81 FR 36357 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reflect a Change to the Benchmark Index Applicable to the WisdomTree Managed Futures Strategy Fund
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 108 (June 6, 2016)
Federal Register Volume 81, Issue 108 (June 6, 2016)
| Page Range | 36357-36361 | |
| FR Document | 2016-13212 |
[Federal Register Volume 81, Number 108 (Monday, June 6, 2016)] [Notices] [Pages 36357-36361] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-13212] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77952; File No. SR-NYSEArca-2016-83] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reflect a Change to the Benchmark Index Applicable to the WisdomTree Managed Futures Strategy Fund May 31, 2016. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on May 27, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C.78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to reflect a change to the benchmark index applicable to the WisdomTree Managed Futures Strategy Fund. The proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Commission previously approved the listing and trading of the shares (``Shares'') of the Fund on the Exchange under NYSE Arca Equities Rule 8.600,\4\ which governs the listing and trading of ``Managed Fund Shares,'' on the Exchange.\5\ The Fund is an actively- managed exchange traded fund. WisdomTree Asset Management, Inc. (``WisdomTree Asset Management'') is the investment adviser (``Adviser'') to the Fund. WisdomTree Investments, Inc. (``WisdomTree Investments'') is the [[Page 36358]] parent company of WisdomTree Asset Management. Mellon Capital Management Corporation (``Mellon'' or ``Sub-Adviser'') serves as the sub-adviser for the Fund. State Street Bank and Trust Company is the administrator, custodian and transfer agent for the Fund. Foreside Fund Services, LLC (``Distributor'') serves as distributor for the Fund.\6\ The Shares are offered by the Trust, which is registered with the Commission as an investment company.\7\ --------------------------------------------------------------------------- \4\ NYSE Arca Equities Rule 8.600 (c)(1) provides that, among other criteria, a Managed Fund Share is a security that represents an interest in an investment company registered under the Investment Company Act of 1940 (15 U.S.C. 80a) (``1940 Act'') organized as an open-end investment company or similar entity that invests in a portfolio of securities selected by its investment adviser consistent with its investment objectives and policies. In contrast, an open-end investment company that issues Investment Company Units, listed and traded on the Exchange under NYSE Arca Equities Rule 5.2(j)(3), seeks to provide investment results that correspond generally to the price and yield performance of a specific foreign or domestic stock index, fixed income securities index or combination thereof. \5\ See Securities Exchange Act Release No. 63598 (December 22, 2010), 75 FR 82106 (December 29, 2010)(SR-NYSEArca-2010-98) (``Prior Order''). See also Securities Exchange Act Release No. 63292 (November 9, 2010), 75 FR 70319 (November 17, 2010) (``Prior Notice'', and with the Prior Order, the ``Prior Releases''). \6\ The Prior Releases identified The Bank of New York Mellon as the administrator, custodian and transfer agent for the Fund and ALPS Distributors, Inc. as the distributor for the Fund. \7\ The Trust is registered under the 1940 Act. The Trust intends to file a prospectus supplement with the Commission or a post-effective amendment to its registration statement on Form N-1A under the Securities Act of 1933 (15 U.S.C. 77a) (``Securities Act'') and under the 1940 Act relating to the Fund (File Nos. 333- 132380 and 811-21864) (the ``Registration Statement''), to reflect the changes in this proposed rule change upon effectiveness of such proposed rule change. The descriptions of the operation of the Trust and the Fund will be reflected in any such filing. In addition, the Commission has issued an order granting certain exemptive relief to the Trust under the 1940 Act. See Investment Company Act Release No. 28471 (October 27, 2008) (File No. 812-13458) (``Exemptive Order''). Investments by the Fund will comply with the conditions in the Exemptive Order. Share [sic] of the Fund are currently listed and traded on the Exchange in compliance with all original and continued listing standards of the Exchange and requirements of the Prior Releases. --------------------------------------------------------------------------- The Prior Releases stated that the Adviser would manage the Fund using a strategy designed to correspond to the performance of the Diversified Trends IndicatorTM (``Original Benchmark''). In this proposed rule change, the Exchange proposes to reflect a change to the benchmark index applicable to the Fund. The new benchmark will be the WisdomTree Managed Futures Index (``New Benchmark,'' and together with the Original Benchmark, the ``Benchmarks''), a proprietary index developed by WisdomTree Investments.\8\ Upon implementation of the proposed rule change, the Adviser will manage the Fund using a strategy designed to correspond to the performance of the New Benchmark. The Adviser anticipates investing Fund assets through the Sub-Adviser based on the New Benchmark on or around June 30, 2016. --------------------------------------------------------------------------- \8\ The changes described herein will be effected contingent upon filing of a prospectus supplement or upon effectiveness of the Trust's most recent post-effective amendment to its Registration Statement. See note 7, supra. The Adviser represents that the Adviser will not implement the changes described herein until the instant proposed rule change is operative. --------------------------------------------------------------------------- The Adviser believes that it is in the best interest of the Fund and its shareholders to replace the Original Benchmark with the New Benchmark while keeping the Fund's asset exposure and investment strategies similar, and without changing the Fund's investment objective. The Adviser believes that the New Benchmark will serve to optimize the Fund's investment strategy, while seeking to provide enhanced risk-adjusted returns over time. Description of the Shares, the Benchmark and the Fund According to the Prior Releases, the WisdomTree Managed Futures Strategy Fund seeks to provide investors with positive total returns in rising or falling markets that are not directly correlated to broad market equity or fixed income returns. The Fund is currently managed using a quantitative, rules-based strategy designed to provide returns that correspond to the performance of the Original Benchmark. The Original Benchmark is a widely used indicator designed to capture the economic benefit derived from rising or declining price trends in commodity, currency, and U.S. Treasury futures markets. Under this proposed rule change, the Exchange seeks to permit the Fund to be managed using a different, quantitative, rules-based strategy, described below, that is designed to provide returns that correspond to the New Benchmark. The New Benchmark is a proprietary index, developed and owned by WisdomTree Investments that is also designed to capture the economic benefit derived from rising or declining price trends in commodity, currency, and U.S. Treasury futures markets. Differences between the Original Benchmark and the New Benchmark are described below. The Benchmarks The Original Benchmark is a rules-based indicator designed to capture rising and falling price trends in the commodity, currency and U.S. Treasury futures markets through long and short positions on U.S. listed futures contracts. The Original Benchmark consists of U.S. listed futures contracts on 16 tangible commodities and 8 financial futures. The 16 commodity futures contracts are: Light crude oil, natural gas, RBOB gas (``Gasoline''), heating oil, soybeans, corn, wheat, gold, silver, copper, live cattle, lean hogs, coffee, cocoa, cotton and sugar. The 8 financial futures contracts are: the Australian dollar (``AUD''), British pound sterling (``GBP''), Canadian dollar (``CAD''), Euro (``EUR''), Japanese yen (``JPY''), Swiss franc (``CHF''), 10-year U.S. Treasury note and 30-year U.S. Treasury bond. Each contract is sometimes referred to as a ``Component'' of the Original Benchmark. The New Benchmark also is a rules-based indicator designed to capture rising and falling price trends in the commodity, currency and U.S. Treasury futures markets through long and short positions on U.S. listed futures contracts. The New Benchmark consists of U.S. listed futures contracts on 16 tangible commodities and 8 financial futures. The 16 commodity futures contracts are: Light crude oil, natural gas, Gasoline, heating oil, soybeans, corn, wheat, gold, silver, copper, live cattle, lean hogs, coffee, cocoa, cotton and sugar. The 8 financial futures contracts are: the AUD, GBP, CAD, EUR, JPY, CHF, 10- year U.S. Treasury note and 30-year U.S. Treasury bond. Each contract is sometimes referred to as a ``Component'' of the New Benchmark. (1) Asset Treatment Under the Original Benchmark, Components that are similar in nature (such as gas and oil or gold and silver) are aggregated into ``Sectors.'' There are nine commodity Sectors in the Original Benchmark: Energy (light crude oil, natural gas, Gasoline, and heating oil), Grains (soybeans, corn), Precious Metals (gold and silver), Industrial Metals (copper), Livestock (live cattle, lean hogs), Coffee, Cocoa, Cotton, and Sugar. Each financial futures contract is considered to be its own Sector. As a result, there are eight financial Sectors in the Original Benchmark: The AUD, GBP, CAD, EUR, JPY, CHF, 10-year U.S. Treasury note and 30-year U.S. Treasury bond. Under the New Benchmark, there are no Sectors, but rather each of the 24 Components is treated separately for weighting and long, short or flat position determinations. The twenty Components with the lowest 36-month rolling volatility are included. All Components may be long, short or flat, except for Energy futures (i.e., light crude oil, natural gas, Gasoline and heating oil), which are held either long or flat. (2) Weighting Methodology Within the Original Benchmark, Components may be positioned as long or short, except that the Energy Sector and its Components may never be positioned short. The Original Benchmark's methodology provides that, due to significant levels of continuous consumption, limited reserves and other factors, the Energy Sector can only be long or flat (i.e., no exposure). At the beginning of each calendar year and month, the Original Benchmark is weighted evenly (i.e., 50/50) between commodity futures contracts and [[Page 36359]] financial futures contracts. If the Energy Sector is flat, financial futures represent approximately 61.5% of the weight of the original Benchmark and commodity futures represent approximately 38.5% of weighting of the Original Benchmark. When Energy is long, financial futures and commodity futures each represent 50% of the weight of the Original Benchmark. If the Energy Sector is flat then the weighting of the other Sectors and Components within the Benchmark is increased on a pro-rata basis.\9\ As a result, at the beginning of each calendar year and month, if Energy is flat, financial futures will represent approximately 61.5% of the weight of the Original Benchmark and commodities will represent approximately 38.5% of the weight of the Original Benchmark. --------------------------------------------------------------------------- \9\ To arrive at the Sector weightings when Energy is flat, divide the Sector Base Weight by one minus the Energy Sector Base Weight (i.e., Sector Base Weight/1--0.1875)). --------------------------------------------------------------------------- At the beginning of each calendar year and month, each Component and Sector within the Original Benchmark also has a ``Base Weight,'' depending on whether the Energy Sector is long or flat. If the Energy Sector is flat, then the Base Weight of the other Sectors and Components within the Original Benchmark is increased on a pro-rata basis. Commodity Sector weights are based on, but not exactly proportional to, historical world production levels. Commodity Sectors that have higher historical production levels are weighted higher in the Original Benchmark. Weightings of the financial futures Sectors are based on, but not directly proportional to, historical gross domestic product (``GDP''). Larger economic regions (i.e., Europe as measured by the Euro) should get a higher weighting than smaller regions (i.e., Australia as measured by AUD).\10\ --------------------------------------------------------------------------- \10\ The Adviser represents that, as of March 31, 2016, the Fund's investment in the Components of the Original Benchmark are as follows: (i) Silver, corn, wheat and coffee were not selected into the portfolio for April (Nominal exposure, 0.00%) due to their high realized volatilities, and (ii) although selected into the portfolio, crude oil, natural gas, heating oil and Gasoline were not given any weight (nominal exposure, 0.00%) as short positions in those commodities were not allowed. The selected commodities were given equal nominal weight (6.25%): Copper, soybeans, cocoa, lean hogs, CHF and CAD were not fully invested due to lack of total conviction based on the Composite Momentum Signal methodology. Only \2/3\ of the nominal exposure was invested into their respective futures contract (effective weight: 4.17%). Gold, sugar, cotton, live cattle, EUR, JPY, GBP, AUD, 30-year Treasury bond and 10-year Treasury note were fully invested (effective weight: 6.25%). --------------------------------------------------------------------------- Under the New Benchmark, the 20 Components with the lowest realized 36 month rolling volatility will be included.\11\ If Energy futures are flat, then Energy assets will be excluded. The remaining assets will be weighted equally prior to the ``Composite Momentum Signal'' (described below) being applied. --------------------------------------------------------------------------- \11\ The Adviser represents that the commodity futures contracts included in the New Benchmark (and therefore anticipated to be included in the Fund) are heavily traded and are based on some of the world's most liquid and actively-traded commodities. According to the Adviser, as of January 1, 2016, the 3-month average daily trading volume (``ADTV'') of the commodity futures contracts representing Components in the New Benchmark were as follows: Crude oil: $20,402,707,680; natural gas: $3,613,649,760); heating oil: $2,489,853,660; Gasoline: $3,367,039,200; copper: $434,060,000; sugar: $707,097,600; cotton: $285,940,000; wheat: $1,085,637,500; corn: $3,619,192,500; soybeans: $3,826,910,000; gold: $14,866,492,080; silver: $3,122,181,600; cocoa: $429,350,900; coffee: $452,838,750; live cattle: $1,786,550,000; and lean hogs: $437,824,000. The listed financial futures contracts included in the New Benchmark (and therefore anticipated to be included in the Fund) are heavily traded and represent six of the world's most liquid and actively-traded currencies (as well as the U.S. dollar through futures on 30-year Treasury bonds and 10-year Treasury notes). According to the Adviser, as of January 1, 2016, the 3-month ADTV of the financial futures contracts representing Components in the New Benchmark were as follows: EUR: $33,014,630,700; AUD: $7,428,685,500; CAD: $6,686,911,000; GBP: $8,644,461,188; CHF: $9,904,476,250; 10-year Treasury note: $148,389,752,565; and 30-year Treasury bond: $38,918,903,603. --------------------------------------------------------------------------- The New Benchmark determines a Composite Momentum Signal for each asset, based on the 3-month, 6-month, and 12-month returns (each, a ``Signal'') for the asset, based on its rolling schedule. If the return is positive, the New Benchmark will assign positive one (+1) to it; if the return is negative, the New Benchmark will assign a negative one (- 1) to it. The three Signals are aggregated by the New Benchmark, and if all signals are in the same direction, the Fund will invest the assigned weight. Otherwise, the Fund will invest two-thirds of the assigned weight. The direction of the trade (i.e., long or short) will be based on the direction of the majority of the Signals.\12\ --------------------------------------------------------------------------- \12\ The current weighting of the New Benchmark as of January 1, 2016, is as follows. Silver, corn, wheat and coffee were not selected due to high volatility. The Energy group is flat as Signals indicate a short position. The weight of the Energy group is therefore proportionately assigned to the included assets. Each of copper, gold, soybeans, sugar, cotton, cocoa, live cattle, lean hogs, EUR, JPY, GBP, CHF, AUD, CAD, 30-year Treasury bond, and 10- year Treasury note futures were therefore weighted at 6.25%. --------------------------------------------------------------------------- (3) Rebalancing The weight of each Component and Sector in the Original Benchmark changes throughout each month based upon performance. At the end of each month, each Sector is reset back to its applicable Base Weight depending on whether the Energy Sector is long or flat. Within Sectors that have multiple Components, the weight of each Component relative to the others is allowed to fluctuate throughout the year and Component weights are reset back to their respective Base Weights only at year- end. Under the New Benchmark, each month, the 20 assets with the lowest 36-month volatility on a rolling basis are included. If an asset within the Energy group is short, the value of that asset is flat and allocated proportionately to the included assets. Weighing is then determined as discussed above. (4) Long/Short/Flat Determination As stated in the Prior Releases, in order to capture both rising and falling price trends, at the end of each month each Sector in the Original Benchmark (other than the Energy Sector) is positioned as either ``long'' or ``short.'' This determination is made using an algorithm that compares the Sector's monthly return to the Sector's historic weighted moving average returns. If the Sector's returns are above its moving average returns, the Sector is positioned as ``long'' throughout the following month. If the Sector's returns are below its moving average, the Sector is positioned as ``short'' throughout the following month (with the exception of the Energy Sector, which would be positioned flat). All Components within a Sector are held in the same direction. The value of a Sector and the value of the Original Benchmark should increase if a long position increases in value or if a short position decreases in value. For example, if a Sector is long in the Original Benchmark and the value of its Components goes up intra- month, the return of the Sector (and therefore the Original Benchmark) should increase. If a Sector is short in the Original Benchmark, and the value of its Components goes down intra-month, the return of the Sector (and therefore the Original Benchmark) should increase. Under the New Benchmark, the Fund will be rebalanced each month based on the Composite Momentum Signal framework described above. Just as under the Original Benchmark, the New Benchmark should increase if a long position increases in value or if a short position decreases in value. For example, if a Component is long in the New Benchmark and its value goes up intra-month, the return of the Component (and therefore the New Benchmark) should increase. If a Component is short in the New [[Page 36360]] Benchmark, and its value goes down intra-month, the return of the Component (and therefore the New Benchmark) should increase.\13\ --------------------------------------------------------------------------- \13\ Because the New Benchmark does not classify Components into Sectors, the above explanation of the impact of changes in the value of long or short assets in the New Benchmark is discussed with respect to Components, rather than with respect to Sectors. --------------------------------------------------------------------------- The Adviser represents that the Sub-Adviser will continue to invest the Fund in the same assets as are contained in the Prior Releases and will remain subject to, and invest the Fund assets, in accordance [sic] all of the other requirements and limitations identified in the Prior Releases. As a condition to continued listing and trading Shares of the Fund on the Exchange, the Fund will continue to comply with all initial and continued listing requirements under NYSE Arca Rule 8.600. Except for the changes noted above, all other facts presented and representations made in the Prior Releases are unchanged. 2. Statutory Basis The basis under the Exchange Act for this proposed rule change is the requirement under Section 6(b)(5)\14\ that an exchange have rules that are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of a free and open market and, in general, to protect investors and the public interest. The Exchange believes that the proposed rule change is designed to prevent fraudulent and manipulative acts and practices. The Adviser is changing the representation that it will seek investment returns that correspond to the Original Benchmark to that it will seek investment returns that correspond to the New Benchmark. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Adviser represents that there is no change to the Fund's investment objective or to the securities or other assets identified in the Prior Releases that the Fund utilizes in seeking to achieve its investment objective. The Fund's use of such securities and other assets will remain subject to all requirements and applicable limitations identified in the Prior Releases. As a condition to the continued listing and trading of the Shares on the Exchange, the Fund will continue to comply with all initial and continued listing requirements under NYSE Arca Rule 8.600. The proposed rule change is designed to promote just and equitable principles of trade and to protect investors and the public interest in that the Adviser represents that there is no change to the Fund's investment objective. The Adviser represents that the allocations of the Fund's portfolio will remain consistent with the allocation limitations discussed in the Prior Releases, and that the Fund may invest in the same instruments as are contained in the Original Benchmark, as discussed in the Prior Release. However, the Adviser now represents that the Fund will use portfolio management strategies in seeking to achieve its investment objective in a manner that allocates the Fund's investments in those same instruments in a manner to correspond to the New Benchmark, rather than the Original Benchmark. All statements and representations made in this filing and the Prior Releases regarding (a) the description of the Fund's portfolio, (b) limitations on portfolio holdings or reference assets, or (c) the applicability of Exchange rules and surveillance procedures shall constitute continued listing requirements for listing the Shares on the Exchange. The Adviser has represented to the Exchange that it will advise the Exchange of any failure by the Fund to comply with the continued listing requirements, and, pursuant to its obligations under Section 19(g)(1) of the Act, the Exchange will monitor for compliance with the continued listing requirements.\15\ If the Fund is not in compliance with the applicable listing requirements, the Exchange will commence delisting procedures under NYSE Arca Rule 5.5(m). --------------------------------------------------------------------------- \15\ The Commission notes that certain other proposals for the listing and trading of Managed Fund Shares include a representation that the exchange will ``surveil'' for compliance with the continued listing requirements. See, e.g., Securities Exchange Act Release No. 77499 (April 1, 2016), 81 FR 20428 (April 7, 2016) (Notice of Filing of Amendment No. 2, and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to List and Trade Shares of the SPDR DoubleLine Short Duration Total Return Tactical ETF of the SSgA Active Trust), available at: http://www.sec.gov/rules/sro/bats/2016/34-77499.pdf. In the context of this representation, it is the Commission's view that ``monitor'' and ``surveil'' both mean ongoing oversight of the Fund's compliance with the continued listing requirements. Therefore, the Commission does not view ``monitor'' as a more or less stringent obligation than ``surveil'' with respect to the continued listing requirements. --------------------------------------------------------------------------- The proposed rule change is designed to perfect the mechanism of a free and open market and, in general, to protect investors and the public interest in that the Fund will continue to comply with all initial and continued listing requirements under NYSE Arca Rule 8.600. The proposed rule change will permit the Fund to continue to operate in a manner similar to other Managed Fund Shares that invest primarily in futures contracts, and will permit continued listing on the Exchange for the Fund after it begins to utilize the quantitative, rules-based strategy designed to seek performance that corresponds to the New Benchmark, which will enhance competition among issues Managed Fund Shares currently trading on the Exchange. Except for the changes noted above, all other representations made in the Prior Releases are unchanged. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The proposed rule change will permit the continued listing on the Exchange of the Fund after it begins to utilize the quantitative, rules-based strategy designed to correspond to the New Benchmark, which will enhance competition among issues of Managed Fund Shares. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act\16\ and Rule 19b- 4(f)(6) thereunder.\17\ --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(3)(A). \17\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the [[Page 36361]] public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) of the Act\18\ to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEArca-2016-83 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2016-83. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEArca-2016-83 and should be submitted on or before June 27, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-13212 Filed 6-3-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices 36357
material at facilities located within their the Commission shall either approve the I. Self-Regulatory Organization’s
borders. proposed rule change, disapprove the Statement of the Terms of Substance of
The Federal Reports Elimination and proposed rule change, or institute the Proposed Rule Change
Sunset Act of 1995 (Public Law 104–68) proceedings to determine whether the The Exchange proposes to reflect a
requires that the NRC report AOs to proposed rule change should be change to the benchmark index
Congress annually. The full report, disapproved. The 45th day after applicable to the WisdomTree Managed
NUREG–0090, Volume 38, ‘‘Report to publication of the notice for this Futures Strategy Fund. The proposed
Congress on Abnormal Occurrences: proposed rule change is June 13, 2016. rule change is available on the
Fiscal Year 2015,’’ is available The Commission is extending this 45- Exchange’s Web site at www.nyse.com,
electronically at the NRC’s Web site at day time period. at the principal office of the Exchange,
http://www.nrc.gov/reading-rm/doc- The Commission finds that it is and at the Commission’s Public
collections/nuregs/staff/, and in appropriate to designate a longer period Reference Room.
ADAMS under Accession No. within which to take action on the
ML16145A026. II. Self-Regulatory Organization’s
proposed rule change so that it has Statement of the Purpose of, and
Dated at Rockville, Maryland, this 26th day sufficient time to consider the proposed Statutory Basis for, the Proposed Rule
of May, 2016. rule change. Accordingly, the Change
For the Nuclear Regulatory Commission. Commission, pursuant to Section
Richard J. Laufer, 19(b)(2) of the Act,5 designates July 28, In its filing with the Commission, the
2016, as the date by which the self-regulatory organization included
Acting, Secretary of the Commission.
Commission should either approve or statements concerning the purpose of,
[FR Doc. 2016–13274 Filed 6–3–16; 8:45 am]
disapprove or institute proceedings to and basis for, the proposed rule change
BILLING CODE 7590–01–P and discussed any comments it received
determine whether to disapprove the
proposed rule change (File Number SR– on the proposed rule change. The text
NYSE–2016–30). of those statements may be examined at
SECURITIES AND EXCHANGE the places specified in Item IV below.
COMMISSION For the Commission, by the Division of The Exchange has prepared summaries,
Trading and Markets, pursuant to delegated
set forth in sections A, B, and C below,
[Release No. 34–77950; File No. SR–NYSE– authority.6
2016–30] of the most significant parts of such
Brent J. Fields,
statements.
Secretary.
Self-Regulatory Organizations; New A. Self-Regulatory Organization’s
[FR Doc. 2016–13210 Filed 6–3–16; 8:45 am]
York Stock Exchange LLC; Notice of Statement of the Purpose of, and the
Designation of a Longer Period for BILLING CODE 8011–01–P
Statutory Basis for, the Proposed Rule
Commission Action on a Proposed Change
Rule Change Amending the Definition
of ‘‘Block’’ for Purposes of Rule 72(d) SECURITIES AND EXCHANGE 1. Purpose
and the Size of a Proposed Cross COMMISSION
The Commission previously approved
Transaction Eligible for the Cross the listing and trading of the shares
Function in Rule 76 [Release No. 34–77952; File No. SR– (‘‘Shares’’) of the Fund on the Exchange
NYSEArca–2016–83] under NYSE Arca Equities Rule 8.600,4
May 31, 2016.
Self-Regulatory Organizations; NYSE which governs the listing and trading of
On April 12, 2016, New York Stock ‘‘Managed Fund Shares,’’ on the
Exchange LLC (‘‘Exchange’’ or ‘‘NYSE’’) Arca, Inc.; Notice of Filing and
Exchange.5 The Fund is an actively-
filed with the Securities and Exchange Immediate Effectiveness of Proposed
managed exchange traded fund.
Commission (‘‘Commission’’), pursuant Rule Change To Reflect a Change to
WisdomTree Asset Management, Inc.
to Section 19(b)(1) of the Securities the Benchmark Index Applicable to the
(‘‘WisdomTree Asset Management’’) is
Exchange Act of 1934 (‘‘Act’’) 1 and Rule WisdomTree Managed Futures
the investment adviser (‘‘Adviser’’) to
19b–4 thereunder,2 a proposed rule Strategy Fund
the Fund. WisdomTree Investments,
change to amend its rules relating to May 31, 2016. Inc. (‘‘WisdomTree Investments’’) is the
pre-opening indications and opening
procedures. The proposed rule change Pursuant to Section 19(b)(1) 1 of the 4 NYSE Arca Equities Rule 8.600 (c)(1) provides
was published for comment in the Securities Exchange Act of 1934 (the that, among other criteria, a Managed Fund Share
Federal Register on April 29, 2016.3 ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 is a security that represents an interest in an
notice is hereby given that, on May 27, investment company registered under the
The Commission has received no Investment Company Act of 1940 (15 U.S.C. 80a)
comments on the proposed rule change. 2016, NYSE Arca, Inc. (the ‘‘Exchange’’ (‘‘1940 Act’’) organized as an open-end investment
Section 19(b)(2) of the Act 4 provides or ‘‘NYSE Arca’’) filed with the company or similar entity that invests in a portfolio
that, within 45 days of the publication Securities and Exchange Commission of securities selected by its investment adviser
(the ‘‘Commission’’) the proposed rule consistent with its investment objectives and
of notice of the filing of a proposed rule policies. In contrast, an open-end investment
change, or within such longer period up change as described in Items I and II company that issues Investment Company Units,
to 90 days as the Commission may below, which Items have been prepared listed and traded on the Exchange under NYSE
designate if it finds such longer period by the self-regulatory organization. The Arca Equities Rule 5.2(j)(3), seeks to provide
Commission is publishing this notice to investment results that correspond generally to the
to be appropriate and publishes its price and yield performance of a specific foreign or
sradovich on DSK3TPTVN1PROD with NOTICES
reasons for so finding or as to which the solicit comments on the proposed rule domestic stock index, fixed income securities index
self-regulatory organization consents, change from interested persons. or combination thereof.
5 See Securities Exchange Act Release No. 63598
1 15 5 15 U.S.C. 78s(b)(2). (December 22, 2010), 75 FR 82106 (December 29,
U.S.C. 78s(b)(1). 2010)(SR–NYSEArca–2010–98) (‘‘Prior Order’’). See
2 17 6 17 CFR 200.30–3(a)(31).
CFR 240.19b–4. also Securities Exchange Act Release No. 63292
3 See Securities Exchange Act Release No. 77701 1 15 U.S.C.78s(b)(1).
(November 9, 2010), 75 FR 70319 (November 17,
(Apr. 25, 2016), 81 FR 25748. 2 15 U.S.C. 78a.
2010) (‘‘Prior Notice’’, and with the Prior Order, the
4 15 U.S.C. 78s(b)(2). 3 17 CFR 240.19b–4. ‘‘Prior Releases’’).
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![36358 Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices
parent company of WisdomTree Asset while keeping the Fund’s asset exposure The New Benchmark also is a rules-
Management. Mellon Capital and investment strategies similar, and based indicator designed to capture
Management Corporation (‘‘Mellon’’ or without changing the Fund’s investment rising and falling price trends in the
‘‘Sub-Adviser’’) serves as the sub- objective. The Adviser believes that the commodity, currency and U.S. Treasury
adviser for the Fund. State Street Bank New Benchmark will serve to optimize futures markets through long and short
and Trust Company is the administrator, the Fund’s investment strategy, while positions on U.S. listed futures
custodian and transfer agent for the seeking to provide enhanced risk- contracts. The New Benchmark consists
Fund. Foreside Fund Services, LLC adjusted returns over time. of U.S. listed futures contracts on 16
(‘‘Distributor’’) serves as distributor for tangible commodities and 8 financial
Description of the Shares, the
the Fund.6 The Shares are offered by the futures. The 16 commodity futures
Benchmark and the Fund
Trust, which is registered with the contracts are: Light crude oil, natural
Commission as an investment According to the Prior Releases, the gas, Gasoline, heating oil, soybeans,
company.7 WisdomTree Managed Futures Strategy corn, wheat, gold, silver, copper, live
The Prior Releases stated that the Fund seeks to provide investors with cattle, lean hogs, coffee, cocoa, cotton
Adviser would manage the Fund using positive total returns in rising or falling and sugar. The 8 financial futures
a strategy designed to correspond to the markets that are not directly correlated contracts are: the AUD, GBP, CAD, EUR,
performance of the Diversified Trends to broad market equity or fixed income JPY, CHF, 10-year U.S. Treasury note
IndicatorTM (‘‘Original Benchmark’’). In returns. The Fund is currently managed and 30-year U.S. Treasury bond. Each
this proposed rule change, the Exchange using a quantitative, rules-based strategy contract is sometimes referred to as a
proposes to reflect a change to the designed to provide returns that ‘‘Component’’ of the New Benchmark.
benchmark index applicable to the correspond to the performance of the
Fund. The new benchmark will be the Original Benchmark. The Original (1) Asset Treatment
WisdomTree Managed Futures Index Benchmark is a widely used indicator Under the Original Benchmark,
(‘‘New Benchmark,’’ and together with designed to capture the economic Components that are similar in nature
the Original Benchmark, the benefit derived from rising or declining (such as gas and oil or gold and silver)
‘‘Benchmarks’’), a proprietary index price trends in commodity, currency, are aggregated into ‘‘Sectors.’’ There are
developed by WisdomTree and U.S. Treasury futures markets. nine commodity Sectors in the Original
Investments.8 Upon implementation of Under this proposed rule change, the Benchmark: Energy (light crude oil,
the proposed rule change, the Adviser Exchange seeks to permit the Fund to be natural gas, Gasoline, and heating oil),
will manage the Fund using a strategy managed using a different, quantitative, Grains (soybeans, corn), Precious Metals
designed to correspond to the rules-based strategy, described below, (gold and silver), Industrial Metals
performance of the New Benchmark. that is designed to provide returns that (copper), Livestock (live cattle, lean
The Adviser anticipates investing Fund correspond to the New Benchmark. The hogs), Coffee, Cocoa, Cotton, and Sugar.
assets through the Sub-Adviser based on New Benchmark is a proprietary index, Each financial futures contract is
the New Benchmark on or around June developed and owned by WisdomTree considered to be its own Sector. As a
30, 2016. Investments that is also designed to result, there are eight financial Sectors
The Adviser believes that it is in the capture the economic benefit derived in the Original Benchmark: The AUD,
best interest of the Fund and its from rising or declining price trends in GBP, CAD, EUR, JPY, CHF, 10-year U.S.
shareholders to replace the Original commodity, currency, and U.S. Treasury Treasury note and 30-year U.S. Treasury
Benchmark with the New Benchmark futures markets. bond.
Differences between the Original Under the New Benchmark, there are
6 The Prior Releases identified The Bank of New Benchmark and the New Benchmark are no Sectors, but rather each of the 24
York Mellon as the administrator, custodian and described below. Components is treated separately for
transfer agent for the Fund and ALPS Distributors, weighting and long, short or flat
Inc. as the distributor for the Fund. The Benchmarks
7 The Trust is registered under the 1940 Act. The
position determinations. The twenty
The Original Benchmark is a rules- Components with the lowest 36-month
Trust intends to file a prospectus supplement with
the Commission or a post-effective amendment to based indicator designed to capture rolling volatility are included. All
its registration statement on Form N–1A under the rising and falling price trends in the Components may be long, short or flat,
Securities Act of 1933 (15 U.S.C. 77a) (‘‘Securities commodity, currency and U.S. Treasury except for Energy futures (i.e., light
Act’’) and under the 1940 Act relating to the Fund futures markets through long and short
(File Nos. 333–132380 and 811–21864) (the crude oil, natural gas, Gasoline and
‘‘Registration Statement’’), to reflect the changes in positions on U.S. listed futures heating oil), which are held either long
this proposed rule change upon effectiveness of contracts. The Original Benchmark or flat.
such proposed rule change. The descriptions of the consists of U.S. listed futures contracts
operation of the Trust and the Fund will be on 16 tangible commodities and 8 (2) Weighting Methodology
reflected in any such filing. In addition, the
Commission has issued an order granting certain financial futures. The 16 commodity Within the Original Benchmark,
exemptive relief to the Trust under the 1940 Act. futures contracts are: Light crude oil, Components may be positioned as long
See Investment Company Act Release No. 28471 natural gas, RBOB gas (‘‘Gasoline’’), or short, except that the Energy Sector
(October 27, 2008) (File No. 812–13458) heating oil, soybeans, corn, wheat, gold,
(‘‘Exemptive Order’’). Investments by the Fund will
and its Components may never be
comply with the conditions in the Exemptive silver, copper, live cattle, lean hogs, positioned short. The Original
Order. Share [sic] of the Fund are currently listed coffee, cocoa, cotton and sugar. The 8 Benchmark’s methodology provides
and traded on the Exchange in compliance with all financial futures contracts are: the that, due to significant levels of
original and continued listing standards of the Australian dollar (‘‘AUD’’), British continuous consumption, limited
sradovich on DSK3TPTVN1PROD with NOTICES
Exchange and requirements of the Prior Releases.
8 The changes described herein will be effected pound sterling (‘‘GBP’’), Canadian dollar reserves and other factors, the Energy
contingent upon filing of a prospectus supplement (‘‘CAD’’), Euro (‘‘EUR’’), Japanese yen Sector can only be long or flat (i.e., no
or upon effectiveness of the Trust’s most recent (‘‘JPY’’), Swiss franc (‘‘CHF’’), 10-year exposure).
post-effective amendment to its Registration U.S. Treasury note and 30-year U.S. At the beginning of each calendar year
Statement. See note 7, supra. The Adviser
represents that the Adviser will not implement the
Treasury bond. Each contract is and month, the Original Benchmark is
changes described herein until the instant proposed sometimes referred to as a ‘‘Component’’ weighted evenly (i.e., 50/50) between
rule change is operative. of the Original Benchmark. commodity futures contracts and
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![36360 Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices
Benchmark, and its value goes down public interest in that the Adviser Fund Shares that invest primarily in
intra-month, the return of the represents that there is no change to the futures contracts, and will permit
Component (and therefore the New Fund’s investment objective. The continued listing on the Exchange for
Benchmark) should increase.13 Adviser represents that the allocations the Fund after it begins to utilize the
The Adviser represents that the Sub- of the Fund’s portfolio will remain quantitative, rules-based strategy
Adviser will continue to invest the consistent with the allocation designed to seek performance that
Fund in the same assets as are contained limitations discussed in the Prior corresponds to the New Benchmark,
in the Prior Releases and will remain Releases, and that the Fund may invest which will enhance competition among
subject to, and invest the Fund assets, in the same instruments as are issues Managed Fund Shares currently
in accordance [sic] all of the other contained in the Original Benchmark, as trading on the Exchange. Except for the
requirements and limitations identified discussed in the Prior Release. However, changes noted above, all other
in the Prior Releases. As a condition to the Adviser now represents that the representations made in the Prior
continued listing and trading Shares of Fund will use portfolio management Releases are unchanged.
the Fund on the Exchange, the Fund strategies in seeking to achieve its
will continue to comply with all initial B. Self-Regulatory Organization’s
investment objective in a manner that
and continued listing requirements Statement on Burden on Competition
allocates the Fund’s investments in
under NYSE Arca Rule 8.600. those same instruments in a manner to The Exchange does not believe that
Except for the changes noted above, correspond to the New Benchmark, the proposed rule change will impose
all other facts presented and rather than the Original Benchmark. any burden on competition that is not
representations made in the Prior All statements and representations necessary or appropriate in furtherance
Releases are unchanged. made in this filing and the Prior of the purpose of the Exchange Act. The
Releases regarding (a) the description of proposed rule change will permit the
2. Statutory Basis continued listing on the Exchange of the
the Fund’s portfolio, (b) limitations on
The basis under the Exchange Act for portfolio holdings or reference assets, or Fund after it begins to utilize the
this proposed rule change is the (c) the applicability of Exchange rules quantitative, rules-based strategy
requirement under Section 6(b)(5)14 that and surveillance procedures shall designed to correspond to the New
an exchange have rules that are constitute continued listing Benchmark, which will enhance
designed to prevent fraudulent and requirements for listing the Shares on competition among issues of Managed
manipulative acts and practices, to the Exchange. The Adviser has Fund Shares.
promote just and equitable principles of represented to the Exchange that it will C. Self-Regulatory Organization’s
trade, to remove impediments to, and advise the Exchange of any failure by Statement on Comments on the
perfect the mechanism of a free and the Fund to comply with the continued Proposed Rule Change Received From
open market and, in general, to protect listing requirements, and, pursuant to Members, Participants, or Others
investors and the public interest. The its obligations under Section 19(g)(1) of
Exchange believes that the proposed the Act, the Exchange will monitor for No written comments were solicited
rule change is designed to prevent compliance with the continued listing or received with respect to the proposed
fraudulent and manipulative acts and requirements.15 If the Fund is not in rule change.
practices. The Adviser is changing the compliance with the applicable listing III. Date of Effectiveness of the
representation that it will seek requirements, the Exchange will Proposed Rule Change and Timing for
investment returns that correspond to commence delisting procedures under Commission Action
the Original Benchmark to that it will NYSE Arca Rule 5.5(m).
seek investment returns that correspond The proposed rule change is designed Because the proposed rule change
to the New Benchmark. to perfect the mechanism of a free and does not (i) significantly affect the
The Adviser represents that there is open market and, in general, to protect protection of investors or the public
no change to the Fund’s investment investors and the public interest in that interest; (ii) impose any significant
objective or to the securities or other the Fund will continue to comply with burden on competition; and (iii) become
assets identified in the Prior Releases all initial and continued listing operative for 30 days from the date on
that the Fund utilizes in seeking to requirements under NYSE Arca Rule which it was filed, or such shorter time
achieve its investment objective. The 8.600. The proposed rule change will as the Commission may designate, if
Fund’s use of such securities and other permit the Fund to continue to operate consistent with the protection of
assets will remain subject to all in a manner similar to other Managed investors and the public interest, the
requirements and applicable limitations proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
identified in the Prior Releases. As a 15 The Commission notes that certain other
proposals for the listing and trading of Managed of the Act16 and Rule 19b–4(f)(6)
condition to the continued listing and
Fund Shares include a representation that the thereunder.17
trading of the Shares on the Exchange, exchange will ‘‘surveil’’ for compliance with the At any time within 60 days of the
the Fund will continue to comply with continued listing requirements. See, e.g., Securities
filing of such proposed rule change, the
all initial and continued listing Exchange Act Release No. 77499 (April 1, 2016), 81
FR 20428 (April 7, 2016) (Notice of Filing of Commission summarily may
requirements under NYSE Arca Rule Amendment No. 2, and Order Granting Accelerated temporarily suspend such rule change if
8.600. Approval of a Proposed Rule Change, as Modified it appears to the Commission that such
The proposed rule change is designed by Amendment No. 2, to List and Trade Shares of
action is necessary or appropriate in the
to promote just and equitable principles the SPDR DoubleLine Short Duration Total Return
Tactical ETF of the SSgA Active Trust), available
sradovich on DSK3TPTVN1PROD with NOTICES
of trade and to protect investors and the at: http://www.sec.gov/rules/sro/bats/2016/34– 16 15 U.S.C. 78s(b)(3)(A).
77499.pdf. In the context of this representation, it 17 17 CFR 240.19b–4(f)(6). As required under Rule
13 Because the New Benchmark does not classify
is the Commission’s view that ‘‘monitor’’ and 19b–4(f)(6)(iii), the Exchange provided the
Components into Sectors, the above explanation of ‘‘surveil’’ both mean ongoing oversight of the Commission with written notice of its intent to file
the impact of changes in the value of long or short Fund’s compliance with the continued listing the proposed rule change, along with a brief
assets in the New Benchmark is discussed with requirements. Therefore, the Commission does not description and the text of the proposed rule
respect to Components, rather than with respect to view ‘‘monitor’’ as a more or less stringent change, at least five business days prior to the date
Sectors. obligation than ‘‘surveil’’ with respect to the of filing of the proposed rule change, or such
14 15 U.S.C. 78f(b)(5). continued listing requirements. shorter time as designated by the Commission.
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![Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices 36361
public interest, for the protection of available publicly. All submissions provisions of the Plan.5 Therefore, the
investors, or otherwise in furtherance of should refer to File Number SR– Exchange has designated this proposal
the purposes of the Act. If the NYSEArca–2016–83 and should be as ‘‘non-controversial’’ and provided the
Commission takes such action, the submitted on or before June 27, 2016. Commission with the notice required by
Commission shall institute proceedings For the Commission, by the Division of Rule 19b–4(f)(6)(iii) under the Act.6 The
under Section 19(b)(2)(B) of the Act18 to Trading and Markets, pursuant to delegated proposed rule change is available on the
determine whether the proposed rule authority.19 Exchange’s Web site at www.nyse.com,
change should be approved or Brent J. Fields, at the principal office of the Exchange,
disapproved. Secretary. and at the Commission’s Public
Reference Room.
IV. Solicitation of Comments [FR Doc. 2016–13212 Filed 6–3–16; 8:45 am]
Interested persons are invited to BILLING CODE 8011–01–P II. Self-Regulatory Organization’s
submit written data, views, and Statement of the Purpose of, and
arguments concerning the foregoing, Statutory Basis for, the Proposed Rule
including whether the proposed rule SECURITIES AND EXCHANGE Change
change is consistent with the Act. COMMISSION In its filing with the Commission, the
Comments may be submitted by any of self-regulatory organization included
the following methods: [Release No. 34–77947; File No. SR– statements concerning the purpose of,
NYSEARCA–2016–76] and basis for, the proposed rule change
Electronic Comments
and discussed any comments it received
• Use the Commission’s Internet Self-Regulatory Organizations; NYSE on the proposed rule change. The text
comment form (http://www.sec.gov/ Arca, Inc.; Notice of Filing and of those statements may be examined at
rules/sro.shtml); or Immediate Effectiveness of Proposed the places specified in Item IV below.
• Send an email to rule-comments@ Rule Change Implementing the The Exchange has prepared summaries,
sec.gov. Please include File Number SR– Quoting and Trading Provisions of the set forth in sections A, B, and C below,
NYSEArca–2016–83 on the subject line. Plan To Implement a Tick Size Pilot of the most significant parts of such
Program Submitted to the Commission statements.
Paper Comments
Pursuant to Rule 608 of Regulation
• Send paper comments in triplicate NMS Under the Act A. Self-Regulatory Organization’s
to Brent J. Fields, Secretary, Securities Statement of the Purpose of, and the
and Exchange Commission, 100 F Street May 31, 2016. Statutory Basis for, the Proposed Rule
NE., Washington, DC 20549–1090. Pursuant to Section 19(b)(1) 1 of the Change
All submissions should refer to File Securities Exchange Act of 1934 (the 1. Purpose
Number SR–NYSEArca–2016–83. This ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
file number should be included on the notice is hereby given that, on May 20, The Exchange proposes to establish
subject line if email is used. To help the 2016, NYSE Arca, Inc. (the ‘‘Exchange’’ rules to require its ETP Holders 7 to
Commission process and review your or ‘‘NYSE Arca’’) filed with the comply with the requirements of the
comments more efficiently, please use Securities and Exchange Commission Plan to Implement a Tick Size Pilot
only one method. The Commission will (the ‘‘Commission’’) the proposed rule Program (the ‘‘Plan’’),8 which is
post all comments on the Commission’s change as described in Items I, II, and designed to study and assess the impact
Internet Web site (http://www.sec.gov/ III below, which Items have been of increment conventions on the
rules/sro.shtml). Copies of the prepared by the self-regulatory liquidity and trading of the common
submission, all subsequent organization. The Commission is stocks of small capitalization
amendments, all written statements publishing this notice to solicit 5 See, Securities Exchange Act Release No. 76229
with respect to the proposed rule comments on the proposed rule change (October 22, 2015), 80 FR 66065 (October 28, 2015)
change that are filed with the from interested persons. (SR–NYSE–2015–46), as amended by Partial
Commission, and all written Amendments No. 1 and No. 2 to the Quoting &
I. Self-Regulatory Organization’s Trading Rules Proposal. See, Securities Exchange
communications relating to the
Statement of the Terms of Substance of Act Release No. 77703 (April 25, 2016), 81 FR
proposed rule change between the 25725 (April 29, 2016) (SR–NYSE–2015–46).
the Proposed Rule Change
Commission and any person, other than 6 17 CFR 240.19b–4(f)(6)(iii).
those that may be withheld from the The Exchange proposes to implement 7 The term ETP Holder is defined in NYSE Arca
public in accordance with the the quoting and trading provisions of Equities Rule 1.1(n) to mean a sole proprietorship,
provisions of 5 U.S.C. 552, will be partnership, corporation, limited liability company
the Plan to Implement a Tick Size Pilot or other organization in good standing that has been
available for Web site viewing and Program submitted to the Commission issued an ETP. An ETP Holder must be a registered
printing in the Commission’s Public pursuant to Rule 608 of Regulation broker or dealer pursuant to Section 15 of the Act.
Reference Room, 100 F Street NE., NMS 4 under the Act (the ‘‘Plan’’). The An ETP Holder shall agree to be bound by the
Washington, DC 20549 on official Certificate of Incorporation, Bylaws and Rules of
proposed rule change is substantially NYSE Arca Equities, and by all applicable rules and
business days between the hours of similar to proposed rule changes regulations of the Commission.
10:00 a.m. and 3:00 p.m. Copies of the recently approved or published by the The term ETP is defined in NYSE Arca Equities
filing also will be available for Commission by New York Stock Rule 1.1(m) to mean an equity trading permit issued
inspection and copying at the principal by NYSE Arca Equities for effecting approved
Exchange LLC to adopt NYSE Rules securities transactions on NYSE Arca Equities’
office of the Exchange. All comments
sradovich on DSK3TPTVN1PROD with NOTICES
67(a) and 67(c)–(e), which also trading facilities.
received will be posted without change; implemented the quoting and trading 8 See Securities and Exchange Act Release No.
the Commission does not edit personal 74892 (May 6, 2015), 80 FR 27513 (File No.
identifying information from 19 17 CFR 200.30–3(a)(12).
4–657) (‘‘Tick Plan Approval Order’’). See, also,
submissions. You should submit only 1 15
Securities and Exchange Act Release No. 76382
U.S.C. 78s(b)(1). (November 6, 2015) (File No. 4–657), 80 FR 70284
information that you wish to make 2 15 U.S.C. 78a.
(File No. 4–657) (November 13, 2015), which
3 17 CFR 240.19b–4.
extended the pilot period commencement date from
18 15 U.S.C. 78s(b)(2)(B). 4 17 CFR 242.608. May 6, 2015 to October 3, 2016.
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Document Created: 2016-06-04 00:17:05
Document Modified: 2016-06-04 00:17:05
| 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 36357 |
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