4082 Federal Register / Vol. 77, No. 17 / Thursday, January 26, 2012 / Notices 

Act makes it unlawful for an investment adviser to 

provide investment advice to clients unless such 

investment adviser has (i) adopted and 

implemented written policies and procedures 

reasonably designed to prevent violation, by the 

investment adviser and its supervised persons, of 

the Advisers Act and the Commission rules adopted 

thereunder; (ii) implemented, at a minimum, an 

annual review regarding the adequacy of the 

policies and procedures established pursuant to 

subparagraph (i) above and the effectiveness of their 

implementation; and (iii) designated an individual 

(who is a supervised person) responsible for 

administering the policies and procedures adopted 

under subparagraph (i) above. 

23See NYSE Arca Equities Rule 8.600(d)(2)(B)(ii). 

24See 17 CFR 240.10A–3. 

25 15 U.S.C. 78f(b)(5). 

26 15 U.S.C. 78s(b)(2). 

27 17 CFR 200.30–3(a)(12). 

Further, the Commission notes that the 

Reporting Authority that provides the 

Disclosed Portfolio must implement and 

maintain, or be subject to, procedures 

designed to prevent the use and 

dissemination of material non-public 

information regarding the actual 

components of the portfolio.23 The 

Exchange states that it has a general 

policy prohibiting the distribution of 

material, non-public information by its 

employees. The Commission also notes 

that the Exchange is able to obtain 

information with respect to the 

Underlying ETPs from the U.S. 

exchanges, which are members of the 

Intermarket Surveillance Group, listing 

and trading such Underlying ETPs. 

The Exchange further represents that 

the Shares are deemed to be equity 

securities, thus rendering trading in the 

Shares 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 Shares will conform to the initial 

and continued listing criteria under NYSE 

Arca Equities Rule 8.600. 

(2) The Exchange has appropriate rules to 

facilitate transactions in the Shares during all 

trading sessions. 

(3) The Exchange’s surveillance procedures 

applicable to derivative products, which 

include Managed Fund Shares, 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. All 

Underlying ETPs will be listed on national 

securities exchanges, all of which are 

members of the Intermarket Surveillance 

Group. 

(4) Prior to the commencement of trading, 

the Exchange will inform its Equity Trading 

Permit (‘‘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 procedures for 

purchases and redemptions of Shares in 

Creation Unit aggregations (and that Shares 

are not individually redeemable); (b) 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; (c) the 

risks involved in trading the Shares during 

the Opening and Late Trading Sessions when 

an updated Portfolio Indicative Value will 

not be calculated or publicly disseminated; 

(d) how information regarding the Portfolio 

Indicative Value 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) For initial and/or continued listing, the 

Fund will be in compliance with Rule 10A– 

3 under the Act,24 as provided by NYSE Arca 

Equities Rule 5.3. 

(6) The Fund will not: (a) Purchase illiquid 

securities, including Rule 144A securities 

and loan participation agreements; (b) 

pursuant to the terms of the Exemptive 

Order, invest in options contracts, futures 

contracts, or swap agreements; and (c) except 

for Underlying ETPs that may hold non-U.S. 

issues, otherwise invest in non-U.S. issues. 

(7) The Fund’s investments will be 

consistent with the Fund’s investment 

objective and will not be used to enhance 

leverage. 

(8) A minimum of 100,000 Shares of the 

Fund will be outstanding at the 

commencement of trading on the Exchange. 

This approval order is based on the 

Exchange’s representations. 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act 25 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,26 that the 

proposed rule change (SR–NYSEArca– 

2011–86) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–1582 Filed 1–25–12; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 7774] 

Review and Amendment of the 

Designation of al-Qa’ida in Iraq, et al. 

as a Foreign Terrorist Organization 

Pursuant to Section 219 of the 

Immigration and Nationality Act 

In the Matter of the Review and 

Amendment of the Designation of al-Qa’ida 

in Iraq, aka Jam’at al Tawhid wa’al-Jihad, aka 

The Monotheism and Jihad Group, aka The 

al-Zarqawi Network, aka al-Tawhid, aka 

Tanzim Qa‘idat al-Jihad fi Bilad al-Rafidayn, 

aka The Organization of al-Jihad’s Base of 

Operations in Iraq, aka al-Qaida of Jihad in 

Iraq, aka al-Qaida in Iraq, aka al-Qaida in 

Mesopotamia, aka al-Qaida in the Land of the 

Two Rivers, aka al-Qaida of the Jihad in the 

Land of the Two Rivers, aka al-Qaida of Jihad 

Organization in the Land of the Two Rivers, 

aka al-Qaida Group of Jihad in Iraq, aka alQaida Group of Jihad in the Land of the Two 

Rivers, aka The Organization of Jihad’s Base 

in the Country of the Two Rivers, aka The 

Organization Base of Jihad/Country of the 

Two Rivers, aka The Organization of alJihad’s Base in the Land of the Two Rivers, 

aka The Organization Base of Jihad/ 

Mesopotamia, aka The Organization of alJihad’s Base of Operations in the Land of the 

Two Rivers, aka Tanzeem qa’idat al Jihad/ 

Bildad al Raafidaini, as a Foreign Terrorist 

Organization pursuant to Section 219 of the 

Immigration and Nationality Act. 

Based upon a review of the 

Administrative Record assembled in 

this matter pursuant to Section 

219(a)(4)(C) of the Immigration and 

Nationality Act, as amended (8 U.S.C. 

1189(a)(4)(C)) (‘‘INA’’), and in 

consultation with the Attorney General 

and the Secretary of the Treasury, the 

Secretary of State concludes that the 

circumstances that were the basis for the 

2004 designation of the aforementioned 

organization as a foreign terrorist 

organization have not changed in such 

a manner as to warrant revocation of the 

designation and that the national 

security of the United States does not 

warrant a revocation of the designation, 

and that there is a sufficient factual 

basis to find that al-Qa’ida in Iraq, also 

known under the aliases listed above, 

uses or has used an additional alias, 

namely, Islamic State of Iraq. 

Therefore, the Secretary of State 

hereby determines that the designation 

of the aforementioned organization as a 

foreign terrorist organization, pursuant 

to Section 219 of the INA (8 U.S.C. 

1189), shall be maintained, and in 

addition, effective upon the date of 

publication in the Federal Register, the 

Secretary of State hereby amends the 

2004 designation of al-Qa’ida in Iraq as 

a foreign terrorist organization, pursuant 

to § 219(b) of the INA (8 U.S.C. 1189(b)), 

to include the following new alias and 

other possible transliterations thereof: 

Islamic State of Iraq. 

Dated: January 11, 2012. 

Hillary Rodham Clinton, 

Secretary of State. 

[FR Doc. 2012–1538 Filed 1–25–12; 8:45 am] 

BILLING CODE 4710–10–P 

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