Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 28689 

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

12 17 CFR 240.19b–4(f)(2). 

13 15 U.S.C. 78s(b)(2)(B). 

14 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. 

of the purposes of the Act. Instead, the 

Exchange believes that the proposed 

rule change would encourage the 

submission of additional liquidity to a 

public exchange, thereby promoting 

price discovery and transparency and 

enhancing order execution 

opportunities for ETP Holders. The 

Exchange believes that this could 

promote competition between the 

Exchange and other execution venues, 

including those that currently offer 

similar order types and comparable 

transaction pricing, by encouraging 

additional orders to be sent to the 

Exchange for execution. The Exchange 

also believes that the proposed rule is 

designed to provide the public and 

investors with a Schedule of Fees and 

Rebates that is clear and consistent, 

thereby reducing burdens on the 

marketplace and facilitating investor 

protection. 

Finally, the Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily favor competing venues if they 

deem fee levels at a particular venue to 

be excessive or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees and rebates to remain competitive 

with other exchanges and with 

alternative trading systems that have 

been exempted from compliance with 

the statutory standards applicable to 

exchanges. Because competitors are free 

to modify their own fees and credits in 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. As a result of all of these 

considerations, the Exchange does not 

believe that the proposed changes will 

impair the ability of ETP Holders or 

competing order execution venues to 

maintain their competitive standing in 

the financial markets. 

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 

The foregoing rule change is effective 

upon filing pursuant to Section 

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

subparagraph (f)(2) of Rule 19b–4 12

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 13 of the Act 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– 

NYSENAT–2018–13 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSENAT–2018–13. 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; 

the Commission does not edit personal 

identifying information from 

submissions. 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–NYSENAT–2018–13 

and should be submitted on or before 

July 11, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13166 Filed 6–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83447; File No. SR– 

NYSEArca–2018–39] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating To Changes in 

the Description of the Investments of 

the USCF Canadian Crude Oil Index 

Fund 

June14, 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 May 31, 

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 and II 

below, which Items have been prepared 

by the self-regulatory organization. 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 

changes in the description of the 

investments of the USCF Canadian 

Crude Oil Index Fund (the ‘‘Fund’’). 


sradovich on DSK3GMQ082PROD with NOTICES
28690 Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 

4See Securities Exchange Act Release No. 81655 

(September 19, 2017), 82 FR 44678 (September 25, 

2017) (Notice of Filing of Amendment No. 4, and 

Order Granting Accelerated Approval of a Proposed 

Rule Change, as Modified by Amendment No. 4, 

Relating to the Listing and Trading of Shares of the 

USCF Canadian Crude Oil Index Fund Under NYSE 

Arca Rule 8.200–E) (‘‘Prior Order’’). See also 

Amendment No. 4 to SR–NYSEArca–2016–177, 

available at https://www.sec.gov/comments/srnysearca-2016-177/nysearca2016177-2228753- 

160788.pdf (‘‘Prior Amendment’’). All terms 

referenced but not defined herein are defined in the 

Prior Order and Prior Amendment. 

5Commentary .02 to NYSE Arca Rule 8.200–E 

applies to Trust Issued Receipts that invest in 

‘‘Financial Instruments.’’ The term ‘‘Financial 

Instruments,’’ as defined in Commentary .02(b)(4) to 

NYSE Arca Rule 8.200–E, means any combination 

of investments, including cash; securities; options 

on securities and indices; futures contracts; options 

on futures contracts; forward contracts; equity caps, 

collars, and floors; and swap agreements. 

6The Trust is registered under the Securities Act 

of 1933 (15 U.S.C. 77a) (‘‘Securities Act’’). On June 

16, 2016, the Trust filed with the Commission a 

registration statement on Form S–1 under the 

Securities Act relating to the Fund (File No. 333– 

212089) (‘‘Registration Statement’’). Pre-Effective 

Amendment No. 2 to the Registration Statement 

was filed on April 9, 2018. The changes described 

herein will not be implemented until an 

amendment to the Registration Statement relating to 

such changes is effective and this proposed rule 

change is effective and operative. 

7The Prior Amendment stated the following in 

footnote 9: ‘‘For purposes of this filing, cash 

equivalents are short-term instruments with 

maturities of less than three months and shall 

include the following: (i) Certificates of deposit 

issued against funds deposited in a bank or savings 

and loan association; (ii) bankers’ acceptances, 

which are short-term credit instruments used to 

finance commercial transactions; (iii) repurchase 

agreements and reverse repurchase agreements; (iv) 

bank time deposits, which are monies kept on 

deposit with banks or savings and loan associations 

for a stated period of time at a fixed rate of interest; 

(v) commercial paper, which are short-term 

unsecured promissory notes; and (vi) money market 

funds.’’ 

8As noted in the Prior Amendment, not more 

than 10% of the net assets of the Fund in the 

aggregate invested in futures contracts, or options 

on futures shall consist of futures contracts, or 

options on futures whose principal market is not a 

member of the Intermarket Surveillance Group or is 

Shares of the Fund have been approved 

by the Securities and Exchange 

Commission (the ‘‘Commission’’) for 

listing and trading on the Exchange 

under NYSE Arca Rule 8.200–E, 

Commentary .02. The Fund’s shares 

have not commenced trading on the 

Exchange. 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 shares 

(‘‘Shares’’) of the Fund under NYSE 

Arca Rule 8.200–E,4 which governs the 

listing and trading of Trust Issued 

Receipts.5 The Fund is a new series of 

the United States Commodity Index 

Funds Trust (the ‘‘Trust’’).6 The Fund’s 

Shares have not commenced trading on 

the Exchange. 

As stated in the Prior Amendment, 

according to the Registration Statement, 

the investment objective of the Fund is 

for the daily changes in percentage 

terms of per Share NAV to reflect the 

daily changes in percentage terms of the 

Canadian Crude Excess Return Index 

(the ‘‘CCIER’’ or ‘‘Index’’), plus interest 

income from the Fund’s short-term fixed 

income holdings, less the Fund’s 

expenses. 

The Prior Amendment stated as 

follows (included on pages 5–6 of the 

Prior Amendment): ‘‘The Fund will seek 

to achieve its investment objective by 

first entering into cash-settled uncleared 

over-the-counter (‘‘OTC’’) total return 

swap and/or forward transactions based 

on, and intended to replicate the return 

of, the CCIER (‘‘Benchmark OTC 

Derivatives Contracts’’, as described 

further below), and, second, to the 

extent market conditions are more 

favorable for such futures as compared 

to Benchmark OTC Derivatives 

Contracts, investing in the Benchmark 

Component Futures Contracts that 

underlie the CCIER. It will support these 

investments and investments in any 

other OTC derivatives contracts by 

holding the amounts of its margin, 

collateral and other requirements 

relating to these obligations in shortterm obligations of the United States of 

two years or less (‘‘Treasuries’’), cash 

and cash equivalents. [footnote 9] 7

Third, if constrained by regulatory 

requirements or in view of market 

conditions or if one or more of the other 

Benchmark Component Futures 

Contracts is not available, the Fund may 

next invest in exchange traded futures 

contracts that are economically identical 

or substantially similar to the 

Benchmark Component Futures 

Contracts, e.g., futures contracts that are 

based on changes in the price of WTI oil 

traded on the CME. 

When, in view of regulatory 

requirements and market conditions, the 

Fund has invested to the fullest extent 

possible in the Benchmark OTC 

Derivatives Contracts and exchangetraded futures contracts, the Fund may 

then invest in (i) cleared swap contracts 

based on the Benchmark Component 

Futures Contracts, (ii) uncleared OTC 

derivatives contracts (specifically, 

swaps, forwards and options) based on 

either the price of the Benchmark 

Component Futures Contracts or on the 

price of the crude oil underlying the 

Benchmark Component Futures 

Contracts, and (iii) exchange-traded 

options on the Benchmark Component 

Futures Contracts. The foregoing 

investments, together with the 

Benchmark Component Futures 

Contracts and other exchange-traded 

futures contracts that are economically 

identical or substantially similar to the 

Benchmark Component Futures 

Contracts are referred to collectively as 

‘Other Crude Oil-Related Investments’. 

Market conditions that USCF 

currently anticipates could cause the 

Fund to invest in Other Crude OilRelated Investments include those 

allowing the Fund to obtain greater 

liquidity, to execute transactions with 

more favorable pricing, or if the Fund or 

USCF exceeds position limits or 

accountability levels established by an 

exchange.’’ 

The Exchange proposes to replace the 

representations in the four preceding 

paragraphs regarding the Fund’s 

investments with the following: 

The Fund will seek to achieve its 

investment objective first by investing 

in the nearby futures contracts that 

comprise the CCIER, i.e., (i) the ICE 

Crude Diff—TMX WCS 1B Index Future 

(ICE symbol: TDX) (the ‘‘WCS Future’’); 

and (ii) the ICE WTI Crude Future (ICE 

symbol: T) (the ‘‘WTI Future’’) (the WCS 

Futures and WTI Futures that comprise 

the CCIER are referred to herein as 

‘‘Benchmark Component Futures 

Contracts’’) and may also invest in 

exchange traded futures contracts that 

are economically identical or 

substantially similar to the Benchmark 

Component Futures Contracts, e.g., 

futures contracts that are based on 

changes in the price of WTI crude oil 

traded on the Chicago Mercantile 

Exchange (‘‘CME’’), (together with the 

Benchmark Component Futures 

Contracts, ‘‘eligible futures contracts’’).8


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a market with which the Exchange does not have 

a comprehensive surveillance sharing agreement. 9The definition of ‘‘cash equivalents’’ is 

unchanged from the definition in the Prior 

Amendment. See note 7, supra. 

10The caption ‘‘Benchmark OTC Derivatives 

Contracts’’ would be replaced by ‘‘OTC Derivatives 

Contracts.’’ 

Thereafter, in view of regulatory 

requirements and market conditions and 

if the Fund has invested to the fullest 

extent possible in the eligible futures 

contracts described above, the Fund 

may then enter into any of the 

following: (i) Cleared swap contracts 

based on eligible futures contracts, (ii) 

cash-settled, uncleared over-the-counter 

(‘‘OTC’’) derivatives contracts 

(specifically, swaps, forwards and 

options) based on the price of the 

Benchmark Component Futures 

Contracts, other eligible futures 

contracts, the return on the CCIER or on 

the price of the crude oil underlying the 

Benchmark Component Futures 

Contracts (‘‘OTC derivatives contracts’’), 

or (iii) exchange-traded options on the 

Benchmark Component Futures 

Contracts. The foregoing investments, 

other than eligible futures contracts, are 

referred to collectively as ‘‘Other Crude 

Oil-Related Investments’’. Market 

conditions that USCF currently 

anticipates could cause the Fund to 

invest in Other Crude-Oil Related 

Investments include those allowing the 

Fund to obtain greater liquidity, to 

execute transactions with more 

favorable pricing, or if the Fund or 

USCF exceeds position limits or 

accountability levels established by an 

exchange. The Fund will support the 

margin, collateral and other 

requirements relating to its investments 

in eligible futures contracts and Other 

Crude Oil-Related Investments by 

holding the remaining amounts of its 

assets in short-term obligations of the 

United States with maturities of two 

years or less (‘‘Treasuries’’), cash and 

cash equivalents.9

Deletion of References to Benchmark 

OTC Derivatives Contracts 

Because the Fund will not seek to 

achieve its investment objective by first 

entering into Benchmark OTC 

Derivatives Contracts, as stated in the 

Prior Amendment, and because the term 

‘‘Benchmark OTC Derivatives 

Contracts’’ will not be used to describe 

the Fund’s investments, the Exchange 

proposes to delete or modify references 

to Benchmark OTC Derivatives 

Contracts or to the Fund’s significant 

use of OTC derivatives contracts in the 

Prior Amendment, as described below. 

The Exchange proposes to delete the 

following phrase from the second 

sentence of the last partial paragraph on 

page 6 of the Prior Amendment: 

‘‘Notwithstanding the Fund’s significant 

use of OTC derivatives contracts. . .’’. 

Thus such sentence would read: ‘‘The 

Sponsor believes that market arbitrage 

opportunities will cause daily changes 

in the Fund’s Share price on the NYSE 

Arca on a percentage basis to closely 

track the daily changes in the Fund’s 

per Share NAV on a percentage basis.’’ 

The Exchange proposes to delete the 

following phrase from the sentence 

comprising footnote 10 of the Prior 

Amendment: ‘‘While the Fund will 

primarily be composed of, and therefore 

will be a measure of, the prices of the 

Benchmark OTC Derivatives Contracts 

based upon futures comprising the 

CCIER,’’. The remainder of such 

sentence, beginning with ‘‘there is 

expected to be a reasonable degree of 

correlation’’, would be unchanged. 

The Prior Amendment stated as 

follows (included on page 7 of the Prior 

Amendment): ‘‘According to the 

Registration Statement, the Fund will 

primarily invest in Benchmark OTC 

Derivatives Contracts that are based on 

the CCIER which is comprised of the 

Benchmark Component Futures 

Contracts and, in the opinion of the 

Sponsor, are traded in sufficient volume 

to permit the ready taking and 

liquidation of positions. Such 

Benchmark OTC Derivatives Contracts, 

as well as all other Other Crude OilRelated Investments that are OTC 

derivatives, will be ‘‘swaps’’ for 

purposes of Title VII of the Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act that fall within the 

jurisdiction of the Commodity Futures 

Trading Commission.’’ 10

The Exchange proposes to replace 

these statements with the following: ‘‘In 

the opinion of the Sponsor, the Other 

Crude-Oil Related Investments are 

traded in sufficient volume to permit 

the ready taking and liquidation of 

positions. Such other Other Crude OilRelated Investments that are cleared 

swaps and OTC derivatives contracts, 

will be ‘‘swaps’’ for purposes of Title VII 

of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act that fall 

within the jurisdiction of the 

Commodity Futures Trading 

Commission.’’ 

The Prior Amendment stated as 

follows (included in the last paragraph 

on page 7 of the Prior Amendment): 

‘‘The OTC derivatives contracts, 

including the Benchmark OTC 

Derivatives Contracts, will be entered 

between two parties, outside of public 

exchanges, in private contracts. Unlike 

the exchange-traded Benchmark 

Component Futures Contracts and the 

other exchange traded futures contracts, 

each party to an OTC derivatives 

contract bears credit risk with respect to 

the other party.’’ 

The Exchange proposes to replace 

these statements with the following: 

‘‘The OTC derivatives contracts will be 

entered between two parties, outside of 

public exchanges, in private contracts. 

Unlike the eligible futures contracts, 

each party to an OTC derivatives 

contract bears credit risk with respect to 

the other party.’’ 

The first sentence on page 8 of the 

Prior Amendment states as follows: ‘‘In 

accordance with the terms and 

conditions of the Fund’s ISDA Master 

Agreements, pursuant to which the 

Fund’s OTC derivatives contracts will 

be entered into, the Fund will be 

entitled to increase or decrease its 

notional exposure to the CCIER from 

time to time, to among other things, 

manage Share purchases and 

reinvestment of distributions, Fund 

Share redemptions and market 

repurchases of Shares, and meet other 

liquidity needs.’’ 

The Exchange proposes to replace this 

sentence with the following: ‘‘In 

accordance with the terms and 

conditions of the Fund’s ISDA Master 

Agreements, pursuant to which the 

Fund’s OTC derivatives contracts will 

be entered into, the Fund will be 

entitled to increase or decrease its 

notional exposure under the applicable 

OTC derivatives contracts to, among 

other things, manage Share purchases, 

Fund Share redemptions and market 

repurchases of Shares, and meet other 

liquidity needs.’’ 

The Exchange proposes to delete the 

phrase ‘‘, including the Benchmark OTC 

Derivatives Contracts,’’ from the first 

full paragraph on page 8 of the Prior 

Amendment. 

The first two sentences of the second 

full paragraph on page 8 of the Prior 

Amendment state as follows: ‘‘The daily 

marked-to-market value of a Benchmark 

OTC Derivatives Contract will be based 

upon the performance of a notional 

investment in the CCIER. In turn, the 

performance of the CCIER will be based 

upon the performance of the underlying 

Benchmark Component Futures 

Contracts.’’ 

The Exchange proposes to replace 

these sentences with the following 

sentence: ‘‘The daily marked-to-market 

value of a cleared swap contract or an 

OTC derivatives contract will be based 

upon the performance of Benchmark 

Component Futures Contracts, other 

eligible futures contracts, the return of 

the CCIER, or on the price of the crude 


sradovich on DSK3GMQ082PROD with NOTICES
28692 Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 

11The Commission has previously approved the 

listing and trading on the Exchange of Trust Issued 

Receipts listed under NYSE Arca Rule 8.600–E [sic], 

Commentary .02 for which creation and redemption 

orders must be placed by noon, E.T. See, e.g., 

Securities Exchange Act Release No. 66466 

(February 24, 2012), 77 FR 12631 (March 1, 2012) 

(SR–NYSEArca–2011–97) (Order Granting Approval 

of Proposed Rule Change Relating to Listing and 

Trading of Shares of the Teucrium Agriculture 

Fund under NYSE Arca Equities Rule 8.200). 

oil underlying Benchmark Component 

Futures Contracts.’’ 

The third full paragraph on page 8 of 

the Prior Amendment states as follows: 

‘‘The Fund may also enter into multiple 

Benchmark OTC Derivatives Contracts 

for the purpose of achieving its 

investment objective. If a Benchmark 

OTC Derivatives Contract is terminated, 

the Fund may either pursue the same or 

other alternative investment strategies 

with an acceptable counterparty, or 

make direct investments in the 

Benchmark Component Futures 

Contracts or other investments 

described above that provide a similar 

return to investing in the Benchmark 

Component Futures Contracts.’’ 

The Exchange proposes to replace this 

paragraph with the following: ‘‘If an 

OTC derivatives contract is terminated, 

the Fund may either pursue the same or 

other alternative investments with 

another acceptable counterparty, or 

make direct investments in the eligible 

futures contracts or other investments 

described above.’’ 

Because the Fund will seek to achieve 

its investment objective first by 

investing in the nearby futures contracts 

that comprise the CCIER rather than by 

first entering into Benchmark OTC 

Derivatives Contracts, as stated in the 

Prior Amendment, the Sponsor has 

determined that it is appropriate to 

establish a later cutoff time for placing 

purchase and redemption orders. The 

first full paragraph on page 10 of the 

Prior Amendment states as follows: 

‘‘Purchase orders and redemption orders 

must be placed by 10:30 a.m. E.T. or the 

close of regular trading on the NYSE 

Arca, whichever is earlier. [footnote 

13]’’ The Exchange proposes to replace 

the preceding sentence with the 

following: ‘‘Purchase orders and 

redemption orders must be placed by 

noon E.T. or the close of regular trading 

on the NYSE Arca, whichever is earlier. 

[footnote 13]’’ 

The first sentence of footnote 13 of the 

Prior Amendment states as follows: 

‘‘USCF represents that an Authorized 

Participant’s arbitrage opportunities 

with respect to the price it must pay for 

a Creation Basket will not be materially 

impacted by the requirement that the 

purchase and redemption order must be 

received by 10:30 a.m. E.T. which is 

prior to the ICE Futures Europe closing 

time.’’ The Exchange proposes to 

replace this sentence with the following: 

‘‘USCF represents that an Authorized 

Participant’s arbitrage opportunities 

with respect to the price it must pay for 

a Creation Basket will not be materially 

impacted by the requirement that the 

purchase and redemption order must be 

received by noon E.T., which is prior to 

the ICE Futures Europe closing time.’’ 11

The Prior Amendment stated as 

follows (included on pages 8–9 of the 

Prior Amendment): 

‘‘The Fund may also enter into certain 

transactions where an OTC derivatives 

contract component is exchanged for a 

corresponding futures contract (an 

‘‘Exchange for Related Position’’ or 

‘‘EFRP’’ transaction).’’ 

The Exchange proposes to replace this 

sentence with the following: ‘‘The Fund 

may also enter into certain transactions 

where a cleared swap or an OTC 

derivatives contract component is 

exchanged for a corresponding futures 

contract (an ‘‘Exchange for Related 

Position’’ or ‘‘EFRP’’ transaction).’’ 

The Prior Amendment stated as 

follows (included on pages 10–11 of the 

Prior Amendment, under ‘‘Calculating 

Per Share NAV’’): ‘‘The Benchmark OTC 

Derivatives Contracts will be valued by 

the Administrator using the publicly 

available CCIER price. The CCIER is 

determined by the index calculation 

agent using, the last reported closing or 

settlement prices of the Benchmark 

Component Futures Contracts 

determined by ICE Futures Europe 

(determined as of 2:30 p.m. E.T. or the 

earlier close of such exchange that day) 

or, [footnote 14] in the case of a market 

disruption and no determination being 

made by ICE Futures Europe, the last 

traded price before 2:30 p.m. E.T. that 

day. For other futures contracts traded 

on exchanges the Administrator will use 

the closing or settlement price 

published by the applicable exchange 

or, in the case of a market disruption, 

the last traded price before settlement.’’ 

The Exchange proposes to replace 

these sentences with the following: 

‘‘The Benchmark Component Futures 

Contracts will be valued by the 

Administrator using the publicly 

available last reported closing or 

settlement prices of the these futures 

contracts determined by ICE Futures 

Europe (determined as of 2:30 p.m. E.T. 

or the earlier close of such exchange 

that day) or, [footnote 14] in the case of 

a market disruption and no 

determination being made by ICE 

Futures Europe, the last traded price 

before 2:30 p.m. E.T. that day. For other 

futures contracts traded on exchanges 

the Administrator will use the closing or 

settlement price published by the 

applicable exchange or, in the case of a 

market disruption, the last traded price 

before settlement. In general, the values 

of a cleared swap contract or an OTC 

derivatives contract will be based on the 

performance of the Benchmark 

Component Futures Contracts, other 

eligible futures contracts, the return on 

the CCIER, or on the price of the crude 

oil underlying the Benchmark 

Component Futures Contracts. The 

value of the CCIER will be the value 

determined by the index calculation 

agent using the reported closing or 

settlement prices of the Benchmark 

Component Futures Contracts.’’ 

Footnote 14 of the Prior Amendment 

stated as follows: 

‘‘The value of the CCIER for purposes 

of determining the Fund’s end of day 

NAV and the purchase or redemption 

price for the shares by Authorized 

Participants will be determined as of 

2:30 p.m. E.T. which is the designated 

time for determining the daily 

settlement price of the Benchmark 

Component Futures Contracts. The 

Benchmark Component Futures 

Contracts on ICE Futures Europe 

continue to trade past 2:30 p.m. E.T. and 

through the end of the NYSE Arca Core 

Trading Session at 4:00 p.m. E.T.’’ 

The Exchange proposes to delete the 

first sentence of footnote 14 of the Prior 

Amendment so that such footnote reads 

as follows: 

‘‘The Benchmark Component Futures 

Contracts on ICE Futures Europe 

continue to trade past 2:30 p.m. E.T. and 

through the end of the NYSE Arca Core 

Trading Session at 4:00 p.m. E.T.’’ 

The last sentence of the first full 

paragraph on page 16 of the Prior 

Amendment stated as follows: 

‘‘The Information Bulletin will also 

reference that the CFTC has regulatory 

jurisdiction over the trading of 

Benchmark Component Futures 

Contracts and the Benchmark OTC 

Derivatives Contracts.’’ 

The Exchange proposes to replace this 

sentence with the following: 

‘‘The Information Bulletin will also 

reference that the CFTC has regulatory 

jurisdiction over the trading of 

Benchmark Component Futures 

Contracts, cleared swaps and certain 

OTC derivatives contracts.’’ 

The Exchange proposes to add 

reference to cleared swap contracts in 

the description of portfolio holdings to 

be made available on the Fund’s 

website, as described in the first full 

paragraph on page 12 of the Prior 

Amendment and the third paragraph on 

page 17 of the Prior Amendment. 

Therefore, the Exchange proposes to 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 28693 

12 15 U.S.C. 78f(b)(5). 

13 15 U.S.C. 78s(b)(3)(A). 

14 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. 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6)(iii). 

17The Commission has previously approved the 

listing and trading of other Trust Issued Receipts 

under NYSE Arca Rule 8.200–E, Commentary .02 

that primarily invest in oil futures contracts. See, 

e.g., Securities Exchange Act Release No. 80427 

(April 11, 2017), 82 FR 18058 (April 14, 2017) (SR– 

NYSEArca-2016–173). 

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). 

state that website disclosure of portfolio 

holdings will be made daily and will 

include, as applicable, (i) the composite 

value of the total portfolio, (ii) the 

quantity and type (including maturity, 

effective date, ticker symbol or other 

identifier, if any) and other descriptive 

information, and value of each holding, 

including, in the case of cleared swap 

contracts or an OTC derivatives 

contract, the type of cleared swap 

contract or OTC derivatives contract, its 

notional value and the underlying 

instrument, index or asset on which the 

cleared swap contract or OTC 

derivatives contract is based, and, in the 

case of cleared swaps, the clearinghouse 

for such swaps, and, in the case of 

options, its strike price, (iii) the type 

(including maturity, effective date, 

ticker symbol or other identifier, if any) 

and value of each Treasury security and 

cash equivalent, and (iv) the amount of 

cash held in the Fund’s portfolio. 

Except for the changes noted above, 

all other representations made in the 

Prior Amendment remain unchanged. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 12 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 

Trust’s ‘‘Sponsor’’, United States 

Commodity Funds LLC, represents that 

it has determined that, in satisfying the 

Fund’s investment objective, it is 

preferable for the Fund first to invest in 

the futures contracts that comprise the 

CCIER or other eligible futures 

contracts, as described above, instead of 

first entering into cash-settled, 

uncleared OTC total return swap and/or 

forward transactions based on, and 

intended to replicate the return of, the 

CCIER. The Sponsor also represents 

that, in general, the futures markets are 

more liquid than OTC derivatives and 

more directly reflect the values of the 

futures contracts underlying the CCIER. 

The proposed deletions or changes to 

references to the term ‘‘Benchmark OTC 

Derivatives Contracts’’ as used in the 

Prior Amendment are appropriate in 

that, going forward, such term will not 

be used to describe the Fund’s 

investments. 

The Fund will comply with all initial 

and continued listing requirements 

under NYSE Arca Rule 8.200–E and 

Commentary .02 thereto. Except for the 

changes noted above, all other 

representations made in the Prior 

Amendment 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. The Exchange 

believes the proposed rule change 

relating to the Fund’s investments will 

provide the Fund with the greater 

ability to utilize listed futures contracts 

and facilitate the Fund’s ability to 

satisfy its investment objective, and will 

enhance market competition with 

respect to trading in the Fund’s Shares. 

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 13 and Rule 19b– 

4(f)(6) thereunder.14

A proposed rule change filed 

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

Act 15 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 16

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 

requested that the Commission waive 

the 30-day operative delay so that the 

proposed rule change may become 

operative upon filing. The Exchange 

states that the Shares have not 

commenced trading on the Exchange, 

and waiver of the operative delay would 

accommodate trading in the Shares on 

the Exchange before the 30-day delayed 

operative date. Moreover, according to 

the Exchange, the proposal would 

provide the Fund with greater ability to 

utilize listed futures contracts and 

facilitate the Fund’s ability to satisfy its 

investment objective.17 The 

Commission believes that waiver of the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. Accordingly, the 

Commission hereby waives the 

operative delay and designates the 

proposed rule change operative upon 

filing.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– 

NYSEArca–2018–39 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 


sradovich on DSK3GMQ082PROD with NOTICES
28694 Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer that has been admitted 

to membership in the Exchange.’’ See Exchange 

Rule 1.5(n). 

6 ‘‘Setter Add TCV’’ [sic] means total consolidated 

volume calculated as the volume reported by all 

exchanges and trade reporting facilities to a 

consolidated transaction reporting plan for the 

month for which the fees apply. 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2018–39. 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–2018–39 and 

should be submitted on or before July 

11, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13172 Filed 6–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83438; File No. SR– 

CboeBZX–2018–039] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to Fees 

for Use on Cboe BZX Exchange, Inc. 

June 14, 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 June 1, 

2018, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) 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 prepared 

by the Exchange. The Exchange has 

designated the proposed rule change as 

one establishing or changing a member 

due, fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change effective upon 

filing with the Commission. 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 filed a proposal to 

amend the fee schedule applicable to 

Members 5 and non-Members of the 

Exchange pursuant to BZX Rules 15.1(a) 

and (c). OR [sic] 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.markets.cboe.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 

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 parts 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 amend its 

fee schedule applicable to its equities 

trading platform (‘‘BZX Equities’’). 

Particularly, the Exchange proposes to 

amend the NBBO Setter Tiers effective 

June 1, 2018. 

The Exchange currently offers two 

NBBO Setter Tiers under footnote 19, 

which provide an additional rebate of 

$0.00015 to $0.0004 per share for orders 

that establish a new National Best Bid 

or Offer (‘‘NBBO’’) and which are 

appended with fee code B, V or Y. The 

Exchange notes that the proposed [sic] 

the NBBO Setter Tiers are additive 

rebates, and thus, can be combined with 

other incentives and structures offered 

by the Exchange. The Exchange 

proposes to amend both NBBO Setter 

Tiers 1 and 2. 

First, the Exchange proposes to 

amend NBBO Setter Tier 1. Currently, a 

Member will receive a rebate of 

$0.00015 per share where a Member has 

a Setter Add TCV 6 of greater than or 

equal to 0.10%. The Exchange proposes 

to increase the rebate for NBBO Setter 

Tier 1 from $0.00015 to $0.0003 per 

share. The Exchange also proposes to 

increase the Setter Add TCV 

requirement from 0.10% to 0.15%. 

Lastly, the Exchange proposes to 

amend NBBO Setter Tier 2. Currently, a 

Member will receive a rebate of $0.0004 

per share where a Member has a Setter 

Add TCV of greater than or equal to 

0.15%. The Exchange proposes to 

increase the Setter Add TCV 

requirement from 0.15% to 0.20%. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with the objectives of Section 6 of the 

Act,7 in general, and furthers the 

objectives of Section 6(b)(4),8 in 

particular, as it is designed to provide 

for the equitable allocation of reasonable 

dues, fees and other charges among its 

Members and other persons using its 

facilities. The Exchange also notes that 

it operates in a highly-competitive 

market in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. The 

proposed rule changes reflect a 

competitive pricing structure designed 

to incentivize market participants to 

direct their order flow to the Exchange. 

The Exchange believes the 

modification to the additional rebate 

provided by the NBBO Setter Tier 1 

under footnote 19 is a reasonable means 

to encourage Members to not only 


sradovich on DSK3GMQ082PROD with NOTICES