81_FR_14214 81 FR 14163 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting Proceedings To Determine Whether to Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating To Listing and Trading of Shares of the Cumberland Municipal Bond ETF Under NYSE Arca Equities Rule 8.600

81 FR 14163 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting Proceedings To Determine Whether to Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating To Listing and Trading of Shares of the Cumberland Municipal Bond ETF Under NYSE Arca Equities Rule 8.600

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 51 (March 16, 2016)

Page Range14163-14166
FR Document2016-05855

Federal Register, Volume 81 Issue 51 (Wednesday, March 16, 2016)
[Federal Register Volume 81, Number 51 (Wednesday, March 16, 2016)]
[Notices]
[Pages 14163-14166]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-05855]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77340; File No. SR-NYSEArca-2015-93]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting 
Proceedings To Determine Whether to Approve or Disapprove a Proposed 
Rule Change, as Modified by Amendment No. 1 Thereto, Relating To 
Listing and Trading of Shares of the Cumberland Municipal Bond ETF 
Under NYSE Arca Equities Rule 8.600

March 10, 2016.

I. Introduction

    On November 24, 2015, NYSE Arca, Inc. (``Exchange'') filed with the 
Securities and Exchange Commission

[[Page 14164]]

(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to list and trade shares 
(``Shares'') of the Cumberland Municipal Bond ETF (``Fund''), a series 
of the ETFis Series Trust I (``Trust''). The proposed rule change was 
published for comment in the Federal Register on December 14, 2015.\3\ 
On December 29, 2015, the Exchange submitted Amendment No. 1 to the 
proposed rule change.\4\ On January 21, 2016, pursuant to Section 
19(b)(2) of the Act,\5\ 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.\6\ The Commission received no 
comments on the proposed rule change. This order institutes proceedings 
under Section 19(b)(2)(B) of the Act \7\ to determine whether to 
approve or disapprove the proposed rule change, as modified by 
Amendment No. 1 thereto.
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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. 76590 (Dec. 8, 
2015), 80 FR 77384 (``Notice'').
    \4\ In Amendment No. 1, the Exchange clarified that each 
Municipal Bond (as defined herein) held by the Fund must be a 
constituent of a deal where the deal's original offering amount was 
at least $100 million, clarified whether certain securities would be 
exchange-traded or over-the-counter (``OTC''), deleted a statement 
relating to redemption of Shares, clarified pricing information for 
certain assets, and corrected a typographical error. Because 
Amendment No. 1 to the proposed rule change is technical in nature 
and does not materially alter the substance of the proposed rule 
change or raise any novel regulatory issues, it is not subject to 
notice and comment. Amendment No. 1, which amended and replaced the 
original proposal in its entirety, is available on the Commission's 
Web site at: http://www.sec.gov/comments/sr-nysearca-2015-93/nysearca201593-1.pdf.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 76955, 81 FR 4724 
(Jan. 27, 2016). The Commission designated March 11, 2016 as the 
date by which the Commission shall either approve or disapprove, or 
institute proceedings to determine whether to disapprove, the 
proposed rule change. See Securities Exchange Act Release No. 76955A 
(Mar. 2, 2016), 81 FR 12174 (Mar. 8, 2016) (correcting the date to 
``March 11, 2016'' as the date by which the Commission shall either 
approve or disapprove, or institute proceedings to determine whether 
to disapprove, the proposed rule change).
    \7\ 15 U.S.C. 78s(b)(2)(B).
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II. Description of the Proposed Rule Change

    The Exchange proposes to list and trade Shares of the Fund, an 
actively managed exchange-traded fund (``ETF''), under NYSE Arca 
Equities Rule 8.600, which governs the listing and trading of Managed 
Fund Shares on the Exchange. The Fund is a series of the Trust.\8\ The 
investment adviser to the Fund will be Virtus ETF Advisers LLC 
(``Adviser''), and the Fund's sub-adviser will be Cumberland Advisors 
Inc. (``Sub-Adviser'').\9\ Virtus ETF Solutions LLC will serve as the 
Fund's operational administrator. ETF Distributors LLC will serve as 
the distributor of the Shares on an agency basis. The Bank of New York 
Mellon (``Administrator'') will serve as the administrator, custodian, 
transfer agent and fund accounting agent for the Fund. The Exchange has 
made the following representations and statements in describing the 
Fund and its investment strategy, including the Fund's portfolio 
holdings and investment restrictions.\10\
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    \8\ The Exchange represents that the Trust is registered under 
the Investment Company Act of 1940 (``1940 Act''). On May 20, 2015, 
the Trust filed with the Commission an amendment to its registration 
statement on Form N-1A under the Securities Act of 1933 and under 
the 1940 Act relating to the Fund (File Nos. 333-187668 and 811-
22819) (``Registration Statement''). The Exchange further states 
that the Trust has obtained certain exemptive relief under the 1940 
Act. See Investment Company Act Release No. 30607 (Jul. 23, 2013) 
(File No. 812-14080).
    \9\ According to the Exchange, the Adviser and Sub-Adviser are 
not registered as broker-dealers. The Adviser (but not the Sub-
Adviser) is affiliated with one or more broker-dealers, and the 
Adviser has implemented and will maintain a fire wall with respect 
to each broker-dealer affiliate regarding access to information 
concerning the composition and changes to the portfolio. In the 
event (a) the Adviser or Sub-Adviser become registered broker-
dealers or newly affiliated with a broker-dealer, or (b) any new 
adviser or sub-adviser is a registered broker-dealer or becomes 
affiliated with a broker-dealer, it will implement a fire wall with 
respect to its relevant personnel or its broker-dealer affiliate 
regarding access to information concerning the composition and 
changes to the portfolio, and will be subject to procedures designed 
to prevent the use and dissemination of material, non-public 
information regarding such portfolio.
    \10\ The Commission notes that additional information regarding 
the Fund, the Trust, and the Shares, including investment 
strategies, risks, creation and redemption procedures, fees, 
portfolio holdings disclosure policies, calculation of net asset 
value (``NAV''), distributions, and taxes, among other things, can 
be found in the Notice, Amendment No. 1 to the proposed rule change, 
and the Registration Statement, as applicable. See supra notes 3, 4, 
and 8, respectively.
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A. Exchange's Description of the Fund's Principal Investments

    The Fund will seek to provide a competitive level of current income 
exempt from federal income tax, while preserving capital. The Fund, 
under normal market conditions,\11\ will invest at least 80% of its net 
assets in debt securities whose interest is, in the opinion of bond 
counsel for the issuer at the time of issuance, exempt from U.S. 
federal income tax (``Municipal Bonds''). The Sub-Adviser will invest 
the Fund's assets using a barbell strategy, which means that the Sub-
Adviser will overweight the Fund's investments in Municipal Bonds with 
maturities on the short and long ends of the fixed income yield curve, 
while underweighting exposure to Municipal Bonds with intermediate 
maturities.
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    \11\ 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 or the financial markets 
generally; operational issues causing dissemination of inaccurate 
market information; or force majeure type events such as systems 
failure, natural or man-made disaster, act of God, armed conflict, 
act of terrorism, riot or labor disruption, or any similar 
intervening circumstance.
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    Municipal Bonds in which the Fund may invest include one or more of 
the following: General obligation bonds, which are typically backed by 
the full faith, credit, and taxing power of the issuer; revenue bonds, 
which are typically secured by revenues generated by the issuer; 
discount bonds, which may be originally issued at a discount to par 
value or sold at market price below par value; premium bonds, which are 
sold at a premium to par value; zero coupon bonds, which are issued at 
an original issue discount, with the full value, including accrued 
interest, paid at maturity; and private activity bonds, which are 
typically issued by or on behalf of local or state government for the 
purpose of financing the project of a private user.
    The Fund will have no target duration for its investment portfolio, 
and the Sub-Adviser may target a shorter or longer average portfolio 
duration based on the Sub-Adviser's forecast of interest rates and view 
of fixed-income markets generally.\12\ The Sub-Adviser will generally 
apply a heavier weight toward Municipal Bonds with shorter maturities 
during periods of high interest rates and longer maturities during 
periods of lower interest rates.\13\
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    \12\ Duration measures the interest rate sensitivity of a debt 
security by assessing and weighting the present value of the 
security's payment pattern. Generally, the longer the maturity, the 
greater the duration and, therefore, the greater effect interest 
rate changes have on the price of the security.
    \13\ According to the Exchange, under normal market conditions, 
each Municipal Bond held by the Fund must be a constituent of a deal 
where the deal's original offering amount was at least $100 million. 
In addition, no Municipal Bond held by the Fund will exceed 30% of 
the Fund's net assets, and the five most heavily weighted Municipal 
Bonds held by the Fund will not in the aggregate account for more 
than 50% of the Fund's assets. Further, the Fund will hold Municipal 
Bonds of a minimum of 13 non-affiliated issuers.
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    With respect to credit quality, under normal market conditions, at 
least 90% of the Fund's assets invested in Municipal Bonds will be in 
Municipal Bonds rated ``A'' or better by at least one major credit 
rating agency or, if unrated, deemed to be of comparable quality by the 
Sub-Adviser. From time to time, the

[[Page 14165]]

Fund may concentrate (i.e., invest more than 25% of its total assets) 
in particular sectors. The Fund may sell investments for a variety of 
reasons, such as to adjust the portfolio's average maturity, duration, 
or overall credit quality, or to shift assets into and out of higher-
yielding or lower-yielding securities or certain sectors.
    According to the Exchange, under normal market conditions, at least 
80% of the Fund's income will be exempt from federal income taxes. 
However, a significant portion of the Fund's income could be derived 
from securities subject to the alternative minimum tax.

B. Exchange's Description of the Fund's Other Investments

    While the Fund, under normal market conditions, will invest at 
least 80% of its assets in Municipal Bonds, as described above, the 
Fund may invest its remaining assets in other assets and financial 
instruments, as described below.
    The Fund may invest in equity securities, both directly and 
indirectly through investment in shares of ETFs,\14\ other investment 
companies, and other types of securities and instruments described 
below. The equity portion of the Fund's portfolio may include common 
stocks traded on securities exchanges or in the OTC market. In addition 
to common stocks, the equity portion of the Fund's portfolio may also 
include exchange-traded and OTC preferred stocks, and exchange-traded 
and OTC warrants.\15\
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    \14\ The ETFs in which the Fund may invest will be registered 
under the 1940 Act and include Investment Company Units (as 
described in NYSE Arca Equities Rule 5.2(j)(3)); Portfolio 
Depositary Receipts (as described in NYSE Arca Equities Rule 8.100); 
and Managed Fund Shares (as described in NYSE Arca Equities Rule 
8.600). Such ETFs all will be listed and traded in the U.S. on 
registered exchanges.
    \15\ With respect to its exchange-traded equity securities 
investments, the Fund will normally invest in equity securities that 
are listed and traded on a U.S. exchange or in markets that are 
members of the Intermarket Surveillance Group (``ISG'') or parties 
to a comprehensive surveillance sharing agreement with the Exchange. 
In any case, not more than 10% of the net assets of the Fund in the 
aggregate invested in equity securities (except for non-exchange-
traded investment company securities) will consist of equity 
securities whose principal market is not a member of ISG or a market 
with which the Exchange does not have a comprehensive surveillance 
sharing agreement.
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    The Fund may purchase taxable municipal bonds when the Sub-Adviser 
believes they offer opportunities for the Fund, or variable rate demand 
notes (``VRDNs'') that pay interest monthly or quarterly based on a 
floating rate that is reset daily or weekly based on an index of short-
term municipal rates. The Fund also may invest in exchange-traded and 
OTC securities convertible into common stock. These securities will be 
convertible bonds and convertible preferred stocks.\16\
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    \16\ The criteria above also will apply to exchange-traded 
convertible preferred stocks and exchange-traded stocks into which 
convertible bonds may be converted. See supra note 15.
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    The Fund may invest directly and indirectly in cash equivalents, 
namely, money market instruments that are the following: U.S. 
Government obligations or corporate debt obligations (including those 
subject to repurchase agreements), banker's acceptances \17\ and 
certificates of deposit \18\ of domestic branches of banks, commercial 
paper,\19\ and master notes.\20\
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    \17\ Banker's acceptances are time drafts drawn on and 
``accepted'' by a bank. When a bank ``accepts'' such a time draft, 
it assumes liability for its payment. When the Fund acquires a 
banker's acceptance, the bank that ``accepted'' the time draft is 
liable for payment of interest and principal when due. The banker's 
acceptance carries the full faith and credit of such bank.
    \18\ A certificate of deposit is an unsecured, interest bearing 
debt obligation of a bank.
    \19\ Commercial paper is an unsecured, short-term debt 
obligation of a bank, corporation, or other borrower. Commercial 
paper maturity generally ranges from two to 270 days and is usually 
sold on a discounted basis rather than as an interest-bearing 
instrument. The Fund will invest directly in commercial paper only 
if it is rated in one of the top two rating categories by Moody's, 
S&P or Fitch or, if not rated, is of equivalent quality in the 
Adviser's opinion. Commercial paper may include master notes of the 
same quality. Master notes are unsecured obligations which are 
redeemable upon demand of the holder and which permit the investment 
of fluctuating amounts at varying rates of interest.
    \20\ Master notes may be acquired by the Fund through the master 
note program of the Fund's custodian bank.
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    In order to maintain sufficient liquidity, to implement investment 
strategies, or for temporary defensive purposes, the Fund may invest a 
significant portion of its assets in shares of one or more money market 
funds. The Fund may also invest in the securities of other non-
exchange-traded investment company securities in compliance with the 
1940 Act and the rules thereunder.
    The Fund may write U.S. exchange-traded call and put options on 
securities, ETFs, or security indexes to seek income, or may purchase 
or write U.S. exchange-traded put or call options for hedging purposes.
    The Fund may purchase securities on a when-issued basis or for 
settlement at a future date (forward commitment), if the Fund holds 
sufficient liquid assets to meet the purchase price.

C. Exchange's Description of the Fund's Investment Restrictions

    The Fund may, from time to time, take temporary defensive positions 
that are inconsistent with its principal investment strategies in an 
attempt to respond to adverse market, economic, political, or other 
conditions. In such circumstances, the Fund may hold up to 100% of its 
portfolio in cash and cash equivalent positions.
    The Fund may hold up to an aggregate amount of 15% of its net 
assets in illiquid assets (calculated at the time of investment), 
consistent with Commission guidance. The Fund will monitor its 
portfolio liquidity on an ongoing basis to determine whether, in light 
of current circumstances, an adequate level of liquidity is being 
maintained, and will consider taking appropriate steps in order to 
maintain adequate liquidity if, through a change in values, net assets, 
or other circumstances, more than 15% of the Fund's net assets are held 
in illiquid assets. Illiquid assets include securities subject to 
contractual or other restrictions on resale and other instruments that 
lack readily available markets as determined in accordance with 
Commission staff guidance.
    The Fund's investments will be consistent with its investment 
objective and will not be used to provide multiple returns of a 
benchmark or to produce leveraged returns.

II. Proceedings to Determine Whether to Approve or Disapprove SR-
NYSEArca-2015-93 and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section 
19(b)(2)(B) of the Act \21\ to determine whether the proposed rule 
change, as modified by Amendment No. 1 thereto, should be approved or 
disapproved. Institution of such proceedings is appropriate at this 
time in view of the legal and policy issues raised by the proposed rule 
change. Institution of proceedings does not indicate that the 
Commission has reached any conclusions with respect to any of the 
issues involved. Rather, as described below, the Commission seeks and 
encourages interested persons to provide comments on the proposed rule 
change.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Act,\22\ the Commission is 
providing notice of the grounds for disapproval under consideration. 
The Commission is instituting proceedings to allow for additional 
analysis of the proposed rule change's consistency with Section 6(b)(5) 
of the Act, which requires, among other things, that the rules of a 
national securities exchange be ``designed to prevent fraudulent and

[[Page 14166]]

manipulative acts and practices, to promote just and equitable 
principles of trade,'' and ``to protect investors and the public 
interest.'' \23\
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    \22\ Id.
    \23\ 15 U.S.C. 78f(b)(5).
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III. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written 
submissions of their views, data, and arguments with respect to the 
issues identified above, as well as any other concerns they may have 
with the proposal. In particular, the Commission invites the written 
views of interested persons concerning whether the proposal is 
consistent with Section 6(b)(5) or any other provision of the Act, or 
the rules and regulations thereunder. Although there do not appear to 
be any issues relevant to approval or disapproval that would be 
facilitated by an oral presentation of views, data, and arguments, the 
Commission will consider, pursuant to Rule 19b-4, any request for an 
opportunity to make an oral presentation.\24\
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    \24\ Section 19(b)(2) of the Act, as amended by the Securities 
Act Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the 
Commission flexibility to determine what type of proceeding--either 
oral or notice and opportunity for written comments--is appropriate 
for consideration of a particular proposal by a self-regulatory 
organization. See Securities Act Amendments of 1975, Senate Comm. on 
Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st 
Sess. 30 (1975).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views, and 
arguments regarding whether the proposal should be approved or 
disapproved by April 6, 2016. Any person who wishes to file a rebuttal 
to any other person's submission must file that rebuttal by April 20, 
2016. The Commission asks that commenters address the sufficiency of 
the Exchange's statements in support of the proposal, which are set 
forth in the Notice \25\ and in Amendment No. 1 to the proposed rule 
change,\26\ in addition to any other comments they may wish to submit 
about the proposed rule change.
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    \25\ See supra note 3.
    \26\ See supra note 4.
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    The Exchange provides that the Fund may invest in one or more of 
the following broad categories of Municipal Bonds: (a) General 
obligation bonds; (b) revenue bonds; (c) discount bonds; (d) premium 
bonds; (e) zero coupon bonds; and (f) private activity bonds. Moreover, 
the Exchange represents that: (i) Each Municipal Bond held by the Fund 
must be a constituent of a deal where the deal's original offering 
amount was at least $100 million; (ii) no Municipal Bond held by the 
Fund will exceed 30% of the Fund's net assets, and the five most 
heavily weighted Municipal Bonds held by the Fund will not in the 
aggregate account for more than 50% of the Fund's assets; and (iii) the 
Fund will hold Municipal Bonds of a minimum of 13 non-affiliated 
issuers. Apart from these broad representations, the Exchange provides 
no other information about the kinds of municipal bonds in which the 
Fund may invest. Accordingly, the Commission seeks comment on whether 
the Exchange's representations relating to the Municipal Bonds to be 
held by the Fund are sufficiently clear in their application to 
municipal bonds, specifically, and are consistent with the requirements 
of Section 6(b)(5) of the Act, which, among other things, requires that 
the rules of an exchange be designed to prevent fraudulent and 
manipulative acts and practices.
    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 rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2015-93 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 Numbers SR-NYSEArca-2015-93. 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 these filings 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-NYSEArca-2015-93 and should 
be submitted on or before April 6, 2016. Rebuttal comments should be 
submitted by April 20, 2016.
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    \27\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\27\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-05855 Filed 3-15-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                              Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices                                                     14163

                                                  market.37 Therefore, it appears possible                those that may be withheld from the                    VI. Conclusion
                                                  that eliminating the minimum value                      public in accordance with the                             In summary, the Commission
                                                  sizes for RFQs for opening transactions                 provisions of 5 U.S.C. 552, will be                    believes, for the reasons noted above,
                                                  in new series of FLEX Options could                     available for Web site viewing and                     that the proposed rule change to
                                                  further incent trading interest in                      printing in the Commission’s Public                    permanently approve the Pilot Program,
                                                  customized options to move from the                     Reference Room, 100 F Street NE.,                      thereby permanently implementing a
                                                  OTC market to the Exchange. To the                      Washington, DC 20549, on official                      one-contract minimum size requirement
                                                  extent investors choose to trade FLEX                   business days between the hours of                     in place of the pre-existing minimum
                                                  Options on the Exchange in lieu of the                  10:00 a.m. and 3:00 p.m. Copies of the                 size requirements for RFQs for opening
                                                  OTC market as a result of the permanent                 filing also will be available for                      transactions in new series of FLEX
                                                  removal of the minimum value size                       inspection and copying at the principal                Options on the Exchange, is consistent
                                                  requirements, such action should                        office of the Exchange. All comments                   with the Act and Section 6(b)(5)
                                                  benefit investors. As the Commission                                                                           thereunder in particular, and should be
                                                                                                          received will be posted without change;
                                                  has previously noted, there are certain                                                                        approved, as amended. The Exchange
                                                                                                          the Commission does not edit personal
                                                  benefits to trading on an exchange, such                                                                       has committed, and the Commission
                                                  as enhanced efficiency in initiating and                identifying information from
                                                                                                          submissions. You should submit only                    expects the Exchange, to continue to
                                                  closing out positions, increased market                                                                        monitor the usage of FLEX Options,
                                                  transparency, and heightened contra-                    information that you wish to make
                                                                                                          available publicly. All submissions                    whether changes need to be made to its
                                                  party creditworthiness due to the role of                                                                      rules or the ODD to address any changes
                                                  the Options Clearing Corporation as                     should refer to File Number SR–Phlx–
                                                                                                          2015–94 and should be submitted on or                  in retail FLEX Option participation, and
                                                  issuer and guarantor of FLEX Options.38                                                                        for any other issues that may occur as
                                                                                                          before April 6, 2016.
                                                  IV. Solicitation of Comments on                                                                                a result of the elimination of the
                                                  Amendment No. 1                                         V. Accelerated Approval of Proposal, as                minimum value sizes on a permanent
                                                                                                          Modified by Amendment No. 1                            basis, including whether FLEX Option
                                                    Interested persons are invited to                                                                            trades are being used as a surrogate for
                                                  submit written data, views, and                            In Amendment No. 1, the Exchange                    trading options in the standardized
                                                  arguments concerning the foregoing,                     submitted additional Pilot Program data                market.41
                                                  including whether Amendment No. 1 to                    to supplement Exhibit 3 to the                            It is therefore ordered, pursuant to
                                                  the proposed rule change is consistent                  Exchange’s rule filing, which initially                Section 19(b)(2) of the Act,42 that the
                                                  with the Act. Comments may be                           contained a report of Pilot Program data               proposed rule change (SR–Phlx–2015–
                                                  submitted by any of the following                                                                              94) be, and it hereby is, approved, on an
                                                                                                          for the period December 2014 through
                                                  methods:                                                                                                       accelerated basis, as amended.
                                                                                                          July 2015. Amendment No. 1 contains
                                                  Electronic Comments                                     an updated pilot report that provides                    For the Commission, by the Division of
                                                    • Use the Commission’s Internet                       data regarding FLEX Option                             Trading and Markets, pursuant to delegated
                                                                                                          transactions under the Pilot Program for               authority.43
                                                  comment form (http://www.sec.gov/
                                                  rules/sro.shtml); or                                    the period August 2015 through                         Robert W. Errett,
                                                    • Send an email to rule-comments@                     December 2015, as well as additional                   Deputy Secretary.
                                                  sec.gov. Please include File Number SR–                 information regarding transactions                     [FR Doc. 2016–05856 Filed 3–15–16; 8:45 am]
                                                  Phlx–2015–94 on the subject line.                       covered by the Pilot Program and FLEX                  BILLING CODE 8011–01–P
                                                                                                          Option trading on the Exchange.39 The
                                                  Paper Comments
                                                                                                          Commission believes that the
                                                    • Send paper comments in triplicate                   supplemental Pilot Program data set                    SECURITIES AND EXCHANGE
                                                  to Secretary, Securities and Exchange                   forth in Amendment No. 1 further                       COMMISSION
                                                  Commission, 100 F Street NE.,                           supports approval of the Pilot Program                 [Release No. 34–77340; File No. SR–
                                                  Washington, DC 20549–1090.                              because, collectively with the Pilot                   NYSEArca–2015–93]
                                                  All submissions should refer to File                    Program data initially submitted as
                                                  Number SR–Phlx–2015–94. This file                       Exhibit 3 to the rule filing, the data                 Self-Regulatory Organizations; NYSE
                                                  number should be included on the                        reflects that there is minimal usage of                Arca, Inc.; Order Instituting
                                                  subject line if email is used. To help the              FLEX Options by retail customers on the                Proceedings To Determine Whether to
                                                  Commission process and review your                      Exchange, and that market participants                 Approve or Disapprove a Proposed
                                                  comments more efficiently, please use                   appear to be utilizing FLEX Options for                Rule Change, as Modified by
                                                  only one method. The Commission will                    their intended purpose—i.e.,                           Amendment No. 1 Thereto, Relating To
                                                  post all comments on the Commission’s                                                                          Listing and Trading of Shares of the
                                                                                                          customization of certain terms not
                                                  Internet Web site (http://www.sec.gov/                                                                         Cumberland Municipal Bond ETF
                                                                                                          available in the standardized options
                                                  rules/sro.shtml). Copies of the                                                                                Under NYSE Arca Equities Rule 8.600
                                                                                                          market—and not as a surrogate for
                                                  submission, all subsequent                              standardized option trading.                           March 10, 2016.
                                                  amendments, all written statements
                                                                                                          Accordingly, the Commission finds
                                                  with respect to the proposed rule                                                                              I. Introduction
                                                                                                          good cause, pursuant to Section 19(b)(2)
                                                  change that are filed with the                                                                                    On November 24, 2015, NYSE Arca,
                                                                                                          of the Act,40 for approving the proposed
                                                  Commission, and all written                                                                                    Inc. (‘‘Exchange’’) filed with the
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                                                  communications relating to the                          rule change, as modified by Amendment
                                                                                                          No. 1, prior to the thirtieth day after the            Securities and Exchange Commission
                                                  proposed rule change between the
                                                  Commission and any person, other than                   date of publication of notice in the                     41 See Notice (Exchange representing that it will
                                                                                                          Federal Register.                                      continue to monitor the usage of FLEX Options and
                                                    37 Id.                                                                                                       whether any changes to its rules or the ODD are
                                                    38 See Securities Exchange Act Release No. 57429        39 See Exhibit 3 to the Exchange’s rule filing, as   necessary).
                                                  (March 4, 2008), 73 FR 13058 (March 11, 2008)           amended by Amendment No. 1, supra note 5.                42 15 U.S.C. 78s(b)(2).

                                                  (order approving SR–CBOE–2006–36).                        40 15 U.S.C. 78s(b)(2).                                43 17 CFR 200.30–3(a)(12).




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                                                  14164                       Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices

                                                  (‘‘Commission’’), pursuant to Section                   The Fund is a series of the Trust.8 The                  at least 80% of its net assets in debt
                                                  19(b)(1) of the Securities Exchange Act                 investment adviser to the Fund will be                   securities whose interest is, in the
                                                  of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and             Virtus ETF Advisers LLC (‘‘Adviser’’),                   opinion of bond counsel for the issuer
                                                  Rule 19b–4 thereunder,2 a proposed rule                 and the Fund’s sub-adviser will be                       at the time of issuance, exempt from
                                                  change to list and trade shares                         Cumberland Advisors Inc. (‘‘Sub-                         U.S. federal income tax (‘‘Municipal
                                                  (‘‘Shares’’) of the Cumberland                          Adviser’’).9 Virtus ETF Solutions LLC                    Bonds’’). The Sub-Adviser will invest
                                                  Municipal Bond ETF (‘‘Fund’’), a series                 will serve as the Fund’s operational                     the Fund’s assets using a barbell
                                                  of the ETFis Series Trust I (‘‘Trust’’).                administrator. ETF Distributors LLC will                 strategy, which means that the Sub-
                                                  The proposed rule change was                            serve as the distributor of the Shares on                Adviser will overweight the Fund’s
                                                  published for comment in the Federal                    an agency basis. The Bank of New York                    investments in Municipal Bonds with
                                                  Register on December 14, 2015.3 On                      Mellon (‘‘Administrator’’) will serve as                 maturities on the short and long ends of
                                                  December 29, 2015, the Exchange                         the administrator, custodian, transfer                   the fixed income yield curve, while
                                                  submitted Amendment No. 1 to the                        agent and fund accounting agent for the                  underweighting exposure to Municipal
                                                  proposed rule change.4 On January 21,                   Fund. The Exchange has made the                          Bonds with intermediate maturities.
                                                  2016, pursuant to Section 19(b)(2) of the               following representations and                               Municipal Bonds in which the Fund
                                                  Act,5 the Commission designated a                       statements in describing the Fund and                    may invest include one or more of the
                                                  longer period within which to approve                   its investment strategy, including the                   following: General obligation bonds,
                                                  the proposed rule change, disapprove                    Fund’s portfolio holdings and                            which are typically backed by the full
                                                  the proposed rule change, or institute                  investment restrictions.10                               faith, credit, and taxing power of the
                                                  proceedings to determine whether to                                                                              issuer; revenue bonds, which are
                                                                                                          A. Exchange’s Description of the Fund’s                  typically secured by revenues generated
                                                  disapprove the proposed rule change.6                   Principal Investments                                    by the issuer; discount bonds, which
                                                  The Commission received no comments                       The Fund will seek to provide a                        may be originally issued at a discount
                                                  on the proposed rule change. This order                 competitive level of current income                      to par value or sold at market price
                                                  institutes proceedings under Section                    exempt from federal income tax, while                    below par value; premium bonds, which
                                                  19(b)(2)(B) of the Act 7 to determine                   preserving capital. The Fund, under                      are sold at a premium to par value; zero
                                                  whether to approve or disapprove the                    normal market conditions,11 will invest                  coupon bonds, which are issued at an
                                                  proposed rule change, as modified by
                                                                                                                                                                   original issue discount, with the full
                                                  Amendment No. 1 thereto.                                   8 The Exchange represents that the Trust is
                                                                                                                                                                   value, including accrued interest, paid
                                                                                                          registered under the Investment Company Act of
                                                  II. Description of the Proposed Rule                    1940 (‘‘1940 Act’’). On May 20, 2015, the Trust filed
                                                                                                                                                                   at maturity; and private activity bonds,
                                                  Change                                                  with the Commission an amendment to its                  which are typically issued by or on
                                                                                                          registration statement on Form N–1A under the            behalf of local or state government for
                                                     The Exchange proposes to list and                    Securities Act of 1933 and under the 1940 Act            the purpose of financing the project of
                                                  trade Shares of the Fund, an actively                   relating to the Fund (File Nos. 333–187668 and
                                                                                                          811–22819) (‘‘Registration Statement’’). The
                                                                                                                                                                   a private user.
                                                  managed exchange-traded fund (‘‘ETF’’),                 Exchange further states that the Trust has obtained         The Fund will have no target duration
                                                  under NYSE Arca Equities Rule 8.600,                    certain exemptive relief under the 1940 Act. See         for its investment portfolio, and the
                                                  which governs the listing and trading of                Investment Company Act Release No. 30607 (Jul.           Sub-Adviser may target a shorter or
                                                                                                          23, 2013) (File No. 812–14080).
                                                  Managed Fund Shares on the Exchange.                       9 According to the Exchange, the Adviser and
                                                                                                                                                                   longer average portfolio duration based
                                                                                                          Sub-Adviser are not registered as broker-dealers.        on the Sub-Adviser’s forecast of interest
                                                    1 15  U.S.C. 78s(b)(1).                               The Adviser (but not the Sub-Adviser) is affiliated      rates and view of fixed-income markets
                                                    2 17  CFR 240.19b–4.                                  with one or more broker-dealers, and the Adviser         generally.12 The Sub-Adviser will
                                                     3 See Securities Exchange Act Release No. 76590      has implemented and will maintain a fire wall with       generally apply a heavier weight toward
                                                  (Dec. 8, 2015), 80 FR 77384 (‘‘Notice’’).               respect to each broker-dealer affiliate regarding
                                                                                                          access to information concerning the composition         Municipal Bonds with shorter
                                                     4 In Amendment No. 1, the Exchange clarified
                                                                                                          and changes to the portfolio. In the event (a) the       maturities during periods of high
                                                  that each Municipal Bond (as defined herein) held
                                                  by the Fund must be a constituent of a deal where
                                                                                                          Adviser or Sub-Adviser become registered broker-         interest rates and longer maturities
                                                                                                          dealers or newly affiliated with a broker-dealer, or     during periods of lower interest rates.13
                                                  the deal’s original offering amount was at least $100
                                                                                                          (b) any new adviser or sub-adviser is a registered
                                                  million, clarified whether certain securities would
                                                                                                          broker-dealer or becomes affiliated with a broker-          With respect to credit quality, under
                                                  be exchange-traded or over-the-counter (‘‘OTC’’),                                                                normal market conditions, at least 90%
                                                                                                          dealer, it will implement a fire wall with respect to
                                                  deleted a statement relating to redemption of
                                                  Shares, clarified pricing information for certain
                                                                                                          its relevant personnel or its broker-dealer affiliate    of the Fund’s assets invested in
                                                                                                          regarding access to information concerning the           Municipal Bonds will be in Municipal
                                                  assets, and corrected a typographical error. Because    composition and changes to the portfolio, and will
                                                  Amendment No. 1 to the proposed rule change is          be subject to procedures designed to prevent the use     Bonds rated ‘‘A’’ or better by at least one
                                                  technical in nature and does not materially alter the   and dissemination of material, non-public                major credit rating agency or, if unrated,
                                                  substance of the proposed rule change or raise any      information regarding such portfolio.
                                                  novel regulatory issues, it is not subject to notice                                                             deemed to be of comparable quality by
                                                                                                             10 The Commission notes that additional
                                                  and comment. Amendment No. 1, which amended                                                                      the Sub-Adviser. From time to time, the
                                                                                                          information regarding the Fund, the Trust, and the
                                                  and replaced the original proposal in its entirety,
                                                                                                          Shares, including investment strategies, risks,
                                                  is available on the Commission’s Web site at: http://                                                              12 Duration measures the interest rate sensitivity
                                                                                                          creation and redemption procedures, fees, portfolio
                                                  www.sec.gov/comments/sr-nysearca-2015-93/               holdings disclosure policies, calculation of net asset   of a debt security by assessing and weighting the
                                                  nysearca201593-1.pdf.                                   value (‘‘NAV’’), distributions, and taxes, among         present value of the security’s payment pattern.
                                                     5 15 U.S.C. 78s(b)(2).
                                                                                                          other things, can be found in the Notice,                Generally, the longer the maturity, the greater the
                                                     6 See Securities Exchange Act Release No. 76955,                                                              duration and, therefore, the greater effect interest
                                                                                                          Amendment No. 1 to the proposed rule change, and
                                                  81 FR 4724 (Jan. 27, 2016). The Commission              the Registration Statement, as applicable. See supra     rate changes have on the price of the security.
                                                  designated March 11, 2016 as the date by which the      notes 3, 4, and 8, respectively.                           13 According to the Exchange, under normal
                                                  Commission shall either approve or disapprove, or                                                                market conditions, each Municipal Bond held by
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                                                                                                             11 The term ‘‘under normal market conditions’’
                                                  institute proceedings to determine whether to           includes, but is not limited to, the absence of          the Fund must be a constituent of a deal where the
                                                  disapprove, the proposed rule change. See               extreme volatility or trading halts in the fixed         deal’s original offering amount was at least $100
                                                  Securities Exchange Act Release No. 76955A (Mar.        income markets or the financial markets generally;       million. In addition, no Municipal Bond held by the
                                                  2, 2016), 81 FR 12174 (Mar. 8, 2016) (correcting the    operational issues causing dissemination of              Fund will exceed 30% of the Fund’s net assets, and
                                                  date to ‘‘March 11, 2016’’ as the date by which the     inaccurate market information; or force majeure          the five most heavily weighted Municipal Bonds
                                                  Commission shall either approve or disapprove, or       type events such as systems failure, natural or man-     held by the Fund will not in the aggregate account
                                                  institute proceedings to determine whether to           made disaster, act of God, armed conflict, act of        for more than 50% of the Fund’s assets. Further, the
                                                  disapprove, the proposed rule change).                  terrorism, riot or labor disruption, or any similar      Fund will hold Municipal Bonds of a minimum of
                                                     7 15 U.S.C. 78s(b)(2)(B).                            intervening circumstance.                                13 non-affiliated issuers.



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                                                                               Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices                                                 14165

                                                  Fund may concentrate (i.e., invest more                  OTC securities convertible into common                     investment strategies in an attempt to
                                                  than 25% of its total assets) in particular              stock. These securities will be                            respond to adverse market, economic,
                                                  sectors. The Fund may sell investments                   convertible bonds and convertible                          political, or other conditions. In such
                                                  for a variety of reasons, such as to adjust              preferred stocks.16                                        circumstances, the Fund may hold up to
                                                  the portfolio’s average maturity,                           The Fund may invest directly and                        100% of its portfolio in cash and cash
                                                  duration, or overall credit quality, or to               indirectly in cash equivalents, namely,                    equivalent positions.
                                                  shift assets into and out of higher-                     money market instruments that are the                         The Fund may hold up to an aggregate
                                                  yielding or lower-yielding securities or                 following: U.S. Government obligations                     amount of 15% of its net assets in
                                                  certain sectors.                                         or corporate debt obligations (including                   illiquid assets (calculated at the time of
                                                     According to the Exchange, under                      those subject to repurchase agreements),                   investment), consistent with
                                                  normal market conditions, at least 80%                   banker’s acceptances 17 and certificates                   Commission guidance. The Fund will
                                                  of the Fund’s income will be exempt                      of deposit 18 of domestic branches of                      monitor its portfolio liquidity on an
                                                  from federal income taxes. However, a                    banks, commercial paper,19 and master                      ongoing basis to determine whether, in
                                                  significant portion of the Fund’s income                 notes.20                                                   light of current circumstances, an
                                                  could be derived from securities subject                    In order to maintain sufficient                         adequate level of liquidity is being
                                                  to the alternative minimum tax.                          liquidity, to implement investment                         maintained, and will consider taking
                                                                                                           strategies, or for temporary defensive                     appropriate steps in order to maintain
                                                  B. Exchange’s Description of the Fund’s                  purposes, the Fund may invest a                            adequate liquidity if, through a change
                                                  Other Investments                                        significant portion of its assets in shares                in values, net assets, or other
                                                     While the Fund, under normal market                   of one or more money market funds.                         circumstances, more than 15% of the
                                                  conditions, will invest at least 80% of                  The Fund may also invest in the                            Fund’s net assets are held in illiquid
                                                  its assets in Municipal Bonds, as                        securities of other non-exchange-traded                    assets. Illiquid assets include securities
                                                  described above, the Fund may invest                     investment company securities in                           subject to contractual or other
                                                  its remaining assets in other assets and                 compliance with the 1940 Act and the                       restrictions on resale and other
                                                  financial instruments, as described                      rules thereunder.                                          instruments that lack readily available
                                                  below.                                                      The Fund may write U.S. exchange-                       markets as determined in accordance
                                                     The Fund may invest in equity                         traded call and put options on                             with Commission staff guidance.
                                                  securities, both directly and indirectly                 securities, ETFs, or security indexes to                      The Fund’s investments will be
                                                  through investment in shares of ETFs,14                  seek income, or may purchase or write                      consistent with its investment objective
                                                  other investment companies, and other                    U.S. exchange-traded put or call options                   and will not be used to provide multiple
                                                  types of securities and instruments                      for hedging purposes.                                      returns of a benchmark or to produce
                                                  described below. The equity portion of                      The Fund may purchase securities on                     leveraged returns.
                                                  the Fund’s portfolio may include                         a when-issued basis or for settlement at
                                                                                                           a future date (forward commitment), if                     II. Proceedings to Determine Whether to
                                                  common stocks traded on securities
                                                                                                           the Fund holds sufficient liquid assets                    Approve or Disapprove SR–NYSEArca–
                                                  exchanges or in the OTC market. In
                                                                                                           to meet the purchase price.                                2015–93 and Grounds for Disapproval
                                                  addition to common stocks, the equity
                                                                                                                                                                      Under Consideration
                                                  portion of the Fund’s portfolio may also                 C. Exchange’s Description of the Fund’s
                                                  include exchange-traded and OTC                          Investment Restrictions                                       The Commission is instituting
                                                  preferred stocks, and exchange-traded                                                                               proceedings pursuant to Section
                                                                                                             The Fund may, from time to time,                         19(b)(2)(B) of the Act 21 to determine
                                                  and OTC warrants.15
                                                     The Fund may purchase taxable                         take temporary defensive positions that                    whether the proposed rule change, as
                                                  municipal bonds when the Sub-Adviser                     are inconsistent with its principal                        modified by Amendment No. 1 thereto,
                                                  believes they offer opportunities for the                                                                           should be approved or disapproved.
                                                                                                              16 The criteria above also will apply to exchange-
                                                  Fund, or variable rate demand notes                      traded convertible preferred stocks and exchange-
                                                                                                                                                                      Institution of such proceedings is
                                                  (‘‘VRDNs’’) that pay interest monthly or                 traded stocks into which convertible bonds may be          appropriate at this time in view of the
                                                  quarterly based on a floating rate that is               converted. See supra note 15.                              legal and policy issues raised by the
                                                  reset daily or weekly based on an index                     17 Banker’s acceptances are time drafts drawn on
                                                                                                                                                                      proposed rule change. Institution of
                                                                                                           and ‘‘accepted’’ by a bank. When a bank ‘‘accepts’’        proceedings does not indicate that the
                                                  of short-term municipal rates. The Fund                  such a time draft, it assumes liability for its
                                                  also may invest in exchange-traded and                   payment. When the Fund acquires a banker’s                 Commission has reached any
                                                                                                           acceptance, the bank that ‘‘accepted’’ the time draft      conclusions with respect to any of the
                                                    14 The ETFs in which the Fund may invest will          is liable for payment of interest and principal when       issues involved. Rather, as described
                                                  be registered under the 1940 Act and include             due. The banker’s acceptance carries the full faith        below, the Commission seeks and
                                                  Investment Company Units (as described in NYSE           and credit of such bank.
                                                                                                              18 A certificate of deposit is an unsecured, interest   encourages interested persons to
                                                  Arca Equities Rule 5.2(j)(3)); Portfolio Depositary
                                                  Receipts (as described in NYSE Arca Equities Rule        bearing debt obligation of a bank.                         provide comments on the proposed rule
                                                  8.100); and Managed Fund Shares (as described in            19 Commercial paper is an unsecured, short-term         change.
                                                  NYSE Arca Equities Rule 8.600). Such ETFs all will       debt obligation of a bank, corporation, or other              Pursuant to Section 19(b)(2)(B) of the
                                                  be listed and traded in the U.S. on registered           borrower. Commercial paper maturity generally              Act,22 the Commission is providing
                                                  exchanges.                                               ranges from two to 270 days and is usually sold on
                                                    15 With respect to its exchange-traded equity          a discounted basis rather than as an interest-bearing      notice of the grounds for disapproval
                                                  securities investments, the Fund will normally           instrument. The Fund will invest directly in               under consideration. The Commission is
                                                  invest in equity securities that are listed and traded   commercial paper only if it is rated in one of the         instituting proceedings to allow for
                                                  on a U.S. exchange or in markets that are members        top two rating categories by Moody’s, S&P or Fitch         additional analysis of the proposed rule
                                                  of the Intermarket Surveillance Group (‘‘ISG’’) or       or, if not rated, is of equivalent quality in the
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                                                  parties to a comprehensive surveillance sharing          Adviser’s opinion. Commercial paper may include            change’s consistency with Section
                                                  agreement with the Exchange. In any case, not more       master notes of the same quality. Master notes are         6(b)(5) of the Act, which requires,
                                                  than 10% of the net assets of the Fund in the            unsecured obligations which are redeemable upon            among other things, that the rules of a
                                                  aggregate invested in equity securities (except for      demand of the holder and which permit the                  national securities exchange be
                                                  non-exchange-traded investment company                   investment of fluctuating amounts at varying rates
                                                  securities) will consist of equity securities whose      of interest.                                               ‘‘designed to prevent fraudulent and
                                                  principal market is not a member of ISG or a market         20 Master notes may be acquired by the Fund
                                                                                                                                                                       21 15    U.S.C. 78s(b)(2)(B).
                                                  with which the Exchange does not have a                  through the master note program of the Fund’s
                                                  comprehensive surveillance sharing agreement.            custodian bank.                                             22 Id.




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                                                  14166                        Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices

                                                  manipulative acts and practices, to                     Bond held by the Fund will exceed 30%                 office of the Exchange. All comments
                                                  promote just and equitable principles of                of the Fund’s net assets, and the five                received will be posted without change;
                                                  trade,’’ and ‘‘to protect investors and the             most heavily weighted Municipal Bonds                 the Commission does not edit personal
                                                  public interest.’’ 23                                   held by the Fund will not in the                      identifying information from
                                                                                                          aggregate account for more than 50% of                submissions. You should submit only
                                                  III. Procedure: Request for Written
                                                                                                          the Fund’s assets; and (iii) the Fund will            information that you wish to make
                                                  Comments
                                                                                                          hold Municipal Bonds of a minimum of                  available publicly. All submissions
                                                     The Commission requests that                         13 non-affiliated issuers. Apart from                 should refer to File Number SR–
                                                  interested persons provide written                      these broad representations, the                      NYSEArca–2015–93 and should be
                                                  submissions of their views, data, and                   Exchange provides no other information                submitted on or before April 6, 2016.
                                                  arguments with respect to the issues                    about the kinds of municipal bonds in                 Rebuttal comments should be submitted
                                                  identified above, as well as any other                  which the Fund may invest.                            by April 20,2016.
                                                  concerns they may have with the                         Accordingly, the Commission seeks                       For the Commission, by the Division of
                                                  proposal. In particular, the Commission                 comment on whether the Exchange’s                     Trading and Markets, pursuant to delegated
                                                  invites the written views of interested                 representations relating to the                       authority.27
                                                  persons concerning whether the                          Municipal Bonds to be held by the Fund                Robert W. Errett,
                                                  proposal is consistent with Section                     are sufficiently clear in their application
                                                                                                                                                                Deputy Secretary.
                                                  6(b)(5) or any other provision of the Act,              to municipal bonds, specifically, and
                                                  or the rules and regulations thereunder.                                                                      [FR Doc. 2016–05855 Filed 3–15–16; 8:45 am]
                                                                                                          are consistent with the requirements of
                                                  Although there do not appear to be any                  Section 6(b)(5) of the Act, which, among              BILLING CODE 8011–01–P

                                                  issues relevant to approval or                          other things, requires that the rules of an
                                                  disapproval that would be facilitated by                exchange be designed to prevent
                                                  an oral presentation of views, data, and                fraudulent and manipulative acts and                  SOCIAL SECURITY ADMINISTRATION
                                                  arguments, the Commission will                          practices.                                            [Docket No. SSA–2015–0055]
                                                  consider, pursuant to Rule 19b–4, any                      Comments may be submitted by any
                                                  request for an opportunity to make an                   of the following methods:                             Social Security Ruling 16–3p; Titles II
                                                  oral presentation.24                                    Electronic Comments                                   and XVI: Evaluation of Symptoms in
                                                     Interested persons are invited to                                                                          Disability Claims
                                                  submit written data, views, and                           • Use the Commission’s Internet
                                                  arguments regarding whether the                         comment form (http://www.sec.gov/                     AGENCY:     Social Security Administration.
                                                  proposal should be approved or                          rules/sro.shtml); or                                  ACTION:     Notice of Social Security Ruling
                                                  disapproved by April 6, 2016. Any                         • Send an email to rule-comments@                   (SSR).
                                                  person who wishes to file a rebuttal to                 sec.gov. Please include File Number SR–
                                                  any other person’s submission must file                 NYSEArca–2015–93 on the subject line.                 SUMMARY:   We are providing notice of
                                                  that rebuttal by April 20, 2016. The                    Paper Comments                                        SSR 16–3p. This Ruling supersedes SSR
                                                  Commission asks that commenters                                                                               96–7p. This Ruling provides guidance
                                                                                                             • Send paper comments in triplicate                about how we evaluate statements
                                                  address the sufficiency of the
                                                                                                          to Secretary, Securities and Exchange                 regarding the intensity, persistence, and
                                                  Exchange’s statements in support of the
                                                                                                          Commission, 100 F Street NE.,                         limiting effects of symptoms in
                                                  proposal, which are set forth in the
                                                                                                          Washington, DC 20549–1090.                            disability claims under Titles II and XVI
                                                  Notice 25 and in Amendment No. 1 to
                                                  the proposed rule change,26 in addition                 All submissions should refer to File                  of the Social Security Act (Act) and
                                                  to any other comments they may wish                     Numbers SR–NYSEArca–2015–93. This                     blindness claims under Title XVI of the
                                                  to submit about the proposed rule                       file number should be included on the                 Act.
                                                  change.                                                 subject line if email is used. To help the            DATES: Effective Date: March 16, 2016.
                                                     The Exchange provides that the Fund                  Commission process and review your
                                                                                                          comments more efficiently, please use                 FOR FURTHER INFORMATION CONTACT:
                                                  may invest in one or more of the                                                                              Elaine Tocco, Office of Disability Policy,
                                                  following broad categories of Municipal                 only one method. The Commission will
                                                                                                          post all comments on the Commission’s                 Social Security Administration, 6401
                                                  Bonds: (a) General obligation bonds; (b)                                                                      Security Boulevard, Baltimore, MD
                                                  revenue bonds; (c) discount bonds; (d)                  Internet Web site (http://www.sec.gov/
                                                                                                          rules/sro.shtml). Copies of the                       21235–6401, (410) 966–6356. For
                                                  premium bonds; (e) zero coupon bonds;                                                                         information on eligibility or filing for
                                                  and (f) private activity bonds. Moreover,               submission, all subsequent
                                                                                                          amendments, all written statements                    benefits, call our national toll-free
                                                  the Exchange represents that: (i) Each                                                                        number, 1–800–772–1213 or TTY 1–
                                                  Municipal Bond held by the Fund must                    with respect to the proposed rule
                                                                                                          change that are filed with the                        800–325–0778, or visit our internet site,
                                                  be a constituent of a deal where the                                                                          Social Security Online, at http://
                                                  deal’s original offering amount was at                  Commission, and all written
                                                                                                          communications relating to the                        www.socialsecurity.gov.
                                                  least $100 million; (ii) no Municipal
                                                                                                          proposed rule change between the                      SUPPLEMENTARY INFORMATION:     Although
                                                    23 15  U.S.C. 78f(b)(5).                              Commission and any person, other than                 5 U.S.C. 552(a)(1) and (a)(2) do not
                                                     24 Section 19(b)(2) of the Act, as amended by the    those that may be withheld from the                   require us to publish this SSR, we are
                                                  Securities Act Amendments of 1975, Public Law           public in accordance with the                         doing so in accordance with 20 CFR
                                                  94–29 (June 4, 1975), grants the Commission             provisions of 5 U.S.C. 552, will be                   402.35(b)(1).
                                                  flexibility to determine what type of proceeding—
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                                                  either oral or notice and opportunity for written
                                                                                                          available for Web site viewing and                      Through SSRs, we convey to the
                                                  comments—is appropriate for consideration of a          printing in the Commission’s Public                   public SSA precedential decisions
                                                  particular proposal by a self-regulatory                Reference Room, 100 F Street NE.,                     relating to the Federal old age,
                                                  organization. See Securities Act Amendments of          Washington, DC 20549, on official                     survivors, disability, supplemental
                                                  1975, Senate Comm. on Banking, Housing & Urban
                                                  Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
                                                                                                          business days between the hours of                    security income, and special veterans
                                                  (1975).                                                 10:00 a.m. and 3:00 p.m. Copies of these              benefits programs. We may base SSRs
                                                     25 See supra note 3.                                 filings also will be available for
                                                     26 See supra note 4.                                 inspection and copying at the principal                 27 17   CFR 200.30–3(a)(57).



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Document Created: 2016-03-15 23:44:19
Document Modified: 2016-03-15 23:44:19
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 14163 

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