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 Range		14163-14166
FR Document		2016-05855

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.
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\21\ 15 U.S.C. 78s(b)(2)(B).
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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).
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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
mstockstill on DSK4VPTVN1PROD with NOTICES

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).

VerDate Sep<11>2014 18:11 Mar 15, 2016 Jkt 238001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\16MRN1.SGM 16MRN1

Document Created: 2016-03-15 23:44:19
Document Modified: 2016-03-15 23:44:19

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		81 FR 14163