83_FR_46405 83 FR 46228 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Amendment No. 1 and Order Approving on an Accelerated Basis a Proposed Rule Change, as Modified by Amendment No. 1, Relating to the Continued Listing Criteria Applicable to the Shares of the iShares California AMT Free Muni Bond ETF and iShares New York AMT-Free Muni Bond ETF

83 FR 46228 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Amendment No. 1 and Order Approving on an Accelerated Basis a Proposed Rule Change, as Modified by Amendment No. 1, Relating to the Continued Listing Criteria Applicable to the Shares of the iShares California AMT Free Muni Bond ETF and iShares New York AMT-Free Muni Bond ETF

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 177 (September 12, 2018)

Page Range46228-46230
FR Document2018-19772

Federal Register, Volume 83 Issue 177 (Wednesday, September 12, 2018)
[Federal Register Volume 83, Number 177 (Wednesday, September 12, 2018)]
[Notices]
[Pages 46228-46230]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19772]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84049; File No. SR-NYSEArca-2018-38]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Amendment No. 1 and Order Approving on an Accelerated Basis a 
Proposed Rule Change, as Modified by Amendment No. 1, Relating to the 
Continued Listing Criteria Applicable to the Shares of the iShares 
California AMT Free Muni Bond ETF and iShares New York AMT-Free Muni 
Bond ETF

September 6, 2018.

I. Introduction

    On May 21, 2018, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
modify the continued listing criteria applicable to the shares 
(``Shares'') of the iShares California

[[Page 46229]]

AMT-Free Muni Bond ETF (``CA Fund'') and iShares New York AMT-Free Muni 
Bond ETF (``NY Fund'' and, together with the CA Fund, ``Funds''). The 
proposed rule change was published for comment in the Federal Register 
on June 11, 2018.\3\ On July 24, 2018, 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 September 5, 2018, the Exchange filed 
Amendment No. 1 to the proposed rule change,\6\ which superseded the 
proposed rule change as originally filed. The Commission received no 
comment letters on the proposed rule change. The Commission is 
publishing this notice to solicit comments on Amendment No. 1 from 
interested persons, and is approving the proposed rule change, as 
modified by Amendment No. 1, on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 83381 (June 5, 
2018), 83 FR 27042 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 83694, 83 FR 36641 
(July 30, 2018). The Commission designated September 9, 2018, as the 
date by which the Commission shall approve or disapprove, or 
institute proceedings to determine whether to disapprove, the 
proposed rule change.
    \6\ In Amendment No. 1, the Exchange (1) eliminated an issuer 
concentration requirement from the proposed continued listing 
criteria applicable to the Shares, (2) deleted the condition that 
would have required a change to the index methodology before the 
proposed continued listing criteria would apply, (3) modified its 
justification as to why the proposed rule change is consistent with 
the Act, and (4) made other technical changes. Amendment No. 1 is 
available on the Commission's website at: https://www.sec.gov/comments/sr-nysearca-2018-38/srnysearca201838-4307304-173215.pdf.
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II. Description of the Proposed Rule Change \7\
---------------------------------------------------------------------------

    \7\ Additional information regarding the Shares, Funds, and 
their underlying indexes is available in Amendment No. 1, supra note 
6.
---------------------------------------------------------------------------

    Blackrock Fund Advisors (``Adviser'') is the investment adviser for 
the Funds. Under normal market conditions, the CA Fund invests at least 
90% of its assets in the component securities of the S&P California 
AMT-Free Muni Bond Index (``CA Index''), which measures the performance 
of the investment-grade segment of the California municipal bond 
market.\8\ Similarly, under normal market conditions, the NY Fund 
invests at least 90% of its assets in the component securities of the 
S&P New York AMT-Free Muni Bond Index (``NY Index'' and, together with 
CA Index, ``Indexes''), which measures the performance of the 
investment-grade segment of the New York municipal bond market.\9\
---------------------------------------------------------------------------

    \8\ With respect to the remaining 10% of its assets, the CA Fund 
may invest in short-term debt instruments issued by state 
governments, municipalities or local authorities, cash, exchange-
traded U.S. Treasury futures, and municipal money market funds, as 
well as municipal bond securities not included in the CA Index, but 
which the Adviser believes will help the CA Fund track the CA Index.
    \9\ With respect to the remaining 10% of its assets, the NY Fund 
may invest in short-term debt instruments issued by state 
governments, municipalities or local authorities, cash, exchange-
traded U.S. Treasury futures, and municipal money market funds, as 
well as municipal bond securities not included in the NY Index, but 
which the Adviser believes will help the NY Fund track the NY Index.
---------------------------------------------------------------------------

    Currently, the Exchange lists and trades the Shares under NYSE Arca 
Rule 5.2-E(j)(3), which governs the listing and trading of Investment 
Company Units, and pursuant to an order approving the Exchange's 
proposal to list and trade the Shares.\10\ The representations made by 
the Exchange in support of that proposed rule change constitute 
continued listing requirements for the Shares.\11\ The Exchange, with 
this filing, now proposes to amend the continued listing requirements 
applicable to the Shares.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 82295 (December 12, 
2017), 82 FR 60056 (December 18, 2017) (File No. SR-NYSEArca-2017-
56) (``Listing Approval Order'').
    \11\ See NYSE Arca Rule 5.2-E(j)(3).
---------------------------------------------------------------------------

    Currently, for the Exchange to list and trade shares of the CA 
Fund, each bond in the CA Index must: (1) Be a constituent of an 
offering where the original offering amount of the constituent bonds in 
the aggregate was at least $100 million; (2) have a total minimum par 
amount of $25 million; and (3) maintain a total minimum par amount 
greater than or equal to $25 million as of the next rebalancing date. 
Further, the CA Index must include at least 500 component securities.
    The Exchange proposes to amend the continued listing requirements 
for the shares of the CA Fund such that: (1) At least 90% of the weight 
of the CA Index must consist of securities that have an outstanding par 
value of at least $15 million and were issued as part of a transaction 
of at least $100 million; and (2) the CA Index must contain at least 
500 component securities.
    Currently, for the Exchange to list and trade shares of the NY 
Fund, each bond in the NY Index must: (1) Be a constituent of an 
offering where the original offering amount of the constituent bonds in 
the aggregate was at least $100 million; (2) have a minimum total par 
amount of $25 million; and (3) maintain a minimum total par amount 
greater than or equal to $25 million as of the next rebalancing date. 
Further, the NY Index must include at least 500 component securities.
    The Exchange proposes to amend the continued listing requirements 
for the shares of the NY Fund such that: (1) At least 90% of the weight 
of the NY Index must consist of securities that have an outstanding par 
value of at least $5 million and were issued as part of a transaction 
of at least $20 million; and (2) the NY Index must contain at least 500 
component securities.
    The Exchange represents that, except for Commentary .02(a)(2) to 
NYSE Arca Rule 5.2-E(j)(3), the CA Index and NY Index each will 
continue to satisfy all of the requirements under NYSE Arca Rule 5.2-
E(j)(3).\12\
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    \12\ See Amendment No. 1, supra note 6.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change, as modified by Amendment No. 1, is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to a national securities exchange.\13\ In particular, the 
Commission finds that the proposal is consistent with Section 6(b)(5) 
of the Act,\14\ 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, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, to protect investors and the 
public interest. The proposed minimum outstanding par value and 
transaction size requirements for constituents of the Indexes are 
consistent with those approved by the Commission for similar 
products.\15\ Moreover, there is no change to the current continued 
listing criterion that each Index includes at least 500 component 
securities. Further, the Exchange represents that the CA Index and NY 
Index each will continue to satisfy all of the requirements under NYSE 
Arca Rule 5.2-E(j)(3) except for Commentary .02(a)(2) to NYSE Arca

[[Page 46230]]

Rule 5.2-E(j)(3).\16\ The Commission notes that the Exchange proposes 
no other changes to the Funds. Accordingly, the Commission believes 
that the proposed continued listing requirements are adequately 
designed to help deter manipulation of the Shares.
---------------------------------------------------------------------------

    \13\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ See Listing Approval Order, supra note 10 (approving the 
listing and trading of shares of the VanEck Vectors--AMT-Free Long 
Municipal Index and VanEck Vectors--High Yield Municipal Index ETFs, 
among other funds).
    \16\ See supra note 12 and accompanying text.
---------------------------------------------------------------------------

    For the foregoing reasons, the Commission finds that the proposed 
rule change, as modified by Amendment No. 1, is consistent with 
Sections 6(b)(5) and 11A of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.

IV. Solicitation of Comments on Amendment No. 1

    Interested persons are invited to submit written data, views, and 
arguments concerning Amendment No. 1. 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 rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2018-38 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-2018-38. 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 this filing will also 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-2018-38 and should be submitted 
on or before October 3, 2018.

V. Accelerated Approval of Proposed Rule Change, as Modified by 
Amendment No. 1

    The Commission finds good cause to approve the proposed rule 
change, as modified by Amendment No. 1, prior to the 30th day after the 
date of publication of notice of Amendment No. 1 in the Federal 
Register. Amendment No. 1 supplements the proposal by, among other 
things, eliminating an issuer concentration requirement from the 
proposed continued listing criteria applicable to the Shares and 
deleting the condition that would require a change to the index 
methodology before the proposed continued listing criteria would apply. 
The changes and additional information in Amendment No. 1 raise no 
novel issues and assist the Commission in finding that the proposal is 
consistent with the Act. Accordingly, the Commission finds good cause, 
pursuant to Section 19(b)(2) of the Exchange Act,\17\ to approve the 
proposed rule change, as modified by Amendment No. 1, on an accelerated 
basis.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\18\ that the proposed rule change (SR-NYSEArca-2018-38), as 
modified by Amendment No. 1 thereto, be, and hereby is, approved on an 
accelerated basis.
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    \18\ 15 U.S.C. 78f(b)(2).
    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-19772 Filed 9-11-18; 8:45 am]
 BILLING CODE 8011-01-P



                                               46228                   Federal Register / Vol. 83, No. 177 / Wednesday, September 12, 2018 / Notices

                                               investors with a broader choice of                      where there are adequate safeguards for               investors and will insure that applicants
                                               shareholder services. Applicants assert                 the investor and state that the same                  do not unfairly discriminate against any
                                               that the proposed closed-end                            policy considerations support                         holders of the class of securities to be
                                               investment company multiple class                       imposition of EWCs in the interval fund               purchased. Finally, applicants state that
                                               structure does not raise the concerns                   context. In addition, applicants state                the Funds’ imposition of asset-based
                                               underlying section 18 of the Act to any                 that EWCs may be necessary for the                    distribution and/or service fees is
                                               greater degree than open-end                            distributor to recover distribution costs.            consistent with the provisions, policies
                                               investment companies’ multiple class                    Applicants represent that any EWC                     and purposes of the Act and does not
                                               structures that are permitted by rule                   imposed by the Funds will comply with                 involve participation on a basis different
                                               18f–3 under the Act. Applicants state                   rule 6c–10 under the Act as if the rule               from or less advantageous than that of
                                               that each Fund will comply with the                     were applicable to closed-end                         other participants.
                                               provisions of rule 18f–3 as if it were an               investment companies. The Funds will
                                               open-end investment company.                            disclose EWCs in accordance with the                  Applicants’ Condition
                                                                                                       requirements of Form N–1A concerning                    Applicants agree that any order
                                               Early Withdrawal Charges                                                                                      granting the requested relief will be
                                                                                                       CDSLs.
                                                  1. Section 23(c) of the Act provides,                                                                      subject to the following condition:
                                               in relevant part, that no registered                    Asset-Based Distribution and/or Service                 Each Fund relying on the order will
                                               closed-end investment company shall                     Fees                                                  comply with the provisions of rules 6c–
                                               purchase securities of which it is the                     1. Section 17(d) of the Act and rule               10, 12b–1, 17d–3, 18f–3, 22d–1, and,
                                               issuer, except: (a) On a securities                     17d–1 under the Act prohibit an                       where applicable, 11a–3 under the Act,
                                               exchange or other open market; (b)                      affiliated person of a registered                     as amended from time to time, as if
                                               pursuant to tenders, after reasonable                   investment company, or an affiliated                  those rules applied to closed-end
                                               opportunity to submit tenders given to                  person of such person, acting as                      management investment companies,
                                               all holders of securities of the class to               principal, from participating in or                   and will comply with the FINRA Sales
                                               be purchased; or (c) under other                        effecting any transaction in connection               Charge Rule, as amended from time to
                                               circumstances as the Commission may                     with any joint enterprise or joint                    time, as if that rule applied to all closed-
                                               permit by rules and regulations or                      arrangement in which the investment                   end management investment
                                               orders for the protection of investors.                 company participates unless the                       companies.
                                                  2. Rule 23c–3 under the Act permits                  Commission issues an order permitting                   For the Commission, by the Division of
                                               an ‘‘interval fund’’ to make repurchase                 the transaction. In reviewing                         Investment Management, under delegated
                                               offers of between five and twenty-five                  applications submitted under section                  authority.
                                               percent of its outstanding shares at net                17(d) and rule 17d–1, the Commission                  Eduardo A. Aleman,
                                               asset value at periodic intervals                       considers whether the participation of                Assistant Secretary.
                                               pursuant to a fundamental policy of the                 the investment company in a joint
                                                                                                                                                             [FR Doc. 2018–19765 Filed 9–11–18; 8:45 am]
                                               interval fund. Rule 23c–3(b)(1) under                   enterprise or joint arrangement is
                                                                                                                                                             BILLING CODE 8011–01–P
                                               the Act permits an interval fund to                     consistent with the provisions, policies
                                               deduct from repurchase proceeds only a                  and purposes of the Act, and the extent
                                               repurchase fee, not to exceed two                       to which the participation is on a basis              SECURITIES AND EXCHANGE
                                               percent of the proceeds, that is paid to                different from or less advantageous than              COMMISSION
                                               the interval fund and is reasonably                     that of other participants.
                                               intended to compensate the fund for                        2. Rule 17d–3 under the Act provides               [Release No. 34–84049; File No. SR–
                                               expenses directly related to the                        an exemption from section 17(d) and                   NYSEArca–2018–38]
                                               repurchase.                                             rule 17d–1 to permit open-end
                                                  3. Section 23(c)(3) provides that the                investment companies to enter into                    Self-Regulatory Organizations; NYSE
                                               Commission may issue an order that                      distribution arrangements pursuant to                 Arca, Inc.; Notice of Filing of
                                               would permit a closed-end investment                    rule 12b–1 under the Act. Applicants                  Amendment No. 1 and Order
                                               company to repurchase its shares in                     request an order under section 17(d) and              Approving on an Accelerated Basis a
                                               circumstances in which the repurchase                   rule 17d–1 under the Act to the extent                Proposed Rule Change, as Modified by
                                               is made in a manner or on a basis that                  necessary to permit the Fund to impose                Amendment No. 1, Relating to the
                                               does not unfairly discriminate against                  asset-based distribution and/or service               Continued Listing Criteria Applicable
                                               any holders of the class or classes of                  fees. Applicants have agreed to comply                to the Shares of the iShares California
                                               securities to be purchased.                             with rules 12b–1 and 17d–3 as if those                AMT Free Muni Bond ETF and iShares
                                                  4. Applicants request relief under                   rules applied to closed-end investment                New York AMT-Free Muni Bond ETF
                                               section 6(c), discussed above, and                      companies, which they believe will                    September 6, 2018.
                                               section 23(c)(3) from rule 23c–3 to the                 resolve any concerns that might arise in
                                               extent necessary for the Funds to                       connection with a Fund financing the                  I. Introduction
                                               impose EWCs on shares of the Funds                      distribution of its shares through asset-                On May 21, 2018, NYSE Arca, Inc.
                                               submitted for repurchase that have been                 based distribution fees.                              (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
                                               held for less than a specified period.                     3. For the reasons stated above,                   with the Securities and Exchange
                                                  5. Applicants state that the EWCs they               applicants submit that the exemptions                 Commission (‘‘Commission’’), pursuant
                                               intend to impose are functionally                       requested under section 6(c) are                      to Section 19(b)(1) of the Securities
                                               similar to CDSLs imposed by open-end                    necessary and appropriate in the public               Exchange Act of 1934 (‘‘Act’’) 1 and Rule
daltland on DSKBBV9HB2PROD with NOTICES




                                               investment companies under rule 6c–10                   interest and are consistent with the                  19b–4 thereunder,2 a proposed rule
                                               under the Act. Rule 6c–10 permits open-                 protection of investors and the purposes              change to modify the continued listing
                                               end investment companies to impose                      fairly intended by the policy and                     criteria applicable to the shares
                                               CDSLs, subject to certain conditions.                   provisions of the Act. Applicants further             (‘‘Shares’’) of the iShares California
                                               Applicants note that rule 6c–10 is                      submit that the relief requested
                                               grounded in policy considerations                       pursuant to section 23(c)(3) will be                    1 15   U.S.C. 78s(b)(1).
                                               supporting the employment of CDSLs                      consistent with the protection of                       2 17   CFR 240.19b–4.



                                          VerDate Sep<11>2014   18:41 Sep 11, 2018   Jkt 244001   PO 00000   Frm 00093   Fmt 4703   Sfmt 4703   E:\FR\FM\12SEN1.SGM     12SEN1


                                                                        Federal Register / Vol. 83, No. 177 / Wednesday, September 12, 2018 / Notices                                                    46229

                                               AMT-Free Muni Bond ETF (‘‘CA Fund’’)                    at least 90% of its assets in the                       date. Further, the NY Index must
                                               and iShares New York AMT-Free Muni                      component securities of the S&P New                     include at least 500 component
                                               Bond ETF (‘‘NY Fund’’ and, together                     York AMT-Free Muni Bond Index (‘‘NY                     securities.
                                               with the CA Fund, ‘‘Funds’’). The                       Index’’ and, together with CA Index,                       The Exchange proposes to amend the
                                               proposed rule change was published for                  ‘‘Indexes’’), which measures the                        continued listing requirements for the
                                               comment in the Federal Register on                      performance of the investment-grade                     shares of the NY Fund such that: (1) At
                                               June 11, 2018.3 On July 24, 2018,                       segment of the New York municipal                       least 90% of the weight of the NY Index
                                               pursuant to Section 19(b)(2) of the Act,4               bond market.9                                           must consist of securities that have an
                                               the Commission designated a longer                         Currently, the Exchange lists and                    outstanding par value of at least $5
                                               period within which to approve the                      trades the Shares under NYSE Arca Rule                  million and were issued as part of a
                                               proposed rule change, disapprove the                    5.2–E(j)(3), which governs the listing                  transaction of at least $20 million; and
                                               proposed rule change, or institute                      and trading of Investment Company                       (2) the NY Index must contain at least
                                               proceedings to determine whether to                     Units, and pursuant to an order                         500 component securities.
                                               disapprove the proposed rule change.5                   approving the Exchange’s proposal to                       The Exchange represents that, except
                                               On September 5, 2018, the Exchange                      list and trade the Shares.10 The                        for Commentary .02(a)(2) to NYSE Arca
                                               filed Amendment No. 1 to the proposed                   representations made by the Exchange                    Rule 5.2–E(j)(3), the CA Index and NY
                                               rule change,6 which superseded the                      in support of that proposed rule change                 Index each will continue to satisfy all of
                                               proposed rule change as originally filed.               constitute continued listing                            the requirements under NYSE Arca Rule
                                               The Commission received no comment                      requirements for the Shares.11 The                      5.2–E(j)(3).12
                                               letters on the proposed rule change. The                Exchange, with this filing, now
                                               Commission is publishing this notice to                 proposes to amend the continued listing                 III. Discussion and Commission
                                               solicit comments on Amendment No. 1                     requirements applicable to the Shares.                  Findings
                                               from interested persons, and is                            Currently, for the Exchange to list and                 After careful review, the Commission
                                               approving the proposed rule change, as                  trade shares of the CA Fund, each bond                  finds that the proposed rule change, as
                                               modified by Amendment No. 1, on an                      in the CA Index must: (1) Be a                          modified by Amendment No. 1, is
                                               accelerated basis.                                      constituent of an offering where the                    consistent with the requirements of the
                                               II. Description of the Proposed Rule                    original offering amount of the                         Act and the rules and regulations
                                               Change 7                                                constituent bonds in the aggregate was                  thereunder applicable to a national
                                                                                                       at least $100 million; (2) have a total                 securities exchange.13 In particular, the
                                                  Blackrock Fund Advisors (‘‘Adviser’’)                minimum par amount of $25 million;                      Commission finds that the proposal is
                                               is the investment adviser for the Funds.                and (3) maintain a total minimum par                    consistent with Section 6(b)(5) of the
                                               Under normal market conditions, the                     amount greater than or equal to $25                     Act,14 which requires, among other
                                               CA Fund invests at least 90% of its                     million as of the next rebalancing date.                things, that the rules of a national
                                               assets in the component securities of the               Further, the CA Index must include at                   securities exchange be designed to
                                               S&P California AMT-Free Muni Bond                       least 500 component securities.                         prevent fraudulent and manipulative
                                               Index (‘‘CA Index’’), which measures                       The Exchange proposes to amend the                   acts and practices, to promote just and
                                               the performance of the investment-grade                 continued listing requirements for the                  equitable principles of trade, to foster
                                               segment of the California municipal                     shares of the CA Fund such that: (1) At                 cooperation and coordination with
                                               bond market.8 Similarly, under normal                   least 90% of the weight of the CA Index                 persons engaged in facilitating
                                               market conditions, the NY Fund invests                  must consist of securities that have an                 transactions in securities, to remove
                                                                                                       outstanding par value of at least $15                   impediments to and perfect the
                                                  3 See Securities Exchange Act Release No. 83381

                                               (June 5, 2018), 83 FR 27042 (‘‘Notice’’).
                                                                                                       million and were issued as part of a                    mechanism of a free and open market
                                                  4 15 U.S.C. 78s(b)(2).                               transaction of at least $100 million; and               and a national market system, and, in
                                                  5 See Securities Exchange Act Release No. 83694,     (2) the CA Index must contain at least                  general, to protect investors and the
                                               83 FR 36641 (July 30, 2018). The Commission             500 component securities.                               public interest. The proposed minimum
                                               designated September 9, 2018, as the date by which         Currently, for the Exchange to list and              outstanding par value and transaction
                                               the Commission shall approve or disapprove, or          trade shares of the NY Fund, each bond
                                               institute proceedings to determine whether to                                                                   size requirements for constituents of the
                                               disapprove, the proposed rule change.                   in the NY Index must: (1) Be a                          Indexes are consistent with those
                                                  6 In Amendment No. 1, the Exchange (1)               constituent of an offering where the                    approved by the Commission for similar
                                               eliminated an issuer concentration requirement          original offering amount of the                         products.15 Moreover, there is no
                                               from the proposed continued listing criteria            constituent bonds in the aggregate was
                                               applicable to the Shares, (2) deleted the condition                                                             change to the current continued listing
                                               that would have required a change to the index          at least $100 million; (2) have a                       criterion that each Index includes at
                                               methodology before the proposed continued listing       minimum total par amount of $25                         least 500 component securities. Further,
                                               criteria would apply, (3) modified its justification    million; and (3) maintain a minimum                     the Exchange represents that the CA
                                               as to why the proposed rule change is consistent        total par amount greater than or equal to
                                               with the Act, and (4) made other technical changes.                                                             Index and NY Index each will continue
                                               Amendment No. 1 is available on the Commission’s        $25 million as of the next rebalancing                  to satisfy all of the requirements under
                                               website at: https://www.sec.gov/comments/sr-                                                                    NYSE Arca Rule 5.2–E(j)(3) except for
                                               nysearca-2018-38/srnysearca201838-4307304-                 9 With respect to the remaining 10% of its assets,
                                                                                                                                                               Commentary .02(a)(2) to NYSE Arca
                                               173215.pdf.                                             the NY Fund may invest in short-term debt
                                                  7 Additional information regarding the Shares,       instruments issued by state governments,
                                                                                                                                                                 12 See Amendment No. 1, supra note 6.
                                               Funds, and their underlying indexes is available in     municipalities or local authorities, cash, exchange-
                                               Amendment No. 1, supra note 6.                          traded U.S. Treasury futures, and municipal money         13 Inapproving this proposed rule change, the
daltland on DSKBBV9HB2PROD with NOTICES




                                                  8 With respect to the remaining 10% of its assets,   market funds, as well as municipal bond securities      Commission has considered the proposed rule’s
                                               the CA Fund may invest in short-term debt               not included in the NY Index, but which the             impact on efficiency, competition, and capital
                                               instruments issued by state governments,                Adviser believes will help the NY Fund track the        formation. See 15 U.S.C. 78c(f).
                                               municipalities or local authorities, cash, exchange-    NY Index.                                                 14 15 U.S.C. 78f(b)(5).
                                                                                                          10 See Securities Exchange Act Release No. 82295
                                               traded U.S. Treasury futures, and municipal money                                                                 15 See Listing Approval Order, supra note 10

                                               market funds, as well as municipal bond securities      (December 12, 2017), 82 FR 60056 (December 18,          (approving the listing and trading of shares of the
                                               not included in the CA Index, but which the             2017) (File No. SR–NYSEArca–2017–56) (‘‘Listing         VanEck Vectors—AMT-Free Long Municipal Index
                                               Adviser believes will help the CA Fund track the        Approval Order’’).                                      and VanEck Vectors—High Yield Municipal Index
                                               CA Index.                                                  11 See NYSE Arca Rule 5.2–E(j)(3).                   ETFs, among other funds).



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                                               46230                     Federal Register / Vol. 83, No. 177 / Wednesday, September 12, 2018 / Notices

                                               Rule 5.2–E(j)(3).16 The Commission                        Persons submitting comments are                       SECURITIES AND EXCHANGE
                                               notes that the Exchange proposes no                       cautioned that we do not redact or edit               COMMISSION
                                               other changes to the Funds.                               personal identifying information from
                                                                                                                                                               [Release No. 34–84045; File No. SR–CBOE–
                                               Accordingly, the Commission believes                      comment submissions. You should                       2018–062]
                                               that the proposed continued listing                       submit only information that you wish
                                               requirements are adequately designed to                   to make available publicly. All                       Self-Regulatory Organizations; Cboe
                                               help deter manipulation of the Shares.                    submissions should refer to File                      Exchange, Inc.; Notice of Filing of a
                                                 For the foregoing reasons, the                          Number SR–NYSEArca–2018–38 and                        Proposed Rule Change To Amend Rule
                                               Commission finds that the proposed                                                                              6.2, Interpretation and Policy .01
                                                                                                         should be submitted on or before
                                               rule change, as modified by Amendment                                                                           Concerning Strategy Orders
                                                                                                         October 3, 2018.
                                               No. 1, is consistent with Sections 6(b)(5)
                                               and 11A of the Act and the rules and                      V. Accelerated Approval of Proposed                   September 6, 2018.
                                               regulations thereunder applicable to a                    Rule Change, as Modified by                              Pursuant to Section 19(b)(1) of the
                                               national securities exchange.                             Amendment No. 1                                       Securities Exchange Act of 1934
                                               IV. Solicitation of Comments on                                                                                 (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                                                                            The Commission finds good cause to                 notice is hereby given that on August
                                               Amendment No. 1
                                                                                                         approve the proposed rule change, as                  24, 2018, Cboe Exchange, Inc.
                                                  Interested persons are invited to                      modified by Amendment No. 1, prior to                 (‘‘Exchange’’ or ‘‘Cboe Options’’) filed
                                               submit written data, views, and                           the 30th day after the date of                        with the Securities and Exchange
                                               arguments concerning Amendment No.                        publication of notice of Amendment No.                Commission (‘‘Commission’’) the
                                               1. Comments may be submitted by any                       1 in the Federal Register. Amendment                  proposed rule change as described in
                                               of the following methods:                                 No. 1 supplements the proposal by,                    Items I, II, and III below, which Items
                                               Electronic Comments                                       among other things, eliminating an                    have been prepared by the Exchange.
                                                                                                         issuer concentration requirement from                 The Commission is publishing this
                                                 • Use the Commission’s internet
                                                                                                         the proposed continued listing criteria               notice to solicit comments on the
                                               comment form (http://www.sec.gov/
                                                                                                         applicable to the Shares and deleting                 proposed rule change from interested
                                               rules/sro.shtml); or
                                                 • Send an email to rule-comments@                       the condition that would require a                    persons.
                                               sec.gov. Please include File Number SR–                   change to the index methodology before                I. Self-Regulatory Organization’s
                                               NYSEArca–2018–38 on the subject line.                     the proposed continued listing criteria               Statement of the Terms of Substance of
                                                                                                         would apply. The changes and                          the Proposed Rule Change
                                               Paper Comments
                                                                                                         additional information in Amendment
                                                  • Send paper comments in triplicate                                                                             Cboe Options proposes a rule change
                                                                                                         No. 1 raise no novel issues and assist
                                               to Secretary, Securities and Exchange                                                                           to amend and clarify the definition of a
                                                                                                         the Commission in finding that the                    strategy order, clarify other definitions
                                               Commission, 100 F Street NE,                              proposal is consistent with the Act.
                                               Washington, DC 20549–1090.                                                                                      related to the modified HOSS
                                                                                                         Accordingly, the Commission finds                     procedure, and permit the entry of
                                               All submissions should refer to File                      good cause, pursuant to Section 19(b)(2)
                                               Number SR–NYSEArca–2018–38. This                                                                                orders that offset imbalances after the
                                                                                                         of the Exchange Act,17 to approve the                 strategy order cut-off time.
                                               file number should be included on the                     proposed rule change, as modified by
                                               subject line if email is used. To help the                                                                      (additions are italicized; deletions are
                                                                                                         Amendment No. 1, on an accelerated                    [bracketed])
                                               Commission process and review your
                                                                                                         basis.
                                               comments more efficiently, please use                                                                           *     *     *     *     *
                                               only one method. The Commission will                      VI. Conclusion
                                                                                                                                                               Rules of Cboe Exchange, Inc.
                                               post all comments on the Commission’s
                                               internet website (http://www.sec.gov/                       It is therefore ordered, pursuant to                *          *       *      *    *
                                               rules/sro.shtml). Copies of the                           Section 19(b)(2) of the Act,18 that the
                                                                                                         proposed rule change (SR–NYSEArca–                    Rule 6.2. Hybrid Opening (and
                                               submission, all subsequent                                                                                      Sometimes Closing) System (‘‘HOSS’’)
                                               amendments, all written statements                        2018–38), as modified by Amendment
                                               with respect to the proposed rule                         No. 1 thereto, be, and hereby is,                        (a)–(h) No change.
                                               change that are filed with the                            approved on an accelerated basis.                     . . . Interpretations and Policies:
                                               Commission, and all written                                 For the Commission, by the Division of                 .01 Modified Opening Procedure
                                               communications relating to the                            Trading and Markets, pursuant to delegated            for Series Used to Calculate the
                                               proposed rule change between the                          authority.19                                          Exercise[/] or Final Settlement Value[s]
                                               Commission and any person, other than                                                                           of Expiring Volatility Index[es]
                                                                                                         Eduardo A. Aleman,
                                               those that may be withheld from the                                                                             Derivatives.
                                               public in accordance with the                             Assistant Secretary.
                                                                                                                                                                  (a) Definitions. For purposes of this
                                               provisions of 5 U.S.C. 552, will be                       [FR Doc. 2018–19772 Filed 9–11–18; 8:45 am]
                                                                                                                                                               Interpretation and Policy .01, the
                                               available for website viewing and                         BILLING CODE 8011–01–P                                following terms have the meanings
                                               printing in the Commission’s Public                                                                             below:
                                               Reference Room, 100 F Street NE,
                                               Washington, DC 20549, on official                                                                               Volatility Index Derivatives
                                               business days between the hours of                                                                                The term ‘‘volatility index
daltland on DSKBBV9HB2PROD with NOTICES




                                               10:00 a.m. and 3:00 p.m. Copies of this                                                                         derivatives’’ means volatility index
                                               filing will also be available for                                                                               options listed for trading on the
                                               inspection and copying at the principal                                                                         Exchange (as determined under Rule
                                               office of the Exchange. All comments                                                                            24.9(a)(5) and (6)), (security) futures
                                               received will be posted without change.                     17 15 U.S.C. 78s(b)(2).
                                                                                                           18 15 U.S.C. 78f(b)(2).                                 1 15   U.S.C. 78s(b)(1).
                                                 16 See   supra note 12 and accompanying text.             19 17 CFR 200.30–3(a)(12).                              2 17   CFR 240.19b–4.



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Document Created: 2018-09-12 02:06:18
Document Modified: 2018-09-12 02:06:18
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 Citation83 FR 46228 

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