Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Notices 847 

16 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). 

5The Commission approved BZX Rule 14.11(c) in 

Securities Exchange Act Release No. 65225 (August 

30, 2011), 76 FR 55148 (September 6, 2011) (SR– 

BATS–2011–018). 

6The Exchange notes that the Commission 

previously approved a proposal to list and trade the 

Shares on Arca. See Securities Exchange Act 

Release No. 82295 (December 12, 2017), 82 FR 

60056 (December 18, 2017) (SR–NYSEArca–2017– 

56) (the ‘‘Prior Proposal’’). This proposal is 

substantively identical to the Prior Proposal as it 

relates to the Funds and the Shares and the issuer 

represents that all material representations 

contained within the Prior Proposal remain true. As 

further described below, the Exchange believes that 

its surveillance procedures are adequate to properly 

monitor the trading of the Shares on the Exchange 

during all trading sessions and to deter and detect 

violations of Exchange rules and the applicable 

federal securities laws. Trading of the Shares 

through the Exchange will be subject to the 

Exchange’s surveillance procedures for derivative 

products, including Index Fund Shares. 

7The Commission approved BZX Rule 14.11(c) in 

Securities Exchange Act Release No. 65225 (August 

30, 2011), 76 FR 55148 (September 6, 2011) (SR– 

BATS–2011–018). 

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–CboeBZX–2018–093 and 

should be submitted on or before 

February 21, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2019–00466 Filed 1–30–19; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84966; File No. SR– 

CboeBZX–2018–089] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To List and 

Trade Shares of the VanEck Vectors 

AMT-Free Intermediate Municipal Index 

ETF, VanEck Vectors AMT-Free Long 

Municipal Index ETF, VanEck Vectors 

AMT-Free Short Municipal Index ETF, 

VanEck Vectors High-Yield Municipal 

Index ETF, and VanEck Vectors PreRefunded Municipal Index ETF, Each a 

Series of the VanEck Vectors ETF 

Trust, Under Rule 14.11(c)(4) (Index 

Fund Shares) 

December 26, 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 December 

18, 2018, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to list and 

trade Shares of the following series of 

the Trust, that do not otherwise meet 

the standards set forth under BZX Rule 

14.11(c)(4)(B)(i)(b), under BZX Rule 

14.11(c)(4),5 which governs the listing 

and trading of index fund shares based 

on fixed income securities indices: 

VanEck Vectors AMT-Free Intermediate 

Municipal Index ETF; VanEck Vectors 

AMT-Free Long Municipal Index ETF; 

VanEck Vectors AMT-Free Short 

Municipal Index ETF; VanEck Vectors 

High-Yield Municipal Index ETF and 

VanEck Vectors Pre-Refunded 

Municipal Index ETF (each a ‘‘Fund’’ 

and, collectively, the ‘‘Funds’’).6

The text of the proposed rule change 

is available on the Exchange’s website 

(http://www.cboe.com/AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

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 

Exchange 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 these 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to list and 

trade Shares of the following series of 

the Trust, that do not otherwise meet 

the standards set forth under BZX Rule 

14.11(c)(4)(B)(i)(b), under BZX Rule 

14.11(c)(4),7 which governs the listing 

and trading of index fund shares based 

on fixed income securities indices: 

VanEck Vectors AMT-Free Intermediate 

Municipal Index ETF; VanEck Vectors 

AMT-Free Long Municipal Index ETF; 

VanEck Vectors AMT-Free Short 

Municipal Index ETF; VanEck Vectors 

High-Yield Municipal Index ETF and 

VanEck Vectors Pre-Refunded 


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848 Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Notices 

8The Exchange notes that the Commission 

previously approved a proposal to list and trade the 

Shares on Arca. See Securities Exchange Act 

Release No. 82295 (December 12, 2017), 82 FR 

60056 (December 18, 2017) (SR–NYSEArca–2017– 

56) (the ‘‘Prior Proposal’’). This proposal is 

substantively identical to the Prior Proposal as it 

relates to the Funds and the Shares and the issuer 

represents that all material representations 

contained within the Prior Proposal remain true. As 

further described below, the Exchange believes that 

its surveillance procedures are adequate to properly 

monitor the trading of the Shares on the Exchange 

during all trading sessions and to deter and detect 

violations of Exchange rules and the applicable 

federal securities laws. Trading of the Shares 

through the Exchange will be subject to the 

Exchange’s surveillance procedures for derivative 

products, including Index Fund Shares. 

9See Registration Statement on Form N–1A for 

the Trust, dated September 1, 2018 (File Nos. 333– 

123257 and 811–10325). The descriptions of the 

Funds and the Shares contained herein are based, 

in part, on information in the Registration 

Statement. The Commission has issued an order 

granting certain exemptive relief to the Trust under 

the Investment Company Act of 1940 (15 U.S.C. 

80a–1) (‘‘1940 Act’’) (the ‘‘Exemptive Order’’). See 

Investment Company Act Release No. 28021 

(October 24, 2007) (File No. 812–13426). 

10An investment adviser to an open-end fund is 

required to be registered under the Investment 

Advisers Act of 1940 (the ‘‘Advisers Act’’). As a 

result, the Adviser and its related personnel are 

subject to the provisions of Rule 204A–1 under the 

Advisers Act relating to codes of ethics. This Rule 

requires investment advisers to adopt a code of 

ethics that reflects the fiduciary nature of the 

relationship to clients as well as compliance with 

all applicable securities laws. Accordingly, 

procedures designed to prevent the communication 

and misuse of non-public information by an 

investment adviser must be consistent with Rule 

204A–1 under the Advisers Act. In addition, Rule 

206(4)–7 under the Advisers Act makes it unlawful 

for an investment adviser to provide investment 

advice to clients unless such investment adviser has 

(i) adopted and implemented written policies and 

procedures reasonably designed to prevent 

violation, by the investment adviser and its 

supervised persons, of the Advisers Act and the 

Commission rules adopted thereunder; (ii) 

implemented, at a minimum, an annual review 

regarding the adequacy of the policies and 

procedures established pursuant to subparagraph (i) 

above and the effectiveness of their 

implementation; and (iii) designated an individual 

(who is a supervised person) responsible for 

administering the policies and procedures adopted 

under subparagraph (i) above. 

Municipal Index ETF (each a ‘‘Fund’’ 

and, collectively, the ‘‘Funds’’).8

The Exchange notes that the Shares 

are currently listed on Arca and the 

Shares are already trading on the 

Exchange pursuant to unlisted trading 

privileges, as provided in Rule 14.11(j). 

The Shares are offered by the Trust, 

which was established as a Delaware 

statutory trust on March 15, 2001. The 

Trust is registered with the Commission 

as an open-end investment company 

and has filed a registration statement on 

behalf of the Funds on Form N–1A 

(‘‘Registration Statement’’) with the 

Commission.9 All statements and 

representations made in this filing 

regarding (a) the description of each 

Fund’s index, portfolio, or reference 

asset, (b) limitations on index or 

portfolio holdings or reference assets, or 

(c) the applicability of Exchange rules 

and surveillance procedures shall 

constitute continued listing 

requirements for listing the Shares on 

the Exchange. 

Description of the Shares and the Funds 

Van Eck Associates Corporation is the 

investment adviser (‘‘Adviser’’) to the 

Funds.10 The Adviser also serves as the 

administrator for the Funds (the 

‘‘Administrator’’). The Bank of New 

York Mellon serves as the custodian 

(‘‘Custodian’’) and transfer agent 

(‘‘Transfer Agent’’) for the Funds. Van 

Eck Securities Corporation (the 

‘‘Distributor’’) is the distributor of the 

Shares. Barclays Inc. is the index 

provider (‘‘Index Provider’’). 

VanEck Vectors AMT-Free Intermediate 

Municipal Index ETF 

According to its prospectus, the 

VanEck Vectors AMT-Free Intermediate 

Municipal Index ETF seeks to replicate 

as closely as possible, before fees and 

expenses, the price and yield 

performance of the Bloomberg Barclays 

AMT-Free Intermediate Continuous 

Municipal Index. The Bloomberg 

Barclays AMT-Free Intermediate 

Continuous Municipal Index is a market 

size weighted index comprised of 

publicly traded municipal bonds that 

cover the U.S. dollar denominated 

intermediate term tax-exempt bond 

market. 

As of November 30, 2018, the 

Bloomberg Barclays AMT-Free 

Intermediate Continuous Municipal 

Index included 17,860 component fixed 

income municipal bond securities from 

issuers in 53 different states or U.S. 

territories. The most heavily weighted 

security in the index represented less 

than 0.25% of the total weight of the 

index and the aggregate weight of the 

top five most heavily weighted 

securities in the index represented 

approximately 0.77% of the total weight 

of the index. Approximately 9.71% of 

the weight of the components in the 

index had a minimum original principal 

amount outstanding of $100 million or 

more. In addition, the total dollar 

amount outstanding of issues in the 

index was approximately 

$355,526,745,016 and the average dollar 

amount outstanding of issues in the 

index was approximately $19,906,313. 

Under normal market conditions, the 

VanEck Vectors AMT-Free Intermediate 

Municipal Index ETF will invest at least 

80% of its total assets in fixed income 

securities that comprise the Bloomberg 

Barclays AMT-Free Intermediate 

Continuous Municipal Index. With 

respect to the remaining 20% of its 

assets, the VanEck Vectors AMT-Free 

Intermediate Municipal Index ETF may 

invest in municipal bonds not included 

in the Bloomberg Barclays AMT-Free 

Intermediate Continuous Municipal 

Index, money market instruments 

(including repurchase agreements or 

other funds which invest exclusively in 

money market instruments), convertible 

securities, exchange-traded warrants, 

participation notes, structured notes, 

cleared or non-cleared index, interest 

rate or credit default swap agreements, 

and, to the extent permitted by the 1940 

Act, affiliated and unaffiliated funds, 

such as open-end or closed-end 

management investment companies, 

including other exchange-traded funds. 

In addition, the VanEck Vectors AMTFree Intermediate Municipal Index ETF 

may invest up to 20% of its assets in 

when-issued securities in order to 

manage cash flows as well as exchangetraded futures contracts and exchangetraded options thereon (all such 

exchange-traded futures contracts and 

exchange-traded options thereon 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), together with 

positions in cash and money market 

instruments, to simulate full investment 

in the Bloomberg Barclays AMT-Free 

Intermediate Continuous Municipal 

Index. 

Index Overview 

At least 90% of the weight of the 

Bloomberg Barclays AMT-Free 

Intermediate Continuous Municipal 

Index will be comprised of securities 

that that have an outstanding par value 

of at least $7 million and were issued as 

part of a transaction of at least $75 

million. 

VanEck Vectors AMT-Free Long 

Municipal Index ETF 

According to its prospectus, the 

VanEck Vectors AMT-Free Long 

Municipal Index ETF seeks to replicate 

as closely as possible, before fees and 

expenses, the price and yield 

performance of the Bloomberg Barclays 

AMT-Free Long Continuous Municipal 

Index. The Bloomberg Barclays AMTFree Long Continuous Municipal Index 

is a market size weighted index 

comprised of publicly traded municipal 

bonds that cover the U.S. dollar 

denominated long-term tax-exempt 

bond market. 

As of November 30, 2018, the 

Bloomberg Barclays AMT-Free Long 

Continuous Municipal Index included 


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Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Notices 849 

8,152 component fixed income 

municipal bond securities from issuers 

in 52 different states or U.S. territories. 

The most heavily weighted security in 

the index represented 0.27% of the total 

weight of the index and the aggregate 

weight of the top five most heavily 

weighted securities in the index 

represented approximately 1.24% of the 

total weight of the index. 

Approximately 13.96% of the weight of 

the components in the index had a 

minimum original principal amount 

outstanding of $100 million or more. In 

addition, the total dollar amount 

outstanding of issues in the index was 

approximately $291,429,759,251and the 

average dollar amount outstanding of 

issues in the index was approximately 

$3,574,949,480. 

Under normal market conditions, the 

VanEck Vectors AMT-Free Long 

Municipal Index ETF will invest at least 

80% of its total assets in fixed income 

securities that comprise the Bloomberg 

Barclays AMT-Free Long Continuous 

Municipal Index. With respect to the 

remaining 20% of its assets, the VanEck 

Vectors AMT-Free Long Municipal 

Index ETF may invest in municipal 

bonds not included in the Bloomberg 

Barclays AMT- Free Long Continuous 

Municipal Index, money market 

instruments (including repurchase 

agreements or other funds which invest 

exclusively in money market 

instruments), convertible securities, 

exchange-traded warrants, participation 

notes, structured notes, cleared or noncleared index, interest rate or credit 

default swap agreements, and, to the 

extent permitted by the 1940 Act, 

affiliated and unaffiliated funds, such as 

open- end or closed-end management 

investment companies, including other 

exchange-traded funds. In addition, the 

VanEck Vectors AMT-Free Long 

Municipal Index ETF may invest up to 

20% of its assets in when-issued 

securities in order to manage cash flows 

as well as exchange-traded futures 

contracts and exchange-traded options 

thereon (all such exchange-traded 

futures contracts and exchange-traded 

options thereon 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), together with positions in 

cash and money market instruments, to 

simulate full investment in the 

Bloomberg Barclays AMT-Free Long 

Continuous Municipal Index. 

Index Overview 

At least 90% of the weight of the 

Bloomberg Barclays AMT-Free Long 

Continuous Municipal 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. 

VanEck Vectors AMT-Free Short 

Municipal Index ETF 

According to its prospectus, the 

VanEck Vectors AMT-Free Short 

Municipal Index ETF seeks to replicate 

as closely as possible, before fees and 

expenses, the price and yield 

performance of the Bloomberg Barclays 

AMT-Free Short Continuous Municipal 

Index. The Bloomberg Barclays AMTFree Short Continuous Municipal Index 

is a market size weighted index 

comprised of publicly traded municipal 

bonds that cover the U.S. dollar 

denominated short-term tax-exempt 

bond market. 

As of November 30, 2018, the 

Bloomberg Barclays AMT-Free Short 

Continuous Municipal Index included 

7,482component fixed income 

municipal bond securities from issuers 

in 48 different states or U.S. territories. 

The most heavily weighted security in 

the index represented approximately 

.47% of the total weight of the index 

and the aggregate weight of the top five 

most heavily weighted securities in the 

index represented approximately 2.14% 

of the total weight of the index. 

Approximately 17.16% of the weight of 

the components in the index had a 

minimum original principal amount 

outstanding of $100 million or more. In 

addition, the total dollar amount 

outstanding of issues in the index was 

approximately $167,594,060,156 and 

the average dollar amount outstanding 

of issues in the index was 

approximately $22,399,634. 

Under normal market conditions, the 

VanEck Vectors AMT-Free Short 

Municipal Index ETF will invest at least 

80% of its total assets in fixed income 

securities that comprise the Bloomberg 

Barclays AMT-Free Short Continuous 

Municipal Index. With respect to the 

remaining 20% of its assets, the VanEck 

Vectors AMT-Free Short Municipal 

Index ETF may invest in municipal 

bonds not included in the Bloomberg 

Barclays AMT-Free Short Continuous 

Municipal Index, money market 

instruments (including repurchase 

agreements or other funds which invest 

exclusively in money market 

instruments), convertible securities, 

exchange-traded warrants, participation 

notes, structured notes, cleared or noncleared index, interest rate or credit 

default swap agreements, and, to the 

extent permitted by the 1940 Act, 

affiliated and unaffiliated funds, such as 

open- end or closed-end management 

investment companies, including other 

exchange-traded funds. In addition, the 

VanEck Vectors AMT-Free Short 

Municipal Index ETF may invest up to 

20% of its assets in when-issued 

securities in order to manage cash flows 

as well as exchange-traded futures 

contracts and exchange-traded options 

thereon (all such exchange-traded 

futures contracts and exchange-traded 

options thereon 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), together with positions in 

cash and money market instruments, to 

simulate full investment in the 

Bloomberg Barclays AMT-Free Short 

Continuous Municipal Index. 

Index Overview 

At least 90% of the weight of the 

Bloomberg Barclays AMT-Free Short 

Continuous Municipal 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. 

VanEck Vectors High-Yield Municipal 

Index ETF 

According to its prospectus, the 

VanEck Vectors High-Yield Municipal 

Index ETF seeks to replicate as closely 

as possible, before fees and expenses, 

the price and yield performance of the 

Bloomberg Barclays Municipal Custom 

High Yield Composite Index. The 

Bloomberg Barclays Municipal Custom 

High Yield Composite Index is a market 

size weighted index composed of 

publicly traded municipal bonds that 

cover the U.S. dollar denominated high 

yield long-term tax-exempt bond 

market. The Bloomberg Barclays 

Municipal Custom High Yield 

Composite Index is calculated using a 

market value weighting methodology, 

provided that the total allocation to 

issuers from each individual territory of 

the United States (including Puerto 

Rico, Guam, the U.S. Virgin Islands, 

American Samoa and the Northern 

Mariana Islands) does not exceed 4%. 

The Bloomberg Barclays Municipal 

Custom High Yield Composite Index 

tracks the high yield municipal bond 

market with a 75% weight in noninvestment grade municipal bonds and 

a targeted 25% weight in Baa/BBB rated 

investment grade municipal bonds. 

As of November 30, 2018, the 

Bloomberg Barclays Municipal Custom 

High Yield Composite Index included 

6,557component fixed income 

municipal bond securities from issuers 

in 56 different states or U.S. territories. 

The most heavily weighted security in 

the index represented approximately 

1.14% of the total weight of the index 

and the aggregate weight of the top five 


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850 Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Notices 

most heavily weighted securities in the 

index represented approximately 4.03% 

of the total weight of the index. 

Approximately 22.52% of the weight of 

the components in the index had a 

minimum original principal amount 

outstanding of $100 million or more. In 

addition, the total dollar amount 

outstanding of issues in the index was 

approximately $308,369,566,945 and 

the average dollar amount outstanding 

of issues in the index was 

approximately $47,029,063. 

Under normal market conditions, the 

VanEck Vectors High-Yield Municipal 

Index ETF will invest at least 80% of its 

total assets in securities that comprise 

the Bloomberg Barclays Municipal 

Custom High Yield Composite Index. 

With respect to the remaining 20% of its 

assets, the VanEck Vectors High-Yield 

Municipal Index ETF may invest in 

municipal bonds not included in the 

Bloomberg Barclays Municipal Custom 

High Yield Composite Index, money 

market instruments (including 

repurchase agreements or other funds 

which invest exclusively in money 

market instruments), convertible 

securities, exchange-traded warrants, 

participation notes, structured notes, 

cleared or non-cleared index, interest 

rate or credit default swap agreements, 

and, to the extent permitted by the 1940 

Act, affiliated and unaffiliated funds, 

such as open- end or closed-end 

management investment companies, 

including other exchange-traded funds. 

In addition, the VanEck Vectors HighYield Municipal Index ETF may invest 

up to 20% of its assets in when-issued 

securities in order to manage cash flows 

as well as exchange-traded futures 

contracts and exchange-traded options 

thereon (all such exchange-traded 

futures contracts and exchange-traded 

options thereon 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), together with positions in 

cash and money market instruments, to 

simulate full investment in the 

Bloomberg Barclays Municipal Custom 

High Yield Composite Index. 

Index Overview 

The Bloomberg Barclays Municipal 

Custom High Yield Composite Index is 

comprised of three total return, market 

size weighted benchmark indices with 

weights as follows: (i) 50% weight in 

Muni High Yield/$100 Million Deal Size 

Index, (ii) 25% weight in Muni High 

Yield/Under $100 Million Deal Size 

Index, and (iii) 25% weight in Muni Baa 

Rated/$100 Million Deal Size Index. At 

least 90% of the weight of the Muni 

High Yield/$100 Million Deal Size 

Index will be comprised of securities 

that have an outstanding par value of at 

least $3 million and were issued as part 

of a transaction of at least $100 million. 

At least 90% of the weight of the Muni 

High Yield/Under $100 Million Deal 

Size Index will be comprised of 

securities that have an outstanding par 

value of at least $3 million and were 

issued as part of a transaction of under 

$100 million but over $20 million. At 

least 90% of the weight of the Muni Baa 

Rated/$100 Million Deal Size 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 $100 million. 

VanEck Vectors Pre-Refunded 

Municipal Index ETF 

According to its prospectus, the 

VanEck Vectors Pre-Refunded 

Municipal Index ETF seeks to replicate 

as closely as possible, before fees and 

expenses, the price and yield 

performance of the Bloomberg Barclays 

Municipal Pre-Refunded—TreasuryEscrowed Index. The Bloomberg 

Barclays Municipal Pre-Refunded— 

Treasury-Escrowed Index is a market 

size weighted index comprised of 

publicly traded municipal bonds that 

cover the U.S. dollar denominated taxexempt bond market. The Bloomberg 

Barclays Municipal Pre-Refunded— 

Treasury-Escrowed Index is comprised 

of pre-refunded and/or escrowed-tomaturity municipal bonds. 

As of November 30 2018, the 

Bloomberg Barclays Municipal PreRefunded Treasury-Escrowed Index 

included 3,076 component fixed income 

municipal bond securities from issuers 

in 45 different states or U.S. territories. 

The most heavily weighted security in 

the index represented approximately 

0.54% of the total weight of the index 

and the aggregate weight of the top five 

most heavily weighted securities in the 

index represented approximately 2.27% 

of the total weight of the index. 

Approximately 10.46% of the weight of 

the components in the index had a 

minimum original principal amount 

outstanding of $100 million or more. In 

addition, the total dollar amount 

outstanding of issues in the index was 

approximately $77,017,953,117 and the 

average dollar amount outstanding of 

issues in the index was approximately 

$25,038,346. 

Under normal market conditions, the 

VanEck Vectors Pre-Refunded 

Municipal Index ETF will invest at least 

80% of its total assets in securities that 

comprise the Bloomberg Barclays 

Municipal Pre-Refunded—TreasuryEscrowed Index. With respect to the 

remaining 20% of its assets, the VanEck 

Vectors Pre-Refunded Municipal Index 

ETF may invest in municipal bonds not 

included in the Bloomberg Barclays 

Municipal Pre-Refunded—TreasuryEscrowed Index, money market 

instruments (including repurchase 

agreements or other funds which invest 

exclusively in money market 

instruments), convertible securities, 

exchange-traded warrants, participation 

notes, structured notes, cleared or noncleared index, interest rate or credit 

default swap agreements, and, to the 

extent permitted by the 1940 Act, 

affiliated and unaffiliated funds, such as 

open-end or closed-end management 

investment companies, including other 

exchange-traded funds. In addition, the 

VanEck Vectors Pre-Refunded 

Municipal Index ETF may invest up to 

20% of its assets in when-issued 

securities in order to manage cash flows 

as well as exchange-traded futures 

contracts and exchange-traded options 

thereon (all such exchange-traded 

futures contracts and exchange-traded 

options thereon 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), together with positions in 

cash and money market instruments, to 

simulate full investment in the 

Bloomberg Barclays Municipal PreRefunded—Treasury-Escrowed Index. 

Index Overview 

At least 90% of the weight of the 

Bloomberg Barclays Municipal PreRefunded—Treasury-Escrowed 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. 

Based on the characteristics of each 

index as described above, the Exchange 

believes it is appropriate to facilitate the 

listing and trading of the Funds. Each 

index underlying the Funds satisfies all 

of the generic listing requirements for 

the Funds based on a fixed income 

index, except for the minimum 

principal amount outstanding 

requirement of BZX Rule 

14.11(c)(4)(B)(i)(b). A fundamental 

purpose behind the minimum principal 

amount outstanding requirement is to 

ensure that component securities of an 

index are sufficiently liquid such that 

the potential for index manipulation is 

reduced. 

As discussed above, the Exchange 

believes that each index underlying the 

Funds is sufficiently broad-based to 

deter potential manipulation. Each 

index underlying the Funds currently 

includes, on average, more than 10,012 

component securities. Whereas the 

generic listing rules require that an 


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11See BZX Rule 14.11(c)(4)(B)(i)(e). 

12See BZX Rule 14.11(c)(4)(B)(i)(d). 

13The Commission has previously approved a 

proposed rule change relating to the listing and 

trading on the Exchange of a series of Funds based 

on a municipal bond index that did not satisfy BZX 

Rule 14.11(c)(4)(B)(i)(b) provided that such 

municipal bond index contained at least 500 

component securities on a continuous basis. See 

Securities Exchange Act Release No. 78329 (July 14, 

2016), 81 FR 47217 (July 20, 2016) (SR–BatsBZX– 

2016–01) (order approving proposed rule change 

relating to the listing and trading of Shares of the 

Following Series of VanEck Vectors ETF Trust: 

VanEck Vectors AMT-Free 6–8 Year Municipal 

Index ETF; VanEck Vectors AMT-Free 8–12 Year 

Municipal Index ETF; and VanEck Vectors AMTFree 12–17 Year Municipal Index ETF). 

14 17 CFR 240.10A–3. 

15Regular Trading Hours are 9:30 a.m. to 4:00 

p.m. Eastern Time. 

index contain securities from a 

minimum of 13 non-affiliated issuers,11

each index underlying the Funds 

currently includes securities issued by 

municipal entities in at least 45 states or 

U.S. territories. Further, whereas the 

generic listing rules permit a single 

component security to represent up to 

30% of the weight of an index and the 

top five component securities to, in 

aggregate, represent up to 65% of the 

weight of an index,12 no single security 

currently represents more than 

approximately 1.5% of the weight of 

any index underlying the Funds. 

Similarly, the aggregate weight of the 

five most heavily weighted securities in 

each index does not exceed 

approximately 5%. The Exchange 

believes that this significant 

diversification and the lack of 

concentration among constituent 

securities provides a strong degree of 

protection against index manipulation. 

On a continuous basis, each index 

underlying a Fund will (i) contain at 

least 500 component securities and (ii) 

comply with the parameters described 

under the heading ‘‘Index Overview’’ 

contained in the description of its 

related Fund set forth above.13 In 

addition, the Exchange represents that: 

(1) Except for BZX Rule 

14.11(c)(4)(B)(i)(b), each index currently 

satisfies all of the generic listing 

standards under BZX Rule 14.11(c)(4); 

(2) the continued listing standards 

under BZX Rule 14.11(c) applicable to 

index fund shares shall apply to the 

Shares of each Fund; and (3) the issuer 

of each Fund is required to comply with 

Rule 10A–3 14 under the Act for the 

initial and continued listing of the 

shares of each Fund. In addition, the 

Exchange represents that the Shares of 

the Funds will comply with all other 

requirements applicable to index fund 

shares including, but not limited to, 

requirements relating to the 

dissemination of key information such 

as the value of the Indices and the 

Intraday Indicative Value, rules 

governing the trading of equity 

securities, trading hours, trading halts, 

surveillance, and the information 

circular, as set forth in Exchange rules 

applicable to index fund shares and the 

orders approving such rules. 

The current value for each index 

underlying the Funds is widely 

disseminated by one or more major 

market data vendors at least once per 

day. The IIV for shares of each Fund is 

disseminated by one or more major 

market data vendors, updated at least 

every 15 seconds during the Exchange’s 

Regular Trading Hours 15. In addition, 

the portfolio of securities held by each 

Fund is disclosed daily on each Fund’s 

website. Further, the website for each 

Fund will contain the applicable fund’s 

prospectus and additional data relating 

to net asset value (‘‘NAV’’) and other 

applicable quantitative information. The 

Exchange has obtained a representation 

from the issuer that the applicable NAV 

per share will be calculated daily will 

be made available to all market 

participants at the same time. None of 

the indices underlying the Funds is 

maintained by a broker-dealer. 

Further, the Exchange’s existing rules 

require that the Funds notify the 

Exchange of any material change to the 

methodology used to determine the 

composition of the index. Therefore, if 

the methodology of an index underlying 

the Funds was changed in a manner that 

would materially alter its existing 

composition, the Exchange would have 

advance notice and would evaluate the 

index, as modified, to determine 

whether it was sufficiently broad-based 

and well diversified. 

Price information regarding municipal 

bonds, convertible securities, and nonexchange traded assets, including 

investment companies, derivatives, 

money market instruments, repurchase 

agreements, structured notes, 

participation notes, and when-issued 

securities is available from third party 

pricing services and major market data 

vendors. For exchange-traded assets, 

including investment companies, 

futures, warrants, and options, such 

intraday information is available 

directly from the applicable listing 

exchange. 

Availability of Information 

Each Fund’s website is publicly 

available and includes a form of the 

prospectus for the Funds that may be 

downloaded. The website will include 

additional quantitative information 

updated on a daily basis, including, for 

the Fund: (1) The prior business day’s 

reported NAV, daily trading volume, 

and a calculation of the premium and 

discount of the Bid/Ask Price against 

the NAV; and (2) data in chart format 

displaying the frequency distribution of 

discounts and premiums of the daily 

Bid/Ask Price against the NAV, within 

appropriate ranges, for each of the four 

previous calendar quarters. Daily 

trading volume information for the 

Funds will also be available in the 

financial section of newspapers, through 

subscription services such as 

Bloomberg, Thomson Reuters, and 

International Data Corporation, which 

can be accessed by authorized 

participants and other investors, as well 

as through other electronic services, 

including major public websites. On 

each business day, before 

commencement of trading in Shares 

during Regular Trading Hours on the 

Exchange, each Fund will disclose on 

its website the identities and quantities 

of the portfolio of securities and other 

assets in the daily disclosed portfolio 

held by the Funds that formed the basis 

for each Fund’s calculation of NAV at 

the end of the previous business day. 

The daily disclosed portfolio will 

include, as applicable: The ticker 

symbol; CUSIP number or other 

identifier, if any; a description of the 

holding (including the type of holding, 

such as the type of swap); the identity 

of the security, index or other asset or 

instrument underlying the holding, if 

any; for options, the option strike price; 

quantity held (as measured by, for 

example, par value, notional value or 

number of shares, contracts, or units); 

maturity date, if any; coupon rate, if 

any; effective date, if any; market value 

of the holding; and the percentage 

weighting of the holding in each Fund’s 

portfolio. The website and information 

will be publicly available at no charge. 

The value, components, and percentage 

weightings of each of the Indices will be 

calculated and disseminated at least 

once daily and will be available from 

major market data vendors. Rules 

governing the Indices are available on 

Barclays’ website and in each respective 

Fund’s prospectus. 

In addition, for each Fund, an 

estimated value, defined in BZX Rule 

14.11(c)(6)(A) as the ‘‘Intraday 

Indicative Value,’’ that reflects an 

estimated intraday value of each Fund’s 

portfolio, will be disseminated. 

Moreover, the Intraday Indicative Value 

will be based upon the current value for 

the components of the daily disclosed 

portfolio and will be updated and 

widely disseminated by one or more 

major market data vendors at least every 

15 seconds during the Exchange’s 


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16See 17 CFR 240.10A–3. 

17For a list of the current members of ISG, see 

www.isgportal.org. The Exchange notes that not all 

components of the disclosed portfolio for the Funds 

may trade on markets that are members of ISG or 

with which the Exchange has in place a 

comprehensive surveillance sharing agreement. 

18The Pre-Opening Session is from 8:00 a.m. to 

9:30 a.m. Eastern Time. 

19The After Hours Trading Session is from 4:00 

p.m. to 5:00 p.m. Eastern Time. 

Regular Trading Hours. In addition, the 

quotations of certain of each Fund’s 

holdings may not be updated during 

U.S. trading hours if updated prices 

cannot be ascertained. 

The dissemination of the Intraday 

Indicative Value, together with the daily 

disclosed portfolio, will allow investors 

to determine the value of the underlying 

portfolio of the Funds on a daily basis 

and provide a close estimate of that 

value throughout the trading day. 

Quotation and last sale information 

for the Shares of each Fund will be 

available via the CTA high speed line. 

Trade price and other information 

relating to municipal bonds is available 

through the Municipal Securities 

Rulemaking Board’s Electronic 

Municipal Market Access (‘‘EMMA’’) 

system. For exchange-traded assets, 

including investment companies, 

futures, warrants, and options, such 

intraday information is available 

directly from the applicable listing 

exchange. 

Initial and Continued Listing 

The Shares of each Fund will conform 

to the initial and continued listing 

criteria under BZX Rule 14.11(c)(4), 

except for those set forth in 

14.11(c)(4)(B)(i)(b). The Exchange 

represents that, for initial and/or 

continued listing, the Funds and the 

Trust must be in compliance with Rule 

10A–3 under the Act. 16 A minimum of 

100,000 Shares of each Fund will be 

outstanding at the commencement of 

trading on the Exchange. The Exchange 

will obtain a representation from the 

issuer of the Shares that the NAV per 

Share for each Fund will be calculated 

daily and will be made available to all 

market participants at the same time. 

Trading Halts 

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in the Shares of 

the Funds. The Exchange will halt 

trading in the Shares under the 

conditions specified in BZX Rule 11.18. 

Trading may be halted because of 

market conditions or for reasons that, in 

the view of the Exchange, make trading 

in the Shares inadvisable. These may 

include: (1) The extent to which trading 

is not occurring in the securities and/or 

the financial instruments composing the 

daily disclosed portfolio of the Funds; 

or (2) whether other unusual conditions 

or circumstances detrimental to the 

maintenance of a fair and orderly 

market are present. Trading in the 

Shares also will be subject to Rule 

14.11(c)(1)(B)(iv), which sets forth 

circumstances under which Shares of a 

Fund may be halted. 

Trading Rules 

The Exchange deems the Shares to be 

equity securities, thus rendering trading 

in the Shares subject to the Exchange’s 

existing rules governing the trading of 

equity securities. The Exchange will 

allow trading in the Shares from 8:00 

a.m. until 5:00 p.m. Eastern Time and 

has the appropriate rules to facilitate 

transactions in the Shares during all 

trading sessions. As provided in BZX 

Rule 11.11(a), the minimum price 

variation for quoting and entry of orders 

in securities traded on the Exchange is 

$0.01, with the exception of securities 

that are priced less than $1.00, for 

which the minimum price variation for 

order entry is $0.0001. 

Surveillance 

The Exchange believes that its 

surveillance procedures are adequate to 

properly monitor the trading of the 

Shares on the Exchange during all 

trading sessions and to deter and detect 

violations of Exchange rules and the 

applicable federal securities laws. 

Trading of the Shares through the 

Exchange will be subject to the 

Exchange’s surveillance procedures for 

derivative products, including Index 

Fund Shares. The issuer has represented 

to the Exchange that it will advise the 

Exchange of any failure by a Fund to 

comply with the continued listing 

requirements, and, pursuant to its 

obligations under Section 19(g)(1) of the 

Exchange Act, the Exchange will surveil 

for compliance with the continued 

listing requirements. If a Fund is not in 

compliance with the applicable listing 

requirements, the Exchange will 

commence delisting procedures for the 

Fund under Exchange Rule 14.12. The 

Exchange may obtain information 

regarding trading in the Shares via the 

ISG, from other exchanges that are 

members or affiliates of the ISG, or with 

which the Exchange has entered into a 

comprehensive surveillance sharing 

agreement.17 In addition, the Exchange 

is able to access, as needed, trade 

information for certain fixed income 

instruments reported to FINRA’s Trade 

Reporting and Compliance Engine 

(‘‘TRACE’’). FINRA also can access data 

obtained from the EMMA system 

relating to municipal bond trading 

activity for surveillance purposes in 

connection with trading in the Shares. 

In addition, the Exchange may obtain 

information regarding trading in the 

Shares and the underlying shares in 

exchange-traded investment companies, 

futures, options, and warrants from 

markets or other entities that are 

members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement. The 

Exchange prohibits the distribution of 

material non-public information by its 

employees. 

Information Circular 

Prior to the commencement of 

trading, the Exchange will inform its 

members in an Information Circular of 

the special characteristics and risks 

associated with trading the Shares. 

Specifically, the Information Circular 

will discuss the following: (1) The 

procedures for purchases and 

redemptions of Shares in Creation Units 

(and that Shares are not individually 

redeemable); (2) BZX Rule 3.7, which 

imposes suitability obligations on 

Exchange members with respect to 

recommending transactions in the 

Shares to customers; (3) how 

information regarding the Intraday 

Indicative Value is disseminated; (4) the 

risks involved in trading the Shares 

during the Pre-Opening 18 and After 

Hours Trading Sessions 19 when an 

updated Intraday Indicative Value will 

not be calculated or publicly 

disseminated; (5) the requirement that 

members deliver a prospectus to 

investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction; and (6) 

trading information. 

In addition, the Information Circular 

will advise members, prior to the 

commencement of trading, of the 

prospectus delivery requirements 

applicable to the Funds. Members 

purchasing Shares from the Funds for 

resale to investors will deliver a 

prospectus to such investors. The 

Information Circular will also discuss 

any exemptive, no-action, and 

interpretive relief granted by the 

Commission from any rules under the 

Act. 

In addition, the Information Circular 

will reference that each Fund is subject 

to various fees and expenses described 

in the Registration Statement. The 

Information Circular will also disclose 

the trading hours of the Shares of the 

Funds and the applicable NAV 

calculation time for the Shares. The 


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20 15 U.S.C. 78f. 

21 15 U.S.C. 78f(b)(5). 

22See BZX Rule 14.11(c)(4)(B)(i)(e). 

23See BZX Rule 14.11(c)(4)(B)(i)(d). 

Information Circular will disclose that 

information about the Shares of the 

Funds will be publicly available on the 

Funds’ website. In addition, the 

Information Circular will reference that 

the Trust is subject to various fees and 

expenses described in each Fund’s 

Registration Statement. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with Section 6(b) 

of the Act 20 in general and Section 

6(b)(5) of the Act 21 in particular in that 

it is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system and, in general, to protect 

investors and the public interest 

because, in addition to the reasons laid 

out above, the Commission has 

previously approved the Shares to list 

and trade on Arca and this proposal is 

substantively identical to the Prior 

Proposal as it relates to the Funds and 

the Shares and all material 

representations contained within the 

Prior Proposal remain true. 

The Exchange also believes that the 

proposed rule change is designed to 

prevent fraudulent and manipulative 

acts and practices in that the Shares of 

each Fund will be listed and traded on 

the Exchange pursuant to the initial and 

continued listing criteria in BZX Rule 

14.11(c). The Exchange believes that its 

surveillances, which generally focus on 

detecting securities trading outside of 

their normal patterns which could be 

indicative of manipulative or other 

violative activity, and associated 

surveillance procedures are adequate to 

properly monitor the trading of the 

Shares on the Exchange during all 

trading sessions and to deter and detect 

violations of Exchange rules and the 

applicable federal securities laws. The 

Exchange or FINRA, on behalf of the 

Exchange, or both, will communicate as 

needed regarding trading in the Shares 

of each Fund with other markets or 

other entities that are members of the 

Intermarket Surveillance group (‘‘ISG’’), 

and may obtain trading information 

regarding trading in the Shares from 

such markets or entities. FINRA can also 

access data obtained from the EMMA 

system relating to municipal bond 

trading activity for surveillance 

purposes in connection with trading in 

the Shares. The Exchange or FINRA, on 

behalf of the Exchange, are able to 

access, as needed, trade information for 

certain fixed income securities held by 

a Fund reported to FINRA’s TRACE. In 

addition, the Exchange may obtain 

information regarding trading in the 

Shares and the underlying shares in 

exchange-traded investment companies, 

futures, options, and warrants from 

markets or other entities that are 

members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement. 

As discussed above, the Exchange 

believes that each index underlying the 

Funds is sufficiently broad-based to 

deter potential manipulation. Each 

index underlying the Funds currently 

includes, on average, more than 10,012 

component securities. Whereas the 

generic listing rules require that an 

index contain securities from a 

minimum of 13 non-affiliated issuers,22

each index underlying the Funds 

currently includes securities issued by 

municipal entities in at least 45 states or 

U.S. territories. Further, whereas the 

generic listing rules permit a single 

component security to represent up to 

30% of the weight of an index and the 

top five component securities to, in 

aggregate, represent up to 65% of the 

weight of an index,23 no single security 

currently represents more than 

approximately 1.5% of the weight of 

any index underlying the Funds. 

Similarly, the aggregate weight of the 

five most heavily weighted securities in 

each index does not exceed 

approximately 5%. 

On a continuous basis, each index 

underlying a Fund will (i) contain at 

least 500 component securities and (ii) 

comply with the parameters described 

under the heading ‘‘Requirement for 

Index Constituents’’ contained in the 

description of its related Fund set forth 

above. 

The value, components, and 

percentage weightings of each of the 

Indices will be calculated and 

disseminated at least once daily and 

will be available from major market data 

vendors. In addition, the portfolio of 

securities held by the Funds will be 

disclosed on the Funds’ website at 

www.vaneck.com/etfs. The intraday 

indicative value for Shares of the Funds 

will be disseminated by one or more 

major market data vendors, updated at 

least every 15 seconds during Regular 

Trading Hours. The Adviser represents 

that bonds that share similar 

characteristics, as described above, tend 

to trade similarly to one another; 

therefore, within these categories, the 

issues may be considered fungible from 

a portfolio management perspective. 

Within a single municipal bond issuer, 

Adviser represents that separate issues 

by the same issuer are also likely to 

trade similarly to one another. 

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 Funds and the Shares, 

thereby promoting market transparency. 

The Funds’ portfolio holdings will be 

disclosed on the Funds’ website daily 

after the close of trading on the 

Exchange and prior to the opening of 

trading on the Exchange the following 

day. Moreover, the IIV will be widely 

disseminated by one or more major 

market data vendors at least every 15 

seconds during Regular Trading Hours. 

The current value of each of the Indices 

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 realtime 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 Funds will include the 

prospectus for the Funds and additional 

data relating to NAV and other 

applicable quantitative information. 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 

Funds. Trading also may be halted 

because of market conditions or for 

reasons that, in the view of the 

Exchange, make trading in the Shares 

inadvisable. These may include: (1) The 

extent to which trading is not occurring 

in the securities and/or the financial 

instruments composing the daily 

disclosed portfolio of each Fund; or (2) 

whether other unusual conditions or 

circumstances detrimental to the 

maintenance of a fair and orderly 

market are present. Trading in the 

Shares also will be subject to Rule 

14.11(c)(1)(B)(iv), which sets forth 

circumstances under which Shares of a 

Fund may be halted. If the IIV of any of 

the Funds or value of the Indices 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 index value 

occurs. 


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24 15 U.S.C. 78s(b)(3)(A). 

25 17 CFR 240.19b–4(f)(6). In addition, Rule19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and 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. The Exchange 

has satisfied this requirement. 

26 17 CFR 240.19b–4(f)(6). 

27 17 CFR 240.19b–4(f)(6)(iii). 

28For purposes only of waiving the 30-day 

operative delay, the Commission also has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 29 17 CFR 200.30–3(a)(12). 

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 additional types of exchange-traded 

funds 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 in the Shares and the 

underlying shares in exchange-traded 

investment companies, futures, options, 

and warrants 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. 

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, 

rather will facilitate the transfer from 

Arca and listing of additional exchangetraded products on the Exchange, which 

will enhance competition among listing 

venues, to the benefit of issuers, 

investors, and the marketplace more 

broadly. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the 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 24 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.25

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 26 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 27

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay so that the proposal may 

become operative upon filing. The 

Exchange states that waiver of the 30- 

day operative delay would allow the 

Funds to transfer listing to the Exchange 

as soon as is practicable and minimize 

the amount of time that the Funds’ 

listing venue will be in transition. 

Additionally, the Exchange states that 

waiver will allow the Funds to be listed 

on the Exchange in December 2018, 

which will allow the Funds to have 

lower listing fees on a going forward 

basis, and to avoid paying Arca’s listing 

fees for 2019, which will be applied at 

the beginning of January 2019. For these 

reasons, the Commission believes that 

waiver of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. 

Accordingly, the Commission hereby 

waives the operative delay and 

designates the proposed rule change 

operative upon filing.28

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 necessary or appropriate in the 

public interest, for the protection of 

investors, or 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– 

CboeBZX–2018–089 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–CboeBZX–2018–089. 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–CboeBZX–2018–089 and 

should be submitted on or before 

February 21, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2019–00476 Filed 1–30–19; 8:45 am] 

BILLING CODE 8011–01–P 


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