7064 Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices 

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

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Participants who have a financial 

interest in the risk settings of 

Participants with whom the Clearing 

Participant has entered into a clearing 

Letter of Guarantee to better monitor 

and manage the potential risks assumed 

by Clearing Participants, thereby 

providing Clearing Participants with 

greater control and flexibility over 

setting their own risk tolerance and 

exposure and aiding Clearing 

Participants in complying with the Act. 

To the extent a Clearing Participant 

might reasonably require a Participant 

to provide access to its risk setting as a 

prerequisite to continuing to clear trades 

on the Participant’s behalf, the 

Exchange’s proposal to share those risk 

settings directly reduces the 

administrative burden on Participants 

and ensures that Clearing Participants 

are receiving information that is up to 

date and conforms to the settings active 

in the Exchange’s trading system. 

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 

proposed rule change is not designed to 

address any competitive issues and does 

not pose an undue burden on nonClearing Participants because, unlike 

Clearing Participants, non-Clearing 

Participants do not guarantee the 

execution of a Participant’s transactions 

on the Exchange. The proposal is 

structured to offer the same 

enhancement to all Clearing 

Participants, regardless of size, and 

would not impose a competitive burden 

on any Participant. Any Participant that 

does not wish to share its designated 

risk settings with its Clearing 

Participant could avoid sharing such 

settings by becoming a Clearing 

Participant. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

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)(ii) [sic] of the Act 11 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.12

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2015–007 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2015–007. 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 Web site (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 Web site 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 such 

filing also will be available for 

inspection and copying at the principal 

offices of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NASDAQ–2015–007, and should be 

submitted on or before March 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–02511 Filed 2–6–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74196; File No. SR–BOX– 

2015–07] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

IM–3120–2 to Rule 3120 To Extend the 

Pilot Program That Eliminated the 

Position Limits for Options on SPDR 

S&P 500 ETF 

February 3, 2015. 

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 January 

26, 2015, BOX Options Exchange LLC 

(the ‘‘Exchange’’) 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend IM– 

3120–2 to Rule 3120 to extend the pilot 

program that eliminated the position 

limits for options on SPDR S&P 500 ETF 

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Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices 7065 

3See Securities Exchange Act Release No. 67936 

(September 27, 2012), 77 FR 60491 (October 3, 

2012) (Notice of Filing and Immediate Effectiveness 

of SR–BOX–2012–013). 4See supra note 3. 

5 15 U.S.C. 78s(b)(3)(A). 

6 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 the 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. 

7 17 CFR 240.19b–4(f)(6). 

8 17 CFR 240.19b–4(f)(6)(iii). 

9For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

(‘‘SPY’’) (‘‘SPY Pilot Program’’). The text 

of the proposed rule change is available 

from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s Internet Web site at http://

boxexchange.com. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

Sections A, B, and C below, of the most 

significant aspects 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 IM– 

3120–2 to Rule 3120 to extend the time 

period of the SPY Pilot Program,3 which 

is currently scheduled to expire on 

January 27, 2015, through July 12, 2015. 

This filing does not propose any 

substantive changes to the SPY Pilot 

Program. In proposing to extend the 

SPY Pilot Program, the Exchange 

reaffirms its consideration of several 

factors that supported the original 

proposal of the SPY Pilot Program, 

including (1) the availability of 

economically equivalent products and 

their respective position limits, (2) the 

liquidity of the option and the 

underlying security, (3) the market 

capitalization of the underlying security 

and the related index, (4) the reporting 

of large positions and requirements 

surrounding margin, and (5) the 

potential for market on close volatility. 

In the original proposal to establish 

the SPY Pilot Program, the Exchange 

stated that if it were to propose an 

extension, permanent approval or 

termination of the program, the 

Exchange would submit, along with any 

filing proposing such amendments to 

the program, a report providing an 

analysis of the SPY Pilot Program 

covering the first twelve (12) months 

during which the SPY Pilot Program 

was in effect (the ‘‘Pilot Report’’).4

Accordingly, the Exchange is submitting 

the Pilot Report detailing the Exchange’s 

experience with the SPY Pilot Program. 

The Pilot Report is attached as Exhibit 

3 to this filing. The Exchange notes that 

it is unaware of any problems created by 

the SPY Pilot Program and does not 

foresee any as a result of the proposed 

extension. In extending the SPY Pilot 

Program, the Exchange states that if it 

were to propose another extension, 

permanent approval or termination of 

the program, the Exchange will submit 

another Pilot Report covering the period 

since the previous extension, which will 

be submitted at least 30 days before the 

end of the proposed extension. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act, 

in general, and Section 6(b)(5) of the 

Act, in particular, in that it is 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 a national market system, and, in 

general, to protect investors and the 

public interest. The Exchange believes 

that extending the SPY Pilot Program 

promotes just and equitable principles 

of trade by permitting market 

participants, including market makers, 

institutional investors and retail 

investors, to establish greater positions 

when pursuing their investment goals 

and needs. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not designed to 

address any aspect of competition, 

whether between the Exchange and its 

competitors, or among market 

participants. Instead, the proposed rule 

change is designed to allow the SPY 

Pilot Program to continue as other SROs 

have adopted similar provisions. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received comments on 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 5 and Rule 19b– 

4(f)(6) thereunder.6

A proposed rule change filed 

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

Act 7 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 8

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 asked 

the Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange believes that 

waiving the 30-day operative delay is 

appropriate and will benefit market 

participants because immediate 

operability would allow the SPY Pilot 

Program to continue without 

interruption. The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest. 

Therefore, the Commission hereby 

waives the operative delay and 

designates the proposed rule change 

operative upon filing.9

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. 

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7066 Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices 

10 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. 

4See Securities Exchange Act Release No. 73895 

(December 19, 2014), 79 FR 78125 (‘‘Notice’’). 

5See Registration Statement on Form N–1A for 

the Trust, dated September 3, 2014 (File Nos. 333– 

179904 and 811–22649). See also Investment 

Company Act Release No. 29571 (January 24, 2011) 

(File No. 812–13601). 6BFA is an indirect wholly owned subsidiary of 

BlackRock, Inc. 7See Notice, supra note 4, at 78126. 8See id.; see also BATS Rule 14.11(i)(7). The 

Exchange also represents that in the event that (a) 

the Adviser becomes registered as a broker-dealer 

or newly affiliated with another broker-dealer, or (b) 

any new adviser or sub-adviser is a registered 

broker-dealer or becomes affiliated with a brokerdealer, it will implement a fire wall with respect to 

its relevant personnel or such broker-dealer 

affiliate, as applicable, regarding access to 

information concerning the composition and/or 

changes to the portfolio, and will be subject to 

procedures designed to prevent the use and 

dissemination of material non-public information 

regarding such portfolio. 

9The Commission notes that additional 

information regarding the Trust, the Fund, and the 

Shares, investment strategies, risks, net asset value 

(‘‘NAV’’) calculation, creation and redemption 

procedures, fees and expenses, portfolio holdings 

disclosure policies, distributions, and taxes, among 

other information, is included in the Notice and 

Registration Statement. See supra notes 4 and 5, 

respectively. 

10The Exchange states that effective duration is 

a measure of the Fund’s price sensitivity to changes 

in yields or interest rates. See Notice, supra note 4, 

79 FR at 78126, n.11. 11The term ‘‘under normal circumstances’’ 

includes, but is not limited to, the absence of 

adverse market, economic, political, or other 

conditions, including extreme volatility or trading 

halts in the financial markets; operational issues 

causing dissemination of inaccurate market 

information; or force majeure type events such as 

systems failure, natural or man-made disaster, act 

of God, armed conflict, act of terrorism, riot, or 

labor disruption, or any similar intervening 

circumstance. 

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– 

BOX–2015–07 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–BOX–2015–07. 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 Web site (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 Web site 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 such 

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. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–BOX– 

2015–07, and should be submitted on or 

before March 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–02503 Filed 2–6–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74193; File No. SR–BATS– 

2014–054] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Order Approving a 

Proposed Rule Change To List and 

Trade Shares of the iShares Short 

Maturity Municipal Bond ETF of the 

iShares U.S. ETF Trust Under Rule 

14.11(i) of BATS Exchange, Inc. 

February 3, 2015. 

I. Introduction 

On December 12, 2014, BATS 

Exchange, Inc. (the ‘‘Exchange’’ or 

‘‘BATS’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’), 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’) 2 and Rule 19b–4 

thereunder,3 a proposed rule change to 

list and trade shares (‘‘Shares’’) of the 

iShares Short Maturity Municipal Bond 

ETF (the ‘‘Fund’’) under BATS Rule 

14.11(i). The proposed rule change was 

published for comment in the Federal 

Register on December 29, 2014.4 The 

Commission received no comments on 

the proposed rule change. This order 

approves the proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to list and 

trade the Shares under BATS Rule 

14.11(i), which governs the listing and 

trading of Managed Fund Shares on the 

Exchange. The Exchange deems the 

Shares to be equity securities, thus 

rendering trading in the Shares subject 

to the Exchange’s existing rules 

governing the trading of equity 

securities. 

The Shares will be offered by the 

iShares U.S. ETF Trust (the ‘‘Trust’’), a 

Delaware statutory trust. The Trust is 

registered with the Commission as an 

open-end investment company and has 

filed a registration statement on behalf 

of the Fund on Form N–1A 

(‘‘Registration Statement’’) with the 

Commission.5 BlackRock Fund Advisors 

is the investment adviser (‘‘BFA’’ or 

‘‘Adviser’’) to the Fund.6 State Street 

Bank and Trust Company is the 

administrator, custodian, and transfer 

agent for the Trust. BlackRock 

Investments, LLC serves as the 

distributor for the Trust. The Exchange 

represents that the Adviser is not a 

registered broker-dealer, but is affiliated 

with multiple broker-dealers and has 

implemented fire walls with respect to 

such broker-dealers regarding access to 

information concerning the composition 

and/or changes to the Fund’s portfolio.7

The Exchange further represents that 

Adviser personnel who make decisions 

regarding the Fund’s portfolio are 

subject to procedures designed to 

prevent the use and dissemination of 

material nonpublic information 

regarding the Fund’s portfolio.8

The Exchange has made the following 

representations and statements 

regarding the Fund.9 The Fund will seek 

to maximize tax-free current income. 

Generally, the Fund’s effective 

duration 10 will be 1.2 years or less, and 

it is not expected to exceed 1.5 years. 

To achieve its objective, the Fund will 

invest, under normal circumstances,11

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