Federal Register / Vol. 76, No. 6 / Monday, January 10, 2011 / Notices 1491 

17Trading may also 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 underlying futures contracts; 

or (2) whether other unusual conditions or 

circumstances detrimental to the maintenance of a 

fair and orderly market are present. 

18 17 CFR 240.10A–3. 19 17 CFR 240.10A–3(c)(7). 20The Commission notes that it does not regulate 

the market for futures in which the Fund plans to 

take positions, which is the responsibility of the 

CFTC. The CFTC has the authority to set limits on 

the positions that any person may take in futures. 

These limits may be directly set by the CFTC, or 

by the markets on which the futures are traded. The 

Commission has no role in establishing position 

limits on futures, even though such limits could 

impact an exchange-traded product that is under 

the jurisdiction of the Commission. 

21 15 U.S.C. 78f(b)(5). 22 15 U.S.C. 78s(b)(2). 23 17 CFR 200.30–3(a)(12). 

appropriately and to prevent trading 

when a reasonable degree of 

transparency cannot be assured. The 

Commission notes that the Web site 

disclosure of the portfolio composition 

of the Fund will occur at the same time 

as the disclosure by the Managing 

Owner of the portfolio composition to 

Authorized Participants so that all 

market participants are provided 

portfolio composition information at the 

same time. In addition, if the Exchange 

becomes aware that the NAV with 

respect to the Shares is not 

disseminated to all market participants 

at the same time, the Exchange will halt 

trading in the Shares until such time as 

the NAV is available to all market 

participants. Further, the Exchange may 

halt trading during the day in which an 

interruption to the dissemination to the 

ITV, the VIX Futures Index, the 

Volatility Index, or the value of the 

underlying futures contracts occurs. If 

such interruption persists past the 

trading day in which it occurred, the 

Exchange will halt trading no later than 

the beginning of the trading day 

following the interruption.17 Trading in 

the Shares will be subject to NYSE Arca 

Equities Rule 8.200, Commentary .02(e), 

which sets forth certain restrictions on 

ETP Holders acting as registered Market 

Makers in Trust Issued Receipts to 

facilitate surveillance. The Exchange 

represents that the Index Sponsor has 

implemented procedures designed to 

prevent the use and dissemination of 

material, non-public information 

regarding the Index. 

The Exchange has represented that 

the Shares are deemed to be equity 

securities subject to the Exchange’s 

existing rules governing the trading of 

equity securities. In support of this 

proposal, the Exchange has made 

representations, including: 

(1) The Fund will meet the initial and 

continued listing requirements 

applicable to Trust Issued Receipts in 

NYSE Arca Equities Rule 8.200 and 

Commentary .02 thereto. 

(2) The Exchange has appropriate 

rules to facilitate transactions in the 

Shares during all trading sessions. 

(3) The Exchange’s surveillance 

procedures are adequate to properly 

monitor Exchange trading of the Shares 

in all trading sessions and to deter and 

detect violations of Exchange rules and 

applicable Federal securities laws. In 

addition, with respect to Fund 

components traded on exchanges, not 

more than 10% of the weight of such 

components in the aggregate will consist 

of components whose principal trading 

market is not a member of the 

Intermarket Surveillance Group or is a 

market with which the Exchange does 

not have a comprehensive surveillance 

sharing agreement. 

(4) Prior to the commencement of 

trading, the Exchange will inform its 

ETP Holders in an Information Bulletin 

of the special characteristics and risks 

associated with trading the Shares. 

Specifically, the Information Bulletin 

will discuss the following: (a) The risks 

involved in trading the Shares during 

the Opening and Late Trading Sessions 

when an updated ITV will not be 

calculated or publicly disseminated; (b) 

the procedures for purchases and 

redemptions of Shares in Creation 

Baskets and Redemption Baskets (and 

that Shares are not individually 

redeemable); (c) NYSE Arca Equities 

Rule 9.2(a), which imposes a duty of 

due diligence on its ETP Holders to 

learn the essential facts relating to every 

customer prior to trading the Shares; (d) 

how information regarding the ITV is 

disseminated; (e) the requirement that 

ETP Holders deliver a prospectus to 

investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction; and (f) 

trading information. 

(5) With respect to the application of 

Rule 10A–3 under the Act,18 the Trust 

relies on the exception contained in 

Rule 10A–3(c)(7).19

(6) A minimum of 100,000 Shares of 

the Fund will be outstanding as of the 

start of trading on the Exchange. 

This approval order is based on the 

Exchange’s representations.20

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act 21 and the rules and 

regulations thereunder applicable to a 

national securities exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,22 that the 

proposed rule change (SR–NYSEArca– 

2010–103), be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–161 Filed 1–7–11; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Emergence Capital Partners SBIC, L.P. 

License No. 09/79–0454; Notice 

Seeking Exemption Under Section 312 

of the Small Business Investment Act, 

Conflicts of Interest 

Notice is hereby given that Emergence 

Capital Partners SBIC, L.P., 160 Bovet 

Road, Suite 300, San Mateo, CA 94402, 

a Federal Licensee under the Small 

Business Investment Act of 1958, as 

amended (‘‘the Act’’), in connection with 

the financing of a small concern, has 

sought an exemption under Section 312 

of the Act and Section 107.730, 

Financings which Constitute Conflicts 

of Interest of the Small Business 

Administration (‘‘SBA’’) Rules and 

Regulations (13 CFR 107.730). 

Emergence Capital Partners SBIC, L.P. 

proposes to provide equity financing to 

PivotLink, Inc., 15325 SE 30th Place, 

Suite 300, Bellevue, WA 98007. The 

financing is contemplated for working 

capital and general operating purposes. 

The financing is brought within the 

purview of § 107.730(a)(1) of the 

Regulations because Emergence Capital 

Partners, L.P. and Emergence Capital 

Associates, L.P., Associates of 

Emergence Capital Partners SBIC, L.P., 

own more than ten percent of PivotLink, 

Inc. Therefore, PivotLink, Inc is 

considered an Associate of Emergence 

Capital Partners SBIC, L.P. and this 

transaction is considered Financing an 

Associate, requiring prior SBA approval. 

Notice is hereby given that any 

interested person may submit written 

comments on the transaction within 15 

days of the date of this publication to 

the Associate Administrator for 

Investment, U.S. Small Business 

Administration, 409 Third Street, SW., 

Washington, DC 20416. 

Dated: December 3, 2010. 

Sean J. Greene, 

Associate Administrator for Investment. 

[FR Doc. 2010–33273 Filed 1–7–11; 8:45 am] 

BILLING CODE P 


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