Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 12689 

already opened will provide the most accurate 

benchmark because the market is most liquid 

during Core Trading Hours. See Notice, supra note 

3, at 1981. 

18The Exchange states that the value of a put can 

never exceed the strike price of the option, even if 

the stock goes to zero. For example, a put with a 

strike price of $50 gives the holder the right to sell 

the underlying security for $50 (no more, or no 

less), therefore the Exchange states that it would be 

illogical to pay $50 or more for the right to sell that 

underlying security, no matter what the price of the 

underlying security. See Notice, supra note 3, at 

1981. See also Amendment No. 1, supra note 4. 

19See proposed Exchange Rule 967.1NY(b). The 

Exchange believes that this temporary suspension 

from quoting in the affected option class(es) would 

operate as a safety valve that forces Market Makers 

to re-evaluate their positions before requesting to reenter the market. See Notice, supra note 3, at 1981. 

See also Notice, supra note 3, at 1981 for examples 

illustrating how proposed Exchange Rule 

967.1NY(a)(2) and (a)(3) would operate. 

20 15 U.S.C. 78f(b). In approving this proposed 

rule change, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

21 15 U.S.C. 78f(b)(5). 

22See Notice, supra note 3, at 1981. 

23See Notice, supra note 3, at 1982. 

24 15 U.S.C. 78s(b)(2). 

25 17 CFR 200.30–3(a)(12). 

Rule 967.1NY(a)(3) will provide for 

price protection for Market Maker bids 

in put options. In particular, any Market 

Maker bid for put options will be 

rejected if the price of the bid is equal 

to or greater than the strike price of the 

option.18

The Exchange also has proposed that 

when a Market Maker quote is rejected 

pursuant to paragraph (a)(2) or (a)(3) of 

the proposed rule, the Exchange will 

also cancel all resting quote(s) in the 

affected class(es) from that Market 

Maker and will not accept new quote(s) 

in the affected class(es) until the Market 

Maker submits a message (which may be 

automated) to the Exchange to enable 

the entry of new quotes.19

B. Implementation 

The Exchange stated that it would 

announce the implementation date of 

the proposed rule change in a Trader 

Update and publish such announcement 

at least 30 days prior to implementation. 

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange and, in particular, 

with section 6(b) of the Act.20 In 

particular, the Commission finds that 

the proposed rule change is consistent 

with sections 6(b)(5) of the Act,21 which 

requires, among other things, that the 

rules of a national securities exchange 

be designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, 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 proposed rule change provides a 

price protection mechanism for quotes 

entered by a Market Maker when an 

NBBO is available that are priced a 

specified dollar amount or percentage 

through the last sale or prevailing 

contra-side market, which the Exchange 

believes is evidence of error. The 

Commission believes that the proposed 

price protection mechanism is 

reasonably designed to promote just and 

equitable principles of trade by 

preventing potential price dislocation 

that could result from erroneous Market 

Maker quotes sweeping through 

multiple price points resulting in 

executions at prices that are through the 

last sale price or NBBO.22

The Exchange’s proposed use of 

benchmarks to check the reasonability 

of Market Maker bids for call and put 

options affords a second layer of price 

protection to Market Maker quotes. The 

Commission believes that the additional 

price reasonability check on Market 

Maker bids that are priced equal to or 

greater than the price of the underlying 

security for call options, and equal to or 

greater than the strike price for put 

options, is reasonably designed to 

operate in manner that would remove 

impediments to and perfect the 

mechanism of a free and open market 

and protect investors and the public 

interest. Further, the Commission notes 

the Exchange’s belief that the additional 

risk controls that result in the 

cancellation of a Market Maker’s resting 

same side quote and/or the temporary 

suspension a Market Maker’s quoting 

activity in the affected option class(es), 

as applicable, provide market 

participants with additional protection 

from anomalous executions.23

Accordingly, the Commission believes 

that the proposed price protection for 

Market Maker quotes is reasonably 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, 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. 

IV. Conclusion 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to a national 

securities exchange. 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act,24 that the 

proposed rule change (SR–NYSEMKT– 

2014–116), as modified by Amendment 

No. 1, be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–05496 Filed 3–9–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[File No. 500–1] 

In the Matter of Black Sea Metals, Inc., 

GigaBeam Corp., Safe Technologies 

International, Inc., and Whitemark 

Homes, Inc.; Order of Suspension of 

Trading 

March 5, 2015. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Black Sea 

Metals, Inc. because it has not filed any 

periodic reports since the period ended 

May 31, 2012. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of GigaBeam 

Corp. because it has not filed any 

periodic reports since the period ended 

September 30, 2007. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Safe 

Technologies International, Inc. because 

it has not filed any periodic reports 

since the period ended December 31, 

2010. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Whitemark 

Homes, Inc. because it has not filed any 

periodic reports since the period ended 

September 30, 2012. 

The Commission is of the opinion that 

the public interest and the protection of 

mstockstill on DSK4VPTVN1PROD with NOTICES

12690 Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 

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. 57619 

(April 4, 2008), 73 FR 19544 (April 10, 2008) (SR– 

NYSEArca–2008–25) (order approving NYSE Arca 

Equities Rule 8.600 and listing and trading of shares 

of certain issues of Managed Fund Shares) (the 

‘‘Approval Order’’). The Approval Order approved 

the rules permitting the listing and trading of 

Managed Fund Shares, trading hours and halts, 

listing fees applicable to Managed Fund Shares, and 

the listing and trading of several individual series 

of Managed Fund Shares. 

5See Approval Order, supra note 4, at 19547. 

6 17 CFR 240.19b–4(e). As provided under SEC 

Rule 19b–4(e), the term ‘‘new derivative securities 

investors require a suspension of trading 

in the securities of the above-listed 

companies. 

Therefore, it is ordered, pursuant to 

Section 12(k) of the Securities Exchange 

Act of 1934, that trading in the 

securities of the above-listed companies 

is suspended for the period from 9:30 

a.m. EST on March 5, 2015, through 

11:59 p.m. EDT on March 18, 2015. 

By the Commission. 

Jill M. Peterson, 

Assistant Secretary 

[FR Doc. 2015–05515 Filed 3–6–15; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74433; File No. SR– 

NYSEArca–2015–02] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Relating to Amendments 

to NYSE Arca Equities Rule 8.600 to 

Adopt Generic Listing Standards for 

Managed Fund Shares 

March 4, 2015. 

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 February 

17, 2015, 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

NYSE Arca Equities Rule 8.600 to adopt 

generic listing standards for Managed 

Fund Shares. The text of the proposed 

rule change is available on the 

Exchange’s Web site 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Arca Equities Rule 8.600 to adopt 

generic listing standards for Managed 

Fund Shares. Under the Exchange’s 

current rules, a proposed rule change 

must be filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) for the listing and 

trading of each new series of Managed 

Fund Shares. The Exchange believes 

that it is appropriate to codify certain 

rules within Rule 8.600 that would 

generally eliminate the need for such 

proposed rule changes, which would 

create greater efficiency and promote 

uniform standards in the listing process. 

Background 

Rule 8.600 sets forth certain rules 

related to the listing and trading of 

Managed Fund Shares.4 Under Rule 

8.600(c)(1), the term ‘‘Managed Fund 

Share’’ means a security that: 

(a) represents an interest in a 

registered investment company 

(‘‘Investment Company’’) organized as 

an open-end management investment 

company or similar entity, that invests 

in a portfolio of securities selected by 

the Investment Company’s investment 

adviser (hereafter ‘‘Adviser’’) consistent 

with the Investment Company’s 

investment objectives and policies; 

(b) is issued in a specified aggregate 

minimum number in return for a 

deposit of a specified portfolio of 

securities and/or a cash amount with a 

value equal to the next determined net 

asset value; and 

(c) when aggregated in the same 

specified minimum number, may be 

redeemed at a holder’s request, which 

holder will be paid a specified portfolio 

of securities and/or cash with a value 

equal to the next determined net asset 

value. 

Effectively, Managed Fund Shares are 

securities issued by an activelymanaged open-end Investment 

Company (i.e., an actively-managed 

exchange-traded fund (‘‘ETF’’)). Because 

Managed Fund Shares are activelymanaged, they do not seek to replicate 

the performance of a specified passive 

index of securities. Instead, they 

generally use an active investment 

strategy to seek to meet their investment 

objectives. In contrast, an open-end 

Investment Company that issues 

Investment Company Units (‘‘Units’’), 

listed and traded on the Exchange 

pursuant to NYSE Arca Equities Rule 

5.2(j)(3), seeks to provide investment 

results that generally correspond to the 

price and yield performance of a 

specific foreign or domestic stock index, 

fixed income securities index or 

combination thereof. 

All Managed Fund Shares listed and/ 

or traded pursuant to Rule 8.600 

(including pursuant to unlisted trading 

privileges) are subject to the full 

panoply of Exchange rules and 

procedures that currently govern the 

trading of equity securities on the 

Exchange.5

In addition, Rule 8.600(d) currently 

provides for the criteria that Managed 

Fund Shares must satisfy for initial and 

continued listing on the Exchange, 

including, for example, that a minimum 

number of Managed Fund Shares are 

required to be outstanding at the time of 

commencement of trading on the 

Exchange. However, the current process 

for listing and trading new series of 

Managed Fund Shares on the Exchange 

requires that the Exchange submit a 

proposed rule change with the 

Commission. In this regard, 

Commentary .01 to Rule 8.600 specifies 

that the Exchange will file separate 

proposals under Section 19(b) of the Act 

(hereafter, a ‘‘proposed rule change’’) 

before listing and trading of [sic] shares 

of an issue of Managed Fund Shares. 

Proposed Changes to Rule 8.600 

The Exchange would amend 

Commentary .01 to Rule 8.600 to specify 

that the Exchange may approve 

Managed Fund Shares for listing and/or 

trading (including pursuant to unlisted 

trading privileges) pursuant to SEC Rule 

19b–4(e) under the Act, which pertains 

to derivative securities products (‘‘SEC 

Rule 19b–4(e)’’).6 SEC Rule 19b–4(e)(1) 

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