80 FR 70857 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing of Amendments Nos. 1 and 2 and Order Granting Accelerated Approval of a Proposed Rule Change to List and Trade Shares of the ProShares Managed Futures Strategy ETF of the ProShares Trust Under BATS Rule 14.11 on BATS Exchange, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 220 (November 16, 2015)
Federal Register Volume 80, Issue 220 (November 16, 2015)
| Page Range | 70857-70860 | |
| FR Document | 2015-28863 |
[Federal Register Volume 80, Number 220 (Monday, November 16, 2015)] [Notices] [Pages 70857-70860] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28863] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76394; File No. SR-BATS-2015-56] Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing of Amendments Nos. 1 and 2 and Order Granting Accelerated Approval of a Proposed Rule Change to List and Trade Shares of the ProShares Managed Futures Strategy ETF of the ProShares Trust Under BATS Rule 14.11 on BATS Exchange, Inc. November 9, 2015. I. Introduction On July 30, 2015, BATS Exchange, Inc. (``Exchange'' or ``BATS'') 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 ProShares Managed Futures Strategy ETF (``Fund'') of the ProShares Trust (``Trust'') under BATS Rule 14.11(i). The proposed rule change was published for comment in the Federal Register on August 17, 2015.\4\ On August 19, 2015, the Exchange filed Amendment No. 1 to the proposed rule change, which replaced the proposed rule change in its entirety.\5\ On September 4, 2015, the Exchange filed Amendment No. 2 to the proposed rule change, which replaced the proposed rule change in its entirety.\6\ The Commission received no comments on the proposed rule change. The Commission is publishing this notice to solicit comments on Amendments Nos. 1 and 2 from interested persons, and is approving the proposed rule change, as modified by Amendments Nos. 1 and 2, on an accelerated basis. --------------------------------------------------------------------------- \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. 75664 (August 11, 2015), 80 FR 49288. \5\ In Amendment No. 1, the Exchange supplemented the information that will be included in the Fund's Disclosed Portfolio, clarified the investments that the Fund may hold, clarified how certain of the Fund's assets will be valued in calculating the Fund's net asset value (``NAV''), and provided additional information regarding the availability of price information for the assets that the Fund may hold. All amendments to the proposed rule change are available at: http://www.sec.gov/comments/sr-bats-2015-56/bats201556-1.pdf. \6\ In Amendment No. 2, the Exchange modified the description of the swaps that the Fund may hold and the availability of intraday price information for assets that the Fund may hold. --------------------------------------------------------------------------- II. Description of the Proposal The Exchange proposes to list and trade the Shares under BATS Rule 14.11(i), which governs the listing and trading of Managed Fund Shares on the Exchange. The Exchange deems the Shares to be equity securities, thus rendering trading in the Shares subject to the Exchange's existing rules governing the trading of equity securities. The Shares will be offered by the Trust, which is established as a Delaware statutory trust. The Trust is registered with the Commission as an open-end investment company and has filed a registration statement on behalf of the Fund on Form N-1A (``Registration Statement'') with the Commission.\7\ ProShare Advisors LLC is the investment adviser (``Adviser'') to the Fund. JPMorgan Chase Bank, National Association is the [[Page 70858]] administrator, custodian, fund account agent, index receipt agent and transfer agent for the Trust. SEI Investments Distribution Co. serves as the distributor for the Trust. The Exchange represents that the Adviser is not a registered broker-dealer but is affiliated with a broker-dealer, and in the future may affiliate with other broker- dealers, and has implemented a fire wall with respect to such broker- dealer regarding access to information concerning the composition and/ or changes to the Fund's portfolio.\8\ The Exchange further represents that Adviser personnel who make decisions regarding the Fund's portfolio are subject to procedures designed to prevent the use and dissemination of material nonpublic information regarding the Fund's portfolio.\9\ --------------------------------------------------------------------------- \7\ See Registration Statement on Form N-1A for the Trust, dated May 31, 2013 (File Nos. 333-98922 and 811-21114). See also Investment Company Act Release No. 30562 (June 18, 2013) (File No. 812-14041). \8\ See Amendment No. 2, supra note 6, at 29. \9\ See id. at 6; see also BATS Rule 14.11(i)(7). The Exchange also represents that in the event that (a) the Adviser becomes registered as a broker-dealer or newly affiliated with another 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 or such broker-dealer affiliate, as 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. --------------------------------------------------------------------------- The Exchange's Description of the Fund \10\ --------------------------------------------------------------------------- \10\ The Commission notes that additional information regarding the Trust, the Fund, and the Shares, investment strategies, risks, NAV calculation, creation and redemption procedures, fees and expenses, portfolio holdings disclosure policies, distributions, and taxes, among other information, is included in the Amendment No. 2 and Registration Statement. See supra notes 6 and 8, respectively. --------------------------------------------------------------------------- The Fund will generally seek exposure to the commodity and financial markets included in the S&P[supreg] Strategic Futures Index (``Index''),\11\ but the Fund is not an index tracking ETF and will generally seek to enhance its performance by actively selecting investments for the Fund with varying maturities from the underlying components of the Index. --------------------------------------------------------------------------- \11\ The Index seeks to reflect trends (in either direction) in the commodity, foreign currency and fixed income markets by taking long or short positions in the related futures contracts. --------------------------------------------------------------------------- Under normal market conditions,\12\ the Fund will invest at least 80% of its assets directly, or indirectly through ProShares Cayman Trust I (``Subsidiary''),\13\ a wholly-owned subsidiary of the Fund, in the exchange-listed futures contracts included in the Index, which include commodity futures, currency futures, and U.S. Treasury futures (collectively, ``Futures Contracts''). The Fund may also invest in swaps \14\ if the market for a specific Futures Contract experiences emergencies (e.g., natural disaster, terrorist attack, or an act of God) or disruptions (e.g., a trading halt or a flash crash) that would prevent the Fund from obtaining the appropriate amount of investment exposure to the affected Futures Contracts or other futures contracts directly. --------------------------------------------------------------------------- \12\ The term ``under normal market conditions'' includes, but is not limited to, the absence of extreme volatility or trading halts in the fixed income markets, futures 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 manmade disaster, act of God, armed conflict, act of terrorism, riot or labor disruption or any similar intervening circumstance. \13\ The Subsidiary will be advised by the Adviser and will have the same investment objective as the Fund. The Fund's investment in the Subsidiary is intended to provide the Fund with exposure to markets (in general, the commodity markets) within the limits of current federal income tax laws applicable to investment companies such as the Fund, which limit the ability of investment companies to invest directly in certain Futures Contracts. Generally, references to the Fund's investments may also be deemed to include the Fund's indirect investments through the Subsidiary. The Fund will invest up to 25% of its total assets in the Subsidiary. \14\ The Fund may invest in swap agreements whose value is derived from the level of the Benchmark, one or more Futures Contracts or from the reference assets underlying one or more of such Futures Contracts. --------------------------------------------------------------------------- The Fund may also invest up to 100% of its assets in cash or cash equivalents such as U.S. Treasury securities or other high credit quality short-term fixed-income or similar securities (including shares of money market funds, bank deposits, bank money market accounts, certain variable rate-demand notes, and repurchase agreements collateralized by government securities) for direct investment or as collateral for the Futures Contracts or swap agreements. The Fund will use the fixed-income securities as investments and to meet asset coverage tests resulting from the Subsidiary's derivative exposure on a day-to-day basis. 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.\15\ In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Exchange Act,\16\ 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. --------------------------------------------------------------------------- \15\ 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). \16\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission also 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,\17\ 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 will be available on the facilities of the Consolidated Tape Association (``CTA''). 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 generally published daily in the print and online financial press. The Web site for the Fund will include a form of the prospectus for the Fund and additional data relating to NAV and other applicable quantitative information. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78k-1(a)(1)(C)(iii). --------------------------------------------------------------------------- Intraday price quotations on repurchase agreements and U.S. Government securities of the type held by the Fund are available from major broker-dealer firms and from third-parties, which may provide prices free with a time delay, or ``live'' with a paid fee. Major broker-dealer firms will also provide intraday quotes on swaps of the type held by the Fund.\18\ Pricing information related to money market fund shares will be available through issuer Web sites and publicly available quotation services.\19\ For Futures Contracts, such intraday information is available directly from the applicable listing exchange. Intraday price information is also available through subscription services, such as Bloomberg and Thomson Reuters, which can be accessed by authorized participants and other investors.\20\ --------------------------------------------------------------------------- \18\ See Amendment No. 2, supra note 6, at 25. \19\ See id. \20\ See id. at 31. --------------------------------------------------------------------------- On each business day, before commencement of trading in Shares during Regular Trading Hours on the Exchange, the Fund will disclose on its [[Page 70859]] Web site the identities and quantities of the portfolio Futures Contracts and other assets (``Disclosed Portfolio'') held by the Fund that will form the basis for the Fund's calculation of NAV at the end of the business day.\21\ In addition, for the Fund, an estimated value, defined in BATS Rule 14.11(i)(3)(C) as the ``Intraday Indicative Value,'' that reflects an estimated intraday value of the Fund's portfolio, will be disseminated. The Intraday Indicative Value 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 at least every 15 seconds during the Exchange's Regular Trading Hours.\22\ --------------------------------------------------------------------------- \21\ The Disclosed Portfolio will include, as applicable: ticker symbol or other identifier, a description of the holding, identity of the asset upon which the derivative is based, the strike price for any options, the quantity of each security or other asset held as measured by select metrics, maturity date, coupon rate, effective date, market value and percentage weight of the holding in the portfolio. The Web site and information will be publicly available at no charge. 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''). 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. \22\ It is the Exchange's current understanding that several major market data vendors display and/or make widely available Intraday Indicative Values published via the CTA or other data feeds. See id. at 24, n.20. --------------------------------------------------------------------------- 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. The Commission notes that 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.\23\ The Exchange will halt trading in the Shares under the conditions specified in BATS Rule 11.18. Trading may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in the Shares inadvisable. These may include: (1) The extent to which trading is not occurring in the Futures Contracts and other assets composing 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. Trading in the Shares also will be subject to Rule 14.11(i)(4)(B)(iv), which sets forth circumstances under which Shares of the Fund may be halted. The Exchange prohibits the distribution of material non-public information by its employees. The Exchange represents that the Adviser is not a registered broker-dealer, but is affiliated with a broker-dealer, and in the future may affiliate with other broker-dealers, and has implemented a fire wall with respect to such broker-dealer regarding access to information concerning the composition and/or changes to the Fund's portfolio.\24\ The Exchange further represents that Adviser personnel who make decisions regarding the Fund's portfolio are subject to procedures designed to prevent the use and dissemination of material nonpublic information regarding the Fund's portfolio.\25\ In addition, the Commission notes that, consistent with BATS Rule 14.11(i)(4)(B)(ii)(b), the Reporting Authority, as defined in BATS Rule 14.11(i)(3)(D), must implement and maintain, or be subject to, procedures designed to prevent the use and dissemination of material, non-public information regarding the actual components of the portfolio. The Exchange may obtain information regarding trading in the Shares and the underlying shares in exchange traded equity securities via the Intermarket Surveillance Group (``ISG''), from other exchanges that are members or affiliates of the ISG, or with which the Exchange has entered into a comprehensive surveillance sharing agreement.\26\ In addition, the Exchange is able to access, as needed, trade information for certain fixed income instruments reported to FINRA's Trade Reporting and Compliance Engine. --------------------------------------------------------------------------- \23\ See id. at 25. \24\ See id. at 29. \25\ See id. at 6. \26\ For a list of the current members of ISG, see www.isgportal.org. All of the Futures Contracts held by the Fund will trade on markets that are a member of ISG or with which the Exchange has in place a comprehensive surveillance sharing agreement. See id. at 27, n.22. --------------------------------------------------------------------------- In support of this proposal, the Exchange has made the following representations: (1) The Shares will be subject to BATS Rule 14.11(i), which sets forth the initial and continued listing criteria applicable to Managed Fund Shares. (2) The Exchange has appropriate rules to facilitate transactions in the Shares during all trading sessions. (3) Trading of the Shares through the Exchange will be subject to the Exchange's surveillance procedures for derivative products, including Managed Fund Shares, and that these procedures are adequate to properly monitor the trading of the Shares on the Exchange during all trading sessions and to deter and detect violations of Exchange rules and the applicable federal securities laws. (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) BATS Rule 3.7, which imposes suitability obligations on Exchange members with respect to recommending transactions in the Shares to customers; (c) how information regarding the Intraday Indicative Value is disseminated; (d) the risks involved in trading the Shares during the Pre-Opening \27\ and After Hours Trading Sessions \28\ 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. --------------------------------------------------------------------------- \27\ The Pre-Opening Session is from 8:00 a.m. to 9:30 a.m. Eastern Time. \28\ The After Hours Trading Session is from 4:00 p.m. to 5:00 p.m. Eastern Time. --------------------------------------------------------------------------- (5) For initial and/or continued listing, the Fund must be in compliance with Rule 10A-3 under the Act.\29\ --------------------------------------------------------------------------- \29\ See 17 CFR 240.10A-3. --------------------------------------------------------------------------- (6) As it relates to futures contracts, all Futures Contracts in the Disclosed Portfolio for the Fund will trade on markets that are a member of ISG or with which the Exchange has in place a comprehensive surveillance sharing agreement. (7) 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 Amendments Nos. 1 and 2, is consistent with Section 6(b)(5) of the Act \30\ and the rules and regulations thereunder applicable to a national securities exchange. --------------------------------------------------------------------------- \30\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- IV. Solicitation of Comments on Amendments Nos. 1 and 2 Interested persons are invited to submit written data, views, and [[Page 70860]] arguments concerning whether Amendments Nos. 1 and 2 are consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-BATS-2015-56 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BATS-2015-56. 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 the Exchange. 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-BATS-2015-56 and should be submitted on or before December 7, 2015. V. Accelerated Approval of Proposed Rule Change as Modified by Amendments Nos. 1 and 2 The Commission finds good cause to approve the proposed rule change, as modified by Amendments Nos. 1 and 2, prior to the thirtieth day after the date of publication of notice in the Federal Register. No comments were received after publication of the Notice. Amendments Nos. 1 and 2 only supplement the proposed rule change by clarifying certain points and providing additional detail. Therefore, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,\31\ to approve the proposed rule change, as modified by Amendments Nos. 1 and 2 on an accelerated basis. --------------------------------------------------------------------------- \31\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act,\32\ that the proposed rule change (SR-BATS-2015-56), as modified by Amendment Nos. 1 and 2, is hereby approved on an accelerated basis. --------------------------------------------------------------------------- \32\ 15 U.S.C. 78s(b)(2). \33\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\33\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-28863 Filed 11-13-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Notices 70857
competition in that the $500.00 charge rules/sro.shtml). Copies of the thereunder,3 a proposed rule change to
and the provision of pass through submission, all subsequent list and trade shares (‘‘Shares’’) of the
charges from other market centers amendments, all written statements ProShares Managed Futures Strategy
proposed herein will apply equally to with respect to the proposed rule ETF (‘‘Fund’’) of the ProShares Trust
all MIAX Members submitting appeals change that are filed with the (‘‘Trust’’) under BATS Rule 14.11(i).
pursuant to Rule 521(l). Commission, and all written The proposed rule change was
communications relating to the published for comment in the Federal
C. Self-Regulatory Organization’s Register on August 17, 2015.4 On
proposed rule change between the
Statement on Comments on the August 19, 2015, the Exchange filed
Commission and any person, other than
Proposed Rule Change Received From Amendment No. 1 to the proposed rule
those that may be withheld from the
Members, Participants, or Others change, which replaced the proposed
public in accordance with the
Written comments were neither provisions of 5 U.S.C. 552, will be rule change in its entirety.5 On
solicited nor received. available for Web site viewing and September 4, 2015, the Exchange filed
printing in the Commission’s Public Amendment No. 2 to the proposed rule
III. Date of Effectiveness of the
Reference Room, 100 F Street NE., change, which replaced the proposed
Proposed Rule Change and Timing for
Washington, DC 20549 on official rule change in its entirety.6 The
Commission Action
business days between the hours of Commission received no comments on
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of such the proposed rule change. The
effective pursuant to Section filing also will be available for Commission is publishing this notice to
19(b)(3)(A)(ii) of the Act,9 and Rule inspection and copying at the principal solicit comments on Amendments Nos.
19b–4(f)(2) 10 thereunder. At any time office of the Exchange. All comments 1 and 2 from interested persons, and is
within 60 days of the filing of the received will be posted without change; approving the proposed rule change, as
proposed rule change, the Commission the Commission does not edit personal modified by Amendments Nos. 1 and 2,
summarily may temporarily suspend identifying information from on an accelerated basis.
such rule change if it appears to the submissions. You should submit only
Commission that such action is II. Description of the Proposal
information that you wish to make
necessary or appropriate in the public available publicly. All submissions The Exchange proposes to list and
interest, for the protection of investors, should refer to File Number SR–MIAX– trade the Shares under BATS Rule
or otherwise in furtherance of the 2015–62, and should be submitted on or 14.11(i), which governs the listing and
purposes of the Act. If the Commission trading of Managed Fund Shares on the
before December 7, 2015.
takes such action, the Commission shall Exchange. The Exchange deems the
institute proceedings to determine For the Commission, by the Division of Shares to be equity securities, thus
Trading and Markets, pursuant to delegated rendering trading in the Shares subject
whether the proposed rule should be authority.11
approved or disapproved. to the Exchange’s existing rules
Robert W. Errett, governing the trading of equity
IV. Solicitation of Comments Deputy Secretary. securities.
Interested persons are invited to [FR Doc. 2015–28861 Filed 11–13–15; 8:45 am] The Shares will be offered by the
submit written data, views, and BILLING CODE 8011–01–P Trust, which is established as a
arguments concerning the foregoing, Delaware statutory trust. The Trust is
including whether the proposed rule registered with the Commission as an
change is consistent with the Act. SECURITIES AND EXCHANGE open-end investment company and has
Comments may be submitted by any of COMMISSION filed a registration statement on behalf
the following methods: of the Fund on Form N–1A
[Release No. 34–76394; File No. SR–BATS– (‘‘Registration Statement’’) with the
Electronic Comments 2015–56]
Commission.7 ProShare Advisors LLC is
• Use the Commission’s Internet Self-Regulatory Organizations; BATS the investment adviser (‘‘Adviser’’) to
comment form (http://www.sec.gov/ Exchange, Inc.; Notice of Filing of the Fund. JPMorgan Chase Bank,
rules/sro.shtml); or Amendments Nos. 1 and 2 and Order National Association is the
• Send an email to rule-comments@
Granting Accelerated Approval of a
sec.gov. Please include File Number SR– 3 17 CFR 240.19b–4.
Proposed Rule Change to List and
MIAX–2015–62 on the subject line. 4 See Securities Exchange Act Release No. 75664
Trade Shares of the ProShares (August 11, 2015), 80 FR 49288.
Paper Comments Managed Futures Strategy ETF of the 5 In Amendment No. 1, the Exchange
• Send paper comments in triplicate ProShares Trust Under BATS Rule supplemented the information that will be included
14.11 on BATS Exchange, Inc. in the Fund’s Disclosed Portfolio, clarified the
to Brent J. Fields, Secretary, Securities investments that the Fund may hold, clarified how
and Exchange Commission, 100 F Street November 9, 2015. certain of the Fund’s assets will be valued in
NE., Washington, DC 20549–1090. calculating the Fund’s net asset value (‘‘NAV’’), and
All submissions should refer to File I. Introduction provided additional information regarding the
availability of price information for the assets that
Number SR–MIAX–2015–62. This file On July 30, 2015, BATS Exchange, the Fund may hold. All amendments to the
number should be included on the Inc. (‘‘Exchange’’ or ‘‘BATS’’) filed with proposed rule change are available at: http://
the Securities and Exchange www.sec.gov/comments/sr-bats-2015–56/
subject line if email is used. To help the bats201556–1.pdf.
Commission process and review your Commission (‘‘Commission’’), pursuant 6 In Amendment No. 2, the Exchange modified
tkelley on DSK3SPTVN1PROD with NOTICES
comments more efficiently, please use to Section 19(b)(1) 1 of the Securities the description of the swaps that the Fund may
only one method. The Commission will Exchange Act of 1934 (‘‘Act’’ or hold and the availability of intraday price
post all comments on the Commission’s ‘‘Exchange Act’’) 2 and Rule 19b–4 information for assets that the Fund may hold.
7 See Registration Statement on Form N–1A for
Internet Web site (http://www.sec.gov/ the Trust, dated May 31, 2013 (File Nos. 333–98922
11 17 CFR 200.30–3(a)(12). and 811–21114). See also Investment Company Act
9 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1). Release No. 30562 (June 18, 2013) (File No. 812–
10 17 CFR 240.19b–4(f)(2). 2 15 U.S.C. 78a. 14041).
VerDate Sep<11>2014 19:47 Nov 13, 2015 Jkt 238001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 E:\FR\FM\16NON1.SGM 16NON1](https://thefederalregister.org/doc/80_FR_71077/page/1.svg)
![70860 Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Notices
arguments concerning whether Amendments Nos. 1 and 2 only the Exchange, effective November 2,
Amendments Nos. 1 and 2 are supplement the proposed rule change 2015. The text of the proposed rule
consistent with the Act. Comments may by clarifying certain points and change is available on the Exchange’s
be submitted by any of the following providing additional detail. Therefore, Web site at www.nyse.com, at the
methods: the Commission finds good cause, principal office of the Exchange, and at
Electronic Comments pursuant to Section 19(b)(2) of the the Commission’s Public Reference
Act,31 to approve the proposed rule Room.
• Use the Commission’s Internet change, as modified by Amendments
comment form (http://www.sec.gov/ II. Self-Regulatory Organization’s
Nos. 1 and 2 on an accelerated basis.
rules/sro.shtml); or Statement of the Purpose of, and
• Send an email to rule-comments@ VI. Conclusion Statutory Basis for, the Proposed Rule
sec.gov. Please include File Number SR– It is therefore ordered, pursuant to Change
BATS–2015–56 on the subject line. Section 19(b)(2) of the Exchange Act,32 In its filing with the Commission, the
Paper Comments that the proposed rule change (SR– self-regulatory organization included
BATS–2015–56), as modified by statements concerning the purpose of,
• Send paper comments in triplicate Amendment Nos. 1 and 2, is hereby and basis for, the proposed rule change
to Secretary, Securities and Exchange approved on an accelerated basis. and discussed any comments it received
Commission, 100 F Street NE., on the proposed rule change. The text
Washington, DC 20549–1090. For the Commission, by the Division of
Trading and Markets, pursuant to delegated of those statements may be examined at
All submissions should refer to File authority.33 the places specified in Item IV below.
Number SR–BATS–2015–56. This file The Exchange has prepared summaries,
Robert W. Errett,
number should be included on the set forth in sections A, B, and C below,
subject line if email is used. To help the Deputy Secretary.
[FR Doc. 2015–28863 Filed 11–13–15; 8:45 am]
of the most significant parts of such
Commission process and review your statements.
comments more efficiently, please use BILLING CODE 8011–01–P
only one method. The Commission will A. Self-Regulatory Organization’s
post all comments on the Commission’s Statement of the Purpose of, and the
Internet Web site (http://www.sec.gov/ SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
rules/sro.shtml). Copies of the COMMISSION Change
submission, all subsequent [Release No. 34–76400; File No. SR–NYSE– 1. Purpose
amendments, all written statements 2015–56]
with respect to the proposed rule The Exchange proposes to amend its
change that are filed with the Self-Regulatory Organizations; New Price List to increase certain fees that
Commission, and all written York Stock Exchange LLC; Notice of remove liquidity from the Exchange,
communications relating to the Filing and Immediate Effectiveness of effective November 2, 2015. The
proposed rule change between the Proposed Rule Change Amending Its proposed change would only apply to
Commission and any person, other than Price List to Modify Certain Fees for transactions in securities priced $1.00 or
those that may be withheld from the Transactions that Remove Liquidity more.
public in accordance with the from the Exchange In particular, the Exchange currently
provisions of 5 U.S.C. 552, will be charges $0.0027 per share for non-Floor
November 9, 2015. broker transactions that remove
available for Web site viewing and
Pursuant to Section 19(b)(1) 1 of the liquidity from the Exchange, including
printing in the Commission’s Public
Securities Exchange Act of 1934 those of Designated Market Makers
Reference Room, 100 F Street NE.,
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3 (‘‘DMM’’). The Exchange proposes to
Washington, DC 20549, on official
notice is hereby given that, on increase this fee to $0.00275 per share.
business days between the hours of
November 2, 2015, New York Stock Similarly, the Exchange currently
10:00 a.m. and 3:00 p.m. Copies of the
Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) charges $0.0027 per share for all
filing also will be available for
filed with the Securities and Exchange Midpoint Passive Liquidity (‘‘MPL’’)
inspection and copying at the principal
Commission (‘‘Commission’’) the Orders 4 that remove liquidity from the
office of the Exchange. All comments
proposed rule change as described in Exchange and are not designated with a
received will be posted without change;
Items I, II, and III below, which Items Retail Modifier as defined in Rule 13.
the Commission does not edit personal
have been prepared by the self- The Exchange proposes to increase the
identifying information from
regulatory organization. The fee for executions of MPL Orders that
submissions. You should submit only
Commission is publishing this notice to remove liquidity from the NYSE to
information that you wish to make
solicit comments on the proposed rule $0.00275 per share.
available publicly. All submissions
change from interested persons. The Exchange currently charges
should refer to File Number SR–BATS–
$0.0024 per share or $0.0027 if an MPL
2015–56 and should be submitted on or I. Self-Regulatory Organization’s Order for all other Floor broker
before December 7, 2015. Statement of the Terms of Substance of transactions that remove liquidity from
the Proposed Rule Change the Exchange. MPL orders designated
V. Accelerated Approval of Proposed
Rule Change as Modified by The Exchange proposes to amend its with a Retail Modifier as defined in
Amendments Nos. 1 and 2 Price List to modify certain fees for Rule 13 are not charged a fee. The
transactions that remove liquidity from Exchange proposes to increase the
tkelley on DSK3SPTVN1PROD with NOTICES
The Commission finds good cause to
approve the proposed rule change, as $0.0027 per share fee for Floor broker
31 15 U.S.C. 78s(b)(2).
modified by Amendments Nos. 1 and 2, MPL Orders that take liquidity from the
32 15 U.S.C. 78s(b)(2).
prior to the thirtieth day after the date 33 17 CFR 200.30–3(a)(12).
4 MPL Order is defined in Rule 13 as an
of publication of notice in the Federal 1 15 U.S.C. 78s(b)(1).
undisplayed limit order that automatically executes
Register. No comments were received 2 15 U.S.C. 78a.
at the mid-point of the protected best bid or offer
after publication of the Notice. 3 17 CFR 240.19b–4. (‘‘PBBO’’).
VerDate Sep<11>2014 19:47 Nov 13, 2015 Jkt 238001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 E:\FR\FM\16NON1.SGM 16NON1](https://thefederalregister.org/doc/80_FR_71077/page/4.svg)
Document Created: 2015-12-14 14:13:18
Document Modified: 2015-12-14 14:13:18
| 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 70857 |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR