80 FR 79392 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a Proposed Rule Change Regarding a Change to the Underlying Index of the Market Vectors Short High Yield Municipal Index ETF

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 244 (December 21, 2015)

Page Range		79392-79394
FR Document		2015-31932
Federal Register, Volume 80 Issue 244 (Monday, December 21, 2015)
[Federal Register Volume 80, Number 244 (Monday, December 21, 2015)]
[Notices]
[Pages 79392-79394]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31932]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76645; File No. SR-NYSEArca-2015-74]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a 
Proposed Rule Change Regarding a Change to the Underlying Index of the 
Market Vectors Short High Yield Municipal Index ETF

December 15, 2015.

I. Introduction

    On August 26, 2015, NYSE Arca, Inc. (``Exchange'') filed with the 
Securities and Exchange Commission (``Commission''), pursuant to 
section 19(b)(1) of the Securities Exchange Act of 1934 (``Exchange 
Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
reflect a change to the reference index relating to the Market Vectors 
Short High Yield Municipal Index ETF (``Fund''). The Commission 
published notice of the proposed rule change in the Federal Register on 
September 16, 2015.\3\ On October 16, 2015, the Commission designated a 
longer period within which to approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether to disapprove the proposed rule change.\4\ The 
Commission received no comments on the proposal. This order approves 
the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 75888 (September 10, 
2015), 80 FR 55701 (``Notice'').
    \4\ See Securities Exchange Act Release No. 76174, 80 FR 64027 
(October 22, 2015). The Commission determined that it was 
appropriate to designate a longer period within which to take action 
on the proposed rule change so that it has sufficient time to 
consider the proposed rule change. Accordingly, the Commission 
designated December 15, 2015 as the date by which it should approve, 
disapprove, or institute proceedings to determine whether to 
disapprove the proposed rule change.
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II. The Exchange's Description of the Proposal

    The Commission approved listing and trading on the Exchange of 
shares (``Shares'') of the Fund under NYSE Arca Equities Rule 
5.2(j)(3), which governs the listing and trading of Investment Company 
Units (``Units'').\5\ Currently, the Shares are listed and traded on 
the Exchange. The Exchange submitted this proposed rule change because 
the underlying index will be changed and the index as modified would 
continue not to meet the ``generic'' listing requirement of Commentary 
.02(a)(2) to NYSE Arca Equities Rule 5.2(j)(3) in that, as of June 30, 
2015, only 30.10% of the weight of the Revised Index components had a 
minimum original principal amount outstanding of $100 million or 
more.\6\
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    \5\ 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 and, together with the 
Order, the ``Release''). The Exchange submitted that proposed rule 
change to permit listing and trading of the Shares because the index 
underlying the Fund did not meet all of the ``generic'' listing 
requirements of Commentary .02(a) to NYSE Arca Equities Rule 
5.2(j)(3) that are applicable to the listing of Units based on fixed 
income securities indexes. More specifically, the Index met all of 
the criteria except for those set forth in Commentary .02(a)(2), 
which requires 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 Exchange states that the other generic listing criteria 
are satisfied. See Notice, supra note 3, 80 FR at 55703.
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    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 
(``Short High Yield Index'' or ``Index''). The Fund is a series of the 
Market Vectors ETF Trust. Van Eck Associates Corporation is the 
investment adviser and the

[[Page 79393]]

administrator for the Fund. Van Eck Securities Corporation is the 
Fund's distributor. 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.

A. The Current Index

    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. A 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 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 that 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%.

B. The Revised Index

    The Index Provider plans to revise the Index methodology 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 a 50% weight). In addition, the Revised Index 
will have a 10% weight in the Muni A-Rated Index, which comprises 
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 comprise 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\
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    \7\ As described in the Release, currently 50% of the Index 
weight is in the Muni High Yield/$100 Million Deal Size Index.
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     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\
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    \8\ The 25% weighting in the Muni High Yield/Under $100 Million 
Deal Size Index is identical to the weighting set forth in the 
Release.
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     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\
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    \9\ The 25% weighting in the Muni Baa-Rated/$100 Million Deal 
Size Index is identical to the weighting set forth in the Release.
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     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 will not be 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 will be excluded from the Revised 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 made available once a day.
    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.\10\
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    \10\ 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.
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    The Exchange believes that the Revised Index is sufficiently broad-
based to deter potential manipulation, notwithstanding that the Revised 
Index does not satisfy the criterion in NYSE Arca Equities Rule 
5.2(j)(3), Commentary .02 (a)(2), because it is composed of 
approximately 9,481 issues and 900 unique issuers. The Exchange also 
believes that the Revised Index securities are sufficiently liquid to 
deter potential manipulation in that a substantial portion (69.73%) of 
the

[[Page 79394]]

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. In addition, the Exchange notes that 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 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 \11\ 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 Revised Index and the applicable Intraday Indicative 
Value (``IIV''); \12\ 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.\13\
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    \11\ 17 CFR 240.10A-3.
    \12\ 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 or make widely available IIVs taken from 
the Consolidated Tape Association or other data feeds.
    \13\ 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).
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    The 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 
the Shares 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).

III. Discussion and Commission Findings

    After careful review, the Commission finds that the Exchange's 
proposal to permit the Fund to track the Revised Index is consistent 
with the Exchange Act and the rules and regulations thereunder 
applicable to a national securities exchange.\14\ In particular, the 
Commission finds that the proposed rule change is consistent with 
section 6(b)(5) of the Exchange Act,\15\ 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.
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    \14\ 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).
    \15\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that the Revised Index is unlikely to be 
more susceptible to manipulation than the existing Index. The weight of 
the Revised Index components with a minimum original principal amount 
outstanding of $100 million or more was 30.10% as of June 30, 2015,\16\ 
which is heavier than the weight of such components in the Index as of 
November 27, 2012.\17\ Additionally, the number of components and the 
number of unique issuers is greater for the Revised Index than for the 
Index.\18\ Further, the average daily notional trading volume was much 
greater for Revised Index components than for Index components.\19\
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    \16\ See Notice, supra note 3, 80 FR at 55703.
    \17\ See Order, supra note 4, 79 FR at 1663-4 (``only 15.66% of 
the weight of the Index components, as of November 27, 2012, had a 
minimum original principal amount outstanding of $100 million or 
more'').
    \18\ As of June 30, 2015, the Revised Index was composed of 
9,481 issues and 900 unique issuers. See Notice, supra note 3, 80 FR 
at 55704. As of November 27, 2012, the Index was composed of 1,935 
issues and 530 unique issuers. See Order, supra note 4, 79 FR at 
1664.
    \19\ Between June 30, 2014, and June 30, 2015, the average daily 
notional trading volume for Revised Index components was 
approximately $323.6 million. See Notice, supra note 3, 80 FR at 
55704. The average daily notional trading volume for Index 
components between October 31, 2011, and October 31, 2012 was 
$2,839,895. See Securities Exchange Act Release No. 71232, supra 
note 4, 78 FR at 69505.
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    The Commission notes that the Exchange represents that: (1) The 
Shares and the Revised Index satisfy all of the requirements for 
generic listing standards under NYSE Arca Equities Rule 5.2(j)(3) 
except for Commentary .02(a)(2) to NYSE Arca Equities Rule 5.2(j)(3); 
and (2) except as noted, all other representations made in support of 
the Release remain unchanged.
    For the foregoing reasons, the Commission finds that the proposed 
rule change is consistent with section 6(b)(5) of the Exchange Act \20\ 
and the rules and regulations thereunder applicable to a national 
securities exchange.
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    \20\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Exchange Act,\21\ that the proposed rule change (SR-NYSEArca-2015-74), 
be, and it hereby is, approved.
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    \21\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
Robert W. Errett,
Deputy Secretary.
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    \22\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2015-31932 Filed 12-18-15; 8:45 am]
BILLING CODE 8011-01-P
79392 Federal Register / Vol. 80, No. 244 / Monday, December 21, 2015 / Notices

activities by completing a training those that may be withheld from the proceedings to determine whether to
program. public in accordance with the disapprove the proposed rule change.4
provisions of 5 U.S.C. 552, will be The Commission received no comments
C. Self-Regulatory Organization’s
available for Web site viewing and on the proposal. This order approves the
Statement on Comments on the
printing in the Commission’s Public proposed rule change.
Proposed Rule Change Received From
Reference Room, 100 F Street NE., II. The Exchange’s Description of the
Members, Participants, or Others
Washington, DC 20549 on official Proposal
NFA did not publish the rule change business days between the hours of
to the membership for comment. NFA 10:00 a.m. and 3:00 p.m. Copies of such The Commission approved listing and
did not receive comment letters filing also will be available for trading on the Exchange of shares
concerning the rule change. inspection and copying at the principal (‘‘Shares’’) of the Fund under NYSE
office of NFA. All comments received Arca Equities Rule 5.2(j)(3), which
III. Date of Effectiveness of the governs the listing and trading of
Proposed Rule Change and Timing for will be posted without change; the
Commission does not edit personal Investment Company Units (‘‘Units’’).5
Commission Action Currently, the Shares are listed and
identifying information from
The proposed rule change is not submissions. You should submit only traded on the Exchange. The Exchange
effective because the CFTC has not yet information that you wish to make submitted this proposed rule change
determined that review of the proposed available publicly. All submissions because the underlying index will be
rule change is not necessary. should refer to File Number SR–NFA– changed and the index as modified
At any time within 60 days of the date 2015–01, and should be submitted on or would continue not to meet the
of effectiveness of the proposed rule before January 11, 2016. ‘‘generic’’ listing requirement of
change, the Commission, after Commentary .02(a)(2) to NYSE Arca
consultation with the CFTC, may For the Commission, by the Division of Equities Rule 5.2(j)(3) in that, as of June
Trading and Markets, pursuant to delegated
summarily temporarily suspend the authority.6
30, 2015, only 30.10% of the weight of
proposed rule change and require that the Revised Index components had a
Robert W. Errett,
the proposed rule change be refiled in minimum original principal amount
accordance with the provisions of Deputy Secretary. outstanding of $100 million or more.6
Section 19(b)(1) of the Exchange Act. [FR Doc. 2015–31931 Filed 12–18–15; 8:45 am] The investment objective of the Fund
BILLING CODE 8011–01–P is to seek to replicate as closely as
IV. Solicitation of Comments possible, before fees and expenses, the
Interested persons are invited to price and yield performance of the
submit written data, views, and SECURITIES AND EXCHANGE Barclays Municipal High Yield Short
arguments concerning the foregoing, COMMISSION Duration Index (‘‘Short High Yield
including whether the proposed rule [Release No. 34–76645; File No. SR– Index’’ or ‘‘Index’’). The Fund is a series
change is consistent with the Act. NYSEArca–2015–74] of the Market Vectors ETF Trust. Van
Comments may be submitted by any of Eck Associates Corporation is the
the following methods: Self-Regulatory Organizations; NYSE investment adviser and the
Arca, Inc.; Order Approving a
Electronic Comments Proposed Rule Change Regarding a 4 See Securities Exchange Act Release No. 76174,

• Use the Commission’s Internet Change to the Underlying Index of the 80 FR 64027 (October 22, 2015). The Commission
comment form (http://www.sec.gov/ determined that it was appropriate to designate a
Market Vectors Short High Yield longer period within which to take action on the
rules/sro.shtml); or Municipal Index ETF proposed rule change so that it has sufficient time
• Send an email to rule-comments@ to consider the proposed rule change. Accordingly,
sec.gov. Please include File Number SR– December 15, 2015. the Commission designated December 15, 2015 as
NFA–2015–01 on the subject line. the date by which it should approve, disapprove,
I. Introduction or institute proceedings to determine whether to
Paper Comments On August 26, 2015, NYSE Arca, Inc. disapprove the proposed rule change.
5 See Securities Exchange Act Release No. 71232
• Send paper comments in triplicate (‘‘Exchange’’) filed with the Securities
(January 3, 2014), 79 FR 1662 (January 9, 2014 (SR–
to Secretary, Securities and Exchange and Exchange Commission NYSEArca–2013–118) (order approving listing and
Commission, 100 F Street NE., (‘‘Commission’’), pursuant to section trading of shares of the Market Vectors Short High
Washington, DC 20549–1090. 19(b)(1) of the Securities Exchange Act Yield Municipal Index ETF) (‘‘Order’’). See also
of 1934 (‘‘Exchange Act’’) 1 and Rule Securities Exchange Act Release No. 70871
All submissions should refer to File (November 14, 2013), 78 FR 69503 (November 19,
Number SR–NFA–2015–01. This file 19b–4 thereunder,2 a proposed rule 2013) (SR–NYSEArca–2013–118) (notice of
number should be included on the change to reflect a change to the proposed rule change relating to listing and trading
subject line if email is used. To help the reference index relating to the Market of shares of the Market Vectors Short High Yield
Vectors Short High Yield Municipal Municipal Index ETF and, together with the Order,
Commission process and review your the ‘‘Release’’). The Exchange submitted that
comments more efficiently, please use Index ETF (‘‘Fund’’). The Commission proposed rule change to permit listing and trading
only one method. The Commission will published notice of the proposed rule of the Shares because the index underlying the
post all comments on the Commission’s change in the Federal Register on Fund did not meet all of the ‘‘generic’’ listing
September 16, 2015.3 On October 16, requirements of Commentary .02(a) to NYSE Arca
Internet Web site (http://www.sec.gov/ Equities Rule 5.2(j)(3) that are applicable to the
rules/sro.shtml). Copies of the 2015, the Commission designated a listing of Units based on fixed income securities
longer period within which to approve indexes. More specifically, the Index met all of the
mstockstill on DSK4VPTVN1PROD with NOTICES

submission, all subsequent
amendments, all written statements the proposed rule change, disapprove criteria except for those set forth in Commentary
the proposed rule change, or institute .02(a)(2), which requires that components that in
with respect to the proposed rule the aggregate account for at least 75% of the weight
change that are filed with the 6 17
of the index or portfolio each shall have a minimum
CFR 200.30–3(a)(12). original principal amount outstanding of $100
Commission, and all written 1 15 U.S.C. 78s(b)(1). million or more.
communications relating to the 2 17 CFR 240.19b–4. 6 The Exchange states that the other generic
proposed rule change between the 3 See Securities Exchange Act Release No. 75888 listing criteria are satisfied. See Notice, supra note
Commission and any person, other than (September 10, 2015), 80 FR 55701 (‘‘Notice’’). 3, 80 FR at 55703.

VerDate Sep<11>2014 17:38 Dec 18, 2015 Jkt 238001 PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 E:\FR\FM\21DEN1.SGM 21DEN1
79394 Federal Register / Vol. 80, No. 244 / Monday, December 21, 2015 / Notices

Revised Index weight is composed of The value of the Revised Index will be Revised Index components than for
maturities that are part of a minimum widely disseminated by one or more Index components.19
original principal amount outstanding major market data vendors at least once The Commission notes that the
of $100 million or more, and in view of per day, as required by NYSE Arca Exchange represents that: (1) The Shares
the substantial total dollar amount Equities Rule 5.2(j)(3), Commentary and the Revised Index satisfy all of the
outstanding and the average dollar .02(b)(ii). The IIV for the Shares will be requirements for generic listing
amount outstanding of Revised Index disseminated by one or more major standards under NYSE Arca Equities
issues, as referenced above. In addition, market data vendors, updated at least Rule 5.2(j)(3) except for Commentary
the Exchange notes that the average every 15 seconds during the Exchange’s .02(a)(2) to NYSE Arca Equities Rule
daily notional trading volume for Core Trading Session, as required by 5.2(j)(3); and (2) except as noted, all
Revised Index components for the NYSE Arca Equities Rule 5.2(j)(3), other representations made in support
period from June 30, 2014 to June 30, Commentary .02(c). of the Release remain unchanged.
2015 was approximately $323.6 million, For the foregoing reasons, the
III. Discussion and Commission Commission finds that the proposed
and the sum of the notional trading
Findings rule change is consistent with section
volumes for the same period was $82.2
billion. After careful review, the Commission 6(b)(5) of the Exchange Act 20 and the
The Revised Index value, calculated finds that the Exchange’s proposal to rules and regulations thereunder
and disseminated at least once daily, as permit the Fund to track the Revised applicable to a national securities
well as the components of the Revised Index is consistent with the Exchange exchange.
Index and their percentage weighting, Act and the rules and regulations IV. Conclusion
will be available from major market data thereunder applicable to a national
securities exchange.14 In particular, the It is therefore ordered, pursuant to
vendors. In addition, the portfolio of
Commission finds that the proposed section 19(b)(2) of the Exchange Act,21
securities held by the Fund will be
rule change is consistent with section that the proposed rule change (SR–
disclosed daily on the Fund’s Web site
6(b)(5) of the Exchange Act,15 which NYSEArca–2015–74), be, and it hereby
at www.marketvectorsetfs.com.
The Exchange represents that: (1) requires, among other things, that the is, approved.
Except for Commentary .02(a)(2) to Exchange’s rules be designed to promote For the Commission, by the Division of
NYSE Arca Equities Rule 5.2(j)(3), the just and equitable principles of trade, to Trading and Markets, pursuant to delegated
Shares currently satisfy all of the remove impediments to and perfect the authority.22
generic listing standards under NYSE mechanism of a free and open market Robert W. Errett,
Arca Equities Rule 5.2(j)(3); (2) the and a national market system, and, in Deputy Secretary.
continued listing standards under NYSE general, to protect investors and the [FR Doc. 2015–31932 Filed 12–18–15; 8:45 am]
Arca Equities Rules 5.2(j)(3) and public interest. BILLING CODE 8011–01–P
5.5(g)(2) applicable to Units shall apply The Commission believes that the
to the Shares; and (3) the Trust is Revised Index is unlikely to be more
required to comply with Rule 10A–3 susceptible to manipulation than the SECURITIES AND EXCHANGE
under the Act 11 for the initial and existing Index. The weight of the COMMISSION
continued listing of the Shares. In Revised Index components with a [Release No. 34–76657; File No. SR–Phlx–
addition, the Exchange represents that minimum original principal amount 2015–104]
the Shares will comply with all other outstanding of $100 million or more was
requirements applicable to Units 30.10% as of June 30, 2015,16 which is Self-Regulatory Organizations;
including, but not limited to, heavier than the weight of such NASDAQ OMX PHLX LLC; Notice of
requirements relating to the components in the Index as of Filing and Immediate Effectiveness of
dissemination of key information such November 27, 2012.17 Additionally, the Proposed Rule Change To Delete Rule
as the value of the Revised Index and number of components and the number 108
the applicable Intraday Indicative Value of unique issuers is greater for the December 15, 2015.
(‘‘IIV’’); 12 rules governing the trading of Revised Index than for the Index.18
Pursuant to Section 19(b)(1) of the
equity securities, trading hours, trading Further, the average daily notional
Securities Exchange Act of 1934
halts, surveillance, and the Information trading volume was much greater for
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Bulletin to Equity Trading Permit
notice is hereby given that on December
Holders (‘‘ETP Holders’’), as set forth in approving generic listing standards for Units and
Portfolio Depositary Receipts); 41983 (October 6, 9, 2015, NASDAQ OMX PHLX LLC
Exchange rules applicable to Units; and
1999), 64 FR 56008 (October 15, 1999) (SR–PCX– (‘‘Phlx’’ or ‘‘Exchange’’) filed with the
prior Commission orders approving the 98–29) (order approving rules for listing and trading Securities and Exchange Commission
generic listing rules applicable to the of Units). (‘‘SEC’’ or ‘‘Commission’’) the proposed
listing and trading of Units.13 14 In approving this proposed rule change, the

Commission has considered the proposed rule’s
rule change as described in Items I, II,
11 17 CFR 240.10A–3. impact on efficiency, competition, and capital
19 Between June 30, 2014, and June 30, 2015, the
12 The IIV will be widely disseminated by one or formation. See 15 U.S.C. 78c(f).
15 15 U.S.C. 78f(b)(5). average daily notional trading volume for Revised
more major market data vendors at least every 15
16 See Notice, supra note 3, 80 FR at 55703. Index components was approximately $323.6
seconds during the Exchange’s Core Trading
million. See Notice, supra note 3, 80 FR at 55704.
Session of 9:30 a.m. to 4:00 p.m., Eastern time. 17 See Order, supra note 4, 79 FR at 1663–4 (‘‘only
The average daily notional trading volume for Index
Currently, it is the Exchange’s understanding that 15.66% of the weight of the Index components, as
mstockstill on DSK4VPTVN1PROD with NOTICES

components between October 31, 2011, and October
several major market data vendors display or make of November 27, 2012, had a minimum original
31, 2012 was $2,839,895. See Securities Exchange
widely available IIVs taken from the Consolidated principal amount outstanding of $100 million or
Act Release No. 71232, supra note 4, 78 FR at
Tape Association or other data feeds. more’’).
13 See, e.g., Securities Exchange Act Release Nos. 18 As of June 30, 2015, the Revised Index was
69505.
20 15 U.S.C. 78f(b)(5).
55783 (May 17, 2007), 72 FR 29194 (May 24, 2007) composed of 9,481 issues and 900 unique issuers. 21 15 U.S.C. 78s(b)(2).
(SR–NYSEArca–2007–36) (order approving NYSE See Notice, supra note 3, 80 FR at 55704. As of
22 17 CFR 200.30–3(a)(12).
Arca generic listing standards for Units based on a November 27, 2012, the Index was composed of
1 15 U.S.C. 78s(b)(1).
fixed income index); 44551 (July 12, 2001), 66 FR 1,935 issues and 530 unique issuers. See Order,
37716 (July 19, 2001) (SR–PCX–2001–14) (order supra note 4, 79 FR at 1664. 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 17:38 Dec 18, 2015 Jkt 238001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 E:\FR\FM\21DEN1.SGM 21DEN1
Document Created: 2015-12-19 02:57:09
Document Modified: 2015-12-19 02:57:09
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 79392