39138 Federal Register / Vol. 83, No. 153 / Wednesday, August 8, 2018 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Trust has filed a registration statement on 

Form S–1 under the Securities Act of 1933 (15 

U.S.C. 77a), dated July 2, 2018 (File No. 333– 

226034) (the ‘‘Registration Statement’’). The 

description of the operation of the Trust and the 

Shares herein is based, in part, on the Registration 

Statement. 

5Commodity-Based Trust Shares are securities 

issued by a trust that represents investors’ discrete 

identifiable and undivided beneficial ownership 

interest in the commodities deposited into the 

Trust. 

Agency name Organization name Title Request No. Date vacated 

Office of the Secretary of Defense Office of the Assistant Secretary of 

Defense (Legislative Affairs).

Special Assistant to the Assistant 

Secretary of Defense (Legislative 

Affairs) for Installations, Environment, and Energy.

DD170153 03/03/2018 

Department of Education ................ Office of Communications and Outreach.Communications Director ............... DB170122 03/03/2018 

Department of Energy ..................... Office of the Assistant Secretary 

for Electricity Delivery and Energy Reliability.

Senior Advisor ................................ DE170090 03/02/2018 

Office of Public Affairs .................... Press Assistant ............................... DE170125 03/03/2018 

Department of Health and Human 

Services.

Office of the Assistant Secretary of 

Health.

Liaison to the Veterans Administration.DH170137 03/16/2018 

Special Advisor ............................... DH170277 03/17/2018 

Office of Indian Health Service ...... Senior Advisor to the Director, Indian Health Service.DH170299 03/17/2018 

Office of the General Counsel ....... Advisor and Legal Counsel ............ DH170334 03/17/2018 

Office of the Secretary ................... Policy Advisor for Health Policy ..... DH170262 03/17/2018 

Special Assistant ............................ DH170244 03/17/2018 

Centers for Medicare and Medicaid 

Services.

Director of Strategic Communications.DH180025 03/18/2018 

Office of the Assistant Secretary 

for Legislation.

Advisor ............................................ DH180007 03/30/2018 

Department of State ........................ Office of the Chief of Protocol ........ Senior Protocol Officer ................... DS170177 03/03/2018 

Department of the Treasury ............ Department of the Treasury ........... Speechwriter ................................... DY170067 03/03/2018 

Environmental Protection Agency ... Office of the Administrator ............. Senior Advisor to the Administrator 

for Agriculture Policy.

EP180001 03/04/2018 

Office of the Associate Administrator for Congressional and 

Intergovernmental Relations.

Special Assistant to the Office of 

Congressional and Intergovernmental Relations.

EP170078 03/17/2018 

General Services Administration ..... Office of the Administrator ............. Senior Advisor for Administrative 

Services.

GS170025 03/30/2018 

National Aeronautics and Space 

Administration.

Office of Communications .............. Social Media Specialist .................. NN180004 03/17/2018 

Small Business Administration ........ Office of Congressional and Legislative Affairs.Legislative Assistant ....................... SB170011 03/17/2018 

Authority: 5 U.S.C. 3301 and 3302; E.O. 

10577, 3 CFR, 1954–1958 Comp., p. 218. 

U.S. Office of Personnel Management. 

Jeff T.H. Pon, 

Director. 

[FR Doc. 2018–16927 Filed 8–7–18; 8:45 am] 

BILLING CODE 6325–39–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83765; File No. SR– 

NYSEArca–2018–55] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change To List and Trade Shares 

of the GraniteShares Gold MiniBAR 

Trust 

August 2, 2018. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on July 19, 

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

or ‘‘NYSE Arca’’) 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 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 list and 

trade shares of GraniteShares Gold 

MiniBAR Trust under NYSE Arca Rule 

8.201–E (‘‘Commodity-Based Trust 

Shares’’). The proposed 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 Exchange proposes to list and 

trade shares (‘‘Shares’’) of the 

GraniteShares Gold MiniBAR Trust 

under NYSE Arca Rule 8.201–E.4 Under 

NYSE Arca Rule 8.201–E, the Exchange 

may propose to list and/or trade 

pursuant to unlisted trading privileges 

(‘‘UTP’’) ‘‘Commodity-Based Trust 

Shares.’’ 5

The Trust will not be registered as an 

investment company under the 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 153 / Wednesday, August 8, 2018 / Notices 39139 

6 15 U.S.C. 80a–1. 

7 17 U.S.C. 1. 

8Securities Exchange Act Release No. 81077 (July 

5, 2017) (SR–NYSEArca–2017–55) (order approving 

listing and trading shares of the GraniteShares Gold 

Trust under NYSE Arca Equities Rule 8.201). 

9Securities Exchange Act Release No. 71378 

(January 23, 2014), 79 FR 4786 (January 29, 2014) 

(SR–NYSEArca–2013–137). 

10Securities Exchange Act Release No. 59895 

(May 8, 2009), 74 FR 22993 (May 15, 2009) (SR– 

NYSEArca–2009–40). 

11Securities Exchange Act Release No. 61219 

(December 22, 2009), 74 FR 68886 (December 29, 

2009) (SR–NYSEArca–2009–95). 

12Securities Exchange Act Release No. 61220 

(December 22, 2009), 74 FR 68895 (December 29, 

2009) (SR–NYSEArca–2009–94). 

13Securities Exchange Act Release No 66930 

(May 7, 2012), 77 FR 27817 (May 11, 2012) (SR– 

NYSEArca–2012–18) 

14Securities Exchange Act Release No. 61496 

(February 4, 2010), 75 FR 6758 (February 10, 2010) 

(SR–NYSEArca–2009–113). 

15See Securities Exchange Act Release No. 58956 

(November 14, 2008), 73 FR 71074 (November 24, 

2008) (SR–NYSEArca–2008–124) (approving listing 

on the Exchange of the iShares Silver Trust)). 

16See Securities Exchange Act Release No.56224 

(August 8, 2007), 72 FR 45850 (August 15, 2007) 

(SR–NYSEArca-2007–76) (approving listing on the 

Exchange of the street TRACKS Gold Trust); 

Securities Exchange Act Release No. 56041 (July 11, 

2007), 72 FR 39114 (July 17, 2007) (SR–NYSEArca– 

2007–43) (order approving listing on the Exchange 

of iShares COMEX Gold Trust). 

17See Securities Exchange Act Release No. 79518 

(December 9, 2016), 81 FR 90876 (December 15, 

2016) (SR–NYSEArca–2016–84) (order approving 

listing and trading of shares of the Long Dollar Gold 

Trust). 

18See Securities Exchange Act Release No. 80840 

(June 17, 2017) (SR–NYSEArca-2017–33) (order 

approving listing and trading of shares of the Euro 

Gold Trust, Pound Gold Trust, and the Yen Gold 

Trust under NYSE Arca Equities Rule 8.201). 

19See Securities Exchange Act Release No.81918 

(October 23, 2017), 82 FR 49884 (October 27, 2017) 

(SR–NYSEArca–2017–98) (Order Approving a 

Proposed Rule Change, as Modified by Amendment 

No. 1 Thereto, to List and Trade Shares of The Gold 

Trust under NYSE Arca Rule 8.201–E). 

20See Securities Exchange Act Release No. 50603 

(October 28, 2004), 69 FR 64614 (November 5, 2004) 

(SR–NYSE–2004–22) (order approving listing of 

street TRACKS Gold Trust on NYSE). 

21See Securities Exchange Act Release Nos. 

51058 (January 19, 2005), 70 FR 3749 (January 26, 

2005) (SR-Amex-2004–38) (order approving listing 

of iShares COMEX Gold Trust on the American 

Stock Exchange LLC); 53521 (March 20, 2006), 71 

FR 14967 (March 24, 2006) (SR–Amex–2005–72) 

(approving listing on the American Stock Exchange 

LLC of the iShares Silver Trust). 

22See Securities Exchange Act Release Nos. 

53520 (March 20, 2006), 71 FR 14977 (March 24, 

2006) (SR–PCX–2005–117) (approving trading on 

the Exchange pursuant to UTP of the iShares Silver 

Trust); 51245 (February 23, 2005), 70 FR 10731 

(March 4, 2005) (SR–PCX–2004–117) (approving 

trading on the Exchange of the streetTRACKS Gold 

Trust pursuant to UTP). 

23With respect to the application of Rule 10A– 

3 (17 CFR 240.10A–3) under the Act, the Trust 

relies on the exemption contained in Rule 10A– 

3(c)(7). 

24The description of the operation of the Trust, 

the Shares and the gold market contained herein is 

based, in part, on the Registration Statement. See 

note 4, supra. 

Investment Company Act of 1940, as 

amended.6 The Trust is not a 

commodity pool for purposes of the 

Commodity Exchange Act, as amended.7

The sponsor of the Trust is 

GraniteShares LLC (‘‘Sponsor’’). The 

‘‘Trustee’’ is The Bank of New York 

Mellon and the ‘‘Custodian’’ is ICBC 

Standard Bank Plc. 

The Commission has previously 

approved listing on the Exchange under 

NYSE Arca Rules 5.2–E(j)(5) and 8.201– 

E of other precious metals and goldbased commodity trusts, including the 

GraniteShares Gold Trust; 8 Merk Gold 

Trust; 9 ETFS Gold Trust,10 ETFS 

Platinum Trust 11 and ETFS Palladium 

Trust (collectively, the ‘‘ETFS 

Trusts’’); 12 APMEX Physical-1 oz. Gold 

Redeemable Trust; 13 Sprott Gold 

Trust; 14 SPDR Gold Trust (formerly, 

streetTRACKS Gold Trust); iShares 

Silver Trust; 15 iShares COMEX Gold 

Trust; 16 Long Dollar Gold Trust; 17 Euro 

Gold Trust, Pound Gold Trust and Yen 

Gold Trust; 18 and the Gold Trust.19

Prior to their listing on the Exchange, 

the Commission approved listing of the 

streetTRACKS Gold Trust on the New 

York Stock Exchange (‘‘NYSE’’) 20 and 

listing of iShares COMEX Gold Trust 

and iShares Silver Trust on the 

American Stock Exchange LLC.21 In 

addition, the Commission has approved 

trading of the streetTRACKS Gold Trust 

and iShares Silver Trust on the 

Exchange pursuant to UTP.22

The Exchange represents that the 

Shares satisfy the requirements of NYSE 

Arca Rule 8.201–E and thereby qualify 

for listing on the Exchange.23

Operation of the Trust 24

The investment objective of the Trust 

will be for the Shares to reflect the 

performance of the price of gold, less 

the expenses and liabilities of the Trust. 

The Trust will issue Shares which 

represent units of fractional undivided 

beneficial interest in and ownership of 

the Trust. 

The Trust will not trade in gold 

futures, options or swap contracts on 

any futures exchange or over the 

counter (‘‘OTC’’). The Trust will not 

hold or trade in commodity futures 

contracts, ‘‘commodity interests’’, or any 

other instruments regulated by the 

Commodities Exchange Act. The Trust 

will take delivery of physical gold that 

complies with the London Bullion 

Markets Association (‘‘LBMA’’) gold 

delivery rules. 

The Shares are intended to constitute 

a simple and cost-effective means of 

making an investment similar to an 

investment in gold. Although the Shares 

are not the exact equivalent of an 

investment in gold, they are intended to 

provide investors with an alternative 

that allows a level of participation in the 

gold market through the securities 

market. 

Operation of the Gold Market 

The global trade in gold consists of 

OTC transactions in spot, forwards, and 

options and other derivatives, together 

with exchange-traded futures and 

options. 

The OTC gold market includes spot, 

forward, and option and other 

derivative transactions conducted on a 

principal-to-principal basis. While this 

is a global, nearly 24-hour per day 

market, its main centers are London, 

New York, and Zurich. 

According to the Registration 

Statement, most OTC market trades are 

cleared through London. The LBMA 

plays an important role in setting OTC 

gold trading industry standards. A 

London Good Delivery Bar (as described 

below), which is acceptable for 

settlement of any OTC transaction, will 

be acceptable for delivery to the Trust 

in connection with the issuance of 

Baskets. 

The most significant gold futures 

exchange in the U.S. is COMEX, 

operated by Commodities Exchange, 

Inc., a subsidiary of New York 

Mercantile Exchange, Inc., and a 

subsidiary of the Chicago Mercantile 

Exchange Group (the ‘‘CME Group’’). 

Other commodity exchanges include the 

Tokyo Commodity Exchange 

(‘‘TOCOM’’), the Multi Commodity 

Exchange Of India (‘‘MCX’’), the 

Shanghai Futures Exchange, ICE Futures 

US (the ‘‘ICE’’), and the Dubai Gold & 

Commodities Exchange. 

The London Gold Bullion Market 

According to the Registration 

Statement, most trading in physical gold 

is conducted on the OTC market, 

predominantly in London. LBMA 

coordinates various OTC-market 

activities, including clearing and 

vaulting, acts as the principal 

intermediary between physical gold 

market participants and the relevant 

regulators, promotes good trading 

practices and develops standard market 

documentation. In addition, the LBMA 

promotes refining standards for the gold 

market by maintaining the ‘‘London 

Good Delivery List,’’ which identifies 

refiners of gold that have been approved 

by the LBMA. In the OTC market, gold 

bars that meet the specifications for 

weight, dimensions, fineness (or purity), 

identifying marks (including the assay 

stamp of an LBMA-acceptable refiner) 

and appearance described in ‘‘The Good 

Delivery Rules for Gold and Silver Bars’’ 

published by the LBMA are referred to 


sradovich on DSK3GMQ082PROD with NOTICES
39140 Federal Register / Vol. 83, No. 153 / Wednesday, August 8, 2018 / Notices 

25The IIV on a per Share basis disseminated 

during the Core Trading Session should not be 

viewed as a real-time update of the NAV, which is 

calculated once a day. 

26The bid-ask price of the Shares will be 

determined using the highest bid and lowest offer 

as ‘‘London Good Delivery Bars.’’ A 

London Good Delivery Bar (typically 

called a ‘‘400 ounce bar’’) must contain 

between 350 and 430 fine troy ounces 

of gold (1 troy ounce = 31.1034768 

grams), with a minimum fineness (or 

purity) of 995 parts per 1000 (99.5%), be 

of good appearance and be easy to 

handle and stack. The fine gold content 

of a gold bar is calculated by 

multiplying the gross weight of the bar 

(expressed in units of 0.025 troy ounces) 

by the fineness of the bar. A London 

Good Delivery Bar must also bear the 

stamp of one of the refiners identified 

on the London Good Delivery List. 

Following the enactment of the 

Financial Markets Act 2012, the 

Prudential Regulation Authority of the 

Bank of England is responsible for 

regulating most of the financial firms 

that are active in the bullion market, 

and the Financial Conduct Authority is 

responsible for consumer and 

competition issues. 

Creation and Redemption of Shares 

According to the Registration 

Statement, the Trust will create and 

redeem Shares on a continuous basis in 

one or more blocks of 50,000 Shares (a 

block of 50,000 Shares is called a 

‘‘Basket’’). As described below, the 

Trust will issue Shares in Baskets to 

certain authorized participants 

(‘‘Authorized Participants’’) on an 

ongoing basis. Baskets of Shares will 

only be issued or redeemed in exchange 

for an amount of gold determined by the 

Trustee on each day that the Exchange 

is open for regular trading. No Shares 

will be issued unless the Custodian has 

allocated to the Trust’s account the 

corresponding amount of gold. Initially, 

a Basket will require delivery of 500 fine 

ounces of gold. The amount of gold 

necessary for the creation of a Basket, or 

to be received upon redemption of a 

Basket, will decrease over the life of the 

Trust, due to the payment or accrual of 

fees and other expenses or liabilities 

payable by the Trust. 

Baskets may be created or redeemed 

only by Authorized Participants. Orders 

must be placed by 3:59 p.m. Eastern 

Time (‘‘E.T.’’). The day on which the 

Trust receives a valid purchase or 

redemption order is the order date. 

Each Authorized Participant must be 

a registered broker-dealer, a participant 

in Depository Trust Corporation, have 

entered into an agreement with the 

Trustee (the ‘‘Authorized Participant 

Agreement’’) and be in a position to 

transfer gold to, and take delivery of 

gold from, the Custodian through one or 

more gold accounts. The Authorized 

Participant Agreement provides the 

procedures for the creation and 

redemption of Baskets and for the 

delivery of gold in connection with such 

creations or redemptions. 

According to the Registration 

Statement, Authorized Participants may 

surrender Baskets of Shares in exchange 

for the corresponding Basket Amount 

announced by the Trustee. Upon 

surrender of such Shares and payment 

of the Trustee’s applicable fee and of 

any expenses, taxes or charges (such as 

stamp taxes or stock transfer taxes or 

fees), the Trustee will deliver to the 

order of the redeeming Authorized 

Participant the amount of gold 

corresponding to the redeemed Baskets. 

Before surrendering Baskets of Shares 

for redemption, an Authorized 

Participant must deliver to the Trustee 

a written request indicating the number 

of Baskets it intends to redeem and the 

location where it would like to take 

delivery of the gold represented by such 

Baskets. The date the Trustee receives 

that order determines the Basket 

Amount to be received in exchange. 

However, orders received by the Trustee 

after 3:59 p.m. Eastern Time (‘‘E.T.’’) 

will not be accepted. 

The redemption distribution from the 

Trust will consist of a credit to the 

redeeming Authorized Participant’s 

unallocated account representing the 

amount of the gold held by the Trust 

evidenced by the Shares being 

redeemed as of the date of the 

redemption order. 

Net Asset Value 

According to the Registration 

Statement, the net asset value of the 

Trust will be obtained by subtracting the 

Trust’s expenses and liabilities on any 

day from the value of the gold owned 

by the Trust on that day; the net asset 

value (‘‘NAV’’) per Share will be 

obtained by dividing the net asset value 

of the Trust on a given day by the 

number of Shares outstanding on that 

day. On each day on which the 

Exchange is open for regular trading, the 

Trustee will determine the net asset 

value of the Trust and the NAV per 

Share as promptly as practicable after 

4:00 p.m. (E.T.). The Trustee will value 

the Trust’s gold on the basis of LBMA 

Gold Price PM. If there is no LBMA 

Gold Price PM on any day, the Trustee 

is authorized to use the LBMA Gold 

Price AM announced on that day. If 

neither price is available for that day, 

the Trustee will value the Trust’s gold 

based on the most recently announced 

LBMA Gold Price PM or LBMA Gold 

Price AM. If the Sponsor determines 

that such price is inappropriate to use, 

the Sponsor will identify an alternate 

basis for evaluation to be employed by 

the Trustee. Further, the Sponsor may 

instruct the Trustee to use on an ongoing basis a different publicly available 

price which the Sponsor determines to 

fairly represent the commercial value of 

the Trust’s gold. 

Availability of Information Regarding 

Gold 

Currently, the Consolidated Tape Plan 

does not provide for dissemination of 

the spot price of a commodity such as 

gold over the Consolidated Tape. 

However, there will be disseminated 

over the Consolidated Tape the last sale 

price for the Shares. In addition, there 

is a considerable amount of information 

about gold and gold markets available 

on public websites and through 

professional and subscription services. 

Investors may obtain gold pricing 

information on a 24-hour basis based on 

the spot price for an ounce of Gold from 

various financial information service 

providers, such as Reuters and 

Bloomberg. 

Reuters and Bloomberg, for example, 

provide at no charge on their websites 

delayed information regarding the spot 

price of Gold and last sale prices of Gold 

futures, as well as information about 

news and developments in the gold 

market. Reuters and Bloomberg also 

offer a professional service to 

subscribers for a fee that provides 

information on Gold prices directly 

from market participants. Complete realtime data for Gold futures and options 

prices traded on the COMEX are 

available by subscription from Reuters 

and Bloomberg. There are a variety of 

other public websites providing 

information on gold, ranging from those 

specializing in precious metals to sites 

maintained by major newspapers. In 

addition, the LBMA Gold Price is 

publicly available at no charge at 

www.lbma.org.uk. 

Availability of Information 

The intraday indicative value (‘‘IIV’’) 

per Share for the Shares will be 

disseminated by one or more major 

market data vendors. The IIV will be 

calculated based on the amount of gold 

held by the Trust and a price of gold 

derived from updated bids and offers 

indicative of the spot price of gold.25

The website for the Trust 

(www.graniteshares.com) will contain 

the following information, on a per 

Share basis, for the Trust: (a) The midpoint of the bid-ask price 26 at the close 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 153 / Wednesday, August 8, 2018 / Notices 39141 

on the Consolidated Tape as of the time of 

calculation of the closing day NAV. 27See NYSE Arca Rule 7.12–E. 

28FINRA conducts cross-market surveillances on 

behalf of the Exchange pursuant to a regulatory 

services agreement. The Exchange is responsible for 

FINRA’s performance under this regulatory services 

agreement. 

29For a list of the current members of ISG, see 

www.isgportal.org. 

of trading (‘‘Bid/Ask Price’’), and a 

calculation of the premium or discount 

of such price against such NAV; and (b) 

data in chart format displaying the 

frequency distribution of discounts and 

premiums of the Bid/Ask Price against 

the NAV, within appropriate ranges, for 

each of the four previous calendar 

quarters. The website for the Trust will 

also provide the Trust’s prospectus. 

Finally, the Trust’s website will provide 

the last sale price of the Shares as traded 

in the U.S. market. In addition, 

information regarding market price and 

trading volume of the Shares will be 

continually available on a real-time 

basis throughout the day on brokers’ 

computer screens and other electronic 

services. Information regarding the 

previous day’s closing price and trading 

volume information for the Shares will 

be published daily in the financial 

section of newspapers. 

Criteria for Initial and Continued Listing 

The Trust will be subject to the 

criteria in NYSE Arca Rule 8.201–E(e) 

for initial and continued listing of the 

Shares. 

A minimum of two Baskets or 100,000 

Shares will be required to be 

outstanding at the start of trading, 

which is equivalent to 1,000 fine ounces 

of gold or about $1.24 million as of July 

18, 2018. The Exchange believes that the 

anticipated minimum number of Shares 

outstanding at the start of trading is 

sufficient to provide adequate market 

liquidity. 

Trading Rules 

The Exchange deems the Shares to be 

equity securities, thus rendering trading 

in the Trust subject to the Exchange’s 

existing rules governing the trading of 

equity securities. Trading in the Shares 

on the Exchange will occur in 

accordance with NYSE Arca Rule 7.34– 

E(a). The Exchange has appropriate 

rules to facilitate transactions in the 

Shares during all trading sessions. As 

provided in NYSE Arca Rule 7.6–E, the 

minimum price variation (‘‘MPV’’) for 

quoting and entry of orders in equity 

securities traded on the NYSE Arca 

Marketplace is $0.01, with the exception 

of securities that are priced less than 

$1.00 for which the MPV for order entry 

is $0.0001. 

Further, NYSE Arca Rule 8.201–E sets 

forth certain restrictions on ETP Holders 

acting as registered Market Makers in 

the Shares to facilitate surveillance. 

Under NYSE Arca Rule 8.201–E(g), an 

ETP Holder acting as a registered Market 

Maker in the Shares is required to 

provide the Exchange with information 

relating to its trading in the underlying 

gold, related futures or options on 

futures, or any other related derivatives. 

Commentary .04 of NYSE Arca Rule 

11.3–E requires an ETP Holder acting as 

a registered Market Maker, and its 

affiliates, in the Shares to establish, 

maintain and enforce written policies 

and procedures reasonably designed to 

prevent the misuse of any material 

nonpublic information with respect to 

such products, any components of the 

related products, any physical asset or 

commodity underlying the product, 

applicable currencies, underlying 

indexes, related futures or options on 

futures, and any related derivative 

instruments (including the Shares). 

As a general matter, the Exchange has 

regulatory jurisdiction over its ETP 

Holders and their associated persons, 

which include any person or entity 

controlling an ETP Holder. A subsidiary 

or affiliate of an ETP Holder that does 

business only in commodities or futures 

contracts would not be subject to 

Exchange jurisdiction, but the Exchange 

could obtain information regarding the 

activities of such subsidiary or affiliate 

through surveillance sharing agreements 

with regulatory organizations of which 

such subsidiary or affiliate is a member. 

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in the Shares. 

Trading on the Exchange in the Shares 

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 

conditions in the underlying gold 

market have caused disruptions and/or 

lack of trading, or (2) whether other 

unusual conditions or circumstances 

detrimental to the maintenance of a fair 

and orderly market are present. In 

addition, trading in Shares will be 

subject to trading halts caused by 

extraordinary market volatility pursuant 

to the Exchange’s ‘‘circuit breaker’’ 

rule.27 The Exchange will halt trading in 

the Shares if the NAV of the Trust is not 

calculated or disseminated daily. The 

Exchange may halt trading during the 

day in which an interruption occurs to 

the dissemination of the IIV, as 

described above. If the interruption to 

the dissemination of the IIV persists 

past the trading day in which it occurs, 

the Exchange will halt trading no later 

than the beginning of the trading day 

following the interruption. 

Surveillance 

The Exchange represents that trading 

in the Shares will be subject to the 

existing trading surveillances 

administered by the Exchange, as well 

as cross-market surveillances 

administered by the Financial Industry 

Regulatory Authority (‘‘FINRA’’) on 

behalf of the Exchange, which are 

designed to detect violations of 

Exchange rules and applicable federal 

securities laws.28 The Exchange 

represents that these 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 federal 

securities laws applicable to trading on 

the Exchange. 

The surveillances referred to above 

generally focus on detecting securities 

trading outside their normal patterns, 

which could be indicative of 

manipulative or other violative activity. 

When such situations are detected, 

surveillance analysis follows and 

investigations are opened, where 

appropriate, to review the behavior of 

all relevant parties for all relevant 

trading violations. 

The Exchange or FINRA, on behalf of 

the Exchange, or both, will 

communicate as needed regarding 

trading in the Shares with other markets 

and other entities that are members of 

the Intermarket Surveillance Group 

(‘‘ISG’’), and the Exchange or FINRA, on 

behalf of the Exchange, or both, may 

obtain trading information regarding 

trading in the Shares from such markets 

and other entities. In addition, the 

Exchange may obtain information 

regarding trading in the Shares from 

markets and other entities that are 

members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement.29

Also, pursuant to NYSE Arca Rule 

8.201–E(g), the Exchange is able to 

obtain information regarding trading in 

the Shares and the underlying gold, gold 

futures contracts, options on gold 

futures, or any other gold derivative, 

through ETP Holders acting as 

registered Market Makers, in connection 

with such ETP Holders’ proprietary or 

customer trades through ETP Holders 

which they effect on any relevant 

market. 

In addition, the Exchange also has a 

general policy prohibiting the 


sradovich on DSK3GMQ082PROD with NOTICES
39142 Federal Register / Vol. 83, No. 153 / Wednesday, August 8, 2018 / Notices 

30 15 U.S.C. 78f(b)(5). 

distribution of material, non-public 

information by its employees. 

All statements and representations 

made in this filing regarding (a) the 

description of the portfolio, (b) 

limitations on portfolio holdings or 

reference assets, or (c) the applicability 

of Exchange listing rules specified in 

this rule filing shall constitute 

continued listing requirements for 

listing the Shares of the Trust on the 

Exchange. 

The issuer has represented to the 

Exchange that it will advise the 

Exchange of any failure by the Trust to 

comply with the continued listing 

requirements, and, pursuant to its 

obligations under Section 19(g)(1) of the 

Act, the Exchange will monitor for 

compliance with the continued listing 

requirements. If the Trust is not in 

compliance with the applicable listing 

requirements, the Exchange will 

commence delisting procedures under 

NYSE Arca Rule 5.5–E(m). 

Information Bulletin 

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: (1) The 

procedures for purchases and 

redemptions of Shares in Baskets 

(including noting that Shares are not 

individually redeemable); (2) NYSE 

Arca Rule 9.2–E(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; (3) how information regarding 

the IIV is disseminated; (4) the 

requirement that ETP Holders deliver a 

prospectus to investors purchasing 

newly issued Shares prior to or 

concurrently with the confirmation of a 

transaction; (5) the possibility that 

trading spreads and the resulting 

premium or discount on the Shares may 

widen as a result of reduced liquidity of 

gold trading during the Core and Late 

Trading Sessions after the close of the 

major world gold markets; and (6) 

trading information. For example, the 

Information Bulletin will advise ETP 

Holders, prior to the commencement of 

trading, of the prospectus delivery 

requirements applicable to the Trust. 

The Exchange notes that investors 

purchasing Shares directly from the 

Trust will receive a prospectus. ETP 

Holders purchasing Shares from the 

Trust for resale to investors will deliver 

a prospectus to such investors. 

In addition, the Information Bulletin 

will reference that the Trust is subject 

to various fees and expenses as will be 

described in the Registration Statement. 

The Information Bulletin will also 

reference the fact that there is no 

regulated source of last sale information 

regarding physical gold, that the 

Commission has no jurisdiction over the 

trading of gold as a physical commodity, 

and that the Commodity Futures 

Trading Commission has regulatory 

jurisdiction over the trading of gold 

futures contracts and options on gold 

futures contracts. 

The Information Bulletin will also 

discuss any relief, if granted, by the 

Commission or the staff from any rules 

under the Act. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 30 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 Exchange believes that the 

proposed rule change is designed to 

prevent fraudulent and manipulative 

acts and practices in that the Shares will 

be listed and traded on the Exchange 

pursuant to the initial and continued 

listing criteria in NYSE Arca Rule 

8.201–E. The Exchange has in place 

surveillance procedures that are 

adequate to properly monitor trading in 

the Shares in all trading sessions and to 

deter and detect violations of Exchange 

rules and applicable federal securities 

laws. The Exchange may obtain 

information via the ISG from other 

exchanges that are members of ISG or 

with which the Exchange has entered 

into a comprehensive surveillance 

sharing agreement. 

The proposed rule change is designed 

to promote just and equitable principles 

of trade and to protect investors and the 

public interest in that there is a 

considerable amount of gold price and 

gold market information available on 

public websites and through 

professional and subscription services. 

Investors may obtain on a 24-hour basis 

gold pricing information based on the 

spot price for an ounce of gold from 

various financial information service 

providers. Investors may obtain gold 

pricing information based on the spot 

price for an ounce of gold from various 

financial information service providers. 

Current spot prices also are generally 

available with bid/ask spreads from gold 

bullion dealers. In addition, the Trust’s 

website will provide pricing 

information for gold spot prices and the 

Shares. Market prices for the Shares will 

be available from a variety of sources 

including brokerage firms, information 

websites and other information service 

providers. The NAV of the Trust will be 

published by the Sponsor on each day 

that the NYSE Arca is open for regular 

trading and will be posted on the Trust’s 

website. The IIV relating to the Shares 

will be widely disseminated by one or 

more major market data vendors at least 

every 15 seconds during the Core 

Trading Session. In addition, the LBMA 

Gold Price is publicly available at no 

charge at www.lbma.org.uk. The Trust’s 

website will also provide the Trust’s 

prospectus, as well as the two most 

recent reports to stockholders. In 

addition, 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. Information 

regarding the previous day’s closing 

price and trading volume information 

for the Shares will be published daily in 

the financial section of newspapers. 

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, as noted 

above, investors will have ready access 

to information regarding gold pricing. 

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 purposes of the Act. The 

Exchange believes the proposed rule 

change will enhance competition by 

accommodating Exchange trading of an 

additional exchange-traded product 

relating to physical gold. 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 153 / Wednesday, August 8, 2018 / Notices 39143 

31 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 No. 82870 

(March 14, 2018), 83 FR 12214. 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 83143, 

83 FR 20123 (May 7, 2018). 

6 15 U.S.C. 78s(b)(2)(B). 

7See Securities Exchange Act Release No. 83425, 

83 FR 28477 (June 19, 2018). 

8See letter from Tracy Richardson, Tribal 

Technology Trade Inc., dated June 14, 2018, 

available at https://www.sec.gov/comments/sr-chx2018-001/chx2018001.htm. 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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–2018–55 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–2018–55. 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–2018–55, and 

should be submitted on or before 

August 29, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–16890 Filed 8–7–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83763; File No. SR–CHX– 

2018–001] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Withdrawal of a Proposed Rule 

Change To Adopt the Route QCT 

Cross Routing Option 

August 2, 2018. 

On March 6, 2018, the Chicago Stock 

Exchange, Inc. (‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Exchange 

Act’’) 1 and Rule 19b–4 thereunder,2 a 

proposed rule change to adopt the Route 

QCT Cross routing option. The proposed 

rule change was published for comment 

in the Federal Register on March 20, 

2018.3 On May 1, 2018, pursuant to 

Section 19(b)(2) of the Exchange Act,4

the Commission designated a longer 

period within which to approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether to 

disapprove the proposed rule change.5

On June 13, 2018, the Commission 

instituted proceedings under Section 

19(b)(2)(B) of the Exchange Act 6 to 

determine whether to approve or 

disapprove the proposed rule change.7

The Commission received one comment 

letter on the proposed rule change.8

On July 26, 2018, the Exchange 

withdrew the proposed rule change 

(SR–CHX–2018–001). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–16889 Filed 8–7–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83767; File No. SR–FICC– 

2018–006] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing of Proposed Rule Change To 

Codify the Processing of Conditional 

Prepayment Rate Claims in the MBSD 

Rules and Make Other Changes 

August 2, 2018. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 26, 

2018, Fixed Income Clearing 

Corporation (‘‘FICC’’) 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 clearing agency. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change consists of 

amendments to the FICC MortgageBacked Securities Division (‘‘MBSD’’) 

Clearing Rules (‘‘MBSD Rules’’) in order 

to (i) add terms governing MBSD’s 


sradovich on DSK3GMQ082PROD with NOTICES