82_FR_45529 82 FR 45342 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Relating to Listing and Trading of Shares of Breakwave Dry Bulk Shipping ETF Under NYSE Arca Rule 8.200-E, Commentary .02

82 FR 45342 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Relating to Listing and Trading of Shares of Breakwave Dry Bulk Shipping ETF Under NYSE Arca Rule 8.200-E, Commentary .02

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 187 (September 28, 2017)

Page Range45342-45349
FR Document2017-20751

Federal Register, Volume 82 Issue 187 (Thursday, September 28, 2017)
[Federal Register Volume 82, Number 187 (Thursday, September 28, 2017)]
[Notices]
[Pages 45342-45349]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-20751]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81681; File No. SR-NYSEArca-2017-107]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Proposed Rule Change Relating to Listing and Trading of Shares of 
Breakwave Dry Bulk Shipping ETF Under NYSE Arca Rule 8.200-E, 
Commentary .02

September 22, 2017.
    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 September 8, 2017, 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 substantially prepared by the self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to list and trade the shares of Breakwave Dry 
Bulk Shipping ETF under NYSE Arca Rule 8.200-E, Commentary .02 (``Trust 
Issued Receipts''). The proposed 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 Exchange proposes to list and trade shares (``Shares'') of the 
following under NYSE Arca Rule 8.200-E, Commentary .02, which governs 
the listing and trading of Trust Issued Receipts: Breakwave Dry Bulk 
Shipping ETF (the ``Fund'').\4\
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    \4\ Commentary .02 to NYSE Arca Rule 8.200-E applies to Trust 
Issued Receipts that invest in ``Financial Instruments.'' The term 
``Financial Instruments,'' as defined in Commentary .02(b)(4) to 
NYSE Arca Rule 8.200-E, means any combination of investments, 
including cash; securities; options on securities and indices; 
futures contracts; options on futures contracts; forward contracts; 
equity caps, collars, and floors; and swap agreements.
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    The Fund will be a series of ETF Managers Group Commodity Trust I 
(the ``Trust).\5\ The Fund and the Trust will be managed and controlled 
by their sponsor and investment manager, ETF Managers Capital LLC (the 
``Sponsor''). The Sponsor is registered with the Commodity Futures 
Trading Commission (``CFTC'') as a commodity pool operator (``CPO'') 
and is a member of the National Futures Association (``NFA''). 
Breakwave Advisors LLC (``Breakwave'') is registered as a commodity 
trading advisor with the CFTC and will serve as the Fund's commodity 
trading advisor. ETFMG Financial LLC will be the Fund's distributor 
(``Distributor'' or ``Marketing Agent''). US Bancorp Fund Services LLC 
will be the Fund's ``Administrator'' and ``Transfer Agent''.
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    \5\ On June 2, 2017, the Trust filed with the Commission a 
registration statement on Form S-1 under the Securities Act of 1933 
(15 U.S.C. 77a) (``Securities Act'') relating to the Fund (File No. 
333-218453) (the ``Registration Statement''). The description of the 
operation of the Trust and the Fund herein is based, in part, on the 
Registration Statement.
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The Fund's Investment Objective and Strategy
    According to the Registration Statement, the Fund's investment 
objective will be to provide investors with exposure to the daily 
change in the price of dry bulk freight futures, before expenses and 
liabilities of the Fund, by tracking the performance of a portfolio 
(the ``Benchmark Portfolio'') consisting of a three-month strip of the 
nearest calendar quarter of futures contracts on specified indexes 
(each a ``Reference Index'') that measure rates for shipping dry bulk 
freight (``Freight Futures''). Each Reference Index is published daily 
by the London-based Baltic Exchange Ltd \6\ and measures the charter 
rate for shipping dry bulk freight in a specific size category of cargo 
ship--Capesize, Panamax or Supramax. The three Reference Indexes are as 
follows: Capesize: the Capesize 5TC Index; Panamax: the Panamax 4TC 
Index; and Supramax: the Supramax 6TC Index.\7\
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    \6\ The Baltic Exchange, which is a wholly owned subsidiary of 
the Singapore Exchange Ltd (``SGX''), is a membership and an 
independent source of maritime market information for the trading 
and settlement of physical and derivative shipping contracts. 
According to the Baltic Exchange, this information is used by 
shipbrokers, owners and operators, traders, financiers and 
charterers as a reliable and independent view of the dry and tanker 
markets.
    \7\ The Reference Indexes are published by the Baltic Exchange's 
subsidiary company, Baltic Exchange Information Services Ltd 
(``Baltic''), which publishes a wide range of market reports, 
fixture lists and market rate indicators on a daily and (in some 
cases) weekly basis. The Baltic indices, which include the Reference 
Indexes, are an assessment of the price of moving the major raw 
materials by sea. The indices are based on assessments of the cost 
of transporting various bulk cargoes, both wet (e.g., crude oil and 
oil products) and dry (e.g., coal and iron ore), made by leading 
shipbroking houses located around the world on a per tonne and daily 
hire basis. The information is collated and published by the Baltic 
Exchange. Procedures relating to administration of the Baltic 
indices are set forth in ``The Baltic Exchange, Guide to Market 
Benchmarks'' November 2016 (the ``Guide''), including production 
methods, calculation, confidentiality and transparency, duties of 
panelists, code of conduct, audits and quality control. According to 
the Guide, these procedures are in compliance with the ``Principles 
for Financial Benchmarks'' issued by the International Organization 
of Securities Commissioners (``IOSCO''). The Guide is available at 
www.balticexchange.com.
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    The Fund will seek to achieve its investment objective by investing 
substantially all of its assets in the Freight Futures currently 
constituting the Benchmark Portfolio. The Benchmark Portfolio will 
include all existing positions to maturity and settle them in cash. 
During any given calendar quarter, the Benchmark Portfolio will 
progressively increase its position to the next calendar quarter three-
month strip, thus maintaining constant exposure to the Freight Futures 
market as positions mature.
    The Benchmark Portfolio will maintain long-only positions in 
Freight Futures. The Benchmark Portfolio will hold a combination of 
Capesize, Panamax and Supramax Freight Futures. More specifically, the 
Benchmark Portfolio will hold 50% exposure in Capesize Freight Futures 
contracts, 40% exposure in Panamax Freight Futures contracts and 10% 
exposure in Supramax Freight Futures contracts. The Benchmark Portfolio 
will not include and the Fund will not invest in swaps, non-cleared dry 
bulk freight forwards or other over-the-counter

[[Page 45343]]

derivative instruments that are not cleared through exchanges or 
clearing houses. The Fund may hold exchange-traded options on Freight 
Futures. The Benchmark Portfolio is maintained by Breakwave and will be 
rebalanced annually.
    When establishing positions in Freight Futures, the Fund will be 
required to deposit initial margin with a value of approximately 10% to 
40% of the notional value of each Freight Futures position at the time 
it is established. These margin requirements are established and 
subject to change from time to time by the relevant exchanges, clearing 
houses or the Fund's futures commission merchant (``FCM''). On a daily 
basis, the Fund will be obligated to pay, or entitled to receive, 
variation margin in an amount equal to the change in the daily 
settlement level of its Freight Futures positions. Any assets not 
required to be posted as margin with the FCM will be held at the Fund's 
custodian in cash or cash equivalents.\8\
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    \8\ The Fund will hold cash or cash equivalents, such as U.S. 
Treasuries or other high credit quality, short-term fixed-income or 
similar securities for direct investment or as collateral for the 
U.S. Treasuries and for other liquidity purposes, and to meet 
redemptions that may be necessary on an ongoing basis.
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    The Fund will seek to achieve its objective by purchasing Freight 
Futures that are cleared through major exchanges (see description of 
Freight Futures below). The Fund will place purchase orders for Freight 
Futures with an execution broker. The broker will identify a selling 
counterparty and, simultaneously with the completion of the 
transaction, will submit the block traded Freight Futures to the 
relevant exchange or clearing house for clearing, thereby completing 
and creating a cleared futures transaction. If the exchange or clearing 
house does not accept the transaction for any reason, the transaction 
will be considered null and void and of no legal effect. The Fund's 
investments in Freight Futures will be cleared by Nasdaq OMX-Stockholm 
AB, Chicago Mercantile Exchange (``CME''), ICE Futures U.S., SGX and/or 
the European Energy Exchange (``EEX'').\9\
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    \9\ Nasdaq OMX-Stockholm AB, SGX, CME and ICE Futures U.S. are 
members of the Intermarket Surveillance Group (``ISG''). See note 
16, infra.
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    The Benchmark Portfolio will initially consist of positions in the 
three-month strip of the nearest calendar quarter of Freight Futures 
and roll them constantly to the next calendar quarter. The four-
calendar quarters are January, February, and March (Q1), April, May, 
and June (Q2), July, August, and September (Q3), and October, November 
and December (Q4). The Benchmark Portfolio will initially consist of an 
equal number of Freight Futures in each of the three months comprising 
the nearby calendar quarter at the beginning of such quarter.
    Throughout the quarter, the Fund will attempt to roll positions in 
the nearby calendar quarter, on a pro rata basis. For example, if the 
Fund was currently holding the Q1 calendar quarter comprising the 
January, February and March monthly contracts, each week in the month 
of February, the Fund will attempt to purchase Q2 contracts in an 
amount equal to approximately one quarter of the expiring February 
positions. As a result, by the end of February, the Fund would have 
rolled the February position to Q2 contracts, leaving the Fund with 
March and Q2 contracts. At the end of March, the Fund will have 
completed the roll and will then hold only Q2 exposure comprising 
April, May and June monthly contracts. Since Freight Futures contracts 
are cash settled, the Fund need not sell out of existing contracts. 
Rather, it will hold such contracts to expiration and apply the above 
methodology in order acquire the nearby calendar contract.
    The Benchmark Portfolio will be rebalanced annually. The Benchmark 
Portfolio's initial allocation will be approximately 50% Capesize 
Freight Futures contracts, 40% Panamax Freight Futures contracts and 
10% Supramax Freight Futures contracts. The above allocation will be 
based on contract value, not number of lots. Given each asset's 
individual price movements during the year, such percentages might 
deviate from the targeted allocation.
    During the month of December of each year, the Fund will rebalance 
its portfolio in order to bring the allocation of assets back to the 
desirable levels. During this period, the Fund would purchase or sell 
Freight Futures to achieve its targeted allocation.
    The Sponsor anticipates that the Fund's Freight Futures positions 
will be held to expiration and settle in cash against the respective 
Reference Index as published by the Baltic Exchange. However, positions 
may be closed out to meet orders for redemption of baskets, in which 
case the proceeds from the closed positions will not be reinvested.
    The Fund's portfolio will be traded with a view to reflecting the 
performance of Freight Futures, whether Freight Futures are rising, 
falling or flat over any particular period. To maintain the correlation 
between the Fund and the change in the Benchmark Portfolio, the Sponsor 
may adjust the Fund's portfolio of investments on a daily basis in 
response to creation and redemption orders or otherwise as required.
Overview of the Dry Bulk Freight Industry
    As stated in the Registration Statement, the following is a brief 
introduction of the global dry bulk freight industry. The data 
presented below is derived from information released from various 
third-party sources. The third-party sources from which certain of the 
information presented below include the United Nations Conference on 
Trade and Development, the Baltic and International Maritime Council, 
Bloomberg and others. Dry bulk shipping is a 150-plus year-old industry 
focusing on the transportation of dry bulk commodities using oceangoing 
vessels named dry bulk carriers. Dry bulk carriers are ships that have 
cargo loaded directly into the ship's storage holds. The cargos 
transported are dry commodities that do not need to be carried in 
packaged form. Dry commodity cargos (mainly iron ore, coal and grains) 
are homogenous and are loaded with bucket cranes, conveyors or pumps. 
Crude oil and refined products, while shipped in bulk, are wet cargos 
and are transported on tanker vessels, rather than dry bulk carriers. 
Dry bulk carriers have an average useful life of approximately 25 years 
and are measured on size or capacity in dead weight tons (``DWT'').
Dry Bulk Carriers Come in Various Sizes
    Capesizes (100,000+ DWT) are the largest of the dry bulk asset 
classes. Capesizes primarily transport iron ore and coal. Traditional 
Capesize routes are from Australia to Asia, and from Brazil to Europe 
and Asia. There are about 1,650 Capesizes worldwide. The Capesize fleet 
is about 40% of the dry bulk fleet by DWT capacity.
    Panamaxes (65,000-100,000 DWT) primarily transport coal, grain and 
iron ore. The Panamax is the largest vessel class that can transit the 
(old) Panama Canal. There are about 2,500 Panamaxes worldwide 
representing 24% of the global fleet by capacity.
    Handymaxes (40,000-65,000 DWT) are the work horse of the industry, 
carrying the whole spectrum of dry bulk commodities: Grain, coal, iron 
ore, and minor bulks. A sub-category of Handymaxes are vessels with 
capacities of 50,000-65,000 that are called Supramaxes. There are 3,400 
Handymaxes worldwide representing about 25% of the global fleet by DWT 
capacity.
    Handysizes (10,000-40,000 DWT) bulkers typically transport grain, 
coal,

[[Page 45344]]

and minor bulks. Handysize bulkers tend to trade regionally. There are 
about 3,300 Handysize bulkers in the fleet, or about 11% of the global 
fleet by DWT capacity.
Dry Bulk Vessel Supply
    According to the Registration Statement, there are approximately 
10,500 dry bulk vessels worldwide with a carrying capacity of roughly 
790 million DWT and an average age of approximately 8 years. Supply of 
dry bulk ships is dynamic.
    Factors impacting dry bulk supply include new orders, the scrapping 
of older vessels, new shipbuilding technologies, vessel congestion in 
ports, closures of major waterways, including canals, and wars and 
other geopolitical conflicts that can restrict access to vessels 
available for shipping dry bulk freight.
Demand for Dry Bulk Freight
    According to the Registration Statement, dry bulk demand has seen 
steady growth over the past two decades, as the Asian economies have 
exhibited robust demand for raw materials on the back of strong 
economic growth. Iron ore, the main component of steel production, has 
been the main driver of dry bulk freight demand growth. The higher 
demand for such raw materials has led to increasing demand for dry bulk 
shipping, as the regions that produce and consume raw materials are 
located far apart.
    Demand for dry bulk freight is generally measured in ton-miles, 
which corresponds to one ton of freight carried one mile. Such measure 
takes into consideration both the quantity of cargo transport but also 
the distance between loading and offloading ports. Over the last 10 
years, dry bulk freight demand growth for major commodities has 
averaged approximately 6% per year. In 2015, dry bulk freight demand 
growth for major commodities declined for the first time in at least 15 
years, while in 2016, it is estimated to have increased by 
approximately 2%. Weaker iron ore and coal imports to China were the 
main reasons for the below trend growth.
    Factors impacting demand for shipping dry bulk freight include 
global economic growth, demand for iron ore, demand for metallurgical 
and thermal coal, demand for grains, government regulations, taxes and 
tariffs, fuel prices, vessel speeds and new trade routes.
Dry Bulk Freight Charter Rates
    According to the Registration Statement, dry bulk freight ``charter 
rates'' reflect the price paid for the use of the ship to transport a 
bulk commodity. The most commonly used freight rate is the timecharter 
rate, which is measured in U.S. Dollars per day. Dry bulk timecharter 
rates have exhibited significant volatility in the last 15 years. From 
2003 to 2008, faster growth rates in demand for dry bulk ships was not 
matched by growth in supply of ships and thus, charter rates increased 
considerably, reaching their highest point in 2008. Following the 
global financial crisis, growth in supply of ships exceeded demand, 
leading to a considerable drop in charter rates. Over the last five 
years, rates have generally been weak compared to historical levels, as 
higher supply and relatively weak demand growth led to lower 
utilization rates in the industry.
    A common industry measure of dry bulk rates is the Baltic Dry Index 
(``BDI''). The BDI is an economic indicator issued daily by the Baltic 
Exchange. The BDI provides an assessment of the price of moving the 
major raw materials by sea throughout the world. Taking in 21 shipping 
routes measured on a timecharter basis, the index covers Handysize, 
Supramax, Panamax, and Capesize dry bulk carriers carrying a range of 
commodities including coal, iron ore and grain. Each individual asset 
class also has its own index (i.e., a Reference Index), which is also 
published daily by the Baltic Exchange and reflects a weighted average 
assessment of different standardized routes around the world.
    The BDI has reflected the volatility of charter rates over the last 
15 years, reaching its highest point on record in 2008 at 11,793. In 
2016, it reached its lowest point on record at 290. The average price 
of the BDI in the 15 years from 2001 to 2016, has been 2,567, and the 
median price has been 1,747. As of March 31, 2017, the BDI stood at 
1,200.
Freight Futures
    According to the Registration Statement, freight futures are 
financial futures contracts that allow ship owners, charterers and 
speculators to hedge against the volatility of freight rates. The 
Freight Futures are built on indices composed of baskets of routes for 
dry bulk freight, such as the Capesize 5TC Index, Panamax 4TC Index and 
Supramax 6TC Index. Freight Futures are financial instruments that 
trade off-exchange but then are cleared through an exchange. Market 
participants communicate their buy or sell orders through a network of 
execution brokers mainly through phone or instant messaging platforms 
with specific trading instructions related to price, size, and type of 
order. The execution broker receives such order and then attempts to 
match it with a counterpart. Once there is a match and both parties 
confirm the transaction, the execution broker submits the transaction 
details including trade specifics, counterparty details and accounts to 
the relevant exchange for clearing, thus completing a cleared block 
futures transaction. The exchange will then require the relevant member 
or FCM to submit the necessary margin to support the position similar 
to other futures clearing and margin requirements.
    Freight Futures are listed and cleared on the following exchanges: 
Nasdaq OMX-Stockholm AB, CME, ICE Futures U.S., SGX, and EEX.
    Freight Futures settle monthly over the arithmetic average of spot 
index assessments in the contract month for the relevant underlying 
product, rounded to one decimal place. The daily index publication, 
against which Freight Futures settle, is published by the Baltic 
Exchange.
    Generally, Freight Futures trade from approximately 12:00 a.m. 
Eastern Time (``E.T.'') to approximately 12:00 p.m. E.T. The great 
majority of trading volume occurs during London business hours, from 
approximately 3:00 a.m. E.T. time to approximately 12:00 p.m. E.T. Some 
limited trading takes place during Asian business hours as well (12:00 
a.m.-3:00 a.m. E.T.).
    Exchanges have a cutoff time of 1:00 p.m. E.T. for clearing the 
respective day's trades (SGX clears Freight Futures from 7:00 p.m. E.T. 
to 3:00 a.m. E.T.). The final closing prices for settlement are 
published daily around 1:30 p.m. E.T. Final cash settlement occurs the 
first business day following the expiry day.
    Freight Futures are quoted in U.S. Dollars per day, with a minimum 
lot size of one. One lot represents one day of freight costs, as 
freight rates are measured in U.S. Dollars per day. The nominal value 
of a contract is simply the product of lots and Freight Futures prices. 
There are Futures Contracts of up to 72 consecutive months, starting 
with the current month, available for trading for each vessel class.
    Similar to other futures, Freight Futures are subject to margin 
requirements by the relevant exchanges. The Sponsor anticipates that 
approximately 10% to 40% of the Fund's assets will be used as payment 
for or collateral for Freight Futures contracts. In order to 
collateralize its Freight Futures positions, the Fund will hold such 
assets, from which it will post margin to its FCM in an amount equal to 
the margin required by the relevant

[[Page 45345]]

exchanges, and transfer to its FCM any additional amounts that may be 
separately required by the FCM.
    According to the Registration Statement, most of the daily trading 
takes place over phones and instant messaging platforms.\10\ Trading 
screens also exist and some trading also happens through such screens. 
Brokers are required to report to the relevant exchanges each trade 
that takes place. Freight Futures liquidity has remained relatively 
constant, in lot terms, over the last five years with approximately 1.1 
million lots trading annually. Open interest currently stands at 
approximately 290,000 lots across all asset classes representing an 
estimated value of more than $3 billion. Of such open interest, 
Capesize contracts account for approximately 50%, Panamax for 
approximately 40% and Handymax for approximately 10%. Major market 
participants in Freight Futures market include: Commodity producers, 
commodity users, commodity trading houses, ship operators, major banks, 
investment funds and independent ship owners.
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    \10\ Freight Futures are primarily traded through broker members 
of the Forward Freight Agreement Brokers Association (``FFABA''), 
such as Clarkson's Securities, Simpson Spence Young, Freight 
Investor Services, GFI Group, BRS Group and ICAP.
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Calculating Net Asset Value (``NAV'')
    The Fund's NAV will be calculated by taking the current market 
value of its total assets, subtracting any liabilities; and dividing 
that total by the total number of outstanding Shares.
    The Administrator will calculate the NAV of the Fund once each NYSE 
Arca trading day. The NAV for a particular trading day will be released 
after 4:00 p.m. E.T. The Administrator will use the Baltic Exchange 
closing price for the Freight Futures, but will calculate or determine 
the value of all other Fund investments using market quotations, if 
available, or other information customarily used to determine the fair 
value of such investments as of the earlier of the close of the NYSE 
Arca Core Trading Session (normally 4:00 p.m. E.T.). The information 
may include costs of funding, to the extent costs of funding are not 
and would not be a component of the other information being utilized. 
Third parties supplying quotations or market data may include, without 
limitation, dealers in the relevant markets, end-users of the relevant 
product, information vendors, brokers and other sources of market 
information.
Indicative Fund Value
    In order to provide updated information relating to the Fund for 
use by investors and market professionals, an updated indicative fund 
value (``IFV'') will be made available through on-line information 
services throughout the Exchange Core Trading Session (normally 9:30 
a.m. to 4:00 p.m., E.T.) on each trading day. The IFV will be 
calculated by using the prior day's closing NAV per Share of the Fund 
as a base and updating that value throughout the trading day to reflect 
changes in the most recently reported trade price for the futures and/
or options held by the Fund. The IFV disseminated during NYSE Arca Core 
Trading Session hours should not be viewed as an actual real time 
update of the NAV, because the NAV will be calculated only once at the 
end of each trading day based upon the relevant end of day values of 
the Fund's investments.
    The IFV will be disseminated on a per Share basis every 15 seconds 
during regular NYSE Arca Core Trading Session hours of 9:30 a.m. E.T. 
to 4:00 p.m. E.T. The customary trading hours of the Freight Futures 
trading are 3:00 a.m. E.T. to 12:00 p.m. E.T. This means that there is 
a gap in time at the end of each day during which the Fund's Shares 
will be traded on the NYSE Arca, but real-time trading prices for 
contracts are not available. During such gaps in time the IFV will be 
calculated based on the end of day price of such contracts from the 
Baltic Exchange's immediately preceding trading session. In addition, 
other investments and U.S. Treasuries held by the Fund will be valued 
by the Administrator using rates and points received from client-
approved third party vendors (such as Reuters and WM Company) and 
broker-dealer quotes. These investments will not be included in the 
IFV.
    Dissemination of the IFV provides additional information that is 
not otherwise available to the public and is useful to investors and 
market professionals in connection with the trading of the Fund's 
Shares on the NYSE Arca. Investors and market professionals are able 
throughout the trading day to compare the market price of Fund Shares 
and the IFV. If the market price of the Fund Shares diverges 
significantly from the IFV, market professionals will have an incentive 
to execute arbitrage trades. For example, if the Fund's Shares appears 
to be trading at a discount compared to the IFV, a market professional 
could buy the Fund's Shares on the NYSE Arca and take the opposite 
position in Freight Futures. Such arbitrage trades can tighten the 
tracking between the market price of the Fund's Shares and the IFV and 
thus can be beneficial to all market participants.
Creation and Redemption of Shares
    According to the Registration Statement, the Fund will create and 
redeem Shares from time to time in one or more ``Creation Baskets'' or 
``Redemption Baskets'' (collectively, the ``Baskets''). A Basket 
consists of 50,000 Shares. The creation and redemption of Baskets will 
only be made in exchange for delivery to the Fund or the distribution 
by the Fund of the amount of Treasuries and any cash represented by the 
Baskets being created or redeemed, the amount of which is based on the 
combined NAV of the number of Shares included in the Baskets being 
created or redeemed determined as of 4:00 p.m. E.T. on the day the 
order to create or redeem Baskets is properly received.
    ``Authorized Participants'' are the only persons that may place 
orders to create and redeem Baskets. Authorized Participants must be 
(1) registered broker-dealers or other securities market participants, 
such as banks and other financial institutions, that are not required 
to register as broker-dealers to engage in securities transactions 
described below, and (2) Depository Trust Company (``DTC'') 
participants.
Creation Procedures
    On any business day, an Authorized Participant may place an order 
with the Transfer Agent to create one or more Baskets. For purposes of 
processing purchase and redemption orders, a ``business day'' means any 
day other than a day when any of the NYSE Arca, the Baltic Exchange or 
the New York Stock Exchange is closed for regular trading. Purchase 
orders must be placed by 1:00 p.m. E.T. or the close of the Core 
Trading Session on NYSE Arca, whichever is earlier. The day on which a 
valid purchase order is received in accordance with the terms of the 
``Authorized Participant Agreement'' is referred to as the purchase 
order date. Purchase orders are irrevocable.
Determination of Required Payment
    The total payment required to create each Creation Basket is the 
NAV of 50,000 Shares on the purchase order date, but only if the 
required payment is timely received. To calculate the NAV, the 
Administrator will use the Baltic Exchange settlement price (typically 
determined after 2:00 p.m. E.T.) for the Freight Futures. Because 
orders to purchase Baskets must be placed no later than 1:00 p.m., 
E.T., but

[[Page 45346]]

the total payment required to create a Basket typically will not be 
determined until after 2:00 p.m., E.T., on the date the purchase order 
is received, Authorized Participants will not know the total amount of 
the payment required to create a Basket at the time they submit an 
irrevocable purchase order.
Delivery of Required Payment
    An Authorized Participant who places a purchase order shall 
transfer to the Administrator the required amount of Freight Futures, 
U.S. Treasuries and/or cash, or a combination of them, by the end of 
the next business day following the purchase order date. Upon receipt 
of the deposit amount, the Administrator will direct DTC to credit the 
number of Baskets ordered to the Authorized Participant's DTC account 
on the next business day following the purchase order date.
Redemption Procedures
    According to the Registration Statement, the procedures by which an 
Authorized Participant can redeem one or more Baskets will mirror the 
procedures for the creation of Baskets. On any business day, an 
Authorized Participant may place an order with the Transfer Agent, and 
accepted by the Distributor, to redeem one or more Baskets. Redemption 
orders must be placed by 1:00 p.m. E.T. or the close of the Core 
Trading Session on the NYSE Arca, whichever is earlier. A redemption 
order so received will be effective on the date it is received in 
satisfactory form in accordance with the terms of the Authorized 
Participant Agreement. The day on which the Marketing Agent receives a 
valid redemption order is the redemption order date. Redemption orders 
are irrevocable. By placing a redemption order, an Authorized 
Participant agrees to deliver the baskets to be redeemed through DTC's 
book-entry system to the Fund not later than 1:00 p.m., E.T., on the 
next business day immediately following the redemption order date.
Determination of Redemption Proceeds
    The redemption proceeds from the Fund will consist of a cash 
redemption amount equal to the NAV of the number of Baskets requested 
in the Authorized Participant's redemption order on the redemption 
order date.
    Because orders to redeem Baskets must be placed no later than 1:00 
p.m., E.T., but the total amount of redemption proceeds typically will 
not be determined until after 2:00 p.m., E.T., on the date the 
redemption order is received, Authorized Participants will not know the 
total amount of the redemption proceeds at the time they submit an 
irrevocable redemption order.
    The redemption proceeds due from the Fund will be delivered to the 
Authorized Participant at 1:00 p.m., E.T., on the next business day 
immediately following the redemption order date if, by such time, the 
Fund's DTC account has been credited with the Baskets to be redeemed.
Availability of Information
    The NAV for the Fund's Shares will be disseminated daily to all 
market participants at the same time. The intraday, closing prices, and 
settlement prices of the Freight Futures will be readily available from 
the applicable futures exchange Web sites, automated quotation systems, 
published or other public sources, or major market data vendors.
    Complete real-time data for Freight Futures is available by 
subscription through on-line information services. Quotation and last-
sale information regarding the Shares will be disseminated through the 
facilities of the Consolidated Tape Association (``CTA''). The IFV will 
be available through on-line information services. The Freight Futures 
trading prices will be disseminated by one or more major market data 
vendors during the NYSE Arca Core Trading Session of 9:30 a.m. to 4:00 
p.m. E.T. Nasdaq OMX-Stockholm AB, SGX, CME, ICE Futures US and EEX 
provide on a daily basis, transaction volumes, transaction prices, 
trade time, and open interest on their respective Web sites. In 
addition, historical data also exists for volumes and open interest. 
Daily settlement prices and historical settlement prices are available 
through a subscription service to the Baltic Exchange, which maintains 
the licensing rights of relevant freight data. However, the exchanges 
provide the daily settlement price change of Freight Futures on their 
respective Web sites. Certain Freight Futures brokers provide real time 
pricing information to the general public either through their Web 
sites or through data vendors such as Bloomberg or Reuters. Most 
Freight Futures brokers provide, upon request, individual electronic 
screens that market participants can use to transact, place orders or 
only monitor Freight Futures market price levels.
    In addition, the Fund's Web site, www.drybulketf.com, will display 
the applicable end of day closing NAV. The Freight Futures currently 
constituting the Benchmark Portfolio, as well as the daily holdings of 
the Fund will be available on the Fund's Web site. The daily holdings 
of the Benchmark Portfolio and the Fund will be available on the Fund's 
Web site before 9:30 a.m. E.T. each day. The Web site disclosure of 
portfolio holdings will be made daily and will include, as applicable, 
(i) the composite value of the total portfolio, (ii) the quantity and 
type of each holding (including the ticker symbol, maturity date or 
other identifier, if any) and other descriptive information including, 
in the case of an option, its strike price, (iii) the value of each 
Freight Futures (in U.S. dollars), (iv) the type (including maturity, 
ticker symbol, or other identifier) and value of each Treasury security 
and cash equivalent, and (v) the amount of cash held in the Fund's 
portfolio. The Fund's Web site will be publicly accessible at no 
charge.
    The daily closing Benchmark Portfolio level and the percentage 
change in the daily closing level for the Benchmark Portfolio will be 
publicly available from one or more major market data vendors. The 
intraday value of the Benchmark Portfolio, updated every 15 seconds, 
will also be available through major market data vendors.
    This Web site disclosure of the Benchmark Portfolio's and the 
Fund's daily holdings will occur at approximately the same time as the 
disclosure by the Trust of the daily holdings to Authorized 
Participants so that all market participants are provided daily 
holdings information at approximately the same time. Therefore, the 
same holdings information will be provided on the public Web site as 
well as in electronic files provided to Authorized Participants. 
Accordingly, each investor will have access to the current daily 
holdings of the Fund through the Fund's Web site.
Trading Halts
    With respect to trading halts, the Exchange may consider all 
relevant factors in exercising its discretion to halt or suspend 
trading in the Shares of the Fund.\11\ Trading in Shares of the Fund 
will be halted if the circuit breaker parameters in NYSE Arca Rule 
7.12-E have been reached. Trading also may be halted because of market 
conditions or for reasons that, in the view of the Exchange, make 
trading in the Shares of the Fund inadvisable.
---------------------------------------------------------------------------

    \11\ See NYSE Arca Rule 7.12-E.
---------------------------------------------------------------------------

    The Exchange may halt trading during the day in which an 
interruption to the dissemination of the IFV or the value of the 
Benchmark Portfolio occurs. If the interruption to the dissemination of 
the IFV, or the value of the Benchmark Portfolio persists past the 
trading day in which it occurred, the Exchange will

[[Page 45347]]

halt trading no later than the beginning of the trading day following 
the interruption. In addition, if the Exchange becomes aware that the 
NAV with respect to the Shares is not disseminated to all market 
participants at the same time, it will halt trading in the Shares until 
such time as the NAV is available to all market participants.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus 
rendering trading in the Shares subject to the Exchange's existing 
rules governing the trading of equity securities. Shares will trade on 
the NYSE Arca Marketplace from 4 a.m. to 8 p.m. E.T. in accordance with 
NYSE Arca Rule 7.34-E (Early, Core, and Late Trading Sessions). The 
Exchange has appropriate rules to facilitate transactions in the Shares 
during all trading sessions. As provided in NYSE Arca Rule 7.6-E, the 
minimum price variation (``MPV'') for quoting and entry of orders in 
equity securities traded on the NYSE Arca Marketplace is $0.01, with 
the exception of securities that are priced less than $1.00 for which 
the MPV for order entry is $0.0001.
    The Shares will conform to the initial and continued listing 
criteria under NYSE Arca Rule 8.200-E. The trading of the Shares will 
be subject to NYSE Arca Rule 8.200-E, Commentary .02(e), which sets 
forth certain restrictions on Equity Trading Permit (``ETP'') Holders 
acting as registered Market Makers in Trust Issued Receipts to 
facilitate surveillance. The Exchange represents that, for initial and/
or continued listing, the Funds will be in compliance with Rule 10A-
3\12\ under the Act, as provided by NYSE Arca Rule 5.3-E. A minimum of 
100,000 Shares will be outstanding at the commencement of trading on 
the Exchange.
---------------------------------------------------------------------------

    \12\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Surveillance
    The Exchange represents that trading in the Shares will be subject 
to the existing trading surveillances administered by the Exchange, as 
well as cross-market surveillances administered by the Financial 
Industry Regulatory Authority (``FINRA'') on behalf of the Exchange, 
which are designed to detect violations of Exchange rules and 
applicable federal securities laws.\13\ The Exchange represents that 
these procedures are adequate to properly monitor Exchange trading of 
the Shares of the Funds in all trading sessions and to deter and detect 
violations of Exchange rules and federal securities laws applicable to 
trading on the Exchange.
---------------------------------------------------------------------------

    \13\ FINRA conducts cross-market surveillances on behalf of the 
Exchange pursuant to a regulatory services agreement. The Exchange 
is responsible for FINRA's performance under this regulatory 
services agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting 
securities trading outside their normal patterns, which could be 
indicative of manipulative or other violative activity. When such 
situations are detected, surveillance analysis follows and 
investigations are opened, where appropriate, to review the behavior of 
all relevant parties for all relevant trading violations.
    The Exchange or FINRA, on behalf of the Exchange, or both, will 
communicate as needed regarding trading in the Shares and Freight 
Futures with other markets and other entities that are members of the 
ISG, and the Exchange or FINRA, on behalf of the Exchange, or both, may 
obtain trading information regarding trading in the Shares and Freight 
Futures from such markets and other entities. In addition, the Exchange 
may obtain information regarding trading in the Shares and Freight 
Futures from markets and other entities that are members of ISG or with 
which the Exchange has in place a comprehensive surveillance sharing 
agreement (``CSSA'').\14\
---------------------------------------------------------------------------

    \14\ For a list of the current members of ISG, see 
www.isgportal.org. The Exchange notes that not all components of the 
Funds may trade on markets that are members of ISG or with which the 
Exchange has in place a CSSA.
---------------------------------------------------------------------------

    Not more than 10% of the net assets of the Fund in the aggregate 
invested in Freight Futures shall consist of Freight Futures whose 
principal market is not a member of the ISG or is a market with which 
the Exchange does not have a CSSA.
    In addition, the Exchange also has a general policy prohibiting the 
distribution of material, non-public information by its employees.
    All statements and representations made in this filing regarding 
(a) the description of the portfolios, (b) limitations on portfolio 
holdings or reference assets, or (c) applicability of Exchange listing 
rules specified in this filing shall constitute continued listing 
requirements for listing the Shares on the Exchange.
    The issuer 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. If the Fund is not in compliance with 
the applicable listing requirements, the Exchange will commence 
delisting procedures under NYSE Arca Rule 5.5-E(m).
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its 
ETP Holders in an Information Bulletin of the special characteristics 
and risks associated with trading the Shares. Specifically, the 
Information Bulletin will discuss the following: (1) The risks involved 
in trading the Shares during the Early and Late Trading Sessions when 
an updated IFV will not be calculated or publicly disseminated; (2) the 
procedures for purchases and redemptions of Shares in Creation Baskets 
and Redemption Baskets (and that Shares are not individually 
redeemable); (3) NYSE Arca Rule 9.2-E(a), which imposes a duty of due 
diligence on its ETP Holders to learn the essential facts relating to 
every customer prior to trading the Shares; (4) how information 
regarding the IFV is disseminated; (5) how information regarding 
portfolio holdings is disseminated; (6) the requirement that ETP 
Holders deliver a prospectus to investors purchasing newly issued 
Shares prior to or concurrently with the confirmation of a transaction; 
and (7) trading information.
    In addition, the Information Bulletin will advise ETP Holders, 
prior to the commencement of trading, of the prospectus delivery 
requirements applicable to the Fund. The Exchange notes that investors 
purchasing Shares directly from the Fund will receive a prospectus. ETP 
Holders purchasing Shares from the Fund for resale to investors will 
deliver a prospectus to such investors. The Information Bulletin will 
also discuss any exemptive, no-action, and interpretive relief granted 
by the Commission from any rules under the Act. In addition, the 
Information Bulletin will reference that the Fund is subject to various 
fees and expenses described in the Registration Statement. The 
Information Bulletin will also reference that the CFTC has regulatory 
jurisdiction over the trading of Freight Futures traded on U.S. 
markets.
    The Information Bulletin will also disclose the trading hours of 
the Shares and that the NAV for the Shares will be calculated after 
4:00 p.m. E.T. each trading day. The Information Bulletin will disclose 
that information about the Shares will be publicly available on the 
Fund's Web site.
    Prior to the commencement of trading, the Exchange will inform its 
ETP Holders of the suitability requirements of NYSE Arca Rule 9.2-E(a) 
in an Information Bulletin. Specifically, ETP Holders will be

[[Page 45348]]

reminded in the Information Bulletin that, in recommending transactions 
in the Shares, they must have a reasonable basis to believe that (1) 
the recommendation is suitable for a customer given reasonable inquiry 
concerning the customer's investment objectives, financial situation, 
needs, and any other information known by such ETP Holder, and (2) the 
customer can evaluate the special characteristics, and is able to bear 
the financial risks, of an investment in the Shares. In connection with 
the suitability obligation, the Information Bulletin will also provide 
that ETP Holders must make reasonable efforts to obtain the following 
information: (1) The customer's financial status; (2) the customer's 
tax status; (3) the customer's investment objectives; and (4) such 
other information used or considered to be reasonable by such ETP 
Holder or registered representative in making recommendations to the 
customer.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \15\ 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.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to 
prevent fraudulent and manipulative acts and practices in that the 
Shares will be listed and traded on the Exchange pursuant to the 
initial and continued listing criteria in NYSE Arca Rule 8.200-E. The 
Exchange has in place surveillance procedures that are adequate to 
properly monitor trading in the Shares of the Fund in all trading 
sessions and to deter and detect violations of Exchange rules and 
applicable federal securities laws. The Exchange or FINRA, on behalf of 
the Exchange, or both, will communicate as needed regarding trading in 
the Shares and Freight Futures with other markets and other entities 
that are members of the ISG, and the Exchange or FINRA, on behalf of 
the Exchange, or both, may obtain trading information regarding trading 
in the Shares and Freight Futures from such markets and other entities. 
In addition, the Exchange may obtain information regarding trading in 
the Shares and Freight Futures from markets and other entities that are 
members of ISG or with which the Exchange has in place a CSSA.\16\ Not 
more than 10% of the net assets of the Fund in the aggregate invested 
in Freight Futures shall consist of Freight Futures whose principal 
market is not a member of the ISG or is a market with which the 
Exchange does not have a CSSA. The Exchange will make available on its 
Web site daily trading volume of each of the Shares, closing prices of 
such Shares, and number of Shares outstanding. The intraday, closing 
prices, and settlement prices of Freight Futures will be readily 
available from the Baltic Exchange Web site, automated quotation 
systems, published or other public sources, or on-line information 
services.
---------------------------------------------------------------------------

    \16\ For a list of the current members of ISG, see 
www.isgportal.org. The Exchange notes that not all components of the 
funds may trade on markets that are members of ISG or with which the 
Exchange has in place a CSSA
---------------------------------------------------------------------------

    Complete real-time data for the Freight Futures is available by 
subscription from on-line information services. Quotation and last-sale 
information regarding the Shares will be disseminated through the 
facilities of the CTA. The IFV will be available through on-line 
information services. The Freight Futures trading prices will be 
disseminated by one or more major market data vendors every 15 seconds 
during the NYSE Arca Core Trading Session of 9:30 a.m. to 4:00 p.m. 
E.T. Nasdaq OMX-Stockholm AB, SGX, CME, ICE Futures US and EEX provide 
on a daily basis, transaction volumes, transaction prices, trade time, 
and open interest on their respective Web sites. In addition, the 
Fund's Web site, will display the applicable end of day closing NAV. 
The daily holdings of the Fund will be disclosed on the Fund's Web site 
before 9:30 a.m. E.T. each day. The daily holdings of the Fund will be 
available on the Fund's Web site before 9:30 a.m. E.T. each day. The 
Fund's Web site disclosure of portfolio holdings will be made daily and 
will include, as applicable, (i) the composite value of the total 
portfolio, (ii) the quantity and type of each holding (including the 
ticker symbol, maturity date or other identifier, if any) and other 
descriptive information including, in the case of an option, its strike 
price, (iii) the value of each Freight Futures (in U.S. dollars), (iv) 
the type (including maturity, ticker symbol, or other identifier) and 
value of each Treasury security and cash equivalent, and (v) the amount 
of cash held in the Fund's portfolio.
    Moreover, prior to the commencement of trading, the Exchange will 
inform its Equity Trading Permit Holders in an Information Bulletin of 
the special characteristics and risks associated with trading the 
Shares. Trading in Shares of the Fund will be halted if the circuit 
breaker parameters in NYSE Arca Rule 7.12-E have been reached or 
because of market conditions or for reasons that, in the view of the 
Exchange, make trading in the Shares inadvisable.
    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 it will facilitate the listing and trading of 
Trust Issued Receipts based on Freight Futures that will enhance 
competition among market participants, to the benefit of investors and 
the marketplace. As noted above, the Exchange has in place surveillance 
procedures that are adequate to properly monitor trading in the Shares 
in all trading sessions and to deter and detect violations of Exchange 
rules and applicable federal securities laws.

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 Act. The Exchange notes that the 
proposed rule change will facilitate the listing and trading of a new 
type of Trust Issued Receipts based on Freight Futures and that will 
enhance competition among market participants, to the benefit of 
investors and the marketplace.

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing,

[[Page 45349]]

including whether the proposed rule change is consistent with the Act. 
Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEArca-2017-107 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2017-107. 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-2017-107, and 
should be submitted on or before October 19, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Eduardo A. Aleman,
Assistant Secretary.
---------------------------------------------------------------------------

    \17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2017-20751 Filed 9-27-17; 8:45 am]
 BILLING CODE 8011-01-P



     45342                    Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices

       For the Commission, by the Division of                set forth in sections A, B, and C below,    by the London-based Baltic Exchange
     Trading and Markets, pursuant to delegated              of the most significant parts of such       Ltd 6 and measures the charter rate for
     authority.29                                            statements.                                 shipping dry bulk freight in a specific
     Eduardo A. Aleman,                                                                                  size category of cargo ship—Capesize,
                                                             A. Self-Regulatory Organization’s
     Assistant Secretary.                                                                                Panamax or Supramax. The three
                                                             Statement of the Purpose of, and the
     [FR Doc. 2017–20750 Filed 9–27–17; 8:45 am]                                                         Reference Indexes are as follows:
                                                             Statutory Basis for, the Proposed Rule
     BILLING CODE 8011–01–P                                                                              Capesize: the Capesize 5TC Index;
                                                             Change
                                                                                                         Panamax: the Panamax 4TC Index; and
                                                             1. Purpose                                  Supramax: the Supramax 6TC Index.7
     SECURITIES AND EXCHANGE                                    The Exchange proposes to list and            The Fund will seek to achieve its
     COMMISSION                                              trade shares (‘‘Shares’’) of the following  investment       objective by investing
                                                             under NYSE Arca Rule 8.200–E,               substantially all of its assets in the
     [Release No. 34–81681; File No. SR–
                                                             Commentary .02, which governs the           Freight Futures currently constituting
     NYSEArca–2017–107]
                                                             listing and trading of Trust Issued         the Benchmark Portfolio. The
     Self-Regulatory Organizations; NYSE                     Receipts: Breakwave Dry Bulk Shipping Benchmark Portfolio will include all
     Arca, Inc.; Notice of Filing of Proposed                ETF (the ‘‘Fund’’).4                        existing positions to maturity and settle
     Rule Change Relating to Listing and                        The Fund will be a series of ETF         them in cash. During any given calendar
     Trading of Shares of Breakwave Dry                      Managers Group Commodity Trust I (the quarter, the Benchmark Portfolio will
     Bulk Shipping ETF Under NYSE Arca                       ‘‘Trust).5 The Fund and the Trust will be progressively increase its position to the
     Rule 8.200–E, Commentary .02                            managed and controlled by their             next calendar quarter three-month strip,
                                                             sponsor and investment manager, ETF         thus maintaining constant exposure to
     September 22, 2017.                                     Managers Capital LLC (the ‘‘Sponsor’’).     the Freight Futures market as positions
        Pursuant to Section 19(b)(1) 1 of the                The Sponsor is registered with the          mature.
     Securities Exchange Act of 1934 (the                    Commodity Futures Trading                       The Benchmark Portfolio will
     ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                  Commission (‘‘CFTC’’) as a commodity        maintain long-only positions in Freight
     notice is hereby given that, on                         pool operator (‘‘CPO’’) and is a member     Futures. The Benchmark Portfolio will
     September 8, 2017, NYSE Arca, Inc. (the                 of the National Futures Association         hold a combination of Capesize,
     ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with               (‘‘NFA’’). Breakwave Advisors LLC           Panamax and Supramax Freight
     the Securities and Exchange                             (‘‘Breakwave’’) is registered as a          Futures. More specifically, the
     Commission (the ‘‘Commission’’) the                     commodity trading advisor with the          Benchmark Portfolio will hold 50%
     proposed rule change as described in                    CFTC and will serve as the Fund’s           exposure in Capesize Freight Futures
     Items I and II below, which Items have                  commodity trading advisor. ETFMG            contracts, 40% exposure in Panamax
     been substantially prepared by the self-                Financial LLC will be the Fund’s            Freight Futures contracts and 10%
     regulatory organization. The                            distributor (‘‘Distributor’’ or ‘‘Marketing exposure in Supramax Freight Futures
     Commission is publishing this notice to                 Agent’’). US Bancorp Fund Services LLC contracts. The Benchmark Portfolio will
     solicit comments on the proposed rule                   will be the Fund’s ‘‘Administrator’’ and not include and the Fund will not invest
     change from interested persons.                         ‘‘Transfer Agent’’.                         in swaps, non-cleared dry bulk freight
                                                                                                         forwards or other over-the-counter
     I. Self-Regulatory Organization’s                       The Fund’s Investment Objective and
     Statement of the Terms of Substance of                  Strategy                                       6 The Baltic Exchange, which is a wholly owned

     the Proposed Rule Change                                   According to the Registration
                                                                                                         subsidiary of the Singapore Exchange Ltd (‘‘SGX’’),
                                                                                                         is a membership and an independent source of
        The Exchange proposes to list and                    Statement, the Fund’s investment            maritime market information for the trading and
     trade the shares of Breakwave Dry Bulk                  objective will be to provide investors      settlement of physical and derivative shipping
     Shipping ETF under NYSE Arca Rule                       with exposure to the daily change in the contracts. According to the Baltic Exchange, this
                                                                                                         information is used by shipbrokers, owners and
     8.200–E, Commentary .02 (‘‘Trust Issued                 price of dry bulk freight futures, before   operators, traders, financiers and charterers as a
     Receipts’’). The proposed change is                     expenses and liabilities of the Fund, by    reliable and independent view of the dry and tanker
     available on the Exchange’s Web site at                 tracking the performance of a portfolio     markets.
                                                                                                            7 The Reference Indexes are published by the
     www.nyse.com, at the principal office of                (the ‘‘Benchmark Portfolio’’) consisting
                                                                                                         Baltic Exchange’s subsidiary company, Baltic
     the Exchange, and at the Commission’s                   of a three-month strip of the nearest       Exchange Information Services Ltd (‘‘Baltic’’),
     Public Reference Room.                                  calendar quarter of futures contracts on    which publishes a wide range of market reports,
                                                             specified indexes (each a ‘‘Reference       fixture lists and market rate indicators on a daily
     II. Self-Regulatory Organization’s                      Index’’) that measure rates for shipping    and (in some cases) weekly basis. The Baltic
     Statement of the Purpose of, and                        dry bulk freight (‘‘Freight Futures’’).     indices, which include the Reference Indexes, are
     Statutory Basis for, the Proposed Rule                                                              an assessment of the price of moving the major raw
                                                             Each Reference Index is published daily materials by sea. The indices are based on
     Change                                                                                                          assessments of the cost of transporting various bulk
       In its filing with the Commission, the                  4 Commentary     .02 to NYSE Arca Rule 8.200–E        cargoes, both wet (e.g., crude oil and oil products)
                                                             applies to Trust Issued Receipts that invest in         and dry (e.g., coal and iron ore), made by leading
     self-regulatory organization included                                                                           shipbroking houses located around the world on a
                                                             ‘‘Financial Instruments.’’ The term ‘‘Financial
     statements concerning the purpose of,                   Instruments,’’ as defined in Commentary .02(b)(4) to    per tonne and daily hire basis. The information is
     and basis for, the proposed rule change                 NYSE Arca Rule 8.200–E, means any combination           collated and published by the Baltic Exchange.
     and discussed any comments it received                  of investments, including cash; securities; options     Procedures relating to administration of the Baltic
                                                             on securities and indices; futures contracts; options   indices are set forth in ‘‘The Baltic Exchange, Guide
     on the proposed rule change. The text                   on futures contracts; forward contracts; equity caps,   to Market Benchmarks’’ November 2016 (the
     of those statements may be examined at                  collars, and floors; and swap agreements.               ‘‘Guide’’), including production methods,
     the places specified in Item IV below.                     5 On June 2, 2017, the Trust filed with the          calculation, confidentiality and transparency,
     The Exchange has prepared summaries,                    Commission a registration statement on Form S–1         duties of panelists, code of conduct, audits and
                                                             under the Securities Act of 1933 (15 U.S.C. 77a)        quality control. According to the Guide, these
       29 17
                                                             (‘‘Securities Act’’) relating to the Fund (File No.     procedures are in compliance with the ‘‘Principles
             CFR 200.30–3(a)(12).                            333–218453) (the ‘‘Registration Statement’’). The       for Financial Benchmarks’’ issued by the
       1 15 U.S.C.78s(b)(1).                                 description of the operation of the Trust and the       International Organization of Securities
       2 15 U.S.C. 78a.
                                                             Fund herein is based, in part, on the Registration      Commissioners (‘‘IOSCO’’). The Guide is available
       3 17 CFR 240.19b–4.                                   Statement.                                              at www.balticexchange.com.



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                               Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices                                        45343

     derivative instruments that are not                     and October, November and December                    in response to creation and redemption
     cleared through exchanges or clearing                   (Q4). The Benchmark Portfolio will                    orders or otherwise as required.
     houses. The Fund may hold exchange-                     initially consist of an equal number of
                                                                                                                   Overview of the Dry Bulk Freight
     traded options on Freight Futures. The                  Freight Futures in each of the three
                                                                                                                   Industry
     Benchmark Portfolio is maintained by                    months comprising the nearby calendar
     Breakwave and will be rebalanced                        quarter at the beginning of such quarter.                As stated in the Registration
     annually.                                                  Throughout the quarter, the Fund will              Statement, the following is a brief
        When establishing positions in                       attempt to roll positions in the nearby               introduction of the global dry bulk
     Freight Futures, the Fund will be                       calendar quarter, on a pro rata basis. For            freight industry. The data presented
     required to deposit initial margin with                 example, if the Fund was currently                    below is derived from information
     a value of approximately 10% to 40% of                  holding the Q1 calendar quarter                       released from various third-party
     the notional value of each Freight                      comprising the January, February and                  sources. The third-party sources from
     Futures position at the time it is                      March monthly contracts, each week in                 which certain of the information
     established. These margin requirements                  the month of February, the Fund will                  presented below include the United
     are established and subject to change                   attempt to purchase Q2 contracts in an                Nations Conference on Trade and
     from time to time by the relevant                       amount equal to approximately one                     Development, the Baltic and
     exchanges, clearing houses or the                       quarter of the expiring February                      International Maritime Council,
     Fund’s futures commission merchant                      positions. As a result, by the end of                 Bloomberg and others. Dry bulk
     (‘‘FCM’’). On a daily basis, the Fund                   February, the Fund would have rolled                  shipping is a 150-plus year-old industry
     will be obligated to pay, or entitled to                the February position to Q2 contracts,                focusing on the transportation of dry
     receive, variation margin in an amount                  leaving the Fund with March and Q2                    bulk commodities using oceangoing
     equal to the change in the daily                        contracts. At the end of March, the Fund              vessels named dry bulk carriers. Dry
     settlement level of its Freight Futures                 will have completed the roll and will                 bulk carriers are ships that have cargo
     positions. Any assets not required to be                then hold only Q2 exposure comprising                 loaded directly into the ship’s storage
     posted as margin with the FCM will be                   April, May and June monthly contracts.                holds. The cargos transported are dry
     held at the Fund’s custodian in cash or                 Since Freight Futures contracts are cash              commodities that do not need to be
     cash equivalents.8                                      settled, the Fund need not sell out of                carried in packaged form. Dry
        The Fund will seek to achieve its                    existing contracts. Rather, it will hold              commodity cargos (mainly iron ore, coal
     objective by purchasing Freight Futures                 such contracts to expiration and apply                and grains) are homogenous and are
     that are cleared through major                          the above methodology in order acquire                loaded with bucket cranes, conveyors or
     exchanges (see description of Freight                   the nearby calendar contract.                         pumps. Crude oil and refined products,
     Futures below). The Fund will place                        The Benchmark Portfolio will be                    while shipped in bulk, are wet cargos
     purchase orders for Freight Futures with                rebalanced annually. The Benchmark                    and are transported on tanker vessels,
     an execution broker. The broker will                    Portfolio’s initial allocation will be                rather than dry bulk carriers. Dry bulk
     identify a selling counterparty and,                    approximately 50% Capesize Freight                    carriers have an average useful life of
     simultaneously with the completion of                   Futures contracts, 40% Panamax Freight                approximately 25 years and are
     the transaction, will submit the block                  Futures contracts and 10% Supramax                    measured on size or capacity in dead
     traded Freight Futures to the relevant                  Freight Futures contracts. The above                  weight tons (‘‘DWT’’).
     exchange or clearing house for clearing,                allocation will be based on contract                  Dry Bulk Carriers Come in Various Sizes
     thereby completing and creating a                       value, not number of lots. Given each                   Capesizes (100,000+ DWT) are the
     cleared futures transaction. If the                     asset’s individual price movements                    largest of the dry bulk asset classes.
     exchange or clearing house does not                     during the year, such percentages might               Capesizes primarily transport iron ore
     accept the transaction for any reason,                  deviate from the targeted allocation.                 and coal. Traditional Capesize routes
     the transaction will be considered null                    During the month of December of                    are from Australia to Asia, and from
     and void and of no legal effect. The                    each year, the Fund will rebalance its                Brazil to Europe and Asia. There are
     Fund’s investments in Freight Futures                   portfolio in order to bring the allocation            about 1,650 Capesizes worldwide. The
     will be cleared by Nasdaq OMX-                          of assets back to the desirable levels.               Capesize fleet is about 40% of the dry
     Stockholm AB, Chicago Mercantile                        During this period, the Fund would                    bulk fleet by DWT capacity.
     Exchange (‘‘CME’’), ICE Futures U.S.,                   purchase or sell Freight Futures to                     Panamaxes (65,000–100,000 DWT)
     SGX and/or the European Energy                          achieve its targeted allocation.                      primarily transport coal, grain and iron
     Exchange (‘‘EEX’’).9                                       The Sponsor anticipates that the                   ore. The Panamax is the largest vessel
        The Benchmark Portfolio will initially               Fund’s Freight Futures positions will be              class that can transit the (old) Panama
     consist of positions in the three-month                 held to expiration and settle in cash                 Canal. There are about 2,500 Panamaxes
     strip of the nearest calendar quarter of                against the respective Reference Index                worldwide representing 24% of the
     Freight Futures and roll them constantly                as published by the Baltic Exchange.                  global fleet by capacity.
     to the next calendar quarter. The four-                 However, positions may be closed out to                 Handymaxes (40,000–65,000 DWT)
     calendar quarters are January, February,                meet orders for redemption of baskets,                are the work horse of the industry,
     and March (Q1), April, May, and June                    in which case the proceeds from the                   carrying the whole spectrum of dry bulk
     (Q2), July, August, and September (Q3),                 closed positions will not be reinvested.              commodities: Grain, coal, iron ore, and
                                                                The Fund’s portfolio will be traded                minor bulks. A sub-category of
       8 The Fund will hold cash or cash equivalents,
                                                             with a view to reflecting the                         Handymaxes are vessels with capacities
     such as U.S. Treasuries or other high credit quality,
     short-term fixed-income or similar securities for       performance of Freight Futures, whether               of 50,000–65,000 that are called
     direct investment or as collateral for the U.S.         Freight Futures are rising, falling or flat           Supramaxes. There are 3,400
     Treasuries and for other liquidity purposes, and to     over any particular period. To maintain               Handymaxes worldwide representing
     meet redemptions that may be necessary on an            the correlation between the Fund and
     ongoing basis.
                                                                                                                   about 25% of the global fleet by DWT
       9 Nasdaq OMX-Stockholm AB, SGX, CME and ICE           the change in the Benchmark Portfolio,                capacity.
     Futures U.S. are members of the Intermarket             the Sponsor may adjust the Fund’s                       Handysizes (10,000–40,000 DWT)
     Surveillance Group (‘‘ISG’’). See note 16, infra.       portfolio of investments on a daily basis             bulkers typically transport grain, coal,


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     45344                    Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices

     and minor bulks. Handysize bulkers                      of the ship to transport a bulk                       The execution broker receives such
     tend to trade regionally. There are about               commodity. The most commonly used                     order and then attempts to match it with
     3,300 Handysize bulkers in the fleet, or                freight rate is the timecharter rate,                 a counterpart. Once there is a match and
     about 11% of the global fleet by DWT                    which is measured in U.S. Dollars per                 both parties confirm the transaction, the
     capacity.                                               day. Dry bulk timecharter rates have                  execution broker submits the
                                                             exhibited significant volatility in the               transaction details including trade
     Dry Bulk Vessel Supply                                  last 15 years. From 2003 to 2008, faster              specifics, counterparty details and
        According to the Registration                        growth rates in demand for dry bulk                   accounts to the relevant exchange for
     Statement, there are approximately                      ships was not matched by growth in                    clearing, thus completing a cleared
     10,500 dry bulk vessels worldwide with                  supply of ships and thus, charter rates               block futures transaction. The exchange
     a carrying capacity of roughly 790                      increased considerably, reaching their                will then require the relevant member or
     million DWT and an average age of                       highest point in 2008. Following the                  FCM to submit the necessary margin to
     approximately 8 years. Supply of dry                    global financial crisis, growth in supply             support the position similar to other
     bulk ships is dynamic.                                  of ships exceeded demand, leading to a                futures clearing and margin
        Factors impacting dry bulk supply                    considerable drop in charter rates. Over              requirements.
     include new orders, the scrapping of                    the last five years, rates have generally                Freight Futures are listed and cleared
     older vessels, new shipbuilding                         been weak compared to historical levels,              on the following exchanges: Nasdaq
     technologies, vessel congestion in ports,               as higher supply and relatively weak                  OMX-Stockholm AB, CME, ICE Futures
     closures of major waterways, including                  demand growth led to lower utilization                U.S., SGX, and EEX.
     canals, and wars and other geopolitical                 rates in the industry.                                   Freight Futures settle monthly over
     conflicts that can restrict access to                      A common industry measure of dry                   the arithmetic average of spot index
     vessels available for shipping dry bulk                 bulk rates is the Baltic Dry Index                    assessments in the contract month for
     freight.                                                (‘‘BDI’’). The BDI is an economic                     the relevant underlying product,
                                                             indicator issued daily by the Baltic                  rounded to one decimal place. The daily
     Demand for Dry Bulk Freight                                                                                   index publication, against which Freight
                                                             Exchange. The BDI provides an
        According to the Registration                        assessment of the price of moving the                 Futures settle, is published by the Baltic
     Statement, dry bulk demand has seen                     major raw materials by sea throughout                 Exchange.
     steady growth over the past two                         the world. Taking in 21 shipping routes                  Generally, Freight Futures trade from
     decades, as the Asian economies have                    measured on a timecharter basis, the                  approximately 12:00 a.m. Eastern Time
     exhibited robust demand for raw                         index covers Handysize, Supramax,                     (‘‘E.T.’’) to approximately 12:00 p.m.
     materials on the back of strong                         Panamax, and Capesize dry bulk carriers               E.T. The great majority of trading
     economic growth. Iron ore, the main                     carrying a range of commodities                       volume occurs during London business
     component of steel production, has been                 including coal, iron ore and grain. Each              hours, from approximately 3:00 a.m.
     the main driver of dry bulk freight                     individual asset class also has its own               E.T. time to approximately 12:00 p.m.
     demand growth. The higher demand for                    index (i.e., a Reference Index), which is             E.T. Some limited trading takes place
     such raw materials has led to increasing                also published daily by the Baltic                    during Asian business hours as well
     demand for dry bulk shipping, as the                    Exchange and reflects a weighted                      (12:00 a.m.–3:00 a.m. E.T.).
     regions that produce and consume raw                    average assessment of different                          Exchanges have a cutoff time of 1:00
     materials are located far apart.                        standardized routes around the world.                 p.m. E.T. for clearing the respective
        Demand for dry bulk freight is                          The BDI has reflected the volatility of            day’s trades (SGX clears Freight Futures
     generally measured in ton-miles, which                  charter rates over the last 15 years,                 from 7:00 p.m. E.T. to 3:00 a.m. E.T.).
     corresponds to one ton of freight carried               reaching its highest point on record in               The final closing prices for settlement
     one mile. Such measure takes into                       2008 at 11,793. In 2016, it reached its               are published daily around 1:30 p.m.
     consideration both the quantity of cargo                lowest point on record at 290. The                    E.T. Final cash settlement occurs the
     transport but also the distance between                 average price of the BDI in the 15 years              first business day following the expiry
     loading and offloading ports. Over the                  from 2001 to 2016, has been 2,567, and                day.
     last 10 years, dry bulk freight demand                  the median price has been 1,747. As of                   Freight Futures are quoted in U.S.
     growth for major commodities has                        March 31, 2017, the BDI stood at 1,200.               Dollars per day, with a minimum lot
     averaged approximately 6% per year. In                                                                        size of one. One lot represents one day
                                                             Freight Futures                                       of freight costs, as freight rates are
     2015, dry bulk freight demand growth
     for major commodities declined for the                     According to the Registration                      measured in U.S. Dollars per day. The
     first time in at least 15 years, while in               Statement, freight futures are financial              nominal value of a contract is simply
     2016, it is estimated to have increased                 futures contracts that allow ship                     the product of lots and Freight Futures
     by approximately 2%. Weaker iron ore                    owners, charterers and speculators to                 prices. There are Futures Contracts of
     and coal imports to China were the                      hedge against the volatility of freight               up to 72 consecutive months, starting
     main reasons for the below trend                        rates. The Freight Futures are built on               with the current month, available for
     growth.                                                 indices composed of baskets of routes                 trading for each vessel class.
        Factors impacting demand for                         for dry bulk freight, such as the                        Similar to other futures, Freight
     shipping dry bulk freight include global                Capesize 5TC Index, Panamax 4TC                       Futures are subject to margin
     economic growth, demand for iron ore,                   Index and Supramax 6TC Index. Freight                 requirements by the relevant exchanges.
     demand for metallurgical and thermal                    Futures are financial instruments that                The Sponsor anticipates that
     coal, demand for grains, government                     trade off-exchange but then are cleared               approximately 10% to 40% of the
     regulations, taxes and tariffs, fuel prices,            through an exchange. Market                           Fund’s assets will be used as payment
     vessel speeds and new trade routes.                     participants communicate their buy or                 for or collateral for Freight Futures
                                                             sell orders through a network of                      contracts. In order to collateralize its
     Dry Bulk Freight Charter Rates                          execution brokers mainly through                      Freight Futures positions, the Fund will
       According to the Registration                         phone or instant messaging platforms                  hold such assets, from which it will post
     Statement, dry bulk freight ‘‘charter                   with specific trading instructions                    margin to its FCM in an amount equal
     rates’’ reflect the price paid for the use              related to price, size, and type of order.            to the margin required by the relevant


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                              Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices                                           45345

     exchanges, and transfer to its FCM any                  Indicative Fund Value                                 tighten the tracking between the market
     additional amounts that may be                             In order to provide updated                        price of the Fund’s Shares and the IFV
     separately required by the FCM.                         information relating to the Fund for use              and thus can be beneficial to all market
       According to the Registration                         by investors and market professionals,                participants.
     Statement, most of the daily trading                    an updated indicative fund value                      Creation and Redemption of Shares
     takes place over phones and instant                     (‘‘IFV’’) will be made available through                 According to the Registration
     messaging platforms.10 Trading screens                  on-line information services throughout               Statement, the Fund will create and
     also exist and some trading also                        the Exchange Core Trading Session                     redeem Shares from time to time in one
     happens through such screens. Brokers                   (normally 9:30 a.m. to 4:00 p.m., E.T.)               or more ‘‘Creation Baskets’’ or
     are required to report to the relevant                  on each trading day. The IFV will be                  ‘‘Redemption Baskets’’ (collectively, the
     exchanges each trade that takes place.                  calculated by using the prior day’s                   ‘‘Baskets’’). A Basket consists of 50,000
     Freight Futures liquidity has remained                  closing NAV per Share of the Fund as                  Shares. The creation and redemption of
     relatively constant, in lot terms, over the             a base and updating that value                        Baskets will only be made in exchange
     last five years with approximately 1.1                  throughout the trading day to reflect                 for delivery to the Fund or the
     million lots trading annually. Open                     changes in the most recently reported                 distribution by the Fund of the amount
     interest currently stands at                            trade price for the futures and/or                    of Treasuries and any cash represented
     approximately 290,000 lots across all                   options held by the Fund. The IFV                     by the Baskets being created or
     asset classes representing an estimated                 disseminated during NYSE Arca Core                    redeemed, the amount of which is based
     value of more than $3 billion. Of such                  Trading Session hours should not be                   on the combined NAV of the number of
     open interest, Capesize contracts                       viewed as an actual real time update of               Shares included in the Baskets being
     account for approximately 50%,                          the NAV, because the NAV will be                      created or redeemed determined as of
     Panamax for approximately 40% and                       calculated only once at the end of each               4:00 p.m. E.T. on the day the order to
     Handymax for approximately 10%.                         trading day based upon the relevant end               create or redeem Baskets is properly
     Major market participants in Freight                    of day values of the Fund’s investments.              received.
                                                                The IFV will be disseminated on a per                 ‘‘Authorized Participants’’ are the
     Futures market include: Commodity
                                                             Share basis every 15 seconds during                   only persons that may place orders to
     producers, commodity users,
                                                             regular NYSE Arca Core Trading                        create and redeem Baskets. Authorized
     commodity trading houses, ship                          Session hours of 9:30 a.m. E.T. to 4:00
     operators, major banks, investment                                                                            Participants must be (1) registered
                                                             p.m. E.T. The customary trading hours                 broker-dealers or other securities market
     funds and independent ship owners.                      of the Freight Futures trading are 3:00               participants, such as banks and other
     Calculating Net Asset Value (‘‘NAV’’)                   a.m. E.T. to 12:00 p.m. E.T. This means               financial institutions, that are not
                                                             that there is a gap in time at the end of             required to register as broker-dealers to
        The Fund’s NAV will be calculated by                 each day during which the Fund’s                      engage in securities transactions
     taking the current market value of its                  Shares will be traded on the NYSE Arca,               described below, and (2) Depository
     total assets, subtracting any liabilities;              but real-time trading prices for contracts            Trust Company (‘‘DTC’’) participants.
     and dividing that total by the total                    are not available. During such gaps in
     number of outstanding Shares.                           time the IFV will be calculated based on              Creation Procedures
        The Administrator will calculate the                 the end of day price of such contracts                   On any business day, an Authorized
     NAV of the Fund once each NYSE Arca                     from the Baltic Exchange’s immediately                Participant may place an order with the
     trading day. The NAV for a particular                   preceding trading session. In addition,               Transfer Agent to create one or more
     trading day will be released after 4:00                 other investments and U.S. Treasuries                 Baskets. For purposes of processing
     p.m. E.T. The Administrator will use the                held by the Fund will be valued by the                purchase and redemption orders, a
     Baltic Exchange closing price for the                   Administrator using rates and points                  ‘‘business day’’ means any day other
     Freight Futures, but will calculate or                  received from client-approved third                   than a day when any of the NYSE Arca,
     determine the value of all other Fund                   party vendors (such as Reuters and WM                 the Baltic Exchange or the New York
                                                             Company) and broker-dealer quotes.                    Stock Exchange is closed for regular
     investments using market quotations, if
                                                             These investments will not be included                trading. Purchase orders must be placed
     available, or other information
                                                             in the IFV.                                           by 1:00 p.m. E.T. or the close of the Core
     customarily used to determine the fair                     Dissemination of the IFV provides
     value of such investments as of the                                                                           Trading Session on NYSE Arca,
                                                             additional information that is not                    whichever is earlier. The day on which
     earlier of the close of the NYSE Arca                   otherwise available to the public and is
     Core Trading Session (normally 4:00                                                                           a valid purchase order is received in
                                                             useful to investors and market                        accordance with the terms of the
     p.m. E.T.). The information may include                 professionals in connection with the
     costs of funding, to the extent costs of                                                                      ‘‘Authorized Participant Agreement’’ is
                                                             trading of the Fund’s Shares on the                   referred to as the purchase order date.
     funding are not and would not be a                      NYSE Arca. Investors and market
     component of the other information                                                                            Purchase orders are irrevocable.
                                                             professionals are able throughout the
     being utilized. Third parties supplying                 trading day to compare the market price               Determination of Required Payment
     quotations or market data may include,                  of Fund Shares and the IFV. If the                       The total payment required to create
     without limitation, dealers in the                      market price of the Fund Shares                       each Creation Basket is the NAV of
     relevant markets, end-users of the                      diverges significantly from the IFV,                  50,000 Shares on the purchase order
     relevant product, information vendors,                  market professionals will have an                     date, but only if the required payment
     brokers and other sources of market                     incentive to execute arbitrage trades. For            is timely received. To calculate the
     information.                                            example, if the Fund’s Shares appears to              NAV, the Administrator will use the
                                                             be trading at a discount compared to the              Baltic Exchange settlement price
       10 Freight Futures are primarily traded through
                                                             IFV, a market professional could buy the              (typically determined after 2:00 p.m.
     broker members of the Forward Freight Agreement
     Brokers Association (‘‘FFABA’’), such as Clarkson’s
                                                             Fund’s Shares on the NYSE Arca and                    E.T.) for the Freight Futures. Because
     Securities, Simpson Spence Young, Freight Investor      take the opposite position in Freight                 orders to purchase Baskets must be
     Services, GFI Group, BRS Group and ICAP.                Futures. Such arbitrage trades can                    placed no later than 1:00 p.m., E.T., but


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     45346                    Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices

     the total payment required to create a                  not know the total amount of the                      daily holdings of the Benchmark
     Basket typically will not be determined                 redemption proceeds at the time they                  Portfolio and the Fund will be available
     until after 2:00 p.m., E.T., on the date                submit an irrevocable redemption order.               on the Fund’s Web site before 9:30 a.m.
     the purchase order is received,                           The redemption proceeds due from                    E.T. each day. The Web site disclosure
     Authorized Participants will not know                   the Fund will be delivered to the                     of portfolio holdings will be made daily
     the total amount of the payment                         Authorized Participant at 1:00 p.m.,                  and will include, as applicable, (i) the
     required to create a Basket at the time                 E.T., on the next business day                        composite value of the total portfolio,
     they submit an irrevocable purchase                     immediately following the redemption                  (ii) the quantity and type of each
     order.                                                  order date if, by such time, the Fund’s               holding (including the ticker symbol,
                                                             DTC account has been credited with the                maturity date or other identifier, if any)
     Delivery of Required Payment                            Baskets to be redeemed.                               and other descriptive information
       An Authorized Participant who places                                                                        including, in the case of an option, its
     a purchase order shall transfer to the                  Availability of Information
                                                                                                                   strike price, (iii) the value of each
     Administrator the required amount of                       The NAV for the Fund’s Shares will                 Freight Futures (in U.S. dollars), (iv) the
     Freight Futures, U.S. Treasuries and/or                 be disseminated daily to all market                   type (including maturity, ticker symbol,
     cash, or a combination of them, by the                  participants at the same time. The                    or other identifier) and value of each
     end of the next business day following                  intraday, closing prices, and settlement              Treasury security and cash equivalent,
     the purchase order date. Upon receipt of                prices of the Freight Futures will be                 and (v) the amount of cash held in the
     the deposit amount, the Administrator                   readily available from the applicable                 Fund’s portfolio. The Fund’s Web site
     will direct DTC to credit the number of                 futures exchange Web sites, automated                 will be publicly accessible at no charge.
     Baskets ordered to the Authorized                       quotation systems, published or other                    The daily closing Benchmark
     Participant’s DTC account on the next                   public sources, or major market data                  Portfolio level and the percentage
     business day following the purchase                     vendors.                                              change in the daily closing level for the
     order date.                                                Complete real-time data for Freight                Benchmark Portfolio will be publicly
                                                             Futures is available by subscription                  available from one or more major market
     Redemption Procedures                                   through on-line information services.                 data vendors. The intraday value of the
        According to the Registration                        Quotation and last-sale information                   Benchmark Portfolio, updated every 15
     Statement, the procedures by which an                   regarding the Shares will be                          seconds, will also be available through
     Authorized Participant can redeem one                   disseminated through the facilities of                major market data vendors.
     or more Baskets will mirror the                         the Consolidated Tape Association                        This Web site disclosure of the
     procedures for the creation of Baskets.                 (‘‘CTA’’). The IFV will be available                  Benchmark Portfolio’s and the Fund’s
     On any business day, an Authorized                      through on-line information services.                 daily holdings will occur at
     Participant may place an order with the                 The Freight Futures trading prices will               approximately the same time as the
     Transfer Agent, and accepted by the                     be disseminated by one or more major                  disclosure by the Trust of the daily
     Distributor, to redeem one or more                      market data vendors during the NYSE                   holdings to Authorized Participants so
     Baskets. Redemption orders must be                      Arca Core Trading Session of 9:30 a.m.                that all market participants are provided
     placed by 1:00 p.m. E.T. or the close of                to 4:00 p.m. E.T. Nasdaq OMX-                         daily holdings information at
     the Core Trading Session on the NYSE                    Stockholm AB, SGX, CME, ICE Futures                   approximately the same time. Therefore,
     Arca, whichever is earlier. A                           US and EEX provide on a daily basis,                  the same holdings information will be
     redemption order so received will be                    transaction volumes, transaction prices,              provided on the public Web site as well
     effective on the date it is received in                 trade time, and open interest on their                as in electronic files provided to
     satisfactory form in accordance with the                respective Web sites. In addition,                    Authorized Participants. Accordingly,
     terms of the Authorized Participant                     historical data also exists for volumes               each investor will have access to the
     Agreement. The day on which the                         and open interest. Daily settlement                   current daily holdings of the Fund
     Marketing Agent receives a valid                        prices and historical settlement prices               through the Fund’s Web site.
     redemption order is the redemption                      are available through a subscription
                                                             service to the Baltic Exchange, which                 Trading Halts
     order date. Redemption orders are
     irrevocable. By placing a redemption                    maintains the licensing rights of                       With respect to trading halts, the
     order, an Authorized Participant agrees                 relevant freight data. However, the                   Exchange may consider all relevant
     to deliver the baskets to be redeemed                   exchanges provide the daily settlement                factors in exercising its discretion to
     through DTC’s book-entry system to the                  price change of Freight Futures on their              halt or suspend trading in the Shares of
     Fund not later than 1:00 p.m., E.T., on                 respective Web sites. Certain Freight                 the Fund.11 Trading in Shares of the
     the next business day immediately                       Futures brokers provide real time                     Fund will be halted if the circuit breaker
     following the redemption order date.                    pricing information to the general                    parameters in NYSE Arca Rule 7.12–E
                                                             public either through their Web sites or              have been reached. Trading also may be
     Determination of Redemption Proceeds                    through data vendors such as Bloomberg                halted because of market conditions or
       The redemption proceeds from the                      or Reuters. Most Freight Futures brokers              for reasons that, in the view of the
     Fund will consist of a cash redemption                  provide, upon request, individual                     Exchange, make trading in the Shares of
     amount equal to the NAV of the number                   electronic screens that market                        the Fund inadvisable.
     of Baskets requested in the Authorized                  participants can use to transact, place                 The Exchange may halt trading during
     Participant’s redemption order on the                   orders or only monitor Freight Futures                the day in which an interruption to the
     redemption order date.                                  market price levels.                                  dissemination of the IFV or the value of
       Because orders to redeem Baskets                         In addition, the Fund’s Web site,                  the Benchmark Portfolio occurs. If the
     must be placed no later than 1:00 p.m.,                 www.drybulketf.com, will display the                  interruption to the dissemination of the
     E.T., but the total amount of redemption                applicable end of day closing NAV. The                IFV, or the value of the Benchmark
     proceeds typically will not be                          Freight Futures currently constituting                Portfolio persists past the trading day in
     determined until after 2:00 p.m., E.T.,                 the Benchmark Portfolio, as well as the               which it occurred, the Exchange will
     on the date the redemption order is                     daily holdings of the Fund will be
     received, Authorized Participants will                  available on the Fund’s Web site. The                   11 See   NYSE Arca Rule 7.12–E.



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                              Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices                                           45347

     halt trading no later than the beginning                trading sessions and to deter and detect              commence delisting procedures under
     of the trading day following the                        violations of Exchange rules and federal              NYSE Arca Rule 5.5–E(m).
     interruption. In addition, if the                       securities laws applicable to trading on
                                                                                                                   Information Bulletin
     Exchange becomes aware that the NAV                     the Exchange.
     with respect to the Shares is not                          The surveillances referred to above                   Prior to the commencement of
     disseminated to all market participants                 generally focus on detecting securities               trading, the Exchange will inform its
     at the same time, it will halt trading in               trading outside their normal patterns,                ETP Holders in an Information Bulletin
     the Shares until such time as the NAV                   which could be indicative of                          of the special characteristics and risks
     is available to all market participants.                manipulative or other violative activity.             associated with trading the Shares.
                                                             When such situations are detected,                    Specifically, the Information Bulletin
     Trading Rules                                           surveillance analysis follows and                     will discuss the following: (1) The risks
        The Exchange deems the Shares to be                  investigations are opened, where                      involved in trading the Shares during
     equity securities, thus rendering trading               appropriate, to review the behavior of                the Early and Late Trading Sessions
     in the Shares subject to the Exchange’s                 all relevant parties for all relevant                 when an updated IFV will not be
     existing rules governing the trading of                 trading violations.                                   calculated or publicly disseminated; (2)
     equity securities. Shares will trade on                    The Exchange or FINRA, on behalf of                the procedures for purchases and
     the NYSE Arca Marketplace from 4 a.m.                   the Exchange, or both, will                           redemptions of Shares in Creation
     to 8 p.m. E.T. in accordance with NYSE                  communicate as needed regarding                       Baskets and Redemption Baskets (and
     Arca Rule 7.34–E (Early, Core, and Late                 trading in the Shares and Freight                     that Shares are not individually
     Trading Sessions). The Exchange has                     Futures with other markets and other                  redeemable); (3) NYSE Arca Rule 9.2–
     appropriate rules to facilitate                         entities that are members of the ISG, and             E(a), which imposes a duty of due
     transactions in the Shares during all                   the Exchange or FINRA, on behalf of the               diligence on its ETP Holders to learn the
     trading sessions. As provided in NYSE                   Exchange, or both, may obtain trading                 essential facts relating to every customer
     Arca Rule 7.6–E, the minimum price                      information regarding trading in the                  prior to trading the Shares; (4) how
     variation (‘‘MPV’’) for quoting and entry               Shares and Freight Futures from such                  information regarding the IFV is
     of orders in equity securities traded on                markets and other entities. In addition,              disseminated; (5) how information
     the NYSE Arca Marketplace is $0.01,                     the Exchange may obtain information                   regarding portfolio holdings is
     with the exception of securities that are               regarding trading in the Shares and                   disseminated; (6) the requirement that
     priced less than $1.00 for which the                    Freight Futures from markets and other                ETP Holders deliver a prospectus to
     MPV for order entry is $0.0001.                         entities that are members of ISG or with              investors purchasing newly issued
        The Shares will conform to the initial               which the Exchange has in place a                     Shares prior to or concurrently with the
     and continued listing criteria under                    comprehensive surveillance sharing                    confirmation of a transaction; and (7)
     NYSE Arca Rule 8.200–E. The trading of                  agreement (‘‘CSSA’’).14                               trading information.
     the Shares will be subject to NYSE Arca                    Not more than 10% of the net assets                   In addition, the Information Bulletin
     Rule 8.200–E, Commentary .02(e),                        of the Fund in the aggregate invested in              will advise ETP Holders, prior to the
     which sets forth certain restrictions on                Freight Futures shall consist of Freight              commencement of trading, of the
     Equity Trading Permit (‘‘ETP’’) Holders                 Futures whose principal market is not a               prospectus delivery requirements
     acting as registered Market Makers in                   member of the ISG or is a market with                 applicable to the Fund. The Exchange
     Trust Issued Receipts to facilitate                     which the Exchange does not have a                    notes that investors purchasing Shares
     surveillance. The Exchange represents                   CSSA.                                                 directly from the Fund will receive a
     that, for initial and/or continued listing,                In addition, the Exchange also has a               prospectus. ETP Holders purchasing
     the Funds will be in compliance with                    general policy prohibiting the                        Shares from the Fund for resale to
     Rule 10A–312 under the Act, as                          distribution of material, non-public                  investors will deliver a prospectus to
     provided by NYSE Arca Rule 5.3–E. A                     information by its employees.                         such investors. The Information Bulletin
     minimum of 100,000 Shares will be                          All statements and representations                 will also discuss any exemptive, no-
     outstanding at the commencement of                      made in this filing regarding (a) the                 action, and interpretive relief granted by
     trading on the Exchange.                                description of the portfolios, (b)                    the Commission from any rules under
                                                             limitations on portfolio holdings or                  the Act. In addition, the Information
     Surveillance                                            reference assets, or (c) applicability of             Bulletin will reference that the Fund is
        The Exchange represents that trading                 Exchange listing rules specified in this              subject to various fees and expenses
     in the Shares will be subject to the                    filing shall constitute continued listing             described in the Registration Statement.
     existing trading surveillances                          requirements for listing the Shares on                The Information Bulletin will also
     administered by the Exchange, as well                   the Exchange.                                         reference that the CFTC has regulatory
     as cross-market surveillances                              The issuer has represented to the                  jurisdiction over the trading of Freight
     administered by the Financial Industry                  Exchange that it will advise the                      Futures traded on U.S. markets.
     Regulatory Authority (‘‘FINRA’’) on                     Exchange of any failure by the Fund to                   The Information Bulletin will also
     behalf of the Exchange, which are                       comply with the continued listing                     disclose the trading hours of the Shares
     designed to detect violations of                        requirements, and, pursuant to its                    and that the NAV for the Shares will be
     Exchange rules and applicable federal                   obligations under Section 19(g)(1) of the             calculated after 4:00 p.m. E.T. each
     securities laws.13 The Exchange                         Act, the Exchange will monitor for                    trading day. The Information Bulletin
     represents that these procedures are                    compliance with the continued listing                 will disclose that information about the
     adequate to properly monitor Exchange                   requirements. If the Fund is not in                   Shares will be publicly available on the
     trading of the Shares of the Funds in all               compliance with the applicable listing                Fund’s Web site.
                                                             requirements, the Exchange will                          Prior to the commencement of
       12 17 CFR 240.10A–3.                                                                                        trading, the Exchange will inform its
       13 FINRA   conducts cross-market surveillances on       14 For a list of the current members of ISG, see
                                                                                                                   ETP Holders of the suitability
     behalf of the Exchange pursuant to a regulatory         www.isgportal.org. The Exchange notes that not all
     services agreement. The Exchange is responsible for     components of the Funds may trade on markets that
                                                                                                                   requirements of NYSE Arca Rule 9.2–
     FINRA’s performance under this regulatory services      are members of ISG or with which the Exchange has     E(a) in an Information Bulletin.
     agreement.                                              in place a CSSA.                                      Specifically, ETP Holders will be


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     45348                         Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices

     reminded in the Information Bulletin                       Exchange has in place a CSSA.16 Not                   trading the Shares. Trading in Shares of
     that, in recommending transactions in                      more than 10% of the net assets of the                the Fund will be halted if the circuit
     the Shares, they must have a reasonable                    Fund in the aggregate invested in                     breaker parameters in NYSE Arca Rule
     basis to believe that (1) the                              Freight Futures shall consist of Freight              7.12–E have been reached or because of
     recommendation is suitable for a                           Futures whose principal market is not a               market conditions or for reasons that, in
     customer given reasonable inquiry                          member of the ISG or is a market with                 the view of the Exchange, make trading
     concerning the customer’s investment                       which the Exchange does not have a                    in the Shares inadvisable.
     objectives, financial situation, needs,                    CSSA. The Exchange will make                             The proposed rule change is designed
     and any other information known by                         available on its Web site daily trading               to perfect the mechanism of a free and
     such ETP Holder, and (2) the customer                      volume of each of the Shares, closing                 open market and, in general, to protect
     can evaluate the special characteristics,                  prices of such Shares, and number of                  investors and the public interest in that
     and is able to bear the financial risks, of                Shares outstanding. The intraday,                     it will facilitate the listing and trading
     an investment in the Shares. In                            closing prices, and settlement prices of              of Trust Issued Receipts based on
     connection with the suitability                            Freight Futures will be readily available             Freight Futures that will enhance
     obligation, the Information Bulletin will                  from the Baltic Exchange Web site,                    competition among market participants,
     also provide that ETP Holders must                         automated quotation systems, published                to the benefit of investors and the
     make reasonable efforts to obtain the                      or other public sources, or on-line                   marketplace. As noted above, the
     following information: (1) The                             information services.                                 Exchange has in place surveillance
     customer’s financial status; (2) the                          Complete real-time data for the                    procedures that are adequate to properly
     customer’s tax status; (3) the customer’s                  Freight Futures is available by                       monitor trading in the Shares in all
     investment objectives; and (4) such                        subscription from on-line information                 trading sessions and to deter and detect
     other information used or considered to                    services. Quotation and last-sale                     violations of Exchange rules and
     be reasonable by such ETP Holder or                        information regarding the Shares will be              applicable federal securities laws.
     registered representative in making                        disseminated through the facilities of
     recommendations to the customer.                           the CTA. The IFV will be available                    B. Self-Regulatory Organization’s
                                                                through on-line information services.                 Statement on Burden on Competition
     2. Statutory Basis                                         The Freight Futures trading prices will                 The Exchange does not believe that
        The basis under the Act for this                        be disseminated by one or more major                  the proposed rule change will impose
     proposed rule change is the requirement                    market data vendors every 15 seconds                  any burden on competition that is not
     under Section 6(b)(5) 15 that an                           during the NYSE Arca Core Trading                     necessary or appropriate in furtherance
     exchange have rules that are designed to                   Session of 9:30 a.m. to 4:00 p.m. E.T.                of the purpose of the Act. The Exchange
     prevent fraudulent and manipulative                        Nasdaq OMX-Stockholm AB, SGX,                         notes that the proposed rule change will
     acts and practices, to promote just and                    CME, ICE Futures US and EEX provide                   facilitate the listing and trading of a new
     equitable principles of trade, to remove                   on a daily basis, transaction volumes,                type of Trust Issued Receipts based on
     impediments to, and perfect the                            transaction prices, trade time, and open              Freight Futures and that will enhance
     mechanism of a free and open market                        interest on their respective Web sites. In            competition among market participants,
     and, in general, to protect investors and                  addition, the Fund’s Web site, will                   to the benefit of investors and the
     the public interest.                                       display the applicable end of day                     marketplace.
        The Exchange believes that the                          closing NAV. The daily holdings of the
     proposed rule change is designed to                        Fund will be disclosed on the Fund’s                  C. Self-Regulatory Organization’s
     prevent fraudulent and manipulative                        Web site before 9:30 a.m. E.T. each day.              Statement on Comments on the
     acts and practices in that the Shares will                 The daily holdings of the Fund will be                Proposed Rule Change Received From
     be listed and traded on the Exchange                       available on the Fund’s Web site before               Members, Participants, or Others
     pursuant to the initial and continued                      9:30 a.m. E.T. each day. The Fund’s                     No written comments were solicited
     listing criteria in NYSE Arca Rule                         Web site disclosure of portfolio holdings             or received with respect to the proposed
     8.200–E. The Exchange has in place                         will be made daily and will include, as               rule change.
     surveillance procedures that are                           applicable, (i) the composite value of
     adequate to properly monitor trading in                    the total portfolio, (ii) the quantity and            III. Date of Effectiveness of the
     the Shares of the Fund in all trading                      type of each holding (including the                   Proposed Rule Change and Timing for
     sessions and to deter and detect                           ticker symbol, maturity date or other                 Commission Action
     violations of Exchange rules and                           identifier, if any) and other descriptive                Within 45 days of the date of
     applicable federal securities laws. The                    information including, in the case of an              publication of this notice in the Federal
     Exchange or FINRA, on behalf of the                        option, its strike price, (iii) the value of          Register or within such longer period
     Exchange, or both, will communicate as                     each Freight Futures (in U.S. dollars),               up to 90 days (i) as the Commission may
     needed regarding trading in the Shares                     (iv) the type (including maturity, ticker             designate if it finds such longer period
     and Freight Futures with other markets                     symbol, or other identifier) and value of             to be appropriate and publishes its
     and other entities that are members of                     each Treasury security and cash                       reasons for so finding or (ii) as to which
     the ISG, and the Exchange or FINRA, on                     equivalent, and (v) the amount of cash                the self-regulatory organization
     behalf of the Exchange, or both, may                       held in the Fund’s portfolio.                         consents, the Commission will:
     obtain trading information regarding                          Moreover, prior to the commencement                   (A) By order approve or disapprove
     trading in the Shares and Freight                          of trading, the Exchange will inform its              the proposed rule change, or
     Futures from such markets and other                        Equity Trading Permit Holders in an                      (B) institute proceedings to determine
     entities. In addition, the Exchange may                    Information Bulletin of the special                   whether the proposed rule change
     obtain information regarding trading in                    characteristics and risks associated with             should be disapproved.
     the Shares and Freight Futures from
     markets and other entities that are                          16 For a list of the current members of ISG, see    IV. Solicitation of Comments
                                                                www.isgportal.org. The Exchange notes that not all      Interested persons are invited to
     members of ISG or with which the                           components of the funds may trade on markets that
                                                                are members of ISG or with which the Exchange has     submit written data, views, and
       15 15   U.S.C. 78f(b)(5).                                in place a CSSA                                       arguments concerning the foregoing,


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                                Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices                                                     45349

     including whether the proposed rule                       SMALL BUSINESS ADMINISTRATION                         SUMMARY:   This is a Notice of the
     change is consistent with the Act.                                                                              Presidential declaration of a major
                                                               [Disaster Declaration #15291 and #15292;
     Comments may be submitted by any of                       TEXAS Disaster Number TX–00488]
                                                                                                                     disaster for the Commonwealth of
     the following methods:                                                                                          Puerto Rico (FEMA–4339–DR), dated
                                                               Presidential Declaration Amendment of                 09/20/2017.
     Electronic Comments
                                                               a Major Disaster for Public Assistance                  Incident: Hurricane Maria.
        • Use the Commission’s Internet                        Only for the State of Texas                             Incident Period: 09/17/2017 and
     comment form (http://www.sec.gov/                                                                               continuing.
     rules/sro.shtml); or                                      AGENCY: U.S. Small Business
        • Send an email to rule-comments@                      Administration.                                       DATES: Issued on 09/20/2017.
     sec.gov. Please include File Number SR–                                                                           Physical Loan Application Deadline
                                                               ACTION: Amendment 3.
     NYSEArca–2017–107 on the subject                                                                                Date: 11/20/2017.
     line.                                                     SUMMARY:   This is an amendment of the                  Economic Injury (EIDL) Loan
                                                               Presidential declaration of a major                   Application Deadline Date: 06/20/2018.
     Paper Comments                                            disaster for Public Assistance Only for               ADDRESSES: Submit completed loan
        • Send paper comments in triplicate                    the State of Texas (FEMA–4332–DR),                    applications to: U.S. Small Business
     to Secretary, Securities and Exchange                     dated 09/04/2017.                                     Administration, Processing and
     Commission, 100 F Street NE.,                                Incident: Hurricane Harvey.                        Disbursement Center, 14925 Kingsport
     Washington, DC 20549–1090.                                   Incident Period: 08/23/2017 through                Road, Fort Worth, TX 76155.
     All submissions should refer to File                      09/15/2017.                                           FOR FURTHER INFORMATION CONTACT: A.
     Number SR–NYSEArca–2017–107. This                         DATES: Issued on 09/19/2017.                          Escobar, Office of Disaster Assistance,
     file number should be included on the                        Physical Loan Application Deadline                 U.S. Small Business Administration,
     subject line if email is used. To help the                Date: 11/03/2017.                                     409 3rd Street SW., Suite 6050,
     Commission process and review your                           Economic Injury (EIDL) Loan                        Washington, DC 20416, (202) 205–6734.
     comments more efficiently, please use                     Application Deadline Date: 06/04/2018.
                                                                                                                     SUPPLEMENTARY INFORMATION: Notice is
     only one method. The Commission will                      ADDRESSES: Submit completed loan
                                                                                                                     hereby given that as a result of the
     post all comments on the Commission’s                     applications to: U.S. Small Business
                                                                                                                     President’s major disaster declaration on
     Internet Web site (http://www.sec.gov/                    Administration, Processing and
                                                                                                                     09/20/2017, applications for disaster
     rules/sro.shtml). Copies of the                           Disbursement Center, 14925 Kingsport
                                                                                                                     loans may be filed at the address listed
     submission, all subsequent                                Road, Fort Worth, TX 76155.
                                                                                                                     above or other locally announced
     amendments, all written statements                        FOR FURTHER INFORMATION CONTACT: A.                   locations.
     with respect to the proposed rule                         Escobar, Office of Disaster Assistance,                 The following areas have been
     change that are filed with the                            U.S. Small Business Administration,                   determined to be adversely affected by
     Commission, and all written                               409 3rd Street SW., Suite 6050,                       the disaster:
     communications relating to the                            Washington, DC 20416, (202) 205–6734.
                                                                                                                     Primary Municipalities (Physical
     proposed rule change between the                          SUPPLEMENTARY INFORMATION: The notice
                                                                                                                         Damage and Economic Injury
     Commission and any person, other than                     of the President’s major disaster                         Loans): Aguas Buenas, Aibonito,
     those that may be withheld from the                       declaration for Private Non-Profit                        Arecibo, Arroyo, Barceloneta,
     public in accordance with the                             organizations in the State of Texas,                      Barranquitas, Bayamon, Caguas,
     provisions of 5 U.S.C. 552, will be                       dated 09/04/2017, is hereby amended to                    Canovanas, Carolina, Catano,
     available for Web site viewing and                        include the following areas as adversely                  Cayey, Ceiba, Ciales, Cidra, Coamo,
     printing in the Commission’s Public                       affected by the disaster.                                 Comerio, Corozal, Culebra, Dorado,
     Reference Room, 100 F Street NE.,                         Primary Counties: Austin, Bastrop,                        Fajardo, Florida, Guayama,
     Washington, DC 20549, on official                              Burleson, Grimes, Lee, Madison,                      Guaynabo, Gurabo, Humacao,
     business days between the hours of                             Washington                                           Jayuya, Juana Diaz, Juncos, Las
     10:00 a.m. and 3:00 p.m. Copies of the                       All other information in the original                  Piedras, Loiza, Luquillo, Manati,
     filing also will be available for                         declaration remains unchanged.                            Maunabo, Morovis, Naguabo,
     inspection and copying at the principal                                                                             Naranjito, Orocovis, Patillas, Ponce,
     office of the Exchange. All comments                      (Catalog of Federal Domestic Assistance
                                                               Number 59008)                                             Rio Grande, Salinas, San Juan, San
     received will be posted without change;                                                                             Lorenzo, Santa Isabel, Toa Alta, Toa
     the Commission does not edit personal                     James E. Rivera,                                          Baja, Trujillo Alto, Utuado, Vega
     identifying information from                              Associate Administrator for Disaster                      Alta, Vega Baja, Vieques, Villalba,
     submissions. You should submit only                       Assistance.                                               Yabucoa
     information that you wish to make                         [FR Doc. 2017–20742 Filed 9–27–17; 8:45 am]           Contiguous Municipalities (Economic
     available publicly. All submissions                       BILLING CODE 8025–01–P                                    Injury Loans Only): Adjuntas,
     should refer to File Number SR–                                                                                     Hatillo, Lares, Penuelas
     NYSEArca–2017–107, and should be
     submitted on or before October 19,                                                                                The Interest Rates are:
                                                               SMALL BUSINESS ADMINISTRATION
     2017.
                                                               [Disaster Declaration #15322 and #15323;                                                          Percent
       For the Commission, by the Division of                  PUERTO RICO Disaster Number PR–00031]
     Trading and Markets, pursuant to delegated                                                                      For Physical Damage:
     authority.17                                              Presidential Declaration of a Major                     Homeowners with Credit Avail-
     Eduardo A. Aleman,                                        Disaster for the Commonwealth of                          able Elsewhere ......................     3.500
     Assistant Secretary.                                      Puerto Rico                                             Homeowners without Credit
                                                                                                                         Available Elsewhere ..............        1.750
     [FR Doc. 2017–20751 Filed 9–27–17; 8:45 am]
                                                               AGENCY: U.S. Small Business                             Businesses with Credit Avail-
     BILLING CODE 8011–01–P                                    Administration.                                           able Elsewhere ......................     6.610
                                                                                                                       Businesses     without       Credit
                                                               ACTION: Notice.
       17 17   CFR 200.30–3(a)(12).                                                                                      Available Elsewhere ..............         3.305



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Document Created: 2017-09-28 01:32:58
Document Modified: 2017-09-28 01:32:58
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 45342 

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