81 FR 26595 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Granting Approval of a Proposed Rule Change Regarding Monthly Distributions, Excess Returns, and Share Index Factors of Certain AccuShares® Trust I Funds
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 85 (May 3, 2016)
Federal Register Volume 81, Issue 85 (May 3, 2016)
| Page Range | 26595-26597 | |
| FR Document | 2016-10271 |
[Federal Register Volume 81, Number 85 (Tuesday, May 3, 2016)] [Notices] [Pages 26595-26597] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-10271] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77722; File No. SR-NASDAQ-2016-034] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Granting Approval of a Proposed Rule Change Regarding Monthly Distributions, Excess Returns, and Share Index Factors of Certain AccuShares[supreg] Trust I Funds April 27, 2016. On March 2, 2016, The NASDAQ Stock Market LLC (``NASDAQ'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to modify specific listing requirements applicable to shares of certain funds issued by AccuShares[supreg] Trust I (``AccuShares Trust''). The proposed rule change was published for comment in the Federal Register on March 17, 2016.\3\ The Commission received two comments on the proposed rule change.\4\ This order grants approval of the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 77353 (Mar. 11, 2016), 81 FR 14489 (``Notice''). \4\ In a comment letter dated March 27, 2016, an anonymous commenter stated: ``Good.'' In another comment letter dated March 27, 2016, Dan Schumann stated: ``Please do NOT change any rules that would limit-stop-prevent the trading of ETF's [sic].'' All comments on the proposal are available at: http://www.sec.gov/comments/sr-nasdaq-2016-034/nasdaq2016034.shtml. --------------------------------------------------------------------------- I. Background On February 18, 2015, the Commission approved an Exchange proposal to adopt NASDAQ Rule 5713, which governs the listing and trading of Paired Class Shares, and to list and trade shares of the following seven funds issued by the AccuShares Trust pursuant to NASDAQ Rule 5713: (1) AccuShares S&P GSCI[supreg] Spot Fund; (2) AccuShares S&P GSCI[supreg] Agriculture and Livestock Spot Fund; (3) AccuShares S&P GSCI[supreg] Industrial Metals Spot Fund; (4) AccuShares S&P GSCI[supreg] Crude Oil Spot Fund; (5) AccuShares S&P GSCI[supreg] Brent Oil Spot Fund; (6) AccuShares S&P GSCI[supreg] Natural Gas Spot Fund; and (7) AccuShares Spot CBOE[supreg] VIX[supreg] Fund (``VIX Fund,'' and collectively, ``AccuShares Funds'').\5\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 74299 (Feb. 18, 2015), 80 FR 9778 (Feb. 24, 2015) (SR-NASDAQ-2014-065). The Exchange states that currently only shares of the VIX Fund are listed and trading. See Notice, supra note 3, 81 FR at 14489 n.4. --------------------------------------------------------------------------- NASDAQ Rule 5713(c) defines a Paired Class Share as a security: (1) That is issued by a trust on behalf of a segregated series (``Fund''), as part of a pair of shares of opposing classes whose respective underlying values move in opposite directions as the value of the Fund's ``Underlying Benchmark'' \6\ varies from its starting level, where (a) one constituent of the pair is positively linked to the Fund's Underlying Benchmark (``Up Shares''), and (b) the other constituent is inversely linked to the Fund's Underlying Benchmark (``Down Shares''); (2) that is issued in exchange for cash; (3) the issuance proceeds of which are invested and reinvested in highly rated, short-term financial instruments that mature within 90 calendar days and that serve the functions of (a) covering the Fund's expenses, (b) providing income distributions to investors, based on income (after expenses) from the financial instruments held by the Fund, (c) providing cash proceeds for regular and special distributions to be made in cash in lieu of Paired Class Shares, and (d) providing cash proceeds to be paid upon the redemption of Paired Class Shares; (4) that represents a beneficial interest in the Fund; (5) the value of which is determined by the underlying value of the Fund that is attributable to the class of which such security is a part, which security underlying value will either (a) increase as a result of an increase in the Underlying Benchmark and decrease as a result of a decrease in the Underlying Benchmark (in the case of an Up Share), or (b) increase as a result of a decrease in the Underlying Benchmark and decrease as the result of an increase in the Underlying Benchmark (in the case of a Down Share); (6) that, when timely aggregated in a specified minimum number or amount of securities, along with an equal number or amount of the securities of the opposite class that constitute the other part of the pair, may be redeemed for a distribution of cash on specified dates by authorized parties; and (7) that may be subject to [[Page 26596]] mandatory redemption of all Paired Class Shares under specified circumstances. --------------------------------------------------------------------------- \6\ An ``Underlying Benchmark'' is an index or other numerical variable whose value reflects the value of assets, prices, price volatility, or other economic interests. See NASDAQ Rule 5713(e). --------------------------------------------------------------------------- The custodian of an Accushares Fund uses a mathematical formula to calculate the liquidation value attributable to each of its classes of Paired Class Shares (``Class Value'') and to each share of each class (``Class Value per Share'') at the end of each Regular Market Session. The Class Value per Share of each Accushares Fund's Up Shares will have a fixed one-to-one positive linear relationship with the fund's Underlying Benchmark (``Up Share Index Factor''), and the Class Value per Share of each fund's Down Shares will have a fixed one-to-one inverse linear relationship with the fund's Underlying Benchmark (``Down Share Index Factor,'' and together with the Up Share Index Factor, collectively, ``Share Index Factors''). The Down Share Index Factor will equal negative one times the Up Share Index Factor. Share Index Factors are used to determine the Class Value and Class Value Per Share of each Accushares Fund.\7\ --------------------------------------------------------------------------- \7\ See Notice, supra note 3, 81 FR at 14491. --------------------------------------------------------------------------- The sponsor of an Accushares Fund establishes an Accushares Fund's Share Index Factors at the inception of the fund's operation, and, after any regular or special distribution, the fund resets its Share Index Factors. For the VIX Fund, regular distributions are on the 15th of every month. II. Summary of the Proposed Rule Change In this proposal, NASDAQ proposes the following changes applicable to the listing and trading of shares of certain AccuShares Funds. A. Frequency of Regular Distributions 8 --------------------------------------------------------------------------- \8\ See id., 81 FR at 14491-92. --------------------------------------------------------------------------- With respect to the listing requirements for the AccuShares S&P[supreg] GSCI[supreg] Industrial Metals Spot Fund, AccuShares S&P[supreg] GSCI[supreg] Crude Oil Spot Fund, and AccuShares S&P[supreg] GSCI[supreg] Brent Oil Spot Fund (collectively, ``Distribution Funds''), the Exchange proposes to change the frequency of regular distributions from quarterly to monthly. B. Changes to the Underlying Benchmark 9 --------------------------------------------------------------------------- \9\ See id., 81 FR at 14492-93. --------------------------------------------------------------------------- With respect to the listing requirements for the AccuShares S&P[supreg] GSCI[supreg] Crude Oil Spot Fund and the AccuShares S&P[supreg] GSCI[supreg] Natural Gas Spot Fund, the Exchange proposes to change the respective Underlying Benchmarks, as follows: (1) For the AccuShares S&P[supreg] GSCI[supreg] Crude Oil Spot Fund, the Exchange proposes to change this fund's Underlying Benchmark from the ``S&P GSCI Crude Oil Spot Index'' to the ``S&P GSCI Crude Oil Excess Return Index;'' \10\ and (2) for the AccuShares S&P[supreg] GSCI[supreg] Natural Gas Spot Fund, the Exchange proposes to change this fund's Underlying Benchmark from the ``S&P GSCI Natural Gas Spot Index'' to the ``S&P GSCI Natural Gas Excess Return Index.'' \11\ --------------------------------------------------------------------------- \10\ As a result of the proposed change to the Underlying Benchmark, the Exchange also proposes to change the name of this fund to ``AccuShares S&P[supreg] GSCI[supreg] Crude Oil Excess Return Fund.'' \11\ As a result of the proposed change to the Underlying Benchmark, the Exchange also proposes to change the name of this fund to ``AccuShares S&P[supreg] GSCI[supreg] Natural Gas Excess Return Fund.'' --------------------------------------------------------------------------- According to the Exchange, both the spot and the excess return variants of each respective Underlying Benchmark are computed from the same underlying futures contracts at the same point in time. The difference between the two variants occurs only on 5 trading days: The 5th through the 9th trading days of each month (``five-day period''). During the five-day period, each Underlying Benchmark, whether monthly return or excess return, moves its reference from the front-month expiry contract to the next following contract (that is, the futures contract for the next consecutive expiry month) in five equal installments of 20% per day to capture the cost or the benefit from rolling the nearby front-month expiry contract into the next following expiry contract. In the excess return variant, the cost or benefit of transacting out of the current or front-month expiry contract and into the next or following futures contract is added to (or subtracted from) the index value. In contrast, in the spot variant, this cost or benefit is not added to (or subtracted from) the index value, and therefore gives rise to the need for anticipatory hedging that is market makers and authorized participants expect to result in increased bid/offer spreads. C. Changes to the VIX Fund 12 --------------------------------------------------------------------------- \12\ See id., 81 FR at 14493. --------------------------------------------------------------------------- The Exchange proposes, with respect to the VIX Fund, that: (1) The Share Index Factors be reset each Tuesday (as well as after regular and special distributions); and (2) the regular distributions be made on the third Tuesday of every month (rather than on the 15th of every month) so that each monthly distribution date and the end of each monthly measuring period coincide with a Share Index Factor reset. III. Discussion and Commission Findings After careful consideration, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.\13\ In particular, and as discussed further below, the Commission finds that the proposed rule change is consistent with the requirements of Section 6(b)(5) of the Act,\14\ which requires, among other things, that the Exchange's rules be designed to promote just and equitable principles of trade; to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities; to remove impediments to and perfect the mechanism of a free and open market and a national market system; and, in general, to protect investors and the public interest.\15\ --------------------------------------------------------------------------- \13\ In approving this proposed rule change, the Commission notes that it has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \14\ 15 U.S.C. 78f(b)(5). \15\ The Commission notes that, other than the changes described herein, all of the representations in support of the Prior Order remain unchanged. See Notice, supra note 3, 81 FR at 14493 (noting that, other than the three proposed changes, the ``representations made in the original AccuShares Order and AccuShares Proposal remain unchanged''). See supra note 5; see also Notice, supra note 3, 81 FR at 14489 n.4 (citing to the AccuShares Order and AccuShares Proposal). --------------------------------------------------------------------------- With respect to the proposed changes to the frequency of monthly distributions for the Distribution Funds, the Commission believes that the proposed changes are reasonably designed to: (1) Allow investors to realize and reallocate gains from the Distribution Funds more frequently; and (2) appropriately align the changes in the Class Values per Share of both the Up Shares and the Down Shares with changes in the corresponding Underlying Benchmark values. The Commission believes that these more-frequent regular distributions may improve both trading in, and hedging of, the shares, because monthly distributions and the corresponding monthly Share Index Factor resets would more closely align these funds with the most liquid monthly futures contracts. The Commission notes that, in support of this proposed change, the Exchange makes the following representations: (1) In each instance of a distribution, the sponsor will continue to post a notice of the event and its details on the sponsor's Web site (www.AccuShares.com); and (2) each Accushares Fund engaging in a regular [[Page 26597]] distribution (or, a special distribution, corrective distribution, or net income distribution) will continue to provide at least three business days' advance notice (or longer advance notice as may be required by the Exchange) \16\ of such an event, as currently required.\17\ --------------------------------------------------------------------------- \16\ The Exchange may determine that longer notice is advisable in some circumstances (e.g., an extended market break). \17\ See Notice, supra note 3, 81 FR at 14492. --------------------------------------------------------------------------- With respect to the proposed changes to the Underlying Benchmarks for the AccuShares S&P[supreg] GSCI[supreg] Crude Oil Spot Fund and the AccuShares S&P[supreg] GSCI[supreg] Natural Gas Spot Fund, the Commission agrees that the excess return variant--which, in contrast to the spot variant, captures the cost or benefit of transacting out of the current or front-month expiry contract and into the next or following futures contract--is not a novel or unique index variant and is one that is employed by other types of exchange-traded products.\18\ The Commission believes that the proposed changes to the Underlying Benchmarks for the AccuShares S&P[supreg] GSCI[supreg] Crude Oil Spot Fund and the AccuShares S&P[supreg] GSCI[supreg] Natural Gas Spot Fund are reasonable because the excess return variant for these Underlying Benchmarks, which contains the cost or benefit of the roll forward, is reasonably designed to permit more efficient hedging with conventional futures contracts.\19\ --------------------------------------------------------------------------- \18\ See id., 81 FR at 14492 n.25 and accompanying text. \19\ The Exchange represents that the excess return variant is an index variant that (1) has been used by and is familiar to market makers and other market participants; and (2) is directly hedgeable with conventional futures contracts, which contain the cost or benefit of the roll forward. See id., 81 FR at 14492. --------------------------------------------------------------------------- With respect to the proposal to reset the Share Index Factors of the VIX Fund more frequently (i.e., weekly), the Commission believes that more frequent resets of the Share Index Factors for the VIX Fund are reasonably designed to benefit market participants that trade shares of the VIX Fund because the increased frequency may improve the arbitrage function of the shares by aligning the setting of the Share Index Factors with the expiry of each weekly VIX futures contract, and because the Share Index Factor will reset with a frequency closer to the daily measurements of spot VIX. The changes to the VIX Fund support the prospect of improved and simplified arbitrage and hedging of VIX Fund shares because the settlement of the shorter VIX futures will coincide with each Share Index Factor reset. In addition, the potentially improved hedgeability of the VIX Fund shares as a result of the proposed changes is expected to bring the share trading prices closer aligned with the corresponding share Class Values, which are tied directly to changes in spot VIX values. The Commission notes that it received two comments regarding the proposed rule change: one comment supporting the proposal; and another comment addressing exchange-traded funds generally. The Commission notes that the issue raised by the latter comment does not squarely address the Paired Class Shares, which are the subject of this proposed rule change.\20\ --------------------------------------------------------------------------- \20\ See supra note 4. --------------------------------------------------------------------------- For the foregoing reasons, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act \21\ and the rules and regulations thereunder applicable to a national securities exchange. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR-NASDAQ-2016-034) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-10271 Filed 5-2-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 85 / Tuesday, May 3, 2016 / Notices 26595
furtherance of the purposes of the Act. For the Commission, by the Division of Brent Oil Spot Fund; (6) AccuShares
If the Commission takes such action, the Trading and Markets, pursuant to delegated S&P GSCI® Natural Gas Spot Fund; and
Commission shall institute proceedings authority.14 (7) AccuShares Spot CBOE® VIX® Fund
to determine whether the proposed rule Robert W. Errett, (‘‘VIX Fund,’’ and collectively,
should be approved or disapproved. Deputy Secretary. ‘‘AccuShares Funds’’).5
[FR Doc. 2016–10273 Filed 5–2–16; 8:45 am] NASDAQ Rule 5713(c) defines a
IV. Solicitation of Comments
BILLING CODE 8011–01–P Paired Class Share as a security: (1) That
Interested persons are invited to is issued by a trust on behalf of a
submit written data, views, and segregated series (‘‘Fund’’), as part of a
arguments concerning the foregoing, SECURITIES AND EXCHANGE pair of shares of opposing classes whose
including whether the proposed rule COMMISSION respective underlying values move in
change is consistent with the Act. [Release No. 34–77722; File No. SR– opposite directions as the value of the
Comments may be submitted by any of NASDAQ–2016–034] Fund’s ‘‘Underlying Benchmark’’ 6
the following methods: varies from its starting level, where (a)
Self-Regulatory Organizations; The one constituent of the pair is positively
Electronic Comments NASDAQ Stock Market LLC; Order linked to the Fund’s Underlying
• Use the Commission’s Internet Granting Approval of a Proposed Rule Benchmark (‘‘Up Shares’’), and (b) the
comment form (http://www.sec.gov/ Change Regarding Monthly other constituent is inversely linked to
rules/sro.shtml); or Distributions, Excess Returns, and the Fund’s Underlying Benchmark
Share Index Factors of Certain (‘‘Down Shares’’); (2) that is issued in
• Send an email to rule-comments@ AccuShares® Trust I Funds exchange for cash; (3) the issuance
sec.gov. Please include File Number SR–
proceeds of which are invested and
FINRA–2016–013 on the subject line. April 27, 2016.
reinvested in highly rated, short-term
On March 2, 2016, The NASDAQ
Paper Comments financial instruments that mature
Stock Market LLC (‘‘NASDAQ’’ or
within 90 calendar days and that serve
• Send paper comments in triplicate ‘‘Exchange’’) filed with the Securities
the functions of (a) covering the Fund’s
to Secretary, Securities and Exchange and Exchange Commission
expenses, (b) providing income
Commission, 100 F Street NE., (‘‘Commission’’), pursuant to Section
distributions to investors, based on
Washington, DC 20549–1090. 19(b)(1) of the Securities Exchange Act
income (after expenses) from the
of 1934 (‘‘Act’’) 1 and Rule 19b–4
All submissions should refer to File financial instruments held by the Fund,
thereunder,2 a proposed rule change to
Number SR–FINRA–2016–013. This file (c) providing cash proceeds for regular
modify specific listing requirements
number should be included on the and special distributions to be made in
applicable to shares of certain funds
subject line if email is used. To help the cash in lieu of Paired Class Shares, and
issued by AccuShares® Trust I
Commission process and review your (d) providing cash proceeds to be paid
(‘‘AccuShares Trust’’). The proposed
comments more efficiently, please use upon the redemption of Paired Class
rule change was published for comment
only one method. The Commission will Shares; (4) that represents a beneficial
in the Federal Register on March 17,
post all comments on the Commission’s interest in the Fund; (5) the value of
2016.3 The Commission received two
Internet Web site (http://www.sec.gov/ which is determined by the underlying
comments on the proposed rule
rules/sro.shtml). Copies of the value of the Fund that is attributable to
change.4 This order grants approval of
submission, all subsequent the class of which such security is a
the proposed rule change.
amendments, all written statements part, which security underlying value
with respect to the proposed rule I. Background will either (a) increase as a result of an
change that are filed with the On February 18, 2015, the increase in the Underlying Benchmark
Commission, and all written Commission approved an Exchange and decrease as a result of a decrease in
communications relating to the proposal to adopt NASDAQ Rule 5713, the Underlying Benchmark (in the case
proposed rule change between the which governs the listing and trading of of an Up Share), or (b) increase as a
Commission and any person, other than Paired Class Shares, and to list and result of a decrease in the Underlying
those that may be withheld from the trade shares of the following seven Benchmark and decrease as the result of
public in accordance with the funds issued by the AccuShares Trust an increase in the Underlying
provisions of 5 U.S.C. 552, will be pursuant to NASDAQ Rule 5713: (1) Benchmark (in the case of a Down
available for Web site viewing and AccuShares S&P GSCI® Spot Fund; (2) Share); (6) that, when timely aggregated
printing in the Commission’s Public AccuShares S&P GSCI® Agriculture and in a specified minimum number or
Reference Room, 100 F Street NE., Livestock Spot Fund; (3) AccuShares amount of securities, along with an
Washington, DC 20549 on official S&P GSCI® Industrial Metals Spot Fund; equal number or amount of the
business days between the hours of (4) AccuShares S&P GSCI® Crude Oil securities of the opposite class that
10:00 a.m. and 3:00 p.m. Copies of such Spot Fund; (5) AccuShares S&P GSCI® constitute the other part of the pair, may
filing also will be available for be redeemed for a distribution of cash
inspection and copying at the principal 14 17 CFR 200.30–3(a)(12). on specified dates by authorized parties;
office of FINRA. All comments received 1 15 U.S.C. 78s(b)(1). and (7) that may be subject to
will be posted without change; the 2 17 CFR 240.19b–4.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Commission does not edit personal 3 See Securities Exchange Act Release No. 77353 5 See Securities Exchange Act Release No. 74299
identifying information from (Mar. 11, 2016), 81 FR 14489 (‘‘Notice’’). (Feb. 18, 2015), 80 FR 9778 (Feb. 24, 2015) (SR–
4 In a comment letter dated March 27, 2016, an NASDAQ–2014–065). The Exchange states that
submissions. You should submit only anonymous commenter stated: ‘‘Good.’’ In another currently only shares of the VIX Fund are listed and
information that you wish to make comment letter dated March 27, 2016, Dan trading. See Notice, supra note 3, 81 FR at 14489
available publicly. All submissions Schumann stated: ‘‘Please do NOT change any rules n.4.
should refer to File Number SR–FINRA– that would limit-stop-prevent the trading of ETF’s 6 An ‘‘Underlying Benchmark’’ is an index or
[sic].’’ All comments on the proposal are available other numerical variable whose value reflects the
2016–013, and should be submitted on at: http://www.sec.gov/comments/sr-nasdaq-2016– value of assets, prices, price volatility, or other
or before May 24, 2016. 034/nasdaq2016034.shtml. economic interests. See NASDAQ Rule 5713(e).
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![Federal Register / Vol. 81, No. 85 / Tuesday, May 3, 2016 / Notices 26597
distribution (or, a special distribution, changes is expected to bring the share issuers to provide disclosures regarding
corrective distribution, or net income trading prices closer aligned with the the source and chain of custody of
distribution) will continue to provide at corresponding share Class Values, certain minerals used in their products.
least three business days’ advance which are tied directly to changes in The information provided is mandatory
notice (or longer advance notice as may spot VIX values. and all information is made available to
be required by the Exchange) 16 of such The Commission notes that it received the public upon request. We estimate
an event, as currently required.17 two comments regarding the proposed that Form SD takes approximately
With respect to the proposed changes rule change: one comment supporting 480.61 hours per response to prepare
to the Underlying Benchmarks for the the proposal; and another comment and is filed by approximately 864
AccuShares S&P® GSCI® Crude Oil Spot addressing exchange-traded funds issuers. We estimate that 75% of the
Fund and the AccuShares S&P® GSCI® generally. The Commission notes that 480.61 hours per response (360.46
Natural Gas Spot Fund, the Commission the issue raised by the latter comment hours) is prepared by the issuer
agrees that the excess return variant— does not squarely address the Paired internally for a total annual burden of
which, in contrast to the spot variant, Class Shares, which are the subject of 311,437 hours (360.46 hours per
captures the cost or benefit of this proposed rule change.20 response × 864 responses).
transacting out of the current or front- For the foregoing reasons, the An agency may not conduct or
month expiry contract and into the next Commission finds that the proposed sponsor, and a person is not required to
or following futures contract—is not a rule change is consistent with Section respond to, a collection of information
novel or unique index variant and is one 6(b)(5) of the Act 21 and the rules and unless it displays a currently valid
that is employed by other types of regulations thereunder applicable to a control number.
exchange-traded products.18 The national securities exchange. The public may view the background
Commission believes that the proposed documentation for this information
changes to the Underlying Benchmarks IV. Conclusion
collection at the following Web site,
for the AccuShares S&P® GSCI® Crude It is therefore ordered, pursuant to www.reginfo.gov. Comments should be
Oil Spot Fund and the AccuShares Section 19(b)(2) of the Act, that the directed to: (i) Desk Officer for the
S&P® GSCI® Natural Gas Spot Fund are proposed rule change (SR–NASDAQ– Securities and Exchange Commission,
reasonable because the excess return 2016–034) be, and it hereby is, Office of Information and Regulatory
variant for these Underlying approved. Affairs, Office of Management and
Benchmarks, which contains the cost or For the Commission, by the Division of Budget, Room 10102, New Executive
benefit of the roll forward, is reasonably Trading and Markets, pursuant to delegated Office Building, Washington, DC 20503,
designed to permit more efficient authority.22 or by sending an email to: Shagufta_
hedging with conventional futures Robert W. Errett, Ahmed@omb.eop.gov; and (ii) Pamela
contracts.19 Deputy Secretary. Dyson, Director/Chief Information
With respect to the proposal to reset [FR Doc. 2016–10271 Filed 5–2–16; 8:45 am] Officer, Securities and Exchange
the Share Index Factors of the VIX Fund Commission, c/o Remi Pavlik-Simon,
BILLING CODE 8011–01–P
more frequently (i.e., weekly), the 100 F Street NE., Washington, DC 20549
Commission believes that more frequent or send an email to: PRA_Mailbox@
resets of the Share Index Factors for the SECURITIES AND EXCHANGE sec.gov. Comments must be submitted to
VIX Fund are reasonably designed to COMMISSION OMB within 30 days of this notice.
benefit market participants that trade
shares of the VIX Fund because the Dated: April 27, 2016.
Submission for OMB Review;
increased frequency may improve the Robert W. Errett,
Comment Request
arbitrage function of the shares by Deputy Secretary.
aligning the setting of the Share Index Upon Written Request Copies Available [FR Doc. 2016–10267 Filed 5–2–16; 8:45 am]
Factors with the expiry of each weekly From: Securities and Exchange BILLING CODE 8011–01–P
VIX futures contract, and because the Commission, Office of FOIA Services,
Share Index Factor will reset with a 100 F Street NE., Washington, DC
frequency closer to the daily 20549–2736. SECURITIES AND EXCHANGE
measurements of spot VIX. The changes Extension: COMMISSION
to the VIX Fund support the prospect of Form SD, SEC File No. 270–647, OMB
[File No. 500–1]
improved and simplified arbitrage and Control No. 3235–0697.
hedging of VIX Fund shares because the Notice is hereby given that, pursuant Order of Suspension of Trading; In the
settlement of the shorter VIX futures to the Paperwork Reduction Act of 1995 Matter of Pioneer Exploration, Inc.,
will coincide with each Share Index (44 U.S.C. 3501 et seq.), the Securities Premier Brands, Inc., and Private
Factor reset. In addition, the potentially and Exchange Commission Media Group, Inc.
improved hedgeability of the VIX Fund (‘‘Commission’’) has submitted to the
shares as a result of the proposed Office of Management and Budget this April 29, 2016.
request for extension of the previously It appears to the Securities and
16 The Exchange may determine that longer notice approved collection of information Exchange Commission that there is a
is advisable in some circumstances (e.g., an
discussed below. lack of current and accurate information
extended market break). concerning the securities of Pioneer
asabaliauskas on DSK3SPTVN1PROD with NOTICES
17 See Notice, supra note 3, 81 FR at 14492. Form SD (17 CFR 249b–400) under
18 See id., 81 FR at 14492 n.25 and accompanying Securities Exchange Act of 1934 (15 Exploration, Inc. (CIK No. 1364123), a
text. U.S.C. 78a et seq.) (‘‘Exchange Act’’) revoked Nevada corporation with its
19 The Exchange represents that the excess return
pursuant to Section 13(p)(15 U.S.C. principal place of business listed as
variant is an index variant that (1) has been used 78m(p)) of the Exchange Act is filed by Newport Beach, California, with stock
by and is familiar to market makers and other quoted on OTC Link (previously, ‘‘Pink
market participants; and (2) is directly hedgeable
with conventional futures contracts, which contain
20 See supra note 4. Sheets’’) operated by OTC Markets
the cost or benefit of the roll forward. See id., 81 21 15 U.S.C. 78f(b)(5). Group Inc. (‘‘OTC Link’’) under the
FR at 14492. 22 17 CFR 200.30–3(a)(12). ticker symbol PIEX, because it has not
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Document Created: 2016-05-03 00:30:57
Document Modified: 2016-05-03 00:30:57
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| FR Citation | 81 FR 26595 |
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