’’). Van Eck
to the Approval Order on or before Associates Corporation also is the
October 7, 2015. This will provide an (‘‘Commission’’) the proposed rule
change as described in Items I and II administrator for the Fund (the
opportunity for the Commission to ‘‘Administrator’’). The Bank of New
receive additional comment and below, which Items have been prepared
by the self-regulatory organization. The York Mellon is the custodian of the
information to help it more fully assess Fund’s assets and provides transfer
the issues raised. The Commission has Commission is publishing this notice to
agency and fund accounting services to
issued a separate order addressing the solicit comments on the proposed rule
the Fund.
automatic stay.4 change from interested persons. As described in the Release, the
For the reasons stated above, it is investment objective of the Fund is to
I. Self-Regulatory Organization’s
hereby: seek to replicate as closely as possible,
Statement of the Terms of Substance of
Ordered that the petitions of BATS, before fees and expenses, the price and
the Proposed Rule Change
BOX, KCG, MIAX, and SIG for review of yield performance of the Barclays
the staff’s action in approving by The Exchange proposes to reflect a Municipal High Yield Short Duration
delegated authority File No. SR–OCC– change to the reference index relating to Index (the ‘‘Short High Yield Index’’ or
2015–02 5 are GRANTED; and the Market Vectors Short High Yield ‘‘Index’’).5 The Index is a market size
It is further ordered that any party or Municipal Index ETF. Shares of the weighted index composed of publicly
other person may file a statement in Fund are currently listed and traded on traded municipal bonds that cover the
support of or in opposition to the action the Exchange under NYSE Arca Equities U.S. dollar denominated high yield
made pursuant to delegated authority on Rule 5.2(j)(3). The text of the proposed short-term tax-exempt bond market. The
or before October 7, 2015. majority of the Index’s constituents are
rule change is available on the
The order approving such proposed from the revenue sector, with some
Exchange’s Web site at www.nyse.com,
rule change shall remain in effect. constituents being from the general
at the principal office of the Exchange,
By the Commission. obligation sector. The revenue sector is
and at the Commission’s Public
Robert W. Errett, divided into industry sectors that
Reference Room.
Deputy Secretary. 4 See Securities Exchange Act Release No. 71232
[FR Doc. 2015–23240 Filed 9–15–15; 8:45 am]
II. Self-Regulatory Organization’s
(January 3, 2014), 79 FR 1662 (January 9, 2014 (SR–
Statement of the Purpose of, and NYSEArca–2013–118) (order approving listing and
BILLING CODE P
Statutory Basis for, the Proposed Rule trading of shares of the Market Vectors Short High
2 Order Approving Proposed Rule Change
Change Yield Municipal Index ETF) (‘‘Order’’). See also,
Securities Exchange Act Release No. 70871
Concerning a Proposed Capital Plan for Raising (November 14, 2013), 78 FR 69503 (November 19,
Additional Capital That Would Support the Options
In its filing with the Commission, the
2013) (SR–NYSEArca–2013–118) (notice of
Clearing Corporation’s Function as a Systemically self-regulatory organization included proposed rule change relating to listing and trading
Important Financial Market Utility, Securities statements concerning the purpose of, of shares of the Market Vectors Short High Yield
Exchange Act Release No. 74452 (March 6, 2015), and basis for, the proposed rule change Municipal Index ETF) (‘‘Notice’’ and, together with
80 FR 13058 (March 12, 2015) (SR–OCC–2015–02). the Order, the ‘‘Release’’).
The Capital Plan was previously filed as an advance and discussed any comments it received 5 As described in the Release, the Exchange
notice pursuant to Section 806(e)(1) of the Payment, on the proposed rule change. The text submitted a proposed rule change to permit listing
Clearing, and Settlement Supervision Act of 2010. of those statements may be examined at and trading of Shares of the Fund because the Index
See 12 U.S.C. 5465(e)(1). The Commission issued a did not meet all of the ‘‘generic’’ listing
notice of no objection to the advance notice on the places specified in Item IV below.
asabaliauskas on DSK7TPTVN1PROD with NOTICES
requirements of Commentary .02(a) to NYSE Arca
February 26, 2015. See Securities Exchange Act The Exchange has prepared summaries, Equities Rule 5.2(j)(3) applicable to the listing of
Release No. 74387 (February 26, 2015), 80 FR 12215 set forth in sections A, B, and C below, Units based on fixed income securities indexes. The
(March 6, 2015) (SR–OCC–2014–813).
3 Under Commission Rule of Practice 430 any
of the most significant parts of such Index met all such requirements except for those set
forth in Commentary .02(a)(2). Commentary
aggrieved party may seek review of an action made statements. .02(a)(2) to NYSE Arca Equities Rule 5.2(j)(3)
by delegated authority. See 17 CFR 201.430. provides that components that in the aggregate
4 See Order Discontinuing the Automatic Stay,
1 15
account for at least 75% of the weight of the index
Securities Exchange Act Release No. 75886 U.S.C. 78s(b)(1).
or portfolio each shall have a minimum original
2 15 U.S.C. 78a.
(September 10, 2015). principal amount outstanding of $100 million or
5 See supra note 2. 3 17 CFR 240.19b–4. more.
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![55704 Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices
amount outstanding of issues in the C. Self-Regulatory Organization’s public in accordance with the
Revised Index was approximately Statement on Comments on the provisions of 5 U.S.C. 552, will be
$224.6 billion and the average dollar Proposed Rule Change Received From available for Web site viewing and
amount outstanding of issues in the Members, Participants, or Others printing in the Commission’s Public
Index was approximately $23.7 million. No written comments were solicited Reference Section, 100 F Street NE.,
Further, the most heavily weighted or received with respect to the proposed Washington, DC 20549 on official
component represents 2.44% of the rule change. business days between 10 a.m. and 3
weight of the Revised Index and the five p.m. Copies of the filing will also be
most heavily weighted components III. Date of Effectiveness of the available for inspection and copying at
represent 9.47% of the weight of the Proposed Rule Change and Timing for the NYSE’s principal office and on its
Revised Index.17 Therefore, the Commission Action Internet Web site at www.nyse.com. All
Exchange believes that, notwithstanding Within 45 days of the date of comments received will be posted
that the Index does not satisfy the publication of this notice in the Federal without change; the Commission does
criterion in NYSE Arca Equities Rule Register, or such later date up to 90 not edit personal identifying
5.2(j)(3), Commentary .02(a)(2), the days from the date of publication (i) as information from submissions. You
Revised Index is sufficiently broad- the Commission may designate if it should submit only information that
based to deter potential manipulation, finds such longer period to be you wish to make available publicly. All
given that it is composed of appropriate and publishes its reasons submissions should refer to File
approximately 9,481issues and 900 for so finding or (ii) as to which the self- Number SR–NYSEArca-2015–74 and
unique issuers. In addition, the Revised regulatory organization consents, the should be submitted on or before
Index securities are sufficiently liquid to Commission will: October 7, 2015.
deter potential manipulation in that a (A) by order approve or disapprove For the Commission, by the Division of
substantial portion (69.73%) of the the proposed rule change, or Trading and Markets, pursuant to delegated
Revised Index weight is composed of (B) institute proceedings to determine authority.18
maturities that are part of a minimum whether the proposed rule change Robert W. Errett,
original principal amount outstanding should be disapproved. Deputy Secretary.
of $100 million or more, and in view of IV. Solicitation of Comments [FR Doc. 2015–23217 Filed 9–15–15; 8:45 am]
the substantial total dollar amount BILLING CODE 8011–01–P
outstanding and the average dollar Interested persons are invited to
amount outstanding of Revised Index submit written data, views, and
issues, as referenced above. arguments concerning the foregoing, SMALL BUSINESS ADMINISTRATION
including whether the proposed rule
In addition, the average daily notional change is consistent with the Act. [Disaster Declaration #14371 and #14372]
trading volume for Revised Index Comments may be submitted by any of
components for the period from June 30, the following methods: Louisiana Disaster Number LA–00009
2014 to June 30, 2015 was AGENCY: U.S. Small Business
approximately $323.6 million and the Electronic Comments
Administration.
sum of the notional trading volumes for • Use the Commission’s Internet ACTION: Amendment 2.
the same period was $82.2 billion. comment form (http://www.sec.gov/
The Revised Index value, calculated rules/sro.shtml); or SUMMARY: This is an amendment of the
and disseminated at least once daily, as • Send an email to rule-comments@ Presidential declaration of a major
well as the components of the Revised sec.gov. Please include File Number SR– disaster for Public Assistance Only for
Index and their percentage weighting, NYSEArca-2015–74 on the subject line. the State of LOUISIANA (FEMA–4228–
will be available from major market data Paper Comments DR), dated 07/13/2015.
vendors. In addition, the portfolio of Incident: Severe Storms and Flooding.
securities held by the Fund will be • Send paper comments in triplicate Incident Period: 05/18/2015 through
disclosed daily on the Fund’s Web site to Brent J. Fields, Secretary, Securities 06/20/2015.
at www.marketvectorsetfs.com. and Exchange Commission, 100 F Street Effective Date: 09/04/2015.
NE., Washington, DC 20549–1090. Physical Loan Application Deadline
The Adviser represents that there is Date: 09/11/2015.
All submissions should refer to File
no change to the Fund’s investment Economic Injury (EIDL) Loan
Number SR–NYSEArca-2015–74. This
objective. Except for the changes noted Application Deadline Date: 04/13/2016.
file number should be included on the
above, all other representations made in ADDRESSES: Submit completed loan
subject line if email is used. To help the
the Release remain unchanged. applications to: U.S. Small Business
Commission process and review your
B. Self-Regulatory Organization’s comments more efficiently, please use Administration, Processing and
Statement on Burden on Competition only one method. The Commission will Disbursement Center, 14925 Kingsport
post all comments on the Commission’s Road, Fort Worth, TX 76155.
The Exchange does not believe that Internet Web site (http://www.sec.gov/ FOR FURTHER INFORMATION CONTACT: A.
the proposed rule change will impose rules/sro.shtml). Copies of the Escobar, Office of Disaster Assistance,
any burden on competition that is not submission, all subsequent U.S. Small Business Administration,
asabaliauskas on DSK7TPTVN1PROD with NOTICES
necessary or appropriate in furtherance amendments, all written statements 409 3rd Street SW., Suite 6050,
of the purposes of the Act. The with respect to the proposed rule Washington, DC 20416.
proposed changes will accommodate change that are filed with the SUPPLEMENTARY INFORMATION: The notice
continued listing and trading of an issue Commission, and all written of the President’s major disaster
of Managed Fund Shares that holds communications relating to the declaration for Private Non-Profit
municipal securities. proposed rule change between the organizations in the State of
Commission and any person, other than
17 See note 11, supra. those that may be withheld from the 18 17 CFR 200.30–3(a)(12).
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Document Created: 2018-02-26 10:16:49
Document Modified: 2018-02-26 10:16:49
| 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 55701 |
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