64614 Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices 

8 17 CFR 200.30–3(a)(12). 

1 15 U.S.C.78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4An open-end investment company that issues 

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. 

5The Commission previously has approved a 

proposed rule change to facilitate listing and 

trading of Shares of the Fund on the Exchange in 

Securities Exchange Act Release No. 82295 

(December 12, 2017), 82 FR 60056 (December 18, 

2017) (SR–NYSEArca–2017–56) (Notice of Filing of 

Amendment No. 3 and Order Granting Accelerated 

Approval of a Proposed Rule Change, as Modified 

by Amendment No. 3, to List and Trade Shares of 

Twelve Series of Investment Company Units 

Pursuant to NYSE Arca Rule 5.2–E(j)(3)) (‘‘Approval 

Order’’). See also, Amendment 3 to SR–NYSEArca– 

2017–56 at https://www.sec.gov/comments/srnysearca-2017-56/nysearca201756-2714674- 

161523.pdf. In addition, the Commission also has 

approved other proposed rule changes relating to 

listing and trading of funds based on municipal 

bond indexes. See, e.g., Securities Exchange Act 

Release Nos. 67985 (October 4, 2012), 77 FR 61804 

(October 11, 2012) (SR–NYSEArca–2012–92) (order 

approving proposed rule change to list and trade 

the iShares 2018 S&P AMT-Free Municipal Series 

and iShares 2019 S&P AMT-Free Municipal Series 

under NYSE Arca Rule 5.2(j)(3), Commentary .02); 

72523 (July 2, 2014), 79 FR 39016 (July 9, 2014) 

(SR–NYSEArca–2014–37) (order approving 

proposed rule change to list and trade iShares 2020 

S&P AMT-Free Municipal Series under NYSE Arca 

Rule 5.2(j)(3), Commentary .02); and 75468 (July 16, 

2015), 80 FR 43500 (July 22, 2015) (SR–NYSEArca– 

2015–25) (order approving proposed rule change to 

list and trade the iShares iBonds Dec 2021 AMTFree Muni Bond ETF and iShares iBonds Dec 2022 

AMT-Free Muni Bond ETF under NYSE Arca Rule 

5.2(j)(3), Commentary .02); 63881 (February 9, 

2011), 76 FR 9065 (February 16, 2011) (SR– 

NYSEArca–2010–120) (order approving proposed 

rule change to list and trade shares of the SPDR 

Nuveen S&P High Yield Municipal Bond Fund 

under Commentary .02 of NYSE Arca Rule 5.2– 

E(j)(3)). The Commission has issued notices of filing 

and immediate effectiveness of proposed rule 

changes relating to certain series of Units under 

NYSE Arca Rule 5.2–E(j)(3) and Managed Fund 

Shares under NYSE Arca Rule 8.600–E. See, e.g., 

Securities Exchange Act Release Nos. 83982 

(August 29, 2018), 83 FR 45168 (September 5, 2018) 

(SR–NYSEArca–2018–62) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

Relating to Listing and Trading of Shares of the 

American Century Diversified Municipal Bond ETF 

under NYSE Arca Rule 8.600–E); 84379 (October 5, 

2018), 83 FR 51724 (October 12, 2018) (SR– 

NYSEArca–2018–73) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

Relating to Listing and Trading of Shares of the 

First Trust Short Duration Managed Municipal ETF 

under NYSE Arca Rule 8.600–E); 84381 (October 5, 

2018), 83 FR 51111752 (October 12, 2018) (SR– 

NYSEArca–2018–72) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

Relating to Listing and Trading of Shares of the 

First Trust Ultra Short Duration Municipal ETF 

under NYSE Arca Rule 8.600–E); 84396 (October 

10, 2018), 83 FR 52266 (October 16, 2018) (SR– 

NYSEArca–2018–70) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

Relating to Listing and Trading of Shares of the 

iShares iBond Dec 2026 Term Muni Bond ETF 

Under Commentary .02 to NYSE Arca Rule 5.2– 

E(j)(3)). 

6The Trust is registered under the Investment 

Company Act of 1940 (15 U.S.C. 80a–1) (‘‘1940 

Act’’). On October 31, 2018, the Trust filed with the 

Commission an amendment to its registration 

statement on Form N–1A under the Securities Act 

of 1933 (15 U.S.C. 77a) (‘‘Securities Act’’), and 

under the 1940 Act relating to the Fund (File Nos. 

333–57793 and 811–08839) (‘‘Registration 

Statement’’). The description of the operation of the 

Trust and the Fund herein is based, in part, on the 

Registration Statement and the Prospectus 

Supplement. 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. 29524 (December 13, 

2010) (File No. 812–13487) (‘‘Exemptive Order’’). 

7The Trust represents that it will not implement 

the proposed change to the index underlying the 

Fund until this proposed rule change is effective 

and operative. 

be submitted on or before January 7, 

2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27202 Filed 12–14–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84786; File No. SR– 

NYSEArca-2018–88] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Reflect a Change to 

the Benchmark Index of the SPDR 

Nuveen Bloomberg Barclays Municipal 

Bond ETF 

December 11, 2018. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on 

November 28, 2018, NYSE Arca, Inc. 

(the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to reflect a 

change to the benchmark index for the 

SPDR Nuveen Bloomberg Barclays 

Municipal Bond ETF, shares of which 

are currently listed and traded on the 

Exchange pursuant to NYSE Arca Rule 

5.2–E(j)(3), Commentary .02. The 

proposed rule change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to reflect a 

change to the benchmark index for the 

SPDR Nuveen Bloomberg Barclays 

Municipal Bond ETF (the ‘‘Fund’’), 

shares (‘‘Shares’’) of which are currently 

listed and traded on the Exchange 

pursuant to NYSE Arca Rule 5.2–E(j)(3), 

Commentary .02, which governs the 

listing and trading of Investment 

Company Units (‘‘Units’’) 4 based on 

fixed income securities indexes.5 The 

Fund is a series of the SPDR Series 

Trust (‘‘Trust’’). 

As discussed below, the Exchange is 

submitting this proposed rule change to 

change the listing requirements 

applicable to the Fund as set forth in the 

Approval Order. Specifically, the 

Exchange proposes to change the 

benchmark index for the Fund to the 

‘‘New Index’’ (as defined below). 

Description of the Shares and the Fund 

As stated in the Approval Order, the 

Fund seeks to provide investment 

results that, before fees and expenses, 

correspond generally to the price and 

yield performance of the Bloomberg 

Barclays Municipal Managed Money 

Index (‘‘Current Index’’) which tracks 

the U.S. municipal bond market. The 

Trust, in a November 6, 2018 

supplement to the Fund’s prospectus 

(‘‘Prospectus Supplement’’), stated that, 

effective December 3, 2018, the new 

benchmark index for the Fund will be 

the Bloomberg Barclays Municipal 

Managed Money 1–25 Years Index 

(‘‘New Index’’).6 The New Index is the 

sub-set of the Current Index with 

effective maturities of 1–25 years. 7 The 


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8The term ‘‘normal market conditions’’ includes, 

but is not limited to, the absence of trading halts 

in the applicable financial markets generally; 

operational issues (e.g., systems failure) causing 

dissemination of inaccurate market information; or 

force majeure type events such as natural or 

manmade disaster, act of God, armed conflict, act 

of terrorism, riot or labor disruption or any similar 

intervening circumstance. 

9See note 5, supra. 

10Commentary .02(a)(2) provides that Fixed 

Income Security components that in aggregate 

account for at least 75% of the Fixed Income 

Securities portion of the weight of the index or 

portfolio each shall have a minimum original 

principal amount outstanding of $100 million or 

more. 

11 17 CFR 240.10A–3. 

12The IIV will be widely disseminated by one or 

more major market data vendors at least every 15 

seconds during the Exchange’s Core Trading 

Session (normally, 9:30 a.m. to 4:00 p.m., E.T. 

Currently, it is the Exchange’s understanding that 

several major market data vendors display and/or 

make widely available IIV taken from CTA or other 

data feeds. 

13See, e.g., Securities Exchange Act Release Nos. 

55783 (May 17, 2007), 72 FR 29194 (May 24, 2007) 

(SR–NYSEArca–2007–36) (order approving NYSE 

Arca generic listing standards for Units based on a 

fixed income index); 44551 (July 12, 2001), 66 FR 

37716 (July 19, 2001) (SR–PCX–2001–14) (order 

approving generic listing standards for Units and 

Portfolio Depositary Receipts); 41983 (October 6, 

1999), 64 FR 56008 (October 15, 1999) (SR–PCX– 

98–29) (order approving rules for listing and trading 

of Units). 

Exchange believes it is appropriate to 

facilitate the continued listing and 

trading of Shares of the Fund because, 

as described below, the Fund will be 

based on a broad-based index of fixed 

income municipal bond securities that 

is not readily susceptible to 

manipulation. As noted in Amendment 

3 to SR–NYSEArca–2017–56, the Fund 

listed on the Exchange prior to 2010. 

Pursuant to NYSE Arca Rule 5.2– 

E(j)(3), the Exchange proposed to 

facilitate the listing and trading of 

certain series of Investment Company 

Units that do not otherwise meet the 

standards set forth in Commentary.02 to 

Rule 5.2–E(j)(3). Specifically, the 

Exchange proposed to facilitate the 

listing and trading of the certain series 

of Investment Company Units, 

including the Fund, based on a 

multistate index of fixed income 

municipal bond securities. 

According to the Prospectus 

Supplement, under normal market 

conditions,8 the Fund generally will 

invest substantially all, but at least 80%, 

of its total assets in the securities 

comprising the New Index or in 

securities that the Nuveen Asset 

Management, LLC (the Fund’s ‘‘SubAdviser’’) determines have economic 

characteristics that are substantially 

identical to the economic characteristics 

of the securities that comprise the New 

Index. In addition, in seeking to track 

the New Index, the Fund may invest in 

debt securities that are not included in 

the New Index, cash and cash 

equivalents or money market 

instruments, such as repurchase 

agreements and money market funds 

(including money market funds advised 

by SSGA Funds Management, Inc. 

(‘‘SSGA FM’’ or the ‘‘Adviser’’), the 

investment adviser to the Fund. 

With respect to the remaining 20% of 

its assets, the Fund may invest in debt 

securities that are not included in the 

New Index, cash and cash equivalents 

or money market instruments, such as 

repurchase agreements and money 

market funds, commercial paper, foreign 

currency transactions, reverse 

repurchase agreements, securities of 

other investment companies, exchangetraded futures on Treasuries or 

Eurodollars (all such exchange-traded 

futures contracts will be traded on an 

exchange that is a member of the 

Intermarket Surveillance Group (‘‘ISG’’) 

or with which the Exchange has in place 

a comprehensive surveillance sharing 

agreement), U.S. exchange-traded or 

over-the-counter (‘‘OTC’’) put and call 

options contracts and exchange-traded 

or OTC swap agreements (including 

interest rate swaps, total return swaps, 

excess return swaps and credit default 

swaps) and treasury-inflation protected 

securities of the U.S. Treasury as well as 

major governments and emerging 

market countries. 

The New Index is designed to track 

the U.S. fully tax-exempt bond market. 

The New Index includes state and local 

general obligation bonds, revenue 

bonds, pre-refunded bonds, and insured 

bonds. The New Index is comprised of 

tax-exempt municipal securities issued 

by states, cities, counties, districts and 

their respective agencies. The New 

Index also includes municipal lease 

obligations, which are securities issued 

by state and local governments and 

authorities to finance the acquisition of 

equipment and facilities. 

For informational purposes, as of 

November 1, 2018, there were 

approximately 21,478 securities in the 

New Index from issuers in 49 different 

states or U.S. territories. The most 

heavily weighted security in the New 

Index represented less than 0.11% of 

the total weight of the New Index and 

the aggregate weight of the top five most 

heavily weighted securities in the New 

Index represented approximately 0.48% 

of the total weight of the New Index. 

Approximately 10% of the weight of the 

components in the New Index had a 

minimum original principal amount 

outstanding of $100 million or more. In 

addition, the total dollar amount 

outstanding of issues in the New Index 

was approximately $505 billion and the 

average dollar amount outstanding of 

issues in the New Index was 

approximately $23.2 million. 

Requirement for New Index 

Constituents 

On a continuous basis, (1) at least 

90% of the weight of the New Index will 

be comprised of securities that have an 

outstanding par value of at least $7 

million and were issued as part of a 

transaction of at least $75 million, and 

(2) the New Index will include at least 

500 components. 

The Exchange notes that, in the 

Approval Order, the Commission 

approved Exchange listing and trading 

of Units of the Fund for which at least 

90% of the weight of Current Index will 

be comprised of securities that have an 

outstanding par value of at least $7 

million and were issued as part of a 

transaction of at least $75 million, and 

that included at least 500 components.9

In addition, the Exchange represents 

that: (1) Except for Commentary 

.02(a)(2) to Rule 5.2–E(j)(3),10 the New 

Index currently satisfies all of the 

generic listing standards under NYSE 

Arca Rule 5.2–E(j)(3); (2) the continued 

listing standards under Commentary .02 

to NYSE Arca Rule 5.2–E(j)(3), as 

applicable to Units based on fixed 

income securities, will apply to the 

Shares of the Fund; and (3) the issuer of 

the Fund is required to comply with 

Rule 10A–3 11 under the Act for the 

initial and continued listing of the 

Shares. The Exchange represents that 

the Fund will comply with all other 

requirements applicable to Units, 

including, but not limited to, 

requirements relating to the 

dissemination of key information such 

as the value of the New Index and the 

Intraday Indicative Value (‘‘IIV’’),12

rules governing the trading of equity 

securities, trading hours, trading halts, 

surveillance, information barriers and 

the Information Bulletin, as set forth in 

the Exchange rules applicable to Units 

and prior Commission orders approving 

the generic listing rules applicable to 

the listing and trading of Units.13

Additional Information 

The current value of the New Index 

will be widely disseminated by one or 

more major market data vendors at least 

once per day, as required by 

Commentary .02(b)(ii) to NYSE Arca 

Rule 5.2–E(j)(3). The portfolio of 

securities held by the Fund will be 

disclosed daily on the Fund’s website 

www.spdrs.com. 


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14FINRA conducts cross-market surveillances on 

behalf of the Exchange pursuant to a regulatory 

services agreement. The Exchange is responsible for 

FINRA’s performance under this regulatory services 

agreement. 

15 15 U.S.C. 78f. 

16 15 U.S.C. 78f(b)(5). 

17FINRA conducts cross-market surveillances on 

behalf of the Exchange pursuant to a regulatory 

services agreement. The Exchange is responsible for 

FINRA’s performance under this regulatory services 

agreement. 

Availability of Information 

On each business day, the Fund will 

disclose on its website (www.spdrs.com) 

the portfolio that will form the basis for 

the Fund’s calculation of NAV at the 

end of the business day. 

On a daily basis, the Fund will 

disclose for each portfolio security or 

other financial instrument of the Fund 

the following information on the Fund’s 

website: Ticker symbol (if applicable), 

name of security and financial 

instrument, a common identifier such as 

CUSIP or ISIN (if applicable), number of 

shares (if applicable), and dollar value 

of securities and financial instruments 

held in the portfolio, and percentage 

weighting of the security and financial 

instrument in the portfolio. The website 

information will be publicly available at 

no charge. The current value of the New 

Index will be widely disseminated by 

one or more major market data vendors 

at least once per day, as required by 

NYSE Arca Rule 5.2–E(j)(3), 

Commentary .02 (b)(ii). 

The IIV for Shares of the Fund will be 

disseminated by one or more major 

market data vendors, updated at least 

every 15 seconds during the Exchange’s 

Core Trading Session, as required by 

NYSE Arca Rule 5.2–E(j)(3), 

Commentary .02(c). The current value of 

the New Index would be widely 

disseminated by one or more major 

market data vendors at least once per 

day, as required by NYSE Arca Rule 

5.2–(j)(3), Commentary .02 (b)(ii). In 

addition, the portfolio of securities held 

by the Fund will be disclosed daily on 

the Fund’s website. 

Investors can also obtain the Trust’s 

Statement of Additional Information 

(‘‘SAI’’), the Fund’s Shareholder 

Reports, and its Form N–CSR and Form 

N–SAR, filed twice a year. The Trust’s 

SAI and Shareholder Reports are 

available free upon request from the 

Trust, and those documents and the 

Form N–CSR and Form N–SAR may be 

viewed on-screen or downloaded from 

the Commission’s website at 

www.sec.gov. 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 of the Fund will be 

available via the Consolidated Tape 

Association (‘‘CTA’’) high speed line. 

Quotation information for investment 

company securities may be obtained 

through nationally recognized pricing 

services through subscription 

agreements or from brokers and dealers 

who make markets in such securities. 

Price information regarding municipal 

bonds is available from third party 

pricing services and major market data 

vendors. Trade price and other 

information relating to municipal bonds 

is available through the Municipal 

Securities Rulemaking Board’s 

Electronic Municipal Market Access 

(‘‘EMMA’’) system. 

Quotation information for OTC swaps 

agreements may be obtained from 

brokers and dealers who make markets 

in such instruments. Quotation 

information for exchange-traded swaps, 

futures and options will be available 

from the applicable exchange and/or 

major market vendors. 

Surveillance 

The Exchange represents that trading 

in the Shares of the Fund will be subject 

to the existing trading surveillances, 

administered by the Financial Industry 

Regulatory Authority (‘‘FINRA’’) on 

behalf of the Exchange, or by regulatory 

staff 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 of the Fund in all 

trading sessions and to deter and detect 

violations of Exchange rules and federal 

securities laws applicable to trading on 

the Exchange.14

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, certain futures 

and certain options 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, certain futures 

and certain options from such markets 

and other entities. In addition, the 

Exchange may obtain information 

regarding trading in the Shares, certain 

futures and certain options from 

markets and other entities that are 

members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement. FINRA 

also can access data obtained from the 

Municipal Securities Rulemaking Board 

relating to municipal bond trading 

activity for surveillance purposes in 

connection with trading in the Shares. 

The Exchange represents that at least 

90% of the weight of Fund holdings 

invested in exchange-traded futures 

contracts and exchange-traded options 

will be traded on an exchange that is a 

member of the ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with Section 6(b) 

of the Act 15 in general and Section 

6(b)(5) of the Act 16 in particular in that 

it is 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 Exchange believes that the 

proposed rule change is designed to 

prevent fraudulent and manipulative 

acts and practices in that the Shares of 

the Fund will be listed and traded on 

the Exchange pursuant to the initial and 

continued listing criteria in NYSE Arca 

Rule 5.2–E(j)(3), except for the 

requirement in Commentary .02(a)(2) 

that the component fixed income 

securities, in the aggregate, account for 

at least 75% of the weight of the index 

each shall have a minimum principal 

amount outstanding of $100 million or 

more. 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 FINRA on behalf of the Exchange, 

which are designed to detect violations 

of Exchange rules and federal securities 

laws applicable to trading on the 

Exchange.17 The Exchange represents 

that these procedures are adequate to 

properly monitor Exchange trading of 


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18Commentary .02(a)(4) to NYSE Arca Rule 5.2– 

E(j)(3) provides that no component fixed-income 

security (excluding Treasury Securities and GSE 

Securities, as defined therein) shall represent more 

than 30% of the weight of the index or portfolio, 

and the five most heavily weighted component 

fixed-income securities in the index or portfolio 

shall not in the aggregate account for more than 

65% of the weight of the index or portfolio. 19See note 5, supra. 20 15 U.S.C. 78f(b)(5). 

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 Exchange or FINRA, on behalf of 

the Exchange, or both, will 

communicate as needed regarding 

trading in the Shares, certain futures 

and certain options with other markets 

that are members of the ISG. In addition, 

the Exchange will communicate as 

needed regarding trading in the Shares, 

certain futures and certain options with 

other markets that are members of the 

ISG or with which the Exchange has in 

place a comprehensive surveillance 

sharing agreement. FINRA also can 

access data obtained from the Municipal 

Securities Rulemaking Board relating to 

municipal bond trading activity for 

surveillance purposes in connection 

with trading in the Shares of the Fund. 

At least 90% of the weight of Fund 

holdings invested in exchange-traded 

futures contracts and exchange-traded 

options will be traded on an exchange 

that is a member of the ISG or with 

which the Exchange has in place a 

comprehensive surveillance sharing 

agreement. 

As discussed above, the Exchange 

believes that the New Index is 

sufficiently broad-based to deter 

potential manipulation. For 

informational purposes, as of November 

1, 2018, there were approximately 

21,478 securities in the New Index from 

issuers in 49 different states or U.S. 

territories. The most heavily weighted 

security in the New Index represented 

less than 0.11% of the total weight of 

the New Index and the aggregate weight 

of the top five most heavily weighted 

securities in the New Index represented 

approximately 0.48% of the total weight 

of the New index. Approximately 10% 

of the weight of the components in the 

New Index had a minimum original 

principal amount outstanding of $100 

million or more. In addition, the total 

dollar amount outstanding of issues in 

the New Index was approximately $505 

billion and the average dollar amount 

outstanding of issues in the New Index 

was approximately $23.2 million.18

Therefore, the Exchange believes that 

the New Index is sufficiently broadbased to deter potential manipulation, 

given that it is comprised of 

approximately 21,478 issues. 

On a continuous basis, (1) at least 

90% of the weight of the New Index will 

be comprised of securities that have an 

outstanding par value of at least $7 

million and were issued as part of a 

transaction of at least $75 million, and 

(2) the New Index will include at least 

500 components. 

The Exchange notes that, in the 

Approval Order, the Commission 

approved Exchange listing and trading 

of Units of the Fund for which at least 

90% of the weight of Current Index will 

be comprised of securities that have an 

outstanding par value of at least $7 

million and were issued as part of a 

transaction of at least $75 million, and 

that included at least 500 components.19

In the Approval Order, the Commission 

stated that the applicable index was 

sufficiently designed to deter potential 

manipulation. 

The proposed rule change is designed 

to promote just and equitable principles 

of trade and to protect investors and the 

public interest in that a large amount of 

information will be publicly available 

regarding the Fund and the Shares, 

thereby promoting market transparency. 

The Fund’s portfolio holdings will be 

disclosed on the Fund’s website daily 

after the close of trading on the 

Exchange. Moreover, the IIV will be 

widely disseminated by one or more 

major market data vendors at least every 

15 seconds during the Exchange’s Core 

Trading Session. The current value of 

the New Index will be disseminated by 

one or more major market data vendors 

at least once per day. 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, and 

quotation and last sale information will 

be available via the CTA high-speed 

line. The website for the Fund will 

include the prospectus for the Fund and 

additional data relating to NAV and 

other applicable quantitative 

information. Moreover, prior to the 

commencement of trading, the Exchange 

will inform its ETP Holders in an 

Information Bulletin of the special 

characteristics and risks associated with 

trading the Shares. 

If the Exchange becomes aware that 

the NAV is not being disseminated to all 

market participants at the same time, it 

will halt trading in the Shares until such 

time as the NAV is available to all 

market participants. 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 also may be halted 

because of market conditions or for 

reasons that, in the view of the 

Exchange, make trading in the Shares 

inadvisable. If the IIV or the New Index 

values are not being disseminated as 

required, the Exchange may halt trading 

during the day in which the 

interruption to the dissemination of the 

IIV or New Index value occurs. If the 

interruption to the dissemination of the 

IIV or New Index value persists past the 

trading day in which it occurred, the 

Exchange will halt trading. 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 Rule 7.34– 

E, which sets forth circumstances under 

which Shares of the Fund may be 

halted. In addition, investors will have 

ready access to information regarding 

the IIV, and quotation and last sale 

information for the Shares. 

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 exchange-traded 

fund that holds municipal bonds and 

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 comprehensive surveillance 

sharing agreement. In addition, 

investors will have ready access to 

information regarding the IIV and 

quotation and last sale information for 

the Shares. 

For the above reasons, the Exchange 

believes that the proposed rule change 

is consistent with the requirements of 

Section 6(b)(5) of the Act.20

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 

additional type of Units based on a 


amozie on DSK3GDR082PROD with NOTICES1
64618 Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices 

21 15 U.S.C. 78s(b)(3)(A). 

22 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. 

23 17 CFR 240.19b–4(f)(6)(iii). 

24See Approval Order, supra note 5. 

25For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

26 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(iii). 

4 17 CFR 240.19b–4(f)(6). 

municipal bond index that will enhance 

competition among market participants, 

to the benefit of investors and the 

marketplace. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 21 and Rule 19b– 

4(f)(6) thereunder.22

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) 23 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. In its 

filing with the Commission, the 

Exchange requests that the Commission 

waive the 30-day operative delay such 

that the proposed rule change will 

become operative on the date the Trust 

implements the New Index for the 

Fund. 

The Exchange notes that the 

Commission previously approved a 

proposed rule change to allow the 

continued listing and trading of Shares 

on the Exchange based on the Current 

Index.24 The Exchange represents that 

the New Index is the sub-set of the 

Current Index with effective maturities 

of 1–25 years. The Exchange further 

represents that other than the 

substitution of the New Index for the 

Current Index, the continued listing 

requirements of the Shares will remain 

the same as those approved by the 

Commission in the Approval Order. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

continued listing requirements for the 

Shares will remain the same. Therefore, 

the Commission hereby waives the 30- 

day operative delay.25

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic 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–2018–88 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-2018–88. 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–2018–88 and 

should be submitted on or before 

January 7, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27207 Filed 12–14–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84787; File No. SR–C2– 

2018–024] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Amending Provisions 

Related to Its Risk Monitor Mechanism 

December 11, 2018. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

30, 2018, Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 


amozie on DSK3GDR082PROD with NOTICES1