67734 Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 

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 Exchange notes that the Commission 

previously approved a proposal to list and trade 

shares of the Fund on Arca. See Securities 

Exchange Act Release Nos. 71232 (January 3, 2014), 

79 FR 1662 (January 9, 2014) (SR–NYSEArca–2013– 

118) (Notice of Filing of Amendment No. 2 and 

Order Granting Accelerated Approval of a Proposed 

Rule Change, as Modified By Amendments Nos. 1 

and 2, To List and Trade Shares of the Market 

Vectors Short High-Yield Municipal Index ETF 

Under NYSE Arca Equities Rule 5.2(j)(3), 

Commentary .02) and 76645 (December 15, 2015), 

80 FR 79392 (December 21, 2015) (SR–NYSEArca– 

2015–74) (Order Approving a Proposed Rule 

Change Regarding a Change to the Underlying Index 

of the Market Vectors Short High Yield Municipal 

Index ETF) (collectively, the ‘‘Prior Proposal’’). This 

proposal is substantively identical to the Prior 

Proposal 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. 

6The 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). Subsequent amendments to Rule 

14.11(c) include amendments approved by the 

Commission in Securities Exchange Act Release 

Nos. 80169 (March 7, 2017), 82 FR 13536 (March 

13, 2017) (SR–BatsBZX–2016–80) and 81070 (June 

30, 2017), 82 FR 31650 (July 7, 2017) (SR–BatsBZX– 

2017–26). 

7BZX Rule 14.11(c)(4)(B)(i)(b) provides that Fixed 

Income Security components that in the aggregate 

account for at least 75% of the Fixed Income 

Securities portion of the weight of the index or 

portfolio must have a minimum original principal 

amount outstanding of $100 million or more. 

8The Exchange notes that this includes all 

requirements applicable under Rule 

14.11(c)(4)(B)(i), including Rule 14.11(c)(4)(B)(i)(d) 

which provides that no fixed-income security 

(excluding Treasury Securities) will represent more 

than 30% of the Fixed Income Securities portion of 

the weight of the index or portfolio, and the five 

highest weighted component fixed-income 

securities do not in the aggregate account for more 

than 65% of the Fixed Income Securities portion of 

the weight of the index or portfolio. 

9See Registration Statement on Form N–1A for 

the Trust, dated September 1, 2018 [sic] (File Nos. 

333–123257 and 811–10325). The descriptions of 

the Funds [sic] 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’’). See Investment Company Act 

Release No. 28021 (October 24, 2007) (File No. 812– 

13426). 

10As defined in Rule 14.11(i)(3)(E), the term 

‘‘Normal Market Conditions’’ includes, but is not 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84945; File No. SR– 

CboeBZX–2018–094] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To List and 

Trade, Under BZX Rule 14.11(c)(4), 

Shares of the VanEck Vectors Short 

High-Yield Municipal Index ETF of the 

VanEck Vectors ETF Trust 

December 21, 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 

20, 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 under BZX Rule 14.11(c)(4) shares 

of the VanEck Vectors Short High-Yield 

Municipal Index ETF (the ‘‘Fund’’) of 

the VanEck Vectors ETF Trust (the 

‘‘Trust’’), which is currently listed on 

NYSE Arca, Inc. (‘‘Arca’’). The shares of 

the Fund are referred to herein as the 

‘‘Shares.’’ 

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 the Shares 5 on the Exchange. The 

Exchange is submitting this proposed 

rule change because the Index, as 

defined below, for the Fund does not 

meet all of the ‘‘generic’’ listing 

requirements of BZX Rule 14.11(c)(4) 6

applicable to the listing of Index Fund 

Shares based on fixed income securities 

indexes. The Index meets all 

requirements of Rule 14.11(c)(4) except 

for BZX Rule 14.11(c)(4)(B)(i)(b) 7 and 

will continue to meet all other 

requirements of Rule 14.11(c)(4) on an 

ongoing basis.8 The Exchange notes that 

the Fund is 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 [sic] on Form N–1A 

(‘‘Registration Statement’’) with the 

Commission.9 All statements and 

representations made in this filing 

regarding (a) the description of the 

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. The issuer has 

represented to the Exchange that it will 

advise the Exchange of any failure by 

the Fund or the Shares to comply with 

the continued listing requirements, and, 

pursuant to its obligations under 

Section 19(g)(1) of the Act, the Exchange 

will surveil for compliance with the 

continued listing requirements. 

Van Eck Associates Corporation is the 

investment adviser (‘‘Adviser’’) for the 

Fund. Van Eck Securities Corporation is 

the Fund’s distributor (‘‘Distributor’’). 

Van Eck Associates Corporation also is 

the administrator for the Fund (the 

‘‘Administrator’’), and is responsible for 

certain clerical, recordkeeping and/or 

bookkeeping services. The Bank of New 

York Mellon is the custodian of the 

Fund’s assets and provides transfer 

agency and fund accounting services to 

the Fund. 

The investment objective of the Fund 

is to seek to replicate as closely as 

possible, before fees and expenses, the 

price and yield performance of the 

Bloomberg Barclays Municipal High 

Yield Short Duration Index (the ‘‘Short 

High Yield Index’’ or ‘‘Index’’). Under 

Normal Market Conditions,10 the Fund 


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limited to, the absence of trading halts in the 

applicable financial markets generally; operational 

issues causing dissemination of inaccurate market 

information or system failures; or force majeure 

type events such as natural or man-made disaster, 

act of God, armed conflict, act of terrorism, riot or 

labor disruption, or any similar intervening 

circumstance. 

11A convertible security is a bond, debenture, 

note, preferred stock, right, warrant or other 

security that may be converted into or exchanged 

for a prescribed amount of common stock or other 

security of the same or a different issuer or into 

cash within a particular period of time at a 

specified price or formula. 

12Structured notes are derivative securities for 

which the amount of principal repayment and/or 

interest payments is based on the movement of one 

or more factors, including, but not limited to, 

currency exchange rates, interest rates (such as the 

prime lending rate or LIBOR), referenced bonds and 

stock indices. 

13For purposes of this filing, ETFs include index 

fund shares (as described in BZX Rule 14.11(c)); 

Portfolio Depositary Receipts (as described in BZX 

Rule 14.11(b)); and Managed Fund Shares (as 

described in BZX Rule 14.11(i)). The ETFs all will 

be listed and traded in the U.S. on registered 

exchanges. The Fund may invest in the securities 

of ETFs registered under the 1940 Act consistent 

with the requirements of Section 12(d)(1) of the 

1940 Act, or any rule, regulation or order of the 

Commission or interpretation thereof. While the 

Fund may invest in inverse ETFs, the Fund will not 

invest in leveraged (e.g., 2X, –2X, 3X or –3X) ETFs. 

14The Fund will seek, where possible, to use 

counterparties, as applicable, whose financial status 

is such that the risk of default is reduced; however, 

the risk of losses resulting from default is still 

possible. The Adviser will evaluate the 

creditworthiness of counterparties on a regular 

basis. In addition to information provided by credit 

agencies, the Adviser will review approved 

counterparties using various factors, which may 

include the counterparty’s reputation, the Adviser’s 

past experience with the counterparty and the 

price/market actions of debt of the counterparty. 

15 In reaching liquidity decisions, the Adviser 

may consider the following factors: The frequency 

of trades and quotes for the security; the number of 

dealers wishing to purchase or sell the security and 

the number of other potential purchasers; dealer 

undertakings to make a market in the security; and 

the nature of the security and the nature of the 

marketplace in which it trades (e.g., the time 

needed to dispose of the security, the method of 

soliciting offers, and the mechanics of transfer). 

16 The Commission has stated that long-standing 

Commission guidelines have required open-end 

funds to hold no more than 15% of their net assets 

in illiquid securities and other illiquid assets. See 

Investment Company Act Release No. 28193 (March 

11, 2008), 73 FR 14618 (March 18, 2008), footnote 

34. See also, Investment Company Act Release No. 

5847 (October 21, 1969), 35 FR 19989 (December 

31, 1970) (Statement Regarding ‘‘Restricted 

Securities’’); Investment Company Act Release No. 

18612 (March 12, 1992), 57 FR 9828 (March 20, 

1992) (Revisions of Guidelines to Form N–1A). A 

fund’s portfolio security is illiquid if it cannot be 

disposed of in the ordinary course of business 

within seven days at approximately the value 

ascribed to it by the fund. See Investment Company 

Act Release No. 14983 (March 12, 1986), 51 FR 

9773 (March 21, 1986) (adopting amendments to 

Rule 2a–7 under the 1940 Act); Investment 

Company Act Release No. 17452 (April 23, 1990), 

55 FR 17933 (April 30, 1990) (adopting Rule 144A 

under the 1933 Act). 

17The Index is published by Bloomberg Index 

Services Limited. (‘‘Index Provider’’). The Index 

Provider is not a registered broker-dealer and is not 

affiliated with a broker-dealer. In the event that the 

Index Provider becomes a broker-dealer or becomes 

affiliated with a broker-dealer, the Index Provider 

Continued 

will invest at least 80% of its total assets 

in securities that compose the Index. 

The Fund, using a ‘‘passive’’ or 

indexing investment approach, will 

attempt to approximate the investment 

performance of the Index. The Adviser 

expects that, over time, the correlation 

between the Fund’s performance before 

fees and expenses and that of the Index 

will be 95% or better. A figure of 100% 

would indicate perfect correlation. 

Because of the practical difficulties and 

expense of purchasing all of the 

securities in the Index, the Fund will 

not purchase all of the securities in the 

Index. Instead, the Adviser will utilize 

a ‘‘sampling’’ methodology in seeking to 

achieve the Fund’s objective. As such, 

the Fund may purchase a subset of the 

bonds in the Index in an effort to hold 

a portfolio of bonds with generally the 

same risk and return characteristics of 

the Index. 

Other Investments 

While the Fund will, under Normal 

Market Conditions, invest at least 80% 

of its total assets in securities that 

compose the Index, the Fund may invest 

its remaining assets in other financial 

instruments, as described below. 

The Fund may invest its remaining 

assets in municipal bonds not included 

in the Short High Yield Index, money 

market instruments, including 

repurchase agreements or other funds 

which invest exclusively in money 

market instruments, convertible 

securities,11 structured notes (notes on 

which the amount of principal 

repayment and interest payments are 

based on the movement of one or more 

specified factors, such as the movement 

of a particular stock or stock index),12

and certain other derivative instruments 

that are mentioned below. The Fund 

may also invest, to the extent permitted 

by the 1940 Act, in other affiliated and 

unaffiliated funds, such as open-end or 

closed-end management investment 

companies, including other exchangetraded funds (‘‘ETFs’’).13

The Fund may invest in repurchase 

agreements with commercial banks, 

brokers or dealers to generate income 

from its excess cash balances and to 

invest securities lending cash collateral. 

The Fund may use exchange-traded 

futures contracts and exchange-traded 

or over-the-counter (‘‘OTC’’) options 

thereon, together with positions in cash 

and money market instruments, to 

simulate full investment in the Index. 

The Fund may use cleared or noncleared index, interest rate or credit 

default swap agreements. Swap 

agreements are contracts between 

parties in which one party agrees to 

make payments to the other party based 

on the change in market value or level 

of a specified index or asset. 

The Fund may invest in exchangetraded warrants, which are equity 

securities in the form of options issued 

by a corporation which give the holder 

the right to purchase stock, usually at a 

price that is higher than the market 

price at the time the warrant is issued. 

The Fund may invest in participation 

notes, which are issued by banks or 

broker-dealers and are designed to offer 

a return linked to the performance of a 

particular underlying equity security or 

market. 

The Fund will only enter into 

transactions in derivative instruments 

with counterparties that the Adviser 

reasonably believes are capable of 

performing under the contract and will 

post as collateral as required by the 

counterparty.14

The Fund may hold up to an aggregate 

amount of 15% of its net assets in 

illiquid assets (calculated at the time of 

investment), including Rule 144A 

securities deemed illiquid by the 

Adviser, in accordance with 

Commission guidance.15 The Fund will 

monitor its portfolio liquidity on an 

ongoing basis to determine whether, in 

light of current circumstances, an 

adequate level of liquidity is being 

maintained, and will consider taking 

appropriate steps in order to maintain 

adequate liquidity if, through a change 

in values, net assets, or other 

circumstances, more than 15% of the 

Fund’s net assets are held in illiquid 

assets. Illiquid assets include securities 

subject to contractual or other 

restrictions on resale and other 

instruments that lack readily available 

markets as determined in accordance 

with Commission staff guidance.16

Description of the Index 

The Index is a market size weighted 

index composed of publicly traded 

municipal bonds that cover the U.S. 

dollar denominated high yield shortterm tax-exempt bond market. The 

majority of the Index’s constituents are 

from the revenue sector, with some 

constituents being from the general 

obligation sector. The revenue sector is 

divided into industry sectors that 

consist of, but may not be limited to, 

electric, health care, transportation, 

education, water and sewer, resource 

recovery, leasing and special tax. As 

[sic] November 30, 2018, the Index 

consisted of approximately 10,050 

bonds and 958 unique issuers.17


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67736 Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 

will implement and maintain a fire wall with 

respect to its relevant personnel regarding access to 

information concerning the composition and/or 

changes to the Index. In addition, the Index 

Provider has implemented and will maintain 

procedures around the relevant personnel that are 

designed to prevent the use and dissemination of 

material, non-public information regarding the 

Index. 

18BZX Rule 14.11(c)(4)(B)(i)(b) provides that 

components that in the aggregate account for at 

least 75% of the weight of the index or portfolio 

each shall have a minimum original principal 

amount outstanding of $100 million or more. 

The Index is calculated using a 

market value weighting methodology. 

Index constituents are capitalizationweighted, based on their current amount 

outstanding. The Index will include at 

least 500 constituents on a continuous 

basis. The Index tracks the high yield 

municipal bond market with a 65% 

weight in non-investment grade 

municipal bonds, a 25% weight in Baa/ 

BBB-rated investment grade municipal 

bonds and a 10% weight in Aa/AArated investment grade municipal 

bonds. It is comprised of four total 

return, market size weighted benchmark 

indexes with weights as follows: 

• 40% weight in Muni High Yield/ 

$100 Million Deal Size Index. To be 

included in the Muni High Yield/$100 

Million Deal Size Index, bonds must be 

unrated or rated Ba1/BB+ or lower by at 

least two of the following rating 

agencies if all three rate the bond: 

Moody’s Investors Service, Inc. 

(‘‘Moody’s’’), Standard & Poor’s, Inc. 

(‘‘S&P’’) and Fitch, Inc. (‘‘Fitch’’). If only 

two of the three agencies rate the 

security, the lower rating is used to 

determine index eligibility. If only one 

of the three agencies rates a security, the 

rating must be Ba1/BB+ or lower. Bonds 

in the Muni High Yield/$100 Million 

Deal Size Index must have an 

outstanding par value of at least $3 

million and be issued as part of a 

transaction of at least $100 million. 

• 25% weight in Muni High Yield/ 

Under $100 Million Deal Size Index. To 

be included in the Muni High Yield/ 

Under $100 Million Deal Size Index, 

bonds must be unrated or rated Ba1/BB+ 

or lower by at least two of the following 

rating agencies if all three rate the bond: 

Moody’s, S&P and Fitch. If only two of 

the three agencies rate the security, the 

lower rating is used to determine index 

eligibility. If only one of the three 

agencies rates a security, the rating must 

be Ba1/BB+ or lower. Bonds in the Muni 

High Yield/Under $100 Million Deal 

Size Index must have an outstanding 

par value of at least $3 million and be 

issued as part of a transaction of under 

$100 million but over $20 million. 

• 25% weight in Muni Baa-Rated/ 

$100 Million Deal Size Index. To be 

included in the Muni Baa-Rated/$100 

Million Deal Size Index, bonds must 

have a Barclays Index credit quality 

classification between Baa1/BBB+ and 

Baa3/BBB¥. Barclays Index credit 

quality classification is based on the 

three rating agencies, Moody’s, S&P and 

Fitch. If two of the three agencies rate 

the bond equivalently, then that rating 

is used. If all three rate the bond 

differently, the middle rating is used. If 

only two of the three agencies rate the 

security, the lower rating is used to 

determine index eligibility. If only one 

of the three agencies rates a security, the 

rating must be Baa1/BBB+, Baa2/BBB, 

or Baa3/BBB¥. The bonds must have an 

outstanding par value of at least $7 

million and be issued as part of a 

transaction of at least $100 million. 

• 10% weight in Muni A-Rated Index. 

To be included in the Muni A-Rated 

Index, bonds must have a Barclays 

Index credit quality classification 

between A1/A+ and A3/A¥. The 

Barclays Index credit quality 

classification is based on the three 

rating agencies, Moody’s, S&P and 

Fitch. If two of the three agencies rate 

the bond equivalently, then that rating 

is used. If all three rate the bond 

differently, the middle rating is used. If 

only two of the three agencies rate the 

security, the lower rating is used to 

determine index eligibility. If only one 

of the three agencies rates a security, the 

rating must be A1/A+, A2/A, or A3/A¥. 

The bonds must have an outstanding 

par value of at least $7 million and be 

issued as part of a transaction of at least 

$75 million. 

Remarketed issues are not allowed in 

the benchmark. All bonds must have a 

fixed rate, a dated-date after December 

31, 1990 and a nominal maturity of 1 to 

12 years. Taxable municipal bonds, 

bonds with floating rates and 

derivatives are excluded from the Index. 

The composition of the Index is 

rebalanced monthly. Interest and 

principal payments earned by the 

component securities are held in the 

Index without a reinvestment return 

until month end when they are removed 

from the Index. Qualifying securities 

issued, but not necessarily settled, on or 

before the month end rebalancing date 

qualify for inclusion in the Index in the 

following month. 

Total returns are calculated based on 

the sum of price changes, gain/loss on 

repayments of principal, and coupons 

received or accrued, expressed as a 

percentage of beginning market value. 

The Index is calculated and is available 

once a day. 

As noted above, the Exchange is 

submitting this proposed rule change 

because the Index for the Fund does not 

meet BZX Rule 14.11(c)(4)(B)(i)(b) 18

applicable to the listing of Index Fund 

Shares based on fixed income securities 

indexes. The Index meets and will 

continue to meet on an ongoing basis all 

other requirements of Rule 14.11(c)(4). 

Specifically, as of November 30, 2018, 

27.35% of the weight of the Index 

components have a minimum original 

principal amount outstanding of $100 

million or more. 

As of November 30, 2018, 74.52% of 

the weight of the Index components was 

composed of individual maturities that 

were part of an entire municipal bond 

offering with a minimum original 

principal amount outstanding of $100 

million or more for all maturities of the 

offering. In addition, the total dollar 

amount outstanding of issues in the 

Index was approximately 

$240,994,112,111 and the average dollar 

amount outstanding of issues in the 

Index was approximately $23,979,514. 

Further, the most heavily weighted 

component represents 1.96% of the 

weight of the Index and the five most 

heavily weighted components represent 

7.36% of the weight of the Index. 

Therefore, the Exchange believes that, 

notwithstanding that the Index does not 

satisfy the criterion in BZX Rule 

14.11(c)(4)(B)(i)(b), the Index is 

sufficiently broad-based to deter 

potential manipulation, given that it is 

composed of approximately 10,050 

issues and 958 unique issuers. In 

addition, the Index securities are 

sufficiently liquid to deter potential 

manipulation in that a substantial 

portion (74.52%) of the Index weight is 

composed of maturities that were part of 

an entire municipal bond offering with 

a minimum original principal amount 

outstanding of $100 million or more, 

and in view of the substantial total 

dollar amount outstanding and the 

average dollar amount outstanding of 

Index issues, as referenced above. 

The Index value, calculated and 

disseminated at least once daily, as well 

as the components of the Index and 

their percentage weighting, will be 

available from major market data 

vendors. In addition, the portfolio of 

securities held by the Fund will be 

disclosed daily on the Fund’s website at 

www.vaneck.com. 

The Exchange represents that: (1) 

Except for BZX Rule 14.11(c)(4)(B)(i)(b), 

the Shares of the Fund currently satisfy 

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 the Fund; 


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19 17 CFR 240.10A–3. 

20Regular Trading Hours are 9:30 a.m. to 4:00 

p.m. Eastern Time. 

and (3) the Trust is required to comply 

with Rule 10A–3 19 under the Act for the 

initial and continued listing of the 

Shares. In addition, the Exchange 

represents that the Shares of the Fund 

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 Index and the IIV (as 

defined below), 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 the index 

underlying the Fund is widely 

disseminated by one or more major 

market data vendors at least once per 

day. The IIV for Shares of the Fund is 

disseminated by one or more major 

market data vendors, updated at least 

every 15 seconds during the Exchange’s 

Regular Trading Hours.20 In addition, 

the portfolio of securities held by the 

Fund is disclosed daily on the Fund 

website (www.vaneck.com). Further, the 

website for the 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 

Fund issuer that the NAV per share will 

be calculated daily and will be made 

available to all market participants at 

the same time. 

Creation and Redemption of Shares 

According to the Registration 

Statement, the Fund will issue and sell 

Shares only in ‘‘Creation Units’’ of 

100,000 Shares or multiples thereof on 

a continuous basis through the 

Distributor, without an initial sales load, 

at their NAV next determined after 

receipt, on any business day, of an order 

in proper form. 

The consideration for a purchase of 

Creation Units generally will consist of 

cash, in-kind, or a combination of cash 

and in-kind. The in-kind purchase of 

Creation Units will consist of the 

deposit of a designated portfolio of fixed 

income securities (the ‘‘Deposit 

Securities’’) that compose the Index and 

an amount of cash computed as 

described below (the ‘‘Cash 

Component’’) or, as permitted or 

required by the Fund, of the cash value 

of the Deposit Securities (the ‘‘Deposit 

Cash’’) and the Cash Component 

computed as described below. When 

accepting purchases of Creation Units 

for cash, the Fund may incur additional 

costs associated with the acquisition of 

Deposit Securities. 

The Cash Component together with 

the Deposit Securities or the Deposit 

Cash, as applicable, are referred to as 

the ‘‘Fund Deposit,’’ which represents 

the minimum initial and subsequent 

investment amount for Shares. The 

specified Deposit Securities generally 

will correspond, pro rata, to the extent 

practicable, to the component securities 

of the Fund’s portfolio. The Cash 

Component represents the difference 

between the NAV of a Creation Unit and 

the market value of Deposit Securities 

and may include a ‘‘Dividend 

Equivalent Payment’’. The Dividend 

Equivalent Payment will enable the 

Fund to make a complete distribution of 

dividends on the next dividend 

payment date, and is an amount equal, 

on a per Creation Unit basis, to the 

dividends on all the securities held by 

the Fund (‘‘Fund Securities’’) with exdividend dates within the accumulation 

period for such distribution (the 

‘‘Accumulation Period’’), net of 

expenses and liabilities for such period, 

as if all of the Fund Securities had been 

held by the Trust for the entire 

Accumulation Period. The 

Accumulation Period begins on the exdividend date for the Fund and ends on 

the next ex-dividend date. 

The Trust may determine to issue 

Shares on an all cash basis (i.e., in 

exchange for the Deposit Cash and the 

Cash Component) if the Trust and the 

Adviser believe such method would 

substantially minimize the Fund’s 

transactional costs or would enhance 

the Fund’s operational efficiencies. This 

may occur on days when a substantial 

rebalancing of the Fund’s portfolio is 

required. 

The Administrator, through the 

National Securities Clearing Corporation 

(‘‘NSCC’’), will make available on each 

business day, immediately prior to the 

opening of business on the Exchange 

(currently 9:30 a.m. Eastern Time), the 

list of the names and the required 

principal amounts of each Deposit 

Security to be included in the current 

Fund Deposit (based on information at 

the end of the previous business day) as 

well as the Cash Component for the 

Fund. Such Fund Deposit is applicable, 

subject to any adjustments as described 

in the Registration Statement, in order 

to effect creations of Creation Units of 

the Fund until such time as the nextannounced Deposit Securities 

composition or the required amount of 

Deposit Cash, as applicable, is made 

available. 

In addition to the list of names and 

numbers of securities constituting the 

current Deposit Securities of a Fund 

Deposit, the Administrator, through the 

NSCC, also will make available on each 

business day, the Dividend Equivalent 

Payment, if any, and the estimated Cash 

Component effective through and 

including the previous business day, per 

outstanding Shares of the Fund. 

All orders to create Creation Units 

must be placed in multiples of 100,000 

Shares of the Fund. All orders to create 

Creation Units must be received by the 

Distributor no later than the closing 

time of the close of Regular Trading 

Hours (‘‘Closing Time’’, ordinarily 4:00 

p.m. Eastern time) on the date such 

order is placed in order for creation of 

Creation Units to be effected based on 

the NAV of the Fund as determined on 

such date. 

Shares may be redeemed only in 

Creation Units at their NAV next 

determined after receipt of a redemption 

request in proper form by the 

Distributor, only on a business day and 

only through a ‘‘Participating Party’’ or 

Depository Trust Company (‘‘DTC’’) 

Participant who has executed a 

‘‘Participant Agreement’’, as described 

in the Registration Statement. The Trust 

will not redeem Shares in amounts less 

than Creation Units. 

The Administrator, through NSCC, 

will make available immediately prior 

to the opening of business on the 

Exchange (currently 9:30 a.m. Eastern 

time) on each day that the Exchange is 

open for business, the Fund Securities 

that will be delivered to satisfy (subject 

to possible amendment or correction) 

redemption requests received in proper 

form (as defined below) on that day. The 

Fund Securities generally will 

correspond, pro rata, to the extent 

practicable, to the component securities 

of the Fund’s portfolio. If the Trust 

determines, based on information 

available to the Trust when a 

redemption request is submitted by an 

Authorized Participant, that (i) the short 

interest of the Fund in the marketplace 

is greater than or equal to 100% and (ii) 

redemption orders in the aggregate from 

all Authorized Participants on a 

business day represent 25% or more of 

the outstanding Shares of the Fund, 

such Authorized Participant will be 

required to verify to the Trust the 

accuracy of its representations that are 

deemed to have been made by 

submitting a request for redemption. If, 

after receiving notice of the verification 

requirement, the Authorized Participant 

does not verify the accuracy of its 

representations that are deemed to have 

been made by submitting a request for 

redemption in accordance with this 


khammond on DSK30JT082PROD with NOTICES
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21The Bid/Ask Price of each [sic] Fund will be 

determined using the midpoint of the highest bid 

and the lowest offer on the Exchange as of the time 

of calculation of the Fund’s NAV. The records 

relating to Bid/Ask Prices will be retained by the 

Funds [sic] and their service providers. 22See 17 CFR 240.10A–3. 

requirement, its redemption request will 

be considered not to have been received 

in proper form. 

Unless cash redemptions are 

permitted or required for the Fund, the 

redemption proceeds for a Creation Unit 

generally will consist of Fund Securities 

as announced by the Administrator on 

the business day of the request for 

redemption, plus cash in an amount 

equal to the difference between the NAV 

of the Shares being redeemed, as next 

determined after a receipt of a request 

in proper form, and the value of the 

Fund Securities, less the redemption 

transaction fee and variable fees 

described below. An Authorized 

Participant may receive the cash 

equivalent of one or more Fund 

Securities because it was restricted from 

transacting in one or more Fund 

Securities. Should the Fund Securities 

have a value greater than the NAV of the 

Shares being redeemed, a compensating 

cash payment to the Trust equal to the 

differential plus the applicable 

redemption transaction fee will be 

required to be arranged for by or on 

behalf of the redeeming shareholder. 

The Fund reserves the right to honor a 

redemption request by delivering a 

basket of securities or cash that differs 

from the Fund Securities. 

Orders to redeem Creation Units of 

the Fund must be delivered through a 

DTC Participant that has executed the 

Participant Agreement with the 

Distributor and with the Trust. A DTC 

Participant who wishes to place an 

order for redemption of Creation Units 

of the Fund to be effected need not be 

a Participating Party, but such orders 

must state that redemption of Creation 

Units of the Fund will instead be 

effected through transfer of Creation 

Units of the Fund directly through DTC. 

An order to redeem Creation Units of 

the Fund will be deemed received by 

the Administrator on the ‘‘Transmittal 

Date’’ if (i) such order is received by the 

Administrator not later than 4:00 p.m. 

Eastern time on such Transmittal Date; 

(ii) such order is preceded or 

accompanied by the requisite number of 

Shares of Creation Units specified in 

such order, which delivery must be 

made through DTC to the Administrator 

no later than 11:00 a.m. Eastern time, on 

such Transmittal Date (the ‘‘DTC CutOff-Time’’); and (iii) all other 

procedures set forth in the Participant 

Agreement are properly followed. 

A standard creation and redemption 

transaction fee will be imposed to offset 

transfer and other transaction costs that 

may be incurred by the Fund. 

All persons creating and redeeming 

Shares during a business day will be 

treated in the same manner with respect 

to payment of proceeds in-kind, in cash, 

or in a combination thereof. 

Detailed descriptions of the Fund, the 

Index, procedures for creating and 

redeeming Shares, transaction fees and 

expenses, dividends, distributions, 

taxes, risks, and reports to be distributed 

to beneficial owners of the Shares can 

be found in the Registration Statement 

or on the website for the Fund 

(www.vaneck.com), as applicable. 

Availability of Information 

The Fund website, www.vaneck.com, 

is publicly available and includes a 

form of the prospectus for the Fund 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, the closing market price 

or the midpoint of the bid/ask spread at 

the time of calculation of such NAV (the 

‘‘Bid/Ask Price’’),21 and a calculation of 

the premium and discount of the closing 

market price or Bid/Ask Price against 

the NAV; and (2) data in chart format 

displaying the frequency distribution of 

discounts and premiums of the daily 

closing market price or Bid/Ask Price 

against the NAV, within appropriate 

ranges, for each of the four previous 

calendar quarters. Daily trading volume 

information for the Fund 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, the Fund will disclose on 

its website, www.vaneck.com, the 

identities and quantities of the portfolio 

of securities and other assets in the 

daily disclosed portfolio held by the 

Fund that formed the basis for the Fund 

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 the Fund’s portfolio. The website and 

information will be publicly available at 

no charge. The value, components, and 

percentage weightings of the Index will 

be calculated and disseminated at least 

once daily and will be available from 

major market data vendors. Rules 

governing the Index are available on 

Barclays’ website, https://

indices.barclays, and the Fund 

prospectus. 

In addition, an estimated value, 

defined in BZX Rule 14.11(c)(6)(A) as 

the ‘‘Intraday Indicative Value,’’ (the 

‘‘IIV’’) that reflects an estimated 

intraday value of the Fund portfolio, 

will be disseminated. Moreover, the IIV 

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 

Regular Trading Hours. In addition, the 

quotations of certain of the Fund 

holdings may not be updated during 

U.S. trading hours if updated prices 

cannot be ascertained. 

The dissemination of the IIV, together 

with the daily disclosed portfolio, will 

allow investors to determine the value 

of the underlying portfolio of the Fund 

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 the Fund will be 

available via the CTA high speed line. 

Initial and Continued Listing 

The Shares of the 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 Fund and the 

Trust must be in compliance with Rule 

10A–3 under the Act.22 A minimum of 

100,000 Shares of the 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 of the 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 


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23For a list of the current members of ISG, see 

www.isgportal.org. 24The Pre-Opening Session is from 8:00 a.m. to 

9:30 a.m. Eastern Time. 25The After Hours Trading Session is from 4:00 

p.m. to 5:00 p.m. Eastern Time. 26 15 U.S.C. 78f(b)(5). 

factors in exercising its discretion to 

halt or suspend trading in the Shares of 

the Fund. 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 

index of the Fund; or (2) whether other 

unusual conditions or circumstances 

detrimental to the maintenance of a fair 

and orderly market are present. 

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 the 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 the 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 or the Financial Industry 

Regulatory Authority (‘‘FINRA’’), on 

behalf of the Exchange, or both, will 

communicate as needed regarding 

trading in the Shares and the underlying 

shares in exchange-traded investment 

companies, futures, options, and 

warrants with other markets or other 

entities that are members of the 

Intermarket Surveillance Group 

(‘‘ISG’’) 23 or with which the Exchange 

has in place a comprehensive 

surveillance sharing agreement, 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 

the Fund reported to FINRA’s Trade 

Reporting and Compliance Engine 

(‘‘TRACE’’). 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 IIV is 

disseminated; (4) the risks involved in 

trading the Shares during the PreOpening 24 and After Hours Trading 

Sessions 25 when an updated IIV 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 Fund. Members 

purchasing Shares from the Fund 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 the 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 

Fund and the applicable NAV 

calculation time for the Shares. The 

Information Circular will disclose that 

information about the Shares of the 

Fund will be publicly available on the 

Fund website, www.vaneck.com. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 26 that an 

exchange have rules that are designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to remove 

impediments to, and perfect the 

mechanism of a free and open market 

and, in general, to protect investors and 

the public interest 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 

Fund and the Shares and all material 

representations contained within the 

Prior Proposal remain true. 

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 the 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 the Fund is not 

in compliance with the applicable 

listing requirements, the Exchange will 

commence delisting procedures for the 

Fund under Exchange Rule 14.12. 

FINRA conducts certain cross-market 

surveillances on behalf of the Exchange 

pursuant to a regulatory services 

agreement. The Exchange is responsible 

for FINRA’s performance under the 

regulatory services agreement. 

The Exchange or FINRA, on behalf of 

the Exchange, or both, will 

communicate as needed regarding 

trading in the Shares and the underlying 


khammond on DSK30JT082PROD with NOTICES
67740 Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 

shares in exchange-traded investment 

companies, futures, options, and 

warrants with other markets or other 

entities that are members of the ISG or 

with which the Exchange has in place 

a comprehensive surveillance sharing 

agreement, 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 the Fund 

reported to TRACE. The Exchange 

prohibits the distribution of material 

non-public information by its 

employees. The Index Provider is not a 

registered broker-dealer and is not 

affiliated with a broker-dealer. In the 

event that the Index Provider becomes 

a broker-dealer or becomes affiliated 

with a broker-dealer, the Index Provider 

will implement and maintain a fire wall 

with respect to its relevant personnel 

regarding access to information 

concerning the composition and/or 

changes to the Index. In addition, the 

Index Provider has implemented and 

will maintain procedures around the 

relevant personnel that are designed to 

prevent the use and dissemination of 

material, non-public information 

regarding the Index. 

As of November 30, 2018, there were 

approximately 10,050 issues in the 

Index. The Index meets all such 

requirements except for those set forth 

in BZX Rule 14.11(c)(4)(B)(i)(b). 

Specifically, as of November 30, 2018, 

27.35% of the weight of the Index 

components have a minimum original 

principal amount outstanding of $100 

million or more. 

As of November 30, 2018, 74.52% of 

the weight of the Index components was 

composed of individual maturities that 

were part of an entire municipal bond 

offering with a minimum original 

principal amount outstanding of $100 

million or more for all maturities of the 

offering. In addition, the total dollar 

amount outstanding of issues in the 

Index was approximately 

$240,994,112,111 and the average dollar 

amount outstanding of issues in the 

Index was approximately $23,979,514. 

Further, the most heavily weighted 

component represents 1.96% of the 

weight of the Index and the five most 

heavily weighted components represent 

7.36% of the weight of the Index. 

Therefore, the Exchange believes that, 

notwithstanding that the Index does not 

satisfy the criterion in 

14.11(c)(4)(B)(i)(b), the Index is 

sufficiently broad-based to deter 

potential manipulation, given that it is 

composed of approximately 10,050 

issues. In addition, the Index securities 

are sufficiently liquid to deter potential 

manipulation in that a substantial 

portion (74.52%) of the Index weight is 

composed of maturities that were part of 

an entire municipal bond offering with 

a minimum original principal amount 

outstanding of $100 million or more, 

and in view of the substantial total 

dollar amount outstanding and the 

average dollar amount outstanding of 

Index issues, as referenced above. The 

Index value, calculated and 

disseminated at least once daily, as well 

as the components of the Index and 

their respective percentage weightings, 

will be available from major market data 

vendors. In addition, the portfolio of 

securities held by the Fund will be 

disclosed on the Fund’s website. 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 Regular 

Trading Hours, [sic] According to the 

Registration Statements[sic], The 

Adviser represents that bonds that share 

similar characteristics 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, the 

Adviser represents that separate issues 

by the same issuer are also likely to 

trade similarly to one another. In 

addition, the Adviser represents that 

individual CUSIPs within the Index that 

share characteristics with other CUSIPs 

have a high yield to maturity 

correlation, and frequently have a 

correlation of one or close to one. 

The proposed rule change is designed 

to promote just and equitable principles 

of trade and to protect investors and the 

public interest. In addition, a large 

amount of information is 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 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 the 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 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 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 

Members in an Information Circular 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 

Index values are not being disseminated 

as required, the Corporation [sic] may 

halt trading during the day in which the 

interruption to the dissemination of the 

applicable IIV or Index value occurs. If 

the interruption to the dissemination of 

the applicable IIV or Index value 

persists past the trading day in which it 

occurred, the Corporation [sic] will halt 

trading. Trading in Shares of the Fund 

will be halted if the circuit breaker 

parameters in BZX Rule 11.18 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 Rule 14.11(c)(1)(B)(iv), 

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 

product 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, 


khammond on DSK30JT082PROD with NOTICES
Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 67741 

27 15 U.S.C. 78s(b)(3)(A)(iii). 

28 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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 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. The 

Exchange has satisfied this requirement. 

29 17 CFR 240.19b–4(f)(6). 

30 17 CFR 240.19b–4(f)(6)(iii). 

31For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

32 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. 

investors will have ready access to 

information regarding the IIV and 

quotation and last sale information for 

the Shares. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purpose of the Act. The Exchange 

notes that the proposed rule change, 

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 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)(iii) of the Act 27 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.28

A proposed rule change filed under 

Rule 19b–4(f)(6) 29 normally does not 

become operative prior to 30 days after 

the date of the filing. However, Rule 

19b–4(f)(6)(iii) 30 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 immediately upon 

filing. The Exchange states that such 

waiver will allow the Fund to transfer 

listing to the Exchange as soon as is 

practicable, and will minimize the 

amount of time that the Fund listing 

venue will be in transition. 

Additionally, the Exchange states that 

waiver will allow the Fund to be listed 

on the Exchange in December 2018, 

which will allow the Fund 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 as 

operative upon filing.31

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 

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–2018–094 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–2018–094. 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–2018–094 and 

should be submitted on or before 

January 22, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.32

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28381 Filed 12–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84931; File No. SR– 

NYSEArca–2018–83] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Changes Regarding Investments 

of the iShares Bloomberg Roll Select 

Commodity Strategy ETF 

December 21, 2018. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that, on December 

19, 2018, NYSE Arca, Inc. (‘‘Exchange’’ 

or ‘‘NYSE Arca’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 


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