82_FR_9649 82 FR 9625 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Shares of the ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund Under Commentary .02 to NYSE Arca Equities Rule 8.200

82 FR 9625 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Shares of the ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund Under Commentary .02 to NYSE Arca Equities Rule 8.200

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 24 (February 7, 2017)

Page Range9625-9627
FR Document2017-02442

Federal Register, Volume 82 Issue 24 (Tuesday, February 7, 2017)
[Federal Register Volume 82, Number 24 (Tuesday, February 7, 2017)]
[Notices]
[Pages 9625-9627]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02442]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79914; File No. SR-NYSEArca-2016-120]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting 
Proceedings To Determine Whether To Approve or Disapprove a Proposed 
Rule Change, as Modified by Amendment No. 1, To List and Trade Shares 
of the ForceShares Daily 4X US Market Futures Long Fund and ForceShares 
Daily 4X US Market Futures Short Fund Under Commentary .02 to NYSE Arca 
Equities Rule 8.200

February 1, 2017.

I. Introduction

    On October 17, 2016, NYSE Arca, Inc. (``NYSE Arca'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to list and trade shares (``Shares'') of the 
ForceShares Daily 4X US Market Futures Long Fund (``Fund'' or ``Long 
Fund'') and ForceShares Daily 4X US Market Futures Short Fund (``Fund'' 
or ``Short Fund'' and, together with the Long Fund, the ``Funds'') 
under Commentary .02 to NYSE Arca Equities Rule 8.200. The proposed 
rule change was published for comment in the Federal Register on 
November 4, 2016.\3\ On December 14, 2016, pursuant to Section 19(b)(2) 
of the Act,\4\ the Commission designated a longer period within which 
to approve the proposed rule change, disapprove the proposed rule 
change, or institute proceedings to determine whether to disapprove the 
proposed rule change.\5\ On December 22, 2016, the Exchange filed 
Amendment No. 1 to the proposed rule change, which replaced and 
superseded the proposed rule change as originally filed.\6\ The 
Commission has received no comments on the proposed rule change. This 
order institutes proceedings under Section 19(b)(2)(B) of the Act \7\ 
to determine whether to approve or disapprove the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 79201 (October 31, 
2016), 81 FR 76977.
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 79550, 81 FR 92892 
(December 20, 2016). The Commission designated February 2, 2017, as 
the date by which it shall approve, disapprove, or institute 
proceedings to determine whether to disapprove the proposed rule 
change.
    \6\ In Amendment No. 1, the Exchange: (a) Clarified the 
permissible investments of the Funds; (b) added that a creation 
basket may not differ in size from a redemption basket, and that 
basket sizes may be between 10,000 and 100,000 Shares; (c) modified 
when purchase orders may be rejected, when the right of redemption 
may be suspended, and when the redemption settlement date may be 
postponed; and (d) made various technical changes. Amendment No. 1 
is available at: https://www.sec.gov/comments/sr-nysearca-2016-120/nysearca2016120-1442225-130027.pdf.
    \7\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

II. Exchange's Description of the Proposal, as Modified by Amendment 
No. 1

    The Exchange proposes to list and trade the Shares under Commentary 
.02 to NYSE Arca Equities Rule 8.200, which governs the listing and 
trading of Trust Issued Receipts on the Exchange. Each Fund is a 
commodity pool that is a series of the ForceShares Trust. ForceShares 
LLC will be the sponsor of the Funds (``Sponsor''). ALPS Distributors, 
Inc. will be the marketing agent for the Shares. U.S. Bank National 
Association will be the Funds' custodian (``Custodian'') and will hold 
the Funds' cash and cash equivalents. The Custodian will also be the 
registrar and transfer agent for the Shares.
    The Long Fund's primary investment objective is to seek daily 
investment

[[Page 9626]]

results, before fees and expenses, that correspond to approximately 
four times (400%) the daily performance, and the Short Fund's primary 
investment objective is to seek daily investment results, before fees 
and expenses, that correspond to approximately four times the inverse 
(-400%) of the daily performance, of the closing settlement price for 
lead month (i.e., the ``near month'' or next-to-expire) Standard & 
Poor's 500 Stock Price Index Futures contracts (``Big S&P Contracts'') 
that are traded on the Chicago Mercantile Exchange. Each Fund will not 
seek to achieve its primary investment objective over a period of time 
greater than a single day.
    Under normal market condition, each Fund will seek to achieve its 
primary investment objective by investing primarily in Big S&P 
Contracts such that daily changes in the Fund's net asset value 
(``NAV'') are expected to closely track the changes, in the case of the 
Long Fund, or the inverse of the changes, in the case of the Short 
Fund, in the closing settlement price of the lead month Big S&P 
Contracts (``Benchmark'') on a leveraged basis. Each Fund will also 
invest in E-MiniTM S&P 500[supreg] Futures contracts (``E-
Minis'' and, together with Big S&P Contracts, ``Primary S&P 
Interests'') to seek to achieve its primary investment objective where 
position limits prevent further purchases of Big S&P Contracts. Each 
Fund expects to apply approximately 10-25% of its portfolio toward 
obtaining exposure to futures contracts, all of which would be lead 
month or deferred month Primary S&P Interests. Each Fund may also 
invest in swap agreements (cleared and over-the-counter) referencing 
Primary S&P Interests or the S&P 500 Index, and over-the-counter 
forward contracts referencing Primary S&P Interests (``Other S&P 
Interests''). Each Fund may invest in Other S&P Interests in an amount 
up to 25% of its net assets.
    Each Fund may acquire or dispose of Stop Options on Primary S&P 
Interests in pursuing its secondary investment objective of recouping a 
small amount of a Fund's losses that may result from large movements in 
the Benchmark. Stop Options are expected to average less than 
approximately 5% of each Fund's portfolio.\8\
---------------------------------------------------------------------------

    \8\ Not more than 10% of the net assets of each Fund in the 
aggregate invested in futures contracts or exchange-traded options 
contracts will consist of futures contracts or exchange-traded 
options contracts whose principal market is not a member of the 
Intermarket Surveillance Group or is a market with which the 
Exchange does not have a comprehensive surveillance sharing 
agreement.
---------------------------------------------------------------------------

    On a day-to-day basis, each Fund will invest the remainder of its 
assets in money market funds, depository accounts with institutions 
with high quality credit ratings, or short-term debt instruments that 
have terms-to-maturity of less than 397 days and exhibit high quality 
credit profiles, including U.S. government securities and repurchase 
agreements (collectively, ``Cash Equivalents''). Cash Equivalents are 
expected to comprise approximately 70-85% of each Fund's portfolio.\9\
---------------------------------------------------------------------------

    \9\ For more information regarding the Funds and the Shares, see 
Amendment No. 1, supra note 6.
---------------------------------------------------------------------------

III. Proceedings To Determine Whether To Approve or Disapprove SR-
NYSEArca-2016-120 and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section 
19(b)(2)(B) of the Act \10\ to determine whether the proposed rule 
change should be approved or disapproved. Institution of such 
proceedings is appropriate at this time in view of the legal and policy 
issues raised by the proposed rule change. Institution of proceedings 
does not indicate that the Commission has reached any conclusions with 
respect to any of the issues involved. Rather, as described below, the 
Commission seeks and encourages interested persons to provide comments 
on the proposed rule change.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Act,\11\ the Commission is 
providing notice of the grounds for disapproval under consideration. 
The Commission is instituting proceedings to allow for additional 
analysis of the proposed rule change's consistency with Section 6(b)(5) 
of the Act, which requires, among other things, that the rules of a 
national securities exchange be ``designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade,'' and ``to protect investors and the public 
interest.'' \12\
---------------------------------------------------------------------------

    \11\ Id.
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written 
submissions of their views, data, and arguments with respect to the 
issues identified above, as well as any other concerns they may have 
with the proposal. In particular, the Commission invites the written 
views of interested persons concerning whether the proposal is 
consistent with Section 6(b)(5) or any other provision of the Act, or 
the rules and regulations thereunder. Although there do not appear to 
be any issues relevant to approval or disapproval that would be 
facilitated by an oral presentation of views, data, and arguments, the 
Commission will consider, pursuant to Rule 19b-4, any request for an 
opportunity to make an oral presentation.\13\
---------------------------------------------------------------------------

    \13\ Section 19(b)(2) of the Act, as amended by the Securities 
Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the 
Commission flexibility to determine what type of proceeding--either 
oral or notice and opportunity for written comments--is appropriate 
for consideration of a particular proposal by a self-regulatory 
organization. See Securities Acts Amendments of 1975, Senate Comm. 
on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st 
Sess. 30 (1975).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views, and 
arguments regarding whether the proposal should be approved or 
disapproved by February 28, 2017. Any person who wishes to file a 
rebuttal to any other person's submission must file that rebuttal by 
March 14, 2017. The Commission asks that commenters address the 
sufficiency of the Exchange's statements in support of the proposal, 
which are set forth in Amendment No. 1,\14\ in addition to any other 
comments they may wish to submit about the proposed rule change. The 
Commission notes that the proposal sets forth certain conditions 
relating to the creation and redemption of baskets of Shares. In 
particular, under the proposal, ``[t]he Sponsor may, in its discretion, 
suspend the right of redemption, or postpone the redemption settlement 
date with respect to a Fund . . . for such other period as the Sponsor 
determines to be necessary for the protection of a Fund's Shareholders. 
. . .'' \15\ What are commenters' views on the scope of this discretion 
with respect to redemptions? Is the discretion likely to have an effect 
on the arbitrage mechanisms and, if so, how?
---------------------------------------------------------------------------

    \14\ See supra note 6.
    \15\ See Amendment No. 1, supra note 6, at 21.
---------------------------------------------------------------------------

    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-2016-120 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange

[[Page 9627]]

Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2016-120. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEArca-2016-120 and should 
be submitted on or before February 28, 2017. Rebuttal comments should 
be submitted by March 14, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-02442 Filed 2-6-17; 8:45 am]
BILLING CODE 8011-01-P



                                                                          Federal Register / Vol. 82, No. 24 / Tuesday, February 7, 2017 / Notices                                                     9625

                                             notes that the proposed rule change will                change that are filed with the                        (‘‘Shares’’) of the ForceShares Daily 4X
                                             facilitate the listing and trading of                   Commission, and all written                           US Market Futures Long Fund (‘‘Fund’’
                                             additional types of Trust Issued                        communications relating to the                        or ‘‘Long Fund’’) and ForceShares Daily
                                             Receipts based on oil prices and that                   proposed rule change between the                      4X US Market Futures Short Fund
                                             will enhance competition among market                   Commission and any person, other than                 (‘‘Fund’’ or ‘‘Short Fund’’ and, together
                                             participants, to the benefit of investors               those that may be withheld from the                   with the Long Fund, the ‘‘Funds’’)
                                             and the marketplace.                                    public in accordance with the                         under Commentary .02 to NYSE Arca
                                                                                                     provisions of 5 U.S.C. 552, will be                   Equities Rule 8.200. The proposed rule
                                             C. Self-Regulatory Organization’s                       available for Web site viewing and                    change was published for comment in
                                             Statement on Comments on the                            printing in the Commission’s Public                   the Federal Register on November 4,
                                             Proposed Rule Change Received From                      Reference Room, 100 F Street NE.,                     2016.3 On December 14, 2016, pursuant
                                             Members, Participants, or Others                        Washington, DC 20549, on official                     to Section 19(b)(2) of the Act,4 the
                                               No written comments were solicited                    business days between the hours of                    Commission designated a longer period
                                             or received with respect to the proposed                10:00 a.m. and 3:00 p.m. Copies of such               within which to approve the proposed
                                             rule change.                                            filing will also be available for                     rule change, disapprove the proposed
                                                                                                     inspection and copying at the principal               rule change, or institute proceedings to
                                             III. Date of Effectiveness of the
                                                                                                     office of the Exchange. All comments                  determine whether to disapprove the
                                             Proposed Rule Change and Timing for
                                                                                                     received will be posted without change;               proposed rule change.5 On December
                                             Commission Action
                                                                                                     the Commission does not edit personal                 22, 2016, the Exchange filed
                                                Within 45 days of the date of                        identifying information from                          Amendment No. 1 to the proposed rule
                                             publication of this notice in the Federal               submissions. You should submit only                   change, which replaced and superseded
                                             Register or within such longer period                   information that you wish to make                     the proposed rule change as originally
                                             up to 90 days (i) as the Commission may                 available publicly. All submissions                   filed.6 The Commission has received no
                                             designate if it finds such longer period                should refer to File Number SR–                       comments on the proposed rule change.
                                             to be appropriate and publishes its                     NYSEArca–2017–07 and should be                        This order institutes proceedings under
                                             reasons for so finding or (ii) as to which              submitted on or before February 28,                   Section 19(b)(2)(B) of the Act 7 to
                                             the self-regulatory organization                        2017.                                                 determine whether to approve or
                                             consents, the Commission will: (a) By                     For the Commission, by the Division of              disapprove the proposed rule change.
                                             order approve or disapprove such                        Trading and Markets, pursuant to delegated
                                             proposed rule change; or (b) institute                                                                        II. Exchange’s Description of the
                                                                                                     authority.16                                          Proposal, as Modified by Amendment
                                             proceedings to determine whether the                    Eduardo A. Aleman,                                    No. 1
                                             proposed rule change should be                          Assistant Secretary.
                                             disapproved.                                                                                                     The Exchange proposes to list and
                                                                                                     [FR Doc. 2017–02445 Filed 2–6–17; 8:45 am]
                                                                                                                                                           trade the Shares under Commentary .02
                                             IV. Solicitation of Comments                            BILLING CODE 8011–01–P
                                                                                                                                                           to NYSE Arca Equities Rule 8.200,
                                               Interested persons are invited to                                                                           which governs the listing and trading of
                                             submit written data, views, and                                                                               Trust Issued Receipts on the Exchange.
                                                                                                     SECURITIES AND EXCHANGE
                                             arguments concerning the foregoing,                                                                           Each Fund is a commodity pool that is
                                                                                                     COMMISSION
                                             including whether the proposed rule                                                                           a series of the ForceShares Trust.
                                             change is consistent with the Act.                      [Release No. 34–79914; File No. SR–                   ForceShares LLC will be the sponsor of
                                             Comments may be submitted by any of                     NYSEArca–2016–120]                                    the Funds (‘‘Sponsor’’). ALPS
                                             the following methods:                                                                                        Distributors, Inc. will be the marketing
                                                                                                     Self-Regulatory Organizations; NYSE                   agent for the Shares. U.S. Bank National
                                             Electronic Comments                                     Arca, Inc.; Order Instituting                         Association will be the Funds’
                                               • Use the Commission’s Internet                       Proceedings To Determine Whether To                   custodian (‘‘Custodian’’) and will hold
                                             comment form (http://www.sec.gov/                       Approve or Disapprove a Proposed                      the Funds’ cash and cash equivalents.
                                             rules/sro.shtml); or                                    Rule Change, as Modified by                           The Custodian will also be the registrar
                                               • Send an email to rule4comments@                     Amendment No. 1, To List and Trade                    and transfer agent for the Shares.
                                             sec.gov. Please include File Number SR–                 Shares of the ForceShares Daily 4X US                    The Long Fund’s primary investment
                                             NYSEArca–2017–07 on the subject line.                   Market Futures Long Fund and                          objective is to seek daily investment
                                                                                                     ForceShares Daily 4X US Market
                                             Paper Comments                                          Futures Short Fund Under                                 3 See Securities Exchange Act Release No. 79201

                                                • Send paper comments in triplicate                  Commentary .02 to NYSE Arca Equities                  (October 31, 2016), 81 FR 76977.
                                                                                                                                                              4 15 U.S.C. 78s(b)(2).
                                             to Secretary, Securities and Exchange                   Rule 8.200
                                                                                                                                                              5 See Securities Exchange Act Release No. 79550,
                                             Commission, 100 F Street NE.,
                                                                                                     February 1, 2017.                                     81 FR 92892 (December 20, 2016). The Commission
                                             Washington, DC 20549–1090.                                                                                    designated February 2, 2017, as the date by which
                                             All submissions should refer to File                    I. Introduction                                       it shall approve, disapprove, or institute
                                             Number SR–NYSEArca–2017–07. This                                                                              proceedings to determine whether to disapprove the
                                                                                                        On October 17, 2016, NYSE Arca, Inc.               proposed rule change.
                                             file number should be included on the                   (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed                    6 In Amendment No. 1, the Exchange: (a) Clarified
                                             subject line if email is used. To help the              with the Securities and Exchange                      the permissible investments of the Funds; (b) added
                                             Commission process and review your                      Commission (‘‘Commission’’), pursuant                 that a creation basket may not differ in size from
                                             comments more efficiently, please use                                                                         a redemption basket, and that basket sizes may be
                                                                                                     to Section 19(b)(1) of the Securities                 between 10,000 and 100,000 Shares; (c) modified
Lhorne on DSK30JT082PROD with NOTICES




                                             only one method. The Commission will                    Exchange Act of 1934 (‘‘Act’’) 1 and Rule             when purchase orders may be rejected, when the
                                             post all comments on the Commission’s                   19b–4 thereunder,2 a proposed rule                    right of redemption may be suspended, and when
                                             Internet Web site (http://www.sec.gov/                  change to list and trade shares                       the redemption settlement date may be postponed;
                                             rules/sro.shtml). Copies of the                                                                               and (d) made various technical changes.
                                                                                                                                                           Amendment No. 1 is available at: https://
                                             submission, all subsequent                                16 17 CFR 200.30–3(a)(12).                          www.sec.gov/comments/sr-nysearca-2016-120/
                                             amendments, all written statements                        1 15 U.S.C. 78s(b)(1).                              nysearca2016120-1442225-130027.pdf.
                                             with respect to the proposed rule                         2 17 CFR 240.19b–4.                                    7 15 U.S.C. 78s(b)(2)(B).




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                                             9626                         Federal Register / Vol. 82, No. 24 / Tuesday, February 7, 2017 / Notices

                                             results, before fees and expenses, that                   On a day-to-day basis, each Fund will               6(b)(5) or any other provision of the Act,
                                             correspond to approximately four times                  invest the remainder of its assets in                 or the rules and regulations thereunder.
                                             (400%) the daily performance, and the                   money market funds, depository                        Although there do not appear to be any
                                             Short Fund’s primary investment                         accounts with institutions with high                  issues relevant to approval or
                                             objective is to seek daily investment                   quality credit ratings, or short-term debt            disapproval that would be facilitated by
                                             results, before fees and expenses, that                 instruments that have terms-to-maturity               an oral presentation of views, data, and
                                             correspond to approximately four times                  of less than 397 days and exhibit high                arguments, the Commission will
                                             the inverse (¥400%) of the daily                        quality credit profiles, including U.S.               consider, pursuant to Rule 19b–4, any
                                             performance, of the closing settlement                  government securities and repurchase                  request for an opportunity to make an
                                             price for lead month (i.e., the ‘‘near                  agreements (collectively, ‘‘Cash                      oral presentation.13
                                             month’’ or next-to-expire) Standard &                   Equivalents’’). Cash Equivalents are                     Interested persons are invited to
                                             Poor’s 500 Stock Price Index Futures                    expected to comprise approximately 70–                submit written data, views, and
                                             contracts (‘‘Big S&P Contracts’’) that are              85% of each Fund’s portfolio.9                        arguments regarding whether the
                                             traded on the Chicago Mercantile                                                                              proposal should be approved or
                                                                                                     III. Proceedings To Determine Whether
                                             Exchange. Each Fund will not seek to                                                                          disapproved by February 28, 2017. Any
                                                                                                     To Approve or Disapprove SR–
                                             achieve its primary investment objective                                                                      person who wishes to file a rebuttal to
                                                                                                     NYSEArca–2016–120 and Grounds for
                                             over a period of time greater than a                                                                          any other person’s submission must file
                                                                                                     Disapproval Under Consideration
                                             single day.                                                                                                   that rebuttal by March 14, 2017. The
                                                Under normal market condition, each                     The Commission is instituting                      Commission asks that commenters
                                             Fund will seek to achieve its primary                   proceedings pursuant to Section                       address the sufficiency of the
                                             investment objective by investing                       19(b)(2)(B) of the Act 10 to determine                Exchange’s statements in support of the
                                             primarily in Big S&P Contracts such that                whether the proposed rule change                      proposal, which are set forth in
                                             daily changes in the Fund’s net asset                   should be approved or disapproved.                    Amendment No. 1,14 in addition to any
                                             value (‘‘NAV’’) are expected to closely                 Institution of such proceedings is                    other comments they may wish to
                                             track the changes, in the case of the                   appropriate at this time in view of the               submit about the proposed rule change.
                                             Long Fund, or the inverse of the                        legal and policy issues raised by the                 The Commission notes that the proposal
                                             changes, in the case of the Short Fund,                 proposed rule change. Institution of                  sets forth certain conditions relating to
                                             in the closing settlement price of the                  proceedings does not indicate that the                the creation and redemption of baskets
                                             lead month Big S&P Contracts                            Commission has reached any                            of Shares. In particular, under the
                                             (‘‘Benchmark’’) on a leveraged basis.                   conclusions with respect to any of the                proposal, ‘‘[t]he Sponsor may, in its
                                             Each Fund will also invest in E-MiniTM                  issues involved. Rather, as described                 discretion, suspend the right of
                                             S&P 500® Futures contracts (‘‘E-Minis’’                 below, the Commission seeks and                       redemption, or postpone the redemption
                                             and, together with Big S&P Contracts,                   encourages interested persons to                      settlement date with respect to a Fund
                                             ‘‘Primary S&P Interests’’) to seek to                   provide comments on the proposed rule                 . . . for such other period as the
                                             achieve its primary investment objective                change.                                               Sponsor determines to be necessary for
                                             where position limits prevent further                      Pursuant to Section 19(b)(2)(B) of the             the protection of a Fund’s Shareholders.
                                             purchases of Big S&P Contracts. Each                    Act,11 the Commission is providing                    . . .’’ 15 What are commenters’ views on
                                             Fund expects to apply approximately                     notice of the grounds for disapproval                 the scope of this discretion with respect
                                             10–25% of its portfolio toward                          under consideration. The Commission is                to redemptions? Is the discretion likely
                                             obtaining exposure to futures contracts,                instituting proceedings to allow for                  to have an effect on the arbitrage
                                             all of which would be lead month or                     additional analysis of the proposed rule              mechanisms and, if so, how?
                                             deferred month Primary S&P Interests.                   change’s consistency with Section                        Comments may be submitted by any
                                             Each Fund may also invest in swap                       6(b)(5) of the Act, which requires,                   of the following methods:
                                             agreements (cleared and over-the-                       among other things, that the rules of a
                                                                                                     national securities exchange be                       Electronic Comments
                                             counter) referencing Primary S&P
                                             Interests or the S&P 500 Index, and                     ‘‘designed to prevent fraudulent and                     • Use the Commission’s Internet
                                             over-the-counter forward contracts                      manipulative acts and practices, to                   comment form (http://www.sec.gov/
                                             referencing Primary S&P Interests                       promote just and equitable principles of              rules/sro.shtml); or
                                             (‘‘Other S&P Interests’’). Each Fund may                trade,’’ and ‘‘to protect investors and the              • Send an email to rule-comments@
                                             invest in Other S&P Interests in an                     public interest.’’ 12                                 sec.gov. Please include File Number SR–
                                             amount up to 25% of its net assets.                     IV. Procedure: Request for Written                    NYSEArca–2016–120 on the subject
                                                Each Fund may acquire or dispose of                  Comments                                              line.
                                             Stop Options on Primary S&P Interests                     The Commission requests that                        Paper Comments
                                             in pursuing its secondary investment                    interested persons provide written
                                             objective of recouping a small amount of                                                                        • Send paper comments in triplicate
                                                                                                     submissions of their views, data, and
                                             a Fund’s losses that may result from                                                                          to Secretary, Securities and Exchange
                                                                                                     arguments with respect to the issues
                                             large movements in the Benchmark.                       identified above, as well as any other
                                             Stop Options are expected to average                    concerns they may have with the
                                                                                                                                                              13 Section 19(b)(2) of the Act, as amended by the

                                             less than approximately 5% of each                                                                            Securities Acts Amendments of 1975, Public Law
                                                                                                     proposal. In particular, the Commission               94–29 (June 4, 1975), grants the Commission
                                             Fund’s portfolio.8                                      invites the written views of interested               flexibility to determine what type of proceeding—
                                                                                                     persons concerning whether the                        either oral or notice and opportunity for written
Lhorne on DSK30JT082PROD with NOTICES




                                               8 Not more than 10% of the net assets of each                                                               comments—is appropriate for consideration of a
                                                                                                     proposal is consistent with Section                   particular proposal by a self-regulatory
                                             Fund in the aggregate invested in futures contracts
                                             or exchange-traded options contracts will consist of                                                          organization. See Securities Acts Amendments of
                                                                                                       9 For more information regarding the Funds and
                                             futures contracts or exchange-traded options                                                                  1975, Senate Comm. on Banking, Housing & Urban
                                             contracts whose principal market is not a member        the Shares, see Amendment No. 1, supra note 6.        Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
                                                                                                       10 15 U.S.C. 78s(b)(2)(B).                          (1975).
                                             of the Intermarket Surveillance Group or is a market
                                                                                                       11 Id.                                                 14 See supra note 6.
                                             with which the Exchange does not have a
                                             comprehensive surveillance sharing agreement.             12 15 U.S.C. 78f(b)(5).                                15 See Amendment No. 1, supra note 6, at 21.




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                                                                              Federal Register / Vol. 82, No. 24 / Tuesday, February 7, 2017 / Notices                                                9627

                                             Commission, 100 F Street NE.,                             staff members who have an interest in                 agreement with the foreign owner or
                                             Washington, DC 20549–1090.                                the matters also may be present.                      custodian. I also determine that the
                                             All submissions should refer to File                         The General Counsel of the                         exhibition or display of the exhibit
                                             Number SR–NYSEArca–2016–120. This                         Commission, or her designee, has                      object at The Metropolitan Museum of
                                             file number should be included on the                     certified that, in her opinion, one or                Art, New York, New York, from on or
                                             subject line if email is used. To help the                more of the exemptions set forth in 5                 about March 1, 2017, until on or about
                                             Commission process and review your                        U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)            March 1, 2018, and at possible
                                             comments more efficiently, please use                     and 17 CFR 200.402(a)(3), (a)(5), (a)(7),             additional exhibitions or venues yet to
                                             only one method. The Commission will                      (a)(9)(ii) and (a)(10), permit                        be determined, is in the national
                                             post all comments on the Commission’s                     consideration of the scheduled matter at              interest. I have ordered that Public
                                             Internet Web site (http://www.sec.gov/                    the closed meeting.                                   Notice of these Determinations be
                                             rules/sro.shtml). Copies of the                              Commissioner Stein, as duty officer,               published in the Federal Register.
                                             submission, all subsequent                                voted to consider the items listed for the            FOR FURTHER INFORMATION CONTACT: For
                                             amendments, all written statements                        closed meeting in closed session.                     further information, including an object
                                             with respect to the proposed rule                            The subject matter of the closed                   list, contact the Office of Public
                                             change that are filed with the                            meeting will be:                                      Diplomacy and Public Affairs in the
                                             Commission, and all written                                  Institution and settlement of                      Office of the Legal Adviser, U.S.
                                             communications relating to the                            injunctive actions;                                   Department of State (telephone: 202–
                                             proposed rule change between the                             Institution and settlement of                      632–6471; email: section2459@
                                             Commission and any person, other than                     administrative proceedings;                           state.gov). The mailing address is U.S.
                                             those that may be withheld from the                          Resolution of litigation claims;                   Department of State, L/PD, SA–5, Suite
                                             public in accordance with the                                Litigation matters; and
                                                                                                                                                             5H03, Washington, DC 20522–0505.
                                             provisions of 5 U.S.C. 552, will be                          Other matters relating to enforcement
                                             available for Web site viewing and                        proceedings.                                          Alyson Grunder,
                                             printing in the Commission’s Public                          At times, changes in Commission                    Deputy Assistant Secretary for Policy, Bureau
                                             Reference Room, 100 F Street NE.,                         priorities require alterations in the                 of Educational and Cultural Affairs,
                                             Washington, DC 20549, on official                         scheduling of meeting items.                          Department of State.
                                             business days between the hours of                           For further information and to                     [FR Doc. 2017–02436 Filed 2–6–17; 8:45 am]
                                             10:00 a.m. and 3:00 p.m. Copies of the                    ascertain what, if any, matters have been             BILLING CODE 4710–05–P
                                             filing also will be available for                         added, deleted or postponed; please
                                             inspection and copying at the principal                   contact Brent J. Fields from the Office of
                                             office of the Exchange. All comments                      the Secretary at (202) 551–5400.                      DEPARTMENT OF STATE
                                             received will be posted without change;                     Dated: February 2, 2017.
                                             the Commission does not edit personal                     Brent J. Fields,                                      [Public Notice: 9872]
                                             identifying information from                              Secretary.
                                             submissions. You should submit only                                                                             Advisory Committee on International
                                                                                                       [FR Doc. 2017–02531 Filed 2–3–17; 11:15 am]
                                             information that you wish to make                                                                               Economic Policy; Notice of Open
                                                                                                       BILLING CODE 8011–01–P                                Meeting
                                             available publicly. All submissions
                                             should refer to File Number SR–                                                                                    The Advisory Committee on
                                             NYSEArca–2016–120 and should be                                                                                 International Economic Policy (ACIEP)
                                             submitted on or before February 28,                       DEPARTMENT OF STATE
                                                                                                                                                             will meet from 2:00 until 5:00 p.m., on
                                             2017. Rebuttal comments should be                         [Public Notice: 9873]                                 Tuesday, February 28, in Washington,
                                             submitted by March 14, 2017.                                                                                    DC at the State Department, 320 21st St.
                                                                                                       Notice of Determinations; Culturally
                                               For the Commission, by the Division of                                                                        NW. The meeting will be hosted by the
                                             Trading and Markets, pursuant to delegated                Significant Object Imported for
                                                                                                       Exhibition Determinations: ‘‘The Dutch                Acting Assistant Secretary of State for
                                             authority.16                                                                                                    Economic and Business Affairs, Patricia
                                             Eduardo A. Aleman,                                        Fleet Assembling Before the Four
                                                                                                       Days’ Battle’’ Exhibition                             M. Haslach, and Committee Chair Paul
                                             Assistant Secretary.                                                                                            R. Charron. The ACIEP serves the U.S.
                                             [FR Doc. 2017–02442 Filed 2–6–17; 8:45 am]                SUMMARY:    Notice is hereby given of the             government in a solely advisory
                                             BILLING CODE 8011–01–P                                    following determinations: Pursuant to                 capacity, and provides advice
                                                                                                       the authority vested in me by the Act of              concerning topics in international
                                                                                                       October 19, 1965 (79 Stat. 985; 22 U.S.C.             economic policy. It is expected that
                                             SECURITIES AND EXCHANGE                                   2459), E.O. 12047 of March 27, 1978, the              during this meeting, the ACIEP
                                             COMMISSION                                                Foreign Affairs Reform and                            subcommittee on sanctions policy and
                                                                                                       Restructuring Act of 1998 (112 Stat.                  the Stakeholder Advisory Board will
                                             Sunshine Act Meeting                                      2681, et seq.; 22 U.S.C. 6501 note, et                provide updates on their recent work.
                                               Notice is hereby given, pursuant to                     seq.), Delegation of Authority No. 234 of                This meeting is open to the public,
                                             the provisions of the Government in the                   October 1, 1999, Delegation of Authority              though seating is limited. Entry to the
                                             Sunshine Act, Public Law 94–409, that                     No. 236–3 of August 28, 2000 (and, as                 building is controlled. To obtain pre-
                                             the Securities and Exchange                               appropriate, Delegation of Authority No.              clearance for entry, members of the
                                             Commission will hold a closed meeting                     257–1 of December 11, 2015), I hereby                 public planning to attend must, no later
Lhorne on DSK30JT082PROD with NOTICES




                                             on Thursday, February 9, 2017 at 2 p.m.                   determine that the object to be included              than Tuesday, February 21, provide
                                               Commissioners, Counsel to the                           in the exhibition ‘‘The Dutch Fleet                   their full name and professional
                                             Commissioners, the Secretary to the                       Assembling Before the Four Days’                      affiliation (if any) to Alan Krill by email:
                                             Commission, and recording secretaries                     Battle,’’ imported from abroad for                    KrillA@state.gov. Requests for
                                             will attend the closed meeting. Certain                   temporary exhibition within the United                reasonable accommodation should also
                                                                                                       States, is of cultural significance. The              be made to Alan Krill before Tuesday,
                                               16 17   CFR 200.30–3(a)(57).                            object is imported pursuant to a loan                 February 21. Requests made after that


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Document Created: 2017-02-07 00:27:12
Document Modified: 2017-02-07 00:27:12
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 9625 

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