Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86635 

18For 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). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release Nos. 65249 

(September 2, 2011), 76 FR 55956 (September 9, 

2011) (SR–NYSEArca–2011–63) (Notice of Filing of 

Proposed Rule Change To List and Trade Shares of 

the United States Metals Index Fund, the United 

States Agriculture Index Fund and the United 

States Copper Index Fund Under NYSE Arca 

Equities Rule 8.200) (‘‘Prior Notice’’); 65601 

(October 20, 2011), 76 FR 66339 (October 26, 2011) 

(SR–NYSEArca–2011–63) (Order Approving a 

Proposed Rule Change To List and Trade Shares of 

the United States Metals Index Fund, the United 

States Agriculture Index Fund and the United 

States Copper Index Fund Under NYSE Arca 

Equities Rule 8.200) (‘‘Prior Order’’ and, together 

with the Prior Notice, the ‘‘Prior Releases’’). 

4On December 1, 2020 the Trust filed with the 

Commission an amended registration statement on 

Form S–1 under the Securities Act of 1933 relating 

Continued 

both charged as monthly fees, waiver of 

the operative delay would allow the 

Exchange to withdraw these products at 

the end of the calendar month on 

December 31, 2020, which would 

provide for a more orderly withdrawal 

for both the Exchange and current 

customers. 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 waives the 30-day 

operative delay and designates the 

proposal operative upon filing.18

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– 

NASDAQ–2020–088 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–NASDAQ–2020–088. 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–NASDAQ–2020–088 and 

should be submitted on or before 

January 20, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2020–28802 Filed 12–29–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90791; File No. SR– 

NYSEArca–2020–113] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Reflect a Change to 

the Index Underlying the United States 

Copper Index 

December 23, 2020. 

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, 2020, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or the ‘‘Exchange’’) 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 Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to reflect a 

change to the index underlying the 

United States Copper Index Fund, 

shares of which are currently listed and 

traded on the Exchange under NYSE 

Arca Rule 8.200–E. The proposed rule 

change is available on the Exchange’s 

website at www.nyse.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

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

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Commission has approved a 

proposed rule change relating to listing 

and trading on the Exchange of ‘‘Units’’ 

of the United States Copper Index Fund 

for listing and trading on the Exchange 

under NYSE Arca Rule 8.200–E (‘‘Trust 

Issued Receipts’’).3 The Exchange 

proposes to reflect a change to the 

SummerHaven Copper Index Total 

Return (the ‘‘Index’’), which is the index 

underlying the Units.4

86636 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

to the Trust (File No. 333–237184) (‘‘Registration 

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

Trust herein is based, in part, on the Prior Releases. 

The procedures described in this proposed rule 

change will not be implemented until this proposed 

rule change is effective and operative. 

5Eligible Copper Futures Contracts that at any 

given time make up the Index are referred to in the 

Prior Releases as ‘‘Benchmark Component Copper 

Futures Contracts.’’ 

6See Form 8–K filed with the Commission by the 

Trust on December 1, 2020 (File No. 001–34833). 

7For each month, the ‘‘Eligible Copper Futures 

Contracts’’ are as set forth in a chart appearing in 

the Registration Statement. 

8The Trust’s Basket size of 50,000 Shares is 

consistent with the August 8, 2018 letter from the 

Division of Trading and Markets granting no-action 

relief to certain commodity-based investment 

vehicles from Rules 101 and 102 of Regulation M 

under the Act. See footnote 2 to letter, dated August 

8, 2018, from Josephine J. Tao, Assistant Director, 

Division of Trading and Markets, to Eric Simanek, 

Sullivan & Worcester LLP. The Commission has 

previously approved listing and trading of Trust 

Issued Receipts on the Exchange where the size of 

a ‘‘Creation Unit’’ for a series of Trust Issued 

Receipts was 50,000 shares. See, e.g., Securities 

Exchange Act Release Nos. 58161 (July 15, 2008), 

73 FR 42380 (July 21, 2008) (SR–Amex–2008–39) 

(Order Granting Approval of Proposed Rule Change, 

as Modified by Amendment No. 1 Thereto, Relating 

to the Listing and Trading of Trust Issued Receipts 

that Directly Hold Investments in Certain Financial 

Instruments and to Permit the Listing and Trading 

of Shares of Fourteen Funds of the Commodities 

and Currency Trust); 66553 (March 9, 2012), 77 FR 

15440 (March 15, 2012) (SR–NYSEArca–2012–04) 

(Order Granting Approval of Proposed Rule Change 

Relating to Listing and Trading of Shares of 

Twenty-Six Series of ProShares Trust II under 

NYSE Arca Equities Rule 8.200). 

9See note 4, supra. All terms referenced but not 

defined herein are defined in the Prior Releases. 

10 15 U.S.C. 78f(b)(5). 

As stated in the Prior Releases, the 

Index is designed to reflect the 

performance of the investment returns 

from a portfolio of futures contracts for 

copper that are traded on the COMEX 

(such futures contracts, collectively, 

‘‘Eligible Copper Futures Contracts’’). 

The Index is comprised of either two or 

three Eligible Copper Futures Contracts 

that are selected on a monthly basis 

based on quantitative formulas relating 

to the prices of the Eligible Copper 

Futures Contracts developed by 

SummerHaven Indexing.5

The Exchange proposes to amend this 

representation to state that, beginning 

December 31, 2020, the Index will be 

revised such that, on the new Selection 

Date, as defined below, it will be 

comprised of either one or three Eligible 

Copper Futures Contracts that are 

selected on a monthly basis based on 

quantitative formulas relating to the 

prices of the Eligible Copper Futures 

Contracts developed by SummerHaven 

Indexing. The Trust announced this 

change in a Form 8–K filed with the 

Commission on December 1, 2020 and 

in the Registration Statement.6 The 

Form 8–K and the Registration 

Statement state that this revision to the 

composition of the Index is intended to 

ensure that the Index components at any 

given time represent copper futures 

contracts for which there is an active 

and liquid trading market. 

The Exchange also proposes to change 

the description in the Prior Notice 

regarding how Eligible Copper Futures 

Contracts are allocated in the Index. 

Specifically, the Prior Notice stated that, 

at the end of each month, (1) the copper 

futures curve is assessed to be in either 

backwardation or contango, and (2) the 

annualized percentage price difference 

between the closest-to-expiration 

Eligible Copper Futures Contract and 

each of the next four Eligible Copper 

Futures Contracts is calculated. If the 

copper futures curve is in 

backwardation at the end of a month, 

the Copper Index takes positions in the 

two Eligible Copper Futures Contracts 

with the highest annualized percentage 

price difference, each weighted at 50%. 

If the copper futures curve is in 

contango, then the Copper Index takes 

positions in three Eligible Copper 

Futures Contracts, as follows: First, the 

Copper Index takes positions in the two 

Eligible Copper Futures Contracts with 

the highest annualized percentage price 

difference, each weighted at 25%; then 

the Copper Index also takes a position 

in the nearest-to-maturity December 

Eligible Copper Futures Contract that 

has expiration more distant than the 

fourth nearest Eligible Copper Futures 

Contract, which position is weighted at 

50%. 

The Exchange proposes to change this 

representation to state that, if the copper 

futures curve is in backwardation on the 

‘‘Selection Date’’, the Index takes 

positions in the first Eligible Copper 

Futures Contract (which is the next 

nearest to maturity of the Eligible 

Futures Contracts), weighted at 100%. If 

the copper futures curve is in contango, 

then the Index takes positions in the 

first three Eligible Copper Futures 

Contracts, each position weighted at 

33.33%.7 The ‘‘Selection Date’’ is the 

10th business day of each month. In 

addition, the rebalancing period for the 

Index will change from the first four 

business days of each month to the 

11th–14th business days of each month, 

based on signals used for contract 

selection on the Selection Date, rather 

than the last business day of each month 

as is currently the case. As noted above, 

the Sponsor represents that these 

revisions to the composition of the 

Index are intended to ensure that the 

Index components at any given time 

represent copper futures contracts for 

which there is an active and liquid 

trading market. 

Regarding the proposed changes to 

the Selection Date and roll dates for the 

Index and the Fund, the Sponsor 

represents that moving the Selection 

Date would allow the Index and the 

Fund to include or hold Eligible Copper 

Futures Contracts in nearer months 

(meaning shorter duration) and with the 

greatest liquidity. This is particularly 

important when copper is in 

backwardation when it is advantageous 

for the Index and the Fund to include 

or hold Eligible Copper Futures 

Contracts in the closest month possible. 

The Exchange notes that the Prior 

Releases stated that the Fund will create 

Units only in blocks of 100,000 Units 

called ‘‘Creation Baskets’’ and redeem 

Units only in blocks of 100,000 Units 

called ‘‘Redemption Baskets’’. The 

Registration Statement states that the 

Fund creates Units only in blocks of 

50,000 Units and redeems Units only in 

blocks of 50,000 Units, which is the 

current size of Creation Baskets and 

Redemption Baskets. United States 

Commodity Funds LLC (the ‘‘Sponsor’’) 

represents that a lower size of a Creation 

or Redemption Basket is beneficial to 

investors by facilitating additional 

creation and redemption activity in the 

Shares that may result in increased 

secondary market trading activity, 

tighter bid/ask spreads and narrower 

premiums or discounts to net asset 

value.8

The Sponsor represents that the 

proposed changes described above will 

further assist the Trust to achieve its 

investment objective. Except for the 

changes noted above, all other 

representations made in the Prior 

Releases remain unchanged.9

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 10 that an 

exchange have rules that are designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to remove 

impediments to, and perfect the 

mechanism of a free and open market 

and, in general, to protect investors and 

the public interest. 

The 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. The 

Sponsor represents that the proposed 

revisions to the composition of the 

Index are intended to ensure that the 

Index components at any given time 

represent copper futures contracts for 

which there is an active and liquid 

trading market, which may help prevent 

fraudulent and manipulative practices. 

Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86637 

11 15 U.S.C. 78s(b)(3)(A). 

12 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 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. 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For 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). 16 17 CFR 200.30–3(a)(12). 

Regarding the proposed changes to 

the Selection Date and roll dates for the 

Index and the Fund, the Sponsor 

represents that moving the Selection 

Date would allow the Index and the 

Fund to include or hold Eligible Copper 

Futures Contracts in nearer months 

(meaning shorter duration) and with the 

greatest liquidity. This is particularly 

important when copper is in 

backwardation when it is advantageous 

for the Index and the Fund to include 

or hold Eligible Copper Futures 

Contracts in the closest month possible. 

With respect to the lower size of a 

Creation or Redemption Basket (50,000 

Shares rather than 100,000 Shares as 

stated in the Prior Releases), the 

Sponsor represents that such lower size 

is beneficial to investors by facilitating 

additional creation and redemption 

activity in the Shares that may result in 

increased secondary market trading 

activity, tighter bid/ask spreads and 

narrower premiums or discounts to net 

asset value. 

The Sponsor represents that the 

proposed changes described above will 

further assist the Trust to achieve its 

investment objective. Except for the 

changes noted above, all other 

representations made in the Prior 

Releases remain unchanged. 

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 and, by 

permitting the Index to include, and the 

Fund to hold, more liquid futures 

components at any given time, will 

enhance competition among issues of 

commodity-based Trust Issued Receipts. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally does not 

become operative for 30 days after the 

date of the filing. However, pursuant to 

Rule 19b–4(f)(6)(iii),14 the Commission 

may 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. The 

Exchange states the proposed rule 

change will accommodate the inclusion 

of more liquid and active copper futures 

contracts in the Index and, other than 

the changes to the index methodology 

and Creation and Redemption basket 

size described above, all other 

representations made in the Prior 

Releases remain unchanged. For this 

reason, the proposed rule change does 

not raise any novel regulatory issues, 

and the Commission believes that 

waiver of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. 

Therefore, the Commission waives the 

30-day operative delay and designates 

the proposal operative upon filing.15

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 will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEArca–2020–113 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2020–113. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NYSEArca–2020–113 and 

should be submitted on or before 

January 21, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2020–28889 Filed 12–29–20; 8:45 am] 

BILLING CODE 8011–01–P