83 FR 37831 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Amendment No. 1 and Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change as Modified by Amendment No. 1 Thereto Regarding the Continued Listing and Trading of Shares of the Natixis Loomis Sayles Short Duration Income ETF

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 149 (August 2, 2018)

Page Range		37831-37839
FR Document		2018-16536

Federal Register, Volume 83 Issue 149 (Thursday, August 2, 2018)

[Federal Register Volume 83, Number 149 (Thursday, August 2, 2018)]
[Notices]
[Pages 37831-37839]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-16536]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83733; File No. SR-NYSEArca-2018-25]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Amendment No. 1 and Order Instituting Proceedings To Determine
Whether To Approve or Disapprove a Proposed Rule Change as Modified by
Amendment No. 1 Thereto Regarding the Continued Listing and Trading of
Shares of the Natixis Loomis Sayles Short Duration Income ETF

July 27, 2018.

I. Introduction

On April 16, 2018, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934
(``Exchange Act'') \2\ and Rule 19b-4 thereunder,\3\ a proposed rule
change to continue listing and trading shares of the Natixis Loomis
Sayles Short Duration Income ETF under NYSE Arca Rule 8.600-E, Managed
Fund Shares.\4\ The proposed rule change was published for comment in
the Federal Register on May 3, 2018.\5\ On June 5, 2018, the Commission
extended the time period within which to approve the proposed rule
change, disapprove the proposed rule change, or institute proceedings
to determine whether to approve or disapprove the proposed rule change
to August 1,

[[Page 37832]]

2018.\6\ On June 6, 2018, the Exchange filed Amendment No. 1 to the
proposed rule change, which replaced and superseded the proposed rule
change as originally filed. The Commission received no comments on the
proposed rule change. The Commission is publishing this notice and
order to solicit comments on the proposed rule change, as modified by
Amendment No. 1, from interested persons and to institute proceedings
under Section 19(b)(2)(B) of the Exchange Act to determine whether to
approve or disapprove the proposed rule change as modified by Amendment
No. 1.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ Currently, the Exchange lists and trades the shares pursuant
to NYSE Arca Rule 8.600-E. As discussed further below, the Exchange
submitted this proposed rule change to permit the fund's portfolio
to deviate from two of the ``generic'' listing requirements
applicable to Managed Fund Shares.
\5\ See Securities Exchange Act Release No. 83122 (April 27,
2018), 83 FR 19578. (``Notice'').
\6\ See Securities Exchange Act Release No. 83385, 83 FR 27034
(June 11, 2018).
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II. Self-Regulatory Organization's Statement of the Purpose of, and the
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 8.600-E, which governs the listing and
trading of Managed Fund Shares: \7\ Natixis Loomis Sayles Short
Duration Income ETF (``Fund''). The Shares are offered by Natixis ETF
Trust (the ``Trust''), which is registered with the Commission as an
open-end management investment company.\8\ Natixis Advisors, L.P. (the
``Adviser'') is the investment adviser for the Fund. Loomis, Sayles &
Company, L.P. is the Fund's sub-adviser (``Sub-Adviser''). ALPS
Distributors, Inc. (the ``Distributor'') is the principal underwriter
and distributor of the Fund's Shares. The Adviser is the Fund's
administrator. State Street Bank and Trust Company (``State Street'')
serves as the custodian, and transfer agent (``Transfer Agent'' or
``Custodian'') for the Fund.\9\
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\7\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Rule 5.2-E(j)(3),
seeks to provide investment results that correspond generally to the
price and yield performance of a specific foreign or domestic stock
index, fixed income securities index or combination thereof.
\8\ Shares of the Fund commenced trading on the Exchange on
December 28, 2017 pursuant to Commentary .01 to NYSE Arca Rule
8.600-E.
\9\ The Trust is registered under the 1940 Act. On December 26,
2017, the Trust filed with the Commission its registration statement
on Form N-1A under the Securities Act of 1933 (15 U.S.C. 77a), and
under the 1940 Act relating to the Fund (File Nos. 333-210156 and
811-23146) (``Registration Statement''). The description of the
operation of the Trust and the Fund herein is based, in part, on the
Registration Statement. In addition, the Commission has issued an
order granting certain exemptive relief to the Trust under the 1940
Act. See Investment Company Act Release No. 30654 (August 20, 2013)
(File No. 812-13942-02) (``Exemptive Order'').
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Commentary .06 to Rule 8.600-E provides that, if the investment
adviser to the investment company issuing Managed Fund Shares is
affiliated with a broker-dealer, such investment adviser shall erect a
``fire wall'' between the investment adviser and the broker-dealer with
respect to access to information concerning the composition and/or
changes to such investment company portfolio. In addition, Commentary
.06 further requires that personnel who make decisions on the open-end
fund's portfolio composition must be subject to procedures designed to
prevent the use and dissemination of material nonpublic information
regarding the open-end fund's portfolio.\10\ Commentary .06 to Rule
8.600-E is similar to Commentary .03(a)(i) and (iii) to NYSE Arca Rule
5.2-E(j)(3); however, Commentary .06 in connection with the
establishment of a ``fire wall'' between the investment adviser and the
broker-dealer reflects the applicable open-end fund's portfolio, not an
underlying benchmark index, as is the case with index-based funds. The
Adviser and Sub-Adviser are not registered as broker-dealers but each
is affiliated with a broker-dealer and has implemented and will
maintain a ``fire wall'' with respect to such broker-dealer regarding
access to information concerning the composition and/or changes to the
Fund's portfolio. In the event (a) the Adviser or Sub-Adviser becomes
registered as a broker-dealer or newly affiliated with a broker-dealer,
or (b) any new adviser or sub-adviser is a registered broker-dealer or
becomes affiliated with a broker-dealer, it will implement and maintain
a fire wall with respect to its relevant personnel or broker-dealer
affiliate regarding access to information concerning the composition
and/or changes to the portfolio, and will be subject to procedures
designed to prevent the use and dissemination of material non-public
information regarding such portfolio.
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\10\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the Adviser and Sub-Adviser and their related
personnel are subject to the provisions of Rule 204A-1 under the
Advisers Act relating to codes of ethics. This Rule requires
investment advisers to adopt a code of ethics that reflects the
fiduciary nature of the relationship to clients as well as
compliance with other applicable securities laws. Accordingly,
procedures designed to prevent the communication and misuse of non-
public information by an investment adviser must be consistent with
Rule 204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under
the Advisers Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such investment adviser
has (i) adopted and implemented written policies and procedures
reasonably designed to prevent violation, by the investment adviser
and its supervised persons, of the Advisers Act and the Commission
rules adopted thereunder; (ii) implemented, at a minimum, an annual
review regarding the adequacy of the policies and procedures
established pursuant to subparagraph (i) above and the effectiveness
of their implementation; and (iii) designated an individual (who is
a supervised person) responsible for administering the policies and
procedures adopted under subparagraph (i) above.
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Natixis Loomis Sayles Short Duration Income ETF
Principal Investments
According to the Registration Statement, the Fund's investment
objective is current income consistent with preservation of capital.
Under normal market conditions,\11\ the Fund will invest at least 80%
of its net assets in ``Fixed-Income Securities'' (as described below).
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\11\ The term ``normal market conditions'' is defined in NYSE
Arca Rule 8.600-E(c)(5).
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The Fixed Income Securities in which the Fund may invest are the
following:
U.S. Government Securities, including U.S. Treasury Bills,
U.S. Treasury Notes and Bonds, U.S. Treasury Floating Rate Notes,
Treasury Inflation-Protected Securities (``TIPS''), and obligations of
U.S. agencies or instrumentalities (e.g., ``Ginnie Maes'', ``Fannie
Maes'' and ``Freddie Macs'');
agency and non-agency asset-backed securities (``ABS'');
U.S. dollar-denominated foreign securities, including
emerging market securities;
Adjustable-Rate Mortgage Securities (``ARMs'');
junior and senior loans;
bank loans, loan participations and assignments;
agency and non-agency mortgage-backed securities
(``MBS'');

[[Page 37833]]

collateralized mortgage obligations (``CMOs'');
zero coupon and pay-in-kind securities;
corporate bonds;
Non-US government securities, supranational entities
obligations issued by foreign governments, or international agencies
and instrumentalities;
inflation-linked and inflation-indexed securities;
money market instruments; \12\
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\12\ Money market instruments are short-term instruments
referenced in Commentary .01 (c) to NYSE Arca Rule 8.600-E.
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mortgage-related securities (such as Government National
Mortgage Association or Federal National Mortgage Association
certificates);
mortgage dollar rolls;
variable and floating rate securities;
Rule 144A securities;
taxable municipal securities;
step-coupon securities; and
stripped securities.
The Fund may hold any portion of its assets in cash (U.S. dollars,
foreign currencies or multinational currency units) and/or cash
equivalents.\13\
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\13\ For purposes of this filing, cash equivalents shall mean
the short-term instruments enumerated in Commentary .01(c) to NYSE
Arca Rule 8.600-E.
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Other Investments
While the Fund, under normal market conditions, will invest at
least 80% of its net assets in the securities and financial instruments
described above, the Fund may invest its remaining assets in the
securities and financial instruments referenced below.
The Fund may enter into short sales of Fixed Income Securities.
The Fund may invest in exchange-traded funds (``ETFs'') \14\ and
exchange-traded notes (``ETNs''). \15\
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\14\ For purposes of this filing, the term ``ETFs'' includes
Investment Company Units (as described in NYSE Arca Rule 5.2-
E(j)(3)); Portfolio Depositary Receipts (as described in NYSE Arca
Rule 8.100-E); and Managed Fund Shares (as described in NYSE Arca
Rule 8.600-E). All ETFs will be listed and traded in the U.S. on a
national securities exchange. While the Fund may invest in inverse
ETFs, the Fund will not invest in leveraged (e.g., 2X, -2X, 3X or -
3X) ETFs.
\15\ ETNs are Index-Linked Securities as described in NYSE Arca
Rule 5.2-E(j)(6).
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The Fund may invest in bilateral credit default swaps, bilateral
interest rate swaps and bilateral standardized commodity and equity
index total return swaps. The Fund may invest in the following swaps:
Interest rate, credit default, credit default swaps index (``CDX''),
commodity, equity-linked, fixed income, credit default, credit-linked
and currency exchange swaps or an index or indexes of the foregoing.
The Fund may invest in swaptions.
The Fund may invest in the following options: U.S. exchange-traded
and over-the-counter (``OTC'') options on Fixed Income Securities,
domestic and foreign equity and fixed income indices, CDX, U.S.
Treasury futures contracts, interest rates and currencies.
The Fund may invest in futures on Fixed Income Securities, domestic
and foreign equity and fixed income indices, interest rates and CDX.
The Fund may invest in publicly or privately issued interests in
investment pools whose underlying assets are credit default, credit-
linked, interest rate, currency exchange, equity-linked or other types
of swap contracts and related underlying securities or securities loan
agreements.
The Fund may invest in non-exchange-traded open-end investment
company securities.
With respect to any of the Fund's investments identified above, the
Fund may purchase securities on a forward commitment or when-issued or
delayed delivery basis.
Use of Derivatives by the Fund
Investments in derivative instruments will be consistent with the
Fund's investment objective and policies. The Fund will typically use
derivative instruments as a substitute for taking a position in the
underlying asset where advantageous and/or as part of a strategy
designed to reduce exposure to other risks, such as interest rate risk.
The Fund may also use derivative instruments to enhance returns, manage
portfolio duration, or manage the risk of securities price
fluctuations. To limit the potential risk associated with such
transactions, the Fund segregates or ``earmarks'' assets determined to
be liquid by the Adviser in accordance with procedures established by
the Trust's Board of Trustees (the ``Board'') to cover its obligations
under derivative instruments. In addition, the Fund has included
appropriate risk disclosure in its offering documents, including
leveraging risk. Leveraging risk is the risk that certain transactions
of the Fund, including the Fund's use of derivatives, may give rise to
leverage, causing the Fund to be more volatile than if it had not been
leveraged. Because the markets for certain securities, or the
securities themselves, may be unavailable or cost prohibitive as
compared to derivative instruments, suitable derivative transactions
may be an efficient alternative for the Fund to obtain the desired
asset exposure.
Creation and Redemption of Shares
According to the Registration Statement, the Fund issues and sells
Shares of the Fund only in Creation Units of 100,000 Shares on a
continuous basis through the Distributor at the net asset value
(``NAV'') next determined after receipt of an order in proper form on
any business day. The size of a Creation Unit is subject to change.
The consideration for purchase of Creation Units generally consists
of ``Deposit Securities'' and the ``Cash Component'', which generally
correspond pro rata, to the extent practicable, to the Fund securities,
or, as permitted by the Fund, the ``Cash Deposit.'' Together, the
Deposit Securities and the Cash Component or, alternatively, the Cash
Deposit, constitute the ``Fund Deposit,'' which represents the minimum
initial and subsequent investment amount for a Creation Unit of the
Fund.
The Transfer Agent and Custodian, through the National Securities
Clearing Corporation (``NSCC''), makes available on each business day,
prior to the opening of the Core Trading Session on NYSE Arca
(currently 9:30 a.m., Eastern Time (``E.T.'')), the identity and the
required number of each Deposit Security and the amount of the Cash
Component to be included in the current Fund Deposit (based on
information at the end of the previous business day).
The Fund may also permit the substitution of an amount of cash (a
``cash-in-lieu'' amount) to replace any Deposit Security of the Fund
that is a non-deliverable instrument. The amount of cash contributed
will be equivalent to the price of the instrument listed as a Deposit
Security. The Fund reserves the right to permit the substitution of a
``cash in-lieu'' amount to be added to replace any Deposit Security
under specified circumstances.
Procedures for Creating Creation Units
To be eligible to place orders with the Distributor and to create a
Creation Unit of the Fund, an entity must be: (i) A ``Participating
Party'' (i.e., a broker-dealer or other participant in the clearing
process through the Continuous Net Settlement System of the NSCC; or
(ii) a participant of the Depository Trust Company (``DTC'') (``DTC
Participant'') and must have executed an Authorized Participant
agreement with the Distributor, and accepted by the Transfer Agent,
with respect to creations and redemptions of Creation Units. A
Participating Party or DTC Participant who has executed an ``Authorized
Participant Agreement'' is referred to as an ``Authorized
Participant.''
To initiate a creation order for a Creation Unit, an Authorized
Participant must submit an irrevocable order to purchase Shares in
proper form to the Transfer Agent no later than 2:00

[[Page 37834]]

p.m., E.T. on any business day for creation of Creation Units to be
effected based on the NAV of Shares of the Fund on the following
business day.
Redemption of Creation Units
Shares may be redeemed only in Creation Units at their NAV next
determined after receipt of a redemption request in proper form on a
business day and only through a Participating Party or DTC Participant
who has executed an Authorized Participant Agreement.
With respect to the Fund, State Street, through the NSCC, makes
available immediately prior to the opening of the Core Trading Session
on the NYSE Arca on each business day, the identity of the Fund's
securities and/or an amount of cash that will be applicable to
redemption requests received in proper form on that day. The Fund's
securities received on redemption generally correspond pro rata, to the
positions in the Fund's portfolio. The Fund's securities received on
redemption (``Fund Securities'') will generally be identical to Deposit
Securities that are applicable to creations of Creation Units.
Subject to the terms of the applicable Authorized Participant
Agreement and any creation and redemption procedures adopted by the
Fund and provided to all Authorized Participants, to initiate a
redemption order for a Creation Unit, an Authorized Participant must
submit an irrevocable order to redeem Shares in proper form to the
Transfer Agent no later than 2:00 p.m., E.T. on any business day for
redemption of Creation Units to be effected based on the NAV of shares
of the Fund on that business day.
Unless cash only redemptions are available or specified for the
Fund, the redemption proceeds for a Creation Unit generally consists of
Fund Securities--as announced on the business day of the request for a
redemption order received in proper form--plus cash in an amount equal
to the difference between the NAV of the Shares being redeemed, as next
determined after a receipt of a request in proper form, and the value
of the Fund Securities, less the redemption transaction fee and
variable fees.\16\ The Fund may substitute a ``cash-in-lieu'' amount to
replace any Fund Security in certain limited circumstances. The amount
of cash paid out in such cases will be equivalent to the value of the
instrument listed as the Fund Security. In the event that the Fund
Securities have a value greater than the NAV of the Shares, a
compensating cash payment equal to the difference will be included in
the Cash Component required to be delivered by an Authorized
Participant.
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\16\ The Adviser represents that, to the extent the Trust
effects the redemption of Shares in cash, such transactions will be
effected in the same manner for all Authorized Participants.
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Derivatives Valuation Methodology for Purposes of Determining Portfolio
Indicative Value
On each business day, before commencement of trading in Fund Shares
on NYSE Arca, the Fund discloses on its website the identities and
quantities of the portfolio instruments and other assets held by the
Fund that form the basis for the Fund's calculation of NAV at the end
of the business day. The NAV of the Shares of the Fund is determined
once each day the New York Stock Exchange (the ``NYSE'') is open, as of
the close of its regular trading session (normally 4:00 p.m., E.T.)
(``NYSE Close'').
In order to provide additional information regarding the intra-day
value of Shares of the Fund, one or more major market data vendors
disseminates every 15 seconds an updated Intraday Indicative Value
(``IIV'') for the Fund as calculated by an information provider or
market data vendor. A third party market data provider calculates the
IIV for the Fund.
With respect to specific derivatives:
Foreign currency derivatives may be valued intraday using
market quotes, or another proxy as determined to be appropriate by the
third party market data provider.
Futures may be valued intraday using the relevant futures
exchange data, or another proxy as determined to be appropriate by the
third party market data provider.
Swaps may be valued using intraday data from market
vendors, or based on underlying asset price, or another proxy as
determined to be appropriate by the third party market data provider.
Exchange listed options may be valued intraday using the
relevant exchange data, or another proxy as determined to be
appropriate by the third party market data provider.
OTC options and swaptions may be valued intraday through
option valuation models (e.g., Black-Scholes) or using exchange-traded
options as a proxy, or another proxy as determined to be appropriate by
the third party market data provider.
Disclosed Portfolio
The Fund's disclosure of derivative positions in the applicable
Disclosed Portfolio includes information that market participants can
use to value these positions intraday. On a daily basis, the Fund
discloses the information regarding the Disclosed Portfolio required
under NYSE Arca Rule 8.600-E (c)(2) to the extent applicable.
Impact on Arbitrage Mechanism
The Adviser believes there will be minimal, if any, impact to the
arbitrage mechanism as a result of the use of derivatives. Market
makers and participants should be able to value derivatives as long as
the positions are disclosed with relevant information. The Adviser
believes that the price at which Shares of the Fund trade will continue
to be disciplined by arbitrage opportunities created by the ability to
purchase or redeem Shares of the Fund at their NAV, which should ensure
that Shares of the Fund will not trade at a material discount or
premium in relation to their NAV.
The Adviser does not believe there is any significant impact to the
settlement or operational aspects of the Fund's arbitrage mechanism due
to the use of derivatives. Because derivatives generally are not
eligible for in-kind transfer, they will be substituted with a ``cash
in lieu'' amount when the Fund processes purchases or redemptions of
block-size ``Creation Units'' (as described above) in-kind.
Application of Generic Listing Requirements
The Exchange is submitting this proposed rule change because the
portfolio for the Fund would not meet all of the ``generic'' listing
requirements of Commentary .01 to NYSE Arca Rule 8.600-E applicable to
the listing of Managed Fund Shares. The Fund's portfolio would meet all
such requirements except for those set forth in Commentary .01(b)(5)
and Commentary .01(a)(1).
The Fund will not comply with the requirement of Commentary
.01(b)(5) to NYSE Arca Rule 8.600-E that non-agency, non-government-
sponsored entity (``GSE'') and privately-issued mortgage-related and
other asset-backed securities components of a portfolio shall not
account, in the aggregate, for more than 20% of the weight of the fixed
income portion of the portfolio.\17\ Instead, up to 30% of the weight
of the

[[Page 37835]]

Fixed Income Securities portion of the Fund's portfolio may consist of
non-agency, non-GSE and privately-issued mortgage-related and other
asset-backed securities. The Adviser represents that permitting limited
investments in non-agency, non-GSE and privately-issued mortgage-
related and other asset-backed securities, as described above, would be
in the best interest of the Fund's shareholders because such
investments have the potential to reduce the overall risk profile of
the Fund's portfolio through diversification. In the Adviser's view,
such investments would reduce the Fund's risk with respect to non-
agency, non-GSE and privately-issued mortgage-related and other asset-
backed securities by diversifying the Fund's exposure among borrowers
of such debt issues. The Adviser represents that the Fund will only
purchase U.S. dollar denominated non-agency ABS and MBS that are
settled through DTC. In addition, by allowing the Fund to allocate up
to 30% of the weight of its Fixed Income Securities investments in such
issues would afford the Fund greater flexibility to invest in the most
liquid available Fixed Income Securities issues, in that such issues
are expected to be as liquid, or more liquid, than other possible Fund
investments.
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\17\ Commentary .01(b)(5) to NYSE Arca Rule 8.600-E provides
that the components of the fixed income portion of a portfolio shall
meet the following criteria initially and on a continuing basis:
non-agency, non-government-sponsored entity (``GSE'') and privately-
issued mortgage-related and other asset-backed securities components
of a portfolio shall not account, in the aggregate, for more than
20% of the weight of the fixed income portion of the portfolio.
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As noted above, the Fund may invest in equity securities that are
non-exchange-traded securities of other open-end investment company
securities (e.g., mutual funds). The Exchange believes that it is
appropriate and in the public interest to approve listing and trading
of Shares of the Fund on the Exchange notwithstanding that the Fund
would not meet the requirements of Commentary .01(a)(1)(A) through (E)
to Rule 8.600-E with respect to the Fund's investments in such
securities.\18\ Investments in such equity securities will not be
principal investments of the Fund.\19\ Such investments, which may
include mutual funds that invest, for example, principally in fixed
income securities, would be utilized to help the Fund meet its
investment objective and to equitize cash in the short term.\20\
Because such securities must have a net asset value based on the value
of securities and financial assets the investment company holds, the
Exchange believes it is both unnecessary and inappropriate to apply to
such investment company securities the criteria in Commentary
.01(a)(1).
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\18\ Commentary .01 (a) to Rule 8.600-E specifies the equity
securities accommodated by the generic criteria in Commentary
.01(a), namely, U.S. Component Stocks (as described in Rule 5.2-
E(j)(3)); Non-U.S. Component Stocks (as described in Rule 5.2-
E(j)(3)); Derivative Securities Products (i.e., Investment Company
Units and securities described in Section 2 of Rule 8-E); and Index-
Linked Securities that qualify for Exchange listing and trading
under Rule 5.2-E(j)(6). Commentary .01(a)(1) to Rule 8.600-E (U.S.
Component Stocks) provides that the component stocks of the equity
portion of a portfolio that are U.S. Component Stocks shall meet the
following criteria initially and on a continuing basis:
(A) Component stocks (excluding Derivative Securities Products
and Index-Linked Securities) that in the aggregate account for at
least 90% of the equity weight of the portfolio (excluding such
Derivative Securities Products and Index-Linked Securities) each
shall have a minimum market value of at least $75 million;
(B) Component stocks (excluding Derivative Securities Products
and Index-Linked Securities) that in the aggregate account for at
least 70% of the equity weight of the portfolio (excluding such
Derivative Securities Products and Index-Linked Securities) each
shall have a minimum monthly trading volume of 250,000 shares, or
minimum notional volume traded per month of $25,000,000, averaged
over the last six months;
(C) The most heavily weighted component stock (excluding
Derivative Securities Products and Index-Linked Securities) shall
not exceed 30% of the equity weight of the portfolio, and, to the
extent applicable, the five most heavily weighted component stocks
(excluding Derivative Securities Products and Index-Linked
Securities) shall not exceed 65% of the equity weight of the
portfolio;
(D) Where the equity portion of the portfolio does not include
Non-U.S. Component Stocks, the equity portion of the portfolio shall
include a minimum of 13 component stocks; provided, however, that
there shall be no minimum number of component stocks if (i) one or
more series of Derivative Securities Products or Index-Linked
Securities constitute, at least in part, components underlying a
series of Managed Fund Shares, or (ii) one or more series of
Derivative Securities Products or Index-Linked Securities account
for 100% of the equity weight of the portfolio of a series of
Managed Fund Shares;
(E) Except as provided herein, equity securities in the
portfolio shall be U.S. Component Stocks listed on a national
securities exchange and shall be NMS Stocks as defined in Rule 600
of Regulation NMS under the Securities Exchange Act of 1934.
\19\ For purposes of this section of the filing, non-exchange-
traded securities of other registered investment companies do not
include money market funds, which are cash equivalents under
Commentary .01(c) to Rule 8.600-E and for which there is no
limitation in the percentage of the portfolio invested in such
securities.
\20\ The Commission has previously approved proposed rule
changes under Section 19(b) of the Act for series of Managed Fund
Shares that may invest in non-exchange traded investment company
securities to the extent permitted by Section 12(d)(1) of the 1940
Act and the rules thereunder. See, e.g., Securities Exchange Act
Release No. 78414 (July 26, 2016), 81 FR 50576 (August 1, 2016) (SR-
NYSEArca-2016-79) (order approving listing and trading of shares of
the Virtus Japan Alpha ETF under NYSE Arca Equities Rule 8.600).
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The Exchange notes that Commentary .01(A) through (D) to Rule
8.600-E exclude application of those provisions to certain ``Derivative
Securities Products'' that are exchange-traded investment company
securities, including Investment Company Units (as described in NYSE
Arca Rule 5.2-E(j)(3)), Portfolio Depositary Receipts (as described in
NYSE Arca Rule 8.100-E)) and Managed Fund Shares (as described in NYSE
Arca Rule 8.600-E).\21\ In its 2008 Approval Order approving amendments
to Commentary .01(a) to Rule 5.2(j)(3) that exclude Derivative
Securities Products from certain provisions of Commentary .01(a) (which
exclusions are similar to those in Commentary .01(a)(1) to Rule 8.600-
E), the Commission stated that ``based on the trading characteristics
of Derivative Securities Products, it may be difficult for component
Derivative Securities Products to satisfy certain quantitative index
criteria, such as the minimum market value and trading volume
limitations.'' The Exchange notes that it would be difficult or
impossible to apply to non-exchange-traded investment company
securities the generic quantitative criteria (e.g., market
capitalization, trading volume, or portfolio criteria) in Commentary
.01 (A) through (D) applicable to U.S. Component Stocks. For example,
the requirement for U.S. Component Stocks in Commentary .01(a)(1)(B)
that there be minimum monthly trading volume of 250,000 shares, or
minimum notional volume traded per month of $25,000,000, averaged over
the last six months is tailored to exchange-traded securities (e.g.,
U.S. Component Stocks) and not to mutual fund shares, which do not
trade in the secondary market. Moreover, application of such criteria
would not serve the purpose served with respect to U.S. Component
Stocks, namely, to establish minimum liquidity and diversification
criteria for U.S. Component Stocks held by series of Managed Fund
Shares.
---------------------------------------------------------------------------

\21\ The Commission initially approved the Exchange's proposed
rule change to exclude ``Derivative Securities Products'' (i.e.,
Investment Company Units and securities described in Section 2 of
Rule 8) and ``Index-Linked Securities (as described in Rule 5.2-E
(j)(6)) from Commentary .01(a)(A) (1) through (4) to Rule 5.2-E(j)(3
in Securities Exchange Act Release No. 57751 (May 1, 2008), 73 FR
25818 (May 7, 2008) (SR-NYSEArca-2008-29) (Order Granting Approval
of a Proposed Rule Change, as Modified by Amendment No. 1 Thereto,
to Amend the Eligibility Criteria for Components of an Index
Underlying Investment Company Units)(``2008 Approval Order''). See
also, Securities Exchange Act Release No. 57561 (March 26, 2008), 73
FR 17390 (April 1, 2008) (Notice of Filing of Proposed Rule Change
and Amendment No. 1 Thereto to Amend the Eligibility Criteria for
Components of an Index Underlying Investment Company Units). The
Commission subsequently approved generic criteria applicable to
listing and trading of Managed Fund Shares, including exclusions for
Derivative Securities Products and Index-Linked Securities in
Commentary .01(a)(1)(A) through (D), in Securities Exchange Act
Release No. 78397 (July 22, 2016), 81 FR 49320 (July 27, 2016)
(Order Granting Approval of Proposed Rule Change, as Modified by
Amendment No. 7 Thereto, Amending NYSE Arca Equities Rule 8.600 To
Adopt Generic Listing Standards for Managed Fund Shares). See also,
Amendment No. 7 to SR-NYSEArca-2015-110, available at https://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110-9.pdf.
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The Exchange notes that the Commission has previously approved

[[Page 37836]]

listing and trading of an issue of Managed Fund Shares that may invest
in equity securities that are non-exchange-traded securities of other
open-end investment company securities notwithstanding that the fund
would not meet the requirements of Commentary .01(a)(1)(A) through (E)
to Rule 8.600-E with respect to such fund's investments in such
securities.\22\ Thus, the Exchange believes that it is appropriate to
permit the Fund to invest in non-exchange-traded open-end management
investment company securities, as described above.
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\22\ See Securities Exchange Act Release No. 83319 (May 24,
2018) (SR-NYSEArca-2018-15) (Order Approving a Proposed Rule Change,
as Modified by Amendment No. 1 Thereto, to Continue Listing and
Trading Shares of the PGIM Ultra Short Bond ETF Under NYSE Arca Rule
8.600-E).
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The Exchange notes that, other than Commentary .01(a)(1)(A) through
(E) and Commentary.01(b)(5) to Rule 8.600-E, the Fund's portfolio will
meet all other requirements of Rule 8.600-E.
Availability of Information
The Fund's website (www.im.natixis.com/us/active-short-duration-income-etf) includes a form of the prospectus for the Fund that may be
downloaded. The Fund's website includes additional quantitative
information updated on a daily basis including, for the Fund, (1) daily
trading volume, the prior business day's reported closing price, NAV
and midpoint of the bid/ask spread at the time of calculation of such
NAV (the ``Bid/Ask Price''),\23\ and a calculation of the premium and
discount of the Bid/Ask Price against the NAV, and (2) data in chart
format displaying the frequency distribution of discounts and premiums
of the daily Bid/Ask Price against the NAV, within appropriate ranges,
for each of the four previous calendar quarters. On each business day,
before commencement of trading in Shares in the Core Trading Session on
the Exchange, the Fund discloses on its website the Disclosed Portfolio
as defined in NYSE Arca Rule 8.600-E (c)(2) that forms the basis for
the Fund's calculation of NAV at the end of the business day.\24\
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\23\ The Bid/Ask Price of the Fund's Shares will be determined
using the mid-point of the highest bid and the lowest offer on the
Exchange as of the time of calculation of the Fund's NAV. The
records relating to Bid/Ask Prices will be retained by the Fund and
its service providers.
\24\ Under accounting procedures followed by the Fund, trades
made on the prior business day (``T'') will be booked and reflected
in NAV on the current business day (``T+1''). Accordingly, the Fund
will be able to disclose at the beginning of the business day the
portfolio that will form the basis for the NAV calculation at the
end of the business day.
---------------------------------------------------------------------------

On a daily basis, the Fund discloses the information required under
NYSE Arca Rule 8.600-E (c)(2) to the extent applicable. The website
information will be publicly available at no charge.
In addition, a basket composition file, which includes the security
names and share quantities, if applicable, required to be delivered in
exchange for the Fund's Shares, together with estimates and actual cash
components, is publicly disseminated daily prior to the opening of the
Exchange via the NSCC. The basket represents one Creation Unit of the
Fund. Authorized Participants may refer to the basket composition file
for information regarding Fixed Income Securities, and any other
instrument that may comprise the Fund's basket on a given day.
Investors can also obtain the Trust's Statement of Additional
Information (``SAI''), the Fund's Shareholder Reports, and the Fund's
Forms N-CSR and Forms N-SAR, filed twice a year. The Fund's SAI and
Shareholder Reports will be available free upon request from the Trust,
and those documents and the Form N-CSR, Form N-PX and Form N-SAR may be
viewed on-screen or downloaded from the Commission's website at
www.sec.gov. Intra-day and closing price information regarding
exchange-traded options (including options on futures) and futures will
be available from the exchange on which such instruments are traded.
Intra-day and closing price information regarding Fixed Income
Securities also will be available from major market data vendors. Price
information relating to Rule 144A securities, interests in investment
pools, OTC options, swaps and swaptions will be available from major
market data vendors. Intra-day price information for exchange-traded
derivative instruments will be available from the applicable exchange
and from major market data vendors. Price information regarding non-
exchange-traded investment company securities will be available from
the applicable investment company. Information regarding market price
and trading volume of the Shares will be continually available on a
real-time basis throughout the day on brokers' computer screens and
other electronic services. Information regarding the previous day's
closing price and trading volume information for the Shares will be
published daily in the financial section of newspapers. Quotation and
last sale information for the Shares, ETFs and ETNs will be available
via the Consolidated Tape Association (``CTA'') high-speed line.
Exchange-traded options quotation and last sale information for options
cleared via the Options Clearing Corporation (``OCC'') is available via
the Options Price Reporting Authority. In addition, the IIV, as defined
in NYSE Arca Rule 8.600-E (c)(3), will be widely disseminated by one or
more major market data vendors at least every 15 seconds during the
Core Trading Session. The dissemination of the IIV, together with the
Disclosed Portfolio, may allow investors to determine an approximate
value of the underlying portfolio of the Fund on a daily basis and to
provide an estimate of that value throughout the trading day.
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. 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 inadvisable. These may include: (1) The extent to
which trading is not occurring in the securities and/or the financial
instruments comprising the Disclosed Portfolio of the Fund; or (2)
whether other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present. Trading in the
Shares will be subject to NYSE Arca Rule 8.600-E (d)(2)(D), which sets
forth circumstances under which Shares of the Fund may be halted.
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 4:00 a.m. to 8:00 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 8.600-E. The Exchange represents that,
for initial and continued listing, the Fund will be in compliance with
Rule 10A-3 under the Act, as provided by NYSE Arca Rule 5.3-E. The

[[Page 37837]]

Exchange has obtained a representation from the issuer of the Shares
that the NAV per Share will be calculated daily and that the NAV and
the Disclosed Portfolio will be made available to all market
participants at the same time.
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. The Exchange represents that these
procedures are adequate to properly monitor Exchange trading of the
Shares in all trading sessions and to deter and detect violations of
Exchange rules and federal securities laws applicable to trading on the
Exchange.
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, ETFs, ETNs,
certain exchange-traded options and certain 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, ETFs, ETNs, certain
exchange-traded options and certain futures from such markets and other
entities. In addition, the Exchange may obtain information regarding
trading in the Shares, ETFs, ETNs, certain exchange-traded options and
certain 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''). The Exchange is able to access from
FINRA, as needed, trade information for certain Fixed Income Securities
held by the Fund reported to FINRA's Trade Reporting and Compliance
Engine (``TRACE''). FINRA also can access data obtained from the
Municipal Securities Rulemaking Board (``MSRB'') relating to certain
municipal bond trading activity for surveillance purposes in connection
with trading in the Shares.
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 portfolio or reference assets, (b)
limitations on portfolio holdings or reference assets, or (c) the
applicability of Exchange rules and surveillance procedures shall
constitute continued listing requirements for listing the Shares on the
Exchange.
The 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
Equity Trading Permit (``ETP'') Holders in an Information Bulletin
(``Bulletin'') of the special characteristics and risks associated with
trading the Shares of the Fund. Specifically, the Bulletin will discuss
the following: (1) The procedures for purchases and redemptions of
Shares in Creation Units (and that Shares are not individually
redeemable); (2) NYSE Arca 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; (3) the risks involved in
trading the Shares during the Early and Late Trading Sessions when an
updated IIV will not be calculated or publicly disseminated; (4) how
information regarding the IIV and the Disclosed Portfolio is
disseminated; (5) 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 (6) trading information.
In addition, the Bulletin will reference that the Fund is subject
to various fees and expenses described in the Registration Statement.
The Bulletin will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Act. The
Bulletin will also disclose that the NAV for the Shares of the Fund is
calculated after 4:00 p.m. E.T. each trading day.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) that an exchange have rules that are
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to remove impediments
to, and perfect the mechanism of a free and open market and, in
general, to protect investors and the public interest.
The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Rule 8.600-E. 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 federal securities
laws applicable to trading on the Exchange. The Adviser is not
registered as a broker-dealer but the Adviser is affiliated with a
broker-dealer and has implemented and will maintain a ``fire wall''
with respect to such broker-dealer regarding access to information
concerning the composition and/or changes to the Fund's portfolio. The
Exchange or FINRA, on behalf of the Exchange, or both, will communicate
as needed regarding trading in the Shares, ETFs, ETNs, certain
exchange-traded options and certain 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, ETFs, ETNs, certain exchange-traded
options and certain futures from such markets and other entities. In
addition, the Exchange may obtain information regarding trading in the
Shares, ETFs, ETNs, certain exchange-traded options and certain futures
from markets and other entities that are members of ISG or with which
the Exchange has in place a comprehensive surveillance sharing
agreement. The Exchange is able to access from FINRA, as needed, trade
information for certain fixed income securities held by the Fund
reported to FINRA's TRACE. FINRA also can access data obtained from the
MSRB relating to certain municipal bond trading activity for
surveillance purposes in connection with trading in the Shares.
The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer

[[Page 37838]]

of the Shares that the NAV per Share will be calculated daily and that
the NAV and the Disclosed Portfolio will be made available to all
market participants at the same time. In addition, a large amount of
information is publicly available regarding the Fund and the Shares,
thereby promoting market transparency. The website for the Fund
includes a form of the prospectus for the Fund and additional data
relating to NAV and other applicable quantitative information. 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, and trading in the Shares will be
subject to NYSE Arca 8.600-E (d)(2)(D), which sets forth circumstances
under which trading in the Shares of the Fund may be halted. In
addition, as noted above, investors have ready access to information
regarding the Fund's holdings, the IIV, the Disclosed Portfolio, and
quotation and last sale information for the Shares. In the aggregate,
at least 90% of the weight of the Fund's holdings invested in futures,
exchange-traded options, and listed swaps shall, on both an initial and
continuing basis, consist of futures, options, and swaps for which the
Exchange may obtain information from other members or affiliates of the
ISG or for which the principal market is a market with which the
Exchange has a CSSA.
As described above, deviations from the generic requirements of
Commentary .01(a) are necessary for the Fund to achieve its investment
objective in a manner that is cost-effective and that maximizes
investors' returns. Further, the proposed alternative requirements are
narrowly tailored to allow the Fund to achieve its investment objective
in manner that is consistent with the principles of Section 6(b)(5) of
the Act. As a result, it is in the public interest to approve listing
and trading of Shares of the Fund on the Exchange pursuant to the
requirements set forth herein.
The Adviser represents that permitting limited investments in non-
agency, non-GSE and privately-issued mortgage-related and other asset-
backed securities, as described above, would be in the best interest of
the Fund's shareholders because such investments have the potential to
reduce the overall risk profile of the Fund's portfolio. In the
Adviser's view, such investments would reduce the Fund's risk with
respect to non-agency, non-GSE and privately-issued mortgage-related
and other asset-backed securities by diversifying the Fund's exposure
among borrowers of such debt issues. In addition, by allowing the Fund
to allocate up to 30% of the weight of its Fixed Income Securities
investments in such issues would afford the Fund greater flexibility to
invest in the most liquid available Fixed Income Securities issues, in
that such issues are expected to be as liquid, or more liquid, than
other possible Fund investments.
The Exchange also believes that it is appropriate and in the public
interest to approve listing and trading of Shares of the Fund on the
Exchange notwithstanding that the Fund would not meet the requirements
of Commentary .01(a)(1)(A) through (E) to Rule 8.600-E with respect to
the Fund's investments in non-exchange-traded open-end investment
company securities. Investments in such equity securities will not be
principal investments of the Fund. Such investments, which may include
mutual funds that invest, for example, principally in fixed income
securities, would be utilized to help the Fund meet its investment
objective and to equitize cash in the short term. Because such
securities have a net asset value based on the value of securities and
financial assets the investment company holds, the Exchange believes it
is both unnecessary and inappropriate to apply to such investment
company securities the criteria in Commentary .01(a)(1).
The Exchange notes that it would be difficult or impossible to
apply to non-exchange-traded investment company securities the generic
quantitative criteria (e.g., market capitalization, trading volume, or
portfolio criteria) in Commentary .01 (A) through (D) applicable to
U.S. Component Stocks. For example, the requirement for U.S. Component
Stocks in Commentary .01(a)(1)(B) that there be minimum monthly trading
volume of 250,000 shares, or minimum notional volume traded per month
of $25,000,000, averaged over the last six months is tailored to
exchange-traded securities (e.g., U.S. Component Stocks) and not to
mutual fund shares, which do not trade in the secondary market.
Moreover, application of such criteria would not serve the purpose
served with respect to U.S. Component Stocks, namely, to establish
minimum liquidity and diversification criteria for U.S. Component
Stocks held by series of Managed Fund Shares. Other than Commentary
.01(a)(1)(A) through (E) and Commentary.01(b)(5) to Rule 8.600-E, the
Fund's portfolio will meet all other requirements of Rule 8.600-E.
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
an additional type of actively managed ETF 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 relating to trading in the Shares and may obtain information
via ISG from other exchanges that are members of ISG or with which the
Exchange has entered into a CSSA. In addition, as noted above,
investors have ready access to information regarding the Fund's
holdings, the IIV, the Disclosed Portfolio, and quotation and last sale
information for the Shares.

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 an
issue of Managed Fund Shares that, through permitted use of an
increased level of non-agency ABS and MBS above that currently
permitted by the generic listing requirements of Commentary .01 to NYSE
Arca Rule 8.600-E, 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. Proceedings to Determine Whether to Approve or Disapprove SR-
NYSEArca-2018-25 and Grounds for Disapproval Under Consideration

The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Exchange Act \25\ to determine whether the proposed
rule change, as modified by Amendment No. 1, 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

[[Page 37839]]

below, the Commission seeks and encourages interested persons to
provide comments on the proposed rule change.
---------------------------------------------------------------------------

\25\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

Pursuant to Section 19(b)(2)(B) of the Exchange Act,\26\ the
Commission is providing notice of the grounds for disapproval under
consideration. The Commission is instituting proceedings to allow for
additional analysis of the proposal's consistency with Section 6(b)(5)
of the Exchange 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.\27\ In light of the portfolio's potential exposure to the
permitted investments identified above (including junior loans, ABS,
MBS, and interests in investment pools in particular), the Commission
seeks commenters' views on the sufficiency of the information provided
in the proposed rule change to support a determination that the listing
and trading of the Shares would be consistent with Section 6(b)(5) of
the Exchange Act as modified by Amendment No. 1. The Commission notes
that the Exchange proposes to exempt equity interests in investment
pools from all of the requirements of Commentary .01(a)(1) to NYSE Arca
Rule 8.600-E.In light of the portfolio's potential exposure to the
permitted investments identified above, the Commission seeks
commenters' views on the sufficiency of the information provided in the
proposed rule change to support a determination that the listing and
trading of the Shares would be consistent with Section 6(b)(5) of the
Exchange Act as modified by Amendment No. 1.
---------------------------------------------------------------------------

\26\ Id.
\27\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Procedure: Request for Written Comments

Interested persons are invited to submit written views, data, and
arguments concerning the foregoing, including whether the proposed rule
change as modified by Amendment No. 1 is consistent with Section
6(b)(5) or any other provision of the Exchange 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 under the Exchange Act,\28\ any
request for an opportunity to make an oral presentation.\29\
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\28\ 17 CFR 240.19b-4.
\29\ Section 19(b)(2) of the Exchange Act, as amended by the
Securities Acts Amendments of 1975, Pub. L. 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 August 23, 2018. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
September 6, 2018.
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-2018-25 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-2018-25.
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 website (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 website
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. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2018-25 and should
be submitted on or before August 23, 2018. Rebuttal comments should be
submitted by September 6, 2018.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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\30\ 17 CFR 200.30-3(a)(57).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2018-16536 Filed 8-1-18; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 37831

www.prc.gov, Docket Nos. MC2018–196, Commission a USPS Request to Add SUPPLEMENTARY INFORMATION: The
CP2018–274. Priority Mail Contract 456 to United States Postal Service® hereby
Competitive Product List. Documents gives notice that, pursuant to 39 U.S.C.
Elizabeth Reed,
are available at www.prc.gov, Docket 3642 and 3632(b)(3), on July 27, 2018,
Attorney, Corporate and Postal Business Law. Nos. MC2018–200, CP2018–278. it filed with the Postal Regulatory
[FR Doc. 2018–16525 Filed 8–1–18; 8:45 am] Commission a USPS Request to Add
Elizabeth Reed,
BILLING CODE 7710–12–P Priority Mail Express, Priority Mail, &
Attorney, Corporate and Postal Business Law. First-Class Package Service Contract 43
[FR Doc. 2018–16519 Filed 8–1–18; 8:45 am] to Competitive Product List. Documents
POSTAL SERVICE BILLING CODE 7710–12–P are available at www.prc.gov, Docket
Product Change—Parcel Select Nos. MC2018–198, CP2018–276.
Negotiated Service Agreement POSTAL SERVICE Elizabeth Reed,
AGENCY: Postal ServiceTM. Attorney, Corporate and Postal Business Law.
Product Change—Priority Mail [FR Doc. 2018–16522 Filed 8–1–18; 8:45 am]
ACTION: Notice. Negotiated Service Agreement BILLING CODE 7710–12–P
SUMMARY: The Postal Service gives AGENCY: Postal ServiceTM.
notice of filing a request with the Postal
ACTION: Notice.
Regulatory Commission to add a SECURITIES AND EXCHANGE
domestic shipping services contract to SUMMARY: The Postal Service gives COMMISSION
the list of Negotiated Service notice of filing a request with the Postal
Agreements in the Mail Classification Regulatory Commission to add a [Release No. 34–83733; File No. SR–
Schedule’s Competitive Products List. NYSEArca–2018–25]
domestic shipping services contract to
DATES: Date of notice required under 39 the list of Negotiated Service Self-Regulatory Organizations; NYSE
U.S.C. 3642(d)(1): August 2, 2018. Agreements in the Mail Classification Arca, Inc.; Notice of Filing of
FOR FURTHER INFORMATION CONTACT: Schedule’s Competitive Products List. Amendment No. 1 and Order Instituting
Elizabeth Reed, 202–268–3179. DATES: Date of required notice: August Proceedings To Determine Whether To
SUPPLEMENTARY INFORMATION: The 2, 2018. Approve or Disapprove a Proposed
United States Postal Service® hereby FOR FURTHER INFORMATION CONTACT: Rule Change as Modified by
gives notice that, pursuant to 39 U.S.C. Elizabeth Reed, 202–268–3179. Amendment No. 1 Thereto Regarding
3642 and 3632(b)(3), on July 27, 2018, the Continued Listing and Trading of
it filed with the Postal Regulatory SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby Shares of the Natixis Loomis Sayles
Commission a Request of the United Short Duration Income ETF
States Postal Service to Add Parcel gives notice that, pursuant to 39 U.S.C.
Select Contract 32 to Competitive 3642 and 3632(b)(3), on July 27, 2018, July 27, 2018.
Product List. Documents are available at it filed with the Postal Regulatory
Commission a USPS Request to Add I. Introduction
www.prc.gov, Docket Nos. MC2018–197,
CP2018–275. Priority Mail Contract 457 to On April 16, 2018, NYSE Arca, Inc.
Competitive Product List. Documents (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
Elizabeth Reed, are available at www.prc.gov, Docket with the Securities and Exchange
Attorney, Corporate and Postal Business Law. Nos. MC2018–201, CP2018–279. Commission (‘‘Commission’’), pursuant
[FR Doc. 2018–16520 Filed 8–1–18; 8:45 am]
Elizabeth Reed, to Section 19(b)(1) 1 of the Securities
BILLING CODE 7710–12–P Exchange Act of 1934 (‘‘Exchange
Attorney, Corporate and Postal Business Law.
Act’’) 2 and Rule 19b–4 thereunder,3 a
[FR Doc. 2018–16521 Filed 8–1–18; 8:45 am]
proposed rule change to continue listing
POSTAL SERVICE BILLING CODE 7710–12–P
and trading shares of the Natixis Loomis
Sayles Short Duration Income ETF
Product Change—Priority Mail under NYSE Arca Rule 8.600–E,
Negotiated Service Agreement POSTAL SERVICE
Managed Fund Shares.4 The proposed
AGENCY: Postal ServiceTM. Product Change—Priority Mail rule change was published for comment
ACTION: Notice. Express, Priority Mail, & First-Class in the Federal Register on May 3, 2018.5
Package Service Negotiated Service On June 5, 2018, the Commission
SUMMARY: The Postal Service gives Agreement extended the time period within which
notice of filing a request with the Postal to approve the proposed rule change,
Regulatory Commission to add a AGENCY: Postal ServiceTM. disapprove the proposed rule change, or
domestic shipping services contract to ACTION: Notice. institute proceedings to determine
the list of Negotiated Service whether to approve or disapprove the
Agreements in the Mail Classification SUMMARY: The Postal Service gives proposed rule change to August 1,
Schedule’s Competitive Products List. notice of filing a request with the Postal
DATES: Date of required notice: August Regulatory Commission to add a 1 15 U.S.C. 78s(b)(1).
2, 2018. domestic shipping services contract to 2 15 U.S.C. 78a.
daltland on DSKBBV9HB2PROD with NOTICES

3 17 CFR 240.19b–4.
FOR FURTHER INFORMATION CONTACT: the list of Negotiated Service
4 Currently, the Exchange lists and trades the
Elizabeth Reed, 202–268–3179. Agreements in the Mail Classification
shares pursuant to NYSE Arca Rule 8.600–E. As
SUPPLEMENTARY INFORMATION: The
Schedule’s Competitive Products List. discussed further below, the Exchange submitted
United States Postal Service® hereby DATES: Date of required notice: August this proposed rule change to permit the fund’s
2, 2018. portfolio to deviate from two of the ‘‘generic’’ listing
gives notice that, pursuant to 39 U.S.C. requirements applicable to Managed Fund Shares.
3642 and 3632(b)(3), on July 27, 2018, FOR FURTHER INFORMATION CONTACT: 5 See Securities Exchange Act Release No. 83122

it filed with the Postal Regulatory Elizabeth Reed, 202–268–3179. (April 27, 2018), 83 FR 19578. (‘‘Notice’’).

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Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 37839

below, the Commission seeks and any request for an opportunity to make personal identifying information from
encourages interested persons to an oral presentation.29 comment submissions. You should
provide comments on the proposed rule Interested persons are invited to submit only information that you wish
change. submit written data, views, and to make available publicly. All
Pursuant to Section 19(b)(2)(B) of the arguments regarding whether the submissions should refer to File
Exchange Act,26 the Commission is proposal should be approved or Number SR–NYSEArca-2018–25 and
providing notice of the grounds for disapproved by August 23, 2018. Any should be submitted on or before
disapproval under consideration. The person who wishes to file a rebuttal to August 23, 2018. Rebuttal comments
Commission is instituting proceedings any other person’s submission must file should be submitted by September 6,
to allow for additional analysis of the that rebuttal by September 6, 2018. 2018.
proposal’s consistency with Section Comments may be submitted by any
For the Commission, by the Division of
6(b)(5) of the Exchange Act, which of the following methods:
Trading and Markets, pursuant to delegated
requires, among other things, that the Electronic Comments authority.30
rules of a national securities exchange
be designed to prevent fraudulent and • Use the Commission’s internet Robert W. Errett,
comment form (http://www.sec.gov/ Deputy Secretary.
manipulative acts and practices, to
promote just and equitable principles of rules/sro.shtml); or [FR Doc. 2018–16536 Filed 8–1–18; 8:45 am]
trade, and to protect investors and the • Send an email to rule-comments@ BILLING CODE 8011–01–P
public interest.27 In light of the sec.gov. Please include File Number SR–
portfolio’s potential exposure to the NYSEArca–2018–25 on the subject line.
permitted investments identified above SECURITIES AND EXCHANGE
Paper Comments
(including junior loans, ABS, MBS, and COMMISSION
• Send paper comments in triplicate
interests in investment pools in
to Secretary, Securities and Exchange
particular), the Commission seeks [Release No. 34–83725; File No. SR–OCC–
Commission, 100 F Street NE, 2017–020]
commenters’ views on the sufficiency of
Washington, DC 20549–1090.
the information provided in the
proposed rule change to support a All submissions should refer to File Self-Regulatory Organizations; The
determination that the listing and Number SR–NYSEArca–2018–25. This Options Clearing Corporation; Notice
trading of the Shares would be file number should be included on the of Filing of Amendments No. 1 and 2
consistent with Section 6(b)(5) of the subject line if email is used. To help the to Proposed Rule Change Concerning
Exchange Act as modified by Commission process and review your Enhanced and New Tools for Recovery
Amendment No. 1. The Commission comments more efficiently, please use Scenarios
notes that the Exchange proposes to only one method. The Commission will
post all comments on the Commission’s July 27, 2018.
exempt equity interests in investment
pools from all of the requirements of internet website (http://www.sec.gov/ On December 18, 2017, The Options
Commentary .01(a)(1) to NYSE Arca rules/sro.shtml). Copies of the Clearing Corporation (‘‘OCC’’) filed with
Rule 8.600–E.In light of the portfolio’s submission, all subsequent the Securities and Exchange
potential exposure to the permitted amendments, all written statements Commission (‘‘Commission’’) proposed
investments identified above, the with respect to the proposed rule rule change SR–OCC–2017–020
Commission seeks commenters’ views change that are filed with the (‘‘Proposed Rule Change’’) pursuant to
on the sufficiency of the information Commission, and all written Section 19(b)(1) of the Securities
provided in the proposed rule change to communications relating to the Exchange Act of 1934 (‘‘Act’’),1 and
support a determination that the listing proposed rule change between the Rule 19b–4 thereunder,2 concerning
and trading of the Shares would be Commission and any person, other than enhanced and new tools for recovery
consistent with Section 6(b)(5) of the those that may be withheld from the scenarios.3 The Proposed Rule Change
Exchange Act as modified by public in accordance with the was published for comment in the
Amendment No. 1. provisions of 5 U.S.C. 552, will be Federal Register on December 26,
available for website viewing and 2017.4 On March 22, 2018, the
IV. Procedure: Request for Written printing in the Commission’s Public Commission instituted proceedings
Comments Reference Room, 100 F Street NE, under Section 19(b)(2)(B)(i) of the Act 5
Interested persons are invited to Washington, DC 20549 on official to determine whether to approve or
submit written views, data, and business days between the hours of
arguments concerning the foregoing, 10:00 a.m. and 3:00 p.m. Copies of the 30 17 CFR 200.30–3(a)(57).
including whether the proposed rule filing also will be available for 1 15 U.S.C. 78s(b)(1).
change as modified by Amendment No. inspection and copying at the principal 2 17 CFR 240.19b–4.

1 is consistent with Section 6(b)(5) or office of the Exchange. All comments 3 On December 8, 2017, OCC also filed this

received will be posted without change. proposal as an advance notice SR–OCC–2017–809
any other provision of the Exchange (‘‘Advance Notice’’) with the Commission pursuant
Act, or the rules and regulations Persons submitting comments are to Section 806(e)(1) of Title VIII of the Dodd-Frank
thereunder. Although there do not cautioned that we do not redact or edit Wall Street Reform and Consumer Protection Act,
appear to be any issues relevant to entitled the Payment, Clearing, and Settlement
29 Section 19(b)(2) of the Exchange Act, as Supervision Act of 2010 (12 U.S.C. 5465(e)(1)) and
approval or disapproval that would be Rule 19b–4(n)(1)(i) of the Act (17 CFR 240.19b–
amended by the Securities Acts Amendments of
facilitated by an oral presentation of
daltland on DSKBBV9HB2PROD with NOTICES

1975, Pub. L. 94–29 (June 4, 1975), grants the 4(n)(1)(i)). Notice of filing of the Advance Notice
views, data, and arguments, the Commission flexibility to determine what type of was published for comment in the Federal Register
Commission will consider, pursuant to proceeding—either oral or notice and opportunity on January 23, 2018. Securities Exchange Act
for written comments—is appropriate for Release No. 82513 (Jan. 17, 2018), 83 FR 3244 (Jan.
Rule 19b–4 under the Exchange Act,28 23, 2018) (SR–OCC–2017–809).
consideration of a particular proposal by a self-
4 Securities Exchange Act Release No. 82531 (Dec.
regulatory organization. See Securities Acts
26 Id.
Amendments of 1975, Senate Comm. on Banking, 19, 2017), 82 FR 61107 (Dec. 26, 2017) (SR–OCC–
27 15 U.S.C. 78f(b)(5). 2017–020) (‘‘Initial Filing’’).
Housing & Urban Affairs, S. Rep. No. 75, 94th
28 17 CFR 240.19b–4. Cong., 1st Sess. 30 (1975). 5 15 U.S.C. 78s(b)(2)(B)(i).

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Document Created: 2018-08-02 01:28:36
Document Modified: 2018-08-02 01:28:36

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		83 FR 37831